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6 February 2018
Kansas Man Charged with Distributing Child PornRead the Press Release
WICHITA, KAN. – A Reno County man is facing federal charges of distributing child pornography, U.S. Attorney Stephen McAllister said today.
Shane Ragsdale, 30, Hutchinson, Kan., is charged with four counts of distributing child pornography via the internet and one count of possession of child pornography.
If convicted he faces a penalty of not less than five years in federal prison and a fine up to $250,000 on each distribution count, and up to 10 years and a fine up to $250,000 on the possession count. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
KC Man Pleads Guilty to Meth Trafficking, Faces 25 Years in PrisonRead 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 possessing nearly five kilograms of methamphetamine to distribute during a law enforcement operation in which another individual was fatally shot.
Michael J. Wilkins, 27, of Kansas City, pleaded guilty before U.S. District Judge Howard F. Sachs to possessing methamphetamine with the intent to distribute.
By pleading guilty today, Wilkins admitted that he was a leader of a major methamphetamine distribution operation. Wilkins, under surveillance by law enforcement, was seen entering a known methamphetamine stash house in the 3000 block of S. Bellefontaine Avenue in Kansas City, Mo., on June 8, 2016. When Wilkins left the house, he was carrying a box and a backpack, which he placed in his vehicle.
Law enforcement officers approached Wilkins while he was getting into his vehicle and attempted to detain him. Wilkins fled on foot and was subsequently taken into custody. In his path of flight, which was captured by the National Guard counterdrug helicopter surveillance, officers recovered one of his shoes, his cell phone and a handgun.
Officers executed a search warrant on Wilkins’s vehicle and found 4,764 grams of methamphetamine and $12,363 in the box and backpack he had carried from the stash house.
During the foot chase of Wilkins, law enforcement officers executed a search warrant at the Bellefontaine residence. That operation led to an hours-long standoff when persons inside the house fired shots at law enforcement officers. Luis Carlos Garcia-Aguilar, also known as “Moe,” fired several shots at officers then ran from the house with his rifle aimed at the officers; he was fatally shot.
Under the terms of today’s plea agreement, Wilkins is subject to a sentence of 25 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 Matthew Moeder. It was investigated by the Independence, Mo., Police Department, the Jackson County Drug Task Force and the Drug Enforcement Administration.
Jefferson County, Ohio man indicted on firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Wintersville, Ohio man was indicted today by a federal grand jury on a firearms charge, United States Attorney Bill Powell announced.
Shaheim Price, age 23, was indicted on one count of “Unlawful Possession of a Firearm.” Price, having previously been convicted of a felony, is accused of possessing a 9mm pistol. The crime is alleged to have occurred in Ohio County in October 2017.
Price faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Steven L. Vogrin is prosecuting the case on behalf of the government. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Jefferson County, Ohio man indicted on drug distribution and firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – A Steubenville, Ohio man was indicted today by a federal grand jury on drug and firearm charges, United States Attorney Bill Powell announced.
Emory Chiles, age 43, was indicted on one count of “Possession with Intent to Distribute Heroin,” one count of “Use of a Firearm During and in Relation to a Drug Offense,” and one count of “Unlawful Possession of a Firearm.” Chiles is accused of distributing heroin and being in possession of a 9mm pistol in Monongalia County in November 2017. Chiles was previously convicted of a felony in the Northern District of West Virginia
Chiles faces up to 20 years incarceration and a fine of up to $1,000,000 for the first count, faces up to five years incarceration and a fine of up to $250,000 for the second count, and faces up to 10 years incarceration and a fine of up to $250,000 for the third count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Monongalia County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Jefferson County, Ohio man indicted on counterfeit chargesRead the Press Release
WHEELING, WEST VIRGINIA – A Mingo Junction, Ohio man was indicted today by a federal grand jury on counterfeit currency charges, United States Attorney Bill Powell announced.
Travis Knight, age 32, was indicted on one count of “Uttering Counterfeit Currency,” and one count of “Attempted Uttering of Counterfeit Currency.” Knight is accused of passing counterfeit $50 bills and attempting to pass counterfeit $50 bills in Marion and Monongalia Counties in October and November 2017.
Knight faces up to 20 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The United States Secret Service investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Jefferson City Man Pleads Guilty to Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man pleaded guilty in federal court today to his role in a conspiracy that distributed multiple pounds of methamphetamine in Cole County, Mo.
Jasper Jarrard Richmond, 25, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to participating in a conspiracy to distribute methamphetamine in Cole County from July 22, 2015, to Oct. 6, 2016.
Richmond was arrested on Oct. 6, 2016, while driving back from Oklahoma City, where he had picked up a pound of methamphetamine to distribute locally. Richmond admitted that he wanted to help co-defendant Jameson Trevor Smith, 28, of Lake Ozark, Mo., pay a drug debt. Smith had been arrested with two pounds of methamphetamine in his possession; as a result, they owed their suppliers approximately $70,000.
Richmond admitted that he started to transport methamphetamine from St. Louis, Mo., for an organization after his release from prison in the summer of 2015. In 2015, Richmond estimated that he had transported approximately four pounds of methamphetamine during that time. Of that amount, he received approximately one pound to distribute himself. Richmond asked Smith, whom he had met in prison, to assist him with the distribution of methamphetamine. In the summer of 2016, Richmond made another trip to St. Louis and obtained approximately five pounds of methamphetamine, of which he and Smith distributed approximately two pounds.
Smith pleaded guilty to his role in the drug-trafficking conspiracy and was sentenced on June 29, 2017, to 10 years in federal prison without parole.
Under federal statutes, Richmond 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 Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, the Mid-Missouri Unified Strike Team and Narcotics Group (MUSTANG), the Cole County, Mo., Sheriff’s Department, the Jefferson City, Mo., Police Department and the Missouri State Highway Patrol.
Independence Business Owner Pleads Guilty to Distributing K2, Accepting Food StampsRead the Press Release
KANSAS CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that the owner of two Independence, Mo., stores pleaded guilty in federal court today to distributing controlled substance analogues, synthetic cannabinoids also known as K2, and for accepting food stamps as payment for K2.
Haq Nawaz Choudhry, 53, of Kansas City, Mo., pleaded guilty before U.S. Chief District Judge Greg Kays to participating in a conspiracy to distribute a controlled substance and controlled substance analogue, and to participating in a money-laundering conspiracy. Choudhry is the president of H Habib Enterprises, Inc., which owned the Short Stop convenience store and Kerns Liquor, located next door to each other at 9013 E. U.S. 40 Highway in Independence and operated by Choudhry.
According to today’s plea agreement, an undercover Jackson County Drug Task Force detective and three people conducting undercover transactions on behalf of the U.S. Department of Agriculture made a series of purchases from both Short Stop and Kerns from Feb. 14 to Oct. 22, 2013. The undercover purchases used cash on some occasions, and EBT cards (used to redeem Supplemental Nutrition Assistance Program – SNAP – benefits, also known as food stamps) on other occasions, to purchase synthetic cannabinoids.
During the course of the investigation Choudhry concealed the sale of synthetic cannabinoids by conducting financial transactions through the point-of-sale terminal, using EBT cards. The purchases would routinely be processed as “food purchases” with funds electronically deposited into the company’s bank account, thus concealing the proceeds of the controlled substance analogue sales. Choudhry specifically admitted, for example, that he fraudulently processed a $46.50 purchase of synthetic cannabinoids using SNAP benefits on May 30, 2013.
Law enforcement officers executed a search warrant at Kern’s and Short Stop on Oct. 22, 2013. Officers recovered synthetic cannabinoids and drug paraphernalia from both businesses. Officers also seized $21,135 from Short Stop and $308 from Kerns. Choudhry was not present during the execution of the warrant. On Feb. 11, 2014, officers returned to Kerns and Short Stop based on a complaint that the business was selling K2 again. Choudhry was contacted and denied that any such sales were occurring, and gave written permission for the detectives and officers on scene to search both of his stores for illegal items. Officers recovered additional synthetic cannabinoids and drug paraphernalia from Kerns. Officers also seized $6,000 from Kerns.
The court will determine the final amount of a money judgment against Choudhry for his financial gain from these illegal activities. Under the terms of today’s plea agreement, the $27,443 seized by law enforcement officers will be credited toward the final judgment amount.
Under federal statutes, Choudhry is subject to a sentence of up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Adam Caine. It was investigated by the U.S. Department of Agriculture, Office of Inspector General and the Independence, Mo., Police Department.
Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Duane A. Evans announced that EDY GARCIA-BANEGAS, age 32, a citizen of Honduras, was charged today in a one-count bill of information with illegal reentry of a removed alien after deportation, in violation of 8 U.S.C. ' 1326.
According to the bill of information, EDY GARCIA-BANEGAS reentered the United States prior to on or about December 14, 2017, after having been previously removed therefrom on or about January 6, 2012.
If convicted, EDY GARCIA-BANEGAS faces a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Home Furnishings Resource Group Inc. Agrees to Pay $500,000 to Settle False Claims Act Allegations Relating to Evaded Customs DutiesRead the Press Release
The Department of Justice announced today that Home Furnishings Resource Group Inc. (HFRG) has agreed to pay $500,000 to resolve allegations that it violated the False Claims Act by making false statements on customs declarations to avoid paying antidumping duties on wooden bedroom furniture imported from the People’s Republic of China (PRC). HFRG, which also operates under the name Function First Furniture, imports, among other things, bedroom furniture that is sold for use in university student housing. The company is headquartered in Hermitage, Tennessee.
“The customs laws are intended to protect domestic companies and American workers from unfair foreign competition,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This settlement shows our commitment to pursue those who violate these laws and gain an illegal advantage in U.S. markets by evading the import duties owed on foreign-made goods.”
The settlement announced today resolves allegations that HFRG evaded antidumping duties owed on wooden bedroom furniture that the company imported from the PRC between 2009 and 2014, by misclassifying the furniture as non-bedroom furniture on its official import documents. Antidumping duties protect against foreign companies “dumping” products on the U.S. market at prices below cost. The Department of Commerce assesses, and the U.S. Department of Homeland Security’s Customs and Border Protection (CBP) collects, these duties to protect U.S. businesses and level the playing field for domestic products. Imports of PRC-made wooden bedroom furniture have been subject to antidumping duties since 2004. At the time of the alleged conduct in this case, wooden bedroom furniture from the PRC was subject to a 216 percent antidumping duty; non-bedroom furniture was not subject to any antidumping duty.
“CBP is committed to ensuring a level playing field for all American businesses,” said Brenda Smith, Executive Assistant Commissioner, Office of Trade, CBP. “We work with our federal partners to hold accountable those looking to circumvent U.S. trade laws.”
The settlement with HFRG resolves a lawsuit filed in the Western District of Texas by University Loft Company, a competitor of HFRG, under the whistleblower provision of the False Claims Act. The act permits private parties to sue on behalf of the United States those who falsely claim federal funds or, as in this case, who avoid paying funds owed to the government. The act also allows the whistleblower to receive a share of any funds recovered. As part of today’s resolution, University Loft Company will receive approximately $75,000.
The investigation was handled by the Department of Justice Civil Division, Commercial Litigation Branch, with assistance from CBP and the Department of Commerce International Trade Administration.
The lawsuit is captioned United States ex rel. University Loft Company, L.P. v. Home Furnishings Resource Group, Inc., et al., Case No. 15-CV-646 (W.D. Tex.). The claims resolved by this settlement are allegations only; there has been no determination of liability.
Hidalgo County Judge Arrested and Charged with BriberyRead the Press Release
McALLEN, Texas - A Texas state district judge has been arrested on allegations he accepted approximately $6000 in cash bribes, announced U.S. Attorney Ryan K. Patrick, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Christopher Combs of the FBI - San Antonio Division.
Rodolfo “Rudy” Delgado, 64, of Edinburg, is currently the presiding judge for the 93rd District Court for the State of Texas and has jurisdiction over Texas criminal and civil cases located within Hidalgo County. He was charged in a criminal complaint with bribery concerning programs receiving federal funds.
Authorities took Delgado into custody on Friday. He made his initial appearance earlier today before U.S. Magistrate Judge Scott Hacker, at which time he was permitted release upon posting $100,000 bond.
The criminal complaint alleges Delgado accepted bribes from an attorney in exchange for favorable judicial consideration on cases pending in his courtroom. Delgado allegedly accepted bribes on three separate occasions in exchange for Delgado agreeing to release three clients on bond with cases pending before his court. The first two bribes allegedly totaled approximately $520 in cash. The third bribe occurred in January 2018, at which time Delgado accepted approximately $5,500 in cash, according to the charges.
If convicted, Delgado faces up to 10 years in federal prison.
The FBI conducted the investigation. Assistant U.S. Attorneys Julie Searle and Robert Guerra and Trial Attorneys Peter Nothstein and Todd Gee of the Criminal Division’s Public Integrity Section are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Harrison County man indicted on drug distribution and firearm chargesRead the Press Release
WHEELING, WEST VIRGINIA – A Clarksburg, West Virginia man was indicted today by a federal grand jury on drug distribution and firearm charges, United States Attorney Bill Powell announced.
James Bailey, age 33, was indicted on one count of “Distribution of Methamphetamine,” one count of “Use of a Firearm During and in Relation to a Drug Offense.” Bailey is accused of selling methamphetamine and being in possession of a firearm during the drug offense in Harrison County in January 2018.
Bailey faces up to 20 years incarceration and a fine of up to $1,000,000 for the first count and faces up to five years incarceration and a fine of up to $250,000 for the second count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greater Harrison County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Hancock County woman admits to making a false statementRead the Press Release
WHEELING, WEST VIRGINIA – A New Cumberland, West Virginia woman admitted today making a false statement when applying to the United States Small Business Administration (SBA) Small Business and Capital Ownership Development Program, United States Attorney Bill Powell announced.
Nichole P. Northcraft, 44, pled guilty to one count of “False Official Writings.” Northcraft, as a minority, made a false claim about business ownership to benefit from the SBA’s program.
The Small Business Administration operates programs to assist socially or economically disadvantaged business operators. The businesses must be unconditionally owned and controlled by the qualifying individuals in order to comply with federal law.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The U.S. Small Business Administration Office of Inspector General, the Defense Criminal Investigative Service, the U.S. Department of Veterans Affairs Office of Inspector General, the U.S. Department of Labor Office of Inspector General, and the Federal Bureau of Investigation investigated.
U.S. Magistrate Judge James E. Seibert presided.
Guatemalan National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national pleaded guilty yesterday in federal court in Worcester to illegally reentering the United States after deportation.
Enri Nemias Vega, 31, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for May 2, 2018.
Vega was previously deported in 2012. On May 20, 2017, Vega was encountered by law enforcement in Sutton and determined to be illegally present in the United States.
Vega faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of up to $250,000 and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office is prosecuting the case.
Greenville Man Sentenced to 84 Months in Federal Prison for Role in Cocaine Trafficking ConspiracyRead the Press Release
DALLAS —Julio Cesar Torres, 52, of Greenville, Texas was sentenced today by U.S. District Judge Sam A. Lindsay to 84 months in federal prison, following his guilty plea in September 2017 to one count of conspiracy to possess with intent to distribute and to distribute a schedule II controlled substance, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
According to the plea agreement factual resume filed in the case, on March 17, 2017, Torres made arrangements to sell multiple kilograms of cocaine for $26,500 per kilogram. Torres obtained the cocaine from codefendants Miguel Angel Almazan-Loya and Jose Juan Ortiz-Pacheco at an apartment complex on Ferguson Road in Dallas.
Officers subsequently arrived with a search warrant and searched the apartment. The search revealed approximately three kilograms of cocaine wrapped in plastic wrap and black colored tape contained within a yellow bag further contained within a cardboard box located in the residence.
The Drug Enforcement Administration investigated the case with assistance from the Dallas County Sheriff’s Department and the City of Lewisville Police Department. Assistant U.S. Attorney George Leal was in charge of the prosecution.
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Greater Upstate Reentry Job Fair & Expo to Help People with Criminal Records to Find JobsRead the Press Release
Greenville, South Carolina – The United States Attorney’s Office, the South Carolina Department of Probation, Parole and Pardon Services; SC Works; SC Vocational Rehabilitation; SC Department of Employment and Workforce; SC Department of Social Services; and the US Probation Office are continuing their statewide partnership to help individuals with prior criminal backgrounds secure employment.
The Second Annual Greater Upstate Reentry Job Fair & Expo is being held Thursday, February 15, 2018, from 10:00 am to 1:00 pm at the McAlister Square, located at 225 S. Pleasantburg Drive, Greenville, SC.
This fair, which is especially intended as a resource for Upstate residents, is part of a series of fairs, including Florence, the Midlands, and the Lowcountry, held annually. The partner organizations believe that a tailored expo for people with a criminal background will provide some focused help for the particular obstacles individuals face after returning home.“Studies have demonstrated the essential role a job plays in the success of individuals returning from prison. Our state partners have tremendous expertise in hosting resource fairs and it is our privilege to partner with them in developing job fairs specifically for individuals with a criminal background,” said U.S. Attorney Beth Drake.
The fair and expo will include area employers friendly to hiring individuals with a criminal background and other organizations who participate with, and provide resources for, returning citizens. Any interested employers or vendors should inquire with Diana Goldwire at (864) 315-9751 or [email protected].
Professional dress is required. As always, the event will feature workshops on how to seek expungements and pardons of prior criminal convictions.
“We are excited to connect South Carolinians to job opportunities. Where formerly incarcerated South Carolinians have stable jobs and lives, they are less likely to get in trouble with the law. Employment is crime prevention and a part of community health, vitality and safety,” said USA Drake.
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Gary Man Sentenced to 57 Months ImprisonmentRead the Press Release
HAMMOND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Corey Taylor, 35, of Gary, IN, was sentenced on February 6, 2018 by District Court Judge Jon E. DeGuilio to 57 months imprisonment for Distribution of Heroin. The Court ordered the sentence to be served consecutively to an 8 month sentence imposed by Judge Phillip P. Simon on November 13, 2017 for Taylor’s violation of supervised release conditions after a prior federal drug conviction.
According to Court filings, Taylor was selling heroin over a period of at least three months. Some of the heroin was laced with fentanyl and carfentanil. Fentanyl is a synthetic opioid that is 50 times more potent then heroin and carfentanil is a synthetic opioid that is 100 times more potent than fentanyl.
The DEA/HIDTA group and Gary Police Department purchased heroin from Taylor on three occasions under controlled conditions. A search of his vehicle and home yielded more controlled substances, which were also seized.
This case was investigated by the Drug Enforcement Administration/Lake County HIDTA Group in cooperation with the Gary Police Department and prosecuted by Assistant United States Attorney Thomas McGrath.
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Garfield Heights man indicted on carfentanil, fentanyl, heroin and firearms chargesRead the Press Release
A Garfield Heights man was indicted on carfentanil, fentanyl and firearms charges, U.S. Attorney Justin Herdman said.
Tyrone Cammon, 29, was charged in a seven-count indictment with possession with intent to distribute carfentanil, fentanyl, heroin and fentanyl analogues, using a firearm in relation to drug trafficking, and being a felon in possession of a firearm.
“This defendant sold the same drugs that have killed thousands of our friends and relatives and illegally carried a firearm as part of his drug trafficking,” Herdman said.
Cammon possessed fentanyl for distribution on April 9, 2016, as well as a firearm he used in relations to his drug trafficking, according to the indictment.
He possessed heroin and more than 12 grams of methoxyacetylfentanyl, carfentanil and fentanyl pharmacophore for distribution, according to the indictment.
Cammon possessed two Glock .40 caliber pistols and a FNH 5.7x28mm pistol at various times in March 2016, April 2016 and November 2017, despite three previous convictions for drug trafficking, a previous conviction for assault and a previous conviction for attempted tampering with evidence, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Scott Zarzycki and Kelly L. Galvin following an investigation by the Lakewood and Cleveland Police Departments, the Bureau of Alcohol Tobacco and Firearms and the U.S. Marshals.
An indicitment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Office Manager Sentenced for Wire Fraud and Filing a False Tax Return Related to Embezzlement of FundsRead the Press Release
DENVER – Kimberly Pitts, age 48, of Pueblo, Colorado, was sentenced late last week by U.S. District Court Judge Philip A. Brimmer to serve 41 months in federal prison, followed by 3 years of supervised release for wire fraud and filing a false tax return, U.S. Attorney Bob Troyer, IRS Criminal Investigation Special Agent in Charge Steven Osborne and FBI Denver Division Special Agent in Charge Calvin Shivers announced. Pitts, who pled guilty on July 28, 2017, was also ordered to pay restitution of $768,439 to victim Associates in Gastroenterology (AG) and $382,014.58 to the Internal Revenue Service.
According to the information and plea agreement, Associates in Gastroenterology (AG) hired Pitts as their office manager in February of 2011. Beginning in approximately February of 2011 and continuing through May 30, 2015, Pitts fraudulently diverted funds in the amount of at least $768,439 from AG to herself. Pitts used various methods to divert the funds including making personal charges on credit cards belonging to AG, then using AG’s bank accounts to pay the credit card charges. In addition, Pitts used her access to obtain a new AG credit card without the company’s authorization. She fraudulently used the new credit card to pay for personal purchases. Pitts further wrote fraudulent checks from AG’s bank account, which she deposited to her own accounts and concealed the payments by changing the company’s books and records to reflect that they were payments to vendors. Pitts also wired funds from AG’s bank and retirement accounts into her bank accounts for her personal use.
Pitts willfully and knowingly filed a false federal income tax for the 2014 tax year. Pitts signed the return, under penalties of perjury, knowing that the return was false because it did not include the income she received during the 2014 tax year as a result of the scheme to defraud AG.
“Our prosecutor and our IRS and FBI partners did an exceptional job ensuring that this thief’s victims – including American taxpayers – got justice in this case,” said U.S. Attorney Bob Troyer.
“The role of IRS Criminal Investigation becomes even more apparent in embezzlement and fraud cases due to the complex financial transactions that must be unraveled," said Steven Osborne, Special Agent in Charge, IRS-Criminal Investigation, Denver Field Office. "The federal tax laws are normally violated in these cases which can add to additional jail time. As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm.
“The recent sentencing of Kimberly Pitts should send a strong message to anyone considering engaging in embezzlement or wire fraud,” said FBI Denver Special Agent in Charge Calvin Shivers. “The FBI will continue to work with our law enforcement partners to protect our community’s businesses from those engaged in this type of criminal activity."
This case was investigated by the FBI and the Internal Revenue Service – Criminal Investigation. This case was prosecuted by Assistant U.S. Attorney Jeremy Sibert.
Former Morgan Stanley Executive and Brother of Former Bank of Oswego Vice President Receives Prison Sentence for FraudRead the Press Release
PORTLAND, Ore. – On Tuesday, February 6, 2018, U.S. District Court Judge Michael H. Simon sentenced Gregory Walsh, to 24 months in federal prison followed by a three-year term of supervised release. Walsh had previously pleaded guilty to one count of conspiracy to commit mail and wire fraud in violation of 18 U.S.C. §1349 on April 16, 2016.
According to court documents, beginning in February 2011, Walsh, an Assistant Vice President at Morgan Stanley, worked with his brother Geoffrey Walsh, a former Vice President at the Bank of Oswego, to persuade an Arizona woman into loaning his brother more than $1.1 million for a real estate investment scheme. Walsh told the woman, a client of his at Morgan Stanley and recent widow, that the money would be used to purchase three condominiums in the Palm Springs, California area that would be titled in her name and sold within one year.
Contrary to the promises made, Geoffrey Walsh titled all three properties in the name of his business and did not provide loan or title documentation to his brother’s client. Between May and July 2012, Geoffrey Walsh sold two of the properties without the knowledge or permission of the client and used the proceeds to satisfy personal financial obligations. Later, in November 2012, after learning that his brother had sold the two properties without repaying his client, Walsh failed to reveal this information to the client.
In January 2013, Walsh was again contacted by his brother to gauge the same client’s interest in loaning him an additional $2 million for a real estate development project in Oregon. When discussing the potential loan, the client asked Walsh if his brother was involved in the transaction. Walsh lied to her saying that he was not. Soon thereafter, Walsh transferred the money from his client’s Morgan Stanley account to the client trust account of Geoffrey Walsh’s lawyer without the investor’s knowledge or approval. On March 5, 2013, the majority of these funds – over $1.7 million – were used to pay the balance of a line of credit at the Bank of Oswego for the benefit of Geoffrey Walsh. Geoffrey Walsh spent the remainder of the funds on other financial obligations.
Throughout the duration of the conspiracy, Walsh repeatedly lied to his client about the status her loans, his brother’s financial and legal problems and his own lies in initiating both transactions.
During this same two-year period, Walsh initiated two other transactions that purportedly occurred on behalf of his client. In December 2011, a $100,000 wire was sent from his client’s Morgan Stanley account to a close friend of Geoffrey Walsh’s. Later, in January and February 2012, a transfer of $2 million was sent from the client’s account for an investment in a Colorado-based cannabis company. The investment was discussed with, but never approved by, Walsh’s client. The cannabis company later returned the $2 million loan after meeting with the FBI. The $100,000 transfer was never returned. Walsh made over $18,000 in commissions on these transactions before leaving Morgan Stanley.
Geoffrey Walsh pleaded guilty to one count each of conspiracy to make false bank records, conspiracy to commit mail and wire fraud, and wire fraud and was sentenced to 30 months in federal prison and three years’ supervised release on January 24, 2018.
This case was investigated by the FBI and the FDIC Office of Inspector General (OIG-FDIC) and prosecuted by Claire M. Fay, Michelle Holman Kerin, and Quinn P. Harrington, Assistant U.S. Attorneys for the District of Oregon.
Former Meriden Resident Sentenced to Prison for Stealing from EmployerRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that YOLANDA SILVERIO, 54, of Austin, Texas, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 10 months of imprisonment, followed by three years of supervised release, for theft in connection with health care. Judge Bryant also ordered SILVERIO to perform 150 hours of community service.
According to court documents and statements made in court, SILVERIO, who formerly resided in Meriden, was employed as an Eligibility Coordinator for a Connecticut company that administers trust funds for public and private sector health benefit plans. As Eligibility Coordinator, SILVERIO received checks from individual participants in a particular health plan as payment for their union-related health benefits. Between May 2013 and July 2014, SILVERIO deposited 49 benefit checks totaling $35,461.34 into her own bank accounts.
In 2004, SILVERIO was convicted in federal court for embezzling more than $105,000 from two Connecticut businesses by forging signatures on business checks and was sentenced to 10 months of imprisonment, with five months to serve in home detention with electronic monitoring. SILVERIO’s supervised release was subsequently revoked and she was sentenced to an additional six months of imprisonment for failure to make a required lump sum restitution payment and for material misrepresentations to her probation officer.
Judge Bryant ordered SILVERIO to pay restitution in the amount of $35,461.34, and to notify any future employers in writing of her two prior fraud convictions.
SILVERIO pleaded guilty on February 24, 2017.
SILVERIO, who is released on a $15,000 bond, was ordered to report to prison on March 26, 2018.
This matter was investigated by the U.S. Department of Labor – Office of the Inspector General, and the U.S. Department of Labor – Employee Benefits Security Administration’s Boston Office. The case was prosecuted by Assistant U.S. Attorney Susan L. Wines.
Former High Point Regional Hospital Employee Pleads Guilty to Stealing over $3 MillionRead the Press Release
GREENSBORO, N.C. - United States Attorney Matthew G.T. Martin of the Middle District of North Carolina announced that KIMBERLY RUSSELL HOBSON, 46, of Kernersville, North Carolina, pleaded guilty today in federal court in Winston-Salem before the Honorable Thomas D. Schroeder to felony charges of wire fraud, bank fraud, and aggravated identity theft.
HOBSON was employed in accounting and finance at High Point Regional Hospital for more than 20 years, ending in August 2017. HOBSON pleaded guilty to the above charges in connection with embezzling funds from the hospital. The indictment alleges that HOBSON stole in excess of $3,000,000.00 from the hospital. The exact amount of the loss will be determined by the Court at sentencing.
HOBSON faces a maximum penalty of thirty-two years confinement. The plea agreement requires HOBSON to make restitution to the hospital. Sentencing will occur in Winston-Salem on May 2, 2018.
The case was investigated by the Department of Treasury - Office of Inspector General, United States Secret Service, Guilford County Sheriff's Department, and High Point Police Department. The case was prosecuted by Assistant United States Attorneys Robert M. Hamilton, Lynne P. Klauer, and Anand P. Ramaswamy.
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Former Doctor Sentenced to 75 Months in Prison for Illegally Prescribing Opiates and Committing Health Care FraudRead the Press Release
Rodney Moret of Madison Heights, Michigan was sentenced today to 75 months’ imprisonment for participating in conspiracies to distribute prescription pills illegally and to defraud Medicare, U.S. Attorney Matthew Schneider announced. His crimes include over $15 million of prescriptions drugs, and an additional $6 million in health care fraud.
Schneider was joined in the announcement by Timothy Waters, Acting Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigations and Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of health and Human Services.
Dr. Moret, 67, was sentenced by U.S. District Judge Matthew F. Leitman.
Moret previously pleaded guilty to one count of conspiracy to illegally distribute prescription drugs and one count of conspiracy to commit health care fraud. The pleas were based on Moret’s participation as the sole practitioner at Advance Care Services (ACS), a medical clinic in Southfield, MI. The medical practice purported to be a pain management and HIV infusion clinic, but was actually nothing more than a “pill mill”. The scheme involved patient marketers using “patients” to obtain medically unnecessary controlled substance prescriptions issued by Moret, who at the time was a licensed medical doctor. Medicare was billed for examinations and tests that were not conducted properly or not conducted at all. Once the prescriptions were filled, the marketers sold the drugs on the street (?) in Southeast Michigan.
According to statements made at the plea hearing and evidence submitted at sentencing, the clinic operated from 2010 until 2015 and was owned by defendant Jorge Azar. The day-to-day operations of the clinic were managed by defendant Jellie Villalon. Moret would issue the prescriptions after a cursory examination or no examination at all and often took advantage of the female “patients” who were at the clinic to receive controlled substance prescriptions by sexually molesting or harassing them.
Moret was responsible for illegally distributing over 700,000 dosage units of Hydrocodone, (Vicodin, loratab), more than 240,000 dosage units of Alprazolam, and more than 2 million milliliters of promethazine with codeine cough syrup, worth more than $15 million on the street market. He was responsible for over $6 million in health care fraud.
Hydrocodone, Alprazolam, and promethazine with codeine cough syrup are controlled substances that may be prescribed by a doctor only for a legitimate medical purpose. A doctor must act in good faith in prescribing these medications. These are powerful and addictive drugs. Hydrocodone is in the opioid class, is easily abused, and can lead to addiction and eventual heroin use.
“Physicians who divert prescription drugs to the street market are contributing to the drug epidemic in the country, and we are focusing our enforcement efforts on stopping them,” stated United States Attorney Matthew Schneider.
“Prescribing controlled substances – such as Hydrocodone – outside the scope of professional practice and without a legitimate medical purpose is illegal”, said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Physicians who in engage in this type of behavior put patient health and safety at risk and exacerbate the opioid crisis. The OIG will continue to work with our law enforcement partners to ensure that those who commit these criminal acts are held accountable.”
“Rodney Moret, a former physician, intentionally fueled the local opioid epidemic by over prescribing addictive medications to patients for his own personal gain,” said Timothy Waters, Acting Special Agent in Charge, Detroit Division of the FBI. “The message should be clear, any doctor or healthcare professional who prioritizes profit or does harm to their patients under the guise of providing health care will be subject to the full investigative resources of the FBI and our law enforcement partners.”
Moret was one of five defendants named in a multi-count first superseding indictment unsealed in February 2016. All defendants, including the owner and manager of ACS, entered guilty pleas to either conspiracy to distribute prescription pills or conspiracy to commit health care fraud.
Based upon his offense conduct in this case, on March 31, 2017, Dr. Moret’s license to practice medicine was revoked by the State of Michigan Department of Licensing and Regulatory Affairs, Bureau of Professional Licensing.
The case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of the General Counsel. The case was prosecuted by Assistant U.S. Attorneys Regina R. McCullough and Michael Heesters.
Ferndale Resident Sentenced for Defrauding the IRSRead the Press Release
A resident of Ferndale was sentenced today to 114 months in prison on convictions connected to a scheme to defraud the Internal Revenue Service, U.S. Attorney Matthew Schneider announced today.
Joining Schneider in the announcement was Manny Muriel, Special Agent-in-Charge of the Detroit Office of the Internal Revenue Service – Criminal Investigation.
Receiving the sentence from U.S. District Judge Judith E. Levy was Durand Micheau, 48. Judge Levy also imposed a 3-year term of supervised release and ordered Micheau to pay restitution in the amount of $360,500 to the U.S. Treasury.
Micheau was convicted by a jury in May 2017 on numerous counts of conspiracy, mail fraud, aggravated identity theft, and engaging in illegal monetary transactions. Micheau’s wife, Sharon Gandy-Michaeu, and two of her brothers, Anthony Gandy and Christopher Gandy, were convicted by a different jury on the same charges in March 2017. Last month Judge Levy sentenced Anthony Gandy to 80 months in prison and Sharon Gandy-Micheau to 72 months in prison. In August 2017, she sentenced Christopher Gandy to 72 months in prison.
The evidence presented at the trials established that the defendants participated in a scheme to defraud the federal government that centered on the filing of over 20 fraudulent Forms 1041, U.S. Income Tax Returns for Estates and Trusts. The returns requested over $1.4 million in refunds based on income tax withholdings that never occurred. The returns resulted in the IRS’s mailing 14 income tax refund checks to the defendants that were payable to the trusts and totaled $940,000. To facilitate the scheme, the defendants obtained employer identification numbers (EINs) for the trusts from the IRS, opened post office boxes, and opened bank accounts in the names of the trusts. The trusts did not exist. The U.S. Treasury refund checks were either deposited into the bank accounts, followed shortly thereafter by large cash withdrawals, or cashed at local check-cashing stores.
In addition, the scheme used the names and identification information of a number of individuals whose purses or wallets had been lost or stolen, and it depended on the assistance of some of the defendants’ close friends and acquaintances.
“These defendants attempted to steal taxpayer money, and they did so by using the identities of innocent victims,” U.S. Attorney Schneider said. “This case is yet another example of how the talented IRS agents in our district are detecting fraud and bringing offenders to justice.”
Special Agent-in-Charge Muriel added, “Our tax system is based on voluntary compliance and relies on the honor system to accurately report income and deductions. Anthony Gandy and his codefendants abused that honor system by creating fictitious tax withholdings in excess of $1.4 million. Today’s sentencing demonstrates that there are consequences for those who willfully file fraudulent returns.”
The case was investigated by agents of the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant U.S. Attorneys Stephen Hiyama and Ross MacKenzie, with the assistance of paralegal Carol Oliver.
Federal Grand Jury Indicts Round Rock Man in Connection with the Kidnapping of Two SistersRead the Press Release
In Austin today, a federal grand jury indicted 44-year-old Terry Allen Miles in connection with the kidnapping of two minors, announced United States Attorney John F. Bash, and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
The federal grand jury indictment charges Miles with two counts of kidnapping. According to court records, on or about December 30, 2017, Round Rock (TX) Police (RRPD) officers conducted a welfare check at the residence of Tonya Ellen Bates because she had not shown up for work that day as expected. The officers subsequently discovered Bates’s body inside the residence. Bates appeared to have suffered from blunt force trauma. Bates was the only individual at the residence at the time of the welfare check and Bates’s 2017 Hyundai Accent was missing. Further investigation revealed Bates had two minor daughters and a roommate named Terry Allen Miles who lived with Bates.
At approximately 1:00 a.m. on December 30, 2017, Miles’s mother received a text message from a phone that belonged to one of the daughters. RRPD officers obtained cell phone information on the children’s two phones. One of the phones was located in a heavily wooded area adjacent to a Wal-Mart store located in Round Rock. Surveillance video from the Wal-Mart showed what appeared to be Miles purchasing numerous camping-related items and then leaving the store in a vehicle appearing to match Bates’s vehicle. The vehicle and a cell phone belonging to one of the minors were subsequently traced heading to Colorado.
On January 3, 2018, deputies with the Las Animas County Sheriff’s Office arrested Miles during a traffic stop near La Vera, Colorado. The two minors, ages 7 and 14, were found safe in the vehicle Miles was driving.
Miles, who remains in federal custody, faces between 20 years and life in federal prison upon conviction. His arraignment has yet to be scheduled.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is innocent until proven guilty in a court of law.
The Federal Bureau of Investigation, United States Marshals Service – Lone Star Fugitive Task Force, and the Round Rock Police Department are conducting this investigation. The Texas Rangers; Central Texas Violent Crimes Task Force; Williamson County (TX) District Attorney’s Office; United States Attorney’s Office – District of Colorado; New Mexico State Police Department; Las Animas County (CO) Sheriff’s Office; Southern Colorado Safe Streets Task Force; Colorado State Patrol; Trinidad (CO) Police Department; Colorado Bureau of Investigations; Huerfano County (CO) Sheriff’s Office; Archuletta County (CO) Sheriff’s Office; Pagosa Springs (CO) Police Department; Rio Grande County (CO) Sheriff’s Office; Federal Bureau of Investigation in Colorado; Durango (CO) Police Department; La Plata County (CO) Sheriff’s Office; Child Protective Services in Texas and Colorado; and, the National Center for Missing and Exploited Children are assisting in this investigation. Assistant United States Attorney Matthew Devlin is prosecuting this case on behalf of the Government.
Essex County, New Jersey, Man Admits Role in $1.5 Million Bank Fraud SchemeRead the Press Release
NEWARK, N.J. – An Orange, New Jersey, man today admitted his role in a scheme that defrauded New Jersey banks out of $1.5 million by deceiving them into crediting certain customer accounts that were controlled by members of the conspiracy, U.S. Attorney Craig Carpenito announced.
Chad Brown, 21, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of bank fraud conspiracy.
According to documents filed in this case and statements made in court:
From September 2015 through May 2017, Brown and others conspired to fraudulently obtain money from two victim banks. First, Brown and others obtained information from actual bank accounts belonging to customers of the two victim banks, including the customers’ bank account numbers and their personal identification numbers. In some instances, Brown and others obtained debit cards associated with the accounts or personally requested access from the account owners.
Afterwards, members of the conspiracy called tellers at the victim bank, posed as bank employees, and deceived the tellers into crediting funds into the above customer accounts.
Once the funds were credited into the customer accounts, members of the conspiracy, including Brown, used debit cards associated with the accounts to obtain the fraudulently credited funds, either by withdrawing the funds directly from ATM machines at victim branch locations or purchasing postal money orders.
The victim banks suffered losses of more than $1.5 million from the scheme.
The charge to which Brown pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for May 15, 2018.
U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, with the investigation.
The government is represented by Assistant U.S. Attorney Ari Fontecchio of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Perry Primavera, Esq., Hackensack, New Jersey
Eagle Butte Man and Woman Sentenced for Drug ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man and woman convicted of Distribution of a Controlled Substance were sentenced on January 2, 2018 and February 5, 2018 respectively, by U.S. District Judge Roberto A. Lange.
Perry Crow, Jr., a/k/a Perry Fiddler, age 23, was sentenced to 4 months in custody, 4 months in home confinement, 3 years of supervised release, $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Estrella Fernandez a/k/a Star Fernandez, age 21, was sentenced to time served, 6 months in home confinement, 3 years of supervised release, $500 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Crow and Fernandez were indicted by a federal grand jury on July 11, 2017. Crow pled guilty on October 17, 2017 and Fernandez pleaded guilty on November 15, 2017.
The convictions stem from incidents on August 23, 2016 and August 31, 2016, when Crow and Fernandez knowingly and intentionally distributed Methamphetamine, a Schedule II controlled substance.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case. Crow was immediately turned over to the custody of the U.S. Marshals Service.
District Man Pleads Guilty to Murder in Slaying of Man in Northeast WashingtonRead the Press Release
WASHINGTON – Montez Warren, 36, of Washington, D.C., has pled guilty to a charge of second-degree murder while armed for killing a man in Northeast Washington, U.S. Attorney Jessie K. Liu announced today.
Warren pled guilty on Feb. 5, 2018, in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a prison sentence of 15 to 22 years. The Honorable Milton C. Lee scheduled sentencing for April 27, 2018.
According to a proffer of facts submitted at the plea hearing, on the evening of Aug. 20, 2016, numerous people attended a cookout and fish fry in the 1200 block of 18th Place NE, including Warren and the victim, Dante Miller. In the early morning hours of Aug. 21, 2016, the party wore down, and an argument erupted between Mr. Miller and a woman who was with Warren. Warren tried to break up the fight, but the confrontation soon resumed. As the fighting continued to escalate, Warren fired several shots at Mr. Miller. He kept firing his weapon even as Mr. Miller tried to run away. Then, as Mr. Miller fell to the ground, Warren stood over top of him and fired several additional shots. He then rode off in a car. Mr. Miller, 24, died at the scene. An autopsy identified eight gunshot wounds, including one to the chest and one to the abdomen.
An investigation by the Metropolitan Police Department (MPD) led to Warren’s arrest on Oct. 12, 2016. He has been in custody ever since.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences, the Capital Area Regional Fugitive Task Force, the FBI’s Cellular Analysis Survey Team, and the U.S. Park Police. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Paralegal Specialist Sharon Newman and Paralegal Specialist Lornce Applewhite. Finally, she commended the work of Assistant U.S. Attorneys David Misler and Glenn Kirschner, who investigated and prosecuted the case.
Defense Contractor Agrees to Pay over A Half-Million Dollars to Settle False Claims Act Allegations Relating to Charging Unallowable Costs on Army ContractRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Integral Consulting Services, Inc. has agreed to pay the United States $505,838.00 to settle False Claims Act allegations that it submitted false claims to the United States by inflating certain indirect cost rates in connection with work performed on a Department of the Army contract.
The civil settlement was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal and Civil Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army CID.
Integral Consulting Services, Inc. (“ICS”) is a Maryland-based company that provides IT solutions to federal government agencies and commercial organizations. The services ICS provides range from biometric technologies to enterprise IT management and development of software applications. In 2012, ICS was awarded an Army contract, W911W5-12-D-0002, under which it was required to provide the Army’s National Ground Intelligence Center’s Biometric Intelligence Program with identity intelligence analysis support.
The civil settlement agreement resolves allegations that from on or about May 1, 2012 through June 27, 2014, ICS took costs and expenses it and its employees incurred in connection with litigation arising out of a teaming agreement with another contracting company and included the costs and expenses in the General and Administration (“G&A”) indirect cost pool that was spread amongst ICS’s various government contracts, including Army Contract Number W911W5-12-D-0002, and submitted to the United States government. The inclusion of such costs had the effect of inflating the claims paid by the Army to ICS.
The civil settlement resolves United States ex rel. Amit Dalal v. Integral Consulting Services, Inc., Civ. No. GJH-14-2529 (D. Md.), a lawsuit filed by a relator under the whistleblower provision of the False Claims Act. The Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the recovery by the United States. As part of the civil resolution, the relator will receive approximately $92,315.
The claims resolved by the settlement were allegations only about which there has been no judicial finding of liability, and Integral denies liability.
Acting United States Attorney Stephen M. Schenning commended the DCIS and the Army Major Procurement Fraud Unit for their work in the investigation and thanked Assistant U.S. Attorneys Sarah Marquardt and Tarra DeShields who handled this case.
Contractor Admits Stealing from Paterson Municipal Utilities Authority and Jersey City Childhood Development CentersRead the Press Release
NEWARK, N.J. – A Linden, New Jersey, man today admitted conspiring with officials at the Paterson Municipal Utilities Authority (MUA) and the Jersey City Childhood Development Centers Inc. (JCCDC) to fraudulently obtain payments for services he never provided, U.S. Attorney Craig Carpenito announced.
Carnell Baskerville, 51, pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him intentionally conspiring with a former commissioner with the Paterson MUA to commit extortion under color of official right and conspiring with Robert E. Mays, the former Executive Director of the JCCDC, to embezzle and obtain by fraud funds that were under the care and control of the JCCDC, an organization that received more than $10,000 in federal program benefits annually.According to documents filed in this case and statements made in court:
Baskerville was a self-employed contractor based in Linden who provided contracting services for both residential homes and commercial businesses. Around 2014, Baskerville became acquainted with an individual identified in the information as “Coconspirator 1,”who was then a commissioner with the since-dissolved Paterson MUA, which had been created to manage the hydroelectric plant on the Passaic River and care for certain surrounding properties.
Baskerville and Coconspirator 1 entered into an agreement whereby Coconspirator 1, who exercised control over Paterson MUA finances, would approve payments from the Paterson MUA to Baskerville’s company for services rendered, even though both Baskerville and Coconspirator 1 knew that Baskerville had not and would not perform those services.
Between December 2014 and May 2015, Coconspirator 1 wrote a series of Paterson MUA checks totaling $146,500 to Baskerville’s company. Baskerville deposited these checks in his bank account and kicked back a significant percentage in cash to Coconspirator 1 to reward him for his official assistance in carrying out the scheme.
Baskerville entered into a similar scheme with Mays, the Executive Director of the JCCDC, which operated as a non-profit organization created to serve impoverished and disabled children in Jersey City. In February 2014, Baskerville and Mays entered into a purported contract for Baskerville to provide kitchen renovation work on behalf of JCCDC, knowing full well that Baskerville had not and would not perform those services.
In late February 2014, Mays issued a JCCDC check in the amount of $29,675 to Baskerville. Baskerville and Mays met at a check cashing business in Jersey City where they cashed the check and split the proceeds between them.
The count of conspiracy to commit extortion by color of official right carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of conspiracy to commit theft concerning programs receiving federal benefits carries a maximum potential penalty of 10 years in prison and a $250,000 fine. As part of his plea, Baskerville must pay restitution in the amount of $176,175. Sentencing is scheduled for May 16, 2018.Mays pleaded guilty to wire fraud on June 7, 2016 before U.S. District Judge Susan D. Wigenton. On July 31, 2017, he was sentenced to 18 months in prison and ordered to pay restitution in the amount of $257,418.20.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
Defense counsel: Arthur Abrams Esq., Jersey City
Columbus man indicted on cocaine distribution chargesRead the Press Release
WHEELING, WEST VIRGINIA – A Columbus, Ohio man was indicted today by a federal grand jury on drug distribution charges, United States Attorney Bill Powell announced.
Jason R. Smoot, age 30, was indicted on one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location,” and one count of “Distribution of Cocaine Base.” Smoot is accused of selling cocaine near the Jensen Playground in Wheeling in June 2017.
Smoot faces up to 40 years incarceration and a fine of up to $2,000,000 for the first count and faces up to 20 years incarceration and a fine of up to $1,000,000 for the second count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Steven L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Colorado Attorney Admits Role in Stock "Pump and Dump" SchemeRead the Press Release
John H, Durham, United States Attorney for the District of Connecticut, announced that DIANE DALMY, 63, of Denver, Colorado, waived her right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy stemming from her role in a securities fraud scheme.
According to court documents and statements made in court, DALMY, an attorney, performed securities-related legal work on behalf of several public companies, including Mammoth Energy Group, Inc., a company that later became known as Strategic Asset Leasing Inc.; and Fox Petroleum, Inc. (the “Subject Companies”). Between approximately January 2009 and July 2016, DALMY conspired with others, including William Lieberman, of Boca Raton, Florida, and Christian Meissenn, of Suffield, Connecticut, to defraud investors through a stock “pump and dump” scheme. During the course of the conspiracy, DALMY acted largely at Lieberman’s direction.
As part of the scheme, Lieberman, Meissenn and others induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies, which were essentially shell companies with virtually no legitimate business activities, were controlled by Lieberman and others. After the hype led to artificially-inflated share prices for the company’s stock, Lieberman, Meissenn and others sold their own large positions in the stock at a profit. They then ended the promotion and allowed the share price to plummet, leaving investors holding worthless and unsalable stock. As a result, victim investors lost millions of dollars.
DALMY participated in the conspiracy by writing, and permitting Lieberman to write in her name, fraudulent opinion letters that were used to unrestrict the co-conspirators’ stock so that the stock could be freely traded on the open market (without having to register the stock with the Securities and Exchange Commission). The opinion letters were materially false in various respects, including as to whether the issuing company was a shell company, whether the shareholder was an affiliate of the issuer, whether the transactions described in the letters actually had occurred, and whether DALMY had performed the due diligence that she described in the letters. DALMY also ghost-wrote similarly fraudulent opinion letters for the Subject Companies in another Colorado attorney’s name and permitted Lieberman to do so. These included “adequacy” letters that were posted on a website maintained by an electronic securities marketplace. In general, an “adequacy” letter, which is intended to be relied upon by investors in making investment decisions, accompanies a public filing by an issuer and states that, after appropriate investigation, it is the authoring attorney’s opinion that adequate current information about the issuer is publicly available for investors to review.
At times, DALMY provided the co-conspirators with capital by advancing money from her Lawyer Trust Account (“IOLTA”). These funds belonged to other clients of DALMY’s law practice who did not know that their funds had been advanced to the co-conspirators by DALMY.
Finally, between February 2015 and July 2016, DALMY laundered a portion of the proceeds of the scheme on behalf of the Co-Conspirators. DALMY helped Lieberman to incorporate and open bank accounts for a private company, Queen Asia Pacific Ltd. (“Queen Asia”), which was controlled by Lieberman. These bank accounts were used to receive proceeds of the scheme from a brokerage account in Queen Asia’s name. DALMY periodically received money in Queen Asia’s bank accounts, transferred those funds to her IOLTA, and then transferred the funds again to Lieberman, Meissenn, and their network of stock promoters. In total, DALMY laundered approximately $825,000 on behalf of the co-conspirators through Queen Asia’s bank accounts and her IOLTA.
DALMY’s total gain from her participation in this conspiracy, and related legal work for the Subject Companies, was approximately $30,000.
Judge Meyer scheduled sentencing for May 2, 2018, at which time DALMY faces a maximum term of imprisonment of five years. DALMY is released on a $100,000 bond pending sentenced.
Lieberman, Meissenn and four other individuals have pleaded guilty to various offenses stemming from this scheme.
On January 20, 2017, Corey Brinson, a Hartford-based attorney, was sentenced to 36 months of imprisonment and, on September 27, 2017, Damian Delgado, also known as “Michael Neumann,” of Orlando, Florida, was sentenced to 84 months of imprisonment. Meissenn, Lieberman, Brian Ferraioli, of Sayville, N.Y., and Thomas Heaphy, Jr., of East Moriches, N.Y., await sentencing.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Cleveland man indicted for firearms crimeRead the Press Release
A federal grand jury charged Khalid Swanson, 43, of Cleveland, with being a felon in possession of a firearm, said U.S. Attorney Justin E. Herdman.
Swanson possessed a Smith & Wesson .380 caliber handgun and ammunition after having been convicted of multiple crimes, including abduction, robbery and trafficking with a firearm.
The case was investigated by the Cleveland Division of Police and the ATF. Assistant U.S. Attorney James Lewis is prosecuting the case.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Citizen of Honduras pleads guilty to reentering the United States illegallyRead the Press Release
LAKE CHARLES, La. – United States Attorney Alexander C. Van Hook announced today that a citizen of Honduras pleaded guilty last week to reentering the United Staes illegally after having been removed.
Ever Salazar-Espinal, 30, of Honduras, pleaded guilty Thursday before U.S. Magistrate Judge Kathleen Kay to illegal reentry of the United States by an alien following deportation or removal. According to the guilty plea’s factual basis, U.S. Border Patrol agents found Salazar-Espinal October 6, 2017 in Lake Charles and determined that he was in the United States illegally. An immigration records check showed that in 2014, immigration authorities had physically removed Salazar-Espinal from the United States to his native country, Honduras, as ordered by a U.S. immigration court. The records check further showed that the Immigration Court issued the order of removal after Salazar-Espinal was convicted in Nevada for felony possession of credit or debit cards without the cardholder’s consent.
Salazar-Espinal faces up to 10 months in prison, threes years of supervised release and a $250,000 fine. The court set sentencing for April 17, 2018.
Customs and Border Protection and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
Citizen of Ecuador Charged with Illegally Reentering U.S., Failing to Register as Sex OffenderRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on February 1, 2018, a federal grand jury in Hartford returned an indictment charging ENRIQUE FAJARDO MARIN, 39, a citizen of Ecuador recently residing in Danbury, with one count of illegally reentering the U.S., and one count of violating the Sex Offender Registration and Notification Act (SORNA).
FAJARDO appeared today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charge.
According to court documents and statements made in court, in December 2011, FAJARDO was convicted in Danbury Superior Court of illegal sexual contact with a minor and risk of injury. He was sentenced to 18 years of incarceration, execution suspended after 10 years, with 20 years of probation. FAJARDO also was required to register as a sex offender for a period of 10 years.
On February 6, 2016, FAJARDO was deported from the U.S. to Ecuador.
On June 28, 2017, FAJARDO was arrested in Worcester, Massachusetts. It is alleged that he had illegally reentered the U.S. and had been residing in the Danbury area as early as May 1, 2017. It is further alleged that FAJARDO had failed to register as a sex offender in Connecticut.
FAJARDO has been detained since his arrest.
If convicted, FAJARDO faces a maximum term of imprisonment of 20 years for illegally reentering the U.S., and a maximum term of imprisonment of 10 years for failing to register as a sex offender.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated the U.S. Department of Homeland Security, Immigration and Customs Enforcement, and the U.S. Marshals Service, with the assistance of Connecticut State Parole. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Cape Air Employee Pleads Guilty to Smuggling Cocaine through Cyril E. King AirportRead the Press Release
St. Thomas, USVI – Wayne Fahie, 31, of St. Thomas, pleaded guilty today in District Court to one count of conspiracy to possess with intent to distribute cocaine, and one count of possession with intent to distribute cocaine, United States Attorney Gretchen C.F. Shappert announced.
According to the plea agreement filed with the court, on July 30, 2017, Fahie, and his co-defendant Roy Hodge, III, 41, also of St. Thomas, attempted to smuggle four kilograms of cocaine through the Cyril E. King airport. Fahie, who is a Cape Air employee, used his security clearance to access the men’s restroom in the departure lounge of the airport where he met Hodge and exchanged the cocaine. The plea agreement further states that Customs and Border Protection (CBP) officers conducting surveillance observed Hodge enter the men’s room for approximately 33 minutes. Simultaneously, the CBP officers observed Fahie enter and exit the men’s room three times, each time with a bulge in his pants pockets. According to the plea agreement, CBP K-9 “Sherpa” alerted to the presence of cocaine in Fahie’s pants pocket, and a search of Hodge’s cell phone revealed multiple text messages detailing the smuggling scheme. Hodge pleaded guilty conspiracy to possess with the intent to distribute cocaine on February 1, 2018.
Sentencing for Fahie and Hodge is scheduled for June 7, 2018. Fahie and Hodge each face a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison.
The case was investigated by the Homeland Security Investigations, and Customs and Border Protection, and prosecuted by Assistant United States Attorney Delia L. Smith.
Brandon Man Sentenced to 97 Months for Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Brandon, South Dakota man convicted of distribution and receipt of child pornography was sentenced on February 5, 2018 by U.S. District Judge Karen E. Schreier.
John McKenzie, age 24, was sentenced to 97 months custody, 5 years of supervised release and was ordered to pay $100 to the Federal Crime Victims Fund.
McKenzie was indicted for distribution and receipt of child pornography by a federal grand jury on December 6, 2016. He pled guilty on November 2, 2017.
Between July 19, 2015 and May 10, 2016, John McKenzie resided in Brandon and had a computer with internet access. Using his computer to connect and access websites and applications for “Omegle” and “Kik Messenger,” McKenzie received and distributed digital files containing images and videos of child pornography. Many of the images of child pornography depicted prepubescent minors.
This case was investigated by U.S. Immigration and Customs Enforcement, Department of Homeland Security and prosecuted by Assistant U.S. Attorney Jeff Clapper.
McKenzie was immediately turned over to the custody of the U.S. Marshals Service.
Berkeley County woman admits to drug distribution chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg, West Virginia woman has admitted to her role in a drug distribution operation, United States Attorney Bill Powell announced.
Sarah Jaielyn Carter, age 26, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” Carter worked with others to distribute heroin in Berkeley County in November 2016.
Carter faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Barren County, Kentucky Felon Sentenced to 100 Months in Prison for Theft of FirearmsRead the Press Release
Burglarized and stole firearms from Horton’s Guns
BOWLING GREEN, Ky. – A Barren County, Kentucky, convicted felon was sentenced in United States District Court, by District Court Judge Greg N. Stivers, to 100 months in prison for charges associated with the burglary and theft of firearms from Hortons Guns, located in Cave City, Kentucky, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
“100 months in federal prison is real time,” stated United States Attorney Russell M. Coleman. “Theft of firearms from a licensed dealer can trigger a domino effect of violent crime that puts Kentucky families and officers at risk. Pursuing those who would steal firearms is a priority of our office and helps protect our Commonwealth.”
Eric Glen Stockton, 37, of Cave City, Kentucky, pleaded guilty to being a felon in possession of a firearm, and entered an Alford plea to the charge of stealing a firearm from a licensed dealer.
According to information presented in court, Stockton burglarized Horton’s Guns on October 3, 2014. During a traffic stop in February 2015, KSP discovered a stolen firearm from the burglary in Stockton’s girlfriend’s car and Stockton was a passenger. In May 2015, ATF retrieved two stolen rifles from the burglary from a cooperating witness who indicated Stockton had given him and his father the weapons.
The United States was prepared to present evidence at trial that included video surveillance from Horton’s Guns, recorded the day prior to the burglary, showing a person fitting the description of Stockton, taking photos with his cell-phone of firearms that were later stolen. Additional video surveillance captures an individual believed to be Stockton reaching down from the ceiling removing long guns, then dropping into the store and breaking a glass case to steal five handguns.
Stockton stole and possessed 8 firearms from Horton’s, valued at $6,488 and included: DPMS, model LR-243, .243 caliber semiautomatic rifle; Bushmaster, model XM15-E2S, .223 caliber semiautomatic rifle; Bushmaster, model XM15-E2S, .223 caliber semiautomatic rifle, Taurus, model PT 1911, .45 semiautomatic pistol; Taurus, model PT 1911, .45 semiautomatic pistol; Taurus, model PT 1911, .45 caliber semiautomatic pistol; Hi-Point, model JHP, .45 caliber semiautomatic pistol; and a Glock, model 23, .40 caliber semiautomatic pistol. Stockton is required to pay restitution for the stolen firearms. Only three of the eight were recovered.
Stockton is a convicted felon with conviction related to prior gun thefts including: receiving stolen property (firearm), in Hart Circuit Court, Hart County, Kentucky, on March 1, 2011; and receiving stolen property over $500, in Barren Circuit Court, Barren County, Kentucky, on March 8, 2011.
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with assistance from Kentucky State Police, Cave City Police Department, and the Barren Edmonson Allen County Drug Task Force.
Attorney General Jeff Sessions Names U.S. Attorney Kurt Alme as Vice Chair of the Native American Issues SubcommitteeRead the Press Release
BILLINGS— United States Attorney General Jeff Sessions announced the appointment of United States Attorney Kurt Alme as Vice Chair of the Native American Issues Subcommittee (NAIS) of the Attorney General’s Advisory Committee (AGAC). United States Attorney Trent Shores from the Northern District of Oklahoma will serve as Chair.
United States Attorney Shores stated, “The Native American Issues Subcommittee plays a vital role in developing national policy for Indian Country justice. U.S. Attorney Alme and I will be stalwart advocates for these important issues.”
United States Attorney Alme added, “The Department of Justice is fortunate to have U.S Attorney Shores as Chair of the NAIS. Not only is he an experienced prosecutor, but as a Native American, he has a unique perspective on law enforcement issues impacting tribal communities. We look forward to working together with tribal leaders to combat the opioid and methamphetamine epidemic and reduce violent crime in Indian Country.”
The AGAC was created in 1973 to serve as the voice of United States Attorneys and to advise the Attorney General on policy, management, and operational issues impacting the offices of the U.S. Attorneys. The NAIS is made up of U.S. Attorneys from across the United States whose Districts contain Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil and is responsible for making policy recommendations to the Attorney General of the U.S. regarding public safety and legal issues that impact tribal communities.
Attorney General Jeff Sessions Appoints Joseph H. Harrington as Interim United States AttorneyRead the Press Release
WASHINGTON -- Attorney General Jeff Sessions today announced the appointment of Joseph H. Harrington as Interim United States Attorney pursuant to 28 U.S.C. § 546, which provides that “the Attorney General may appoint a United States Attorney for the district in which the office of United States Attorney is vacant.” This appointment will take effect on January 5, 2018.
“Joseph Harrington has 27 years of experience as a federal prosecutor,” said Attorney General Sessions. “He has taken on white supremacists, domestic terrorists, health care fraudsters, and many other criminals. I want to thank him for his great work and I am pleased to appoint him as Interim U.S. Attorney for the Eastern District of Washington.”
Harrington said, “It’s a humbling day. I am honored to have been asked to serve as the Interim United States Attorney and to have the opportunity to continue working alongside the truly dedicated professionals in the U.S. Attorney’s Office for the Eastern District of Washington.”
Harrington has served in the U. S. Attorney’s Office since 1990 and before that worked for the U.S. Securities and Exchange Commission in Washington, D.C. During his tenure in the U.S. Attorney’s Office, he has litigated both civil and criminal cases. He has held the positions of First Assistant United States Attorney, Criminal Chief, Deputy Criminal Chief, Anti-Terrorism Advisory Coordinator, and Health Care Fraud Coordinator. Harrington was involved with the prosecutions of: Kevin W. Harpham, an avowed white supremacist who planted a sophisticated remotely-controlled IED along the route of the Martin Luther King, Jr. Day Unity March in Spokane; the Phineas Priest domestic terrorism case involving bank robberies and bombings of a Planned Parenthood office and a Spokane newspaper facility; and the Karl F. Thompson / Otto Zehm civil rights case. He has been the recipient of the prestigious Department of Justice “Director’s Award” on two occasion in recognition of his superior performance as an Assistant U.S. Attorney.
Harrington received his J.D. from Gonzaga University in 1986, where he was a Thomas Moore Scholar (full academic scholarship) and served as the Editor-in-Chief of the Gonzaga Law Review. He holds a B.A. in Mathematics and a B.S. in Engineering. He is married and has three children.
Albany Man Indicted for Intending to Distribute Heroin, Crack and CocaineRead the Press Release
ALBANY, NEW YORK – Dwayne G. Perkins, age 37, of Albany, was arraigned today on a charge that he possessed and intended to distribute crack cocaine, cocaine, and heroin.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the indictment, on April 4, 2017, Perkins possessed and intended to distribute more than 28 grams of cocaine base (a/k/a crack cocaine), cocaine and heroin. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Perkins is in custody pending trial. If convicted, Perkins faces at least 10 years and up to life in prison, and a term of post-imprisonment supervised release of at least 8 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and New York State Police, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
5 February 2018
Woman Pleads Guilty for Involvement in Methamphetamine ConspiracyRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Dawn Angela Cimmino, a/k/a “Dawn Frazier”, age 41, of Bowling Green, Florida, entered a guilty plea on January 31, 2018, to conspiracy to possess with intent to distribute methamphetamine. Ms. Cimmino entered her plea in Valdosta, Georgia, before the Honorable Hugh Lawson, Senior United States District Court Judge.
According to the stipulated facts, Ms. Cimmino was paid $1,000 to pick up a package containing crystal methamphetamine from a Valdosta hotel and take it to Florida. Ms. Cimmino was a “runner” for the Zoe Pound street gang, which was responsible for having the methamphetamine shipped from California to Georgia then driven to Florida. She said the organization recently started having packages shipped across the country by FedEx and picked up by runners. The total amount attributable to Ms. Cimmino was 978.1 grams of methamphetamine.
Ms. Cimmino faces a maximum sentence of life in prison with a mandatory minimum of ten years. Sentencing is set for May 9, 2018.
“Methamphetamine continues to be one of the most serious drugs of abuse in the Middle District of Georgia,” said United States Attorney Peeler. “In a matter of only a few months it can destroy a person’s physical appearance, health, intellect and emotional stability. Those who deal in methamphetamine deal in human misery and will be held accountable for the choices they make.”
The case was investigated the Drug Enforcement Administration and the Lowndes County Sheriff’s Office. Assistant United States Attorney Sonja B. Profit handled the prosecution for the Government.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Williamson County Man Sentenced on Methamphetamine OffensesRead the Press Release
On February 5, 2018, Shaundale J. Johnson, a/k/a "Shug," 36, of Marion, was sentenced for methamphetamine violations, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Johnson, who had previously pled guilty to a two-count indictment charging unlawful distribution of methamphetamine, was sentenced to 204 months of imprisonment and eight years of supervised release, and was fined $400.00. The offenses occurred on March 17, 2017, and March 20, 2017, in Williamson County. At sentencing, the district judge found that Johnson was responsible for the distribution of 59.5 grams of methamphetamine. Because Johnson had multiple prior felony drug trafficking convictions, he received an enhanced sentence based on his classification as a Career Offender.
The investigation was conducted by the Southern Illinois Enforcement Group and Drug Enforcement Administration. The Williamson County States Attorney’s Offices also assisted in the investigation.
Williamson County Man Charged with Federal Firearm ViolationRead the Press Release
On January 4, 2018, Bobby A. Commons, a/k/a "Blood," 44, of Herrin, was charged by one-count indictment with unlawful possession of a firearm by a felon, United States Attorney for the Southern District of Illinois Donald S. Boyce announced today. The indictment alleges the offense occurred on November 22, 2017, in Williamson County. Commons made his initial appearance in federal court on February 2, 2018. He is currently being held without bond pending a February 6, 2018, bond hearing.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The firearm offense carries a maximum penalty of up to ten years of imprisonment, to be followed by three years of supervised release, and a $250,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Herrin Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Williamson County States Attorney’s Office also assisted in the investigation.
Wichita Man Pleads Guilty to Paying No Taxes on Gambling IncomeRead the Press Release
WICHITA, KAN. – A Wichita man who made hundreds of thousands of dollars from illegal bookmaking pleaded guilty Monday to failing to report the income on his federal income taxes, U.S. Attorney Stephen McAllister said.
Daniel Dreese, 65, Wichita, Kan., pleaded guilty to two counts of making false statements on income tax returns. In his plea, he admitted that in tax year 2011 he received $89,078 from illegal bookmaking, and in tax year 2012 he received $136,985 from illegal bookmaking. He did not report that income.
In addition, he admitted that in 2010, he failed to report $383,684 in income.
In the plea agreement, Dreese agreed to pay $214,540 in restitution.
Sentencing is set for April 23. He faces up to three years in federal prison and a fine up to $100,000 on each count. McAllister commended the Internal Revenue Service and Assistant U.S. Attorney Aaron Smith for their work on the case.
Van Cleave Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss – Terry Lee Reddix, 43, of Van Cleave, Mississippi, pled guilty today before U.S. District Judge Louis Guirola, Jr. to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
On May 23, 2016, Terry Lee Reddix sold methamphetamine to a confidential source from his home on the "Hill" in Van Cleave, Mississippi. Reddix has been distributing methamphetamine from that locale for several years and law enforcement was able to make several purchases of methamphetamine from him.
Reddix will be sentenced on May 8, 2018 by Judge Guirola, and faces a maximum penalty 40 years in prison and a $5 million fine.
The case was investigated by the FBI Safe Streets Task Force and prosecuted by Assistant U.S. Attorney John Meynardie.
Valencia Man Sentenced to 2 Years for Filing a False Tax ReturnRead the Press Release
LOS ANGELES – A Valencia resident convicted of filing a federal tax return that failed to report income that he received by having his company pay for many of his personal expenses was sentenced today to 24 months in federal prison.
Walter Daniel Prezioso, 47, the former vice president and manager of the now-defunct GSP Precision, Inc., was sentenced today by United States District Judge John F. Walter.
A federal jury in November convicted Prezioso of one count of willfully subscribing to a false 2013 federal income tax return.
In the early 1990s, Prezioso began working at GSP Precision, a Burbank-based machine shop owned by his father and a third party. In 1997, his father sold half of his shares to Prezioso, making him a 25 percent owner. By 2001, Prezioso had full control of GSP’s operations and held sole authority over the corporate checking account.
According to the evidence presented at trial, by 2007, Prezioso was using his control over GSP’s checking account and corporate lines of credit to make payments for many of his personal expenses, including luxury automobile leases and the construction of a tennis court and swimming pool at his residence.
Between 2007 and 2013, according to court documents, Prezioso used GSP funds to pay for hundreds of thousands of dollars in personal expenses. He concealed the expenditures as legitimate business expenses on GSP’s books and records, thereby ensuring that his true income from GSP would not be reported on his Forms W-2 or as officer compensation on GSP’s corporate tax returns.
According to the government’s evidence, Prezioso failed to report any of the additional compensation on his individual income tax returns, resulting in a tax loss of more than $751,000.
The jury that convicted Prezioso of subscribing to a false 2013 individual income tax return acquitted the defendant of seven additional counts.
The investigation into Prezioso was conducted by IRS Criminal Investigation.
The case was prosecuted by Assistant United States Attorneys Paul H. Rochmes, Valerie L. Makarewicz and James C. Hughes of the Tax Division.
United States Attorney’s Office Reaches Settlement with Cumberland County over Polling Place Access for VotersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today a settlement with Cumberland County, PA, under Title II of the Americans with Disabilities Act to improve physical accessibility at the county’s polling places for individuals who use wheel chairs and other mobility aids, and for individuals who are blind or have vision impairments.
According to United States Attorney David J. Freed, in the April 26, 2016 primary election, the United States Attorney’s Office, along with an architect from the Department of Justice, surveyed 52 of the county’s 118 polling place locations. The survey resulted in a finding that many of the county’s polling places contained barriers for persons with disabilities. Title II of the ADA prohibits discrimination on the basis of disability by a state or local government in any of its programs or services, including its voting program. Thus, the ADA requires Cumberland County to select and use polling places that are accessible to persons with disabilities.
As a result of the survey’s findings, Cumberland County is working collaboratively with the United States Attorney’s Office to make all polling places accessible. Under the terms of the agreement, the county will use an evaluation form for each current and prospective polling place based on ADA architectural standards. The settlement requires the county to either relocate inaccessible polling places to new, accessible facilities, or to use temporary measures such as portable ramps, signs, traffic cones and doorbells, where appropriate to ensure accessibility on Election Day.
“The right to vote should not be impeded, as it is the foundation of our democracy,” said U.S. Attorney Freed. “We commend Cumberland County for their cooperation in meeting their ADA obligations so that all persons with disabilities have equal opportunities to vote in person at their polling places alongside their neighbors.”
This investigation was handled by Assistant United States Attorney Michael J. Butler with the assistance of the United States Department of Justice, Civil Rights Division (Disability Rights Section). Those interested in finding out more about the ADA can access the ADA website at www.ada.gov.
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Two Men Charged with Transportation and Possession of ExplosivesRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man, and a Harrisburg, South Dakota, man have been indicted by a federal grand jury for Transportation of Explosive Materials and Possession of Explosives by a Prohibited Person.
Nathaniel Johnson, age 29, and William Fralick, age 30, were indicted on January 17, 2018. They appeared before U.S. Magistrate Judge Mark A. Moreno on February 2, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $500,000 fine, 6 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 19, 2017, Johnson and Fralick, knowing they were not licensed or permitted, transported explosive materials. Johnson and Fralick are also prohibited from possessing explosives as they each have convictions for a crime punishable by imprisonment for a term exceeding one year.
The charges are merely accusations and Johnson and Fralick are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Johnson and Fralick were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Two Men Charged in ATM "Jackpotting" SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ALEX ALBERTO FAJIN-DIAZ, 31, a citizen of Spain, and ARGENYS RODRIGUEZ, 21, of Springfield, Massachusetts, have been charged by federal criminal complaint with bank fraud stemming from an alleged ATM “jackpotting” scheme.
FAJIN-DIAZ and RODRIGUEZ were arrested on related state charges on January 27. They appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and are detained.
According to court documents and statements made in court, law enforcement agencies and ATM manufacturers have been investigating malware attacks on ATM machines in Connecticut and elsewhere. In a scheme commonly referred to as “jackpotting,” individuals use malware that is designed to cause an ATM to eject all of the U.S. currency contained in the machine. As part of the scheme, individuals dressed as legitimate repair technicians install malware on an ATM. Other individuals then proceed to extract all of the cash from the ATM.
As alleged in the criminal complaint, federal, state and local law enforcement agencies have been investigating recent jackpotting attacks on ATMs in Hamden and Guilford, as well as Providence, Rhode Island. On January 27, 2018, Citizens Bank investigators contacted police after they observed what appeared to be an attack on an ATM in Cromwell. On that date, Cromwell Police encountered FAJIN-DIAZ and RODRIGUEZ near an ATM that had been compromised with jackpotting malware and was in the process of dispensing $20 bills. A search of FAJIN-DIAZ and RODRIGUEZ’s vehicle, which had a license plate that was assigned to another vehicle, revealed tools and electronic devices consistent with items needed to compromise an ATM machine to dispense its cash contents. FAJI-DIAZ and RODRIGUEZ also possessed more than $9,000 in $20 bills.
The charge of bank fraud carries a maximum term of imprisonment of 30 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Connecticut Computer Crimes Task Force, U.S. Secret Service, Connecticut State Police, Chief State’s Attorney’s Office, Middlesex State’s Attorney’s Office. Cromwell Police Department, Middletown Police Department, Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.