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Wednesday 10 January 2018
McKeesport Gun Store and Owner SentencedRead the Press Release
PITTSBURGH – Erik David Lowry, a resident of McKeesport, Pennsylvania, has been sentenced in federal court to 30 months of incarceration on his conviction for illegal firearms possession, tampering with evidence, and tampering with a witness, United States Attorney Scott W. Brady announced today. Pittsburgh Tactical Firearms, the gun store owned and operated by Lowry, was also sentenced for illegally selling firearms, United States Attorney Brady announced.
Lowry, age 38, of McKeesport, PA, and Pittsburgh Tactical Firearms (originally incorporated as Renaissance Electric, LLC), were both sentenced on January 10, 2018 by United States District Judge Arthur J. Schwab.
According to information presented to the court, ATF Industry Operations (IO) employees perform standard inspections of all gun dealers to ensure that federal laws are being followed. Federal Firearms Licensee (FFL) inspections of this type reveal that the majority of gun dealers diligently ensure that firearms are sold to law-abiding citizens, thereby enhancing the safety of the public. A January 11 through 19, 2016, IO inspection of Pittsburgh Tactical Firearms (PTF), owned and operated by defendant Erik David Lowry, noted numerous significant and clear violations of law-- including 27 guns located in the store’s gun rack which Lowry called “cash and carry” and was willing to sell without completing any paperwork. ATF Special Agents followed up and that in-depth investigation determined that Lowry and PTF had been illegally selling and acquiring over 100 “cash and carry,” “cash out the door,” or “turn and burn” firearms “off books” at his store and through gun shows between 2014 and January 19, 2016. That is, neither Lowry nor PTF completed the required paperwork for either the acquisition or disposition of these firearms. The investigation also located firearms transactions that were made: without any required background checks being performed; to a prohibited person with a criminal record who was previously denied the ability to purchase a firearm by a background check at PTF; to a prohibited person with a prior mental health commitment (who was denied the ability to purchase a firearm by two other gun dealers who actually did perform the required background check); and by knowingly using false information on paperwork that had been completed. Some of these transactions involved military-style weapons and the ATF has expended significant resources attempting to locate and recover these illegally sold firearms.
Further, Lowry acquired a “destructive device,” specifically a Penn Arms Striker 12 military-style 12-gauge weapon with a drum magazine, not suitable for sporting purposes, and bearing serial number 11170, which, like a machinegun, silencer, grenade, rocket, or landmine must be specifically registered in the National Firearms Registration and Transfer Record, but was not. Lowry acquired it in the summer of 2015 and disguised that fact until it was located by the ATF on January 19, 2016. As the investigation proceeded, Lowry attempted to conceal his actions by contacting multiple people to have them hide or destroy the unregistered Striker 12 by throwing it in a dumpster, in order to, he said, avoid federal prison.
As these attempts failed, Lowry contacted the previous Striker 12 owner and created a false story about the date, time and manner of the acquisition, which he and the prior owner both provided to ATF.
United States District Judge Schwab imposed a 30-month period of incarceration on Lowry, along with a $30,000 fine, and ordered that Lowry be supervised by the United States Probation Office for a period of three years after he is released from federal prison. The corporation’s conviction means that Pittsburgh Tactical Firearms is no longer legally permitted to possess or sell firearms and Judge Schwab ordered that Lowry notify the Court of the corporation’s dissolution as soon as that is complete.
Assistant United States Attorney Ross E. Lenhardt, a federal prosecutor with the Violent Crime Section of the Office of the United States Attorney, represented the federal government.
U.S. Attorney Scott W. Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), including their Industry Operations investigators, and the Allegheny County Sheriff’s Office, for the investigation that led to the prosecution of Erik David Lowry and his gun store, Pittsburgh Tactical Firearms.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes.
McComb Man Pleads Guilty to Commercial Driver’s License FraudRead the Press Release
Jackson, Miss. – Derrious Emadrick Dillon, 37, of McComb, pled guilty yesterday in U.S. District Court to aggravated identity theft, announced U.S. Attorney Mike Hurst and Regional Special Agent in Charge Marlies Gonzalez of the U.S. Department of Transportation, Office of Inspector General.
Dillon previously worked for a company that provided training and certification to individuals seeking commercial driver’s licenses ("CDLs"). When his employment was terminated in 2014, he nonetheless continued providing paperwork to those whom wanted a CDL. Dillon obtained a list of authorized CDL instructors and their identification numbers in the State of Mississippi. He used names and identification numbers of those authorized CDL instructors to prepare fraudulent paperwork for individuals seeking CDLs. This fraudulent paperwork would be given to an individual seeking to obtain a CDL in exchange for payment to Dillon. Such fraudulent paperwork would be presented by these individuals to the Mississippi Department of Public Safety in order to secure a commercial driver’s license. Dillon received $200-$400 for each set of fraudulent paperwork. A review of the commercial drivers’ paperwork in Mississippi showed that some of the applicants could not have achieved the results on the paperwork. Some Commercial Driver’s License holders were interviewed and said they had never taken the test and just paid Dillon for the paperwork.
"These types of crimes endanger our children, our families and the public at large on our roadways. When a person chooses to exchange our safety for their personal benefit, they will be prosecuted and held accountable. I commend our law enforcement partners for their excellent work to ensure our roads are and remain safe," said U.S. Attorney Hurst.
"This investigation demonstrates our commitment to protecting the efficacy of DOT’s commercial driver’s license regulations and advancing safety on the roads by ensuring that only qualified individuals obtain CDLs," stated Marlies Gonzalez, Regional Special Agent-In-Charge at U.S. DOT-OIG. "Working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts to prevent, detect and prosecute fraud schemes which endanger the traveling public."
Dillon is scheduled to be sentenced by Senior U.S. District Judge David C. Bramlette III, on April 10, 2018, in Jackson, Mississippi. He is facing a maximum penalty of two years in prison and a 250,000 fine.
The case was investigated by the United States Department of Transportation-Office of Inspector General, Mississippi Department of Public Safety, Mississippi Bureau of Investigation and the Federal Motor Carrier Safety Administration. It is being prosecuted by Assistant United States Attorney Erin Chalk.
Maryland man admits to bank fraud chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Baltimore, Maryland man has admitted to bank fraud, United States Attorney Bill Powell announced.
Steven Allen Baldwin, Jr., age 34, pled guilty to one count of “Conspiracy to Commit Bank Fraud.” Baldwin admitted to conspiring with others to steal checks from mailboxes, create counterfeit checks, and cashing those counterfeit checks. The crime took place in April 2016 in Berkeley and Jefferson Counties, West Virginia. More than $9,900 was taken in this case.
Baldwin faces up to 30 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Danae DeMasi-Lemon and Lara Omps-Botteicher are prosecuting the case on behalf of the government. The United States Postal Inspection Service investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Maryland Men Convicted of Sex Trafficking Three Minor Victims Throughout the East CoastRead the Press Release
A federal jury convicted two Hyattsville, Maryland men today of conspiracy to commit sex trafficking of minors, including by force, fraud, or coercion, as well as sex trafficking three minors, throughout the East Coast over the course of several months in 2016.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office, made the announcement.
Ivan Duane Williams aka “Lucci,” 28, and Dennis Ray Davis Jr. aka “Dee,” 26, were convicted following a six-day jury trial before Senior U.S. District Court Judge T.S. Ellis III in the Eastern District of Virginia. According to court records and evidence presented at trial, Williams and Davis recruited three underage girls whom they trafficked in multiple locations, including Atlanta, Georgia; Maryland; Northern Virginia; Richmond, Virginia; and Washington, D.C. The evidence presented at trial showed that Williams and Davis, working together and with two female co-conspirators in the sex trafficking ring, posted online advertisements of the victims, offering them for commercial sex with men throughout the region; reserved hotel rooms at which they and the victims would stay when traveling to engage in commercial sex acts; drove the victims to the hotels and other locations where the commercial sex acts would occur; and collected the money given to the victims by the commercial sex customers. The evidence further showed that when two of the minors tried to leave the group, the defendants resorted to violence, including threats, physical force, and brandishing firearms. Williams and Davis used the money earned by the victims to create rap music where they bragged about exploiting females, and to fund their day-to-day living expenses.
The victims were recovered after law enforcement with the Fairfax County Police Department and Henrico County Police Department responded in undercover capacities to online advertisements for the victims.
“Every American has the right to be safe from violence and exploitation, and it is the mission of this Department to help secure that right,” said Attorney General Sessions. “Today, during this Human Trafficking Prevention Month, we have won a major victory by securing the conviction of two men who trafficked and exploited underage girls for commercial sex. I want to thank the dedicated men and women of the FBI’s Child Exploitation Task Force, our partners with the Fairfax and Henrico County police, and our dedicated and skilled prosecutors Maureen Cain and Jessica Urban for their hard work in ensuring the criminals are held accountable and justice is achieved for the victims. They have delivered results today that will make this country a safer place for children. I also want to thank President Trump for calling attention to this issue by designating January as National Slavery and Human Trafficking Prevention Month. The Justice Department will remain steadfast in our efforts to rescue trafficking victims and put those who victimize children behind bars.”
The FBI’s Child Exploitation Task Force investigated the case with substantial assistance from the Fairfax County Police Department and the Henrico County Police Department. Assistant U.S. Attorney Maureen Cain of the Eastern District of Virginia and Trial Attorney Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
President Donald J. Trump recently announced January 2018 as National Slavery and Human Trafficking Prevention Month, which culminates on February 1, 2018 with the annual celebration of National Freedom Day. In February 2017, President Trump signed an Executive Order, which directed the Attorney General to dismantle transnational criminal organizations, including those involved in human trafficking.
Leader of Queens-Based Child Sex Trafficking Ring Sentenced to 15 Years’ ImprisonmentRead the Press Release
Earlier today in federal court in Brooklyn, Michael Andres Miller was sentenced to 15 years’ imprisonment by United States District Judge Kiyo A. Matsumoto for trafficking minors for sex in Queens, New York, New Jersey, and Pennsylvania. Miller previously pled guilty to this crime on May 9, 2017. Miller was also ordered to pay restitution in the amount of $9,500 to the minor victims identified in the indictment as Jane Doe #1, Jane Doe #2 and Jane Doe #3.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“The defendant Michael Andres Miller targeted and recruited young girls to engage in prostitution with adult men for his personal profit and without regard for the harm he was causing these vulnerable victims,” stated United States Attorney Donoghue. “Today’s sentence holds the defendant accountable for his predatory conduct. This Office, together with our law enforcement partners, will continue to investigate and prosecute those who seek to profit from the sexual exploitation of children.”
“Children are supposed to be protected by adults, not used as a means to make money,” stated FBI Assistant Director-in-Charge Sweeney. “The mere idea that this man sold girls, one as young as 14, and even used them for his own sexual gratification boggles the mind. The FBI New York Child Exploitation Task Force, which includes the NYPD and other state and local law enforcement agencies, will continue to do all it can to stop these sex traffickers from taking advantage of young girls.”
According to court filings, the defendant oversaw a sex trafficking ring that preyed upon girls as young as 14 years old. He recruited girls online, using popular social media applications including “Meet Me” and “Kik,” posted advertisements for them and prostituted them through the web site Backpage.com, and had sex with at least two of these young girls. In August 2016, police officers arrested the defendant and a co-defendant in a hotel room in Pennsylvania, where they also recovered the middle school identification card of one of the defendant’s victims, who the defendant was prostituting at nearby hotels.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorney Nomi D. Berenson is in charge of the prosecution.
The Defendant:
MICHAEL ANDRES MILLER (also known as “Jason m,” “mikegmiller” and “Jay”)
Age: 26
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-536
Leader of Fraudulent Identification Document Conspiracy Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced the leader of a fraudulent identification document conspiracy to 39 months in prison, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Juan Diego Gonzalez-Campos, 30, of Mexico, will also be subject to deportation proceedings upon the completion of his federal sentence. Gonzalez-Campos previously pleaded guilty to conspiracy to produce fraudulent identification documents, aggravated identity theft and possession of firearm ammunition by an alien.
Greg Wiest, Acting Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas, joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from February 2016 to March 2017, Gonzalez-Campos and his co-defendants, Faustino Pelaez-Arellanes, Anabel Salinas-Marin, Hector Tellez-Crisanto, and Socorro Garcia-Merida, engaged in an illegal scheme to produce and transfer fraudulent identification documents, including but not limited to, Social Security cards, birth certificates, and state driver’s licenses. Gonzalez-Campos sold the falsified documents to numerous individuals, including to undocumented aliens, knowing the documents would be used as proof of eligibility to remain and work in the United States.
As the ringleader of the conspiracy, Gonzalez-Campos sold the fraudulent documents to individuals that Gonzalez-Campos either knew or were referred to him by his co-defendants. Court records also show that Gonzalez-Campos and his co-conspirators charged customers between $270 and $1,000 per document, depending on the type of fraudulent identification provided. According to court records and today’s sentencing hearing, Campos-Gonzalez often produced documents using stolen Social Security numbers of American citizens, to which the conspirators referred as “good numbers,” which often caused impacted individuals problems with filing tax returns and their credit.
In addition to the fraudulent identification conspiracy, law enforcement recovered 25 Remington Golden Saber High Performance Jacket 9mm luger rounds, which Gonzalez-Campos possessed unlawfully.
In announcing Gonzalez-Campos’s sentence, Judge Cogburn said, “The stealing of identities of real people is causing serious problems in this country.”
Gonzalez-Campos is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
ICE-HSI led the investigation. Assistant United States Attorney Kenneth Smith, of the U.S. Attorney's Office in Charlotte, is prosecuting the case.
Lawrence Man Sentenced for Illegally Possessing a FirearmRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Boston for unlawfully possessing a firearm and ammunition.
Benito Rivera, 45, was sentenced by U.S. District Court Judge William G. Young to 67 months in prison and three years of supervised release. In September 2017, a federal jury convicted Rivera of one count of being a felon in possession of a firearm and ammunition. Rivera’s federal sentence will begin when he is released from state custody, where he is currently serving a two-year sentence for violating state probation.
On Aug. 7, 2016, a law enforcement officer stopped Rivera in Lynnfield for operating a motor vehicle with a revoked registration. After being ordered to exit the vehicle, Rivera fled the scene on foot. The foot chase ended when the officer tackled Rivera and the two men rolled onto Route 1. Two civilian witnesses saw Rivera throw an object into a nearby backyard as he was fleeing the scene. A search of the yard resulted in the seizure of a Hi-Point, Model C9, 9mm pistol loaded with seven rounds of 9mm ammunition. Previously, Rivera had been convicted in Massachusetts State Court of two counts of armed robbery and cocaine trafficking and in federal court of conspiracy to distribute cocaine.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorneys Anne Paruti, David G. Tobin, and Nicholas Soivilien of Lelling’s Major Crimes Unit prosecuted the case.
Laredo Man Sentenced for Alien Harboring ConspiracyRead the Press Release
LAREDO, Texas – A 43-year-old resident of Laredo has been ordered to federal prison for role in an alien smuggling incident which led to the kidnapping of multiple illegal aliens, announced U.S. Attorney Ryan K. Patrick. Jesus Osorio pleaded guilty Aug. 7, 2017, admitting he conspired to harbor and transport undocumented aliens in which the defendant caused serious bodily injury to another person.
Today, U.S. District Judge Marina Garcia Marmolejo handed Osorio a 87-month sentence which will be immediately followed by three years of supervised release. He was further ordered to complete 150 hours of community service. In handing down the sentence, Judge Marmolejo noted that during the conspiracy, some of the aliens were threatened with weapons and that at least one suffered severe bodily injury during an eventual kidnapping.
On July 5, 2016, law enforcement responded to an incident at a residence in Laredo where eight undocumented aliens were kidnapped and held hostage against their will. They had previously made arrangements to be smuggled into the United States. After their arrival, they stayed at a Laredo residence for two weeks.
They were then transported to a second location where Angel Alexis Diaz, 20, Jose Israel Diaz, 43, and Julio Osorio, 40, all of Laredo, held them hostage. The victims reported being beaten, forced to undress and ordered to contact family members to pay a ransom for their release.
Through further investigation, authorities learned Jesus Osorio was the man who drove the aliens from the stash house to the second residence where they were eventually kidnapped. During the course of the offense, one of the undocumented aliens was seriously injured and required hospitalization.
Jesus Osorio will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Angel Diaz, Jose Diaz and Julio Osorio were convicted of conspiracy to kidnap illegal aliens and received sentences of 262-360 months in prison.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department and U.S. Border Patrol. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.
Lake Charles woman pleads guilty to stealing more than $71,000 of father’s social security benefitsRead the Press Release
LAKE CHARLES, La. – United States Attorney Alexander C. Van Hook announced that a Lake Charles woman pleaded guilty Tuesday to stealing more than $71,000 of her deceased father’s Social Security benefits.
Heather Vincent, 43, of Lake Charles, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of theft of government funds. According to the guilty plea, Vincent’s father died on February 1, 2014. From that time until February 28, 2017, Vincent did not notify Social Security that her father was deceased, and she received and spent $71,463 in benefits as they were deposited into his bank account.
Vincent faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set an April 17, 2018 sentencing date.
The Social Security Administration-Office of Inspector General conducted the investigation. Assistant U.S. Attorney T. Forrest Phillips is prosecuting the case.
Kentucky Moving Companies Enter into Consent Judgment to Resolve False Claims Allegations - Agree to Pay $264,826.52Read the Press Release
Overcharged shipping costs associated with moving members of the United States Armed Forces
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced entering into a Consent Judgment between several Kentucky moving companies and the United States over allegations that the companies defrauded the United States out of monies by systematically overbilling the United States Army for shipping costs associated with deploying and/or relocating United States Service personnel. The Consent Judgment will resolve a lawsuit filed by the United States in the Western District of Kentucky styled United States of America v. Lynn Moving and Storage, Inc. et al., Civil Action No. 3:18-cv-000190-CRS (WDKY).
Specifically, Lynn Moving and Storage, Inc., Shadowens Moving and Storage Company, Inc., both of Brooks, Kentucky, and E-Town Moving and storage, Inc., located in Elizabethtown, Kentucky, along with their individual owners, admitted to violating the False Claims Act and agreed to pay $264,826.52 in civil penalties and damages.
Having the same ownership and management, as alleged by the United States, the defendants engaged in a company-wide conspiracy between January 2009, and December 2014, to defraud the United States government by causing false, inflated weight tickets to be created in order to increase the weight of the shipments and the amount of payment to the companies by the military. The military’s Defense Personal Property Program (DP3) facilitates the shipment of service members’ household goods, unaccompanied baggage, privately owned vehicles, and other personal belongings. The program allows moving companies to bill for services that ties the freight rate of payment to the pounds moved and distance traveled.
Defendants inflated the net weight of numerous shipments by inflating the gross weights and/or deflating the tare weight (weight of the vehicle). Company employees accomplished this by adding fuel between the recording of the tare and gross weighs, adding personnel and pallets of paper when recording the gross weight and/or deliberately positioning the truck so that it was not fully on the scale, and removing equipment and packing materials when recording the tare weight.
Company owners routinely reminded crew members to engage in these practices, threatening termination should they refuse to do so.
In addition to the civil damages, owners William Kenneth Montgomery and Lonnie Curl were charged in United States District Court by Criminal Information, on November 28, 2017, with a single count of False Claims Conspiracy. If convicted at trial the defendants could be sentenced to no more than ten years in prison and fined up to $250,000. Montgomery and Curl are scheduled for a change of plea before Senior Judge Charles R. Simpson III, on January 25, 2018, in Louisville.
This case was investigated by the Department of Defense, Defense Criminal Investigative Service with assistance from the U.S. Army’s Criminal Investigation Command, Major Procurement Fraud Unit and is being prosecuted by Assistant United States Attorneys Benjamin S. Schecter and Joshua D. Judd.
KC Man Indicted for Eight Metro-Area Armed RobberiesRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today on charges related to the armed robberies of eight metropolitan area businesses.
Calvin C. Wallace, III, 27, of Kansas City, was charged in a 14-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Wallace engaged in a conspiracy to commit robberies at eight Kansas City metropolitan area businesses from June 29 to Aug. 3, 2017. As part of that conspiracy, the indictment says, Wallace robbed Cosmo Prof, 9429 Mission Road in Leawood, Kan., at gunpoint on July 27, 2017. Wallace allegedly demanded that the clerk give him her ring, but she refused. The clerk opened two cash registers while Wallace pointed a firearm at her, the indictment says, and he took money from those registers, as well as a pair of hair clippers. Wallace allegedly demanded that the clerk go into the back of the store or he would shoot her.
According to the indictment, Wallace robbed Tobacco Outlet, 5020 Parvin Road in Kansas City, Mo., at gunpoint on June 29, 2017. Wallace allegedly took money, scales, a torch, tobacco wraps and boxes of cigarettes. The indictment also charges Wallace with possessing and brandishing a firearm in furtherance of a violent crime in relation to that robbery.
According to the indictment, Wallace robbed (or attempted to rob) two businesses on July 24, 2017. Wallace allegedly attempted to rob GNC, 2682 N.W. Vivion Road in Kansas City, Mo., at knifepoint. Wallace allegedly robbed Conoco Minit Mart, 8100 Westridge Road in Raytown, Mo., at gunpoint. The indictment also charges Wallace with possessing and brandishing a firearm in furtherance of a violent crime in relation to the Conoco Mini Mart robbery.
On July 27, 2017, Wallace allegedly robbed another Cosmo Prof, 5526 N. Antioch Road in Kansas City, Mo., at gunpoint. The indictment also charges Wallace with possessing and brandishing a firearm in furtherance of a violent crime in relation to that robbery.
Wallace allegedly robbed Circle K, 909 N.W. Chipman Road in Lee’s Summit, Mo., at gunpoint on Aug. 1, 2017. According to the indictment, Wallace stole money and cartons of cigarettes. Wallace is also charged with possessing and brandishing a firearm in furtherance of a violent crime in relation to that robbery.
Wallace allegedly attempted to rob Shell, 5401 Northwest 64th Street in Kansas City, Mo., at gunpoint on Aug. 2, 2017. Wallace is also charged with possessing and brandishing a firearm in furtherance of a violent crime in relation to that robbery.
According to the indictment, Wallace robbed AT&T, 303 South Commercial Street in Harrisonville, Mo., at gunpoint on Aug. 3, 2017. Wallace allegedly stole money, cell phones and an iPad. Wallace is also charged with possessing and brandishing a firearm in furtherance of a violent crime in relation to that robbery.
Garrison cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Raytown, Mo., Police Department, the Leawood, Kan., Police Department, the Lee’s Summit, Mo., Police Department, the Harrisonville, Mo., Police Department, the Cass County, Mo., Sheriff’s Department and the Belton, Mo., Police Department.
KC Man Faces More Charges for Stalking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that additional charges were filed today against a Kansas City, Mo., man for stalking and illegally possessing firearms.
Robert J. Gross, 66, of Kansas City, was charged in an eight-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a criminal complaint filed against Gross on Dec. 26, 2017.
The indictment charges Gross with two counts of stalking separate victims on Oct. 1, 2017, three counts of being a felon in possession of a firearm and three counts of receiving a firearm while under indictment.
Gross allegedly was in possession of a 9mm Velocity “Uzi”-type firearm on Dec. 16, 2017. At that time, Gross was both a convicted felon and under indictment in the state of Kansas for aggravated sexual battery.
Gross allegedly was in possession of a Luger 9mm handgun on Dec. 17, 2017. At that time, Gross was both a convicted felon and under indictment in the state of Kansas for aggravated sexual battery.
Gross allegedly was in possession of a Springfield 12-gauge shotgun and a Winchester 12-gauge shotgun on Friday, Dec. 22, 2017. At that time, Gross was both a convicted felon and under indictment in the state of Kansas for aggravated sexual battery.
Under federal law, it is illegal for anyone who has been convicted of a felony, or who is under indictment, to be in possession of any firearm or ammunition. Gross has prior felony convictions for possession with intent to distribute cocaine and making terroristic threats to a former girlfriend.
According to an affidavit filed in support of the original criminal complaint, Gross was destroying property and stalking individuals associated with massage parlors in Kansas, which led to him being placed under surveillance by law enforcement.
On Dec. 2, 2017, officers saw Gross purchase four sets of handcuffs, two black shirts with “SECURITY” written on them with badges on the front, and two balaclavas (a garment used to conceal facial identity) from a surplus store in Kansas City, Kan. The manager of the business told investigators that Gross had purchased two sets of handcuffs two weeks earlier.
On Dec. 16, 2017, officers saw Gross inquiring about the purchase of firearms at the Kansas City Gun Show located at the KCI Expo Center. Gross picked up and handled a 9mm Velocity Uzi-type firearm at one of the booths. The dealer at the booth told investigators that Gross, who approached his booth multiple times throughout the day, had asked about purchasing up to three firearms. The next day, the affidavit says, Gross visited the gun show again and was seen inquiring about the purchase of firearms. Gross visited a different booth, where he picked up a 9mm Luger handgun and asked about buying it.
On Dec. 22, 2017, Gross returned to the surplus store in Kansas City, Kan., and was observed purchasing four more sets of handcuffs and a balaclava. Gross also asked about purchasing a bulletproof vest.
On Dec. 22, 2017, officers observed Gross allegedly purchase two shotguns from an unidentified individual in the parking lot of the Lowe’s Home Improvement store in Liberty, Mo. According to the affidavit, Gross first drove to the Pizza Ranch parking lot, where he removed the license plate from the front of his car. The rear license plate had been removed as well. Then Gross drove to the nearby Lowe’s store, where he was met by an individual driving a white pickup truck. The unidentified individual allegedly sold Gross two shotguns, which he handed to Gross from his truck. As Gross was putting two shotguns in the trunk of his car, officers arrested him for being a felon in possession of firearms.
According to the affidavit, the individual who sold the shotguns to Gross told investigators that Gross called him the day before, after seeing the firearms advertised on a web site. Gross told him he wanted to buy two shotguns for $350 and they arranged to meet at Lowe’s to conduct the sale.
Garrison cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorneys Jeffrey Valenti and Jess Michaelsen. It was investigated by the FBI, the Independence, Mo., Police Department, the Kansas City, Mo., Police Department, the Lawrence, Kan., Police Department, and the Douglas County, Mo., Sheriff’s Department.
Jury Convicts KCK Man Following Confrontation at Bolling Federal BuildingRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Kan., man has been convicted at trial following a confrontation with law enforcement officers at the Richard Bolling Federal Building.
James E. Everett, Jr., 31, of Kansas City, was found guilty on Tuesday, Jan. 9, 2018, of threatening a federal law enforcement officer, forcibly resisting a federal law enforcement officer and being a felon in possession of a firearm.
Everett arrived at the Richard Bolling Federal Building, 601 E. 12th St., Kansas City, Mo., at about 8:30 a.m. on March 10, 2016. He parked in an emergency vehicle-only parking space on 12th Street. At the building’s lobby entrance, Everett began yelling and demanded to speak to a federal judge. Four Federal Protective Service officers responded and encountered Everett on federal property, approximately 10 yards from the entrance. During the encounter, Everett threatened the officers, stating that he was going to “blow (their) brains out.” The officers then attempted to arrest Everett who fought them as they attempted to put him in handcuffs. It took all four FPS officers, as well as two Kansas City, Mo., police officers who responded to the scene, to restrain Everett.
During his arrest, Everett attempted to bite one FPS officer and spit on another. Three FPS officers received medical treatment following the encounter. After identifying the car in which Everett had arrived, a police officer found a loaded Ruger 9mm pistol underneath the driver’s seat.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Everett has a prior felony conviction for aggravated robbery as well as aggravated arson.
Under federal statutes, Everett is subject to a sentence of up to 24 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about an hour and a half before returning the guilty verdicts to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, Jan. 8, 2018.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther and Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the Kansas City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Protective Service.
Jefferson City Man Indicted on Mail Fraud ChargesRead the Press Release
St. Louis, MO – Dale Johansen was indicted today on mail fraud charges as part of a scheme to defraud residents of Rogue Creek in Potosi, Missouri.
According to the Indictment, Johansen owned Johansen Consulting Services LLC and was appointed as the receiver for Rogue Creek Utilities, Inc. which provided all sewer, water services and management to Rouge Creek. Rouge Creek was a vacation community containing three lakes located in Potosi and composed of approximately 90 active connections to the drinking water and sewer systems. Johansen’s duties as receiver was to collect samples and provide proper operation at Rogue Creek, including the oversight and maintenance of the water softener system.
On March 9, 2016, the Missouri Department of Natural Resources (MDNR ) learned that the water softener system at Rogue Creek was not operational and thus for at least six months, the residents were receiving well water that was not treated for lead removal. On March 10, 2016, the water softener system was brought back on-line so that the water was again being treated to remove lead. On March 11, 2016, the MDNR performed testing on the drinking water which resulted three of five samples testing high for lead.
Johansen issued invoices to customers for water services and falsely represented to residents of Rogue Creek that their well water was clean, disinfected and safe for human consumption. He also issued monthly invoices for water services, including the removal of lead in their well water, with the knowledge that the well water was not being treated for lead removal.
“EPA’s Criminal Investigation Division takes any allegations involving a public drinking water system very seriously,” said Justin Oesterreich, Assistant Special Agent in Charge of EPA’s criminal enforcement program in Missouri. “We will continue to aggressively investigate and seek prosecution of those whose actions put public health at risk.”
Johansen, 63, of Jefferson City, Missouri, was indicted by a federal grand jury on four felony counts of mail fraud.
If convicted, Johansen faces up to 20 years’ imprisonment, a fine of $250,000 or both on each count. Restitution to the victim is also mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the U.S. Environmental Protection Agency. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Jacksonville Man Pleads Guilty After Knocking on Stranger’s Window with A RevolverRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Tyree Alexia Hall (27, Jacksonville) today pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, at around 2 a.m. on March 19, 2017, officers from the Jacksonville Sheriff’s Office responded to a 911 call in a residential neighborhood involving Hall. Callers reported that Hall was holding a firearm and knocking on the window of a home, and that he had threatened to shoot a dog. Upon arriving at the location, two officers observed Hall standing in the road holding a dark object. After shining a light on him, the officers observed Hall drop the object in the street. Hall was apprehended and admitted to the officers that he had possessed a firearm. The gun was recovered and identified as a Ruger .38 caliber revolver.
Hall was previously convicted in 2010 and 2012 for possession of cocaine and burglary with assault or battery, respectively. As such, he is prohibited from possessing a firearm or ammunition under federal law.
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 Laura Cofer Taylor.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Indictment: Junction City Woman Produced Child PornographyRead the Press Release
KANSAS CITY, KAN. – A Junction City woman was indicted Wednesday on charges of producing child pornography, U.S. Attorney Tom Beall said.
Kayla Michelle Simpson, 22, Junction City, Kan., is charged with one count of using a child to produce child pornography and one count of violating the conditions imposed on a registered sex offender. The crime is alleged to have occurred in July 2016 in Junction City.
The indictment alleges that Simpson, who was registered sex offender, enticed a 16-year-old victim to engage in sexual activity for the purpose of producing child pornography.
If convicted, Simpson faces a penalty of not less than 15 years and not more than 30 years in federal prison on the production charge, and up to 10 years and a fine up to $250,000 on the sex offender charge. The FBI investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
OTHER INDICTMENTS
Mack W. Colvin, Jr., 31, Park City, Kan., is charged with one count of bank robbery and two counts of brandishing a firearm.
The indictment alleges Colvin robbed the Fidelity Bank branch at 1306 N. Woodlawn in Wichita on Dec. 13, 2017, and the Wheat State Credit Union at 1400 S. Oliver in Wichita on Dec. 19, 2017. In both cases, he is charged with brandishing a firearm.
If convicted, he faces up to 25 years in federal prison and a fine up to $250,000 on each robbery charge, and not less than seven years and a fine up to $250,000 on each firearm charge. The FBI and the Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
John Stephen Kissell, 31, who is in custody, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred in September 2017 in Topeka, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illinois Man Sentenced to Prison for Using Stolen IDs of U.S. Air Force Members to File Fraudulent Tax ReturnsRead the Press Release
A Harvey, Illinois, man was sentenced to 63 months in prison today for his role in a stolen identity refund fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois.
According to documents filed with the court, from around November 2014 to March 2015, Jonathan Herring, 34, working with at least two others, prepared and filed income tax returns with the Internal Revenue Service (IRS) using stolen names and social security numbers of U.S. Air Force service members, and deposited the fraudulently obtained tax refunds into bank accounts that he controlled. In total, Herring filed approximately 225 fraudulent returns seeking approximately $845,979 in tax refunds.
In addition to the term of imprisonment, Herring was ordered to serve four years of supervised release and to pay $593,786 in restitution to the IRS. Herring pleaded guilty to wire fraud and aggravated identity theft in February 2016.
Principal Deputy Assistant Attorney General Zuckerman and U.S Attorney Lausch thanked agents of IRS Criminal Investigation, who conducted the investigation and Trial Attorneys Michael C. Boteler and Timothy M. Russo of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Houston Man Sentenced to 150 Months in Federal Prison for His Role in Tilak Jewelers RobberyRead the Press Release
DALLAS — Terrence Lynn Thompson, 54, of Houston, Texas was sentenced today by U.S. District Judge Ed Kinkeade to serve a total of 150 months in federal prison, following his guilty plea in January 2017 to his role in the conspiracy to rob Tilak Jewelers in Irving, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Thompson pleaded guilty to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Thompson has been in custody since his arrest in March 2016.
Thompson was charged along with eleven other individuals in an indictment in February 2016. Afraybeom Traverom Jackson, Dominique Pearson, Hilton Murdock Aitch, Irving Tyrone Flanagan, Larry Solomon, Joshua Deunte Caldwell, Anthony Ray Turner, Jr, Treveon Dominique Anderson, Michael Cornelious, Xavier Rashad Ross, and Vanlisa Scott, were each charged with one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. On October 12, 2017, Jimmy Hatchett was charged for the same robbery. Out of the thirteen, eleven have pleaded guilty and two are set for trial on January 29, 2018.
According to plea documents filed in the case, in the early morning hours on November 17, 2013, Aitch, Jackson, Caldwell, Pearson, Flanagan, Solomon, Aitch, Thompson, Turner, Anderson, Cornelious, and Ross, traveled from Houston, Texas, to the Dallas, Texas area with the specific intent to rob the Tilak Jewelers store located at 8300 North MacArthur Boulevard, Suite 100, Irving, Texas. They stole a cargo van and a minivan after they arrived in the Dallas, Texas, area in order to avoid detection and apprehension by law enforcement.
Jackson, Caldwell, Pearson, Turner, Anderson, and Ross drove together in the stolen cargo van to the Tilak Jewelers store, with the specific intent to commit the robbery. Aitch, Flanagan, and Thompson participated in planning the robbery and positioned themselves outside the Tilak Jewelers store, but maintained communications with Jackson for the purpose of monitoring the robbery and alerting the participants of the presence of law enforcement.
Prior to entering the Tilak Jewelers store, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross disguised their identities by wearing longsleeved clothing, long pants, gloves, and items covering their faces. Jackson and the others entered the jewelry store by smashing the locked glass door with a hammer. After gaining entry into the store, they restrained the owners of the jewelry store with zip-ties, smashed jewelry display cases, and took jewelry from the owners and employees of Tilak Jewelers.
After securing the jewelry, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross fled from the robbery using the stolen cargo van. They abandoned the cargo van at a predetermined location, where Solomon was waiting in the stolen minivan. Solomon then drove them to a second predetermined location, where Cornelious was waiting in a switch vehicle. Cornelious then used the switch vehicle to further facilitate their flight from the robbery and avoid detection and apprehension by law enforcement. Scott, who had traveled from Houston, met Thompson and the other coconspirators at a different location and took possession of the stolen jewelry for the purpose of safely transporting it to Houston, Texas.
The Irving Police Department, Houston Police Department, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys Keith Robinson and John de la Garza were in charge of the prosecution.
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Houston Man Pleads Guilty to Wire Fraud Scheme Using Children’s Social Security NumbersRead the Press Release
HOUSTON – A 35-year-old Houston resident has pleaded guilty to two counts of wire fraud and one count of aggravated identity theft, announced U.S. Attorney Ryan K. Patrick.
From on or about July 27, 2016, through approximately May 19, 2017, Amir Ali Bey enacted a scheme to obtain money, cars and other luxury items by using the identities of other individuals. Bey created a number of aliases, including the name Daniel Isaiah Murray, to create credit profiles that were under his exclusive ownership and control. Bey then utilized these credit profiles to apply for various lines of credit to obtain cash.
To create these profiles, Bey would intentionally steal the Social Security numbers of children, who typically do not monitor their credit histories in the same manner as adults. Bey would then link the stolen Social Security numbers to his name, or to another alias names under his exclusive ownership and control, by adding them as authorized users on existing credit card accounts in good standing. By doing so, he created a profile and credit history for those names with credit reporting agencies such as Experian.
To further facilitate the scheme, Bey would use fraudulent drivers’ licenses and fake pay stubs, and rent mailboxes at UPS stores using fraudulently-obtained identifications.
Law enforcement conducted a search of Bey’s apartment in May 2017, at which time they found multiple fraudulent identification documents, credit cards, bank statements and other items used the facilitate the wire fraud scheme.
U.S. District Judge Kenneth Hoyt accepted the plea today and set sentencing for March 19, 2018. At the time, up to 20 years for the wire fraud and a mandatory 24 months for the aggravated identity theft which must be served consecutively to any other prison term imposed. Both convictions also carry a possible $250,000 maximum fine. Bey was permitted to remain on bond pending that hearing.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Julie N. Searle is prosecuting the case.
Honduran National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON – A Honduran national pleaded guilty today in federal court in Boston to an immigration charge.
William Maradiaga-Oseguera, 32, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 4, 2018.
On Aug. 29, 2017, law enforcement officers in Boston encountered Maradiaga-Oseguera and determined him to be illegally present in the United States. Maradiaga-Oseguera was previously deported on March 27, 2009; March 17, 2012; July 9, 2012; and Nov. 13, 2013.
Maradiaga-Oseguera faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Honduran Man Sentenced for Illegal Re-Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Leonel Antonio Rodriguez Ayala, age 29, and a citizen of Honduras, was sentenced today to time served (78 days in jail) for illegally re-entering 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, Rodriguez Ayala admitted that he is a citizen of Honduras, and that he illegally returned to the United States after he was removed to Honduras on October 3, 2013.
On October 24, 2017, an ICE Officer arrested Rodriguez Ayala in Saratoga Springs, New York.
Following his sentencing, Rodriguez Ayala 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 United States Attorney Edward P. Grogan.
Guatemalan National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – Gilberto Ramirez-Ramirez, 27, pleaded guilty today in federal court in Boston to one count of unlawful reentry of a deported alien. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for April 5, 2018.
In April 2017, law enforcement in Lynn encountered Ramirez-Ramirez and determined him to be illegally present in the United States. Ramirez-Ramirez had previously been deported on March 3, 2016.
The charge provides for a sentence of no greater than 10 years in prison, three years of supervised released, and a fine of up to $250,000. Ramirez-Ramirez will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
Georgia Man Sentenced for Defrauding Staples Inc.Read the Press Release
BOSTON – A Georgia man was sentenced today in federal court in Boston in connection with a scheme to defraud Framingham-based Staples Inc. of more than $1.4 million.
Layne Michael Gosnell, 46, was sentenced by U.S. District Court Judge Leo T. Sorokin to 21 months in prison, three years of supervised release, and ordered to pay $443,913 in restitution and $443,913 in forfeiture. In October 2017, Gosnell pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud. Gosnell pleaded guilty on Sept. 26, 2017, but the Court conducted a second plea hearing due to the fact that immediately after the first plea hearing it was determined that Gosnell tested positive for alcohol above the legal limit in Massachusetts.
Gosnell and co-conspirator John Douglas, among others, engaged in a complex scheme to defraud Staples of more than $1.4 million worth of customer loyalty rewards and product rebates by creating more than 1,100 Staples rewards accounts, often using fictitious names, addresses and contact information. Douglas created a computer script to query a Staples website and seek unclaimed customer loyalty rewards for purchases that neither he nor Gosnell made. The computer script made thousands of queries a day, amassing more than $889,000 worth of rewards in small increments, often less than one dollar at a time. Gosnell and Douglas then used the rewards like cash to buy merchandise at Staples retail locations throughout the southern United States and along the eastern seaboard, as far north as Massachusetts. Gosnell sold his share of the fraudulently obtained Staples merchandise on eBay.
Gosnell and Douglas used a similar method to claim more than $527,000 in cash rebates from Staples for products that they did not purchase.
Staples discovered the fraud and referred the matter to federal authorities.
Douglas was sentenced on Sept. 6, 2017, to 30 months in prison and ordered to pay $691,327 in restitution and $553,061 in forfeiture.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney David J. D’Addio of Lelling’s Cybercrime Unit prosecuted the case.
Former Saint John, Indiana Resident ChargedRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Christopher Raciti, age 48, formerly of Saint John, Indiana, was charged by Information with possession of child pornography.
According to documents filed in the case, between November 7, 2015 and continuing through March 9, 2016, Raciti knowingly possessed more than 600 visual depictions of minors engaged in sexually explicit conduct on his computer. A petition to enter a plea of guilty was filed in conjunction with the Information.
The United States Attorney’s office emphasizes that an Information is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This information results from an investigation conducted by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) with the case being handled by Assistant United States Attorney Toi Denise Houston.
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Former Plattsburgh Resident Sentenced to 79 Months for Online FraudRead the Press Release
ALBANY, NEW YORK – Jared R. Hudson, age 39, formerly of Plattsburgh, New York, was sentenced today to 79 months in prison and 3 years of post-imprisonment supervised release for fraud and identity theft.
The announcement was made by United States Attorney Grant C. Jaquith; Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Plattsburgh Police Chief Kenneth R. Parkinson.
Hudson, who has also resided in Florida and Texas, pled guilty on August 2, 2017. He admitted that he and Thomas J. Howe, age 38, of Plattsburgh, devised a scheme to defraud banks, merchants and individual consumers by purchasing information including credit card numbers, bank account numbers, expiration dates, security codes, answers to security questions, and other personal identification information, and to using that information to electronically purchase goods, and to fraudulently transfer and attempt to transfer funds electronically, between October 2009 until at least December 13, 2014.
Initially, Hudson used stolen credit card numbers to order merchandise online and had the merchandise shipped to him. He then used other people’s personal identification information to sign up for credit cards. He then opened investment accounts in his name, which were funded with money taken from other people’s bank accounts using stolen account numbers, routing numbers, identification, and bank security information. Hudson admitted that his victims suffered at least $510,544.49 in actual and intended losses.
Hudson has been detained on federal charges since June 24, 2016. Senior United States District Judge Lawrence E. Kahn ordered the 79-month sentence to be served consecutively to the 18-year prison sentence Hudson is serving in Texas for possession/promotion of child pornography.
Federal charges remain pending against Howe, who is presumed innocent unless and until proven guilty.
This case was investigated by the FBI and the Plattsburgh Police Department, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Former Missionary Sentenced for Sexually Exploiting Children in HaitiRead the Press Release
Daniel John Pye, 36, an Ashdown, Arkansas, resident was sentenced to 40 years of imprisonment, to be followed by 25 years of supervised release, for traveling in foreign commerce with the purpose of engaging in illicit sexual conduct with a minor, also known as child sex tourism.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Pye, originally of Bradenton, Florida, was convicted in November 2017, after a week-long trial before U.S. District Judge Ursula Ungaro, of three counts of traveling in foreign commerce with the purpose of engaging in illicit sexual conduct with a minor, in violation of Title 18, United States Code, Section 2423(b).
According to court records and the evidence presented at trial, Pye was a missionary who operated an orphanage in Jacmel, Haiti, from the years of 2006 through 2012. The orphanage provided shelter, clothing, food, and school tuition to children without families and to children whose families could not afford to feed or otherwise support their children. Pye obtained financial support for the orphanage through his connections with numerous religious organizations and other nonprofit groups in the United States. During his time operating the orphanage, Pye would regularly sexually abuse the female residents of his orphanage, including girls as young as six years old. As described by the Haitian victims during trial, Pye routinely sexually abuse his victims both at the orphanage and while at the beach.
Since leaving Haiti, Pye resided in the Liberty Hill, Texas, Texarkana, Texas, and Ashdown, Arkansas, areas. Prior to arriving in Haiti, Pye resided in the Bradenton and Fort Lauderdale areas of Florida.
Mr. Greenberg commended the investigative efforts of ICE-HSI. The case was prosecuted by Assistant U.S. Attorneys Ben Widlanski and Ilham Hosseini.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former CBP Officer Sentenced to Prison for Alien SmugglingRead the Press Release
McALLEN, Texas – A 55-year-old man who formerly resided in Weslaco has been ordered to prison following his conviction of one count of conspiracy to transport aliens within the United States, announced U.S. Attorney Ryan K. Patrick. Former Customs and Border Protection (CBP) officer Sabas Salinas pleaded guilty Nov. 1, 2017.
Today, U.S. District Judge Micaela Alvarez handed Salinas a 24-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Alvarez noted that Salinas was entrusted with authority from the people - the citizens of the community. She noted that one of his specific job responsibilities was to ensure that individuals who were not authorized to come into the U.S. were prevented from doing so, and he did the exact opposite. Additionally, in spite of his good background, and regardless of whether he was getting paid for his actions, she found his participation in the offense to be corrupt.
Salinas had admitted that while on duty at the Progreso Port of Entry, he was going to allow Juana Sifuentes-Villagomez, 48, a lawful permanent resident of Donna, to transport an illegal alien into the U.S.
On Aug. 14, 2017, Sifuentes-Villagomez arrived at the Progreso Port of Entry with Asiano Uresti-Segundo, 46, of Reynosa, Tamaulipas, Mexico. Salinas was attempting to conduct the initial inspection and planned to allow them entry in to the U.S., knowing Uresti-Segundo was an illegal alien and not permitted to do so. However, other CBP officers discovered Uresti-Segundo was a citizen of Mexico who had been previously deported and did not have permission to re-enter the country. Both Sifuentes-Villagomez and Uresti-Segundo were arrested that day.
The investigation led to the discovery that Uresti-Segundo was going to pay Sifuentes-Villagomez for smuggling him illegally into the U.S. through a port of entry and transporting him to Donna.
Salinas was later arrested for his part in the conspiracy on Sept. 14, 2017.
Salinas has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Sifuentes-Villagomez pleaded guilty to one count of conspiracy to transport aliens within the United States and is scheduled to be sentenced on Feb. 28, 2018. Uresti-Segundo entered a guilty plea to unlawfully attempting to enter the U.S. after being previously removed and is scheduled to be sentenced on Jan. 11, 2018. They also remain in custody pending those hearings.
The Department of Homeland Security – Office of Inspector General conducted the investigation with the assistance of Immigration and Customs Enforcement’s Homeland Security Investigations and CBP – Office of Field Operations. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Five Aliens Indicted on Illegal Reentry Charges, False Representation of a Social Security Account Number, Aggravated Identity Theft, Felon in Possession of a Firearm, and Illegal and Unlawful Alien in Possession of a FirearmRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging RAMIRO GOMEZ-SAN AGUSTIN, age 33, of Mexico, WALTER RAMIREZ-RODRIGUEZ, age 39, of Mexico, and RAMIRO MARTINEZ-ZACARIAS, age 38, of Mexico, with Illegal Reentry of a Deported Alien.
Additionally, a federal grand jury in Raleigh has returned an indictment charging ANGEL CASTRO, age 50, of Honduras, with False Representation of a Social Security Account Number, Aggravated Identity Theft, Felon in Possession of a Firearm, and Illegal Reentry of an Aggravated Felon.
Furthermore, a federal grand jury in Raleigh has returned an indictment charging MOHAMED SAAD TARDA, age 30, of Morocco, with Illegal and Unlawful Alien in Possession of a Firearm.
If convicted of Illegal Reentry of a Deported Alien, RAMIRO GOMEZ-SAN AGUSTIN, previously deported two times and found in Wake County, WALTER RAMIREZ-RODRIGUEZ, previously deported four times and found in Pitt County, and RAMIRO MARTINEZ-ZACARIAS, previously deported three times and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of False Representation of a Social Security Account Number, Aggravated Identity Theft, Felon in Possession of a Firearm, and Illegal Reentry of an Aggravated Felon, CASTRO, found in Wayne County, would face maximum penalties of life imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of Illegal and Unlawful Alien in Possession of a Firearm, TARDA, found in Cumberland County, would face maximum penalties of ten years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the cases.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
North Carolina Resident Indicted on Uttering a Forged Security. Rhonda F. Greer, age 54, of Shelby, North Carolina was charged in a one-count indictment. Rhonda F. Greer was charged with Uttering a Forged Security, a violation of Title 18, United States Code, Section 513(a). The maximum penalty Greer could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United States Postal Inspection Service and is assigned to Assistant United States Attorney William J. Watkins, Jr. of the Greenville office for prosecution.
Woman Indicted on Immigration Document Fraud Charge. Martha A. Zambrano Soriano, age 37, was charged in a one-count indictment with possession of a forged/counterfeit immigration document, a violation of Title 18, United States Code, Section 1546(a). The maximum penalty Soriano could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by ICE-Homeland Security Investigations and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney R. Trent Shores announced today the results of the January 2018 Federal Grand Jury.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Darren Lee Bryant. Felon in Possession of a Firearm and Ammunition. Bryant, 25, of Broken Arrow, is charged with possessing a firearm and ammunition after prior felony convictions. If convicted, he faces the maximum penalty of 10 years in prison and a $250,000 fine. The Federal Bureau of Investigation and the Tulsa Police Department are the investigating agencies.
Christopher Lee Caskey. Bank Robbery. Caskey, 32, of Inola, is charged with robbery of Arvest Bank by threatening to detonate a bomb and brandishing a pellet gun closely resembling a firearm. If convicted, he faces the maximum penalty of 25 years in prison and a $250,000 fine. The Federal Bureau of Investigation and the Tulsa Police Department are the investigating agencies.
Randy Alan Hamett. Kidnapping; Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence; Possessing and Receiving Stolen Firearm and Ammunition; and Possession of Firearms and Ammunition While Subject to a Domestic Violence Protective Order. Hamett, 62, of Choctaw, is charged with kidnapping and transporting a person from Oklahoma to Arkansas, displaying a pistol during and in relation to a violent crime, and knowingly possessing and receiving a stolen revolver and ammunition while subject to a domestic violence protective order. If convicted, he faces the maximum penalty of life in prison and a $250,000 fine for the kidnapping charge; a statutory mandatory minimum penalty of seven years and up to life in prison for the using, carrying, and brandishing a firearm during and in relation to a crime of violence charge; and a maximum penalty of 10 years in prison and a $250,000 fine for the possessing and receiving a stolen firearm and ammunition and for the possessing firearms and ammunition while subject to a domestic violence protective order charges. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Broken Arrow Police Department, the Siloam Springs Police Department, and the Rogers State University Police are the investigating agencies.
Noel A. McFadden. Sexual Exploitation of a Child; Enticement; and Possession of Child Pornography. McFadden, 71, of Broken Arrow, is charged with exploiting and enticing a minor to engage in sexually explicit conduct for the purpose of producing graphic image files and video files. If convicted, he faces the maximum penalty of 30 years in prison and a $250,000 fine for the sexual exploitation of a child charge; a maximum penalty of life in prison and a $250,000 fine for the enticement charge; and the maximum penalty of 20 years in prison and a $250,000 fine for the possession of child pornography charge. The Federal Bureau of Investigation is the investigating agency.
Daniel Miranda-Barrera. Reentry of Removed Alien. Miranda-Barrera, 34, of Sand Springs, is charged with having returned to the United States unlawfully after being deported in March 2011 from Del Rio, Texas. If convicted, he faces the maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement is the investigating agency.
Rory Eugene Monk. Felon in Possession of Firearms and Ammunition. Monk, 33, of Broken Arrow, is charged with possessing a firearm and ammunition after prior felony convictions. If convicted, he faces the maximum penalty of 10 years in prison and a $250,000 fine. This case arises out of Operation Blue Thunder, a joint federal and local task force concentrating on reducing violent crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigating agencies.
Antonio Morales-Zuniga. Reentry of Removed Alien. Morales-Zuniga, 35, unknown residency, is charged with having returned to the United States unlawfully after being deported in November 2015 from Laredo, Texas. If convicted, he faces the maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement is the investigating agency.
Randall Gene Mukes. Felon in Possession of Firearms and Ammunition. Mukes, 31, of Tulsa, is charged with possessing a firearm and ammunition after prior felony convictions. If convicted, he faces the maximum penalty of 10 years in prison and a $250,000 fine. In addition, he would forfeit the firearm and ammunition involved in the offense. This case arises out of Operation Blue Thunder, a joint federal and local task force concentrating on reducing violent crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigating agencies.
Shawn Dale Sexton. Felon in Possession of Firearm and Ammunition; Possession of Unregistered Firearm; Possession With Intent to Distribute Methamphetamine; Using, Carrying, and Discharging a Firearm During and in Relation to a Drug Trafficking Crime.
Sexton, 26, of Bristow, is charged with possessing ammunition, possessing and discharging an unregistered semi-automatic rifle after prior felony convictions, and possession with intent to distribute 50 grams or more of methamphetamine. If convicted, he faces the maximum penalty of life in prison and a $250,000 fine for the felon in possession of firearm and ammunition charge, a maximum penalty of 10 years in prison and a $10,000 fine for the possession of an unregistered firearm charge, a maximum penalty of 40 years in prison and a $5,000,000 fine for the possession with intent to distribute methamphetamine charge, and a maximum penalty of life in prison and a $250,000 fine for the using, carrying, and discharging a firearm during and in relation to a drug trafficking crime charge. In addition, he would forfeit the firearm and ammunition involved in the offense. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Trevor James Thompson. Attempted Sexual Exploitation of a Child. Thompson, 31, of Locust Grove, is charged with knowingly attempting to entice minors to engage in sexually explicit conduct for the purpose of producing visual depiction of such conduct. If convicted, he faces the maximum penalty of 30 years in prison and a $250,000 fine for each count. Homeland Security Investigations is the investigating agency.
Eagle Butte Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on January 2, 2018, by U.S. District Judge Roberto A. Lange.
Colton White Feather, age 23, was sentenced to 41 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Feather was indicted by a federal grand jury on May 16, 2017. He pled guilty on October 17, 2017.
The conviction stemmed from an incident on July 28 and 29, 2016, when White Feather went to an individual’s home with a 3/4" wooden mop handle and ended up in a dispute with people who were present and swung the mop handle, hitting the victim in the head which resulted in the victim breaking her jaw.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
White Feather was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on January 5, 2018, by U.S. District Judge Roberto A. Lange.
Celby Noisy Hawk, Jr., age 42, was sentenced to 42 months in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Noisy Hawk was indicted by a federal grand jury on July 18, 2017. He pled guilty on September 26, 2017.
The conviction stemmed from an incident on June 9, 2017, when Noisy Hawk asked an individual for money to buy alcohol and the individual denied his request, telling Noisy Hawk that he was already very drunk. The denial resulted in an argument between Noisy Hawk and the individual, who then called the police department. Prior to law enforcement arriving, Noisy Hawk punched the victim several times in the head and face, and when the victim attempted to walk away, Noisy Hawk hit the victim again causing her to fall and breaking her ankle. The punches to the victim’s face caused a fracture in the right orbital socket, a closed head injury with a small subdural hematoma, and a small cortical convexity subarachnoid hemorrhage.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Noisy Hawk was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Indicted on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Nevin Thomas Joaquin, age 29, was indicted on December 12, 2017. He appeared before U.S. Magistrate Court Judge Daneta Wollmann on December 14, 2017, and pled not guilty to the Indictment.
The maximum penalties upon conviction are life in prison, a $10,000,000 fine, a lifetime of supervised release, forfeiture of firearms, ammunition, and U.S. currency, and a special assessment of $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between September 1, 2013, and December 12, 2017, Joaquin knowingly and intentionally conspired with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine. The Indictment further alleges that on April 1, 2016, and February 18, 2016, Joaquin unlawfully possessed firearms.
The charges are merely accusations and Joaquin is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Joaquin was ordered to be detained. A trial date has been set for February 20, 2018.
Dominican National Sentenced for Passport FraudRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Worcester for passport fraud.
Adolfo Santana Gonzalez, 31, was sentenced by U.S. District Court Judge Timothy S. Hillman to 366 days in prison. Santana Gonzalez will be subject to deportation upon completion of his sentence. In October 2017, Santana Gonzalez pleaded guilty to one count of misuse of a Social Security number and one count of making a false statement in an application for a United States passport.
In November 2016, Santana Gonzalez, using the identification and Social Security number assigned to another individual, submitted an application for a U.S. passport at a U.S. Post Office in Worcester in that individual’s name.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement today. U.S. Customs and Border Protection provided assistance with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Sentenced for Passport FraudRead the Press Release
BOSTON – A Dominican national previously charged with passport fraud, pleaded guilty and was sentenced yesterday in federal court in Boston.
Luis Hidalgo-Jimenez, 45, a Dominican national formerly residing in Lawrence, pleaded guilty to one count of passport fraud before U.S. Senior District Court Judge Rya W. Zobel, who sentenced Hidalgo-Jimenez to a period of time served. Hidalgo-Jimenez was arrested on Nov. 9, 2017, and has been in federal custody since that time.
On Feb. 20, 2009, Hidalgo-Jimenez submitted an application for a United States passport at a post office in Lawrence using the name and identifying information of a United States citizen. In support of the passport application, Hidalgo-Jimenez submitted a Connecticut driver’s license with his photograph along with the name and identifying information of another person. He also submitted a copy of the other person’s birth certificate, which was issued in Puerto Rico. Federal officials noticed evidence of fraud when reviewing the passport application and supporting documents. When Hidalgo-Jimenez was interviewed by federal law enforcement, he admitted to applying for the passport using the name and identifying information of a United States citizen.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Dental Management Company Benevis and its Affiliated Kool Smiles Dental Clinics to Pay $23.9 Million to Settle False Claims Act Allegations Relating to Medically Unnecessary Pediatric Dental ServicesRead the Press Release
WASHINGTON – The Justice Department announced today that it has settled False Claims Act allegations against dental management company Benevis LLC (formerly known as NCDR LLC) and more than 130 of its affiliated Kool Smiles dental clinics for which Benevis provides business management and administrative services. Under the agreement, Benevis and the Kool Smiles clinics will pay the United States and participating states a total of $23.9 million, plus interest, to resolve allegations that they knowingly submitted false claims for payment to state Medicaid programs for medically unnecessary dental services performed on children insured by Medicaid.
“Billing Medicaid programs for dental procedures that are not necessary contributes to the soaring costs of healthcare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When healthcare providers put vulnerable patients at risk by performing medically unnecessary procedures to achieve financial goals, we will take action.”
The United States alleged that between January 2009 and December 2011, Benevis and Kool Smiles clinics located throughout 17 states knowingly submitted false claims to state Medicaid programs for medically unnecessary pulpotomies (baby root canals), tooth extractions, and stainless steel crowns, in addition to seeking payment for pulpotomies that were never performed. The United States alleges that Kool Smiles clinics routinely pressured and incentivized dentists to meet production goals through a system that disciplined “unproductive” dentists and awarded “productive” dentists with substantial cash bonuses based on the revenue generated by the procedures they performed. According to the government’s allegations, Kool Smiles clinics ignored complaints from their own dentists regarding overutilization. In addition, the United States further alleged that Kool Smiles clinics located in Texas knowingly submitted false claims to the Texas Medicaid Program for First Dental Home (FDH), a program intended to provide a comprehensive package of dental services aimed at improving the oral health of children under three years of age. These clinics are alleged to have submitted false claims for FDH services that were not fully provided.
Of the $23.9 million to be paid by Benevis and its affiliated Kool Smiles clinics, the federal government will receive a total of $14,244,073.49, plus interest, and a total of $9,655,926.51, plus interest, will be returned to individual states, which jointly funded improper claims submitted to state Medicaid programs.
“The allegations in these cases are particularly egregious because they involved medically unnecessary dental services performed on children,” said John H. Durham, U.S. Attorney for the District of Connecticut. “Exploiting needy children for financial gain is inexcusable. The U.S. Attorney’s Office in Connecticut is committed to aggressively pursuing health care providers that submit fraudulent claims to government health care programs.”
The government’s investigation was initiated by five lawsuits filed under the whistleblower provision of the False Claims Act, which permits private citizens to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. Four of the cases are currently pending in the District of Connecticut and one is pending in the Western District of Texas. As part of today’s resolution, three of the whistleblowers—former Kool Smiles employees Adam Abendano, Poonam Rai, and Robin Fitzgerald—will receive payments totaling more than $2.4 million from the federal share of the settlement.
“When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the best care possible to the patient, especially when their patients are economically disadvantaged children,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “The United States Attorney’s Office for the Southern District of Texas will aggressively prosecute healthcare providers who fail to provide care as required when it adversely affects the taxpayers.”
“The conduct of Kool Smiles reached across state lines to impact many patients, many of them vulnerable children,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to thank our law enforcement partners for their tireless effort and dedication in bringing about this nationwide resolution.”
“Today’s settlement sends a very clear signal: Fraud in the federal healthcare system will not be tolerated,” said U.S. Attorney John F. Bash for the Western District of Texas. “Especially when that fraud involves performing unnecessary procedures on kids—here, unnecessary baby root canals and tooth extractions, among other procedures—we will not hesitate to use every tool at our disposal to punish those who break the law.”
“It is intolerable when health care companies seek to boost profits by defrauding Medicaid and exploiting children," said Special Agent in Charge Phillip M. Coyne, HHS-OIG. "Systematically performing and billing for medically unnecessary dental procedures undermines the well-being of these young patients, corrupts the impartiality of medical decision-making, and diverts money from taxpayer-funded health care programs designed to pay for legitimate medical needs.”
The settlement with Benevis and its affiliated Kool Smiles clinics was the result of a collaborative effort among federal and state agencies. The Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the District of Connecticut, Southern District of Texas, Eastern District of Virginia, and Western District of Texas handled the cases, with substantial assistance from the National Association of Medicaid Fraud Control Units (NAMFCU). The Civil Division and NAMFCU coordinated the nationwide investigation, which was conducted by the Office of Inspector General for the Department of Health and Human Services, the Department of Defense Criminal Investigative Service, and NAMFCU.
The cases are captioned United States, et al., ex rel. Abendano v. NCDR, LLC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Greenwald v. Kool Smiles Dentistry PC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Rai, et al. v. Kool Smiles Dentistry PC, et al., 3:17-cv-834 (JBA) (D. Conn.); United States, et al., ex rel. Bowne v. KS-VAP, PC, et al., 3:16-cv-369 (JBA) (D. Conn.); and United States, et al., ex rel. Alves, et al. v. NCDR, LLC, et al., SA-13-CV-0760H (W.D. Tex.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
In the District of Connecticut, the investigation was handled by Assistant U.S. Attorney Richard M. Molot.
Dental Management Company Benevis and its Affiliated Kool Smiles Dental Clinics to Pay $23.9 Million to Settle False Claims Act Allegations Relating to Medically Unnecessary Pediatric Dental ServicesRead the Press Release
WASHINGTON – The Justice Department announced today that it has settled False Claims Act allegations against dental management company Benevis LLC (formerly known as NCDR LLC) and more than 130 of its affiliated Kool Smiles dental clinics for which Benevis provides business management and administrative services. Under the agreement, Benevis and the Kool Smiles clinics will pay the United States and participating states a total of $23.9 million, plus interest, to resolve allegations that they knowingly submitted false claims for payment to state Medicaid programs for medically unnecessary dental services performed on children insured by Medicaid.
“Billing Medicaid programs for dental procedures that are not necessary contributes to the soaring costs of healthcare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When healthcare providers put vulnerable patients at risk by performing medically unnecessary procedures to achieve financial goals, we will take action.”
The United States alleged that between January 2009 and December 2011, Benevis and Kool Smiles clinics located throughout 17 states knowingly submitted false claims to state Medicaid programs for medically unnecessary pulpotomies (baby root canals), tooth extractions, and stainless steel crowns, in addition to seeking payment for pulpotomies that were never performed. The United States alleges that Kool Smiles clinics routinely pressured and incentivized dentists to meet production goals through a system that disciplined “unproductive” dentists and awarded “productive” dentists with substantial cash bonuses based on the revenue generated by the procedures they performed. According to the government’s allegations, Kool Smiles clinics ignored complaints from their own dentists regarding overutilization. In addition, the United States further alleged that Kool Smiles clinics located in Texas knowingly submitted false claims to the Texas Medicaid Program for First Dental Home (FDH), a program intended to provide a comprehensive package of dental services aimed at improving the oral health of children under three years of age. These clinics are alleged to have submitted false claims for FDH services that were not fully provided.
Of the $23.9 million to be paid by Benevis and its affiliated Kool Smiles clinics, the federal government will receive a total of $14,244,073.49, plus interest, and a total of $9,655,926.51, plus interest, will be returned to individual states, which jointly funded improper claims submitted to state Medicaid programs.
"The allegations in these cases are particularly egregious because they involved medically unnecessary dental services performed on children,” said U.S. Attorney John H. Durham for the District of Connecticut. “Exploiting needy children for financial gain is inexcusable. The U.S. Attorney’s Office in Connecticut is committed to aggressively pursuing health care providers that submit fraudulent claims to government health care programs.”
The government’s investigation was initiated by five lawsuits filed under the whistleblower provision of the False Claims Act, which permits private citizens to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. These cases are currently pending in the District of Connecticut and the Western District of Texas. As part of today’s resolution, three of the whistleblowers—former Kool Smiles employees Adam Abendano, Poonam Rai, and Robin Fitzgerald—will receive payments totaling more than $2.4 million from the federal share of the settlement.
“When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the best care possible to the patient, especially when their patients are economically disadvantaged children,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “The United States Attorney’s Office for the Southern District of Texas will aggressively prosecute healthcare providers who fail to provide care as required when it adversely affects the taxpayers.”
“The conduct of Kool Smiles reached across state lines to impact many patients, many of them vulnerable children,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to thank our law enforcement partners for their tireless effort and dedication in bringing about this nationwide resolution.”
“Today’s settlement sends a very clear signal: Fraud in the federal healthcare system will not be tolerated,” said U.S. Attorney John F. Bash for the Western District of Texas. “Especially when that fraud involves performing unnecessary procedures on kids—here, unnecessary baby root canals and tooth extractions, among other procedures—we will not hesitate to use every tool at our disposal to punish those who break the law.”
“It is intolerable when health care companies seek to boost profits by defrauding Medicaid and exploiting children," said Special Agent in Charge Phillip M. Coyne, HHS-OIG. "Systematically performing and billing for medically unnecessary dental procedures undermines the well-being of these young patients, corrupts the impartiality of medical decision-making, and diverts money from taxpayer-funded health care programs designed to pay for legitimate medical needs.”
The settlement with Benevis and its affiliated Kool Smiles clinics was the result of a collaborative effort among federal and state agencies. The Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the District of Connecticut, Southern District of Texas, Eastern District of Virginia, and Western District of Texas handled the cases, with substantial assistance from the National Association of Medicaid Fraud Control Units (NAMFCU). The Civil Division and NAMFCU coordinated the nationwide investigation, which was conducted by the Office of Inspector General for the Department of Health and Human Services, the Department of Defense Criminal Investigative Service, and NAMFCU.
The cases are captioned United States, et al., ex rel. Abendano v. NCDR, LLC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Greenwald v. Kool Smiles Dentistry PC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Rai, et al. v. Kool Smiles Dentistry PC, et al., 3:17-cv-834 (JBA) (D. Conn.); United States, et al., ex rel. Bowne v. KS-VAP, PC, et al., 3:16-cv-369 (JBA) (D. Conn.); and United States, et al., ex rel. Alves, et al. v. NCDR, LLC, et al., SA-13-CV-0760H (W.D. Tex.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Dental Management Company Benevis and Its Affiliated Kool Smiles Dental Clinics to Pay $23.9 Million to Settle False Claims Act Allegations Relating to Medically Unnecessary Pediatric Dental ServicesRead the Press Release
The Justice Department announced today that it has settled False Claims Act allegations against dental management company Benevis LLC (formerly known as NCDR LLC) and more than 130 of its affiliated Kool Smiles dental clinics for which Benevis provides business management and administrative services. Under the agreement, Benevis and the Kool Smiles clinics will pay the United States and participating states a total of $23.9 million, plus interest, to resolve allegations that they knowingly submitted false claims for payment to state Medicaid programs for medically unnecessary dental services performed on children insured by Medicaid.
“Billing Medicaid programs for dental procedures that are not necessary contributes to the soaring costs of healthcare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When healthcare providers put vulnerable patients at risk by performing medically unnecessary procedures to achieve financial goals, we will take action.”
The United States alleged that between January 2009 and December 2011, Benevis and Kool Smiles clinics located throughout 17 states knowingly submitted false claims to state Medicaid programs for medically unnecessary pulpotomies (baby root canals), tooth extractions, and stainless steel crowns, in addition to seeking payment for pulpotomies that were never performed. The United States alleges that Kool Smiles clinics routinely pressured and incentivized dentists to meet production goals through a system that disciplined “unproductive” dentists and awarded “productive” dentists with substantial cash bonuses based on the revenue generated by the procedures they performed. According to the government’s allegations, Kool Smiles clinics ignored complaints from their own dentists regarding overutilization. In addition, the United States further alleged that Kool Smiles clinics located in Texas knowingly submitted false claims to the Texas Medicaid Program for First Dental Home (FDH), a program intended to provide a comprehensive package of dental services aimed at improving the oral health of children under three years of age. These clinics are alleged to have submitted false claims for FDH services that were not fully provided.
Of the $23.9 million to be paid by Benevis and its affiliated Kool Smiles clinics, the federal government will receive a total of $14,244,073.49, plus interest, and a total of $9,655,926.51, plus interest, will be returned to individual states, which jointly funded improper claims submitted to state Medicaid programs.
“The allegations in these cases are particularly egregious because they involved medically unnecessary dental services performed on children,” said U.S. Attorney John H. Durham for the District of Connecticut. “Exploiting needy children for financial gain is inexcusable. The U.S. Attorney’s Office in Connecticut is committed to aggressively pursuing health care providers that submit fraudulent claims to government health care programs.”
The government’s investigation was initiated by five lawsuits filed under the whistleblower provision of the False Claims Act, which permits private citizens to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. These cases are currently pending in the District of Connecticut and the Western District of Texas. As part of today’s resolution, three of the whistleblowers—former Kool Smiles employees Adam Abendano, Poonam Rai, and Robin Fitzgerald—will receive payments totaling more than $2.4 million from the federal share of the settlement.
“When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the best care possible to the patient, especially when their patients are economically disadvantaged children,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “The United States Attorney’s Office for the Southern District of Texas will aggressively prosecute healthcare providers who fail to provide care as required when it adversely affects the taxpayers.”
“The conduct of Kool Smiles reached across state lines to impact many patients, many of them vulnerable children,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to thank our law enforcement partners for their tireless effort and dedication in bringing about this nationwide resolution.”
“Today’s settlement sends a very clear signal: Fraud in the federal healthcare system will not be tolerated,” said U.S. Attorney John F. Bash for the Western District of Texas. “Especially when that fraud involves performing unnecessary procedures on kids—here, unnecessary baby root canals and tooth extractions, among other procedures—we will not hesitate to use every tool at our disposal to punish those who break the law.”
“It is intolerable when health care companies seek to boost profits by defrauding Medicaid and exploiting children," said Special Agent in Charge Phillip M. Coyne, HHS-OIG. "Systematically performing and billing for medically unnecessary dental procedures undermines the well-being of these young patients, corrupts the impartiality of medical decision-making, and diverts money from taxpayer-funded health care programs designed to pay for legitimate medical needs.”
The settlement with Benevis and its affiliated Kool Smiles clinics was the result of a collaborative effort among federal and state agencies. The Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the District of Connecticut, Southern District of Texas, Eastern District of Virginia, and Western District of Texas handled the cases, with substantial assistance from the National Association of Medicaid Fraud Control Units (NAMFCU). The Civil Division and NAMFCU coordinated the nationwide investigation, which was conducted by the Office of Inspector General for the Department of Health and Human Services, the Department of Defense Criminal Investigative Service, and NAMFCU.
The cases are captioned United States, et al., ex rel. Abendano v. NCDR, LLC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Greenwald v. Kool Smiles Dentistry PC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Rai, et al. v. Kool Smiles Dentistry PC, et al., 3:17-cv-834 (JBA) (D. Conn.); United States, et al., ex rel. Bowne v. KS-VAP, PC, et al., 3:16-cv-369 (JBA) (D. Conn.); and United States, et al., ex rel. Alves, et al. v. NCDR, LLC, et al., SA-13-CV-0760H (W.D. Tex.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Debt Collection Company Employee Sentenced to Four Years in Prison for Aggravated Identity Theft and Bank FraudRead the Press Release
CHARLOTTE, N.C. – A debt collection company employee was sentenced yesterday to four years in prison for aggravated identity theft and bank fraud, involving a scheme to steal the personally identifiable information of local residents to obtain over $200,000 worth of new credit cards and a car loan, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Max O. Cogburn, Jr. ordered Justin Frank Pettway, 30, of Charlotte, to serve five years under court supervision and to pay $226,517 in restitution to four major banks defrauded by Pettway’s identity fraud scheme.
David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS), and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Murray in making today’s announcement.
According to the indictment, information contained in court filings, and court proceedings, from late 2015 to 2016, Pettway was employed by a South Carolina-based debt collection company. Through his employment, Pettway was able to use a national company’s Internet service that provides debt collection companies with computer and smartphone access to numerous public and proprietary databases containing individuals’ extensive personally identifiable information (PII). That information, which includes names, current and former residential addresses, social security numbers, dates of birth, telephone numbers and other historical and current information, is typically required to apply for new credit cards and loans.
Pettway unlawfully used the Internet service to input the residential addresses of local residents and steal their most current identity information. Pettway then used the stolen identity information to file fraudulent applications for loans and credit cards over the Internet and by telephone in the names of the identity theft victims.
Court documents show that once the defrauded banks notified Pettway that approved credit cards had been placed in the mail, Pettway drove to the identity theft victims’ residences, stole the issued credit cards from the victims’ mailboxes, and then used the credit cards until they were disabled by the banks. Typically, the identity theft victims did not learn of the new unauthorized credit cards issued in their names until they received subsequent credit card billing statements in the mail.
According to court records, Pettway charged $226,517 to the unauthorized credit cards to obtain cash from ATMs and goods and services from merchants. Pettway also purchased a Corvette from an out-of-state car dealer using a $58,000 car loan obtained in the name of an identity theft victim.
Pettway is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Postal Inspection Service in Charlotte and the Charlotte Mecklenburg Police Department, and noted that the case is the result of the Charlotte Financial Crimes Task Force (CFCTF). The task force was formed in early 2016 by the U.S. Postal Inspection Service and currently comprises over 25 local, state and federal law enforcement agencies located in the Western District of North Carolina. The goal of the taskforce is to focus on the identification and development of financial fraud investigations in the Charlotte area.
Assistant U.S. Attorney Thomas O’Malley of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Danville Man Sentenced to 61 Months in Prison for Student Loan FraudRead the Press Release
Danville, VIRGINIA – A Danville man, who obtained the identities of individuals in the Danville and Martinsville regions in order to apply for fraudulent student loans in their names to steal money from lenders, was sentenced yesterday in the United States District Court in Danville for a variety of federal charges, United States Attorney Rick A. Mountcastle announced.
James Willie Waller Jr., 29, was sentenced yesterday in District Court to 61 months in prison and ordered to pay $117,000 in restitution. Waller previously pleaded guilty to one count of student loan fraud, one count of wire fraud and two counts of aggravated identity theft.
According to evidence presented at previous hearings by Assistant United States Attorney Donald R. Wolthuis and Special Assistant United States Attorney Kari Munro, Waller devised a scheme in which he obtained the personally identifying information (PII) of individuals in the Danville and Martinsville regions of Virginia. The defendant used the obtained PII to apply for student loans to online colleges and universities, without the consent of those whose information he obtained.
Waller fraudulently applied for student financially aide and enrolled in online courses using the PII he procured. The U.S. Department of Education then sent grant and loan monies to the online schools to cover tuition and living expenses. The schools, in turn, caused debit cards to be issued in the names of the fictitious students. The debit cards were directed to a variety of mailing addresses throughout Danville and Martinsville, as orchestrated by Waller. Waller then used the cards for his own personal use.
In all, Waller received more than $117,000 in money to which he was not entitled.
The investigation of the case was conducted by Virginia State Police, The Department of Education – Office of the Inspector General and the United States Postal Inspection Service. Assistant United States Attorney Donald R. Wolthuis and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Couple Dealing Methamphetamine in Monroe & Houston Counties Each Receive More Than Twelve Years in Federal PrisonRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Stayce Crystal Dempsey, age 34, of Warner Robins, Georgia, was sentenced to 220 months (18 years and four months) imprisonment for distribution of methamphetamine, and Charles Nicholas Zammit, age 28, of Perry, Georgia, was sentenced to 150 months (12 years and six months) imprisonment for possession with intent to distribute methamphetamine by United States District Court Judge Marc T. Treadwell in Macon, Georgia on January 10, 2018.
In their respective plea agreements, Ms. Dempsey and Mr. Zammit admitted to driving together to several locations in Monroe and Houston counties to sell methamphetamine to various individuals. Between April and May of 2016, the couple was responsible for possessing and distributing more than 330 grams, that is approximately 12 or more ounces, of methamphetamine with a street value of more than $9,000.00.
Prior to entering pleas in this case, Ms. Dempsey and Mr. Zammit went on the run and were apprehended by local law enforcement in Jackson County, North Carolina while driving a rental truck from U-Haul. At the time of their apprehension, both defendants gave false names and were found in possession of a glass smoking pipe with methamphetamine residue on it. They were subsequently taken into custody by the United States Marshal Service.
Both Ms. Dempsey and Mr. Zammit had been convicted of drug crimes in the state of Georgia prior to being indicted in the present federal case. After serving their time in federal prison, where there is no parole, each defendant will also be required to serve an additional term of three years of supervised release under the supervision of a United States probation officer.
“The actions of Ms. Dempsey and Mr. Zammit demonstrate their reckless disregard for the rule of law in exchange for the thrill and greed of selling drugs in our local communities. Their desperation for momentary financial gain and inability to accept the consequences of their actions led them to foolishly go on the run from the United States government. The actions of state and federal law enforcement working together help rid our local communities of the scourge dealers like these cause by distributing drugs in and around neighborhoods throughout middle Georgia. This couple will now spend more than a decade in prison thanks to those efforts.”
This case was investigated by the United States Drug Enforcement Administration and the Georgia Bureau of Investigation with additional assistance from the Monroe County Sheriff’s Office. Assistant United States Attorney C. Shanelle Booker prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Connecticut Man Sentenced to 1 Year in Federal Prison for Conspiracy and BriberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Theodore D. Chuang sentenced Eugene Ostrovsky, age 57, of Stamford, Connecticut to a split sentence of 6 months imprisonment followed by two years of supervised release, the first 6 months of which are to be served on home confinement, for conspiracy to bribe a public official. Judge Chuang also ordered Ostrovsky to pay a $5000 fine.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Director in Charge Andrew Vale of the Federal Bureau of Investigation, Washington Field Office; and Deputy Inspector General for Investigations John Dupuy of the Department of Energy, Office of Inspector of General.
According to his plea agreement, Ostrovsky was the vice president and 20% owner of a metallurgical research company located in Long Island City, New York. Between August 2014 and May 2015, Ostrovsky and his co conspirators entered into what they believed to be a $3,400,000 Department of Energy ("DOE")-funded research contract. During the course of negotiating that contract, Ostrovsky negotiated the specifics of a bribe to be paid to a public official then working for the Department of Energy. In May 2015, Ostrovsky and the co-conspirators finalized a total of $80,000 in bribe money, to be paid in cash to the DOE employee, in installments over the duration of the contract.
Three other defendants in this and a related scheme Grigory Trosman, age 78, of Damascus, Maryland, Anatoly Samgorodsky, age 65, of Sarasota, Florida, and Anatoly Fedorovsky, age 57, of Fair Lawn, New Jersey, have pleaded guilty and have been sentenced. Trosman was sentenced to 18 months in prison, followed by six months of home-confinement and three years of supervised release. Samgorodsky was sentenced to 18 months, 1 day in federal prison followed by one year of supervised release and Fedorovsky was sentenced to 12 months in federal prison followed by one year of supervised release. Samgorodsky was also ordered to pay a $25,000 fine and $70,000 in restitution; Fedorovsky was ordered to pay a $15,000 fine and was ordered to forfeit $7,000, and Trosman was ordered to pay a $75,000 fine and $469,287 in restitution.
Acting United States Attorney Stephen M. Schenning commended the FBI and the DOE Office of Inspector General for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney David I. Salem, who prosecuted the case.
Columbia Man Sentenced for Failing to Register as Sex OffenderRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Kerwin Eugene Brown, age 39, of Columbia, was sentenced to three years in jail for Failure to Register as a Sex Offender, a violation of Title 18, United States Code, § 2250(a). Chief United States District Judge Terry L. Wooten, of Columbia, presided.
Evidence presented at the change of plea hearing established that on April 12, 2005, Brown pled guilty to Assault and Battery of a High and Aggravated Nature in the Richland County Court of General Sessions. During the plea colloquy, the judge required that Brown register as a sex offender. He was then sentenced to eight years in prison.
Brown moved to New York in 2013 and came to the attention of the FBI for unrelated activities. Agents determined that Brown had been living in New York for at least six months and had not registered as a sex offender.
When FBI agents interviewed Brown on November 11, 2016, Brown indicated he moved to New York to pursue a music career. He was living in the Trinidadian community in Queens and Brooklyn and was working construction and carpentry. He acknowledged registering as a sex offender in April 2010 and through 2013, but he stopped when he moved to New York.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office prosecuted the case.
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Citizen of Mexico Charged with Illegally Re-entering U.S. after DeportationRead the Press Release
PITTSBURGH - An illegal alien found in Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on January 9, named Pedro Omar Martinez-Alba, age 30, of Mexico, as the sole defendant.
According to the indictment presented to the court, Pedro Omar Martinez-Alba, an illegal alien, was formally removed from the United States by United States Immigration and Customs Enforcement on January 23, 2014 and November 24, 2015. Pedro Omar Martinez-Alba was found to be illegally present in Westmoreland County, on April 12, 2017.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Citizen of Ghana Charged with Assaulting Federal OfficersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Nana Dwomah Yeboah, 34, a citizen of the Republic of Ghana, was arrested and charged by criminal complaint with assaulting and resisting federal law enforcement officers and possessing a controlled substance with intent to distribute. The charges carry a maximum penalty of eight years in prison and a fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that according to the complaint, on the morning of December 24, 2017, Customs and Border Protection Officers were conducting a routine patrol of the Greyhound bus station on Cumberland Street in Rochester. Officers observed the defendant enter the bus station, place a package on a bench in the lobby area, and exit the station, leaving the package unattended. After several minutes, the officers searched the abandoned package to ensure that it did not pose a threat to the public. Inside, the officers discovered a quantity of marijuana that appeared to be packaged for sale. After several minutes, Yeboah returned to the area and was questioned by the officers, who quickly determined that he was not a U.S. Citizen. As officers attempted to detain and further identify the defendant, he fled the station, leading the officers on a short chase. Yeboah was ultimately apprehended, but proceeded to fight the officers for several minutes, causing one of the officers to suffer facial injuries that required treatment at Rochester General Hospital.
The defendant, who made an initial appearance before U.S. Magistrate Judge Jonathan Feldman, was held in custody pending a detention hearing scheduled for January 16, 2018.
The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations, with assistance from the Rochester Police Department, under the direction of Chief Michael Ciminelli.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Choctaw Woman Sentenced for Assault with a Deadly WeaponRead the Press Release
Jackson, Miss. – Ida Mae Sam, 56, a member of the Mississippi Band of Choctaw Indians, was sentenced Tuesday by U.S. District Judge David C. Bramlette III, to serve 68 months in federal prison, followed by three years of supervised release, for assaulting another Choctaw Indian with a dangerous weapon and causing serious bodily injury, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze. Sam was also ordered to pay a $1,500 fine.
On April 25, 2015, Ida Mae Sam invited the victim and others to her residence located in the Pearl River Community on the Choctaw Indian Reservation. At some point during the day, Ida Mae Sam became involved in an argument with her boyfriend, and then with the boyfriend of the victim. She then went into another room, returned with a knife and stabbed the victim multiple times. The victim suffered large cuts and significant blood loss.
On April 18, 2017, a federal grand jury indicted Sam in a two-count indictment charging her with assault of another person with a dangerous weapon and assault causing serious bodily injury. A jury trial was held in Jackson, Mississippi, before U.S. District Judge David C. Bramlette III from October 30, 2017 to October 31, 2017. On October 31, 2017, the jury found Sam guilty on all counts of the indictment.
This case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It was prosecuted by Assistant United States Attorneys Keesha D. Middleton and Erin Chalk.
Chicago, Illinios Men Sentenced in Heroin ConspiracyRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announces that two Chicago, Illinois, men convicted of Conspiracy to Distribute Heroin were sentenced on January 4, 2018, by U.S. District Judge Karen E. Schreier.
Clifton Curtis Odie, age 42, was sentenced to 240 months in custody and a $100 special assessment to the Federal Crime Victims Fund. Robert Andrew Lockhart, age 48, was sentenced to 107 months in custody and a $100 special assessment to the Federal Crime Victims Fund. Co-conspirators Raleigh Dee Thomas, age 26, and Stephen Nathaniel Harris, age 38, were each sentenced to 60 months in custody by Judge Schreier in October of 2017.
An indictment was issued against the group for Conspiracy to Distribute Heroin by a federal grand jury on February 7, 2017. All four pled guilty to the charge in 2017.
Starting in 2014, Odie and his associates brought over one kilogram of heroin to Sioux Falls from Chicago and distributed the heroin, sometimes trading heroin for firearms.
This case was investigated by the Drug Enforcement Administration and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Cherry Creek Woman Sentenced for Concealing a Person from ArrestRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announced that a Cherry Creek, South Dakota, woman convicted of Concealing a Person from Arrest was sentenced on January 3, 2018, by U.S. District Judge Roberto A. Lange.
September Waloke, age 52, was sentenced to 3 months in prison, followed by 1 year of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Waloke was indicted by a federal grand jury on November 9, 2016, for Concealing a Person from Arrest. She was found guilty on September 14, 2017, following a three-day jury trial.
The evidence produced at trial indicated the following: In the early morning hours of October 20, 2016, Deputy U.S. Marshals went to the Condon Waloke residence in Cherry Creek in an attempt to locate Tyson LeCompte, a/k/a Tyson Garreau, who had been issued a federal arrest warrant for failing to return to the Hughes County jail, following his release on a one-day furlough the day before. When LeCompte was not found in the residence, the deputies advised Condon and Waloke that they could not conceal, harbor, or assist LeCompte in any manner, and that they needed to contact law enforcement if they came into contact with him.
Later that same morning, LeCompte came to the Condon Waloke residence and stayed there throughout the day. Around 5:00 p.m. that evening, Cheyenne River Sioux Tribal Police went to the residence and found LeCompte hiding in one of the bedrooms under a bed. The jury found that Waloke knew that LeCompte was in the home and intentionally harbored and concealed LeCompte to prevent his arrest.
This case was investigated by the U.S. Marshals Service, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Waloke was ordered to self-report to the custody of the U.S. Marshals Service on January 5, 2018, to begin serving her sentence.
Charleston man sentenced to federal prison for escapeRead the Press Release
CHARLESTON, W.Va. – A Charleston man who walked away from a halfway house without permission was sentenced today to six months in federal prison, announced United States Attorney Mike Stuart. Jalin McArn, 23, previously pleaded guilty to escape.
McArn was on supervised release because of a previous conviction for distribution of heroin. He was incarcerated at the Federal Correctional Institution at Milan in Michigan until August 2017, where he was serving a 10-month sentence for violation of his supervised release. He was then transferred to Dismas Charities, a halfway house in St. Albans, to finish his prison term. McArn admitted that he walked away from Dismas in the early morning hours of September 25, 2017. McArn further admitted that he did not have permission or authority to be absent. On September 26, 2017, an arrest warrant was issued for McArn and he turned himself in to authorities on October 10, 2017.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. Chief United States District Judge Thomas E. Johnston imposed the sentence.
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Centre Hall Man Sentenced to 33 Months’ Imprisonment for Explosives and Firearms OffensesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge Malachy Mannion sentenced James Woodring, age 51, Centre Hall, Pennsylvania, to 33 months’ imprisonment and three years of supervised release, for manufacturing explosives and for being a felon in possession of firearms.
According to United States Attorney David J. Freed, James Woodring pleaded guilty to manufacturing explosives after he purchased and transported commercial grade fireworks to his residence, modified them to increase their power and volatility, and sold them, all without a license to do so. The activities ended on May 18, 2016, when an explosion occurred at Woodring’s Centre Hall residence after Woodring and his wife, Christina Woodring, accidentally ignited one of the devices.
James Woodring also pleaded guilty to possessing firearms, despite a prohibition triggered by his prior 2011 felony conviction for distributing explosive. The firearms, which were seized and forfeited by the government, along with several hundred rounds of ammunition and $3,000, were:
- .380 caliber Smith and Wesson semi-automatic pistol, which was reported stolen;
- 12-gauge Mossberg Maverick shotgun;
- 30x.06 Remington Sportsman 76 pump rifle; and a
- .223 caliber New Frontier LW-15 rifle, which is a semiautomatic firearm that is capable of accepting a large capacity magazine.
In pronouncing the sentence, Judge Mannion highlighted James Woodring’s prior federal conviction for dealing in explosives without a license, and the danger he created for himself, for his family, and for emergency personnel by manufacturing homemade explosives. Judge Mannion also focused on James Woodring’s statements to an undercover law enforcement official in which Woodring explained how to place effectively the explosives to damage an automobile.
Christina Woodring previously pleaded guilty to conspiring to manufacture and sell explosives, and was sentenced in April 2017 to home confinement and probation.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, the Centre Hall Police Department, and the Springettsbury Township Police Department. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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