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12 March 2018
Two KC Men Plead Guilty to Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., men pleaded guilty in federal court today to their roles in a conspiracy to commit 10 armed robberies at local businesses.
Jerry D. Patterson, 22, and Michael A. Harris, 19, both of Kansas City, pleaded guilty in separate appearances before U.S. Chief District Judge Greg Kays to the armed robbery conspiracy and to brandishing a firearm in furtherance of a crime of violence.
By pleading guilty today, Patterson and Harris admitted they were involved in a conspiracy to commit 10 armed robberies at area businesses over a four-week period in September and October 2017.
On Oct. 15, 2017, Patterson and Harris stole $3,500 at gunpoint from Walgreens Pharmacy, 1536 E. 23rd St., Independence, Mo. They drove Patterson’s red 2007 Pontiac G6 sedan; after officers discovered the vehicle, Patterson and Harrison abandoned it and fled on foot. Investigators searched the vehicle and found a Glock .40-caliber handgun, an extended .40-caliber magazine, money taken from the robbery, and a number of items used in several of the armed robberies. Agents also found a Kahr Arms .40-caliber handgun (seen in several surveillance videos) in a nearby wooded area.
On Oct. 20, 2017, Patterson reported his car stolen. On Oct. 31, 2017, both Harris and Patterson were arrested at their respective apartments. Evidence from the numerous robberies was recovered from each of their homes.
By pleading guilty today, Patterson and Harris each admitted that they committed a series of armed robberies during the conspiracy. Patterson brandished a Kahr Arms .40-caliber handgun in all of the robberies. Harris brandished a Glock .40-caliber handgun in all of the robberies. In addition to the Walgreens Pharmacy robbery on Oct. 15, 2017, Patterson and Harris admitted they committed nine more armed robberies:
• On Oct. 14, 2017, Patterson and Harris stole $4,275 at gunpoint from Walgreens Pharmacy, 9300 Gregory Blvd., Raytown, Mo.; • On Oct. 14, 2017, Patterson and Harris stole $3,000 at gunpoint from CVS Pharmacy, 6244 S. Brookside Blvd., Kansas City, Mo.; • On Oct. 10, 2017, Patterson and Harris robbed Dollar General, 5105 Blue Ridge Blvd., Raytown, Mo., at gunpoint; • On Oct. 9, 2017, Patterson and Harris stole $3,705 at gunpoint from Walgreens Pharmacy, 2261 S. Sterling Ave., Independence, Mo.; • On Oct. 8, 2017, Patterson and Harris stole $575 at gunpoint from Domino’s Pizza, 3709 S. Noland Road, Independence, Mo. They also stole $400 from employees.
• On Oct. 2, 2017, Patterson and Harris stole $2,500 from CVS Pharmacy, 5310 Blue Ridge Blvd., Raytown, Mo.; • On Sept. 26, 2017, Patterson and Harris stole $380 from Family Dollar, 12521 E. 40 Hwy., Independence, Mo.; • On Sept. 26, 2017, Patterson and Harris stole $150 and some store items at gunpoint from 7 Eleven, 11107 Grandview Rd., Kansas City, Mo.; • On Sept. 10, 2017, Patterson and Harris stole $3,500 from Walgreens, 1100 E. 63rd. St., Kansas City, Mo.
Under the terms of today’s plea agreements, Patterson and Harris are each subject to a sentence of at least 15 years, up to 25 years in federal prison without parole. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and the Raytown, Mo., Police Department.
Tulare Man Pleads Guilty to Making False Statements to Probation OfficerRead the Press Release
FRESNO, Calif. — Rojelio Martin, 36, of Tulare, pleaded guilty today to making false statements to a U.S. Probation Officer, U.S. Attorney McGregor W. Scott announced.
According to court documents, on May 20, 2013, Martin was sentenced to 33 months in prison and a three-year term of supervised release following his convictions on 10 counts of wire fraud. The convictions resulted from when Martin (then a licensed tax preparer) and codefendant Roberto Olivares fraudulently prepared personal tax returns for clients of “Success Income Tax Services,” a Tulare-based business Martin and Olivares formed and operated. The judgement against Martin required him to pay $44,860 in restitution.
Beginning in April 2017, Martin failed to make the court-ordered restitution payments. In support of his claim that his health-related absences from work prevented him from paying restitution, on or about December 13, 2017, Martin gave his supervising U.S. Probation Officer a fraudulent and forged letter from his doctor and a fraudulent statement of earnings.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Martin is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on June 4, 2018. Martin faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
San Fernando Valley Man Sentenced to over 4 years in Federal Prison for Role in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
LOS ANGELES – A Canoga Park man who worked with a tax preparer in a large stolen-identity and tax-refund fraud scheme was sentenced today to 52 months in federal prison.
Arthur Bakunts, 40, was sentenced by United States District Judge Dale S. Fischer, who also ordered Bakunts to pay a total of $741,259 in restitution and to serve three years on supervised release after he is released from prison.
Bakunts pleaded guilty in November to one count of wire fraud and one count of illegally possessing the means of identification of another person.
The case against Bakunts stemmed, in part, from documents – including identity profiles, tax refund checks and other trappings of identity theft – found in his car when he was stopped at a sobriety checkpoint in Glendale in 2014.
Subsequent investigation revealed that Bakunts was working with Ashrf Mohammed Aly, the former owner of Speedy Tax Service in West Covina, who used the stolen identity information to prepare fraudulent federal and state income tax returns in the names of the identity theft victims, which Bakunts then filed.
The fraudulent tax returns led to tax authorities issuing refund checks – $612,259 from the U.S. Treasury and $129,000 from the state of California.
In addition to these substantial losses, prosecutors noted that Bakunts’ crimes caused other significant harms, “including compromised financial accounts and liabilities incurred in the identity theft victims’ names, victims’ loss of the time needed to address these financial problems and restore credit, and the anxiety and sense of violation that identity theft causes.”
Bakunts admitted in his plea agreement that approximately 341 fraudulent tax returns had been filed as part of the criminal scheme. Judge Dale S. Fischer pointed to the scope of the scheme when imposing the sentence against Bakunts today.
During the period of supervised release, Bakunts will be required to do 20 hours of community service each week unless he is otherwise gainfully employed.
Aly pleaded guilty in December to one count of wire fraud and is scheduled to be sentenced by Judge Fischer on April 9.
This case was investigated by IRS Criminal Investigation. The prosecution is being handled by Assistant United States Attorney Ranee A. Katzenstein, Chief of the Major Frauds Section.
Salt Lake City Man Charged with Distribution of Spice, Possession of a Firearm During Drug Trafficking Crimes During Operation Rio Grande Spice Crack Down EffortRead the Press Release
SALT LAKE CITY – A four-count indictment returned by a federal grand jury in Salt Lake City charges James Musa Gama, age 39, of Salt Lake City, with two counts of possession of the synthetic cannabinoid commonly known as “spice” and two counts of possession of a firearm in furtherance of a drug trafficking crime.
U.S. Attorney for Utah John W. Huber and Utah Department of Public Safety Commissioner Keith Squires announced the indictment Monday.
Gama was arrested on as federal complaint filed Mar. 5, 2018. U.S. Magistrate Judge Brooke C. Wells ordered him to remain in custody after finding he constitutes a risk of danger to the community during an initial appearance Wednesday. He is scheduled for an arraignment on the indictment Wednesday at 10:15 a.m.
According to the complaint, Gama came to the attention of agents working with the Operation Rio Grande Drug Task Force during enforcement efforts in the Pioneer Park area in December 2017 and January 2018. The task force was targeting the suspected distribution of the synthetic cannabinoid commonly known as “spice.”
While an agent was working in an undercover capacity in Pioneer Park on Dec. 12, 2017, an unidentified man approached an agent asking what he was looking for. The agent said he was looking for spice. The unidentified man led the agent to Gama, who sold him one jar of spice for $40. Other agents arrested Gama. During a search incident to arrest, agents found five additional jars of spice in Gama’s possession, along with the $40 the agent had given him. The Utah Bureau of Forensic Services later identified the substance in the jars as FUM-AMB, a Schedule 1 synthetic cannabinoid. Agents also found a loaded handgun, previously reported as stolen, in Gama’s waistband.
According to the complaint, Gama told agents he had been selling three or four jars of spice per day. He said he carried the handgun, which he bought for $300, for protection after being robbed and shot a year earlier.
Agents had a second encounter with Gama and two other individuals in Pioneer Park on Jan. 31, 2018, where they bought four jars containing suspected spice. Gama and the two others, identified as R.S. and M.G. in the complaint, were arrested. During a search incident to arrest, agents found another handgun in GAMA’s waistband. Again, the Utah Bureau of Forensic Services identified the substance in the jars as a Schedule 1 synthetic cannabinoid. According to the complaint, Gama told agents he purchased the handgun for protection about a week earlier. Gama also said he had purchased the four jars of spice earlier in the day to sell at Pioneer Park.
The two spice counts in the indictment each carry potential 20-year sentences. The first firearm count carries a minimum mandatory sentence of five years. The second count has a potential 25-year minimum mandatory sentence. Sentences for the firearms counts would run consecutive to any sentence imposed for the spice counts.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Agents with Utah Department of Public Safety are investigating the case. Prosecutors in the Utah U.S. Attorney’s Office are prosecuting the case.
Examples of other federal Operation Rio Grande cases:
US v Jose Rodriguez, aka King Kong: A grand jury returned a six-count indictment in December charging Jose Rodriguez, aka King Kong, age 35, of Salt Lake City, with drug and firearms violations. The two incidents that make up the indictment come from investigations done by Salt Lake City police officers working as a part of Operation Rio Grande. Rodriguez is charged with distribution of heroin, distribution of cocaine base, carrying a firearm in relation to a drug trafficking crime and felon in possession of a firearm for the first incident in late September. He also faces distribution of heroin and felon in possession of a firearm in connection with an October incident. Rodriguez, age 35, a Mexican national living in Salt Lake City, faces up to 20 years in federal prison for each of the drug distribution counts and up to 10 years for each of the felon in possession counts. Carrying a firearm during and in relation to a drug trafficking crime has a mandatory five-year sentence, which would run consecutive to any other sentence imposed. Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court. A five-day jury trial has been set for March 27, 2018, before U.S. District Judge Robert J. Shelby. Rodriguez, who has entered not guilty pleas to the charges, will remain in custody pending the resolution of this case. U.S. Magistrate Judge Paul M. Warner found him to be a danger to the community and a risk of non-appearance at a detention hearing. Salt Lake City police officers are investigating the case.
US v Chris William Espinoza: A trial is scheduled for May 14, 2018, in a case charging Chris William Espinoza, age 50, of Ogden, with possession of heroin with intent to distribute, possession of methamphetamine with intent to distribute, possession of a firearm by a restricted person (felon), and possession of firearms in furtherance of a drug trafficking crime. Agents with the Utah State Bureau of Investigation executed a court-authorized state search warrant at a residence in Ogden in September 2017. Agents found heroin and methamphetamine, along with other drugs and drug trafficking paraphernalia. They also found two semi-automatic handguns. Espinoza is in custody pending resolution of the case. He has entered pleas of not guilty to the charges. The two drug counts each carry potential sentences of 40 years in prison with mandatory-minimum sentences of five years. The potential maximum sentence for possessing a firearm following a felony conviction is 10 years. Possession of a firearm in furtherance of a drug trafficking offense carries a five-year sentence, imposed consecutive to any other sentence. Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court. Agents of the State Bureau of Investigation are continuing their investigation of the case.
US v Tohi Ryan Ngata, aka Leaaetohi Ryan Ngata, aka Toni Ngata-Latu: Tohi Ryan Ngata, age 33, of Salt Lake City, was charged in a sealed indictment returned by a federal grand jury Feb. 7, 2018. The three-count indictment, unsealed Feb. 23, 2018, charges Ngata with possession of a firearm by a restricted person (felon), possession of heroin with intent to distribute, and carrying a firearm in furtherance of a drug trafficking crime. Ngata, who has entered pleas of not guilty to all counts, is in custody pending resolution of the case. Utah State Bureau of Investigation agents encountered Ngata on Jan. 18, 2018. They tried to stop Ngata, but he fled on a bike. Salt Lake City police officers, assisting the agents, were able to detain him. Agents found a gun in his waistband. They also found drugs, drug paraphernalia and cash. The potential maximum penalties for the counts in the indictment include 10 years for the firearms count and 20 years for the drug charge. There is a potential fine of $1 million. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Romanian National Sentenced for ATM Skimming and Money LaunderingRead the Press Release
BOSTON – A Romanian national was sentenced today, and another pleaded guilty, in federal court in Boston in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New York and South Carolina.
Ion Trifu, 25, was sentenced by U.S. District Court Judge William G. Young to one year and one day in prison and one year of supervised release. In December 2017, Trifu pleaded guilty to conspiracy to use counterfeit access devices and money laundering conspiracy. Nicusor Bonculescu, 24, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, conspiracy to use counterfeit access devices, and aggravated identity theft. Judge Young scheduled sentencing for June 7, 2018.
In May 2017, Trifu and Bonculescu were indicted in connection with the ATM skimming scheme along with 12 others. Bonculescu is the eighth defendant to plead guilty.
The defendants, except for Trifu, were members of the Hornea Crew, led by Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – a scheme in which the defendants obtained debit card numbers and PINs from unsuspecting bank customers, created counterfeit cards, and made unauthorized withdrawals from the victims’ bank accounts.
Over a period of 18 months, the Crew installed skimming devices and made unauthorized withdrawals in seven states, including Massachusetts. In particular, members of the Crew installed skimming devices in the following locations: Amherst, Bellingham, Billerica, Braintree, Chicopee, Quincy, Southwick, Waltham, Weymouth, and Whately, Mass.; Enfield, Conn.; Columbia, Greenville, Greenwood, Mauldin, and Saluda, S.C.; Savannah, Ga.; and Yadkinville, N.C. The Crew made unauthorized withdrawals at ATMs in approximately 29 Massachusetts towns; seven Connecticut towns; six New York towns; Salem, N.H.; and Sumter, S.C.
Members of the Hornea Crew and Trifu transferred money throughout the United States and to Romania and the People’s Republic of China. Some of those transfers were for the purchase of skimming devices and related components from abroad.
The charge of conspiracy to conduct enterprise affairs through a pattern of racketeering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and fine of $250,000. The charge of conspiracy to use counterfeit access devices provides for a sentence of no greater than five years in prison, three years of supervised release, and fine of $250,000. The charge of aggravated identity theft provides for a mandatory consecutive term of two years in prison. The defendants will face deportation proceedings upon completion of their sentences. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations (IRS-CI) in Boston; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; U.S. Customs and Border Protection; the Amherst, Billerica, Braintree, Boston, Quincy, Southwick, Waltham, Whately, and Westwood Police Departments; Connecticut State Police; Greenwich Police Department; the New York City Police Department; Houston Police Department; South Carolina Law Enforcement Division; Richland County (South Carolina) Sheriff’s Department; Florence and Saluda (South Carolina) Police Departments; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Richmond Lawyer Sentenced for Fraud, Tax ViolationsRead the Press Release
RICHMOND, Va. – A former Richmond lawyer was sentenced today to one year in prison for bankruptcy fraud and failing to collect and turn over employment taxes.
According to court documents, Nnika White, 42, maintained a bankruptcy law practice in Richmond and owned a law firm, White & Associates, PLLC. In 2014, one of White’s bankruptcy clients inherited approximately $50,000 and turned over the checks to White. However, instead of disclosing the inheritance to the client’s bankruptcy trustee, White concealed the inheritance by depositing it into a firm account. After discussing the matter with the client, White then paid herself over $31,000 out of that account for legal fees. In later bankruptcy filings on behalf of the client, White never disclosed that she purported to be a creditor of the client’s, nor the fact of the inheritance, much less that she had been paid legal fees out of it. In part as a result of this conduct, White was disbarred.
As the owner of her law firm, White was responsible for collecting and paying over payroll taxes to the IRS. From approximately late 2011 through late 2015, White issued Forms W-2 to her employees that indicated she had withheld monies from employees’ salaries as income tax and social security contributions. However, White never paid the money to the government, instead keeping it for herself. Taking into account the employer matching portion (which White also did not pay), the total amount White failed to pay to the government exceeded $68,000.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney David V. Harbach, II, prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-159.
Previously Convicted Former State Representative Pleads Guilty to Obstruction of JusticeRead the Press Release
BOSTON – A former Dartmouth Selectman pleaded guilty today in federal court in Boston in connection with concealing approximately $2.5 million in cash from the U.S. District Court following his sentencing proceedings in 2015.
John George Jr., 71, pleaded guilty to one count of obstruction of justice before U.S. District Court Senior Judge Douglas P. Woodlock, who scheduled sentencing for June 12, 2018. George was indicted in April 2017.
In July 2015, George was sentenced to 70 months in prison and ordered to pay restitution in the amount of $688,772 and forfeiture of $1.38 million for embezzling hundreds of thousands of dollars from the Southeastern Regional Transit Authority (SRTA). George was required to disclose his financial status to the Court, and reported that he only possessed approximately $28,000 in cash. However, in December 2015 and January 2016, federal law enforcement recovered more than $2.5 million in cash, as well as Rolex watches and jewelry that George had concealed in safe deposit boxes in New Bedford and Fairhaven.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Todd A. Damiani, Special Agent in Charge of the Department of Transportation, Office of the Inspector General, Office of Investigations; Joel P. Garland, Special Agent in Charge of Internal Revenue Service’s Criminal Investigation in Boston; and U.S. Marshal John Gibbons for the District of Massachusetts made the announcement today. Assistant U.S. Attorneys Dustin Chao and Ryan M. DiSantis of Lelling’s Public Corruption Unit are prosecuting the case.
Portland Man Sentenced for Pointing Laser at News HelicopterRead the Press Release
PORTLAND, Ore. – Fernando Garces, 25, of Portland, was sentenced today in federal court to two years of probation for aiming a laser pointer at a news helicopter.
According to court documents, on the evening of November 9, 2016, Garces was driving on the Burnside Bridge in Portland during a protest. The bridge was full of pedestrians and cars were moving slowly as a result. A KGW news helicopter was flying over the bridge to report on the protest. A KGW photographer was in the back of the helicopter operating a camera.
While the pilot was hovering over the bridge, Garces pointed a high-powered laser beam directly at the helicopter. The intense blue laser light illuminated the helicopter cockpit. The light temporarily blinded both the pilot and the photographer. The pilot made several attempts to maneuver the helicopter to a position where it would not be hit by the laser. The laser illumination lasted approximately one minute before the pilot was able to regain enough vision to safely fly the helicopter, read controls in the cockpit and take evasive action.
This case was investigated by the FBI and prosecuted by Hannah Horsley, Assistant U.S. Attorney for the District of Oregon.
Pocatello Man Sentenced to 15 years in Federal Prison for Sexual Exploitation of a MinorRead the Press Release
POCATELLO – Alfredo J. Padilla, 59, of Pocatello, Idaho, was sentenced today in United States District Court to 180 months in federal prison, followed by a life term of supervised release, for sexual exploitation of a minor, U.S. Attorney Bart M. Davis announced. U.S. District Judge David C. Nye also ordered Padilla to pay $5,100 in special assessments and forfeit the devices used in the commission of the charged offense. Although Judge Nye ordered Padilla to pay the victim restitution, the amount of restitution is to be determined at a later hearing. Padilla pleaded guilty to the crime on October 30, 2017.
According to the plea agreement, Padilla coerced a 12-year old girl to take pictures of her exposed breasts, then forced her to pose for pictures of her exposed vagina. A forensic search of Padilla’s phone revealed 43 images relevant to the case, and images of Padilla were interspersed with images of the young girl. When interviewed by police, Padilla admitted to taking the pictures. In court, Padilla admitted to taking pornographic photographs of the child and to using, persuading, or coercing the child to take part in sexually explicit conduct for the purposes of producing the photographs. Padilla’s criminal conduct was discovered when his victim disclosed abuse to her counselor.
The case was investigated by the Pocatello Police Department and U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI).
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.”
Pharmacist and Pharmacy Employee Sentenced for Involvement in over $30 Million Health Care FraudRead the Press Release
A pharmacist and his employee were sentenced on Friday for their involvement in a $30 million health care fraud scheme against Tricare, the health care program for military service members, veterans and their families. This case was largest health care fraud case involving the Tricare program to go to trial.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, John F. Khin, Special Agent in Charge, U.S. Department of Defense Criminal Investigative Service (DCIS), Southeast Field Office, Christopher Cave, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), Southern Area Field Office, Michael C. Curran, Special Agent in Charge, U.S. Army Criminal Investigation Command, Southeast Fraud Field Office, Peter H. Kuehl, Acting Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigation (FDA-OCI), Miami Field Office, and Scott Rezendes, Special Agent in Charge, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.
On March 9, 2018, Serge Francois, 52, of Southwest Ranches, Florida was sentenced to 204 months in prison to be followed by three years supervised release by U.S. District Judge Darren P. Gayles. Francois was ordered to pay $31,259,252 in restitution. Patrick Tonge, 42, of Southwest Ranches was sentenced to 188 months in prison, to be followed by three years of supervised release. Tonge was also ordered to pay $31,259,252 in restitution.
On September 5, 2017, after a one-month trial, a federal jury found Francois guilty of conspiracy to commit health care fraud in violation of Title 18, United States Code , Section, 1349 twelve counts of health care fraud in violation of Title 18, United States Code, Section 1347, conspiracy to pay kickbacks in connection with a federal health care program in violation of Title 18, United States Code, Section 371, five counts of paying kickbacks, in violation of Title 42, United States Code, Section 1320, and twelve counts of money laundering, in violation of Title 18, United States Code, Section 1957. In addition, Francois was found guilty of eight counts of introducing misbranded drugs into interstate commerce in violation of Title 21, United Sates Code, Section 331, four counts of making false statements related to health care matters, in violation of Title 18, United States Code, Section 1035 and one count of making a false statement on a DEA form, in violation of Title 21, United States Code, Section 843. The jury found Patrick Tonge guilty of the same conspiracy charges, eleven counts of health care fraud, three counts of paying kickbacks, and two counts of money laundering. The scheme caused over $31 million in loss to the federal Tricare program and the Federal Employee Health Benefit Program (“FEHBP”), with over $30 million in loss to Tricare alone. The trial was a culmination of a three-year investigation that resulted in 18 convictions.
According to evidence presented at trial, Francois, a pharmacist, owned and operated Atlantic Pharmacy and Compounding, located in Pompano Beach, Florida. From there, Francois and his assistant at the pharmacy, Tonge, entered into a vast conspiracy with so-called marketers who paid physicians to write prescriptions for expensive topical medications that cost up to $17,000 a bottle. As the pharmacist-in-charge, Francois was responsible for the compounded medications, which were made in house by the pharmacy.
Francois, Tonge and their co-conspirators agreed to automatically refill the prescriptions, sending numerous refills to patients who did not request them and not charging a co-pay. Francois and Tonge would also pay the marketers from the profits received for each prescription and the marketers, in turn, would pay the physicians. Evidence further showed that some physicians never saw the purported patients. Rather, they used the patient’s identification to write the prescriptions.
The trial evidence revealed that Francois and Tonge specifically targeted the Tricare program. Throughout the conspiracy, Atlantic Pharmacy submitted thousands of claims which led Tricare and FEHBP to make payment to Atlantic Pharmacy and Compounding in the approximate amount of $31,259,252. Further evidence presented at trial showed that Francois used the fraud proceeds to buy a $3.6 million mansion once owned by Dwayne “the Rock” Johnson, as well as a Ferrari, two Rolls Royce Motor vehicles, and over $1 million in other luxury automobiles.
“The fraud committed in this case was particularly egregious, as it targeted the health care program for the men and women in uniform who protect this country,” stated United States Attorney Benjamin G. Greenberg. “The jury’s verdict exemplifies this Office’s tireless commitment to prosecuting healthcare providers and individuals who commit fraud against the Tricare program and any federal health care program.”
“This sentencing should serve as a stern warning to corrupt health care providers who defraud Federal health care programs. These defendants engaged in a vast and egregious fraud scheme that specifically targeted the vulnerabilities of the DoD’s TRICARE program, charging outrageous amounts for phony and unneeded prescription medications,” said Defense Criminal Investigative Service (DCIS) Special Agent in Charge John F. Khin, Southeast Field Office. “While depriving American military members of legitimate health care and medications, these defendants splurged on a luxurious fantasy lifestyle for themselves supported by the millions of dollars they bilked from TRICARE. Through our aggressive investigative efforts in coordination with our partner agencies, DCIS stopped this shameful abuse of one of DoD’s most critical programs.”
“The USPS-OIG, along with our law enforcement partners has worked diligently to ensure the protection of federal benefit programs from healthcare providers seeking to receive unmerited money from fraudulent claims,” said Special Agent in Charge Christopher Cave, of the U.S. Postal Service Office of the Inspector General Southern Area Field Office. “The sentence imposed today clearly demonstrates these crimes will not be tolerated and serves as a great deterrent to other healthcare providers engaging in these illegal schemes. Our federal government is vigilant against these crimes will be investigated and punished accordingly.”
“Today’s sentencing is the direct result of the steadfast dedication of our agents and our partners in federal law enforcement,” said Special Agent in Charge Michael C. Curran, of the U.S. Army Criminal Investigation Command’s Southeastern Fraud Field Office. “This was a wide-ranging investigation that spanned multiple states, and led to the convictions of 18 individuals including doctors, podiatrists, a physician's assistant, and patient recruiters. We will continue to vigorously pursue those who abuse the Tricare program and violate the trust placed in them by the U.S. government.”
“Prescription drugs should only be dispensed pursuant to valid prescriptions in order to protect patient safety,” said Justin D. Green, Special Agent in Charge, FDA-OCI’s Miami Field Office. “We remain committed to bringing to justice those who place their personal gain over the health of American consumers.”
Scott Rezendes, Special Agent in Charge, United States Office of Personnel Management, Office of Inspector General (OPM-OIG). “Today’s sentencing sends a message to professionals in the health care industry that the Federal Government will not tolerate fraud and other unethical behavior. The OPM-OIG, along with our law enforcement partners, is committed to protecting the integrity of the Federal Employees Health Benefits Program and ensuring that its funds are used to promote the wellbeing of Federal employees, retirees, and their families.”
Mr. Greenberg commended the investigative efforts DCIS, USPS-OIG, U.S. Army Criminal Investigation Command, OPM-OIG and FDA. This case was prosecuted by AUSA’s Daniel Bernstein, Evelyn Sheehan, Adrienne Rosen and former AUSA Franklin Monsour.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pensacola Tax Preparer Charged with Preparing False Tax ReturnsRead the Press Release
PENSACOLA, FLORIDA – Benell English, 57, of Pensacola, was arraigned on Friday in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging him with eighteen counts of preparing false tax returns. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that English, a tax return preparer at Select Tax Service in Pensacola, prepared and filed false tax returns with the Internal Revenue Service for various individuals between 2013 and 2017. The indictment alleges that English falsely represented the taxpayers’ Schedule A itemized deductions, Schedule C business losses or profits, or household employee income.
The maximum penalty for each count of preparing false tax returns is three years in prison. The trial is scheduled for April 19, 2018, at the United States Courthouse in Pensacola.
This case resulted from an investigation by the Internal Revenue Service—Criminal Investigation and the Social Security Administration-Office of Inspector General. Assistant United States Attorney Alicia H. Forbes is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Passaic County Man Charged with Trying to Bring Loaded Gun on Plane at Newark Liberty International AirportRead the Press Release
NEWARK, N.J. – A Totowa, New Jersey, man will appear in federal court today to face weapons charges after allegedly trying to get a firearm through security at Newark Liberty International Airport, U.S. Attorney Craig Carpenito announced.
Laron L. James, a/k/a “Juelz Santana,” 36, is charged by complaint with one count of possession of a firearm by a convicted felon and one count of carrying a weapon on an aircraft. He surrendered to law enforcement early this morning and will appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint:
On March 9, 2018, James submitted a carry-on bag for inspection at Newark Liberty International Airport. While he waited for his bag to be screened, James allegedly requested that the bag be examined quickly because he was going to miss his flight to San Francisco.
During the X-Ray screening of James’s luggage, a Transportation Security Administration (TSA) agent identified a suspected firearm and contacted the Port Authority Police. Upon seeing that his bag had attracted additional attention, James left the security checkpoint area without his belongings, including his driver’s license and boarding pass, and departed the airport in a taxi.
Further investigation of James’s bag revealed that it contained a Derringer .38 caliber handgun, which was loaded with two rounds. James was prohibited from possessing a firearm due to a 2013 conviction for manufacturing and distributing a controlled dangerous substance.
Both charges in the complaint carry a maximum potential penalty of 10 years in prison.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and officers of the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Pasco Drug Dealer Sentenced to 27 Years in Federal PrisonRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Jose Martin Aguilar, age 37, of Pasco, Washington, was sentenced after having pleaded guilty on September 25, 2017, to Conspiracy to Distribute Methamphetamine. Chief United States District Court Judge Thomas O. Rice sentenced Aguilar to a twenty-seven-year term of imprisonment, to be followed by a five-year term of court supervision after he is released from Federal prison.
According to information disclosed during court proceedings, the United States Drug Enforcement Administration identified Aguilar as a critical member of a transnational criminal organization that distributed methamphetamine in the Eastern District of Washington. Aguilar’s role in the organization was to ensure the monthly delivery of approximately 60 to 70 pounds of methamphetamine from Mexico into the Tri-Cities area and Spokane, Washington.
Joseph H. Harrington said, “I commend the law enforcement officers who worked on this case. Their seamless partnership resulted in the successful outcome in this matter. The United States Attorney’s Office for the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for offenders who distribute drugs in this District.
This case was investigated by the United States Drug Enforcement Administration and the Spokane County Sheriff’s Office. This case was prosecuted by Caitlin Baunsgard, Assistant United States Attorney for the Eastern District of Washington.
Monongalia County woman sentenced for her role in an oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ariel Blosser, of Morgantown, West Virginia, was sentenced today to 24 months incarceration for distributing oxycodone, United States Attorney Bill Powell announced.
Blosser, age 28, pled guilty to “Distribution of Oxycodone” in November 2017. Blosser admitted to selling oxycodone in February 2016 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded in part 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.
Senior U.S. District Judge Irene M. Keeley presided.
Middlesex County Man Admits Conspiracy to Distribute Two Kilograms of Heroin in New JerseyRead the Press Release
NEWARK, N.J. – A Parlin, New Jersey, man who delivered two kilograms of heroin to another individual in Harrison, New Jersey, today pleaded guilty in Newark federal court, U.S. Attorney Craig Carpenito announced.
Pedro Rodriguez, 44, pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with conspiracy to possess with intent to distribute over a kilogram of heroin.
According to the documents filed in this case and statements made in court:
On Oct 19, 2017, law enforcement officers observed Pedro Rodriguez outside of a restaurant in Newark, where he met with another individual and retrieved a bag that was suspected of containing narcotics. Afterwards, Pedro Rodriguez drove to Harrison, met with Rafaelito Rodriguez, 43, of East Stroudsburg, Pennsylvania, and provided him a bag containing approximately two kilograms of heroin. Rafaelito Rodriguez was arrested in Harrison shortly afterwards. Pedro Rodriguez was later arrested at his home in Parlin.
The drug conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing is scheduled for July 19, 2018. Rafaelito Rodriguez pleaded guilty on March 6, 2018 and awaits sentencing.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.
U.S. Attorney Carpenito credited the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson, with the investigation.
Defense counsel: Pedro Rodriguez is represented by Michael Pedicini Esq.
Mexican National Sentenced to Prison for Conspiring to Sell Fraudulent Identification DocumentsRead the Press Release
FRESNO, Calif. —Maria Victoria Perez-Vasquez, 32, a citizen of Mexico residing in Fresno, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 15 months in prison for conspiracy to transfer, possess, and sell false identification documents, U.S. Attorney McGregor W. Scott announced.
According to court documents, between June 2015 and June 2016, Perez-Vasquez conspired with others to sell fraudulent identification documents, including social security cards and alien registration receipt cards, to customers who placed orders and paid as much as $150 for a set of the fraudulent documents.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Motor Vehicles, Investigations Division. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
On June 16, 2016, Perez-Vasquez and five co-defendants, all citizens of Mexico, were arrested for the scheme. Four of the other co-defendants pleaded guilty and have been sentenced. Charges are pending against the remaining co-defendant, Fidel Vasquez-Velazquez, who is a fugitive following his failure to appear in court for a bond forfeiture hearing on August 22, 2016. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican National Sentenced for Marijuana Cultivation in Giant Sequoia National MonumentRead the Press Release
FRESNO, Calif. — Rosario Beltran-Leal, aka Jose Luis Aguilar, aka Dagoberto Suarez (Beltran), 44, of Sinaloa, Mexico, was sentenced today to four years and nine months in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in the Giant Sequoia National Monument in Tulare County in the Sequoia National Forest, U.S. Attorney McGregor W. Scott announced.
According to court documents, on April 28, 2018, Beltran was found bringing over 31,000 marijuana seeds to a cultivation site in a remote area closed to the public in the Giant Sequoia National Monument. He was also in possession of a large quantity of food and cultivation supplies, including 100 hose connectors. In pleading guilty, Beltran acknowledged that he had delivered food supplies to marijuana growers in the same area in 2016. The irrigation system from the previous year was intact. Native vegetation and trees had also been trimmed to make room for the marijuana plants and water had been diverted from a tributary of Mill Creek.
This case was the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Fish and Wildlife, and Tulare County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Mexican National Pleads Guilty to Growing Marijuana in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Raul Cardenas-Solis (Cardenas), 31, a citizen of Michoacán, Mexico, pleaded guilty today to conspiring to cultivate marijuana on public land, U.S. Attorney McGregor W. Scott announced.
According to court documents, Cardenas was found checking irrigation lines at a marijuana cultivation site in the North Meadow Creek area in Tulare County in the Sequoia National Forest. Law enforcement officers found 10,488 marijuana plants at the site where Cardenas resided. The cultivation operation caused extensive damage to the land and natural resources as a result of deforestation, pesticide and fertilizer use, the diversion of natural water sources, and trash disposal. Cardenas has agreed to pay $11,195 in restitution to the U.S. Forest Service to clean up the area damaged by the cultivation operation.
This case is the product of an investigation by the U.S. Forest Service with assistance from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Cardenas is scheduled to be sentenced by Judge Dale A. Drozd on June 4, 2018. Cardenas faces a minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Mexican Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Cruz Juvenal Vasquez-Rojo, age 40, and a citizen of Mexico, was sentenced today to time served (50 days in jail), for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Vasquez-Rojo admitted that he was removed from the United States to Mexico on October 29, 2010 and again on April 7, 2011. On January 22, 2018, he was encountered and arrested by an ICE Officer in Schenectady, New York.
Following his sentencing, Vasquez-Rojo was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Metro-East Contractor Pleads Guilty to Home Remodeling Fraud Scheme and Failure to File Tax ReturnsRead the Press Release
Andrew Kirchhoefer, 42, of Belleville, Illinois, doing business as Liberty International Operations Group, Inc. and Gateway Constructions Solutions, Inc., pled guilty to a charge of wire fraud in a scheme to defraud homeowners through contracts to do remodeling construction jobs in Missouri and Illinois, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Kirchhoefer also pled guilty to failure to file a corporate federal income tax return. He faces a statutory maximum prison sentence of up to 21 years, a fine of up to $350,000, and up to three years of supervised release. Sentencing is scheduled for June 15, 2018.
As part of the plea, Kirchhoefer admitted that from October 2014 through February 2016 he entered into home remodeling contracts with home owners and requested large up front down payments where he subsequently had little or no work done on the projects.
The prosecution is the result of an investigation by IRS Criminal Investigations and the Missouri Attorney General’s Office. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Mass. School Employee Admits to Traveling to RI to Engage in Sex with 15-year-oldRead the Press Release
PROVIDENCE – An instructional technology support specialist employed at a Shrewsbury, MA, middle school today admitted in federal court in Providence to travelling to Rhode Island in July 2016 with the intent to engage in illicit sexual activity with a 15-year-old girl.
Alexander Viola, 29, of Shrewsbury, was arrested on July 12, 2016, after he traveled to Cranston, RI, expecting to meet with and engage in illicit sexual conduct with the 15-year-old, with whom he had been communicating on the Internet and via text messages. The person he solicited was actually a Rhode Island State Police trooper assigned to the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force.
Viola’s guilty plea to travel with intent to engage in illicit sexual conduct is announced by United States Attorney Stephen G. Dambruch, Superintendent of the Rhode Island State Police Colonel Ann C. Assumpico, and Acting Special Agent in Charge of Homeland Security Investigations for New England Michael S. Shea.
Appearing today before U.S. District Court Chief Judge William E. Smith, Viola admitted that for about 10 days, beginning in early July 2016, he communicated online and via text messages with a person he believed to be a 15-year-old girl. Viola turned the conversations to a sexual nature. On July 12, 2016, after leaving his place of employment and after making a brief stop at his residence, he traveled to Cranston, RI, to a previously agreed upon meeting place, with intent to meet with the 15-year-old girl and to engage in sexual activity. Upon his arrival, Viola was arrested by members of the ICAC Task Force. He was released following an appearance in Rhode Island state court.
Viola pleaded guilty as charged in a federal indictment returned on November 17, 2016. No plea agreement has been filed in this matter. He is scheduled to be sentenced on June 8, 2018. Travel with intent to engage in illicit sexual conduct is punishable by statutory penalties of up to 30 years in federal prison and up to lifetime supervised release.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Marlborough Business Owner and Chief Financial Officer Plead Guilty to Bank Fraud ConspiracyRead the Press Release
BOSTON – A Marlborough business owner and chief financial officer pleaded guilty today in federal court in Worcester in connection with a scheme to commit bank fraud.
James R. Faro, 61, of Dover, and John J. Crowley, 62, of Boca Raton, Fla., each pleaded guilty to conspiring to commit bank fraud. U.S. District Court Judge Timothy S. Hillman scheduled their sentencings for June 8 and June 13, 2018, respectively. Faro and Crowley were charged by Information in January 2018.
Faro is the former owner and president of Sea Star Seafood Corporation, a company previously headquartered in Marlborough that distributed frozen seafood products. Crowley is the former chief financial officer for Sea Star.
From October 2010 until August 2012, Sea Star maintained an asset-backed loan agreement whereby a bank agreed to loan Sea Star up to $6 million pursuant to a revolving line of credit. Sea Star pledged its assets – most notably its inventory and accounts receivable – as collateral for the loan.
Between November 2010 and August 2012, Faro and Crowley conspired to intentionally overstate the value of Sea Star’s outstanding accounts receivable that it reported to the bank. By doing so, Faro and Crowley fraudulently increased the level of assets against which Sea Star could borrow from the bank. In August 2012, Sea Star informed the bank that it had discovered a “discrepancy” of over $3 million in its reported versus actual assets. Sea Star discontinued its business operations approximately one week later.
The charge of conspiracy to commit bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office is prosecuting the case.
Man Pleads Guilty to $1.3 Million Cigarette Tax FraudRead the Press Release
RICHMOND, Va. – A Glen Allen man pleaded guilty today to engaging in an illegal cigarette tax fraud that caused a loss of over $1.3 million to the Commonwealth of Virginia.
According to court documents, Sunil Thawrani, 49, from January 2015 to March 2017, Thawrani used several credit cards to purchase large quantities of cigarettes from stores such as Costco, Sam’s Club and BJ’s Wholesale Club. During each purchase, Thawrani and co-conspirators completed the Form ST-10, or the Commonwealth of Virginia Sales and Use Tax Certificate of Exemption, stating that the purchased cigarettes were purchased for resale in the regular course of business and that he and his co-conspirators would pay the proper taxing authority all taxes. Thawrani subsequently resold those cigarettes in bulk amounts at his wholesale business, Noor Wholesale of Farmville, Inc., aka Sunny’s Wholesale. Thawrani and co-conspirators sold the majority of the cigarettes purchased at Sunny’s Wholesale in bulk amounts to individuals who then resold the cigarettes outside of the Commonwealth of Virginia as untaxed cigarettes. Thawrani and co-conspirators did not collect or pay the applicable Virginia Retail Sales and Use Tax for the cigarettes sold to out of state individuals, causing an actual loss to the Commonwealth of Virginia in the amount of over $1.3 million.
Thawrani pleaded guilty to conspiracy to commit wire fraud and faces a maximum penalty of five years in prison when sentenced on June 14. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. Assistant U.S. Attorney Gabrielle Michalak is prosecuting the case.
This case was investigated by the Washington/Baltimore HIDTA Northern Virginia Financial Initiative and the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-17.
MS-13 Member Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A member of MS-13’s Enfermos Criminales Salvatrucha (ECS) clique in Chelsea, Mass., was sentenced today in federal court in Boston for racketeering conspiracy.
Domingo Tizol, a/k/a “Chapin,” 23, a Guatemalan national who resided in Chelsea, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 10 years in prison and three years of supervised release. Tizol will be subject to deportation upon completion of his sentence.
On May 26, 2015, Tizol and another MS-13 member Bryan Galicia-Barillas, a/k/a “Chucky,” attacked a suspected gang rival on Bellingham Street in Chelsea. Tizol punched and hit the victim while Barillas stabbed the victim multiple times. The victim survived the attack but suffered life-threatening injuries.
Tizol and Barillas were two of 61 defendants indicted in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. Barillas previously pleaded guilty and is awaiting sentencing.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; and Somerville Police Chief David Fallon made the announcement.
Lee County Couple Pleads Guilty to Firearms ChargesRead the Press Release
Fort Myers, Florida – Herman Fleming (26, Lehigh Acres) and Sondre’jah Wilbon (24, Fort Myers) today pleaded guilty to federal firearms charges arising out of a straw purchasing incident. Both individuals face a maximum penalty of five years in federal prison. Sentencing dates have not yet been set.
According to court documents, Fleming and Wilbon traveled to a gun show at the Lee County Civic Center on April 2, 2017. Fleming, who was then facing state felony charges, was prohibited from receiving a firearm under federal law. An undercover Bureau of Alcohol, Tobacco, Firearms and Explosives agent standing next to the couple at a display booth observed Fleming handling various firearms and heard him tell Wilbon which three guns (an assault-style rifle and two pistols) he wanted to buy. Fleming then provided Wilbon with cash and left the area to avoid raising suspicion.
In the paperwork required to make the purchase, Wilbon lied and claimed she was the intended recipient of the firearms. The two were arrested while leaving the gun show. Law enforcement found the rifle in the trunk of Fleming’s car and the receipts for the guns in his pocket. The two pistols were subject to a three-day waiting period by law and never left the possession of the firearms dealer.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Las Vegas Resident Sentenced in Multimillion Dollar Prize Promotion Scams Targeting Elderly VictimsRead the Press Release
LAS VEGAS, Nev. – An individual who ran multimillion dollar prize promotion scams was sentenced on March 12, 2018, to serve 87 months in prison by a federal judge in Las Vegas, Nevada, the Department of Justice announced.
Glen Burke, 58, of Las Vegas, was sentenced to 87 months in prison, followed by three years of supervised release. U.S. District Judge Jennifer A. Dorsey also ordered Burke to pay $2,785,508.36 in restitution, reflecting the consumer loss from one of Burke’s schemes.
Burke pleaded guilty in December 2017 to criminal contempt of court and conspiracy charges arising from his operation of two predatory schemes that defrauded thousands of victims, many of whom were elderly, out of more than $20 million. Burke conducted those fraudulent campaigns in violation of a 1998 court order obtained by the Federal Trade Commission (FTC) permanently banning him from telemarketing and making misrepresentations to consumers. A co-defendant, Michael Rossi, 52, also of Las Vegas, also pleaded guilty in connection with one of Burke’s schemes. Rossi is scheduled to be sentenced on June 25, 2018.
“This case exemplifies the Department’s commitment to halt schemes that target seniors, which the Attorney General announced in an historic elder fraud sweep a few weeks ago,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “We are sending a clear message: Perpetrators of telemarketing fraud will be prosecuted and law enforcement will not stop until fraudulent mass mailing practices are halted.”
Burke pleaded guilty to criminal contempt of court for violating a court order prohibiting him from making misrepresentations to consumers. The charge stemmed from Burke’s operation of a mass-mailing fraud scheme that misled consumers into believing that they had won large cash prizes, often millions of dollars. Burke specifically mailed consumers solicitations that used fake names and, in many cases, looked like they came from law firms or financial institutions, advising consumers to pay a fee – usually $20 to $30 – to claim their promised winnings. Once consumers paid, however, Burke never sent any consumer a promised prize.
Burke, along with Rossi, also pleaded guilty to conspiracy to commit mail and wire fraud for running a fraudulent telemarketing operation. Telemarketers working for Burke and Rossi falsely told victims that they had won one of five valuable prizes, typically: a Chevy Camaro; a Boston Whaler boat; a diamond-and-sapphire bracelet; $3,000 cash; or a cruise that could be exchanged for $2,300. To claim the prize, consumers were told to pay hundreds, or in some cases thousands, of dollars. Once they paid, victims received a nearly worthless piece of costume jewelry or nothing at all.
In January 2013, the FTC filed a civil contempt case against Burke for violating the 1998 court order. The district court found Burke in civil contempt and ordered him to pay contempt sanctions of over $20 million, reflecting consumer loss from both the telemarketing and mass-mailing schemes.
Acting Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service and thanked the FTC for its valuable assistance. The case was prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Consumer Protection Branch of the Department of Justice’s Civil Division and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
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L.A. Man Sentenced to nearly 4 Years in Federal Prison for Illegally Manufacturing Assault Rifles and Silencers He Intended to SellRead the Press Release
LOS ANGELES – A Los Angeles man who admitted he illegally manufactured and sold firearms – specifically short-barreled AR-15-style assault rifles and silencers – was sentenced this afternoon to 46 months in federal prison.
Axel Fernando Galvez, 37, who resides in Watts, was sentenced today by United States District Judge Christina A. Snyder.
Once he completes the prison term, Galvez will be on supervised release for three years, during which time he will be subject to search at any time by law enforcement authorities. Judge Snyder also ordered Galvez to pay a $12,500 fine.
Galvez pleaded guilty in December to two counts of unlicensed manufacturing and dealing in firearms. When he pleaded guilty, Galvez admitted that he purchased firearm components from different sources to disguise the quantity he was buying. Galvez then finished the parts and assembled the assault rifles at a South Los Angeles machine shop where he worked.
On August 28, 2017, Galvez sold five of these assault rifles, through an intermediary, to an undercover operative with the United States Postal Inspection Service. Galvez believed that the undercover operative was a convicted felon and was going to resell the weapons in Egypt and the Philippines.
In further discussions with the undercover operative, Galvez negotiated the sale of another 100 homemade assault rifles, offering a bulk discount.
Galvez also admitted in court that he manufactured five silencers for firearms.
A second man charged as a result of this investigation – Marcos Ernesto Chavarria, 31, of Inglewood – previously pleaded guilty to conspiring to distribute methamphetamine. Judge Snyder is scheduled to sentence Chavarria also on April 2, at which time he will face a statutory maximum sentence of 20 years in federal prison.
During the investigation into Galvez, the Postal Inspection Service worked jointly with the Los Angeles Police Department Parcel Task Force. The Bureau of Alcohol Tobacco, Firearms and Explosives, as well as the Los Angeles Joint Regional Intelligence Center, provide substantial assistance.
This case is being prosecuted by Assistant United States Attorney Andrew Brown of the Major Frauds Section.
Kingwood Man Gets More Prison TimeRead the Press Release
HOUSTON – A 54-year-old resident of Kingwood has received a second federal sentence for failing to appear in court, announced U.S. Attorney Ryan K. Patrick. Oscar Cantalicio Ortiz pleaded guilty Dec. 4, 2017.
Today, U.S. District Judge Kenneth Hoyt handed Ortiz another 12 months and one day to be served consecutively to the already-imposed 262 months for his conviction of bank fraud.
Ortiz was originally convicted for a mortgage fraud scheme in which he admitted he conspired to commit bank, mail and wire fraud. He was permitted to remain on bond pending his sentencing in that case, but was ordered to wear a GPS monitoring device secured around his leg as a condition of his release.
On April 21, 2017, he cut off the device and left it on the side of the road in southwest Houston. His vehicle was later found abandoned in a parking lot in the same area of town.
On April 24, 2017, Ortiz was set to appear before U.S. District Judge Kenneth M. Hoyt for sentencing in the mortgage fraud scheme. He failed show for that hearing.
He was residing in Mexico and turned himself in to the U.S. Embassy in Mexico City, Mexico on Aug. 23, 2017. Ortiz told the FBI at the Embassy that he was a fugitive from the United States and had decided to flee because he wanted more time to work on a project. He was flown back to Houston the following day.
Upon his arrival, agents noted that Ortiz had changed his appearance by growing facial hair and dying it and his hair red. Ortiz admitted he had purchased a second car to replace the one he abandoned and drove across the border into Mexico where he stayed until his arrest.
While a fugitive, Judge Hoyt imposed the nearly 22-year sentence in absentia which will be served consecutively to the term imposed today.
The FBI conducted the investigation of both cases. Assistant U.S. Attorney Melissa Annis is prosecuting the cases.
Jury Finds Stockbroker Guilty of Insider Trading for Dealing in Stock of Local Biotechnology FirmRead the Press Release
Assistant U. S. Attorneys Aaron P. Arnzen (619) 546-8384 Emily W. Allen (619) 546-9738
NEWS RELEASE SUMMARY – March 12, 2018
SAN DIEGO – A stockbroker was convicted of insider trading by a federal jury Friday, and a codefendant pleaded guilty this morning – the day his trial was set to begin.
The jury found stockbroker Paul Rampoldi guilty of conspiracy to commit insider trading, wire fraud, and money laundering, in connection with an illegal trade based on an insider tip about the merger of San Diego firm Ardea Biosciences, Inc. with multinational pharmaceutical company AstraZeneca.
Separately, William Scott Blythe, Rampoldi’s client who placed the trade and secretly paid Rampoldi his share of the profits in tens of thousands of dollars in cash, appeared in court this morning on the date set for his trial, and pleaded guilty to engaging in the same conspiracy. Blythe admitted in his plea agreement that the inside information came from Ardea’s then-director of Information Technology Michael Fefferman, and proved to be extremely lucrative – as the conspirators profited more than 1,500% from their illegal stock trades.
The evidence presented at trial showed that in April 2012, Ardea insider Fefferman learned that the company was planning to merge with AstraZeneca. He also knew that this secret news would boost Ardea’s stock price by a hefty 50%. Before the merger was announced to the public, Fefferman passed the inside information on to his close friend and brother-in-law Chad Wiegand, a licensed stockbroker at National Planning Corporation (NPC). Wiegand passed the information on to his coworker at NPC, Akis Eracleous, who was also a licensed stockbroker. Eracleous, in turn, passed the tip to defendants Rampoldi and Blythe, and the three agreed (to avoid suspicion and scrutiny) that Blythe would trade on the information in his non-NPC brokerage account, and then they would all share the profits.
On the Friday before the merger was announced publicly, Blythe bought more than $5,400 in risky Ardea stock options. On Monday – the next trading day after the merger announcement was released – Blythe sold the options for nearly $89,000. Blythe distributed approximately $40,000 of the fraudulent proceeds in cash to Rampoldi and Eracleous to hide the paper trail, and paid $2,000 in cash to Wiegand to compensate him for the tip. After Forbes magazine reported on Blythe’s spectacular earnings, the group realized an investigation was brewing, and they got together to work on their cover story to mislead the FBI and financial industry investigators.
Fefferman, Wiegand, and Eracleous were each charged previously, and each has admitted his involvement in the insider trading and agreed to cooperate with the investigation. Rampoldi and Blythe are scheduled to be sentenced on May 25, 2018, at 9:00 am before U.S. District Judge Dana M. Sabraw. The jury hearing Rampoldi’s case was unable to reach a verdict on two other counts facing him, so a status hearing is set for March 23, 2018, at 11:00 am before Judge Sabraw to discuss a possible retrial on those counts.
DEFENDANTS (16CR1842-DMS):
Paul Rampoldi Age: 50 San Diego, CA
Scott Blythe Age: 53 San Diego, CA
Charges of Conviction
Conspiracy, in violation of 18 U.S.C. §371
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
DEFENDANTS PREVIOUSLY CHARGED:
Chad Wiegand, 15CR1462-DMS Age: 43 Lakeside, CA
Akis Eracleous, 15CR1462-DMS Age: 50 San Diego, CA
Michael Fefferman, 15CR1534-DMS Age: 45 Escondido, CA
AGENCIES
Federal Bureau of Investigation
Securities and Exchange Commission
Jury Convicts Meth SmugglerRead the Press Release
BROWNSVILLE, Texas – A federal jury sitting in Brownsville has convicted a 35-year-old man for conspiracy and methamphetamine smuggling, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than three hours following a six-day trial before convicting Jesus Yzaguirre Jr., of Brownsville, on all four counts as charged.
The jury heard that on Feb. 25, 2017, Yzaguirre Jr. drove into the United States through the Gateway Port of Entry in Brownsville. At primary inspection, Yzaguirre said he had gone into Mexico to “borrow the van” he was driving from his uncle. He was referred for secondary inspection, at which time he then said he had gone into Mexico to pick up the van which belonged to him. Agents searched the van and discovered 29.4 kilograms of methamphetamine hidden within the floorboard and frame compartments.
Yzaguirre then gave a statement saying he thought he was bringing the van in for another person to use for alien smuggling. The person, a female friend whom he “bumped into in Matamoros” asked him to pick up the van at a parking lot, according to his statement. She was to pay him $50 for taking it into the U.S. and parking it at a certain location. Yzaguirre said he had previously done the same thing with a different van which he parked somewhere in Brownsville.
Further investigation revealed Yzaguirre had in fact crossed a commercial van on three other occasions, each time going through the Sarita checkpoint. Agents interviewed an acquaintance of Yzaguirre who said Yzaguirre had admitted to knowing there were drugs in the van when he was arrested and that he had been working for “La Guera” who was in charge of the drug loads.
Yzaguirre was convicted of conspiracy to possess with intent to distribute 29.4 kilograms of methamphetamine, possession with intent to distribute the methamphetamine, conspiracy to import methamphetamine and importation of methamphetamine with intent to distribute.
U.S. District Judge Rolando Olvera presided over the trial, and set sentencing for June 20, 2018. At that time, Yzaguirre faces a minimum of 10 years and up to life in prison as well as a $10 million fine. He will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protections. Assistant U.S. Attorneys Oscar Ponce and Angel Castro are prosecuting the case.
Jacksonville Woman Pleads Guilty to Stealing Handguns from Local Gun StoresRead the Press Release
Jacksonville, Florida – Bruquanna Griffin (21, Jacksonville) today pleaded guilty to stealing firearms, and conspiring to steal firearms from federally-licensed firearms dealers. She faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to court documents, throughout the summer of 2017, Griffin and another individual worked together to steal firearms from at least three Jacksonville gun stores. At each location, Griffin’s co-conspirator would distract the sales staff, while Griffin would sneak behind the counter to steal handguns. She stole as many as five guns from a single location. On August 23, 2017, Griffin was arrested after she attempted to leave a gun store with two stolen pistols in her purse. She eventually admitted her involvement in the conspiracy, explaining that after she stole the firearms, her co-conspirator would either keep, sell, or trade the guns for drugs.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jackson Man Sentenced to 100 Months in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – Michael Ervin a/k/a Michael Irving, 37, of Jackson, was sentenced on March 12, 2018, by U.S. District Judge Daniel P. Jordan III, to serve 100 months in federal prison, followed by three years of supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 13, 2017, while attempting to execute an arrest warrant, the Gulf Coast Regional Fugitive Taskforce discovered multiple firearms in the possession of Michael Ervin at a residence in Jackson. Specifically, officers recovered a DPMS Inc. brand, model A15, .223 caliber semi-automatic rifle; an Anderson Manufacturing brand, model AM-15, multiple caliber lower receiver, semi-automatic rifle; a Ruger brand, model LCP, .380 caliber semi-automatic pistol; a Taurus brand, model PT140 Millennium G2, .40 caliber pistol; and one hundred and fifty (150) rounds of ammunition.
Also, at Ervin’s residence, officers recovered 270.38 grams of Marijuana, 15 grams of Cocaine, .54 grams of Methamphetamine, 1.13 grams of Heroin, and 5 grams of Tetrahydrocannabinol (THC Oil)
Ervin was previously convicted in the First Judicial District of Hinds County for possession of cocaine and for possession of ammunition by a convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gulf Coast Regional Fugitive Taskforce. It was prosecuted by Assistant U.S. Attorney Keesha D. Middleton.
Inmate Sentenced to 46 Months in Prison for Assaulting and Resisting a Federal EmployeeRead the Press Release
DENVER - A federal prison inmate already serving multiple federal sentences was sentenced to serve an additional 46 months in prison for assaulting and resisting a federal employee, announced U.S. Attorney Bob Troyer of the United States Attorney’s Office for the District of Colorado.
James Wilson, 36, of Pitt County, North Carolina, was sentenced on March 9, 2018, by U.S. District Court Judge William J. Martínez, who also ordered Wilson to serve three years of supervised release following his prison sentence. Previously, Wilson pleaded guilty on Dec. 7, 2017, to one count of assaulting and resisting a federal employee.
According to court filings, on January 2, 2017, Wilson intentionally and forcibly assaulted, resisted, opposed, or impeded an officer with the Federal Bureau of Prisons at the United States Penitentiary in Florence, Colorado (USP Florence). Before being escorted to a lieutenant’s holding cell, Wilson was ordered to stop and submit to a pat search. Wilson ignored the order and ran. Another correctional officer observed a weapon — a cell-made shank — in Wilson’s hand as he fled. After a struggle, Wilson was placed on the ground, where he continued to actively resist. As Wilson resisted, he punched an officer multiple times in the chest. Following the incident, a review of the officer’s polo shirt showed at least one puncture hole over his left breast. The officer’s protective vest, which had several indentations from the assault, protected the officer from sustaining substantial bodily injury.
The Federal Bureau of Investigation and the Special Investigative Service of the Federal Bureau of Prisons investigated this case. This case was prosecuted by Assistant U.S. Attorney Juan G. Villaseñor, and Special Assistant U.S. Attorney Clay C. Cook, of the District of Colorado.
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Illegal Alien is Sentenced for Further Illegal ReentryRead the Press Release
PITTSBURGH - An illegal alien found in Pittsburgh, Pennsylvania, pleaded guilty and has been sentenced in federal court to 10 months imprisonment on his conviction of illegal re-entry after deportation, United States Attorney Scott C. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Rene Hilerio-Ballina, age 33, of Mexico.
According to the information presented to the court, Hilerio-Ballina, a native and citizen of Mexico, was formally removed from the United States by the United States Immigration and Customs Enforcement on April 23, 2010, June 9, 2010, May 10, 2013, and October 29, 2013. Hilerio-Ballina was found to be illegally present in Pittsburgh, Pennsylvania, on December 19, 2017, when he was arrested by the United States Immigration and Customs Enforcement.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI) for the investigation leading to the successful prosecution of Hilerio-Ballina.
Guatemalan Man Sentenced for Immigration FraudRead the Press Release
ALBANY, NEW YORK – Juan Luis Ortiz Jimenez, age 32, and a citizen of Guatemala, was sentenced today to time served (74 days in jail) for possessing a fraudulent green card.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Ortiz Jimenez admitted that he possessed a counterfeit permanent residency card (“green card”) in Colonie, New York, on December 28, 2017. ICE Officers found Ortiz Jimenez to be in possession of the counterfeit green card when they arrested him on December 28 for being unlawfully present in the United States.
Following his sentencing, Ortiz Jimenez was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Four Members of an Armed Robbery Crew have been Indicted for Committing Robberies throughout Western Tennessee, Resulting in One FatalityRead the Press Release
Memphis, TN – Four individuals have been indicted for conspiracy to commit robberies of drug dealers in the Western District of Tennessee, one of which resulted in a fatality. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today.
On March 7, 2018, a federal grand jury returned the indictment, which remained sealed until the defendants’ arrest. This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
This indictment follows a four-month investigation involving agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) as well as other federal and state agencies. These defendants participated in a conspiracy to rob drug dealers throughout the Western District of Tennessee.
The four defendants listed are currently in custody:
Marcus Danner, 38, Memphis, Tennessee
Quintez Agnew, 33, Memphis, Tennessee
Shuntario Johnson, 37, Memphis, Tennessee
John Lott, 29, Memphis, TennesseeCount 1 charges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott with conspiracy to obstruct, delay and affect commerce by robbery, in that the defendants did
plan on robbing persons engaged in interstate commerce, that is, narcotics trafficking, of drugs and drug proceeds.
Count 2 charges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott with conspiracy to possess with the intent to distribute 5 kilograms or more of a mixture of substance containing a detectable amount of cocaine.
Count 3 charges Shuntario Johnson with carjacking by force, violence and intimidation, with the intent to cause serious bodily injury.
Count 4 charges Shuntario Johnson with carrying and discharging a firearm, during and in relation to a crime of violence, that is, the taking a motor vehicle, that had been transported, shipped and received in interstate commerce by force, violence and intimidation, with the intent to cause serious bodily injury.
Count 5 charges Shuntario Johnson with using and discharging a firearm, during and in relation to a crime of violence, that is, the taking of a motor vehicle, that had been transported, shipped and received in interstate commerce by force, violence and intimidation, with the intent to cause serious bodily injury.
Count 6 charges Shuntario Johnson with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 7 alleges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott being aided and abetted by the other did unlawfully obstruct, delay and affect commerce by robbery in that the defendants did attempt to rob an individual then engaged in interstate commerce, that is, narcotics trafficking, of drugs and drug proceeds.
Count 8 alleges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott, being aided and abetted by the other did knowingly carry and discharge a firearm, during and in relation to a crime of violence, that is, to obstruct, delay and affect commerce by robbery in that the defendants did attempt to rob B.B., an individual then engaged in interstate commerce, that is, narcotics trafficking, of drugs and drug proceeds.
Count 9 alleges Marcus Danner; Quintez Agnew; Shuntario Johnson; and John Lott, being aided and abetted by the other did knowingly use and discharge a firearm, during and in relation to a crime of violence to obstruct, delay and affect commerce by robbery in that the defendants did attempt to rob B.B., an individual then engaged in interstate commerce, that is narcotics trafficking, of drugs and drug proceeds by threats of physical violence.
Count 10 charges Marcus Danner with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 11 charges Quintez Agnew with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 12 charges Shuntario Johnson with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 13 charges John Lott with possessing a firearm after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Count 14 alleges Marcus Danner; Quintez Agnew and Shuntario Johnson being aided and abetted by the other, did knowingly possess a firearm, in furtherance of a drug trafficking crime, that is, conspiracy to possess with intent to distribute five kilograms or more of a mixture or substance containing a detectable amount of cocaine.
Count 15 alleges Marcus Danner; Quintez Agnew and Shuntario Johnson, being aided and abetted by the other, did knowingly carry a firearm, in furtherance of a drug trafficking crime, that is, conspiracy to possess with intent to distribute five kilograms or more of a mixture or substance containing detectable amount of cocaine.
Count 16 alleges Marcus Danner having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affect interstate commerce with a firearm.
Count 17 alleges Quintez Agnew having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting interstate commerce with a firearm.
Count 18 alleges Shuntario Johnson, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting interstate commerce with a firearm.
During this investigation, agents seized multiple firearms; approximately $2,000 in U.S. currency; and approximately 28 grams of crack cocaine.
If convicted, the defendants face mandatory minimum sentences of 10 years imprisonment up to life.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Memphis Police Department, Multi Agency Gang Unit and Shelby County Sheriff’s Office investigated this case.
Assistant U.S. Attorney Jerry Kitchen is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proved guilty.
Former Spring Hill Police Officer Sentenced to Prison for Federal Civil Rights ViolationRead the Press Release
Former Spring Hill Police Officer Christopher Patrick Odom, 27, of Spring Hill, Tennessee, was sentenced on Friday in U.S. District Court to 12 months in prison, followed by one year of supervised release, for deprivation of rights under color of law, announced Don Cochran, U.S. Attorney for the Middle District of Tennessee.
Odom was indicted in July 2017 and pleaded guilty in October 2017 to engaging in unwanted sexual contact with a female motorist while on duty as a police officer.
U.S. District Judge Aleta A. Trauger sentenced Odom to the maximum penalty under the statute and noted that Odom’s behavior was outrageous and that he displayed a pattern of conduct that abused his position as a police officer.
According to court documents, Odom initiated a traffic stop on the female victim during the late evening hours of June 25, 2016. Upon approaching the victim’s car, Odom ordered her to write her name and phone number or date of birth on a piece of paper. Thereafter, Odom ordered the victim out of her car and brought her to the side of his patrol car. He then tried to kiss the victim and attempted put his hands down her pants. He then grabbed the victim’s hand and placed it on his penis. Odom also lied to the victim about his name before finally allowing her to leave the scene.
Odom previously pleaded guilty to state charges of sexual battery and official misconduct regarding the victim in this case and another female motorist in Maury County and served 78 days in jail. He is facing similar state charges in Williamson County.
This case was investigated by the Tennessee Bureau of Investigation in consultation with the Department of Justice Civil Rights Division. Assistant United States Attorneys Henry Leventis and Sara Beth Myers are prosecuting the case.
Former Settlement Agent Gets 12 Years in Prison for Mortgage Fraud and Tax EvasionRead the Press Release
NEWARK, N.J. – A former settlement agent from Wyckoff, New Jersey, was sentenced today to 144 months in prison for defrauding banks out of $1.1 million using phony loan applications for properties in Bergen and Morris Counties, New Jersey, and for failing to pay over $450,000 in personal income taxes, U.S. Attorney Craig Carpenito announced.
Mark Andreotti, 47, was previously convicted on all six counts of an indictment charging him with bank fraud, conspiracy to commit bank fraud, tax evasion, and failure to file tax returns. He was convicted following a two-week trial before U.S. District Judge Susan D. Wigenton, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
In January 2010, Andreotti submitted a loan application to a bank requesting $625,000 to refinance the mortgage on his house in Wyckoff. Andreotti, who owned and operated Metropolitan Title and Abstract (Metropolitan), used Metropolitan as the settlement agent on the transaction. After the bank transferred the $625,000 for the refinance to Metropolitan’s escrow account, Andreotti spent the money on personal expenses instead of paying off the first mortgage on the house.
In April 2011, Andreotti conspired with another individual who worked as a real estate attorney to obtain $480,000 by claiming that the money would be used to refinance the mortgage on the attorney’s house in Montville, New Jersey. After the bank transferred the money for the refinance to Metropolitan’s escrow account, Andreotti kept $110,000 for himself before transferring the remaining funds to the other conspirator.
In 2010, the IRS initiated collection actions against Andreotti for unpaid personal income taxes. Despite numerous liens and levies and having five rental income properties in addition to his primary residence, Andreotti continued to evade his taxes. He also failed to file tax returns for the tax years 2010 and 2011.
In addition to the prison term, Judge Wigenton sentenced Andreotti to five years of supervised release and ordered him to pay restitution of over $2.1 million.
U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark; special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark; and special agents with the U.S. Attorney’s Office, with the investigation.
The government is represented by Assistant U.S. Attorney Shana Chen in of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Charlie Divine of the Federal Housing and Finance Agency – Office of Inspector General.Defense counsel: Marc Neff, Esq., of Marlton
Former Marshall Resident Sentenced for Child PornographyRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that an Arkansas man, formerly of Marshall, Mo., was sentenced in federal court today for possessing child pornography.
Kenneth Larrechea, 48, formerly of Marshall, was sentenced by U.S. District Judge Beth Phillips to 13 years in federal prison without parole. The court also sentenced Larrechea to a 10-year term of supervised release following incarceration.
Larrechea, who pleaded guilty on Nov. 20, 2017, to possessing child pornography, was identified as one of 158 individuals who received child pornography through Kik (an instant messaging and chat application) from a New York man, who pleaded guilty in a separate case in the Northern District of New York. An FBI agent executed a search warrant at Larrechea’s Marshall residence on Dec. 8, 2015, and seized several electronic media devices, including computers, hard drives and cell phones.
Investigators discovered several images on an SD card in Larrechea’s cell phone of a child victim, approximately 10 or 11 years old, getting in and out of a shower. The images were screen shots taken from a video file. Larrechea was acquainted with the child victim and investigators believed he produced the images with a hidden camera. The child victim told investigators she was not aware that she was being video recorded or photographed.
More than 400 videos and more than 70 images of child pornography and erotica were also located on Larrechea’s cell phone and SD card.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI and the Marshall, 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."
Former Felon Charged for Armed Robbery of Cashier Cage at New York-New York Hotel and CasinoRead the Press Release
LAS VEGAS, Nev. – An armed man who robbed a casino floor cashier cage at New York-New York Hotel and Casino in January was charged today in federal court, announced United States Attorney Dayle Elieson of the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division, and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department.
Cameron James Kennedy, 26, of Las Vegas, is charged with one count of interference with commerce by robbery.
According to allegations contained in the criminal complaint, Kennedy was on federal supervision for a bank robbery charge and he was required to wear a GPS monitoring bracelet. On January 10, 2018, about three hours after he cut off his GPS monitoring bracelet, Kennedy demanded money from a casino floor cage cashier at the New York-New York Hotel and Casino. He lifted his hooded jacket and displayed a black semiautomatic handgun in his waistband. He told the cashier: “I want all your hundreds and don’t mess around. I am not kidding, I want all the hundreds.” He stole approximately $23,367 and fled in a taxi cab.
If convicted, the maximum statutory penalty is 20 years in prison and a $250,000 fine.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI’s Violent Crimes Task Force and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Tony Lopez is prosecuting the case.
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Former Fairview Township Police Officer Sentenced to 42 Months’ Imprisonment on Theft ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tyson Baker, age 43, of Etters, Pennsylvania, was sentenced today by United States District Court Judge Sylvia H. Rambo to 42 months’ imprisonment and two years’ supervised release for theft of seized money that was evidence in two separate drug cases.
Judge Rambo also ordered Baker to pay $1,000 restitution to Fairview Township Police Department and $330 restitution to the FBI. Baker is to report to the Bureau of Prisons on April 2, 2018.
According to United States Attorney David J. Freed, Baker, a former 17 year veteran police officer with the Fairview Township Police Department, was convicted on September 14, 2017, after a four-day trial before Judge Rambo. Baker was convicted of two counts of theft of drug money that was subject to seizure and forfeiture, one count of falsifying or altering records to impede, obstruct or influence a federal drug investigation regarding the first incident, one count of theft of federal property, and one count of presenting a false police report to the FBI.
The Federal Bureau of Investigation (FBI) in Harrisburg received information that Baker stole money from drug traffickers who were arrested, the subject of traffic stops, or both. On November 21, 2015, Baker orchestrated the theft of $2,000 in drug proceeds seized by the Fairview Township Police Department during a search of a residence that resulted in the seizure of several pounds of marijuana and approximately $15,000. On December 16, 2015, the FBI arranged for an undercover vehicle operated by an undercover FBI agent to be stopped by Fairview Township. Baker had the vehicle towed from the scene and, without a warrant and in spite of directions from an FBI agent not to search the vehicle, Baker searched the vehicle and stole $3,000 out of $15,000 concealed in a gym bag in the back of the vehicle. The undercover vehicle was equipped with video recording equipment that recorded Baker going through the vehicle without a warrant. On December 18, 2015, Baker was arrested by the FBI and confessed to both incidents.
“Because of his status as a law enforcement officer, Baker’s actions not only violated state and federal laws, but also had a direct negative impact on state and federal cases where he served as an investigator or witness,” said United States Attorney Freed. “The excellent cooperative investigation followed by Judge Rambo’s sentence send a strong message that this type of conduct will be vigorously prosecuted and punished.”
“When an officer shrugs off his sworn oath, breaking the law to pad his paycheck, he betrays the people of his community – and all of us who wear a badge,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Removing rogue officers from the ranks is vital. The FBI will continue to investigate police corruption and bring those responsible to justice. No one is above the law.”
The case was investigated by the Harrisburg Resident Office of the Federal Bureau of Investigation, the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Fairview Township Police Department. Assistant United States Attorneys William A. Behe and Michael Consiglio prosecuted the case.
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Former Anchorage Resident Charged with Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Mitchell Zong, 45, a former Anchorage resident, has been charged in federal court with one count of conspiracy to commit money laundering.
According to the allegations in the Felony Information, between Sept. 8, 2013, and April 4, 2014, Mitchell Zong allegedly conspired with others to commit money laundering violations in excess of $10,000, with the funds being the result of violations of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transaction and Sanctions Regulations (ITSR).
Mitchell Zong’s father, Kenneth Zong, is currently under indictment in the District of Alaska for similar violations of IEEPA, ITSR, and money laundering. Kenneth Zong is currently in custody in the Republic of South Korea for violations of Korean law.
The maximum penalty for conspiracy to commit money laundering is 20 years in prison, and a fine of $250,000. An arraignment date has not yet been set.
The FBI and IRS-Criminal Investigation conducted the investigation leading to the charges in this case. This case is being prosecuted by Deputy Criminal Chief Steven E. Skrocki.
An Information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Essex County, New Jersey, Father and Daughter Charged in Food Stamps SchemeRead the Press Release
NEWARK, N.J. – Two individuals who operate a Newark grocery store were charged today with fraudulently exchanging over $885,000 in Supplemental Nutrition Assistance Program (SNAP) benefits for cash, U.S. Attorney Craig Carpenito announced.
Maria Teresa Venegas, 25, and her father, Manuel Venegas, 53, both of Newark, are charged by complaint with SNAP benefits fraud. Both were arrested this morning and appeared in the afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. They were released on $200,000 unsecured bond.
According to the complaint:
Since November 2011, the defendants managed Jenny’s Deli, a small grocery store in Newark that was authorized to accept SNAP benefits, formerly known as the Food Stamp Program. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits but may not exchange SNAP benefits for cash.
Manuel and Maria Teresa Venegas allegedly exchanged more than $885,000 in SNAP benefits for cash between 2011 and 2018. In addition to the high volume of SNAP redemptions for Jenny’s Deli indicating fraud, law enforcement officers used an undercover agent who engaged in approximately 20 “purchases” at Jenny’s Deli where one or both defendants allegedly exchanged cash for SNAP benefits.
The SNAP benefits fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defense counsel: Maria Teresa Venegas: Linda Foster, Esq., Assistant Federal Public Defender, Newark
Manuel Venegas: Laurie Fierro Esq., Kinnelon, New JerseyEast Bay Resident Sentenced to over Four Years in Prison for Wire Fraud, Bank Fraud, and Related Charges in Embezzlement SchemeRead the Press Release
OAKLAND – Celia Nipper, aka Celia Arrand, was sentenced this afternoon to 51 months in prison for committing wire fraud, bank fraud, and filing false tax returns in connection with a scheme to embezzle funds from a real estate technology company, announced Acting United States Attorney Alex G. Tse; Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett; and Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge, following Nipper’s entry of a plea agreement on September 18, 2017.
According to her plea agreement, Nipper, 62, from Discovery Bay, Calif., admitted that while employed as an office manager, she used her position of financial control at the company to redirect funds intended for her employer to accounts that she controlled. Nipper acknowledged that from 2005 to 2011, while she managed her company’s accounts payable and accounts receivable, invoicing, and bill paying, she opened bank accounts in the name of her employer without disclosing their existence to her employer. She then directed customer payments to those accounts and used that money for her own personal gain. Nipper also admitted as part of the plea agreement that she misappropriated funds from her employer’s legitimate corporate bank accounts and used money belonging to her employer to pay for her own personal expenses and deposited funds into her personal bank accounts. Nipper acknowledged that her scheme defrauded the company of more than $2 million.
In addition, as part of the plea agreement, Nipper admitted that she overstated her income in connection with two mortgage loan applications in June of 2008. Further, Nipper admitted that she filed false U.S. Income Tax Returns for the tax years 2009, 2010, and 2011. In each case, she understated her income, resulting in a failure to report more than $1 million of income and a tax loss to the United States of at least $290,000.
On April 7, 2016, a federal grand jury charged Nipper by Superseding Indictment with three counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of bank fraud, in violation of 18 U.S.C. § 1344(2); and three counts of filing a false tax return, in violation of 26 U.S.C. § 7206(1). Pursuant to her plea agreement, Nipper pleaded guilty to three counts of wire fraud, two counts of bank fraud and two counts of filing a false tax return.
In addition to the prison term, Judge Gilliam issued a forfeiture money judgment in the amount of $2,029,068 against Nipper and has ordered an April 30, 2018 hearing to determine the amount Nipper will be ordered to pay in restitution. In addition, Judge Gilliam ordered Nipper to serve 36 months of supervised release following her prison term during which time the defendant may not undertake, without prior permission, a position of fiduciary capacity. Nipper currently is released on a bond and has been ordered to self-surrender on or before April 30, 2018, to begin serving her prison term.
Assistant United States Attorney Tom Green is prosecuting this case with the assistance of Noble Hughes and Katie Turner. This prosecution is the result of an investigation by the FBI and the IRS.
Doctor Allegedly Prescribed Opioids for Dead and Incarcerated People in “Pill Mill” Operation; Doctor and Seven Others Arrested and ChargedRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – March 12, 2018
SAN DIEGO – Egisto Salerno, a medical doctor, who owns and operates a medical office on El Cajon Boulevard in San Diego, and seven others have been arrested on federal charges stemming from their alleged roles in a conspiracy to possess with the intent to distribute hydrocodone as part of a ‘pill mill’ operation.
Special agents with the Drug Enforcement Administration arrested Dr. Egisto Salerno, 73, of San Diego; Stephen Toney, 57, of San Diego; April Cervantes, 27, of San Diego; David Apple, 25, of Chula Vista; Amber Horne, 28, of El Cajon; Lonnell Ligon, 55, of San Diego; Shalina Latson, 47, of San Diego; and LaJuan Smith, 38, of San Diego. Each is charged with one count of conspiracy to possess with the intent to distribute a controlled substance.
The complaint alleges that, beginning not later than November 2014, defendant Stephen Toney and others recruited individuals, often homeless or of limited means, to pose as “patients” at the office of Salerno to obtain hydrocodone prescriptions. Salerno, who received an office visit fee for each “patient,” performed a cursory or no physical examination and prescribed the hydrocodone despite the lack of any legitimate medical purpose and outside the usual course of professional practice. The “patients” were paid for turning over their hydrocodone tablets to defendants. The defendant recruiters arranged transportation of these “patients” to Salerno’s office, to a pharmacy to pick up the hydrocodone, and then returned them to or near homeless shelters or their residences. Toney and other co-conspirators intended to further distribute these hydrocodone tablets.
Salerno is alleged to have prescribed hydrocodone for, among others, dead “patients” and “patients” who were in jail and who could not, therefore, have been in Salerno’s office when they were allegedly examined by Salerno and hydrocodone was prescribed in their names. For example, one patient died in October 2015 and Salerno allegedly saw that patient and prescribed hydrocodone in that patient’s name five times after death, including two prescriptions written more than a year after the death.
According to the charging documents, Salerno and two of his medical assistants allegedly falsified chart notes and medical records to justify these hydrocodone prescriptions and further the conspiracy. In one instance, the medical chart for an undercover agent who visited the clinic was seized by agents during execution of a search warrant. That chart included a set of medical examination notes in Salerno’s handwriting and signed by him purporting to document a visit that never occurred. The charging documents allege that hydrocodone was prescribed on that date in the name of the undercover agent and the tablets were picked up from the pharmacy by defendant Stephen Toney.
Hydrocodone is the generic name for a narcotic analgesic that is sold under a variety of brand names such as Vicodin, Norco and Lortab. When legally supplied by a licensed practitioner for a legitimate medical purpose in the usual course of professional practice, hydrocodone is used to combat moderate pain. It is a Schedule II controlled substance (narcotic) that is widely abused and it is frequently diverted from legitimate medical channels and distributed illicitly on the street for profit and abuse.
“The opioid crisis is ravaging families in San Diego and Imperial Counties and is part of a national epidemic,” said U.S. Attorney Adam Braverman. “We are and will continue to zealously prosecute and bring to justice those doctors, pharmacies, medical providers and others who are furthering this epidemic to line their own pockets.”
“Patients trust their doctors to give them the best care possible,” said DEA San Diego Acting Special Agent in Charge Steve Woodland. “It’s DEA’s responsibility to ensure that DEA registrants are worthy of that trust. DEA will keep conducting these investigations to ensure that registrants are following all the rules when prescribing these potentially deadly drugs.”
Anyone with information about opioid abuse/diversion or other drug diversion should report that to the Drug Enforcement Administration at https://apps.deadiversion.usdoj.gov or contact the DEA hotline at 1-877-RX-Abuse (1-877-792-2873).
DEFENDANTS Case Number 18mj1080
Egisto Salerno Age: 73 San Diego, CA
Stephen Toney Age: 57 San Diego, CA
April Cervantes Age: 27 San Diego, CA
David Apple Age: 25 Chula Vista, CA
Amber Horne Age: 28 El Cajon, CA
Lonnell Ligon Age: 55 San Diego, CA
Shalina Latson Age: 47 San Diego, CA
LaJuan Smith Age: 38 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Unlawfully Distribute and Dispense a Controlled Substance, 21 U.S.C. 846
Maximum penalty: 20 years’ imprisonment; $1,000,000 fine or twice the pecuniary gain or loss, whichever is greater, and five years’ supervised release.
INVESTIGATING AGENCIES
Drug Enforcement Administration
Internal Revenue Service
Health and Human Services-Office of Inspector General
California Department of Health Care Services
San Diego County Sheriff’s Department
California Department of Justice
San Diego Police Department
*The charges and allegations contained in a Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Detroit Drug Dealer Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
HUNTINGTON, W.Va. – A Detroit man caught with heroin and a firearm in July 2017 was sentenced today by United States District Court Judge Robert C. Chambers to 151 months in federal prison, announced United States Attorney Mike Stuart. Antonio Newson, 43, previously pled guilty to possession with intent to distribute 100 grams or more of heroin.
“Thanks to the tireless work of the Huntington FBI Drug Task Force, yet another Detroit drug dealer has been taken off the streets of Huntington. Together with our law enforcement partners, we are taking Huntington back, one Detroit drug dealer at a time,” said United States Attorney Mike Stuart. Continued Stuart, “At the pace we’re locking up Detroit thugs, the State of Michigan should be sending us money to help pay prison costs.”
On July 10, 2017, officers with the Huntington FBI Drug Task Force executed a search warrant at Newson’s residence, 1748 Jefferson Avenue, Apartment 1, in Huntington, West Virginia. During the search, officers located approximately 983 grams of heroin in a closet. Officers also located a firearm in the closet. As part of the plea agreement, Newson admitted that the heroin and the firearm belonged to him. Newson also admitted to the other drug activity charged in the indictment. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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 illegal 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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Des Moines Man Sentenced to Prison for Enticement of a Minor ChildRead the Press Release
DES MOINES, Iowa – On March 8, 2018, Dale Alan Grau, age 52, of Des Moines, Iowa, appeared before United States District Court Judge Stephanie M. Rose and was sentenced to 120 months in prison following his plea of guilty to enticement and attempted enticement of a minor to engage in elicit sexual activities announced United States Attorney Marc Krickbaum. Grau was ordered to serve a ten-year period of supervised release to follow his prison term.
According to the plea agreement, Grau admitted between the dates of February 20 and 23, 2017, he attempted to persuade and entice a 14 year-old boy, using the Internet, to engage in sexual activity with him.
This investigation was conducted by the Marion County Attorney’s Office, Marion County Sheriff’s Office, Knoxville Police Department, Pella Police Department, Pleasantville Police Department, Warren County Sheriff’s Office, Indianola Police Department, Mid Iowa Narcotics Task Force, Iowa Division of Criminal Investigation, United States Department of Homeland Security – Homeland Security Investigations, and the United States Marshals Service.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the 24-hour Iowa Sexual Abuse Hotline at 1-800-284-7821. The National Center for Missing and Exploited Children (NCMEC) also operates a Cyber Tip line at www.cybertipline.com that allows parents and children to report child pornography and other incidents of sexual exploitation of children by submitting an online form.
Department of Justice to Hold Roundtable on Criminal Antitrust ComplianceRead the Press Release
On April 9, the Department of Justice’s Antitrust Division will hold a public roundtable discussion to explore the issue of corporate antitrust compliance and its implications for criminal antitrust enforcement policy.
The roundtable will provide a forum for the Antitrust Division to engage with inside and outside corporate counsel, foreign antitrust enforcers, international organization representatives, and other interested parties on the topic of antitrust compliance. Participants will discuss the role that antitrust compliance programs play in preventing and detecting antitrust violations, and ways to further promote corporate antitrust compliance. The format of the program will be a series of panel discussions with featured speakers. Audience participation in the discussions will be encouraged.
The Roundtable will take place in the Great Hall of the Robert F. Kennedy Department of Justice Building, 950 Pennsylvania Avenue, NW, Washington, DC, from 1:00 p.m. to 5:00 p.m. EDT. The agenda can be found here.
“Corporate compliance is key to the Antitrust Division’s ultimate goals of preventing and uncovering criminal antitrust violations and protecting consumers and small businesses,” said Assistant Attorney General Makan Delrahim. “The Division values continued engagement with corporate counsel, the antitrust bar, and other stakeholders on this important topic.”
The roundtable will be open to the public. Individuals wishing to attend must register on the Department’s website. For more information or to submit questions or comments, please send an email to [email protected].
Reasonable accommodations for people with disabilities are available upon request. Requests should be submitted via email to Jeremy Edwards in the Office of Public Affairs at [email protected] or by calling 202-307-2016. Requests should be made in advance. Please include a detailed description of the accommodation needed and provide contact information.
Department of Justice, EPA Reach Agreement with Two Idaho Mining Companies to Secure Wastewater Treatment and Remove a Barrier to New Mining OperationsRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) announced a settlement with the owner of the Bunker Hill Mine, Placer Mining Company, Inc. (Placer Mining), resolving Placer Mining’s cleanup liability in Idaho’s northern panhandle. The Department of Justice and EPA have concurrently reached a settlement with the lessee of the Bunker Hill Mine, Bunker Hill Mining Corp. (BHMC), removing a barrier to new operations at the Mine.
The settlement:- Protects area waterways and ecosystems, through the continued treatment of 1,300 gallons of acid mine drainage discharged per minute;
- Reduces the financial burden on federal taxpayers by shifting the responsibility for future wastewater treatment to the new operator;
- Paves the way for a new mining enterprise, with the prospect of more jobs in Idaho’s Silver Valley;
- Offers more regulatory certainty for current and future mine owners/operators; and
- Resolves close to three decades of litigation surrounding the cleanup of contaminated mine waste in Idaho’s Silver Valley.
“Today’s settlement ends years of litigation, recoups for taxpayers millions of dollars in cleanup costs, and ensures a better environment for the people of Idaho, while also spurring economic growth and job creation in the northern panhandle region,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “We are pleased to work with our partners at EPA to bring this longstanding matter to a good resolution.”
"Through this settlement, EPA is clearing the way for a new operator to resume mining, bringing jobs back to the community, while also securing the ongoing cleanup of contaminated water and recovery of EPA's past cleanup costs," said EPA Administrator Scott Pruitt. "EPA is delivering on its Superfund Task Force commitments."
As part of the settlement, BHMC will pay EPA up to $20 million, on behalf of Placer Mining, in satisfaction of EPA’s past costs claim against Placer Mining. Placer Mining also agrees drop its “takings” case against the United States. This settlement of claims between EPA and Placer Mining also enables BHMC to return the Bunker Hill Mine to production after a hiatus of more than two decades. For nearly a century, the Bunker Hill Mine was one of the most productive mines in the Coeur d’Alene Mining District. As part of the agreement, BHMC has agreed to pay for future treatment of acid mine drainage coming from the mine. BHMC has also agreed to undertake various maintenance and monitoring tasks to help ensure previous cleanup work at the Superfund Site remains protective and is not adversely impacted by new mining operations.
By innovatively approaching this complex situation involving multiple parties and interests, EPA and the Department of Justice addressed a host of complex legal and technical issues that arise when a third party locates a business within a Superfund site where response actions and litigation are pending. These issues were resolved through a combination of a consent decree for cost recovery and a prospective purchaser agreement to govern the performance of ongoing response actions.
The Bunker Hill Mine sits amidst the Bunker Hill Mining and Metallurgical Complex Superfund Site (https://go.usa.gov/xnm9K0), running next to Interstate 90 from near the Montana state line, then along the Coeur d’Alene River, and reaching into the state of Washington. The historic Jesuit Cataldo Mission is also within the Site, which has been home to the Coeur d’Alene Tribe for millennia.
EPA first listed the Site on its National Priorities List (NPL) in 1983. Soon after being added to the NPL, cleanup of mine waste contamination in surface water, groundwater, soil, and sediment began across the Site. EPA and the state of Idaho jointly lead the project. Currently, EPA and the state of Idaho are coordinating approximately $25-$30 million in cleanup projects annually.
The site-wide cleanup was spurred by the toxic side effects of widespread lead (and other metals) contamination which began showing up in the 1970s in routine blood lead screenings for children who lived in the area. Some of the highest blood lead readings ever documented in North America were measured in local children in the 1970s and 1980s. Following years of a comprehensive approach that includes a large-scale cleanup, outreach, education, and health interventions, local blood lead levels are now within the national average.
Funding from this settlement will help reimburse EPA for past costs incurred related to the Central Treatment Plant (CTP) in Kellogg, Idaho. The CTP has been treating acid mine drainage from the Bunker Hill Mine since 1995. The settlement agreement is structured to recover up to 82% of the past costs for water treatment and result in payment for all future water treatment costs.
The consent decree, lodged in the District Court of Idaho, is subject to a 30-day federal public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
For more information about the settlement, please visit: https://www.epa.gov/enforcement/case-summary-third-party-settlement-bunker-hill-site-secure-wastewater-treatment-and.
Defendant pleads guilty in international business email compromise scamRead the Press Release
ATLANTA - Kerby Rigaud, who participated in an international business email compromise scheme, has pleaded guilty to conspiracy to commit wire and bank fraud and money laundering.
“Business email compromise scams continue to inflict serious harm on our citizens and businesses,” said U.S. Attorney Byung J. “BJay” Pak. “We urge everyone to carefully scrutinize any emails they receive directing the transfer of money via wire. We will continue to pursue justice for the victims of this pernicious financial threat.”
“Rigaud and his co-conspirators used cyberspace to organize a complex criminal scheme that crossed borders and defrauded numerous people right here in Georgia,” said Kenneth Cronin, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “The United States Secret Service and our law enforcement partners will continue to place a high priority on investigating cases that take advantage of unsuspecting victims.”
According to U.S. Attorney Pak, the charges and other information presented in court: From April 2015 through April 2016, Rigaud served as a key player in an international business email compromise scam impacting victims across the U.S., including in the Northern District of Georgia. In numerous instances, victims, including those identified in the indictment as T.W., A.P., and J.L., received emails that purported to be from trusted sources, including banking representatives and closing agents. The emails directed the victims to wire money to specific bank accounts, some of which were opened in the metro-Atlanta area.
Rigaud’s co-conspirators sent the emails, and in some instances, they hacked into victim’s email accounts. In others, they “spoofed” the email addresses; that is, the co-conspirators took steps to make the email appear as if it were sent by a trusted source, when in reality, it was sent from a different account by a malicious actor.
Rigaud recruited numerous individuals who agreed to let him use their bank accounts for the purpose of receiving large wires from unwitting victims. After receiving the wires, Rigaud directed his recruits on where to send the money, including to a number of financial institutions in Asia. Investigators believe that Rigaud and his co-conspirators attempted to steal over $1 million dollars during the timeframe of the conspiracy.
Sentencing for Kerby Rigaud, 27, of Duluth, Georgia, is scheduled for June 14, 2018 at 10:00 am at before U.S. District Judge Eleanor L. Ross.
This case is being investigated by the U.S. Secret Service.
Assistant U.S. Attorney Kamal Ghali is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.