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Wednesday 31 January 2018
Arizona Man Sentenced for Drug TraffickingRead the Press Release
United States Attorney Trent Shores announced today that Chief United States District Judge Gregory Frizzell sentenced Francisco de Jesus Bojorquez Para, 33, of Phoenix, Arizona, to serve 170 months in federal prison for Distribution of Methamphetamine and Possession With Intent to Distribute Methamphetamine.
Bojorquez Para was a multiple-pound distributor of methamphetamine in the Tulsa area. On April 3, 2017, federal agents arrested Bojorquez Para with several pounds of pure methamphetamine, commonly known as “Ice”, over $10,000.00 in cash, digital scales and several cell phones. When agents arrested Bojorquez Para, he also had a distribution amount of heroin in his possession.
“This prosecution was the result of a concerted and relentless campaign to target sources of supply responsible for bringing methamphetamine, heroin and other controlled substances into the Northern District of Oklahoma,” said United States Attorney Shores.
This prosecution was part of Operation “Pine Tar Posse”, an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. The prosecution resulted from a joint investigation conducted by the Drug Enforcement Administration, Broken Arrow Police Department, Tulsa Police Department and Oklahoma Bureau of Narcotics. Assistant United States Attorney Joel-lyn A. McCormick handled the prosecution of this case.
Alien Smugglers Sentenced after Rollover Incident that Led to DeathRead the Press Release
LAREDO, Texas – Two Laredo residents and a Nuevo Laredo man have been sentenced to federal prison for harboring and transporting illegal aliens which resulted in multiple deaths, announced U.S. Attorney Ryan K. Patrick. Four aliens died and another four received severe injuries resulting from a vehicle rollover.
Christina Rosalinda Washington, 31, of Laredo, pleaded guilty Nov. 10, 2016, while Gerardo Lucero-Martinez, 46, also of Laredo, and Raul Arreola-Marron, 50, an undocumented alien from Mexico living in Laredo, pleaded guilty Aug. 23, 2016.
Today, U.S. District Judge Diana Saldaña ordered Washington, Arreola-Marron and Lucero-Martinez to serve 70, 126 and 71 months, respectively. Arreola-Marron had been on federal supervised release at the time of the offense and was further ordered to serve an additional six months. Washington and Lucero-Martinez will serve five-year-terms of supervised release following their sentences, while Arreola-Marron, not a U.S. citizen, is expected to face deportation proceedings following his release. In handing down the sentences, Judge Saldaña noted that each compounded the tragedy and added to the suffering of the aliens by not calling 911 immediately to report the accident so that medical personnel could attend to the injured.
At the time of their pleas, the three admitted to conspiring to harbor eight aliens in Laredo and transporting them to Houston. Washington managed the aliens at her residence, while Arreola-Marron transported the aliens after their crossing from Mexico to Washington’s residence and provided all transport vehicles. Lucero-Martinez was engaged in transporting the aliens to Houston.
Near midnight on Feb. 17, 2016, near the intersection of Texas Highway 59 and Farm to Market Road 2895, Lucero-Martinez lost control of the pickup truck he was driving. The vehicle flipped and all occupants were thrown from the truck. He telephoned Arreola-Marron and Washington to report the accident and asked Arreola-Marron to come to the scene to pick him up. Lucero-Martinez thereafter telephoned another person to pick him up who drove him to a Laredo hospital. At no time did any of the three defendants attempt to provide or contact authorities to provide medical assistance to the aliens left at the scene. State, local and federal authorities arrived four hours later and provided emergency first aid to the four survivors.
The defendants have 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, Border Patrol, Texas Department of Public Safety and the Webb County District Attorney’s Office conducted the investigation. Assistant U.S. Attorney Homero Ramirez prosecuted the case.
Albuquerque Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Leroy Gallegos, 58, of Albuquerque, N.M., was sentenced today in federal court to 60 months in prison for his conviction on a methamphetamine trafficking charge. Gallegos will be on supervised release for four years after completing his prison sentence.
Gallegos was arrested on Oct. 4, 2017, on a criminal complaint charging him with distribution of methamphetamine. According to the complaint, Gallegos sold approximately four ounces of methamphetamine to an undercover law enforcement agent on Aug. 31, 2017, in Bernalillo County, N.M.
Gallegos subsequently was indicted on Oct. 24, 2017, and was charged with distribution of more than 50 grams of methamphetamine. Gallegos pled guilty to the indictment on Nov. 1, 2017, without the benefit of a plea agreement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Akron man indicted after firing on three officers, attempting two carjackingsRead the Press Release
An Akron man was indicted in federal court on charges related to shooting at three law enforcement officers as well as attempting to carjack someone and possessing methamphetamine, law enforcement officials said.
Michael P. Johnson, 34, was charged with one count of assault on law enforcement officers with a deadly weapon, two counts of discharging a firearm during a crime of violence, one count of brandishing a firearm during a crime of violence, two counts of attempted carjacking and two counts of possession with intent to distribute methamphetamine.
“This defendant put dozens of people at risk – the officers he fired upon, the innocent people he tried to carjack and the Akron residents simply passing by,” U.S. Attorney Justin E. Herdman said. “This defendant’s violent actions must be answered for, and we are pleased that he is being brought to justice.”
Akron Police Chief Ken Ball said: “This incident is an example of the grave danger that the men and women of the Akron Police Department face every day in service to their community. We are pleased that the defendant will soon be made to answer for his behavior and will face a mandatory minimum of 65 years in prison for actions that could have cost innocent bystanders, and officers, their lives.”
Johnson fired a Smith and Wesson .38-caliber revolver at law enforcement officers engaged in the performance of their official duties on Jan. 2. He also fired a firearm in relation to his drug trafficking activity and possessed at least 50 grams of methamphetamine, according to the indictment.
On the same date, Johnson brandished the .38-caliber revolver while attempting to carjack a 2009 Kia Sportage. He also attempted to carjack a 2002 Toyota Camry, according to the indictment.
Prosecutors are seeking to forfeit the firearm as well as approximately $8,672 in cash seized as part of the investigation.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Aaron Howell and Henry F. DeBaggis following an investigation by the Akron Police Department, the U.S. Marshals and the Drug Enforcement Administration.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Air Force Thief Sentenced to Twenty-Three Months ImprisonmentRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Mikel A. Parish, age 28, from Griffin, Georgia, was sentenced to twenty-three months in prison on January 30, 2018, for theft of government property. Sentencing was done by the Honorable Marc T. Treadwell, United States District Judge, in Macon, Georgia. There is no parole in the federal system.
Mr. Parish was also ordered to pay restitution in the amount of $208,024.57. Additionally, after his prison sentence, he will have three years of supervised release and a $100.00 mandatory assessment fee.
The evidence showed that between April, 2015 and March, 2016, Mr. Parish worked at the Defense Logistic Agency (DLA) on Robins Air Force Base (RAFB). DLA provides storage and distribution support to RAFB and distributes supplies worldwide to all branches of the military. Mr. Parish was a distribution process worker who was responsible for entering the data about those supplies into the ordering and cataloging systems for the RAFB. United States Air Force (USAF) Security Forces were contacted by the Griffin Police Department regarding Mr. Parish’s pawning and selling of what appeared to be military equipment. Military investigators confirmed that Mr. Parish was in fact pawning and selling military equipment. Further investigation revealed that Mr. Parish used his badge to access DLA before and after his normal work hours, whereby he would steal military equipment, including copper wire spools, rifle scopes and ballistic vests.
“In these times of reduced budgets and government austerity, prosecution of government theft and fraud is one of the priorities I have established for my office,” said United States Attorney Peeler. “Stealing from our armed forces even as they are engaged in violent conflict in defense of our nation is simply reprehensible. I commend the cooperation between the Griffin police and the RAFB investigators which uncovered Mr. Parish’s theft and brought him to justice.”
This case was investigated by United States Air Force 78 Security Forces Squadron Investigations Section. Assistant United States Attorney Kimberly S. Easterling prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or [email protected].
Tuesday 30 January 2018
Worcester Man Charged with Marriage FraudRead the Press Release
BOSTON – A Worcester man was arrested yesterday in connection with entering into six fraudulent marriages in order to evade immigration laws.
Peter Hicks, 57, was charged in federal court with one count of marriage fraud. Hicks was released following an initial appearance in federal court in Worcester yesterday.
According to the criminal complaint unsealed yesterday, in 2014 federal law enforcement agents uncovered evidence that Hicks married six foreign national women from Sub-Saharan Africa between 2003 and 2013. Hicks allegedly filed for immigration benefits for four of his six wives.
During a routine interview as part of his application for benefits for a non-citizen spouse, Hicks admitted to marrying three of the women solely to obtain immigration benefits for them. During a second interview with immigration officials, Hicks admitted that he was paid to recruit people for fraudulent marriages. During an interview with federal agents on Jan. 8, 2015, Hicks admitted that he was involved in marriage fraud for approximately 13 years, and that he received payments to marry undocumented African women and to find willing United States citizens to marry illegal aliens for the purpose of allowing the women to establish legal status in the United States.
It is further alleged that on at least one occasion, Hicks was still married to one spouse at the time of his marriage to another spouse. Hicks also fraudulently claimed on an immigration form submitted on behalf of one of his spouses, that he had only one former spouse and that he had only petitioned for immigration benefits for the one former spouse, when, in fact, Hicks had actually been married five times and submitted requests for immigration benefits for a number of his former spouses.
The charge of marriage fraud provides for sentence of no greater than five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Denis C. Riordan, District Director, U.S. Citizenship and Immigration Services, District 1, made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Winchester Man Sentenced to 8.5 Years in Federal Prison for Conspiring to Distribute over a Kilogram of HeroinRead the Press Release
CONCORD, N.H. –Acting United States Attorney John J. Farley announced today that Ross Gould, 30, formerly of Winchester, New Hampshire was sentenced to 8.5 years in federal prison for participating in a heroin trafficking conspiracy.
Court documents and statements in court showed that beginning in 2011 and continuing through mid-March 2015, Gould distributed quantities of heroin throughout the Keene, New Hampshire, area. Investigators determined that Gould initially sold gram quantities of heroin, but later started selling larger quantities of heroin to individuals in Keene and the surrounding towns. From mid-2014 through Gould’s arrest in March of 2015, Gould’s drug trafficking increased substantially. He obtained approximately two kilograms of heroin every four or five weeks from a heroin source in Lawrence, Massachusetts. Gould used a drug courier to obtain the heroin from the source and transport the drugs back to the Keene area where the drugs were distributed by Gould and other drug couriers.
After the lengthy investigation, Gould was arrested in March, 2015. A search of Gould’s Winchester residence resulted in the seizure of approximately five grams of heroin, $11,000 cash and 14 firearms. A subsequent search of a safe that Gould kept at another residence resulted in the seizure of 1.7 kilograms of heroin, 392 grams of cocaine and a small quantity of miscellaneous pills.
Gould pleaded guilty to conspiring to distribute over one kilogram of heroin on October 5, 2017. Under the terms of the plea agreement, Gould consented to liquidate personal property purchased with drug proceeds that resulted in the forfeiture by the United States of approximately $ 28,000. Gould also forfeited to the United States 14 firearms that he purchased with drug proceeds. The United States previously forfeited the $11,000 cash seized from Gould’s residence.
Three of Gould’s drug couriers have been sentenced to federal prison as a result of their participation in this drug trafficking organization. Jamie Hilow, 29, formerly of Winchester, is serving an 11-year prison sentence. Hilow’s wife, Jaclyn Hilow, 31, also formerly of Winchester, is serving a 10-year prison sentence. Jason Daigle, 40, formerly of Nelson, is serving an eight-year prison sentence.
Two of Gould’s sources from Lawrence also have been convicted on drug trafficking charges. Jonathan Cruz-Marte, 34, was sentenced to 55 months in prison and Felix Portes, 56, was sentenced to 57 months in prison.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to target individuals who are distributing illegal drugs in New Hampshire,” said Acting U.S. Attorney Farley. “While those who suffer from addiction need access to treatment, those who seek to profit from the distribution of heroin and other deadly drugs will be prosecuted aggressively. I commend the work of the law enforcement officers who worked together during this long-term investigation to disrupt and dismantle a major drug trafficking organization that was responsible for the distribution of large quantities of heroin in the Keene area.”
The investigation was conducted by the: (1) Immigration and Customs Enforcement, Homeland Security Investigations; (2) New Hampshire Attorney General’s Drug Task Force; (3) Bureau of Alcohol, Tobacco, Firearms and Explosives; (4) New Hampshire State Police; (5) Keene, New Hampshire Police Department; (6) Richmond, New Hampshire Police Department; and (7) Salem, New Hampshire Police Department. Assistant United States Attorney Jennifer Cole Davis prosecuted the case.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Wheeling man admits to firearm, methamphetamine chargesRead the Press Release
WHEELING, WEST VIRGINIA - A Wheeling, West Virginia, man has admitted to firearm and drug charges, United States Attorney Bill Powell announced.
Peter Hankish, age 43, was indicted on one count of “Unlawful Possession of a Firearm” and one count of “Possession with Intent to Distribute Methamphetamine.” Hankish, having previously been convicted of Theft in the Camp Lejeune Marine Corps General Court, possessed a 7.62 caliber rifle. Hankish admitted to possessing methamphetamine. The crimes occurred in April 2017 in Ohio County.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Upshur County man admits to his role in a firearms conspiracyRead the Press Release
ELKINS, WEST VIRGINIA – An Ellamore, West Virginia man has admitted today to his role in a firearms theft and sale scheme, United States Attorney Bill Powell announced.
Johnny Lee Riley, age 28, pled guilty to one count of “Possession of Stolen Firearm.” Riley admitted to receiving, possessing, bartering, concealing, or selling 10 firearms in Upshur County in October 2016.
Riley faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
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.
U.S. Magistrate Judge Michael John Aloi presided.United States Attorney’s Office Supporting RAYSAC Opioid InitiativeRead the Press Release
Roanoke, VIRGINIA – United States Attorney Rick Mountcastle announced the Roanoke Area Youth Substance Abuse Coalition’s (RAYSAC) social media campaign beinthepicture.org, whose goal is to warn individuals between the ages of 12 and 25 about the dangers of prescription drug misuse, specifically opioid pain medication and heroin. The program, which began in December 2017, is featured on Facebook, Twitter, YouTube, Instagram and Snapchat, as well as in posters in various restaurants, shops, schools, libraries, the health department and other locations around the Roanoke Valley.
“Opioid pain killer and heroin addiction is a national crisis,” said United States Attorney Mountcastle. “Our community must work together to defeat the epidemic of addiction through access to treatment and recovery, prevention programs that raise awareness of the dangers of addiction, and targeted law enforcement.”
RAYSAC is recruiting young adults in the Roanoke Valley between the ages of 18-25 to serve on an advisory council. This council will provide guidance and expertise on the best ways to bring awareness to their peers about this critical issue.
U.S. Attorney’s Office for the Western District of Virginia Collects over $11 Million in Fiscal Year 2017Read the Press Release
Roanoke, VIRGINIA – United States Attorney Rick A. Mountcastle announced today that the United States Attorney’s Office for the Western District of Virginia collected $11,113,257 in criminal and civil actions in Fiscal Year 2017. More than $7,200,000 of this amount went to victims of crime. “Providing restitution to crime victims is a priority, and I commend the three members of our Financial Litigation Unit for their hard work during fiscal year 2017,” said United States Attorney Mountcastle.
The Western District of Virginia also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $73,387,907 in cases pursued jointly with these offices.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending September 30, 2017.
Additionally, the United States Attorney’s Office for the Western District of Virginia, working with partner agencies and divisions, also collected $4,115,494 in asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The United States Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney’s Office for the Eastern District of Tennessee Collects $11,041,603.14 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2017Read the Press Release
KNOXVILLE, Tenn. - U.S. Attorney J. Douglas Overbey announced today that the Eastern District of Tennessee collected $11,041,603.14, in criminal and civil actions in Fiscal Year 2017. Of this amount, $9,282,250.34, was collected in criminal actions and $1,759,352.80, was collected in civil actions.
Additionally, the Eastern District of Tennessee worked with other U.S. Attorney’s offices and components of the Department of Justice to collect an additional $92,344,571.85, in cases pursued jointly with these offices. Of this amount, $8,310.00, was collected in criminal actions and $92,336,261.85, was collected in civil actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
U.S. Attorney J. Douglas Overbey praised the hard work of the Assistant U.S. Attorneys and the Monetary Recovery Unit in his office stating, “The overall mission of the U.S. Attorney’s office involves not just protecting the public by prosecuting and locking up criminals, but also helping to restore victims to the fullest extent possible. Restitution, fines and assessments ordered by the U.S. District Court, when collected by our office, benefit all victims of crime. Collected restitution is paid directly to the victim(s) of the crime(s) for whom it was ordered, while collected fines and assessments are paid to the Crime Victims’ Fund to fund state victim compensation and assistance programs.”
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office for the Eastern District of Tennessee, working with partner agencies and divisions, collected $4,512,735.00 in asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Two Men Sentenced to Prison in International $200 Million Credit Card Fraud ConspiracyRead the Press Release
Last of 22 Defendants Convicted and Sentenced
TRENTON, N.J. – A New York man and a Middlesex County, New Jersey, man were sentenced to today to federal prison terms for their respective roles in one of the largest credit card fraud schemes ever charged by the Justice, U.S. Attorney Craig Carpenito announced.
Qaiser Khan, 53, of Valley Stream, New York, previously pleaded guilty to an information charging him with one count of conspiracy to commit bank fraud. He was sentenced today to six months in prison. Sat Verma, 65, of Iselin, New Jersey, previously pleaded guilty to an information charging him with one count of access device fraud. He was sentenced to one year in prison. U.S. District Judge Anne E. Thompson imposed both sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
Khan and Verma were originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. They are the last of 22 defendants to be sentenced in this scheme.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a phony credit profile with the major credit bureaus; pump up the credit of the false identity by providing bogus information about that identity’s creditworthiness; then borrow or spend as much as they could without repaying the debts. The scheme caused more than $200 million in confirmed losses to businesses and financial institutions.
The scope of the criminal fraud enterprise required the conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.
Khan admitted he helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. He also admitted they knew the cards would be used fraudulently at businesses. Verma admitted he effected transactions with access devices issued to another person.
In addition to the prison terms, Judge Thompson sentenced Qaiser to five years of supervised release and fined him $10,000. Verma was sentenced to three years of supervised release, ordered to forfeit $270,000 and fined $1,000.
U.S. Attorney Carpenito credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, Newark Division, special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, and the U.S. Social Security Administration for their assistance.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit, as well as Assistant U.S.
Attorney Sarah Devlin of the Asset Forfeiture and Money Laundering Unit.This case was brought in coordination with the Financial Fraud Enforcement Task Force, which was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel:
Khan: Christopher Adams Esq., Roseland, New Jersey
Verma: Jerard A. Gonzalez Esq., Hackensack, New JerseyThree Wood County defendants plead guilty for roles in federal heroin conspiracyRead the Press Release
CHARLESTON, W.Va. – Three Wood County defendants pleaded guilty today for their roles in a heroin conspiracy, announced United States Attorney Mike Stuart. Jonathan “Mohawk” Brown, 36, and Sir Pritis Williams, 28, both of Parkersburg, entered their guilty pleas to conspiracy to distribute 100 grams or more of heroin. Kennedy Michele Walker, 23, of Vienna, pleaded guilty to aiding and abetting the distribution of heroin. U.S. Attorney Stuart commended the collaborative investigative efforts of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Parkersburg Drug Task Force, the West Virginia State Police, the Wood County Sheriff’s Department, and the Police Departments of the cities of Parkersburg, Vienna, and Williamstown.
Brown and Williams admitted their respective involvement with several other individuals in distributing heroin at various locations throughout the Parkersburg area. In addition, Brown and Williams admitted to selling heroin to a confidential informant working with the Parkersburg Drug Task Force and the FBI on numerous occasions between November 2016 and May 2017. Both men further admitted to distributing between 100 and 400 grams of heroin during the course of the conspiracy. Brown and Williams face at least five and up to 40 years in federal prison when they are sentenced on April 26, 2018.
Walker admitted that on March 20, 2017, she provided heroin to another individual, who then sold it to a confidential informant working with the Parkersburg Drug Task Force. The drug deal took place in the area of 17th and Briant Streets in Parkersburg. Walker faces up to 20 years in federal prison when she is sentenced on April 26, 2018.
Three codefendants involved in the same conspiracy, Joseph Reeder-Shaw, Bernard Spann, and Debra Martin, have previously pleaded guilty to conspiracy to distribute 100 grams or more of heroin, and face at least five and up to 40 years in federal prison. Reeder-Shaw and Spann are scheduled to be sentenced on April 19, 2018. Martin is scheduled to be sentenced on April 5, 2018.
Assistant United States Attorney John Frail is in charge of the prosecution. The plea hearings were held before United States District Judge Joseph R. Goodwin.
This drug conspiracy is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Three Sentenced in Counterfeit Credit Card SchemeRead the Press Release
PITTSBURGH – Three residents of the State of Florida, have been sentenced in federal court on a charge of conspiracy to commit identity theft, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon sentenced Raul Perez, age 38, of Miami, FL, to 24 months imprisonment with credit for time served, three years supervised release and restitution in the amount of $14,992.96; Alexis Delgado, age 44, of Hialeah, FL, to 18 months imprisonment with credit for time served, three years supervised release, restitution in the amount of $14,992.96, and a $5,000 fine; and, Leyanis Menendez, age 38, also of 83 Hialeah, FL, to 18 months imprisonment with credit for time served, three years supervised release, restitution in the amount of $14,992.96, and a $5,000 fine.
According to the information presented to the court, Raul Perez, Alexis Delgado, Leyanis Menendez and others conspired to manufacture and traffic-in counterfeit credits cards throughout the United States, which were used to purchase merchandise at stores nationwide, including the outlet stores in Gove City and Washington, PA, in June 2015.
“Incidents of credit card skimming, have reached epidemic proportions and consumers need to be very vigilant about any suspicious or unauthorized activity on their accounts,” said Marlon V. Miller, special agent in charge HSI Philadelphia. “These types of crimes not only result in major losses for financial institutions and merchants, but can cause a major disruption in consumers’ personal finances. HSI will continue to work closely with its federal and local law enforcement partners to target skimming schemes and the criminal syndicates that are behind them.”
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
United States Attorney Scott W. Brady commended the Western Pennsylvania Financial Crimes Task Force (WPFCTF), for conducting the investigation that led to the successful prosecution of these defendants. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Tampa’s Largest Ambulance Providers Agree to Pay $5.5 Million to Resolve False Claims Act Allegations Regarding Medically Unnecessary Ambulance TransportsRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces that AmeriCare Ambulance Service, Inc. and its sister company, AmeriCare ALS, Inc. (collectively, AmeriCare), have agreed to pay approximately $5.5 million to resolve allegations that they defrauded Medicare by billing for medically unnecessary ambulance transportation services.
“Fraudulently billing the government for medically unnecessary ambulance transports poses a heavy drain on the Treasury, deprives federal health care programs of valuable resources, and will not be tolerated,” said U.S. Attorney Chapa Lopez. “This lawsuit and today’s settlement evidence our office’s ongoing efforts to safeguard federal health care program beneficiaries from the effects of this type of unlawful conduct.”
According to a complaint filed by the government last year, from January 2008 through December 2016, AmeriCare submitted fraudulent claims to Medicare and TRICARE for Basic Life Support (BLS), non-emergency ambulance transports that were not medically justified. In support of these allegations, the government cited information regarding unwarranted ambulance transports it had received from numerous AmeriCare employees, as well as audits conducted by the agencies that administer Medicare and TRICARE. The government also cited damaging testimony it had elicited under oath from members of AmeriCare’s management team during the course of the investigation. This testimony, along with the other evidence obtained by the government, revealed that AmeriCare had engaged in a systemic practice – over many years – of submitting fraudulent claims to the government falsely attesting to the medical necessity of its non-emergent, BLS ambulance transports. That proof also revealed that AmeriCare had created thousands of false reports and other documentation during this time period, in a failed effort to support this illicit practice.
In addition to paying approximately $5.5 million, AmeriCare has also agreed to enter into an integrity agreement with the Inspector General of the U.S. Department of Health and Human Services.
“Medical service providers who engage in systemic fraud at the core of their business levy an assault on federal health care programs and the American taxpayer,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General. “In spite of often false medical documents, the OIG and our partners will not be deterred in our efforts to root out this type of fraud and protect the American public.”
"This settlement demonstrates the effectiveness of investigations by the Defense Criminal Investigative Service and our law enforcement partners to ensure that medical service providers do not bill for unnecessary services that divert and waste precious taxpayer dollars,” said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS protects the integrity of DoD programs by rooting out fraud, waste, and abuse that negatively impacts critical programs such as TRICARE."
This settlement concludes a lawsuit originally filed by a former AmeriCare employee, Ernest Sharp. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act that permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did here. Mr. Sharp will receive roughly $1.15 million of the proceeds of the settlement with AmeriCare.
This settlement illustrates the government’s emphasis on combating health care fraud and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800.447.8477).
The case is captioned United States, et al. ex rel. Sharp v. AmeriCare Ambulance, Case No. 8:13-cv-1171-T-33AEP. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only and there has been no determination of liability.
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida and the HHS-OIG and the Defense Criminal Instigative Service. It was handled by Assistant United States Attorney Christopher P. Tuite.
St. Joseph Woman Sentenced for $1.5 Million Tax Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., woman was sentenced in federal court today for her role in a $1.5 million tax fraud scheme as well as for individual tax fraud.
Dawn Langlais (formerly Ankrom-Brown), 60, of St. Joseph, was sentenced by U.S. District Judge Beth Phillips to 18 months in federal prison without parole.
On July 7, 2017, Langlais pleaded guilty to failing to pay over employee payroll taxes to the IRS. Her daughter, her sister, and her sister’s husband have also pleaded guilty.
Langlais helped her sister and co-defendant Dinorah Lynn Stoll-Weaver, 50, of St. Joseph, operate Homeward Bound Health Services, Inc., a home health provider located in St. Joseph, from 2001 through early 2010. Stoll-Weaver was the owner of Homeward Bound. In 2010, Homeward Bound’s name was changed to Silver Linings, Inc., and nominee owners were put in place who signed the checks but made no business decisions. Stoll-Weaver and Langlais continued to operate Silver Linings until it closed in 2013.
Homeward Bound and Silver Linings withheld and collected federal income taxes, Social Security taxes, and Medicare taxes from employees and then kept those withheld taxes instead of paying them over to the IRS. The total criminal tax loss attributed to Homeward Bound and Silver Linings for failure to pay employment taxes due and owing from 2001 to 2012 is $1,459,727.
Homeward Bound and Silver Linings also withheld from employee paychecks and kept child support payments, employee IRA contributions, and medical and dental insurance payments. The theft of these payments had negative collateral consequences for their employees.
Langlais and Stoll-Weaver admitted they received income from Homeward Bound and Silver Linings, which they failed to report on their individual federal income tax forms, and as a result, underpaid their federal income taxes. Langlais willfully failed to make an income tax return or pay personal income taxes from 2010 to 2012, for a total personal tax loss of $56,860.
Stoll-Weaver employed her husband, co-defendant Thad Weaver, 46, of St. Joseph, and Langlais employed her daughter, co-defendant Jennifer Sturgis, 39, of St. Joseph, at Homeward Bound and Silver Linings. They also employed other relatives at the business.
Stoll-Weaver also pleaded guilty to failing to pay over employee payroll taxes to the IRS. Weaver and Sturgis each pleaded guilty to making false statements on a tax return. Weaver and Sturgis admitted they received income from Homeward Bound and Silver Linings, which they failed to report on their individual federal income tax forms, and as a result, underpaid their federal income taxes.
Weaver and Stoll-Weaver were married and filed individual income tax returns for 2010 through 2012; Stoll-Weaver filed a separate return in 2009. Their combined unreported income was at least $257,827. Weaver’s total personal tax loss was at least $27,488. Stoll-Weaver’s personal tax loss was $34,264.
Sturgis willfully failed to make an income tax return or pay personal income taxes from 2007 to 2012, for a total personal tax loss of $148,347, including relevant conduct.
Additionally, from 2009 to 2012, Stoll-Weaver, Weaver and Sturgis each claimed personal federal income tax refunds, knowing that Homeward Bound and Silver Linings had not paid any income taxes to the IRS.
Weaver and Sturgis were each sentenced to five years of probation; Stoll-Weaver awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS – Criminal Investigation.
St. Francis Man Indicted on 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.
John Matthew Brave Hawk, age 20, was indicted on January 17, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 29, 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, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 14, 2017, Brave Hawk assaulted three individuals with a vehicle, with the intent to do bodily harm.
The charges are merely an accusation and Brave Hawk 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 Daniel C. Nelson is prosecuting the case.
Brave Hawk was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Southern Meat Market Proprietor Indicted on Federal Food Stamp Fraud, Theft and Conspiracy ChargesRead the Press Release
Memphis, TN – On January 11, 2018, a federal grand jury charged one defendant with defrauding the federal Supplemental Nutrition Assistant Program ("SNAP"), formerly known as the food stamp program. United States Attorney D. Michael Dunavant announced the indictment today.
According to the indictment, from at least January 2015 through April 2017, Guy Randal Stockard, 59, a/k/a/ "Randy," owned and operated Southern Meat Market, a small retail meat market in Memphis, Tennessee. Southern Meat Market was authorized to accept federal SNAP benefits from customers as payment for eligible food items. Customers could access and redeem their benefits using Electronic Benefits Transfer ("EBT") cards.
During that same period, Stockard allegedly used Southern Meat Market to conduct fraudulent SNAP benefit transactions with an estimated total value of at least $1.2 million. To carry out the fraud, Stockard bought customers’ SNAP benefits at a discount in exchange for cash. Stockard then redeemed those SNAP benefits at their full monetary face value.
Stockard is charged with one count of conspiracy to commit SNAP benefit fraud and theft of government property, one count of SNAP benefit fraud, and one count of theft of government property.
If convicted, the defendant faces a maximum of 20 years imprisonment, a $250,00 fine and 3 years supervised release. The United States is also seeking criminal forfeiture in this case.
This case is being investigated by the United States Department of Agriculture - Office of the Inspector General and the United States Secret Service.
Assistant U.S. Attorney Murre Foster is prosecuting this case on the government’s behalf.
The charges and allegations in this indictment are merely accusations, and the defendant is innocent unless and until proven guilty.
Sioux City Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired with others to distribute methamphetamine was sentenced January 29, 2018, to more than seven years in federal prison.
Daniel Hodges, 35, from Sioux City, Iowa, received the prison term after a September 15, 2017, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Hodges admitted he was involved in a conspiracy that distributed more than a pound of methamphetamine in the Sioux City area from January 2017 through about April 29, 2017. During a traffic stop on April 29, 2017, officers seized over 90 grams of actual (pure) methamphetamine from Hodge’s person.
Hodges was sentenced in Sioux City by United States District Court Chief Leonard T. Strand. Hodges was sentenced to 90 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Hodges is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Mikala M. Steenholdt and investigated by the Tri-State Drug Task Force consisting of officers from the Sioux City Police Department, South Sioux City Police Department, Woodbury County Sheriff’s Office, Iowa Division of Narcotics Enforcement, Drug Enforcement Administration, Iowa Criminalistics, and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4044. Follow us on Twitter @USAO_NDIA.
Silver Spring Man Sentenced to 21 Years in Prison for Production of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On January 29, 2018, United States District Judge George J. Hazel sentenced Demetrius Murray, age 23, of Silver Spring, Maryland to 21 years in prison, followed by a lifetime of supervised release, for Production of Child Pornography. Judge Hazel also ordered forfeiture of electronic devices seized from Murray and used by Murray to produce and store child pornography. Murray is also required to register as a sex offender.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Sheriff Terry Thompson of the Weber County, Utah, Sheriff’s Office.
According to his plea agreement, Murray contacted an eleven-year-old boy in Utah, Victim A, through Xbox Live and then through a private chat on KIK, an internet-based chat service. Murray and Victim A at some point switched to Skype, an internet-based chat and video streaming service. Murray streamed pictures of himself masturbating to the boy over Skype. Victim A created a video of himself masturbating, which depicted child pornography, and sent the video to Murray as part of a text message. Murray, after receiving the video, converted it into six still-frame pictures and sent the pictures back to Victim A. Victim A’s mother learned of Murray’s interaction with her son and reported Murray’s conduct to the National Center for Missing and Exploited Children (“NCMEC”).
As a result of the NCMEC Cybertip, HSI agents and officers from the Montgomery County Police Department executed a search warrant at Murray’s home in January 2016. Agents recovered more than 600 images and more than 400 videos depicting minors, the vast majority of which depicted child pornography.
Forensic examination of Murray’s iPhone seized during the search showed that in May and June 2015, Murray had engaged in text messaging with a boy, Victim B, who lived in Alabama. Victim B told Murray that he was 14 years old. Nevertheless, Murray requested that Victim B send pictures of his body and pictures of himself masturbating. Victim B sent the requested pictures. When Murray learned that Victim B had a four-year-old relative, Victim C, Murray requested that Victim B send pictures of Victim C performing oral sex on Victim B. Victim B sent the pictures, which depicted child pornography.
Acting United States Attorney Stephen M. Schenning praised HSI, the Montgomery County Police Department, and the Weber County Utah Sheriff’s Office for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Joseph Baldwin, who prosecuted the case.
Shelton Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MICHAEL HULL, 60, of Shelton, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of receipt of child pornography.
According to court documents and statements made in court, on May 31, 2017, Homeland Security Investigations (HSI) agents conducted a court-authorized search of HULL’s Shelton residence and seized approximately 16 electronic devices, including computers and external hard drives. A forensic examination of the seized devices revealed approximately 13 images and 126 videos of child pornography, including images and videos depicting children younger than 12 engaged in sexually explicit conduct.
The investigation also revealed that HULL had a video camera installed in his bathroom, which captured images of individuals, including children, who used his bathroom.
Judge Underhill scheduled sentencing for April 24, 2018, at which time HULL faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
HULL has been detained since his arrest on May 31, 2017.
This matter is being investigated by Homeland Security Investigations and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Rosebud Man Sentenced for EscapeRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Escape from Custody was sentenced on January 29, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Marlow Poor Thunder, age 22, was sentenced to 12 months and 1 day of imprisonment, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Poor Thunder was charged on August 22, 2017, and pleaded guilty on October 20, 2017. The conviction stems from Poor Thunder leaving the Community Education Center, where he was serving part of a federal sentence, without permission and failing to return in August 2017.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Providence Felon Detained on Ammunition ChargeRead the Press Release
PROVIDENCE, RI – Eric Valdez, 28, of Providence, was ordered detained in federal custody at his arraignment on Monday in U.S. District Court in Providence on an indictment charging him with being a felon in possession of ammunition.
The indictment, announced United States Attorney Stephen G. Dambruch; Providence Police Chief Colonel Hugh T. Clements, Jr., and Mickey Leadingham, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, was brought as a result of a Project Safe Neighborhoods investigation.
Project Safe Neighborhoods is a federal, state and local law enforcement collaboration to identify, investigate and prosecute individuals responsible for violent crimes in our neighborhoods. Project Safe Neighborhoods has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
According to court records, in September 2011, Eric Valdez was convicted in federal court of possession of a stolen firearm, possession of a firearm with an obliterated serial number, and resisting arrest by a federal agent. He was sentenced to 14 months imprisonment, to be followed by 3 years supervised release.
After Valdez was released from prison, in 2013 in Rhode Island state court Valdez was convicted of assault, trafficking cocaine and other offenses. He received an additional 9 months federal sentence for violating the terms of his supervised release.
According to court records and information presented to the courts, in November 2017, Valdez was in a vehicle with two other men where Providence Police located a loaded 9mm handgun. A court authorized search of Valdez’ residence executed simultaneously resulted in the seizure of two bags containing 9mm ammunition and a digital scale containing drug residue. As a result of the Project Safe Neighborhoods investigation, Valdez was arrested on a state charge of trafficking heroin by the Providence Police. He was charged by way of a federal indictment with being a felon in possession of ammunition. Valdez pleaded guilty to a lesser drug possession state charge and was sentence to 3 months to serve at the ACI. Valdez appeared for arraignment in U.S. District Court on Monday on the federal indictment and was ordered detained by U.S. District Court Magistrate Judge Patricia A. Sullivan.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of the most recent alleged incident resulting in the federal charge brought in this matter.
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Pierre Man Charged with Receipt, Distribution and Possession of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Receipt and Distribution of Images Depicting the Sexual Exploitation of Minors and Possession of Child Pornography.
David Foster, age 34, was indicted on January 17, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 25, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in custody and/or a $500,000 fine, up to life of supervised release, and a $200 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 5, 2016, and May 4, 2017, Foster knowingly received and distributed images depicting minors involved in sexually explicit conduct. The Indictment further alleges that Foster was in possession of Child Pornography.
The charges are merely accusations and Foster is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Homeland Security. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Foster was released on bond pending trial which has been set for March 20, 2018.
Peru Man Sentenced to 30 Months ImprisonmentRead the Press Release
FORT WAYNE – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Jamie Buckner, age 48, of Peru Indiana, was sentenced before Chief Judge Theresa Springmann on her guilty plea to eight counts of theft of government property.
Buckner was sentenced to 30 months imprisonment and 3 years of supervised release.
According to documents in this case, from June through November 2015, Buckner stole United States Postage Stamps and other merchandise belonging to the United States Postal Services by presenting checks for the payment of stamps and merchandise knowing that the checks would not be honored by the financial institutions. As part of the sentence, Buckner was ordered to pay restitution to the Postal Service in the amount of $21,578.21.
This case was investigated by the United States Postal Inspection Service and was handled by Assistant United States Attorney Stacey R. Speith
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Oklahoma City Man Previously Sentenced to 272 Months, $37,958 Restitution for Multiple Charges Found Guilty on Additional State ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that, on December 8, 2016, JEREMY DWAYNE LAVORCHEK, age 28, of Oklahoma City, Oklahoma, was sentenced to 272 months imprisonment, and ordered to pay $37,958.33 in restitution for POSSESSION WITH INTENT TO DISTRIBUTE SCHEDULE II CONTROLLED SUBSTANCES, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); ROBBERY INVOLVING CONTROLLED SUBSTANCES, in violation of Title 18, United States Code, Section 2118(a); and CARJACKING, in violation of Title 18, United States Code, Section 2119(1).
The charges and lengthy sentence were the result of Lavorchek’s violent armed robbery of Ernie’s Pharmacy, located in Muskogee, Oklahoma, on December 9, 2015. Lavorchek used a handgun to threaten the employees of Ernie’s Pharmacy to steal Opioid pharmaceutical drugs. In attempting to flee the scene of the pharmacy robbery, Lavorchek carjacked a woman waiting in the pharmacy drive-thru by threatening her and her 2-year-old son with a gun and forcing her to drive him from the crime scene. Lavorchek was charged in the Eastern District of Oklahoma and sentenced by United States District Judge Ronald White.On March 5, 2016, Lavorchek committed an equally violent armed robbery of the Legacy Drug Store in Pauls Valley, Oklahoma. Lavorchek and a second accomplice used handguns to tie up three employees and steal large amounts of Opioid pain medications. Police arrested Lavorchek as he fled the scene of the robbery. The Garvin County District Attorney’s Office charged Lavorchek with nine counts of robbery, assault and kidnapping.
On January 27, 2018, a State of Oklahoma jury of seven woman and five men found Lavorchek guilty on all counts and recommended a sentence of life in prison on all nine counts. Lavorchek is expected to be formally sentenced in March 2018.
United States Attorney Brian J. Kuester commented, “We are proud to have worked with District 21 District Attorney, Greg Mashburn, in coordinating the federal and state prosecutions of a dangerous serial criminal. The U. S. Attorney’s Office and the Garvin County District Attorney’s Office shared evidence and strategies in an effort to achieve the maximum sentences for Lavorchek, thereby protecting the people of Oklahoma by ensuring he would never be free to commit further violent acts. This team effort demonstrates the success that we can have when state and federal agencies work together in the common cause of protecting the public.”
New Port Richey Resident Sentenced to 10 Years in Prison in Connection with Tax Impersonation SchemeRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Andrew Corrigan (24, New Port Richey) to 10 years in federal prison for conspiring to commit extortion and money laundering. As part of his sentence, the Court also ordered restitution to the victims and entered a money judgment in the amount of $870,652, representing the proceeds of conspiracy.
Corrigan pleaded guilty on October 25, 2017.
According to court documents, Corrigan and his co-defendant, David Owen, used individuals to open bank accounts (straw account owners) into which victims of tax impersonation calls deposited money. This money was extorted from the victims by falsely representing that the victims owed federal income tax to the Internal Revenue Service (IRS), to Canadian tax authorities, or other financial obligations. As part of the scheme, victims were threatened that if they failed to pay these obligations, either they or their family members would face arrest, prosecution, or other legal consequences.
Provided with online access by the straw account owners, Corrigan and Owen monitored the victims’ deposits to ensure timely withdrawals by the straw account owners. In order to make the withdrawals at the bank, the defendants provided the straw account owners with the victims’ names, locations, and deposit amounts. Corrigan and Owen then directed the straw account owners to withdraw the funds in cash, and turn it over to them, often minus a payment to the straw account owner for opening the account or conducting the transaction. Victims were also directed to pay via money transfers and prepaid debit cards, which were collected and deposited by Corrigan and Owen.
Owen pleaded guilty on October 25, 2017. He is scheduled to be sentenced on May 1, 2018.
This case was investigated by the Internal Revenue Service – Criminal Investigation, Treasury Inspector General for Tax Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Pinellas County Sheriff’s Office, the Pasco County Sheriff’s Office, the Largo Police Department, the Gulfport Police Department, the Toronto Police Service, and the Royal Canadian Mounted Police. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Monett Sex Offender Sentenced to 21 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced a convicted sex offender in Monett, Mo., was sentenced in federal court today for receiving child pornography over the Internet.
Carl Donald Greiner, 32, of Monett, was sentenced by U.S. District Judge M. Douglas Harpool to 21 years and 10 months in federal prison without parole. The court also sentenced Greiner to spend the rest of his life on supervised release following incarceration.
Greiner, who pleaded guilty on Aug. 31, 2017, was previously convicted of possessing child pornography, sexual misconduct and furnishing pornographic material to a minor in 2004. While on supervision for those offenses, Greiner, Greiner engaged in sexual intercourse with a 13-year-old female victim and was convicted of statutory rape and statutory sodomy in the first degree.
A person using Greiner’s computer reported to police officers on April 30, 2016, that she saw a large amount of child pornography on the computer located in his bedroom, including videos of children ranging in age from 4 to 17. Officers executed a search warrant at Greiner’s residence the same day and seized his desktop computer along with an address book with Internet addresses.
Investigators discovered multiple images and videos of child pornography on Greiner’s computer that had been downloaded from the Internet.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cybercrimes Task Force and the Monett, Mo., Police Department.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Milford Man with Long Criminal History Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced on January 29, 2018, to 15 years in federal prison.
Justin Stephen Ries, 49, from Milford, Iowa, received the prison term after a September 15, 2017, guilty plea to one count of conspiracy to distribute methamphetamine.
At sentencing and during prior court proceedings, the government presented evidence that on June 12, 2017, law enforcement executed three search warrants and seized a total of 380.5 grams of methamphetamine, 169.76 grams of marijuana, 0.51 grams of fentanyl/heroin, two fentanyl transdermal patches, 29 unused syringes, fifteen shotgun shells, and $24,874.00 in U.S. currency from Ries. Evidence also showed that Ries accumulated 31 criminal convictions during his lifetime, including convictions for felony drug offenses, violent assaults, and driving while intoxicated.
Ries was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Ries was sentenced to 180 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
Ries is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Ajay J. Alexander and investigated by the Iowa Great Lakes Drug Task Force, specifically the Clay County Sheriff’s Office, the Spencer Police Department, and the Iowa Department of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-4043-LTS.
Follow us on Twitter @USAO_NDIA.
Middle District of Florida U.S. Attorney’s Office Collects More Than $700 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2017Read the Press Release
Tampa, FL - U.S. Attorney Maria Chapa Lopez announced today that the Middle District of Florida (MDFL) collected $700,928,675 in criminal and civil actions in the fiscal year ending September 30, 2017 (FY 2017). This represents the largest aggregate recovery amount in the district’s history. Of this amount, $34,800,537.04 was collected in local civil actions and $15,469,146.50 was collected in criminal actions. The Office’s Civil Division, led by Randy Harwell, also worked jointly with other U.S. Attorney’s Offices and Department of Justice (DOJ) components in nationwide civil cases that addressed fraud schemes and illegal practices extending beyond district boundaries, recovering an additional $650,658,992.01 in these jointly handled cases.
Additionally, the Office’s Asset Forfeiture Division, led by Anita Cream, recovered $18,633,392 in asset forfeiture actions last fiscal year. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. For instance, in FY 2017, more than $9 million forfeited in the MDFL in prior years was returned to victims of the criminal offenses upon which the forfeitures were based, and more than $6.7 million was shared with federal, state, and local law enforcement agencies.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in FY 2017.
“Working in conjunction with our federal, state, and local law enforcement partners, our collection efforts have resulted in the recovery of funds from convicted criminals and others who have violated our nation’s laws through fraud and other means,” said U.S. Attorney Chapa Lopez. “These coordinated efforts ensure that criminals and others who commit fraud are held accountable for their offenses and, wherever possible, help victims recover from their losses.”
U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, the Defense Health Agency, the Internal Revenue Service, the Small Business Administration, and the Department of Education. See below for MDFL significant civil case highlights.
FY 2017 Criminal Cases
In FY 2017, the MDFL recovered $15,469,146.50 in criminal collections, primarily restitution owed by criminal defendants. Of those funds, $6,703,417.60 was collected at or before sentencing as a result of our analysis of defendants’ ability to pay. The MDFL began aggressively pursuing prejudgment collection several years ago after recognizing that it was the most effective means of collecting criminal debt. Most defendants have a minimal ability to pay restitution following their release from prison. By notifying defendants prior to sentencing of the assets that the United States believes a defendant has available to pay restitution, we increase the likelihood that restitution will be timely paid to victims and decrease the chances that a defendant will dissipate his assets before being ordered to pay restitution at sentencing.
FY 2017 Civil Cases
Civil Healthcare Fraud
United States ex rel. Vinca v. Advanced Biohealing, Inc.,
Case no. 8:11-civ-176-T-30MAP (M.D. Fla.)
Six qui tam cases led to a nationwide investigation into the kickback practices of a manufacturer of a skin graft product used to promote healing of skin ulcers. The product has been approved by the U.S. Food and Drug Administration for wound healing below diabetic patients’ knees. The relators claimed the defendant’s sales force was systematically instructed by management to pay kickbacks to physicians in the form of meals, entertainment, and other illegal remuneration to induce the purchase of the product. U.S. Department of Veterans Affairs physicians were a particular focus of this illegal behavior. Working with three other U.S. Attorneys’ offices and the DOJ Civil Division, the MDFL Civil Division investigated these claims exhaustively all over the country and corroborated them. In January 2017, we partially intervened in all six cases and settled the kickback allegations for $350,000,000. This is the largest civil settlement in a case involving a medical device in the history of the False Claims Act, and the largest civil settlement of any kind in the history of our district. A number of executives and physicians have also pleaded guilty to health care fraud offenses in a parallel criminal case.
United States ex rel. Martin v. Life Care Centers, Inc.,
Case no. 1:08-cv-251 (M.D. Tenn.)
This case was one of two overlapping qui tam cases consolidated in the Middle District of Tennessee that alleged violations of the False Claims Act by a nationwide provider of rehabilitation therapy services. The relators alleged that the provider had upcoded its services and provided medically unnecessary rehabilitation to patients at its facilities all over the country, including in the MDFL. Our district joined a number of other United States Attorneys’ Offices to assist the Department of Justice Civil Frauds Section in the litigation that ensued after DOJ intervened in the case in 2012. After five years of litigation, we finalized a settlement of all claims against the provider and its principal, Forrest Preston, for $145,000,000.
United States ex rel. Sewall v. Freedom Health, Inc.,
Case no. 8:09-cv-1625-T-35AEP (M.D. Fla.)
A former management level employee of an affiliated company of the defendant Part C managed care plan filed this qui tam complaint in August 2009, alleging that the defendants had illegally dis-enrolled the plan’s most costly beneficiaries, and kept healthy beneficiaries enrolled, in violation of the federal regulations governing the plan. Moreover, he contended that Freedom Health had fraudulently induced the government to authorize an expansion of the plan’s service area by representing to Medicare that it had contracted with a costly network of medical providers that it had no intention of using. Finally, the defendants allegedly used fraud to manipulate risk adjustment data given to Medicare to determine the level of payments to the plan.
After pursuing an investigation into the relator’s allegations in parallel proceedings for seven years, we intervened in the qui tam case and settled the risk adjustment claims and claims associated with service area expansion for $31,695,000. An individual defendant, Sidd Pagidipati, who oversaw the plan’s service area expansion application paid an additional $750,000 to resolve personal claims against him for his role in the service area expansion allegations. This case features the largest settlement of a Medicare Advantage risk adjustment claim on record.
United States ex rel. Barnes v. 21st Century Oncology, Inc., et al.,
Case no. 2:13-civ-228-FtM-99DNF (M.D. Fla.)
A former medical assistant of a nationwide oncology provider alleged in a qui tam complaint that the defendants had fraudulently billed Medicare and TriCare for fluorescence in situ-hybridization cytology (FISH) tests used to identify genetic abnormalities too small to be seen microscopically. The relator alleged that employee physicians of the defendant systematically ordered FISH tests that were not medically necessary, and would alter medical records in order to justify ordering FISH tests. Defendant 21st Century allegedly encouraged these fraudulent practices by offering bonuses to physicians based on the number of FISH tests ordered.
In 2016, we announced settlements of our claims against 21st Century Oncology for $19.75 million and our claims against two individual physicians, Dr. Robert Scapa and Dr. David Spellberg, for $250,000 and $1.5 million, respectively. In 2017, we finalized a settlement with the last remaining individual physician in the case, Dr. Meir Daller, for $3,810,000, representing a recovery of treble damages.
Southeast Orthopedics Specialists (pre-lawsuit)
A Jacksonville orthopedics practice was investigated in response to a direct program referral, and was determined to have engaged in a number of improper billing practices that defrauded federal health programs, including the abusive use of billing modifiers, submitting claims for medically unnecessary ultrasound guided injections, and other illicit practices. The physicians’ practice agreed to settle the government’s claims through a settlement that paid $4,488,000.
United States ex rel. Gross v. Norman, Case no. 8:14-civ-978-T-33EAJ (M.D. Fla.)
A patient of a Tampa thyroid surgeon filed a qui tam lawsuit alleging that the surgeon had defrauded federal health programs through improper practices such as performing pre-operative examinations on the day before or the day of surgery procedures, and charging extra fees from federal health care beneficiaries for services for which he had already received payment from the government. Following a comprehensive investigation, we settled these civil fraud claims for $4,000,000.
Civil Mortgage Fraud
Freedom Financial Acquisitions (pre-lawsuit)
A whistleblower alerted the Department of Housing and Urban Development (HUD) to allegations that this underwriter had submitted false claims to HUD’s Federal Housing Administration (FHA) insurance program by failing to meet regulatory requirements in connection with its participation in a federally insured Home Equity Conversion Mortgages (HECM) or “reverse mortgage” program. Specifically, the defendant had failed to obtain appraisals within 30 days of reverse mortgage loans becoming due and payable, and failed to pursue foreclosure in a manner consistent with HUD regulations. Witness interviews and document review revealed other defects in Freedom Financial’s servicing of these loans, including failure to notify HUD that it was pursuing foreclosure in a timely fashion, failure to employ reasonable diligence in servicing a HECM loan after it had become due and payable, and failure to submit HECM insurance claims in a timely fashion. Freedom Financial ultimately agreed to settle claims under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and the False Claims Act arising from these shortcomings for $89,274,944, which included credit for a voluntary disclosure that the defendant had earlier made to the FHA program in the amount of $21,000,000.
Olympus Zarris (pre-lawsuit)
The reverse mortgage practices of a Tarpon Springs condominium developer, Olympus Zarris, were investigated and were found to have violated the requirements of HUD’s regulations that govern the agency’s reverse mortgage lending program. Zarris was found to have engaged in fraudulent sales practices wherein he concealed the amounts paid to the buyers in order to artificially inflate the appraised values of condominium complex units. He recruited elderly buyers to purchase units at the inflated values and required them to immediately apply for reverse mortgages in the maximum amount possible. Zarris and his associates assisted the elderly buyers in applying for reverse mortgages, including filling out their loan applications. The proceeds of the reverse mortgages obtained through these misleading applications were then wired to a company Zarris owned at the reverse mortgage closing. Zarris agreed to resolve the government’s claims under the False Claims Act through a settlement that paid $475,000.
Civil Penalties
McKesson (pre-lawsuit)
This was a coordinated, multi-district investigation by twelve United States Attorneys’ Offices into the conduct of one of the largest distributors of class II narcotics in the country. The Drug Enforcement Administration (DEA) referred the matter for pursuit of civil penalties under the Controlled Substances Act, alleging that McKesson had failed to report suspicious orders of opiate medications at a number of its distribution centers. The Florida investigation centered upon the defendant’s activities at its Lakeland distribution center, which was found to have failed to report suspicious orders of hydromorphone to at least two Florida pharmacies. The government presented its findings concerning the nationwide conduct to McKesson, and ultimately negotiated a settlement that paid $150,000,000 in civil penalties and that will suspend McKesson’s DEA registrations for a period of two years at a number of its distribution centers. In a landmark feature of the settlement, McKesson also agreed to independent oversight of its suspicious orders reporting program by a third-party monitor.
Cardinal Health (pre-lawsuit)
The DEA referred a civil penalty case against a major distributor of Class II narcotics, Cardinal Health, over its failure to report suspicious orders of opiate medications made by pharmacies in the central Florida area. The conduct, which was rampant during the time period running from 2009 to May 2012, gave rise to exposure to civil penalties under the Controlled Substances Act. The District of Maryland joined forces with the effort to address Cardinal Health’s failure to report suspicious orders of a similar nature in the Baltimore area, and the Southern District of New York opened an investigation into the failure by a Cardinal subsidiary, Kinray, to maintain sufficient controls over deliveries of Class II narcotics in the Manhattan area.
After several years of investigation, we negotiated an agreement to settle the Florida and Maryland claims for $34,000,000. The Southern District of New York settled claims against the Kinray subsidiary for an additional $10,000,000.
FY 2017 Asset Forfeiture Cases
United States v. Davanzo et al.
Case no. 2:15-cr-141-FtM-38MRM (M.D. Fla.)
Defendants Thomas Davanzo and Robert Fedyna pleaded guilty to wire fraud and money laundering conspiracies arising out of a scheme that took advantage of regulations implemented by the EPA that were intended to induce traditional petroleum producers to use renewable fuels in their products by requiring producers to purchase “Renewable Identification Numbers” from renewable fuel producers. In October 2016, the Court entered Forfeiture Money Judgments against them in the amount of $46,360,724.50. The Court also entered preliminary orders of forfeiture for assets they had purchased with proceeds from the scheme. Collectively, this included the forfeiture of 27 bank accounts, a 43-foot Motor Yacht, 4 high end vehicles, 4 thoroughbred horses, 2 pieces of real property, gold coins, jewelry, and cash. Final Orders of Forfeiture were entered for these assets in February and March 2017. To date, we have liquidated/collected approximately $4,315,991.63 as a result of these forfeitures. Some of the assets are still for sale.
United States v. Idhedoise et al.
Case no. 8:15-cr-320-T-23TGW (M.D. Fla.)
Priscilla Ellis, Perry Cortese, and Kenietta Johnson were involved in a sophisticated fraud and money laundering network that preyed on victims throughout the world. They helped members of that network defraud victims across the United States and then laundered the funds, transferring much of it overseas.
In August 2015, we obtained seizure warrants to seize numerous bank accounts involved in the scheme. Ellis, Cortese, and Johnson were indicted in September 2015 and proceeded to trial in October 2016. All three defendants were ultimately convicted of conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Following briefing and a hearing, the Court entered forfeiture money judgments against the defendants in the amount of $9,288,241.36 and preliminary orders of forfeiture forfeiting jewelry, 14 bank accounts, 3 Mercedes-Benz vehicles, and 4 pieces of real property to the United States. The net proceeds obtained from the sale of the forfeited assets will be applied to the forfeiture money judgment. The MDFL intends to seek authorization from DOJ to use the forfeited funds to pay victims.
United States v. Pinon et al.
Case no. 5:14-cr-41-Oc-10PRL (M.D. Fla.)
Rolando Pinon and his codefendants were prosecuted for their participation in a cocaine trafficking conspiracy that lasted more than seven years and involved the distribution of well over 50 kilograms of cocaine. Pinon, the lead defendant, was a resident of San Benito, Texas, who regularly distributed cocaine to Swoll, an Ocala resident. As part of his sentence, the Court forfeited four pieces of real property, and $84,000 cash in lieu of another property from Pinon in FY 2017, for a total forfeiture amount of $752,000 (with the additional $130,500 in vehicles sold in FY 2016).
Maryland Man Sentenced to 102 Months in Prison for His Role in Drug Trafficking OrganizationRead the Press Release
WASHINGTON - Bradley Cobbler, 35, of Hyattsville, Md., has been sentenced to 102 months in prison on a federal drug conspiracy charge stemming from his role in a drug trafficking ring that sold cocaine, marijuana, and other narcotics in the Washington, D.C. area.
The announcement was made today by U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, Andre R. Watson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Baltimore, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Cobbler pled guilty in March 2017 to one count of conspiracy to distribute and possession with intent to distribute cocaine and marijuana. He was sentenced on Jan. 29, 2018, by the Honorable Amit P. Mehta. Following his prison term, Cobbler will be placed on five years of supervised release.
According to the government’s evidence, Cobbler and others participated in a conspiracy to distribute large amounts of narcotics between 2009 and 2014. This case represented the end result of a more than three-year investigation into illegal drug distribution and other criminal activity which, in various capacities, involved or occurred in the District of Columbia and the States of Maryland, California, and Virginia. This drug trafficking group mainly involved itself with trafficking very large quantities of marijuana, but also involved itself with redistributing various and significant quantities of heroin and cocaine hydrochloride (powder cocaine). In that regard, during the conspiracy, California suppliers frequently sent – or conspired to send – large quantities of marijuana, heroin, or cocaine to the Washington, D.C., metropolitan area, where the defendant and others participated in the illegal redistribution of one or more of the controlled substances to others in the Washington, D.C., area for profit.
Beginning sometime in 2011 and continuing until August 2014, Cobbler had an agreement to distribute and possess with the intent to distribute cocaine and marijuana, and other narcotics, with various individuals in the Washington, D.C., metropolitan area, specifically including the District of Columbia and Prince George’s County, Md.
Cobbler acknowledged that he and another co-defendant initially started pooling their money together to purchase marijuana from a California supplier and they traveled together on some occasions to California to facilitate drug deals. Cobbler also admitted that he gave quantities of narcotics to co-conspirator during 2014 for the purposes of redistribution to others. Other co-defendants then sold these narcotics.
Cobbler was arrested on April 7, 2016 and has been in custody ever since. Several others previously pled guilty to charges in the investigation.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge Vale, Special Agent in Charge Watson, and Chief Newsham praised the work of the FBI Safe Streets Gang Task Force, which in this case involved work from the FBI, the Metropolitan Police Department, and HSI. They also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias. Finally, they commended the work of Assistant U.S. Attorneys Kenneth F. Whitted, Andrea G. Duvall, and Emory V. Cole, who indicted and prosecuted the case.
Man Sentenced After Intimidating Spirit Airlines Flight AttendantsRead the Press Release
Michael Anthony Minko, 36, of White Springs, Florida, was sentenced to two concurrent sentences of two months imprisonment, after pleading guilty to two counts of intimidating a flight attendant of an aircraft in flight in the United States.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
On July 18, 2017, Minko intimidated two Spirit Airlines flight attendants on a flight from Newark, New Jersey to Fort Lauderdale, and interfered with the performance of their duties. Specifically, after the flight departed, the defendant drank an excessive amount of whiskey from a bottle in his possession and consumed prescription alprazolam (generic form of Xanax). During the course of the flight, Minko cursed, used abusive language, made verbal threats and exhibited threatening actions. As a result, a flight attendant and three passengers used plastic flex cuffs to secure Minko’s hands behind his back.
U.S. District Judge Beth Bloom ordered Minko to report on Friday, February 23, 2018, to commence his term of imprisonment at that time, thereby allowing the defendant to continue his treatment at an alcohol and drug treatment facility.
Mr. Greenberg commended the investigative efforts of the FBI in connection with this matter. This case was prosecuted by Assistant U.S. Attorney William T. Shockley.
Michael Anthony Minko, 36, of White Springs, Florida, was sentenced to two concurrent sentences of two months imprisonment, after pleading guilty to two counts of intimidating a flight attendant of an aircraft in flight in the United States.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
On July 18, 2017, Minko intimidated two Spirit Airlines flight attendants on a flight from Newark, New Jersey to Fort Lauderdale, and interfered with the performance of their duties. Specifically, after the flight departed, the defendant drank an excessive amount of whiskey from a bottle in his possession and consumed prescription alprazolam (generic form of Xanax). During the course of the flight, Minko cursed, used abusive language, made verbal threats and exhibited threatening actions. As a result, a flight attendant and three passengers used plastic flex cuffs to secure Minko’s hands behind his back.
U.S. District Judge Beth Bloom ordered Minko to report on Friday, February 23, 2018, to commence his term of imprisonment at that time, thereby allowing the defendant to continue his treatment at an alcohol and drug treatment facility.
Mr. Greenberg commended the investigative efforts of the FBI in connection with this matter. This case was prosecuted by Assistant U.S. Attorney William T. Shockley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Lubbock Man Sentenced to 262 Months in Federal Prison for Distributing CocaineRead the Press Release
LUBBOCK, Texas — Gregory Jerome Mitchell, aka “Jimmy Jombo Kalu,” 33, was sentenced on January 19, 2018 by Senior U.S. District Judge Sam R. Cummings to 262 months in federal prison for distributing cocaine, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Mitchell was charged in August 2017 with multiple counts of distribution and possession with intent to distribute cocaine base and methamphetamine. Mitchell pleaded guilty in September 2017 to one count of distribution or possession with intent to distribute 28 grams or more of cocaine base. He has been in custody since his arrest in August 2017.
According to the plea documents filed in the case, on May 24, 2017, Mitchell arranged to sell six ounces of crack cocaine in exchange for $3,600.00. Mitchell was ultimately held responsible for approximately 550 grams of cocaine base and approximately four kilograms of methamphetamine.
The case was investigated by the Drug Enforcement Administration and Lubbock County Sheriff’s Office. Assistant U.S. Attorney Sean Long prosecuted.
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Los Angeles Man Convicted for Possessing and Conspiring to Distribute over One Kilogram of HeroinRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury has found William Harold Wright, Jr. (56, Los Angeles, CA), a/k/a “Flat Top,” guilty of conspiracy to distribute and to possess with the intent to distribute one kilogram or more of heroin, possessing heroin with the intent to distribute it, and possessing greater than 100 grams of heroin with the intent to distribute it. He faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for April 30, 2018.
Wright. was indicted on October 4, 2016.
According to testimony and evidence presented at trial, in April 2015, the Federal Bureau of Investigation, the Pinellas County Sheriff’s Office, and the St. Petersburg Police Department began investigating a heroin distribution network in Pinellas County. Law enforcement officers working in an undercover capacity conducted a series of controlled drug transactions from 2015 through 2016, purchasing from one to nine ounces of heroin in a series of transactions. Investigators later discovered that Wright had been supplying the heroin that the undercover officer had purchased. In June 2016, law enforcement officers observed Wright. and a co-conspirator retrieve a crate in St. Petersburg that had been shipped from California. The crate contained a kilogram of heroin that had been concealed in a countertop. Officers later arrested Wright.
This case was investigated by the Federal Bureau of Investigation, the Pinellas County Sheriff’s Office, the St. Petersburg Police Department, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys James C. Preston and Charlie D. Connally.
London Man Sentenced to Prison and Faces Deportation for Assaulting and Attempting to Rob Man in GeorgetownRead the Press Release
WASHINGTON – Paolo Aldorasi, 35, of London, was sentenced today to a prison term and now faces deportation for assaulting and attempting to rob a man who he forced into his sport utility vehicle in the Georgetown area of Washington, D.C., announced U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department.
Aldorasi pled guilty in November 2017 to assault with intent to commit robbery, a District of Columbia offense. The plea took place in the U.S. District Court for the District of Columbia. As part of the plea agreement, a federal kidnapping charge was dismissed.
Aldorasi was sentenced by the Honorable Richard J. Leon to 24 months in prison, with all but 11 months of that time suspended. Because Aldorasi already has been incarcerated for 11 months, he now faces deportation back to London. Judge Leon also ordered that Aldorasi be placed on five years of probation; during that time, the judge barred him from the United States.
According to a factual proffer submitted at the plea hearing, on Jan. 26, 2017, at about 3:20 p.m., Aldorasi saw the victim walking eastbound in the 3400 block of O Street NW. Aldorasi, who was operating a sport utility vehicle, pulled alongside the victim and asked for directions to Washington Dulles International Airport. The victim, who speaks limited English, said he did not know the location. As the conversation continued, Aldorasi grabbed the victim and ordered him into the SUV. He then drove off with the victim, taking him to four ATMs in the District of Columbia, in unsuccessful attempts to withdraw money, as well as to two retail establishments in unsuccessful attempts to make purchases. After the last failed attempt, at a retail store in the 4500 block of Wisconsin Avenue NW, he finally let the victim go.
Aldorasi was arrested by the FBI’s Seattle Field Office on Feb. 24, 2017, in SeaTac, Washington, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge Vale, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They expressed appreciation for the assistance provided by the FBI’s Seattle Field Office and the U.S. Attorney’s Office for the Western District of Washington. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz, Catherine O’Neal and Teesha Tobias; Legal Assistants Peter Gaboton and Holly Crouse, and Assistant U.S. Attorneys Kamilah O. House and Emory V. Cole, who prosecuted the matter.
Kentucky man pleads guilty to sex trafficking of a minorRead the Press Release
CHARLESTON, W.Va. – A Kentucky man pleaded guilty today to a sex trafficking crime, announced United States Attorney Mike Stuart. David Wayne Young, 47, of Ashland, faces at least 15 years and up to life in federal prison when he is sentenced on May 1, 2018. He also faces at least five years and up to life on federal supervised release once he is released from prison, and he will be required to register as a sex offender.
U.S. Attorney Stuart commended the investigative efforts of the FBI Violent Crimes Against Children Task Force, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, the Ashland Police Department, and the Boyd County Sheriff’s Department.
“Let me be clear – we have zero tolerance for sex trafficking of children. We will continue working with our law enforcement partners and use every tool at our disposal to come after those who put our children in danger,” said U.S. Attorney Stuart. “I want to thank all the officers who work tirelessly day in and day out to protect the children of our community and to keep sexual predators off the street.”
Young admitted that in March 2017, he communicated with his codefendant, Misty Dawn Baisden, and asked Baisden to provide him with a minor under the age of 14 for the purpose of engaging in commercial sexual activity. Young additionally admitted that the communication involved discussion of exchanging money, items, or other things of value for sexually explicit photographs of the minor. He further admitted that subsequent communications with Baisden included discussions that involved Young offering to provide Baisden with a minor for sexual activity in exchange for her providing him with a minor for sexual activity.
Baisden previously pleaded guilty to conspiracy to engage in sex trafficking of a minor, and faces up to life in prison when she is sentenced on February 13, 2018.
Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Kayenta Man Sentenced to 20 Years in Federal Prison for Involuntary Manslaughter and Aggravated Assault Related to Drunk DrivingRead the Press Release
PHOENIX – Yesterday, James Robertson Young, 29, of Kayenta, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge Steven P. Logan to 240 months in prison followed by three years of supervised release. Young had previously pleaded guilty to involuntary manslaughter and aggravated assault.
The case involved Young driving his vehicle with a BAC level of between .171 and .20, causing a head-on collision with another vehicle carrying four minor children (aged 8, 9, 10, and 14) and their grandparents. The victims, all of whom are members of the Navajo Nation, had been traveling to the Grand Canyon to vacation and sell hand-made Navajo jewelry. The collision killed five of the family members and seriously injured the sixth (the 14-year-old girl). At sentencing, the surviving victim spoke about the physical and emotional injuries she had sustained as a result of the incident, other family members spoke about the deceased grandparents’ many contributions to their community, and the mother of the deceased children talked about her children, their short lives, and how much they will be missed. Before imposing sentence, Judge Logan told the defendant: “It is now 12:07. The boys that you killed should be at school and in lunch hour, wondering if they are going to get chocolate milk or pizza in their lunches. That’s what they should be thinking right now, but you took all of that away from them when you drove drunk and killed them.”
The investigation in this case was conducted by the Federal Bureau of Investigation, the Navajo Nation Department of Law Enforcement, and the Arizona Department of Public Safety. The prosecution was handled by Sharon K. Sexton, Assistant U.S. Attorney, District of Arizona.
CASE NUMBER: CR-17-8132-PCT-SPL
RELEASE NUMBER: 2018-008_Young
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
KC Man Sentenced for $1.2 Million Oxycodone ConspiracyRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a $1.2 million conspiracy to distribute oxycodone that was obtained by using forged and fraudulent prescriptions.
Gary D. Dickinson, also known as “James DeJong,” 50, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 10 years and 10 months in federal prison without parole.
On May 16, 2017, Dickinson pleaded guilty to participating in a conspiracy that lasted from June 2013 to January 2016 to distribute oxycodone. Conspirators obtained prescription-quality paper commonly used by authorized health care providers to write prescriptions. They also obtained the DEA registration numbers of health care providers, which they used to prepare fraudulent prescriptions for oxycodone.
Conspirators took the false prescriptions to pharmacies in Kansas City metropolitan area and elsewhere. They commonly sold the oxycodone 30mg pills for between $15 to $25 per pill.
Following several undercover purchases of fraudulent prescriptions from Dickinson, law enforcement officers executed a search warrant at Dickinson’s residence on Dec. 23, 2013. Detectives recovered several prescription pill bottles and drug paraphernalia (including pipes, syringes and scales). They also recovered two laptop computers, false prescriptions, blank prescription paper, contact lists and other documentation, including what appeared to be a written instructions on what to say if a pharmacist called to confirm the validity of a prescription.
Dickinson said he obtained false prescriptions from co-defendant Robert G. Joy, also known as “Bear,” 34, of Kansas City, Mo. Dickinson said he filled prescriptions for Joy, then gave him the Oxycodone in exchange for $175 to $225. On Dec. 26, 2013, Dickinson was arrested while attempting to fill a false prescription at The Drug Store in Odessa, Mo. Dickinson admitted that he passed, and attempted to pass, fraudulent prescriptions at several more locations in the months following his arrest. Dickinson was arrested on several occasions, including while attempting to pass more fraudulent prescriptions and after a car stop while he was driving a stolen truck and in possession of 65 Oxycodone pills, 6.5 grams of cocaine and .85 grams of methamphetamine.
On May 19, 2014, law enforcement officers executed a search warrant at Dickinson’s room at the Argosy Hotel. Officers found numerous items associated with the manufacture of false prescriptions, including a laptop computer with stored templates for prescriptions and checks, over 200 sheets of blank prescription quality paper, false prescriptions and other items.
Dickinson is among 11 defendants convicted in this case. Joy pleaded guilty and was sentenced to 10 years and 10 months in federal prison without parole. Eight co-defendants have also been sentenced, and one co-defendant awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the Missouri State Highway Patrol, and the police departments of Riverside, Blue Springs, Independence, Kearney, Odessa, Nevada, Higginsville, Drexel Lee’s Summit and Butler.
Jamaican National Arrested for Aggravated Identity TheftRead the Press Release
BOSTON – A Jamaican national was arrested last night for misuse of a Social Security number and aggravated identity theft.
Basil Ledgister, 41, was indicted on one count of misuse of a Social Security number and one count of aggravated identity theft. He will appear in federal court in Boston before U.S. District Court Magistrate Judge Jennifer C. Boal today at 2:45 p.m.
According to the indictment unsealed today, in January 2015, Ledgister falsely represented that a Social Security number belonging to another person was his in an application for a license at the Registry of Motor Vehicles. The indictment further alleges that Ledgister committed aggravated identity theft by using the Social Security number of another person in committing the crime of false representation of a Social Security number.
False representation of a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence, one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the Boston Field Office of the U.S. Department of State's Diplomatic Security Service; Scott Antolik, Special Agent in Charge of the Social Security Administration Office of Inspector General; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Rob Richardson of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Huntington drug dealer pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty yesterday to a federal drug trafficking crime, announced United States Attorney Mike Stuart. Cortez Quayveon Brown, 27, entered his guilty plea to distribution of heroin.
A confidential informant working with law enforcement called Brown on March 3, 2016, to arrange a drug deal for heroin. Brown later met the informant at his 7th Street apartment in Huntington, where he distributed approximately 5.5 grams of heroin in exchange for $1,500. Brown also provided the informant with additional heroin weighing approximately 10.4 grams.
Special agents from the Drug Enforcement Administration seized nearly 8 grams of heroin and $5,500 in cash during the execution of a federal search warrant at Brown’s apartment on March 10, 2016. Special agents also discovered a loaded .380 semi-automatic handgun and a loaded .22 caliber semi-automatic handgun in the kitchen stove. Brown admitted to arranging additional controlled buys of heroin in which he used others to make the actual deliveries. The heroin recovered from all the controlled buys and the search was sent to the DEA Mid-Atlantic Laboratory, which confirmed that the substance was heroin with a total weight of 94.71 grams.
U.S. Attorney Stuart commended the Drug Enforcement Administration for their investigative efforts.
Brown faces up 20 years in federal prison when he is sentenced on May 7, 2018.
Assistant United States Attorney R. Gregory McVey is responsible for the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Houston Resident Convicted of SORNA ViolationRead the Press Release
HOUSTON – A 33-year-old man from Harris County has entered a guilty plea to failure to register as a sex offender, announced U.S. Attorney Ryan K. Patrick. Nicholas Isaiah Carlson admitted he violated the Adam Walsh Act, aka Sex Offender Registration and Notification Act (SORNA).
On Jan. 8, 2013, Carlson was convicted in Benton County, Oregon, for sexual abuse in the second degree. As a result, he was required to register as a sex offender until January 2023.
Carlson originally came to Houston in August 2016. Although he held a number of jobs and resided in Houston for several months, he never registered as required with authorities. During the plea hearing today, Carlson admitted he knowingly and intentionally failed to register as sex offender. He further acknowledged he knew he was required to do so after arriving in Harris County.
Sentencing has been set for April 17, 2018, before U.S. District Judge Nancy Atlas. At that time, Carlson faces up to 10 years imprisonment and a possible $250,000 maximum fine.
The U.S. Marshals Service conducted the investigation.
Assistant U.S. Attorney Julie N. Searle is prosecuting the case which 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Houston Man Gets Significant Sentence for Trafficking MethRead the Press Release
HOUSTON – A 46-year-old resident of Houston has been ordered to federal prison for his conviction of trafficking nearly six kilograms of methamphetamine, announced U.S. Attorney Ryan K. Patrick. Marco Antonio Aparicio-Santos pleaded guilty Aug. 12, 2016.
Today, Senior U.S. District Judge David Hittner sentenced Ortiz-Flores to 210 months in federal prison to be immediately followed by five years of supervised release.
At the time of his plea, Aparicio-Santos admitted to playing a key role in attempting to deliver methamphetamine in the Houston area.
On June 13, 2014, a confidential source mistakenly received several bundles which contained approximately six kilograms of methamphetamine from two unknown male couriers working with him. The couriers had approached the source and mistakenly threw a bag in his car containing six bundles of methamphetamine. The source quickly realized the bundles contained drugs and contacted federal agents who advised him to contact a co-defendant Jesus Ortiz-Flores. At that time, Ortiz-Flores advised him that drugs were supposed to go to Aparicio-Santos who was then supposed to divide it up and provide to others.
Ortiz-Flores told the source he could just sell the some of the drugs himself. The source later told Ortiz-Flores he “sold” two kilograms of methamphetamine. Upon the direction of Ortiz-Flores, the source then delivered the remaining four kilograms to Aparicio-Santos for him to sell. The drugs were hidden inside a spare tire and delivered as instructed.
Officers then conducted a traffic stop on a vehicle Aparicio-Santos was driving and seized the methamphetamine. All six of the bundles of methamphetamine were subsequently sent for further analysis, which demonstrated the drugs had a net weight of 5.924 kilograms and were 100% pure.
The drugs had been imported from Mexico.
The evidence in the case also revealed Aparicio-Santos was involved in other methamphetamine trafficking transactions totaling more than 11 kilograms for which he was also held accountable at the hearing today.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Ortiz-Flores was also convicted and later sentenced to 25 years in federal prison.
The Drug Enforcement Administration, Houston Police Department and Harris County Sheriff’s Office conducted the Organized Crime Drug Enforcement Task Force investigation. Assistant U.S. Attorneys Arthur R. Jones and Ted Imperato are prosecuting the case.
Houston Man Convicted of Multiple Child Pornography ChargesRead the Press Release
HOUSTON – A 28-year-old Houston man has entered a guilty plea to two counts of production and one count of possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
Robert Matthew Jimenez admitted he had solicited named images of a 14-year-old girl who resided in Buffalo, New York.
The girl’s father had learned that someone she believed was a 17-year-old male had contacted her via the Internet. The father reported to authorities that his minor daughter had been sending naked images of herself at the request of that person. However, the investigation revealed it was not a 17-year-old boy, but was, in fact, Jimenez.
He had manipulated the minor female and caused her to take images of herself, images that constitute child pornography. The investigation revealed he had also done this to at least one other identified minor female.
Jimenez texted the minors and used social media applications such as Facebook, Snapchat and Instagram to manipulate the minors into sending the images. He was often abusive and aggressive in his communications with them.
Authorities executed a search warrant at his Houston residence which resulted in the discovery of the second victim. Authorities also discovered that he also sent a picture of his genitalia to that victim.
Jimenez is believed to have contacted dozens of other females.
U.S. District Judge Nancy Atlas accepted the plea today and has set sentencing for April 17, 2018. At that time, Jimenez faces a minimum of 15 and up to 30 years in prison for each of the production counts as well as another 10 years for the possession. The charges also carry a potential fine of up to $250,000. He will also be ordered to serve a minimum of five years and up to life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also have to register as a sex offender.
He will remain in custody pending his sentencing hearing.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack prosecuted the case which 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Hartford Man Pleads Guilty to Distributing Heroin and Fentanyl Involved in 2 Overdose DeathsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that RUBEN MORALES, 44, of Hartford, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to one count of distribution of heroin and fentanyl.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on December 24, 2016, Hartford police officers and emergency medical personnel responding to reports of unresponsive individuals discovered two male overdose victims in different locations on Zion Street in Hartford. A 33-year-old victim was pronounced deceased shortly after he was discovered in the rear parking lot of an apartment complex on Zion Street. At the scene, officers seized various items of drug-related paraphernalia. Officers found a 25-year-old victim on the rear porch of an apartment on Zion Street. The victim was transported to the hospital and later pronounced deceased.
The Connecticut Office of the Chief Medical Examiner subsequently determined that the 33-year-old victim’s death was caused by a combination of cocaine, heroin, and fentanyl, and the 25-year-old victim’s death was caused by a combination of cocaine, ethanol, and fentanyl.
The investigation revealed that MORALES supplied fentanyl-laced heroin that both victims consumed shortly before they died.
In January and February 2017, members of the FBI’s Northern Connecticut Violent Crime Gang Task Force conducted six controlled purchases of heroin from MORALES. Subsequent lab analysis confirmed the presence of fentanyl in some of the heroin purchased.
MORALES was arrested on a federal complaint on February 16, 2017.
MORALES is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on May 2, 2018, at which time he faces a maximum term of imprisonment of twenty years. He is released on a $100,000 bond pending sentencing.
The FBI’s Northern Connecticut Violent Crime Gang Task Force includes members from the FBI, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Natasha Freismuth.
Gulfport Man Sentenced to 4 Years in Prison for Drug CrimeRead the Press Release
Gulfport, Miss. – Travis Madden, 41, of Gulfport, Mississippi, was sentenced today by U.S. District Judge Sul Ozerden to serve 48 months in federal prison followed by three years of supervised release for possession with intent to distribute cocaine, announced U.S. Attorney Mike Hurst, Special Agent in Charge Dana Nichols, Bureau of Alcohol, Tobacco Firearms and Explosives, and Stephen G. Azzam, Special Agent in Charge, Drug Enforcement Administration. Madden was also ordered to pay a $5,000 fine.
As part of an ongoing criminal investigation, a search warrant was executed at Travis Madden’s residence on July 17, 2017. During the search of Madden’s residence, agents discovered 70 grams of cocaine, 15 grams of cocaine base, two firearms, and ammunition. Madden confessed to authorities to the possession of the drugs and firearms. Madden pled guilty to the federal charge on October 19, 2017.
The case was investigated by the Gulfport Police Department, Narcotics Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shundral H. Cole.
Government Contractor Charged in $2.6 Million Fraud SchemeRead the Press Release
Charges were unsealed today against a government contractor following his arrest in St. Louis, Missouri, for his role in allegedly carrying out a $2.6 million scheme to defraud at least 35 subcontractors located across the United States.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney McGregor W. Scott of the Eastern District of California, Special Agent in Charge David A. House of the Department of Interior Office of Inspector General’s (DOI-OIG) Western Region Office of Investigations, Special Agent in Charge Ray Park of the U.S. Army Criminal Investigation Command’s (Army CID) Pacific Fraud Field Office, Special Agent in Charge Sean Ragan of the FBI’s Sacramento Division, Director Timothy N. Ries of the Air Force Office of Special Investigations’ (Air Force OSI) Office of Procurement Fraud Investigations and Special Agent in Charge Chris Hendrickson of the Defense Criminal Investigative Service’s (DCIS) Western Field Office made the announcement.
Chester L. Neal Jr., 43, of Fresno, California, was charged in an indictment filed in the Eastern District of California with two counts of mail fraud. Neal will have his initial court appearance later today before Magistrate Judge David D. Noce of the Eastern District of Missouri.
According to the indictment, Neal established and controlled several companies through which he secured at least 105 government contracts to provide various goods and services to federal agencies including the Department of Interior, U.S. Army and U.S. Air Force. The indictment alleges that Neal subcontracted the work to other vendors who provided all of the goods and services to the contracting federal agencies. Neal allegedly made several misrepresentations in order to induce the subcontractors to perform the contractually required work. The indictment further alleges that Neal did not pay his subcontractors even though he was paid by the government for his subcontractors’ work. Instead, Neal allegedly kept the money for his personal use. In total, between July 2008 and December 2017, Neal allegedly defrauded his subcontractors out of at least $2.6 million.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DOI-OIG, Army CID, the FBI, Air Force OSI and DCIS are investigating this matter. Trial Attorney Kyle Maurer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Grant Rabenn of the Eastern District of California are prosecuting the case.
Gautier Man Guilty of Drug Conspiracy After Throwing Drugs and Money from VehicleRead the Press Release
Hattiesburg, Miss. – Jermaine Antonio Newell, 32, of Gautier, pled guilty today before U.S. District Judge Keith Starrett to conspiracy to possess with intent to distribute 100 or more grams of heroin, a schedule I controlled substance, announced U.S. Attorney Mike Hurst and Drug Enforcement Administration (DEA) Special Agent in Charge Stephen G. Azzam.
On November 15, 2017, DEA agents executed three search warrants at three different locations known to be used by Newell, based on information indicating that there would be evidence of drug trafficking activities at the properties. As agents executed one of the search warrants in Soso, Mississippi, a Jones County Deputy Sheriff saw Newell drive by the property and begin throwing bags from the van’s window. Newell threw a bag containing 951 grams of heroin, along with various pills, cocaine, marijuana, a digital scale and approximately $11,000.00 in cash. Shortly after he threw the items, Newell was stopped and arrested. He admitted to conspiring to possess the heroin and intending to distribute it.
Newell will be sentenced on April 17, 2018 at 9:30 a.m. by Judge Starrett, and faces a maximum penalty of 40 years in prison and a $5,000,000 fine.
The case was investigated by the Drug Enforcement Administration with assistance from the Jones County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
Former U.S. Navy Commander Pleads Guilty to Bribery Conspiracy with Foreign Defense ContractorRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – January 30, 2018
SAN DIEGO – Former U.S. Navy Commander Troy Amundson pleaded guilty today to federal bribery conspiracy charges. Amundson is the latest U.S. Navy official to plead guilty in the wide-ranging corruption and fraud investigation involving foreign defense contractor Leonard Glenn Francis and his Singapore-based company, Glenn Defense Marine Asia (GDMA).
Amundson, 50, of Ramsey, Minnesota, pleaded guilty to one count of conspiracy to commit bribery, admitting that he conspired with Francis and others to receive things of value, including entertainment expenses and the services of prostitutes, in exchange for taking official acts for the benefit of GDMA and violating his official duties to the United States Navy. Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving “scores” of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and gifts – from cash, prostitutes and luxury travel to Cuban cigars, Kobe beef and Spanish suckling pigs.
According to admissions made as part of his guilty plea, which was entered today before U.S. Magistrate Judge William V. Gallo of the Southern District of California, from May 2005 to May 2013, Amundson served as the officer responsible for coordinating the U.S. Navy’s joint military exercises with its foreign navy counterparts. As part of his duties, Amundson was responsible for building and maintaining cooperative relationships with the U.S. Navy’s foreign navy exercise partners.
Amundson admitted that from September 2012 through October 2013, Francis paid for dinner, drinks, transportation, other entertainment expenses, and the services of prostitutes for Amundson and other U.S. Navy officers. In one instance, Amundson wrote to Francis from a private e-mail account, arranging to provide Francis with internal, proprietary U.S. Navy information: “Handoff?... [M]y [friend], your program is awesome. I [Amundson] am a small dog just trying to get a bone… however I am very happy with my small program. I still need five minutes to pass some data when we can meet up. Cannot print.” That night, Francis arranged the services of several prostitutes from Mongolia for Amundson.
Having passed confidential, proprietary US Navy information to Francis and having taken numerous other actions in favor of GDMA and in violation of his official duties, Amundson was interviewed by federal criminal investigators in October 2013. As part of his plea agreement, Amundson admitted that he deleted all of his private e-mail account correspondence with Francis following his interview with law enforcement agents earlier that same day.
“Amundson deliberately, methodically, and repeatedly traded his public office for entertainment expenses and the services of prostitutes, and in so doing, aligned himself with a foreign defense contractor over his Navy, his colleagues and his country.” said U.S. Attorney Adam Braverman. “We are pressing forward in this investigation until we are certain that all involved have been held accountable.”
Sentencing is scheduled for April 27, 2018 at 9 a.m. before U.S. District Judge Janis Sammartino.
So far, 20 of 29 defendants charged in the U.S. Navy bribery and fraud scandal have pleaded guilty.
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Fraud Section of the Justice Department’s Criminal Division.
DEFENDANT Case Number: 18CR0468-JLS
Commander Troy Amundson Age 50 Ramsey, Minnesota
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: 5 years in prison, a $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Former Jacksonville Police Officer Sentenced to Life Imprisonment for Sex Trafficking of A ToddlerRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Michael Eugene Williams (61, Jacksonville) to a term of life imprisonment for the commercial sex trafficking of a child, which began when the child was 3 years old. As part of his sentence, the Court also ordered restitution in the amount of $194,905.17 to the minor victim, and ordered the forfeiture of electronic devices used in the commission of the offense, including a cellular telephone, an electronic tablet, and an Internet router.
Williams pleaded guilty to the offense on June 5, 2017.
According to court documents, from at least February 25, 2016, through September 28, 2016, Williams solicited an adult woman in Texas to sexually abuse her 3-year-old daughter, take photographs of the abuse, and sell the photographs to him. An investigation of Williams began in late May 2016, when an Internet Crimes Against Children Task Force detective with Jacksonville Sheriff’s Office (“JSO”) received a cyber tip from the National Center for Missing and Exploited Children. The tip established that Williams was sharing child pornography. JSO obtained a search warrant for Williams’s residence and found more than 450 images and videos of child pornography on his cellular telephone. In addition, a JSO forensic examiner found text communications between Williams and an adult woman in Texas beginning in January 2016, and continuing through July 7, 2016. During this time period, there were approximately 337 messages, mostly sexual in nature, between Williams and the woman about her daughter.
Williams repeatedly requested more explicit pornographic pictures and videos of the minor for money, urging the mother to engage in sexual acts with her child and to have the child perform sexual acts on others and film the activity. Williams sent at least 19 Western Union wire transfers to the mother for the payment of visual depictions of the minor’s sexual abuse, which were funded by Williams’s retirement income from his career as a JSO officer.
Immediately, upon discovery of the depictions of sexual abuse of the then 4-year-old, Homeland Security Investigations and the Jacksonville Sheriff’s Office contacted Texas law enforcement officials and the child was removed from the abusive environment. In an interview with the mother, she indicated she had recently been in contact with Williams via “Kik” messenger and that she had communicated with him as recently as September 2016. On October 21, 2016, a federal search warrant was executed at Williams’s residence, where agents discovered his newly obtained cellular telephone containing additional sexually explicit videos of the 4-year-old child and messages in which Williams indicated his desire to perform sexual acts on the child.
The Texas woman pleaded guilty to two counts of production of child pornography in federal court (Northern District of Texas). She was sentenced to 60 years in federal prison.
“This is one of the most heinous crimes imaginable,” said HSI Tampa Special Agent in Charge James C. Spero. “Thanks to HSI special agents and the Jacksonville Sheriff’s Office, this criminal will no longer be able to sexually abuse children.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (Jacksonville and Dallas), the Jacksonville Sheriff’s Office, the U.S. Secret Service, and the Cleburne Police Department (Texas). It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.