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Tuesday 12 December 2017
Decatur Doctor Sentenced for Illegal Distribution of HydrocodoneRead the Press Release
URBANA, Ill. – A doctor who operated a walk-in clinic in Decatur, Ill., Sukhwinder Multani, has been ordered to serve 14 months in federal prison for illegal distribution of hydrocodone, a controlled substance. In addition, Multani, 43, of the 3700 block of N. Ashley Court, was prohibited from working in the medical field during his incarceration period and the three years of supervised release to follow his release from prison. The federal Bureau of Prisons will provide Multani, who remains released on bond, the date and location to report to begin serving his prison sentence.
According to court documents, Multani operated his clinic, known as Universal Urgent Care, at 3767 E. US Route 36, also in Decatur. Multani advertised that his clinic was “open seven days a week,” and charges “$40 per visit.”
On Nov. 14, 2016, Multani admitted that on three occasions in 2014, he dispensed hydrocodone, a controlled substance, outside the course of professional medical practice and not for any legitimate medical purpose. At the time he committed the offenses, Multani was an authorized Drug Enforcement Administration registrant, engaged in private practice.
According to public records of the Illinois Department of Financial and Professional Regulation, Division of Professional Regulation, Multani’s medical licenses were ordered suspended in 2014.
Assistant U.S. Attorney Jason M. Bohm represented the government in the prosecution of Multani. The U.S. Drug Enforcement Administration conducted the investigation of the charges.
Dallas Resident Pleads Guilty to a Scheme to Defraud the IRSRead the Press Release
DALLAS — Jose Dominguez Berroa, aka “Ana Maria Rodriguez,” “Martha Vargas,” and “Michelle Dominguez,” of Dallas, appeared in federal court this morning and pleaded guilty before U.S. Magistrate Judge David L. Horan to one count of wire fraud, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Berroa faces a maximum penalty of twenty years in federal prison, and a $250,000 fine. The defendant could also be ordered to pay restitution. Berroa will remain on bond pending sentencing, which is set for April 4, 2018.
Co-defendant Rufus Kimangi Kariuki is scheduled to begin trial on April 23, 2018.
According to the plea agreement factual resume, from February 2012 through December 2012, Berroa and others opened several bank accounts in and around Dallas using false alias names and fraudulent passports. During this time Berroa and others filed approximately 18 fraudulent tax returns and obtained fraudulent refunds totaling at least $314,932 from the IRS.
After the fraudulent tax refunds were deposited into the bank accounts, according to the factual resume, Berroa used debit cards to purchase money orders at local stores and would give the blank money orders to Kariuki. Kariuki then distributed blank money orders to Berroa and to others who participated in the scheme.
The case was investigated by the Internal Revenue Service. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Cuch Pleads Guilty to Assault on a Federal Officer and Possession of a Firearm Following a Felony ConvictionRead the Press Release
SALT LAKE CITY -- Jarvis Charlie Cuch, age 28, of Ft. Duchesne, pleaded guilty to assault on a federal officer and possession of a firearm after a felony conviction in U.S. District Court Monday afternoon. The plea agreement includes a stipulated 12-year sentence, subject to the Court’s approval.
As a part of stipulated facts included in the plea agreement, Cuch agreed that on Dec. 18, 2016, Bureau of Indian Affairs (BIA) police officers working in Ft. Duchesne attempted to initiate a traffic stop on a vehicle he was driving. Cuch fled from the BIA officers. As the officers continued their pursuit, Cuch admitted he reached out of the vehicle window and fired two rounds from a .40 caliber semi-automatic pistol, according to the plea agreement.
The pursuit went from Ft. Duchesne through Vernal City. Vernal City police officers and Uintah County Sheriff’s Office deputies assisted the BIA in apprehending Cuch after his tires were spiked and his car came to a stop in Vernal.
He admitted that he forcibly assaulted, resisted, intimidated, and interfered with the BIA officers while they were engaged in the performance of their official duties. He also admitted that in discharging the firearm during the incident, he violated a federal law related to using a firearm during and in relation to a crime of violence.
Cuch, a convicted felon, was prohibited under federal law from possessing a firearm.
The plea agreement also includes a stipulation that Cuch will serve 60 months of supervised release when he finishes his prison sentence. U.S. District Judge Dale A. Kimball set a sentencing hearing for Feb. 20, 2018, at 2:30 p.m.
Cuch was on escape status with federal authorities when the December 2016 incident with the BIA officers occurred. U.S. District Judge Tena Campbell sentenced Cuch to 30 months in federal prison in August 2015 for a firearms violation. The sentence was to be followed by 36 months of supervised release. The U.S. Bureau of Prisons transferred Cuch to a halfway house in Salt Lake City on Aug. 31, 2016, pending his release on Jan. 27, 2017. Cuch was placed on escape status on Sept. 26, 2016, when he left the halfway house without permission.
Special agents of the FBI investigated the case. Assistant U.S. Attorneys Isaac Workman and Michael Thorpe in the U.S. Attorney’s Office prosecuted the case. Federal prosecutors acknowledged the important contributions of Vernal police officers and Uintah County Sheriff’s Office deputies for their assistance in stopping Cuch’s car and assisting with his arrest after his assault on the federal officers.
Couple sentenced to federal prison for drug distribution conspiracy involving mail theftRead the Press Release
CHARLESTON, W.Va. – A couple who conspired to steal oxycodone and hydrocodone from packages mailed from the Department of Veterans Affairs to veterans and then sold the pills from the stolen packages was sentenced to federal prison today, announced United States Attorney Carol Casto. Amber Fox, 28, of Lesage in Cabell County, was sentenced to two and a half years in prison after previously pleading guilty to mail theft. David Grove, Jr., 39, of Chillicothe, Ohio, was sentenced to two years in prison after previously pleading guilty to conspiracy to distribute pain pills. Both Fox and Grove were also ordered to pay $453.80 in restitution.
Fox was a federal postal support employee who worked in the Charleston Processing and Distribution Center. She used her job to steal pain pills by identifying packages that contained oxycodone and hydrocodone, specifically packages from the VA to veterans who were prescribed pain medication. Fox admitted that on March 17, 2015, she stole a package that contained 112 hydrocodone pills mailed from the VA to a veteran living in Raleigh County. After stealing the packages, Fox took the pills to the home that she shared with Grove in East Bank in Kanawha County. Together, they took some of the pills themselves and sold the remaining pills. Fox admitted to stealing between 45 and 50 postal packages containing thousands of oxycodone and hydrocodone pills from August 2014 to April 9, 2015. On April 9, 2015, law enforcement executed search warrants at the East Bank residence and located over 500 stolen oxycodone and hydrocodone pills. Both Fox and Grove gave statements admitting their involvement in the mail theft and drug distribution conspiracy. Fox is no longer an employee with the United States Postal Service.
The United States Postal Service, Office of Inspector General, and the Metropolitan Drug Enforcement Network Team conducted the investigation, with assistance from the United States Department of Veterans Affairs. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentences.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Coordinated Federal and State Law Enforcement Operation Results in the Arrest of More Than 35 Bakersfield Gang Members and AssociatesRead the Press Release
BAKERSFIELD, Calif. — Today, the Federal Bureau of Investigation, the Bakersfield Police Department, the United States Attorney’s Office, the California Department of Justice, the California Highway Patrol, and the Kern County District Attorney’s Office announced the result of a multi-agency operation in Bakersfield that resulted in the arrest of more than 35 members and associates of the West Side Crips (WSC), a local criminal street gang on federal and state charges including burglary, illegal gun possession, drug sales, and murder. State and federal law enforcement teams also executed more than 30 residential search warrants.
The arrests are a result of a 10-month investigation that began in March 2017. Federal agents drafted a 200-page affidavit in support of federal complaints and search warrants that details several WSC members’ alleged crimes. The alleged crimes presented in the federal and state cases include weapons violations, unlawful possession of a firearm, assault with a deadly weapon, robbery, money laundering, methamphetamine sales, crack cocaine sales, opiate sales, attempted murder and murder. The affidavit also details WSC members’ plan to shoot into a crowd of approximately 200 people, including rival gang members, at a local park in early October 2017. Their plan was thwarted by law enforcement as a result of this investigation. A listing of the individuals arrested and the specific charges they face is attached to this release. The charges brought today are allegations — all defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Attorney Talbert stated: “This operation is another example of how my office has worked closely with our state, local and federal law enforcement partners to combat violent criminal street gangs and their associates. As part of our Project Safe Neighborhood initiative, we are committed to collaborating with these partners to hold accountable those who make our communities unsafe.”
Bakersfield Police Chief Lyle Martin stated, “This gang has victimized our city through a system of murder and intimidation. We are using the resources of our city, county, state and federal authorities to stop senseless acts of gun violence that are traumatizing and killing our city’s children. This is the enforcement piece to the department’s community-wide approach to addressing gang violence. “
“Violent gangs threaten the safety and well-being of entire communities, blighting the neighborhoods they dwell in and placing lives of innocent bystanders at risk, “ said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to working with our law enforcement partners to identify, disrupt, and dismantle gangs to protect the public. We also rely on our community relationships in the effort to remove violent gangs from neighborhoods to ensure our region and families have an opportunity to thrive.”
“My office remains dedicated to working with all law enforcement agencies to successfully solve and prosecute the perpetrators of these violent crimes, “ said Kern County District Attorney Lisa Green.
"This violent gang has killed innocent people and escalated violence in our Bakersfield neighborhoods. Today's successful takedown shows that when local, state and federal law enforcement authorities work together to combat violence, we can improve our communities. We are committed to making our neighborhoods safer by prosecuting street gangs to the fullest extent of the law," said California Attorney General Xavier Becerra.
This case is the product of an investigation by the Federal Bureau of Investigation, California Department of Justice, California Highway Patrol, Bakersfield Police Department, and Kern County District Attorney’s Office. Assistant United States Attorneys Angela Scott and Vincenza Rabenn are prosecuting the case.
More than 300 law enforcement personnel from over 20 law enforcement agencies participated in today’s operation. In addition to the investigating agencies the following agencies participated in today’s arrests and searches: Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Marshals Service, U.S. National Guard, California Department of Corrections and Rehabilitation, California Department of Justice Bureau of Firearms, Fresno Methamphetamine Task Force (FMTF), Merced Area Gang Narcotic Enforcement Team (MAGNET), Madera Narcotic Enforcement Team (MADNET), Tulare Area Regional Gang Enforcement Team (TARGET), Kern County Probation Department, Kern County Sheriff’s Department, Kings County Sheriff’s Office, Tulare County Sheriff’s Office, and Coalinga Police Department.
Federal defendants are as follows and are all residents of Bakersfield:
Tommie Thomas, 35, distribution of methamphetamine; William Thomas, 35, distribution of crack cocaine; Danny Willis, 33, felon in possession of a firearm; Gary Pierson, 36, felon in possession of a firearm; Ladaireus Jones, 24, felon in possession of a firearm; Bernard Warren, 18, felon in possession of a firearm; Manuel Cruz III, 37, conspiracy to possess with intent to distribute marijuana; Luis Fernandez, 26, distribution of methamphetamine; Myron Dewberry, 44, felon in possession of a firearm; and Bryshanique Allen, 21, money laundering.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Coordinated Federal and State Law Enforcement Operation Results in the Arrest of More Than 35 Bakersfield Gang Members and AssociatesRead the Press Release
BAKERSFIELD, Calif. — Today, the Federal Bureau of Investigation, the Bakersfield Police Department, the United States Attorney’s Office, the California Department of Justice, the California Highway Patrol, and the Kern County District Attorney’s Office announced the result of a multi-agency operation in Bakersfield that resulted in the arrest of more than 35 members and associates of the West Side Crips (WSC), a local criminal street gang on federal and state charges including burglary, illegal gun possession, drug sales, and murder. State and federal law enforcement teams also executed more than 30 residential search warrants.
The arrests are a result of a 10-month investigation that began in March 2017. Federal agents drafted a 200-page affidavit in support of federal complaints and search warrants that details several WSC members’ alleged crimes. The alleged crimes presented in the federal and state cases include weapons violations, unlawful possession of a firearm, assault with a deadly weapon, robbery, money laundering, methamphetamine sales, crack cocaine sales, opiate sales, attempted murder and murder. The affidavit also details WSC members’ plan to shoot into a crowd of approximately 200 people, including rival gang members, at a local park in early October 2017. Their plan was thwarted by law enforcement as a result of this investigation. A listing of the individuals arrested and the specific charges they face is attached to this release. The charges brought today are allegations — all defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
U.S. Attorney Talbert stated: “This operation is another example of how my office has worked closely with our state, local and federal law enforcement partners to combat violent criminal street gangs and their associates. As part of our Project Safe Neighborhood initiative, we are committed to collaborating with these partners to hold accountable those who make our communities unsafe.”
Bakersfield Police Chief Lyle Martin stated, “This gang has victimized our city through a system of murder and intimidation. We are using the resources of our city, county, state and federal authorities to stop senseless acts of gun violence that are traumatizing and killing our city’s children. This is the enforcement piece to the department’s community-wide approach to addressing gang violence. “
“Violent gangs threaten the safety and well-being of entire communities, blighting the neighborhoods they dwell in and placing lives of innocent bystanders at risk, “ said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to working with our law enforcement partners to identify, disrupt, and dismantle gangs to protect the public. We also rely on our community relationships in the effort to remove violent gangs from neighborhoods to ensure our region and families have an opportunity to thrive.”
“My office remains dedicated to working with all law enforcement agencies to successfully solve and prosecute the perpetrators of these violent crimes, “ said Kern County District Attorney Lisa Green.
"This violent gang has killed innocent people and escalated violence in our Bakersfield neighborhoods. Today's successful takedown shows that when local, state and federal law enforcement authorities work together to combat violence, we can improve our communities. We are committed to making our neighborhoods safer by prosecuting street gangs to the fullest extent of the law," said California Attorney General Xavier Becerra.
This case is the product of an investigation by the Federal Bureau of Investigation, California Department of Justice, California Highway Patrol, Bakersfield Police Department, and Kern County District Attorney’s Office. Assistant United States Attorneys Angela Scott and Vincenza Rabenn are prosecuting the case.
More than 300 law enforcement personnel from over 20 law enforcement agencies participated in today’s operation. In addition to the investigating agencies the following agencies participated in today’s arrests and searches: Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), United States Marshals Service, U.S. National Guard, California Department of Corrections and Rehabilitation, California Department of Justice Bureau of Firearms, Fresno Methamphetamine Task Force (FMTF), Merced Area Gang Narcotic Enforcement Team (MAGNET), Madera Narcotic Enforcement Team (MADNET), Tulare Area Regional Gang Enforcement Team (TARGET), Kern County Probation Department, Kern County Sheriff’s Department, Kings County Sheriff’s Office, Tulare County Sheriff’s Office, and Coalinga Police Department.
Federal defendants are as follows and are all residents of Bakersfield:
Tommie Thomas, 35, distribution of methamphetamine; William Thomas, 35, distribution of crack cocaine; Danny Willis, 33, felon in possession of a firearm; Gary Pierson, 36, felon in possession of a firearm; Ladaireus Jones, 24, felon in possession of a firearm; Bernard Warren, 18, felon in possession of a firearm; Manuel Cruz III, 37, conspiracy to possess with intent to distribute marijuana; Luis Fernandez, 26, distribution of methamphetamine; Myron Dewberry, 44, felon in possession of a firearm; and Bryshanique Allen, 21, money laundering.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Colorado Home Healthcare Business Owner Pleads Guilty to Tax EvasionRead the Press Release
A Brighton and Denver, Colorado, business owner pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Bob Troyer for the District of Colorado.
According to documents and information provided to the court, Michelle Medina, 51, owned and operated RHHS Inc., also doing business as Reliable Home Health Services Inc., which provided home healthcare services. From 2008 through 2011, Medina concealed hundreds of thousands of dollars in personal income by having RHHS Inc. directly pay her personal expenses and by withdrawing cash from the company’s bank accounts for personal use. Medina did not inform her tax return preparer of this additional income and filed false individual income tax returns underreporting her income. Medina also failed to file 2008 through 2011 corporate income tax returns for RHHS. She admitted her actions caused a total tax loss of between $550,000 and $1.5 million.
U.S. District Court Judge Philip A. Brimmer scheduled sentencing for March 13, 2018. Medina faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Troyer commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Kathleen M. Barry and Benjamin J. Weir of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Chicago Investment Manager Indicted on Federal Fraud Charges for Allegedly Swindling $10 Million from Clients and LendersRead the Press Release
CHICAGO — A Chicago investment manager has been indicted for allegedly swindling more than $10 million from clients and lenders.
SHAWN BALDWIN, who owned and controlled various investment-related firms in Chicago, exaggerated his financial success and professional connections to fraudulently obtain more than $10 million from at least 17 investors and lenders, according to an indictment returned in federal court in Chicago. Baldwin falsely claimed that their funds would be invested in stocks and other investment products, when, in fact, Baldwin spent the money for his own personal benefit, the indictment states. The fraud scheme alleged in the indictment began in 2006 and continued until May of this year.
The indictment was returned on Dec. 7, 2017, and ordered unsealed on Monday. It charges Baldwin, 51, of Olympia Fields, with eight counts of wire fraud. Baldwin pleaded not guilty at a Monday arraignment in federal court in Chicago. A status hearing is set for Dec. 28, 2017, at 1:00 p.m., before U.S. District Judge John Robert Blakey.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
According to the indictment, Baldwin obtained funds from individual investors, as well as from corporate lenders who lent him money for use in business and personal dealings. Baldwin claimed that compliance officers and professional advisors were affiliated with his firms, when, in fact, no such relationships existed, the indictment states. Baldwin also deceived the investors and lenders by misrepresenting and minimizing the serious disciplinary actions taken against him by regulators, the indictment states. The regulatory actions included the revocation of his certifications with the Financial Industry Regulatory Authority in 2009, and a permanent prohibition from offering securities sales or investment advice, which the State of Illinois imposed in 2013.
Baldwin attempted to conceal the scheme by furnishing victims with fraudulent account statements that misrepresented the value of their funds, the indictment states. Baldwin also lulled his victims by falsely maintaining that he was working on lucrative business deals and developing new contacts that would lead to profits from initial public stock offerings, the indictment states. In reality, Baldwin knew he could not pay back investors because he had lost or spent their money, the charges allege.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Matthew Getter.
Ceremonial Administration of the Oath of Office for United States Attorney R. Trent ShoresRead the Press Release
TULSA, Okla.— Chief Judge Gregory K. Frizzell will administer the ceremonial oath of office to United States Attorney R. Trent Shores on Friday, December 15, 2017, at 2:00 p.m.
WHO:
United States Attorney R. Trent ShoresWHAT:
Ceremonial Administration of the Oath of Office to United States Attorney R. Trent ShoresWHEN:
2:00 p.m. CST
4th Floor, Ceremonial Courtroom
Page Belcher Courthouse 333 West 4th Street
Tulsa, Oklahoma 74103NOTE: Government-issued photo I.D. (such as a driver’s license) necessary for admission to the courthouse. Point of Contact is Anna Montgomery at (918) 382-2784
Caldwell Woman Pleads Guilty to Obtaining Controlled Substances by FraudRead the Press Release
BOISE – Carrie Lynn Johnson, 42, pleaded guilty yesterday to obtaining controlled substances by fraud, U.S. Attorney Bart M. Davis announced. A Boise federal grand jury indicted Johnson on September 14, 2017.
According to the plea agreement, Johnson worked as a medical assistant in a medical office from approximately January to December, 2016. While she was employed at the medical office, she took possession of, and filled out, blank prescriptions from two practitioners. Using the stolen prescriptions, she not only forged prescriptions to herself but also used her spouse’s name, her children’s names, and others. Johnson took the prescriptions to pharmacies in Canyon County and filled them for herself. The forged prescriptions were mainly for Schedule II controlled substances. For example, on May 23, 2016, Johnson filled a forged prescription for 150 tablets of oxycodone 30 mg and on January 11, 2017, she filled a forged prescription for 150 tablets of hydrocodone/APAP 10/325 mg. Johnson later worked at another medical office in Payette, Idaho, where she called-in an unauthorized prescription.
The charge of obtaining controlled substances by fraud is punishable by up to four years in prison, a maximum fine of $250,000, and up to one year of supervised release.
Sentencing is set for February 28, 2017, in front of Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Nampa Police Department with assistance from the Drug Enforcement Administration.
Burleson Man Sentenced to 12 Years in Federal Prison for Attempting to Meet a 13-Year-Old for Sex at a Fort Worth HotelRead the Press Release
FORT WORTH, Texas — Preston Anthony King, 23, of Burleson, Texas, was sentenced today by Senior U.S. District Judge Terry R. Means to 12 years in federal prison and 20 years of supervised release. The sentence follows King’s guilty plea in August 2017 to one count of enticement of a minor, announced Erin Nealy Cox, U.S. Attorney for the Northern District of Texas.
King has been in custody since November 2016 on a related complaint.
According to documents filed in the case, on March 14, 2016, a Fort Worth Police Officer acting in an undercover capacity and posing as a 13-year-old girl responded to an advertisement that King posted on Craigslist. The description of the advertisement indicated that King was looking to engage in sexual intercourse. During the conversation, the officer told King that she was 13 years old, and later in the conversation King told the officer that he wanted to engage in sexual intercourse with her. King agreed to meet, who he thought was a 13-year-old girl, on March 15, 2016, at a hotel room in Fort Worth, Texas, to engage in sexual intercourse. When King arrived at the agreed location the Fort Worth Police Department took King into custody.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Fort Worth Police Department investigated the case. Assistant U.S. Attorney Megan Fahey is in charge of the prosecution.
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Brooklyn Man Sentenced for Intending to Sell Crack in North CountryRead the Press Release
ALBANY, NEW YORK – Tyleek Deramus, age 19, of Brooklyn, New York, was sentenced yesterday to 27 months in prison for possessing crack cocaine with the intent to distribute it.
The announcement was made by Acting United States Attorney Grant C. Jaquith, U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division and New York State Police Superintendent George P. Beach II.
As part of his guilty plea, Deramus admitted that on October 13, 2016, he transported approximately 47 grams of crack cocaine from New York City to Plattsburgh, New York, intending to sell the crack cocaine in the Witherbee, New York, area.
Senior United States District Judge Thomas J. McAvoy also imposed a 3-year term of supervised release, to begin after Deramus is released from prison.
This case was investigated by the DEA and New York State Police, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Bristol Man Sentenced to 10 Years in Federal Prison for Distributing FentanylRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JARED McBRIARTY, 32, of Bristol, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 120 months of imprisonment, followed by five years of supervised release, for distributing fentanyl and other controlled substances.
According to court documents and statements made in court, in late December 2015, the DEA’s Hartford Task Force and New Britain Police Department received information that Kyle Petersen, of New Britain, was selling fentanyl powder, prescription pills and marijuana. DEA Task Force Officers and the New Britain Police Department Special Services Unit initiated an investigation and made multiple controlled purchases of fentanyl from Petersen. The investigation, which included court-authorized wiretaps, revealed that John Casadei, of Morris, used the darknet, an internet network that can only be accessed through the use of specific software or authorizations, to purchase large quantities of fentanyl that were shipped from China. Casadei also obtained and distributed various prescription pills, including Xanax and oxycodone. Casadei then supplied fentanyl and various prescription pills to McBRIARTY who, in turn, supplied them to Petersen. Petersen distributed the drugs to other individuals who sold them throughout central Connecticut.
McBRIARTY, Petersen, Casadei and other individuals involved in this narcotics distribution ring were arrested on May 19, 2016. On that date, law enforcement searched a New Britain residence that Petersen used as a stash location and seized approximately $740,000 in cash, approximately 3.2 kilograms of MDMA (commonly known as “ecstasy”), and more than 40,000 Xanax pills. A search of Petersen’s residence revealed additional quantities of narcotics and more than $11,000 in cash. Law enforcement subsequently seized approximately $80,000 from Petersen’s bank account.
On April 18, 2017, McBRIARTY pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 400 grams or more of fentanyl.
Petersen and Casadei pleaded guilty to related charges. On July 19, Petersen was sentenced to 120 months of imprisonment. Casadei awaits sentencing.
McBRIARTY, who is released on a $250,000 bond, was ordered to report to prison on January 23, 2018.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office; the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments, and the Food and Drug Administration. Agencies assisting the investigation include the U.S. Marshals Service, U.S. Postal Inspection Service, Homeland Security Investigations, New Britain State’s Attorney’s Office and Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney S. Dave Vatti.
Brazilian National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Brazilian national pleaded guilty today in federal court in Boston to a federal immigration crime.
Josilei DeCastro, a/k/a Marcos Santos, a/k/a Marcos Augusto Dos Santos, 37, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Feb. 27, 2018.
In May 2016, DeCastro was arrested and charged in state court with multiple counts of sexual assault on a nine-year-old child. In July 2016, DeCastro was indicted on those charges, and his case is scheduled for trial in January 2018.
On Dec. 9, 2016, while held on the aforementioned state charges, DeCastro was encountered by law enforcement officers at the Middlesex House of Corrections and determined to be illegally present in the United States. DeCastro was previously deported on July 17, 2000.
DeCastro faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000 and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Birch Tree Man Indicted for Stealing Timber from National ForestRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Birch Tree, Mo., man was indicted by a federal grand jury today for stealing timber from a national forest.
John R. Marlow, 46, of Birch Tree, was charged in a three-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Marlow stole government property worth more than $1,000 between Jan. 1, 2016, and March 20, 2017. Marlow allegedly stole timber from federal property in Oregon County, Mo.
Marlow is also charged with one count of cutting and removing timber from public lands and one count of maintaining a trail without authorization within the Mark Twain National Forest.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the U.S. Forest Service, the Oregon County, Mo., Sheriff’s Department and the Alton, Mo., Police Department.
Beckley man admits role in federal drug conspiracyRead the Press Release
BLUEFIELD, W.Va. – A Beckley man pleaded guilty today for his role in a drug trafficking conspiracy, announced United States Attorney Carol Casto. Dominic J. Copney, 24, entered his guilty plea to conspiracy to distribute and to possess with intent to distribute more than 500 grams of cocaine and more than 100 grams of heroin. Copney is one of 23 defendants indicted in June 2017 after a long-term investigation of drug trafficking in Southern West Virginia.
Copney admitted that between October 2016 and June 28, 2017, he took part in a drug trafficking conspiracy with multiple participants that was responsible for distributing controlled substances in and around Raleigh County. During the course of the conspiracy, Copney also admitted to collecting money from other members of the drug trafficking organization that had been obtained from selling and distributing illegal controlled substances. Copney admitted that throughout the conspiracy, he distributed approximately three kilograms of cocaine and over 100 grams of heroin.
Copney faces at least five and up to 40 years in federal prison when he is sentenced on April 17, 2018.
Other individuals implicated as a result of this drug investigation have entered guilty pleas and are awaiting sentencing. Cheyenne Fragale and Macon Fragale, two brothers from Boomer in Fayette County, previously pleaded guilty to conspiracy to distribute and to possess with intent to distribute more than 500 grams of methamphetamine, a quantity of oxycodone, and a quantity of heroin. The both face a mandatory minimum of 10 years and up to life in federal prison when they are sentenced on March 14, 2018.
This prosecution was made possible through the cooperative efforts of several investigating agencies. The investigation was led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service provided assistance throughout the investigation. Assistant United States Attorney Timothy D. Boggess is in charge of these prosecutions. The plea hearing was held before Senior United States District Judge David A. Faber.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. 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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Bar Owner Sentenced to 42 Months in PrisonRead the Press Release
Michael Hoffner, Sr., 52, of Voorhees, New Jersey, was sentenced today to 42 months in prison for wire fraud, announced United States Attorney Louis D. Lappen. The Honorable Mitchell S. Goldberg also imposed a three year term of supervised release and ordered the defendant to pay $87,060 in restitution and to forfeit $82,643 in proceeds.
According to the superseding indictment Hoffner owned the Brown Street Pub in Philadelphia, Pennsylvania. At his guilty plea hearing on July 31, 2017, Hoffner admitted that on 40 occasions between September and December 2012, Hoffner used a stolen credit number to make charges at the pub to credit and debit cards issued by American Express, Navy Federal Credit Union, USAA, ACNB, and the State Employees Credit Union of Maryland. The average fraudulent charge was more than $2,000. The cardholders were not aware of and did not authorize these transactions. The proceeds of these transactions, more than $87,000, went into an account that Hoffner controlled.
The case was investigated by the Federal Deposit Insurance Corporation Office of Inspector General, the Internal Revenue Service-Criminal Investigation Division, and the United States Secret Service, and is being prosecuted by Assistant United States Attorneys David J. Ignall and Christopher J. Mannion.
Aurora Man Sentenced to Two Years in Federal Prison for Operating Illegal Steroid Lab out of His HomeRead the Press Release
CHICAGO — An Aurora man has been sentenced to two years in federal prison for manufacturing illegal steroids and distributing them to dozens of customers.
CHRISTOPHER C. HICKSON, 25, used bulk powders he had imported from China to manufacture anabolic steroid pills. Hickson operated a makeshift laboratory in his Aurora residence and distributed the pills to more than 100 customers in the United States and Canada.
The case against Hickson was part of “Operation Cyber Juice,” a federal investigation that targeted the illegal importation of steroids purchased overseas and manufactured in the United States.
Hickson previously pleaded guilty to one count of drug conspiracy and one count of money laundering. In addition to the 24-month prison term, U.S. District Judge Andrea R. Wood on Monday ordered Hickson to pay a $100,000 personal money judgment.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
In October 2013, U.S. Customs and Border Protection agents intercepted a Chinese parcel addressed to Hickson’s residence. A laboratory analysis determined that the parcel contained approximately 436 grams of the powder Stanozolol, a steroid classified as a Schedule III controlled substance. A court-authorized search of Hickson’s home in November 2014 revealed steroid powder, more than 1,000 vials filled with liquid steroids, and hundreds of steroid pills and capsules. Hickson labeled his steroid brand “Rift Labs” and “truelab.”
The government is represented by Assistant U.S. Attorney Kartik K. Raman.
Atlanta Woman Is Handed Down Six-Month Sentence for Lying to Federal JudgeRead the Press Release
CHARLOTTE, N.C. – Tonya Leshun Hall, 43, of Atlanta, Georgia, was sentenced to six months in prison yesterday for lying in federal court, following her guilty plea to a criminal contempt charge, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney presided over the case.
According to court documents, Hall testified in August 2016 during a pair of hearings in a civil lawsuit between plaintiff Antonio Stukes and defendant Debra Antney filed in U.S. District Court. Stukes was shot in a shoot-out along Independence Boulevard in February 2011 by members of a security detail working for rapper Waka Flocka Flame, whose given name is Juaquin Malphurs. In connection with the civil suit, Stukes sought to enforce a judgment for compensatory and punitive damages obtained against Antney, who is Waka Flocka’s mother, and various business entities allegedly under Antney’s control.
Court documents show that Hall testified on Antney’s behalf during the hearings on August 25 and August 30, 2016. During those hearings, Hall opined that, based on her review of Antney’s finances, Antney had “no money” to satisfy the judgment entered against her in the civil suit. In support of her opinion, Hall represented she had graduated from Emory University with a degree in accounting and was licensed as a certified public accountant in Georgia.
In yesterday’s hearing in federal court, Hall admitted that her claims about her credentials were not true. Hall did not graduate from Emory and was never licensed as a CPA. During the sentencing hearing, Judge Whitney explained that Hall’s lies “misled” the court in its assessment of Antney's ability to satisfy the judgment in the civil suit. In announcing Hall’s sentence, Judge Whitney highlighted the “need to promote respect for the law” and the importance of truthfulness in the justice system.
Hall pleaded guilty to one count of criminal contempt. She will be ordered to report to the Federal Bureau of Prisons to begin serving her sentence, upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The criminal contempt case was prosecuted by the U.S. Attorney’s Office in Charlotte.
Akayed Ullah Charged with Terrorism and Explosives Charges in Connection with the Detonation of a Bomb in New York CityRead the Press Release
Akayed Ullah, 27, of Brooklyn, New York, and a lawful permanent resident from Bangladesh, has been charged in the U.S. District Court for the Southern District of New York in connection with Ullah’s attempted detonation of a bomb in a subway terminal near the New York Port Authority Bus Terminal in New York City on Dec. 11. At least three people were injured as a result of the detonation.
Attorney General Jeff Sessions, Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Joon H. Kim for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr., of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD made the announcement. Ullah will be presented before the Honorable Katharine H. Parker.
"The Department of Justice is relentless in taking on the terrorist threat," said Attorney General Sessions. "In my time back at the Department, nothing has impressed me more. Since 9/11, the Department has convicted more than 500 criminals of terrorism-related offenses, and the FBI has open terrorism investigations in every state. To make law enforcement’s job easier, however, Congress must finally fix our broken immigration system so that we admit to this country those who are likely to succeed, not violent criminals, gang members, terrorists, or their sympathizers. The fact that somebody won a lottery or is someone’s relative tells us nothing about their ability to assimilate. Nevertheless, the Department of Justice will prosecute this case and every other case to the fullest extent of the law, and we will bring those who threaten America to justice."
“Yesterday, in the heart of rush hour, as thousands came into New York City through the Port Authority Bus Terminal, Akayed Ullah allegedly came with a hate-filled heart and an evil purpose: to murder as many innocent people as he could and blow himself up in the process, all in support of the vicious terrorist cause of ISIS,” said Acting U.S. Attorney Kim. “Although yesterday he allegedly stood in the tunnels under Port Authority plotting to kill, today he stands charged with federal crimes of terrorism. Those alleged terrorists who target New York City do so because they feel threatened by the strength of our spirit, the height of our ambition and the breadth of our freedom. They come seeking to sow hate, fear and terror. But in New York City, they find instead strength, resilience and hope. Like many before him, Akayed Ullah will also find another great American virtue: justice. That justice will be tough, it will be fair and it will be swift.”
“Akayed Ullah let loose his plan to conduct a mass casualty attack, setting off a pipe bomb, strapped to his body, inside a New York City subway terminal, as we allege today,” said Assistant Director in Charge Sweeney. Like many others before him, we believe Ullah was inspired by a group that exploits technology in an effort to spread a violent ideology, effectively convincing sympathizers to commit terrorist acts worldwide. The nature of this particular strain of the terrorism threat can often mean evaluating behavior that doesn’t mean anything until you combine it with other pieces of intelligence. We rely heavily upon the community’s assistance to accomplish that task.”
“The act of terror committed in New York City yesterday accomplished nothing,” said Commissioner O’Neill. “It has not changed our way of life. It was a cowardly act, fueled by a false sense of purpose — motivated by propaganda in the shadows of the internet. What is clear is the resolve of New Yorkers to live in a free society, devoid of fear. I want to commend the work of the NYPD-FBI Joint Terrorism Task Force and the prosecutors in the Southern District for bringing today’s charges. Finally, our security requires every single member of the public’s help. It requires their vigilance. And it requires their care. If you see something that doesn’t look right, contact law enforcement.”
As alleged in the Complaint:
Islamic State of Iraq and Al-Sham (ISIS)
ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide. ISIS has pursued the objective of an Islamic state through, among other things, killing and deliberate targeting of civilians, mass executions, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape, and other forms of sexual violence. ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria, and other locations in Africa and the Middle East, and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts.
The Dec. 11, Attack
On Dec. 11, at approximately 7:20 a.m., an improvised explosive device (IED) detonated inside a subway terminal (the Subway Terminal) in or around the New York Port Authority Bus Terminal located at West 42nd Street and Eighth Avenue in New York, New York (the December 11 Attack). Shortly after the blast, members of the Port Authority of New York and New Jersey Police Department located an individual later identified as Akayed Ullah lying on the ground in the vicinity of the explosion. Surveillance footage captured Ullah walking through the Subway Terminal immediately prior to the explosion, and then falling to the ground after the explosion.
Ullah was subsequently taken into custody by law enforcement. During the course of Ullah’s arrest, law enforcement officers located on his person and in the surrounding area what appeared to be the components of an exploded pipe bomb (the Pipe Bomb). Specifically, law enforcement located, among other items, (i) a nine-volt battery inside Ullah’s pants pocket; (ii) wires connected to the battery and running underneath Ullah’s jacket; (iii) two plastic zip ties underneath Ullah’s jacket; (iv) several fragments of a metal pipe, including pieces of a metal end cap, on the ground; (v) the remnants of what appeared to be a Christmas tree lightbulb attached to wires; and (vi) pieces of what appear to be plastic zip-ties, among other items.
After Ullah was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights. During that interview, Ullah stated, among other things, the following:
- Ullah constructed the Pipe Bomb and carried out the Dec. 11 Attack. Ullah was inspired by ISIS to carry out the Dec. 11 Attack, and stated, among other things, “I did it for the Islamic State.”
- Ullah constructed the Pipe Bomb at his residence in Brooklyn (the Residence);
- The Pipe Bomb was comprised of a metal pipe, which Ullah filled with explosive material that he created. Ullah used Christmas tree lights, wires, and a nine-volt battery as a trigger to detonate the Pipe Bomb. Ullah filled the Pipe Bomb with metal screws, which he believed would cause maximum damage. Ullah used zip ties to secure the Pipe Bomb to his body.
- Ullah carried out the Dec. 11 Attack in part because of the United States Government’s policies in, among other places, the Middle East. One of Ullah’s goals in carrying out the Dec. 11 Attack was to terrorize as many people as possible. He chose to carry out the attack on a work day because he believed that there would be more people.
- Ullah’s radicalization began in at least approximately 2014. Ullah viewed pro-ISIS materials online, including a video instructing, in substance, that if supporters of ISIS were unable to travel overseas to join ISIS, they should carry out attacks in their homelands. He began researching how to build IEDs on the Internet approximately one year ago.
- On the morning of Dec. 11, shortly before carrying out the attack, Ullah posted a statement on his Facebook account referring to the President of the U.S., stating, in substance, “Trump you failed to protect your nation.” Ullah also posted a statement that he believed would be understood by members and supporters of ISIS to convey that Ullah carried out the attack in the name of ISIS.
Items Recovered from Ullah’s Residence
On Dec. 11, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant. Law enforcement agents recovered, among other items, (i) multiple pieces of metal pipes; (ii) pieces of wire and fragments of what appear to be Christmas tree lights; (iii) multiple screws consistent with the screws recovered at the scene of the December 11 Attack; and (iv) a passport in Ullah’s name with multiple handwritten notations, including: “O AMERICA, DIE IN YOUR RAGE.”
Three individuals were injured as a result of the Dec. 11 Attack.
* * *
Ullah is charged in a Complaint with one count of provision of material support and resources to a designated foreign terrorist organization which carries a maximum sentence of 20 years’ imprisonment; one count of using and attempting to use a weapon of mass destruction which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use which carries a maximum sentence of life imprisonment; one count of destruction of property by means of fire or explosives, which carries a mandatory minimum sentence of five years’ imprisonment and a potential maximum sentence of 20 years’ imprisonment; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of a weapon of mass destruction which carries a mandatory minimum consecutive sentence of 30 years’ imprisonment and potential maximum of life, all in connection with Ullah’s alleged detonation of an explosive device in New York City.
Mr. Sessions, Mr. Boente and Mr. Kim praised the outstanding investigative efforts of the FBI; the NYPD; the Department of Homeland Security, Homeland Security Investigations (HSI); and the Port Authority of New York and New Jersey’s Police Department. Ullah’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, HSI and other agencies – and the U.S. Department of Justice’s National Security Division.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The prosecution is being handled by Assistant U.S. Attorneys Shawn G. Crowley, Rebekah Donaleski and George D. Turner of the Southern District of New York, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division.
Akayed Ullah Charged with Terrorism and Explosives Charges in Connection with the Detonation of a Bomb in New York CityRead the Press Release
Akayed Ullah, 27, of Brooklyn, New York, and a lawful permanent resident from Bangladesh, has been charged in the U.S. District Court for the Southern District of New York in connection with Ullah’s attempted detonation of a bomb in a subway terminal near the New York Port Authority Bus Terminal in New York City on Dec. 11. At least three people were injured as a result of the detonation.
Attorney General Jeff Sessions, Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Joon H. Kim for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr., of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD made the announcement. Ullah will be presented before the Honorable Katharine H. Parker.
"The Department of Justice is relentless in taking on the terrorist threat," said Attorney General Sessions. "In my time back at the Department, nothing has impressed me more. Since 9/11, the Department has convicted more than 500 criminals of terrorism-related offenses, and the FBI has open terrorism investigations in every state. To make law enforcement’s job easier, however, Congress must finally fix our broken immigration system so that we admit to this country those who are likely to succeed, not violent criminals, gang members, terrorists, or their sympathizers. The fact that somebody won a lottery or is someone’s relative tells us nothing about their ability to assimilate. Nevertheless, the Department of Justice will prosecute this case and every other case to the fullest extent of the law, and we will bring those who threaten America to justice."
“Yesterday, in the heart of rush hour, as thousands came into New York City through the Port Authority Bus Terminal, Akayed Ullah allegedly came with a hate-filled heart and an evil purpose: to murder as many innocent people as he could and blow himself up in the process, all in support of the vicious terrorist cause of ISIS,” said Acting U.S. Attorney Kim. “Although yesterday he allegedly stood in the tunnels under Port Authority plotting to kill, today he stands charged with federal crimes of terrorism. Those alleged terrorists who target New York City do so because they feel threatened by the strength of our spirit, the height of our ambition and the breadth of our freedom. They come seeking to sow hate, fear and terror. But in New York City, they find instead strength, resilience and hope. Like many before him, Akayed Ullah will also find another great American virtue: justice. That justice will be tough, it will be fair and it will be swift.”
“Akayed Ullah let loose his plan to conduct a mass casualty attack, setting off a pipe bomb, strapped to his body, inside a New York City subway terminal, as we allege today,” said Assistant Director in Charge Sweeney. Like many others before him, we believe Ullah was inspired by a group that exploits technology in an effort to spread a violent ideology, effectively convincing sympathizers to commit terrorist acts worldwide. The nature of this particular strain of the terrorism threat can often mean evaluating behavior that doesn’t mean anything until you combine it with other pieces of intelligence. We rely heavily upon the community’s assistance to accomplish that task.”
“The act of terror committed in New York City yesterday accomplished nothing,” said Commissioner O’Neill. “It has not changed our way of life. It was a cowardly act, fueled by a false sense of purpose — motivated by propaganda in the shadows of the internet. What is clear is the resolve of New Yorkers to live in a free society, devoid of fear. I want to commend the work of the NYPD-FBI Joint Terrorism Task Force and the prosecutors in the Southern District for bringing today’s charges. Finally, our security requires every single member of the public’s help. It requires their vigilance. And it requires their care. If you see something that doesn’t look right, contact law enforcement.”
As alleged in the Complaint:
Islamic State of Iraq and Al-Sham (ISIS)
ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide. ISIS has pursued the objective of an Islamic state through, among other things, killing and deliberate targeting of civilians, mass executions, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape, and other forms of sexual violence. ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria, and other locations in Africa and the Middle East, and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts.
The Dec. 11, Attack
On Dec. 11, at approximately 7:20 a.m., an improvised explosive device (IED) detonated inside a subway terminal (the Subway Terminal) in or around the New York Port Authority Bus Terminal located at West 42nd Street and Eighth Avenue in New York, New York (the December 11 Attack). Shortly after the blast, members of the Port Authority of New York and New Jersey Police Department located an individual later identified as Akayed Ullah lying on the ground in the vicinity of the explosion. Surveillance footage captured Ullah walking through the Subway Terminal immediately prior to the explosion, and then falling to the ground after the explosion.
Ullah was subsequently taken into custody by law enforcement. During the course of Ullah’s arrest, law enforcement officers located on his person and in the surrounding area what appeared to be the components of an exploded pipe bomb (the Pipe Bomb). Specifically, law enforcement located, among other items, (i) a nine-volt battery inside Ullah’s pants pocket; (ii) wires connected to the battery and running underneath Ullah’s jacket; (iii) two plastic zip ties underneath Ullah’s jacket; (iv) several fragments of a metal pipe, including pieces of a metal end cap, on the ground; (v) the remnants of what appeared to be a Christmas tree lightbulb attached to wires; and (vi) pieces of what appear to be plastic zip-ties, among other items.
After Ullah was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights. During that interview, Ullah stated, among other things, the following:
- Ullah constructed the Pipe Bomb and carried out the Dec. 11 Attack. Ullah was inspired by ISIS to carry out the Dec. 11 Attack, and stated, among other things, “I did it for the Islamic State.”
- Ullah constructed the Pipe Bomb at his residence in Brooklyn (the Residence);
- The Pipe Bomb was comprised of a metal pipe, which Ullah filled with explosive material that he created. Ullah used Christmas tree lights, wires, and a nine-volt battery as a trigger to detonate the Pipe Bomb. Ullah filled the Pipe Bomb with metal screws, which he believed would cause maximum damage. Ullah used zip ties to secure the Pipe Bomb to his body.
- Ullah carried out the Dec. 11 Attack in part because of the United States Government’s policies in, among other places, the Middle East. One of Ullah’s goals in carrying out the Dec. 11 Attack was to terrorize as many people as possible. He chose to carry out the attack on a work day because he believed that there would be more people.
- Ullah’s radicalization began in at least approximately 2014. Ullah viewed pro-ISIS materials online, including a video instructing, in substance, that if supporters of ISIS were unable to travel overseas to join ISIS, they should carry out attacks in their homelands. He began researching how to build IEDs on the Internet approximately one year ago.
- On the morning of Dec. 11, shortly before carrying out the attack, Ullah posted a statement on his Facebook account referring to the President of the U.S., stating, in substance, “Trump you failed to protect your nation.” Ullah also posted a statement that he believed would be understood by members and supporters of ISIS to convey that Ullah carried out the attack in the name of ISIS.
Items Recovered from Ullah’s Residence
On Dec. 11, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant. Law enforcement agents recovered, among other items, (i) multiple pieces of metal pipes; (ii) pieces of wire and fragments of what appear to be Christmas tree lights; (iii) multiple screws consistent with the screws recovered at the scene of the December 11 Attack; and (iv) a passport in Ullah’s name with multiple handwritten notations, including: “O AMERICA, DIE IN YOUR RAGE.”
Three individuals were injured as a result of the Dec. 11 Attack.
* * *
Ullah is charged in a Complaint with one count of provision of material support and resources to a designated foreign terrorist organization which carries a maximum sentence of 20 years’ imprisonment; one count of using and attempting to use a weapon of mass destruction which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use which carries a maximum sentence of life imprisonment; one count of destruction of property by means of fire or explosives, which carries a mandatory minimum sentence of five years’ imprisonment and a potential maximum sentence of 20 years’ imprisonment; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of a weapon of mass destruction which carries a mandatory minimum consecutive sentence of 30 years’ imprisonment and potential maximum of life, all in connection with Ullah’s alleged detonation of an explosive device in New York City.
Mr. Sessions, Mr. Boente and Mr. Kim praised the outstanding investigative efforts of the FBI; the NYPD; the Department of Homeland Security, Homeland Security Investigations (HSI); and the Port Authority of New York and New Jersey’s Police Department. Ullah’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, HSI and other agencies – and the U.S. Department of Justice’s National Security Division.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The prosecution is being handled by Assistant U.S. Attorneys Shawn G. Crowley, Rebekah Donaleski and George D. Turner of the Southern District of New York, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division.
Akayed Ullah Charged in Manhattan Federal Court with Terrorism and Explosives Charges in Connection with the Detonation of A Bomb in New York CityRead the Press Release
Jeff Sessions, the Attorney General of the United States, Joon H. Kim, the Acting U.S. Attorney for the Southern District of New York, Dana J. Boente, the Acting Assistant Attorney General for National Security, William F. Sweeney Jr., Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office (“FBI”), and James P. O’Neill Commissioner of the Police Department for the City of New York (“NYPD”), announced that AKAYED ULLAH has been charged in U.S. District Court for the Southern District of New York in connection with ULLAH’s detonation and attempted denotation of a bomb in a subway terminal near the New York Port Authority Bus Terminal in New York City on December 11, 2017. Three people were injured as a result of the detonation.
Attorney General Jeff Sessions said: “The Department of Justice is relentless in taking on the terrorist threat. In my time back at the Department, nothing has impressed me more. Since 9/11, the Department has convicted more than 500 criminals of terrorism-related offenses, and the FBI has open terrorism investigations in every state. To make law enforcement’s job easier, however, Congress must finally fix our broken immigration system so that we admit to this country those who are likely to succeed, not violent criminals, gang members, terrorists, or their sympathizers. The fact that somebody won a lottery or is someone’s relative tells us nothing about their ability to assimilate. Nevertheless, the Department of Justice will prosecute this case and every other case to the fullest extent of the law, and we will bring those who threaten America to justice.”
Acting U.S. Attorney Joon H. Kim said: “Yesterday, in the heart of rush hour, as thousands came into New York City through the Port Authority Bus Terminal, Akayed Ullah allegedly came with a hate-filled heart and an evil purpose: to murder as many innocent people as he could and blow himself up in the process, all in support of the vicious terrorist cause of ISIS. Although yesterday he allegedly stood in the tunnels under Port Authority plotting to kill, today he stands charged with federal crimes of terrorism. Those alleged terrorists who target New York City do so because they feel threatened by the strength of our spirit, the height of our ambition, and the breadth of our freedom. They come seeking to sow hate, fear, and terror. But in New York City, they find instead strength, resilience, and hope. Like many before him, Akayed Ullah will also find another great American virtue: justice. That justice will be tough, it will be fair, and it will be swift.”
FBI Assistant Director William F. Sweeney Jr. said: “Akayed Ullah let loose his plan to conduct a mass casualty attack, setting off a pipe bomb, strapped to his body, inside a New York City subway terminal, as we allege today. Like many others before him, we believe Ullah was inspired by a group that exploits technology in an effort to spread a violent ideology, effectively convincing sympathizers to commit terrorist acts worldwide. The nature of this particular strain of the terrorism threat can often mean evaluating behavior that doesn’t mean anything until you combine it with other pieces of intelligence. We rely heavily upon the community’s assistance to accomplish that task.”
NYPD Commissioner James P. O’Neill said: “The act of terror committed in New York City yesterday accomplished nothing. It has not changed our way of life. It was a cowardly act, fueled by a false sense of purpose—motivated by propaganda in the shadows of the internet. What is clear is the resolve of New Yorkers to live in a free society, devoid of fear. I want to commend the work of the NYPD-FBI Joint Terrorism Task Force and the prosecutors in the Southern District for bringing today’s charges. Finally, our security requires every single member of the public’s help. It requires their vigilance. And it requires their care. If you see something that doesn’t look right, contact law enforcement.”
As alleged in the Complaint:[1]
Islamic State of Iraq and Al-Sham
ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide. ISIS has pursued the objective of an Islamic state through, among other things, killing and deliberate targeting of civilians, mass executions, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape, and other forms of sexual violence. ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria, and other locations in Africa and the Middle East, and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts.
The December 11, 2017, Attack
On December 11, 2017, at approximately 7:20 a.m., an improvised explosive device (“IED”) detonated inside a subway terminal (the “Subway Terminal”) in or around the New York Port Authority Bus Terminal located at West 42nd Street and Eighth Avenue in New York, New York (the “December 11 Attack”). Shortly after the blast, members of the Port Authority of New York and New Jersey Police Department (“PAPD”) located an individual later identified as AKAYED ULLAH lying on the ground in the vicinity of the explosion. Surveillance footage captured ULLAH walking through the Subway Terminal immediately prior to the explosion, and then falling to the ground after the explosion.
ULLAH was subsequently taken into custody by law enforcement. During the course of ULLAH’s arrest, law enforcement officers located on his person and in the surrounding area what appeared to be the components of an exploded pipe bomb (the “Pipe Bomb”). Specifically, law enforcement located, among other items, (i) a nine-volt battery inside ULLAH’s pants pocket; (ii) wires connected to the battery and running underneath ULLAH’s jacket; (iii) two plastic zip ties underneath ULLAH’s jacket; (iv) several fragments of a metal pipe, including pieces of a metal end cap, on the ground; (v) the remnants of what appeared to be a Christmas tree lightbulb attached to wires; and (vi) pieces of what appear to be plastic zip ties, among other items.
After ULLAH was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights. During that interview, ULLAH stated, among other things, the following:
- ULLAH constructed the Pipe Bomb and carried out the December 11 Attack. ULLAH was inspired by ISIS to carry out the December 11 Attack, and stated, among other things, “I did it for the Islamic State.”
- ULLAH constructed the Pipe Bomb at his residence in Brooklyn (“the Residence”);
- The Pipe Bomb was composed of a metal pipe, which ULLAH filled with explosive material that he created. ULLAH used Christmas tree lights, wires, and a nine-volt battery as a trigger to detonate the Pipe Bomb. ULLAH filled the Pipe Bomb with metal screws, which he believed would cause maximum damage. ULLAH used zip ties to secure the Pipe Bomb to his body.
- ULLAH carried out the December 11 Attack in part because of the United States Government’s policies in, among other places, the Middle East. One of ULLAH’s goals in carrying out the December 11 Attack was to terrorize as many people as possible. He chose to carry out the attack on a work day because he believed that there would be more people.
- ULLAH’s radicalization began in at least approximately 2014. ULLAH viewed pro-ISIS materials online, including a video instructing, in substance, that if supporters of ISIS were unable to travel overseas to join ISIS, they should carry out attacks in their homelands. He began researching how to build IEDs on the Internet approximately one year ago.
- On the morning of December 11, 2017, shortly before carrying out the attack, ULLAH posted a statement on his Facebook account referring to the President of the United States, stating, in substance, “Trump you failed to protect your nation.” ULLAH also posted a statement that he believed would be understood by members and supporters of ISIS to convey that ULLAH carried out the attack in the name of ISIS.
Items Recovered from ULLAH’s Residence
On December 11, 2017, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant. Law enforcement agents recovered, among other items, (i) multiple pieces of metal pipes; (ii) pieces of wire and fragments of what appear to be Christmas tree lights; (iii) multiple screws consistent with the screws recovered at the scene of the December 11 Attack; and (iv) a passport in ULLAH’s name with multiple handwritten notations, including: “O AMERICA, DIE IN YOUR RAGE.”
Three individuals were injured as a result of the December 11 Attack.
* * *
ULLAH, 27, of Brooklyn, New York, is charged in the Complaint with one count of provision of material support and resources to a designated foreign terrorist organization, in violation of 18 U.S.C. § 2339B, which carries a maximum sentence of 20 years in prison; one count of using and attempting to use a weapon of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life in prison; one count of bombing and attempting to bomb a place of public use, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life in prison; one count of destruction of property by means of fire or explosives, which carries a mandatory minimum sentence of five years in prison and a potential maximum sentence of 20 years in prison; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of a weapon of mass destruction, in violation of 18 U.S.C. § 924(c), which carries a mandatory minimum consecutive sentence of 30 years in prison and potential maximum of life, all in connection with ULLAH’s alleged detonation of an explosive device in New York City.
Mr. Sessions, Mr. Kim, and Mr. Boente praised the outstanding investigative efforts of the FBI, the NYPD, the Department of Homeland Security, Homeland Security Investigations (“HSI”), and the PAPD. ULLAH’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, HSI, PAPD, and other agencies – and the U.S. Department of Justice’s National Security Division.
The prosecution is being handled by the Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Shawn G. Crowley, Rebekah Donaleski, and George D. Turner are in charge of the prosecution, with assistance from Trial Attorney Jerome Teresinski of the Counterterrorism Section of the Justice Department’s National Security Division.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
21st Century Oncology to Pay $26 Million to Settle False Claims Act AllegationsRead the Press Release
21st Century Oncology Inc. and certain of its subsidiaries and affiliates have agreed to pay $26 million to the government to resolve a self-disclosure relating to the submission of false attestations regarding the company’s use of electronic health records software and separate allegations that they violated the False Claims Act by submitting, or causing the submission of, claims for certain services provided pursuant to referrals from physicians with whom they had improper financial relationships.
“The Justice Department is committed to zealously investigating improper financial relationships that have the potential to compromise physicians’ medical judgment,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “However, we will work with companies that accept responsibility for their past compliance failures and promptly take corrective action.”
21st Century Oncology, which is headquartered in Fort Myers, Florida, owns and operates subsidiaries and affiliates throughout the United States that provide integrated cancer care. As part of its business, 21st Century Oncology’s subsidiaries and affiliates employ physicians in specialty fields such as radiation oncology, medical oncology, and urology.
The settlement announced today resolves conduct that was self-disclosed by the company regarding payments made by the government as part of the Medicare Electronic Health Records (EHR) Incentive Program. Under the Medicare EHR Incentive Program, physicians who attest to their meaningful use of certified EHR technology may receive incentive payments and avoid downward adjustments to certain Medicare claims. As part of its self-disclosure, 21st Century Oncology reported that it knowingly submitted, or caused the submission of, false attestations to CMS concerning employed physicians’ use of EHR software. The company further reported that, in support of the attestations, its employees falsified data regarding the company’s use of EHR software, fabricated software utilization reports, and superimposed EHR vendor logos onto the reports to make them look legitimate.
“This settlement represents our office’s continued commitment to ensuring compliance with important federal health care laws,” said Acting U.S. Attorney Stephen Muldrow of the Middle District of Florida. “We appreciate that 21st Century Oncology self-reported a major fraud affecting Medicare, and we are also pleased that the company has agreed to accept financial responsibility for past compliance failures.”
The settlement also resolves the government’s allegations regarding violations of the physician self-referral law (commonly referred to as the “Stark Law.”) The Stark Law prohibits an entity from submitting claims to Medicare for designated health services performed pursuant to referrals from physicians with whom the entity has a financial relationship unless certain designated exceptions apply. The government alleged that 21st Century Oncology and certain of its subsidiaries and affiliates violated the FCA by submitting, or causing the submission of, claims for services performed pursuant to referrals from physicians whose compensation did not satisfy any exception to the Stark Law.
The Stark Law allegations were originally brought in a lawsuit filed by Matthew Moore, 21st Century Oncology’s former Interim Vice President of Financial Planning, under the qui tam provisions of the False Claims Act. Under the Act, private parties may bring suit on behalf of the government and share in any recovery. Mr. Moore will receive $2,000,000 as his share of the recovery associated with the Stark Law allegations.
In addition to the civil settlement, 21st Century Oncology has entered into a new five-year Corporate Integrity Agreement with the Office of Inspector General of the United States Department of Health and Human Services (HHS-OIG), which obligates 21st Century Oncology to undertake substantial internal compliance reforms, including hiring independent review organizations to conduct annual claims and arrangements reviews.
“21st Century Oncology admitted to causing violation of the meaningful use regulations in order to fund an electronic health records system, as well as falsifying records to cover up those actions,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Separately, the government alleged that same company, through its affiliates and subsidiaries, caused certain physicians to enter into illegal financial arrangements. Providers engaging in similar behavior should expect attention from OIG.”
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. 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 900-HHS-TIPS (800-447-8477).
The investigation was handled by the Civil Division’s Commercial Litigation Branch and the Fort Myers Division of the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the U.S. Attorney’s Office for the Southern District of New York and HHS-OIG. The claims resolved by this settlement are allegations only; there has been no determination of liability. The case is captioned United States ex rel. Moore v. 21st Century Oncology, LLC, No. 2:16-cv-99 (M.D. Fl.).
21st Century Oncology to Pay $26 Million to Settle False Claims Act AllegationsRead the Press Release
Fort Myers, FL – 21st Century Oncology Inc. and certain of its subsidiaries and affiliates have agreed to pay $26 million to the government to resolve a self-disclosure relating to the submission of false attestations regarding the company’s use of electronic health records software and separate allegations that they violated the False Claims Act by submitting, or causing the submission of, claims for certain services provided pursuant to referrals from physicians with whom they had improper financial relationships.
“The Justice Department is committed to zealously investigating improper financial relationships that have the potential to compromise physicians’ medical judgment,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “However, we will work with companies that accept responsibility for their past compliance failures and promptly take corrective action.”
21st Century Oncology, which is headquartered in Fort Myers, Florida, owns and operates subsidiaries and affiliates throughout the United States that provide integrated cancer care. As part of its business, 21st Century Oncology’s subsidiaries and affiliates employ physicians in specialty fields such as radiation oncology, medical oncology, and urology.
The settlement announced today resolves conduct that was self-disclosed by the company regarding payments made by the government as part of the Medicare Electronic Health Records (EHR) Incentive Program. Under the Medicare EHR Incentive Program, physicians who attest to their meaningful use of certified EHR technology may receive incentive payments and avoid downward adjustments to certain Medicare claims. As part of its self-disclosure, 21st Century Oncology reported that it knowingly submitted, or caused the submission of, false attestations to CMS concerning employed physicians’ use of EHR software. The company further reported that, in support of the attestations, its employees falsified data regarding the company’s use of EHR software, fabricated software utilization reports, and superimposed EHR vendor logos onto the reports to make them look legitimate.
“This settlement represents our office’s continued commitment to ensuring compliance with important federal health care laws,” said Acting U.S. Attorney Muldrow. “We appreciate that 21st Century Oncology self-reported a major fraud affecting Medicare, and we are also pleased that the company has agreed to accept financial responsibility for past compliance failures.”
The settlement also resolves the government’s allegations regarding violations of the physician self-referral law (commonly referred to as the “Stark Law.”) The Stark Law prohibits an entity from submitting claims to Medicare for designated health services performed pursuant to referrals from physicians with whom the entity has a financial relationship unless certain designated exceptions apply. The government alleged that 21st Century Oncology and certain of its subsidiaries and affiliates violated the FCA by submitting, or causing the submission of, claims for services performed pursuant to referrals from physicians whose compensation did not satisfy any exception to the Stark Law.
The Stark Law allegations were originally brought in a lawsuit filed by Matthew Moore, 21st Century Oncology’s former Interim Vice President of Financial Planning, under the qui tam provisions of the False Claims Act. Under the Act, private parties may bring suit on behalf of the government and share in any recovery. Mr. Moore will receive $2,000,000 as his share of the recovery associated with the Stark Law allegations.
In addition to the civil settlement, 21st Century Oncology has entered into a new five-year Corporate Integrity Agreement with the Office of Inspector General of the United States Department of Health and Human Services (HHS-OIG), which obligates 21st Century Oncology to undertake substantial internal compliance reforms, including hiring independent review organizations to conduct annual claims and arrangements reviews.
“21st Century Oncology admitted to causing violation of the meaningful use regulations in order to fund an electronic health records system, as well as falsifying records to cover up those actions,” said Shimon R. Richmond, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Separately, the government alleged that same company, through its affiliates and subsidiaries, caused certain physicians to enter into illegal financial arrangements. Providers engaging in similar behavior should expect attention from OIG.”
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. 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 900-HHS-TIPS (800-447-8477).
The investigation was handled by Trial Attorney Kristen Murphy from the Department of Justice Civil Division's Commercial Litigation Branch and Assistant United States Attorney Kyle S. Cohen from the Fort Myers Division of the United States Attorney's Office for the Middle District of Florida, with assistance from the Department of Health and Human Services Office of Inspector General and the United States Attorney's Office for the Southern District of New York. The claims resolved by this settlement are allegations only; there has been no determination of liability. The case is captioned United States ex rel. Moore v. 21st Century Oncology, LLC, No. 2:16-cv-99 (M.D. Fl.).
2017 Animal Cruelty Prosecutions Training to Be Held at Valdosta State UniversityRead the Press Release
On December 13-14, 2017, the United States Attorney’s Office for the Middle District of Georgia, the Environmental Crimes Section of the United States Department of Justice – Environment and Natural Resources Division, and the United States Department of Agriculture – Office of Inspector General – Investigations will be hosting a regional animal cruelty prosecutions training in Valdosta.
The training will be held on December 13-14, 2017 from 8:30 am to 5:00 pm each day. The training will be held in the Cypress Room at the Valdosta State University Center, 1203 N. Patterson Street (corner of Ann and N. Patterson).
The conference will provide participants with an overview of the federal animal welfare and cruelty statutes, investigation techniques, and prosecution challenges. During the training, the Humane Society of the United States, along with prosecutors and federal agents, will share their experience in handling dog fighting and animal cruelty cases.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 752-3511.
Monday 11 December 2017
Woman Charged with Defrauding the School District of PhiladelphiaRead the Press Release
A federal indictment was unsealed last Friday afternoon charging Patricia Cleary with wire fraud, mail fraud, social security fraud, aggravated identity theft and false statements to government agents, announced United States Attorney Louis D. Lappen, FBI Special Agent-in-Charge Michael T. Harpster, USPIS Inspector-In-Charge Daniel B. Brubaker, SSA OIG Special Agent-in-Charge Michael J. McGill, and City of Philadelphia Inspector General Amy Kurland.
According to allegations contained in the indictment, Patricia Cleary falsely and fraudulently presented herself as the tutor for a relative with special needs with the City of Philadelphia School District. Cleary used her maiden name, Patricia Goldstein, as the name for the fictitious tutor. She submitted a false W-9 for the fictitious tutor using the social security number of another person and a retired Pennsylvania teacher’s credentials. She prepared false invoices purportedly for tutoring services provided to a relative and submitted them to the School District from personal email accounts as well as an email account created for the fictitious tutor. After the School District stopped issuing payment on the tutoring invoices and required verification of the tutor’s credentials, Cleary continued to perpetuate the fraud by threatening the School District with a lawsuit, falsely alleging that she hired a tutor, sent the tutor’s IRS form and teaching credentials to the School District, and gave money directly to the tutor for the tutoring services the School District refused to pay. She also submitted false teaching certificates from two different states purportedly in the name of the fictitious tutor and fraudulently created a profile for the fictitious tutor in a system used by the School District to verify credentials, including identifying a stolen social security number of another person as belonging to the fictitious tutor.
As a result of her deceptive tactics, including the submission of false and fraudulent documents to the School District through emails and other documentation, Cleary received approximately $58,940.00 and attempted to receive approximately $33,090 from the School District to which she was not entitled.
“The defendant allegedly stole a victim’s identity and used it to defraud the Philadelphia School District by claiming that she was tutoring her special needs relative,” said United States Attorney Louis D. Lappen. “Our office will continue to prosecute scammers who seek to enrich themselves at the expense of members of our community who are entitled to benefit from valuable public programs that too often are targeted by venal criminals.”
“Stealing money from a cash-strapped school district, money meant to help people with special needs, is outrageous," said FBI Special Agent in Charge Harpster. "As alleged in the indictment, Cleary exploited a vulnerable family member to enrich herself - and when the school district grew suspicious and stopped sending checks, she brashly doubled down and threatened suit. The FBI is committed to investigating and holding responsible anyone fraudulently siphoning off public funds."
"Identify theft is a serious crime that effects millions of Americans each year, " This case is an example of how an identity thief can infiltrate an organization, pose as a legitimate tutor, and cause all of us to pay her an unearned salary,” said Daniel B Brubaker, Inspector in Charge of the Philadelphia Division of the US Postal Inspection Service. “This case illustrates how far reaching the effects of identity theft are, and the depths these criminals will go to receive ill-gotten gains. We take these crimes very seriously and we're dedicated to holding criminals accountable when they use the mail in furtherance of their criminal schemes"
“Patricia Cleary allegedly stole money from the School District that was meant to educate our children, who deserve and need quality education," said Amy Kurland, Inspector General for the School District and City of Philadelphia. "This indictment sends a message that we will not tolerate theft and that we will continue to work to eliminate fraud and ensure integrity in the District.”
Cleary is charged with wire fraud and mail fraud, which carry a maximum sentence of 20 years in prison and a $250,000 fine. Additionally, Cleary is charged with social security fraud, which carries a maximum sentence of 5 years’ imprisonment and a $250,000 fine, and aggravated identity theft, which carries a maximum sentence of 2 years’ imprisonment that must run consecutive to any other sentence and a $250,000 fine. Cleary also is charged with false statements to federal agents, which carries a maximum sentence of 5 years in prison and a $250,000 fine.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Social Security Administration Office of Inspector General, and the School District of Philadelphia Inspector General’s Office. It is being prosecuted by Assistant United States Attorney Tomika N.S. Patterson of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
Wilmington Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON – A Wilmington man pleaded guilty today in federal court in Boston to armed bank robbery.
Russell Dinovo, 52, pleaded guilty to one count of armed bank robbery before U.S. District Court Judge Richard G. Stearns. Sentencing is scheduled for March 7, 2018.
On Oct. 9, 2015, two individuals, wearing hooded sweatshirts with portions of their faces visible, entered a branch of the Hingham Institute for Savings in Boston. One of the robbers, later identified as Dinovo, vaulted the teller counter, forced open two tellers’ cash drawers, grabbed money, and put it into a duffel bag. Dinovo then demanded that a bank employee open the vault; the employee did, and Dinovo then removed money from the vault. The other individual, later identified as Anthony Pantone, remained in front of the counter throughout the entire robbery holding what appeared to be a handgun.
After stealing $16,320 from the bank, the two individuals fled on foot, but were captured a short time later in a cab with the duffel bag containing $16,320 and an airsoft gun.
Pantone pleaded guilty and was sentenced in August 2016 to 78 months in prison.
Dinovo faces a sentence of no greater than 25 years in prison, five years of supervised release and a fine of up to $250,000. 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 Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
Waterbury Man to Serve More Prison Time for Escaping from CustodyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CHRISTOPHER BRYAN COLEMAN, 28, of Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 12 months and one day of imprisonment, followed by three years of supervised release, for escaping from federal custody. Judge Bolden also ordered COLEMAN to serve the first 90 days of supervised release in home confinement.
According to court documents and statements made in court, on December 22, 2014, COLEMAN was sentenced in New Haven federal court to 42 months of imprisonment, followed by two years of supervised release, for possession of a firearm by a convicted felon. On May 24, 2017, COLEMAN was transferred from a federal prison in Pennsylvania to a halfway house in Waterbury to serve the remainder of his sentence. On July 16, 2017, he left the halfway house without prior authorization and did not return.
On August 9, 2017, the U.S. Marshals Service located COLEMAN at a private residence in Waterbury and arrested him.
On September 12, COLEMAN pleaded guilty to one count of escape from custody
COLEMAN’s criminal history also includes drug convictions and a conviction for escape in the first degree.
This matter was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Waterbury Man Pleads Guilty to Credit Card "Bust-Out" Scheme and Lying in Bankruptcy ProceedingRead the Press Release
John H, Durham, United States Attorney for the District of Connecticut, announced that JANZAYB KHAN, 29, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of conspiracy to commit bank fraud and one count of making a false oath in a bankruptcy proceeding in connection with a credit card “bust-out” scheme that defrauded more than a dozen financial institutions.
According to the court documents and statements made in court, KHAN provided his personal information to a co-conspirator so that the co-conspirator could obtain credit cards in KHAN’s name. In total, the co-conspirator obtained 31 credit cards in KHAN’s name from more than a dozen financial institutions. In many cases, the credit card applications contained false statements about KHAN’s income, assets, address and employment history. Then, within a short period in January 2013, nearly all of the available credit on the cards were rapidly utilized or “busted out.” More than $59,000 was spent on cash advances, gift cards and precious metals. Some of the proceeds from the cash advances were deposited and/or transferred to bank accounts in the name of KHAN’s co-conspirator and/or the co-conspirator’s relatives.
In addition, almost $70,000 was charged in sham transactions at three merchants, who then issued checks from the proceeds that were later deposited into bank accounts in the name of the co-conspirator and/or the co-conspirator’s relatives.
The co-conspirator paid KHAN approximately $10,000 in cash for his role in the scheme.
After the bust-out, there was more than $165,954 in accumulated debt on the 31 cards in KHAN’s name. In June 2013, KHAN filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court and attempted to discharge all of his credit card debt. In his bankruptcy court filings, KHAN falsely stated that the majority of his debt was due to gambling losses as casinos. KHAN also made a number of other false statements under oath during an examination by the U.S. Trustee in his bankruptcy case. The U.S. Bankruptcy Court later denied the discharge of KHAN’s debts.
KHAN was arrested on a federal criminal complaint on April 4, 2017.
Judge Meyer scheduled sentencing for March 5, 2018, at which time KHAN faces a maximum term of imprisonment of 35 years.
This matter is being investigated by the U.S. Secret Service and is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Two Defendants Plead Guilty to Conspiracy Related to Interstate Prostitution BusinessRead 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 LiangLiang Guo, 31, and Chengqi Li, 28, both of Flushing, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to use interstate facilities to promote prostitution and to transport individuals in interstate commerce with intent that such individuals would engage in prostitution. The charges carry a maximum penalty of five years in prison and a $250,000 fine.Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that the defendants were part of a multi-state prostitution business that sent female victims to cities and states across the Eastern United States to engage in commercial sex acts. As part of that business, Li and others posted advertisements on Backpage.com to set up meetings between clients and prostitutes in Tonawanda, NY and other cities and states. Guo acted as a driver for the prostitution business, driving the females to hotels where they would engage in commercial sex acts. Guo also collected the proceeds of the illicit prostitution business. Li assisted in the running of the business by posting the advertisements, arranging for the travel of the females, and receiving the money that represented was the profits of commercial sex acts.
“By their guilty pleas, the defendants admitted that theirs was a business plan which linked their bottom line to their ability to promote and facilitate the sexual exploitation of their workers,” noted U.S. Attorney Kennedy. “These felony convictions represent the just return that defendants have earned for investing themselves in such a morally bankrupt venture.”
“The guilty pleas acknowledge the defendants primary roles in a sex trafficking scheme with multiple victims,” said Homeland Security Investigations Special Agent-in-Charge Kevin Kelly. “HSI will continue to work with every stakeholder engaged in the effort to ensure traffickers are brought to justice and victims get the support they need.”The pleas are the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III; the New York Police Department, under the direction of Chief James P. O’Neill; the South Portland, Maine Police Department, under the direction of Chief Edward Googins; and the Fairview Township Police Department, under the direction of Chief Jason C. Loper.
Defendant Guo’s sentencing is scheduled for March 19, 2018 at 9:30 a.m. and defendant Li’s sentencing is scheduled for April 9, 2018 at 10:00 a.m., both before Judge Vilardo.
Two Cincinnati Individuals Plead Guilty to Conspiracy to Sex Trafficking of ChildRead the Press Release
CINCINNATI – Eric Zyn Ho, 25, and Bryan Mathew Otero, 27, both of Cincinnati, pleaded guilty in U.S. District Court to one count of conspiracy to sex traffic a child. Ho also pleaded guilty to one count of conspiracy to produce child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Union Township Police Chief Scott Gaviglia and other members of the FBI’s Child Exploitation Task Force announced the pleas entered into today before U.S. District Judge Susan J. Dlott.
In May, the defendants conspired to harbor a 14-year-old female and caused her to engage in a commercial sex act.
Both defendants were charged by criminal complaint and arrested on May 4 and remain in custody. They were indicted by a federal grand jury in the same month.
Conspiracy to sex traffic children is a crime punishable by up to life in prison. Conspiracy to produce child pornography carries a mandatory minimum of 15 years in prison up to 30 years.
Pursuant to the Child Victims’ and Child Witnesses’ Rights Act, specific details of the plea agreements remain under seal.
U.S. Attorney Glassman commended the investigation of this case by the FBI, including FBI Cincinnati, Indianapolis and Kansas City field offices, and Union Township Police, as well as Assistant United States Attorney Kyle J. Healey, who is prosecuting the case.
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Turkish Citizen Makes Initial Appearance on Charges of Illegally Exporting Goods to IranRead the Press Release
United States Attorney Gregory J. Haanstad announced today that Resit Tavan, age 40, of Istanbul, Turkey, was arraigned in federal court in Milwaukee on an indictment returned June 27, 2017. Tavan, owner and president of Ramor Dis Ticaret, Ltd. (Ramor), a Turkish company, and Fulya Oguzturk are charged, along with Ramor, with conspiring to defraud the United States and to smuggle American made products to Iran in violation of the International Emergency Economic Powers Act (IEEPA). Pursuant to IEEPA, American goods may not be shipped to Iran without prior approval and specific licensing by the United States government.
The indictment charges that Tavan, Oguzturk, and Ramor arranged the purchase and acquisition of marine products manufactured in Wisconsin, for shipment to and use by Iran. The indictment alleges that the goods, specifically outboard engines, generators, and propulsion systems, were shipped first to Turkey and then to Iran without the knowledge of the manufacturers, and without the permission and license of the United States. The indictment further alleges that the marine products were intended for use by the Iranian navy.
In addition to the conspiracy charge, 18 U.S.C § 371, the indictment charges three counts of violating IEEPA, 50 U.S.C. § 1705(a); three counts of smuggling, 18 U.S.C. § 554(a); and six counts of money laundering, 18 U.S.C. § 1956(a)(2)(A). If convicted, Tavan faces up to 5 years in prison and a $250,000.00 fine on the conspiracy count; up to 20 years and a $1,000,000 fine on each IEEPA count; up to 10 years and a $250,000 fine on each smuggling count; and up to 20 years and a $500,000 fine on each money laundering count.
Tavan was arrested in Romania in June 2017, on an international arrest warrant issued at the request of the United States. Upon his arrest, the United States requested Tavan’s extradition from Romania. That process has ended with his arraignment today.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement. The case is being prosecuted by Assistant United States Attorney Paul L. Kanter and William Mackie, Trial Attorney, Counterintelligence & Export Control Section, National Security Division, U.S. Department of Justice.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
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For additional information contact:
Public Information Officer Dean Puschnig (414) 297-1700
Three convicted by jury of taking job training money and using it to fund lavish lifestylesRead the Press Release
A jury convicted three people of taking federal money earmarked for job training and instead using the money to pay for personal expenses, including vacations, investments, real estate purchases and salaries for people who did not work at the company, said U.S. Attorney Justin E. Herdman and IRS Special Agent in Charge Ryan Korner.
James D. Moody, 57, of Toledo, Victoria Hawkins, 30, of Grand Rapids, Michigan, and Angela Bowser, 46, of Toledo, were convicted on all counts for their activities related to Toledo-based Business Rehabilitation Informed Decisions Guiding Employment Strategies, Inc. d/b/a B.R.I.D.G.E.S., Inc..
They are scheduled to be sentenced April 10, 2018.
Company founder and general manager Daniel E. Morris, 68, of Maumee, pleaded guilty last month to his crimes and is scheduled to be sentenced February 22, 2018.
“These defendants stole millions of dollars targeted to help the least among us learn job skills, and instead used the money to fund lavish lifestyles and pay for no-show jobs,” Herdman said. “They ripped off taxpayers and betrayed the trust placed in them.”
“This was a transparent scheme to defraud the taxpayers of Northwest Ohio,” Korner said. “Today’s guilty verdicts brings justice to thieves who enriched themselves on the backs of those struggling to survive.”
According to court documents and trial testimony:
BRIDGES operated at 242 Reynolds Road and 310 Reynolds Road. The company was in the business of providing work placement and work training services to public assistance recipients, and nearly all of its revenue came from public funds.
Morris was the co-founder and general manager of BRIDGES. Moody was co-founder and sole-shareholder. Hawkins was an employee from 2008 through 2012, while Bowser was an employee from 2008 through 2014.
BRIDGES was funded through the Temporary Assistance for Needy Families (TANF) program. TANF was a welfare program that provided cash assistance to qualifying households with minor children or pregnant women. TANF provided federal block grants to states each year to cover benefits, administrative expenses and services targeted to needy families.
One of TANF’s goals was reducing the dependency of needy parents by promoting job preparation, work and marriage. TANF recipients must work as soon as they are job ready and no later than two years after commencing assistance. BRIDGES placed public assistance recipients at “job sites,” where the recipients would work for free to obtain job training and as a condition of receiving public assistance benefits like cash assistance or SNAP benefits (formerly food stamps).
BRIDGES received more than $15.7 million in funding from several entities between 2004 and 2015, including the Ohio Department of Job and Family Services, the Lucas County Department of Job and Family Services, Ohio Works First and others. This funding was based in part on BRIDGES’ grant proposals. The majority of BRIDGES’ stated administrative costs were payroll and transportation.
BRIDGES provided job training and work placement services but at substantially lower costs than those stated in its budgets and invoices. The defendants fraudulently inflated BRIDGES payroll costs, transportation and mileage.
Morris, BRIDGES and others maintained false personnel files, timesheets, mileage records and reimbursement forms for nonexistent employees. They included fake, former or nonexistent employees on the payroll. For example, BRIDGES paid Moody a salary even though he did not work there, and later continued to pay him by issuing payroll checks to Moody’s wife.
During trial, Moody testified that he placed the salary in his wife’s name in order to distance himself from BRIDGES while running for mayor in 2009 and so that she could receive Social Security benefits despite not otherwise being eligible. Moody also received non-payroll checks, which he used to purchase and rehabilitate an investment property in Toledo, purchase an interest in his real estate company, Flex Realty, and pay for legal fees.
BRIDGES, Morris, Moody, Hawkins and Bowser used TANF funds to pay for personal living expenses including groceries, dental care, medical care, resort vacations, pharmaceuticals, clothing, toys, designer bags, furniture, video streaming services, credit card bills, legal fees unrelated to BRIDGES’ business, tattoos, cosmetic surgery, real estate, vehicles, investments and jewelry, according to court documents and trial testimony.
For example, between February 2013 and October 2014, Hawkins accessed a BRIDGES business account to make approximately $18,200 in cash withdrawals. Hawkins also had access to a debit card through which she accessed and spent approximately $750,000 in a two-year timeframe. Hawkins and co-defendant Morris also purchased two houses, including a $400,000 house in the Point Place neighborhood of Toledo.
Bowser, a program manager at BRIDGES, received numerous non-payroll checks from the company, some of which were used to purchase a house in Toledo. Bowser continued to receive bi-weekly payments from the company after she stopped working there in 2014.
Each defendant was convicted of conspiracy to commit federal program theft, conspiracy to commit money laundering offenses, substantive federal program theft counts, and substantive money laundering counts.
Morris pleaded guilty to conspiracy to commit federal program theft and mail fraud, aggravated identity theft, conspiracy to commit money laundering, and willful failure to pay over withheld payroll tax.
The case is being prosecuted by Assistant U.S. Attorneys Noah P. Hood and Gene Crawford following an investigation by the Internal Revenue Service-Criminal Investigations with the assistance of the Ohio Auditor of State’s Office, Public Integrity Assurance Team.
Three Men Charged in Federal Court with Narcotics Offenses Relating to 13 Kilograms of Cocaine and Nearly 19,000 Envelopes of Heroin in YonkersRead the Press Release
Joon H. Kim, Acting United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the Drug Enforcement Administration, New York Division (the “DEA”), and Charles Gardner, Yonkers Police Department Commissioner (the “YPD”), announced today the arrest of ANSLEY R. ESTRELLA, RONALD E. LEON, and LUIS OSCAR REYES relating to 13 kilograms of cocaine and nearly 19,000 glassines of heroin in a house in Yonkers. ESTRELLA, LEON, and REYES were all charged Friday in a complaint with conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine and more than one kilogram of heroin.
Acting U.S. Attorney Joon H. Kim said: “After receiving a call about suspicious activity near a house in suburban Yonkers, responding officers allegedly discovered massive quantities of cocaine and heroin, as well as drug paraphernalia, in that home. We commend our law enforcement partners for their swift and effective response to this potentially dangerous situation, and the citizens who notified them when something just didn’t look right. Citizens can play an important role in keeping dangerous drugs, including opioids, off our streets.”
DEA Special Agent in Charge James J. Hunt stated: “A Parent’s worst fear is a heroin dealer setting up shop next door. This case is a reminder that drug traffickers’ greed outweighs the safety of their neighbors. Law enforcement is committed to keeping a vigilant eye out for drug dealers like these whose trafficking encourages heroin abuse, crime and drug related violence, allegedly.”
Yonkers Police Commissioner Charles Gardner said: “A thorough investigation conducted by the responding Yonkers police officers resulted in the discovery of a large scale narcotics distribution operation and the arrest of three individuals. We are working with our federal law enforcement partners on the follow-up investigation and the prosecution of these males. I would like to thank the U.S Drug Enforcement Administration and the U.S. Attorney’s office for their support and invaluable assistance.”
According to the allegations made in the Complaint:[1]
On the evening of December 7, 2017, YPD officers received a call indicating that three men had pushed a fourth man into a house in Yonkers, New York. YPD officers responded to the house, and saw ESTRELLA walk out of the house. The man said he lived in the house with his girlfriend, and that nobody was in the house. The officers could see – through the closed shades – silhouettes of people moving inside the house. Nonetheless, the man repeated that nobody was in the house.
As YPD officers approached the open front door, they saw REYES, with a surgical mask on, and then LEON, also with a surgical mask on, who had blood on his face. The YPD officers entered the house, where LEON denied being hurt.
YPD officers walked through the house to see if there were any additional people committing an ongoing crime or if there were victims in the house. In a room on the second floor, they found white powder, respiratory masks, and, in an open closet, a large number of glassine envelopes and scales.
In the garage, a YPD officer found a car with an open shopping bag, in which the YPD Officer could see what appeared to be bundles of decks of heroin.
The YPD officers placed ESTRELLA, LEON, and REYES under arrest. LEON had keys in his possession for the car in the garage.
The YPD obtained and executed a search warrant and did a full search of the house and the car in the garage, as well as two other cars. During that search, the YPD found, among other things, 13 kilogram-sized bricks of cocaine, 18,598 glassine envelopes containing heroin, 813 tan pills stamped “M30,” a number of plastic bags and clear knotted twists containing white chunky substances, a scale, five small grinders, assorted stamp pads and stamps, a metal kilogram press, and a money-counting machine.
The Complaint charges each of ESTRELLA, LEON, and REYES with one count of narcotics conspiracy, and one count of distribution and possession with intent to distribute controlled substances, and aiding and abetting the same.
* * *
Mr. Kim thanked the DEA and YPD for their outstanding work on the investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Michael Maimin is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are 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 should be treated as allegations.
St. Charles Couple Indicted on Federal Drug ChargesRead the Press Release
St. Louis, MO – Anthony Domontay Marion, a/k/a “Bird,” 34, and Lauren Nicole Martinez, a/k/a “Nikki,” 29, were indicted on November 29th for allegedly distributing heroin to J.W. in February 2016, which caused his death. Both appeared last week before United States Magistrate Judge John M. Bodenhausen for their initial appearances.
If convicted, this charge carries a penalty range of 20 years to life in prison and/or fines up to $1 million. 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 the Drug Enforcement Administration.
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.
Spirit Lake Man with Prior Drug Conviction Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man was sentenced today, December 11, 2017, to more than 10 years in federal prison.
Jesse Lee Wrinkle, 35, from Spirit Lake, Iowa, received the prison term after an August 3, 2017 guilty plea to one count of conspiracy to distribute methamphetamine.
In a plea agreement, Wrinkle admitted that he traveled to Council Bluffs, Iowa, to purchase methamphetamine. From November 2015 through April 2016, defendant made approximately twelve trips to Council Bluffs and picked up anywhere between one to three ounces of methamphetamine each time. On February 20, 2017, law enforcement conducted a traffic stop on Wrinkle and seized almost half a pound of methamphetamine, 61.1 grams of marijuana, and $1500. In addition, Wrinkle had a previous Dickinson County conviction for possession with the intent to distribute methamphetamine from 2016.
Wrinkle was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Wrinkle was sentenced to 121 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Wrinkle is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Ajay J. Alexander and investigated by the Dickinson County Sheriff’s Office, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-4035-LTS.
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Sentri Pass Holder Admits Smuggling Deadly Fentanyl, Heroin, Oxycodone and other Narcotics into the U.S.Read the Press Release
Assistant U.S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – December 7, 2017
SAN DIEGO – Oscar Vasquez-Alamilla of Spring Valley pleaded guilty in federal court today to smuggling multiple narcotics in his truck while driving through the Otay Mesa Port of Entry on September 26, 2017 through the SENTRI lanes.
Vasquez-Alamilla was a SENTRI (Secure Electronic Network for Travelers Response Inspection) pass holder, which allowed expedited clearance for pre-approved travelers upon arrival in the United States and further allowed travelers to use dedicated lanes into the United States at southern land border ports. SENTRI is a U.S. Customs and Border Protection (CBP) Program.
In pleading guilty today to four felony counts of importing controlled substances, Vasquez-Alamilla admitted that on September 26, 2017, he knew that he was smuggling 24.74 pounds of cocaine, 12.68 pounds of fentanyl, 13.71 pounds of heroin, and over 7,000 pills marked as oxycodone in his truck as he entered the SENTRI lanes at Otay Mesa Port of Entry. These drugs were found in his truck by Customs and Border Protection officers (CBP) at the Otay Mesa Port of Entry.
Because of Vasquez-Alamilla’s immigration status as a lawful permanent residence of the U.S., he acknowledged in court today that his guilty pleas to importing drugs would cause his deportation from the U.S. to Mexico.
Vasquez-Alamilla is scheduled for sentencing on March 12, 2018, at 9 a.m. before District Court Judge Larry A. Burns.
DEFENDANT Criminal Case No. 17CR3467LAB
OSCAR VASQUEZ-ALAMILLA Age: 34 Spring Valley, California
SUMMARY OF CHARGES
Count 1 – Importation of 6.22 kilograms of heroin (21 U.S.C. 952, 960)
Count 2 – Importation of 11.22 kilograms of cocaine (21 U.S.C. 952, 960)
Count 3 – Importation of 5.75 kilograms of fentanyl (21 U.S.C. 952, 960)
Count 4 – Importation of 7000 oxycodone pills (21 U.S.C. 952, 960)
Maximum penalties as to Counts 1, 2 and 3: 10-year minimum mandatory to life; fine of $1 million
Maximum penalty as to Count 4: 20 years maximum; fine of $250,000
AGENCIES
U.S. Customs and Border Protection
Homeland Security Investigations
Santa Fe Man Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Daniel M. Schiffmiller, 24, of Santa Fe, N.M., was sentenced last week in federal court in Albuquerque, N.M., for his conviction on firearms-related charges. Schiffmiller was sentenced on Dec. 6, 2017, to 19 months in prison followed by three years of supervised release.
The FBI arrested Schiffmiller on Oct. 21, 2016, on a criminal complaint that charged him with violating the federal firearms laws on Sept. 14, 2016, in Santa Fe County, N.M. According to the criminal complaint, on Sept. 14, 2016, FBI Special Agents seized a modified firearm that had no serial number when they executed a search warrant at Schiffmiller’s storage locker. At the time the FBI executed the search warrant, Schiffmiller was incarcerated at the Santa Fe County Adult Detention Facility.
Schiffmiller subsequently was indicted on Nov. 15, 2016, and was charged with possessing an unregistered firearm and possessing a firearm that had no serial number. According to court documents, Schiffmiller did not have any firearms registered to him in the National Firearms Registration and Transfer Record (NFRTR).
On July 3, 2017, Schiffmiller pled guilty to the indictment and admitted that on Sept. 14, 2016, he possessed a modified shotgun that was not registered to him in the NFRTR. He also admitted that the modified firearm did not have a serial number.
This case was investigated by the Santa Fe office of the FBI and was prosecuted by Assistant U.S. Attorney George C. Kraehe.
Rachael Zintgraff Joins United States Attorney’s OfficeRead the Press Release
U.S. Attorney R. Trent Shores announced today the appointment of Rachael F. Zintgraff as an Assistant United States Attorney with the Civil Division of the United States Attorney’s Office for the Northern District of Oklahoma. As a Civil Division AUSA, Ms. Zintgraff will represent the United States in general civil cases, defending the United States.
Ms. Zintgraff joins the U.S. Attorney’s Office from Atkinson, Haskins, Nellis, Brittingham, Gladd & Fiasco, P.C., where she was a partner focused on appellate advocacy and civil litigation. Ms. Zintgraff received her undergraduate degree from Oklahoma State University and her J.D. from the University of Tulsa College of Law, where she served as Editor-in-Chief of the Tulsa Law Review and graduated with highest honors. While a student at the University of Tulsa College of Law, Ms. Zintgraff worked as a legal intern in the U.S. Attorney’s Office.
“I am excited Rachael Zintgraff is joining our team. She will be an immediate contributor to the Civil Division and a zealous advocate for the United States,” said U.S. Attorney Shores.
Private Investigator Who Attempted to Illegally Obtain the President's Federal Tax Information Pleads GuiltyRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today the conviction of a private investigator who fraudulently used President Donald J. Trump’s personal identifying information, including his social security number, in an attempt to illegally obtain his federal tax information from the Internal Revenue Service
On December 11, 2017, JORDAN HAMLETT, age 32, of Sunset, Louisiana, pled guilty to false representation of a social security number before U.S. District Judge John W. deGravelles. HAMLETT faces a five-year term of imprisonment, fines, and a term of supervised release following imprisonment.
During his guilty plea, HAMLETT admitted that on September 13, 2016, he used the President’s social security number to begin an online Free Application for Federal Student Aid (“FAFSA”). After beginning the FAFSA, HAMLETT obtained a Federal Student Aid Identification, a combination of a username and password which allows students and parents to identify themselves electronically to access the FAFSA. Once HAMLETT obtained the Federal Student Aid Identification, he unlawfully used the Internal Revenue Service’s Data Retrieval Tool in an unsuccessful attempt to obtain the President’s federal tax information from IRS servers. In connection with his attempt to obtain the President’s federal tax information, HAMLETT admitted that he knowingly and falsely declared that the President’s social security number was his own.
Acting U.S. Attorney Amundson stated, “My office, together with our federal, state, and local partners, will continue to aggressively pursue those engaged in the proliferation of identity theft and cybercrime, particularly when involving attempts to fraudulently obtain sensitive information from federal government databases. I commend TIGTA, DOE-OIG, FBI, and the assigned prosecutors for their outstanding collective efforts on this important matter.”
“The protection of confidential taxpayer information is among the most important responsibilities of the Internal Revenue Service and my agency,” said J. Russell George, the Treasury Inspector General for Tax Administration. “TIGTA aggressively investigates attempts to illegally access Federal tax information. Mr. Hamlett’s guilty plea should serve as a reminder to those who attempt to steal sensitive taxpayer information that they will be held accountable. TIGTA would like to thank the U.S. Attorney’s Office and our law enforcement partners for their assistance with this successful prosecution.”
“I’m proud of our staff and our law enforcement colleagues whose efforts brought about today’s actions,” said Robert Mancuso, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Technology Crimes Division, the OIG unit that works to protect U.S. Department of Education programs and network infrastructure by investigating technology crimes. “Mr. Hamlett’s guilty plea should serve as a warning to anyone who misuses the personally identifiable information of others to access protected computer systems for unlawful purposes: you will be caught and held accountable for your criminal actions.”
FBI New Orleans Field Office Special Agent-in-Charge Eric J. Rommal stated: “The FBI will continue to work with our law enforcement partners to protect our country’s information systems from exploitation and to investigate those who would seek to gain from doing so.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Treasury Inspector General for Tax Administration, and the U.S. Department of Education, Office of Inspector General, Technology Crimes Division, with valuable assistance from the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Ryan Rezaei and Alan Stevens.
The U.S. Attorney’s Office—Cyber Security Initiative
United States v. Hamlett is being prosecuted as part of the USAO’s ongoing Cyber Security Initiative. Begun in 2016, the Cyber Security Initiative brings together resources from various federal, state, and local law enforcement agencies, in an effort to investigate and prosecute cyber crime. As a result of the initiative, the USAO has significantly increased the number of cyber investigations and prosecutions. Earlier this year, in United States v. Johnson, the USAO secured a 34-month federal prison sentence for a former systems administrator who hacked into the computer system of a Georgia-Pacific plant located in Port Allen, Louisiana.
The USAO will continue to investigate and prosecute all those who commit cyber crime. For more information about the USAO’s Cyber Security Initiative, please contact Assistant U.S. Attorney Ryan Rezaei at (225) 389-0443.
PSN Brings Firearms Prosecution Training to BPD Officers Working in Public Housing CommunitiesRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office through Project Safe Neighborhoods will provide training Wednesday on federal and state firearms prosecution to Birmingham Police officers who work with Birmingham’s housing authority or patrol in its communities, announced U.S. Attorney Jay E. Town.
The U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Jefferson County District Attorney’s Office are providing the training at the request of the Housing Authority of the Birmingham District to help curb gun violence within the agency’s public housing and surrounding communities. The training will be from 11 a.m. to 3 p.m. Wednesday in the City Council Chamber at Birmingham City Hall.
“Training for our state and local partners is a key component of our PSN strategy, and we are especially pleased to be working with the Housing Authority on reducing crime on and near their properties,” Town said. “Our success in both crime prevention and enforcement will rid these communities of their worst offenders while providing a safe environment for the families who live there,” he said.
“We are extremely pleased to begin this partnership with the U.S. attorney to share resources that are designed to protect our citizens,” said HABD President and CEO Michael Lundy. “Protecting our residents is a shared responsibility, and these creative approaches will help us achieve this goal. This is about saving lives and improving the quality of life for thousands of our neighbors in public housing who seek the same peace that we all desire and deserve.”
PSN is a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gang and gun violence nationwide. The Department of Justice began PSN in 2001 and Attorney General Jeff Sessions in October announced steps to strengthen the program, directing all U.S. attorneys to implement a violent crime reduction program incorporating law enforcement and community partnerships, targeted enforcement in high-crime areas, training, and crime-prevention strategies.
HABD Public Safety Director Jeffrey Gorley contacted the U.S. Attorney’s Office seeking new ways to collaborate with law enforcement to address violence in and near public housing in Birmingham. HABD pays for additional police service in its 14 housing communities. Those officers are the High Intensity Community Oriented Police Patrol, or HICOPPS.
The U.S. Attorney's Office, Jefferson County D.A.’s Office and ATF will train the HICOPPS’ officers, as well as Birmingham officers who have public housing communities on their patrol beats, and investigators in the Birmingham Police Department’s robbery, homicide and crime-scene investigation units.
The training will address federal and state firearms laws and provide instruction on best investigative techniques to facilitate federal charges on certain violent offenses, particularly gun crimes. The training also will address individual’s constitutional rights regarding search and seizure, the right to counsel and the right to remain silent under police questioning.
Members of the media may attend the training. For more information, contact Peggy Sanford at peggy.sanford@usdoj, 205-244-2020 or, Joseph Bryant at [email protected], 205-521-0764.
Owner of Miami Home Health Agency Sentenced to More Than Nine Years in Prison for Role in $15 Million Medicare Fraud ConspiracyRead the Press Release
The owner and operator of a defunct Miami, Florida home health agency was sentenced to 115 months in prison today for his role in a $15 million conspiracy to defraud the Medicare program.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Field Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.
Yunesky Fornaris, 38, of Miami, was sentenced by U.S. District Judge Joan A. Lenard of the Southern District of Florida, who also ordered Fornaris to pay $15.1 million in restitution and forfeit the gross proceeds traced to the offense. Fornaris pleaded guilty on Oct. 3 to one count of conspiracy to commit wire fraud.
As part of his guilty plea, Fornaris admitted that between April 2010 and July 2016, he owned, controlled, and managed the business at Elite Home Care LLC (Elite), and that he and his co-conspirators submitted false and fraudulent home health care claims from Elite to the Medicare program via interstate wire. Fornaris further admitted to concealing his true ownership interest in Elite by not listing his ownership interest on the Medicare enrollment application and to enlisting patient recruiters to recruit patients to Elite in exchange for illegal bribes and kickbacks.
Fornaris admitted that he knew or had reason to believe that most of Elite’s patients were not eligible to receive home health services because they were not homebound. Had Medicare known that Fornaris paid bribes and kickbacks to attract beneficiaries to Elite, Medicare would not have paid any claims submitted on behalf of those beneficiaries.
The FBI, HHS-OIG and USSS investigated this case. Senior Litigation Counsel John A. Michelich and Trial Attorney Adam G. Yoffie of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lisa H. Miller of the Southern District of Florida, a former Fraud Section trial attorney, prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,500 defendants who have collectively billed the Medicare program for more than $12.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Omaha Man Sentenced to 7 Years for Distribution of Child PornographyRead the Press Release
Acting United States Attorney Robert C. Stuart announced today that Diego Vigil, 36, of Omaha, Nebraska, was sentenced in federal court for receiving and distributing child pornography. The Honorable Robert F. Rossiter, Jr., sentenced Vigil to 7 years imprisonment. There is no parole in the federal system. After his release from prison, Vigil will begin a ten-year term of supervised release and will be required to register as a sex offender.
On three separate dates between May 12, 2016, and January 29, 2017, officers were able to download images of child pornography from Vigil’s computer. Many of the images involved infants and toddlers.
A search warrant was executed on Vigil’s home on March 3, 2017. He admitted to downloading images of child pornography. More than 200 videos and 4,000 images involving the sexual exploitation of minors were recovered. The images involved an age range of infant and toddler to approximately 13 years.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s 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 www.projectsafechildhood.gov.
Olean Man Sentenced on Heroin and Gun ChargesRead 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 Giovanni Salmonson, 26, of Olean, NY, who was convicted of possession with intent to distribute heroin, and being a felon in possession of a firearm, was sentenced to 188 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that on January 1, 2015, Olean Police responded to a trespassing complaint near the 200 block of North 1st Street. Upon arrival, an officer spotted the defendant near 225 North 1st Street and asked Salmonson to step out of the roadway and up onto the curb. The defendant took off running. While he was running away, the officer noticed that Salmonson was wearing a black Nike backpack/drawstring bag. A foot chase ensued and the defendant entered a backyard at 121 North 2nd Street after throwing the black Nike bag over a fence into another yard. An officer ordered Salmonson to the ground, and he complied. After retrieving the bag, officers recovered a .22 caliber revolver from inside. Subsequently, officers also recovered 14 bags of heroin, six suboxone pills and $851 dollars in United States currency.
The sentencing is the culmination of an investigation on the part of the Olean Police Department, under the direction of Chief Jeff Rowley; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
North Suburban Man Arrested on Child Pornography Charges While on Bond for Prior Child Pornography CaseRead the Press Release
CHICAGO — A north suburban man who was free on bond while awaiting trial in a federal child pornography case has been arrested for allegedly furnishing sexually explicit images of children to an undercover law enforcement agent.
RONALD FEDER, 30, of Skokie, was arrested Thursday after he handed the undercover agent a thumb drive containing child pornography, according to a criminal complaint and affidavit filed in federal court in Chicago. Feder met with the undercover agent in a coffee shop in Lincolnwood after the pair had communicated online for nearly three weeks, the complaint states. The online communication and subsequent meeting occurred while Feder was free on bond while awaiting trial on a child pornography charge pending in federal court in Chicago.
The complaint charges Feder with two new counts of transporting and distributing child pornography. A detention hearing is set for Dec. 13, 2017, at 9:00 a.m., before U.S. Magistrate Judge Jeffrey Cole in Chicago.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Wisconsin Attorney General Brad Schimel. The Skokie Police Department provided valuable assistance.
According to the complaint, Feder used the online aliases “Tom Bradly” and “Jack Wayne” to communicate with the undercover agent, who was posing as an individual interested in “taboo” activities. During online and telephone communications in late November and early December, Feder informed the undercover agent that his actual name was Ron, and he described his interest in child pornography, the complaint states. Feder offered to trade images of child pornography with the undercover agent in exchange for the agent setting up an encounter between Feder and the agent’s minor nephew and niece, during which Feder would molest the children, the complaint states.
In the prior case, Feder was indicted in September 2016 for allegedly possessing a sexually explicit image of a minor under the age of twelve. The conduct allegedly occurred while Feder was working as a civilian employee of the Armed Forces and living overseas. Feder pleaded not guilty to that charge and was ordered released on bond in September 2016, with a condition of the release prohibiting him from accessing the internet.
The public is reminded that neither a complaint nor an indictment is evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The two charges in the complaint each carry a mandatory minimum sentence of five years’ imprisonment and a maximum sentence of 20 years’ imprisonment. The count in the prior indictment is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Andrew Dixon and Special Assistant U.S. Attorney Jennifer Maguire.
If you believe you are a victim of sexual exploitation, you are encouraged to call the National Center for Missing and Exploited Children at 1-800-843-5678. The hotline is available 24 hours a day, seven days a week.
North Dakota-Based Payment Processor Pleads Guilty to Facilitating Illegal Payday Lending Across the United StatesRead the Press Release
PHILADELPHIA – Intercept Corporation, d/b/a “InterceptEFT” (“Intercept”), a privately held corporation headquartered in Fargo, North Dakota, has pleaded guilty to an Information charging the company with operating an illegal money transmittal business, announced United States Attorney Louis D. Lappen.
Intercept was a “third party payment processor” which processed electronic funds transfers for its clients through the Automated Clearing House (“ACH”) system, an electronic payments network that processed financial transactions without using paper checks. Among Intercept’s clients were numerous business entities that issued, serviced, funded, and collected debt from short-term, high-interest loans, commonly referred to as “payday loans,” because such loans are supposed to be repaid when the borrower received his or her next paycheck or regular income payment. Payday loans are effectively illegal in more than a dozen states, including Pennsylvania, and are highly regulated in many other states.
Various payday loan companies hired Intercept to move large sums of money between the bank accounts of the payday loan companies and their borrowers. These money transfers included the funding of payday loans by the companies to the borrowers, and the collection of loan proceeds from the borrowers to the payday loan companies. Among the payday loan companies that employed Intercept to collect payday loan debt from borrowers who resided in states where such loans were illegal, and in states where there such loans were regulated, were payday companies owned, operated, controlled, and financed by Charles M. Hallinan (recently convicted of illegal payday lending by a federal jury in the Eastern District of Pennsylvania), Scott Tucker (recently convicted of illegal payday lending by a federal jury in the Southern District of New York) and Adrian Rubin (who pleaded guilty to illegal payday lending in the Eastern District of Pennsylvania).
Intercept used the ACH system to transfer funds to and from the bank accounts of borrowers located across the United States, including hundreds of thousands of customers who lived in states that outlawed and/or regulated payday loans. No later than May 2008, Intercept was made specifically aware that one of Intercept’s payday lending clients made a payday loan in violation of Connecticut law. Subsequently, in June 2009, Intercept was again notified that one of its payday lending clients made an illegal payday loan, but this time, the loan was in violation of California law. In 2012, Intercept was instructed by its bank to stop processing payments for payday lending companies for loans made to borrowers in states where such loans were prohibited or restricted. And in August 2012, a payday lending client specifically notified Intercept’s leadership that payday loans were being made in states that outlawed payday lending, including in Pennsylvania. Yet Intercept continued facilitating payday lending operations for its clients in states that outlawed and/or regulated payday loans until at least August 2013.
In total, Intercept processed hundreds of millions of dollars of payments for its payday lending company clients, and earned millions of dollars in profits, as a result of assisting payday lenders in making illegal loans and collecting unlawful debt.
As a result of its criminal conviction, Intercept must pay forfeiture to the United States in the amount of all funds involved in or traceable to the charged offense (and no less than $500,000), a potential corporate fine of up to $500,000, and a $400 corporate assessment.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorneys and Mark B. Dubnoff and James Petkun.
Niagara Falls Man Sentenced on Bomb Charge That Led to the Loss of His LegRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced that Michael O’Neill, 47, of Niagara Falls, NY, who was convicted of unlawful possession of a destructive device, was sentenced to 30 months in prison by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that in the early hours of July 21, 2015, the Niagara County Sheriff’s Office responded to a 911 call regarding an injury at 6761 Walmore Road in Wheatfield, NY. When emergency personal arrived at the scene, they discovered the defendant with a significant injury to his lower left leg, apparently the result of an explosion. O’Neill was immediately taken by Mercy flight to ECMC, where his left leg was amputated below the knee.
Subsequently, personnel from the Erie County Bomb Squad entered the unattached garage of the residence where the explosion occurred and discovered what appeared to be an area where explosive devices were being manufactured. Explosive powder and BB pellets were in plain view. Upon further inspection, Bomb Squad personnel discovered six destructive devices, five of which were constructed of hard cardboard tubing with sealed ends and a fuse. One of those five devices was labeled, “Powder w/Nails.” The sixth device was made out of a flashlight with sealed ends and a hole with a wick coming from the center. Other items discovered on the property included two pill bottles labeled as flash powder, a bag of potassium perchlorate, 36 shotgun shells reloaded with fragments inside, a plastic bottle of triple seven powder, a plastic box of triple seven pellets, and a plastic bottle labeled as triple seven powder.
Later on July 21, O’Neill told investigators that he had watched a video on YouTube regarding stump removal and had made a couple of M80’s. When the explosion occurred, O’Neill stated he was using extra materials from the M80’s to make “something.” The defendant said he was using a heat gun, which ignited what he was making. O’Neill dropped the item he was making on the floor of the garage and attempted to stomp it out when it exploded.
The sentencing is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, and the Niagara County Sheriff’s Department, under the direction of Sheriff James Voutour.
New Haven Heroin Dealer Sentenced to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EFRAIN ROLON-DONES, 29, of New Haven, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 15 months of imprisonment, followed by three years of supervised release, for his role in a heroin trafficking ring.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad targeted a New Haven-based heroin trafficking organization. The investigation, which included court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, revealed that members of the organization regularly purchased bulk quantities of heroin from suppliers located in the Bronx, New York, and sold the heroin through a network of redistributors, including ROLON-DONES, on the streets of New Haven.
In October 2016, investigators made two controlled purchases of heroin, totaling approximately 20 grams, from ROLON-DONES
The investigation has resulted in federal charges against 24 individuals.
ROLON-DONES has been detained since his arrest on March 16, 2017. On August 14 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.
The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, Hamden, Milford, Monroe, New Haven, Shelton, Wallingford and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Patrick F. Caruso.
New Bedford Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
BOSTON – A New Bedford man pleaded guilty today in federal court in Boston for aiding and abetting the distribution of methamphetamine.
Alexander Gomes, 27, pleaded guilty today to one count of aiding and abetting the distribution of methamphetamine. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 14, 2018.
On Dec. 12, 2016, Gomes accompanied co-defendant Peter Lobo to a meeting with an undercover agent posing as a Maine methamphetamine dealer. At that meeting, Lobo distributed a half pound sample of methamphetamine to the agent. Lobo introduced Gomes to the undercover agent so that Gomes could conduct drug business when Lobo was out of town. Two days later, Gomes and Lobo meet the agent again, and the agent paid Lobo $4,000 for the half pound, and Lobo gave an additional four pounds of methamphetamine to the agent. Lobo and Gomes were arrested shortly after they began to drive away. At the time of their arrest, Lobo had $3,000 in his pocket and Gomes had $1,000 hidden in his sock. Subsequent drug analysis determined that the substance consisted of approximately 1,777 grams of 99% pure d-methamphetamine hydrochloride, also known as “Ice.”
Lobo pleaded guilty to distributing methamphetamine, and on Nov. 29, 2017, he was sentenced to five years in prison.
Gomes faces a sentence of no greater than 20 years in prison, a minimum of three years of supervised release and a fine of up to $1 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 and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office, made the announcement today. Assistant U.S. Attorney Theodore B. Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
National Security Division Announces Agreement with Netcracker for Enhanced Security Protocols in Software DevelopmentRead the Press Release
Netcracker Technology Corp. (NTC), a global software company serving the telecommunications industry, has agreed to implement enhanced security protocols for software development, implementation, and its other services to clients, many of whom are part of the United States’s critical communications infrastructure, announced Dana Boente, Acting Assistant Attorney General of the Justice Department’s National Security Division and U.S. Attorney for the Eastern District of Virginia. NTC is headquartered in Waltham, Massachusetts, and is a wholly owned subsidiary of NEC Corp.
The enhanced security protocols are designed to increase information security by regulating remote access to U.S. company networks and transfers of sensitive data. The protocols are being implemented as part of a Non-Prosecution Agreement, which resolves a criminal investigation described in a statement of facts, both of which are accessible here and here.
"We are pleased Netcracker has agreed to invest in enhanced security protocols that will reduce the risk of unauthorized access to its clients’ sensitive data,” said Acting Assistant Attorney General Boente. “As threats to our critical infrastructure increase, especially from abroad, these protocols serve as a model for the kind of security that U.S. critical infrastructure should expect from the firms they use to develop, install, and maintain technology in their networks.”
Netcracker, like most major software companies, develops software in many countries. Netcracker worked as a subcontractor on two federal government contracts with the Defense Information Systems Agency (DISA), a combat support agency of the U.S. Department of Defense, and performed some product-support work from locations outside the United States, including Russia. The government determined in its investigation that various factors had resulted in an unacceptable degradation of the level of security DISA had intended to achieve. Netcracker denied wrongdoing and worked with the government to develop enhanced security protocols.
Under the agreement, Netcracker will make the enhanced security plan available to other members of the industry.
This case was investigated by the General Services Administration, Office of Inspector General; the FBI’s Washington Field Office; and the Department of Defense, Office of the Inspector General. Senior Trial Attorney Heather Schmidt and former Trial Attorney Wade Weems of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division handled this case with Assistant U.S. Attorneys Whitney Russell and Jay Prabhu of the U.S. Attorney’s Office of the Eastern District of Virginia.