Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 7 December 2017
Department of Justice Recovers Millions in Criminal Proceeds via a First Time Forfeited Asset Sharing by Guernsey OfficialsRead the Press Release
United States prosecutors and investigators are recovering more than $14 million linked to two U.S. criminal cases, in which the money was laundered via Guernsey, thanks to a first-time ever sharing of forfeited assets by Guernsey officials. Guernsey is a significant offshore financial center located in the English Channel near the coast of France.
“The United States and Guernsey have a valued and close law enforcement relationship, and this first-ever asset sharing from Guernsey to the United States is the latest outward sign of our strong ties,” said John P. Cronan, Acting Assistant Attorney General for the Department of Justice’s Criminal Division. “Today’s announcement sends a strong message that the Department of Justice and our counterparts in Guernsey will not rest until defendants are brought to justice and denied the illicit proceeds of their crimes.”
Guernsey Attorney General Megan M.E. Pullum, Q.C., and Guernsey Solicitor General Robert M. Titterington, Q.C., announced their commitment to transfer the funds to the United States under a bilateral asset sharing agreement that entered into force between Guernsey and the United States in February 2015. Their announcement came during a meeting with U.S. officials at the Department of Justice’s headquarters today.
The $14.3 million to be shared from Guernsey represents one half of the net proceeds recovered in that jurisdiction that stem from the two U.S. criminal cases, which are discussed below. Guernsey will retain an equal amount.
Most of the funds being transferred from Guernsey – more than $12.77 million – stem from Guernsey’s cooperation in connection with the prosecution of defendant Raymond Bitar and his associates by the United States Attorney for the Southern District of New York. In April 2013, Bitar pleaded guilty to unlawful internet gambling and conspiracy to commit bank fraud and wire fraud. He admitted to defrauding customers of his Full Tilt Poker operation by lying to them about the security of their funds held by Full Tilt Poker, and by falsely promising players that their funds would be protected in segregated accounts. Instead, Bitar and his accomplices used players’ funds for whatever purposes that Bitar directed, including to pay him and others millions of dollars and to cover the operating expenses of Full Tilt Poker. Ultimately, Full Tilt collapsed and was unable to pay players approximately $350 million that it owed to them. In connection with his plea and sentencing, Bitar agreed to forfeit $40 million dollars in money and other property derived from his offenses, including the funds he maintained in Guernsey.
The United States Marshals Service expended significant work on the post-conviction tracing, recovery, and liquidation of the criminal assets of Bitar and his associates, both domestically and internationally. Between November 2012 and June 2015, the Justice Department’s Office of International Affairs sent a series of three Mutual Legal Assistance requests to the Guernsey authorities seeking their assistance with the tracing, restraint, forfeiture and recovery of the proceeds that had been laundered to Guernsey. In response to those requests, the Guernsey authorities used domestic proceedings to block the Bitar accounts, provided bank records that facilitated the U.S. investigation and forfeiture, and ultimately gave effect to the final U.S. judgment of forfeiture and liquidated the accounts.
The remaining funds to be shared by Guernsey – more than $1.56 million – stemmed from the prosecution of defendant Paul Hindelang and his associates by the United States Attorney for the Southern District of Florida. Hindelang was large-scale importer of Colombian marijuana into the United States during the 1970s and 1980s. Similar to the Bitar case, Guernsey’s assistance in connection with the Hindelang case ultimately included the registration and enforcement of a U.S. judgment of forfeiture against assets that were laundered to Guernsey and the liquidation of those assets.
This is the second time assets have been shared pursuant to a 2015 asset sharing agreement between the United States and Guernsey. In 2016, the Department of the Treasury shared more than $2 million with Guernsey in 2016. Guernsey has long been a reliable partner with the United States in the areas of anti-money laundering and forfeiture cooperation.
Representatives from the United States Marshals Service, Homeland Security Investigations, and the Office of International Affairs, who provided substantial assistance in this matter, also were on hand for the asset sharing announcement.
Cuyahoga Falls man indicted for making death threats to wife in NevadaRead the Press Release
A federal grand jury returned a two-count indictment charging a Cuyahoga Falls man with making interstate death threats, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Wei Li, 28, is charged with one count of making an interstate threat of murder and one count of obstructing an official proceeding.
Li transmitted a threat from Cuyahoga Falls, Ohio to Nevada on Nov. 6 in which he threatened to murder his wife and others. His text messages included: “You will be dead,”, “I am not crazy. I am a high functioning sociopath…”, “Automatic rifle. I can't find you, then I just sweep the place. Make it big...” and “...We have 1000 people in our church. I will make the biggest one in history.”, among others, according to the indictment.
Li deleted text messages during a Nov. 10, interview with FBI agents, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Cuyahoga Falls Police Department. The case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Colorado Man Sentenced to 121 Months for Federal Drug Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Saul Cerros, 36, of Northglenn, Colo., was sentenced today in federal court in Las Cruces, N.M., to 121 months in prison for his conviction on methamphetamine trafficking charges. Cerros will be on supervised release for five years after completing his prison sentence.
Cerros was arrested on Sept. 28, 2016, on a four-count indictment charging him with methamphetamine trafficking offenses. Cerros was charged with conspiring to distribute methamphetamine from March 27, 2015 through March 31, 2015, and with distributing methamphetamine twice on March 27, 2015, and again on March 31, 2015. According to the indictment, Cerros committed the offenses in Dona Ana County, N.M.
On April 10, 2017, Cerros pled guilty to the indictment. In entering the guilty plea, Cerros admitted selling an aggregate of 891.56 grams of pure methamphetamine to undercover law enforcement agents on three separate occasions; twice on March 27, 2015, and a third time on March 31, 2015. Cerros further admitted that he personally smuggled the methamphetamine involved in one of the drug deals into the United States from Mexico.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and was prosecuted by Assistant U.S. Attorney Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Citizen of Mexico Pleads Guilty to Illegally Reentering the United StatesRead the Press Release
Roanoke, VIRGINIA – A Mexican citizen, who had previously been deported from the United States on two occasions, pleaded guilty earlier this week to illegally reentering the United States, United States Attorney Rick A. Mountcastle announced.
Edi Jose Manuel, 37, a.k.a. “Edy Manuel,” “Edi Jose-Martinez,” “Edy Manuel Jose,” “Jose Manuel Ramos,” “Jose Manuel,” “Manuel Rams,” “Manuel Perez-Perez,” pleaded guilty this week to being a convicted felon who illegally reentered the United States after being previously deported.
According to evidence presented at Manuel’s guilty plea hearing, the defendant was convicted in 2004 in the Circuit Court of Franklin County for four counts of forging public documents. Manuel was sentenced to prison time and was deported following his prison sentence.
At an unknown time after being deported in 2008, Manuel illegally reentered the United States a second time. On or about August 31, 2017, while incarcerated in the Martinsville City Jail on a driving while intoxicated charge, a fingerprint card for the defendant was submitted and revealed the prior convictions for the defendant. Martinsville Jail officials contacted officials with Immigration and Customs Enforcement to alert them of the defendant’s presence in the jail.
The investigation of the case was conducted by the United States Immigration and Customs Enforcement, Homeland Security Investigations. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Charter School Administrator Sentenced to 18 Months in PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that Sean Moore, age 44, of New Castle, Del., was sentenced by U.S. District Court Judge Richard G. Andrews to 18 months of imprisonment, which was the sentence requested by the government. The sentencing came after Moore pleaded guilty to three counts of federal program theft on November 2, 2016.
According to court records and statements made in open court, between 2011 and 2015, while serving as the Director of Finance and Operations for the Family Foundations Academy, a charter school in New Castle, Del., Moore embezzled $161,871 from the school. Moore accomplished this embezzlement in a number of ways, to include opening an unauthorized credit card in the school’s name, buying iPads with school funds and then selling them online for cash, and skimming the school’s fundraising account. Moore used the embezzled money to buy personal items such as food, entertainment, electronics, gas, travel, shoes, jewelry, and hotels.
Prior to sentencing, Moore claimed that he was suffering from a “severe level of sexual addiction and shopping addiction,” which contributed to his commission of the offense.
Acting U.S. Attorney Weiss said, “Acting out of self-interest and greed, Mr. Moore stole money intended for the children he promised to serve. That is egregious. The sentence imposed today holds him accountable for cheating children, their families, and the taxpayers.”
“Mr. Moore knowingly and willfully abused his position of trust for personal gain and did so at the expense of the educational development of children. That is unacceptable,” said Geoffrey Wood, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Mid Atlantic Regional Office. “I’m proud of the work of OIG special agents and our law enforcement partners for holding Mr. Moore accountable for his criminal actions. The OIG will continue to aggressively pursue those who steal Federal education funds for their own purposes. America’s students and taxpayers deserve nothing less.”
This case is the result of an investigation conducted by the FBI, the U.S, Department of Education – Office of the Inspector General, and the Delaware Attorney General’s Office, with assistance from the Delaware Office of Auditor of Accounts. Assistant U.S. Attorney Elizabeth L. Van Pelt is prosecuting the case on behalf of the United States.
Charleston dentist sentenced to five years in federal prison for health care fraudRead the Press Release
CHARLESTON, W.Va. – A Charleston dentist who falsely billed West Virginia Medicaid and West Virginia Medicaid Managed Care Organizations (MCOs) for more than $700,000 was sentenced today to five years in federal prison, announced United States Attorney Carol Casto. Antoine Skaff, 58, previously pleaded guilty to health care fraud. Skaff also previously entered into a civil settlement with the U.S. Attorney’s Office, the Office of Inspector General for the U.S. Department of Health and Human Services, the West Virginia Department of Health and Human Resources (DHHR), DHHR’s Bureau for Medical Services, and the West Virginia Medicaid Fraud Control Unit, in which he agreed to pay treble damages of $2.2 million, or three times the loss suffered by West Virginia Medicaid.
Skaff, a dentist, fraudulently billed West Virginia Medicaid and Medicaid MCOs for dental procedures that he did not actually perform on Medicaid recipients. Skaff’s scheme to defraud Medicaid and its MCOs lasted more than five years and involved upcoding and double billing.
Skaff admitted that he falsely inflated his billings, a practice commonly known as upcoding, often by falsely claiming reimbursement for procedures involving impacted teeth. Typically, only wisdom teeth are impacted. However, Skaff admitted that he upcoded billings for tooth extractions by falsely informing Medicaid and its MCOs that he performed more complex procedures, such as extractions of impacted teeth, when he had actually performed simple extractions. Because Skaff upcoded these extractions, Medicaid and its MCOs paid Skaff $172 per extraction of each tooth, rather than $80 per tooth for a simple extraction. Skaff additionally admitted that he falsely upcoded at least 7,490 tooth extractions, billing more than $1.3 million for those procedures. He further admitted that if those extractions were medically necessary, and if had actually performed the procedures he claimed, then he should have been paid only $599,200.
Skaff also admitted that he submitted false bills and received payment twice for removing the same teeth from the same patients. Skaff first billed and received payments from Medicaid for the extraction of patients’ specific teeth. He then falsely billed and received payment again from Medicaid MCOs for extraction of the same teeth. Skaff admitted that he received $56,930 from his false double billings.
The West Virginia Medicaid Fraud Control Unit, the FBI, the Office of Inspector General for the U.S. Department of Health and Human Services, and the Affirmative Civil Enforcement investigator from the U.S. Attorney’s Office conducted the investigation. Assistant United States Attorney Meredith George Thomas is in charge of the criminal prosecution. Assistant United States Attorney Jennifer Mankins is responsible for the civil settlement. United States District Judge Joseph R. Goodwin imposed the sentence.
- Follow us on Twitter: SDWVNews
Career Criminal Sentenced to 180 Months in Federal Prison for Distribution of Methamphetamine After Being Released from State Prison Less Than One Year PreviouslyRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Jesus Torres, age 39, of Pasco, Washington, was sentenced on two counts of distribution and possession with the intent to distribute methamphetamine. Senior United States District Judge Edward Shea found that Torres was a career offender based upon his extensive criminal history and sentenced him to an180-month term of imprisonment and a five-year term of court supervision following release from Federal prison.
According to information disclosed during court proceedings, Jesus Torres was released from his third 5-year sentence in state court in May 2016. By January 2017, the METRO Drug Task Force in Tri-Cities learned that Torres, a confirmed Soreno gang member, was back in the business of distributing methamphetamine and heroin, utilizing multiple residences and recruiting young adults to work for him to include a 20 year old family member. The METRO Drug Task Force partnered with the FBI Safe Streets Task Force in Tri-Cities during the investigation which culminated in the execution of multiple search warrants and the arrest of Jesus Torres. During the search warrants, law enforcement identified that one of the locations was utilized as a heroin den in the Tri-Cities area, sourced by Torres as well as a loaded firearm that was found to be in Torres’ possession during the investigation.
Joseph H. Harrington said, “Prosecuting drug-trafficking and firearms-related crimes continues to be a priority for the United States Attorney’s Office for the Eastern District of Washington. In addition to mandatory terms of imprisonment for methamphetamine-trafficking offenses, previously convicted felons, gang members and violent felons should be aware that there are serious criminal penalties for repeated offenders who have no respect for the law and that this Office is committed to prosecuting aggressively those offenders who remain a danger to the communities in the Eastern District of Washington.”
This case was investigated by the METRO Drug Task Force and the FBI Safe Streets Task Force in Tri-Cities Washington. This case was prosecuted by Stephanie Van Marter, an Assistant United States Attorney for the Eastern District of Washington.
Cambria County Woman Pleads Guilty to Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Portage, Pa., pleaded guilty in federal court in Johnstown to charges of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
Dawn M. Strayer, 36, of Portage, Pa., pleaded guilty to one count of the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 18, 2016, Strayer distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for April 5, 2018, at 10:00 a.m. The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Strayer.
California man sentenced to 144 months in prison for conspiring to transport methamphetamineRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from California was sentenced Wednesday to 12 years in prison for conspiring to transport methamphetamine.
Maquel L. Shelby, 37, of Hawthorne, Calif., was sentenced by U.S. District Judge Donald E. Walter on one count of conspiracy to possess with intent to distribute methamphetamine. He was also sentenced to three years of supervised release. According to the August 30, 2017 guilty plea, a Louisiana State trooper conducted a traffic stop on a Dodge Durango Shelby was driving January 31, 2017 on Interstate 20 in Bossier Parish. Codefendant Bryanna Warren, 27, also of California, was riding in the car along with two children, ages 5 and 2. After being questioned, Shelby admitted there was a pistol in the vehicle’s glove compartment. As the trooper walked over to the vehicle to speak to Warren who was seated in the front passenger seat, she pulled out a loaded S&W .40 caliber pistol from a diaper bag and handed it to the trooper. She admitted to trying to hide the firearm after taking it from the glove compartment. The vehicle was also searched, and troopers found 2 pounds of methamphetamine in a backpack. After the arrest, Shelby admitted he had picked up the methamphetamine from Shreveport and was instructed to bring it to Monroe, La.
Warren pleaded guilty on May 25, 2017 to one count of possession of a firearm in furtherance of drug trafficking and was sentenced on October 19, 2017 to five years in prison and three years of supervised release.
The DEA and Louisiana State Police conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Businessman Sentenced to 33 Months in Prison for Defrauding Real Estate InvestorsRead the Press Release
PITTSBURGH – A resident of Allegheny County, Pennsylvania has been sentenced in federal court to 33 months incarceration and 3 years supervised release on his conviction of wire fraud, Acting United States Attorney Soo C. Song announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Golan Barak, 50, of Pittsburgh, PA.
According to the information presented to the court, between 2013 and 2016, Barak falsely induced foreign nationals, mostly of Israeli descent, to invest with him in real estate in Pittsburgh, Pennsylvania, but fraudulently dissipated investors’ money for personal and business expenses, or to buy other properties, or to pay other investors. In particular, Barak defrauded two Israeli investors out of approximately $1,400,000 connected with the purchase of 12 pieces of real estate throughout the Pittsburgh area. The purchase money was used instead by Barak to purchase other properties, or for Barak’s expenses in his management company called Ergo Management.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Acting U.S. Attorney Soo C. Song commended the FBI for the investigation that led to the successful prosecution of Golan Barak.
Buffalo Man Pleads Guilty to Production and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Duke Jimenez, 34, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara, to production and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 50 years, and a fine of $500,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between February 10, 2014, and October 27, 2014, the defendant engaged in sexual contact with a three-year-old female child entrusted to his care. During that contact, Jimenez used his cellular telephone to create visual depictions of the victim engaging in sexually explicit conduct. The images were located on the defendant’s SD card.
Jimenez was arrested by the Buffalo Police Department on November 18, 2015, at which time the defendant’s telephone was seized. A subsequent search of phone and SD card in the phone revealed 18 image files which depicted the victim engaging in the sexually explicit conduct.
The plea is the result of an investigation by the Federal Bureau of Investigation under the direction of Adam S. Cohen, Special Agent-in-Charge and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for April 16, 2018, at 12:30 p.m. before Judge Arcara.
Barberton man will be deported for lying about his actions during the war in the former YugoslaviaRead the Press Release
A Barberton man will be deported after pleading guilty to lying about his actions during the war in the former Yugoslavia, said U.S. Attorney Justin Herdman and Steve Francis, Special Agent in Charge of HSI’s Detroit office.
Oliver Dragic, 42, pleaded guilty to possessing and fraudulently obtained immigration documents. Under the terms of his plea agreement, he will be deported.
Dragic failed to disclose his paramilitary police service for the Republika Srpska, a rogue state unrecognized by the international community that attempted to create an ethnically pure Serbian nation within the ethnically-mixed territory of the Yugoslav Republic of Bosnia-Herzegovina. Dragic completed police training in Serbia in 1994 and returned to Bosnia, where he voluntarily joined a special police unit that joined in Republika Srpska’s army during military operations, according to court documents.
Dragic applied for refugee status in the U.S. in May 1998, claiming he was a victim of the Bosnian war. He claimed in that application that he had never worked, when in fact he had served in the paramilitary unit, according to court documents.
“This defendant claimed to be a refugee but served in a paramilitary force during the war in the former Yugoslavia,” Herdman said.
“The investigation, prosecution, and ultimate removal of individuals like Dragic are paramount to the mission of Homeland Security Investigations and to the safety our communities,” Francis said.
Assistant U.S. Attorneys Matt Cronin and Om Kakani prosecuted the case following an investigation by HSI Special Agent Matt Hamulak and Historian Michael MacQueen.
Members of the public who have information about foreign nationals suspected of engaging in human rights abuses or war crimes are urged to contact HSI by calling the toll-free tip line at 1-866-347-2423 or internationally at 001-1802-872-6199. They can also email [email protected] (link sends e-mail).
Aviso Importante Servicio de Rentas Internas (IRS) advirtió hoy sobre una estafa telefónica sofisticada dirigida a los contribuyentesRead the Press Release
La Fiscal Federal Rosa Emilia Rodríguez-Vélez de la Oficina de Fiscalía Federal Distrito de Puerto Rico anuncia que el Servicio de Rentas Internas (IRS) advirtió hoy sobre una estafa telefónica sofisticada dirigida a los contribuyentes.
Se les dice a las víctimas que deben dinero al IRS y que deben pagarlo inmediatamente, mediante una tarjeta de débito pre-pagada o transferencia bancaria. Si la víctima se niega a cooperar, la amenazan con arrestarla, deportarla, o suspenderle su licencia de negocio o de conducir. En muchos casos, la persona que llama se vuelve agresiva.
Otras características de esta estafa incluye:
- Los estafadores usan nombres y número de placa falsos al igual que números de emblema del IRS. Por lo general usan nombres y apellidos comunes para identificarse.
- Los estafadores pueden ser capaces de saber los últimos cuatro dígitos del número de seguro social de la víctima.
- Los estafadores copian el número gratuito del IRS para que aparezca en su identificador de llamada y la víctima piense que la llamada es del IRS.
- Los estafadores a veces envían falsos correos electrónicos en apoyo a sus llamadas falsas.
- Las víctimas oyen ruido de fondo de otras llamadas que se están realizando que simulan un centro de llamadas.
- Después de amenazar a las víctimas con una sentencia carcelaria o con la revocación de su licencia de conducir, los estafadores cuelgan la llamada e inmediatamente llaman otros estafadores fingiendo ser de la policía local o del Departamento de Vehículos Motorizados (DMV, por sus siglas en inglés), y el identificador de llamadas respalda sus afirmaciones.
Si recibe una llamada de alguien diciendo ser del IRS, esto es lo que debe hacer:
- Si usted sabe que adeuda impuestos o si piensa que podría deber, llame al IRS al 1.800.829.1040. Las personas que contestan esa línea telefónica pueden ayudar con asuntos de pago – si es que en realidad existe tal problema.
Si usted sabe que no debe impuestos y no tiene ningún motivo para pensar lo contrario (por ejemplo, si nunca recibió una cuenta o la persona que lo llamó hizo una amenaza falsa como las descritas anteriormente), entonces llame y reporte el incidente al Treasury Inspector General for Tax Administration, (en inglés) al 1.800.366.4484.
Aurora Man Indicted and Arrested for Coercion and Enticement, Transportation as Well as Production of Child PornographyRead the Press Release
DENVER – Ryan Charles McCraw, age 37, of Aurora, Colorado, was arrested following a federal grand jury indictment on charges of coercion, enticement and production of child pornography, U.S. Attorney Bob Troyer and FBI Denver Division Special Agent in Charge Calvin Shivers announced. McCraw, who is in federal custody, appeared today before U.S. Magistrate Judge Nina Y. Wang where he was arraigned and entered a not guilty plea. He is being detained under an order from the District of Kansas.
McCraw was indicted by a federal grand jury in Denver on October 26, 2017. He first appeared in U.S. District Court in Denver on December 4, 2017 to be advised of his rights and the charges pending against him. According to the indictment as well as information presented in open court, McCraw allegedly met underage boys living in the Denver metro area through online chat services. McCraw engaged in sexually explicit conversations with the boys over the course of months, asking them to send him sexually explicit images online. He enticed the boys to meet with him, picking them up in his car if they were too young to drive. He took them to his residence and engaged in sex acts with them. McCraw filmed the sex acts and took still images of the boys, including images of bondage. He continued this course of conduct for over a year with multiple victims. McCraw boasted online that he had “trained” 12 other boys.
Authorities believe that there could be other victims of the defendant. To that end, attached please find a photo of the defendant released in hopes of determining whether there are other child victims. If you are a victim or know of someone who could be a victim of the defendant, you are asked to contact the FBI at 970-663-1028.
McCraw faces two counts of coercion and enticement and attempted coercion and enticement. Those two counts carry penalties of not less than 10 years and up to life in federal prison. He also faces two counts of production of child pornography, both of which carry penalties of not less than 15 years, and up to 30 years imprisonment. He also faces one count of transportation of child pornography, which carries for the first offense a penalty of not less than 5 years, and up to 20 years in prison.
The FBI, Longmont Police Department and Aurora Police Department investigated this matter. The 20th Judicial District assisted with this matter. The defendant is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
The defendant is presumed innocent unless and until proven guilty in a court of law
Arizona Man Convicted of Conspiracy to Defraud the Government with Respect to Claims of FraudRead the Press Release
DENVER – On November 30, 2017, Tramell Thomas, of Phoenix, Arizona, was found guilty by a jury in U.S. District Court in Denver on all counts charged stemming from a financial aid fraud scheme, announced United States Attorney Bob Troyer. Thomas was convicted of one count of conspiracy to defraud the government through 181 false Free Applications for Federal Student Aid (FAFSAs). Thomas was also convicted of six counts of aiding and abetting mail fraud resulting from the mailing of debit cards that contained federal student aid to addresses under the conspirators’ control.
In sum, the conspirators visited Department of Corrections websites for the states of Colorado, Arizona, Florida, Illinois, and Ohio, and they retrieved the names, dates of birth, and release dates of state inmates. Armed with this information, one of the conspirators obtained these inmates’ social security numbers through her employment at a bank. Once the conspirators had this information, they filled out FAFSAs requesting federal student aid to attend community colleges in Colorado and Arizona. The conspirators chose inmates serving long prison sentences, believing that these inmates were less likely to notice that their identities had been stolen. All told, the conspirators filed claims seeking approximately $1.3 million dollars. The Department of Education paid out approximately $582,000, with $419,000 of these funds forwarded to the conspirators in the form of debit cards. These funds were to be used for authorized living expenses while attending college. The remainder of the money was paid to the community colleges. Thomas’s conspirators, Heather Carr, Mercedes Diaz, and Marcelle Green, have all pled guilty and await sentencing.
“The expert investigative team and sophisticated prosecutors did a remarkable job,” said U.S. Attorney Bob Troyer. “These thieves received a well-deserved education in federal justice.”
“Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality, it’s not a personal slush fund. As the law enforcement arm of the U.S. Department of Education, ensuring that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions is a big part of our mission,” said Adam Shanedling, Special Agent in Charge of the U.S. Department of Education Office of Inspector General's Western Regional Office. "That’s why I’m proud of the work of OIG special agents and our law enforcement colleagues for holding Mr. Thomas accountable for his criminal actions.”
“The U.S. Postal Inspection Service is committed to ensuring that these types of predatory schemes are investigated aggressively,” said Acting U.S. Postal Inspector in Charge Nicole Davis of the Denver Division. “It is imperative that we continue to work with our partners to protect those vulnerable individuals in our society who unknowingly fall prey to these schemes. We cannot allow fraudsters to utilize the U.S. mail to further their schemes.”
At his April 12, 2018 sentencing hearing, Thomas faces up to 10 years in federal prison on his conspiracy conviction and up to 20 years in federal prison on each of his six mail fraud convictions. He also faces a fine of up to $250,000 on each count.
This case was investigated by the United States Department of Education, Office of Inspector General and the United States Postal Inspection Service.
This case was prosecuted by Assistant U.S. Attorneys Martha A. Paluch and Bryan D. Fields.
Amarillo Man Sentenced to 189 Months in Federal Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
AMARILLO, Texas —Rogelio Xochitl Amparan, 29, was sentenced this week by U.S. District Judge Sidney A. Fitzwater to 189 months in federal prison terms for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Amparan has been in custody since his arrest in June 2017 on a related federal criminal complaint. He pleaded guilty in September 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine.
Co-defendants Miguel Angel Bravo-Farias, 41, and Hector Terrazas, 25, were also arrested in June 2017. Bravo-Farias and Terrazas pleaded guilty to their roles and are awaiting sentencing.
According to the plea agreement factual resume, on June 8, 2017, an operation was conducted to purchase 20 pounds of methamphetamine from Bravo-Farias, an illegal immigrant, and Terrazas. When law enforcement agents met with Bravo-Farias and Terrazas they were in possession of a box containing a large amount of methamphetamine and were arrested at the scene.
During the operation, Amparan was observed leaving Terrazas’ residence. He was stopped by law enforcement and arrested for having a suspended registration.
A search of Terrazas’ residence revealed 2 containers with crystal like residue and 34 empty glass bottles with crystal like substance on the spouts in a bedroom. In the refrigerator, there were multiple containers containing a total of approximately 5,498 grams of liquid methamphetamine. In the same room was a closet that was converted into a work station with drying equipment. The closet contained fans and opened igloo style containers. On the floor there were used plastic gloves and utensils that had crystal like substance on them. The residence was used as a conversion lab from liquid to crystal methamphetamine.
During an interview, according to the plea agreement factual resume, Amparan admitted that he was involved in the methamphetamine operation. Amparan stated that he received all the money from the sale of methamphetamine and transported the money back to his brother, who lives in Juarez, Mexico.
The Amarillo Police Department and the Drug Enforcement Administration investigated the case with assistance from the Randall County Sheriff’s Office, the Potter County Sheriff’s Office, the Texas Department of Public Safety and the Potter County District Attorney’s Office.
Assistant U.S. Attorney Anna Bell prosecuted.
# # #
Air Force Employee Pleads Guilty to Providing Confidential Information to Companies Bidding on Federal ContractsRead the Press Release
James Gillis, 60, of Maryville, IL, pled guilty to a charge of government procurement fraud in federal court in East St. Louis, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Gillis was the Chief of Project Management for the 375th Civil Engineering Squadron at Scott Air Force Base. He admitted to knowingly disclosing confidential information to private companies bidding on contracts at Scott Air Force Base. This information gave an unfair competitive advantage to the companies receiving the information. Gillis received lunch and baseball tickets in connection with providing the confidential information.
Gillis’s sentencing hearing is scheduled for March 23, 2018, at 9:00 a.m., at the federal courthouse in East St. Louis, Illinois. The crime of government procurement fraud is punishable by up to five years of imprisonment, a fine of up to $250,000, not more than three years of supervised release, and restitution.
The investigation was conducted by agents from the United States Air Force Office of Special Investigations, Procurement Fraud Investigations. The case is being prosecuted by Assistant United States Attorney Michael J. Quinley.
"Real Time": Greenville Man Sentenced to 100 Months in Federal Prison for Gun and Drug ChargeRead the Press Release
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Justin Bailey Rhodes, age 27, of Greenville, South Carolina was sentenced yesterday in federal court in Greenville for Possessing a Firearm In Furtherance of a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c). United States District Judge Bruce Howe Hendricks, of Charleston, sentenced Rhodes to 100 months imprisonment and 5 years of supervised release.
Evidence presented at the change of plea hearing established that on March 25, 2016, South Carolina Department of Probation and Parole were conducting a home visit on parolee Justin Bailey Rhodes at his residence. Officers searched Rhodes apartment and found bags of marijuana, drug paraphernalia, and a Bersa Model Thunder .380 caliber semi-automatic pistol loaded with four rounds of ammunition. A trace was conducted on the firearm, which was found to have been stolen. Rhodes was arrested and has remained in custody since.
Rhodes’s case was expedited for federal prosecution pursuant to Operation “Real Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community. “Real Time” is a working collaboration between local, state, and federal law enforcement as well as state and federal prosecutors.
The case was investigated by agents of the ATF, South Carolina Department of Probation and Parole, and Greenville Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
#####
Wednesday 6 December 2017
“Los Cachiros” Drug Trafficker Pleads Guilty to Cocaine ConspiracyRead the Press Release
RICHMOND, Va. – A Honduran man pleaded guilty today to participating in a conspiracy from 2011 to 2014 that transported over a 1,000 kilograms of cocaine on United States registered aircraft on behalf of the “Los Cachiros,” a large-scale Honduran based drug trafficking organization (DTO).
According to court documents, Willian Reyniery Medina-Escobar, 33, joined the “Los Cachiros” DTO in approximately 2011. As a member of the “Los Cachiros,” Medina-Escobar conspired with other members to transport cocaine from Apure, Venezuela to Honduras using United States registered aircraft. Specifically on behalf of the DTO, Medina-Escobar negotiated the purchase of cocaine, inspected aircraft used to make long distance drug flights, coordinated the landing of drug laden aircraft, surveilled potential clandestine aircraft landing sites in Honduras, and served as a radio operator to facilitate communication between pilots and the ground crew for drug laden flights. On Oct. 27, 2013, Medina-Escobar assisted in the landing of a United States registered aircraft in Limon, Honduras, that transported 1,025 kilograms of cocaine from Apure, Venezuela.
Medina-Escobar pleaded guilty to conspiring to possess with intent to distribute five kilograms or more of cocaine on a United States registered aircraft and faces a mandatory minimum sentence of 10 years and a maximum penalty of life in prison when sentenced on March 30, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the DEA and IRS Richmond Field Offices as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Strong Moon. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Colonel David R. Hines, Hanover County Sheriff’s Office, and Colonel Thierry Dupuis, Chesterfield County Police Department, made the announcement after U.S. District Judge Henry E. Hudson accepted the plea. Assistant U.S. Attorney Erik S. Siebert and Peter S. Duffey are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-91.
Youngstown man charged with selling heroin and crack cocaine near a schoolRead the Press Release
A Youngstown man was charged with selling heroin and crack cocaine near a school, law enforcement officials said
Anthony A. Scrutchen, Jr., 31, distributed heroin within 1,000 feet of the Youngstown Academy of Excellence, a public elementary school, on at least eight occasions between October 2016 and January 2017, according to the 10-count criminal information.
Scrutchen possessed with the intent to distribute crack cocaine within 1,000 feet of the Youngstown Academy of Excellence in January 2017, according to the information.
Scrutchen is also charged with maintained a location at 173South Jackson Street in Youngstown for the purpose of distributing narcotics, according to the information.
“Selling drugs responsible for killing thousands of our friends and relatives so close to a school is particularly reprehensible,” said U.S. Attorney Justin Herdman. “Law enforcement will continue to work shut off the flow of opioids into our neighborhoods.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the information was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mahoning Valley Task Force and the Youngstown Police Department. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
York County Man Convicted of Child Pornography OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert E. Miller, III, age 34, of York County, Pennsylvania, was convicted of being in the possession of images depicting the sexual exploitation of children and receipt of obscene visual representations depicting the sexual abuse of children. The three-day trial was held before United States District Court Judge John E. Jones, III.
According to United States Attorney David J. Freed, the jury returned the guilty verdict after approximately 1.5 hours of deliberation. The case originated when the FBI Major Case Coordination Unit sent a lead to the FBI Harrisburg office regarding a user browsing a known child pornography website. After obtaining a search warrant, federal and local law enforcement officers located hundreds of images and videos containing child pornography and obscene material depicting the sexual abuse of children, including violent rape, sodomy, bondage and forcible penetration with an object.
This case was investigated by the Federal Bureau of Investigation and the Northern York County Regional Police Department. Assistant United States Attorneys Daryl Bloom and Carlo Marchioli prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for Count one is 10 years’ imprisonment, a lifetime of supervised release following imprisonment, and a $250,000 fine. The maximum penalty under federal law for Count two is 20 years’ imprisonment, a lifetime of supervised release following imprisonment, and a $250,000 fine. Count two carries a mandatory term of five years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Would-Be Soccer Stadium Developer Sentenced to 3 Years in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JAMES C. DUCKETT JR., 45, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for his role in a fraud scheme involving the redevelopment of Hartford’s Dillon Stadium and a plan to bring a professional soccer team to the city. On July 6, a jury found DUCKETT guilty of conspiracy, fraud and money laundering offenses stemming from the scheme.
According to the evidence at trial, in September 2014, the City of Hartford entered into a professional services agreement with Mitchell Anderson and his company, Premier Sports Management Group (“PSMG”), to secure a professional soccer team and to develop a new, 9,000 seat facility at the Dillon Stadium location. Under the terms of the agreement, PSMG was entitled to receive $775,000 for serving as the project manager for the $12 million plan. In February 2015, Anderson joined with DUCKETT who agreed to be the majority owner of the professional soccer team. DUCKETT and Anderson represented to various city officials that PSMG and DUCKETT’s Black Diamond Consulting Group had merged for purposes of completing the Dillon Stadium project and securing the professional soccer team. DUCKETT represented that he was a former professional football player in the NFL and that Black Diamond was involved in a casino project and sports-related projects in Las Vegas and Atlanta.
Beginning in approximately March 2015, Anderson submitted invoices to the city for reimbursement to PSMG subcontractors working on the project. However, rather than pay the total amounts owed to PSMG’s subcontractors, DUCKETT and Anderson directed more than $1 million that PSMG received from the city to themselves, PSMG, Black Diamond, and other entities not related to the Dillon Stadium project. DUCKETT and Anderson also secured invoices from subcontractors who had not performed work for the project, which DUCKETT and Anderson caused to be submitted to the city as if the work had been performed. DUCKETT and Anderson then illegally used the proceeds of the fraud in a series of bank transactions to pay individuals and companies for expenses unrelated to the Dillon Stadium.
The investigation revealed that DUCKETT used funds that the city provided to PSMG to purchase a Range Rover that cost approximately $120,000, to pay unrelated attorneys’ fees and a $20,000 “finder’s fee” to an individual, and for other personal expenses including luxury clothing and jewelry items.
DUCKETT was arrested on June 23, 2016.
The jury found DUCKETT guilty of one count of conspiracy to commit mail and wire fraud, three counts of wire fraud, and eight counts of conducting illegal monetary transactions. The jury found DUCKETT not guilty of one count of conducting illegal monetary transactions.
The government advocated for a sentence of 60 months of imprisonment.
Judge Underhill will issue a restitution order after further submissions by the parties.
DUCKETT, who is released on bond, was ordered to report to prison on January 31, 2018.
On February 6, 2017, Anderson pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, and one count of conducting illegal monetary transactions. He awaits sentencing. Anderson has agreed to make restitution in the total amount of $1,134,595.37 to the City of Hartford and two subcontractors of the Dillon Stadium project.
This matter was investigated by the Connecticut Public Corruption Task Force, notably the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The Task Force also includes members from the U.S. Department of Housing and Urban Development- Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Postal Inspection Service. The Hartford Police Department assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Douglas Morabito.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Warwick Resident Convicted of Meth Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, RI – A Warwick man faces statutory penalties of 5 years to life in federal prison when he is sentenced in March after a jury in Providence convicted him of trafficking methamphetamine and being a felon in possession of a firearm which he used in furtherance of his drug trafficking activities.
Jon Cascella, 49, of Warwick, was convicted yesterday on four counts of distribution of methamphetamine, two counts of distribution of 5 grams or more of methamphetamine, and one count each of possession with intent to distribute 5 grams or more of methamphetamine, being a felon in possession of a firearm arm and possession of a firearm in furtherance of drug trafficking.
Cascella’s conviction is announced by Acting United States Attorney Stephen G. Dambruch; Mickey Leadingham, Special Agent in Charge of the Boston Field Division of Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Warwick Police Chief Colonel Stephen M. McCartney.
According to the government’s evidence presented at trial, on five occasions between March 29 and May 4, 2017, Cascella sold between 1.5 grams and 7.7 grams of methamphetamine to a Warwick undercover police officer for between $100 and $750. The transactions were electronically monitored and recorded. Beginning shortly after the first transaction, Cascella repeatedly expressed an interest in purchasing a firearm for protection. The undercover officer agreed to assist Cascella obtain a firearm.
According to the government’s evidence, on May 4, 2017, Cascella met with an ATF undercover agent who exchanged a .380 caliber semi-automatic handgun and $600 in cash for 7.4 grams of methamphetamine. A storage garage where the transaction for the firearm took place was outfitted with several law enforcement video and audio recording devices. Cascella was arrested moments after he took possession of the firearm.
A court authorized search of Cascella’s residence following his arrest resulted in the seizure of approximately 9.6 grams of methamphetamine.
According to the government’s evidence, following his arrest Cascella told investigators that he needed the firearm for protection because methamphetamine had been stolen from his residence. Kent admitted to investigators that he previously served five year prison sentences in Texas and Florida, having been convicted in each state on bank robbery charges.
Cascella will be sentenced by U.S. District Court Chief Judge William E. Smith on March 2, 2018.
Distribution of methamphetamine is punishable by statutory penalties of up to 20 years imprisonment followed by 3 years to lifetime supervised release, and a fine of $1,000,000; distribution of 5 grams or more of methamphetamine and possession with intent to distribute 5 grams or more of methamphetamine are punishable by up to 40 years imprisonment followed by up to 4 years to lifetime supervised release, and a fine of $8,000,000; felon in possession of a firearm is punishable by up to 10 years imprisonment followed by 3 years supervised release, and a fine of $250,000; and possession of a firearm in furtherance of a drug trafficking crime is punishable by up to life in federal prison – with a mandatory minimum sentence of 5 years in prison, to be followed by 3 years supervised release, and a fine of $250,000.
Casella has been detained in federal custody since his arrest on May 4, 2017.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
###
Volkswagen Senior Manager Sentenced to 84 Months in Prison for Role in Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
The former general manager of Volkswagen AG’s (VW) U.S. Environment and Engineering Office was sentenced today 84 months in prison for his role in VW’s scheme to sell diesel “clean diesel” vehicles containing software designed to cheat U.S. emissions tests.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of FBI’s Detroit Field Office and Acting Assistant Administrator Larry Starfield, for the Environmental Protection Agency (EPA)’s Office of Enforcement and Compliance Assurance made the announcement.
Oliver Schmidt, 48, a citizen and resident of Germany, was sentenced by U.S. District Judge Sean F. Cox of the Eastern District of Michigan, who also ordered Schmidt to pay a criminal penalty of $400,000. Schmidt pleaded guilty on Aug. 4 to one count of conspiracy to defraud the United States, to commit wire fraud and to violate the Clean Air Act, and to one count of violating the Clean Air Act.
“Upon learning of Volkswagen’s massive scheme to defraud and mislead U.S. consumers and regulators, Oliver Schmidt chose to join the conspiracy and deceive U.S. regulators,” said Acting Assistant Attorney General Cronan. “This case, along with the prior prosecution of the company and another Volkswagen engineer, further demonstrate the Criminal Division’s unwavering commitment to hold both corporations and individuals accountable for their wrongdoing.”
“Oliver Schmidt cheated the American people, and today’s sentencing shows that such behavior will be prosecuted to the fullest extent of the law,” said Deputy Assistant Attorney General Williams. “The Department of Justice and its partner agencies will continue to work together to ensure a level playing field for all competitors and a cleaner environment for all Americans.”
“This sentence reflects how seriously we take environmental crime,” said Acting U.S. Attorney Lemisch. “Protecting natural resources is a priority of this office. Corporations, and individuals acting on behalf of corporations, will be brought to justice for harming our environment.”
“Americans expect corporations to follow laws and regulations designed to protect consumers and the environment,” said FBI Special Agent in Charge Gelios. “The sentence of Mr. Schmidt demonstrates the Department of Justice’s commitment to hold companies that defraud their customers both personally, as well as, corporately accountable for their crimes.”
“As this case demonstrates, EPA is committed to ensuring a level playing field for companies that follow the rules and pursuing individuals whose actions create an unfair competitive advantage for their employer,” said EPA Acting Assistant Administrator Starfield.
In connection with his guilty plea, Schmidt admitted that he agreed with VW employees to mislead and defraud the United States and domestic customers who purchased diesel vehicles, and to violate the Clean Air Act. Schmidt first learned during the summer of 2015 that certain VW diesel vehicle models contained a defeat device, or software that detected the difference between when the car was undergoing standard U.S. emissions testing and when it was being driven under normal conditions on the road. If the vehicle recognized that it was not being tested, many of its emissions control systems were significantly reduced, resulting in NOx emissions that were sometimes 30 times higher than U.S. standards. Schmidt admitted to participating in discussions with other VW employees in the summer of 2015 on how to coordinate responses to questions from U.S. regulators about VW’s diesel vehicles without admitting to the defeat device contained in vehicles. On the instructions of management, Schmidt met with U.S. regulators twice in August 2015 and attempted to obtain approval for the sale of additional VW diesel vehicles without disclosing what he knew was the truth – that the real reason for the high emissions on the road was that VW had intentionally installed software designed to cheat emissions testing.
Schmidt further admitted that he knew during his participation in the conspiracy that the VW “clean diesel” vehicles were being marketed to the public as being environmentally friendly and promoting increased fuel economy while complying with U.S. environmental regulations. Schmidt knew that VW’s diesel vehicles were not compliant with U.S. standards and regulations and that these representations made to domestic customers were false, he admitted.
As part of his guilty plea, Schmidt agreed that during his participation in the scheme, he and his co-conspirators caused losses to victims of more than $150 million and that he obstructed justice.
The FBI’s Detroit Field Office and the EPA’s Criminal Investigation Division are investigating the case, with assistance from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Securities and Financial Fraud Unit Chief Benjamin D. Singer and Trial Attorney David M. Fuhr of the Criminal Division’s Fraud Section, Senior Trial Attorney Jennifer Blackwell of the Environment and Natural Resources Division’s Environmental Crimes Section and White Collar Chief John K. Neal of the U.S. Attorney’s Office for the Eastern District of Michigan are prosecuting the case.
United States Seeks Warrant to Seize Ring Trafficked by ISISRead the Press Release
WASHINGTON – The U.S. Department of Justice announced today that the United States is seeking a warrant to seize one of the antiquities trafficked by the Islamic State of Iraq and Syria (ISIS), a gold ring that was identified in its previously filed civil complaint and that is believed to have been confiscated by authorities in Turkey.
The United States also amended its year-old forfeiture complaint to add three additional antiquities, with a total of seven items now included in the lawsuit. The amended complaint alleges that ISIS, which is designated by the U.S. Department of State as a Foreign Terrorist Organization, markets and sells antiquities to finance its terror operations.
The amended complaint, filed in the U.S. District Court for the District of Columbia, seeks the forfeiture of seven archaeological properties that were depicted in photographs found during a raid of a residence of Abu Sayyaf, a senior leader within ISIS, in Deir Ezzor, Syria, in May 2015. The original items included a gold ring, two gold coins, and a carved stone. The amended complaint adds a gold brooch as well as a gold necklace with a matching brooch. These items date to ancient times and are believed to be worth hundreds of thousands of dollars.
In a related filing, the United States submitted a motion seeking authority to seize the gold ring identified in the complaint. The filing indicates that there is probable cause to believe that ISIS attempted to facilitate the transfer of the ring to a Syrian antiquities trafficker, who sold the gold ring to a person in Turkey for approximately $250,000. This same Syrian antiquities trafficker also sold additional antiquities contained in the larger set identified in the amended complaint. According to the amended complaint, Turkish law enforcement subsequently confiscated the gold ring.
The initial lawsuit was filed in December 2016, following an investigation into items seized in the raid of Abu Sayyaf’s residence. During the operation, Abu Sayyaf was killed when he engaged with U.S. military forces.
According to the amended civil complaint, the United States recovered data from electronic media during the raid, including photographs of the properties at issue. These documents additionally revealed a significant amount of information about the organizational structure of ISIS and Abu Sayyaf’s position within the network. For example, according to the lawsuit, in multiple documents written on ISIS letterhead, Abu Sayyaf referred to himself as the President of the Ministry of Natural Resources Antiquities Department and discussed depositing the proceeds of their trafficking into ISIS’s treasury.
The subsequent investigation has revealed that antiquities, including at least one of the antiquities in the complaint, were being sold in U.S. dollars as part of these efforts.
At the height of its influence, ISIS controlled large swathes of land in Syria and Iraq, including multiple UNESCO World Heritage Sites and other sites that contain archaeological and ethnological materials that are important to the cultural heritage of the people of Syria and Iraq. The complaint states that ISIS created a sophisticated system for extracting wealth from these resources, including through the sale and trafficking of antiquities. According to the complaint, Abu Sayyaf’s antiquity trafficking directly financed ISIS.
Under United States law, all assets, foreign or domestic, of a terrorist or terrorist organization, and all assets, foreign or domestic, affording a source of influence over any such entity or organization, are subject to forfeiture.
**
“These court actions are the latest step in an ongoing effort to disrupt the ability of ISIS and other terrorist groups to finance their operations,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “They reflect our determination to locate precious stolen antiquities and preserve the cultural heritage of ancient sites that fell under ISIS’s control.”
“The FBI continues to work tirelessly with its partners to recover these precious antiquities stolen by ISIS, who sold them on the black market in order to finance their terrorist operations,” said Andrew W. Vale, Assistant Director in Charge of the FBI's Washington Field Office. “ISIS members extorted and threatened to arrest anyone outside of the terrorist organization who attempted to excavate, sell or transport antiquities from the territory under their control.”
“The State Department is working to ensure full implementation of the multiple UN Security Council resolutions that prohibit all forms of financial support to ISIS and other terrorist groups,” said Principal Deputy Assistant Secretary of State for Educational and Cultural Affairs Jennifer Zimdahl Galt. “We applaud the work of DOJ and the FBI to prevent the trade in Iraqi and Syrian cultural property.”
**
According to the complaint, Abu Sayyaf’s electronic media contained a number of images of antiquities. The documentary style, lighting and focus of the photographs indicate that these images were prepared for marketing in order to sell the items internationally.
The United States sought authority to seize the following item identified in the complaint that was filed last year:
The United States sought authority to seize the following item identified in the complaint that was filed last year:
Defendant Property 1: Gold ring with carved gemstone
This ring is believed to be from the Hellenistic/Roman period, dating approximately from 323 BC to 31 BC, and to have come from Deir Azzour, Syria, which is where the raid against Abu Sayyaf occurred.
The amended complaint alleges that the following additional items are subject to forfeiture:
Defendant Property 5: Gold brooch with a cameo of Minerva or Athena
This item is believed to have been produced in the third century A.D. by the same workshop that supplied similar items to elite residents of the Roman city of Dura Europos. It is estimated to be worth approximately $30,000.
Defendant Properties 6 and 7: Gold necklace with a coin featuring Emperor Gordian III and a matching brooch
These items are also believed to have been produced in the third century A.D. by the workshop that supplied similar items to elite residents of Dura Europos. The coin is believed to date to approximately 238-244 A.D. and features a bust of Roman Emperor Gordian III facing right and wearing a laurel wreath. Each of the two properties is estimated to be worth approximately $50,000.
**
The amended lawsuit is captioned United States v. One Gold Ring with Carved Gemstone, an Asset of ISIL, Discovered on Electronic Media of Abu Sayyaf, President of ISIL Antiquities Department; One Gold Coin Featuring Antoninus Pius, an Asset of ISIL, Discovered on Electronic Media of Abu Sayyaf, President of ISIL Antiquities Department; One Gold Coin Featuring Emperor Hadrian Augustus Caesar, an Asset of ISIL, Discovered on Electronic Media of Abu Sayyaf, President of ISIL Antiquities Department; One Carved Neo-Assyrian Stone Stela, an Asset of ISIL, Discovered on Electronic Media of Abu Sayyaf, President of ISIL Antiquities Department; One Gold Brooch with a Cameo of Minerva, an Asset of ISIL, Discovered on Electronic Media of Abu Sayyaf, President of ISIL Antiquities Department; One Gold Necklace with a Coin Featuring Emperor Gordian III, and a Matching Brooch with an Inset, Undecorated Stone, an Asset of ISIL, Discovered on Electronic Media of Abu Sayyaf, President of ISIL Antiquities Department. The claims made in the complaint are only allegations and do not constitute a determination of liability.
This case is being investigated by the FBI’s Washington Field Office and the U.S. Attorney’s Office for the District of Columbia. Assistance has been provided by the U.S. Department of State. Assistant U.S. Attorneys Zia M. Faruqui, Deborah Curtis, Brian P. Hudak, Christopher B. Brown, and Ari Redbord and Paralegal Specialist Toni Anne Donato, all from the U.S. Attorney’s Office for the District of Columbia, are representing the government.
Two Rhode Island Women Charged with Conspiracy to Commit Mail FraudRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Johanna Calderalo, age 45, and Ana Calderalo, age 71, both of Cranston, Rhode Island, were charged on December 5, 2017, in a criminal information with conspiracy to commit mail fraud.
According to United States Attorney David J. Freed, the criminal information alleges that while working at a bank in Rhode Island, Johanna Calderalo changed the mailing address of the victim to a residence in Scranton, Pennsylvania and had an ATM card sent to the new address. Ana Calderalo travelled to the Scranton address to obtain the ATM card and directed an individual to make multiple withdrawals from the account totaling $56,400.
The case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Jenny P. Roberts.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Two Mexican nationals plead guilty to immigration crimesRead the Press Release
CHARLESTON, W.Va. – Two Mexican nationals pleaded guilty today to immigration crimes, announced United States Attorney Carol Casto. Rogelio Herrera-Hernandez, 50, and Jose Martinez-Santos, 30, entered guilty pleas to illegally reentering the United States after having been removed.
On September 18, 2017, Herrera-Hernandez was identified riding a bicycle in Ripley by agents of the Department of Homeland Security. Agents recognized him from a prior encounter in 2009, and Herrera-Hernandez confirmed his identity when they stopped the bike. Fingerprint comparison confirmed that Herrera-Hernandez had three prior removals from the United States, one on September 1, 2009, in Charleston, another on December 10, 2009, in Laredo, Texas, and another on December 11, 2009, also in Laredo. On each occasion after being removed, he then illegally reentered the United States. Herrera-Hernandez admitted that he had not formally applied for permission to legally enter the United States.
In a separate prosecution, Martinez-Santos was identified by Department of Homeland Security agents in Charleston on September 26, 2017. He was a passenger in a van that was stopped by agents looking for another individual believed to be in the country illegally. Martinez-Santos confirmed his identity during the stop, and gave a sworn statement admitting that he had reentered the United States illegally. Agents also learned through fingerprint comparison that Martinez-Santos had two prior removals from the United States, one on March 3, 2011, in Staunton, Virginia, and another on September 6, 2015, in Henrico, Virginia. On both occasions after being removed, he then illegally reentered the United States. Martinez-Santos also admitted that he had not formally applied for permission to legally enter the United States.
Herrera-Hernandez and Martinez-Santos both face up to two years in federal prison when they are sentenced on March 1, 2018. They are also both subject to removal proceedings at the conclusion of the cases.
The investigations were conducted by the Department of Homeland Security. Assistant United States Attorney Erik S. Goes is in charge of the prosecutions. The plea hearings were held before United States District Judge Joseph R. Goodwin.
- Follow us on Twitter: SDWVNews
Two Men Sentenced to Prison on Federal Drug ChargesRead the Press Release
Natchez, Miss. – Donyale Jerrel Holloway, 37, of Bogue Chitto, Mississippi, and Ennis Montgomery, 48, of Rockford, Illinois, were sentenced on December 5, 2017, by Senior U.S. District Judge David C. Bramlette III, for conspiracy to possess with intent to distribute 50 kilograms or more of marijuana, announced U.S. Attorney Mike Hurst.
Holloway was sentenced to 211 months in prison followed by three years of supervised release and ordered to forfeit $53,674.00. Montgomery was sentenced to 51months in prison followed by three years of supervised release. Both defendants were also ordered to pay a $1500.00 fine.
The defendants were arrested after a lengthy investigation into a drug trafficking organization operating in South Mississippi. Montgomery was transporting marijuana in an 18-wheeler from Texas to Lincoln County, Mississippi. Holloway would then distribute the marijuana in Southwest Mississippi.
The case was investigated by the Federal Bureau of Investigation Safe Streets Task Force in Hattiesburg, the Mississippi Bureau of Narcotics, the Mississippi Bureau of Investigation, the Office of the Mississippi State Auditor, the Marion County Sheriff’s Office, the Lincoln County Sheriff’s Office, and the Hattiesburg Police Department. It was prosecuted by Assistant U.S. Attorney Jerry L. Rushing
Two Men Charged in Theft of over $2 Million in Stock Certificates from Deceased Manhattan WomanRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging STEPHEN DECKER and LUIS MERCADO with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft in connection with a scheme to steal more than $2 million in stock certificates from the apartment of a deceased Manhattan woman, and then use those stolen assets to attempt to purchase over $2 million worth of gold coins. DECKER and MERCADO were arrested this morning in Manhattan. The defendants will be presented before U.S. Magistrate Judge James L. Cott in Manhattan federal court this afternoon. The case has been assigned to U.S. District Judge Lewis A. Kaplan.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, these defendants preyed on a deceased New Yorker’s estate by stealing millions in stock certificates from her home. Then, in an attempt to cover their tracks, the defendants allegedly sold the certificates and tried to purchase more than $2 million in gold coins so that the ill-gotten gains couldn’t be traced to them. Thanks to the outstanding investigative work of the FBI, the defendants will now be held accountable for their brazen actions.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, when Decker and Mercado cashed out on stolen stock certificates, their right to ownership was nothing more than fool’s gold. Not only did the certificates not belong to them, their rightful owner was an elderly deceased woman with no representatives to stake her claim. Taking advantage of those who are powerless to defend themselves or their legacy has always been, and will always be, an inexcusable crime.”
According to the Indictment[1] unsealed today in federal court:
From March 2016 to February 2017, DECKER and MERCADO engaged in a scheme designed to steal over $2 million from a deceased Manhattan woman (the “Victim”). As part of the scheme, DECKER and MERCADO stole stock certificates valued at over $2 million from the Victim’s Manhattan apartment after the Victim’s death in March 2016. In August 2016, based on false representations made by DECKER and MERCADO, a financial institution (“Company-1”) opened a brokerage account (the “Account”) in the Victim’s name. DECKER and MERCADO then deposited the stolen stock certificates into the Account. In September 2016, based on additional false representations made by DECKER and MERCADO, Company-1 sold the shares in the brokerage account opened in the Victim’s name, resulting in a cash balance in the Account of more than $2 million. DECKER and MERCADO then attempted to purchase over $2 million in gold coins using the assets in the Account.
* * *
The Indictment charges DECKER, 59, of Secaucus, New Jersey, and MERCADO, 53, of Manhattan, New York, each with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Alexandra N. Rothman is in charge of the prosecution.
The charges contained in the Indictment 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 Indictment and the description of the Indictment set forth below constitute only allegations and every fact described should be treated as an allegation.
Two Members of A Nevada City-Based Conspiracy Convicted in Multi-Million Dollar Bank and Title Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Earlier today, a federal jury found two men guilty in a bank fraud scheme that sought to fraudulently eliminate home mortgages and then profit on the subsequent home sales, U.S. Attorney Phillip A. Talbert announced.
George B. Larsen, 56, formerly of San Rafael, was found guilty of conspiracy and four counts of bank fraud. Larry Todt, 65, formerly of Malibu, was found guilty of conspiracy and one count of bank fraud.
According to court documents, between April 22, 2010, and November 18, 2011, Larsen and Todt were members of a conspiracy that ran a “mortgage elimination program” purporting to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.
As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators indicated to the homeowners these entities would offer protection against the banks.
Larsen and Todt each ran branches of the mortgage elimination program, recruiting homeowners into the scheme, marshalling the necessary recorded documents, and guiding the homes through sale. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Larsen and Todt would have a sham deed of trust created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.
The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.
With title appearing to be clear, the conspirators caused the sale of the home, with the proceeds split between the co-conspirators and the homeowners.
In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes, but were unable to sell these before the scheme unraveled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Todd A. Pickles are prosecuting the case.
Three other co-defendants have previously entered guilty pleas. On April 21, 2017, Remus A. Kirkpatrick, formerly of Oceanside, pleaded guilty to one count of falsely making writings of lending associations. On May 26, 2017, Michael Romano, of Benicia, pleaded guilty to conspiracy, and on July 14, 2017, Laura Pezzi, of Roseville, pleaded guilty to falsely making writings of lending associations. They are scheduled to be sentenced on February 23, 2018. Co-defendants John Michael DiChiara, of Penn Valley, and James Castle, of Santa Rosa, are still awaiting trial. The charges against DiChiara and Castle are only allegations: both defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
In related cases, on September 4, 2015, Tisha Trites and Todd Smith, both of San Diego, pleaded guilty to related charges before U.S. District Judge Garland E. Burrell, Jr. They are scheduled to be sentenced on February 9, 2018.
Larsen and Todt are scheduled to be sentenced by U.S. District Judge Garland E. Burrell, Jr. on March 16, 2018, at which time they each face a maximum penalty of five years in prison and a $250,000 fine. The maximum penalty for bank fraud is 30 years and a $1 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tax Return Preparer Sentenced for Preparing False Tax ReturnsRead the Press Release
DALLAS — A local tax return preparer who managed a tax preparation business in Dallas, who admitted to filing fraudulent tax returns, was sentenced today, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Arslen Ramin Ayeze was sentenced by U.S. District Judge Ed Kinkeade to serve twelve months and one day in federal prison and ordered to pay $65,000 in restitution to the Internal Revenue Service (IRS). Ayeze pleaded guilty in July 2017 to one count of aiding and assisting in the preparation of a tax return and was remanded to custody following his guilty plea for a violation of his conditions of pretrial release.
According to the plea agreement factual resume filed in the case, from 2008 through 2010, Ayeze was a tax preparer doing business under the name of Universal Tax in Dallas, Texas. On January 20, 2010, Ayeze prepared and electronically filed with the IRS, a 2009 U.S. Individual Income Tax Return, Form 1040, on behalf of K.G. which was false and fraudulent. In preparing the tax return, Ayeze deceived the IRS by falsely including a business loss deduction in the amount of $10,575 for a purported sole proprietorship operated by K.G. Ayeze knew K.G. had not incurred the loss and was not entitled to claim the deduction on the tax return. The false deduction of $10,575 resulted in an actual tax loss to the United States in the approximate amount of $2,557.
The investigation was conducted by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Christopher Stokes prosecuted.
# # #
Suffolk Woman Sentenced for $1.6 Million Tax Return FraudRead the Press Release
NORFOLK, Va. – A Suffolk woman was sentenced today to 57 months in prison for her role in a fraud scheme that prepared hundreds of false tax returns that resulted in a loss of approximately $1.6 million to the United States.
According to court documents, Brenda Benn, 47, was the owner of A Plus Tax Service, later renamed NN Financial, which operated as a tax preparation business at different periods between July 2009 and February 2014. Benn, along with co-defendants Kevin Towns and Stephanie Towns, conspired to operate a business based on creating false tax returns that generated inflated refunds for their clients in order to cultivate good will and generate repeat business. They used methods such as claiming false education-related expenses, stating excessively high amounts of charitable contributions, and manipulating the amount of income to take advantage of certain tax credits. The customers did not persuade or instruct the tax preparers to generate the false returns.
Kevin Towns was sentenced on September 14 to 40 months in prison for his role in the conspiracy. Stephanie Towns was sentenced on September 27 to 10 months in prison followed by 20 months of home detention. All three defendants have been ordered to pay the government $1,683,159 in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Randy Stoker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-30.
Six Plead Guilty to Conspiracy to Transport Undocumented AliensRead the Press Release
LAREDO, Texas – Six Texas residents have entered guilty pleas related to a human smuggling operation, announced Acting U.S. Attorney Abe Martinez.
Those pleading guilty today include brothers Lucio Segundo, 31, and Christopher Segundo, 23, of Giddings. On Monday, Francisco Segura, 29, also of Giddings; Alex De La Rosa, 23, of San Marcos; Jesus Perez, 24, of La Grange; and David Cedillo, 46, of Austin, entered their respective pleas of guilty. All admitted to a conspiracy to transport illegal aliens.
During the conspiracy, the defendants at times smuggled the undocumented aliens in the trunks of rental vehicles. More often, they were transported in trailers that had been specifically modified with false bottoms under vehicle floorboards. As many as a dozen aliens could be transported at one time lying down in those false compartments. Construction materials would be placed on the trailers to make it appear that the trailers were carrying legitimate loads.
Various drivers were recruited to transport the aliens northbound from Laredo through Border Patrol checkpoints between Nov. 1, 2015, and July 1, 2017.
U.S. Magistrate Judge Guillermo Garcia accepted the pleas today. All will remain in custody pending their sentencing hearings which will set in the near future before U.S. District Judge Diana Saldaña.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Michael Bukiewicz and Alfredo De La Rosa are prosecuting the case.
Several Local Residents in Custody in Operation City ShieldRead the Press Release
CORPUS CHRISTI, Texas – A total of 12 Corpus Christi men are now in custody following enforcement actions resulting from Operation City Shield, a joint venture to identify violent offenders, stop gun violence and protect the community, announced Acting U.S. Attorney Abe Martinez.
Each defendant has been charged in separate and unrelated indictments for federal firearms and/or narcotics violations.
A federal grand jury charged Adam Flores, 36, Joe Parker, 30, Justin Moreno, 27, Jessie Zuniga, 36, Cruz Gonzalez, 29, Fred Corona, 24, Akeem Olajuwon Edwards, 30, Gavino Flores, 24, and Adam Rodriguez, 35, for being felons in possession of firearms and ammunition.
In a separate indictment, Andrew Hernandez, 34, is charged with knowingly and intentionally possessing with intent to distribute a synthetic cannabinoid mixture and a substance containing a detectable amount of a schedule I controlled substance analogue. Hernandez is also charged with using a firearm in furtherance of a drug trafficking crime and with being a felon in possession of a firearm and ammunition.
Zuniga, Parker, Andrew Hernandez, Moreno, Adam Flores and Corona were taken into custody yesterday and made their initial appearance before U.S. Magistrate Judge Jason Libby. At that time, they were ordered temporarily into custody pending detention hearings set for Friday, Dec.. 8, at 9:00 a.m. Edwards, Gavino Flores, Rodriguez and Gonzalez had already been in custody and are expected in federal court on the new charges in the near future.
Both Cody Hernandez, 27, and Timothy Allen, 38, were indicted previously for being felons in possession of a firearm and ammunition. Allen was also charged with possessing with intent distribute methamphetamine. Allen has already pleaded guilty to both of his charges and is pending sentencing in January 2018. Cody Hernandez’s case is still pending.
The felon in possession of firearms charge carries a maximum penalty of 10 years imprisonment and a possible $250,000 maximum fine. Those charged with possession with intent to distribute controlled substances face up to 20 years of imprisonment and a possible $1 million maximum fine. Hernandez and Allen further face up to five years in prison for using a firearm in furtherance of a drug trafficking crime which must be served consecutively to any other prison term imposed.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; Corpus Christi Police Department; Immigration and Customs Enforcement’s Homeland Security Investigations; U.S. Marshals Service and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Rocky River executive charged with embezzling from employee retirement plan and failing to pay over taxes collected from employeesRead the Press Release
An eight-count indictment was filed charging a Rocky River business executive with collecting nearly $860,000 from his employees but not paying the money to the IRS, as well as embezzling more than $130,000 from an employee retirement plan, law enforcement officials said.
C. David Snyder, 65, served as chairman, president and chief executive officer of Attevo, Inc., a technology consulting company headquartered in Cleveland. He also served as chairman and primary shareholder at Ruralogic, Inc., headquartered in Bryan, Ohio.
Attevo employees prepared financial records and schedules, quarterly and annual returns and reports for Attevo, at Snyder’s direction. Snyder ranked Attevo’s payables in order of importance, according to the indictment.
Snyder, on behalf of Attevo, and the IRS in 2011 agreed to a monthly payment plan of $48,350 per month to repay the company’s outstanding payroll tax liabilities. Attevo made 10 payments totaling $483,500 then made no further payments, according to the indictment.
Snyder withheld payroll tax from employees but failed to pay it to the IRS. Snyder failed to pay over approximately $328,355 of employee’s portion of payroll taxes in 2010 and approximately $530,778 in 2012, according to the indictment.
Snyder created a 401(k) and profit-sharing plan for Attevo employees in 2009. Ruralogic was added to the plan in 2010. The plan was funded through employee payroll deferrals. Between 2010 and 2012, Snyder failed to pay into the plan approximately $130,415 in contributions and loan repayments withheld from Attevo and Ruralogic employee wages, according to the indictment.
During the time of his alleged criminal conduct, Snyder paid approximately $510,000 for the rental of his personal residence in Lakewood and his vacation home in Chautauqua County, New York. He took cash advances from Attevo’s credit card and then caused approximately $82,237 in cash to be deposited into his bank account and $182,988 to be deposited into his wife’s bank account. His wife did not work for Attevo, according to the indictment.
Snyder earned income from Attevo totaling approximately $850,132 between 2009 and 2011, according to the indictment.
“This defendant embezzled money from an employee retirement account and did not pay to the IRS money he withheld from his employees’ paychecks, all while living a lavish lifestyle,” U.S. Attorney Justin E. Herdman said.
“Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service,” said IRS Special Agent in Charge Ryan Korner. “The failure to pay over withheld taxes results in the loss of tax revenue to the United States government and the loss of future Social Security or Medicare benefits for employees.”
“An important mission of the Office of Inspector General is to investigate allegations relating to labor racketeering and theft of pension funds covered by ERISA. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the United States Department of Labor, Office of Inspector General.
This case was investigated by the Internal Revenue Service – Criminal Investigations and the U.S. Department of Labor – Office of Inspector General. It is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Megan R. Miller.
If convicted, the sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines, which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Robeson County Man Sentenced for Drug TraffickingRead the Press Release
GREENVILLE –United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced DARWIN DIAL, JR., 30, of Maxton, North Carolina to 135 months imprisonment, followed by 4 years of supervised release.
DIAL was named in an Indictment filed on April 24, 2017 charging him with conspiracy to distribute and possess with the intent to distribute 28 grams or more of cocaine base (crack). On September 11, 2017, DIAL pled guilty to that charge.
According to the investigation, in 2016, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Robeson County Sheriff’s Office initiated an investigation into the drug trafficking activities of DIAL. Between March of 2016 and May 2017, DIAL was held accountable for the distribution or possession with intent to distribute over 600 grams of cocaine base (crack).
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Robeson County Sheriff’s Office. Assistant United States Attorney Lawrence J. Cameron represented the government.
Registered Sex Offender Indicted for Sex Offenses Against MinorRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin, announced that on December 5, 2017, a federal grand jury returned an indictment against James A. Huskisson, also known as Jason Desantes (age: 45) of Ozone Park, New York.
Huskisson faces charges alleging he sexually exploited a minor and coerced or enticed that minor to engage in illicit sexual activity contrary to Title 18, United States Code, Sections 2251(a) and 2422(b). Huskisson was previously convicted of two separate charges of 1st degree forcible rape in the State of New York. He spent time in prison for those crimes and is a lifetime sex offender registrant under the laws of that state. As such, he faces a third charge for the commission of a felony sex offense by an individual required to register as a sexual offender contrary to Title 18, United States Code, Section 2260A. If convicted of the charges, Huskisson will serve at least 25 years in federal prison and up to a life sentence.
Huskisson is alleged to have initiated an online relationship with a minor using popular online messaging systems to correspond. Shortly after establishing contact with the minor, he began sending digital images of his genitalia, as well as demanding sexually explicit photographs from the minor. Within two weeks of contacting the minor online, Huskisson allegedly travelled from his home in Ozone Park, New York to Wisconsin for the purpose of engaging in illicit sexual activity with the minor victim.
When local authorities learned of the allegations, they contacted the Federal Bureau of Investigation’s Green Bay Office for assistance. In coordination with the F.B.I.’s New York Field Office, Huskisson was arrested near his home in New York, and is currently in the custody of the United States Marshal Service for transportation to the United States District Court in Green Bay.
This case was investigated by the F.B.I.’s offices in Green Bay and New York City, the Shawano County Sheriff’s Office, the Shawano Police Department, the Brown County Internet Crimes Against Children (ICAC) Task Force, the New York Police Department, and the U.S. Marshal’s Service. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
# # #
For further information contact:
Public Information Officer Dean Puschnig (414) 297-1700
Passaic County, New Jersey, Man Sentenced to 37 Months in Prison for Taking Bribes for Referring Tests to New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – An internal medicine doctor with a practice in West New York, New Jersey, was sentenced today to 37 months in prison for accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
Jorge J. Figueroa, 59, of Wayne, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to accepting bribes. Judge Chesler imposed the sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
Figueroa admitted that he had accepted checks, cash and other bribe payments totaling approximately $200,000 from BLS employees and associates between May 2007 and April 2013. In exchange, Figueroa generated more than $1.4 million in lab business for BLS.
The investigation has thus far resulted in 51 convictions – 37 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $13 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
In addition to the prison term, Judge Chesler sentenced Figueroa to one year of supervised release and fined him $7,500. He must also forfeit $199,899.
U.S. Attorney Fitzpatrick credited special agents of the New Jersey FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph V. Cronin in Newark, with the ongoing investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Assistant U.S. Attorney Barbara Ward, deputy chief of the asset forfeiture program.
The New Jersey U.S. Attorney’s Office reorganized its health care fraud practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.37 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Orthopedist and Former Anesthesiologist Sentenced for Drug Conspiracy and Alien Smuggling ChargesRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Fred Joseph Turner (60, Sarasota) and Rosetta Valerie Cannata (61, Osprey) to 12 years and 7 months in federal prison for conspiring to dispense controlled substances for no legitimate medical purpose and outside the usual course of medical practice, dispensing controlled substances, and conspiring to smuggle an alien into the United States. As part of the sentences, the Court also entered a $232,020 money judgment against Turner, and a $73,148 money judgment against Cannata, representing the proceeds of the charged criminal conduct. A federal jury found them guilty on July 20, 2017.
According to court documents, from March 2011 through July 2015, Turner, an orthopedist, and Cannata, a former anesthesiologist, operated Gulfshore Pain and Wellness Centre, a pain management clinic with offices in Tampa and Punta Gorda. Turner and Cannata rarely conducted physical or diagnostic examinations of their patients and ignored results of patient drug screens when they prescribed excessive amounts of opiates, including oxycodone, hydrocodone, hydromorphone, and morphine.
During the investigation, several law enforcement officers entered the clinic in undercover capacities as patients. On one occasion, Turner and Cannata asked the undercover agent to smuggle a Hungarian national into the United States. In return, Turner prescribed the agent an increased amount of oxycodone and hydromorphone, and Cannata paid him $5,000 in cash. To justify the increase in prescribed medication, Turner and Cannata instructed the agent to fabricate an injury and walked him through the process of falsifying his patient history.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorneys Carlton C. Gammons and Taylor G. Stout.
Orangeburg Man Indicted on Federal Firearms ChargeRead the Press Release
Columbia, South Carolina------Eugene Jonathan James, age 19, of Orangeburg, was charged in a 2-count indictment with being a felon in possession of a firearm and possession of a firearm with an obliterated serial number, all in violation of Title 18, United States Code, Sections 922(g)(1) and 922(k). The felon in possession charge carries a maximum of 10 years’ imprisonment, a fine of $250,000, and a term of supervised release of not more than 3 years. The obliterated serial number charge carries a maximum of 5 years’ imprisonment, a fine of $250,000, and a term of supervised release of not more than 3 years.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Cayce Department of Public Safety, the Columbia Police Department, and the South Carolina State Law Enforcement Division (SLED) and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.
The United States Attorney stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
#####
North Suburban Chiropractor Sentenced to 20 Months in Prison for Billing Insurance Carrier for Medically Unnecessary TreatmentRead the Press Release
CHICAGO — A chiropractor who owned several clinics in the north suburbs of Chicago has been sentenced to 20 months in federal prison for billing an insurance carrier for medically unnecessary or nonexistent services.
As a licensed chiropractor and owner of the facilities, STEVEN PAUL required the clinics’ chiropractors and medical doctors to order x-rays, MRI scans and neurological diagnostic testing, without regard to medical necessity. Paul billed Blue Cross Blue Shield of Illinois for the unnecessary services, and he also billed the carrier for physical therapy services that were never provided.
Paul, 46, of Northbrook, previously pleaded guilty to one count of health care fraud. U.S. District Judge Ronald A. Guzman on Tuesday imposed the prison sentence in federal court in Chicago. Judge Guzman cited Paul’s “extraordinary cooperation” in the government’s investigation as a basis for imposing what the Judge said was the lowest possible term of imprisonment he would consider for Paul’s fraud scheme.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General.
Paul and a co-defendant, chiropractor BRADLEY MATTSON, jointly owned six chiropractic clinics in the north suburbs of Chicago: Hawthorn Physical Medicine, Woodfield Physical Medicine, Stratford Physical Medicine, Algonquin Physical Medicine, Northshore Physical Medicine, and Cumberland Physical Medicine.
Paul and Mattson admitted in plea agreements that they required patients to receive an initial x-ray and a pre-set schedule of clinic visits for a period of six months, without regard to the medical necessity of the visits. Paul admitted that from 1999 to 2008, he directed billings to Blue Cross Blue Shield totaling $3.65 million for medically unnecessary tests or physical therapy services that were not provided, and his clinics collected $1.33 million in fraudulent reimbursements from the insurance company.
During the investigation, an undercover FBI agent visited the Hawthorn clinic for treatment of a purported back strain. Mattson diagnosed the agent with a pinched nerve and ordered a pre-set treatment plan that began with daily visits for two weeks. Mattson rendered his diagnosis despite the opinion of the clinic’s medical doctor and a physical therapist that the agent did not have a pinched nerve but rather a pulled muscle.
Mattson, of Lake Forest, pleaded guilty to health care fraud and was sentenced in 2012 to six and a half years in prison.
The government is represented by Assistant U.S. Attorney Renai S. Rodney.
Nineteen Defendants Charged with Conspiracy to Distribute Heroin, Fentanyl and Cocaine, Money Laundering, and Bankruptcy FraudRead the Press Release
United States Attorney Gregory Haanstad announced today that the following nineteen (19) defendants have been charged in federal court with offenses related to a conspiracy to distribute heroin, fentanyl and cocaine, as well as money laundering and bankruptcy fraud:
Clifton Morrison, age 51
Jose Rodriguez, age 67
Miguel Rodriguez, age 68
Samuel Flores-Morales, age 39
Luis Nevarez, age 27
Brenda Y. Valverde, age 29
Ronnie McFadden, age 47
Dewayne Alexander, Sr., age 48
Frederick R. Perry, age 56
David Wilder III, age 50
Tommie Stevens, age 41
Germaine D. Johnson, age 35
Daniel S. Carter, age 43
Don D. Walker-Cruse, age 41
Ricky Christopher, age 49
David D. Coleman, age 39
Kellin R.L. Morrison, age 33
Janine R. Hegwood, age 51
Dewayne Alexander, Jr., age 24
The defendants currently reside in the greater Milwaukee area, Chicago, Illinois, and Burlington, Iowa. This case is a part of a long-term federal drug and money laundering investigation based out of Milwaukee.
The defendants are charged with various drug, money laundering and bankruptcy fraud offenses, including: distribution of and possession with intent to distribute controlled substances and conspiracy. If proven that the offenses involved either more than one kilogram of heroin or five kilograms of cocaine, defendants charged with drug offenses will face up to life in prison, with a mandatory minimum sentence of ten years in prison.
Today, law enforcement officers arrested all of the above defendants. In addition to today’s arrests, law enforcement officers executed 17 federal search warrants in Wisconsin and Illinois and one state warrant in Iowa targeting members of this organization. Law enforcement recovered approximately 1.5 kilograms of cocaine and a half kilogram of heroin. Law enforcement also seized 21 guns (including 3 rifles), 8 vehicles and an undetermined amount of cash. Over 250 federal, state, and local officers participated in these arrests and search warrants.
In making today’s announcement about the federal charges, searches, and arrests, United States Attorney Haanstad stated: “The large-scale distribution of cocaine, heroin, and other controlled substances is a continuing and urgent threat to public health and public safety. Countering that threat requires the sustained, concerted attention of federal, state, and local law enforcement agencies and by task forces like the one whose efforts led to these charges and arrests. The United States Attorney’s Office and the Department of Justice are committed to continuing to make efforts like these a top priority.”
Drug Enforcement Administration Assistant Special Agent in Charge Robert Bell commended local, state and federal law enforcement agents for strategically and successfully dismantling this high-level heroin trafficking organization. “This very organized criminal network profited by perpetuating addiction and suffering – by victimizing others. To save lives and reduce levels of addiction, law enforcement agents and federal prosecutors will continue to purposefully bring predatory drug traffickers to justice.”
“Once again DOJ’s DCI agents worked together with federal, state, and local law enforcement to take down a major crime organization that has been flooding southeastern Wisconsin with fentanyl, heroin, and guns,” said Attorney General Schimel. “Today’s bust will put a major dent in this criminal organization’s ability to prey on and profit off of people’s addiction. This is a significant win in the fight against the opioid epidemic and efforts to reduce gun violence.”
The defendants were charged after a lengthy investigation by the Wisconsin Department of Justice - Division of Criminal Investigation, Wauwatosa Police Department, Greenfield Police Department, Waukesha County Sheriff’s Department and Metro Drug Unit, Milwaukee Police Department, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, and Firearms, Iowa Division of Narcotics Enforcement, South East Iowa Drug Task Force and the Iowa State Patrol. In addition to the above law enforcement agencies the following agencies participated in today’s arrests and search warrants: Milwaukee County Sheriff’s Department, Oak Creek Police Department, Kenosha County Drug Unit, Racine County Drug Unit, West Allis Police Department, South Milwaukee Police Department, Lake County Illinois Sheriff’s Department, Wisconsin State Patrol, United States Marshals Service, Department of Homeland Security - Homeland Security Investigation / Enforcement Removal Operations and the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorneys Elizabeth M. Monfils and Gail J. Hoffman.
A criminal complaint 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.
# # # # #
For additional information contact:
Public Information Officer Dean Puschnig (414) 297-1700
New Haven Man Sentenced to 4 Years in Federal Prison for Role in Large-Scale Fencing OperationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANDREW SACCO, 44, of New Haven and formerly of Durham, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 48 months of imprisonment, followed by three years of supervised release, for participating in a large-scale fencing operation. Judge Shea also ordered SACCO to pay a $5,000 fine.
According to court documents and statements made in court, between January 2012 and December 2014, SACCO participated in a conspiracy to purchase stolen property from “boosters,” who typically were shoplifters with opioid addictions, and then resold the property at online websites. SACCO, his co-conspirator Matthew Harwood, and others instructed the boosters to steal certain items from retail stores such as Petco, Staples, Walmart, and Bed Bath & Beyond, and paid cash for the stolen items at approximately one-third of their retail price.
After receiving the stolen merchandise, SACCO and Harwood stored the merchandise at multiple locations, including SACCO’s former residence in Durham and business locations in North Haven. SACCO and Harwood then sold the stolen products at online sites, including eBay and Amazon.
Through this scheme, retailers lost more than $3.9 million.
SACCO was arrested on July 15, 2016. On June 21, 2017, he pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property.
SACCO, who is released on a $100,000 bond, was ordered to report to prison on February 6, 2018.
On November 3, 2016, Harwood pleaded guilty to the same charges. He awaits sentencing.
This matter has been investigated by Federal Bureau of Investigation, with assistance from the Connecticut State Police, U.S. Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and John T. Pierpont, Jr.
Neville Township Man Sentenced to 5 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 60 months imprisonment, followed by five years supervised release, on a charge of possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentenced on Lance G. Gehring, age 48, of Neville Township, Pennsylvania.
According to information presented to the court, on March 10, 2016, Gehring knowingly possessed and knowingly accessed with intent to view images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
Acting U.S. Attorney Soo C. Song commended the Federal Bureau of Investigation and the Allegheny County District Attorney’s Office for conducting the investigation leading to the successful prosecution of Gehring.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Navajo Man from McKinley County Pleads Guilty to Federal Child Abuse ChargesRead the Press Release
ALBUQUERQUE – Roland Skeets, 27, an enrolled member of the Navajo Nation who resides in Smith Lake, N.M., pled guilty today in federal court in Albuquerque, N.M., to child abuse charges. Skeets’ plea agreement recommends that he be sentenced to a prison term within the range of 15 to 21 months.
Skeets was arrested in Aug. 2017, on an indictment charging him with child abuse resulting in great bodily injury to a male victim and child abuse endangering a female victim. According to the indictment, the crimes took place on March 25, 2016, on the Navajo Indian Reservation in McKinley County, N.M.
During today’s proceedings, Skeets pled guilty to an information charging him with assault resulting in substantial bodily injury. In entering the guilty plea, Skeets admitted that on March 25, 2016, he assaulted a four-year-old child by pushing the child to the ground and yanking him back up by the arm, which fractured the child’s clavicle. Skeets acknowledged that at the time he assaulted the child, he was intoxicated. Skeets further admitted that, after assaulting the child, he continued yelling, causing his girlfriend to flee with the injured child and other children to a neighbor’s house in order to call police.
Skeets remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case.
Navajo Man from Hogback, N.M, Sentenced to Nine Years for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Gary Begay, 24, an enrolled member of the Navajo Nation who resides in Hogback, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 108 months in prison for his conviction on an assault charge. Begay will be on supervised release for three years after completing his prison sentence.
Begay was arrested in June 2016, on an indictment charging him with sexual assault and assault resulting in serious bodily injury. According to the indictment, Begay committed the crimes on March 14, 2015, on the Navajo Indian Reservation in San Juan County, N.M.
On Feb. 16, 2017, Begay pled guilty to Count 2 of the indictment charging him with assault resulting in serious bodily injury. In entering the guilty plea, Begay admitted assaulting the victim by striking the victim with his fists and a bottle, breaking the victim’s teeth and causing serious bodily injury to the victim.
This case was investigated by the Farmington office of the FBI, the Navajo Nation Department of Public Safety and the San Juan County Sheriff’s Office. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Milwaukee, Wisconsin Man Sentenced for VA FraudRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 28, 2017, Dean D. Young (age: 60) formerly of Green Bay, Wisconsin and currently living in Milwaukee, Wisconsin, was sentenced in Federal Court in Green Bay to 21 months in prison to be followed by 3 years supervised release and ordered to pay restitution in the amount of $201,521.41 after his guilty plea to wire fraud contrary to Title 18 United States Code Section 1343.
According to the plea agreement and other court documents, beginning in approximately November 2002, and continuing thereafter until at least September 2015, in the State and Eastern District of Wisconsin, Dean Young devised and carried out a scheme to defraud the United States Department of Veterans Affairs (VA) of pension and compensation benefits by means of materially false and fraudulent pretenses.
Young’s scheme was essentially to defraud the VA of compensation and pension benefits by providing materially false information to the VA, at its Regional Office in Milwaukee, Wisconsin, and elsewhere, concerning his physical and mental condition. In particular, Young provided materially false information to the VA, upon which the VA relied in awarding pension and compensation benefits that he was not entitled which totaled $201,521.41. One such claim stemmed from an August 30, 2013, VA doctor appointment during which Young claimed he required use of a wheelchair and that he could only walk a few steps due to extreme back pain. Following the appointment, the VA doctor observed Young walk across the VA parking lot without use of the wheelchair and with a normal gait. Young then folded up his wheelchair and placed it in his car. Further, law enforcement obtained video of Young that same day walking down the hallway of his apartment complex and standing in the elevator while carrying a box, all without the aid of a wheelchair or cane.
While handing down the sentence, Chief United States District Judge William C. Griesbach described the offense as a “massive and blatant fraud” that went on for many years. He also noted that it involved public funds intended for truly deserving veteran. Judge Griesbach added that the sentence imposed was also intended to serve as a deterrent for others thinking of committing VA fraud.
This case was investigated by the Veterans Administration Office of Inspector General. The case was prosecuted by Assistant United States Attorney William Roach.
# # # # #
For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Mexican National Indicted for Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Mexican national riding on a bus passing through Kansas City, Mo., was indicted by a federal grand jury today after law enforcement officers found 23 pounds of methamphetamine in his carry-on bags.
Luis Carlos Ballesteros-Duarte, 42, a citizen of Mexico, was charged with one count of possessing methamphetamine to distribute in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint filed against Ballesteros-Duarte on Nov. 13, 2017.
According to an affidavit filed in support of the original criminal complaint, a police department canine working at a local bus terminal gave a positive alert for the presence of narcotic odor on two duffel bags located in the passenger compartment of a bus traveling from Denver, Colo., to St. Louis, Mo. Officers questioned Ballesteros-Duarte, whom they observed was acting nervously, and learned that the duffel bags belonged to him.
Officers searched the duffel bags and found a total of 23 large bundles of methamphetamine wrapped in clear cellophane, the affidavit says, with a total weight of approximately 23 pounds.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department.
Medical Center Agrees to Settle ADA Claim with Individual Who Is DeafRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office announced a $121,000 settlement agreement under the Americans with Disabilities Act (ADA) with the Spotsylvania Regional Medical Center (SRMC), a wholly-owned, indirect subsidiary of HCA Holdings, Inc. located in Fredericksburg, in a case in which the hospital failed to furnish sign language interpreter services to an individual who is deaf during the provision of medical services to her and her mother.
The U.S. Attorney’s investigation began with a complaint from the public alleging that during nine hospitalizations, including one involving end of life events, SRMC failed to furnish sign language interpreter services for numerous consequential and complex interactions with the daughter of a gravely ill woman who was hospitalized at SRMC and, at times, relied upon family members and friends to facilitate communication. Additionally, the same individual alleges that she made three visits to SRMC’s Emergency Department as a patient and during those visits, SRMC failed to furnish her with a sign language interpreter. As a result, the deaf individual alleges that she often did not understand the care and medical decisions being considered for her mother’s or her own care.
“This case demonstrates this office’s unwavering commitment to protecting the rights of those who are deaf or hard of hearing and ensuring that they are able to communicate with health care professionals, especially when patients and their companions have critical interactions with medical providers,” said U.S. Attorney Dana J. Boente.
Under the settlement, SRMC will pay a total of $121,000.00 to the aggrieved individuals, including to the individual who is deaf and to her family members and friends for associational discrimination. The settlement agreement also requires SRMC to take remedial steps to bring itself into compliance with the ADA, including the appointment of an ADA Administrator who is familiar with the ADA’s requirements; providing ADA training to its staff; entering into contracts with sign language interpreting service providers; and adopting specific policies and procedures to ensure that auxiliary aids and services are provided promptly to individuals who are deaf or hard of hearing.
This matter was handled by Assistant U.S. Attorney Steven Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office.
This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against disabled individuals by health care providers, including hospitals. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department’s Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may be filed by email to [email protected].
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Mannford Man Sentenced for Possessing Child PornographyRead the Press Release
District Judge Gregory K. Frizzell sentenced Russell Martin Mounger, 47, of Mannford, Oklahoma to 70 months in prison for the crime of Possession of Child Pornography. Mounger must also pay $10,000 in restitution to the victim, and a special monetary assessment totaling $5,100. After release from prison, Mounger will be required to register as a sex offender and must serve 7 years on supervised release.
On February 13, 2017, the Manford Police Department executed a search warrant of Mounger’s home. During the search warrant officers found several explicit videos and still images depicting children under the age of 12 involved in sexually explicit conduct.
United States Attorney Shores stated, “We will aggressively prosecute those who exploit children and possess graphic sexual images of minors. These are some of the most important cases we prosecute because they involve some of the most vulnerable victims.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Mannford Police Department and Homeland Security Investigations investigated the matter. First Assistant United States Attorney Clinton J. Johnson and Assistant United States Attorney Shannon Cozzoni prosecuted the case.