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23 January 2018
Two California Urologists Agree to Pay More than $1 Million to Settle False Claims Act Allegations Related to Radiation Therapy ReferralsRead the Press Release
Drs. Aytac Apaydin and Stephen Worsham, urologists based in Northern California, will pay $1.085 million to resolve allegations that they submitted and caused the submission of false claims to Medicare for image guided radiation therapy (IGRT) that was referred and billed in violation of the physician self-referral law (commonly known as the “Stark Law”) and the Anti-Kickback Statute, the Department of Justice announced. Drs. Apaydin and Worsham own and operate Salinas Valley Urology Associates (SVUA) in Salinas, California. They also owned Advance Radiation Oncology Center (AROC), located in Salinas, California, which dissolved in 2016. IGRT is used to treat patients who are diagnosed with cancer, including prostate cancer patients.
“Health care laws prevent health care providers, and physicians in particular, from referring Medicare services in exchange for financial incentives,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice is committed to enforcing those laws and preventing physicians from improperly injecting profit motives into their decisions about patient care.”
The Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare. The Stark Law forbids health care providers from billing Medicare for certain services referred by physicians who have a financial relationship with the entity performing the service, unless an exception applies.
“The United States Attorney’s Office is committed to protecting the residents of the district from unlawful financial schemes that compromise patient care,” said Acting U.S. Attorney Alex G. Tse. “Patients who use our federal health care programs deserve care that is free from fraud. The few doctors who choose to engage in this type of conduct not only undermine the system, but impugn the many honest and dedicated medical professionals who serve our community.”
The United States alleged that Drs. Apaydin and Worsham knowingly caused eight urologists in Monterey and Salinas, California (the “Lessee Urologists”) to violate the Anti-Kickback Statute and the Stark Law. Drs. Apaydin and Worsham allegedly solicited the Lessee Urologists to enter into lease agreements with AROC under which the Lessee Urologists could bill for, and thereby profit from, their referrals of IGRT performed at AROC. The United States also alleged that Drs. Apaydin and Worsham violated the Stark Law by improperly billing Medicare for their own IGRT referrals to AROC, despite the fact that AROC and SVUA were separate entities and their financial arrangements did not comply with any exceptions to the Stark Law.
The Lessee Urologists previously entered into settlement agreements pertaining to their IGRT claims, under which they collectively agreed to pay the United States $900,000.
The United States’ investigation was a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Northern District of California, and the Department of Health and Human Services Office of Inspector General.
The claims settled by this agreement are allegations only; there has been no determination of liability.
Two California Urologists Agree to Pay More Than $1 Million to Settle False Claims Act Allegations Related to Radiation Therapy ReferralsRead the Press Release
SAN FRANCISCO – Drs. Aytac Apaydin and Stephen Worsham, urologists based in Northern California, will pay $1.085 million to resolve allegations that they submitted and caused the submission of false claims to Medicare for image guided radiation therapy (IGRT) that was referred and billed in violation of the physician self-referral law (commonly known as the “Stark Law”) and the Anti-Kickback Statute, the Department of Justice announced today. Drs. Apaydin and Worsham own and operate Salinas Valley Urology Associates (SVUA) in Salinas, California. They also owned Advance Radiation Oncology Center (AROC), located in Salinas, California, which dissolved in 2016. IGRT is used to treat patients who are diagnosed with cancer, including prostate cancer patients.
“The United States Attorney’s Office is committed to protecting the residents of the district from unlawful financial schemes that compromise patient care,” said Acting U.S. Attorney for the Northern District of California Alex G. Tse. “Patients who use our federal health care programs deserve care that is free from fraud. The few doctors who choose to engage in this type of conduct not only undermine the system, but impugn the many honest and dedicated medical professionals who serve our community.”
“Health care laws prevent health care providers, and physicians in particular, from referring Medicare services in exchange for financial incentives,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice is committed to enforcing those laws and preventing physicians from improperly injecting profit motives into their decisions about patient care.”
The Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare. The Stark Law forbids health care providers from billing Medicare for certain services referred by physicians who have a financial relationship with the entity performing the service, unless an exception applies.
The United States alleged that Drs. Apaydin and Worsham knowingly caused eight urologists in Monterey and Salinas, California, (the “Lessee Urologists”) to violate the Anti-Kickback Statute and the Stark Law. Drs. Apaydin and Worsham allegedly solicited the Lessee Urologists to enter into lease agreements with AROC under which the Lessee Urologists could bill for, and thereby profit from, their referrals of IGRT performed at AROC. The United States also alleged that Drs. Apaydin and Worsham violated the Stark Law by improperly billing Medicare for their own IGRT referrals to AROC, despite the fact that AROC and SVUA were separate entities and their financial arrangements did not comply with any exceptions to the Stark Law.
The Lessee Urologists previously entered into settlement agreements pertaining to their IGRT claims, under which they collectively agreed to pay the United States $900,000.
Assistant U.S. Attorney Kimberly Friday is handling this matter with assistance from Tina Louie and Garland He. The United States’ investigation was a coordinated effort by the U.S. Attorney’s Office for the Northern District of California, the Civil Division of the Department of Justice, and the Department of Health and Human Services Office of Inspector General.
The claims settled by this agreement are allegations only; there has been no determination of liability.
Three defendants plead guilty in federal court in CharlestonRead the Press Release
CHARLESTON, W.Va. – Three defendants pleaded guilty today in federal court in Charleston, announced United States Attorney Mike Stuart. Roger Lee Lemons, 23, of Charlotte, entered his guilty plea to distribution of hydromorphone. In a separate prosecution, Laron Safford, 41, of Bluefield, pled guilty to being a felon in possession of a firearm. In another separate prosecution, Tomas Mateo, 41, entered his guilty plea to possession of a weapon by a federal inmate.
U.S. Attorney Stuart commended the Southern Regional Drug and Violent Crime Task Force for the investigations of Lemons and Safford. He also commended the Federal Bureau of Prisons for the investigation of Mateo.
Lemons admitted that on October 31, 2014, he sold hydromorphone pills to a confidential informant working with law enforcement. The drug deal took place in Princeton. Lemons further admitted that he sold hydromorphone pills on three other occasions. Lemons faces up to 20 years in federal prison when he is sentenced on May 1, 2018.
In a separate prosecution, Safford admitted that on September 14, 2017, he possessed two pistols at his residence in Bluefield. Safford was prohibited from possessing any firearms under federal law because of a 1998 felony drug conviction in McDowell County and a 2004 felony drug conviction in Iredell County, North Carolina. Safford also admitted that he sold cocaine to a confidential informant working with law enforcement on four occasions in September 2017. Safford faces up to 10 years in federal prison when he is sentenced on May 1, 2018.
In another separate prosecution, Mateo, an inmate at the Federal Correctional Institution at McDowell, admitted that on June 26, 2017, he possessed a handcrafted weapon commonly known as a “shank” in his shoe. The weapon was a piece of plastic, approximately six inches in length and sharpened to a point at one end, with a handle made of thread and tape. Mateo faces up to five years in federal prison when he is sentenced on May 1, 2018.
Assistant United States Attorney John File is responsible for these prosecutions. The plea hearings were held before Senior United States District Judge David A. Faber.
The Safford case was brought as part of Project Safe Neighborhoods, a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime. The Lemons and Safford cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Three arrested as more than 100 pounds of marijuana and $1 million in cash seizedRead the Press Release
The Federal Bureau of Investigation (FBI) and the United States Attorney’s Office, Northern District of Ohio, announce the arrest of Amer Jabir, 37 , with residences in Cleveland, Chicago, and Weelawken, New Jersey; Ahmad Jabir, 23, and Aymen Abdelrahim, 28, both having last known addresses in Cleveland.
On Jan. 23, 2018, at approximately 8 a.m., all three individuals were taken into custody without incident for possession with intent to distribute marijuana, and/or conspiring to distribute marijuana. Ahmad Jabir and Aymen Abdelrahhim are also charged with possession with intent to distribute oxycodone and/or conspired to distribute oxycodone. Subsequent to the arrests, more than 100 pounds of marijuana and more than $1 million in cash were seized at locations in Chicago and North Olmsted.
Amer Jabir is accused of transporting large quantities of marijuana from California to Chicago, distributing a portion of marijuana in Chicago and then transporting the remaining supply to Cleveland and Detroit, where it was distributed to Amer Jabir’s customers. Abdelrahim and Ahmad Jabir operated as dealers and delivery runners for the organization, according to court documents.
Intercepted or recorded conversations via telephone or text messaging indicate numerous pounds of marijuana and hundreds of pills being sold at a time and thousands of dollars being exchanged, according to court documents.
Amber Jabir was arrested in Chicago and will appear in U.S. District Court for the Northern District Court of Illinois today. Abdelrahim and Ahmad Jabir will appear today before U.S. Magistrate Judge David Ruiz in the Northern District of Ohio.
This case has been worked by the Cleveland Division of FBI, North Olmsted Police Department, Westlake Police Department, Ohio State Highway Patrol, U.S. Customs and Border Protection and the Westshore Enforcement Bureau.
A complaint is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Any questions regarding this news release can be directed to SA Vicki D Anderson at the Cleveland Office of the FBI, 216-522-1400 or [email protected].
Three New Jersey Men Indicted in Cocaine ConspiracyRead 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 a federal grand jury returned an indictment charging Jose Rivas, 40; Jose Luis Santiago Almonte, 37; and Ryan Espinosa Ogando, 30, all natives of the Dominican Republic living in New Jersey, with conspiracy to distribute cocaine and attempted possession of cocaine. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life and a fine of $10,000,000.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the indictment and a previously filed complaint, in July of 2017, the Drug Enforcement Administration in Gulfport, Mississippi obtained information regarding the drug trafficking activities of defendant Santiago. Specifically, agents learned that Santiago and co-conspirators were arranging to purchase 50 kilograms of cocaine. The co-conspirators agreed to provide two vehicles as down payment for the cocaine. Defendants Santiago and Rivas traveled from New York City to Gulfport in order to make the arrangements, and multiple down payments in the form of vehicles and cash were made.
In September of 2017, DEA agents received information that the defendants planned to travel to the Buffalo area in order to obtain kilograms of cocaine. A sale was arranged in Buffalo during which the defendants provided approximately $20,000 more in order to secure six kilograms of cocaine. All three defendants showed up for the exchange. During the exchange, defendant Espinosa took possession of a backpack containing sham cocaine, provided by the DEA. The defendants were arrested at that time.
The defendants were arraigned before U.S. Magistrate Judge H. Kenneth Schroeder and released on conditions.
The indictment is the is the culmination of investigation by the Buffalo Office of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division, and the DEA Gulfport, Mississippi Resident Office.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
The U.S. Attorney’s Office for the Eastern District of California Collects over $240M in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2017Read the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced today that the Eastern District of California collected $82,182,771 in criminal and civil actions in Fiscal Year 2017. Of this amount, $13,278,653 was collected in criminal actions and $68,904,118 was collected in civil actions. The Eastern District of California also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $162,370,250 in cases pursued jointly with these offices. Of this amount, $15,414 was collected in criminal actions and $162,354,835 was collected in civil actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending September 30, 2017.
U.S. Attorney Scott stated: “Every year, we recover far more money for victims and taxpayers than it costs to operate our office. These collections are critical to the Department’s mission of holding wrongdoers accountable, seeking restitution for victims, and pursuing funds that belong to American taxpayers.”
A significant portion of the monies collected were for actions involving allegations of Controlled Substance Act violations, including $150 million from McKesson Corp., $5 million from CVS Pharmacy Inc., and $11.75 million from Costco Wholesale. Other settlements were for health care fraud including a $9.86 million payment by Walgreen Co. to resolve allegations that it violated the federal False Claims Act when it knowingly submitted claims for reimbursement to California’s Medi-Cal program that were not supported by applicable diagnosis and documentation requirements. Given the nationwide opioid epidemic, our office will continue to focus on these types of investigations.
Our office will also continue to focus on procurement fraud to ensure that those awarded government contracts comply with all associated requirements for receipt and use of that money. This year Sierra Nevada Corporation, a Nevada corporation that provides services to federal agencies, paid $14.9 million to resolve allegations that it violated the federal False Claims Act when it knowingly misclassified certain costs, resulting in inflated overhead rates being paid in various defense and space contracts. Cityside Management Corporation paid $4.3 million to settle allegations that it violated the False Claims Act by improperly billing the U.S. Department of Housing and Urban Development for the work of Cityside’s subcontractors.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud, fire, or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Eastern District of California, working with partner agencies and divisions, collected $10,377,430 in asset forfeiture actions in fiscal year 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Staten Island Man Gets 30 Months in Prison for Trafficking over $2.5 Million in Counterfeit Footwear Through Port of NewarkRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man was sentenced today to 30 months in prison for attempting to distribute more than $2.5 million of counterfeit UGG-brand boots that were shipped into the Port of Newark, U.S. Attorney Craig Carpenito announced.
Shi Wei Zheng, 42, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of trafficking in counterfeit goods. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From September 2016 through February 2017, Zheng received certain shipping container numbers from an individual overseas that identified at least three containers containing counterfeit UGG boots. Cheng asked individuals working at the Port of Newark to remove the containers from the port before they could be examined by U.S. Customs and Border Protection. Once the containers were removed, Zheng directed that they be delivered to other individuals working for him, who would then distribute the boots in New Jersey and elsewhere.
However, before Zheng could distribute the goods, law enforcement intercepted the containers, examined their contents, and determined the boots were counterfeit. At no time was Zheng authorized to import authentic or counterfeit UGG merchandise.
In total, Zheng trafficked in over 15,000 pairs of counterfeit UGG boots, with a total estimated retail value of over $2.5 million. Zheng also paid individuals over $50,000 in exchange for the delivery of the containers.
In addition to the prison sentence, Judge Vazquez sentenced Zheng to two years of supervised release.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Newark Field Office, under the direction of Acting Special Agent in Charge Michael McCarthy, and U.S. Customs and Border Protection (CBP), under the direction of Acting Director of Field Operations Leon Hayward, New York Field Office, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Scott B Tulman Esq., New York
St. Croix Woman Charged with Federal Program Theft and Money LaunderingRead the Press Release
St. Croix, USVI – Kira Lee Encarnacion, 40, of St. Croix, was arraigned today in District Court on a criminal indictment charging her with federal program theft and money laundering, United States Attorney Gretchen C.F. Shappert announced.
According to the indictment, Encarnacion was employed as a bookkeeper by the Women’s Coalition of St. Croix (WCSC), a non-profit organization that provides assistance and advocacy to women, children and men who are survivors of domestic violence, sexual assault and other crimes. The indictment alleges that as part of her duties, Encarnacion issued payments to the organization’s vendors using an accounting software program. According to the indictment, Encarnacion circumvented the WCSC’s internal financial controls and fraudulently caused numerous checks to be issued to her. She then deposited the checks into an off-island bank account using a "Mobile Deposit" application.
If convicted of federal program theft, Encarnacion faces a maximum sentence of 10 years in prison and a $250,000 fine. If convicted of money laundering, she faces a maximum sentence of 20 years in prison and a $500,000 fine. This case was investigated by the Federal Bureau of Investigation (FBI). It is being prosecuted by Assistant United States Attorney Tasheika Hinson.
The public is reminded that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Springfield Woman Sentenced for Tax Fraud ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman was sentenced in federal court today for her role in a nearly $600,000 tax fraud conspiracy.
Carolyn Alice Cobb, 56, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to six years and five months in federal prison without parole. The court also ordered Cobb to pay $215,184 in restitution.
On Sept. 21, 2017, Cobb pleaded guilty to one count of conspiracy to defraud the government, two counts of presenting a false claim and one count of theft of government property.
Co-defendants Nancy Lorine Walker, 56, and Clementine Lockett, 43, both of Springfield, have also pleaded to their roles in the conspiracy and await sentencing. In addition to the conspiracy, Walker pleaded guilty to one count of presenting a false claim, one count of theft of government property and one count of aggravated identity theft. Lockett also pleaded guilty to two counts of presenting a false claim.
Cobb, Walker and Lockett participated in a conspiracy, which operated from January 2010 to April 23, 2013, to submit false federal income tax returns and make false claims for federal income tax refunds for the 2009-2012 tax years.
Conspirators used the means of identification of individuals, including their names and social security numbers, and Turbo Tax to prepare and electronically file federal income tax returns. Those returns were false and fraudulent in that they included fictitious IRS Form W-2 information, listing employers who did not employ the individual listed on the return and reporting wages not earned and employment taxes not withheld from the individual.
The conspiracy resulted in a total of $718,927 in false claims for federal income tax refunds. The court found the total intended loss amount for Cobb’s involvement in the conspiracy was $597,769. Conspirators actually received a total of $317,498 in refunds.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by IRS-Criminal Investigation.
Springfield Man Sentenced to 15 Years for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute heroin.
Corbin S. Rice, 27, of Springfield, was sentenced by U.S. District Judge Stephen R. Bough to 15 years and eight months in federal prison without parole.
On Nov. 1, 2017, Rice pleaded guilty to participating in a conspiracy to distribute a kilogram or more of heroin in Greene County, Mo., from March 1, 2016, to May 18, 2017.
Investigators conducted three controlled buys from Rice, for a total of approximately five grams of heroin. When law enforcement officers executed a search warrant at Rice’s residence, they found methamphetamine, drug paraphernalia, drug ledgers, a personal journal and a loaded shotgun. Investigators determined that Rice was purchasing two to three grams of heroin from his source, two to three times a week.
This case is being prosecuted by Special Assistant U.S. Attorney Jody M. Larison. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, IRS-Criminal Investigation, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department and the Missouri State Highway Patrol
Shreveport felon pleads guilty to possessing pistolRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced today that a Shreveport felon pleaded guilty to possessing a pistol even though he was a convicted felon.
Jamario Montreal Harris, 31, of Shreveport, pleaded guilty before U.S. Magistrate Judge Mark L. Hornsby to one count of possession of a firearm by a convicted felon. The plea will become final after it is accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, law enforcement agents found Harris in possession of a .40 caliber Glock pistol on March 20, 2017. He was previously convicted of a felony and not allowed to possess a firearm.
Harris faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of April 2, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Session announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
Seventeen firearms and more than a half-million dollars seized as 13 people indicted for trafficking hundreds of pounds of cocaineRead the Press Release
Thirteen people, most from Stark County, were charged in an 80-count federal indictment for bringing hundreds of pounds of cocaine into Northern Ohio and selling it in Massillon, Canton and throughout the region, as well as additional firearms and drug charges, law enforcement officials said.
Law enforcement agents seized 17 firearms, nearly 1,500 rounds of ammunition, approximately $592,579 in cash, more than 13 kilograms of cocaine, more than 22 kilograms of marijuana as well as heroin and crystal methamphetamine as part of the investigation.
Named in the indictment are: Apolinar Meraz-Magana, 55, of Massillon; Ignacio Cuevas-Gutierrez, 33, of Massillon; Jose Luis Martinez-Maldonado, 26, of Canton; Manuel Sarmiento Ibarra, 40, of Canton; Jonathan Quezada, 22, of Sterling; Juan Ramon Mora-Hurtado, 29, of Massillon; Karla Hernandez-Salazar, 30, of Massillon; Juan Benito Caro-Silva, 23, of Massillon; Phillip Blough, 28, of Smithville; Stamontae Sanders, 25, of Canton; Mark Momie, 51, of Canton; Celestino Penalosa, 30, of Orrville, and Dave McClellan. 43, of Massillon.
Salazar, Silva, Sanders, Maldonado, Quezada, Penalosa, Momie, McClellan and Blough conspired to possesses approximately 550 pounds of cocaine from October through November 2017. Salazar and Silva obtained the cocaine and distributed it to Sanders, Maldonado, Quezada, Penalosa, Momie, McClellan and Blough, who in turn sold the cocaine to customers throughout Ohio, according to the indictment.
Blough was charged with possession of a firearm in furtherance of drug trafficking. Salazar, Silva and Quezada were also charged with being aliens in possession of firearms and/or ammunition.
Magana, Gutierrez, Maldonado, Quezada, Hurtado and Ibarra conspired to possess more than 110 pounds of cocaine from April through September 2017. Magana and Gutierrez obtained the cocaine from suppliers and in turn distributed it to Maldonado, Ibarra, Quezada and Hurtado, who sold it to various customers throughout Ohio, according to the indictment.
Magana was also charged with being an alien in possession of firearms and ammunition, possession of a firearm in furtherance of drug trafficking, possession with intent to distribute methamphetamine, possession with intent to distribute marijuana, possession with intent to distribute heroin, and other violations.
“One only needs to look at the firearms, cash and amount of drugs associated with this crew to understand the threat they pose to our community,” said U.S. Attorney Justin E. Herdman. “Getting these defendants off the streets will save lives.”
FBI Special Agent in Charge Stephen D. Anthony said: “This group of individuals brought poison and danger to our neighborhoods. This is yet another example of law enforcement’s collaborative efforts to disrupt and rid violent drug dealing groups from our streets.”
“These arrests are the next phase of a complex investigation that spans multiple agencies and jurisdictions,” stated Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “The ultimate goal is to make Canton and the surrounding communities safer for everyone, and ATF will continue to work with our partners to that end.”
“The indictment of thirteen people is significant and an indication that cocaine is still a threat to Northern Ohio,” said DEA Special Agent in Charge Timothy Plancon. “Dismantling the activities of a large-scale, gun toting, cocaine organization is a victory for the community and was achieved by significant cooperative efforts of numerous local, state, and federal law enforcement agencies.”
Medway Director Don Hall said: “This was just another outstanding example of law enforcement agencies at all levels collaborating and being able to dismantle a significant drug trafficking organization that had a very strong influence in not only Stark and Wayne Counties but in Northeast Ohio. In one house alone in Wayne County when you seize eight pounds of crystal meth, 22 pounds of cocaine, $100,000 cash and weapons, that puts a dent in what gets distributed down the line to our local cities and villages in Wayne County.”
“It is critical for law enforcement to maintain the local/federal partnership that continues to be very effective in the arrest and prosecution of those that cause so much destruction to our community,” Canton Police Chief Bruce Lawver said.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the
characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the FBI, ATF, DEA, Medway Drug Task Force, Canton Police Department, Jackson Township Police Department, Louisville Police Department and Homeland Security Investigations. The matter is being prosecuted by Assistant U.S. Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sacramento Man Sentenced to Life in Prison for Buying Children and Other Child Exploitation CrimesRead the Press Release
SACRAMENTO, Calif. — Michael Carey Clemans, 57, of Sacramento, was sentenced today to life in prison for buying children, attempted travel and travel with intent to engage in illicit sexual conduct, conspiracy to travel with intent to engage in illicit sexual conduct, conspiracy to produce child pornography, attempted production and production of child pornography, and receipt of child pornography.
This case is the latest in a multi-year trend of child exploitation prosecutions focusing on defendants with prior sex offenses and those who abuse and record the sexual abuse of children. U.S. Attorney McGregor W. Scott, Federal Bureau of Investigation Special Agent in Charge Sean Ragan, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin, Sacramento County Sheriff Scott Jones, Sacramento District Attorney Anne Marie Schubert, and Fresno County Sheriff Margaret Mims joined forces today to highlight their sustained and collaborative efforts to identify and vigorously prosecute those who exploit and abuse children and trade in images depicting the sexual abuse of children.
U.S. Attorney Scott stated, “In the last four years, over 40 federal defendants prosecuted by this office have received sentences ranging from 15 years up to life in prison for crimes against children. Many of those defendants were repeat offenders or, like Clemans, were responsible for the recorded sexual abuse of their victims. Advances in technology have escalated both the heinous nature and pervasiveness of these violent crimes that affect the most vulnerable members of our communities. The U.S. Attorney’s Office is committed to continuing its collaboration with our state, local and federal partners to locate these offenders and ensure that they are prosecuted to the fullest extent of the law.”
“Child pornography is the product of horrifically violent acts perpetrated against children who are powerless to escape their attackers. The victims not only bear the physical and emotional scars of the crime throughout their lifetimes; evidence of the criminal acts that harmed them are shared again and again by consumers of illicit content. All children deserve to be safe from harm,” said Special Agent in Charge Sean Ragan of the Federal Bureau of Investigation’s Sacramento field office. “The FBI is committed to working with our local, state, federal, and international partners to identify and investigate those who both produce and consume content that depicts the violent abuse of vulnerable children to ensure they face justice for their crimes.”
U.S. District Judge John A. Mendez sentenced Clemans today after a federal jury found Clemans guilty on September 5, 2017, of buying children, attempted travel and travel with intent to engage in illicit sexual conduct, and conspiracy to travel with intent to engage in illicit sexual conduct. On the first day of trial, Clemans pleaded guilty to three additional counts: conspiracy to produce child pornography, attempted production and production of child pornography, and receipt of child pornography.
According to court documents, beginning in June 2014, Clemans conspired with a woman in the Philippines to produce child pornography. During much of the conspiracy, Clemans was temporarily residing in Bangkok, Thailand, where he worked as an airline pilot. In April 2015, Clemans returned to his Sacramento residence and continued his overseas conspiracy using his online account to chat with the Filipino woman. In these chats, Clemans discussed various strategies to obtain minor girls whom he could rape. Clemans instructed the Filipino woman on how to find vulnerable victims, directing her to look for orphans and victims of typhoons. Clemans paid nearly $6,000 to the woman so she could buy photographic equipment and find discreet locations to conduct sexually explicit photo shoots of the victims, who were as young as seven years old. On multiple occasions, Clemans paid a co-conspirator to obtain temporary custody of the children in the Philippines and produce child pornography for him.
According to evidence introduced at trial, Clemans engaged in another scheme with separate individuals in November 2013, in which he traveled from the United States to Manila for the purpose of engaging in illicit sexual conduct with minors after requesting and receiving pornographic images of minors whom he expected to rape.
This case was the product of an investigation by the Federal Bureau of Investigation and the Philippine National Bureau of Investigation. Assistant U.S. Attorneys André M. Espinosa and Colleen M. Kennedy prosecuted the case.
The following are summaries of Project Safe Childhood cases from January 2014 to present in which sentences of 25 or more years were imposed.
On October 13, 2015, Shawn Joseph McCormack, 34, of Colorado Springs, Colorado, was sentenced to life in prison for kidnapping and producing child pornography involving two toddlers. McCormack traveled to a couple’s residence in Bakersfield and stayed as an overnight guest on multiple occasions. During several of the overnight stays, in the middle of the night, McCormack snuck the couple’s toddlers out of the house and recorded his sexual abuse of them. 1:11-cr-324 AWI
On March 23, 2017, Jesse Davenport, 42, of Chico, was sentenced to 50 years in prison for conspiring with a Connecticut woman to produce a video of a child being sexually abused. The woman made a video with a child she was babysitting following Davenport’s instructions and sent it to him two times. Davenport then distributed the video to another person. Davenport had prior convictions for sex offenses against minors. 2:13-cr-399 MCE
On April 30, 2014, Neng Yang, 49, of Clovis, was sentenced to 38 years in prison for producing child pornography. While working as a teacher, Yang used an iPhone and a computer to record and store videos depicting his sexual abuse of a 12-year-old girl under his supervisory control.
1:12-cr-037 AWIOn August 25, 2014, Christopher David Robinette, 48, a U.S. citizen living in the Netherlands, was sentenced to 35 years in prison for traveling to Fresno to sexually exploit a minor. He abused the minor in California, Nevada, Mexico and Costa Rica and produced digital still and video images of the abuse. 1:13-cr-003 AWI
On January 18, 2018, Jeffrey Miles Hayes, 55, of Sacramento, was sentenced to 33 years and four months in prison for receiving over 2,000 images of children engaged in sexually explicit acts, including images showing sadistic abuse and the sexual abuse of an infant. He also possessed links to cloud storage accounts containing child pornography. At the time of the offense, Hayes had a prior conviction related to child pornography and was a registered sex offender. 2:16-cr-190 TLN
On April 12, 2016, Shane Paul Young, 47, of Fresno, was sentenced to 30 years in prison for sending and receiving hundreds of videos and images of child pornography with users across Europe and North America. The voluminous amount of child pornography included graphic images of infants and toddlers being sexually abused. Both the nature of Young’s offense and his significant prior criminal history factored into his sentence. 1:13-cr-126 DAD
On July 29, 2016, Jason Wymer, 46, of Citrus Heights, was sentenced to 30 years in prison for sexual exploitation of children. A parent accidentally sent a picture of her child to a wrong number who turned out to be Wymer. When Wymer responded requesting more pictures, the parent brought the cellphone to the FBI. An undercover employee, pretending to be a child, continued the dialog until they were able to locate and arrest him. Photos of Wymer molesting a three-year-old were found on his phone, and Wymer also admitted to molesting a four-year-old child. 2:13-cr-086 GEB
On January 19, 2017, Bret Allan Nichols, 33, of Paradise, was sentenced to 30 years in prison for paying a Florida couple to produce and record child pornography. A forensic search of Nichols’s computer seized during the subsequent search of his residence found multiple videos that Nichols had recorded of five additional child victims in Colombia and the Philippines.
2:13-cr-400 MCEOn December 3, 2014, Jeffrey Randall Metcalfe, 50, of Turlock, was sentenced to 30 years in prison for receiving and distributing child pornography. He created at least 17 accounts on a photo-sharing website, posted numerous images to the site and made comments about his interest in child pornography. Metcalfe possessed thousands of printed and digital images of child pornography. This was his second child pornography conviction in federal court in Fresno.
1:14-cr-012 LJOOn August 18, 2014, Allen Kendrick, 51, of Escalon, was sentenced to 30 years in prison for receiving and distributing child pornography. Kendrick was previously convicted of lewd and lascivious acts with a child under the age of 14, and he had a prior 2010 offense for possession of child pornography. 1:14-cr-055 LJO
On September 14, 2017, Raul Gonzalez, 44, of Woodland, was sentenced to 30 years in prison for causing a minor to engage in sexually explicit conduct, which he recorded with his cellphone camera. Gonzalez also sexually abused another minor who was less than 14 years old.
2:13-cr-377 MCEOn July 10, 2014, Phillip J. Colwell, 58, of Sacramento, was sentenced to 30 years in prison for engaging in a series of cellphone text conversations with a 14-year-old boy and sending him sexually explicit images. Colwell encouraged him to produce sexually explicit images of himself to send to Colwell. Colwell also molested a 16-year-old boy and took explicit photos of him that he then uploaded to a website in order to advertise him for sex trafficking. 2:12-cr-73-GEB
On December 8, 2014, Bradley Allen Vaine, 31, of Fresno, was sentenced to 25 years in prison for receiving and distributing more than 600 images of child pornography, some of which depicted prepubescent minors, and some were of violent or sadistic conduct. 1:12-cr-403 LJO
On March 24, 2014, Frank Charles Reddell, 43, of Madera, was sentenced to 25 years in prison for receiving child pornography. Reddell had a prior conviction for lewd and lascivious conduct with a minor, and he was on parole when an officer found him viewing child pornography in a parking lot. 1:13-cr-090 LJO
On September 9, 2016, Joshua Landon Klipp, 36, of Chico, was sentenced to 25 years in prison for persuading a minor to engage in sexually explicit conduct while he recorded and transmitted live visual depictions of it. Klipp received images from the minor, as well as other images through the internet. 2:14-cr-107 GEB
On July 20, 2015, Ricky Davis, 38, of Modesto, was sentenced to 25 years in prison for production of child pornography and attempted sex trafficking of a minor. He took sexually explicit photographs of a 13-year-old girl and posted them online within an advertisement for prostitution. 1:12-cr-056 AWI
These cases were 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rochester Man Sentenced on Bank Robbery ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Claude Taylor, 38, of Rochester, NY, who was convicted of robbing the Lexington Federal Credit Union, at 1275 Lexington Avenue in Rochester, was sentenced to 40 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Charles E. Moynihan, who handled the prosecution of the case, stated that on May 5, 2016, Taylor entered the Lexington Federal Credit Union, waited in line and then passed a hand written note to a bank teller. The note, which was written on an envelope, demanded that the teller turn over $5,000. The defendant yelled, ordering the teller to “do it fast.” Taylor also ordered a neighboring teller not to interfere. The bank teller turned over money, and Taylor ran from the bank. Subsequent investigation identified the defendant, and on May 22, 2017, Taylor was arrested by law enforcement officers.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the United States Marshal’s Service, under the direction of Marshal Charles Salina; and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Red Bluff Woman Is Sentenced to over 2 Years in Prison for Bank Fraud, Identity Theft and Possession of Stolen MailRead the Press Release
SACRAMENTO, Calif. — Crystal Candiece Cooper, 35, was sentenced Tuesday to two years and five months for a bank fraud scheme, aggravated identity theft, and possession of stolen U.S. Mail, U.S. Attorney McGregor W. Scott announced.
According to court documents, between December 19, 2015 and March 27, 2017, Cooper obtained financial and identity information, checks, credit cards and bank cards from stolen U.S. mail and used them to get cash, goods, and services. Cooper targeted postal customers in Red Bluff.
One victim of Coopers identity theft scheme had applied for Social Security benefits and expected to receive a debit card in the mail to access the money. Instead, Cooper obtained mail stolen from the victim and found the victim’s debit card and other identifying information. Cooper was able to activate the card and set a PIN to give her access to the funds. She made four separate cash withdrawals using the debit card.
When Cooper was arrested by federal agents on March 27, 2017, she had in her possession stolen mail and identity information such as Social Security numbers, dates of birth, and driver’s license numbers for residents of Tehama and Shasta Counties.
This case was the product of an investigation by the United States Postal Inspection Service with assistance from the Tehama County Sheriff’s Department and Red Bluff Police Department. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.
RI DOT Addressing ADA Compliance at South County Train StationsRead the Press Release
PROVIDENCE, RI – The Rhode Island Department of Transportation (RIDOT) has undertaken steps voluntarily to address accessibility issues at state owned train stations in Kingston and Westerly to bring them into compliance with the Americans with Disabilities Act (ADA). Updates have been completed at the Kingston train station. Additional updates are required at the Westerly station, which are expected to be made by Amtrak.
In December 2016, at the request of the Department of Justice’s Civil Rights Division, the United States Attorney’s Office in Rhode Island opened an investigation of the Kingston and Westerly train stations to ensure that they are accessible, as required by the ADA.
The investigation by the United States Attorney’s Office determined that the Kingston station’s platform, recently renovated, is ADA compliant. However, the investigation determined that the train station was not ADA compliant, including violations at ticket counters and bathrooms. Updates have been completed by RIDOT and the train station is now ADA compliant.
An inspection of the Westerly train station by the United States Attorney’s Office determined that chairlifts for each tunnel used to obtain platform access were inoperable and one of the parking lots had no accessible parking. RIDOT has completed updates to the parking lot, which has been deemed ADA compliant. Amtrak is expected to make updates to make platform access from the tunnels ADA compliant.
Across the country, the Civil Rights Division sought assistance to ensure that intercity rail stations owned by state or local governmental entities are accessible, as required by the ADA. The request followed the Civil Rights Division’s conclusion that Amtrak is in violation of the ADA and issued a Letter of Findings to Amtrak.
The matter was handled in Rhode Island by Assistant U.S. Attorney Amy R. Romero and investigator David Neill in conjunction with the Department of Justice’s Civil Rights Division.
The U.S. Attorney’s Office for the District of Rhode Island is committed to investigating alleged violations of the Americans with Disabilities Act. Those interested in learning more about architectural barriers to access under the Americans with Disabilities Act may access www.ada.gov, visit the web site of the United States Attorney’s Office for the District of Rhode Island at www.justice.gov/usao-ri/civil-rights-enforcement, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TTY). Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm.
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Penn Yan Man Sentenced on Gun and Witness Tampering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that James E. Sandford, III, 29, of Penn Yan, NY, who was convicted of possessing a stolen firearm, being a felon in possession of a firearm, and witness tampering, was sentenced to 156 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Brett Harvey, who handled the trial, stated that the defendant was initially arraigned on a criminal complaint in the Western District of New York on June 4, 2015. Subsequent to his arrest on the federal charges, Sandford attempted to intimidate and threaten a suspected witness against him by shouting to that individual: “I’m not going to be in jail long. I will see you on the outside you snitch.” The defendant made the statement with the intent to influence, delay or prevent the testimony of that suspected witness in the prosecution of defendant.
Eventually, Sandford was charged in a superseding indictment which alleged that he distributed synthetic cannabinoids (designer drugs) between July 2014 and March 24, 2015, in the Penn Yan area. He was further charged with distributing such substances— and controlled substance analogues, which are designed to mimic the effects of controlled substances—both to individuals under the age of 21 and within 1000 feet of St. Michael’s School, a private elementary school in Penn Yan. In addition, the superseding indictment alleged that on February 22, 2015, the defendant traded synthetic cannabinoids to a minor in exchange for a stolen Savage .410 double barrel shotgun. At the time, the defendant had two prior felony convictions preventing him from legally possessing a gun. Finally, the superseding indictment also charged him with witness tampering related to his statements to the suspected witness.
With the defendant contending that he did not know the substances he was distributing were illegal, the jury failed to reach a verdict on the drug charges against him. The jury did, however, convict him of the two firearms charges and the witness tampering charge against him.
Sandford is still facing re-trial on 11 drug charges. 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.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Office; the Penn Yan Police Department, under the direction of Chief Mark Hulse; the Yates County Sheriff’s Department, under the direction of Ronald Spike; and the Yates County District Attorney’s Office, under the direction of Todd Casella.
Painting Contractor Pleads Guilty in Connection with George Wade Bridge ProjectRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the painting contractor on the George Wade Bridge Project, Andrew Manganas, age 60, of Canonsburg, Pennsylvania and Panthera Painting, Inc., headquartered in Canonsburg, pled guilty on January 22, 2018, to theft from union plans, wire fraud, and discharge of pollutants into the Susquehanna River.
According to United States Attorney David J. Freed, Manganas and his company, Panthera Painting, Inc. were charged in a 46-count indictment for crimes related to Panthera’s role as a subcontractor on the multi-year George Wade Bridge restoration project. In September 2009, PennDOT awarded a contract for rehabilitation work on the George Wade Bridge to J.D. Eckman as the prime contractor. The George Wade Bridge spans the Susquehanna River on Interstate 81 in Cumberland and Dauphin Counties, Pennsylvania. The Wade Bridge Project was a federal oversight project, meaning that the Federal Highway Administration of the U.S. Department of Transportation conducted reviews and approvals during the project’s design and construction phases. The contract amount was $42,480,434.05 with the FHWA’s federal-aid programs reimbursing 90 percent of that cost. The Wade Bridge Project was scheduled to be completed on May 25, 2012, but was extended to September 27, 2013. In October 2009, Panthera was awarded a $9,875,000 subcontract by Eckman; that contract amount was increased to more than $10 million. The subcontract awarded to Panthera covered the blasting, resurfacing, and painting of the structural steel on the George Wade Bridge.
The federal oversight and funding of the contract required each contractor and subcontractor to submit Certified Payroll Reports for every worker and every pay period to certify that the appropriate prevailing wage was being paid to each worker. Manganas and Panthera pleaded guilty to submitting false payroll reports that did not accurately reflect the amount workers were being paid. Manganas paid only partial wages in a wage check that did not include overtime pay. He then paid overtime in a separate “per diem” check that did not properly deduct taxes and remittances, some of which were owed to the unions of which the workers were members. By under-reporting wages paid, Manganas defrauded the federal agencies paying for the bridge work. By failing to properly remit wages to the unions, Manganas effectively stole money from the workers and the union. Moreover, Manganas and Panthera pled guilty to knowingly discharging pollutants into the Susquehanna River over the course of three painting seasons of the Project. The contract and environmental laws prohibit the discharge of pollutants without a permit. Panthera and Manganas were supposed to utilize various methods to ensure that pollutants did not enter the Susquehanna River, including construction of “containment” to cover bridge areas being blasted clean and repainted. Containment involved using ropes, cables, fabric, metal pans and waste collection and recycling systems on segments of the bridge being blasted and repainted to prevent pollutants from being discharged into the River. Manganas knew he did not have a permit to discharge pollutants into the River, but Panthera workers, at Manganas’ direction and with his knowledge, utilized a variety of methods and equipment to discharge pollutants, including abrasive paint blasting materials, waste paint, and metal, into the Susquehanna River rather than collect them for recycling or disposal as hazardous waste.
The case was investigated by the U.S. Department of Labor, Office of Inspector General, the U.S. Department of Transportation, Office of Inspector General, the U.S. Environmental Protection Agency, Criminal Investigation Division, and the Federal Bureau of Investigation. Assistant U.S. Attorney James T. Clancy and Special Assistant U.S. Attorney Martin Harrell of EPA are prosecuting the case.
The embezzlement offense carries a maximum penalty of up to five years in prison and a $250,000 fine for an individual and a fine of $500,000 for a company; the wire fraud charge carries a maximum penalty of up to 20 years in prison and a $250,000 fine for an individual and a $500,000 fine for a company; and each of the Clean Water Act charges carries a maximum penalty of up to 3 years in prison, and a fine of up to the greater of $250,000 or $50,000 per day of violation, a term of supervised release following imprisonment, and a fine for an individual and a fine of up to the greater of $500,000 or $50,000 per day of violation for a company. 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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Oklahoma Woman Sentenced in Connection to A Fraud SchemeRead 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 Ann Nichols, 61, of Edmond, OK, who was convicted of conspiracy to commit wire fraud, was sentenced to two years probation to include eight months home detention by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $147,004 in restitution.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that Nichols and co-defendant Donnie Helig utilized a business entity known as CED Computer Services (CED) fraudulently to obtain loans for clients in the form of equipment “leases.” Another co-defendant, Wilfredo Sanio, operated a business in Georgia known as SCF Funding, which acted as a broker and brought clients to CED Computer Services.
Nichols and Helig falsely advised lease finance companies that CED was selling new equipment to clients and prepared fraudulent invoices for new equipment when, in fact, no equipment or inferior equipment was actually being provided. Upon receipt of the funding from the finance companies, defendant Nichols gave a commission to Heilig, herself, and Sanio, from the lease proceeds and sent the majority of the remaining proceeds to the client.
All three defendant have been convicted and sentenced.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Ohio Man Sentenced for Providing Material Support to Terrorists, Making False Statements to AuthoritiesRead the Press Release
Abdirahman Sheik Mohamud, 26, of Columbus, Ohio, was sentenced on Jan. 22, to 22 years in prison to be followed by 10 years of supervised release, for training with terrorists overseas and leading a terrorist plot.
Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division, Franklin County Prosecutor Ron O’Brien and the FBI’s Columbus Joint Terrorism Task Force (JTTF) announced the sentence imposed by U.S. District Judge Michael H Watson.
“Mohamud traveled to Syria to train and fight with the designated terrorist organization al-Nusrah Front. He then returned to the United States with the intent to conduct an attack here,” said Acting Assistant Attorney General Boente. “Thanks to the tremendous efforts of law enforcement, Mohamud was arrested and his plans were thwarted. One of the National Security Division’s highest priorities remains identifying and neutralizing the threat posed by foreign terrorist fighters who return to the United States.”
“Mohamud engaged in terrorist activity overseas, which included training and fighting with the Al-Nusrah Front, a designated foreign terrorist organization,” said U.S. Attorney Glassman. “He then returned to the United States with a plan to do grievous harm, recruited others to help him in his homeland plot, and then planned and prepared for attacks in the United States. Once caught, he orchestrated a cover-up beginning with his material misstatements to the FBI. The seriousness of his actions cannot be overstated and today’s sentence illustrates that.”
“Mohamud was originally arrested and indicted in state court by my office and a $2 million bond was set that maintained him in custody. Those state charges were dismissed when the federal prosecution commenced and Assistant Prosecutor Joseph Gibson was added to the federal team as a Special Assistant U.S. Attorney,” said Franklin County Prosecutor O’Brien. “This case illustrates the effectiveness of the cooperative effort in the Columbus area to combat terrorism.”
A federal grand jury charged Mohamud in April 2015 with one count of attempting to provide and providing material support to terrorists, one count of attempting to provide and providing material support to a designated foreign terrorist organization – namely, al-Nusrah Front – and one count of making false statements to the FBI involving international terrorism. Mohamud pleaded guilty to those charges in August 2015. The plea was sealed until June 2017 because of an ongoing investigation.
According to court documents, Mohamud is a Somali-born naturalized U.S. citizen, who, in 2014, obtained a U.S. passport and one-way ticket to Greece. During his travel in April 2014, Mohamud did not board his connecting flight to Athens, Greece. Rather, during his layover in Istanbul, Turkey, he completed pre-arranged plans to cross the border into Syria. In Syria, Mohamud received training from al-Nusrah Front, a terrorist organization affiliated with al-Qaeda.
According to a statement of facts supporting Mohamud’s guilty plea, while in Syria, Mohamud trained with al-Nusrah Front on fitness, and on the use of weapons and tactics. Mohamud also engaged in a firefight and expressed his desire to die fighting in Syria.
Mohamud returned to the United States after his brother was killed fighting for al-Nusrah Front.
The statement of facts details that after returning to the United States, Mohamud planned to obtain weapons in order to kill military officers, other government employees or people in uniform. Evidence seized by the FBI indicates that Mohamud researched places in the U.S. to carry out such plans.
Mr. Boente and Mr. Glassman commended the cooperative investigation of the FBI’s JTTF and numerous local partners. Assistant U.S. Attorneys Douglas Squires, Jessica H. Kim and Salvador Dominguez, and Special Assistant U.S. Attorney Joseph Gibson of the Southern District of Ohio; and Trial Attorneys Bridget Behling and Lolita Lukose of the National Security Division’s Counterterrorism Section are prosecuting the case.
Northern District of Iowa U.S. Attorney’s Office Collected over $5,000,000 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2017Read the Press Release
U.S. Attorney Peter E. Deegan, Jr. announced today that the Northern District of Iowa collected $5,488,359.87 in criminal and civil actions in Fiscal Year 2017. Of this amount, $1,906,625.31 was collected in criminal actions and $3,581,734.56 was collected in civil actions.
Additionally, the Northern District of Iowa worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,910,786.48 in civil cases pursued jointly with these offices.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
“We take seriously our duty to collect money owed to taxpayers and crime victims,” Deegan said. “Our total collections over the past fiscal year, once again, exceeded the total amount of our direct budget. Our entire office is committed to holding wrongdoers financially responsible for their actions and sending the message that crime doesn’t pay.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office for the Northern District of Iowa, working with partner agencies and divisions, collected $1,643,754 in asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Northern District of Georgia U.S. Attorney’s Office collects $135,962,250.57 in civil and criminal actions for U.S. taxpayers in fiscal year 2017Read the Press Release
ATLANTA – U.S. Attorney Byung J. “BJay” Pak announced that the Northern District of Georgia collected $135,962,250.57 in criminal and civil actions in Fiscal Year 2017. Of this amount, $11,426,485.99 was collected in criminal actions and $124,535,764.58 was collected in civil actions.
Additionally, the Northern District of Georgia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $196,384,969.10 in cases pursued jointly with these offices. Of this amount, $16,593.18 was collected in criminal actions and $196,368,375.92 was collected in civil actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
“Each day we strive, along with our law enforcement partners, to hold wrongdoers financially responsible for their actions in order to make victims whole, and to safeguard taxpayer dollars,” said U.S. Attorney Byung J. “BJay” Pak.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
For example, this past year, Northern District of Georgia resolved civil mortgage fraud claims against Prospect Mortgage Company for $4.157 million stemming from Prospect’s failure to adhere to underwriting and quality control requirements on FHA loans. It resolved a False Claims Act qui tam case against Compassionate Care Hospice for $2.4 million involving alleged kickbacks to its medical director and associate medical directors to induce referrals for hospice services. And, the office received $5.3 million to resolve allegations against Genesis Healthcare, Inc. for the knowing submission of false claims to Medicare for unnecessary or unskilled outpatient therapy services.
Additionally, the U.S. Attorney’s office in the Northern District of Georgia working with partner agencies and divisions, deposited $154,081,713 obtained as a result of asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Northern District of Oklahoma U.S. Attorney’s Office Collects $2,034,996.36 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2017Read the Press Release
U.S. Attorney R. Trent Shores announced today that the United States Attorney’s Office for the Northern District of Oklahoma (NDOK-USAO) collected $2,034,996.36 in civil and criminal actions in Fiscal Year 2017. Of this amount, $1,028,157.69 was collected in criminal actions, and $1,006,838.67 was collected in civil actions.
Additionally, the NDOK-USAO worked with other U.S. Attorney’s Offices and components of the Department of Justice (DOJ) to collect an additional $2,117,948.39 in cases pursued jointly with these offices. Of this amount, $8,623.83 was collected in criminal actions, and $2,109,324.56 was collected in civil actions.
In Fiscal Year 2017, the DOJ collected a total of over $15 billion in civil and criminal actions.
U.S. Attorney Shores stated, “I am pleased to announce my office recovered more than $2,000,000 in criminal and civil actions in FY2017. The dedicated attorneys and staff in the Financial Litigation Unit and Asset Recovery Division should be commended for their efforts. This money can positively impact victims of crime and the DOJ’s Crime Victims’ Fund.”
The NDOK-USAO Financial Litigation Unit (FLU) has a number of tools to collect criminal debts and to ensure that restitution is made to victims. The Treasury Offset Program intercepts tax refunds, and monthly asset hearings are set to identify debtors’ assets. FLU agents also enforce liens and investigate other possible sources of payment for each debtor.
The U.S. Attorneys’ Offices, along with the DOJ’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to victims of federal crimes. Defendants are required by law to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the DOJ’s Crime Victims’ Fund, which distributes the funds to state victim compensation and assistance programs.
The NDOK-USAO’s largest civil collections were from affirmative civil enforcement cases, in which the United States recovered federal funds lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. Civil debts were also collected on behalf of several other federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration and the U.S. Department of Education.
Additionally, the U.S. Attorney’s office in the Northern District of Oklahoma, working with partner agencies and divisions, forfeited $2,332,168 in asset recovery actions in FY 2017. Additionally, criminal forfeiture money judgments were entered totaling $14,484,703 representing proceeds from defendants’ offenses of conviction. During this fiscal year, forfeited assets deposited into the Department of Justice Assets Forfeiture Fund were used to restore $258,408 to crime victims and $141,882 was used for a variety of law enforcement purposes.
Munster Doctor IndictedRead the Press Release
HAMMOND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced a 4-count indictment against Jay Kaushik Joshi, age 33, of Burr Ridge, Illinois for dispensing controlled substances containing hydrocodone outside the scope of professional practice and not for legitimate medical purposes.
According to documents in this case, Joshi practiced medicine at Prestige Clinics in Munster, Indiana. Joshi is a medical doctor licensed to practice medicine in the State of Indiana and until November 21, 2017 was registered by the Drug Enforcement Administration to Prescribe Schedule II, III, IV and V controlled substances. Between September of 2017 and December 2017, the DEA and Munster Police Department obtained information on Joshi’s history of prescribing controlled substances. Indiana’s prescription monitoring program, INSPECT, was designed to serve as a tool to address the problem of prescription drug abuse and diversion of controlled substances. Investigators obtained data from INSPECT and it is alleged that since April 2017, Joshi issued over 6000 prescriptions for controlled substances. It is also alleged that Joshi ranked first in Lake County and ninth in the State of Indiana in the number of prescriptions written for controlled substances by DEA registered providers. During the time-period alleged in the indictment, Joshi dispensed controlled substances that were not prescribed for a legitimate medical purpose and outside the scope of professional practice.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Drug Enforcement Administration and the Munster, Indiana Police Department. The case is being handled by Assistant U.S. Attorney Thomas Mahoney.
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Mountain Brook Man Pleads Guilty to Cyberstalking Former Girlfriend and Associate of HersRead the Press Release
BIRMINGHAM – A Mountain Brook man pleaded guilty Monday in federal court to cyberstalking, including threatening to kill, a former girlfriend and a second woman associated with the woman he had dated, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
STEPHEN PARKS LEWIS, 32, entered his guilty plea before U.S. District Judge Karon O. Bowdre to two counts of cyberstalking. His sentencing is scheduled May 30.
“Using Facebook, email and phone messages in a campaign to terrorize and control someone is a fiendish crime that must be punished,” Town said. “Thanks to the dedicated work of the FBI, this defendant is having to answer for the fear and emotional distress he inflicted on these women and their families.”
According to Lewis’ plea agreement with the government, he used text messages, emails and voicemails to threaten, harass and intimidate a woman who had ended their five-year dating relationship. His harassment and threats, which included references to the mass shooting in Las Vegas that killed 58 people and wounded more than 500, went on for at least 10 months in 2017 and he threatened his harassment would “continue forever.”
The second woman Lewis threatened and harassed was the girlfriend of his first victim’s brother, according to Lewis’ plea agreement. He used Facebook and text messages to threaten and intimidate his second victim, including threats to stalk and kill her and her minor daughter.
Among Lewis’ often profane Facebook messages to his second victim, he demanded to know where he could find his former girlfriend. “I have your phone number. I have your address. I know where [Victim-1’s brother] lives. I know where you live,” he wrote, according to his plea agreement. “You tell me where she is. You tell me whats (sic) going on. Or I’m coming with a desert eagle .45,” he wrote. Following that message, Lewis sent a photo of a Desert Eagle pistol to Victim 2.
The maximum penalty for cyberstalking is five years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Mohammad Khatib is prosecuting.
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Monterey Park Man Sentenced to Federal Prison after Admitting He Smuggled nearly 2 Dozen Live King Cobras into United StatesRead the Press Release
LOS ANGELES – A Monterey Park man has been sentenced to five months in federal prison after pleading guilty to a smuggling charge stemming from the seizure of three king cobras hidden in potato chip canisters.
Rodrigo Franco, 35, was sentenced Monday morning by United States District Judge George H. Wu. In addition to the prison term, Judge Wu ordered Franco to pay a $4,500 fine and to serve two years of supervised release after he is released from prison.
Franco was sentenced after pleading guilty in September to one count of wildlife smuggling. In a plea agreement filed in United States District Court, Franco admitted that he was responsible for three illegal shipments of king cobras that contained approximately 23 snakes.
In a sentencing memorandum filed earlier this month, prosecutors pointed out two key issues with the illegal smuggling: “King Cobras are venomous snakes that are: (1) legally protected because they are a vulnerable species at risk for extinction; and (2) deadly because they possess lethal venom that can kill an adult within 30 minutes if the person is bitten and anti-venom is not available (and, at the time of the offense, there was no known King Cobra anti-venom in Los Angeles).”
According to court documents, United States Customs and Border Protection in March 2017 intercepted a package sent from Hong Kong and discovered three live king cobra snakes, each of which was approximately two-feet long. In addition to the three snakes, the parcel contained three albino Chinese soft-shelled turtles.
On the same date, March 2, Franco mailed six protected turtles from the United States to Hong Kong, but that shipment also was intercepted by the United States Fish and Wildlife Service.
Because of the danger associated with the cobras, the snakes were seized from the package that had come from Hong Kong. The United States Postal Inspection Service made a controlled delivery of the soft-shelled turtles to Franco’s residence. During a subsequent interview with authorities, Franco admitted that he had previously received 20 king cobras in two prior shipments – but he said all of those snakes had died in transit.
The investigation in this case was conducted by the United States Fish and Wildlife Service (USFWS), Office of Law Enforcement; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the United States Postal Inspection Service.
The case against Franco was prosecuted by Assistant United States Attorney Erik M. Silber of the Environmental and Community Safety Crimes Section.
Monrovia Man Found Guilty in ‘Hawala’ Scheme to Move Money for International Drug Trafficking Organizations, Included Drug CartelsRead the Press Release
LOS ANGELES – A federal jury has convicted a Monrovia man for his role in an international money laundering organization that conspired to move millions of dollars in proceeds for narcotics traffickers that included the Sinaloa Cartel.
Harinder Singh, 32, who also goes by “Sonu,” was found guilty late Friday of conspiracy to commit money laundering, conspiracy to operate an unlicensed money transmitting business, and operating an unlicensed money transmitting business.
The jury deliberated for less than two hours on January 19 before finding Singh guilty of all three charges. With the verdicts against Singh, prosecutors have convicted 18 defendants who were named in a 2015 grand jury indictment that was the first major case in the United States involving “hawala” transfers of drug money.
The evidence presented during the two-week trial in United States District Court – which included Punjabi language wiretap calls, Punjabi-speaking witnesses and a money laundering expert – showed that Singh participated in a “hawala” conspiracy that was moving money generated from drug sales in Canada to the United States to pay for multi-kilogram drug shipments that were purchased in Los Angeles and then routed back to Canada for distribution.
According to the indictment, a hawala is an alternative form of money remittance which operates outside of traditional banking or financial systems. The transfer of monetary value occurs between the brokers – who are typically located in different countries, but sometimes in different cities in one nation – based solely upon the trust that exists between the brokers. The hawala system, which originated on the Indian subcontinent, does not rely on promissory instruments; rather, it relies on trust and long-established connections between brokers that are typically based on familial, ethnic, religious, regional and/or cultural grounds. Through hawala transactions, only the value of the money is transferred, not the money itself.
Singh was stopped by the California Highway Patrol in October 2012, which led to the discovery of $274,980 in United States currency in rubber-banded stacks wrapped in black plastic. While the traffic stop was being conducted, special agents with the Drug Enforcement Administration were conducting surveillance and observed Singh’s wife exiting the couple’s apartment complex carrying a bag – which later revealed $388,100 in United States currency, again rubber-banded in stacks and similarly wrapped in black plastic.
Prior to the traffic stop and the seizure at Singh’s apartment complex, a federal wiretap intercepted Punjabi language calls indicating that Singh and co-conspirators communicated over multiple telephones to arrange for the pick-up, transport and delivery of large amounts of United States currency – in amounts of up to $800,000 – across the Los Angeles area.
In this case, drug traffickers used a traditional hawala network of brokers spanning the United States, Canada and India to secretly transfer millions of dollars of drug proceeds to the United States, where brokers such as Singh delivered money to couriers acting on behalf of the Canadian drug traffickers and Mexican drug cartels.
During the course of a four-year investigation by the DEA’s LA Strike Force and IRS Criminal Investigation, authorities seized nearly $15.5 million in bulk United States currency, 321 kilograms of cocaine, 98 pounds of methamphetamine, 11 kilograms of MDMA (“ecstasy”) and nine kilograms of heroin.
Previously in this case, 17 defendants have pleaded guilty, and several have already been sentenced, receiving prison terms as high as 70 months. The indictment also charges four other defendants who are currently fugitives.
Singh is scheduled to be sentenced by United States District Judge Christina A. Snyder on April 30. At the time of sentencing, Singh will face a statutory maximum penalty of 20 years in federal prison for the conspiracy count, and five years for each of the other two charges.
The investigation in this case was conducted by the Drug Enforcement Administration and IRS Criminal Investigation. These agencies received assistance and support from the Santa Ana Police Department, the Beverly Hills Police Department and the Pomona Police Department.
This case is being prosecuted by Assistant United States Attorneys Carol Alexis Chen of the Organized Crime Drug Enforcement Task Force and Ellen E. Lansden of Cyber and Intellectual Property Crimes Section.
Missouri Man Charged with Bonner Springs Bank RobberyRead the Press Release
KANSAS CITY, KAN. - A Kansas City man has been charged with robbing a bank in Bonner Springs, U.S. Attorney Tom Beall said today.
Timothy Karpovich, 39, Kansas City, Mo., was charged with one count of bank robbery. An investigator’s affidavit filed in the case alleged that on Monday morning Karpovich robbed the KCB Bank at 13010 Commercial in Bonner Springs. He gave the teller a handwritten note and kept his right hand in his pocket as if he had a gun. He fled the bank on foot.
Police received a tip that the robber gambled regularly at Harrah’s Casino in North Kansas City, Mo. Casino employees identified Karpovich from a bank surveillance photo. He was arrested without incident at the casino.
If convicted, he faces up to 20 years in federal prison. The FBI, the Bonner Springs Police Department and the Missouri Highway Patrol Gaming Division investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Michigan felon pleads guilty to federal gun crimeRead the Press Release
HUNTINGTON, W.Va. – A Michigan man pleaded guilty yesterday to a federal gun charge, announced United States Attorney Mike Stuart. Quadralon Mayberry-Figures, 20, of Wyoming, Michigan, entered his guilty plea to being a felon in possession of a firearm. U.S. Attorney Stuart commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hurricane Police Department for the investigation.
On February 17, 2017, an officer with the Hurricane Police Department conducted a traffic stop on Interstate 64. Mayberry-Figures was a passenger in the vehicle. During a search, the officer located a Diamond Back Arms 9mm pistol in his right front pocket. Mayberry-Figures was prohibited from possessing any firearm under federal law because of multiple felony convictions, including a 2016 Michigan conviction for carrying a concealed weapon.
Mayberry-Figures faces up to 10 years in federal prison when he is sentenced on April 23, 2018.
Assistant United States Attorney Stephanie S. Taylor is responsible for the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Michigan Janitorial Company Owner Sentenced to Prison for Tax FraudRead the Press Release
A Detroit, Michigan, resident who owned a janitorial service company was sentenced to 12 months and one day in prison today for obstructing the internal revenue laws and failing to file an individual tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents and information provided to the court, from approximately 2001, Braint N. Hall owned Braint N Hall Inc., which also did business as Sunrise Janitorial Service, Sunrise Janitorial and Maintenance Inc. and Detroit Industrial Cleaners Inc. To conceal his ownership of these firms, Hall caused two relatives to establish nominee entities, which he controlled, to assume their business operations, employees, equipment, and client contracts. Despite earning income from these businesses, Hall has not filed individual or corporate income tax returns since 2010.
In approximately 2009, the Internal Revenue Service (IRS) began auditing Hall for his failure to file individual income tax returns and to determine his income tax liability. To obstruct the audit, Hall provided the IRS with false information about the ownership of his janitorial business, the business’ bank accounts, and its client relationships.
In addition to the term of imprisonment, U.S. District Court Judge David M. Lawson ordered Hall to serve one year of supervised release. Hall pleaded guilty in August 2017 to obstructing the internal revenue laws and failing to file a personal tax return.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Kenneth Vert and Jeffrey McLellan of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the United States Attorney’s Office for the Eastern District of Michigan for its substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Miami Resident Sentenced in Identity Theft SchemeRead the Press Release
Defendant had personal identification information of over 1,000 individuals, most of whom were Miami-Dade College students
A Miami resident was sentenced to 38 months in prison, to be followed by three years of supervised release, and was ordered to pay $42,338.49 in restitution for his participation in an identity theft scheme.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Bryan Pegues, Chief, City of Aventura Police Department, and Rodolfo Llanes, Chief, City of Miami Police Department, made the announcement.
Thomas Jerry III, 32, of Miami, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
In May 2014, law enforcement conducted a traffic stop of a vehicle that was being driven by Jerry. During the vehicle search, law enforcement found two cellular telephones. The call log on one of Jerry’s telephones reflected that the telephone had been used to call the Capital One bank customer service line several times. The defendant’s other telephone contained images of the personal identification information (PII) of an identity theft victim and images of the victim’s credit report. A Capital One credit card in the name of the victim was also found. It was determined that the telephones were used to access and take over 79 Capital One accounts, and the caller had requested that the new cards be mailed to two addresses in Miami, Florida.
On July 24, 2014, a search warrant was executed at the Miami addresses. In the defendant’s bedroom, law enforcement found the PII (including names, dates of birth, and social security numbers) of over 1,000 individuals, most of whom were Miami-Dade College students; multiple H&R block debit cards, one of which had been funded by a fraudulent federal income tax return; an American Express card in the name of a student at Miami Dade College; Capital One credit cards in the names of identity theft and account take over victims; and a letter from Capital One containing the personal identification number (PlN) of an identity theft victim.
Mr. Greenberg commended the investigative efforts of IRS-CI, FBI, ATF, the City of Aventura Police Department, and the City of Miami Police Department. This case was prosecuted by Assistant U.S. Attorneys Daya Nathan and Gera Peoples.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Maryland man appears on drug distribution chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – An Elkridge, Maryland man was arrested and had his initial appearance today in federal court after being indicted by a grand jury sitting in Elkins on December 19, 2017 for drug distribution charges, United States Attorney Bill Powell announced.
Robert Lee Wyatt, age 39, was indicted on one count of “Conspiracy to Distribute Cocaine Base” and two counts of “Aiding and Abetting the Distribution of Cocaine Base.”
Also named in the indictment is Xavier Clyde Mann, age 30, of Finksburg, Maryland. Mann was indicted on one count of “Conspiracy to Distribute Cocaine Base,” four counts of “Distribution of Cocaine Base,” and two counts of “Aiding and Abetting the Distribution of Cocaine Base.”
Wyatt and Mann are accused of conspiring to distribute cocaine base in Mineral County from March to June 2017.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The case was investigated by the Potomac Highlands Drug and Violent Crimes Task Force.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.U.S. Magistrate Judge Robert W. Trumble presided.
Martinsburg man indicted on failure to register as a sex offender chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg, West Virginia man was indicted today by a federal grand jury on a failure to register charge, United States Attorney Bill Powell announced.
Andrew Reed Cumbie, age 36, was indicted on one count of “Failure to Register.” Cumbie, having been convicted of a sex offense in the Circuit Court of Melheur County, Oregon, is accused of traveling interstate commerce and not registering and updating his registration as a sex offender. The crime is alleged to have occurred in Berkeley County from November 16 to December 11, 2017.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The case was investigated by the United States Marshal Service.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Martinsburg man indicted on drug distribution chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg man was indicted today by a federal grand jury on drug distribution charges, United States Attorney Bill Powell announced.
Charles Leroy Palmer, III, age 23, was indicted on two counts of “Possession with the Intent to Distribute Heroin,” and one count of “Possession with the Intent to Distribute Cocaine Base.”
Palmer is accused of distributing heroin and cocaine base in Jefferson and Berkeley Counties in June 2017.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The case was investigated by the Jefferson County Sheriff’s Office and the Martinsburg City Police Department.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Lexington Man Sentenced to 175 Months for Receiving Child PornographyRead the Press Release
LEXINGTON, Ky. – A Lexington man, Matthew Ryan Murdoch, 35, has been sentenced to 175 months in federal prison, to be followed by a lifetime term of supervised release, for knowingly receiving child pornography.
On Monday, Senior United States District Judge Joseph M. Hood formally sentenced Murdoch, who must serve 85 percent of his federal prison sentence.
Murdoch previously admitted that, in October of 2016, he knowingly received images of child pornography, by using the uTorrent program on is Android device. A forensic examination of Murdoch’s device revealed approximately 4,367 still images and 24 videos of child pornography.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steven L. Igyarto, Special Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Kentucky Attorney General Andy Beshear jointly announced the sentence.
The investigation was conducted by the Cyber Crimes Branch of the Department of Criminal Investigations within the Kentucky Office of the Attorney General and the Department of Homeland Security – Homeland Security Investigations. The United States was represented by Assistant United States Attorney David Marye.
Lexington County Hells Angel Pleads Guilty to Murder for Hire of Ex-WifeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Jerry Oliver, age 52, of Lexington County, South Carolina, has entered a guilty plea in federal court in Columbia, to Murder for Hire, a violation of 18 U.S.C. § 1958. United States District Judge Terry L. Wooten, of Columbia, accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the defendant was a member of the Hells Angels and it was through this membership that the defendant met a person who was a FBI informant. The informant was working as a driver at the defendant’s place of work. The informant was charged with DUI and worried that he would lose his job as a driver, so the informant approached Oliver for help. Oliver recommended an attorney who Oliver knew and Oliver offered to cover the cost of the attorney if the informant would kill Oliver’s ex-wife. Oliver was involved in a contested family court proceeding where a hearing was scheduled regarding Oliver’s failure to comply with the divorce decree with his ex-wife. Oliver stated that the murder needed to occur before Oliver’s next family court appearance. The informant contacted the FBI who provided recording materials to the informant to record the interactions with Oliver. Numerous recordings of in-person and over the phone discussions of killing the ex-wife were captured. The informant told Oliver numerous times that he was a felon and the two discussed how to make the killing look like a robbery gone bad.
On September 29, the informant again told Oliver that he was a felon and needed help getting a firearm to do the murder. Oliver stated he would put a Glock in a truck on Oliver's property. The informant contacted Oliver who confirmed the weapon was in place for the informant to retrieve. The informant recorded his retrieval of a loaded Glock. The informant and Oliver discussed locating pictures of the ex-wife on Facebook, a recording of Oliver accessing the ex-wife's Facebook was captured – when Oliver told the informant to monitor the ex-wife’s location using Facebook.
Mrs. Drake stated the maximum penalty for Murder for Hire is imprisonment for 10 years and/or a fine of $250,000, the defendant agreed to a negotiated maximum 10-year sentence.
The case was investigated by agents of the FBI. Assistant United States Attorneys Jim May and Jay Richardson of the Columbia office are prosecuting the case.
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La Vista Man Has Citizenship Revoked After Conviction for Obtaining Citizenship by FraudRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Zahid Maqsood, age 56 of La Vista, Nebraska, was sentenced today by the Honorable Laurie Smith Camp to time served in jail and three years of supervised release following his conviction for unlawful procurement of citizenship/naturalization. He had been in jail approximately 8 months. Mr. Maqsood’s citizenship was also revoked.
Mr. Maqsood first came to the United States on a visa from from Pakistan in 1990. Using a different name, he applied for asylum. The application was denied and he was ordered removed from the United States under the fake name. He left the United States and returned in 2006 on an Immigrant Visa using the Maqsood name. In 2012 he applied for naturalization making a number of statements under oath. As part of the naturalization process he also had an interview, under oath, with an agent with United States Citizenship and Immigration Services. Based on his application and interview he was granted citizenship using the name “Maqsood.” It was later learned that a number of the material statements he made in his citizenship application form and his naturalization interview were false.
Mr. Maqsood pled guilty to the offense on October 3, 2017. Upon conviction, federal law mandates the judge declare his citizenship void and his naturalization certificate cancelled.
The case was investigated by the Immigration and Customs Enforcement Office of Removal Operations.
Kosciusko Man Pleads Guilty to Possessing a Stolen FirearmRead the Press Release
Jackson, Miss. – Jermaine Griffin, 31, of Kosciusko, pled guilty on January 18, 2018, before United States District Judge Tom S. Lee, to knowingly possessing and selling a stolen firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols, Bureau of Alcohol, Tobacco, Firearms, and Explosives.
In September 2014, Griffin purchased a .40 caliber Smith & Wesson pistol from someone on the street, and later learned the man who sold him the gun had recently robbed Central Mississippi Firearms, a gun store in Kosciusko, Mississippi. Griffin then sold the stolen gun in Durant, Mississippi.
Griffin will be sentenced by Judge Lee on April 18, 2018, and faces a maximum penalty of 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Jennifer Case.
Kirksville Man Sentenced for Stealing $380,000 from FraternityRead the Press Release
JEFFERSON CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that a Kirksville, Mo., man has been sentenced in federal court for embezzling more than $380,000 from the Sigma Alpha Epsilon fraternity in Columbia, Mo.
Burt Louis Beard, 63, of Kirksville, was sentenced by U.S. District Judge Stephen R. Bough on Monday, Jan. 22, 2018, to two years in federal prison without parole. The court also ordered Beard to pay $380,502 in restitution.
On Sept. 11, 2017, Beard pleaded guilty to bank fraud. Beard admitted that he defrauded the Sigma Alpha Epsilon (SAE) fraternity of $380,502 during the period between March 2008 and August 2014.
Beard was the volunteer treasurer from 2000 to 2014. During that time, Beard was responsible for all financial duties related to maintaining the house, paying various vendors and collecting rent checks. Beard wrote himself in excess of 150 checks. Beard claimed the checks to himself were for reimbursement of personal loans to SAE for direct payments he made to venders. When asked for copies of his personal checks, Beard supplied copies of checks to fictitious vendors or existing vendors that did not have an account receivable for that amount or during that period. In cases where Beard supplied vendor invoices for his reimbursements, vendors said the invoices were not theirs.
SAE elected a new slate of officers for the fraternity in the fall of 2014. During the transition of financial responsibilities from Beard to the new treasurer, numerous red flags began to appear. SAE hired RGL Forensics, a forensic accounting company, to investigate Beard’s wrongdoing. Based on the documentation provided and reviewed, RGL calculated $380,502 as the entire loss from March 2008 through September 2014. The calculated loss consisted of $414,979 in checks issued to Beard from March 2008 through September 2014, less $34,477 in payments that Beard issued to or on behalf of SAE.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI.
Justice Department Settles Immigration-Related Discrimination Claim Against Ohio CompanyRead the Press Release
The Justice Department announced today that it has reached a settlement with Omnicare Inc. (Omnicare), a wholly owned subsidiary of CVS Health Corporation and provider of long-term care pharmacy services in Ohio, resolving the Department’s investigation into whether the company violated the Immigration and Nationality Act’s (INA) anti-discrimination provision.
The Department’s investigation, which was initiated in response to a worker’s complaint, revealed that Omnicare engaged in citizenship status discrimination against a work authorized job applicant by refusing to refer him to the hiring manager for an interview because he was not a permanent resident or U.S. citizen, and removing him from the candidate pool based on his status as an asylee. The INA’s anti-discrimination provision prohibits employers from discriminating against asylees because of their citizenship or immigration status, unless authorized by law to do so.
Under the settlement agreement, Omnicare will pay the maximum civil penalty for one instance of citizenship status discrimination, post notices informing workers about their rights under the INA’s anti-discrimination provision, train its staff and its contractors, and be subject to departmental monitoring and reporting requirements for two years.
“Employers should ensure that all of the employees and contractors who screen their applicants for employment have the proper training to avoid improperly rejecting work authorized applicants based on a protected citizenship or immigration status,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to retaliation; different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Jury Finds a Man Guilty of $2.5 Million Wire Fraud and Tax EvasionRead the Press Release
U.S. Attorney R. Trent Shores announced today that a jury found Shawn Christopher Gorrell, 39, of Belgrade, Montana, guilty of three counts of Wire Fraud and three counts of Tax Evasion. The jury determined that Gorrell defrauded residents of Tulsa and Texas by touting investments and then diverting investor funds for his personal use, such as gambling, day-trading and paying personal expenses. Gorrell’s scheme lasted from 2007 until the fall of 2012. Evidence at trial demonstrated that Gorrell obtained over $2,500,000 from investors pursuant to his scheme, and made payments of over $500,000 back to investors to lull them into believing their investments were secure and performing as promoted. In related tax evasion charges, the evidence showed that Gorrell willfully evaded the payment of taxes attributable to the funds he took from investors during 2009, 2011 and 2012. He failed to report or pay taxes on the funds in a total amount of over $500,000.
U.S. Attorney Shores stated, “Through the outstanding cooperative efforts of federal and state investigative agencies, our office was able to secure guilty verdicts in a significant case where investors were financially decimated.”
Chief Judge Gregory K. Frizzell, of the United States District Court for the Northern District of Oklahoma, presided over the trial and will sentence Gorrell on April 23, 2018. Gorrell faces a maximum penalty of 20 years imprisonment, a fine of $250,000 or twice the pecuniary gain or loss caused by his conduct, and three years supervised release for the wire fraud charges, and a maximum penalty of 5 years in prison, a fine of $250,000 or twice the pecuniary gain or loss caused by his conduct, and three years supervised release for the tax evasion charges.
This case was investigated by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, the Oklahoma Securities Department and the Oklahoma Insurance Department. This case was prosecuted by Assistant United States Attorneys Kevin C. Leitch and Joseph F. Wilson.
Jackson Man Sentenced to 180 months in Prison for Armed CarjackingRead the Press Release
Jackson, Miss. - Suava Blair, 20, of Jackson, Mississippi, was sentenced yesterday by U.S. District Judge Henry T. Wingate to 180 months in federal prison followed by five years of supervised release, after having pled guilty to brandishing and possessing a firearm during a carjacking, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze, Federal Bureau of Investigation. Blair was also ordered to pay a $1,500.00 fine.
On October 2, 2015, Blair went to New Stage Theatre in Jackson and carjacked a victim as she opened the door to her vehicle. Blair held a gun to the victim’s head and demanded that she "get out the vehicle and leave everything inside." Blair, along with a passenger, drove away in the carjacked vehicle. A week later, on October 9, 2015, Jackson Police Officers patrolling the area around the Mississippi State Fairgrounds came into contact with the carjacked vehicle. The officers attempted to execute a stop on the vehicle. Instead, the driver, Suava Blair, led officers on a foot chase before eventually getting back into the carjacked vehicle and attempting to run over the officers. The officers discharged their service weapons, striking Blair in his right leg. He was taken to a nearby hospital where he was treated, apprehended and arrested.
This case was investigated by the Federal Bureau of Investigation, along with the Jackson Police Department, and prosecuted by Assistant U.S. Attorney Abe McGlothin, Jr.
ID Thieves Get Federal Prison TimeRead the Press Release
CORPUS CHRISTI, Texas – Two local men have been ordered to federal prison following their convictions of identity theft, announced U.S. Attorney Ryan K. Patrick. Vernon Sonsteng, 56, and Michael Anthony Villegas, 33, both of Corpus Christi, pleaded guilty in October 2017 to aggravated identity theft and possessing with the intent to unlawfully use five or more false identification documents.
Today, Senior U.S. District Judge John D. Rainey ordered Sonsteng to serve a total of 56 months in federal prison - 32 months for the fraudulent use charge followed by a consecutive 24 months for the identity theft. In federal court yesterday, Judge Rainey sentenced Villegas also to the mandatory 24 months for the identity theft as well as 28 months for the other conviction. Following his 52-month sentence, he will be on supervised release for three years as will Sonsteng.
As part of their sentence, both were also ordered to pay restitution of $19,187.73 to their identified victims.
In July 2016, authorities stopped Sonsteng and Villegas for a traffic violation. During a search of the vehicle, officers discovered more than 50 counterfeit Texas driver’s licenses bearing either the photograph of Sonsteng or Villegas, but with identifying information of other people. The vehicle also contained stolen U.S. mail and hundreds of counterfeit checks with names matching the fraudulent IDs that Sonsteng and Villegas possessed.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Secret Service conducted the investigation with the assistance of the U.S. Postal Inspection Service and the Portland and Corpus Christi Police Departments. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the cases.
Honduran National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Honduran national pleaded guilty and was sentenced yesterday in federal court in Boston for illegally reentering the United States after being deported.
Alan Fernando Dominguez Banegas, 24, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Douglas P. Woodlock sentenced Dominguez Banegas to time served and one year of supervised release. Dominguez Banegas was released to Immigration and Customs Enforcement while he awaits deportation to Honduras, where he is wanted on homicide/manslaughter charges.
On Sept. 22, 2017, law enforcement officers in Framingham encountered Dominguez Banegas and determined him to be illegally present in the United States. Dominguez Banegas was previously deported on May 30, 2014.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Hawaii Man Pleads Guilty to Wire FraudRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Jonathan F. Cowles, 46, of Honolulu, Hawaii, and formerly of Rowley, Massachusetts, pleaded guilty on Tuesday in U.S. District Court to wire fraud.
According to court records and evidence introduced at the plea hearing, between March and June 2014, the defendant used interstate wires to skim over $25,000 in commissions to which he was not entitled from his employer, Maine Coast Shellfish, LLC (Maine Coast), a lobster wholesaler located in York, Maine. As part of his fraudulent scheme, he also caused Maine Coast to ship about 50,000 lbs. of lobster worth about $360,000 to a customer in China whose true identity he concealed and for which Maine Coast was not paid.
Cowles faces up to 20 years in prison and a $250,000 fine. Under his plea agreement, Cowles has also agreed to pay Maine Coast almost $360,000 in restitution. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Federal Bureau of Investigation and the York Police Department.
Hampshire County man indicted on firearm chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Romney, West Virginia man was indicted today by a federal grand jury on a firearm charge, United States Attorney Bill Powell announced.
Grover Allen White, age 39, was indicted on one count of “Possession of a Stolen Firearm.” White is accused of possessing a stolen .380 caliber pistol. The crime is alleged to have occurred in Hampshire County in June 2016.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national pleaded guilty and was sentenced today in federal court in Boston for illegally reentering the United States after deportation.
Danny Fuentes-Monzon, 31, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Nathaniel M. Gorton sentenced Fuentes-Monzon to time served and one year of supervised release. Fuentes-Monzon will be subject to deportation.
On Aug. 18, 2017, Fuentes-Monzon was encountered by law enforcement in Lynn and determined to be illegally present in the United States. Fuentes-Monzon was previously deported on Aug. 19, 2005.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted this case.
Guatemalan National Charged with Fentanyl ConspiracyRead the Press Release
BOSTON – A Guatemalan national was charged yesterday in federal court in Boston in connection with a conspiracy to distribute over five kilograms of fentanyl, worth approximately $1.25 million.
Rene Alejandro Salazar Reyes, 26, was charged by complaint with one count of conspiracy to possess with intent to distribute and to distribute fentanyl. Salazar was arrested on Saturday, Jan. 20, 2018, and will remain in custody pending a detention and probable cause hearing on Jan. 25, 2018, in federal court in Boston.
“Fentanyl is devastating communities across Massachusetts,” said United States Attorney Andrew E. Lelling. “Just a few milligrams of fentanyl can cause a fatal overdose. Saturday’s seizure of over five kilograms is an important step in our efforts to keep this deadly drug off our streets. This investigation is a testament to our commitment to work with our law enforcement partners to aggressively pursue individuals who seek to distribute deadly narcotics, without any regard for human life, throughout our neighborhoods and communities.”
“Opioid abuse is at epidemic levels in Massachusetts and across the Northeast,” said DEA Special Agent in Charge Michael J. Ferguson. “Fentanyl is causing deaths in record numbers and DEA remains committed to aggressively pursuing Drug Trafficking Organizations or individuals who distribute this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength of collaborative law enforcement efforts in Massachusetts and our strong partnership with the U.S. Attorney’s Office.”
According to court documents, in November 2017, a cooperating witness informed a federal law enforcement officer that a Guatemalan man was selling heroin and/or fentanyl in the Boston area. After a series of recorded cell phone texts and calls, the Guatemalan man agreed to sell the cooperating witness five kilograms of fentanyl, which he would arrange to be delivered to the cooperating witness in Massachusetts. The cooperating witness agreed to make a partial payment of $70,000 for the drugs. The estimated street value of one kilogram of fentanyl is $250,000; one gram sells for approximately $40-$50.
It is alleged that on Jan. 19, 2018, the Guatemalan man placed a call, which was also recorded, to the cooperating witness informing him that a courier would deliver the fentanyl to him in Massachusetts the next day. Soon after, the cooperating witness received a call from the Guatemalan man’s courier, who law enforcement agents determined to be Salazar, the target of a previous criminal investigation in Maryland.
On Jan. 20, 2018, the cooperating witness called Salazar and asked him where he was and then drove to meet Salazar so that Salazar could then follow the cooperating witness to a location to conduct the transaction. While Salazar was on the phone with the cooperating witness, surveillance officers saw Salazar standing outside his vehicle. Once Salazar got into his car to follow the cooperating witness, agents followed Salazar and directed law enforcement officers to conduct a traffic stop.
According to court documents, when the officer stopped Salazar for failing to stop at a stop sign, Salazar appeared visibly nervous. The officer asked Salazar if he had any drugs or weapons in the car, to which Salazar replied that he did not. The officer then asked if he could search the car, to which Salazar replied, “Yes, go ahead.” According to the complaint affidavit, the officer found a large plastic shopping bag on the rear passenger floorboard that contained 23 individually heat sealed clear plastic bags containing approximately 5.2 kilograms of a white powdery substance. Salazar was then placed under arrest.
Salazar faces a sentence of no greater than 20 years in prison, three years and up to a lifetime of supervised release, a fine of $1 million, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling and DEA SAC Ferguson made the announcement. Assistance was provided by Homeland Security Investigations in Maryland and the Massachusetts State Police. Assistant U.S. Attorney Leah Foley of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ghanaian National Convicted by Federal Jury of Unlawful Attempted Procurement of CitizenshipRead the Press Release
BOSTON - A Ghanaian national was convicted by a federal jury in Boston yesterday in connection with entering into a false marriage in order to obtain citizenship.
Samer El-Sayed, 33, was convicted by a federal jury of one count of willfully and knowingly making false statements; one count of making false statements under oath relative to naturalization, citizenship or alien registry; and one count of unlawful attempted procurement of citizenship or naturalization. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for April 17, 2018.
In June 2008, El-Sayed entered the United States on a non-immigrant visa. In February 2009, El-Sayed entered into a sham marriage with an 18-year-old United States citizen to whom he paid several thousand dollars. Thereafter, El-Sayed began filing various petitions and applications with the U.S. Citizenship and Immigration Services (USCIS) in order to obtain immigration benefits, and in March 2010, El-Sayed was granted conditional permanent resident status. In 2012, El-Sayed submitted false statements on a petition filed with USCIS and subsequently provided false statements under oath to USCIS during an interview that occurred in January 2014. Then, in May 2014, El-Sayed submitted an application for United States citizenship to USCIS and provided false information and statements in that application.
The charges of making false statements and making false statements under oath for naturalization each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of unlawful attempted procurement of citizenship or naturalization provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. El-Sayed will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Denis C. Riordan, District Director, U.S. Citizenship and Immigration Services, District 1, made the announcement. Assistant U.S. Attorney Suzanne Jacobus Sullivan of Lelling’s Major Crimes Unit is prosecuting the case.
Georgia Man Sentenced for $258,000 Identity Theft, Tax Refund SchemeRead the Press Release
JEFFERSON CITY, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that a Georgia man has been sentenced in federal court for using dozens of stolen identities to file fraudulent tax returns seeking $258,063 in refunds.
Jalen Ortez Gude, 25, of Hillsboro, Ga., was sentenced by U.S. District Judge Stephen R. Bough on Monday, Jan. 22, 2018, to six years and nine months in federal prison without parole. The court also ordered Gude to pay $163, 305 in restitution.
On Aug. 24, 2017, Gude pleaded guilty to one count of wire fraud and one count of identity theft. Gude admitted that, between January 2014 and March 13, 2015, he used the stolen identity information of at least 46 victims (including their names, Social Security numbers, and dates of birth) to file fraudulent tax returns and receive tax refunds from both the federal government and the state of Missouri. According to court documents, those victims included residents of Cole County, Mo., whose stolen identity information had been released over the Internet.
The IRS stopped $94,592 in refunds from being processed; as a result, the aggregate amount of restitution due is $163,305 to 10 of Gude’s victims.
Gude opened bank accounts in the names of his identity theft victims so that the IRS and the Missouri Department of Revenue would transfer the refunds to bank accounts he controlled. This process permitted Gude to remain anonymous and to conduct his scheme, in part, from outside Missouri. Gude also used the stolen identity information to submit fraudulent online credit applications at banks and credit card companies.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the FBI, IRS-Criminal Investigation, the Missouri Department of Revenue – Compliance and Investigation Bureau and the Missouri Department of Revenue – Criminal Investigation Bureau.