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8 February 2018
Olney Man Pleads Guilty to Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – Mehlek Dawveed, age 51, of Olney, Maryland, pleaded guilty today to wire fraud stemming from the filing of fraudulent tax returns, in which he received one fraudulent refund of more than $970,000.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation.
According to his plea agreement, from 2011 through 2014 Dawveed filed fraudulent Income Tax Returns for 2010 and 2011 that resulted in him receiving a refund in the amount of $977,558. Upon receipt of the funds, Dawveed wired the money from a bank in Kansas City, Missouri to his account in Maryland.
Using part of the fraudulently obtained funds, Dawveed paid the remaining $83,837 balance on the mortgage for his residence in Olney, Maryland and deposited a $250,000 check into a bank account controlled by Dawveed’s wife. Dawveed wrote several other checks into accounts controlled by him or close associates and wrote checks to various individuals and family members and for his own personal expenses.
On February 18, 2012, Dawveed filed a fraudulent Income Tax Return for 2011 in which he requested a refund in the amount of $1,324,961. This falsely requested refund was not issued. On February 27, 2012, Dawveed then filed a 2010 Form 1040X, Amended U.S. Individual Income Tax Return, where he changed his taxable interest income from $1,486,902 to $0 and stated: “we now beckon you to accept our humblest apology for the ‘Unintentional Errors’ made during our 1040 filing for Tax Year 2010 for they were not done with ‘Malicious Intent.’” The form falsely stated: “In ‘Good Faith’ we submitted a Payment of $5,000,000 Million Dollars to the IRS on January 31, 2012 in hopes of settling the remaining ‘Debt’ from our 1040 Tax Filing for Year 2010.” No such $5,000,000 payment was ever made.
As part of the plea agreement, the Court will enter a forfeiture order for the fraudulently received funds as well as his Olney residence, which he paid off with the fraudulent tax refund money.
Dawveed faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for May 21, 2018 at 2 p.m.
Acting United States Attorney Stephen M. Schenning commended the IRS for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney’s Kelly O. Hayes and Sean R. Delaney who are prosecuting the case.
Oklahoma Man Pleads Guilty to Child Pornography PossessionRead the Press Release
An Oklahoma man pleaded guilty today to possession of child pornography, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney R. Trent Shores of the Northern District of Oklahoma.
Thaddus Caves, 40, of Tulsa, Oklahoma, pleaded guilty to one count of possession of child pornography before U.S. District Judge John E. Dowdell. Sentencing is set for May 8.
“This prosecution is another example of law enforcement working together to protect the most vulnerable among us--our children,” said U.S. Attorney Shores. “Predators will be pursued, investigated, prosecuted, and most importantly, held accountable by my office.”
According to admissions made in connection with the plea agreement, in October 2016, Caves knowingly possessed visual depictions of minors engaging in sexually explicit conduct. The depictions included at least one prepubescent minor under the age of 12-years-old.
The charges are the result of an investigation by the FBI’s Internet Crimes Against Children Task Force. The matter is being prosecuted by Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jeff A. Gallant of the Northern District of Oklahoma.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oakdale prisoner pleads guilty to assaulting fellow inmateRead the Press Release
LAKE CHARLES, La. – United States Attorney Alexander C. Van Hook announced that an Oakdale inmate pleaded guilty Wednesday to assaulting another inmate.
Frank Quinton Gaitor, 49, an inmate at the Federal Correctional Center, Oakdale, La., pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of assault within maritime and territorial jurisdiction. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Gaitor assaulted and intentionally struck a fellow inmate on January 2, 2016 at the Federal Correctional Center in Oakdale. The assault left the inmate with serious bodily injuries.
Gaitor faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of April 17, 2018.
The FBI and U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorneys David J. Ayo and Jamilla A. Bynog are prosecuting the case.
North Versailles Man Pleads Guilty in Cocaine and Fentanyl Distribution ConspiracyRead the Press Release
PITTSBURGH - A resident of North Versailles, Pennsylvania, pleaded guilty yesterday in federal court to conspiring to distribute narcotics, United States Attorney Scott W. Brady announced today.
Dawndre Bivins, 30, pleaded guilty to one count of conspiracy, between March and August 2017, to distribute cocaine and fentanyl. In connection with the guilty plea, the court was advised that Bivins was responsible for the distribution of 1.9 kilograms of cocaine and 40 grams of fentanyl, which he purchased from his codefendant, Skyler Carter, in the Clairton, Pennsylvania area. He is the fourth of 21 defendants charged to enter a plea of guilty.
Judge Arthur J. Schwab scheduled sentencing for June 26, 2018, at 10 a.m. Bivins has a prior felony drug conviction, and as such, he is subject to enhanced penalties. The law provides for a maximum total sentence of 30 years in prison, a fine of not more than $2 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Bivins remains incarcerated pending the sentencing hearing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
New York City Correction Officers Charged with Smuggling Narcotics into City Prison FacilitiesRead the Press Release
A six-count indictment was unsealed today in federal court in Brooklyn charging seven defendants with conspiring to bribe correction officers employed by the New York City Department of Corrections (“DOC”) as part of a narcotics smuggling conspiracy. The defendants’ arraignment is scheduled for this afternoon before United States Magistrate Judge James Orenstein.
As alleged in the indictment, the defendants conspired to smuggle marijuana and other contraband into DOC prison facilities with the assistance of New York City Department of Correction Officers Christian Mizell and Carl Noel. Defendants Warren Green and Patrick Johnson, both incarcerated on unrelated felony offenses, arranged for marijuana and other contraband to be packaged and delivered covertly to the correction officers by defendants Robert Martino, Malik Holloway and Asha Patterson. The Correction Officers received thousands of dollars in bribes to smuggle the contraband past DOC security for eventual distribution inside the prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Mark G. Peters, Commissioner, New York City Department of Investigation (DOI), James P. O’Neill, Commissioner, New York City Police Department (NYPD), and George P. Beach, Superintendent, New York State Police, announced the charges.
“The honesty and integrity of correction officers is critical to the orderly running of a prison,” stated United States Attorney Donoghue. “When the defendant correction officers betrayed the trust placed in them by the City of New York, they not only committed serious crimes but also potentially jeopardized the safety of staff and inmates. This Office and our law enforcement partners are committed to identifying and prosecuting corrupt correction officers who accept bribes to smuggle contraband into prison facilities.”
“Drug traffickers are notorious for their smuggling methods, but this case demonstrated the defendants’ ability to bypass security altogether,” stated DEA Special Agent-in-Charge Hunt. “With two correction officers as members of the organization, the defendants allegedly pushed contraband into prison for resale to inmates. Today’s arrests are a result of law enforcement partnerships and hard work.”
“This investigation demonstrates again a pattern of misconduct in our City’s jails: outside civilians working with Correction Officers and DOC employees to smuggle narcotics and other contraband to inmates on the inside,” stated DOI Commissioner Peters. “DOI and its partners, including the U.S. Attorney for the Eastern District, have been cracking down on these illegal operations to stem the flow of contraband, while also working towards critical reforms in DOC’s front-gate screening protocols to shore up security at these facilities.”
“Due to the hard work and cooperation between law enforcement partners at all levels, this smuggling conspiracy was uncovered and shut down,” stated NYSP Superintendent Beach. “This sends a strong message that we will not tolerate such crimes, especially when they are perpetuated by individuals in a place of authority who have been entrusted with upholding the law. Such criminals will be prosecuted to the fullest.”
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum sentence of five years imprisonment.
The government’s case is being prosecuted by Assistant United States Attorney Erik Paulsen of the Office’s Public Integrity Section and Nomi Berenson of the Office’s International Narcotics and Money Laundering Section.
The Defendants:
Christian MIzell
Age: 48
Queens, New YorkCARL NOEL
Age: 32
New York, New YorkWARREN GREEN
Age: 40
Pine City, New YorkPATRICK JOHNSON
Age: 27
Bronx, New YorkROBERT MARTINO
Age: 37
Queens, New YorkMALIK HOLLOWAY
Age: 22
Bronx, New YorkASHA PATTERSON
Age: 43
Queens, New YorkE.D.N.Y. Docket No. 18-CR-60 (PKC)
New Orleans Man Pleads Guilty to Embezzling over $437,000 from Local EmployerRead the Press Release
U.S. Attorney Duane A. Evans announced that WAYNE SONIAT, age 61, of New Orleans, pled guilty today after previously being charged with a two-count Bill of Information for wire fraud and making false statements on federal income tax returns.
According to court documents, SONIAT was employed as a warehouse manager for a New Orleans-based food production company headquartered in Metairie, Louisiana, which also operated a manufacturing plant in Reserve, Louisiana (“Company A”). SONIAT was responsible for, among other things, ensuring that employees followed appropriate procedures, keeping track of when temporary employees worked, and submitting the requisite paperwork, including time sheets, to ensure that Company A paid the temporary employees and the staffing agency through whom the temporary employees were acquired for the time the temporary employees worked. Between about November 2009 and October 2014, SONIAT embezzled approximately $437,346 from Company A in a series of approximately 200 wire transfers, without Company A’s knowledge or authorization. SONIAT did so by signing and submitting paperwork, including time sheets, indicating that temporary, contract employees (“ghost employees”) had performed work for Company A when, in fact, they had not. SONIAT obtained debit cards in the names of the ghost employees onto which payments were made for the time they allegedly worked. SONIAT then used the money to pay for personal expenses to withdraw cash at area ATMs. Additionally, SONIAT failed to report the income from his scheme on his federal income tax returns, which resulted in a loss to the United States Government in the form of tax due and owing in the amount of approximately $43,885.
SONIAT faces up to twenty-three (23) years imprisonment. Sentencing before Judge Feldman has been scheduled for May 16, 2018.
U.S. Attorney Evans praised the work of the Internal Revenue Service – Criminal Investigations in investigating this matter, with assistance from the United States Secret Service, the St. John the Baptist Sheriff’s Office, and the Louisiana Financial Crime Task Force. The case is being prosecuted by Assistant United States Attorney Jordan Ginsberg.
Navajo Man Sentenced to Federal Prison for Robbery of Community StoreRead the Press Release
PHOENIX – This week, Antonio Yazzie, 25, of Lukachukai, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge Stephen M. McNamee to 46 months in prison followed by a term of 3 years of supervised release. Yazzie had previously pleaded guilty to robbery.
On Jan. 18, 2017, Yazzie entered the Totsoh Trading Post on the Navajo Nation Indian Reservation and brandished a box cutter. Yazzie threatened a store employee and demanded the employee give him money from the cash register. The victim complied with Yazzie’s demands. The victim is also a member of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Police and Criminal Investigations. The prosecution was handled by Tracy Van Buskirk, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08037-PCT-SMM
RELEASE NUMBER: 2018-012_Yazzie
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Monroe County Man Guilty of Heroin Trafficking and Gun ChargesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Laurence Cadogan, age 33, of Stroudsburg, pleaded guilty today to charges of heroin trafficking and unlawfully possessing a firearm in furtherance of drug trafficking, before U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney David J. Freed, Cadogan, admitted to possessing with intent to distribute between 60 grams and 80 grams of heroin and unlawfully possessing two firearms in furtherance of drug trafficking. The crimes allegedly occurred on October 26, 2016, in Tannersville. Police and federal agents seized more than 3000 bags of heroin and two firearms during the investigation. Cadogan also agreed to forfeit the two firearms seized by agent.
Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing will be scheduled after the submission of a pre-sentence report to the court.
Cadogan was indicted by a grand jury in February 2017.
The charges against the Cadogan resulted from an investigation by the Drug Enforcement Administration (DEA) and the Stroud Area Regional Police Department. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The maximum penalty under federal law for the gun offense is life in prison, a term of supervised release following imprisonment, and a fine. That charge also carries a mandatory minimum penalty of five years in prison. The maximum penalty under federal law for the drug offense is 20 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Monongalia County woman sentenced for drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anna May Martin, of Westover, West Virginia, was sentenced today to 12 months incarceration for drug distribution, United States Attorney Bill Powell announced.
Martin, age 32, pled guilty to one count of “Unlawful Use of Communication Facility” in October 2017. Martin admitted to using a phone to distribute and assist in a conspiracy to distribute oxycodone. The crime occurred in Monongalia County in March 2017.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Senior U.S. District Judge Irene M. Keeley presided.
Mission Man Sentenced for Simple AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Simple Assault was sentenced on February 7, 2018, by U.S. Magistrate Judge Mark A. Moreno.
Tristan Lee Kills The Enemy, age 21, was sentenced to 6 months in custody and a special assessment to the Federal Crime Victims Fund in the amount of $10.
Kills The Enemy was indicted by a federal grand jury on November 14, 2017. He pled guilty on February 7, 2018.
The conviction stemmed from an incident on October 28, 2017, when Kills The Enemy committed a Domestic Assault on his spouse and intimate partner.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson prosecuted the case.
Kills The Enemy was immediately turned over to the custody of the U.S. Marshals Service.
Mesa, Arizona, Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Carlos Daniel Chavez-Lozano, age 27, of Mesa, Arizona, pled guilty to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years or more than life imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that on or about March 9, 2017, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Timothy Hammer represented the United States.
Memphis Man Sentenced on Marjiuana ChargesRead the Press Release
Jackson, Miss. – Eddie Lee Hunt, 48, of Memphis, Tennessee, was sentenced today by U.S. District Judge Henry T. Wingate to 14 months in federal prison followed by two years of supervised release and a $1,500 fine for possession with intent to distribute marijuana, announced U.S. Attorney Mike Hurst and Thomas M. Annello, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans. He pled guilty to the charge on October 19, 2017.
Hunt traveled from Memphis, Tennessee, to Jackson, Mississippi, to purchase over 17 pounds of Marijuana. Following a traffic stop of the vehicle Hunt was driving, the marijuana was discovered in the trunk.
This case is the result of an extensive investigation, dubbed AOperation Pipeline@, which began as an operation targeting illegal narcotics distribution in central Mississippi that involved the distribution of Methamphetamine and Marijuana. The distribution network encompasses the States of California, Texas and Mississippi.
The investigation was led by ICE Homeland Security Investigations and the Mississippi Bureau of Narcotics, with assistance from the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mississippi Highway Patrol, the Jackson Police Department, and the Hinds County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Erin Chalk.
Man Who Wanted to Commit Jihad Attempted to Join U.S. MilitaryRead the Press Release
NORFOLK, Va. – A Williamsburg man who told an undercover agent that he wanted to commit jihad, pleaded guilty today to passport fraud and to making false statements in his application to join the United States military.
According to court documents, Shivam Patel, 28, was working in China in the summer of 2016 when he flew to the Kingdom of Jordan, was arrested, detained, and then returned to the United States. Patel is alleged to have told an undercover agent and a confidential source that he wanted to join a “Muslim army” and commit jihad. After returning to the United States, he applied to join the Army and Air Force. When asked about his prior foreign travel as part of his applications, Patel did not disclose his trips to China or Jordan. After he was asked to show an Army recruiter his passport, which would have revealed his prior travel to the recruiter, he filed an application for a new passport, falsely claiming that he had accidentally thrown his old passport away. Special agents from the FBI recovered that passport, which documented his undisclosed travel, when they arrested him in July 2017.
Patel pleaded guilty to false statements and passport application fraud. He faces a maximum penalty of 15 years in prison when sentenced on June 4. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Edward C. O’Callaghan, Acting Assistant Attorney General for National Security, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Lawrence Leonard accepted the plea. Assistant U.S. Attorney Andrew C. Bosse and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section 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. 2:17-cr-120.
Man Sentenced for Receiving Images of Child Sexual AbuseRead the Press Release
RICHMOND, Va. – A Henrico man was sentenced today to eight years in prison and 10 years of supervised release for receiving images of child sexual abuse.
According to court documents, Charles Tiffit Ellis, Jr., 37, responded to an ad placed on Craigslist by an undercover officer, which read in part, “Looking to meet other taboo Dads/moms to chat n more….” Ellis communicated with the undercover via Kik Messenger and after confirming that they were on the same page regarding the term “taboo,” Ellis sent the undercover officer links to his Dropbox account for several child pornography videos involving prepubescent children. Ellis also sent the undercover a video of someone Ellis claimed was a 14-year-old girl he met online and filmed performing oral sex on him. A search warrant on Ellis’s home yielded corroborating evidence on his phone.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Members of FBI Richmond’s Child Exploitation Task Force investigated the case. Assistant U.S. Attorney Brian R. Hood prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources” for more information about Internet safety education.
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-108.
Media NotificatonRead the Press Release
WHAT: D. Michael Dunavant, United States Attorney for the Western District of Tennessee, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration, will make an announcement regarding the Department of Justice’s investigation into a Drug Trafficking Organization. DATE: Thursday, February 8, 2018 TIME: 2:00 p.m. WHERE:United States Attorney’s Office – Main Conference Room
NOTE:
Clifford Davis Odell Horton Federal Building
167 North Main Street, Suite 800
Memphis, TN 38103All media members must present government-issued photo I.D. (such as driver’s license), as well as valid media credentials.
Media are requested to RSVP to [email protected]. The conference room will be available for media to set up at 1:15 p.m. Everything must be pre-set by 1:30p.m. Press inquiries regarding logistics should be directed to Cherri Green at 901-969-2948.
Louisiana Men Sentenced After Pleading Guilty to Methamphetamine Conspiracy ChargesRead the Press Release
U.S. Attorney Duane A. Evans announced that U.S. District Judge Jane Triche Milazzo sentenced JEREMY DORMAN, age 31, of Baton Rouge, Louisiana, and JUSTIN SWANK, age 37, of New Orleans, Louisiana, to 65 months and 40 months imprisonment, respectively, after pleading guilty to one count of conspiracy to distribute and possess with intent to distribute a quantity of methamphetamine.
According to court documents, on September 24, 2015, a confidential source informed Jefferson Parish law enforcement officers that DORMAN was traveling eastbound on Interstate 10 near Kenner, Louisiana with a large quantity of methamphetamine. A stop and search of the vehicle revealed that DORMAN was in possession of 912 grams of methamphetamine. In a post-arrest statement, DORMAN acknowledged possession of the methamphetamine and identified SWANK, a New Orleans resident, as his drug trafficking associate who was also in possession of methamphetamine. Special Agents from the Drug Enforcement Administration went to SWANK’S residence at 2410 Daneel Street and arrested him on an outstanding warrant. During a search of SWANK’S residence, agents recovered 19 grams of methamphetamine from SWANK’S pocket and recovered another 421 grams of methamphetamine from a safe in SWANK’S bedroom.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the Jefferson Parish Sheriff’s Office, and the Louisiana State Police in investigating this matter. Assistant United States Attorney André Jones was in charge of the prosecution.
Local Bingo Operators Convicted of Conspiracy, Illegal Gambling Operation, and Money LaunderingRead the Press Release
PENSACOLA, FLORIDA – After an eight-day jury trial, Larry L. Masino, 67, of Gulf Breeze, and Dixie L. Masino, 65, of Pensacola, were convicted late yesterday in the U.S. District Court in Pensacola of wire fraud conspiracy, operating an illegal gambling business, and money laundering conspiracy. In addition, Larry L. Masino was convicted of 18 counts of money laundering, and Dixie L. Masino was convicted of 20 counts of money laundering. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Larry and Dixie Masino owned and operated Racetrack Bingo Inc. in Fort Walton Beach, which purported to conduct bingo games and provide the proceeds to a group of local charities in Okaloosa County. Between 2006 and 2015, the Masinos conspired to defraud the charities out of more than $8 million dollars. The Masinos specifically falsely assured the charities they were complying with provisions of the Florida statute. In fact, the Masinos were unlawfully paying themselves and their employees to conduct bingo games and were charging the charities a lease fee based on inflated expenses. Racetrack Bingo was an illegal gambling business because it was conducting bingo games and unlawfully retaining profit, rather than returning the net proceeds of the bingo games back to the players in the form of prizes. The Masinos conspired to launder more than $5.8 million of the bingo proceeds through profit distribution checks that the Masinos and their three children received as shareholders of Racetrack Bingo.
For the wire fraud conspiracy, the Masinos face a maximum of 20 years in prison. For the money laundering conspiracy and money laundering charges, the Masinos face a maximum of 10 years in prison. For operating an illegal gambling business, they face a maximum of 5 years in prison. The sentencing hearing is scheduled for May 25, 2018, at 1:00 p.m. at the Arnow Federal Building in Pensacola.
This case resulted from a joint investigation by the Florida Department of Law Enforcement, the Internal Revenue Service—Criminal Investigation, the Federal Bureau of Investigation, and the Okaloosa County Sheriff’s Office. Assistant United States Attorney Alicia H. Forbes is prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Last of Six Defendants Sentenced for Gun and Drug Trade in Great FallsRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that the last of six co-defendants was sentenced today for her role in a methamphetamine for guns trade that took place in Great Falls. 31-year old Monica Hulit of Great Falls was sentenced to 24 months in prison, 2 years of supervised release, and a $100 special assessment. U.S. District Judge Brian M. Morris presided over the hearing. Dawn Evans of Kevin, Montana, was previously sentenced to 24 months for her role in this offense. Marty Krominga of Great Falls was previously sentenced to 28 months for his role in this offense. Alvin Roe of Lewistown, Montana, was previously sentenced to 33 months for his role in this offense. Richard Stampka of Great Falls was previously sentenced to 12 months and one day for his role in this offense. Story Wood of Livingston, Montana, was previously sentenced to 54 months for his role in this offense.
In the summer of 2015, various methamphetamine dealers became acquainted with each other at a local methamphetamine supplier’s home in Great Falls, Montana. During this time, various members of this group, including Monica Hulit and Story Wood, made drug runs to Washington and Idaho, in order to bring methamphetamine back to Great Falls for redistribution in the area, as well as to local Indian reservations. This group also discussed trading firearms in exchange for methamphetamine.
Following one late summer gathering at this Great Falls home, Hulit, Wood, and another male, left to go on an out-of-state drug run. A few days later, on August 23, 2015, the Shoshone County Sheriff’s Office in Smelterville, Idaho, responded to a shoplifting report at the local Walmart. A deputy identified the suspects involved in the shoplifting as Hulit, Wood, and the other male. The deputy issued various citations to the Hulit, Wood, and the male, and observed they were all traveling together in a gold car with Montana license plates.
Two days later, on August 25, 2015, a Montana Highway Patrol Trooper stopped this same gold car for speeding on Highway 200 in Lewis and Clark County. The trooper identified Wood as the driver, Hulit as the front passenger, and the male as the rear passenger. All three individuals provided various inconsistent statements to the trooper, and Wood appeared to be extremely nervous and fidgety. Based on the behavior of Hulit, Wood, and the male, the trooper believed there may be illegal drugs in the car and requested consent to search the car. Wood denied consent, and the trooper impounded the car pending a search warrant. The trooper arrested the male on an outstanding warrant, and Hulit and Wood began to walk down Highway 200. The trooper called a towing company out of Wolf Creek to secure the car. The towing company arrived and towed the gold car, identified as a Honda Accord, to a secure impound lot in Wolf Creek pending the execution of a search warrant.
The following day, August 26, 2015, troopers went to find the car in Wolf Creek and discovered the fence to the secure storage lot had been damaged. They discovered that someone had tampered with the evidence tape adhered to the gold Honda Accord, and it appeared someone had entered the car since it had been towed to the lot. Subsequently, the troopers found drug-related paraphernalia in the car, and reported the suspicious incident to the local drug task force offices.
Meanwhile, on September 2, 2015, Great Falls police responded to a report that numerous storage units had been burglarized at a local storage unit complex in Great Falls. Officers went to the business and found someone had cut through the fence behind one of the storage buildings and had entered the property. The business had no surveillance equipment, but the officers noted that someone had cut the locks off three of the storage units, although it appeared that only one of the units had been burglarized. The owner of the burglarized unit arrived to speak with police, and subsequently observed that numerous firearms were missing from the unit.
On September 9, 2015, Great Falls police received a call from an employee at a local bar concerning a suspicious car in the parking lot. Great Falls police found the car, and identified the occupants of the car as Hulit, Wood, and the other male. Wood told the officers he had borrowed the car. The officers contacted the registered owner of the car who consented to a search of the car. As Hulit, Wood, and the other male got out of the car, Wood mentioned there might be a firearm in the car. Officers looked under the driver’s seat of the car and removed a loaded semi-automatic pistol.
Detectives obtained a search warrant for the car and found additional firearms and ammunition in the trunk. Specifically, detectives found two bags in the trunk of the car that contained ammunition addressed to the father of the storage unit owner whose unit had been burglarized. Detectives also found four additional firearms in the trunk of the car, which included three rifles and a shotgun.
Detectives subsequently confirmed that the owner of the storage unit reported that all four of these firearms had been stolen from his unit during the September 2, 2015, burglary. The owner of the storage unit also positively identified that all four of the firearms had previously been stored in his storage unit. During further investigation, detectives learned that Marty Krominga and Dawn Evans were responsible for breaking into the storage unit and stealing the firearms that were recovered from the trunk of the car occupied by the defendant. Following the burglary of the storage unit, Krominga and Evans had immediately taken the stolen firearms to Hulit in order to trade the stolen firearms for methamphetamine.
Detectives also learned that Krominga and Evans had stolen a 12-gauge pump action shotgun from the storage unit, and subsequently provided it to a woman to pawn at a local pawnshop. Based on this information, detectives went to a Great Falls pawnshop and recovered the pump action shotgun, which had been pawned by the woman. Detectives contacted the storage unit owner, who identified the shotgun by its serial number, and confirmed it was one of the firearms stolen from his storage unit. Lastly, detectives learned that Hulit, Wood, Stampka and Roe were responsible for breaking into the secure impound lot in Wolf Creek in order to retrieve methamphetamine and a firearm from the car.
The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Kearney Man Sentenced to 20 Years for $4.3 Million Meth, Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that two more defendants were sentenced today for their roles in a $4.3 million conspiracy to distribute large quantities of methamphetamine and heroin throughout Jackson, Clay, Ray, Clinton and Buchanan counties.
Elgin Eugene Dothage, also known as “Butch,” 41, of Kearney, Mo., and Jason Lee Kirtley, 45, of Excelsior Springs, Mo., were sentenced in separate appearances before U.S. Chief District Judge Greg Kays. Dothage was sentenced to 20 years in federal prison without parole. The court ordered today’s sentence to be served consecutively to a nine-year sentence for his conviction in an unrelated state case. Kirtley was sentenced to 12 years and 11 months in federal prison without parole and ordered to forfeit to the government $28,800, which represents the proceeds of drug trafficking.
On June 9, 2017, Dothage pleaded guilty to participating in a conspiracy to distribute methamphetamine, possessing a firearm in furtherance of a drug-trafficking crime and maintaining a drug premises. Kirtley pleaded guilty on June 14, 2017, to his role in the drug-trafficking conspiracy.
In 2010, the Buchanan County Drug Strike Force and the DEA initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri and northeast Kansas. Jose Luis Ruiz-Salazar, 39, his brother, Gabriel Ruiz-Salazar, 35, and Gregory Bullock, 48, all of Kansas City, Mo., have pleaded guilty to being the primary sources that supplied co-conspirators with large amounts of methamphetamine during the conspiracy. Co-conspirators then distributed the methamphetamine throughout Jackson, Clay, Ray, Clinton and Buchanan counties in Missouri.
Gabriel Ruiz-Salazar was sentenced to 15 years and eight months in federal prison without parole. Jose Ruiz-Salazar and Bullock await sentencing.
According to court documents, conspirators sold $4,359,600 worth of methamphetamine and heroin from 2010 to 2015. That estimate is based on a conservative street price of $1,200 for an ounce of 50 percent pure methamphetamine and the total conspiracy distribution of at least 100 kilograms of methamphetamine, and a conservative street price of $2,500 per ounce of heroin and an overall conspiracy distribution of approximately three pounds.
Dothage is responsible for the distribution of more than five kilograms of methamphetamine. Dothage admitted that he carried firearms in furtherance of the drug-trafficking conspiracy, including a 9mm Hi Point pistol and a Smith & Wesson .22-caliber pistol. Dothage also admitted that he used his residence for storing, distributing or using methamphetamine.
According to court documents, Kirtley is responsible for the distribution of 680.4 grams of methamphetamine.
Dothage and Kirtley are among 18 co-defendants who have been sentenced after pleading guilty to their roles in the conspiracy to distribute methamphetamine.
Jason Daniel Davis, 44, of Liberty, Mo., was sentenced to 15 years and eight months in federal prison without parole. Jackie R. Love, 60, of Excelsior Springs, was sentenced to six years and three months in federal prison without parole. Anthony Ray Stevenson, 46, of Excelsior Springs, was sentenced to 22 years and six months in federal prison without parole. Taylor Lee Syas, 25, of Polo, Mo., was sentenced to eight years and four months in federal prison without parole. Paula Rae Scott, 48, of Excelsior Springs, four years and 11 months in federal prison without parole. Bryan D. Carroll, 29, of Kansas City, Mo., was sentenced to six years and six months in federal prison without parole. Ryan A. Battagler, 39, of Kearney, Mo., was sentenced to 12 years in federal prison without parole. Franklin Charles Carter, also known as “Frankie,” 28, of Grandview, Mo., was sentenced to eight years in federal prison without parole. Marion Eugene Brammer, 53, of Excelsior Springs, was sentenced to six years and three months in federal prison without parole.
Brian Michael Bowers, 35, of Richmond, Mo., was sentenced to 12 years and six months in federal prison without parole. Gary Dewayne Brown, 37, of Cowgill, was sentenced to 12 years and seven months in federal prison without parole. Ronald Louis Roberts, 54, of Lathrop, Mo., was sentenced to 10 years and six months in federal prison without parole. Brittney James Brehm, 39, of Bland, Mo., was sentenced to six years and 11 months in federal prison without parole. Rodney Earl King, 52, of Excelsior Springs, was sentenced to five years and two months in federal prison without parole. Darin Gene Berry, 52, of Excelsior Springs, was sentenced to four years and five months in federal prison without parole.
Eight co-defendants have pleaded guilty and await sentencing. In addition to Jose Ruiz-Salazar and Bullock, co-defendants Steven Lee Schreier, Jr., 33, and William Dean Campbell, 37, both of Excelsior Springs; Joshua Keith Bowers, 34, of Polo; Sabrena Lynn Morgan, 40, of Kearney; and Caleb Dean Hayes, 36, of Kansas City, Mo., are among 26 defendants indicted in this case who have pleaded guilty.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades, Bradley K. Kavanaugh and Matt Moeder. It was investigated by the Clay County Drug Task Force, the Missouri State Highway Patrol, the Caldwell County, Mo., Sheriff’s Department, the Buchanan County Drug Strike Force and the DEA.
KC Man Pleads Guilty to Jimmy John's Robbery, CarjackingRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to the armed robbery of a Jimmy John’s restaurant and a carjacking.
Terry K. Rayford, 54, of Kansas City, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of armed robbery, one count of carjacking and one count of being a felon in possession of a firearm.
The charges stem from two incidents that occurred on April 26, 2017. Rayford brandished a Witness-P .45-caliber semi-automatic handgun when he robbed the Jimmy John’s restaurant, located at 3900 Broadway Blvd., Kansas City, Mo. Rayford was armed with a Witness-P .45-caliber semi-automatic handgun and a Jimenez 9mm semi-automatic handgun when he carjacked a 1998 Ford Econoline E350 van earlier the same day.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Rayford has 13 felony convictions for robbery and he was on parole at the time of the thefts.
Both of the firearms were found in Rayford’s vehicle after he was stopped by Independence, Mo., police officers on April 27, 2017. Officers received information about a person matching the description of the suspect in the Jimmy John’s restaurant the day before. A retired major with the Kansas City, Mo., Police Department had seen video of the robbery broadcast on the news and saw Rayford – who appeared to be the robbery suspect – driving in the area of 40 Highway and Crysler in Independence.
Independence police officers responded to the area and stopped Rayford’s vehicle. When they ordered him to get out of his vehicle, officers found the Witness-P .45-caliber semi-automatic handgun lying on the driver’s side floorboard. Rayford was arrested and his vehicle towed. During an inventory of the vehicle, the Jimenez 9mm semi-automatic handgun was found in the back pouch of the front passenger seat.
Rayford told investigators he had stolen both of the handguns from his source for crack cocaine, to whom he owed money. Rayford told investigators he violated the conditions of his parole so he could go back to prison and do the remaining time of his sentence because his parole conditions were hard to follow.
Under the terms of today’s plea agreement, Rayford will be sentenced to a minimum of 20 years in federal prison without parole, up to a maximum of 30 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury Convicts Kane County Man for Bank Fraud, Aggravated Identity TheftRead the Press Release
SPRINGFIELD, Ill. – A jury deliberated for approximately two hours this afternoon before returning guilty verdicts on all charges against a Carpentersville, Ill., man, Keith JD Offord, 24, for bank fraud and aggravated identity theft. U.S. District Judge Sue E. Myerscough presided over the trial which began Feb. 6. Sentencing is scheduled on June 18, 2018.
At trial, the government presented evidence to show that from December 2013 to August 2015, Offord used others’ identities to create false identification documents which were used at retail stores to obtain credit accounts and to buy merchandise and gift cards. Offord added photographs of a co-schemer to the fraudulent IDs, and took the co-schemer to various retail businesses. The defendant defrauded several Springfield area stores, including Bergner’s, approximately $2500; Game Stop $1500; and Sam’s Club $2170; as well as stores in the St. Louis, Mo., area in July and August 2015.
The Illinois State Police conducted the investigation. Assistant U.S. Attorneys Gregory M. Gilmore and Matthew Z. Weir represented the government at trial.
At sentencing, for the offense of bank fraud, the statutory penalty is up to 30 years in prison and for aggravated identity theft (three counts), the penalty is a mandatory two-year prison term to be served consecutive to the sentence ordered for the related fraud offense.
Houston-based fraudsters Plead GuiltyRead the Press Release
HOUSTON – Two fraud conspirators have entered guilty pleas to participating in a mortgage fraud conspiracy that fraudulently obtained mortgage loans to purchase homes in Houston and Surfside, announced U.S. Attorney Ryan K. Patrick.
David Lee Morris, 55, and Derwin Jerome Blackshear, 50, pleaded guilty to one count each of conspiracy to commit wire fraud and bank fraud, while Blackshear pleaded to bank fraud and also admitted to operating a tax preparation business at various locations throughout the Houston area that prepared fraudulent tax returns.
The mortgage fraud scheme ran from 2005 to 2009. Morris, Blackshear and others associated with the A. Cole Realty Group in Houston caused mortgage lenders to loan excessive amounts of money for the purchase of residential real estate in the Houston and Surfside areas. The scheme focused primarily on the purchase of Beach homes in Surfside. Mortgage lenders were induced to loan far more money than the properties were actually worth. The conspirators then skimmed the excess loan funds from the real estate transactions.
Morris and Blackshear’s primary role in the scheme was to recruit and pay individuals known as “straw buyers” to sign mortgage loan documents. However, the loan applications contained numerous misrepresentations about the straw buyers’ financial status and ability to repay the loans. Co-conspirators obtained inflated appraisals of the properties to be purchased that supported the excessive lending. Once the loans funded, Morris and Blackshear pocketed a portion of the fraudulently obtained loan funds themselves and then distributed the rest of the funds to other participants in the scheme, including the straw buyers. Ultimately, all the homes purchased through the scheme went into foreclosure, resulting in millions of dollars of losses to the mortgage lenders.
In addition to the mortgage fraud scheme, Blackshear engaged in tax fraud. He owned and operated a tax return preparation business under the name “Level One Tax Services” during 2012 through 2015. Blackshear admitted he willfully placed numerous false items on his clients’ income tax returns in an attempt to generate excessive refunds. As part of his plea, Blackshear admitted he prepared dozens of fraudulent tax returns, causing a loss of $251,323.
Sentencing has been set before Chief U.S. District Judge Lee Rosenthal for May 17, 2018. At that time, each faces up to 30 years in prison as well as a $1 million maximum fine. Blackshear also faces another three years for the tax fraud and a $250,000 fine.
As part of their plea agreements, both have agreed to pay restitution and forfeiture. Morris agreed to pay $4,468,151 in restitution to the defrauded banks and agreed to forfeit $1,460,170.51 in proceeds he earned from the scheme. Blackshear agreed to pay $251,323 in restitution to the U.S. Treasury, $1,995,273 restitution to the defrauded banks and $629,774 in forfeiture of illegal proceeds.
The FBI and the Texas Department of Public Safety conducted the mortgage fraud investigation. Assistant U.S. Attorney (AUSA) Robert S. Johnson is prosecuting the case. IRS – Criminal Investigation conducted the criminal tax investigation. AUSA Attorney Jimmy Sledge Jr. is prosecuting that case.
Hospice Company and Owner Agree to Pay $1.24 Million to Settle Two False Claims Act Whistleblower LawsuitsRead the Press Release
PITTSBURGH – A privately owned for-profit hospice company and its owner and Chief Executive Officer agreed to pay the United States $1,240,000 to resolve allegations that the company had fraudulently billed Medicare and Medicaid for hospice services for patients who were ineligible for hospice, United States Attorney Scott W. Brady announced today.
The settlement resolves allegations in two whistleblower lawsuits filed in federal court in Pittsburgh, Pennsylvania against Horizons Hospice, LLC and its owner and Chief Executive Officer John C. Rezk ("Defendants"). The settled claims contend that from June 27, 2007 to August 1, 2012, Defendants submitted or caused to be submitted false claims to Medicare and Medicaid for patients who did not qualify for hospice because they did not have a life expectancy prognosis of six months or less. Typically, federal health care programs only pay for hospice care when patients have terminal illnesses with a life expectancy of less than six months. The settled claims also contend that Defendants falsified records to support the false claims. Horizons Hospice, LLC later changed its name to 365 Hospice, LLC. The alleged fraud occurred while the company operated as Horizons Hospice.
"Medicaid and Medicare are programs intended to provide care and assistance to the most vulnerable members of our communities, including seniors," said U.S. Attorney Brady. "Those who seek to defraud these programs will be vigorously pursued by my office. This settlement is another step forward in that fight."
This matter was investigated by the Office of Inspector General of the United States Department of Health and Human Services with assistance from the Federal Bureau of Investigation. Assistant United States Attorneys Paul E. Skirtich and Rachael L. Mamula handled the investigation that led to this settlement on behalf of the United States.
The cases are captioned United States ex rel. Thomas v. Horizons Hospice LLC (No. 12-cv-315) and United States ex rel. Mizak, et al. v. Horizons Hospice LLC, et al., (No. 13-cv-1688).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Holyoke Man Pleads Guilty to Dealing CocaineRead the Press Release
BOSTON – A Holyoke man pleaded guilty today in federal court in Springfield to dealing cocaine.
Raul Ramos, 43, pleaded guilty to one count of distribution and possession with intent to distribute cocaine. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 3, 2018.
On Nov. 8, 2016, Ramos distributed 27.712 grams of cocaine in exchange for $1,300. The charges are a result of a federal, state, and local law enforcement investigation into drug trafficking in Springfield and Holyoke.
The charging statute provides for a sentence of no greater than 30 years in prison, a minimum of six years of supervised release, and a fine of $2 million dollars. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James M. Neiswanger made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
Health Care Business Owners Sentenced to Prison for Multi-Million Dollar Fraud and Tax ConspiracyRead the Press Release
United States Attorney Gregory G. Brooker today announced the sentencing of three defendants for their involvement in a years-long, multi-million dollar heath care fraud and tax conspiracy. THURLEE BELFREY, 52, ROYLEE BELFREY, 52, and LANORE BELFREY, 43, each entered guilty pleas on September 14, 2017, and were sentenced yesterday before Senior U.S. District Judge Ann D. Montgomery in Minneapolis, Minn.
“For more than a decade, these three defendants each played a role in a scheme that garnered millions in illicit profits by cheating government health care programs that were funded by honest taxpayers and intended for the needy,” said Assistant U.S. Attorney Robert Lewis. “The sentences handed down are appropriate and just consequences.”
“Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” said IRS Criminal Investigation Acting Special Agent in Charge Hubbard Burgess, Saint Paul Field Office. “Because of employers like Thurlee Belfrey and Roylee Belfrey not complying with the tax laws, failing to turn over their employee’s withheld taxes results in a loss of tax revenue to the United States government but more importantly, it affects the loss of future social security or Medicare benefits for their employees.”
According to the defendants’ guilty pleas and documents filed in court, brothers THURLEE and ROYLEE BELFREY ran multiple health care businesses that received funds from the Medicaid and Medicare programs funded by the federal government and the State of Minnesota. In 2003, following an investigation by the Minnesota Attorney General’s Office into Royal Health Care, a business they started together in the 1990s, THURLEE BELFREY was convicted of felony theft by false representation. Based on his conviction, in 2004 the Minnesota Department of Human Services (DHS) and the United States Department of Health and Human Services (DHHS) excluded THURLEE BELFREY indefinitely from participating in state and federal health care programs, with no right to seek reinstatement for up to 20 years.
Despite this, and as he admitted in his guilty plea, THURLEE BELFREY conspired with his wife LANORE BELFREY to incorporate a new health care company, Model Health Care (Model), to continue the business operations and conceal THURLEE BELFREY’S involvement therein. To do this, and part of the scheme, LANORE BELFREY was named the owner of Model and intentionally failed to disclose THURLEE BELFREY’S involvement in managing the business. Despite being excluded, THURLEE BELFREY continued to manage Model. Government payment records show Model received more than $18,000,000 from Medicaid that would not have been paid but for the fraudulent misrepresentations made about THURLEE BELFREY’S lack of involvement in the businesses. According to the investigation, THURLEE and LANORE BELFREY received millions of dollars from Model during the scheme.
While THURLEE BELFREY ran Model, ROYLEE BELFREY operated several health care businesses as well. According to the defendants’ guilty pleas, between 2007 and 2013, THURLEE and ROYLEE BELFREY deducted and collected money from their employees’ wages, ostensibly for the payment of federal payroll taxes and Federal Insurance Contribution Act (FICA) taxes. However, they intentionally failed to pay the withheld taxes over to the IRS over the course of many years and, instead, used the money for other purposes, including attempts to develop a reality show based on their lives, high-end housing, a Caribbean cruise, luxury retail purchases, and thousands of dollars in cash withdrawals. In total, THURLEE and ROYLEE BELFREY admitted deducting and unlawfully using for their own benefit more than $3,960,000 in withheld taxes between 2007 and 2014.
This case is the result of an investigation conducted by the Minnesota Attorney General’s Office, the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation, and the Office of the Inspector General, United States Department of Health and Human Services.
Assistant U.S. Attorneys Robert Lewis and David Maria prosecuted the case.
Defendant Information:
THURLEE BELFREY, 52
Saint Paul, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
- Failure truthfully to account for and pay over withheld taxes, 1 count
Sentenced:
- 96 months in prison
- Three years of supervised release
- $8,944,036.82 in restitution
ROYLEE BELFREY, 52
Saint Paul, Minn.
Convicted:
- Failure truthfully to account for and pay over withheld taxes, 2 counts
Sentenced:
- 60 months in prison
- Three years of supervised release
- $4,592,593.74 in restitution
LANORE BELFREY, 43
Minnetonka, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
Sentenced:
- 15 months in prison
- Two years of supervised release
- $402,158.00 in restitution
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Hartford Man Arrested for Sex Trafficking a MinorRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut announced that CHRISTOPHER HAMLETT, also known as “Cadi” and “Cadillac Black,” 24, of Hartford, was arrested today on a criminal complaint charging him with sex trafficking of a minor.
HAMLETT appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford. He is detained pending a detention hearing that is scheduled for February 15.
As alleged in court documents, between August and November 2017, HAMLETT coerced a minor victim to engage in prostitution at Hartford area hotels. In an interview with law enforcement, the victim stated that, in the beginning, HAMLETT gave the victim a percentage of the money she earned through prostitution. After that, she stated, “he took all of my money” and, if she complained, he said “It’s business. I have things that cost money. Just do as you’re told or I can make you disappear. No one is going to look for you.”
It is further alleged that HAMLETT advertised the victim’s prostitution services on online websites, including Backpage.com.
If convicted of the charge of sex trafficking of a minor, HAMLETT faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Hartford Police Department, through the Connecticut Human Trafficking Task Force, and the Federal Bureau of Investigation. The case is being prosecuted by AUSAs Sarala V. Nagala and Nancy V. Gifford.
Ghanaian Man Pleads Guilty to His Role in Internet Romance Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy announced today that Adams Amen, 32, a citizen of Ghana, who resides in Detroit, Michigan, pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that between March 28, 2015, and June 15, 2017, the defendant conspired with Jason Osei Bonsu and other Ghanaian nationals to devise an internet romance scheme to defraud victims and obtain money.
In furtherance of the scheme, Amen’s co-conspirators utilized a dating website, MillionaireMatch.com, to engage victims in communications online and over the phone to develop a rapport with victims and convince victims that they were developing romantic relationships via the internet. Victims received alleged pictures of the co-conspirators that were actually photographs of others downloaded from the internet. For example, Victim 1, who resides in the Western District of New York, received images of a person known to her as “Marvin Roecker,” but the image actually depicted a real estate agent from Texas, whose name is not “Marvin Roecker.”
After successfully building rapport, victims were asked to wire money to assist with fictitious business ventures, family emergencies, or inheritances. Victims did so, wiring funds to accounts in Ghana, the United Kingdom, and to accounts in the United States controlled by Ghanaian nationals, including Amen.
On March 2, 2016, Victim 1 wired $65,000 to Amen’s TD Bank account. Text messages between the defendant and co-defendant Jason Osei Bonsu demonstrate that both were participants in the scheme to defraud Victim 1. For instance, Amen and Bonsu discussed quickly withdrawing Victim 1’s money to prevent the bank from becoming suspicious. Subsequently, on March 21, 2017, following a request by “Marvin Roecker,” Victim 1 wired another $180,000 to a bank account located in the United Kingdom, which was controlled by a co-conspirator.
Between March 28, 2015, and June 15, 2017, victims wired $881,656 directly to accounts controlled by the defendant. One victim deposited $27,990 cash directly into Amen’s account. Victims lost a total of $909,646.
Today’s plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons.
Sentencing is scheduled for May 23, 2018, at 1 p.m. before Judge Arcara.
Germantown Man Exiled to 10 Years in Prison on Drug and Gun ChargesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland –United States District Judge George J. Hazel sentenced Andrew Dean Bailey, age 32, of Germantown, Maryland, today to 10 years in prison, followed by three years of supervised release, for possession with intent to distribute cocaine and being a felon in possession of a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief Mark P. Sroka of the Gaithersburg Police Department.
According to his plea agreement, on March 23, 2017, law enforcement officers executed a search warrant at Bailey’s residence in Germantown, Maryland, where they located a firearm, ammunition, narcotics, narcotics paraphernalia, and cash. Among other things, officers seized a loaded .40 caliber handgun, additional .40 caliber rounds of Winchester ammunition, and approximately 96 grams of cocaine, 3 grams of alprazolam, and 1 gram of morphine pills. Officers also seized $15,900 in drug-trafficking proceeds.
Bailey admitted that he intended to sell the cocaine found in his apartment, and that he possessed that loaded .40 caliber handgun in order to protect his drugs and drug-trafficking proceeds.
Prior to March 23, 2017, Bailey had been convicted of a crime punishable by more than one year of imprisonment (and his civil rights had not been restored), which prohibited him from legally possessing firearms or ammunition.
Judge Hazel ordered the forfeiture of the $15,900, the handgun and the ammunition.
Acting United States Attorney Stephen M. Schenning praised the DEA, Montgomery County Police and Gaithersburg Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Michael Packard and Timothy Hagan who prosecuted the case.
Gainesville Man Convicted of Sex Trafficking CrimesRead the Press Release
GAINESVILLE, FLORIDA – After a three-day trial, Arthur Larange Lee Jr., 34, of Gainesville, was convicted late yesterday in the U.S. District Court in Gainesville of sex trafficking by force and use of a facility of interstate commerce to promote prostitution. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Lee abducted a drug-addicted woman from the parking lot of a Gainesville church where she was attending a Narcotics Anonymous meeting. After taking the victim’s phone, he ordered her to drive to a nearby hotel where he took photographs of her for use in a Backpage.com advertisement. Lee told the victim he would “break her in,” after which he raped her, burned her, and committed other acts of violence against her. Lee then fed the victim small amounts of cocaine and instructed her that she had to pay off her “debt.” Over the span of two days, Lee forced and coerced the victim to engage in sexual acts with numerous “johns.” He kept all the money derived from the sex acts that took place at local hotels and private residences. While at one hotel, the victim texted a “john” who agreed to help her escape by picking her up outside the hotel. The victim then fled with Lee’s phone and called police. Responding officers were able to quickly locate and arrest Lee, who was still inside the hotel.
For the sex trafficking charges, Lee faces a minimum of 15 years and a maximum of life in prison. For using a facility of interstate commerce to promote prostitution, Lee faces a maximum of 5 years in prison. The sentencing hearing is scheduled for April 23, 2018, at 10:00 a.m. at the United States Courthouse in Gainesville.
The case was investigated by the Alachua County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Frank Williams.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Four Defendants Sentenced for Participating in Stolen Identity Refund Fraud SchemeRead the Press Release
Four defendants were sentenced for their participation in a stolen identity refund fraud scheme.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Masoniek Stinfort, 32, of Belle Glade, was sentenced to 144 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $409,968. Eric L. Clemons, Jr., 25, formerly of Belle Glade, was sentenced to 48 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $409,968. James Craig, 29, of Orlando, FL was sentenced to 34 months in prison, to be followed by two years of supervised release. Robert Nero, 30, Belle Glade, was sentenced to 27 months in prison, to be followed by 3 years of supervised release.
Stinfort, Clemons, and Clorinda Walker, of Belle Glade previously pled guilty to one count of conspiracy to commit wire fraud and theft of government funds, in violation of Title 18, United States Code, Section 371. Stinfort also pled guilty to five counts of wire fraud, in violation of Title 18, United States Code, Section 1343; and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Clemons, Craig, Nero and Walker also pled guilty to one count of wire fraud and one count of aggravated identity theft.
According to court documents, the defendants participated in a scheme where fraudulent federal income tax returns were filed with the IRS using unauthorized personal identifying information (PII), consisting of names and social security numbers, of real persons. Stinfort recruited numerous individuals including, among others, Clemons, Walker, Nero, and Craig to open bank accounts to be used to receive the fraudulent tax refunds obtained by the submission of the false federal income tax returns. The defendants sought $1,118,000 in fraudulent refunds from the IRS, and the government sustained an actual loss of $409,968 attributable to the fraud.
Defendant Walker was employed by a medical center where she had access to the PII of individual patients. Specifically, Walker had access to the patients’ names, respective social security numbers and respective dates of birth. A number of PII stolen from the medical center were used in the stolen identity refund fraud conspiracy. Walker was the source of some, but not all, of the stolen PII used in the conspiracy to defraud the United States. Walker is scheduled to be sentenced before U.S. District Judge Robin L. Rosenberg on Friday, February 16, 2018, at 1:30 p.m.
Defendant Makia Henderson was found not guilty at trial.
“The U.S. Attorney’s Office in the Southern District of Florida is committed to combatting identity theft fraud schemes that compromise local and national taxpayer identities,” said U.S. Attorney Benjamin G. Greenberg. “Prosecuting the offenders who unlawfully steal and possess the personal identification information of others in an attempt to steal our tax dollars remains a top priority for the Office and our law enforcement partners.”
“Tax filing season has begun, and today’s announcement should serve as a stern warning to anyone thinking about using stolen identities to file false tax returns with the IRS. IRS Criminal Investigation takes these crimes very seriously, and we will continue to work with the U.S. Attorney’s office to identify, investigate and prosecute individuals who participate in stolen identity refund fraud schemes. As a reminder, taxpayers must stay vigilant in protecting their personal identification information (PII) to help avoid being a victim of these crimes,” stated Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI).
Mr. Greenberg commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant United States Attorney Stephen Carlton.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former High School Principal Sentenced to 108 Months in Prison for Transporting Child PornographyRead the Press Release
Admitted he transferred images from phones confiscated from students, to his personal thumb drive, without their consent or knowledge and shared the images on a Russian website
LOUISVILLE, Ky. – A former Larue County, Kentucky, High School Principal was sentenced today in United States District Court, by U.S. District Judge David J. Hale, to 108 months in prison, followed by a ten year period of supervised release, for transporting child pornography and possessing child pornography that had been transported in interstate commerce announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“Parents must be able to place their trust in educators to provide a safe learning environment for our kids,” stated United States Attorney Russell Coleman. “Mr. Goodlett not only violated this trust but exploited students for his own foul gratification. His significant punishment is well-earned”
Stephen Kyle Goodlett, 37, of Elizabethtown, Kentucky, remains in federal custody and faces additional State charges in the Commonwealth of Kentucky in Hardin County. Goodlett was initially charged by federal criminal complaint on December 19, 2016, and by federal grand jury indictment on January 4, 2017.
On September 2, 2016, Elizabethtown police received a child sexual exploitation complaint from a female who discovered nude photographs of her that had been uploaded to a website that allowed users to anonymously post sexually explicit images and videos of people and identified the geographic area where the depicted person lived. The photographs are often accompanied by the first and last initial of the person in the photographs. The complainant viewed the images from the website and told police she was 15 years old when the nude photographs were created with a cell phone.
Elizabethtown Police requested and received the detailed IP address information for the person responsible for uploading the images. The IP address was registered to Kyle Goodlett of Elizabethtown, Kentucky. The defendant was the Assistant Principal at Larue County High School from July 4, 2012, until he was promoted to Principal on July 1, 2013, and held that position until he was terminated on October 19, 2016. Goodlett was principal while the complainant was a student there and had access to her nude images when he confiscated her cell phone. The complainant was a student at Larue County High School during that time.
On October 13, 2016, the Kentucky State Police executed a search warrant at Goodlett’s Elizabethtown residence and a preview of his electronic devices, including his iPhone and an eternal hard drive, yielded 60 files of child sexual exploitation.
Further, on December 12, 2016, KSP received a report from the National Center for Missing and Exploited Children stating that several images discovered in Goodlett’s Dropbox account contained images of known minor victims including the complainant and five images from an identified minor female.
Goodlett signed a waiver of his rights and agreed to a recorded interview with KSP Detectives. Goodlett admitted to KSP that he was addicted to pornography and that he transferred images from phones confiscated from students to his personal thumb drive without their consent or knowledge. Goodlett stated he would take the images and share them to a Russian website with the intent of trading for more images. Goodlett told KSP he used his iPhone and laptop to view the images. A forensic review of Goodlett’s electronic devices revealed he possessed 436 images and 11 videos of child pornography as defined by 18 USC Section 2256(8).
This case was prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the Department of Homeland Security, Homeland Securities Investigations with assistance from Kentucky State Police and the Elizabethtown, Kentucky, Police Department.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Final Defendant in San Antonio-Based Synthetic Marijuana Distribution Ring Sentenced to Federal PrisonRead the Press Release
In San Antonio today, a federal judge sentenced 33-year-old Ashak Victor Nasief Wesa to 150 months in federal prison followed by three years of supervised release for his role in a synthetic marijuana distribution scheme based in San Antonio, announced United States Attorney John F. Bash, Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division.
On October 31, 2017, Wesa, an Egyptian National who was residing in Houston at the time of the offense, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substance analogues. By pleading guilty, Wesa admitted that from March 2013 to June 2013, he and others comprised the San Antonio-based Jaffer Drug Trafficking Organization (Jaffer DTO) that was responsible for the production and distribution of synthetic marijuana and bath salts in San Antonio, Houston, Austin, and Dallas as well as Tulsa, Oklahoma City, and Kansas City. During the course of the enterprise, the Jaffer DTO manufactured, caused to be manufactured, attempted to manufacture, distributed and possessed with intent to distribute over 40,000 pounds (or 18,500 kilograms) of synthetic cannabinoids.
In June 2017, Wesa was extradited from Germany to the Western District of Texas. He since has remained in federal custody.
Wesa is the last of 16 defendants to be convicted and sentenced in connection with this federal grand jury indictment. In April 2017, ringleader Muhammed Jaffer Ali was sentenced to 16 years in federal prison. Other sentences imposed ranged from five months incarceration to 150 months incarceration.
This prosecution resulted from the efforts of the Federal Bureau of Investigation, the Drug Enforcement Administration and the San Antonio Police Department together with the Internal Revenue Service-Criminal Investigation, the Immigration and Customs Enforcement - Homeland Security Investigations, the U.S. Border Patrol, the Texas Department of Public Safety, and the Live Oak Police Department. Assistant United States Attorney Mark Roomberg is prosecuting this case.
Federal Inmate Indicted for Escaping from Prison and Returning with ContrabandRead the Press Release
BEAUMONT, Texas – A 27-year-old federal prison inmate has been indicted for escaping from prison and returning with contraband announced U.S. Attorney Alan R. Jackson today.
Joshua Randall Hansen was charged in the two-count indictment with escape from a federal facility and possession with intent to distribute a controlled substance. The indictment was returned by a federal grand jury on Feb. 7, 2018.
According to the indictment, on Jan. 24, 2018, law enforcement officers arrested Hansen outside the perimeter of the prison camp at the Federal Correctional Complex in Beaumont, Texas. Hansen is a federal inmate and was not authorized to be outside the facility. At the time of his arrest, it is alleged that Hansen was on his way back to the prison camp and was in possession of marijuana and alcohol that he intended to distribute within the compound.
If convicted, Hansen faces up to an additional five years in federal prison.
This case is being investigated by the U.S. Marshals Service, the Jefferson County Sheriff’s Office and the Bureau of Prisons. This case is being prosecuted by Assistant U.S. Attorney Randall L. Fluke.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Inmate Charged with Possession of A WeaponRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Williamsport indicted a prisoner at the Federal Correctional Institute Allenwood (FCI Allenwood) on the charge of possessing a weapon in prison.
According to United States Attorney David J. Freed, Lavon Caldwell, age 36, was found in possession of two improvised shanks during a search conducted on March 7, 2017.
The charges stem from an investigation by officers at FCI Allenwood and agents of the Federal Bureau of Investigation. Special Assistant United States Attorney Michael P. FiggsGanter is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The defendant is facing a maximum of five years of incarceration and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Federal Felon Pleads Guilty to Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman pleaded guilty in federal court today to possessing a large quantity of methamphetamine that was discovered by probation officers while conducting a residence check.
Michelle L. Stevens, 47, of Kansas City, pleaded guilty before U.S. District judge Brian C. Wimes to possession with intent to distribute methamphetamine.
Stevens was a federal felon on supervised release for a 2010 conviction for distributing methamphetamine when numerous U.S. Probation officers conducted a residence check on March 14, 2017. As officers conducted a security sweep of her apartment, they noticed a door adjacent to the entry door to Stevens’s apartment. She claimed that the room was used for storage. When officers opened the door, however, they learned the “storage space” was in fact another apartment, where they discovered a large amount of contraband.
According to today’s plea agreement, officers seized 3.5 kilograms of methamphetamine (stored in various places, the bulk of it in a laundry bag in the corner of the living room, which also contained a plastic bag with about 55 grams of marijuana), a loaded Browning .25-caliber handgun, $8,866 and several items of drug paraphernalia. Stevens was placed under arrest.
Under federal statutes, Stevens is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life 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 Jeffrey Q. McCarther. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Probation Office, and the Kansas City, Mo., Police Department.
Father and Son Convicted of Million-Dollar FraudRead the Press Release
Assistant U.S. Attorney Nicholas W. Pilchak and Andrew J. Galvin (619) 546-9709 and (619) 546-9721
NEWS RELEASE SUMMARY – February 8, 2018
SAN DIEGO – A father and son fraud team that won over $4 million of federal contracts using false financial statements and other lies pleaded guilty in federal court today. The father—a long-time self-described government contracting consultant—also admitted to stealing over a half million dollars from his consulting clients.
At a hearing today before U.S. Magistrate Judge Barbara Lynn Major, Joseph Glenn Osborne, Sr., 68, pleaded guilty to wire fraud and participating in a wire fraud conspiracy with his son, Joseph Glenn Osborne, II, 31. Osborne, II pleaded guilty to falsely making a writing to obtain money from the United States.
In his plea agreement, Osborne, Sr. admitted that he stole $588,489 from three different small businesses that retained him as a government contracting consultant. According to court documents and his admissions, Osborne, Sr. promised to represent the victims in obtaining and fulfilling contracts with the U.S. Department of Agriculture (USDA). Instead, he used his position as the sole holder of their web passwords to change their banking information in the online federal system controlling where their contract payments would be sent. When USDA paid on his clients’ contracts, the money was diverted to Osborne, Sr. instead of the victims.
Osborne, Sr. also admitted to lying to his clients when they questioned the missing payments. For example, when one client repeatedly pressed him to attend a conference call to explain the missing money and passwords, Osborne, Sr. repeatedly told the client he couldn’t take the client’s calls because he had been seated on a state court jury for a multiple murder trial. In fact, according to court filings, Osborne, Sr. has never reported for jury duty.
According to the plea agreement, Osborne, Sr. used a portion of the stolen money to put a down payment on a $2.7 million mansion in Rancho Santa Fe, California. Osborne, Sr. forged further emails to conceal the source of the money by falsely claiming that it was an early retirement withdrawal from a benefits account at an agency where he had never worked.
In 2013, after Osborne, Sr. was terminated by his clients, the Osbornes agreed to submit fraudulent financial statements to qualify Osborne, II’s new business—Worldwide Connect LLC (WWC)—as an approved USDA contractor. As set out in their guilty pleas, the Osbornes recruited Osborne, II’s friend and bookkeeper to prepare false financial statements which substantially overstated WWC’s financial health. For example, the statements fraudulently converted WWC’s 2013 year-end cash position from a $5,546 deficit to a $37,954 surplus.
The Osbornes also admitted to falsely certifying to the USDA that none of WWC’s principals was suspended or debarred from federal contracting. In fact, according to documents filed in the case, Osborne, Sr. was suspended and debarred from November 2013 to October 2016 for conduct associated with his prior business, Global Health & Safety.
As a result of these fraudulent submissions, WWC was approved for federal contracting and won over $4 million of USDA food supply contracts. Four of the five contracts were terminated for contractor default, after WWC failed to deliver over 100,000 cases of fruit juice and raisins to community food banks and lunch programs. The Osbornes admitted that WWC caused its suppliers and financing company over $1.5 million in losses. Meanwhile, as set out in the plea agreements and court filings, the Osbornes paid themselves approximately $285,245 of WWC funds in little more than a year. They also used other company money for personal expenses—including almost $10,000 of nightclub charges, luxury hotel stays, and over $9,000 of new flooring in Osborne, Sr.’s personal residence.
After their contracts were terminated, the plea documents explain that the Osbornes applied to the Small Business Administration (SBA) to be readmitted to federal contracting. As part of that application, Osborne II misstated Osborne, Sr.’s military history, telling the SBA he was a retired colonel in the Marine Corps when in fact Osborne, Sr. had retired as a first lieutenant. Osborne II also supplied a variety of falsified tax returns to the SBA for himself and WWC, including an altered (signed) tax return that converted his real $14,870 tax liability into a fake $5,427 tax overpayment.
In addition to pleading guilty, each defendant agreed to pay restitution to their victims in the amounts of approximately $1.7 million for Osborne, Sr. and $1.5 million for Osborne II.
A sentencing hearing for both defendants is scheduled for May 7, 2018 at 9:00 a.m. before Judge Roger T. Benitez.
“Businesspeople who lie, cheat and steal have no place in federal contracting systems funded with American tax dollars,” said U.S. Attorney Adam L. Braverman. “We will be sure that white collar criminals manipulating the system from behind the scenes are held accountable.”
Special Agent-in-Charge Lori Chan, United States Department of Agriculture (USDA), Office of Inspector General (OIG), Western Region, stated, “The USDA OIG has the responsibility for protecting the integrity of the Agriculture Marketing Service, Commodity Procurement Program. OIG conducts investigations in each region of the U.S. to deter and uncover criminal activity that undermines the Commodity Procurement Program. Contractors who engage in financial fraud exploit the public’s trust. The OIG at USDA works to ensure the integrity of USDA programs.”
FBI Special Agent in Charge John Brown commented, “This comprehensive investigation revealed a continued pattern of theft, deceit, and fraud—all for personal greed and self-promotion. Working closely with our law enforcement partners, the FBI will continue to pursue and bring to justice those who seek to perpetrate these fraudulent financial schemes and take advantage of victim clients, the federal contracting process, and the American tax payers."
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak and Andrew J. Galvin.
DEFENDANT Case Number 16CR2546-BEN
Joseph Glenn Osborne, Sr. Age: 68 Carlsbad, California
Joseph Glenn Osborne, II Age: 31 Carlsbad, California
SUMMARY OF CHARGES
Wire Fraud, in violation of Title 18 U.S.C. § 1343; term of custody including 20 years in prison, $250,000 fine, 3 years of supervised release, and mandatory restitution.
Wire Fraud Conspiracy, in violation of Title 18 U.S.C. § 1349; term of custody including 20 years in prison, $250,000 fine, and 3 years of supervised release, and mandatory restitution.
Falsely Making a Writing to Obtain Money From the United States, in violation of Title 18 U.S.C. § 495; term of custody including 10 years in prison, $250,000 fine, 3 years of supervised release, and mandatory restitution.
AGENCIES
U.S. Department of Agriculture, Office of Inspector General
Federal Bureau of Investigation
Eight Individuals with Ute Mountain Ute Tribe Plead Guilty to Embezzlement and Money LaunderingRead the Press Release
DENVER – As part of an ongoing investigation, eight individuals pled guilty this week to various charges involving funds embezzled from the Ute Mountain Ute Tribe announced U.S. Attorney Bob Troyer, FBI Denver Field Office Special Agent in Charge Calvin A. Shivers, and IRS-Criminal Investigation Denver Field Office Special Agent in Charge Steven Osborne.
According to information contained in court documents, from at least 2011 through October 2015, Ute Mountain Ute (UMU) tribal members were entitled to receive utility benefits from the tribe to pay their utility expenses in annual amounts from $1,200 to $1,500. Bills or other documentation were required to be submitted along with the application to the tribe’s Financial Services Department for processing and payment to the tribal members. Additionally during the same time period, UMU tribal members had family plan accounts established when the tribal member was a child and from which the member could start spending the funds once they reached 18 years of age. The funds in the family plan accounts, with accrued interest, usually reached approximately $10,000 by the time the member reached 18 years old. These funds could be used to purchase things such as vehicles, home furnishings, and computers. As with the utility benefits, the tribal member was required to provide invoices or other documentation to UMU’s Financial Services Department in order to request payment from the family plan account.
Beginning in at least 2011, certain employees of the tribe’s Financial Services Department caused fraudulent tribal checks to be generated in the names of people selected by the employees. The people receiving the checks cashed the checks and usually shared the cash with the Financial Services Department employee who provided the check. Initially, these fraudulent checks were falsely attributed to the utility benefits or family plan accounts of tribal members who did not request or receive the fraudulent checks. Later, the fraudulent checks were generated without being attributed to any tribal member. Several of the people who received the fraudulent checks were not tribal members and were not entitled to any tribal benefits.
In other instances, the Financial Service Department employees caused embezzled tribal funds to be sent via Western Union to selected recipients who would in turn provide a portion of the money back to the employee who sent the wire. In some instances, embezzled tribal funds were wired to inmates with the Federal Bureau of Prisons who were not UMU tribal members and not entitled to any UMU tribal funds.
The eight individuals who pled guilty before Magistrate Judge David L. West are:
- Oraleigh Jaramillo aka Oraleigh Hammond – one count of Embezzlement, Conversion or Misapplication of Property from Indian Tribal Government receiving federal funds and one count of Money Laundering with restitution of $309,537;
- Classia Rose Hammond – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $65,508.56;
- Loia K. House – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $22,190;
- Darrell Jonah Lee – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $142,411;
- Kevin Ryan Lee – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $89,132;
- Myreon Lehi – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $23,280;
- Ladelda Lopez aka Ladelda Box – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $34,823; and
- Jennifer Ann Pioche – one count of Receipt of funds belonging to an Indian tribal organization that had been converted or willfully misapplied with restitution of $106,497.
Additionally, Gloria Lee aka Gloria Rouillard, aka Gloria Lopez made her initial appearance on an Information charging one count of Embezzlement, Conversion or Misapplication of Property from Indian Tribal Government receiving federal funds and one count of Money Laundering.
Embezzlement, Conversion or Misapplication of Property from an Indian Tribal government receiving federal funds carries a penalty of not more than 10 years imprisonment, three years of supervised release and a fine of up to $250,000. Money laundering carries a penalty of not more than 20 years imprisonment, three years of supervised release and a fine of up to $500,000. Receipt of funds belonging to an Indian tribal organization that has been converted or willfully misapplied carries a penalty of not more than five years of imprisonment, three years of supervised release, and a fine of not more than $250,000.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Pegeen D. Rhyne.
Eagle Butte Man Sentenced for LarcenyRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Larceny was sentenced on February 5, 2018, by, U.S. District Judge, Roberto A. Lange.
Bradlee One Feather, age 28, was sentenced to time served, 3 years of supervised release, $4,077.99 due in restitution and a special assessment to the Federal Crime Victims Fund in the amount of $100.
One Feather was indicted by a federal grand jury on August 16, 2017. He pled guilty on November 15, 2017.
The conviction stemmed from an incident on February 5, 2017, in Dewey County, South Dakota when One Feather took a Dodge pickup from an individual knowing that the vehicle had been stolen. One Feather then drove the pickup from Eagle Butte to Little Eagle, South Dakota. From there, One Feather drove the pickup to McLaughlin, South Dakota to visit people and buy beer. One Feather then drove the pickup back to Little Eagle to drop people off and while in the process, he got the pickup stuck.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
One Feather was immediately turned over to the custody of the U.S. Marshals Service.
Doraville, Georgia, Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Marcos Antonio Lopez, age 27, of Doraville, Georgia, pled guilty to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years or more than life imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleged that on or about December 12, 2017, within the Eastern District of Oklahoma, the Defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.The charges arose from an investigation by the Sequoyah County Sheriff’s Office, the Oklahoma Highway Patrol, and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Kristin Harrington represented the United States.
Dominican National Sentenced for Narcotics TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for trafficking heroin, fentanyl and cocaine.
Luis Jose Mejia Arias, 24, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 16 months in prison and three years of supervised release. Mejia Arias will be subject to deportation upon completion of his sentence. In August 2017, Mejia Arias pleaded guilty to eight counts of possession with intent to distribute heroin, cocaine and fentanyl.
On eight occasions between September 2015 and May 2016, Mejia Arias distributed heroin, cocaine and/or fentanyl to an undercover officer in Waltham.
United States Attorney Andrew E. Lelling and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance was provided by the Suburban Middlesex County Drug Task Force. Assistant U.S. Attorneys Miranda Hooker and Susan Winkler of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Felipe Rodolfo Baez-Romero, 46, was sentenced by U.S. District Court Chief Judge Patti B. Saris to eight months in prison. Baez-Romero will be subject to deportation proceedings upon completion of his sentence. In December 2017, Baez-Romero pleaded guilty to one count of illegal reentry of a deported alien.
On Sept, 29, 2017, law enforcement in Boston encountered Baez-Romero and determined that he was unlawfully present in the United States. Baez-Romero was previously deported on May 7, 2013, and in June 2011.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Convicted Heroin Dealer Sentenced to 10 Years in Prison for Trafficking Heroin and Deadly FentanylRead the Press Release
PITTSBURGH – Henry T. Little-Proctor a/k/a "Bundles", of McKeesport, Pennsylvania, was sentenced in federal court to 10 years in prison as a result of his conviction on multiple charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
Little-Proctor, age 27, previously pleaded guilty to five counts before United States District Judge Cathy Bissoon.
The court was advised that Little-Proctor conspired to distribute and possessed with intent to distribute both heroin and the even more potent synthetic opiate fentanyl, from late 2015 through July 20, 2016. Specifically, the federal investigation revealed that Little-Proctor was involved with a fentanyl sale on July 13, 2016, and a heroin sale on July 18, 2016. DEA then executed a federal search warrant on July 20, 2016 at a residence utilized by Little-Proctor. There, federal agents located Full Metal Jacketed ammunition for a .223 Rem caliber assault-style rifle and .22 caliber ammunition, as well as 25 "bundles" (250 stamp bags) of heroin. A receipt for the purchase of the .223 Rem caliber ammunition from Gander Mountain was located in the residence and showed that it was purchased on May 14, 2016, along with two extended length magazines for a AR-15 assault-style rifle and a $100 tactical light. The firearms themselves have yet to be located.
Federal law prohibits a person convicted of a prior felony offense from possessing either a firearm or ammunition and the Court was advised that Little-Proctor had been convicted of multiple crimes, including two prior convictions for heroin dealing.
The defendant specifically admitted to selling the fentanyl that caused the July 2016 death of a young woman.
Judge Cathy Bissoon sentenced the defendant to 10 years in prison, followed by six years of supervision by the United States Probation Office and restitution to the victim’s family, after considering the defendant’s criminal, family, educational and work histories.
Assistant United States Attorney Ross E. Lenhardt, of the Violent Crime Section of the U.S. Attorney’s Office, is prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration (DEA) and law enforcement officers from the Duquesne Police Department, Homestead Police Department, and Allegheny County Sheriff’s Office conducted the investigation that led to the prosecution of Little-Proctor.
United States Attorney Brady noted that the investigation was funded by the federal Organized Crime Drug Enforcement Task Force program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal, state, and local agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Cleveland man sentenced to more than a decade in prison after armed carjacking of a grandmother on Mother's DayRead the Press Release
A Cleveland man was sentenced to more than a decade in prison after an armed carjacking of a Cleveland grandmother last Mother’s Day, law enforcement officials said.
Shairon Motley-Lipscomb, 21, was sentenced to 10 years and four months in federal prison after pleading guilty to carjacking and using a firearm during a crime of violence.
On May 14, 2017 – Mother’s Day – Motley-Lipscomb approached a 67-year-old woman while she stood in her driveway talking on her cell phone to her daughter. The victim had recently returned from church services when Motley-Lipscomb brandished a firearm and stole the victim’s 2008 Buick Enclave, according to court documents.
The victim dropped her cell phone. Her daughter, still on the phone, heard Motley-Lipscomb saying to another: “Yeah, I got the car. Meet me at Mom’s,” according to court documents.
“A grandmother on her way home from church on Mother’s Day was talking to her daughter on the telephone,” U.S. Attorney Justin E. Herdman said. “That is when this defendant pointed a gun at her and stole her car. We remain committed to getting defendants like this off our streets and making our communities safer.”
“There is no place for an individual like this in our community,” stated Trevor Velinor, ATF’s Special Agent in Charge for the Columbus Field Division. “A person who is so willing to violate our laws and societal norms, against a mother on Mothers’ Day no less, needs to be removed from our community so he can do no further harm.”
This case was prosecuted by Assistant U.S. Attorney Brian McDonough following an investigation by the Cleveland Division of Police and the Bureau of Alcohol, Tobacco and Firearms.
Citizen of Dominican Republic Sentenced to 36 Months in Prison for Participating in Heroin Trafficking ConspiracyRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Maria Miguelina Lara Lara, a/k/a Maribel Santiago-Ramos, a/k/a La Cuna, a/k/a Miguelina, 33, of the Dominican Republic was sentenced to 36 months in federal prison for participating in a heroin trafficking conspiracy.
Documents filed with the court established that Lara Lara participated in a drug trafficking organization (DTO) between October 2015 and October 2016 during which time she delivered drugs to customers of the DTO on a daily basis. The Lawrence-based organization distributed heroin to customers from Massachusetts and New Hampshire.
The defendant pleaded guilty on July 24, 2017, to conspiracy to distribute, and possess with intent to distribute, heroin.
The investigation and prosecution of Lara Lara was part of a Drug Enforcement Administration (DEA) effort to address heroin distribution in New Hampshire. In addition to Lara Lara’s prosecution, Alberto Guerrero Marte, 38, was sentenced to 15 years in prison, his brother Toribio Guerrero Marte was sentenced to 10 years in prison, Allison DeJesus, 19, was sentenced to five years of probation, Jonaly DeJesus, 22, was sentenced to time served and five years of supervised release, Allan Raymond Pimentel, 21, was sentenced to 57 months in prison, and Jose De la Altagracia Pimental Lara a/k/a Luis Colon, 26, was sentenced to 63 months in prison. Michell DeJesus, 34, Santo Rodolfo Garcia Mendez, 33, Wilkin Andres Beltre Arias, 39, and Edward Garcia, 31, are all awaiting sentencing. In a related case, Mark Gagnon, 54, of Candia, was sentenced to 48 months.
“Members of the law enforcement community are working together to stop the flow of heroin and other deadly drugs into New Hampshire,” said Acting U.S. Attorney Farley. “While we strongly support access to treatment for those suffering from addiction, those who profit from the distribution of these substances will be prosecuted aggressively.”
"The state of New Hampshire is faced with a fentanyl and heroin crisis unlike ever before," said DEA Special Agent in Charge Michael J. Ferguson. "Those suffering from fentanyl and heroin addiction need treatment and recovery, but those that distribute and profit from spreading this misery need to be held accountable. This investigation demonstrates the strength and continued commitment of our local, state and federal partners and our strong relationship with the U.S. Attorney's Office."
“This case is a great example of how close cooperation among federal, state and local law enforcement can successfully complement the overall fight against the devastating opioid epidemic which has tragically destroyed so many lives nationwide and throughout our region,” said Acting Special Agent in Charge Mike Shea, Homeland Security Investigations (HSI).
This matter was investigated by the DEA; HSI; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. The case is being prosecuted by Assistant U.S Attorney Donald Feith.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Cincinnati Woman Sentenced for Embezzling from Employer, Defrauding IRSRead the Press Release
CINCINNATI – Angelia Zwick, also known as Angelia Strunk, 47, of Cincinnati, was sentenced to 21 months in prison for defrauding her employer.
Zwick, who was convicted of one count of wire fraud and one count of willfully filing a false income tax return with the IRS, was also ordered to pay nearly $329,000 in restitution to Sheakley Group, Inc. and its insurers and nearly $122,000 in restitution to the IRS.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ryan L. Korner, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, and Yvonne Dicristoforo, Special Agent in Charge, U.S. Secret Service, announced the sentence handed down today by U.S. District Judge Susan J. Dlott.
According to court documents, from approximately July 2009 through May 2013, Angelia Zwick worked for Sheakley Group, Inc. and devised a scheme to defraud her employer by embezzling funds in excess of her authorized pay and compensation. Zwick wired the stolen funds from her employer’s bank account to a bank account for Amerihealth and Life Solutions, LLC, a company owned by Zwick.
As a result, Zwick took more than $328,000 of refunds and other payments intended for her employer and diverted those funds into bank accounts that she controlled.
In addition, Zwick filed false income tax returns with the IRS for the 2010, 2011 and 2012 income tax years, for which she owes $121,810 in additional income taxes. For the 2010 income tax year, Zwick failed to report as income the funds she embezzled from her employer. For the 2011 and 2012 income tax years, Zwick claimed false expenses for Amerihealth.
“We are early in this year’s tax filing season and this case should serve as a reminder that no matter what the source of income, all income is taxable, even stolen money,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Glassman commended the investigation of this case by the IRS and U.S. Secret Service, and Assistant U.S. Attorney Timothy Mangan, who is prosecuting the case.
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California Man Sentenced to Life Imprisonment for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
U.S. Attorney Duane A. Evans announced that, DAN PIZARRO, age 48, a resident of California, was sentenced today for his role in conspiring to distribute methamphetamine and heroin in the New Orleans area. Following a 4-day trial in August 2017, a federal jury found PIZARRO guilty of the sole count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine and a quantity of heroin.
According to the evidence presented at trial, in June 2014, St. Bernard Parish Sheriff’s Office (SBSO) deputies investigating methamphetamine distribution in Arabi, Louisiana, arrested two men who were selling methamphetamine on West Judge Perez Drive. Through their investigation, deputies learned that their source of methamphetamine was a resident of California and that PIZARRO had introduced them to the source, thereby setting the conspiracy into motion.
According to the evidence presented at trial, even after leaving the New Orleans area, PIZARRO continued to direct and supervise the conspiracy. SBSO deputies coordinated with agents from the Drug Enforcement Administration (DEA) New Orleans Field Office, and between June 26th and 27th, 2014, federal agents and SBSO deputies intercepted four packages containing methamphetamine being mailed through Federal Express to Arabi, Louisiana. In total, the four packages contained over one kilogram of methamphetamine. According to DEA laboratory analysts, the methamphetamine in all four packages had a purity level of over 99%, with one shipment testing as 100% pure methamphetamine.
U.S. District Judge Martin L.C. Feldman sentenced PIZARRO to life imprisonment and ten year of supervised release.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and St. Bernard Parish Sheriff’s Office, and he thanked the Los Angeles Police Department for their assistance in this investigation. Assistant United States Attorneys Shirin Hakimzadeh and Matthew Payne were responsible for the prosecution.
California Man Pleads Guilty to His Role in Illegal Immigration SchemeRead 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 Marguin Sanchez, 23, of California, pleaded guilty to conspiracy to employ unlawful aliens before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison and $250,000 fine.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that the defendant, along with co-defendant Jose Sanchez-Ocampo, assisted co-defendant Sergio Ramses Mucino, in hiring illegal aliens to work at four Mexican restaurants including Don Tequila on Allen Street in Buffalo, El Agave on Union Road in Cheektowaga, Agave on Elmwood Avenue in Buffalo, and La Divina on Delaware Avenue in Kenmore. The defendant was responsible for paying wages to the workers in cash and purchasing homes in his name where the illegal aliens who worked in the restaurants resided.
Jose Sanchez-Ocampo has been convicted and is scheduled to be sentenced on March 5, 2018. Charges are pending against Sergio Ramses Mucino. 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.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Marguin Sanchez is scheduled to be sentenced on June 7, 2018, at 2:30 p.m. before Chief Judge Geraci.
California Couple Sentenced for Drug Trafficking and Firearm OffensesRead the Press Release
LEXINGTON, Ky. - A couple from Fresno, Cal. has been sentenced to federal prison for drug and firearm offenses. Chief U.S. District Judge Karen K. Caldwell formally sentenced the couple on Wednesday, February 7, 2018.
Jessica Acosta, 29, and Luis R. Morales-Montanez, 27, were each sentenced to 15 years in prison, for possession with the intent to distribute 500 grams or more of methamphetamine, cocaine, and marijuana. Both were also convicted of possessing nine firearms, during and in furtherance of the drug crimes. Both forfeited ownership of the firearms, $42,507 in cash, and a 2013 Chevy pickup truck.
In their guilty pleas, Acosta and Morales-Montanez previously admitted that they traveled from Fresno, to Lexington and established a residence on Larkin Road in early 2017. They then possessed with intent to distribute marijuana and cocaine from the residence. They also admitted that the cash found was proceeds of the distribution of drugs and that the 2013 truck and nine firearms were used in furtherance of the distribution of drugs. Additionally, on October 25, 2017, a federal jury convicted both of possessing with the intent to distribute more than half a kilogram of crystal methamphetamine, which they had concealed in another apartment near their Larkin Road address.
Under federal law, both Acosta and Morales-Montanez must serve 85 percent of their prison sentences; and upon release, they will each be under the supervision of the United States Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Christopher Evans, Special Agent in Charge, DEA; and Acting Chief of Police Ron Compton, Lexington Police Department, jointly announced the sentences.
These cases were prosecuted as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Buffalo Man Sentenced for Obstructing JusticeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy announced today that Jeffrey Mills, 47, of Buffalo, NY, who was convicted of obstruction of justice, was sentenced to 65 months in prison by U.S. District Judge Richard J. Arcara.
“Our entire adversarial system of justice is dependent upon the truthful testimony of witnesses in a court of law,” stated U.S. Attorney Kennedy. “However, when the greatest fear perceived by a witness is that such witness will face retaliation in the event that they provide truthful testimony, the entire system breaks down. We cannot and will not allow that to happen. Truth is the voice of justice. Hopefully, this prosecution and today’s sentencing sends a loud and clear message to the community that the men and women of my Office, together with our law enforcement partners, will do all that we can to protect the rule of law and to ensure that the truth is never silenced.”
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that on May 21, 2015, the defendant provided information to his parole officer, law enforcement officers and a prosecutor regarding two homicides and a robbery/kidnapping. Mills stated that he saw his cousin, Thamud Eldridge, run from the area where Sam Jones, Jr., aka Smokey, was murdered. The night Smokey was killed, Mills said that he was riding a bicycle on Bissell Avenue when he heard gunshots. The defendant then saw his cousin Eldridge run through the “cut” from Goodyear Avenue to Bissell Avenue, and get into a vehicle that was driven by Kevin Allen and depart the area. Mills also stated that he spoke with an individual who was also on Bissell Avenue and saw Eldridge toss a gun to the individual after the shooting and heard Eldridge ask that individual to “put that joint up,” meaning to hide the firearm. After the murder, the defendant said Eldridge left Buffalo and traveled to Atlanta, Georgia. After returning to Buffalo, Mills said Eldridge told him that he intended to rob Smokey and “everything went wrong,” meaning the defendant killed Smokey. The defendant also gave information about other criminal activity committed by Eldridge. At the conclusion of the interview, the prosecutor told the defendant that he would be called as a witness in the trial against his cousin Thamud Eldridge.
On January 6, 2016, the defendant met with the prosecutor and two law enforcement for pretrial preparation at which time he again recounted hearing gunshots and seeing his cousin Eldridge run through the “cut” from Goodyear Avenue to Bissell Avenue the night Smokey was killed. At the conclusion of the pretrial preparation, the prosecutor once again told Mills he would be called as a trial witness.
On February 3, 2016, the prosecution called the defendant as a witness in United States v. Eldridge, et al. As U.S. Marshals Service deputies escorted Mills into the courtroom, the defendant walked by his cousin Eldridge and winked his eye at Eldridge and then sat on the witness stand. Mills refused to be sworn and told the Court that, “it wasn’t going to happen.” The Judge cautioned the defendant about criminal contempt and Mills was assigned counsel.
The following day, on February 4, 2016, the defendant took the stand again and agreed to take the oath. The prosecutor questioned Mills regarding the murder of Smokey but the defendant stated he could not remember. When confronted with information he previously gave, Mills testified falsely and feigned memory loss by repeatedly stating that he said he did not recall, did not remember and that he had no recollection of that day. The defendant willfully answered questions this way to impede the due administration of justice.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Kevin P. Lyons; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict; and the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci.
Brooklyn Man Charged with Demanding and Receiving Kickbacks on Federally Funded Construction ContractRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter Nozka, the Acting Special Agent-in-Charge of the New York Regional Office of the U.S. Department of Labor, Office of Inspector General (“DOL-OIG”), announced today that ERRON STRACHAN, a former foreman on a federally funded residential housing construction project in Harlem, was arrested this morning and charged in Manhattan federal court with soliciting and receiving kickbacks from workers on the project. STRACHAN was arrested this morning and will be presented this afternoon in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, a foreman on a federally funded construction project abused his position by demanding kickbacks from workers who were legally entitled to a prevailing wage. Allegedly, when workers spoke up, he fired them. Together with our partners at the Department of Labor, Office of Inspector General, we will pursue those who deliberately and criminally take advantage of hard-working New Yorkers.”
DOL-OIG Acting Special Agent-in-Charge Peter Nozka said: “An important mission of the Office of Inspector General is to investigate allegations regarding employees being forced to kickback portions of their wages. We will continue to work with our law enforcement partners to investigate these types of allegations.
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court and publicly available documents:
From at least November 2014 to December 2015, ERRON STRACHAN was a foreman for a construction company (“Contractor-1”) that provided construction services at the Randolph Houses, a public housing project located in the Harlem neighborhood of Manhattan (the “Construction Project”). STRACHAN’s responsibilities on the Construction Project included supervising the workers on site, hiring and firing employees, and disbursing checks to workers. Because the Construction Project received funding from the U.S. Department of Housing and Urban Development, pursuant to the Davis-Bacon and Related Acts, Contractor-1 was required to pay its laborers a prevailing wage.
STRACHAN demanded and received kickbacks from numerous employees of Contractor-1 who worked on the Construction Project, thus denying these employees the prevailing wage to which they were entitled. STRACHAN would instruct employees to negotiate their paychecks and then return with cash, sometimes up to almost a third of an employee’s weekly paycheck, for himself. STRACHAN brazenly attempted to justify the kickback requests to employees by suggesting that the prevailing wage salary was “too much” money and falsely stating that he provided the kickbacks to Contractor-1 in order to offset the financial burden on Contractor-1 of having to pay prevailing wages on the Construction Project. When workers refused to pay kickbacks, STRACHAN reduced their work schedules and fired them.
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STRACHAN, 53, of Brooklyn, New York, is charged with one count of violating the Copeland Anti-Kickback Act, which carries a maximum penalty of five years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the investigative work of the DOL-OIG and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitutes only allegations, and every fact described should be treated as an allegation.