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Thursday 14 December 2017
Granby Man Convicted of Sexually Exploiting Five ChildrenRead the Press Release
SYRACUSE, NEW YORK – Following a four-day trial in federal court in Syracuse, a jury today found Clif J. Seaway, age 61, of Granby, New York, guilty of two counts of Conspiracy to Sexually Exploit a Child and ten counts of Sexual Exploitation of a Child, announced Acting United States Attorney Grant C. Jaquith, New York State Police Superintendent George P. Beach II, and Kevin M. Kelly, Special Agent in Charge of the Buffalo Division of Homeland Security Investigations.
The evidence at trial established that Clif J. Seaway conspired with others to, and did sexually exploit, five minor children from 2001 through 2013 in Oswego, Onondaga, and Jefferson Counties, and took sexually explicit photos and videos of the victims. During the trial the jury viewed numerous videos and photographs made by the defendant of his sexual exploitation of all five victims and heard testimony from one, who is now an adult. The trial evidence also included the defendant’s recorded confession to New York State Police Investigators.
“The jury heard testimony about the defendant’s abhorrent, prolonged sexual exploitation of five minor victims over many years and rendered a verdict that will hold the defendant accountable for his heinous criminal conduct. With our law enforcement partners, we will continue to investigate and prosecute such unfathomable crimes against the most vulnerable and helpless among us – children -- to the fullest extent of the law,” said Acting U.S. Attorney Grant C. Jaquith.
New York State Police Superintendent George P. Beach said, “While these type of investigations are difficult for those who have worked the most shocking of cases, the evidence gathered and work done by the State Police and our law enforcement partners, led to this conviction and ensures the defendant will serve time for his deplorable crimes. Together, we will continue to seek justice for those who have been victimized and protect those who are most vulnerable, our children.”
"Today's conviction is a critical first step toward healing for all of those impacted by the depraved acts perpetrated by this defendant," said Kevin Kelly, Special Agent in Charge of Homeland Security Investigations, Buffalo Division. "HSI will continue to aggressively pursue those who prey on the most vulnerable in society, our children."
Sentencing is scheduled for April 30, 2018 in Syracuse. The defendant faces a minimum sentence of 15 years and up to 30 years for each count of conviction, for a maximum possible sentence of 360 years in prison. The defendant will also be sentenced to serve a term of supervised release of at least five years and up to life if released from imprisonment and will be required to register as a sex offender. 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 New York State Police and Homeland Security Investigations with assistance provided by the Onondaga County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, and Assistant United States Attorney Carina Schoenberger.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
German Citizen Sentenced to Life in Prison for Attempting to Engage A Minor in Sexual ActivityRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron yesterday sentenced Meinrad Kopp (55), a German citizen and resident of Switzerland, to life in federal prison and a life term of supervision for attempting to entice a minor to engage in sexual activity. The Court also imposed a special assessment of $5,000, and ordered him to pay a fine of $250,000 and forfeit a cellphone, laptop computer, and camera that had been used to facilitate the offense.
Kopp entered a guilty plea on September 22, 2017.
According to court documents, from on or about April 26, 2017, to on or about June 16, 2017, Kopp engaged in communications via the Internet, with an undercover agent, about engaging a minor in a range of sadistic sexual activities. Kopp disclosed his intent to humiliate and inflict severe pain on the child for his sexual gratification by treating her like a dog and torturing her with certain instruments he intended to bring with him. According to Kopp, he previously had beaten an 11-year-old child using a leather belt.
On June 16, 2017, Kopp traveled to Orlando and was arrested by agents working with Homeland Security Investigations. Inside his luggage, Kopp had weights, clamps, rope, tape, a bottlebrush, and a flashlight that he intended to use with the minor. He had a digital camera that he intended to use to record the acts with the child. During an interview with agents, Kopp admitted that he had traveled to Orlando for the purpose of engaging a minor in sexual activity.
At sentencing, Judge Byron remarked that this was a heinous and atrocious crime, and noted that he could not imagine anything more extreme than hurting a child for an individual’s sexual gratification. He also noted that the sentence imposed was intended to deter sex tourism.
"Crimes against children are some of the most loathsome our HSI special agents investigate," said HSI Tampa Special Agent in Charge James C. Spero. "This case should serve as warning to other child predators. We will find you, arrest you and make sure that you are prosecuted to the fullest extent of the law."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .
Gary Man Convicted During 3-Day Jury TrialRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Artez Brewer, age 30, of Gary, Indiana was convicted of 3 counts of bank robbery, after a three-day jury trial before District Court Senior Judge Joseph S. Van Bokkelen.
According to evidence presented in this case, April 28, 2016 Brewer and his accomplice robbed Centier Bank in Griffith, Indiana. On May 6, 2016, Brewer and his accomplice robbed Main Source Bank in Crown Point, Indiana and on May 27, 2017 Brewer and his accomplice robbed Horizon Bank in Whiting, Indiana.
This case was the result of an investigation by the Federal Bureau of Investigation with the assistance of the Crown Point, Hammond and Whiting Police Departments. This case was prosecuted by Assistant United States Attorneys Jennifer Chang and Thomas McGrath.
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Gang Member Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
Gulfport, Miss. – John Wayne Clark, 32, of Biloxi, Mississippi, pled guilty, before U.S. District Judge Sul Ozerden, to an indictment charging him with possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst. Clark is a documented Simon City Royal gang member.
On May 7, 2015, the Drug Enforcement Administration received a tip that Clark would be transporting methamphetamine. When Clark was pulled over and his car was searched, law enforcement agencies found methamphetamine and a gun, which was hidden in the engine compartment. In April 2016, Clark entered guilty pleas on two previous state drug charges and is currently serving a three-year state sentence.
Clark will be sentenced by U.S. District Judge Sul Ozerden on March 22, 2018, and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Drug Enforcement Administration as part of a violent crime initiative. The case is being prosecuted by Assistant U.S. Attorney Annette Williams.
Ft. Lauderdale Resident Sentenced for Bank Fraud and Aggravated Identity TheftRead the Press Release
Teresa Thompson, 59, of Fort Lauderdale, was sentenced to 32 months imprisonment, for conspiracy to commit bank fraud, bank fraud, and aggravated identity theft.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Custom Enforcement’s Homeland Security Investigations (ICE-HSI), and W. Howard Harrison, Chief, Plantation Police Department, made the announcement.
Teresa Thompson was convicted at trial of one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, four counts of bank fraud, in violation of Title 18, United States Code, Section 1344, and one count of aggravated identity theft, in violation of Title 18 United States Code, Section 1028A(a)(1).
The evidence at trial established that between October 24, 2016 and November 29, 2016, Thompson signed and deposited over $28,000 in stolen checks into her TD Bank account. Thompson received the checks from co-conspirator Thomas Lee Souffrant, who stole the checks from mailboxes in Plantation and Fort Lauderdale, Florida.
Mr. Greenberg commended the investigative efforts of ICE-HSI and the Plantation Police Department. The case was prosecuted by Assistant United States Attorneys Joshua S. Rothstein and David Turken.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fraudsters Sentenced in Second Chance Lending SchemeRead the Press Release
McALLEN, Texas – Three men have been ordered to prison following their convictions related to a “second chance” mortgage lending scheme, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Luis Antonio Rodriguez, 37, of Mission, and Rogelio Ramos Jr., 37, of Pharr, of conspiracy to commit wire fraud late Friday, May 26, following a seven-day-trial and approximately nine hours of deliberation. Also sentenced today was another co-conspirator - Guadalupe Artemio Gomez, 32, of Mission – who had pleaded guilty prior to trial.
Today, U.S. District Judge Randy Crane ordered Rodriguez to serve a total of 13 years in federal prison, while Ramos received a 90-month term of imprisonment. Gomez received a four-year sentence. At the hearing, the court heard from all three defendants as well as numerous victims who provided testimony that described the substantial harm they and their families suffered as a result of the fraud. The three men were further ordered to serve five years of supervised release and ordered to pay $1,858, 997.75 in restitution to the victims of the scheme.
All three were accused of operating a “second chance” financing business under the names of T.G. and Wealth, Infinite Properties and Me In 3D, focusing on individuals who were financially unable to apply for traditional home financing. The investigation revealed Gomez, Rodriguez and Ramos conducted business in McAllen, Mission, Edinburg, Houston and San Antonio by hiring recruiters to funnel prospective home buyers to Infinite Properties. The homebuyers then gave 10 percent of the purchase price as a down payment to Infinite Properties.
During trial, the jury heard from victims, law enforcement and an FBI forensic accountant who testified that instead of using the down payments as intended, the money was used for personal expenses, trips to Las Vegas and to purchase other real estate.
Gomez testified at trial against Rodriguez and Ramos stating the two men received more than $1 million in the mortgage scheme in 2016.
The defense claimed they had no intent to defraud the victims because they had attempted to get a $10 million loan. The jury was not convinced and found both men guilty as charged.
Previously released on bond, the three men were taken into custody following the sentencing today where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Texas Department of Insurance and police departments in McAllen, Mission and Edinburg conducted the investigation.
Assistant U.S. Attorneys Robert L. Guerra Jr. and Andrew Swartz prosecuted the case.
Four Michigan Men Indicted on Federal Charges in Connection with Jared the Galleria of Jewelry RobberyRead the Press Release
St. Louis, MO – Four individuals from Michigan were indicted today for their part in the robbery of Jared the Galleria of Jewelry on Monday, December 4, 2017.
Tyran Gray, 20; Xavier Grove, 33; Darrell Lee, 20; and Robert Scott, 29, were each indicted by a federal grand jury on one felony count each of robbery which interfered with interstate commerce, following a criminal complaint filed on December 5.
According to court records, the four named defendants entered Jared the Galleria of Jewelry, located at 21 The Boulevard, Richmond Heights, Missouri. One held the door open while the others smashed the glass cases, taking loose diamonds and watches in the presence of employees of Jared’s. The defendants ran out of the store on foot and fled the scene. Due to an unrelated incident, there were several police officers in the area at the time of the robbery and they pursued the defendants who were later arrested and the stolen property recovered.
The robbery charge carries a maximum penalty of 20 years in prison and/or fines up $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the Richmond Heights Police Department and Federal Bureau of Investigation. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Former Washington County Ambulance District Administrator and Wife Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO – The former Administrator for the Washington County Ambulance District, William Gum, a/k/a “Mal” and his wife, Charlena Gum, a/k/a “Charli”, who also was an employee of district, were indicted on charges involving stealing from the District, an agency that receives Federal program benefits.
According to the indictment, William “Mal” Gum was the Administrator for the Washington County Ambulance District, an agency that receives more than $10,000 of Medicare program benefits each year. Mal Gum’s salary was set by the Board of the District. The indictment alleges that between 2012 and 2016, Mal Gum paid himself a salary that was higher than the salary authorized by the Board and that he used District funds to pay for health insurance for his dependents without authorization. Mal Gum is charged with stealing at least $5,000 a year from the District between 2012 and 2016.
Additionally, the indictment alleges that Charlena “Charli” Gum and Mal Gum used District credit cards to purchase personal items. Between September 1, 2014 and November 29, 2014 Charli and Mal Gum used the District credit card to purchase more than 30 gift cards in denominations of $50 and $100, music CDs, undergarments, clothing, and other personal items and groceries. According to the indictment, Mal Gum received itemized bills for the fraudulent purchases and paid the bills from the District bank account.
William Gum, 58, Potosi, MO, was indicted by a federal grand jury on five felony counts of federal program theft, one count of conspiracy to commit access device fraud, and one felony count of access device fraud.
Charlena Gum, 43, Potosi, MO, was indicted by a federal grand jury on one felony count of federal program theft, one count of conspiracy to commit access device fraud, and one felony count of access device fraud.
If convicted, each count of federal program theft carries a maximum penalty of 10 years in prison and/or fines up to $250,000; conspiracy to commit access device fraud carries a maximum of five years in prison and/or fines up to $250,000; and access device fraud carries a maximum of ten years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Jefferson County Sheriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Jeannette Graviss is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Former Union President and Treasurer Sentenced to Probation for Stealing Union FundsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on December 13, 2017, United States District Court Judge Richard P. Conaboy sentenced Michael Evans, age 57, and William Uggiano, age 60, both of Wilkes-Barre, Pennsylvania, for stealing funds from a local union.
According to United States Attorney David J. Freed, both Evans and Uggiano were sentenced to 2 years’ probation for stealing funds from the American Federation of Government Employees (AGFE) Local 1699 Union. Evans was ordered to pay $65,775 in restitution and Uggiano was ordered to pay $7,350 in restitution to the union.
Evans and Uggiano, served as the President and Treasurer respectively, stole more than $68,000 in union funds from Local 1699’s credit union between March 2013 and December 2015.
This case was investigated by the United States Department of Labor, Office of the Inspector General. Assistant United States Attorney Evan Gotlob prosecuted the case.
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Former Suzuki Employee Sentenced for Submitting False Report to EPARead the Press Release
Wayne Powell, a former employee of American Suzuki Motor Corporation headquartered in Brea, California, was sentenced today to one day in prison in federal court in Detroit for violating the Clean Air Act when he submitted a false end-of-year report to the U.S. Environmental Protection Agency, the Justice Department announced.
According to court records, Powell was a Government Relations Analyst for Suzuki and was responsible for submitting documents to EPA regarding Suzuki’s compliance with motorcycle emission standards. Powell submitted Suzuki’s 2012 application to EPA for a “certificate of conformity,” which allows a vehicle manufacturer to sell vehicles in the United States.
At the end of the model year, Suzuki was required to submit to EPA an end-of-year report to show that it was in compliance with emission standards. The first end-of-year report Powell submitted to EPA’s Office of Transportation and Air Quality in Ann Arbor in 2013 purported to claim “banked credits” to offset the excess emissions. However, because Suzuki had not participated in the banked credit program, it had no credits to use. EPA informed Powell it could not accept that report. Subsequently, on March 28, 2014, Powell submitted an amended end-of-year report to EPA in which he had altered the numbers of four motorcycle engine families, which resulted in a calculation that was within the emission limit. The altered numbers were false. Powell also falsely represented to EPA in the email that accompanied the amended report that “[t]he computer software that we use to gather this information did not count all of the units” and that he had “corrected some mistakes on the 2012 report.”
On Nov. 8, 2016, EPA announced that it had entered an administrative settlement with Suzuki Motor of America, Inc. and Suzuki Motor Corporation that resolved Clean Air Act violations for manufacturing, importing, and selling model year 2012 motorcycles that failed to meet the EPA average emission standard for the Suzuki on-highway motorcycle fleet, and for submitting falsified production reports based on incorrect motorcycle production volumes to demonstrate compliance with the emission standard. Suzuki agreed to pay a total civil penalty of $2,054,924.
Acting Assistant Attorney General Jeffrey H. Wood and Acting U.S. Attorney Daniel L. Lemisch thanked the U.S. Environmental Protection Agency’s Criminal Investigation Division, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service for their work in this investigation. The case is being prosecuted by Senior Counsel Kris Dighe of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Craig Weier of the U.S. Attorney’s Office for the Eastern District of Michigan.
Former Massage Therapist Pleads Guilty to Sex Offenses for Incidents Involving ClientsRead the Press Release
WASHINGTON – Habtamu Gebreslassie, 24, a former massage therapist, pled guilty today to three sex offenses stemming from a series of incidents involving clients at two massage establishments in Northwest Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Gebreslassie, of Silver Spring, Md., pled guilty in the Superior Court of the District of Columbia to first-degree sexual abuse of a patient or client, attempted first-degree sexual abuse of a patient or client, and misdemeanor sexual abuse. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon prison sentence of 19 to 60 months, to be followed by three years of supervised release. Additionally, upon completion of his prison term, Gebreslassie will be required to register as a sex offender for the rest of his life.
The Honorable Lynn Leibovitz scheduled sentencing for Feb. 16, 2017.
According to a proffer of facts submitted at the plea hearing, all three victims were women who were getting massages from the defendant, who was licensed to practice massage therapy in the District of Columbia.
The first incident took place on June 21, 2017, at a massage establishment in the Dupont Circle area. That day, Gebreslassie engageed in unwanted sexual contact with a client. The second incident happened on Aug. 28, 2017, at another establishment in the Tenleytown area; there, Gebreslassie attempted to engage in a sexual act with a client. Finally, on Sept. 17, 2017, also at the Tenleytown location, Gebreslassie sexually abused a client.
Following the Sept. 17 incident, the victim contacted the Metropolitan Police Department. Gebreslassie was arrested later that day and has remained in custody ever since.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department’s Second District and Sexual Assault Unit. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Victim/Witness Advocate Tracy Hawkins, Paralegal Specialist Tiffany Jones, and Assistant U.S. Attorneys Jocelyn Bond and J. Matt Williams, who investigated and prosecuted the case.
Former Director of OSU’s Multispectral Laboratories Charged with Multi-Million-Dollar FraudRead the Press Release
Oklahoma City, Oklahoma – A federal grand jury has charged DANIEL WEBSTER "WEB" KEOGH, 47, and DANIELLE KEOGH, 36, both of Edmond, Oklahoma, with fraud crimes against First Pryority Bank, the U.S. Department of Agriculture, Commuter Air Technology, Inc., and Oklahoma State University’s Multispectral Laboratories, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to the 23-count indictment, Web Keogh was Chief Executive Officer of both EMB Energy, Inc., and Triton Scientific, LLC. The first ten counts of the indictment concern a $3.2 million loan to Triton from First Pryority Bank, which has offices in Tulsa and Pryor, Oklahoma. The indictment explains that in the fall of 2010, Web Keogh signed an agreement between EMB Energy and Lawrence Livermore National Security, LLC ("Livermore") concerning the development of new battery technology for electric utilities. Under the agreement, EMB Energy agreed to invest approximately $22 million in a collaborative project with Livermore. If Livermore and EMB Energy succeeded in building a small electromechanical battery prototype and scaling it to larger sizes, EMB Energy could own and commercialize a utility-sized battery.
To pursue this opportunity, Web Keogh, along with his wife Danielle Keogh, who was EMB Energy’s Senior Vice President of Finance, sought a $3.2 million loan to Triton from First Pryority Bank, secured by a battery to be purchased for $4 million. Several of the Keoghs’ statements to the bank, however, are alleged to have been false. In 2010, Web Keogh is alleged to have supported the loan application by claiming Triton would use the money to "purchase and install a significant piece of capital equipment for electrical storage." He also allegedly stated the loan would be for "equipment purchase only" and would support a project at Triton’s facility in Chilocco, Oklahoma. He later allegedly told the bank falsely that Triton had acquired the battery and substantially completed development of the battery. According to the indictment, Triton was engaging only in research and development—no battery prototype had been built, and no battery existed to serve as collateral. Furthermore, the indictment states battery research was to take place in California rather than at Chilocco. According to the indictment, identifying Chilocco as the location of the project qualified Triton for a loan guarantee by the U.S. Department of Agriculture’s Rural Development Administration, which supports the development of infrastructure in rural and economically depressed areas.
The indictment alleges Web and Danielle Keogh both made false statements in early 2011 when they gave the bank false invoices from EMB Energy to Triton to support the loan proceeds. In particular, these invoices made allegedly false references to a 2.0 MWh battery system, component parts, the shipment of items to Ponca City, Oklahoma, a purchase agreement between Triton and EMB Energy, and the battery’s contract value. The indictment states that EMB Energy, Triton, and Livermore never built a working electromechanical battery and that when Triton defaulted on the loan in December 2012, it owed more than $3 million to First Pryority and the U.S. Department of Agriculture. Web Keogh is charged by himself with making a false statement in a matter within the jurisdiction of the U.S. Department of Agriculture when he stated in loan closing documents that funds would be used to purchase machinery and equipment, rather than research and development.
Count 11 concerns a $2 million line of credit Triton had secured at First Pryority. The indictment alleges that Danielle Keogh made a false statement to First Pryority in May 2012, when she sought to renew this credit line. According to the indictment, she provided a financial statement and tax return that listed the battery as a fixed asset worth $4,172,979.64, when she knew Triton did not own a $4 million working battery and the battery concept was still in a pre-prototype stage of assembly.
Counts 12 through 23 concern the Keoghs’ dealings with Oklahoma State University—University Multispectral Laboratories, LLC (“OSU-UML”), a non-profit research center wholly owned by OSU that served the Department of Defense and other entities. In 2008, Triton became OSU-UML’s managing entity. Web Keogh served as OSU-UML’s Laboratory Director until he resigned in November 2012. Danielle Keogh is alleged to have represented herself as OSU-UML’s Director of Finance. The indictment explains that from 2010 to late 2012, OSU-UML served as prime contractor for projects by the United States Special Operations Command ("SOCOM"), including work by Commuter Air Technology, Inc. ("CAT") in war zones. The federal government paid OSU-UML for CAT’s work, and, according to the indictment, OSU-UML was supposed to forward the bulk of these funds to CAT.
According to the indictment, Web Keogh failed to use a substantial portion of the government’s payments to satisfy CAT’s subcontractor invoices. In particular, he allegedly transferred $1.675 million of OSU-UML funds in September 2012 to bank accounts in New York and Ohio based on instructions from an attorney at a Washington, D.C., law firm. The attorney allegedly promised these deposits would generate millions of dollars of "donations" for OSU-UML. The indictment states neither the Executive Director nor the Board of OSU-UML approved these transfers and that OSU-UML never recovered the funds. According to the indictment, Web and Danielle Keogh also directed OSU-UML staff to use money that should have gone to CAT for payments unrelated to SOCOM’s work, including hundreds of thousands of dollars related to EMB Energy’s battery project and more than $100,000 to support Danielle Keogh’s boutique dress shop, Liberté, in Oklahoma City.
If convicted of the bank-fraud conspiracy or making a false statement to a bank, the defendants could be imprisoned for a maximum of thirty years on each count, to be followed by up to five years of supervised release. Web Keogh could be sentenced to up to five years in prison and three years of supervised release for making a false statement in a matter within the jurisdiction of the U.S. Department of Agriculture. If convicted of the wire-fraud conspiracy relating to OSU-UML, the Keoghs could be imprisoned for a maximum of twenty years, to be followed by up to three years of supervised release. Web Keogh is charged with eight counts of wire fraud relating to OSU-UML; Danielle Keogh is also charged in three of these counts. Each count of wire fraud would carry the same penalty as the wire-fraud conspiracy. Web Keogh is also charged separately with three counts of embezzling from OSU-UML as an organization receiving federal funds, which would carry a maximum penalty of ten years in prison and three years of supervised release. Both defendants could be fined up to $1,000,000 on each of the banking crimes and up to $250,000 on each of the remaining counts. If convicted, they would also be required to pay restitution to victims.
The public is reminded these charges are merely accusations and that Web and Danielle Keogh are presumed innocent unless found guilty beyond a reasonable doubt by a unanimous jury.
This case is the result of an investigation by the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the U.S. Department of Agriculture—Office of Inspector General. Assistant U.S. Attorneys Chris M. Stephens and K. McKenzie Anderson are prosecuting the case. Reference is made to court filings for further information.
Former Comptroller of Mortgage Lender Charged with Bank Fraud and Wire FraudRead the Press Release
Joon H. Kim, Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Maria T. Vullo, Superintendent of the New York State Department of Financial Services (the “DFS”), announced today the unsealing of an Indictment charging JOHN REIMER with bank fraud and mortgage fraud in connection with his participation in a scheme to defraud banks of money intended for individuals seeking loans to purchase or refinance their homes. REIMER was arrested today in Boca Raton, Florida, and was presented in U.S. District Court for the Southern District of Florida earlier today before United States Magistrate Judge James M. Hopkins.
Acting U.S. Attorney Joon H. Kim said: “As alleged, John Reimer, vice president of a mortgage bank, defrauded several other financial institutions of more than $12 million. Reimer allegedly falsified documents, kept funding for mortgages that never closed, and even acquired funding multiple times for the same loans as part of the scheme. Fraud schemes that target money intended for home loans can taint the market for honest homebuyers seeking to secure mortgages. We will continue to work with our law enforcement and regulatory partners to ensure that schemes like the one charged here are stopped.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Reimer capitalized on his knowledge of the mortgage-lending industry to exploit its vulnerabilities, causing serious damage to a number of warehouse banks fronting him an advance for the loans his bank was in the business of providing. Mortgage fraud not only affects individual victims and institutions, it risks the overall stability of the housing market, accumulating losses across the board. The FBI continues to support partnerships within the mortgage industry and law enforcement as we work together to combat this serious crime.”
Financial Services Superintendent Maria T. Vullo said: “This defendant allegedly used his position and access as a banker to obtain millions of dollars in fraudulent loans. As regulator of New York’s Financial Services industry, the Department of Financial Services is proud to have assisted the United States Attorney’s Office for the Southern District of New York in bringing this defendant to justice.”
According to the allegations made in the Indictment:[1]
REIMER, who was the vice-president and comptroller of a mortgage lending institution (the “Mortgage Bank”), participated in a scheme to defraud several financial institutions (the “Warehouse Banks”) by causing the Warehouse Banks to provide funds to the Mortgage Bank, ostensibly to fund mortgage loans for residential properties, based on false and fraudulent documentation and representations made and provided by Reimer to the Warehouse Banks.
The Mortgage Bank was in the business of providing mortgage loans for residential properties (“Loans”). Pursuant to agreements, the Warehouse Banks advanced sums of money to the Mortgage Bank so that the Mortgage Bank could fund Loans (the “Warehouse Advances”). Once a Loan closed, the Mortgage Bank typically sold the loan to an investor and used the proceeds of the sale to re-pay the Warehouse Bank for the Warehouse Advance.
In order to obtain a Warehouse Advance for a particular loan, the Mortgage Bank was required, among other things, to provide the Warehouse Bank with certain documents and information about the Loan. In addition, the notes and mortgages executed by the residential mortgagors were provided to the Warehouse Banks as collateral for the Warehouse Advances. REIMER was responsible for providing the Warehouse Banks with the information and documents necessary to obtain the Warehouse Advances.
However, according to the Indictment, with respect to certain Loans, REIMER “double-pledged” residential properties by obtaining multiple Warehouse Advances from more than one Warehouse Bank to fund the same Loan, thus misleading each Warehouse Bank into believing that the Warehouse Advance it made to the Mortgage Bank was fully collateralized.
Moreover, according to the Indictment, with respect to certain Loans, REIMER falsely represented to the Warehouse Banks that the Loans were going to close imminently, when, in fact, such Loans were not imminently closing at the time the Warehouse Advances were made. In some cases, the Loans never closed, but the Mortgage Bank nevertheless retained the Warehouse Advances made for those particular Loans. In other cases, the Loans did close, but the Mortgage Bank used those Warehouse Advances to repay other Warehouse Advances.
According to the Indictment, in furtherance of the scheme, REIMER provided the Warehouse Banks with fraudulent documents, including mortgage notes on which REIMER falsified the signatures of the purported residential mortgagors.
According to the Indictment, from November 2008 through January 2009, REIMER used fraudulent misrepresentations to cause the Warehouse Banks to wire the Mortgage Company at least over $12 million.
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REIMER, 60, of Boca Raton, Florida, is charged with one count of bank fraud and one count of wire fraud, each of which carries a maximum sentence of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Kim thanked the FBI and DFS for their outstanding work on the investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Michael D. Maimin is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as allegations.
Former Chief Financial Officer Arrested and Charged in Manhattan Federal Court with Defrauding Company of over $2 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Angel M. Melendez, Special Agent in Charge of the New York Field Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), announced today that RANDY WANG was arrested this morning on wire fraud charges stemming from his scheme to defraud his former employer, a company based in Manhattan that manages a global airline alliance whose members consisted of approximately 13 international airlines and their affiliates (the “Company”), by incurring more than $2.2 million in unauthorized charges on the Company’s credit card account, and then making changes to the Company’s accounting system to evade detection. WANG was arrested this morning in Long Island City, New York, and was presented today before United States Magistrate Judge Katharine H. Parker.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Randy Wang took advantage of his position at a major New York-based company to charge millions of dollars’ worth of non-business-related purchases on the company’s credit card. Wang allegedly purchased hundreds of electronic devices, including cell phones, computers, and tablets, and then falsified paperwork to hide the transactions. Wang allegedly tried to take his employer for a ride, but instead he may be facing a trip to prison.”
HSI Special Agent in Charge Angel M. Melendez said: “Using his position as business manager, Wang allegedly developed a scheme to defraud his employer of millions of dollars by means of unauthorized credit card purchases and altered accounting records. Twenty-five years ago, HSI New York formed the El Dorado Task Force specifically to target all levels of financial crime, including wire fraud like today’s arrest. With more than 30 local, state, and federal law enforcement partners under one roof, El Dorado continues to be a leader in financial fraud investigations, working together to bring these perpetrators to justice.”
According to the Complaint unsealed today in Manhattan federal court[1]:
During the relevant time period, WANG was employed as a business manager for the Company, and for approximately the last two months of the scheme, WANG also served as the Company’s interim chief financial officer. From January 2016 through October 2017, WANG incurred more than $2.2 million of unauthorized charges on the Company’s credit card account by making hundreds of purchases at both online and brick-and-mortar retailers. WANG’s purchases, which were entirely unrelated to his official duties and were not for the benefit of the Company, included approximately 443 laptop computers, 241 mobile electronic devices, 24 tablet computers, and numerous other electronics. In order to evade detection of his criminal conduct, WANG made changes to the Company’s accounting records to disguise the nature of the credit card charges.
* * *
WANG, 33, of Long Island City, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the court.
Mr. Kim praised the work of HSI and the El Dorado Task Force.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described therein should be treated as an allegation.
Former Administrator Pleads Guilty to Stealing $227,000 from Pettis County Ambulance DistrictRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the former administrator of the Pettis County Ambulance District pleaded guilty in federal court today to embezzling more than $227,000 from the district.
Michael Paul Gardner, 62, of Sedalia, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to a federal information that charges him with one count of bank fraud.
Gardner was hired as the administrator of the Pettis County Ambulance District in December 2012. By pleading guilty today, Gardner admitted that he forged board members’ signatures on 44 checks totaling $123,721. Gardner also admitted that he received $103,928 in unapproved payroll expenses from 2015 to 2017. The total amount embezzled by Gardner from the ambulance district was $227,649.
Gardner was arrested on March 29, 2017. Two board members of the ambulance district came to the Sedalia, Mo., Police Department on March 24, 2017, to present suspicious checks and financial transactions made by Gardner. The board had been notified by Central Bank of Sedalia that there was suspicious activity being conducted on the district’s bank accounts. The board members presented several ambulance district checks to police investigators in which Gardner was the payee and upon which the signatures of two board members had been forged. Board members also presented several checks made out to another person, identified in court documents as “T.R.,” which also contained forged board members’ signatures.
Gardner admitted to investigators that he had been forging board members’ signatures on checks payable to himself or to T.R., then depositing them into either his or her personal bank accounts, for about a year.
The ambulance district employed an independent auditing firm to conduct an intensive fraud investigations to determine the amount of funds misappropriated by Gardner. The firm identified 44 forged checks totaling $123,721.
Under the terms of today’s plea agreement, the government and Gardner will recommend to the court that Gardner be sentenced to two 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 Lawrence E. Miller. It was investigated by the FBI, the Sedalia, Mo., Police Department and the Pettis County Prosecuting Attorney’s Office.
Former 22nd JDC District Attorney’s Office Investigator Pleads Guilty to Soliciting and Receiving BribesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MICHAEL J. COTTON, age 68, of Bogalusa, pleaded guilty yesterday to the one-count Bill of Information charging him with soliciting sexual favors from a woman in exchange for obtaining a bond reduction for her boyfriend.
According to court documents, COTTON worked as an Investigator with the Office of the District Attorney for the 22nd Judicial District, which includes St. Tammany and Washington Parishes. COTTON was responsible for investigating matters involving the issuance of bad checks, including initiating cases, reviewing records, interacting with victims, collecting fees and restitution from offenders, and obtaining warrants from municipal judges. COTTON also possessed and displayed a law enforcement badge and credentials, represented the District Attorney’s Office in interactions with criminal defendants and witnesses in ongoing law enforcement investigations, and had access to sensitive case-related information. Furthermore, COTTON regularly corresponded with, had access to, and provided case-related recommendations to Assistant District Attorneys.
Between December 28, 2013, and July 10, 2015, COTTON offered to intervene in legal proceedings and obtain favorable legal outcomes in the 22nd Judicial District, such as significant reductions in bond, for three females charged with crimes, their friends, family, and significant others who were charged with crimes in exchange for sexual favors. If females expressed reluctance, COTTON would either imply or state explicitly that he had the ability to influence the criminal justice system to exact harsher penalties against the females or their friends, families, or significant others.
In July 2015, COTTON demanded sexual favors from a 23-year-old female identified as “Victim 1” in exchange for seeking a bond reduction from $25,000 to a $30 signature bond for her boyfriend, a defendant in the Washington Parish jail.
Between December 2013 and March 2014, COTTON requested sexual favors from a 28-year-old female identified as “Victim 2” in exchange for arranging for her to retain custody of her minor children and eliminating a drug testing condition she had as the result of prior legal issues. COTTON told Victim 2 that he had strong relationships with, and possessed the power to influence, representatives of the Washington Parish Department of Children and Family Services, Judges of the 22nd Judicial District, and the then-District Attorney Walter Reed.
In January 2014, COTTON used his position as Investigator to seek and obtain a significant bond reduction for an incarcerated 23-year-old female identified as “Victim 3” with whom he had a relationship that involved sexual activity. When, in February 2014, Victim 3 sought to end her sexual relationship with him, COTTON told her that he would use his position as Investigator to influence law enforcement authorities to imprison Victim 3 if she did not resume the sexual relationship.
COTTON faces a maximum term of imprisonment of ten years, followed by up to a lifetime of supervised release, and a $250,000 fine. U.S. District Judge Ivan L.R. Lemelle set sentencing March 14, 2018.
“Mike Cotton was a profoundly corrupt member of the law enforcement community who victimized some of the most vulnerable women in Washington Parish,” stated Special Agent in Charge Eric J. Rommal of the Federal Bureau of Investigation New Orleans Field Office. “His guilty plea is an important first step toward holding him accountable for his abuses of power.”
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. He would also like to thank the Louisiana Department of Justice: Attorney General’s Office and the District Attorney’s Office for the 22nd Judicial District for their cooperation and assistance. Assistant U.S. Attorney Jordan Ginsberg is in charge of the prosecution.
Florida Man Indicted for Stealing ID’s and Committing Bank FraudRead the Press Release
A Florida man was indicted today on multiple counts of conspiracy, bank fraud and aggravated identity theft, announced Acting United States Attorney Daniel L. Lemisch.
Joining Lemisch in the announcement was David P. Gelios, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.
Kyle Cameron, 30, of Fort Lauderdale, Florida, was charged in a 17-count indictment for his role in a bank fraud scheme executed in Michigan in 2015. Cameron is scheduled to be arraigned on December 19, 2017, 1 p.m., in Detroit. Cameron has been in federal custody since his arrest on these charges.
According to the indictment, Cameron participated with others in a bank fraud conspiracy that involved travelling to Michigan to break into homes and cars with the intent to obtain identification documents, financial transaction devices, and personal checks. Subsequent to stealing these items, Cameron and others would, using the drive-thru lane farthest from the teller window, present these records at banks, posing as the victim of the theft in order to fraudulently obtain cash from the bank.
At present, the U.S. Attorney’s Office for the Eastern District of Michigan has charged more than ten people with similar charges due to fraudulent activities in 2015 and 2016, including defendants Ja’Marri Barnes, Marlon Fencher, Kristine Carter, Justin Curry, Rhashod Brown, Cedrick Jones, Wendy Kroner, Lindsey Blackwood, Tedgrick Montgomery, and Dennis Jones. According to information provided at a December 13, 2017, detention hearing for defendant Dennis Jones, the banking industry has referred to the defendants who use this bank fraud scheme as the “Felony Lane Gang” due to their repeated usage, in order to avoid detection, of the drive-thru lane farthest from the teller window. The detention hearing also revealed that the defendants are known to target the personal identification documents and bank records of women. When pursued, the defendants routinely recklessly flee, both by car and on foot.
“Given the random nature of this crime, and especially during the holiday season, our community needs to be careful to lock doors and to not let purses and bags be viewable through a car window,” Lemisch said. “We applaud the dedication of our federal law enforcement partners in the Federal Bureau of Investigation for their aggressive investigation of this unsettling crime.”
“The brazen criminal scheme described in today’s indictment should serve as a reminder to everyone that identity theft and other financial related crimes are not just committed by high-tech cyber thieves hiding behind the relative anonymity of their computer screens,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “As evidenced by the home burglaries which could have resulted in harm to homeowners, the public must remain vigilant in protecting your homes and personal information from would-be-criminals. If you or someone you know has fallen victim to identify theft, contact your local law enforcement agency or visit www.identitytheft.gov.”
Bank fraud is punishable with a maximum penalty under federal law of 30 years’ imprisonment and a $1,000,000 fine; aggravated identity theft requires a mandatory penalty of 2 years’ imprisonment.
An indictment is only a charging document 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.
This investigation, which began in 2015, was led by the FBI’s Detroit Identity Theft and Financial Crimes Task Force, which is comprised of federal and local agencies, including an officer from the Auburn Hills Police Department. The case is being prosecuted by Assistant U.S. Attorneys Patrick E. Corbett and Craig A. Weier.
Federal, State, and Local Law Enforcement Partners Conduct Multi-Defendant TakedownRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that earlier today Federal, state, and local law enforcement conducted a large-scale enforcement action targeting a criminal conspiracy distributing methamphetamine in the Eastern District of Washington, Idaho, and Montana. Hundreds of law enforcement officials, including federal agents and state and local officers executed Federal search warrants in Spokane, Washington; Moses Lake, Washington; Mattawa, Washington; and in North Idaho. This enforcement action resulted in the arrest of approximately 20 individuals, the seizure of approximately 75 firearms, and approximately eight pounds of methamphetamine.
This enforcement action stems from a Federal Indictment that was handed down in the Eastern District of Washington in December, 2017. The Indictment charges numerous individuals with a conspiracy to distribute methamphetamine from on or about September, 2016 through December, 2017. An Indictment Contains Allegations That an Individual Has Committed a Crime. Every Individual is Presumed Innocent Until Proven Guilty beyond a Reasonable Doubt.
Today’s enforcement action is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Agencies participating in the enforcement operation today were Drug Enforcement Administration – Spokane District Office; Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Border Patrol; Spokane Police Department; Homeland Security Investigations; United States Marshal Service; Federal Bureau of Investigation; Spokane Regional Safe Streets Task Force; and Interagency Narcotics Enforcement Team.
James A. Goeke and David Herzog, Assistant United States Attorneys for the Eastern District of Washington, are prosecuting this case.
Federal Jury Convicts Former Sheriff’s Deputy on Three Counts, including Solicitation to Tamper with a WitnessRead the Press Release
Memphis, TN – After eight days of trial before U.S. Senior District Judge Samuel H. Mays, a federal jury convicted Jeremy Drewery of one count of Hobbs Act Extortion; one count of Receipt of a Bribe by a Government Agent; and one count of Solicitation to Tamper with a Witness. United States Attorney D. Michael Dunavant announced the guilty verdict today.
Jeremy Drewery, 42, of Arlington, Tennessee, was indicted last September for attempting to extort thousands of dollars from an alleged drug dealer in August of 2016. In July, additional charges were added to the indictment, which alleged that the defendant solicited a person to kill the witness in the extortion case.
United States Attorney D. Michael Dunavant said: "Official misconduct and corruption by law enforcement officers in positions of trust and authority undermine the foundational integrity of our government institutions. We must root out, expose, and hold accountable those officials who violate the public trust by corrupt acts of extortion, bribery, and witness tampering, and this verdict does just that."
Drewery was assigned to the Shelby County Sheriff’s Office’s Narcotics Division at the time of these events, but has since been terminated from the department. The evidence at trial showed that after executing a search warrant on the home of an alleged drug dealer, Drewery demanded money from the man. In exchange, Drewery would not institute a criminal case on the man. The alleged drug dealer contacted the FBI, which began an investigation. Over the course of three weeks, Drewery met with the alleged drug dealer and received a total of $8,000. Each of the meetings and numerous phone calls between Drewery and the alleged drug dealer were recorded.
"Law enforcement corruption undermines the public trust and can threaten the overall safety of our community," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "The FBI holds, as one of its highest priorities, the investigation of corrupt members of law enforcement. This conviction is the result of the hard work and diligence of the honest law enforcement officers and agents of the Tarnished Badge Task Force, who like the overwhelming majority of law enforcement officers, put their lives on the line day in and day out to protect, serve, and maintain public trust."
The evidence at trial also showed that, after Drewery’s arrest on the attempted extortion, he paid a confidential informant $2,000 to solicit a person to kill the alleged drug dealer.
Sentencing is scheduled for Friday, March 30, 2018, before U.S. Senior District Judge Mays. Drewery faces up to 20 years in federal prison and a fine of up to $250,000.
This case was investigated by the Tarnished Badge Task Force, which is comprised of investigators from the FBI, Memphis Police Department and the Shelby County Sheriff’s Office.
Assistant U.S. Attorneys Reagan M. Taylor and Mark Erskine are prosecuting this case on the government’s behalf.
Explo co-owner pleads guilty to conspiracy, false statement chargesRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that the co-owner of Explo Systems Inc. pleaded guilty to conspiracy and false statements concerning the storage of munitions at Camp Minden that led to an explosion.
Explo co-owner David Alan Smith, 62, pleaded guilty before U.S. Magistrate Judge Mark Horsnby to one count of criminal conspiracy and one count of making a false statement. The plea will become final when accepted by U.S. District Judge Elizabeth E. Foote.
Explo Systems Inc. is a private company whose primary business operations involved the demilitarization of military munitions and the subsequent resale of the recovered explosive materials for mining operations. According to the guilty plea, the U.S. Army awarded Explo a contract on March 24, 2010 to dispose of 450,000 155 mm artillery propelling charges designated as M119A2 for $2,902,500. The Army and Explo officials later amended the contract on March 6, 2012 to dispose of 1,350,000 charges for $8,617,500. The contract required Explo to properly store and dispose of the demilitarized M6. The contract also required Explo to document the sale of the demilitarized M6 by completing an End User Certificate (EUC). On the EUC, the purchaser of the demilitarized M6 certified the purchase and compliance with applicable federal laws. Once the EUCs were certified, Explo submitted the EUCs to the Army.
On October 15, 2012, an explosion occurred at a munitions storage igloo on Camp Minden. The explosion contained approximately 124,190 pounds of smokeless powder and a box van trailer containing approximately 42,240 pounds of demilitarized M6. The damage destroyed the igloo and trailer, shattered windows of dwellings within a four-mile radius, and derailed 11 rail cars near the storage igloo.
As part of the guilty plea, Smith agreed that he conspired with others to defraud the United States by impeding federal, state and local authorities from properly monitoring the operations at Explo’s Camp Minden facility. Smith also agreed that he conspired with others to submit false end use certificates in order to obtain money to which he was not entitled.
Smith faces five years in prison, three years of supervised release and a $250,000 fine for each count. As part of the plea agreement, Smith agreed that he owes restitution in the amount of $35,398,761.
The Environmental Protection Agency-Criminal Investigation Division, U.S. Army Criminal Investigation, Department of Defense Criminal Investigative Service, FBI and the Louisiana State Police-Emergency Service Unit investigated the case. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
Elmira Man Pleads Guilty to Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Howard Edward Brooks, 40, of Elmira, NY, pleaded guilty to receipt, attempted distribution, and four counts of possession of child pornography involving prepubescent minors before U.S. District Court Judge David G. Larimer. Receipt and attempted distribution of child pornography each carry a mandatory minimum penalty of five years in prison with a maximum of 20 years, while each count of possession of child pornography involving prepubescent minors is punishable by up to 20 years in prison. Each charge also carries a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that Brooks, a former teacher at the Elmira Christian Academy, was arrested in August of 2015 following the execution of a federal search warrant at his Elmira residence. During that search, FBI Agents found several digital items containing photos and videos of children as young as toddlers being raped.
When FBI Agents arrived to execute the search warrant, Brooks tried to flush several thumb drives down the toilet. The defendant stated that he did so because he saw the FBI in his driveway and knew the thumb drives contained child pornography. However, the thumb drives were recovered from the sewer under Brooks’ residence with the assistance of the Chemung County Department of Public Works. Those thumb drives were then forensically analyzed and hundreds of child pornography videos were recovered from each.
The plea is the culmination of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.Sentencing is set for May 8, 2018, at 11:30 a.m. before Judge Larimer.
Elk Grove Man Sentenced to 20 Years in Prison for $1M Adult Adoption Immigration Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Helaman Hansen, 65, of Elk Grove, was sentenced today to 20 years in prison by U.S. District Judge Morrison C. England Jr. for operating an elaborate adult-adoption fraud scheme that targeted undocumented aliens, U.S. Attorney Phillip A. Talbert announced. Judge England also ordered Hansen to pay $576,264 in restitution.
On May 9, 2017, after an 11-day trial, a federal jury found Hansen guilty of 12 counts of mail fraud, three counts of wire fraud, and two counts of encouraging and inducing illegal immigration for private financial gain.
U.S. Attorney Talbert stated: “The sentence today acknowledges the vast number of people victimized by the defendant. He preyed upon hundreds of people who wanted to find a pathway to American citizenship and exploited their hopes and dreams for his own financial gain. The defendant’s lies and false promises caused many to part with substantial amounts of money, and in some instances, a lifetime’s worth of savings. I want to thank our federal partners at ICE’s Homeland Security Investigations and the FBI for their hard work in bringing the defendant justice.”
“Today’s decision should send a clear message to anyone who chooses to take advantage of innocent victims who are only trying to make a better life for themselves,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “HSI continues to work closely with our law enforcement partners to seek out and arrest opportunistic swindlers who misrepresent our nation’s immigration laws for their own personal gain.”
“The FBI is committed to identifying and investigating fraud, especially when such crimes prey upon the most vulnerable people in our community. Legitimate pathways to citizenship for undocumented immigrants exist but adult adoption is not one of them. Unfortunately, Hansen knowingly accepted funds for adult adoption processes despite being informed that such would not aid his victims with obtaining citizenship,” said Special Agent in Charge Sean Ragan of the Federal Bureau of Investigation’s Sacramento Field Office.
According to evidence presented at trial, between October 2012 and January 2016, Hansen and others used various entities such as Americans Helping America (AHA) to sell memberships in what he called a “Migration Program.” A central feature of the program was the fraudulent claim that immigrant adults could achieve U.S. citizenship by being legally adopted by an American citizen and completing a list of additional tasks. At first, memberships were sold for an annual fee of $150, but that fee grew and eventually was as high as $10,000.
Although some victims completed the adoption stage of the “Migration Program,” not one person obtained citizenship. As early as October 2012, Hansen had been informed by the U.S. Citizenship and Immigration Services that aliens adopted after their 16th birthday could not obtain citizenship in the manner Hansen was promoting. Despite that notification, Hansen and others acting at his direction induced approximately 500 victims to pay more than $1 million to join the fraudulent program.
This case was the product of an investigation by the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys André M. Espinosa and Katherine T. Lydon prosecuted the case.
Eastern Panhandle man admits to heroin and cocaine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Kearneysville, West Virginia man has admitted to his role in a drug distribution operation, United States Attorney Bill Powell announced.
Gerald Gibbs, age 29, pled guilty to one count of “Conspiracy to Distribute a Controlled Substance.” Gibbs admitted to conspiring to distribute 100 grams or more of heroin and 28 grams or more of cocaine. The crime took place from June 2016 to March 2017 in Jefferson County, West Virginia.
Gibbs faces up to 40 years incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Robert W. Trumble presided.
Drug Trafficker Sentenced in Brooklyn Federal Court to 97 Months’ Imprisonment for Distributing FentanylRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, Johnnie Monroe, also known as “Nut,” was sentenced by United States District Judge Brian M. Cogan to 97 months’ imprisonment for conspiring to distribute fentanyl, to be followed by a term of four years’ supervised release. The fentanyl the defendant distributed was linked to the overdose death of a young mother in West Virginia in April 2015. Judge Cogan also ordered forfeiture in the amount of $150,000.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“The death of a woman in West Virginia after ingesting fentanyl pills distributed by defendant Johnnie Monroe did not deter him from shortly thereafter shipping another package of pills containing fentanyl to West Virginia,” stated Acting United States Attorney Rohde. “Today’s sentence holds Monroe accountable for contributing to the deadly opioid epidemic facing this country. This Office, together with our law enforcement partners, will continue to identify and prosecute those who contribute to and would seek to profit from this epidemic. Through these efforts, lives will be saved by reducing the availability of opioids and preventing new addictions.”
“There are no words to express our sorrow for lives lost as a result of drug overdose; but DEA strives to bring justice to the victims’ families by identifying those responsible for distributing the poison,” stated DEA Special Agent in Charge Hunt. “Heroin and fentanyl are poison and have been the cause of record breaking numbers of overdoses throughout the U.S. This sentencing is a reminder that DEA and our law enforcement partners will continue to investigate opioid trafficking organizations and put them in jail.”
According to the Centers for Disease Control and Prevention and the Department of Justice, drug overdoses have become the leading cause of death for Americans under the age of 50. Between 2012 and 2015, fentanyl overdose deaths in West Virginia increased by more than 20 percent, according to the DEA. The recent rise in overdose deaths has been driven in large part by fentanyl—a drug that has been described as 50 to 100 times more potent than morphine. Opioids have been a particular problem in West Virginia, where the defendant and his co-conspirators trafficked substantial amounts of fentanyl. One of the victims of these trends was a young mother, who Monroe and his co-conspirators believed they killed with their fentanyl pills. Upon learning of the young mother’s death, Monroe was intercepted over a judicially authorized wiretap stating, “The girl went out.” When a co-conspirator asked Monroe what he meant by “went out,” Monroe left no ambiguity that a young woman had overdosed: “Went out! OD, OD!” Nonetheless, two weeks later, Monroe mailed another package containing hundreds of pills containing fentanyl to a co-conspirator in West Virginia.
According to the government’s sentencing memorandum, the defendant traveled to West Virginia to sell fentanyl, and, in addition, supplied a significant amount of the crack cocaine that was sold by street-level dealers in the Queensbridge community. The defendant himself sold crack on 20 separate occasions in deals monitored by the NYPD. The defendant also agreed to commit an armed robbery of an individual believed to be traveling with $110,000, and went to a bus station in Manhattan to look for the individual. The failed robbery plot was not for a lack of effort—the targeted victim never arrived. The next day, Monroe was intercepted over a wiretap bragging to a co-conspirator that they were in position, armed and ready to commit the robbery: “We had biscuits [i.e., firearms], stun guns . . . we would a taken him down.”
On December 5, 2017, co-defendant Edward Carrillo was sentenced to 126 months’ imprisonment for the same charge of conspiring to distribute fentanyl. For conspiring to distribute crack-cocaine in Queensbridge, co-defendant Terrell Carmichael was sentenced on November 16, 2017 to 51 months’ imprisonment and co-defendant Kyle Williams was sentenced on December 12, 2017 to 42 months’ imprisonment. Three additional co-defendants are awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Andrey Spektor and Lindsay K. Gerdes are in charge of the prosecution.
Defendant Sentenced Today:
JOHNNIE MONROE, also known as “Nut”
Age: 46
Brooklyn, New YorkDefendants Previously Sentenced:
TERRELL CARMICHAEL, also known as “Rell”
Age: 31
Long Island City, New YorkEDWARD CARRILLO, also known as “Super Ed”
Age: 43
Manhattan, New YorkKYLE WILLIAMS, also known as “Sleepy”
Age: 31
Long Island City, New YorkDefendants Awaiting Sentencing:
LASHAWN BALANCE, also known as “Flip”
Age: 41
Princeton, West VirginiaDARRYL KNOWLES
Age: 29
Bronx, New YorkMICHAEL YOUNG, also known as “Littles”
Age: 32
Long Island City, New YorkE.D.N.Y. Docket No. 16-CR-617 (BMC)
District Man Sentenced to Eight Years in Prison for Two Shootings in Southeast WashingtonRead the Press Release
WASHINGTON – Randy Sparrow, 31, of Washington, D.C., was sentenced today to eight years in prison on charges stemming from two shootings that occurred in Southeast Washington within a 48-hour period last summer, U.S. Attorney Jessie K. Liu announced.
Sparrow pled guilty in September 2017, in the Superior Court of the District of Columbia, to one count of unlawful possession of a firearm based on a prior conviction for a crime of violence and one count of felony assault on a police officer while armed. The plea, which was subject to the Court’s approval, called for an agreed-upon sentence of eight years in prison, consisting of two consecutive statutory mandatory minimum terms in prison. The Honorable Marisa Demeo accepted the plea and sentenced Sparrow accordingly. Following the prison term, Sparrow will be placed on five years of supervised release.
According to the government’s evidence, the first of the two shootings took place on July 8, 2017. At approximately 2:35 a.m., Sparrow, who was driving a green and black Ford Crown Victoria, chased the victim, who was driving a separate car, through various locations in Southeast Washington. As Sparrow pursued the victim, he shot at him multiple times with a firearm, striking him once in the left arm. Sparrow and the victim had met in jail approximately six or seven years ago and were with two different groups inside the jail that did not get along. Sparrow was convicted of armed robbery in 2004.
The second shooting took place on July 10, 2017. At approximately 2:05 a.m., in the 1900 block of Savannah Street SE, officers with the Metropolitan Police Department (MPD) came into contact with Sparrow during the stop and subsequent arrest of an individual that Sparrow referred to as his “little brother.” After Sparrow became upset and tried to interfere, MPD officers placed him in handcuffs, which were later removed. At approximately 2:20 a.m., four of the MPD officers left the location in an unmarked police vehicle and drove eastbound on Savannah Street SE. Sparrow followed them in a green and black Ford Crown Victoria and fired multiple shots at the officers with a firearm, striking their vehicle at least once. Sparrow then made a U-turn and fled in the opposite direction. He ran a red light, hit another vehicle at the intersection of Stanton Road SE and Alabama Avenue SE, and crashed into a tree in front of a school in the 3200 block of Stanton Road SE. Sparrow fled the vehicle and block on foot, leaving behind a Glock 19, 9mm handgun. He was arrested later that morning.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle, Victim/Witness Advocate Jennifer Allen, and Witness Security Specialists Debra Cannon and Tanya Via. Finally, U.S. Attorney Liu commended Assistant U.S. Attorney Natasha Smalky, who investigated and prosecuted the case.
Denver Man Sentenced to Long Prison Term for Being a Felon in Possession of Firearms, Mail Theft, Bank Fraud, and Aggravated Identity TheftRead the Press Release
DENVER – Delano Medina, age 34, of Denver, Colorado, was sentenced earlier this week by U.S. District Court Judge Philip A. Brimmer to serve 153 months (over 12 years) for being a felon in possession of firearms, mail theft, bank fraud, and aggravated identity theft, U.S. Attorney Bob Troyer and Acting Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service Nicole Davis announced. Medina, who appeared at the sentencing in custody, was remanded at the conclusion of the hearing. The defendant was also ordered to pay $157,014.13 in restitution to victims.
Medina pled guilty to two counts of possession of a firearm by a previously convicted felon, one count of theft of mail, one count of bank fraud, and two counts of aggravated identity theft.
According to court documents, including the stipulated facts contained in the plea agreement, between approximately April 1, 2013, and December 5, 2014, the defendant committed mail theft and bank fraud. The scheme to defraud and obtain money started with the defendant stealing outgoing mail from victims’ mailboxes. He focused on mail boxes that had the red flag raised, meaning there was outgoing mail to be picked up by the postal carrier. That mail contained victims’ personal identification information as well as financial information. Based on the stolen information accumulated from multiple victims, counterfeit checks and false identifications reflecting hybrid information from those victims were created. The defendant and others at his direction tendered counterfeit checks to a variety of retail operations for the purchase of consumer goods, especially electronics. The defendant and others then at times returned these goods to retailers in exchange for cash, or in some limited cases, in store credit. Medina conducted this scheme through numerous states, stealing mail in Colorado and then using the stolen information in Colorado as well as Nebraska, Arizona, Iowa, Texas and elsewhere.
Medina used a stolen identification to purchase a 9 mm firearm from a Cabela’s in Thronton, Colorado. He was prohibited from purchasing and possessing the firearm due to prior convictions of multiple felonies. Law enforcement ultimately recovered three firearms that the defendant admits he possessed. They were a Sturm Ruger 9 mm pistol, a Smith and Wesson 9 mm pistol, and a Browning .380 pistol. Two of the three firearms recovered from the defendant were involved in two shootings in the Denver Metro area. The defendant is currently in the Colorado Department of Corrections serving a 44-year sentence for using the firearm purchased at Cabelas in a shooting.
On December 5, 2014, defendant Medina was arrested at the Cherry Creek Mall when he attempted to purchase a watch with fraudulent identification. A search of his vehicle found that it contained numerous items related to mail theft, check fraud, and identity theft.
“This case is a good reminder, especially during the holiday season, that people need to watch out for each other to stop potential theft of mail and other crimes,” said U.S. Attorney Bob Troyer. “If you see something suspicious, please report it.”
“This case demonstrated how Postal Inspectors work with local police agencies across numerous jurisdictions to build a successful federal prosecution,” said Nicole Davis, Acting Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “The stiff sentence handed down in this case serves as a reminder of the potential penalty for violating the public’s trust in the U.S. mail.”
This case was investigated by the United States Postal Inspection Service with assistance from the Lincoln, Nebraska Police Department, the Lone Tree Police Department, and the Grand Junction Police Department.
This case was prosecuted by Assistant U.S. Attorneys Kurt Bohn and Hetal Doshi.
Davita Rx Agrees to Pay $63.7 Million to Resolve False Claims Act AllegationsRead the Press Release
DALLAS – DaVita Rx LLC, a nationwide pharmacy that specializes in serving patients with severe kidney disease, agreed to pay a total of $63.7 million to resolve False Claims Act allegations relating to improper billing practices and unlawful financial inducements to federal healthcare program beneficiaries, the Justice Department announced today. DaVita Rx is based in Coppell, Texas.
The settlement resolves allegations that DaVita Rx billed federal healthcare programs for prescription medications that were never shipped, that were shipped but subsequently returned, and that did not comply with requirements for documentation of proof of delivery, refill requests, or patient consent. In addition, the settlement also resolves allegations that DaVita paid financial inducements to Federal healthcare program beneficiaries in violation of the Anti-Kickback Statute. Specifically, DaVita Rx allegedly accepted manufacturer copayment discount cards in lieu of collecting copayments from Medicare beneficiaries, routinely wrote off unpaid beneficiary debt, and extended discounts to beneficiaries who paid for their medications by credit card. These allegations relating to improper billing and unlawful financial inducements were the subject of self-disclosures by DaVita Rx and a subsequently filed whistleblower lawsuit.
“Providers should not make patient care decisions based upon improper financial incentives or encourage their patients to do the same,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “The U.S. Attorney’s Office has and will continue to work cooperatively with providers that bring such issues to light to redress the losses the federal healthcare system has incurred.”
DaVita Rx has agreed to pay a total of $63.7 million to resolve the allegations in its self-disclosures and the whistleblower lawsuit. DaVita Rx repaid approximately $22.2 million to federal healthcare programs following its self-disclosure and will pay an additional $38.3 million to the United States as part of the settlement agreement. In addition, $3.2 million has been allocated to cover Medicaid program claims by states that elect to participate in the settlement. The Medicaid program is jointly funded by the federal and state governments.
“Improper billing practices and unlawful financial inducements to health program beneficiaries can drive up our nation’s health care costs,” said Civil Division Acting Assistant Attorney General Chad Readler. “The settlement announced today reflects not only our commitment to protect the integrity of the healthcare system, but also our willingness to work with providers who review their own practices and make appropriate self-disclosures.”
“The conduct being resolved in this matter presents serious program integrity concerns” said CJ Porter, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services, “DaVita Rx’s cooperation in the investigation of this matter was necessary and appropriate to reach this resolution.”
The lawsuit resolved by the settlement was filed by two former DaVita Rx employees, Patsy Gallian and Monique Jones, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they discover evidence that defendants have submitted false claims for government funds and to receive a share of any recovery. The case is captioned United States ex rel. Gallian v. DaVita Rx, LLC, No. 3:16-cv-0943-B (N.D. Tex.). The relators will receive roughly $2.1 million from the federal recovery.
The settlement of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477). HHS also offers several programs for health care providers to self-report potential fraud. More information on self-disclosure processes can be found on the HHS-OIG website.
The investigation was conducted by HHS-OIG, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Texas. The claims asserted by the government are allegations only and there has been no determination of liability.
Assistant U.S. Attorney Lisa-Beth C. Meletta handled this matter for the U.S. Attorney’s Office.
# # #Daly City Resident Sentenced to 108 Months in Prison for Receipt of Child PornographyRead the Press Release
SAN FRANCISCO – Ryan Recaido Patacsil was sentenced to 9 years in prison for receipt of child pornography, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down yesterday by the Honorable Maxine M. Chesney, U.S. District Judge, following Patacsil’s guilty plea to the charge on August 2, 2017.
According to his guilty plea, Patacsil, 40, of Daly City, California, admitted to using peer-to-peer software to access and download child pornography, including images of minors younger than 12 years old and portrayals of sexual abuse or exploitation of an infant or toddler. Patacsil acknowledged that he knowingly possessed numerous digital files that contained depictions of minors engaged in sexually explicit conduct on a variety of digital devices he kept in his home. Patacsil also admitted that the software he used to access and download child pornography on the internet also allowed other people to download the pornography from his computer. Patacsil acknowledged he possessed more than 600 images constituting child pornography.
On April 11, 2017, a federal grand jury returned a superseding indictment charging Patacsil with one count each of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B), and receipt of child pornography, in violation of 18 U.S.C. §§ 2252(a)(2)(B) and (b)(1). Pursuant to his guilty plea, Patacsil pleaded guilty to the receipt charge, and the possession charge was dismissed.
In addition to the prison term, Judge Chesney ordered Patacsil to serve a 7-year period of supervised release to follow his custodial sentence. Patacsil has been in custody since his arrest in February 2017, and he will begin serving the sentence immediately.
Assistant U.S. Attorney Andrew F. Dawson is prosecuting the case with the assistance of Wincy Wong and Marina Ponomarchuk. The prosecution is the result of an investigation by the FBI.
DaVita Rx Agrees to Pay $63.7 Million to Resolve False Claims Act AllegationsRead the Press Release
DaVita Rx LLC, a nationwide pharmacy that specializes in serving patients with severe kidney disease, agreed to pay a total of $63.7 million to resolve False Claims Act allegations relating to improper billing practices and unlawful financial inducements to federal healthcare program beneficiaries, the Justice Department announced today. DaVita Rx is based in Coppell, Texas.
The settlement resolves allegations that DaVita Rx billed federal healthcare programs for prescription medications that were never shipped, that were shipped but subsequently returned, and that did not comply with requirements for documentation of proof of delivery, refill requests, or patient consent. In addition, the settlement also resolves allegations that DaVita paid financial inducements to Federal healthcare program beneficiaries in violation of the Anti-Kickback Statute. Specifically, DaVita Rx allegedly accepted manufacturer copayment discount cards in lieu of collecting copayments from Medicare beneficiaries, routinely wrote off unpaid beneficiary debt, and extended discounts to beneficiaries who paid for their medications by credit card. These allegations relating to improper billing and unlawful financial inducements were the subject of self-disclosures by DaVita Rx and a subsequently filed whistleblower lawsuit.
“Improper billing practices and unlawful financial inducements to health program beneficiaries can drive up our nation’s health care costs,” said Civil Division Acting Assistant Attorney General Chad Readler. “The settlement announced today reflects not only our commitment to protect the integrity of the healthcare system, but also our willingness to work with providers who review their own practices and make appropriate self-disclosures.”
DaVita Rx has agreed to pay a total of $63.7 million to resolve the allegations in its self-disclosures and the whistleblower lawsuit. DaVita Rx repaid approximately $22.2 million to federal healthcare programs following its self-disclosure and will pay an additional $38.3 million to the United States as part of the settlement agreement. In addition, $3.2 million has been allocated to cover Medicaid program claims by states that elect to participate in the settlement. The Medicaid program is jointly funded by the federal and state governments.
“Providers should not make patient care decisions based upon improper financial incentives or encourage their patients to do the same,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas. “The U.S. Attorney’s Office has and will continue to work cooperatively with providers that bring such issues to light to redress the losses the federal healthcare system has incurred.”
“The conduct being resolved in this matter presents serious program integrity concerns” said CJ Porter, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services, “DaVita Rx’s cooperation in the investigation of this matter was necessary and appropriate to reach this resolution.”
The lawsuit resolved by the settlement was filed by two former DaVita Rx employees, Patsy Gallian and Monique Jones, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they discover evidence that defendants have submitted false claims for government funds and to receive a share of any recovery. The case is captioned United States ex rel. Gallian v. DaVita Rx, LLC, No. 3:16-cv-0943-B (N.D. Tex.). The relators will receive roughly $2.1 million from the federal recovery.
The settlement of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477). HHS also offers several programs for health care providers to self-report potential fraud. More information on self-disclosure processes can be found on the HHS-OIG website.
The investigation was conducted by HHS-OIG, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Texas. The claims asserted by the government are allegations only and there has been no determination of liability.
Connecticut man indicted for distributing heroinRead the Press Release
A federal grand jury returned a one-count indictment charging Reynaldo Diaz-Guzman, 25, of Hartford, Conn., with possession with the intent to distribute heroin, said U.S. Attorney Justin E. Herdman, United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about November 14, 2017, Diaz-Guzman possessed with the intent to distribute more than 1,000 grams of heroin.
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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Ohio State Highway Patrol and the Drug Enforcement Administration. The matter is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
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.
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Colorado Stock Transfer Agent and California Securities Attorney Charged with Conspiracy to Unlawfully Sell Unregistered SecuritiesRead the Press Release
A Colorado registered stock transfer agent and a California securities attorney were charged with conspiracy to unlawfully sell unregistered securities in connection with a scheme to fraudulently register shell companies with the U.S. Securities and Exchange Commission (SEC), issue a class of free-trading shares in the companies that the conspirators secretly controlled, and sell the shares to the investing public at a profit. To date, twelve defendants have been charged in connection with the Shell Factory Fraud investigation.
Randy A. Hummel, Executive Assistant United States Attorney, U.S. Attorney’s Office for the Southern District of Florida, Andrew W. Vale, Assistant Director in Charge, Federal Bureau of Investigation (FBI), Washington Field Office, and Robert F. Lasky, Special Agent in Charge, FBI Miami Field Office, made the announcement.
John Ahearn, 56, of Erie, Colorado and formerly of Miller Place, New York, and Andrew H. Wilson, 69, of Nevada City, California, were charged by criminal information with one count of conspiracy to unlawfully sell unregistered securities, in violation of Title 15, United States Code, Sections 77e(a)(1), 77e(a)(2), and 77x, and Title 17, Code of Federal Regulations, Section 230.144, all in violation of 18 U.S.C. § 371, in Case No. 17-20883-CR-KMW. The case is assigned to U.S. District Judge Kathleen M. Williams in Miami. Each defendant faces a maximum statutory sentence of five years in prison and a fine up to $250,000 or double the proceeds of the offense.
Ten defendants were previously charged in connection with the Shell Factory Fraud investigation: James Schneider, Case No. 17-20712-CR-FAM; Myron Gushlak and Yelena Furman, Case No. 17-20713-CMA; David Lubin, Case No. 17-20508-CR-MGC; Sheldon Rose and Ian Kass, Case No. 16-20706-CR-JEM; Steven Sanders and Alvin Mirman, Case No. 16-20572-CR-CMA; and Daniel McKelvey and Jeffrey Lamson, Case No. 16-20546-CR-RNS.
According to court documents, from early 2007 through at least 2014, Sanders, McKelvey, Lubin and other conspirators would fraudulently create public companies, known as issuers, by filing documents with the SEC that falsely described the the companies and their share ownership. These documents would indicate that the companies were controlled by a nominee, or straw chief executive officer (CEO). The straw CEO would be listed as the owner of the control block, or restricted shares, but in reality the companies were controlled by the principals. The principals would also create documents with the names of various shareholders for each company, to make it appear that these shares were owned by persons unaffiliated with the company. These shares would later be classified as unrestricted or “free trading.” Thereafter, the principals would sell the companies to criminal actors who would secretly obtain the control shares and the purported “free trading” shares, without disclosure to the SEC or the investing public. This would allow the buyers to engage in stock manipulation schemes using the purported “free trading” shares. According to the information, Ahearn and Wilson, both securities industry professionals, joined in the conspiracy in order to unlawfully obtain fees and future business from the issuers.
According to the information, Ahearn was the owner of Manhattan Transfer Registrar Co. (“Manhattan Transfer”), a stock transfer agent with offices in New York and Colorado. Ahearn specialized in penny stock transfer services, and was responsible for keeping track of the status of shares (restricted or free trading) as well as share ownership. Ahearn and Manhattan Transfer became the stock transfer agent for Entertainment Art, Inc. (“EERT”) in 2008, and became aware that the shares were listed in the names of straw shareholders but were in fact controlled by the principals. During the conspiracy, according to the information, Ahearn agreed to assist Sanders, McKelvey and Lubin with transferring the shares of issuers they controlled, knowing that these shares were unlawfully classified as unrestricted. By 2012, EERT was secretly controlled by Myron Gushlak, who was serving a federal prison sentence for a separate pump and dump scheme. In approximately October 2012, Ahearn assisted with the unlawful transfer of the EERT shares to certain shell buyers, who changed the name to Biozoom, Inc. (“BIZM”) and, in May 2013, used the BIZM shares for a massive pump and dump stock swindle. Ahearn assisted Sanders and McKelvey with stock transfer services with other issuers as well, for shares that Ahearn knew were secretly controlled by Sanders and McKelvey but were listed in the names of various nominee shareholders.
Wilson, according to the information, was an attorney licensed to practice law in California who authored false and fraudulent legal opinion letters for EERT, as well as certain other issuers at the request of Sanders and McKelvey. These letters falsely stated that shares of the companies were owned by persons who were not “affiliates,” and were used by persons who acquired the shares to deposit them with brokers and unlawfully them to the investing public. In reality, Wilson took his direction from Sanders and McKelvey, whom Wilson came to learn secretly controlled the companies. In certain instances, Wilson performed so-called escrow services for the sale of shares, knowing that these share sales were part of the unlawful sale of all or nearly all of the shares of the companies but without the required disclosure to the SEC and the investing public. The actions of Ahearn and Wilson, along with their conspirators, allowed the shares of the companies to be utilized for pump and dump stock swindles or other manipulation schemes.
Mr. Hummel commended the investigative efforts and coordination of the FBI’s Washington Field Office and Miami Field Office. Mr. Hummel also thanked the SEC’s Miami Regional Office and Washington Home Office for their assistance. The SEC previously filed parallel civil enforcement actions against McKelvey, Sanders, Mirman, Rose, Kass, Lubin, Schneider, Lamson and Wilson. This matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An criminal information merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Cleveland men indicted for carjacking and attempted armed robbery of Willoughby credit unionRead the Press Release
Two Cleveland men were indicted for their crimes related to a carjacking and attempted armed robbery of a credit union in October, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Arvis Williams, Jr., 22, and Melvin R. Hill, 21, are charged with attempted armed credit union robbery and use of a firearm in furtherance of a crime of violence. Williams was also charged with carjacking and use of a firearm in furtherance of a crime of violence.
Williams and Hill used a firearm in an effort to rob the Willoughby Eastlake Schools Credit Union on Second Street in Willoughby on Oct. 11, 2017. On the same day, Williams used a firearm to carjack at 2015 Chevy Cruze, according to the indictment.
Each charge of use of a firearm in furtherance of a crime of violence carries a minimum consecutive term of five years in prison if a firearm was possessed, seven years in prison if a firearm was brandished, and a consecutive 25 years in prison for each subsequent conviction.
If convicted, a 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.
The case is being prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the FBI Cleveland Violent Crimes Task Force and the Willoughby Police Department.
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.
Clay Center Man Sentenced for Loan FraudRead the Press Release
WICHITA, KAN. – A Clay Center man was sentenced Thursday to two years on supervised release for selling assets he had pledged as collateral on a federal loan, U.S. Attorney Tom Beall said today. The defendant was ordered to pay approximately $84,594 in restitution.
Harold R. Mugler, 64, Clay Center, Kan., pleaded guilty to one count of criminal conversion. In his plea, he admitted that in 2009 in received a $100,000 loan through the U.S. Department of Agriculture’s Farm Service Agency. Over the following years, he sold off various pieces of farm machinery that he had pledged as collateral on the loan. He was behind on his loan payments in 2015 when the government learned of the sales.
Beall commended the USDA-OIG and Assistant U.S. Attorney Aaron Smith for their work on the case.
Charleston man sentenced to 13 years in federal prison for methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to 13 years in federal prison for a drug crime, announced United States Attorney Carol Casto. In September 2017, Brian D. Terry, 32, was found guilty by a federal jury sitting in Charleston following his trial for possession with intent to distribute 50 grams or more of methamphetamine.
Witnesses for the United States testified that on April 20, 2016, Terry was the passenger in a vehicle that was stopped for speeding by officers with the Metropolitan Drug Enforcement Network Team. The traffic stop took place in the St. Albans area, on MacCorkle Avenue close to Oliver Street. During the traffic stop, Terry consented to a search, and officers discovered approximately 195 grams of crystal methamphetamine in his groin area. A chemist with U.S. Customs and Border Protection testified at trial that the methamphetamine found on Terry was approximately 99% pure.
Officers arrested Terry and read him his Miranda rights. Subsequently, during the transport of Terry to South Central Regional Jail, he shared details of his drug trafficking activity with an officer, including the quantity of methamphetamine he sold and the price he charged. Both the traffic stop and the transport to the jail were recorded.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorneys Joshua Hanks and Clint Carte are in charge of the prosecution and tried the case before a federal jury. United States District Judge Joseph R. Goodwin imposed the sentence and presided over the trial.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Canadian Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John Lambert, 65, of Canada, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine, was sentenced to 63 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that in 2013, co-defendant Harvey Peake recruited Lambert to assist in transporting illegal narcotics. On October 3, 2016, Peake and Lambert traveled to the Seneca Buffalo Creek Casino in downtown Buffalo to deliver 10 kilograms of cocaine. The two men met briefly with a third individual in the casino and then walked towards the parking garage where Peake’s vehicle was parked. Lambert got into the driver’s seat and tapped the brake lights to signal their location to the third individual. Peake then opened the trunk and removed a suitcase. The third individual pulled up next to the vehicle and Peake attempted to give the suitcase to the individual. Peake and Lambert were then arrested. Law enforcement officers seized the suitcase, which contained approximately 10 kilograms of cocaine.
Harvey Peake has been convicted and its awaiting sentencing.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
California Man Sentenced to Life in Prison for Large-Scale PCP ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a California man was sentenced in federal court today for his role in a conspiracy to distribute large quantities of PCP in the Kansas City area.
Ladronal S. Hamilton, also known as “Black,” 46, of Hawthorne, Calif., was sentenced by U.S. District Judge Gary A. Fenner to life in federal prison without parole.
On May 18, 2017, Hamilton was found guilty at trial of participating in a conspiracy to distribute PCP in Jackson County, Mo., and elsewhere from Jan. 1, 2011, to March 12, 2015. Evidence introduced during the trial indicated that Hamilton supplied numerous associates in Kansas City with kilogram quantities of PCP, which was transported from California through the mail.
Hamilton was the organizer and supplier to large-scale Kansas City PCP distributors, each of whom has been convicted and sentenced in federal court. He organized and arranged the cross-country shipment of numerous multi-kilogram containers of PCP from California.
According to trial testimony, investigators made three seizures of PCP from Hamilton in 2014 that totaled approximately 14 kilograms. In addition, the testimony of cooperating witnesses established that Hamilton distributed additional amounts in excess of 37 kilograms of PCP. Hamilton also possessed firearms in relation to drug trafficking during the timeframe of the conspiracy. One investigator testified that he recovered cocaine and three firearms from Hamilton’s California residence.
A cooperating witness testified at trial that Hamilton used various houses in Kansas City, including his father’s house, as a safe location to receive and re-package large amounts of PCP.
In seeking the life sentence for Hamilton, the government’s court filings refer to the serious nature of the crime and to Hamilton’s extensive prior criminal record, which includes felony convictions for armed bank robbery, second-degree murder, first-degree assault, armed criminal action and possession with intent to distribute a controlled substance. A career offender for violent crimes and narcotic offenses, Hamilton’s s interstate distribution of large quantities of PCP began within three years of his release from federal prison for armed bank robbery as a result of his second revocation from supervised release.
Today’s sentence includes an enhancement for obstruction of justice. Trial testimony from at least two cooperating witnesses support the claim that Hamilton attempted to dissuade or intimidate a witness from testifying against him. One cooperating witness specifically recalled Hamilton stating that he wanted a government witness dead.
Operation Dirty Glass
Operation Dirty Glass was an investigation of a large-scale PCP and crack cocaine drug trafficking organization. More than 20 defendants were indicted and convicted as a result of the investigation, including the primary target, Gerald W. Jones of Kansas City, Mo., who received PCP from Hamilton. In a separate but related, case, Jones was convicted and sentenced to 20 years in federal prison without parole.
Investigators seized a total of approximately 14 kilograms of PCP in a series of Express Mail shipments made by Hamilton to Kansas City, Mo. On Oct. 17, 2014, a postal inspector identified an Express Mail package that had been sent by Hamilton from the La Tiejera, Calif., post office to a Kansas City, Mo., address. The parcel contained three metal canisters, each of which contained approximately two kilograms of PCP. On Nov. 10, 2014, a postal inspector identified two more Express Mail packages that had been sent by Hamilton from California to Kansas City, Mo., addresses. Inside each package, investigators found a metal canister containing approximately two kilograms of PCP.
Hamilton made frequent trips to the Kansas City area. Prior to the discovery of the PCP shipments, the U.S. Postal Inspection Service interdicted two Express Mail envelopes on Oct. 16, 2013, that Hamilton, while visiting Kansas City, had sent back to California. One envelope contained $4,000 and the other contained $7,000, of drug proceeds.
Operation Water Park
Hamilton was also implicated in a separate investigation, Operation Water Park, which resulted in the indictment and convictions of 11 defendants. In early 2015, Hamilton began supplying PCP to Leelon Williams of Kansas City, Mo. Williams pleaded guilty to conspiracy to distribute PCP and was sentenced to 20 years in federal prison without parole.
Williams was arrested on March 12, 2015, when Kansas City, Mo., police officers were dispatched to the area of 26th Street and College to investigate a shooting. Williams was found hiding inside his van, which was parked in an alleyway near the scene of the shooting. (Williams was not involved in the shooting.) Investigators searched the van and found two glass orange juice bottles that contained a total of approximately 1.2 kilograms of PCP, which Hamilton had shipped to Williams from California.
This case was prosecuted by Assistant U.S. Attorneys Brent Venneman and Emily A. Morgan. It was investigated by the Kansas City, Mo., Police Department, the U.S. Postal Inspection Service and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Calaveras County Man Indicted for Trafficking Methamphetamine in Shasta CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Glenn Everett Waltman, 56, of Valley Springs, charging him with possessing methamphetamine and marijuana with intent to distribute, and possessing a firearm as a felon, United States Attorney Phillip A. Talbert announced.
According to court documents, on November 28, 2017, law enforcement officers stopped the vehicle Waltman was driving and found approximately 1.5 pounds of crystal methamphetamine, 13 pounds of marijuana, and a loaded .40 caliber pistol. As a previously convicted felon, Waltman is prohibited from possessing a firearm.
This case is the product of an investigation by the Shasta Interagency Narcotics Task Force, the Anderson Police Department, and the U.S. Drug Enforcement Administration.
If convicted of the methamphetamine charge, Waltman faces a mandatory minimum penalty of 20 years in prison, and a maximum penalty of life in prison and a $20 million fine. If convicted of the marijuana or firearms charges, Waltman faces a maximum penalty of 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. These charges are only allegations; the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Buffalo Man Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Jose Dejesus, 35, of Buffalo, NY, who was convicted of possession with intent to distribute heroin and being a felon-in-possession of ammunition, was sentenced to 46 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Paul C. Parisi, who handled the case, stated that on November 10, 2016, Buffalo Police officers executed a search warrant at 224 Virginia Street. After entering the residence, officers found the defendant in the rear bedroom. Officers recovered 16 envelopes containing heroin, 17 pieces of paper containing cocaine, and a plastic bag of marijuana. Officers also found a digital scale and packaging materials in the rear bedroom as well as a 12-gauge shotgun and ammunition. Dejesus was convicted in state court of a felony in 2003 and is prohibited from legally possessing ammunition.
The sentencing is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Buffalo Man Sentenced in Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy announced today that Orlando Rios, 45, of Buffalo, NY, was sentenced to 188 months in prison for his role in a conspiracy to possess with intent to distribute, and distribution of 100 grams or more of heroin before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carried a maximum penalty of 40 years in prison, and a $5,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between March 2014 and June 2015, the defendant conspired with Daniel Molina-Rios, Jose Andujar, Luis Montanez, and others to distribute heroin on the West Side of Buffalo. Rios managed a wide-scale drug trafficking organization and supervised several street-level dealers who used a series of cellular telephones to conduct daily sales with customers seeking to buy heroin or illegal use.
During the conspiracy, the defendant made at least six trips to the New York City area to purchase large quantities of heroin from a source of supply, purchasing at least 300 grams of heroin on each trip. In addition, during the time period of the conspiracy, the Buffalo Police Department and New York State Police conducted 66 undercover heroin purchases from individuals subordinate to the defendant in the organization.
Rios exercised decision making authority over participants in the drug trafficking conspiracy, including at least 10 drug “runners” who were responsible for coordinating sales for incoming customers who contacted the drug trafficking organization on a “runner” phone each day. The defendant also maintained a premise at 42 Potomac Avenue in Buffalo for distributing the heroin that was sold. A search of the residence on June 18, 2015, revealed a digital scale, glassine bags, rubber bands, two cellular telephones, $4510.00 in U.S. currency, and a Colt .380 pistol loaded with four live automatic rounds in the magazine.
A total of 14 defendants have been indicted in connection with this case, and Rios is the ninth to be sentenced.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Brockton Man Charged with Multiple Counts of Fentanyl DistributionRead the Press Release
BOSTON – A Brockton man was charged today in a superseding indictment with additional counts of distributing fentanyl.
Dany Brandao, 30, was charged with three additional counts of possession with intent to distribute and distribution of fentanyl. Brandao was initially indicted in February 2017 with one count of possession with intent to distribute and distribution of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl.
According to court documents, on Oct. 7, 2016; Oct. 11, 2016; Oct. 25, 2016; and Nov. 1, 2016, investigators made a series of undercover controlled purchases of fentanyl from Brandao, and on Nov. 8, 2016, law enforcement executed a search warrant of Brandao’s home. The controlled purchases and search resulted in the seizure of more than 180 grams of fentanyl from Brandao.
As a result of the superseding indictment and a prior narcotics conviction, Brandao faces a mandatory minimum sentence of 10 years and up to life in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michal J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts States Police; Brockton Police Chief John Crowley; East Bridgewater Police Chief Scott Allen; and Marshfield Police Chief Phil Tavares made the announcement today. Assistant U.S. Attorneys Ann Taylor and Leah Foley of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Pleads Guilty to Cocaine DistributionRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in federal court in Boston to selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.
Dominique Dozier, 31, pleaded guilty to two counts of distribution of cocaine base within 1,000 feet of a school. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 14, 2018.
On July 13, 2016, Dozier sold cocaine base to a cooperating witness near a K-8 Pilot School in Roxbury. Dozier is one of 12 defendants arrested and charged in June 2017 following a nearly two-year investigation into the high concentration of crime in and around the Orchard Gardens Development, the largest publically funded housing development in Roxbury, which is also adjacent to a K-8 Pilot School and Dudley Square. According to court documents, the crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers, who allegedly have active feuds with rival gangs throughout the city.
The charge of distribution of a controlled substance within 1,000 feet of a school provides for a mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of up to $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement.
Birmingham Man Gets 20 Years in Prison for Selling Heroin that Killed Cullman Man, Injured AnotherRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to 20 years in prison for selling heroin last year that caused the death of one person and seriously injured another, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
MICHAEL DEWAYNE “Big Boi” JOHNSON, 32, pled guilty in August to one count of distributing heroin in Jefferson County on July 28, 2016, and that a 31-year-old Cullman man died as a result of using that heroin. Johnson also pled guilty to distributing heroin the same day that caused serious bodily injury to a then 18-year-old Cullman man who overdosed from using the drug.
When Johnson distributed the heroin to the victims, he told them, “Be careful, this (expletive deleted) will kill you,” according to court records.
Johnson also pled guilty to one count of distributing heroin in Jefferson County on Aug. 3, 2016. U.S. District Court Judge Madeline Hughes Haikala sentenced Johnson to 20 years in prison on all the charges, in accordance with the binding plea agreement he reached with the government.
“This strong sentence cannot remove the victims’ suffering,” Town said. “But it sends a strong message to every drug dealer that they will be severely punished for the lethal harm their drugs do to others.”
“The abuse of heroin is a serious problem in our communities. All too often, this abuse leads to addiction, shattered lives, and even death,” Hamilton said. “The lengthy sentencing for this individual is a message to criminals that we take drug trafficking very seriously in the Northern District of Alabama. The DEA will continue working with our law enforcement partners and pursue those who threaten our communities with the distribution of heroin and other illegal and dangerous drugs.”
DEA investigated the case, which the U.S. Attorney’s Office for the Northern District of Alabama is prosecuting.
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Another Firearms Smuggler Heads to PrisonRead the Press Release
LAREDO, Texas – A Laredoan has been ordered to prison following his convictions for his role in smuggling firearms into Mexico, announced Acting U.S. Attorney Abe Martinez. Ruben Arnoldo Madrid, 21, pleaded guilty June 2, 2017.
Today, U.S. District Judge Diana Saldaña sentenced Madrid to a term of 51 months in federal prison to be immediately followed by three years of supervised release.
Madrid participated in a scheme to purchase civilian variants of firearms currently issued to military forces from various local firearms dealers. Between March 2016 and November 2016, Ruben Madrid’s brother, Juan Diego Madrid, 27, of Laredo, directed several individuals including Rolando Armando Madrid, 21, (Ruben’s twin brother), Edward Alexander Duenas, 20, and Francisco Xavier Martinez, 25, all of Laredo, to purchase the firearms. The firearms were then transferred to Erik Villasana, 20, also of Laredo, who arranged for the firearms to be smuggled into Mexico. Ruben and Rolando Madrid initiated the scheme, after which their older brother, Juan, took over the operation. The court noted that Ruben Madrid personally purchased nine firearms out of 36 firearms identified by law enforcement as sold during the operation. Three of the 36 firearms have since been recovered in Mexico.
The straw purchasers bought AR-15 and AK-47-type semiautomatic rifles, Beretta 92FS and DPMS AR-type rifles from Academy and Kirkpatrick Guns & Ammo stores in Laredo and San Antonio. Juan Madrid would then purchase the firearms from the straw purchasers and then re-sell them at a profit to Villasana who would then arrange for the firearms to be smuggled into Mexico. Juan Madrid was already a convicted felon and thereby prohibited from purchasing, owning or possessing firearms.
On Nov. 16, 2017, U.S. District Judge Diana Saldaña sentenced Juan Madrid to a term of 65 months in federal prison, while Rolando Madrid, Villasana, Duenas and Martinez received respective sentences of 51, 63, 27 and 41 months in prison.
Ruben Madrid was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney (AUSA) Homero Ramirez and Special AUSA Lisa Ezra prosecuted the case.
Albuquerque Man Pleads Guilty to Brandishing Short-Barreled Shotgun During Armed Robbery of Convenience StoreRead the Press Release
ALBUQUERQUE – William L. Thrash, 51, of Albuquerque, N.M., pled guilty in federal court yesterday to violating the federal firearms laws by brandishing a short-barreled shotgun during the armed robbery of an Albuquerque-area convenience store in March 2017. The guilty plea was entered under a plea agreement that recommends that Thrash be sentenced to 12 years of imprisonment followed by a term of supervised release to be determined by the court.
Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Thrash in Sept. 2017, on a criminal complaint. The criminal complaint charged Thrash with him with violating the Hobbs Act by robbing two businesses engaged in interstate commerce at gunpoint, brandishing a firearm during crimes of violence, and being a felon in possession of a firearm. According to the criminal complaint, Thrash committed one of the Hobbs Act robberies on March 14, 2017 by robbing an Albuquerque-area convenience store on March 14, 2017, and the second robbery on April 15, 2017, by robbing a medical marijuana dispensary located in Bernalillo County, N.M. According to the criminal complaint, Thrash during each of the two robberies.
On April 19, 2017, officers of the Albuquerque Police Department (APD) arrested Thrash on state charges, which have since been dismissed in favor of federal prosecution, while executing a state search warrant at a hotel room in which Thrash was residing. During the search, the officers seized a firearm and ammunition. At the time, Thrash was prohibited from possessing firearms or ammunition because he previously had been convicted on numerous felony offenses, including being a felon in possession of a firearm, auto burglary, escape, child abuse or abandonment, battery on a peace officer, and possession of a deadly weapon or an explosive by a prisoner.
During yesterday’s change of plea hearing, Thrash pled guilty to a felony information charging him with using and brandishing a firearm during a crime of violence. In entering the guilty plea, Thrash admitted brandishing a short-barreled shotgun at store employees when he robbed an Albuquerque-area convenience store on March 14, 2017.
Thrash has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney George C. Kraehe is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Alaska Pilot Charged with Obstruction of the NTSBRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a federal grand jury in Anchorage has returned an indictment charging Forest M. Kirst, 60, of Fairbanks, Alaska, with two counts of obstruction before the National Transportation Safety Board (NTSB) and piloting an aircraft without a valid airman’s certificate.
According to Assistant U.S. Attorney Retta Randall, on Aug. 24, 2014, an aircraft piloted by Kirst was involved in an accident near Atigun Pass, Alaska. Three passengers aboard the aircraft sustained serious injuries, and 35 days later, one of the passengers died as a result of his injuries. The accident was investigated by the NTSB and by the Federal Aviation Administration (FAA). Kirst is charged with misleading the NTSB about the altitude of his plane prior to the crash and misleading the NTSB with varying explanations as to how the crash occurred.
Subsequently, Kirst’s Airman Pilot Certificate was revoked on an emergency basis by the FAA. Kirst was later observed to be flying his aircraft.
If convicted, Kirst faces a maximum sentence of five years in prison, and a $250,000 fine, or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Department of Transportation, Office of Inspector General, conducted the investigation leading to the indictment in the case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Akron man indicted for selling fentanylRead the Press Release
An Akron man was indicted for selling fentanyl, law enforcement officials said.
LeTroy Vaughn, 26, was indicted on one count of distribution of fentanyl. Vaughn sold the fentanyl on Sept. 27, 2015, according to the indictment.
The investigation is ongoing.
“This defendant will be held accountable for his sale of fentanyl, which has killed so many of our friends and neighbors here in Ohio,” Herdman said. “Law enforcement will continue to work together to investigate this case and hold drug dealers accountable for their actions.”
“This shows the great collaboration between the County Prosecutor’s Office and the U.S. Attorney’s Office,” said Summit County Prosecutor Sherri Bevan Walsh. “We are relieved for the victim’s family that this offender will not escape justice on a legal technicality. I would personally like to thank Justin Herdman, the U.S. Attorney for the Northern District of Ohio, for ensuring justice for Eric Ward’s family.”
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 violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S. Attorney Teresa Riley following an investigation by the Akron Police Department’s Narcotics Unit.
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.
2017 Southeast Regional Animal Cruelty Prosecutions Training Held at Valdosta State UniversityRead the Press Release
The United States Attorney’s Office for the Middle District of Georgia, the Environmental Crimes Section of the United States Department of Justice’s Environment and Natural Resources Division, and the United States Department of Agriculture – Office of Inspector General hosted training for the Southeast region on animal cruelty prosecutions, Dec. 13-14.
This training represents the collaboration and coordination of federal and local agencies and offices to combat crimes of animal cruelty, including organized dog fighting, cock fighting, and horse soring. The conference provided participants with an overview of the federal animal welfare and cruelty statutes, investigation techniques, and strategies to overcome prosecution challenges. The Humane Society of the United States, along with prosecutors and federal agents, shared their experience in handling dog fighting and animal cruelty cases strengthening the response to these serious crimes.
“Fighting contests involving dogs and other animals are morally wrong and illegal, said United States Attorney Charles E. Peeler.” They also create havens for additional illegal conduct such as gambling, drug trade and unlawful gun possession. Our office works with federal, state and local law enforcement agencies to identify and prosecute those involved in this reprehensible conduct.”
“Ending animal fighting ventures and other inhumane practices will require a close partnership among federal, state, and local law enforcement agencies,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “Our Division is proud to be a leader in this worthy cause and to participate in this important training event in the wonderful city of Valdosta, Georgia.”
“The USDA OIG is pleased to have worked closely with the Department of Justice to coordinate this important training initiative to combat animal fighting and the associated crimes which often occur in animal fighting ventures,” said Special Agent in Charge Karen Citizen-Wilcox for the USDA OIG Southeast Region Office of Investigations. “Special Agents from all of the OIG’s regional offices will share their knowledge of and experiences with animal fighting investigations with personnel attending from other law enforcement agencies and private organizations.”
During the training, animal fighting investigators from the Humane Society of the United States, along with prosecutors and USDA OIG agents who have successfully investigated and prosecuted animal fighting cases, shared their experiences with attendees. Instructors provided participants with an overview of the business of dog fighting, a description of federal animal welfare and cruelty statutes, effective investigative techniques, evidence collection best practices, available resources and authorities for the seizure and post-seizure care of animals and successful sentencing strategies.
State and national animal control associations estimate that upwards of 40,000 people participate in dog fighting in the United States at a professional level, meaning that dog fighting and its associated gambling are their primary or only source of income. An unknown but potentially larger number of people participate in dog fighting on an occasional basis. Cockfighting is thought to be similarly widespread. In addition, animal fighting activities attract other serious crimes, such as gambling, drug dealing, weapons offenses and money laundering. Children are commonly present at animal fighting events.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to knowingly sell, buy, possess, train, transport, deliver, or receive any animal, including dogs, for purposes of having the animal participate in an animal fighting venture. In 2014, the Department of Justice designated the Environment and Natural Resources Division as the centralized body within the Department responsible for tracking, coordinating, and working with the U.S. Attorneys’ Offices on animal cruelty enforcement matters.
Wednesday 13 December 2017
Young Melph Mafia Gang Member Sentenced to Life in Prison Plus 35 Years Following Convictions on Rico, Gun and Murder ChargesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that LIONEL ALLEN, a/k/a “Lot,” age 23, of New Orleans, was sentenced today after having previously been found guilty of violating the Racketeer Influenced Corrupt Organization Act “RICO” as well as firearms conspiracy, and murder charges. U.S. District Judge Kurt D. Engelhardt sentenced ALLEN to serve life in prison plus 420 months (35 years) with said sentences to run consecutive. Additionally, ALLEN was ordered to pay $2,000 in special assessment costs.
In June of 2017, LIONEL ALLEN, DEDRICK KEELEN, JAWAN FORTIA, BRYAN SCOTT and DELWIN MCLAREN were convicted following a 7-day trial. According to evidence presented at trial, ALLEN was a leader of the “Young Melph Mafia” gang, also referred to as “YMM.” The YMM gang was initially formed in or about 2005 and continued to exist through 2014. During the course of the federal investigation into the gang, agents learned that the defendants controlled an area of Central City New Orleans along Martin Luther King Boulevard near the former Melpomene Housing Development. The gang, which started when the members were in their early teens, participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court in 2014. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
The jury found ALLEN guilty of conspiracy to possess firearms during and in relation to crimes of violence and drug trafficking crimes, assault with a dangerous weapon, and three murders. Specifically, ALLEN was convicted of participating in the shooting death of Vennie Smith on April 22, 2012, the shooting and killing Deshawn Hartford on June 3, 2012, and for being an aider and abettor in the shooting death of Travis Thomas that occurred on the I-10 on May 6, 2013.
ALLEN was one of eleven defendants originally charged in August of 2014 in a superseding indictment involving gun and drug conspiracies. Five YMM defendants pled guilty to the conspiracy charges and were sentenced. JACOBI “CO” BOYD was sentenced to 480 months of incarceration; ALFRED “AL” COBBINS was sentenced to 252 months of incarceration; SHAWN “GUNNER” GRACIN was sentenced to 270 months of incarceration; RUBEN “RUE” GEIGER was sentenced to 220 months of incarceration; DARIUS “D-MAN” WILLIAMS was sentenced to 156 months of incarceration; and DEONTRE “SOULJA” HILLS was sentenced to 96 months of incarceration. In August of 2015, federal RICO and murder charges were added against the remaining defendants in a second superseding indictment. JEFFREY WILSON pled guilty to only drug charges and was sentenced to 180 months of incarceration. DEDRICK KEELEN was sentenced to life plus 10 years after being convicted of multiple murder counts at trial, JAWAN FORTIA was also sentenced to life in prison for participating in the RICO, gun and drug conspiracies, DELWIN McLAREN was sentenced to 16 years of incarceration for his participation in the same drug and gun conspiracies, and BRYAN SCOTT received 20 years in prison for his role in the gun and drug conspiracies.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Edward Rivera, Nolan Paige, and Nicholas Moses were in charge of the prosecution.
Woman Sentenced and Denaturalized for Obtaining U.S. Citizenship by Lying to OfficialsRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Munia Parvin, a/k/a Zarrin Hoque (46, Sarasota), to 6 months in federal prison for obtaining U.S. citizenship through false and misleading representations to U.S. immigration authorities. She pleaded guilty on September 26, 2017. The Court also entered an order denaturalizing Parvin and stripping her of her United States citizenship; she is now subject to deportation to Bangladesh.
According to her plea agreement and evidence presented in court, Parvin first applied for asylum protection to remain in the United States in 1993, claiming that she had entered the United States from Bangladesh and feared persecution and arrest if she returned there. In November 1996, the INS rejected her application and ordered her to appear before an immigration judge for possible deportation proceedings. In December 1997, the immigration court allowed Parvin to depart from the United States by a set date and when she failed to do so, entered a warrant for her arrest and removal from the country.
While her case was still pending before the immigration court, Parvin assumed the new identity of Zarrin Hoque and filed for legal protection and permanent resident status in the United States using this new name and a different set of biographical data. In 2012, she applied for U.S. citizenship and ultimately became a U.S. citizen on June 4, 2012. In her paperwork and application for citizenship, Hoque denied the use of prior names, denied having been subject to an order of deportation, and denied lying to immigration authorities. Photographic and fingerprint evidence later established that Hoque and Parvin were the same person and that Parvin had lied on several parts of her citizenship application.
“When individuals lie on immigration documents, the system is severely undermined and the security of our nation is put at risk,” said HSI Tampa Special Agent in Charge James C. Spero. “Working with our USCIS partners, HSI special agents will continue to protect our immigration systems.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with the assistance from U.S. Citizenship and Immigration Services. This investigation was a part of “Operation Second Look,” a nationwide initiative of the Department of Homeland Security to review the files of hundreds of persons who have been ordered deported from the United States but have not left the country as directed. The Parvin case is one of four similar investigations initiated in the Tampa Bay area. The cases are being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Wise County Woman Sentenced to Prison for Making False StatementsRead the Press Release
Abingdon, VIRGINIA – A Wise County woman, who was previously convicted of making false statements in a matter within the jurisdiction of the federal government, namely an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, was sentenced yesterday in the United States District Court for the Western District in Abingdon, United States Attorney Rick A. Mountcastle announced.
Tina Sartin, 38, was sentenced yesterday to 18 months in prison. She previously pleaded guilty to one count of making false statements in a matter within the jurisdiction of the federal government, namely an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to evidence presented at the sentencing and guilty plea hearings by Assistant United States Attorney Zachary T. Lee, Sartin provided false information to agents with the ATF in connection to an investigation involving Michael Todd Lintz, the City of Norton’s former Parks & Recreation Maintenance Supervisor, who was previously convicted of civil rights and perjury violations. Sartin provided the agents with fabricated text messages and falsely stated that she had been threatened in connection with her cooperation with the ATF.
The investigation of the case was conducted by the Southwest Virginia Drug Task Force, the Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.