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Tuesday 2 January 2018
Mobile County Man Receives 57 Month Sentence for Possession of a Firearm After Felony ConvictionRead the Press Release
The United States Attorney, Richard W. Moore, announces that Montrell Pettaway, a 29 year old, resident of Mobile, Alabama was sentenced today to 57 months incarceration followed by three years of supervised release for possessing a firearm after being convicted of felony possession with intent to distribute crack cocaine.
On November 29, 2016, a Mobile County deputy was told by an informant that he/she has just seen Pettaway packaging, processing and storing illegal drugs at his residence in Mobile, Alabama. The informant provided the deputy with a photograph to support his/her information. Several experienced narcotics investigators (deputies) of the Mobile County Sheriff’s Office immediately began surveilling Pettaway at his residence because they sought to confirm that he was illegally distributing narcotics from that location.
Over a 30 minute period, deputies observed a high volume of vehicle traffic pull up to the residence and stay for very short periods of time. During this time, Pettaway was in and out of his residence. On occasions when Pettaway was outside, he approached the vehicles or the occupants of the vehicle exited and approached him. Each time, the contact between him and the vehicle occupants was de minimis. After the contact, the occupants reentered their vehicles and left the area. Sometimes Pettaway was inside the residence and the occupants exited their vehicles and went inside for a few minutes then returned to their vehicles and left the area. On several occasions, Pettaway was observed going to and from his parked Chevrolet Malibu before and after the vehicles arrived at his residence. Deputies concluded that Pettaway was storing and also selling illegal drugs at his residence.
Based, in part, on their observations at Pettaway’s residence, deputies sought a warrant to search the residence. While deputies were waiting on the search warrant to be approved, Pettaway got into his Chevrolet Malibu and drove away from the residence. Deputies followed Pettaway and saw him stop the vehicle behind a house a couple of miles away. Deputies also saw another vehicle approaching and believed its occupant(s) might be attempting to buy illegal drugs from Pettaway. Deputies approached Pettaway to investigate their belief that he was in possession of illegal narcotics. Lighting was limited so the deputies asked Pettaway to exit the vehicle. He complied. As Pettaway exited the vehicle and the vehicle’s dome light came on, deputies saw a hand gun on the floorboard of the front seat and a small amount of cocaine on the ground just outside the driver’s side door after Pettaway stepped out of the vehicle. Pettaway was arrested and $795.00 in U. S. currency was seized from his person incident to his arrest.
Pettaway entered a guilty plea on September 29, 2017, after his motion to suppress the evidence was denied.
The U. S. Department of Homeland Security/ICE special agents investigated the case along with Mobile County Sheriff’s Office deputies who presented the case to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney, Gina S. Vann.
Man Sentenced to 40 Years in Prison for Arson-for-Profit SchemeRead the Press Release
RICHMOND, Va. – A Florida man was sentenced today to 40 years in prison for running a 15-year insurance fraud scheme that involved at least 27 fires in two states.
Verdon Taylor, 72, of Leesburg, Florida, was convicted by a federal jury on Oct. 25, 2017, of conspiracy, wire fraud, use of fire to commit a federal felony, and witness tampering in connection with the fraud. According to court records and evidence presented at trial, Verdon Taylor and four co-conspirators, Vershawn Jackson, 39, and Marie Taylor, 55, both of Richmond, along with Sylvia Mitchell, aka Sylvia Jackson, 59, of Tampa, Florida, and Eugenia Fleming, 57, of Victoria, participated in a long-running arson-for-profit scheme in which the conspirators purchased cars or mobile homes at auction, or signed leases at rental properties, insured the property, and set fire to the insured property to collect insurance proceeds. In many instances, the time between the purchase of insurance and the fire was mere weeks or even days. The evidence at trial also showed that the defendants made a practice of staging mobile homes and rental properties with furniture and clothing that had been purchased at flea markets or auctions, and on several occasions had been in other properties that previously burned. Over the course of the scheme, defrauded insurance companies paid out over $1 million on claims by the conspirators.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Henry Rosenbaum, Henrico County Fire Marshal, and David Creasey, Richmond Fire Marshal, made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorneys David V. Harbach, II, Michael C. Moore, and Janet Jin Ah Lee are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-29.
Man Convicted of Distributing Heroin and Fentanyl that Caused Near-Death Overdose Sentenced to 30 Years in PrisonRead the Press Release
A man who distributed heroin laced with fentanyl that caused a near-fatal overdose was sentenced on December 27, 2017, to 30 years in federal prison.
Cordero Robert Seals, age 29, from Cedar Rapids, Iowa, received the prison term after a July 19, 2017, jury verdict finding him guilty of one count of distribution of heroin and fentanyl resulting in serious bodily injury and one count of possession with intent to distribute heroin and fentanyl.
Evidence at trial showed Seals sold heroin laced with fentanyl to a man in November 2016. Seals and the man then drove to a convenience store on First Avenue SE in Cedar Rapids, where the man entered the store’s bathroom and injected the heroin/fentanyl mix. Surveillance video from the store showed that about two minutes after the man left the bathroom, he lost consciousness and collapsed at the gas pump. The video showed Seals re-entering the convenience store after the man overdosed, and then looking out to the pumps where the man had collapsed. Seals then left the area without returning to the man’s vehicle. Trial evidence also showed that in April 2017, Seals was arrested for an outstanding warrant by Cedar Rapids Police. During a search, officers found six baggies of heroin laced with fentanyl, as well as nearly $3,800 in cash, in his pockets.
Seals was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Seals was sentenced to 360 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Seals is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR17-00028-LRR.
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Four Quebec Men Sentenced in Fraud Scheme Involving Burlington Area ATMsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that four Quebec men have recently been sentenced in United States District Court in Rutland following their guilty pleas to charges stemming from their involvement in a cross-border conspiracy to commit access device fraud. U.S. District Judge Geoffrey W. Crawford sentenced Mathieu Baaklini, 22, a leader of the conspiracy who lives in Laval, to 24 months of imprisonment. He also sentenced three lesser-involved participants, Safwan Bensalma, 22, of Laval, Brandon Lo, 25, of Laval, and Nicolau Manfredi, 22, of Montreal, to time served. Baaklini has been held in custody since his arrest on October 24, 2016. Bensalma, Lo and Manfredi all spent about two weeks in jail following their October 2016 arrests before they were released after posting cash bail. The court also ordered that Baaklini serve three years of supervised release following completion of his prison term and pay restitution of more than $68,000, while Bensalma, Lo and Manfredi were each ordered to pay $10,000 in restitution.
According to court records, at various times between March and October 2016, the four men traveled from Quebec to Burlington, Vermont, where they used ATM machines in Burlington and Essex to obtain cash advances on counterfeit debit cards made with account information from mostly European and Canadian accountholders. Authorities believe the card numbers were skimmed from taxi patrons in the Montreal area. ATM transaction records and bank surveillance video shows that on May 24, 2016, approximately $8,800 in cash advances were withdrawn using suspected fraudulent credit cards. Records further show that on May 25, 2016, one of the charged conspirators made $11,000 in wire transfers from Chittenden and Franklin Counties, Vermont to locations in Quebec. ATM transaction records and bank surveillance video further shows that between August 22-25, 2016, NBT Bank incurred approximately $54,000 in suspected fraud activity in the form of 500 suspected cash advances on Canadian and European credit and debit cards. All told, banks suffered losses of more than $98,000.
On October 21, 2016, federal agents executed a search warrant on a storage unit in Chittenden County, Vermont, where they recovered approximately $33,000 in cash, a laptop computer, a card-reading device, and approximately 378 gift cards with markings indicating that they contained bank account information on them.
All four men were arrested on October 24, 2016 by Department of Homeland Security Agents at the Highgate Springs, Vermont Port of Entry as they attempted to enter the United States.
Homeland Security Investigations, with the assistance of U.S. Customs and Border Protection and the Burlington Police Department conducted the investigation into this matter. Assistant U.S. Attorney Gregory Waples is handling the prosecution. Baaklini is represented by Mark Kaplan. Bensalma is represented by Craig Nolan. Lo is represented by Chandler Matson and Manfredi by Douglas Kallen.
Former Detroit Deputy Chief of Police and Legal Advisor Pleads Guilty to Bribery ConspiracyRead the Press Release
A former Deputy Chief of Police for the Detroit Police Department, Celia Washington, 57, of Detroit, pleaded guilty today to conspiring with Gasper Fiore to commit bribery, in connection with the corruption of towing permits in Detroit, Acting United States Attorney Daniel L. Lemisch announced today.
Lemisch was joined in the announcement by David P. Gelios, Special Agent In Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
While serving as a Deputy Police Chief and the legal advisor to the Chief of Police, Washington’s responsibilities included overseeing the Detroit Police Department’s permitting, licensing, and use of private towing companies. During the plea hearing today, Washington admitted to accepting $3,000 in cash from tow company owner Gasper Fiore. On December 20, 2017, Fiore pleaded guilty to bribing Clinton Township Trustee Dean Reynolds in connection with a Clinton Township towing contract. Washington admitted that she knew that Fiore was using the cash bribe to seek to influence her in the selection of tow rotations in the City of Detroit for Fiore’s towing companies. Under the city’s towing rotation, private towing companies are called by the police to tow cars that are seized by the police or had been stolen. When she accepted the bribe, Washington was aware that Fiore was violating the City of Detroit’s rules prohibiting a towing company owner from having more than one company in the rotation for a particular police precinct or district. After she accepted the $3,000 cash bribe from Fiore, Washington assisted in issuing a police towing rotation list that continued to allow Fiore to violate the city’s towing rules and that significantly benefited Fiore’s companies. Although Washington had claimed that the $3,000 in cash from Fiore was a “loan,” Washington admitted during her guilty plea that she kept the money and had spent some of it when she knew Fiore was seeking to bribe her in connection with the city’s tow rotations.
The bribery conspiracy count carries a maximum sentence of 5 years imprisonment and a fine of $250,000.
Acting United States Attorney Lemisch said: “Former Deputy Police Chief Washington’s crime was a serious breach of the public’s trust. The public must have every confidence that its police force is free of corruption and bribery. We again thank Chief of Police James Craig for his assistance in this investigation.”
"Today’s guilty plea demonstrates the allure of financial gain, even if ill-begotten, sometimes overcomes the impulse to do what is right”, said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “It is our hope that the continued march of dishonest individuals before the Federal bench for their crimes will serve as a reminder to anyone who believes corrupt practices will go unpunished.”
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and R. Michael Bullotta.
Derry Man Sentenced to over Seven Years in Prison for Cocaine TraffickingRead the Press Release
CONCORD, N.H. - Edwin Ruiz, 30, of Derry, was sentenced in federal court to serve 90 months in prison for cocaine trafficking, Acting United States Attorney John J. Farley announced today.
Court filings and statements made in court established that on December 1, 2016, Ruiz was driving a vehicle stopped by the Manchester Police Department. A search of the car resulted in the seizure of $8,264 and 799.8 grams of cocaine.
Ruiz previously pleaded guilty to possessing cocaine with intent to distribute on September 19, 2017. The cash seized from Ruiz was forfeited to the United States.
“As we continue to fight against the deadly problems posed by opioids, the law enforcement community also remains committed to working together to stop the distribution of other dangerous illegal drugs,” said Acting U.S. Attorney Farley. “I commend the work of the law enforcement officers in this case. Their efforts prevented a substantial quantity of cocaine from being distributed in the Granite State.”
This matter was investigated by the Manchester Police Department and the Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
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Chinese and Malaysian nationals sentenced in interstate prostitution and money laundering schemeRead the Press Release
ATLANTA – Xiaohong Huang, also known as “Michelle,” Chan Kong Chow, and Biyun Gong, have been sentenced for conspiring to operate a brothel in Doraville, Georgia, which lured sex-workers to Atlanta from across the U.S.
“Interstate prostitution is a serious crime that exploits women and harms our community,” said U.S. Attorney Byung J. “BJay” Pak. “Brothels remain a blight in segments of our communities. The prosecution of these defendants, the seizure of significant assets, and the dedication of law enforcement resources in targeting this long-running criminal scheme are a warning for others engaged in this conduct.”
“The FBI and its law enforcement partners will not tolerate the ongoing exploitation of disadvantaged people for the profit of a few,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “While we are working vigorously to identify victims of exploitation, we are also sending a message to anyone who engages in these illegal activities that they will be held accountable to the fullest extent of the law.”
According to U.S. Attorney Pak, the charge, and evidence presented in court: Xiaohong Huang operated a brothel at a large apartment complex in Doraville from approximately December 2005 through May 2017. Chan Kong Chow and Biyun Gong assisted Huang by managing the day-to-day operations of the business. The defendants induced women of Asian descent to travel to Georgia from across the U.S., including California and New York, for work at the brothel as commercial sex workers. Huang advertised her business online and by word-of-mouth.
The defendants regularly used cellular phones to communicate with women who worked as sex workers at the brothel, and with their male clients. The defendants arranged for sex workers to travel to the brothel on commercial flights into Atlanta approximately every 10 days on a rotating basis.
Additionally, as a part of the conspiracy, Huang utilized checking accounts at Bank of America, Wells Fargo Bank, and Metro City Bank, to deposit proceeds derived from the brothel. Huang then used proceeds of the business to pay expenses related to the operation of the brothel. In this way, Huang laundered more than $150,000 in criminally derived proceeds during the conspiracy.
- Xiaohong Huang, a/k/a “Michelle,” 45, of China, was sentenced to two years, nine months in federal prison. As part of her sentence, Huang was required to forfeit a large residence in Johns Creek, Georgia, cash, jewelry, and other expensive items.
- Chan Kong Chow, 59, of China, was sentenced to one year, nine months in federal prison.
- Biyun Gong, 54, of China, was sentenced to one year, three months in federal prison.
Huang, Chow, and Gong, pleaded guilty on July 27, 2017, to conspiring to operate an interstate prostitution scheme involving money laundering.
Upon completion of their sentences, the Defendants will be immediately transferred to the custody of the Department of Homeland Security, Homeland Security Investigations (ICE), for deportation proceedings and removal from the United States.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Department of Homeland Security.
Assistant U.S. Attorneys Richard S. Moultrie, Jr. and Bret R. Hobson prosecuted the case.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
California Man Sentenced on Drug Charges Following Jury Trial VerdictRead the Press Release
Bismarck - United States Attorney Christopher C. Myers announces that on January 2, 2018, ANTONIO AVILA MEDRANO, age 41, of Los Angeles, California, was sentenced by Chief Judge Daniel L. Hovland to serve 25 years in federal prison, to be followed by 10 years of Supervised Release, after being found guilty by a trial jury in July of 2017 on charges of Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance; Possession with Intent to Distribute a Controlled Substance; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Medrano was further ordered to pay $300 in special assessments to the Crime Victims’ Fund.
This case came to the attention of law enforcement when a traffic stop of Medrano was conducted in Bismarck on May 6, 2015, during which a Bismarck hotel key card was found on Medrano’s person, as well as $4800 US currency in a Ziploc bag. Following further investigation, it was determined that Medrano and the co-defendant were transporting methamphetamine in to North Dakota from California for distribution. A search of the Bismarck hotel room revealed methamphetamine, digital scales, baggies, a vacuum sealer, heat sealer bags, and dryer sheets, all of which was indicative of drug trafficking. Also located in the room was a Sig Sauer P290 firearm, which was found inside Medrano’s bag along with empty baggies, methamphetamine, and a prescription pill bottle with Medrano's name on it. A search of Medrano’s residence in California was conducted on April 28, 2015, during which time Medrano’s son informed law enforcement that methamphetamine was not at the residence because Medrano and the co-defendant took it with them when they left 4-5 days prior to the search warrant being executed.
This case was investigated by the Drug Enforcement Administration and the Bismarck Police Department.
Special Assistant United States Attorney Dawn Dietz prosecuted the case.
Anchorage Man Sentenced for Selling Large Quantities of Oxycodone Out of His Auto Repair ShopRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man was sentenced in federal court in Anchorage for selling large quantities of Oxycodone out of his auto repair shop.
Spresim Alimi, 36, of Anchorage, was sentenced today by Chief U.S. District Judge Timothy M. Burgess, to serve 136 months in prison. Alimi previously pleaded guilty on July 7, 2016, to possession with intent to distribute Oxycodone and agreed to forfeit $88,146 and a 2016 Dodge Viper.
According to court documents, Alimi owned and operated Alpina Auto, an auto repair shop which he used as a front to distribute large quantities of Oxycodone at $35 per pill. After search warrants were executed on Alimi’s residence, business, and storage unit, he was found to be in possession of 4,363 Oxycodone pills, almost $90,000 in cash, and a 2016 Dodge Viper, which had been purchased shortly before his arrest. The street value of the 4,363 Oxycodone pills was over $150,000. The investigation further revealed that Alimi would sometimes use the credit card machine at Alpina Auto to conduct narcotics transactions with buyers. Alimi was also found in possession of a number of firearms, several of which were reported stolen.
The Drug Enforcement Administration (DEA), Alaska State Troopers (AST), and the Air Force Office of Special Investigations (AFOSI) conducted the investigation leading to the successful prosecution of this case.
4 More Members and Associates of MS-13 Charged in Superseding Indictment; Obstruction, Drug & Other Charges AddedRead the Press Release
COLUMBUS, Ohio – Four additional individuals alleged to be members and associates of MS-13 have been charged by a federal grand jury in a superseding indictment returned here Dec. 14 and unsealed today.
The new indictment also includes eight additional charges, including in part: conspiracy to possess with intent to distribute cocaine and marijuana, alien in possession of firearms and/or ammunition, obstruction of justice, destruction or removal of property to prevent seizure and illegal reentry of a previously removed alien.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Franklin County Sheriff Dallas Baldwin and Columbus Police Chief Kim Jacobs announced the new charges.
The four additional defendants are:
Name
Also Known As
Age
City
*Jose Daniel Gonzalez-Campos
Flaco
27
Fugitive – whereabouts unknown
Daniel Alexander Diaz-Romero
Manchas
23
Deported
Denis Donaldo Fuentes-Avila
18
Columbus, Ohio
Carolina Garcia-Miranda
Mamayema
29
Columbus, Ohio
In July, a federal grand jury charged 10 individuals with conspiracy to commit extortion, conspiracy to commit money laundering and use of a firearm during a crime of violence.
Five other individuals were arrested and charged in criminal complaints this summer with federal immigration-related crimes. Since that time, another four individuals have been arrested and charged by criminal complaint with federal immigration-related crimes.
MS-13, formally La Mara Salvatrucha, is a multi-national criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, Guatemala and Honduras. The organization’s leadership is based in El Salvador, where many of the gang’s high-ranking members are imprisoned.
In 2012, the United States government designated MS-13 as a “transnational criminal organization.” It is the first and only street gang to receive that designation. MS-13 has become one of the largest and most violent criminal organizations in the United States, with more than 10,000 members and associates operating in at least 40 states, including Ohio.
In Ohio and elsewhere in the United States, MS-13 is organized into “cliques,” which are smaller groups of MS-13 members and associates acting under the larger mantle of the organization and operating in a specific region, city or part of a city.
The 11-count superseding indictment alleges that defendants – members and associates of the MS-13 – conspired to commit extortion through the use of threatened or actual force, violence or fear to intimidate their victims into paying money to the defendants and their co-conspirators. Many of the proceeds were sent, usually by wire transfer and often through intermediaries, to MS-13 members and associates in El Salvador and elsewhere. The money was then used to promote and facilitate the criminal activities of MS-13 in El Salvador and the United States.
As part of the alleged conspiracy, the defendants and their co-conspirators unlawfully obtained extortion and drug trafficking proceeds to be used to, among other things, buy items that MS-13 uses to engage in criminal activity, such as cell phones, narcotics and weapons; provide financial support and information to MS-13 members, including those incarcerated in El Salvador and the United States, as well as those who have been deported; and aid families of deceased MS-13 members.
The superseding indictment also alleges that various defendants conspired to possess cocaine and marijuana with the intent of distributing the drugs.
Jose Martin Aguilar-Rivera, an illegal alien, allegedly possessed ammunition. Juan Jimenez-Monufar, also an illegal alien, allegedly possessed multiple firearms.
On August 26, according to the superseding indictment, Isaias Alvarado attempted to obstruct justice and prevent the lawful seizure of evidence by directing another individual to dispose of a firearm.
The 10 defendants also charged in the original indictment are:
Name
Also Known As
Age
City
Jose Martin Neftali Aguilar-Rivera
Momia, Pelon
32
Columbus, Ohio/ Indianapolis, Ind.
Pedro Alfonso Osorio-Flores
Smokey
38
Columbus, Ohio
Juan Jose Jiminez-Montufar
Chele Trece
34
Columbus, Ohio
Isaias Alvarado
Cabo
44
Columbus, Ohio
Cruz Alberto-Arbarngas
Cruzito
30
Columbus, Ohio
Jose Manuel Romero-Parada
Russo
23
Indianapolis, Ind.
Jose Salinas-Enriquez
Martillo
32
Dayton, Ohio
Jorge Cazares
Veneno
37
Columbus, Ohio
Jose Ramiro Aparicio-Olivares
Flaco
42
Columbus, Ohio
*Nelson Alexander Flores
Mula
46
Fugitive – whereabouts unknown
The crimes charged in the superseding indictment and each crime’s potential maximum sentence include:
Crime
Potential Maximum Sentence
Conspiracy to commit extortion
20 years in prison
Conspiracy to commit money laundering
20 years in prison
Brandishing a firearm in relation to a crime of violence
At least 7 years in prison, consecutive to any other sentence imposed
Conspiracy to possess with intent to distribute controlled substances
20 years in prison
Possession with intent to distribute controlled substances
20 years in prison
Alien in possession of firearm or ammunition
10 years in prison
Obstruction of justice
20 years in prison
Destruction or removal of property to prevent seizure
5 years in prison
Illegal reentry of a removed alien
2 years in prison
“The defendants and charges added in the indictment unsealed today illustrate our continued dedication to eradicating MS-13’s presence from our communities in the Southern District of Ohio,” U.S. Attorney Glassman said. “This investigation is ongoing.”
“This is a great example of law enforcement and the community working together to make neighborhoods safe," stated FBI Special Agent in Charge Angela Byers. "We urge any additional victims of MS-13 to contact the FBI so we can provide assistance and continue these important efforts.”
“ICE will continue to be relentless in our efforts to rid the community of MS-13 members and the related criminal activity that comes with gang activity,” said Rebecca Adducci, field office director for ERO Detroit, which covers Michigan and Ohio. “Working together with our law enforcement partners, ICE will use its unique authorities to arrest MS-13 members who are subject to removal from the United States.”
If you are a victim of the alleged crimes, or have additional information about MS-13, please call the FBI hotline at 614-849-1765. Callers can remain anonymous.
U.S. Attorney Glassman commended the investigation of this case by the FBI, ICE, Columbus Division of Police and Franklin County Sheriff’s Office, and the assistance of the Ohio Bureau of Criminal Investigation (BCI) and Homeland Security Investigations (HSI), as well as Assistant United States Attorneys Brian J. Martinez and Jessica H. Kim, who are prosecuting the case.
An indictment, superseding indictment or criminal complaint merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Monday 1 January 2018
Ziebach County Man Indicted on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Ziebach County, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Maintaining a Drug-Involved Premises, and Possession of a Firearm by a Prohibited Person.
Jason Leo Fischer, age 33, was indicted on November 22, 2017. He appeared before U.S. Magistrate Court Judge Mark A. Moreno on December 11, 2017, and pled not guilty to the Indictment.
The maximum penalties upon conviction are up to 20 years in custody and/or a $1,000,000 fine, three years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between June 1, 2016, and the date of the Indictment, Fischer knowingly and intentionally conspired with other persons to knowingly and intentionally distribute and to possess with the intent to distribute methamphetamine. The Indictment further alleges that since June 1, 2016, Fischer used and maintained his residence for purposes of distributing and using a controlled substance. Furthermore, it is alleged that on September 5, 2016, Fisher, an unlawful user of and addicted to a controlled substance, knowingly received and possessed a .22 caliber rifle, which had been shipped and transported in interstate commerce and foreign commerce, in violation of federal law.
The charges are merely accusations and Fischer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, 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.
Fischer was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for February 6, 2018.
Wanblee Man Charged with Aggravated Sexual AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Wanblee, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse.
Isadore John Conquering Bear, age 44, was indicted on August 16, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 21, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to any term of years or life in custody and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 11, 2017, Conquering Bear, knowingly caused the victim to engage in a sexual act by use of force.
The charge is merely an accusation and Conquering Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson is prosecuting the case.
Conquering Bear was released on bond. A trial date has been set for April 3, 2018.
Mission Man Sentenced for Possession of CocaineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Possession of a Controlled Substance was sentenced on December 19, 2017, by U.S. Magistrate Judge Mark A. Moreno.
Charles Griffen Spotted Elk, age 21, was sentenced to 18 months probation, a $1,000 fine, forfeiture of U.S. currency seized by law enforcement, and a special assessment of $25 to the Federal Crime Victims Fund.
Spotted Elk was indicted by a federal grand jury on May 16, 2017, for Possession with Intent to Distribute a Controlled Substance. He pled guilty to Possession of a Controlled Substance on December 19, 2017.
On November 6, 2016, Rosebud Sioux Tribal Law Enforcement Service Officers performed a traffic stop on a vehicle near Mission, in which Spotted Elk was a passenger. Found inside the vehicle under the seat where Spotted Elk was sitting, was a plastic baggie containing 7.22 grams of cocaine and 2.88 grams of marijuana. Also found on Spotted Elk during the traffic stop was $56 in United States currency, and $538 in United States currency in the wallet belonging to the driver of the vehicle. Spotted Elk agreed to forfeit any interest he may have had in the currency.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Spotted Elk was released on conditions following sentencing.
Eagle Butte Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Possession of Firearm by a Prohibited Person was sentenced on December 11, 2017, by U.S. District Judge Roberto A. Lange.
Elliot John Tiger, age 27, was sentenced to 10 months in custody, followed by 2 years of supervised release, forfeiture of two firearms and ammunition, and a special assessment of $100 to the Federal Crime Victims Fund.
Tiger was indicted by a federal grand jury on June 14, 2017, for Possession of a Firearm by a Prohibited Person and pled guilty to the charge on September 26, 2017.
On December 9, 2016, the Cheyenne River Sioux Tribal Police conducted a traffic stop on a vehicle in which Tiger was a passenger. At the time of the stop, law enforcement seized a .30-30 caliber rifle from the front seat where Tiger was sitting, and a 12 gauge shotgun located in the back seat. Tiger denies any ownership in the two firearms or any ammunition found in the vehicle; however, agreed to forfeit any interest he may have had in both the firearms and the ammunition. Tiger admitted to smoking marijuana on the date of the traffic stop and prior to that date. While he denied owning either firearm, Tiger admitted that the rifle was within his reach in the vehicle, and that he had fired both firearms earlier in the day.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotic Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Tiger was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Charged with Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Michael Thomas LeBeau, age 23, was indicted on December 19, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 20, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about August 2, 2015, in Eagle Butte, LeBeau did unlawfully assault an individual with a dangerous weapon, that is, shod feet with the intent to do bodily harm and said assault did result in serious bodily injury.
The charge is merely an accusation and LeBeau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
LeBeau was released on a bond pending trial. A trial date has not been set.
Friday 29 December 2017
Wife of Big Island Capital Fraudster Charged for Her Role in Million Dollar Ponzi SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the filing of a felony information charging ALEX REAVES LUNDIN, 25, with conspiracy for her role in a $1 million Ponzi scheme orchestrated by her husband, Jeremy Lundin. LUNDIN will make her initial appearance in U.S. District Court at a later date. Jeremy Lundin, who has already pled guilty to charges of mail fraud and money laundering for his role in orchestrating the scheme, is scheduled to be sentenced on February 1, 2018.
According to the information, from approximately December 2014 through May 2017, Jeremy Lundin claimed that he conducted “options trading” through his business Big Island Capital. He worked through a network of associates and friends to solicit investors by promising to generate exponential growth through options trading, and obtained more than $1 million from 51 investors over a roughly two-year period. However, instead of using the funds for options trading, Jeremy Lundin and LUNDIN spent investors’ money to fund their lavish lifestyle.
According to the information, as part of the scheme, Jeremy Lundin provided investors with a “Welcome Packet,” consisting of an “Investment Advisory Agreement” and other materials describing his business. Through these materials, Jeremy Lundin claimed that Big Island Capital investments earned a 67 percent rate of return in 2013 and a 97.8 percent rate of return in 2014. In order to appear legitimate and promote his scheme, Jeremy Lundin also created phony account statements which commonly and falsely showed double-digit gains on a weekly or quarterly basis. Between May 2015 and May 2017, at least $992,000 in investor funds was deposited into Jeremy Lundin’s “Big Island Capital” bank account. During roughly the same time period, however, Jeremy Lundin transferred $933,950 from the business account directly into his and LUNDIN’s personal checking account. The couple then used the majority of those investor funds on their personal expenses including travel, luxury automobiles, a boat, jewelry, retail purchases, and more than $366,000 in credit card payments.
According to the information, after LUNDIN became aware that her husband was not conducting options trading as he promised investors, she continued to assist him in carrying out the scheme by, among other actions, soliciting new investors and drafting correspondence intended to lull current victim-investors into believing their money was safe, despite knowing that she and Jeremy Lundin had spent all of the investor funds on personal expenses.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Federal Bureau of Investigation, United States Postal Inspection Service, and Minnesota Department of Commerce Fraud Bureau.
Assistant United States Attorney Amber M. Brennan is prosecuting the case.
Defendant Information:
ALEX REAVES LUNDIN, 25
Mound, Minn.
Charges:
- Conspiracy to commit mail fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the information are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
United States Reaches Settlement with Glenn Dale Internist to Resolve False Claims Act Allegations Relating to Medically Unnecessary ProceduresRead the Press Release
FOR IMMEDIATE RELEASE CONTACT ELIZABETH MORSE
www.justice.gov/usao/md (410) 209-4885
Baltimore, Maryland – Nwaehihie H. Onyeaghala, M.D., an internist in Glenn Dale, Maryland, that operates his medical practice in a limited liability corporation named Krystal Medical Associates, LLC, has agreed to pay the United States $1,000,000.00 to settle allegations that he submitted false claims to the United States for medically unnecessary autonomic nervous function tests and peripheral vascular tests.
The settlement agreement was announced today by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Nick DiGuilio, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services and Maryland Attorney General, Brian Frosh.
In his practice, Dr. Onyeaghala administered central and peripheral autonomic nervous function tests and peripheral vascular tests. Autonomic nervous function disorders are rare and tests conducted to determine such disorders should be done only after a clinician suspects an autonomic nervous function disorder. Furthermore, such tests should be conducted only one time per beneficiary, with the necessary equipment and by clinicians with specialized training to administer and interpret these tests. The CPT codes that Dr. Onyeaghala used for central autonomic nervous function tests were CPT codes 95921, 95922 and 95924; he used CPT code 95923 for peripheral autonomic nervous function tests.
Peripheral vascular testing is indicated when a patient presents with leg pain and an examination reveals diminished peripheral arterial pulses. The purpose of monitoring a patient that presents with these symptoms is to see if a patient’s arterial insufficiency progresses to a point where surgical intervention is needed. The CPT code that Dr. Onyeagahala used to test the peripheral vascular system was CPT code 93922 which is a “limited bilateral noninvasive physiologic study of the upper or lower arteries.”
According to the settlement agreement, from January 1, 2013 to January 28, 2017, Dr. Onyeaghala submitted claims to Medicare and Medicaid for medically unnecessary autonomic nervous function tests. The United States alleged that autonomic nervous function tests were not medically necessary because Dr. Onyeaghala lacked the necessary equipment to conduct the tests, the patients did not have an autonomic nervous function disorder before the test was conducted, Dr. Onyeaghala lacked the specific training to conduct such tests and he only used the tests to monitor patient symptoms, not make any clinical decisions about future patient care. With regard to the peripheral vascular tests, the United States alleged that Dr. Onyeaghala conducted these tests at a frequency per beneficiary that was not medically necessary. Dr. Onyeaghala denied the allegations.
Also as part of the settlement, Nwaehihie Onyeaghala, M.D. has agreed to enter into an expansive, 3 year Integrity Agreement that provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.
The civil settlement was reached by the U.S. Attorney’s Office for the District of Maryland. The Integrity Agreement was negotiated by the Office of the Counsel to the Inspector General of the Department of Health and Human Services.
This case arose from a recent initiative inside the U.S. Attorney’s Office. The United States Attorney’s Office has dedicated resources to enable it to review Medicare billing data. The review of that data has enabled the United States Attorney’s Office to identify areas of concern where it appears that billing irregularities may have taken place. Partnering with the effected agencies, the United States Attorney’s Office has developed the ability to investigate these billing irregularities to determine whether the matter is appropriate for treatment under the False Claims Act.
Acting U.S. Attorney Stephen M. Schenning commended the HHS Office of Inspector General for its work in the investigation. Mr. Schenning also thanked Assistant United States Attorney Thomas Corcoran, who handled the case.
Two from Tonawanda Arrested on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Iramarie Velez-Mateo, 36, of Tonawanda, NY, and Osvaldo Rivera-Amaro, 47, of Tonawanda, NY, were arrested and charged by criminal complaint with attempted possession, with intent to distribute, 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of 5 years in prison, a maximum penalty of 40 years in prison and a $5,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, on December 15, 2017, United States Postal Inspectors intercepted a package that contained over 2 kilograms of cocaine. The package was addressed to the defendant Iramarie Velez-Mateo.
On December 28, 2017, a controlled delivery of a package containing sham cocaine was conducted at this same Tonawanda address. Defendant Velez-Mateo accepted the package, took it inside the residence, and departed. Approximately 30 minutes later, defendant Rivera-Amaro conducted counter-surveillance around the house in his black Audi. After departing, Rivera-Amaro returned to the house with Velez-Mateo. They obtained the package from the residence and placed it in the trunk of the vehicle. Law enforcement surveilled the two defendants as they departed. When Rivera-Amaro’s vehicle was stopped, the package with the sham cocaine was found inside.
Law enforcement subsequently executed a search warrant of the residence. During the search, investigators located drug packaging materials and a digital scale.
Previously, on November 15, 2017, Postal Inspectors intercepted a package sent to the same address that contained about a quarter kilogram of cocaine.
The defendants made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy and were released.
The complaint is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Boston Division Inspector in Charge Shelly Binkowski and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
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.Theodosia Husband, Wife Plead Guilty to Illegally Trafficking in GinsengRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced a Theodosia, Mo., couple pleaded guilty in federal court today to illegally trafficking in wild American ginseng.
Kermit J. Schofield, 76, and his wife, Sandy Schofield, 73, both of Theodosia, each waived their right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges them with trafficking in wild American ginseng plants across state lines in violation of state and federal laws.
The Schofields operated a business from their home, Schofield Roots and Herbs, which purchased and sold wild American ginseng, blood root, Echinacea, Virginia snake root, and other roots and herbs.
By pleading guilty today, the Schofields each admitted that they illegally purchased a total of approximately 114.9 pounds of ginseng from sources in Arkansas on several occasions between June 25, 2013, and Aug. 15, 2015. They knew it was illegal to purchase ginseng that was transported out of Arkansas without the required state certification. The purchases occurred outside the permitted time frame for purchasing ginseng in Missouri. The Schofields also admitted they falsified records related to the purchases.
For example, the Schofields purchased approximately 57.4 pounds of dried ginseng from sources in Arkansas on June 19 and Aug. 15, 2015, for a total of $22,940. Federal authorities executed a search warrant at their residence and seized 118 pounds of illegally obtained dried ginseng before the Schofields were able to sell it. Under the terms of today’s plea agreement, the Schofields must forfeit the seized ginseng to the government.
The Lacey Act makes it illegal to import, export, sell, receive, acquire, or purchase in interstate commerce any plant that is taken, possessed, transported, or sold in violation of state law. Under Arkansas statutes, the Arkansas State Plant Board has authority to regulate the harvesting, sale, and exportation of wild American ginseng. A valid certificate must be obtained to take ginseng out of the state of Arkansas. Missouri also regulates the harvesting, sale, importation and acquisition of wild American ginseng.
Under federal statutes, the Schofields are each subject to a sentence of up to five 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 defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation.
Tax Preparers Plead Guilty to Tax FraudRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Elizabeth M. Jordan (52), and her daughter, Dolores A. Youmans (30), both of Jacksonville, have pleaded guilty to aiding and assisting others with the filing of fraudulent tax returns. Each faces a maximum penalty of three years in federal prison. A sentencing date has not yet been set.
According to the plea agreements, Jordan had been working as a tax preparer since approximately 1990. Since 2011, she was the owner and operator of a business that offered tax return preparation services. At the business, Jordan, Youmans, and others prepared individual income tax returns, with accompanying forms and schedules, on behalf of clients. In doing so, they reported false information, including false deductions, false claims for education and other credits, and false claims of business expenses. These false representations reduced the amount owed by, or increased the amount refunded to, the taxpayers.
Jordan pleaded guilty to preparing and filing a fraudulent 2011 tax return in which she represented that the taxpayer owned a business with no income and $34,755 in expenses. She also represented on the return that the taxpayer had $4,000 in education expenses and was entitled to an education credit of $1,000. In fact, the taxpayer was a wage-earning employee of a corporation who had not operated a business in 2011, and had not incurred any education expenses that year.
After Jordan filed the return, the IRS issued a refund of $10,021 to the taxpayer. In the absence of the false statements and other improperly claimed deductions and credits, the taxpayer would have been entitled to a refund of $533. The tax loss to the IRS was $9,488.
Youmans pleaded guilty to preparing and filing a fraudulent 2012 tax return. On the return, she represented that the taxpayer had a business with no income and $36,895 in expenses. She also represented on the return that the taxpayer had $4,000 in education expenses and was entitled to an education credit of $1,500. In fact, the taxpayer was a wage-earning employee of a corporation, had not operated a business in 2012, and did not incur any education expenses during that year. She further represented that the taxpayer had bought 5,255 gallons of gasoline and was entitled to a $962 fuel tax credit. Although the taxpayer was a truck driver, the employer had paid for all of the fuel and the taxpayer was not entitled to the credit. After Youmans filed the return, the IRS issued a refund to the taxpayer of $16,469. In the absence of the false statements and other improperly claimed deductions and credits, the taxpayer would have been entitled to a refund of $5,182. The tax loss to the IRS was $11,287.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Six Defendants Admit to Trafficking Large Quantities of MethamphetamineRead the Press Release
LUBBOCK, Texas — Six defendants charged in an indictment returned in November 2017 appeared this week and last week in federal court before U.S. Magistrate Judge D. Gordon Bryant to plead guilty to their involvement in a large-scale methamphetamine trafficking organization operating in the Lubbock, Texas area, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Alejandro Garcia-Izazaga, aka “Flaco” and “Alex,” 29; Anthony Wayne Reiley, aka “Tony,” 49; Ivan Cruz-Martinez, 37; and Zacarias Blanco-Olea, 45, each pleaded guilty to one count of possession with intent to distribute 500 grams or more of methamphetamine. Each faces a statutory penalty of not less than 10 years and up to life in federal prison and a $10 million fine.
Ernesto Martinez, Jr., 54, and Patricia Ann Hernandez-Salas, 48, each pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine. Each faces a statutory penalty of not less than five years and up to 40 years in federal prison and a $5 million fine.
A seventh defendant, Amanda Nicole Marney, 28, is scheduled to go to trial in February 2018.
Garcia-Izazaga, Reiley, Cruz-Martinez, and Blanco-Olea have been in custody on related criminal complaints since their arrest in October 2017. Martinez and Hernandez-Salas have been in custody following their arrests in November 2017. Sentencing dates will be set at a later date.
According to plea documents filed in the case, Garcia-Izazaga was facilitating the transportation of pound-quantities of methamphetamine in Lubbock and other major cities in the State of Texas. On three separate occasions in the summer of 2017, Garcia-Izazaga offered to pay Reiley, Cruz-Martinez, and Blanco-Olea to transport large quantities of methamphetamine from other parts of the state to Lubbock, Texas. On each occasion, the defendants were stopped by law enforcement for traffic violations. Searches of the vehicles revealed large amounts of methamphetamine in hidden compartments.
Martinez, Jr. and Hernandez-Salas each purchased and distributed large quantities of methamphetamine in the Lubbock, Texas area.
In total, law enforcement agents were able to seize in excess of 15 pounds of methamphetamine and several firearms.
The Drug Enforcement Administration is investigating with the assistance of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Customs and Border Protection, the Lubbock County Sheriff’s Office, the Lubbock Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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Salvadoran National Charged with Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A previously deported Salvadoran national appeared in federal court in Boston today to face the charge of failure to register as a sex offender.
Oscar Alfaro, 46, is in state custody in connection with sexual assault charges stemming from a 2016 incident in Newbury. On Dec. 21, 2017, Alfaro was indicted in federal court on one count of failure to register as a sex offender.
In 2008, Alfaro was convicted in Virginia state court for taking indecent liberties with a child. As a result, Alfaro was required to register as a sex offender in any jurisdiction where he lives or works. Following his 2008 conviction, Alfaro was deported.
In March 2016, Alfaro committed an indecent assault and battery in Massachsuetts, which qualified as a sex offense under Massachusetts state law. After the assault, Alfaro left Massachusetts. The U.S. Marshals Service located and apprehended Alfaro in Virginia in November 2017 and returned him to Massachusetts to face the state sexual assault charges.
Failing to register as a sex offender provides for a sentence of no greater than 10 years in prison, a minimum of five years and up to lifetime supervised release, and a fine of $250,000. Alfaro will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Misdemeanor Immigration Prosecutions – November and December 2017Read the Press Release
ALBANY, NEW YORK – The following is a summary of misdemeanor immigration prosecutions from November and December 2017:
Citizen of Mexico Sentenced for Illegal Entry into United States
Candelaria Solis-Guzman, age 30, of Mexico, was sentenced on November 9 to 22 days in jail following her guilty plea to illegally entering the United States from Canada.
Solis-Guzman admitted that she walked across the border approximately one-half mile east of the Trout River Port of Entry on the night of October 29, 2017. She was arrested by Border Patrol Agents as she hid in the woods just south of the border near Trout River, New York.
Citizen of Mexico Sentenced for Illegal Entry into United States
Fabian Moreno-Lule, age 30, of Mexico, was sentenced on December 5 to 17 days in jail following his guilty plea to illegally entering the United States from Canada.
Moreno-Lule admitted that he walked across the border without inspection one-half mile east of the Champlain Port of Entry on November 26, 2017. He was arrested by Border Patrol Agents about one mile south of the border.
Two Citizens of Haiti Sentenced for Illegal Entry into United States
Jean Dessalines, age 35, and Rosthy Pierre Charles, age 46, both of Haiti, were sentenced on December 14 to 24 days in jail and 17 days in jail, respectively, following their respective guilty pleas to illegally entering the United States from Canada.
Dessalines and Charles each admitted that together they walked across the border about one-half mile east of the Champlain Port of Entry on December 4, 2017. They were arrested together by Border Patrol Agents as they walked south away from the border.
Citizen of Brazil Sentenced for Illegal Entry into United States
Maura Evangelista-Dias, age 44, of Brazil, was sentenced on December 14 to 30 days in jail following her guilty plea to illegally entering the United States from Canada.
Evangelista-Dias admitted that she crossed the border approximately two miles east of the Massena Port of Entry on December 4, 2017. She was found and arrested by Border Patrol Agents as she was trying to leave the border area.
Citizen of Mexico Sentenced for Illegal Entry into United States
Marco Antonio Alpizar-Sanchez, age 34, of Mexico, was sentenced on December 19 to 45 days in jail after being found guilty at trial of illegally entering the United States from Canada.
The evidence at trial demonstrated that Alpizar-Sanchez climbed over a fence and walked across the border one-half mile east of the Champlain Port of Entry on November 11, 2017. Border Patrol Agents found Alpizar-Sanchez hiding in the woods about a half-mile south of the border.
Two Citizens of Haiti Sentenced for Illegal Entry into United States
Joseph James Monexil, age 30, and Delorme Gedeon, age 41, both of Haiti, were sentenced on December 20 to 22 days in jail and 20 days in jail, respectively, following their respective guilty pleas to illegally entering the United States from Canada.
Monexil admitted that he walked across the border near Champlain, New York, on December 5, 2017. He was arrested by Border Patrol Agents as he walked south away from the border.
Gedeon admitted that he entered the United States from Canada by walking across the border near Champlain, New York, on December 7, 2017. He was arrested by Border Patrol Agents as he walked south away from the border.
Three Citizens of Haiti Sentenced for Illegal Entry into United States
Dony Lacroix, age 24, Inel Jean, age 29, and Jean Riche, age 30, all of Haiti, were each sentenced on December 21 to 20 days in jail following their respective guilty pleas to illegally entering the United States from Canada.
Lacroix, Jean and Riche each admitted that they entered the United States together from Canada by walking across the border near Champlain, New York, on December 7, 2017. They were arrested by Border Patrol Agents as they walked south away from the border.
Citizen of Romania Sentenced for Illegal Entry into United States
Catalin Andrei Albu, age 30, of Romania, was sentenced on December 28 to time served (16 days in jail) following his guilty plea to illegally entering the United States from Canada.
Albu admitted that he crossed the border approximately five miles east of the Massena Port of Entry on December 12, 2017. Border Patrol Agents located and arrested him in Malone, New York.
Medicaid Fraud Complaint Filed Against Former Physicians and Their Business EntitiesRead the Press Release
HAMMOND - United States Attorney Thomas L. Kirsch II and Indiana Attorney General Curtis T. Hill, Jr. announced today the filing of a civil Medicaid fraud complaint against former physicians Don J. Wagoner, age 81, of Burlington, Indiana and Marilyn L. Wagoner, age 80, of Burlington, Indiana, and their business entities, Wagoner Medical Center, L.L.C., Wagoner Medical Center, P.C., and Don J. Wagoner, M.D. and Marilyn L. Wagoner, M.D., P.C. for filing false claims.
According to documents in this case, during 2011-2013, former physician Don J. Wagoner and his wife, former physician Marilyn L. Wagoner, practiced medicine together at Wagoner Medical Center. Defendants had a routine practice of requiring patients seeking a prescription for opioid pills or other pain medicine to submit a urine sample for qualitative testing for the presence or absence of nine or more drugs or drug classes. Using a multiplexed screening kit costing defendants no more than approximately five dollars, defendants tested each single urine sample for the same patient on the same day using the simple kit. Defendants then billed Indiana Medicaid and received $171.27 per patient, even though Indiana Medicaid billing rules only allowed them to bill $20.83 per patient. Defendants concealed this fraud by falsely certifying to Indiana Medicaid that they had collected and separately analyzed nine or more urine samples from each patient, when in fact they only had collected and analyzed one urine sample. Defendants perpetrated this fraudulent scheme for over 6,400 claims, and received a total overpayment from Indiana Medicaid of over $1.1 million.
The federal False Claims Act, and the Indiana Medicaid False Claims Act, allows the federal government and the State of Indiana to recover three times the amount of the false and fraudulent claims submitted to Indiana Medicaid plus a civil penalty of $5,500 to $11,000 per false claim submitted. A small portion of recoveries under the federal False Claims Act, three percent, is used to fund the cost of future health care fraud investigations and cases.
In 2013, defendants Don J. Wagoner and Marilyn L. Wagoner permanently surrendered their licenses to prescribe drugs and to practice medicine in connection with a state criminal investigation of their opioid-prescribing practices, which resulted in felony drug dealing convictions of Mr. Wagoner.
“Although they no longer are endangering vulnerable Medicaid patients by practicing medicine, former physicians Don Wagoner and Marilyn Wagoner cannot be allowed to retain the fruits of their fraudulent Medicaid claims,” said United States Attorney Thomas L. Kirsch II. My Office will continue to make it a priority to pursue investigations and cases to recover funds that were fraudulently received from the Medicare and Medicaid programs.”
The Justice Department’s Commercial Litigation Branch have given a high priority to civil prosecution of health care fraud, including Medicare and Medicaid fraud.
“Working to recover taxpayer funds taken through fraud and other illegal means is part of our responsibility as stewards of the public trust,” said Indiana Attorney General Curtis T. Hill, Jr. “We appreciate the collaboration of our federal partners in this particular case, and we intend to remain vigilant going forward to make sure monies set aside to help society’s most vulnerable members are truly used for that purpose.”
The United States Attorney’s office emphasizes that a Complaint is merely an allegation and that the United States and Indiana are required to prove their allegations before defendants can be found liable.
This suit was filed as the result of an investigation by the United States Attorney’s Office for the Northern District of Indiana and the Indiana Medicaid Fraud Control Unit. Assistant United States Attorney Wayne T. Ault will be the United States’ lead counsel in this civil litigation. Lead counsel for co-plaintiff, the State of Indiana, is Supervising Deputy Attorney General Steven A. Hunt.
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McGregor W. Scott Sworn in as United States Attorney for the Eastern District of CaliforniaRead the Press Release
SACRAMENTO, Calif. — The United States Attorney’s Office for the Eastern District of California announced that McGregor “Greg” W. Scott was sworn in today as the new United States Attorney by United States District Judge Morrison C. England Jr.
Mr. Scott is returning to the position he held from 2003 to 2009 when he was appointed United States Attorney by President George W. Bush. While Mr. Scott is currently serving as the Court-appointed United States Attorney, he has been nominated for the position by President Donald J. Trump, and his nomination is currently before the United States Senate.
Mr. Scott received his B.A. from Santa Clara University in 1985 and his J.D. from Hastings College of the Law, University of California, in 1989. He served as a deputy district attorney from 1989 to 1997 in Contra Costa County, California, and served as the elected District Attorney of Shasta County, California, from 1997 to 2003. After completing his first term as U.S. Attorney, Mr. Scott practiced as a partner with the law firm of Orrick, Herrington, & Sutcliffe LLP, focusing on white collar criminal defense and corporate investigations. In addition, Mr. Scott retired in 2008 from the United States Army Reserve as a lieutenant colonel after 23 years of service.
The United States Attorney serves as the chief federal law enforcement officer for the Eastern District of California and is responsible for prosecuting federal criminal cases and representing the United States in civil litigation. The Eastern District covers 34 counties throughout the Central Valley and the Sierras, from the Oregon border in the north to the Los Angeles County line in the south. The office has 92 attorneys and 81 non-attorney staff with offices in Sacramento, Fresno, and Bakersfield.
“I am honored to once again lead the committed public servants in this outstanding office. I look forward to working with them and our law enforcement partners to keep our communities safe and to provide the United States with the highest quality legal representation in all the matters we handle,” U.S. Attorney Scott said. He also thanked Phillip A. Talbert for his stewardship in serving as United States Attorney over the last 20 months.
Illegal Alien Convicted of Possessing Loaded Firearms and Felony Assault on A Federal OfficerRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Oniel Christopher Russell (40, Jamaica), a/k/a OG Russel, guilty of possessing firearms and ammunition as an illegal alien and felony assault on a federal officer. He faces a maximum penalty of 18 years in federal prison. His sentencing hearing is scheduled for March 9, 2018.
Russell was indicted in May 2017.
According to evidence presented at trial, Russell last entered the United States on October 29, 2008, as a non-immigrant visitor with authorization to remain in the country until January 3, 2009. He failed to depart and remained without any lawful immigration status thereafter. On August 24, 2013, deputies from the Orange County Sheriff’s Office pulled Russell over for a traffic violation and subsequently conducted a search of his vehicle. They located a loaded firearm in the glove compartment and another loaded firearm, with one round in the chamber, under the passenger seat where a female passenger had been sitting prior to the traffic stop. Russell gave a written confession to the gun recovered from the glove compartment, but denied knowledge of the other firearm. During the trial, the female passenger testified that Russell had handed her the gun right before the deputy pulled them over, and told her to put it under the seat and say it was hers. Neither were arrested that night on firearms charges.
In October 2016, deportation officers with U.S. Immigration and Customs Enforcement (ICE) received a lead as to Russell’s whereabouts and attempted to locate him for six months. On April 25, 2017, the officers located Russell and attempted to execute an administrative warrant for his arrest. While trying to handcuff him, Russell dragged one of the officers 6 to 10 feet, slamming him against the house in an attempt to flee back into the home. Only when another officer pulled his firearm out and ordered Russell to stop resisting, did he allow himself to be handcuffed and taken into custody.
This case was investigated by ICE, Enforcement and Removal Operations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Orange County Sheriff’s Office, with assistance from U.S. Citizenship and Immigration Services, U.S. Customs and Border Protection, Homeland Security Investigations, and the Federal Protective Service. It was prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from ICE’s Office of the Principal Legal Advisor.
Four San Francisco Bay Area Residents Indicted for Conducting Illegal Gambling Business in Sacramento and ElsewhereRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment on Thursday against Yaniv Gohar, 34, of Berkeley, Orel Gohar, 27, of San Francisco, Eran Buhbut, 32, of Oakland, and May Levy, 26, of Walnut Creek, charging them with conducting an illegal gambling business, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2015 and November 2017, the defendants operated a business that involved installing and maintaining video slot machines at smoke shops and convenience stores throughout Northern California, including in Sacramento, in violation of California laws prohibiting such machines.
This case is the product of an investigation by the Federal Bureau of Investigation and California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Miriam R. Hinman are prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fort Worth Man Convicted for His Role in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Following a two-day jury trial before U.S. District Judge Reed C. O’Connor, a federal jury has convicted Jeremy Crabtree, 41, on a felony drug charge, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Crabtree was convicted last week on one count of conspiracy to possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine. The conspiracy count carries a penalty of not less than 10 years or more than life in federal prison and a $10 million fine. Sentencing is scheduled for April 9, 2018.
The government presented evidence at trial that in 2014 and 2015, Crabtree operated an illegal gambling establishment near I-35W and Long Avenue. The game room became a hub for Aryan Brotherhood (AB) gang-related activity and methamphetamine trafficking. Although not an official member, Crabtree was a close associate to AB members and allowed them to use his game room to buy and sell methamphetamine and discipline AB members for gang-related violations.
The Drug Enforcement Administration, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorneys Shawn Smith and Frank Gatto prosecuted.
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Charleston man sentenced to 20 years in federal prison for fentanyl crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to 20 years in federal prison for a drug crime, announced United States Attorney Carol Casto. David Ellis Murray, 48, previously pleaded guilty to possession with intent to distribute fentanyl, which is anywhere from 25 to 50 times more potent than heroin.
Murray admitted that on October 20, 2016, the Metropolitan Drug Enforcement Network Team conducted a traffic stop of his vehicle. During the stop, officers recovered 1.13 grams of fentanyl from Murray. He later admitted that he intended to distribute the fentanyl. Officers then executed a search warrant at Murray’s residence on Lewis Street in Charleston and seized an additional 6.62 grams of fentanyl, as well as 7.37 pounds of crystal methamphetamine and a gun.
The Metropolitan Drug Enforcement Network Team 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.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including fentanyl. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Arizona Man Pleads Guilty to Intimidating Flight Crew and Flight Attendants Resulting in Emergency Landing in New MexicoRead the Press Release
ALBUQUERQUE – Robert Tomblin, 55, of Phoenix, Ariz., pled guilty today in federal court in Albuquerque, N.M., to interfering and intimidating flight crew members and flight attendants requiring an emergency landing in New Mexico.
Tomblin was arrested in Aug. 2017, on a criminal complaint charging him with assaulting and intimidating flight crew members and flight attendants while on an aircraft. According to the complaint, on Aug. 21, 2017, a flight from Roswell, N.M., to Phoenix, Ariz., was diverted to the Albuquerque airport due to Tomblin’s belligerent behavior towards the flight crew.
Tomblin was subsequently indicted on Sept. 6, 2017, and charged with interference and intimidating flight crew members and flight attendants by refusing to comply with necessary safety requirements on Aug. 21, 2017. During today’s proceedings, Tomblin pled guilty to the indictment without the benefit of a plea agreement.
According to court documents, approximately five minutes after takeoff, the airline captain was informed by a flight attendant that Tomblin, who was seated in an emergency exit row, appeared to be intoxicated, was acting belligerent and intimidating the flight crew. After observing that Tomblin appeared to be intoxicated, flight attendants asked Tomblin to move to a seat that was not in an emergency exit row due to safety concerns. Tomblin refused to comply with requests from flight attendants, got up from his seat during landing, continued to make phone calls during takeoff and landing of the airplane, and yelled profanity. After landing at the Albuquerque airport, Albuquerque Police Department (APD) officers attempted to escort Tomblin from the airplane, but Tomblin resisted attempts to restrain him, kicked an officer in the leg and head butted two officers before being carried off the plane by officers.
At sentencing, Tomblin faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the APD. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
Thursday 28 December 2017
Women Charged with Transporting Four Mexican National MinorsRead the Press Release
LAREDO, Texas – Two women are set to appear in federal court on allegations they transported four unaccompanied minors in the country, announced Acting U.S. Attorney Abe Martinez.
Olga Patricia Reyes, 30, from Laredo but resides in Nuevo Laredo, Mexico, and Leslie Chavira, 25, of Laredo, will appear for a preliminary examination and detention hearing today at 10:00 a.m. before U.S. Magistrate Judge Guillermo R. Garcia.
Both women are charged with transporting four unaccompanied minor children who are all citizens of Mexico.
On the evening of Dec. 20, 2017, Reyes applied for admission into the United States from Mexico at the Laredo Port of Entry accompanied by a minor child, according to the criminal complaint. She first claimed the child was a relative and allegedly presented a birth certificate as proof of citizenship. However, the investigation revealed she did not actually know the child.
The charges allege Reyes had previously used birth certificates to successfully smuggle three additional unaccompanied minor children into the United States from Mexico. Those children were ultimately found at Chavira’s Laredo residence, according to the charges.
“We applaud the excellent work of our frontline officers in uncovering the initial immigration violation and the spirit of teamwork between law enforcement that led to a positive outcome and location of three minor alien children,” said Customs and Border Protection (CBP) - Laredo Field Office Director David P. Higgerson.
“Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) works closely with its law enforcement partners in pursuit of identifying, arresting and bringing to justice those individuals suspected of human smuggling,” said HSI Special Agent in Charge Shane Folden. “We will continue to utilize our broad authorities to target those believed to engage in such practices and place personal profit ahead of public safety.”
If convicted, both women face up to 10 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation with the assistance of Border Patrol and the Laredo Police Department.
Assistant U.S. Attorney Julian Castaneda is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Vian Man Sentenced to 36 Months Probation for Interstate Transportation of Stolen PropertyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Tyler Wayne Jones, age 24, of Vian, Oklahoma, was sentenced to 3 years probation for Interstate Transportation Of Stolen Property, in violation of Title 18, United States Code, Sections 2314 and 2.
The Indictment alleged that on or about April 15, 2015, in the Eastern District of Oklahoma, the defendant, Tyler Wayne Jones, did unlawfully transport in interstate commerce stolen goods, wares and merchandise, that is, six (6) zero turn mowers, of the value of $5,000.00 or more, knowing the same to have been stolen.
The charge arose from an investigation by the Oklahoma State Bureau of Investigation, Sallisaw Police Department, the Sequoyah County Sheriff’s Office, the Fort Smith Police Department, the Sabastian County Sherriff’s Office, the Poteau Police Department, and the District 27 Drug Task Force.
United States Attorney Brian J. Kuester said, “This investigation and prosecution is a great example of the results that occur when citizens freely share information they believe to be suspicious and multiple law enforcement agencies from different jurisdictions work together. Officers and investigators from each jurisdiction that assisted in this case played a critical role in the thorough, professional investigation that allowed this office to prosecute Jones. I commend the officers for their work and those citizens that provided information that lead to Jones’s arrest.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.
United States Reaches Settlement with Elkton Internist to Resolve False Claims Act Allegations Relating to Medically Unnecessary ProceduresRead the Press Release
FOR IMMEDIATE RELEASE CONTACT ELIZABETH MORSE
www.justice.gov/usao/md (410) 209-4885
Baltimore, Maryland – Jui Chih Hsu, M.D., an internist in Elkton, has agreed to pay the United States $1,222,222.00 to settle claims that she submitted false claims to the United States for medically unnecessary injections and evaluation and management services that were not documented.
The settlement agreement was announced today by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Nick DiGuilio, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services and Maryland Attorney General, Brian Frosh.
In her practice, Dr. Hsu administered Vitamin B12 and Vitamin B complex injections. Medicare and Medicaid will reimburse Vitamin B12 injections in very limited circumstances, including in patients with pernicious anemia after a documented history of a failed course of Vitamin B tablets. Medicare and Medicaid do not cover Vitamin B12 injections. Additionally in her practice, Dr. Hsu performed routine evaluation and management services for her patients. Medicare and Medicaid do not reimburse for evaluation and management services that are done in conjunction with an injection because a provider is reimbursed for the evaluation needed to do the injection when the provider is reimbursed for the injection itself. Medicare and Medicaid will pay for evaluation and management service that is distinct from an injection procedure. Providers can signify that he or she did a separate and distinct evaluation and management service by using the modifier -25 when submitting the claim for payment.
According to the settlement agreement, Dr. Hsu submitted claims to Medicare and Medicaid for medically unnecessary injections of Vitamin B12 for treatment of chronic fatigue, a condition where reimbursement for Vitamin B12 injections is not permitted. Additionally, Dr. Hsu misrepresented to Medicare and Medicaid that the Vitamin B Complex injections, which are not covered by Medicare and Medicaid, were injections of Thiamine, which is covered by Medicare and Medicaid. Finally, Dr. Hsu inappropriately billed for evaluation and management services using the modifier -25 (significant, separately identifiable evaluation and management by the same physician on the same day of the procedure or other service) which Dr. Hsu failed to document that she in fact performed a separate and distinct evaluation and management service. Dr. Hsu denied the allegations.
This case arose from a recent initiative inside the U.S. Attorney’s Office. The United States Attorney’s Office has dedicated resources to enable it to review Medicare billing data. The review of that data has enabled the United States Attorney’s Office to identify areas of concern where it appears that billing irregularities may have taken place. Partnering with the affected agencies, the United States Attorney’s Office has developed the ability to investigate these billing irregularities to determine whether the matter is appropriate for treatment under the False Claims Act.
Acting U.S. Attorney Stephen M. Schenning commended the HHS Office of Inspector General for its work in the investigation. Mr. Schenning also thanked Assistant United States Attorney Thomas Corcoran, who handled the case.
Two Romanian Suspects Charged with Hacking of Metropolitan Police Department Surveillance Cameras in Connection with Ransomware SchemeRead the Press Release
WASHINGTON – A criminal complaint and arrest warrants were unsealed today charging two Romanian nationals with a conspiracy to illegally access approximately 123 computers associated with Metropolitan Police Department (MPD) surveillance cameras and to use those computers in connection with a scheme to distribute ransomware in January 2017.
U.S. Attorney Jessie K. Liu for the District of Columbia, and Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service, made the announcement.
Mihai Alexandru Isvanca, 25, and Eveline Cismaru, 28, of Romania, were arrested on Dec. 15, 2017, at the Otopeni airport in Bucharest, Romania. The complaint was filed under seal on Dec. 11, 2017, in the U.S. District Court for the District of Columbia. Both defendants are charged with conspiracy to commit wire fraud and conspiracy to commit various forms of computer fraud. Isvanca remains in custody in Romania and Cismaru is on house arrest there pending further legal proceedings.
As described in the affidavit in support of the complaint, on Jan. 12, 2017, the Secret Service was notified that a number of MPD surveillance cameras had been compromised. Agents from the Washington Field Office immediately launched an investigation. The investigation uncovered information that the MPD surveillance camera computers were compromised between Jan. 9 and Jan. 12, 2017, and that ransomware variants called “cerber” and “dharma” had been stored on the computers. Other evidence in the investigation revealed a scheme to distribute ransomware by email to at least 179,000 email addresses.
According to the complaint, further investigation showed that the two defendants, Isvanca and Cismaru, participated in the ransomware scheme using the compromised MPD surveillance camera computers, among others. The investigation also identified certain victims who had received the ransomware or whose servers had been accessed during the scheme.
This case was of the highest priority due to its impact on the Secret Service’s protective mission and its potential effect on the security plan for the 2017 Presidential Inauguration. In partnership with MPD’s Chief Technology Office, the Secret Service and MPD quickly ensured that the surveillance camera system was secure and operational prior to the Inauguration and continued to investigate the criminal offenses charged.
The investigation revealed no evidence that any person’s physical security was threatened or harmed due to the disruption of the MPD surveillance cameras.
The charges in criminal complaints are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The maximum penalty for a conspiracy to commit wire fraud is 20 years of incarceration. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The investigation into this matter was conducted by the Secret Service’s Washington Field Office. Assistance was provided by law enforcement partners in the National Crime Agency and Metropolitan Police in the United Kingdom, The Netherland’s National High Tech Crimes Unit, the Romanian National Police (Service for Combating Cybercrime), MPD, and the FBI’s Washington, D.C. and Houston Field Offices. The Office of International Affairs of the Department of Justice’s Criminal Division provided significant assistance.
The case is being prosecuted by the Cyber Crime Section of the U.S. Attorney’s Office for the District of Columbia.
Two Men Remain in Federal Custody on Federal Complaint for Sex Trafficking a Middle School StudentRead the Press Release
DALLAS — Shenandoah West Moneypenny, 34, of Gladewater, Texas, and Shawn Dale Sanders, 43, of Dallas, Texas, remain in federal custody on a federal criminal complaint for the sex trafficking of a 13-year-old female, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Moneypenny and Sanders are each charged with one count of conspiracy to use, persuade, induce, entice, and coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Both defendants were arrested on December 18, 2017 and will remain in federal custody pending trial.
According to the affidavit filed with the criminal complaint, in October 2017, a family member of a 13-year-old minor female (Victim) contacted a Garland Independent School District School Resource Officer after finding communications on the minor’s laptop computer between Victim and adult males. The family brought the laptop computer and Victim’s cellular phone to the School Resource Officer, who previewed the devices and observed sexually explicit communications.
During an interview with law enforcement, according to the affidavit, Victim disclosed that she had sexual contact with up to four adult men who she met online. When asked how she came to communicate with these men, Victim stated that she met a man online named “Aiden” and he put her in contact with other men to “meet up.” Aiden, who was later identified as Moneypenny, began to set up in-person meets for her through Craigslist advertisements that he placed. These advertisements sought men to meet Victim for sex. Responses to the Craigslist ads went directly to Moneypenny’s email account and, once he deemed the responder to be safe for Victim to meet, Moneypenny provided Victim with their contact information.
In August 2017, Victim met Sanders in response to the Craigslist ad. Sanders picked Victim up from the middle school and drove her to a local park where they had sexual conduct. During this meeting Sanders took sexually explicit pictures of Victim and sent them to Moneypenny as a trade-off for setting him up with the Victim. Sanders and Victim met approximately four times after that and engaged in sexual conduct.
Moneypenny received a total of 219 replies to the Craigslist advertisement, including Sanders reply.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The penalty for the offense as charged is not less than 15 years or more than 30 years in federal prison, a $250,000 fine and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and Garland Police Department are investigating. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Six Members of Saint Paul Street Gang “HAM Crazy” Indicted on Federal Firearms ChargesRead the Press Release
Acting United States Attorney Gregory G. Brooker, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Acting Special Agent in Charge Kirk Howard and Saint Paul Police Chief Todd Axtell today announced a federal indictment charging six members of a Saint Paul criminal street gang known as the HAM Crazy for conspiring to illegally possess firearms.
“This indictment represents the aggressive action this Office and our law enforcement partners are taking against gun violence in Saint Paul,” said Acting U.S. Attorney Gregory Brooker. “Working hand-in-hand with our partners at the ATF and Saint Paul Police Department, we are dedicating all necessary resources to investigate and prosecute the most violent offenders. This alarming uptick in gang activity and gun violence will not be tolerated in our cities and communities.”
“There are plenty of ways to settle disagreements between groups, but gun violence is not a method we will allow. The communities of Saint Paul deserve better,” said Acting Special Agent in Charge Kirk Howard of the Saint Paul Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “ATF, Saint Paul Police Department and the Department of Corrections have put forth maximum effort to reduce gun violence in Saint Paul. We’re happy to partner with the two agencies in this investigation and hope this indictment provides a word of warning to others who are inclined to be involved in this dangerous behavior.”
Saint Paul Police Chief Todd Axtell said, “Too many families are impacted by gun violence in Saint Paul. We welcome these indictments as they hold gun violence suspects responsible. We will continue to partner with our local and federal law enforcement agencies and rigorously pursue gun offenders whose crimes tear at the fabric of our community.”
According to the superseding indictment, since at least January 2014, defendants MARVELL VOSHON JEFFERSON, a/k/a “Vo,” a/k/a “Lil Vo,” CARMELO MANUEL MARRERO, a/k/a “Melo,” a/k/a “Mello,” CASEY JEMAR DAVIS, a/k/a “Casey Jermar Davis,” a/k/a “K Chop,” SHELBY DELANE ASHFORD, JR., a/k/a “Two Times,” PHILLIP DWAYNE JACKSON, a/k/a “Go,” a/k/a “Kid Go,” and NAKIA MARQUIRE MARTIN, a/k/a “Nakia Marquette Martin,” a/k/a “Freaky,” a/k/a “Freaky Nick,” have maintained active membership in the street gang known as the HAM Crazy. The main purpose of the HAM Crazy gang is to preserve and protect their territory, power, status, and reputation through the use of violence and intimidation against rival Saint Paul gangs, such as the Hit Squad.
According to the superseding indictment, since at least January 2014, the HAM Crazy gang has been in an ongoing gang war with several rival gangs, including the Hit Squad, that has resulted in gang members on both sides of the rivalry being shot and/or killed. HAM Crazy members and their rival gang members often use social media platforms, such as Facebook, YouTube, and Snapchat, as a way to disrespect, intimidate, and threaten rivals by brandishing firearms, displaying money, making gang signs, and publishing rap videos.
According to the superseding indictment, due to the ongoing gang war and the need for firearms to conduct gang-related activity, the defendants conspired to illegally obtain and jointly possess firearms. The defendants and other HAM Crazy members also attempted to buy, sell, trade, and obtain firearms using social media. All six defendants have prior convictions that prohibit them from legally possessing firearms.
According to the superseding indictment, the defendants and other HAM Crazy members conspired to illegally possess at least nine firearms during the timeframe of the superseding indictment.
Five of the defendants, JEFFERSON, DAVIS, ASHFORD, JACKSON, and MARTIN, have made their initial appearances in federal court and have been arraigned on the charges in the superseding indictment. One defendant, MARRERO, remains at large.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Saint Paul Police Department, and the Minnesota Department of Corrections.
Assistant U.S. Attorneys Benjamin Bejar and Thomas Calhoun-Lopez are prosecuting the case.
Defendant Information:
MARVELL VOSHON JEFFERSON, a/k/a “Vo,” a/k/a “Lil Vo,” 23
Saint Paul, Minn.
Charges:
- Conspiracy – Felon in possession of a firearm, 1 count
- Felon in possession of a firearm, 1 count
CARMELO MANUEL MARRERO, a/k/a “Melo,” a/k/a “Mello,” 23
Maplewood, Minn.
Charges:- Conspiracy – Felon in possession of a firearm, 1 count
- Felon in possession of a firearm, 1 count
- Aiding and abetting felon in possession of firearms, 1 count
CASEY JEMAR DAVIS, a/k/a “Casey Jermar Davis,” a/k/a “K Chop,” 23
Saint Paul, Minn.
Charges:- Conspiracy – Felon in possession of a firearm, 1 count
- Aiding and abetting felon in possession of firearms, 1 count
SHELBY DELANE ASHFORD, JR., a/k/a “Two Times,” 23
Columbia Heights, Minn.
Charges:- Conspiracy – Felon in possession of a firearm, 1 count
- Aiding and abetting felon in possession of firearms, 1 count
PHILLIP DWAYNE JACKSON, a/k/a “Go,” a/k/a “Kid Go,” 23
Lino Lakes, Minn.
Charges:- Conspiracy – Felon in Possession of a Firearm, 1 count
- Prohibited person in possession of firearm, 1 count
NAKIA MARQUIRE MARTIN, a/k/a “Nakia Marquette Martin,” a/k/a “Freaky,” a/k/a “Freaky Nick,” 24
Moose Lake, Minn.
Charges:- Conspiracy – Felon in possession of a firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Registered Sex Offender Sentenced to 252 Months in Prison for New Child Porn CrimeRead the Press Release
DAYTON – Jason Alexander Bigler, 46, of Dayton, was sentenced in U.S. District Court to 252 months in prison and a lifetime of supervised release for knowingly distributing child pornography of children under the age of 12. Bigler is a registered sex offender because of a prior federal conviction of possessing child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and members of the FBI’s Child Exploitation Task Force announced the sentence handed down by Senior U.S. District Judge Thomas M. Rose.
According to the statement of facts attached to the plea agreement, which was entered into in September, Bigler distributed, received, transported and possessed more than 2,150 images and 215 videos of child pornography. The images and videos showed adult males raping and abusing pre-pubescent and infant females.
Bigler used Kik and Omegle messenger applications to meet and communicate with the individuals with whom he traded child pornography.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Dwight K. Keller, who is representing the United States in this case.
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Okmulgee Man Sentenced to 168 Months, Supervision for Life for Material Involving Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that John Carl Berryhill, age 53, of Okmulgee, Oklahoma, was sentenced to 168 months imprisonment, and life supervised release for Possession Of Certain Material Involving The Sexual Exploitation Of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
The Superseding Indictment alleged that from between on or about January 8, 2014 to on or about February 2, 2017, in the Eastern District of Oklahoma, the defendant, John Carl Berryhill, did knowingly possess, attempt to possess and access with intent to view, matters which contained visual depictions, as that term is defined in Title 18, United States Code, Section 2256(5), which said visual depictions involved the use of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce by computer.
The charges arose from an investigation by the Federal Bureau of Investigation.
United States Attorney Brian J. Kuester said, “Berryhill’s sentence not only brings him to justice, but should serve as a warning and deterrent to others who might consider possessing child pornography. The FBI and the United States Attorney’s Office are committed to investigating and prosecuting those that exploit children, including those that possess, share, or view child pornography. I commend the FBI agents for their thorough and professional investigation, and the members of this office who worked diligently to prosecute Berryhill.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Edward Snow represented the United States.
Louisiana Man Charged in $3 Million Kickback Scheme InvolvingRead the Press Release
DALLAS — Slater Washburn Swartwood, Sr., of Louisiana, has been charged with money laundering for his role in a fraud scheme that involved $3 million in illegal bribe and kickback payments, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
The criminal felony Information filed yesterday charges Swartwood with one count of conspiracy to commit money laundering. Signed plea papers were also filed indicating Swartwood’s intent to plead guilty. Swartwood faces a maximum penalty of imprisonment not to exceed five years and a $250,000 fine. Restitution could also be ordered. An arraignment date has not yet been set.
According to the filed Information and plea papers, Swartwood started working with Person A as a real estate adviser in approximately 1985. In approximately 2010, he began doing real estate consulting for Company A, at first as an employee and later as a consultant. Company A, which was owned and controlled by Person A, sold cameras and related services for school buses. Company A entered into various contracts and a licensing agreement with a Texas state agency acting through its superintendent, Person B. Under these contracts and the licensing agreement, the state agency purchased millions of dollars of camera equipment from Company A.
Between 2011 and 2016, according to documents filed in the case, Person A provided Swartwood with approximately $2 million to funnel to Person B through Swartwood’s companies, Elf Investments, Cambridge Realty Group, LLC, and Anrock Realty Services, LLC, in return for further agreements and camera-equipment orders.
The investigation was conducted by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Andrew Wirmani and Joseph Magliolo are in charge of the prosecution.
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Long-Time Bonanno Crime Family Member Sentenced to 96 Months’ Imprisonment for ArsonRead the Press Release
Earlier today, in federal court in Brooklyn, long-time Bonanno crime family member Vincent Asaro was sentenced by United States District Judge Allyne R. Ross to 96 months’ imprisonment for violating the Travel Act by using a telephone to order that a vehicle be burned. Asaro previously pled guilty to this crime on June 27, 2017. In sentencing Asaro, Judge Ross found that Asaro was a long-time member of the Bonanno organized crime family who had participated in, among other crimes, the 1969 murder of Paul Katz, the 1978 robbery of the Lufthansa Airlines Terminal at John F. Kennedy Airport, and that as of 2013, Asaro was actively involved in loansharking. Asaro was also ordered to pay $21,276 in restitution for the damages to the car burned in the arson.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and 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, announced the sentence.
“Today’s sentence holds Asaro accountable not only for using his power as a member of organized crime to address a perceived slight by another motorist, but for a lifetime of violent criminal activity,” stated Acting United States Attorney Rohde. “This Office, together with our partners at the FBI, will continue to investigate and prosecute members and associates of organized crime and eliminate the danger they pose to members of our community.”
“An unfortunate chance encounter led an unsuspecting motorist to become embroiled in a high-speed chase at the hands of an enraged Asaro,” stated FBI Assistant Director-in-Charge Sweeney. “Unsatisfied with the outcome of his pursuit, Asaro dug his heels in. He contacted an associate with access to a local law enforcement database, identified the license plate information of the car, and put in motion a plan to set fire to the vehicle in front of the victim’s residence. Once the arson had occurred, at the hands of those directed to do so, Asaro insisted on checking in person to ensure his orders had been followed. The anger that propelled Asaro to action is reminiscent of so many scripted Hollywood dramas, but unlike the fame and fortune of the big screen, Asaro’s story ends on a different note. Today’s sentence proves that living life in the fast lane is sure to be short lived.”
As described in court filings and statements made during court appearances, Asaro was inducted into the Bonanno family more than 40 years ago and has previously held the position of captain and member of the family’s ruling panel. In early April 2012, Asaro was traveling in a car in Howard Beach when he became enraged at another motorist who had switched lanes in front of Asaro at a traffic light. Asaro chased the other car at a high rate of speed. The victim drove into Ozone Park while trying to call the police and describe where he was. When the victim arrived in an area he knew to contain a red light camera, he intentionally circled the block trying to set off the cameras in an attempt to alert the police to his location.
Shortly thereafter, Asaro contacted an associate of the Gambino organized crime family of La Cosa Nostra who Asaro knew to have access to local law enforcement databases. The next day, a local law enforcement database accessed the license plate information for the plate of the car the victim was driving, which revealed the victim’s address. Asaro then directed an associate of the Bonanno organized crime family (“Associate-1”) to set fire to the victim’s car. Associate-1 then recruited Matthew Rullan and John J. Gotti, Asaro’s co-defendants, to help him carry out the arson.
Associate-1, Gotti and Rullan drove in Gotti’s Jaguar sedan to a service station in the pre-dawn hours of April 4, 2012 where they filled a container with gasoline and proceeded to the residence of the victim. Associate-1 doused the vehicle with gasoline, and Rullan ignited it. An NYPD police officer in an unmarked car observed the crime in progress and pursued the Jaguar on a high-speed chase through the streets of Queens until he terminated the pursuit for safety reasons due to Gotti’s reckless driving. The following day, Associate-1 told Asaro about the arson, and Asaro drove to the auto body shop where the burned car had been towed to confirm that his order had been carried out.
In imposing the sentence, Judge Ross concluded that Asaro’s history and characteristics, specifically his longtime association with organized crime and his history of participating in crimes of violence, including the 1969 murder of Paul Katz and the 1978 armed robbery of over $6 million dollars in United States currency and jewelry from the Lufthansa Airlines Terminal, weighed in favor of a significant custodial sentence. Additionally, Judge Ross found that the nature and circumstances of the charged crime indicated that the defendant remains a danger to the community.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nicole M. Argentieri, Lindsay K. Gerdes, and Keith D. Edelman are in charge of the prosecution.
The Defendant:
VINCENT ASARO
Age: 82
Queens, NY
E.D.N.Y. Docket No. 17-CR-127 (ARR)
Lima men sentenced to life in prison and 30 years in prison for sex trafficking conspiracy involving teen girlsRead the Press Release
A Lima man was sentenced to life in prison and another was sentenced to 30 years in prison for their role in a conspiracy in which girls, then 14 and 16 years old, were forced into commercial sex acts, said U.S. Attorney Justin E. Herdman, FBI Special Agent in Charge Stephen D. Anthony and Lima Police Chief Kevin Martin.
U.S. District Judge Jack Zouhary sentenced Lorenzo Young to life in prison and Aundre Davis to 30 years in prison. Davis and Lorenzo Young were convicted by a jury earlier this year on charges including conspiracy to engage in sex trafficking of minors, sex trafficking of a minor and other crimes.
Megan Hitt, Randy Thompson and three other people previously pleaded guilty to crimes related to the conspiracy and have been sentenced to prison.
Young, Davis, Thompson and Hitt conspired to cause girls, aged 14 and 16, to engage in commercial sex acts in Lima and Fort Wayne, Indiana. They did this by taking and posting sexually explicit photos of the girls on backpage.com, transporting the girls, renting motel rooms for them and negotiating prices. This took place between November 2015 and January 2016, according to court documents and trial testimony.
“These defendants preyed on teen girls so they could line their pockets with money,” Herdman said.
“These individuals violated the rights of some of our most vulnerable in our community - the children,” Anthony said. “The FBI will continue working with our law enforcement partners to aggressively pursue justice for human trafficking victims and to put their perpetrators behind bars."
“Human trafficking is a devastating crime that must be stopped. It victimizes people within every segment of society throughout our nation,” Martin said. “I want to thank the FBI and U.S. Attorney’s Office for their help in enforcing the law against those who will engage in human trafficking within the Lima community. We are grateful for the cooperative working relationship we have with them and the many other local, state and federal law enforcement agencies that are working together to make human trafficking a thing of the past. The Lima Police Department cannot accomplish this alone.”
This case was investigated by the Federal Bureau of Investigation’s Toledo office and the Lima Police Department. It is being prosecuted by Assistant U.S. Attorney Alissa M. Sterling.
Las Vegas Man Sentenced to 10 Years in Prison for Bank RobberyRead the Press Release
LAS VEGAS, Nev. - A Las Vegas, Nevada man was sentenced today to 120 months in prison for robbing a bank located inside a grocery store, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Anthony Donnell Tyner, 40, previously pleaded guilty to one count of bank robbery. In addition to the prison term, U.S. District Judge Andrew P. Gordon sentenced Tyner to three years of supervised release to follow his term of imprisonment. Tyner is a former felon with previous bank robbery convictions.
According to the criminal complaint, on Nov. 18, 2016, Tyner, who wore a fake gray beard, entered the U.S. Bank located inside the Albertson’s at 10140 West Flamingo Rd. He handed the bank teller a demand note and threatened to shoot the teller. Tyner stole $493 from the bank.
The case was investigated by the Federal Bureau of Investigation and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Phillip N. Smith Jr. prosecuted the case.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao_nv.
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Lake Railway Pays $1.08 Million in Settlement for Modoc Forest FiresRead the Press Release
SACRAMENTO, Calif. — LRY, LLC d/b/a Lake Railway has paid $1.08 million to settle allegations by the United States relating to a pair of wildfires that burned 840 acres of national forest land, U.S. Attorney Phillip A. Talbert announced today.
The settlement represents a 100 percent recovery of the United States’ suppression costs, plus interest and penalties.
The “Gulch Fire” ignited in Modoc National Forest on July 3, 2014. The fire began along railroad tracks near Howard’s Gulch and swept outward — scorching 791 acres of national forest land. The “Howard’s Fire” ignited along neighboring tracks on May 1, 2014; it burned an additional 49 acres. Investigators attributed both fires to sparks from an improperly maintained engine.
“At a time when the Forest Service is spending more than half of its budget to suppress fires, being able to recover costs is crucial to our ability to restore these burned landscapes to a healthy and resilient condition,” said U.S. Forest Service Pacific Southwest Regional Forester Randy Moore.
Lake Railway is a rail line that operates in Northern California. Today’s settlement does not constitute an admission of liability by the company.
This case was the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Benjamin J. Wolinsky pursued the case.
Jefferson City Man Charged with Illegal Firearms after Officers Confiscated 50 WeaponsRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man who tried to sell firearms to a local pawn shop was charged in federal court today with illegally possessing firearms after law enforcement officers confiscated 50 weapons from him, including several stolen guns.
Jeremy L. Roark, 32, of Jefferson City, was charged with being a felon in possession of firearms in a complaint filed in the U.S. District Court in Jefferson City, Mo.
Today’s federal criminal complaint alleges that Roark was in possession of a Colt .45-caliber revolver on Dec. 15, 2017.
According to an affidavit filed in support of the complaint, Roark attempted to sell six firearms to River City Pawn and Gun in Jefferson City on Dec. 15, 2017. The owner told police officers that Roark brought six firearms to the business: a Colt .45-caliber revolver, a Taurus .38-caliber revolver, a Sig Sauer .45-caliber pistol, a Ruger .22-caliber revolver, a Ruger .357-caliber magnum revolver and a Ruger .45-caliber revolver. Roark also allegedly discussed having as many as 70 additional firearms for sale that he could bring to River City Pawn and Gun. The owner didn’t pay Roark for the six guns that were left, and after having no contact with Roark, called the police on Tuesday, Dec. 26, 2017.
The next day, investigators interviewed Roark, who acknowledged that he had taken the guns to River City Pawn and Gun. Roark also admitted that he had been a weekly user of methamphetamine for approximately two years.
According to court documents, law enforcement officers recovered approximately 50 firearms from Roark during the course of the investigation. At this time, the investigation has determined that four of those firearms were stolen.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Roark has prior felony convictions for distributing or manufacturing a controlled substance and a prior felony conviction for driving under the influence of alcohol. Roark also has been charged with first degree assault and is on bond in that case.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Jefferson City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Florida Resident Sentenced to Prison for Stolen Identity Refund FraudRead the Press Release
A Lauderhill, Florida, resident was sentenced to 48 months in prison for his role in a stolen identity refund fraud scheme, announced Principal Deputy Assistant Attorney General Richard Zuckerman of the Justice Department’s Tax Division and Acting United States Attorney Benjamin G. Greenberg of the Southern District of Florida.
According to documents and information provided to the court, from approximately 2008 through January 2015, in Broward and Miami-Dade Counties, Evens Julien, 53, and others, used stolen IDs, including the personal identifying information of prisoners and deceased individuals, to file over 2,000 tax returns with the Internal Revenue Service (IRS). These fraudulent returns sought more than $2 million in refunds. Julien and his co-conspirators recruited others to obtain Electronic Filing Identification Numbers from the IRS in their names and used the EFINs to file the fraudulent returns. They directed the refunds to debit cards and treasury checks and had them mailed to South Florida addresses. They then cashed the fraudulently obtained refund checks at check cashing stores and used Western Union and ATMs to withdraw the funds.
Julien pleaded guilty in October to conspiring to defraud the IRS, commit wire fraud, and commit aggravated identity theft and aggravated identity theft. In addition to the term of prison imposed, U.S. District Judge Federico A. Moreno ordered Julien to serve four years of supervised release and to pay $1,169,000 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and Acting U.S. Attorney Greenberg commended special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Federal Jury Finds Edina Chiropractor and His Patient Recruiters Guilty of Insurance Fraud ConspiracyRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the conviction of ADAM JOHN BURKE, 33, ABDIRAHIN KHALIF IBRAHIM, 26, and DANA ENOCH KIDD, 36, for their roles in a multi-million dollar insurance fraud conspiracy. BURKE, IBRAHIM, and KIDD were initially indicted on December 20, 2016, and following a two-week trial before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn., the jury convicted BURKE, IBRAHIM, and KIDD on charges of conspiracy and mail fraud.
Assistant U.S. Attorney David Maria said, “Adam Burke, a licensed Doctor of Chiropractic, used his professional position and private medical practice to perpetrate an egregious fraud scheme that cost automobile insurers and, ultimately, policyholders in Minnesota, millions of dollars. We are thankful for the hard work and dedication put into this case by our partners at the Commerce Fraud Bureau and the FBI.”
“Insurance fraud costs all Minnesotans in the form of higher premiums,” said Commerce Commissioner Jessica Looman. “The Commerce Fraud Bureau investigates sophisticated fraud schemes and works closely with our other law enforcement partners to bring criminals perpetrating fraud to justice. Today’s verdict makes it clear that Minnesota does not tolerate insurance fraud.”
“The defendants in this case defrauded automobile insurance companies by submitting false no-fault insurance claims and subsequently received reimbursements for chiropractic services that were either not medically necessary or were never rendered. Their greed had real consequences for the people of Minnesota in terms of higher insurance costs and tax dollars spent investigating their illegal conduct,” said Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton. “The FBI and its partners will continue to aggressively pursue insurance fraud schemes to protect the public from dishonest fraudsters damaging our insurance companies, regardless of their position in the medical community.”
As proven at trial, beginning in at least 2012, BURKE, a licensed Doctor of Chiropractic, participated in a scheme to defraud automobile insurance companies by hiring patient recruiters, known as “runners,” to solicit automobile accident victims to attend treatments at BURKE’S clinic, Burke Chiropractic Center, P.A. (“Burke Chiropractic”). BURKE typically paid the runners, including IBRAHIM and KIDD, between $1,000 and $2,000 for each patient they brought to Burke Chiropractic so that BURKE could bill services to the insurance companies. To disguise the payments, BURKE would write checks to the runners with false descriptions in the memo lines such as “marketing,” “consulting fee,” or “pt transportation.” BURKE also required the runners to form corporate entities, such as limited liability companies, with names that sounded like legitimate businesses that performed marketing or transportation services, again, to hide the true nature of the payments. BURKE wrote more than 280 checks, totaling more than $590,000.
As proven at trial, BURKE structured the scheme in a way that would maximize Burke Chiropractic’s billings to the insurance companies. BURKE typically withheld kickback payments to the runners until after the patients had attended a certain number of treatment sessions. Frequently, the runners paid a portion of the kickback payments they had received from BURKE to the patients they referred in order to make sure that the patients attended the minimum number of treatment sessions. Thus, the kickback payments were intended to ensure that patients came for treatments at Burke Chiropractic because of the payments, as opposed to the necessity and reasonableness of the treatments. As an additional incentive to continue attending treatments, BURKE often referred patients to personal injury attorneys, and BURKE instructed the runners to advise patients that following through on all treatment sessions would result in a bigger settlement from the insurance company. As a result of this fraud scheme, BURKE and Burke Chiropractic billed millions of dollars to the automobile insurance companies.
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the Federal Bureau of Investigation. Additional assistance was provided by the Minneapolis Police Department, Saint Paul Police Department, Minnesota State Patrol, and Homeland Security Investigations.
This case is being prosecuted by Assistant U.S. Attorneys David M. Maria and John E. Kokkinen.
Defendant Information:
ADAM JOHN BURKE, 33
Minneapolis, Minn.
Convicted:
- Conspiracy to commit mail fraud, 1 count
- Mail fraud, 12 counts
ABDIRAHIN KHALIF IBRAHIM, 26
Saint Paul, Minn.
Convicted:
- Conspiracy to commit mail fraud, 1 count
- Mail fraud, 3 counts
DANA ENOCH KIDD, 36
Elk River, Minn.
Convicted:
- Conspiracy to commit mail fraud, 1 count
- Mail fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Dunbar man pleads guilty to federal drug chargeRead the Press Release
CHARLESTON, W.Va. – A Dunbar man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Rock Hudson Williams, also known as “Rocky,” 60, entered his guilty plea to aiding and abetting the distribution of crack.
Williams admitted that on July 24, 2015, he sold crack to a confidential informant working with the Metropolitan Drug Enforcement Network Team. The drug deal took place in the Dollar General parking lot in Cross Lanes.
Williams faces up to 20 years in federal prison when he is sentenced on March 29, 2018.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney John J. Frail is responsible for the prosecution. The plea hearing was held before Chief United States District Judge Thomas E. Johnston.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including crack.
The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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CLT Logging Inc. Pays $1.95 Million in Settlement for Six Rivers and Klamath National Forest FiresRead the Press Release
SACRAMENTO, Calif. — CLT Logging, Inc. has paid $1.95 million to settle allegations by the United States relating to a wildfire that scorched 318 acres of national forest land, U.S. Attorney Phillip A. Talbert announced today.
The “Dillon Fire” started in Siskiyou County on August 3, 2012. Investigators determined the cause to be a trailer carrying improperly secured logging equipment, which dragged against California Highway 96, throwing sparks that ignited dry grass in 21 separate locations. The fire burned 182 acres in Six Rivers National Forest and 136 acres in Klamath National Forest.
“As wildfires continue to sweep across California, my office stands committed to protecting our national forests and holding accountable those who endanger them,” U.S. Attorney Talbert said.
“For the first time in its 112-year history, the U.S. Forest Service is spending more than 50 percent of its budget to suppress the nation’s wildfires,” said U.S. Forest Service Pacific Southwest Regional Forester Randy Moore. “Recoveries like this one help to restore these severely burned landscapes to a healthy and resilient condition.”
CLT Logging, Inc. is a timber company that conducts operations throughout Northern California. Additional parties to the settlement include Chuck L. Transportation, LLC and Barry Scott Peters. Today’s settlement does not constitute an admission of liability by the parties.
This case was the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Benjamin J. Wolinsky pursued the case.
Air Force Reservist Sentenced to 72 Months in Prison for RapeRead the Press Release
DAYTON – Kyle Jordan, 31, of Franklin, Ohio was sentenced in U.S. District Court to 72 months in prison for one count of sexual abuse.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Lt. Col. Randal Pendleton, Commander, Air Force Office of Special Investigations 10th Field Investigations Squandron, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigations (FBI), announced the sentence handed down by U.S. District Judge Walter H. Rice.
According to the signed Statement of Facts attached to the plea agreement, in December 2015, Jordan sexually assaulted an unconscious woman while staying at a Temporary Lodging Facility located on Wright-Patterson Air Force Base.
Jordan raped the victim in a bedroom after they both consumed alcohol.
Jordan pleaded guilty to the sexual abuse count in January.
U.S. Attorney Glassman commended the investigation of this case by the Air Force OSI and FBI, as well as Assistant United States Attorneys Andrew J. Hunt, and Amy M. Smith, who are representing the United States in this case.
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Wednesday 27 December 2017
Wheeling man sentenced for cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Michael E. Stradwick, of Wheeling, West Virginia, was sentenced today to 84 months incarceration for distributing cocaine, United States Attorney Bill Powell announced.
Stradwick, age 38, pled guilty to one count of “Possession with Intent to Distribute Cocaine Base” in October 2017. The crime occurred in January 2017 in Wheeling, Ohio County.
Assistant U.S. Attorney Randolph J. Bernard and Special Assistant U.S. Attorney P. Anthony Martin prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.