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Monday 4 December 2017
Former CEO and CFO of Digital Sign Company Charged with Conspiracy to Commit Wire Fraud and Obstruction of the Securities and Exchange CommissionRead the Press Release
SAN FRANCISCO – Donald MacCord, formerly a resident Washington State, and Shannon Doyle, a resident of Maryland, were arrested today for their role in an alleged conspiracy and fraud scheme, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Securities and Exchange Commission-Inspector General Carl W. Hoecker. The United States Securities and Exchange Commission (“SEC”) filed a parallel civil action against MacCord and Doyle today in the Western District of Washington.
According to the indictment, from at least 2013 to 2017, MacCord and Doyle conspired in a scheme to defraud by making misrepresentations to raise money for Digi Outdoor Media, Inc. (“Digi”), and then by misappropriating that money from Digi through an entity called Signworks, LLC (“Signworks”). They then both concealed their misstatements and misappropriation in various ways, and obstructed the investigation of the Securities and Exchange Commission in San Francisco into their conduct.
According to the indictment unsealed today, MacCord and Doyle, both 50, were the CEO and CFO of Digi, respectively. Digi was, and is, in the business of obtaining leases for and installing digital advertising signs. MacCord and Doyle raised money for Digi in various ways, including by soliciting investments. They solicited investments both directly and through other entities and individuals, including an investment advisor firm registered with the SEC and the Financial Industry Regulatory Authority (“FINRA”). According to the indictment, MacCord and Doyle made various misrepresentations, both to the investment advisor firm and investors, including misrepresentations regarding the number of leases into which Digi had entered or had negotiated with landlords and was prepared to enter, about the number of sites “committed” for sign installation, and that the funds would be used to pay for the construction, installation, and maintenance of signs.
MacCord and Doyle then diverted Digi funds, including money raised from investors, to Signworks, concealing their diversion with fake invoices purporting to bill Digi for work done on non-existent sites. From Signworks, MacCord and Doyle misappropriated the funds to their own personal use.
As part of their conspiracy to defraud, MacCord and Doyle also lied in various other ways about the number of leases Digi had obtained. Specifically, MacCord and Doyle caused Digi to file a Form S-1 registration statement with the SEC to sell Digi shares publicly. The registration statement overstated the number of leases into which Digi had entered and the number of sign locations for which Digi had a right to install, and it failed to disclose MacCord’s and Doyle’s self-dealing with respect to Signworks. According to the indictment, MacCord and Doyle also misrepresented to a joint venture partner and to a public accounting firm that was auditing Digi’s financial statements in connection with the S-1 the number of leases and lease sites into which Digi had entered.
According to the indictment, MacCord and Doyle then concealed their conspiracy to defraud and obstructed the SEC’s investigation into it. MacCord shared falsely executed leases with several parties—the investment advisor firm, the joint venture partner, and the accounting firm. These leases contained the forged signatures of the purported counterparties, along with various other false statements. The day after Digi received a subpoena from the SEC, MacCord deleted some of these leases from a Dropbox folder shared with the investment advisor firm, and then produced a set of executed leases to the SEC. Both MacCord and Doyle then testified falsely, evasively, and non-responsively in proceedings of the SEC.
MacCord and Doyle were both charged with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and obstruction of official proceedings, in violation of 18 U.S.C. § 1512(c)(2). MacCord was also charged with false writings to a government agency, in violation of 18 U.S.C. § 1001(a)(3), and destruction, alteration, or falsification of records in violation of 18 U.S.C. § 1519.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum penalty for each count of conspiracy to commit wire fraud, obstruction of official proceedings, and destruction, alteration, or falsification of records in federal investigations is twenty years’ imprisonment and a $250,000 fine. The maximum penalty for each count of false writings to a government agency five years’ imprisonment and a $250,000 fine. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
MacCord surrendered to FBI custody today in Seattle, Washington, and Doyle surrendered to FBI custody today in Greenbelt, Maryland. Both made appearances in court and were released. Doyle is scheduled to appear on December 15, 2017, at 9:30 a.m., and MacCord on December 18, 2017, at 9:30 a.m., both in San Francisco, before U.S. Magistrate Judge Elizabeth D. Laporte, for arraignment.
Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with the assistance of Claudia Hyslop and Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the SEC-Office of the Inspector General.
Five St. Joseph Residents Indicted for $2.1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that five St. Joseph, Mo., residents have been indicted for their roles in a $2.1 million conspiracy to distribute methamphetamine.
James Patrick Pardee II, 27, Eleeseea Leann Crail, 25, Johnathan Scott Graf, 29, Michael Robert Ramsel, 26, and Adam Christopher Lowe, 38, all of St. Joseph, were charged in a three-count superseding indictment returned under seal by a federal grand jury in Kansas City, Mo., on Nov. 16, 2017. The indictment was unsealed and made public following the arrests and initial court appearances of Pardee and Ramsel, who remain in federal custody. The remaining defendants are currently in custody on unrelated state charges.
The indictment alleges that all five co-defendants participated in a conspiracy to distribute methamphetamine from Jan. 1, 2015, to Nov. 16, 2017. The indictment alleges the distribution of more than 99 kilograms of methamphetamine during the conspiracy. The five co-defendants are also charged together in one count of conspiracy to commit money laundering in connection with the drug-trafficking conspiracy.
In addition to the conspiracy counts, Pardee is charged with one count of possessing methamphetamine with the intent to distribute.
The indictment also contains a forfeiture allegation, which would require the five co-defendants to forfeit to the government any property obtained as a result of the drug-trafficking conspiracy, including a money judgment of $2.1 million. This represents the amount of money received in exchange for the unlawful distribution of methamphetamine, the indictment says, based on an approximate sale price of $600 per ounce and distribution of at least 3,500 ounces (approximately 99.2 kilograms) of methamphetamine.
According to an affidavit filed in support of the original criminal complaint, Plattsburg, Mo., police officers attempted to conduct a traffic stop for a lane violation on a black Audi A4 driven by Pardee on Sept. 23, 2017. Pardee fled from officers at speeds exceeding 100 miles per hour for approximately nine miles, the affidavit says, until his vehicle crashed into a guardrail. Pardee and a female passenger got out of the vehicle; Pardee was arrested and the female passenger escaped. Officers found a backpack inside the vehicle that contained numerous clear plastic baggies with a total of more than two kilograms of methamphetamine. Investigators later determined that he had recently sold approximately one kilogram of methamphetamine, the affidavit says.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Drug Enforcement Administration, the Plattsburg, Mo., Police Department; the Atchison County, Kan., Sheriff’s Department; the Buchanan County Drug Strike Force and Sheriff’s Department; the Jackson County Drug Task Force; the Clinton County, Mo., Sheriff’s Department; the Missouri State Highway Patrol; the Cass County, Mo., Sheriff’s Department; and the Clay County Drug Task Force.
Five Harrisburg Men Charged with Drug and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Colby Syhur Grant, age 23, William Chism, III, age 27, Richard Earl Davis, age 25, John R. Wilson, Jr., age 38, and Henry Ferrer, age 40, all of Harrisburg, Pennsylvania, were charged on November 29, 2017, in a thirty-one count superseding indictment with unlawful possession of firearms and drug distribution. The indictment was unsealed following the arrest of the defendants.
According to United States Attorney David J. Freed, the men are alleged to have engaged in a scheme between October 2016 and April 2017, to purchase firearms illegally by using a “straw purchaser,” alleged in the indictment to be Chism, to purchase firearms because they were prohibited from doing so. Grant is also charged with drug trafficking. Grant and Davis are also charged with possessing firearms in furtherance of drug trafficking. Davis is also charged with obstructing the investigation by causing the disposal of a firearm so law enforcement officers would not find it.
The charges stem from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney James T. Clancy is prosecuting the case
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and 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 for possession of a firearm in furtherance of drug trafficking is life in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for possession with intent to distribute controlled substances is 20 years in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for making false statements to buy firearms is 10 years in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for obstruction of justice is 5 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Federal Law Enforcement Seizes Rifles, Shotguns and Ammunition from Melrose Park Home of Suspected Drug DealerRead the Press Release
CHICAGO — Federal authorities have seized rifles, shotguns and ammunition from the Melrose Park home of a man who allegedly brought a gun to a drug deal.
JOSE MENDOZA illegally sold four rifles and ten rounds of ammunition on Nov. 21, 2017, in a parking lot of a fitness center in Melrose Park, according to a criminal complaint and affidavit filed in federal court in Chicago. Unbeknownst to Mendoza, the buyer was an undercover law enforcement employee, the complaint states.
Mendoza and two co-defendants were arrested on Nov. 30, 2017, after they attempted to purchase two kilograms of cocaine from the undercover law enforcement employee in the parking lot of a home improvement store in Northlake, the complaint states. At the time of the attempted drug deal, Mendoza was carrying a handgun in his jacket pocket, according to the complaint. During a subsequent law enforcement search of Mendoza’s residence in Melrose Park, authorities discovered another handgun, two rifles, five shotguns, and ammunition, the complaint states.
The complaint charges Mendoza, 53, with possession of a firearm during a drug trafficking crime. He and the two co-defendants, MIGUEL PINEDA, 48, of River Grove, and ALEJANDRO SANDOVAL, 25, of Waukegan, are also charged with conspiracy to possess cocaine with the intent to distribute. Detention hearings for Pineda and Sandoval are scheduled for today before U.S. Magistrate Judge Susan E. Cox in Chicago. A detention hearing for Mendoza is set for Dec. 7, 2017, at 2:30 p.m. before Judge Cox.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Schiller Park Police Department and Elgin Police Department provided valuable assistance.
According to the complaint, the defendants attempted to purchase the cocaine for $57,000 in cash. The money was hidden in a trap compartment in the trunk of a BMW X6 driven by one of the defendants, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Possessing a firearm during a drug trafficking crime is punishable by a maximum sentence of life in prison. The drug charge is punishable by up to 40 years in prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Christine M. O’Neill.
Dunmore Man Charged with 14 Bank Robberies in Northeastern PennsylvaniaRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on November 30, 2017, William Fischer, age 45, of Dunmore, Pennsylvania, was charged in a criminal information with 14 bank robberies, and with brandishing firearms during the course of those bank robberies.
According to United States Attorney David J. Freed, the information alleges that Fischer robbed 14 banks located throughout northeastern Pennsylvania between December 1, 2015 and September 13, 2017. Fischer was apprehended shortly after the September 13, 2017, robbery by the Pennsylvania State Police. For 12 of the offenses, Fischer was charged with robbing the banks while armed. He also was charged with brandishing a firearm during a crime of violence. Fischer’s crime spree netted $203,779; law enforcement recovered $16,769 of the stolen funds.
The United States is seeking forfeiture of 14 handguns, rifles, shotguns, and assault rifles, assorted ammunition, and a ballistic vest seized during the investigation. The United States also is seeking forfeiture of a Scranton, Pennsylvania property.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and by numerous local law enforcement authorities throughout northeastern Pennsylvania. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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 penalties under federal law for the combined charges is life imprisonment, a term of supervised release following imprisonment, and a fine. The firearm charge carries a mandatory seven-year sentence that is to run consecutive to any sentence received for the bank robbery offenses. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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District Man Sentenced to Eight-Year Prison Term for Breaking into Numerous Downtown OfficesRead the Press Release
WASHINGTON – Phillip Lomax, 57, of Washington, D.C., has been sentenced to an eight-year prison term for a series of burglaries earlier this year at numerous office buildings in downtown Washington, U.S. Attorney Jessie K. Liu announced today.
Lomax pled guilty in September 2017, in the Superior Court of the District of Columbia, to eight counts of second-degree burglary. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of five to 10 years in prison. The Honorable Danya A. Dayson accepted the plea and sentenced Lomax accordingly on Dec. 1, 2017. Following his prison term, Lomax will be placed on three years of supervised release.
According to the government’s evidence, Lomax targeted an area of downtown known as the Golden Triangle Business Improvement District, a 43-block neighborhood that stretches from the White House to Dupont Circle. From January through May of 2017, Lomax broke into more than 20 commercial properties in various office buildings, often entering more than one suite within the same building. According to the government’s evidence, he broke doorways, doors, and locks to enter buildings and office spaces, disabled building security camera recording equipment, and took cash, cameras, computers, credit cards, and other items. The crimes typically took place during overnight hours and were discovered the following business day.
Lomax was arrested on May 19, 2017, following an investigation by the Metropolitan Police Department (MPD). He has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from MPD’s First and Second Police Districts. She also expressed appreciation for the assistance provided by the Golden Triangle Business Improvement District and Admiral Security Services. Finally, she acknowledged the efforts of Assistant U.S. Attorney Gregory Rosen, who investigated and prosecuted the case.
District Man Sentenced to 20 Years in Prison for Slaying of His 81-Year-Old MotherRead the Press Release
WASHINGTON – Derek Cook, 52, has been sentenced to 20 years in prison for killing his mother last summer at their apartment in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Cook pled guilty in September 2017, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 20 years in prison. The Honorable Zoe Bush accepted the plea and sentenced the defendant on Dec. 1, 2017. Upon completion of his prison term, Cook will be placed on five years of supervised release.
According to a proffer of facts submitted at the plea hearing, on the night of Aug. 12, 2017, Cook was having a conversation with his 81-year-old mother, Ann Alfredia Cook, in the bedroom of their apartment in the 5000 block of Fourth Street NE. Cook began to repeatedly strike his mother with a closed first, and she yelled for help. Cook also struck his mother repeatedly with a wooden stick and an iron, hitting her on various parts of her face and body. At the time of the beating, his mother was unarmed and in bed.
The Metropolitan Police Department (MPD) arrived at the apartment at about 10:45 p.m., and Cook let them into the apartment building. However, he would not let police into the apartment. To gain entry, the police had to ram down the apartment door. After doing so, police found Ms. Cook, who was severely injured. She was taken to a hospital, where she died later that night. Derek Cook was arrested and has remained in custody ever since.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of Assistant U.S Attorney Thomas N. Saunders, who investigated and prosecuted the matter.
Detroit Man Sentenced to a Year and a Day for Operating an Unlicensed Bitcoin BusinessRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Sal Mansy, 41, of Detroit, Michigan, and TV TOYZ, LLC, a Michigan corporation, were sentenced today in U.S. District Court for operating an unlicensed money-service business. Mansy was sentenced to a year and a day in prison and three years of supervised release. TV TOYZ, LLC was sentenced to three years of probation. The defendants were also ordered to forfeit about $118,000 worth of cash and bitcoin. Guilty pleas were entered on May 17, 2017.
According to court documents, between August 2013 and June 2015, Mansy bought and sold about $2.4 million worth of the virtual currency “Bitcoin” online for profit. Mansy funneled his Bitcoin transactions through the business bank account of TV TOYZ, a corporation he owned and operated. Mansy engaged in these Bitcoin transactions without registering his money-service business with FinCEN (the Financial Crimes Enforcement Network, a branch of the U.S. Treasury Department). It is against federal law for a money-service business to exchange or transfer Bitcoin without registering. Mansy was aware that he was required to register with FinCEN. A year-long investigation into Mansy’s activities culminated in June 2015 with a search of his Detroit residence and the seizure of about $118,000 worth of cash and bitcoin.
The investigation was conducted by the Portland, Maine and Detroit, Michigan offices of U.S. Immigration & Customs Enforcement’s Homeland Security Investigations; and the Saco Police Department.
Dallas-Based Physician-Owned Hospital to Pay $7.5 Million to Settle Allegations of Paying Kickbacks to Physicians in Exchange for Surgical ReferralsRead the Press Release
WASHINGTON – Pine Creek Medical Center LLC (“Pine Creek”), a physician-owned hospital serving the Dallas/Fort Worth area, has agreed to pay $7.5 million to resolve claims that it violated the False Claims Act by paying physicians kickbacks in the form of marketing services in exchange for surgical referrals, the Department of Justice announced today.
“Health care providers that attempt to profit from illegal kickbacks will be held accountable,” said Principal Deputy Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “Improper financial incentives can distort medical decision making and drive up healthcare costs for federal health care programs and their beneficiaries.”
The government alleged that, between 2009 and 2014, Pine Creek engaged in an illegal kickback scheme whereby the hospital would pay for marketing and/or advertising services on physicians’ behalf and, in return, the physicians would refer their patients, including Medicare and TRICARE beneficiaries, to Pine Creek. Among other things, Pine Creek allegedly paid for advertisements on behalf of the physicians in a number of local and regional publications. Pine Creek also allegedly paid for radio and television advertising, pay-per-click advertising campaigns, billboards, website upgrades, brochures, and business cards, as well as other forms of marketing to induce physicians to refer patients to Pine Creek for medical services.
“The United States Attorney’s Office, in coordination with our partners at Main Justice and HHS-OIG, have and will continue to aggressively pursue those that violate the Anti-Kickback Statute, regardless of the nature or form that the kickback takes,” said Erin Nealy Cox, the U.S. Attorney for the Northern District of Texas. “We must hold individuals and entities responsible for improperly furthering their financial interests at the expense of the federal health care programs.”
As part of the settlement, Pine Creek has agreed to enter into a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG), which obligates the defendants to undertake substantial internal compliance reforms for the next five years.
“Hospitals that try to boost their profits by paying kickbacks to physicians will instead pay for their improper conduct,” said Special Agent in Charge C.J. Porter, Department of Health and Human Services, Office of Inspector General’s Dallas Region. “We will continue to investigate such illegal business arrangements that undermine impartial medical judgment.”
The settlement resolves allegations originally brought in a lawsuit filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers, Suzanne Scott and Savannah Sogar, former employees of Pine Creek’s marketing department, will receive $1,125,000.
The government’s intervention in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The case was handled by the U.S. Attorney’s Office for the Northern District of Texas and the Justice Department’s Civil Division, with assistance from the Federal Bureau of Investigation, and in coordination with the U.S. Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Suzanne Scott, et al. v. Pine Creek Medical Center, LLC, Case No. 3:14-cv-3065 (N.D. Tex.). The claims settled by this agreement are allegations only; there has been no determination of liability.
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Dallas Man Sentenced to 96 Months in Federal Prison for Firearm and Drug OffensesRead the Press Release
DALLAS — A 37-year-old man from Dallas, Laroy Damont Johnson, was sentenced today before U.S. District Judge Sam A. Lindsay to serve a total of 96 months in federal prison for drug and firearm offenses, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
In August 2017, Johnson was convicted of one count of possession with intent to distribute a controlled substance, namely, heroin, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of being a felon in possession of a firearm. Johnson has been in custody since the time of his arrest in June 2016.
According to evidence presented at trial, Johnson was staying at a hotel room in Dallas that he used to sell heroin. Law enforcement searched the room and found Johnson sitting on the couch next to three cell phones and nearly $5,000 cash; distribution quantities of heroin in the fridge; a table covered in what appeared to be heroin residue, along with Xanax pills in a plastic baggie, cocaine, a digital scale, and a razor blade; and a loaded firearm wedged between the mattress and the box spring of the bed. The government presented additional evidence suggesting that Johnson had been staying in the room for several days distributing drugs.
The Drug Enforcement Administration and the Irving Police Department investigated. Assistant U.S. Attorneys Andrew Wirmani and Jamie L. Hoxie prosecuted the case.
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Charleston drug dealer pleads guilty to federal heroin chargeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal heroin crime, announced United States Attorney Carol Casto. Christopher Rush, 32, entered his guilty plea to distribution of heroin.
Rush admitted that on May 10, 2017, he sold heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team. The drug deal took place in Charleston. He also admitted that he sold heroin, fentanyl, and methamphetamine to the same confidential informant on three other occasions. Officers executed a search warrant at Rush’s residence in Charleston on May 31, 2017, and found in excess of 100 grams of methamphetamine. Rush additionally took responsibility for all the drug trafficking activity charged in the indictment.
Rush faces up to 20 years in federal prison when he is sentenced on March 14, 2018.
The case against Rush was investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorneys Haley Bunn and Timothy D. Boggess are in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Chapel Hill Man Sentenced to Federal Prison for Defrauding UNC Newman Center Catholic Student Parish to Fund Lavish LifestyleRead the Press Release
GREENSBORO, N.C. – A Chapel Hill man was recently sentenced to 57 months in federal prison on charges of bank fraud, access device fraud, and aggravated identity theft, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.
Brian Lee CANSLER, 27, of Chapel Hill, North Carolina, was sentenced on November 27, 2017, by the Honorable Catherine C. Eagles, United States District Judge for the Middle District of North Carolina. CANSLER previously pleaded guilty to charges relating to his tenure as Financial Director of the UNC Newman Center Catholic Student Parish, a Catholic student ministry and parish located at the University of North Carolina at Chapel Hill. The UNC Student Parish ministers to both the UNC student body and the Chapel Hill community. CANSLER worked for the UNC Student Parish in various roles from February 2014 to July of 2016. From September 2014 to his termination, CANSLER served as Financial Director of the UNC Student Parish. CANSLER pleaded guilty to bank fraud in violation of Title 18, United States Code, Section 1344(2) for counterfeiting UNC Student Parish checks, aggravated identity theft in violation of Title 28, United States Code, Section 1028A for forging the signature of the then Pastor of the parish on counterfeit checks and to access device fraud in violation of Title 18, United States Code, Section 1029(a)(2) for misuse of the UNC Student Parish Bank of America card issued to him for use for parish business.
CANSLER exploited his position as finance director to defraud the UNC Parish. First, he fraudulently obtained approximately $8,000 by making two parish checks payable to himself in the amounts of $4,500 and $3,500. CANSLER forged the signature of then serving pastor onto both fraudulent checks and presented them for payment from the UNC Parish’s account at PNC Bank.
Second, CANSLER fraudulently misused a Bank of America card and a PNC Bank credit card issued to the UNC Student Parish for official parish use. CANSLER was authorized to use these credit cards only for parish expenses such as liturgical and office supplies. However, from October 2014 to July 2016, CANSLER made over $146,000 in unauthorized purchases with the credit cards and paid the bill with UNC Student Parish funds. These purchases included fine dining, clothing, computer products and travel. CANSLER used UNC Parish credit cards to pay for trips to London, Brussels, and Disney World and to Las Vegas to see Celine Dion in concert. CANSLER or his girlfriend posted photos from these parish-funded trips on Facebook. CANSLER used his position as Finance Director at the Student Parish to pay for these charges with Parish funds.
In addition to a 57-month term of imprisonment, Judge Eagles sentenced CANSLER to five years of supervised release and ordered him to pay over $171,000 in restitution.
The United States Postal Inspection Service and the United States Department of Treasury Officer of Inspector General Task Force participated in the investigation. Assistant United States Attorney Frank Joseph Chut, Jr. prosecuted the case.
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Canadian Man Sentenced to 46 Months for International Travel to Have Sex with a MinorRead the Press Release
PHOENIX – Today, Dilbagh Singh, 57, of Ontario, Canada, was sentenced by U.S. District Judge Steven P. Logan to 46 months of incarceration. Singh had previously pleaded guilty to international travel with intent to engage in illicit sexual conduct.
Court documents show that in January 2017, Singh began an online relationship with an individual he believed to be a 15-year old girl. Over the course of nearly four months, Singh told the girl that he wanted to engage in various sex acts with her. In May 2017, Singh travelled from Canada to Flagstaff, Ariz., to meet with the girl in person and to have sex with her.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by Homeland Security Investigations. The prosecution was handled by Robert I. Brooks, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8108-PCT-SPL
RELEASE NUMBER: 2017-118_ Singh
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Buffalo Man Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Anthony McCutcheon, 51, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of crack cocaine and possession of a firearm in furtherance of drug trafficking, was sentenced to 132 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between June 2013 and February 25, 2014, the defendant conspired with others to distribute crack cocaine in the Buffalo area. McCutcheon supplied cocaine to co-defendants Troy Cooley, Andre Owens, Morrell Buster, and William Jefferson. During the execution of a search warrant at the defendant’s East Amherst Street residence, law enforcement officers recovered cocaine, crack cocaine, baggies and scales. Officers also recovered a loaded 9mm semi-automatic handgun.
McCutcheon was charged along with Cooley, Owens, Buster, Jefferson, Deandre Sparks, Markiel Hall, Alicia Maghett, and Carmella Rivera. All nine defendants have been convicted.
Today’s sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and the Lackawanna Police Department, under the direction of Chief James Michel.
Bristol Woman Sentenced to 5 Years in Federal Prison for Participating in IRS Impersonation ScamRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NANCY J. FRYE, 51, of Bristol, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by three years of supervised release, for her involvement in an IRS impersonation scam that defrauded hundreds of victims in the United States and Canada.
An IRS impersonation scam is operated by individuals who falsely represent themselves as employees of the IRS to obtain money from victims. Typically, those executing the fraudulent scheme make unsolicited telephone calls to people and tell them that they are IRS agents or officers calling on behalf of the IRS. During the calls, the impersonator tells the call recipient that the recipient has an outstanding debt with the IRS that must be paid immediately. The impersonator then threatens persons with either arrest or a lawsuit if they do not immediately settle the bogus IRS debt. Victims are instructed to wire money to individuals they believe are employees of the IRS in order to avoid the threatened action.
According to court documents and statements made in court, in October 2015, FRYE received phone calls and text messages from individuals who successfully recruited her to pick up money that was wired through MoneyGram and Western Union and to deposit the money into specific bank accounts. FRYE, in turn, recruited Douglas Martin and others to assist her in picking up wired funds from locations in central Connecticut. FRYE then deposited the money that she collected into the bank accounts.
Between October 2015 and June 2016, FRYE, and others working at her direction, received approximately $588,000 in wired funds from approximately 574 victims.Judge Bryant ordered FRYE to pay restitution in the amount of $585,321.
FRYE and Martin were arrested on September 15, 2016.
On June 12, 2017, FRYE pleaded guilty to one count of conspiracy to commit wire fraud.
Martin pleaded guilty to the same charge and, on November 2, 2017, was sentenced to 41 months of imprisonment.
Judge Bryant ordered FRYE, who is released on bond, to report to prison on January 8, 2018.
Since October 2013, TIGTA has received reports of more than 2.1 million impersonation related calls with more than 12,400 victims reporting losses of approximately $62 million.
This matter is being investigated by the Treasury Inspector General for Tax Administration (TIGTA) of the U.S. Department of the Treasury and U.S. Postal Inspection Service. The U.S. Attorney gratefully acknowledges the assistance provided by the Rocky Hill Police Department, Bristol Police Department, and New York State Department of Taxation and Finance.
The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
U.S. Attorney Durham stated that the investigation is ongoing and encouraged individuals who receive impersonation calls, including those who have been victimized by this scheme, to report the information at this link.
Berkeley County woman sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – An Inwood, West Virginia woman was sentenced today to five years probation for a firearms charge, United States Attorney Bill Powell announced.
Julie Elizabeth Lipscomb, age 36, pled guilty to one count of “False Statement During the Purchase of a Firearm” in September 2017. Lipscomb admitted to making a false statement when purchasing two firearms. The crime occurred in August 2015 in Jefferson County.
Special Assistant U.S. Attorney Lydia Lehman prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Bergen County, New Jersey, Man and Woman Charged with Bank RobberyRead the Press Release
NEWARK, N.J. – An Oradell, New Jersey, man and a Hasbrouck Heights, New Jersey, woman, were charged today for their alleged roles in a Bergen County bank robbery, Acting U.S. Attorney William E. Fitzpatrick announced.
Joel Robbins, 47, and Wanda Soel, 52, were arrested Dec. 3, 2017, and are scheduled to make their initial appearances today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. They are each charged by complaint with one count of bank robbery.According to documents filed in this case and statements made in court:
On Dec. 3, 2017, Robbins allegedly robbed the TD Bank in Mahwah, New Jersey. According to video surveillance and witness reports, Robbins walked into the bank wearing gray pants, a black jacket, sunglasses, a dark skull cap, and light-colored latex gloves. As he entered the bank, Robbins pulled a bandana over his face. Soel allegedly waited for Robbins in a Toyota Corolla parked outside the bank.
Robbins pulled a black handgun (later determined to be fake) from his waistband and pointed it at two bank tellers, who said Robbins demanded money from them and warned them not to “make me have to kill you.” The tellers complied and handed Robbins money. Robbins took the money and walked out of the bank, dropping several bills as he departed.
Robbins allegedly got into the passenger seat of the Corolla and Soel drove away. Nearby law enforcement officers, who had received a report of the bank robbery while it was in progress, pursued the Corolla. Soel drove into the parking lot of a nearby hotel, where she and Robbins tried to switch places so Robbins could drive. When Soel got out of the Corolla, she tripped and fell, and Robbins drove away without her. Law enforcement officers arrested Soel in the hotel parking lot.
Robbins drove out of the hotel parking lot but eventually hit a curb, blew a tire, and crashed. Law enforcement officers caught up to the Corolla and arrested Robbins. They recovered U.S. currency sticking out of Robbins’s pants and other cash bills strewn inside the Corolla, along with a fake black handgun. Officers also recovered sunglasses, a bandana, a dark knit cap, and latex gloves from the Corolla, resembling the items Robbins was seen wearing when he robbed the bank. Robbins was wearing a black jacket when he was arrested.
The count of bank robbery with which Robbins and Soel are charged carries a maximum punishment of 20 years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to the charge. He also thanked the Mahwah Township Police Department for its contribution to the case.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Austin Man Admits Role in $4.8 Million TRICARE Fraud ConspiracyRead the Press Release
DALLAS, Texas — Jody Sheffield, 44, of Austin, Texas, pleaded guilty today, before U.S. District Judge Sidney A. Fitzwater, to one count of conspiracy to commit health care fraud stemming from a scheme to defraud TRICARE through the submission of unnecessary toxicology and DNA cancer screening tests. The announcement was made today by Criminal Chief Chad Meacham of the Northern District of Texas.
Sheffield faces a maximum penalty of not more than five years in federal prison, a $250,000 fine, and may be ordered to pay restitution. Sheffield will remain on bond pending sentencing, which is scheduled for May 18, 2017.
According to the plea agreement factual resume filed in the case, , Sheffield was the operations manager for ADAR Group, LLC (ADAR Group), an outpatient toxicology testing facility. Erik Bugen owned and operated ADAR Group. Britt Hawrylak and Matthew Hawrylak were marketers for Xpress Laboratories, Inc. (Xpress Laboratories) and Progen Lab Systems, LLC (Progen Labs), and financiers of ADAR Group.
Starting in May 2015 and continuing through May 2016, ADAR Group collected urine and saliva samples from TRICARE, a healthcare program of the United States Department of Defense (DoD) Military Health System that provided coverage for DoD beneficiaries world-wide, including active duty service members, National Guard and Reserve members, retirees, their dependents, and survivors. The samples were sent to Xpress Laboratories and Progen Labs and billed to TRICARE and private insurance for unnecessary toxicology and DNA cancer screening tests.
Sheffield and Bugen induced TRICARE beneficiaries to provide urine and saliva samples with $50.00 Wal-Mart gift cards. Sheffield and his codefendants disguised the kickback payments as a food assistance program for low income soldiers. They also paid monthly fees to doctors to sign test forms. Ultimately, Bugen obtained signature stamps from the doctors and Sheffield and other ADAR Group employees stamped the testing order forms. Beneficiaries did not see these doctors prior to obtaining the testing, did not receive test results, and did not know the purpose of their samples.
As a result of the scheme, TRICARE was billed approximately $36 million for tests that were not needed, not legitimately prescribed, and which were the product of kickbacks. For these claims, TRICARE paid approximately $4.8 million.
The Defense Criminal Investigative Service, Veteran’s Affairs- Office of Inspector General, and Federal Bureau of Investigation, are investigating. Assistant U.S. Attorney Adrienne Frazior is prosecuting.
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Attorney Sentenced to 2 Years in Prison for Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DONALD J. McCARTHY, 67, of East Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for tax evasion.
According to court documents and statements made in court, for the tax years 1997 through 1999, 2001, 2003, and 2008 through 2011, McCARTHY, an attorney, filed federal personal income tax returns, but failed to pay the outstanding tax balances due and owing for those years, or failed to pay interest and penalties that had accrued on outstanding amounts. In addition, for the tax years 2012 through 2014, McCARTHY did not file personal income tax returns at all, and failed to pay taxes that were due and owing, as well as interest and penalties that had accrued on outstanding amounts.
The investigation revealed that McCARTHY attempted to evade the payment of income taxes by depositing his payroll checks into his personal bank account and then, shortly thereafter, withdrawing a substantial portion of the monies in cash and bank checks.
By June 2015, when he learned of the criminal investigation being conducted by the Internal Revenue Service, McCARTHY owed $1,437,037 in back taxes, interest and penalties. McCARTHY’s restitution to the IRS now totals $1,522,734.
On September 11, 2017, McCARTHY pleaded guilty to one count of tax evasion.
McCARTHY, who is released on a $50,000 bond, was ordered to report to prison on January 31, 2018.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Albuquerque Woman Pleads Guilty to Federal Drug Trafficking and Mail Theft ChargesRead the Press Release
ALBUQUERQUE – JoAnn Bell, 37, of Albuquerque, N.M., pled guilty today in federal court to drug trafficking and theft of mail charges under a plea agreement with the U.S. Attorney’s Office that recommends a five year term of imprisonment.
Bell and co-defendant Nathan Berke, 37, also of Albuquerque, were indicted on May 24, 2017. The 14-count indictment charges Bell and Berke with conspiracy to possess methamphetamine with intent to distribute, possession of methamphetamine with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime and possession of stolen mail on July 28, 2016, in Bernalillo County, N.M. Bell was charged individually with being a felon in possession of a firearm on July 28, 2016, in Bernalillo County. Berke was charged individually with possession of methamphetamine with intent to distribute on Aug. 9, 2016, in San Juan County, N.M.; being a felon in possession of a firearm on July 28, 2016, in Bernalillo County; possession of stolen mail on Aug. 9, 2016, in San Juan County; and three counts of bank fraud and three counts of aggravated identity theft from July 23, 2016 through July 25, 2016, in New Mexico and Colorado.
During today’s proceedings, Bell pled guilty to conspiracy, possession of methamphetamine with intent to distribute and possession of stolen mail. In entering the guilty plea, Bell admitted that on July 28, 2016, she and another individual were in possession of approximately 100 grams of methamphetamine which they intended to distribute to others. Bell further admitted that on that same day, she was in possession of mail belonging to others that had been stolen from an authorized depository for United States mail.
Berke has entered a plea of not guilty to the charges against him and is pending trial. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
Bell was previously arrested in Sept. 2016, on a criminal complaint charging her with repeatedly stealing mail from U.S. Postal Service mail collection boxes located outside of U.S. Post Offices in Albuquerque by using a “fishing” device she fed into the mailbox to “fish” mail out. Bell was indicted in this case on Oct. 12, 2016, and was charged with stealing and receiving stolen mail on Sept. 18, 2016 in Bernalillo County. On March 30, 2017, Bell pled guilty to the indictment and admitted using a “fishing” device to pull mail out of USPS collection boxes on Sept. 17 and 18, 2016. The sentence imposed in this case will run concurrent to the five-year term of imprisonment Bell has agreed to in her guilty plea entered today.
This case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorneys Nicholas Jon Ganjei and Sean J. Sullivan.
Albuquerque Man Pleads Guilty to Federal Conspiracy and Bank Fraud Charges Arising Out of Mail Theft SchemeRead the Press Release
ALBUQUERQUE – Fernando Cairo-Rosell, 29, of Albuquerque, N.M., pled guilty today in federal court to conspiracy and bank fraud charges arising out of a scheme to steal mail from USPS collection boxes at U.S. Post Offices in the Albuquerque area in July and Aug. 2017.
U.S. Postal Inspectors arrested Cairo-Rosell and co-defendants Jorge R. Cabrera, 20, Hector Lau, 21, and Yarelys Marquez, 19, all of Albuquerque, on Aug. 30, 2017, based on criminal complaints charging them with theft of mail and bank fraud charges. The criminal complaint alleged that in July and Aug. 2017, mail collection boxes at USPS stations in Albuquerque repeatedly were broken into and mail was stolen. The U.S. Postal Inspection Service initiated an investigation into the scheme after receiving complaints that checks deposited in the mail collection boxes had been stolen, altered and deposited into accounts allegedly held by the defendants.
The four defendants were subsequently charged with conspiracy and nine counts of bank fraud in a ten-count indictment, which was filed on Sept. 21, 2017. According to the indictment, the four defendants participated in a conspiracy to commit bank fraud that began in July 2017 and continued until Aug. 2017, and operated in Bernalillo County, N.M. The indictment also charges the four defendants with committing bank fraud against four credit unions that maintain branches in Albuquerque. The indictment alleges that the defendants conspired to commit bank fraud by stealing checks that had been deposited in U.S. mail depositories, altering the checks, and attempting to pass the checks off as legitimate to banking institutions. The indictment alleges that as part of their bank fraud scheme, the defendants deposited checks, which had been altered to make them payable to members of their conspiracy and in amounts ranging from $500 to $4,754, into bank accounts held by members of the conspiracy.
During today’s proceedings, Cairo-Rosell pled guilty to conspiracy and five counts of bank fraud under a plea agreement with the U.S. Attorney’s Office. In entering the guilty plea, Cairo-Rosell admitted that from July 10, 2017 through Aug. 9, 2017, he conspired with others to deposit altered checks which Cairo-Rosell knew had been stolen from mailboxes throughout Albuquerque. Cairo-Rosell further admitted that on at least four occasions, he allowed his bank account at an Albuquerque-area credit union to be used to deposit checks in exchange for a portion of the check-cashing proceeds.
At sentencing, Cairo-Rosell faces a maximum penalty of 30 years in federal prison. A sentencing hearing has yet to be scheduled.
Cabrera, Lau and Marquez have entered pleas of not guilty to the charges against them and are pending trial. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley.
Friday 1 December 2017
York Man Sentenced to 15 Years’ Imprisonment for Federal Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney's Office for the Middle District of Pennsylvania announced today that on November 30, 2017, Senior District Court Judge Sylvia H. Rambo sentenced Quan Leroy Gross, age 46, of York, Pennsylvania, to 180 months’ imprisonment. Gross pleaded guilty to possessing a firearm as a convicted felon before Judge Rambo on July 18, 2017.
According to United States Attorney David J. Freed, law enforcement apprehended Gross when he possessed a loaded firearm in York City during a drug transaction. As a previously convicted felon, Gross is prohibited from possessing firearms.
Gross faced a mandatory minimum of fifteen years imprisonment and a statutory maximum of life imprisonment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant United States Attorney Meredith A. Taylor prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Woman Sentenced for Attempting to Steal over $200K in ChecksRead the Press Release
ALEXANDRIA, Va. – A Maryland woman was sentenced today to 20 months in prison for bank fraud.
According to court documents, Linette Jones, 29, impersonated identity theft victims, opened bank accounts in identity theft victims’ names, and attempted to deposit stolen checks in the fraudulently opened bank accounts. Then Jones attempted to withdraw funds after the stolen checks were cleared by commercial banks. In one instance in August 2016, Jones attempted to negotiate a stolen $230,000 treasury check while posing as an identity theft victim. In total, Jones attempted to steal more than $285,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Eric M. Thorson, Inspector General for the U.S. Department of Treasury, Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Daniel W. Lucas, Inspector General, District of Columbia, made the announcement after sentencing by U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys Nathaniel Smith III and Grace L. Hill 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. 1:17-cr-93.
Woman Pleads Guilty to Case Involving Guns Recovered at Homicide SceneRead the Press Release
ALEXANDRIA, Va. – An Alexandria woman who purchased eight firearms in 34 days, including two that were recovered at a homicide scene in Alexandria, pleaded guilty today to providing false statements to investigators.
According to court documents, Edna Aminata Conteh, 22, turned 21 years-old in May 2016. Between May 20 and June 23, 2016, Conteh purchased the following eight firearms:
Date, 2016
Type
Status
May 20
Kel-Tec, P11, 9mm pistol
Recovered during execution of a search warrant in on July 30, 2016
May 31
Walther, PPS, 9mm pistol
Recovered during traffic stop in Prince George’s County, Md., on Aug. 26, 2016
June 11
Taurus, 82, .38 Special revolver
Not recovered
June 13
Smith & Wesson, BG380, .380 pistol
Recovered at homicide scene in Alexandria
June 13
Smith & Wesson, M&P, .40 pistol
Not recovered
June 17
Walther, PK380, .380 pistol
Not recovered
June 18
Ruger, LC380, .380 pistol
Not recovered
June 23
Taurus, 85, .38 Special revolver
Recovered at homicide scene in Alexandria
During multiple interviews with ATF agents, Conteh made a number of materially false and misleading statements, including that all eight firearms were stolen from her vehicle. That statement was materially false and misleading because Conteh knew one of her friends (Individual 1) had accompanied her to at least one federal firearms licensee and sold the weapons to various individuals.
After the interview, agents learned that two of the firearms purchased by Conteh were recovered by the Alexandria Police Department (APD) at a homicide scene in north Old Town near the Braddock Road metro station. Agents later learned that law enforcement recovered two other firearms purchased by Conteh.
Conteh faces a maximum penalty of five years in prison on March 23, 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Carina A. Cuellar is 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. 1:17-cr-283.
Wilmerding Felon Charged with Illegally Possessing Revolver and FentanylRead the Press Release
PITTSBURGH - One Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal firearms and narcotics laws, Acting United States Attorney Soo C. Song announced today.
The two-count superseding indictment, returned yesterday, named Michael Dillon Burrows, age 31, as the sole defendant.
According to superseding indictment presented to the court, on September 8, 2016, Burrows possessed a Smith & Wesson 38 special, .38 caliber revolver. Burrows has previously been convicted of a felony and is prohibited from possessing a firearm. The superseding indictment further charges that on September 8, 2016, Burrows possessed with the intent to distribute a quantity of fentanyl.
The law provides for a maximum total sentence of not more than 20 years in prison, 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 offenses and the prior criminal history of the defendant.
Assistant United States Attorney Stephen S. Gilson is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Adams Township Police Department conducted the investigation leading to the superseding indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Virginia Man Sentenced to 15 Years in Prison for Sex Trafficking 15-Year-Old GirlRead the Press Release
A Triangle, Virginia man was sentenced today to 180 months in federal prison for multiple sex trafficking offenses.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office (WFO) made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Christian Don’Tae Hood, 25, was convicted by a federal jury in August 2017 of sex trafficking of a minor and conspiracy to commit sex trafficking of a minor. On the first day of trial, Hood’s co-defendant Abdul Bangura, 20, pleaded guilty to, among other offenses, sex trafficking of a minor and production of child pornography.
According to the evidence presented at trial and other court documents, Hood and Bangura met the 15-year-old victim while she was living with her aunt at the Econolodge in Dumfries, Virginia. The defendants, working together, recruited the minor into their prostitution scheme and began to advertise her on Backpage.com. The minor victim was transported to multiple motels throughout Northern Virginia, Washington, D.C. and Maryland for commercial sex acts. After customers paid money to sexually exploit the minor victim, the defendants collected a portion of the money. Defendant Bangura also produced a video of child pornography involving the minor victim.
The FBI WFO’s Child Exploitation and Human Trafficking Task Force, Prince William County Police and Washington D.C. Metropolitan Police investigated this case. Assistant U.S. Attorney Maureen Cain of the Eastern District of Virginia and Trial Attorney Kyle P. Reynolds of the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division are prosecuting the case.
Violent Crime Federal Prosecution UpdateRead the Press Release
St. Louis, MO – The United States Attorney’s Office will prosecute aggressively violent criminals and drug dealers. Federal prosecution is a powerful tool in the fight to reduce violent crime. Below is a list of defendants prosecuted federally in November:
Wilbert Anderson, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Chad Coffman, 36, was indicted by a federal grand jury on two felony counts of possessing with intent to distribute methamphetamine; one felony count of possessing one or more firearms in furtherance of a drug trafficking crime; and one felony count of felon in possession of a firearm.
Dedrick Conley, 26, East St. Louis, IL, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to district cocaine base; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Harold Hoskin, 25, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Domonique Israel, 24, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute cocaine, cocaine base, heroin, and marijuana; one felony count of possession of a firearm in furtherance of a drug trafficking crime; and one felony count of felon in possession of a firearm.
Joshua Jackson, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of one or more firearms.
Novelle Jackson, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Donovan Jacobs, 25, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Earl McNeal, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Willie Mitchell, 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Dwayne Ramsey, 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Forrest Smith, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Terrill Watt, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Marvin Williams, 42, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of forcible assault with a firearm; one felony count of possession with intent to distribute marijuana; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Frank Hart, 44, Jennings, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of attempted carjacking by threat of force or violence; and one felony count of discharge of a firearm in furtherance of a crime of violence.
Kerry Caldwell, 53, St. Louis, was indicted by a federal grand jury on one felony count of carjacking, attempted carjacking; one felony count of brandishing a firearm in furtherance of a crime of violence; and one felony count of felon in possession of a firearm.
Juan Chase, 46, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm(s).
Sidney Johnson, 37, was indicted by a federal grand jury on one felony count of conspiracy to possess with the intent to distribute methamphetamine; one felony count of felon in possession of a firearm; and one felony count of making false statements to a dealer.
Jacqueline Scott, 32, was indicted by a federal grand jury on one felony count of conspiracy to possess with the intent to distribute methamphetamine; one felony count of felon in possession of a firearm; and one felony count of making false statements to a dealer.
Martavis Hines, 29, was indicted by a federal grand jury on one felony count of conspiracy to possess with the intent to distribute methamphetamine; one felony count of felon in possession of a firearm; and one felony count of making false statements to a dealer.
Lonzo Patrick, 53, St. Louis, was indicted by a federal grand jury on one felony count of armed robbery and one felony count of brandishing a firearm in furtherance of a crime of violence.
Keith West, 59, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jurmont Clark, 25, St. Louis, was indicted by a federal grand jury on one felony count of possession with the intent to distribute cocaine, cocaine base (crack), heroin, and marijuana (schedule I and II controlled substances); possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Melvin Cooper, 48, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Sylvester Ivory, 39, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Corey Norris, Jr., 18, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute heroin; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Alex Wheelis, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Joshua Brison, 23, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and one count of possessing a firearm in furtherance of a drug trafficking crime.
Devoshia Gray, 19, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Taleb Jawher, 39, St. Louis, was indicted by a federal grand jury on one felony count of possession of a firearm by an illegal alien.
Keith Miles, 24, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute heroin; and one felony count of possessing a firearm in furtherance of a drug trafficking crime.
Carl Nettles, 55, Park Hills, was indicted by a federal grand jury on one felony count of conspiracy to distribute actual methamphetamine; one count of felon in possession of a firearm; and one count of possessing a firearm in furtherance of a drug trafficking crime.
Marquis Black, 30, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Arthur Jackson, 40, Florissant, pled guilty to on one felony count of felon in possession of a firearm and one felony count of possessing with intent to distribute heroin.
Kevin Bishop, 43, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Stacy L. Bonds, 54, pled guilty to one felony count of felon in possession of a firearm.
Majuan M. Bates, 40, Dallas, TX, pled guilty to one felony count of felon in possession of a firearm.
Michael Jackson, 33, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Eric Kellin, Jr., 31, Normandy, pled guilty to three felony counts of felon in possession of a firearm.
Christopher Dawkins, 34, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Joseph L. Miles, 31, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Demetrius Lewis, 28, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Devon Guice, 27, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Kerry L. Chau, 22, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
James Nunley, 34, Madison County, IL, pled guilty to one felony count of unlawful possession of a firearm by a felon.
Dwayne Bowden, 36, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Armond Calvin, 19, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Ronald A. Golden, Jr., 44, University City, pled guilty to one felony count of robbery of a federally insured institution and one felony count of possession of a firearm in furtherance of a crime of violence.
Alonzo Finger, 34, St. Louis, pled guilty to two felony counts of felon in possession of a firearm.
Arinthius Johnson, 43, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Terrance L. Thomas, 25, St. Louis, pled guilty to one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute heroin; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Deandriss Bowden, 22, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Demetrius A. Simmons, Sr., 34, St. Louis, was sentenced to 77 months in prison for one felony count of felon in possession of a firearm.
Steven Gaines, 26, was sentenced to 21 months in prison for one felony count of felon in possession of a firearm.
Donnell L. Jones, 25, St. Louis, was sentenced to 26 months in prison for one felony count of felon in possession of a firearm.
William A. Anthony, Jr., 42, was sentenced to 81 months in prison for one felony count of felon in possession of a firearm.
Antonio Strong, 31, St. Louis, was sentenced to 137 months in prison for one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute heroin; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Deshaun L. Ceruti, 42, St. Louis County, was sentenced to 80 months in prison for one felony count of felon in possession of a firearm.
Jevon Harris, 23, St. Louis, was sentenced to 18 months in prison for one felony count of felon in possession of a firearm.
Johnny White, 49, St. Louis, was sentenced to 60 months in prison for three felony counts of felon in possession of a firearm.
Hassan L. Johnson, 25, St. Louis, was sentenced to 120 months in prison on one felony count of felon in possession of a firearm.
Robert Neuman, 34, St. Louis, was sentenced to 30 months in prison for one felony count of felon in possession of a firearm.
Dennis Howard, 33, was sentenced to 60 months in prison for one felony count of felon in possession of a firearm.
Christopher Bell, 37, Sikeston, was sentenced to 27 months in prison for one felony count of felon in possession of a firearm.
Floyd Murray, 26, St. Louis, was sentenced to 46 months in prison for one felony count of felon in possession of a firearm.
Robert E. Davis, 29, St. Louis, was sentenced to 44 months in prison for one felony count of felon in possession of a firearm.
Carl L. Winston, 51, St. Louis, was sentenced to 18 months in prison for one felony count of felon in possession of a firearm.
Marquis Hoffman, 32, St. Louis, was sentenced to 41 months in prison for one felony count of felon in possession of a firearm.
Rico Jones, 43, St. Louis, was sentenced to 51 months in prison for one felony of felon in possession of firearm
Kelvin Miller, 37, St. Louis, was sentenced to 24 months in prison for one felony count of felon in possession of a firearm.
Winford Johnson, 33, Moscow Mills, was sentenced to 63 months in prison for one felony count of felon in possession of a firearm.
Jameel Ahman, 36, St. Louis, was sentenced to 120 months for one felony count of unlawful possession of a firearm by a felon.
Kendreal Graham, 51, Collinsville, IL, was sentenced to 155 months in prison for one felony count of brandishing a firearm in furtherance of a crime of violence and for kidnapping.
Michael Brooks, 34, Chesterfield, was sentenced to 12 months in prison for one felony count of felon in possession of a firearm.
William Newsome, 26, St. Louis, was sentenced to 12 months in prison for one felony count of felon in possession of a firearm.
Michael Hodge, 28, St. Louis, was sentenced to 36 months in prison for one felony count of felon in possession of a firearm.
James Bell, 29, St. Louis, was sentenced to 51 months in prison for one felony count of felon in possession of a firearm.
Justin Walker, 26, St. Louis, was sentenced to 12 months in prison for one felony count of felon in possession of a firearm.
Malcolm Johnson, 26, was sentenced to 126 months in prison for one felony count of possessing a firearm in furtherance of a crime of violence, resulting in murder.
Jesse Hampton, 26, was sentenced to 264 months in prison for one felony count of possessing a firearm in furtherance of a crime of violence, resulting in murder.
Vidor, TX, and Houston Area Pharmacists Sentenced to Federal Prison on Bribery and Tax Charges in Connection with Health Care Fraud SchemeRead the Press Release
In Austin today, a federal judge sentenced Brian David Haney, 38-year-old partial owner of Vidor Pharmacy and Kevin Michael Gray, 45-year-old operator of Family Pharmacy, Inc., in the Houston area, each to 28 months in federal prison for bribery and tax violations in connection with a health care fraud scheme announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Sam Sparks ordered that each defendant pay a $100,000 fine; pay $6,500 for the cost of prosecution; and, be placed on supervised release for a period of three years after completing his prison term. Judge Sparks also ordered that Haney pay $351,947 restitution to the IRS; Gray, $245,692 restitution to the IRS. Judge Sparks also ordered that both defendants pay, jointly and severally, $813,560.87 restitution to the U.S. Department of Labor.
On December 14, 2016, Haney pleaded guilty to a two-count Information charging him with willful offer and payment of illegal remuneration in relation to a federal health care program and one count of making and filing a false Income Tax return. On April 13, 2016, Gray pleaded guilty to the same charges.
By pleading guilty, the defendants admitted that for over a two-year period ending in January 2014, they paid kickbacks totaling $813,560.87 to Garry Wayne Craighead. Craighead, a chiropractor, organized and controlled multiple health care related entities, including eight clinics in Texas (Dallas, Fort Worth, Killeen, Austin, San Antonio, Corpus Christi, Weslaco, and Beaumont), that derived substantial revenue from the U.S. Department of Labor’s health care benefit programs. Haney and Gray paid Craighead cash for patient referrals of federally-insured employees in need of prescription services.
Both defendants also admitted to filing a false Income Tax return in which they substantially understated their total income, adjusted gross income and taxable income.
On December 4, 2015, Craighead pleaded guilty to one count of solicitation and receipt of illegal remunerations in federal health care programs and one count of engaging in monetary transactions in property derived from specified unlawful activity. On June 10, 2016, Craighead was sentenced to 14 years in federal prison and ordered to pay over $17 million restitution to the U.S. Department of Labor.
“Today’s sentencings of Brian Haney and Kevin Gray further shows that IRS Criminal Investigation is working vigorously to stop perpetrators who devise elaborate methods to conceal their fraudulent proceeds from health care fraud,” said Acting Special Agent in Charge Troy Caldron, San Antonio Field Office. “Money gained through illegal sources, such as healthcare fraud, is part of the untaxed, underground economy. This untaxed underground economy poses a threat to our voluntary tax compliance system and undermines the overall public confidence in our American system of taxation.”
“To ensure patient referrals of federally-insured employees in need of prescription services, pharmacists Brian Haney and Kevin Gray paid more than $800,000 in illegal kickbacks to Dr. Garry Craighead, who is currently serving a 14-year sentence on related charges. We will continue to work with our law enforcement partners to investigate medical providers who exploit injured American workers and defraud the Office of Workers’ Compensation Programs for their personal gain,” said Special Agent in Charge Steven Grell, U.S. Department of Labor, Office of Inspector General, Dallas Region.
“The sentences issued today should be an example to those healthcare providers engaging in illegal schemes that the government is vigilant and fraud committed against federal benefit programs is a serious offense that will not be tolerated,” said Special Agent in Charge Christopher Cave, U.S. Postal Service Office of Inspector General, Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners, will continue to vigorously investigate these types of cases in order to protect the Office of Workers’ Compensation Programs and United States Postal Service from further fraud and abuse.”
“We are very pleased with today’s announcement,” said Director Frank Robey, U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “This is a true testament to our continued commitment to work closely and seamlessly with our outstanding fellow law enforcement agencies to help bring those to justice who attempt to defraud the U.S. Government and U.S. Army.”
“The sentences handed down today should send a strong message to healthcare providers, and others who contemplate engaging in illegal kickback schemes, that they will be held accountable for their actions. The FBI will continue to work with our partners, to aggressively investigate and prosecute criminals who abuse the system for personal enrichment, at the expense of hard working U.S. taxpayers,” stated FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The U.S. Postal Service Office of the Inspector General, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the U.S. Department of Labor Office of the Inspector General conducted this investigation. Assistant U.S. Attorneys James Blankinship and Mark Marshall are prosecuting this case for the government.
Two Miami-Dade County Residents Sentenced for Conspiring to Possess with Intent to Distribute HydromorphoneRead the Press Release
On November 28, 2017, Oreste Abreu, 50, of Hialeah, was sentenced to 51 months imprisonment, and Daniel Lezcano-Morejon, 39, of Hialeah, to 46 months imprisonment, for conspiring to possess with intent to distribute the opioid hydromorphone.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Abreu and Lezcano-Morejon previously pled guilty to conspiracy to possess with intent to distribute hydromorphone. Hydromorphone, sold under the brand name Diluadid, is an opioid that has contributed to the current crisis involving this class of drugs.
Between March 21, 2012 and August 16, 2012, DEA, in coordination with MDPD, conducted controlled purchases of hydromorphone pills from Abreu and Lezcano-Morejon. During this period, on various occasions, an undercover MDPD detective purchased hydromorphone pills from Abreu, typically at Abreu’s south Florida residence. Specifically, on March 21, 2012, the undercover officer purchased 100 pills from Abreu for $1,200; on April 18, 2012, the undercover officer purchased 200 pills from Abreu for $2,400; and on May 31, 2012, the undercover officer purchased 200 pills from Abreu for $2,600. On each of these occasions, Lezcano-Morejon supplied Abreu the hydromorphone pills. In addition, on July 6, 2012, the undercover officer purchased 100 hydromorphone pills from Abreu for $1,300 at a Wal-Mart parking lot in Hialeah; and on August 16, 2012, the undercover officer purchased 230 hydromorphone pills from Abreu for $3,000 at Abreu’s residence.
During that same time, law enforcement also intercepted Abreu’s phone conversations. The interceptions often involved Abreu requesting pills from either Lezcano-Morejon or other drug sources-of-supply for further illicit distribution.
Mr. Greenberg commended the investigative efforts of the DEA and MDPD. This case was prosecuted by Assistant U.S. Attorney Robert Brady.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Two Men Plead Sentenced in Connection to Methamphetamine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jared Mendez, 32, of Bradford, NY, who was convicted of theft of anhydrous ammonia with knowledge it would be used to manufacture methamphetamine, was sentenced to 46 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr. In addition, Terry Champion, who was convicted of possession of a listed chemical with knowledge it would be used to manufacture a controlled substance, was sentenced to 63 months in prison.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that between June 2012, and May 4, 2016, Mendez and Champion conspired with Scott Kennedy and others to manufacture and distribute methamphetamine.
During the course of the conspiracy, Scott Kennedy distributed large amounts of methamphetamine with and to people throughout the area of Schuyler, Chemung, and Steuben Counties in New York. During that time, Kennedy received the assistance of numerous co-conspirators who provided him with supplies with the intent that he would use those supplies to manufacture methamphetamine. Between July 2015 and October 2015, Jared Mendez stole anhydrous ammonia and sold it to Kennedy.
Between January 2016, and May 4, 2016, Terry Champion obtained quantities of pseudoephedrine and sold it to Scott Kennedy. In addition, on January 22, 2016, Champion possessed approximately 182 pseudoephedrine pills for the purpose of manufacturing methamphetamine.
Co-defendant Wendy Kennedy has been convicted and is awaiting sentencing. Charges are pending against co-defendant Quinton Harrison. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencings are the result of an investigation by the New York State Police, Special Investigations Unit, Rochester; the New York State Police, CNET Southern Tier, under the direction of Major Richard Allen; the Schuyler County Sheriff’s Department, under the direction of William Yessman; and the Schuyler County District Attorney’s Office, under the direction
Two Men Plead Guilty to Defrauding Investors of over $7 Million in Fuel Cell Company Investor Fraud SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that GEORGE DOUMANIS and EMANUEL PANTELAKIS, a/k/a “Manny,” each pled guilty today to defrauding investors in Terminus Energy, Inc., a publicly traded penny stock. DOUMANIS and PANTELAKIS each pled guilty to conspiracy to commit securities fraud before U.S. Magistrate Judge Debra Freeman. They will be sentenced before U.S. District Judge Andrew L. Carter on April 9, 2018.
Acting U.S. Attorney Joon H. Kim said: “Today, George Doumanis and Emanuel Pantelakis both admitted to operating an investment scheme by luring investors in a supposed fuel cell technology which they knew to be fictitious. In furtherance of their scheme, the two used misleading documents to dupe investors into contributing over $7 million into their phony penny stock – which they eventually used to pay their own personal expenses. This Office and our law enforcement partners will continue to keep a watchful eye on the investment markets and prosecute those who mislead the investing public.”
According to the allegations contained in the Indictment filed against DOUMANIS, PANTELAKIS and their co-conspirator, and statements made in related court filings and proceedings[1]:
From at least February 2008 until at least 2014, DOUMANIS and PANTELAKIS, along with their co-conspirator Danny Pratte, engaged in a scheme to defraud investors in the publicly traded company Terminus Energy, Inc. (“Terminus”), by inducing victims to invest in Terminus stock through material misrepresentations and omissions and by misappropriating investor funds for their own purposes.
Terminus was purportedly producing and marketing a commercially viable “fuel cell” as an alternative energy source. DOUMANIS, PANTELAKIS, and Pratte sold shares of Terminus to investors through private offerings. In connection with such sales, DOUMANIS, PANTELAKIS, and Pratte provided investors with private placement memorandums (“PPMs”) that contained materially false and misleading statements. For example, the PPMs falsely stated that (i) Terminus had completed its goal of developing a working fuel cell in mid-2008; (ii) Terminus would use specified investors’ funds to make payment on third-party development contracts designed to manufacture a working fuel cell; and (iii) Terminus would pay no more than 10 percent in sales commissions. In truth, and as DOUMANIS, PANTELAKIS, and Pratte well knew, (i) there was no working fuel cell; (ii) the third party contracts had been cancelled after Terminus failed to make payment to the third parties; and (iii) unregistered salesmen were receiving commissions far in excess of 10 percent. The PPMs also failed to accurately disclose the involvement of either DOUMANIS, who was barred from involvement in penny stocks as a result of a 2003 conviction for conspiracy to commit securities fraud, wire fraud, and mail fraud, or PANTELAKIS, who had been permanently barred by the Financial Industry Regulatory Authority (“FINRA”) following allegations that he had made fraudulent misrepresentations to customers in connection with the sale of securities. DOUMANIS, PANTELAKIS, and Pratte also caused similar misrepresentations to be made in business plans, executive summaries, and presentations shared with potential investors, as well as in publicly available press releases. Through these false and misleading statements, DOUMANIS, PANTELAKIS, and Pratte fraudulently induced investors to purchase nearly $8 million of Terminus stock.
Rather than use the investor money as promised, DOUMANIS, PANTELAKIS, and Pratte misappropriated the funds for their own use and for use by their co-conspirators. For example, DOUMANIS, entities affiliated with DOUMANIS, and certain of his family members received at least $570,000, including payments to personal credit cards and toward DOUMANIS’s residential mortgage. PANTELAKIS and certain of his family members received at least $420,000, including payments to personal credit cards and to pay for PANTELAKIS’s wife’s Mercedes-Benz. Pratte personally received approximately $1 million. In addition, the unregistered salespeople collectively received undisclosed commissions of more than $1.5 million.
* * *
GEORGE DOUMANIS, 59, and EMANUEL PANTELAKIS, a/k/a “Manny,” 42, each pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
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 Court.
Trial against defendant Danny Pratte is scheduled to commence on May 1, 2018, on charges of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire and mail fraud, and wire fraud. The allegations contained in the Indictment as to Pratte are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Kim praised the work of the Federal Bureau of Investigation, and thanked the SEC.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein and Christine Magdo are in charge of the prosecution.
[1] As for the defendant who has not pled guilty, Danny Pratte, the description of the charges set forth herein constitute only allegations.
Three Conspirators Sentenced to Federal Prison for Marijuana Trafficking and Money LaunderingRead the Press Release
PENSACOLA, FLORIDA – Three defendants were sentenced to federal prison after pleading guilty to conspiracy to distribute marijuana and conspiracy to commit money laundering. On November 8, 2017, Sanford Eugene Johnson III, 31, of Pensacola, was sentenced to 151 months in prison. Yesterday, William Brett Brownell, 26, of Milton, was sentenced to 70 months in prison, and his father, William Ezra Brownell, 60, of Mobile, Alabama, was sentenced to 20 months in prison. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between 2014 and 2017, Johnson and the Brownells, along with co-defendants Charles Zachariah Sindylek, Brandon Craig Remeyer, David DelGiacco, Andrew Paul Marcelonis, and Steven Ryan Michael Sholly, conspired to distribute more than 100 kilograms of marijuana. During the same time period, Johnson, the Brownells, Sindylek, Remeyer, DelGiacco, and Marcelonis conspired to launder the proceeds of their drug conspiracy through cash deposits and withdrawals at financial institutions for the purpose of promoting and concealing the drug conspiracy. More than $3.5 million in cash proceeds from the sale of marijuana was laundered during the time frame of the conspiracy.
The remaining defendants are awaiting sentencing on the following dates at the U.S. Courthouse in Pensacola:
- Remeyer: December 12, 2017, at 10:30 a.m. CST;
- Sindylek: December 19, 2017, at 10:30 a.m. CST;
- Marcelonis: December 19, 2017, at 2:30 p.m. CST;
- Sholly: January 16, 2018, at 10:30 a.m. CST; and
- DelGiacco: January 16, 2018, at 2:30 p.m. CST.
This case resulted from an investigation by the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pensacola Police Department, the Mobile Police Department, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Okaloosa County Sheriff’s Office, and the Gulf Breeze Police Department. Assistant United States Attorney Alicia H. Forbes is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Texas Man Wanted by Federal Authorities Pleads Guilty to Credit Card FraudRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Jose Carlos Terra Izquierdo (23, Amarillo, TX) has pleaded guilty to credit card fraud. He faces an enhanced penalty of up to 20 years in federal prison and has agreed to forfeit his computer media and to pay restitution to his victims. A sentencing date has not yet been set.
According to court documents, in 2016, Izquierdo was convicted of credit card fraud in the District of Nebraska. He was scheduled to turn himself in and begin his prison sentence in March 2017, but instead traveled to Florida in violation of his conditions of release. Federal authorities in Nebraska subsequently issued a warrant for his arrest. On March 2, 2017, Izquierdo was pulled over in Columbia County by the Florida Highway Patrol for an expired Texas tag. During a subsequent search of the vehicle, troopers located a credit card reader and stolen credit card information belonging to more than 50 victims. He faces the enhanced penalty as a result of his prior fraud conviction.
This case was investigated by the Florida Highway Patrol and the U.S. Secret Service - Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Stamford Man Charged with Federal Offenses in Connection with Securities Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that on November 20, a federal grand jury in New Haven returned a 39-count superseding indictment charging THOMAS J. CONNERTON, 65, of Stamford, with various offenses stemming from an investment scheme that defrauded individuals of more than $2 million.
On March 7, 2017, the grand jury returned an indictment charging CONNERTON with fraud and money laundering offenses stemming from the scheme. The superseding indictment charges CONNERTON with an additional count of tax evasion.
As alleged in the superseding indictment, CONNERTON was the founder, president, and CEO of Safety Technologies, LLC (“Safety Tech”), a Connecticut company that had its principal place of business at various times in Simsbury, Madison, Westport and Stamford. Safety Tech was founded in 2006, purportedly for the purpose of developing and commercializing what was represented to be a highly durable puncture and cut resistant material that was to be used in the surgical glove market and other related markets. Safety Tech has not yet obtained any patents from the U.S. Patent and Trademark Office, and CONNERTON did not register Safety Tech’s securities with the U.S. Securities and Exchange Commission (“SEC”).
The indictment alleges that, beginning in approximately June 2009, CONNERTON induced victim-investors to provide him funds and to purchase Safety Tech securities by falsely representing that the valuation of Safety Tech was realistically in the tens or hundreds of millions of dollars, that a lucrative deal to sell or license his glove technology was imminent, and that he would use their funds for research and development, product testing, and to bring the product to market. CONNERTON offered his investors small amounts of equity in Safety Tech through “Subscription Agreements” or investments contracts through which he sold what he described as “Units.”
It is alleged that CONNERTON made numerous other false representations to victim-investors, including stating in September 2015, “I will go on the record to state that there is not a single investor that will lose one dollar invested in Safety Technologies.”
The indictment alleges that even though CONNERTON represented to victim-investors and potential victim-investors that the funds they invested would be used to fund research and development, for product testing, for business expenses and for legal fees, he used invested funds to pay personal expenses including, on two separate occasions, to purchase diamond engagement rings from Tiffany & Co. CONNERTON also used funds to repay loans to an earlier investor.
Through this scheme, it is alleged that CONNERTON defrauded more than 50 victim-investors of more than $2 million.
The indictment further alleges that CONNERTON engaged in monetary transactions in an attempt to conceal from the FBI and the SEC the nature and source of funds received by Safety Tech from the sale of Safety Tech securities. CONNERTON negotiated checks and purchased bank checks in order to move the fraudulent proceeds from one account to another.
Finally, the indictment alleges that CONNERTON willfully failed to pay $271,375 in federal income taxes between 2004 and 2015.
The indictment charges CONNERTON with 12 counts of wire fraud, one count of mail fraud and 18 counts of securities fraud, offenses that carry a maximum term of imprisonment of 20 years on each count. The indictment also charges CONNERTON with six counts of money laundering, an offense that carries a maximum term of imprisonment of 10 years on each count, one count of money laundering conspiracy, an offense that carries a maximum term of imprisonment of 20 years, and one count of tax evasion, an offense that carries a maximum term of imprisonment of five years.
CONNERTON has been detained since his arrest on March 9, 2017. A trial in this matter is scheduled for May 9, 2018, before U.S. District Judge Stefan R. Underhill in Bridgeport.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Citizens with information that may be helpful to this ongoing investigation, or who believe they have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Six Men Sentenced for Dog Fighting and Narcotics ChargesRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that United States District Judge Terrence W. Boyle sentenced six North Carolina men this week for engaging in illegal dog fighting and selling narcotics in the Onslow County area.
The following individuals and their sentences are listed below.
- Leo Junior Chadwick, 64 of Hubert (60 Months imprisonment and 3 years supervised release & $25,000 fine)
- Aaron Richardson, a/k/a “Jit”, 42 of Jacksonville (96 months imprisonment and 3 years supervised release & $25,000 fine)
- Cedric Gerard Cook, 39 of Fayetteville (45 months imprisonment and 3 years supervised release, $5,000 fine)
- James David Martin, 39 of Maple Hill (4 years probation, including 6 months of home confinement)
- James Leslie Golden, III, 47 of Ayden (4 years probation and 100 hours of community service)
- William Jay Farrior, a/k/a “Bo”, 37 of Maple Hill (48 months imprisonment and 5 years supervised release)
Chadwick, Cook, and Martin pled guilty to Conspiracy to Violate the Animal Welfare Act. The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive or transport dogs intended for use in dog fighting. Richardson pled guilty to possessing and transporting dogs for dog fights. Golden pled guilty to a misdemeanor charge for attending a dog fight. Farrior pled guilty to a Criminal Information charging a Conspiracy to Distribute Cocaine Base (or “crack”) and Cocaine.
In October 2015, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Jacksonville Police Department, and the Onslow County Sheriff’s Department initiated an investigation related to dog fighting and drug trafficking in Eastern North Carolina. Utilizing multiple confidential sources of information (CSIs), law enforcement infiltrated a group of individuals engaging in dog fighting in Onslow and Cumberland Counties. These individuals purchased, bred, sold, and trained American Pit Bull Terriers (APBTs) for the purpose of having the dogs participate in illegal dog fights for wagering, sport, and entertainment.
Between December 2015 and March 2016, law enforcement utilized a confidential informant to meet up with the individuals and attend four dog fights with them. The fights lasted between 51 minutes and 1 hour and 47 minutes. On at least two of the occasions, the losing dog died after the conclusion of the fights. One of the fights was a “champion fight,” meaning that the participants fought dogs who were vying for a third win. As much as $100,000 was wagered on that fight alone.
The investigation revealed that Chadwick had been involved in raising and training dogs for the past 35 years. Evidence taken from Cook’s Facebook account showed that he had admitted to fighting dogs since he was 14 or 15 years old. Martin hosted one of the fights on his property, while Golden attended two of the fights.
Upon the arrests of the defendants in December 2016, search warrants were executed on four properties suspected of containing dogs and dog fighting paraphernalia. In that process, approximately 156 dogs were seized, including some that were pregnant at the time. On Chadwick’s property in Hubert, NC, investigators located and seized 33 pit bull type dogs. Many of the dogs were found outside in makeshift wooden boxes or plastic barrels, chained to the ground with heavy chains and collars. This is a typical configuration for rural dog fighting yards, though it means that the dogs are largely ignored, fed sporadically, and kept apart from each other. Other dogs were found inside Chadwick’s residence, in small wire crates. Some of the crates were riddled with filthy newspaper and covered in animal feces. Investigators also found substantial dog fighting paraphernalia on the property, including weighted collars and heavy chains used to condition dogs, break sticks with dried blood that are used to pry apart dogs jaws during fights, and a treadmill specially adapted to run dogs for long periods of time.
The dogs seized from Chadwick’s property were in terrible shape, exhibiting scars and healing wounds from fights. Nearly all of them were extremely low weight and suffering from easily preventable and treatable diseases. One dog that weighed 31.4 lbs. at the time of intake was found tethered to a chain weighing 34 lbs., meaning it was bearing upwards of 108% of its body weight around its neck.
On Cook’s property in Fayetteville, NC, investigators seized 23 pit bull type dogs. During the search of the property, investigators also located numerous break sticks used to pry apart dogs’ jaws during fights, some with gouge marks and dried blood; two slat (wooden) treadmills and a carpet treadmill, commonly used to train dogs for fighting by latching them to tight collar affixed to the structure and having them run for extended periods of time; weighted collars and heavy chains; and numerous registration certificates and pedigrees for dogs, including ones with marks showing “Gr.Ch.” for “Grand Champions” (5-time winners), “Ch.” for “Champions” (3-time winners).
Cook’s dogs were also found in very poor condition, exhibiting scars and healing wounds consistent with organized dog fighting. A few dogs had dental fractures with exposed pulp, which causes severe pain. One dog was missing a full portion of its cheek, which is a common wound obtained during fights when one dog’s tooth punctures the other’s cheek. Another dog had a puncture wound that was “oozing red purulent material” and healing scabs through his nose and right hock. The dogs also showed aggression during behavioral tests, often attacking the stuffed toy dog.
On Richardson’s property in Jacksonville, NC, investigators seized 32 pit bull type dogs. Many of the dogs were found outside in makeshift wooden boxes or plastic barrels, chained to the ground with heavy chains and collars. One litter of new puppies and their mother were found inside the residence, in a small wire crate that was filthy with feces and roundworms and had no water or food within the enclosure. During the search of the property, investigators located several “training chains” that weighed as much as 70 lbs.; a wooden slat treadmill used to condition dogs for fighting; numerous heavy collars, chains, and break sticks; and medical supplies, including syringes and some marked as “For Veterinary Use Only.”
The dogs found on Richardson’s property also exhibited scarring and healing wounds consistent with organized dog fighting. One dog was just 6-12 months old and found tethered outside in an area of dirt with standing water with no food observable. Despite its young age, the dog exhibited multiple healing wounds on its head and front legs indicative of its use in dog fights. Another dog was missing its right hind leg and exhibited scarring on his head and remaining leg. The dog also had severe gum recession and worn teeth.
The ASPCA® (American Society for the Prevention of Cruelty to Animals®) was requested by authorities to take custody of and provide daily care for the dogs seized during the arrests at a temporary shelter in an undisclosed location. The ASPCA also provided assistance with evidence collection, conducting forensic medical and behavioral examinations of the dogs seized in the case, and identifying dogs that were suitable for placement.
“Dog fighting is a brutal act of cruelty that represents the ultimate betrayal of the human-animal bond and results in a life of unimaginable pain and suffering for the victims,” said Stacy Wolf, senior vice president of the ASPCA Anti-Cruelty Group. “We are grateful to be in a position where we can collaborate with law enforcement agencies to pursue these types of cases and bring this despicable blood sport to an end.”
Chief Michael G. Yaniero, Director of Public Safety for the City of Jacksonville, stated, “These animals live in cruel conditions. Our Community will not tolerate those who abuse animals. These are not victimless crimes.”
The remaining two defendants are scheduled to be sentenced on December 22, 2017.
The case was investigated by the Federal Bureau of Investigation (FBI), Jacksonville Police Department, and Onslow County Sheriff’s Office. Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Wilmington Police Department, New Hanover County Sheriff’s Office, North Carolina State Highway Patrol, North Carolina State Bureau of Investigation, the United States Department of Agriculture - OIG, the United States Marshal’s Service, and the Cumberland County Sheriff’s Office. Assistant United States Attorney Laura Howard prosecuted the case for the government.
Scranton Man Sentenced to 58 Months’ Imprisonment for Sex TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mark Matis, age 29, of Scranton, Pennsylvania, was sentenced on November 30, 2017, by Senior U.S. District Court Judge James M. Munley to 58 months’ imprisonment for his role in the sex trafficking of a minor in early 2014.
According to United States Attorney David J. Freed, Matis previously pleaded guilty to assisting Sean Cantelmo and others in transporting and maintaining a minor for the purpose of having the minor engage in prostitution during February through May 2014.
The sex trafficking activity involved placing photographs of the minor along with ads in the adult “escort” section of a website; renting motel rooms in Lackawanna and Luzerne Counties where the prostitution activities occurred; providing drugs to the minor; purchasing and providing condoms for the minor to use during commercial sex acts; and serving as security or “bodyguards” at the motels where the commercial sex acts took place.
The court noted that Matis played a minor role in the offense for only a brief time period.
Matis was indicted by a federal grand jury in April 2015, as a result of an investigation by Homeland Security Investigations and the Pennsylvania State Police. Four persons were charged in connection with the investigation. Sean Cantelmo previously pleaded guilty and was sentenced to 151 months in prison. Jimmy Cantelmo also pleaded guilty and was sentenced to 10 years in prison. Justin Strait pleaded guilty and was sentenced to 72 months in prison.
Judge Munley also ordered Matis to serve five years on supervised release following his prison sentence. Matis must also comply with the requirements of the Sex Offender Registration and Notification Act.
“Sex trafficking is a deplorable crime, especially when it involves underage victims,” said Marlon V. Miller, special agent in charge of HSI Philadelphia. "Homeland Security Investigations will continue to work with our federal, state and local law enforcement partners to aggressively investigate and arrest individuals that prey on the most vulnerable in our community, our children.”
Assistant United States Attorney Francis P. Sempa 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."
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School Counselor Sentenced to Two Years in Prison for Defrauding North Carolina MedicaidRead the Press Release
ASHEVILLE, N.C. – Joseph Frank Korzelius, 47, of Tryon, N.C. was sentenced yesterday to 24 months in prison for fraudulently billing Medicaid for more than $450,000 in false claims for mental and behavioral health services he did not provide, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Martin Reidinger ordered Korzelius to serve three years of supervised release and to pay $436,229.08 as restitution to Vaya Health, the administrator of Medicaid funds in Western North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by North Carolina Attorney General Josh Stein.
According to court documents and the sentencing hearing, from October 2013 to November 2016, Korzelius, a licensed professional counselor and a Medicaid-approved provider of mental and behavioral health services, owned and operated Western Carolina Counseling Services, located in Tryon. Korzelius was also employed as a school guidance counselor at Tryon Elementary School in Polk County. According to court records, Korzelius identified students and their siblings from his work at Tryon Elementary and used those potential beneficiaries’ information to access these individuals’ personal information. The defendant then used that information to create and submit billings for individual psychotherapy services when, in fact, no such services were provided.
Court documents show that Korzelius had minimal documentation to support his billings for services he fraudulently represented that he provided. Further, many recipients who Korzelius billed for indicated they never sought or received services from either Korzelius or Western Carolina Counseling Services. Filed court documents show that Korzelius controlled the bank accounts where the Medicaid approved reimbursements were deposited. During the course of his scheme, Korzelius submitted over $450,000 in false claims and received $436,229.08 in reimbursements for those fraudulent claims.
Korzelius pleaded guilty to one count of health care fraud. He will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence, upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the North Carolina Department of Justice, Medicaid Investigations Division (MID), and was prosecuted in the Western District of North Carolina by Special Assistant United States Attorney Timothy Rodgers through the MID’s participation in the Western District’s joint Health Care Task Force. The Task Force is a multi-agency team of federal and state investigators, working in conjunction with Civil and Criminal Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system and reducing the potential for health care fraud in the future. The Task Force builds upon existing partnerships between agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Savannah Man Sentenced to Twenty Years for Sex Trafficking ChildrenRead the Press Release
Savannah, GA – Timothy Dequon Lewis, 34, was sentenced yesterday by United States District Court Judge William T. Moore, Jr. to 240 months in federal prison for his role in sex trafficking eight minor children between the ages of 13 and 17.
Lewis was convicted of 19 felony counts by a federal trial jury in March 2017. According to evidence presented at that trial, the Federal Bureau of Investigation (“FBI”) received a lead in October 2015 from the National Center for Missing and Exploited Children (“NCMEC”) that a thirteen-year-old child had run away and was missing.
A telephone analysis conducted by NCMEC of telephone numbers previously associated with the missing child revealed various online escort advertisements with images that appeared to depict the missing child. The FBI’s investigation led agents to the Gateway Hotel on Abercorn Street in Savannah, Georgia, where Lewis was staying. At the hotel, FBI located and rescued three children, including the missing thirteen-year-old. The FBI arrested Lewis at the hotel, and agents ultimately located five additional minors victimized by Lewis.
Lewis created and posted online prostitution advertisements for all eight of his minor victims. He transported these children to his customers and profited from the commercial sex acts they performed. Lewis employed coercion and physical abuse to compel some of his victims to engage in this activity.
United States Attorney Bobby L. Christine said, “Lewis turned our most precious and most vulnerable citizens into property and sold them over and over again to satisfy his own depravity and greed. I am proud of the swift, thorough, and professional work of our law enforcement partners and Assistant United States Attorneys Tania D. Groover and Carlton R. Bourne, who put Lewis behind bars where he belongs. As demonstrated by this case, predators like Lewis will be brought to justice. We will fight day and night to ensure the safety of our nation’s children.”
Anyone who suspects instances of child sexual exploitation is encouraged to call 1-800-843-5678, a hotline operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.
The investigation of this case was led by the FBI. Assistant United States Attorneys Tania D. Groover and Carlton R. Bourne prosecuted the case on behalf of the United States.
For any questions, please contact Appellate Chief R. Brian Tanner at (912) 652-4422.
Sarasota Physician Agrees to Pay $1.95 Million to Resolve False Claims Act Allegations Regarding Unnecessary UltrasoundsRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Dr. Arthur S. Portnow, the owner and operator of Arthur S. Portnow, P.A., d/b/a Apple Medical and Cardiovascular Group, d/b/a Apple Medical Group (collectively, Dr. Portnow) has agreed to pay $1.95 million to resolve allegations that he and his practice violated the False Claims Act by knowingly seeking reimbursement for medically unnecessary ultrasound tests that were performed on Medicare beneficiaries.
The government alleges that from August 2009 through August 2017, Dr. Portnow submitted fraudulent claims to Medicare for the evaluation and performance of medically unnecessary carotid ultrasounds, lower extremity arterial ultrasounds, abdominal aortic ultrasounds, renal and renal artery ultrasounds, and echocardiograms. The government also alleges that Dr. Portnow falsified patient records in an effort to justify those unnecessary ultrasounds. Dr. Portnow and his practice received hundreds of thousands of dollars as a result of this illicit testing.
“Fraudulently billing the government for medically unnecessary tests deprives federal health care programs, like Medicare, of valuable resources,” said Acting U.S. Attorney Muldrow. “This settlement is evidence that our office will continue to pursue those who seek to unlawfully exploit our nation’s federal health care programs at the expense of patients and the Federal Treasury."
“Physicians who seek to boost their profits by charging taxpayers and patients for medically unnecessary tests will be thoroughly investigated,” said Special Agent in Charge Shimon R. Richmond of the U.S. Health and Human Services, Office of the Inspector General. “Working in coordination with our law enforcement partners, we will continue to pursue health care professionals who threaten the integrity of Federal health care programs."
In addition to paying the $1.95 million, as part of the settlement, Dr. Portnow has also agreed to enter into an integrity agreement with the Inspector General of the U.S. Department of Health and Human Services.
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by a former employee (Kathleen Siwicki) of Dr. Portnow’s practice. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act that permits private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action. Ms. Siwicki will receive roughly $350,000 of the proceeds of the settlement with Dr. Portnow.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477). The case is captioned United States, et al. ex rel. Siwicki v. Arthur S. Portnow, M.D., et al., Case No. 8:15-cv-987-T-27MAP. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only and there has been no determination of liability.
This settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida and the HHS-OIG. It was handled by Assistant United States Attorney Christopher Tuite.
Ruston man sentenced to 24 months in prison for posting sexually explicit images onlineRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Ruston man was sentenced Thursday to 24 months in prison for cyberstalking a woman and posting nude pictures of her on various websites.
Wesley Ballew, 39, of Ruston, La., was sentenced by U.S. District Judge Dee D. Drell to one count of cyberstalking. He was also sentenced to three years of supervised release and ordered to pay $7,500 restitution. According to the July 19, 2017 guilty plea, Ballew ended a relationship with a woman in 2009. He later posted nude pictures and identifying information of the woman to websites and social media sites. Ballew posted the pictures multiple times over the course of several years with the intent to harass and cause emotional distress. He also caused financial stress as the woman spent more than $7,500 in an attempt to remove the postings from online sites.
The FBI conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Russian cyber-criminal sentenced to 14 years in prison for role in massive online identity theft and bank fraud conspiracyRead the Press Release
ATLANTA – Russian cyber-criminal Roman Valeryevich Seleznev has been sentenced to 14 years in prison for his role in a $50 million cyberfraud ring and for defrauding banks of $9 million through a hacking scheme.
“Cybercriminals have victimized our citizens from half-way around the world,” said U.S. Attorney Byung J. “BJay” Pak. “As Seleznev learned, this office has committed resources designed to target cyber-crime and we will pursue these criminals no matter where they reside. The safety of our citizens is our priority, and we are committed to ending the damage they cause.”
“Modern-day hackers can often be considered project managers who oversee complex criminal schemes, and offer their services for hire to other cyber criminals. Additionally, they rarely limit themselves to a single victim or to a single criminal scheme. Seleznev was involved in at least three schemes, one of which was a scheme targeting an Atlanta-based company that resulted in the highly coordinated withdrawal of millions of dollars from ATMs throughout the world in under twelve hours. Seleznev's multiple sentences ensure he will no longer be a threat to American financial institutions and citizens for quite some time, and act as a strong deterrent to other cyber criminals offering their services for hire,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“The Secret Service worked closely with our law enforcement partners to share information and resources that ultimately brought Seleznev and his conspirators to justice,” said Kenneth Cronin, Special Agent in Charge, U.S. Secret Service, Atlanta Field Office. “Our longstanding role in transnational cyber investigations and network intrusions was crucial in combatting this complex hacking ring. This sentence illustrates that there is no such thing as anonymity for those engaging in fraudulent schemes and cyber-criminals will not go unpunished.”
According to U.S. Attorney Pak, the charges and other information presented in court: Seleznev, in connection with his guilty plea in the Northern District of Georgia case, admitted that he acted as a “casher” who worked with hackers to coordinate a scheme to defraud an Atlanta-based company that processed credit and debit card transactions on behalf of financial institutions. Seleznev admitted that pursuant to the scheme, in November 2008, hackers infiltrated the company’s computer systems and accessed 45.5 million debit card numbers, certain of which they used to fraudulently withdraw over $9.4 million from 2,100 ATMs in 280 cities around the world in less than 12 hours.
To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cashout, including Russian nationals Viktor Pleschuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukranian nationals Vladimir Valeyrich Tailar and Evgeny Levitskyy; Nigerian national Ezenwa Chukukere; American national Sonya Martin; and Vladislav Horohorin, who is a citizen of Russia, Israel, and Ukraine.
In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization in January 2009. According to Seleznev’s admissions in his plea agreement, Carder.su was an Internet-based, international criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications and committed identity theft, bank fraud and computer crimes. Seleznev admitted that the group tried to protect the anonymity and the security of the enterprise from both rival organizations and law enforcement. For example, members communicated through various secure and encrypted forums, such as chatrooms, private messaging systems, encrypted email, proxies and encrypted virtual private networks. Gaining membership in the group required the recommendation of two current members in good standing.
Seleznev further admitted that he sold compromised credit card account data and other personal identifying information to fellow Carder.su members. The defendant sold members such a large volume of product that he created an automated website, which he advertised on the Carder.su organization’s websites. His automated website allowed members to log into and purchase stolen credit card account data. The defendant’s website had a simple interface that allowed members to search for the particular type of credit card information they wanted to buy, add the number of accounts they wished to purchase to their “shopping cart” and upon check out, download the purchased credit card information. Payment of funds was automatically deducted from an established account funded through L.R., an online digital currency payment system.
Seleznev further admitted that he sold each account number for approximately $20. The Carder.su organization’s criminal activities resulted in loss to its victims of at least $50,983,166.35.
Roman Valeryevich Seleznev aka Track2, Bulba and Ncux, 33, was sentenced by U.S. District Judge Steve C. Jones of the Northern District of Georgia to serve 14 years in prison for one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and to 14 years in prison for one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia, with sentences to run concurrent to one another. In both cases, Seleznev was ordered three years of supervised release to run concurrently. He was also ordered restitution in the amount of $50,893,166.35 in the Nevada case and $2,178,349 in the Georgia case. Seleznev pleaded guilty to the charges on Sept. 7.
Seleznev is also a defendant in a wire fraud and computer hacking case brought by the Department of Justice in the U.S. District Court for the Western District of Washington. On Aug. 25, 2016, a federal jury convicted Seleznev of 38 counts related to his role in a scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld. On April 21, 2017, Seleznev was sentenced to 27 years in prison for those crimes, which will run concurrent to his sentences.
The cases were investigated by the FBI, HSI, and the U.S. Secret Service.
The Northern District of Georgia case was prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia. The Nevada case was prosecuted by Trial Attorney Catherine K. Dick of the DOJ Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Podiatrists Plead Guilty to FraudRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that William Danzeisen (60, Ponte Vedra Beach), a licensed podiatrist, and Sachin Brahmbhatt (37, Jacksonville), an unlicensed podiatrist, have pleaded guilty to theft of government property. Each faces a maximum penalty of 10 years in federal prison. The sentencing hearings have been set for January 30, 2018.
According to the plea agreement, Danzeisen and Brahmbhatt owned and operated Nourish Foot Care, a medical spa and mobile podiatric service that provided podiatry services to residents of long-term care facilities across northeast Florida. They defrauded Medicare by billing for medical services not rendered by a licensed podiatrist. Since Brahmbhatt was an unlicensed podiatrist, he was unable to bill Medicare. Danzeisen billed Medicare representing that he had performed podiatry care when the care had been provided by Brahmbhatt. Since 2015, $121,537.50 in false and fraudulent claims were submitted to Medicare.
This case was investigated by U.S. Health and Human Services – Office of Inspector General. It was prosecuted by Assistant United States Attorney Jay Taylor.
Plummer Man Sent to Prison on Federal Child Pornography ChargeRead the Press Release
COEUR D'ALENE – Scott Allen Reed, 67, of Plummer, was sentenced yesterday in federal court to 70 months in prison followed by ten years of supervised release for possession of child pornography, U.S. Attorney Bart M. Davis announced. Reed pleaded guilty to that charge on June 28, 2017.
According to the plea agreement, personnel working for the Nez Perce tribe found two bins of computer drives and computer storage media abandoned outside a building. While reviewing the items to identify the owner, the personnel saw child pornography. The items were turned over to the FBI.
A forensic examiner reviewed the items. The examiner found 260 images and 6 videos of minors engaged in sexually explicit conduct as well as hundreds of child erotica images. The examiner also determined that Reed was the owner of the items. The FBI later interviewed Reed, who admitted downloading images of “young girls.”
The child pornography images were sent to National Center for Mission and Exploited Children (NCMEC). NCMEC determined that the images included identified minors from California, Belgium and Ukraine.
Senior U.S. District Judge Edward J. Lodge ordered Reed to forfeit the computers, hard drives and CD’s found in the bins. He also ordered Reed to register as a sex offender following his prison sentence. Judge Lodge ordered Reed to pay $5,000 to a human trafficking fund.
This case was investigated by the Federal Bureau of Investigation, a member of the Idaho Internet Crimes Against Children Task Force. This task force is a coalition of federal, state, and local law enforcement agencies who investigate and prosecute individuals who use the internet to criminally exploit children.
The case was brought as a 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.”
Pittsburgh Woman Charged with Defrauding Social SecurityRead the Press Release
PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges relating to Social Security fraud, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned yesterday, named Jennifer Neal, age 39, of Pittsburgh, as the sole defendant.
According to the Indictment, on or about July 29, 2013, Neal knowingly and willfully made two false statements material to her right to receive Supplemental Security Income benefits, by falsely stating that two minor children had lived with her from July 1, 2012 to June 30, 2013. Additionally, between March 2012 and February 2017, Neal received and converted approximately $66,804.85 in Supplemental Security Income benefits to which she knew she was not entitled.
The law provides for a maximum total sentence of 20 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Pleads Guilty to Distributing FentanylRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty yesterday in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
Jacob Palaski, 27, of Pittsburgh, Pennsylvania, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on or about July 9, 2016, Palaski distributed and possessed with intent to distribute a quantity of a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance.
Judge Conti scheduled sentencing for March 23, 2018. The law provides for a total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Katherine A. King is prosecuting this case on behalf of the government.
The Peters Township Police Department and the Drug Enforcement Administration conducted the investigation that led to the prosecution of Jacob Palaski.
Pittsburgh Man Charged in Two Local RobberiesRead the Press Release
PITTSBURGH - One resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of bank robbery and Hobbs Act robbery, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned on Nov. 30, named Lamont Gates, 64, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on or about October 5, 2017, Gates robbed the Dollar General store located at 700 Penn Avenue, Wilkinsburg, PA 15221. The indictment further alleges that on or about October 12, 2017, Gates robbed PNC Bank, located at 701 Penn Avenue, Wilkinsburg, PA 15221. PNC Bank is insured by the Federal Deposit Insurance Corporation.
The law provides for a maximum total sentence at each count of up to 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Wilkinsburg Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacy Owner Pleads Guilty in Connection with Health Insurance Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The 45-year-old owner of Penitas Family Pharmacy has pleaded guilty in connection with a scheme to defraud Blue Cross Blue Shield of Texas, announced Acting U.S. Attorney Abe Martinez. Omar Espericueta, of Palmhurst, pleaded guilty today, joining co-defendant Oscar Elizondo, 47, of Pharr, who pleaded guilty on Wednesday.
Both men conspired to submit more than $1.7 million in fraudulent claims through Penitas Family Pharmacy aka Riverside Pharmacy to Blue Cross Blue Shield of Texas for expensive pain patches and scar creams.
Espericueta employed marketers, such as Elizondo, to target employees of entities throughout the Rio Grande Valley with health insurance through Blue Cross and other private insurance carriers. The marketers solicited employees with meals, drinks and promises of “free” prescription pain patches and scar creams in order to obtain their health insurance information. The co-conspirators then used the insurance information, along with fraudulent prescriptions, to submit hundreds of fraudulent and medically unnecessary claims to Blue Cross. Other employees saw a doctor, but it was a doctor with whom Espericueta had made arrangements to sign fraudulent prescriptions. Espericueta admitted to providing the doctor with prescription pain medication as well as cash “loans” that the doctor never repaid.
Employees were never told that Espericueta’s Pharmacy planned to use their health insurance information to bill Blue Cross for several thousand dollars worth of prescriptions for each employee, many of whom stated they did not want or need the patches or creams. In many instances, Espericueta’s Pharmacy billed Blue Cross for prescriptions that were never delivered to employees, including multiple refills that were never requested.
Both men face up to 10 years in federal prison and a $250,000 maximum fine. Sentencing has been set for Feb. 7, 2018, before U.S. District Judge Randy Crane.
The FBI, Mission Police Department, Texas Department of Insurance – Fraud Unit and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
Pennsylvania Man Sentenced for Operating Bi-Coastal Marijuana Distribution RingRead the Press Release
BOSTON – A Pennsylvania man was sentenced today in federal court in Boston in connection with a large-scale marijuana distribution and money laundering ring operating between California and the East Coast.
Ratanack Oung, a/k/a Yoshi, 32, of Allentown, Penn., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to four years in prison and three years of supervised release. In April 2017, Oung pleaded guilty to one count of conspiracy to distribute marijuana and one count of conspiracy to launder monetary instruments. In September 2016, Oung was indicted on these charges and arrested with co-conspirator Virayuth Chau, 40, of Temecula, Calif., who pleaded guilty in March 2017.
Beginning around January 2014, Chau and Oung shipped large quantities of marijuana from California to the East Coast of the United States. When payment for the marijuana was due, Oung collected drug proceeds from co-conspirators and deposited the cash (typically in an amount under $10,000) into one of many “feeder” accounts in banks on the East Coast, including in Massachusetts. The “feeder” accounts were maintained in the names of businesses or individuals associated with Chau in order to disguise the nature and ownership of the drug proceeds flowing into the accounts. Once the money was deposited, it was either withdrawn in cash in California or transferred into a “target” account, which was an account controlled by Chau and then withdrawn. In total, the operation distributed between 1,000 to 3,000 kilograms of marijuana and laundered approximately $6,135,035 in drug proceeds.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The DEA, Los Angeles Division, Riverside County (California) Sheriff’s Department and Murrieta (California) Police Department also assisted with the investigation. Assistant U.S. Attorney Eric Rosen of Weinreb’s Criminal Division prosecuted the case.
Parrish Man Sentenced to Prison for Retaliating Against A Federal Judge by Attempting to File A False LienRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Wayne St. Aubyn Smith (50, Parrish), a/k/a Wayne Smith El-Bey, to 3 years and 10 months in federal prison for attempting to file a false lien against a federal judge. A federal jury found him guilty on July 19, 2017.
According to testimony and evidence presented at trial, in May 2015, Smith filed a lawsuit against several New Jersey officials in U.S. District Court in New Jersey, claiming that his constitutional rights had been violated. However, Smith failed to pay the fee required to file a lawsuit in federal court. United States District Judge Jose L. Linares was assigned to the case. Judge Linares issued an order instructing Smith on how to file for indigent status to waive his filing fee and dismissed the lawsuit without prejudice. After several rounds of filings claiming that Judge Linares was violating his constitutional rights, Judge Linares denied Smith’s motion to proceed in forma pauperis.
On December 21, 2016, Smith attempted to record three separate liens against several individuals at the Manatee County Clerk’s Office. One of the documents claimed that Judge Linares owed Smith $750,000 for violating his constitutional rights. Furthermore, Smith claimed an interest in all of Judge Linares’s real and personal property and his checking and savings accounts up to the amount of $750,000. The other two documents were liens totaling more than $1 million against the State of Florida and several New Jersey government officials. The clerk’s office refused to record the documents.
This case was investigated by the Federal Bureau of Investigation and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Shauna S. Hale and Michael Gordon.
Okawville Man Sentenced to 5 Years in Prison for Receipt of Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Casey A. Koepke, 26, of Okawville, Illinois, was sentenced Thursday, November 30, 2017, in the United States District Court for the Southern District of Illinois to 60 months in federal prison, 5 years of supervised release, and was ordered to pay a $500 fine for receipt of child pornography. Koepke will also have to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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."
The investigation was conducted by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Laura V. Reppert.