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Friday 1 December 2017
Norwich Man Sentenced to 4 Years in Prison for Distributing Heroin, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that CHRISTIAN CABA, 32, of Norwich, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 48 months of imprisonment, followed by four years of supervised release, for distributing heroin and for violating the conditions of his supervised release that followed a prior federal conviction for distribution heroin.
According to court documents and statements made in court, on June 8, 2015, CABA was sentenced in federal court to 24 months of imprisonment and four years of supervised release for distributing heroin in southeastern Connecticut. He was released from custody in February 2016.
In July and August 2016, the Connecticut State Police Statewide Narcotics Task Force East made two controlled purchases of heroin from CABA. CABA was arrested on November 1, 2016, as he exited a unit at a storage facility in Groton. At the time of his arrest, CABA possessed a quantity of heroin on his person, and a search of the storage unit revealed quantities of heroin and cocaine, as well as items used to process and package narcotics for street sale. In total, CABA possessed approximately 40 grams of heroin and 30 grams of cocaine.
CABA has been detained since his arrest. On September 7, 2017, he pleaded guilty to one count of possession with intent to distribute heroin, and admitted to violating his federal supervised release.
Chief Judge Hall sentenced CABA to 30 months of imprisonment for distributing heroin, and a consecutive 18 months of imprisonment for violating the conditions of his supervised release.
This case was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
North Carolina Defense Contractor Sentenced for $15 Million FraudRead the Press Release
NORFOLK, Va. – A Fayetteville defense contractor was sentenced today to five years in prison for his role in multiple conspiracies to overbill the federal government by more than $15 million on government contracts.
According to court documents, Philip A. Mearing, 48, is the owner of Global Services Corporation (Global). In 2004, Mearing, along with a co-conspirators Kenneth Bricker and Ken Deines, entered into an agreement whereby fraudulent payments were made by Global to Bricker’s two straw corporations, Tempo and BPM, regarding hundreds of invoices for work and services on behalf of Global that were never performed by Tempo and BPM. As part of their agreement with Global, Bricker, with the consent of Mearing, normally retained five percent of the fraudulent payments made by Global to Tempo and BPM. Shortly thereafter, Bricker transferred the remaining 95 percent of these fraudulent payments to Mearing and to DeShas, an Ohio LLC controlled by Mearing. From 2004 to 2014, Bricker received approximately $13.6 million in fraudulent payments from Global, retained approximately $558,000 for his personal use, and subsequently issued checks totaling approximately $13 million to DeShas or to Mearing.
In a separate conspiracy to defraud the government, Mearing, Deines, and William Hutsenpiller, the former Comptroller for Norfolk Ship Support Activity (NSSA), knowingly and willfully conspired to submit false claims to the government via false and/or fictitious invoices that resulted in a loss of approximately $1.8 million.
During the sentencing hearing today, the Court found that the loss to the government was over $15 million. A hearing to determine forfeiture and restitution will be held on December 12.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, and Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorneys Alan M. Salsbury and Stephen W. Haynie prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-94.
New Orleans Man Pleads Guilty to Murder of a Federal Witness,Read the Press Release
Acting U.S. Attorney Duane A. Evans announced that GREGORY DENSON, age 54, of New Orleans, pled guilty today to an eight-count Superseding Bill of Information charging him with murder of a federal witness, Hobbs Act conspiracy, multiple Hobbs Act robberies, and obstruction of official proceedings.
According to court records, DENSON was charged along with eight (8) co-conspirators with numerous violations relating to their participation in a home invasion ring. All other defendants have pled guilty. The defendants committed home invasions of known drug dealers and, through force and intimidation, including the use of firearms, robbed numerous drug dealers of their drug trafficking proceeds, including cash and property acquired with the drug cash. Additionally, DENSON murdered a witness, Ellery Boyd, to prevent Boyd from reporting those robberies and other crimes to law enforcement. DENSON, and his co-conspirators, further obstructed the investigation of the murder by disposing of Boyd’s body.
DENSON faces a maximum term of life imprisonment, as well as a fine of $250,000, and five (5) years of supervised release following any term of imprisonment. U.S. District Carl J. Barbier set sentencing for March 8, 2017.
Acting U.S. Attorney Evans praised the work of the FBI New Orleans Field Office’s Violent Crime Task Force and the New Orleans Police Department. Assistant United States Attorneys Michael M. Simpson, Gregory M. Kennedy, and James S. C. Baehr are in charge of the prosecution.
New Castle Man Charged in Six Area Bank and Convenience Store RobberiesRead the Press Release
PITTSBUGRH - One resident of New Castle, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating the federal robbery laws, Acting United States Attorney Soo C. Song announced today.
The six-count indictment, returned on Nov. 30, named Eric Barbati, age 32, as the sole defendant.
According to the indictment, on August 26, 2017, Eric Barbati robbed the BFS Foods Convenience Store, located at 1509 Wilmington Road, New Castle, PA 16105, of $292.00. Barbati then robbed 2 other convenience stores, the Red Apple Convenience Store (on August 31, 2017), located at 1010 Wilmington Avenue, New Castle, PA 16101, of $242.00; and the Market 24 Convenience Store (on September 4, 2017 and again on September 17, 2017), located at 719 W. Washington Street, New Castle, PA 16101, of $170.00 and $117.00. On September 5, 2017, Barbati also robbed the PNC Bank, located at 2470 E. State Street, Hermitage, PA 16148, of $2,702.00, and on September 11, 2017, he robbed the Huntington Bank, located at 108 S. Market Street , New Castle, PA 16142, of $1,641.00.
Barbati faces a total maximum sentence of not more than 20 years in prison, a fine of not more than $250,000, or both at each count. 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 Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Hermitage Police Department, the New Wilmington Borough Police Department, the New Castle Police Department, and the Neshannock Township 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.
Navajo Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Alrenzon Yazzie, 20, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., pled guilty today in federal court in Albuquerque, N.M., to an involuntary manslaughter charge.
Yazzie was arrested in Sept. 2017, on a criminal complaint charging him with killing a Navajo woman on Sept. 3, 2017, on the Navajo Indian Reservation in San Juan County, N.M. According to the complaint, Yazzie killed the victim by running her over with a vehicle. At the time Yazzie ran over the victim, Yazzie was driving under the influence of alcohol.
During today’s proceedings, Yazzie pled guilty to a felony information charging him with involuntary manslaughter and admitted killing the victim by striking her with his vehicle while driving recklessly while under the influence of alcohol. Yazzie acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.
At sentencing, Yazzie faces a maximum statutory penalty of eight years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
Modesto Torrez Sentenced to Two Life Terms for His Role in Drug Conspiracy and MurderRead the Press Release
FARGO – United States Attorney Christopher C. Myers announces that on December 1, 2017, MODESTO TORREZ, age 35, of Angus, MN, was sentenced by Eighth Circuit Judge, sitting by designation, Ralph R. Erickson, to serve life imprisonment for his conviction of conspiracy to distribute controlled substances and a consecutive life term for murder in furtherance of a drug trafficking conspiracy. Torrez was found guilty by a trial jury in October of this year for conspiracy to distribute methamphetamine, obstruction of justice and for his role murder of Austin B. Forsman at the Flying J Truck Stop on March 11, 2016. Torrez was further ordered to forfeit $12,620, which was seized during the investigation.
Law enforcement’s investigation into the murder of Austin Forsman at the Flying J Truck Stop in Grand Forks, ND, in the early morning hours of March 11, 2016, resulted in the indictment of thirteen conspirators in connection with a methamphetamine ring in the Grand Forks area. Torrez, together with Krystal Lynn Feist, were charged with the murder of Forsman, as well as the drug trafficking conspiracy. Torrez was found guilty of being the leader of the conspiracy to traffic methamphetamine in the area, as well as for ordering the murder of Austin Forsman and obstructing justice. Krystal Feist had previously pled guilty for her role in the murder and drug trafficking conspiracy.
This case was investigated by the Grand Forks Police Department, Grand Forks Narcotics Task Force, North Dakota Bureau of Criminal Investigation, and the Department of Homeland Security – Homeland Security Investigations.
This case was prosecuted by U.S. Attorney Christopher C. Myers, Assistant U.S. Attorney Jake Rodenbiker, and Special Assistant U.S. Attorney Jeremy Ensrud.
http://www.usdoj.gov/usao/nd
Missouri Man Sentenced to 120 Months in Federal Prison for Attempting to Possess Contraband in PrisonRead the Press Release
A Missouri man was sentenced to federal prison today for his role in overseeing an operation in which methamphetamine was smuggled into the Federal Correctional Institution in Greenville, Illinois, and distributed to inmates.
United States Attorney Donald S. Boyce announced the sentence for the Southern District of Illinois. Defendant James Leroy Gary, 43, was sentenced to 120 months in prison, three years of supervised release, a $500 fine, and a $100 special assessment.
Facts presented in court showed that in 2014 Gary was an inmate at FCI Greenville in Bond County, Illinois. While an inmate, Gary used contacts outside of prison including his co-defendant, Candace Weakley, to smuggle methamphetamine into FCI Greenville. Gary then oversaw the distribution of the methamphetamine to other inmates within the prison.
Last year, co-defendant, Candace Weakley, was sentenced to prison for 70 months for her role in the offense.
The investigation was conducted by the Bureau of Prison Staff at FCI Greenville and by the Federal Bureau of Investigation.
Missoula Man Sentenced to Prison on Methamphetamine ChargesRead the Press Release
MISSOULA - Yancy Lee McCrea, 31 of Missoula, was sentenced today to 132 months in prison followed by five years of supervised release after pleading guilty to possession with intent to distribute methamphetamine. United States District Judge Dana L. Christensen handed down the sentence.
On June 3, 3016, law enforcement officers found Yancy McCrea, a Montana State fugitive, in his vehicle. They searched the car and seized approximately 95.9 grams of pure methamphetamine, two handguns, four magazines, 112 rounds of ammunition, and $3,350 in cash. McCrea pleaded guilty to possession with intent to distribute methamphetamine in August of this year.
The case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by the Northwest Drug Task Force and the United States Marshals Service.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Minden man pleads guilty to possessing a revolver after being convicted of a felonyRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a man from Minden pleaded guilty to possessing a revolver.
Jeremy Moro, 40, of Minden, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote on one count of possession of a firearm by a convicted felon. According to the guilty plea, the Minden Police Department arrested Moro while investigating a domestic abuse issue on September 8, 2016. After responding to the complaint, police found Moro laying on his couch with a Taurus Model: The Judge 45 caliber five shot revolver in the waistband of his pants. He was previously convicted of a felony for his role in a cross-burning in October 2008 in Louisiana.
Moro faces up to 10 years in prison, three years of supervised release, forfeiture of the seized firearm and a $250,000 fine. The court set a sentencing date of March 1, 2018.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF, FBI, Webster Parish Coroner’s Office and Minden Police Department conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick is prosecuting the case.
Milwaukee Man Sentenced to 16 years in Prison for Armed Carjacking Near Wick FieldRead the Press Release
United States Attorney Gregory J. Haanstad has announced that yesterday, Broderick A. Moore (age 25) was sentenced to 16 years in prison, followed by 5 years of supervised release, for his involvement in an armed carjacking. In July 2017, a federal jury found Mr. Moore guilty of carjacking and brandishing a firearm during a crime of violence.
The evidence presented at trial showed that on July 16, 2015, at about 10:20 a.m., Mr. Moore carjacked a 73 year-old woman, across the street from Wick Field, in Milwaukee. The evidence established that Mr. Moore pointed a loaded gun at the victim’s head, threatened to shoot her, and demanded the keys to her Toyota Avalon. Mr. Moore’s co-defendant, Robert Ellis, orchestrated the sale of the car immediately after the carjacking. Robert Ellis and co-defendant Sean Harvey then drove to the victim’s home and stole her Honda Accord.
Mr. Moore’s co-defendants, Robert A. Ellis and Sean Harvey pled guilty to aiding and abetting Mr. Moore in the carjacking. Mr. Ellis was sentenced to 11 years and 8 months in prison, followed by 5 years of supervised release. Mr. Harvey was sentenced to 4 years in prison, followed by 5 years of supervised release.
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. The case was prosecuted by Assistant United States Attorneys Margaret B. Honrath and Laura S. Kwaterski.
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Maryland Man Pleads Guilty to Willful Retention of National Defense InformationRead the Press Release
Nghia Hoang Pho, 67, of Ellicott City, Maryland, pleaded guilty today to willful retention of national defense information.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Stephen M. Schenning for the District of Maryland and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office made the announcement.
According to his plea agreement, beginning in April 2006, Pho was employed as a Tailored Access Operations (TAO) developer for the National Security Agency (NSA). The NSA's TAO involved operations and intelligence collection to gather data from target or foreign automated information systems or networks and also involved actions taken to prevent, detect, and respond to unauthorized activity within Department of Defense information systems and computer networks, for the United States and its allies.
In connection with his employment, Pho held various security clearances and had access to national defense and classified information. Pho also worked on highly classified, specialized projects. According to the plea agreement, beginning in 2010 and continuing through March 2015, Pho removed and retained U.S. government documents and writings that contained national defense information, including information classified as Top Secret and Sensitive Compartmented Information. This material was in both hard copy and digital form, and was retained in Pho’s residence in Maryland.
U.S District Judge George L. Russell has scheduled sentencing for April 6, 2018 at 10 a.m.
Pho faces a maximum sentence of 10 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Boente and Acting U.S. Attorney Stephen M. Schenning commended the FBI and the NSA for their work in the investigation. This case is being prosecuted by national security prosecutors in the District of Maryland and the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.
Man Sentenced to 20 Years for Conspiring to Distribute HeroinRead the Press Release
RICHMOND, Va. – A Chester man was sentenced today to 20 years in prison for conspiring to distribute heroin.
Fereris Jamison, 40, pleaded guilty on August 29. According to court documents, Jamison acknowledged responsibility for distributing at least one kilogram of heroin and at least 500 grams of cocaine during the conspiracy. A 30-year old Hopewell woman overdosed and died in September 2015 after Jamison sold her heroin. The Court noted that Jamison qualified under the federal guidelines as a career offender and was responsible for the victim’s death. The Court then ordered Jamison to pay restitution to the family of the victim in the amount of approximately $10,000, and ordered forfeiture in the amount of $91,000, which was for the proceeds of his drug trafficking activity.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Alfred Durham, Chief of Richmond Police, and Colonel John F. Keohane, Chief of Hopewell Police Department, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Lunch Special. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-91.
Local Dermatologist Pays $850,000 to Settle False Claims Act AllegationsRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced that Skin Care Doctors, P.A. and its founder and CEO, Michael J. Ebertz, M.D. have agreed to pay $850,000 to the United States to resolve allegations of false claims submitted for certain dermatology procedures in violation of the False Claims Act (“FCA”).
Assistant U.S. Attorney Ann Bildtsen said, “Medicare is a public trust. This resolution against both the company and its CEO safeguards that trust and restores needed funds to Medicare. This Office is committed to taking necessary actions to rectify inflated billing to federal programs.”
The United States contended that between January 2008 and December 2015, Skin Care Doctors, P.A. ("SCD") and Michael J. Ebertz, M.D. (“Ebertz”) submitted false claims for payment to the Medicare Program. The billing in question spanned four different areas, including billing Medicare for free samples of a phototherapy drug and upcoding office visits, lesion removal procedures, and phototherapy services. As outlined in the settlement agreement, Ebertz and SCD will pay to the United States a settlement amount of $850,000.
The settlement resolves a civil lawsuit brought by a whistleblower, a doctor who formerly worked with Ebertz, under the qui tam provisions of the False Claims Act. The False Claims Act allows private parties to bring suit on behalf of the government for false claims and to share in any recovery. Such whistleblowers bring fraud schemes to light that might otherwise go undetected.
The case was handled by the Civil Frauds Unit of the U.S. Attorney’s Office for the District of Minnesota, with assistance from the Office of Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation.
The case is United States of America and the State of Minnesota ex rel. Jeff Samuelson, M.D. v. Skin Care Doctors, P.A., and Michael J. Ebertz, M.D., 15-cv-3132 (SRN/BRT). The settlement resolved false claims allegations prior to any determination of liability.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Littlefield Man Sentenced to 135 Months in Federal Prison for Enticing a 16-Year-Old Girl to Engage in Sexual ActivityRead the Press Release
LUBBOCK, Texas — A Littlefield, Texas, resident, Luis Zubia, 36, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to 135 months in federal prison, following his guilty plea in September 2017 to an indictment charging one count of enticement of a minor, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
According to the plea agreement factual resume filed in the case, from February 2017 until April 2017, Zubia had text conversations that were sexual in nature with “Jane Doe,” a 16-year-old female. Zubia asked “Doe” to send him sexually explicit photos and videos of herself and eventually talked about meeting up with “Doe.”
Zubia asked for, and was provided, “Doe’s” address, along with the name of her school. On March 7, 2017, Zubia sent a text to “Doe,” stating his desire to meet up and to engage in sexual intercourse with her.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Littlefield Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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Leesburg Men Convicted in Armed Carjacking CaseRead the Press Release
Ocala, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Avery Leanard Tumer (23, Leesburg) guilty of carjacking, conspiracy to commit carjacking, brandishing a firearm in furtherance of a crime of violence, and possessing a firearm as a convicted felon. He faces a maximum penalty of 37 years in federal prison, including a 7-year minimum mandatory penalty for brandishing the firearm. In a separate trial, the same jury previously found Timotheus Gersom Reed (30, Leesburg) guilty of conspiracy to commit carjacking and brandishing a firearm in furtherance of a crime of violence. He faces a maximum sentence of 12 years’ imprisonment, including a 7-year minimum mandatory penalty. The sentencing hearings are scheduled for February 21, 2017.
According to evidence presented during the trials, on the evening of December 23, 2016, Tumer and Reed, along with co-defendants Jonathan Kyle Lanier and Amy Denise Scott, conspired to rob an individual of his money, other personal items, and his car by arranging a meeting at a remote location between the victim and Scott. The victim believed he was going to the meet the woman only; however, shortly after he arrived, Lanier, Tumer, and Reed pulled the victim from his car and stole his wallet and other personal property. During the robbery, the three men wore masks and pointed firearms at the victim; Turner later pistol-whipped the victim and took his car while Scott left in her car with Reed and Lanier.
Later that evening, Tumer and Scott were arrested by the Lake County Sheriff’s Office after the victim’s car was located outside an apartment where the two had stayed together. Inside the apartment, deputies found the victim’s identification, cell phones, and debit card. Multiple firearms were recovered from the attic, where Tumer had been hiding.
On November 15, 2017, a separate federal jury found Lanier (24, Leesburg) guilty of carjacking, conspiracy to commit carjacking, brandishing a firearm in furtherance of a crime of violence, and possessing a firearm as a convicted felon.
He faces up to 37 years in federal prison, including a 7-year minimum mandatory penalty. A sentencing date has not yet been set.
On May 9, 2017, Scott (32, Leesburg) pleaded guilty to conspiracy to commit carjacking. She faces a maximum penalty of five years in federal prison; her sentencing hearing is set for December 15, 2017.
This case was investigated by the Federal Bureau of Investigation (Daytona Beach Office), the Lake County Sheriff’s Office, and the Leesburg Police Department. It is being prosecuted by Assistant United States Attorney Dale Campion.
Lawyer Sentenced for Distributing Videos of Child Sexual AbuseRead the Press Release
ALEXANDRIA, Va. – A Washington D.C., lawyer was sentenced today to five years in prison for distributing videos of child sexual abuse.
According to court documents, Jason Mark Sims, 36, replied to an advertisement placed by an undercover FBI agent. Sims and the undercover agent discussed meeting so that Sims could sexually abuse the undercover agent’s purported 10-year-old daughter. Although Sims ultimately declined to meet the undercover in person, he did provide the undercover with links to videos depicting the sexual abuse of girls as young as 4 years-old.
In addition to his prison sentence, the Court imposed the special condition that Sims write an article for publication about his crime in an effort to achieve general deterrence. The Court also ordered Sims to register as a sex offender, serve 10 years of supervised release, and be subject to computer monitoring.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys Laura Fong and Kellen S. Dwyer prosecuted the case.
This case is 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 and click on the tab “resources” for more information about Internet safety education.
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-191.
Justice Department Seeks to Shut Down Florida Tax Return PreparersRead the Press Release
The United States filed two civil injunction suits seeking to bar three siblings who prepare tax returns and their businesses from owning, operating, or franchising a tax return preparation business and preparing tax returns for others, the Justice Department announced today. The United States filed one complaint against Herve Erilus of Cocoa, Florida, and his business, Herve Erilus LLC. The government filed a second complaint against Gerline Erilus of Orlando, Florida and her two businesses, Gerline Erilus LLC and Elite Multi-Services LLC, and St. Fonie Erilus of Apopka, Florida and her two businesses, St. Fonie Erilus LLC and The Diversified Finance Solutions LLC.
The complaints, both filed in United States District Court in Florida, also request that the court require the Eriluses and their businesses to disgorge ill-gotten fees that they obtained from the U.S. Treasury through the alleged false tax return preparation.
According to the complaints, the Eriluses and their tax preparation businesses prepare and file tax returns to falsely increase their customers’ refunds, and profit through exorbitant, often undisclosed fees—at the expense of their customers and the Treasury.
The complaints allege that the Eriluses engage in misconduct, including:
- Falsely claiming the Earned Income Tax Credit
- Claiming improper filing status (i.e. head of household for married individuals)
- Fabricating businesses and related business income and expenses
- Fabricating deductions
- Charging deceptive and unconscionable fees
According to the complaints, the Eriluses worked at LBS Tax Services, and their brother, Walner Gachette, through Loan Buy Sell Inc., is the former franchisor of LBS. Since September 2014, the United States has filed 17 lawsuits in Florida and North Carolina including a suit against Gachette and suits against dozens of alleged former LBS franchisees and managers, many of whom, according to the complaints, rebranded and continued to operate tax preparation businesses. Through these lawsuits, the United States has obtained numerous permanent injunctions and money judgments disgorging millions in ill-gotten tax preparation fees.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2017. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jamestown Men Arrested on Methamphetaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ernest Clayburn Cauley, Jr., 26, and Zackiel Leonard Fields, Jr., 22, both of Jamestown, NY, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison and a maximum of life in prison.Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that the Federal Bureau of Investigation and the Jamestown Metro Drug Task Force (JMDTF) have been investigating a suspected drug trafficking organization, primarily involving methamphetamine, in the Jamestown area. According to the complaint, the defendants, Cauley and Fields, are the main suppliers of methamphetamine to the organization.
In addition, defendant Fields was identified by the U.S. Postal Service as a person who had purchased thousands of dollars of postal money orders with cash at post offices in the Jamestown area. Lacking any apparent legitimate occupation or employment, the conduct by Fields and others of converting large sums of cash, as much as $500,000 or more, into postal money orders over the last 18 months, raised suspicions.
The defendants were arrested on November 6, 2017, following an alleged drug transaction during which Cauley and Field received a quantity of suspected methamphetamine. The defendants, driving in separate cars, were pulled over by police and arrested. Suspected methamphetamine was found in the car in which Fields was riding.
The defendants made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and are being held pending detention hearings scheduled for December 4, 2017.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
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.
Inland Empire Man Pleads Guilty to Distributing Analogue of Powerful Opioid Fentanyl that Resulted in Overdose DeathRead the Press Release
LOS ANGELES – A Riverside man who sold a powerful opioid very similar to fentanyl to a friend – who then suffered a fatal overdose from the narcotic – has pleaded guilty to federal drug trafficking offenses.
Adam Scott Caward, 33, pleaded guilty yesterday afternoon to two federal offenses – distribution of acetyl fentanyl resulting in death, and possession with the intent to distribute acetyl fentanyl.
The federal investigation into Caward began in June, when U.S. Customs and Border Protection intercepted a package sent to Caward from China. The shipment contained a compound known as 4-FIBF, which is an analogue of fentanyl – meaning that the narcotic is chemically similar to fentanyl and designed to cause an effect similar to the powerful synthetic opioid.
A subsequent investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Drug Enforcement Administration, in cooperation with the Riverside Police Department, led to the discovery of controlled substances at Caward’s Riverside home in July. The investigation linked Caward to other fentanyl analogues and synthetic opioids that he possessed nine months earlier at his then-residence in Chino Hills.
According to a plea agreement filed in United States District Court, Caward admitted exchanging a series of text messages with a friend on November 7 and 8, 2016, which culminated in Caward selling his friend a purple powder containing acetyl fentanyl. Within hours of purchasing the narcotic from Caward, the friend died of acute acetyl fentanyl intoxication.
On November 16, 2016, the Riverside Police Department executed a state court search warrant on Caward’s Chino Hills residence, where they found a number of controlled substances, including fentanyl analogues. Among the drugs that Caward possessed was approximately 19.5 grams of the same purple powder containing acetyl fentanyl that was sold to the friend.
Caward pleaded guilty yesterday before United States District Judge John A. Kronstadt, who scheduled a sentencing hearing on March 1.
As a result of his guilty pleas, and because the narcotics involved in the distribution offense resulted in death, Caward faces a mandatory minimum sentence of 20 years in federal prison, and a possible sentence of life without parole.
This case is being prosecuted by Assistant United States Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on November 30, 2017 and entering pleas of Not Guilty were:
- ROBERT CHARLES SCOTT, a 37-year-old resident of Billings, appeared on charges of felon in possession of a firearm, and possession of a firearm by a person under a domestic order. If convicted of the most serious charge contained in the indictment, SCOTT faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-134
Appearing before U.S. Magistrate Cavan in Billings on November 28, 2017 and entering pleas of Not Guilty were:
- CHRISTOPHER RICHARD MUNDT, a 27-year-old resident of Billings, appeared on charges of robbery affecting commerce. If convicted of the charge contained in the indictment, MUNDT faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings Police Department. PACER Case Reference. 17-132
- HEATHER LYNN STOUT, a 36-year-old resident of Billings, appeared on charges of felon in possession of a firearm, and possession of a stolen firearm. If convicted of the most serious charge contained in the indictment, STOUT faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Probation Office. PACER Case Reference. 17-137
Appearing before U.S. Magistrate Johnston in Great Falls on November 28, 2017 and entering pleas of Not Guilty were:
- RICHARD CEYNAR, a 34-year-old resident of Williston, North Dakota, appeared on charges of conspiracy to illegally hunt, kill, and traffic mountain lions, interstate transport and possession of illegally killed mountain lions and false labeling. If convicted of the most serious charges contained in the indictment, CEYNAR faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Fish and Wildlife Service. PACER Case Reference. 17-18
- ERNEST JABLONSKY, a 51-year-old resident of Plains, appeared on charges of conspiracy to illegally hunt, kill, and traffic mountain lions, illegal sale of outfitted mountain lion hunts, and false labeling. If convicted of the most serious charges contained in the indictment, JABLONSKY faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Fish and Wildlife Service. PACER Case Reference. 17-18
- MITCH THEULE, a 29-year-old resident of Townsend, appeared on charges of conspiracy to illegally hunt, kill, and traffic mountain lions, and illegal sale of outfitted mountain lion hunts. If convicted of the most serious charge contained in the indictment, THEULE faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Fish and Wildlife Service. PACER Case Reference. 17-18
- ANTONIO TODD TIGART, a 21-year-old resident of Great Falls, appeared on charges of prohibited person in possession of a firearm. If convicted of the charge contained in the indictment, TIGART faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department. PACER Case Reference. 17-75
Appearing before U.S. Magistrate Cavan in Billings on November 22, 2017 and entering pleas of Not Guilty were:
- LARRY DARNELL SIMS, a 44-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, SIMS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-136
- ARSCENIO TONY NOT AFRAID, a 30-year-old resident of Hardin, appeared on charges of felon in possession of a firearm and ammunition, and possession of a unregistered firearm. If convicted of the most serious charge contained in the indictment, NOT AFRAID faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-109
Appearing before U.S. Magistrate Cavan in Billings on November 21, 2017 and entering pleas of Not Guilty were:
- CHRISTINA ANN JACKSON, a 42-year-old resident of Boise, Idaho, appeared on charges of transportation of a person with intent to engage in criminal sexual activity. If convicted of the charges contained in the indictment, JACKSON faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-117
- WHITEBIRD LIMPY, a 34-year-old resident of Lame Deer, appeared on charges of second degree murder. If convicted of the charge contained in the indictment, LIMPY faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Bureau of India Affairs. PACER Case Reference. 17-130
- DEREK DEXTER SHOULDERBLADE, a 23-year-old resident of Ashland, appeared on charges of second degree murder. If convicted of the charge contained in the indictment, SHOULDERBLADE faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-135
Appearing before U.S. Magistrate Johnston in Great Falls on November 14, 2017 and entering pleas of Not Guilty were:
- JAMES V. DAY, a 48-year-old resident of Thompson Falls, appeared on charges of conspiracy to illegally hunt, kill, and traffic mountain lions, and false labeling. If convicted of the most serious charges contained in the indictment, DAY faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Fish and Wildlife Service. PACER Case Reference. 17-18
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment: Veteran Charged in $40 Million Government Contract Fraud SchemeRead the Press Release
KANSAS CITY, KAN. –Joseph David Dial, Jr., 52, Belton, Mo., is charged in a federal indictment unsealed today with four counts of major program fraud against the United States and four counts of wire fraud, U.S. Attorney Tom Beall said. The indictment alleges during the period from in or about August 2008, to in or about September 2015, Dial unlawfully devised a scheme to defraud and to obtain money and property by means of material false and fraudulent pretenses, representations and promises, in order to obtain a $40 million Department of Defense contract.
The indictment alleges Dial unlawfully formed a pass-through business called United Medical Design Builders, LLC with another person. The company received a contract through the Service-Disabled Veteran-Owned Small Business program that was awarded by the U.S. Army Corps of Engineers for the design and construction of healthcare facilities at Langley AFB, Andrews AFB, Hanscom AFB, and McGuire AFB. The indictment alleges United Medical Design Builders, LLC was not a legitimate Service-Disabled Veteran-Owned Small Business and should not have obtained the contract.
If convicted, Dial faces up to 10 years in federal prison on each count of defrauding the government and up to 20 years on each count of wire fraud, as well as fines and forfeiture judgment representing the amount of proceeds obtained by committing the offenses set out in the indictment. Investigative agencies include the Small Business Administration - Officer of Inspector General, General Services Administration - Office of Inspector General, Defense Criminal Investigative Service and the Army CID Major Procurement Fraud Unit. Assistant U.S. Attorney Tris Hunt is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Houston Resident Sentenced to 262 Months in Federal Prison for Trafficking CocaineRead the Press Release
A Houston resident was sentenced to federal prison on Thursday, November 30, 2017, for his role in a drug trafficking conspiracy resulting in the seizure of $1.2 million dollars in cash, $72,000 in jewelry, and several kilos of cocaine.
United States Attorney Donald S. Boyce announced the sentence for the Southern District of Illinois. Defendant Jamie Ramon Green, 46, was sentenced to 262 months in prison, five years of supervised release, a $1000 fine, and a $100 special assessment.
An indictment filed on February 18, 2016, charged Green, and seven coconspirators, for participating in a scheme to distribute approximately 120 kilos of cocaine across the country, including into the Southern District of Illinois. In addition to the drug crimes, the indictment sought forfeiture of $1,212,934 in U.S. currency seized on December 2 and 3, 2015, along with jewelry appraised at $72,000.
Earlier this year, co-defendants Sammy Monroe, Rodney Smith, Dana Bell, Nahum Shibeshi, Astin Allison, and Terrance Miles, were sentenced to prison for 168 months, 147 months, 87 months, 48 months, 151 months, and 121 months respectively. The remaining co-defendant in this case, Victor Johnson, has pled guilty and is awaiting sentencing.
This investigation was conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative brings federal, state, and local law enforcement
agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. The investigation was conducted by agents from the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Honduran National Charged with Illegal Use of a Social Security NumberRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that EVER JIMINEZ-MENDOZA, age 33, a citizen of Honduras, was charged today in a one-count Indictment for illegal use of a Social Security number in violation of Title 42, United States Code, Section 408(a)(7)(B).
JIMINEZ-MENDOZA faces a maximum term of imprisonment of not more than five years, a maximum fine of $250,000, and a mandatory special assessment of $100.00. Additionally, JIMINEZ-MENDOZA is subject to up to three years of supervised release after imprisonment.
Acting U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilty of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran National Charged with Illegal Use of a Social Security NumberRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that NAHUM VERDE-ORTIZ, age 39, a citizen of Honduras, was charged today in a one-count Indictment for illegal use of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
VERDE-ORTIZ faces a maximum term of imprisonment of not more than five years, a maximum fine of $250,000, and a mandatory special assessment of $100. Additionally, VERDE-ORTIZ is subject to up to three years of supervised release after imprisonment.
Acting U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilty of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran National Charged with Illegal Use of a Social Security NumberRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOSE ALBERTO SANTOS-MONTALVAN, age 42, a citizen of Honduras, was charged today in a one-count Indictment for illegal use of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
SANTOS-MONTALVAN faces a maximum term of imprisonment of not more than five years, a maximum fine of $250,000, and a mandatory special assessment of $100. Additionally, SANTOS-MONTALVAN is subject to up to three years of supervised release after imprisonment.
Acting U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilty of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Henderson Man Sentenced to over Eight Years in Prison for Possession of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nevada man who pleaded guilty to possession of approximately 900 photos and videos of child pornography was sentenced Thursday by U.S. District Judge James C. Mahan to 97 months in prison and lifetime supervised release, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Brian Christopher Fisher, 43, pleaded guilty to one count of possession of child pornography. According to the plea agreement, during an online peer-to-peer child pornography investigation, law enforcement downloaded child pornography files from computers belonging to Fisher. Law enforcement officers then obtained and executed a search warrant for Fisher’s residence. Fisher admitted that he viewed, downloaded, and possessed approximately 732 photos and 169 videos of children performing sex acts with men and women, animals, and other juveniles.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI). Assistant U.S. Attorney Elham Roohani 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 and for information about internet safety education, visit www.usdoj.gov/psc.
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Former Wilkinsburg Man Charged with Robbing Two Banks and a Convenience StoreRead the Press Release
PITTSBURGH - One resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of bank robbery and Hobbs Act robbery, Acting United States Attorney Soo C. Song announced today.
The four-count indictment, returned yesterday, named Glenn Ford, age 58, formerly of Wilkinsburg, Pennsylvania, as the sole defendant.
According to the indictment, on or about September 15, 2017, and again on or about September 28, 2017, Ford robbed Huntington Bank, located at 650 Smithfield Street, Pittsburgh, PA 15222. The indictment also alleges that on or about September 20, 2017, Ford robbed Citizens Bank, located at 2801 East Carson Street, Pittsburgh, PA, 15203. Huntington Bank and Citizens Bank are each insured by the Federal Deposit Insurance Corporation. The indictment further alleges that on or about October 4, 2017, Ford robbed CoGo’s located at 2401 East Carson Street, Pittsburgh, PA, 15203.
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 City of Pittsburgh Bureau of Police 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.
Former Union Officer Pleads Guilty to EmbezzlementRead the Press Release
BOSTON – The former Secretary-Treasurer of UNITE HERE Local 26 pleaded guilty today in federal court in Boston to embezzling over $100,000 from the organization.
Henry Clay Green Sr., 60, of Boston, pleaded guilty to one count of embezzlement from a labor union. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 13, 2018.
From May 19, 2011 to July 14, 2016, Green was Secretary-Treasurer of UNITE HERE Local 26, a labor union representing the hospitality industries in Massachusetts and Rhode Island. In that capacity, Green exercised control over various aspects of Local 26’s financial operations and used his position to embezzle $171,455 from the organization for his own use. When confronted by union officials, Green confessed.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain/loss, whichever is greater, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor Racketeering and Fraud; Carol S. Hamilton, Acting Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; and Jonathan Russo, District Director of the U.S. Department of Labor, Office of Labor Management Standards, Boston District Office, made the announcement. Assistant U.S. Attorney Laura J. Kaplan of Weinreb’s Organized Crime and Gang Unit is prosecuting the case.
Former Teacher Sentenced to Nearly 8 Years in Prison for Sexually Assaulting Six StudentsRead the Press Release
WASHINGTON – Manuel Fernandez, 36, of Washington, D.C., was sentenced today to 7 years and 360 days in prison for sexually assaulting six of his students while working as a teacher at the Latin American Montessori Bilingual Charter School (L.A.M.B.), announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Fernandez pled guilty in June 2017, in the Superior Court for the District of Columbia to two charges of second-degree child sexual abuse, one charge of attempted second-degree child sexual abuse, and three charges of misdemeanor sexual abuse of a child. The plea, which was contingent upon the Court’s approval, called for a prison term of 1.5 to 8 years. The Honorable Judith Bartnoff accepted the plea and sentenced Fernandez accordingly. Following his prison term, Fernandez will be placed on 25 years of supervised release. Also, he will be required to register as a sex offender for the remainder of his life.
According to the plea documents, the incidents took place between 2014 and 2017 while Fernandez was a teacher at the school in Northwest Washington. In his guilty plea, Fernandez admitted to touching six students on their genitalia while they were in his classroom and in the school basement. He touched both male and female students, both under and over their clothing. The children ranged in age from 7 to 10 years old. Fernandez was placed on administrative leave after the incidents came to light and he was arrested on Feb. 24, 2017. He has been 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 acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Tracy Owusu, Lezlie Richardson and Elsa Maltese, all of the Victim/Witness Assistance Unit, former Intern Emma McArthur, and Assistant U.S. Attorneys Jessi Camille Brooks and J. Matt Williams, who prosecuted the case.
Former NBA Player Pleads Guilty to False Tax Returns, Identity Theft Related to Charity Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a former professional basketball player and representative for the National Basketball Players Association (NBPA) has pleaded guilty in federal court to charges related to a charity fraud scheme.
Kermit Alan Washington, 66, of Las Vegas, Nev., pleaded guilty before U.S. District Judge Greg Kays on Thursday, Nov. 30, 2017, to two counts of making a false statement in a tax return and one count of aggravated identity theft.
Co-defendant Patricia Harris, 65, of Las Vegas, also pleaded guilty yesterday. Harris pleaded guilty to making false declarations before a grand jury.
Washington and Harris are among 11 defendants who have pleaded guilty in several cases related to the investigations of an international software piracy conspiracy and charity fraud scheme.
Washington agreed to refer professional athletes to attorney Ronald Jack Mix, 78, of San Diego, Calif., so that Mix could file workers’ compensation claims in the state of California on behalf of the athletes. Mix then agreed to make donations to Washington’s charity, The Sixth Man Foundation, doing business as Project Contact Africa.
Washington accepted approximately $155,000 in donations to his charity, which were actually illegal referral payments from Mix and his law firm. Washington diverted those funds from the charity’s bank account to pay himself or for personal spending. Washington admitted that he failed to account for this income to the charity on Project Contact Africa’s IRS filings during those years.
In a separate but related case, Mix pleaded guilty on May 23, 2016, to filing a false tax return. Mix admitted that he made donations ranging from $5,000 to $25,000 for referrals of athletes, some of whom lived in the Western District of Missouri. Mix then claimed those payments as charitable contributions on his individual tax returns from 2010 to 2013.
Washington also admitted that he accepted approximately $82,025 in contributions to his charity from Reza Davachi, 43, of Damascus, Md., and likewise diverted those funds from the charity’s bank account to pay himself or for personal spending.
In a separate but related case, Davachi pleaded guilty on Oct. 20, 2015, to his role in one of the largest software piracy schemes ever prosecuted by the U.S. Department of Justice. Investigators seized more than $20 million in assets from conspirators who are estimated to have sold in excess of $100 million worth of illicit, unauthorized and counterfeit software products to thousands of online customers.
Davachi admitted that he managed the on-line presence of the Project Contact Africa eBay/PayPal charity. Davachi actively used the Project Contact Africa charity’s eBay/PayPal account to sell unauthorized, illicit, and counterfeit software and software components through eBay, and used the charity’s PayPal account to facilitate payments for these software components. By using the charity’s account to sell his items through the eBay charity store, Davachi saved thousands of dollars per month that he would have otherwise had to pay eBay in the form of various fees. During this time, the Project Contact Africa eBay/PayPal account took in approximately $12 million in revenue, and eBay/PayPal sustained losses of approximately $908,231 due to the waived fees.
Customers of the Project Contact Africa eBay charity store were under the impression that “100 percent” of the proceeds of sales were intended to go to the charity when, in fact, only a portion of the proceeds actually went to the charity. The remainder went to Davachi and his company, Rez Candles, Inc. Davachi also admitted that he allowed numerous other individuals to use the Project Contact Africa eBay/PayPal charity store to sell their own items at a significantly reduced amount as compared to other for-profit sales methods on eBay, with the understanding that they would pay back to Davachi a portion of their savings.
By pleading guilty, Washington specifically admitted that he filed a materially false individual tax return on Feb. 18, 2014, and that he filed a materially false Form 990-EZ for his tax-exempt organization on Aug. 20, 2012. On this Form 990-EZ, Washington claimed that Project Contact Africa received $52,069 in income; in reality these charity accounts received approximately $114,774 in income, some of which Washington diverted to his personal accounts and used towards his personal spending.
Washington also admitted that used the name, personal address and business address of another person without lawful authority in numerous state and federal filings on behalf of the charity. The identity theft victim, identified in court documents as “T.G.”, was a resident of Oregon. Washington admitted that he used her identity information so that Project Contact Africa could maintain its active status within the state of Oregon, which enabled the charity to receive the charitable donations from Mix and permitted Davachi to maintain the charity store for his sales on eBay.
Harris admitted that, while under oath before a federal grand jury, she made materially false statements by denying that she played any role in creating and co-authoring false and fictitious board minutes for the Sixth Man Foundation d/b/a Project Contact Africa charity. Harris admitted that she created and co-authored false and fictitious board minutes for purported board of directors meetings in 2012, 2013, 2014 and 2015, which never actually occurred. The information and content contained within these falsified board minutes was relayed to Harris by Washington. She aided in the preparation and falsification of these minutes at Washington’s direction.
Under federal statutes, Washington is subject to a sentence of up to six years in federal prison without parole for the tax counts, plus a mandatory consecutive sentence of two years in federal prison without parole on the identity theft count. Harris is subject to a sentence of up to five years in federal prison without parole. By pleading guilty today, Washington acknowledged that the court may order restitution as related conduct in connection with his personal tax years 2010, 2011, 2012, and 2014, and for the tax years 2010, 2012, and 2013 for the tax returns filed for the Sixth Man Foundation, D/B/A Project Contact Africa.The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Daly and Curt Bohling and Assistant U.S. Attorney Ryan Raybould of the Middle District of Tennessee (formerly of the Department of Justice Tax Division). It was investigated by IRS-Criminal Investigation and Immigration and Customs Enforcement’s Homeland Security Investigations.
Former Judge Sentenced on Federal Contempt ChargeRead the Press Release
Abingdon, VIRGINIA – A former juvenile and domestic relations judge was sentenced this week to prison time on federal contempt of court charges related to his wife’s federal trial on public corruption charges, United States Attorney Rick A. Mountcastle announced.
Kurt Pomrenke, 64, of Bristol, Virginia, was sentenced this week to two months in prison and ordered to pay a fine of $1,000. He was previously found guilty of one count of contempt of court.
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Pomrenke, who was removed by the Virginia State Supreme Court from the bench in a ruling earlier this week, violated a federal judge’s order in regards to the disclosure of discovery materials associated with his wife’s public corruption trial. His wife, Stacey Pomrenke, was a former executive with BVU who was ultimately convicted of federal charges. An investigation into Kurt Pomrenke’s actions during his wife’s trial also proved that he contacted at least two witnesses in an attempt to influence their testimony. In one instance, Kurt Pomrenke included his business card identifying himself as a judge with a handwritten note that he mailed to the potential witness.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Former Bank Executive Charged for Role in $15 Million Bank Loan SchemeRead the Press Release
WASHINGTON – A former Kansas bank executive was charged in an indictment filed today for his participation in a bank fraud scheme to obtain a $15 million construction loan from 26 Kansas banks based on allegedly false information contained in the loan documents.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge David Anderson of the Federal Deposit Insurance Corporation Office of Inspector General’s (FDIC-OIG) Kansas City Regional Office, Special Agent in Charge Karl A. Stiften of the Internal Revenue Service Criminal Investigation’s (IRS-CI) St. Louis Field Office, Special Agent in Charge Darrin E. Jones of the FBI’s Kansas City Field Office and Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) Central Region Office made the announcement.
Troy A. Gregory, 50, of Lawrence, Kansas, was charged in an indictment filed in the District of Kansas with one count of conspiracy to commit bank fraud, four counts of bank fraud, and two counts of false statements.
According to the indictment, Gregory was a bank executive and loan officer who had made millions of dollars in loans to a group of borrowers who were struggling to make payments on the loans. The indictment alleges that beginning in approximately late 2007, Gregory began the process of making a $15.2 million construction loan to build an apartment complex to that same group of borrowers. The indictment further alleges that Gregory’s bank shared this loan with 25 other Kansas banks. Gregory allegedly made or caused others to make false statements to the banks about the strength of the borrowers, the debt status of the apartment property and the existence of approximately $1.7 million in certificates of deposit for collateral on the loan, all to get the loan approved. Instead of using the loan funds promised for building the apartments, Gregory allegedly immediately diverted over $1 million of the loan to pay for part of the certificates of deposit pledged as collateral, pay off debt on the apartment property and make payments on unrelated loans. Other Kansas banks that shared in this loan allegedly would not have participated in the loan without the false representations and promises.
The indictment alleges that the banks ultimately wrote off millions of dollars on the $15.2 million construction loan.
An indictment is merely an allegation and all defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The FDIC-OIG, IRS-CI, FBI and FHFA-OIG are investigating this matter. Trial Attorney Andrew R. Tyler and Senior Litigation Counsel David A. Bybee of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country, focusing on cases of national significance and international scope. Fraud Section prosecutors have vast experience in investigating and prosecuting securities and financial fraud, health care fraud and foreign corruption. The Section is routinely the national leader in large, sophisticated white collar investigations and prosecutions, frequently in partnership with U.S. Attorneys’ Offices and in coordination with foreign law enforcement agencies.
Florida Man Pleads Guilty to Committing $3.3 Million Telemarketing Scam Targeting Elderly VictimsRead the Press Release
LAS VEGAS, Nev. – An Orlando, Florida resident pleaded guilty today for his role in a telemarketing scheme to defraud more than 1,000 victims, many of them elderly, of more than $3.3 million, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Daniel Martin Boyar, aka “Wolf,” 62, of Orlando, Fla., pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud; two counts of mail fraud; and two counts of wire fraud. United States District Judge James C. Mahan accepted his guilty plea. Sentencing is scheduled for May 22, 2018. The statutory maximum penalty is 20 years in prison and a $250,000 fine. In addition, Boyar faces restitution in an amount not to exceed $3.5 million to the victims.
According to admissions made in connection with his guilty plea, from October 2010 to April 2012, Boyar, the leader of the scheme, together with his co-conspirators devised and participated in a telemarketing scheme to cheat timeshare owners out of money by promising to sell their timeshares in return for the owners paying in advance a portion of the closing costs associated with the purported sales. There were no buyers. The timeshare sales were never arranged and never occurred. This is a criminal scheme commonly known as the “buyer’s pitch,” an advance-fee scam. The scam operated under numerous business names including Holiday Advertising, Professional Concepts LLC, TeleTeton Corporation, Redline Funding LLC, Great West Funding Incorporated, Equity Financial Services LLC, and First Capital Financial Services Corporation, moving their business front from state to state and changing the name approximately every 90 days. The conspirators also created websites with false and misleading information to include customer testimonials, company officers, and press releases. Boyar and his co-conspirators used wire communications and mail carrier services to carry out the scheme.
The case is being investigated by the FBI and the U.S. Postal Inspection Service. Assistant U.S. Attorney Dan Cowhig is prosecuting the case.
Consumers should use caution when previously unknown telemarketers offer unsolicited services. It is relatively easy for scam artists to create the appearance of legitimacy for a fraudulent business front by manipulating information available through the Internet. Fraudsters frequently are able to buy or steal information related to their intended victims that the victim believed was confidential, helping the fraudster trick the victim into believing the fraudster is part of a legitimate business.
For information about the Department of Justice’s elder justice initiative, visit http://www.usdoj.gov/elderjustice. The website is a “one-stop shop” for prosecutors, researchers, practitioners, victims and families looking for resources to identify, report and prosecute elder abuse and financial exploitation, including common fraud schemes perpetrated against seniors.
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Five Facing Federal Cocaine Trafficking Conspiracy ChargesRead the Press Release
PITTSBURGH – Five men have been indicted on charges of violating federal narcotics and firearms laws, Acting United States Attorney Soo C. Song announced today.
The indictment, returned on Nov. 30, charges Don Juan Mendoza, age 38, of Lawrenceville, Georgia; Jamie Lightfoot, Jr., age 25, of, Verona, Pennsylvania; Pedro Alejandro Blanco, age 39, of Jacksonville, Florida; Brian Powell, age 39, of Jacksonville, Florida; and Troy Rowe, age 28, of Columbia, South Carolina, with conspiring to possess with intent to distribute and distribute of five kilograms or more of cocaine and less than 50 kilograms of marijuana. Additionally, Mendoza, Blanco, Rowe, and Powell are charged with possession with the intent to distribute five kilograms or more of cocaine and less than 50 kilograms of marijuana. Mendoza and Blanco are also charged with possessing a firearm by a convicted felon. Finally, all of the defendants are charged with possessing firearms in furtherance of a drug trafficking crime.
According to the previously filed criminal complaint, the defendants were part of a large-scale drug trafficking scheme. Brian Powell, Troy Rowe and Pedro Blanco were involved in the transport of an RV, registered to Mendoza’s mother, containing drugs from the Los Angeles area to the Penn Hills residence of Jamie Lightfoot, Jr. Don Juan Mendoza also arrived at the Lightfoot residence about the same time as the RV containing the drugs.
According to the complaint, a search of the RV revealed approximately 52 kilograms of cocaine, approximately 85 pounds of marijuana, and two firearms. The cocaine and marijuana were secreted in a compartment underneath the bunk beds in the RV. The two firearms were found in the same compartment as some of the cocaine and marijuana. The complaint also alleges that hundreds of thousands of dollars were recovered during a search of Lightfoot, Jr.’s residence.
The law provides for a minimum sentence of 10 years in prison and up to life, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case. The Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the Indictment in this case.
Felon Charged with Violating of Federal Firearms LawsRead the Press Release
PITTSBURGH - One resident of Pittsburgh’s North Side has been indicted by a federal grand jury in Pittsburgh on two charges, both being federal firearm violations, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned on Nov. 29, named Gerald Wayne Underwood, age 36, as the sole defendant.
According to the indictment, on May 17, 2016, Gerald Wayne Underwood, a convicted felon, was in possession of a sawed-off shotgun, which was not registered in the National Firearms Registry to his name. Federal law prohibits possession of such firearms without registration, and federal law further prohibits an individual who has been convicted of a felony from possessing a firearm.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $250,000, 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. This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bureau of Pittsburgh Police 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.
Federal Indictment Charges Former Mayor of Markham with Pocketing Bribes While in Office in Exchange for Steering City Work to VendorsRead the Press Release
CHICAGO — The former mayor of south suburban Markham solicited and received bribes from vendors while in office in exchange for steering them city business, according to a 12-count indictment returned in federal court in Chicago.
The indictment accuses DAVID WEBB JR., who served as mayor of Markham from 2001 until earlier this year, of seeking and obtaining bribes from vendors in the construction and financial services industries. Three vendors provided a total of at least $300,000 in bribes to Webb in the form of cash payments, campaign contributions, purported donations to city programs, and checks made payable to shell companies operated by Webb and his relatives, the indictment states. As part of the bribery scheme, Webb allegedly used his influence as mayor to help the vendors maintain city business or procure new city contracts, including the renovation of a Markham park and the construction of a multi-million dollar senior living complex that would later be named in Webb’s honor.
The indictment was returned Thursday in federal court in Chicago. It charges Webb, 69, of Markham, with one count of honest services wire fraud and one count of willfully filing a false tax return. The indictment also charges an owner and an executive of two companies who allegedly paid bribes to Webb, as well as one of the companies itself. Arraignments in U.S. District Court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The U.S. Securities and Exchange Commission provided valuable assistance. The government is represented by Assistant U.S. Attorneys Steven Dollear and Georgia Alexakis.
The indictment describes instances in which Webb personally solicited bribes from companies doing business with the city. In 2008, Webb allegedly sought money from THOMAS SUMMERS, an owner of Alsterda Cartage and Construction Co., Inc., an Alsip-based sewer subcontractor. Over the next five years, Summers and Alsterda issued at least seven checks to Webb totaling approximately $174,000, according to the indictment. Webb directed Summers to make the checks payable to a Webb family member or one of the shell companies controlled by Webb and his family that performed no actual work, the indictment states. Summers also delivered cash bribes to Webb and contributed to mayoral campaign events, the indictment states.
In exchange for the bribes, Webb allegedly used his position as mayor to take official action benefitting Alsterda, including causing Alsterda to be assigned city projects. Summers, 65, of Homer Glen, is charged with one count of conspiracy to commit federal program bribery.
Webb also sought and received bribes from the general contractor on the senior center and park projects, the indictment states. In early 2012, Webb met with MICHAEL JARIGESE, the president of TOWER CONTRACTING LLC, and asked for $100,000, the indictment states. At the time, Tower was seeking to expand its portfolio of city business, which already included the nearly $15 million senior center. Jarigese later delivered two Tower-issued checks to Webb totaling $85,000, the indictment states. At Webb’s direction, Jarigese made the checks payable to one of the shell companies that Webb and his family controlled, which performed no actual work, and then fraudulently recorded them in Tower’s records as payment for contracting work and a donation to a Markham festival, the indictment states. The purported festival payment was described in the company’s records as “Tower giving back to the community,” the indictment states. Tower also contributed more than $150,000 to the mayor’s campaign and Markham events, the indictment states.
In exchange for the bribes, Webb allegedly used his position as mayor to take official action that benefited Tower, such as awarding it the $3.4 million Roesner Park project. Jarigese, 64, of Frankfort, and Tower, which is based in Mokena, are each charged with nine counts of honest services wire fraud and one count of federal program bribery.
The public is reminded that an indictment 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.
Each count of honest services wire fraud is punishable by up to 20 years in prison. The maximum sentence for federal program bribery is ten years. The conspiracy count is punishable by up to five years, while the tax count carries a maximum of three years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Ellicott City Man Pleads Guilty to Willful Retention of National Defense InformationRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – Nghia Hoang Pho, age 67, of Ellicott City, Maryland, pleaded guilty today to willful retention of national defense information.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Acting Assistant Attorney General for National Security Dana J. Boente; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, beginning in April 2006, Pho was employed as a Tailored Access Operations (“TAO”) developer for the National Security Agency (“NSA”). The NSA's TAO involved operations and intelligence collection to gather data from target or foreign automated information systems or networks and also involved actions taken to prevent, detect, and respond to unauthorized activity within Department of Defense information systems and computer networks, for the United States and its allies.
In connection with his employment, Pho held various security clearances and had access to national defense and classified information. Pho also worked on highly classified, specialized projects. According to the plea agreement, beginning in 2010 and continuing through March 2015, Pho removed and retained United States government documents and writings that contained national defense information, including information classified as Top Secret and Sensitive Compartmented Information. This material was in both hard copy and digital form, and was retained in Pho’s residence in Maryland.
“The facts supporting this criminal charge and guilty plea display a total disregard of the defendant’s oath and promise to protect our nation’s national security. Such conduct cannot, and will not, be tolerated,” noted Acting United States Attorney Schenning.
"The FBI investigation revealed a flagrant violation of national security law by removal of classified information to a vulnerable setting. The U.S. government entrusts the most sensitive classified information to its security clearance holders, and in return, demands unyielding adherence to law, policy, and good sense to protect classified information by maintaining classified information in secured, approved government space. The scope of harm is not theoretical -- it denotes another attack on the bedrock secrecy and discipline required of USG security clearance holding professionals. The criminal acts described in the criminal information show a subject heedless of obligations to national security, a betrayal of the trust inherent in the security clearance he was granted, and provides clear notice that the FBI will vigorously investigate cases whenever a compromise of classified information arises,” said Special Agent in Charge Johnson.
Pho faces a maximum sentence of 10 years in prison, followed by three years of supervised release. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. United States District Judge George L. Russell has scheduled sentencing for April 6, 2018 at 10 a.m.
Acting United States Attorney Schenning and Acting Assistant Attorney General Boente commended the FBI and the NSA for their work in the investigation. Mr. Schenning thanked his office’s national security prosecutors and attorneys from the Justice Department’s National Security Division, Counterintelligence and Export Control Section, all of whom are handling the prosecution.
El Salvadoran National Pleads Guilty to Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced today that JUAN CARLOS ACOSTA, also known as “Juan Carlos Acosta-Santos,” 32, a citizen of El Salvador last residing in Manchester, pleaded guilty yesterday before Chief U.S. District Judge Janet C. Hall in New Haven to one count of illegal reentry of a removed alien.
According to court documents and statements made in court, on September 27, 2006, ACOSTA was convicted in Manchester Superior Court of assault in the first degree and sentenced to one year of imprisonment, time served, and a one-day conditional discharge. On December 11, 2006, he was removed to El Salvador.
In February 2015, ACOSTA was arrested in East Hartford on charges of breach of peace in the second degree and interfering. On April 17, 2015, he was removed to El Salvador without a resolution on the state charges.
In December 2015, ACOSTA was found in the U.S. near Rio Grande Valley, Texas. On December 23, 2015, he was removed to El Salvador.
On February 12, 2017, the Connecticut State Police arrested ACOSTA for assault in the second degree with a weapon, and related misdemeanor offenses. He has been detained since arrest.
Chief Judge Hall scheduled sentencing for February 26, 2018, at which time ACOSTA faces a maximum term of imprisonment of 20 years.
The state charges against ACOSTA are pending in Rockville Superior Court.
This matter is being investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national charged with an immigration crime pleaded guilty and was sentenced in federal court in Boston yesterday.
Jose Mejia Ruiz, 40, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Douglas P. Woodlock sentenced Mejia Ruiz to four months in prison and three years of supervised release.
In 2009, Mejia Ruiz, using the alias, Thomas Montes, was convicted in federal court in New York of passport fraud. Upon completion of his sentence, Mejia Ruiz was placed into removal proceedings, and on Jan. 12, 2011, he was deported to the Dominican Republic.
In June 2017, Mejia Ruiz, using an alias of Carmelo Rosado, was arrested by law enforcement in Massachusetts and charged in state court with drug distribution.
On Oct. 3, 2017, while in custody on the state drug charge at Middlesex House of Correction, it was determined that Mejia Ruiz was unlawfully present in the United States.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Drug DistributionRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to distributing cocaine.
Elvin Radhames Soto, a/k/a Jimmy, a/k/a Jimmy Quinones, a/k/a Frank Norris Agusto, a/k/a Jorge Belnabel Santo, 38, pleaded guilty to conspiracy to distribute cocaine and heroin. U.S. District Court Senior Judge Rya W. Zobel scheduled sentencing for Jan. 23, 2018.
Soto and Ileana Valdez supplied hundreds of grams of heroin and cocaine a week to members of Boston’s largest and most influential city-wide gang, the Columbia Point Dawgs (CPD), also known on the street as “the Point,” with the help of several drug runners. Together, Soto and Valdez ran a round-the-clock drug delivery organization which used three drug stash houses and one money stash house.
Soto is the 47th of 51 defendants tied to the CPD to plead guilty. Valdez previously pleaded guilty and is awaiting sentencing.
Soto faces a minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $10 million. Soto will be deported upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Suffolk County District Attorney Daniel F. Conley; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; Boston Police Commissioner William Evans; and Commissioner Thomas Turco of the Massachusetts Department of Correction, made the announcement.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Domestic Abuse and Drug Use Send Felon Back to PrisonRead the Press Release
PITTSBURGH - A resident of Wilmerding, Pennsylvania, was sentenced in federal court on November 28, 2017 to one year and one day in prison as a result of again violating his federal supervision, Acting United States Attorney Soo C. Song announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on defendant Ondaryle Smith, who was initially sentenced to 10 years in prison and 5 years of supervision for his federal drug conviction. Smith later served an additional sentence of 2 years in prison and 3 years of supervision in 2014 for other violations of his supervision.
According to information presented to the court, while serving his most recent supervision, the defendant tested positive for cocaine and marijuana use, and later assaulted his girlfriend.
Chief Judge Conti also imposed a new period of 24 months of supervision by the United States Probation Office, to begin after Smith completes his most recent jail sentence.
Assistant United States Attorney Ross E. Lenhardt of the Violent Crimes Section prosecuted this case on behalf of the government and played the 911 recording for the Court. There, the defendant’s girlfriend is in obvious distress and states that Smith choked her, kicked her in the ribs, and hit her in the face. The prosecution also presented the Court with a picture of the victim’s facial injuries.
Acting United States Attorney Song commended the Allegheny County Police Department for the investigation leading to the successful prosecution of Smith.
Doctor Indicted on Heath Care Fraud and Opioid Diversion ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Charles J. Gartland, D.O., age 59, of Cochranville, Pennsylvania, was indicted on November 29, 2017, by a federal grand jury on health care fraud and opioid diversion charges.
According to United States Attorney David J. Freed, the indictment alleges Gartland perpetrated a scheme to defraud two health care benefit programs, WellSpan Health of York, PA and Medicare, by writing 221 prescriptions between September 2014 and August 2017, for Hydrocodone, Oxycodone, Fentanyl, Morphine and other controlled substances. According to the indictment, the prescriptions were issued by Gartland under the names of three of his family members. Of the 221 prescriptions, 194 were for 17,187 Hydrocodone-Ibuprofen 7.5 -200 mg pills.
The indictment also alleges the prescriptions were never intended for the medical care or treatment of the family members, but instead were intended for Dr. Gartland’s personal use. As such, the prescriptions were outside the scope of professional medical practice and were not issued for a legitimate medical purpose.
According to the indictment, Gartland allegedly filled the prescriptions at four pharmacies in York, Chester and Lancaster Counties. It’s alleged that Gartland deceived the pharmacies into giving him the pills by making them believe they were intended for his family members. WellSpan and Medicare were allegedly defrauded when they paid claims submitted by the pharmacies for the prescriptions.
The indictment charges Gartland with 10 counts of health care fraud and 10 counts of obtaining controlled substances by deception.
Gartland surrendered to the U.S. Marshal Service yesterday and entered a not guilty plea before United States Magistrate Judge Martin C. Carlson. Judge Carlson ordered Gartland released pending trial under supervision by the U.S. Probation Office. Trial was scheduled for February 5, 2018, before United States District Court Judge Yvette Kane.
The matter is being investigated by the Harrisburg Offices of the Drug Enforcement Administration, the U.S. Department of Health and Human Services, Office of the Inspector General, and the Pennsylvania Department of State Bureau of Enforcement and Investigation. Assistant U.S. Attorney Kim Douglas Daniel is prosecuting the case.
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.
Each count of Health Care Fraud is punishable by up to 10 years’ imprisonment and a $250,000 fine. Each count of Obtaining Possession of a Controlled Substance by Deception is punishable by up to four years’ imprisonment and a $250,000 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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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
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.
Commercial Construction Estimator Admits Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A South Jersey man today admitted defrauding New Jersey state health benefits programs and other insurers of $800,000 by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick and N.J. Attorney General Christopher S. Porrino announced.
Timothy Frazier, 42, a commercial construction estimator from Galloway, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Frazier served as a recruiter in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Frazier and others recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy, which were not medically necessary. Frazier secured insurance information from the individuals and passed it along to a conspirator, who had a doctor sign prescriptions without examining the individuals. The prescriptions were faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
The pharmacy then paid one of Frazier’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Frazier and other members of the conspiracy. Frazier paid recruiters under him and paid individuals with insurance coverage to reward them for obtaining prescriptions.
According to the information, the Pharmacy Benefits Administrator paid Compounding Pharmacy more than $50 million for compounded medications mailed to individuals in New Jersey. Frazier received $145,425 for his role in the scheme.
As part of the plea agreement, Frazier must forfeit $145,425 in criminal proceeds and pay restitution of at least $801,119.
The defendant faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 29, 2017.
Eleven other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, John Gaffney, Judd Holt, George Gavras, Richard Zappala, Michael Neopolitan, and Andrew Gerstel – have pleaded guilty from August through November 2017 and await sentencing.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Porrino and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel: Robert G. Stahl Esq., Westfield, New Jersey
Columbia County Felon Indicted on Gun ChargesRead the Press Release
ALBANY, NEW YORK – Christopher Mikelinich, age 52, of Ancram, New York, was arraigned today on an indictment charging him with possessing firearms as a felon.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The indictment charges Mikelinich with possessing a 12 gauge semi-automatic shotgun and a .22 caliber semi-automatic rifle after having been convicted of a felony offense. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Mikelinich was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and detained pending a trial before Senior United States District Judge Norman A. Mordue.
This case is being investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Chicago Resident Sentenced to 10 Years in Federal Prison for Conspiring to Manufacture Marijuana in Rockford WarehouseRead the Press Release
ROCKFORD — A Chicago man was sentenced today by U.S. District Judge Frederick J. Kapala for his role in a conspiracy to manufacture and distribute marijuana.
YOUSIF Y. PIRA, 65, was sentenced to ten years in federal prison, to be followed by five years of supervised release.
On July 13, 2017, following a four-day jury trial in federal court in Rockford, Pira was found guilty of conspiring to manufacture, possess and distribute 1,000 or more marijuana plants. According to the indictment and the evidence at trial, between Jan. 2, 2013, and Jan. 6, 2015, Pira conspired with JEREMIAH N. CLEMENT, 39, of Des Plaines, GEORGE H. BACUS, 54, of Niles, JUSTIN T. PAGLUSCH, 36, of Ingleside, SHLIMON SHIMON, 49, of Chicago, CASEY WILLIAMS, 30, of Great Falls, Mont., and DESTINY FREEMAN, 24, of Palmer, Alaska, to illegally grow, store and distribute marijuana in a warehouse at 1916 11th Street in Rockford. The warehouse was destroyed by a fire on Jan. 6, 2015. As part of the conspiracy, Pira purchased grow lights and other equipment and supplies for the illegal operation to grow marijauna in the warehouse and installed wiring for the lights used to grow marijuana.
Clement, Paglusch, Bacus, Williams, and Freeman previously pleaded guilty and admitted their roles in the conspiracy. Clement was sentenced on June 3, 2016, to ten years in prison, to be followed by five years of supervised release; Paglusch was sentenced on June 23, 2016, to ten years in prison, to be followed by five years of supervised release; Bacus was sentenced on Sept. 22, 2017, to 33 months in prison, to be followed by two years of supervised release; Williams was sentenced on Aug. 23, 2017, to 57 months in prison, to be followed by three years of supervised release; and Freeman was sentenced on Aug. 24, 2017, to 23 months in prison, to be followed by two years of supervised release. An arrest warrant was previously issued for Shimon, who is still at large.
Today's sentencing of Pira was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Derek Bergsten, Chief of the Rockford Fire Department; and Anthony Scarpelli, Chief of the Skokie Police Department. The Winnebago County Sheriff’s Department Narcotics Unit and Rockford Police Department Narcotics Unit assisted in the investigation.
The government is represented by Assistant U.S. Attorneys Joseph C. Pedersen and Margaret J. Schneider.
Carthage Man Sentenced to 40 years in Federal Prison for MurderRead the Press Release
Jackson, Miss - Christopher E. Lemon, age 37, of Carthage, was sentenced on Thursday by U.S. District Judge Carlton Reeves to a term of 480 months in federal prison for second degree murder, announced U.S. Attorney Mike Hurst, Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation, and Christopher Smith, Special Agent in Charge of the National Park Service- Investigative Services Branch.
On July 3, 2014, Lemon was riding in a car with a co-worker on the Natchez Trace Parkway in Leake County, Mississippi. Lemon had stolen a firearm from their employer’s store before getting into the vehicle with the victim. While inside the vehicle, Lemon shot the victim five times in the chest and leg, leaving her in the backseat of her vehicle. She was later found by a National Park Service ranger dead at the scene.
A federal grand jury indicted Lemon on September 20, 2016, charging him with Murder in the Second Degree, Felon in Possession of a Firearm, Possession of a Stolen Firearm, Stealing a Firearm and Use of a Firearm in Relation to a Crime of Violence. On September 6, 2017, Lemon appeared before U.S. District Judge Carlton Reeves and pled guilty to Murder in the Second Degree. This charge carries a penalty of any number of years and up to life in prison, 5 years of supervised release, and $250,000.00 fine.
Lemon’s sentenced of 480 months of imprisonment will be immediately followed by a 5 year term of supervised release. He was also ordered to pay restitution in the amount of $7,269.34 to the Office of Attorney General- Crime Victim Compensation Fund.
This case was investigated by the National Park Service, the Federal Bureau of Investigation, and the Leake County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Candace Mayberry and Mary Helen Wall.
Cambria County Man Distributed Heroin that Caused Overdose DeathRead the Press Release
PITTSBURGH - A resident of Northern Cambria, Pennsylvania, pleaded guilty yesterday in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
Brad Troup, 39, of Northern Cambria, Pennsylvania, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on January 13, 2016, Troup distributed and possessed with intent to distribute heroin. As a part of his guilty plea, Mr. Troup admitted that he caused the death of Jeremiah Huey, who had used heroin distributed by Troup.
Judge Conti scheduled sentencing for March 9, 2018. The law provides for a maximum sentence of up to 20 years in prison, a fine of $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 Drug Enforcement Administration, along with the Pennsylvania State Police, the Offices of the District Attorneys of Allegheny and Indiana Counties, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Brad Troup.
California Woman Pleads Guilty to Federal Drug Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Toniette Rochelle Doty, 47, of San Bernardino, Calif., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
The DEA arrested Doty in March 2017, after seizing approximately 1.10 kilograms (2.42 pounds) of marijuana and 0.9 kilograms (1.98 pounds) of methamphetamine from her during an interdiction investigation at the Greyhound Bus Station in Albuquerque. The marijuana and methamphetamine were contained in eight bundles inside of Doty’s luggage.
Doty subsequently was indicted on March 14, 2017, and was charged with possession of methamphetamine with intent to distribute on March 1, 2017, in Bernalillo County, N.M.
During today’s change of plea hearing, Doty pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute. In entering the guilty plea, Doty admitted that on March 1, 2017, she transported approximately 0.9 kilograms of methamphetamine from Los Angeles, Calif., to Albuquerque on the Greyhound Bus. Doty further admitted that she intended to give the methamphetamine to another individual when she reached her destination of Little Rock, Arkansas, for further distribution.
At sentencing, Doty faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
Buffalo Man Arrested 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 Leon R. Williams, 38, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute heroin and cocaine, and possession of a firearm in furtherance of drug trafficking. The charges carry a maximum penalty of life in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that, according to the complaint, in September 2017, law enforcement officers began investigating the narcotics distributing activities of the defendant. Investigators received information that Williams was distributing heroin from his residence at 37 Texas Street in Buffalo. On November 29, 2017, officers observed the defendant leave his residence and get into his 2007 Audi Q7. Williams traveled north on Bailey Avenue and stopped at a dry cleaner. Upon exiting the business, the defendant was taken into custody.
Subsequently, officers executed a search warrant at 37 Texas Street and recovered multiple small bags containing an off-white substance and a brown powdery substance on the kitchen table. The bags were believed to contain suspected heroin and cocaine. Scales, razor blades and cutting agents were also located in the residence along with a Glock 22, .40 caliber firearm, and a .40 caliber magazine containing 10 rounds of ammunition was loaded inside the firearm. A second high-capacity magazine for a .40 caliber firearm was also seized together with a total of $73,743.00 in cash.
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on December 4, 2017.
The complaint is plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
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.