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Thursday 30 November 2017
Mexican Citizen Sentenced for Illegal Re-Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Juan Carlos Cruz Figueroa, age 30, and a citizen of Mexico, was sentenced today to time served (80 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Cruz Figueroa admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on November 7, 2007. Cruz Figueroa had also been removed to Mexico on September 22, 2007.
On September 11, 2017, ICE Officers arrested Cruz Figueroa in Saratoga Springs, New York.
Following his sentencing, Cruz Figueroa was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant United States Attorney Edward P. Grogan.
Maritime Instructor Sentenced for Conspiracy to Commit Wire Fraud and Wire FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MAURICE GEORGE, age 45, of Napoleonville, was sentenced today after previously pleading guilty to one count of Conspiracy to Commit Wire Fraud.
United States District Judge Eldon F. Fallon sentenced GEORGE to five years probation and ordered him to pay restitution in the amount of $334,892.
According to the court documents, GEORGE was employed by Beier Radio, L.L.C., located in Louisiana, which manufactured maritime electronics products including Dynamic Positioning Systems (“DPS”). DPS is a maritime vessel computer system that automatically maintains a vessel’s position and heading by using position reference sensors and the vessel’s propellers and thrusters. Beier operated a DPS training center in Gray, Louisiana under the name “The Marine Training Institute.” Beier’s Marine Training Institute provided technical and operational training courses for Beier DPS customers. In 2007, GEORGE began working as an instructor for Beier Radio’s Marine Training Institute and taught DPS courses at Beier’s Louisiana classroom facility. Typically, Beier charged tuition in the amount of $2,000 to $2,500 for their DPS courses.
Between 2007 and 2013, GEORGE devised a scheme to embezzle approximately $334,892 from Beier Radio. On approximately 225 occasions, GEORGE negotiated monetary payments of approximately $1,200 to $2,000 with “students,” which he kept for himself, in exchange for endorsing and certifying their log books and for issuing DPS certificates of training from Beier Radio. In order to conceal his activities, GEORGE failed to create invoices for his illegal transactions and failed to have DPS students complete registration materials
GEORGE instructed DPS students to pay him directly by check made payable to “MAURICE GEORGE.” GEORGE also forged the signatures of various employees of Beier Radio on the DPS training certificates. The Indictment alleges that GEORGE deposited the illegal payments into his personal checking account with ASI Federal Credit Union. It is important to note that the investigation determined the overwhelming majority of GEORGE’s students did actually attend the DPS courses.
“George’s greed not only stole money from the company he worked for, it put our Nation’s critical infrastructure at risk,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer, Jr. “Because of these bogus certifications the possibility exists that someone could be injured or killed and we could face any number of potential environmental disasters.” Parmer is the Special Agent in Charge of the New Orleans field office with responsibility for Louisiana, Arkansas, Alabama, Mississippi, and Tennessee.
Acting U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”), as well as the U.S. Coast Guard Investigative Service who assisted HSI in this investigation. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Marion County woman admits to her role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – A Fairmont, West Virginia woman has admitted today to distributing methamphetamines, United States Attorney Bill Powell announced.
Cassie Chase Poland, age 18, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine - Aiding and Abetting.” Poland admitted to aiding another in distributing methamphetamine in Randolph County in April 2017.
Poland faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.Man Sentenced to 9 Years Imprisonment for Being a Felon in Possession of a Firearm and Assaulting a Jackson Police OfficerRead the Press Release
Jackson, TN – Jeremy Seville Hall was sentenced to 9 years in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on December 26, 2016, an officer with the Jackson Police Department (JPD) conducted a traffic stop on a silver Kia Spectra that had a non-functioning driver’s side brake light. During the stop, the defendant, a backseat passenger in the vehicle, was found to have active warrants for his arrest. Hall opened the rear left passenger door and fled the area on foot while wearing a backpack.
The police officer gave chase and attempted to take Hall into custody. He assaulted the officer, putting him in a chokehold and attempted to flee while emptying the contents of the backpack. When additional officers arrived on the scene, they obtained control of Hall. Officers then noticed a Glock 27, .40 –caliber pistol on the ground at Hall’s feet. A search of Hall’s person, revealed two additional .40 caliber rounds of ammunition in the right front pocket of his pants. The firearm had been reported stolen from Brownsville, TN., on February 28, 2016.
United States Attorney D. Michael Dunavant said: "By collaborating with our law enforcement partners we will use every available resource to ensure the safety of our citizens. If you choose to illegally possess firearms anywhere within the 22-counties of the Western District of Tennessee, you will be met with aggressive and unrelenting federal prosecution. The professionals in the U.S. Attorney’s Office along with law enforcement partners are committed to aggressively removing individuals from our communities that commit these and other horrific crimes. This is our mission. Gun Crime is Max time."
On November 27, 2017, the Honorable S. Thomas Anderson, Chief United States District Court Judge, sentenced Hall to 9 years imprisonment and 3 years supervised release to begin after his incarceration. His sentence included a sentencing enhancement for assaulting a law enforcement officer during the offense.
"The Jackson Police Department is committed to working with the U.S. Attorney’s Office and our federal partner law enforcement agencies to continue to target violent individuals who commit crimes with guns. If you commit a crime in Jackson with a firearm that violates federal laws, you can expect to face the consequences."
The Jackson Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution, investigated this case.
Assistant U.S. Attorney Taylor Eskridge is prosecuting this case on the government’s behalf.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving MurderRead the Press Release
BOSTON – An MS-13 member pleaded guilty yesterday in federal court in Boston to racketeering conspiracy involving the murder of a 15-year-old boy in East Boston.
Henry Josue Parada Martinez, a/k/a “Street Danger,” 22, a Salvadoran national formerly of East Boston and Montgomery County, Md., pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for March 1, 2018.
During an investigation of MS-13 in Massachusetts, Parada Martinez was identified as a member of MS-13’s Molinos clique, which operated in East Boston and other parts of Massachusetts. Parada Martinez admitted that on Sept. 7, 2015, he was one of four individuals who murdered a 15-year-old boy on Constitution Beach in East Boston. Agents subsequently recorded conversations with Parada Martinez in which he acknowledged being a member of MS-13, admitted that he was one of the men who murdered the victim, and identified other MS-13 members who committed the murder with him.
After a three-year investigation, Parada Martinez was one of 61 individuals named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. Parada Martinez is the 26th defendant to plead guilty in this case.
Parada Martinez faces up to life in prison, five years of supervised release, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Thomas Turco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief James Guido; Somerville Police Chief David Fallon; and Herndon (VA) Police Chief Maggie A. DeBoard made the announcement.
Manchester Man Convicted of Drug Trafficking ChargesRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley today announced that, after a four-day trial, a jury returned guilty verdicts late Wednesday afternoon against Valentin Delo Perez Soto, also known as Miguel Angel Sanchez Caraballo, 49, of Manchester, New Hampshire.
Evidence presented at trial demonstrated that the defendant sold fentanyl and heroin to a cooperating individual on April 23, June 4, and October 2, 2015. A search warrant was executed at the defendant’s residence on Pearl Street in Manchester on November 2, 2015, where quantities of cocaine, oxycodone, and over 100 grams of heroin were recovered.
Perez Soto was convicted of one count of distributing fentanyl, two counts of distributing heroin, and one count of possessing cocaine, oxycodone and 100 grams of more of heroin with the intent to distribute.
Perez Soto, who is in custody, faces a mandatory minimum sentence of at least ten years and a maximum of life in prison. His sentencing has not yet been scheduled.
“This prosecution demonstrate the commitment of the U.S. Attorney’s Office to working with our law enforcement partners to stop the distribution of drugs in our communities,” said Acting U.S. Attorney Farley. “While we recognize that those who struggle with substance abuse require access to treatment, we will continue to work tirelessly to identify and prosecute those who are responsible for distributing these deadly substances in the Granite State.”
The investigation that led to this prosecution was co-led by the New Hampshire State Police and the FBI Safe Streets Gang Task Force. They were assisted by the U.S. Drug Enforcement Administration, Northeast Laboratory, and the Hillsborough County House of Corrections. The case was prosecuted by Assistant U.S. Attorneys Bill Morse and Anna Dronzek.
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Lynn Man Pleads Guilty to Counterfeit Steroid ConspiracyRead the Press Release
BOSTON – A Lynn man pleaded guilty yesterday in federal court in Boston for his role in a conspiracy to traffic counterfeit steroids, including testosterone and trenbolone, to customers across the country.
Philip Goodwin, 37, pleaded guilty to one count of conspiracy to distribute controlled substances, one count of conspiracy to traffic counterfeit drugs, one count of trafficking counterfeit drugs, one count of possession with intent to distribute controlled substances, and one count of money laundering conspiracy. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 28, 2018.
In April 2017, Goodwin and five others, including Tyler Bauman, a/k/a “musclehead 320,” were arrested and charged with operating a counterfeit steroid operation on the North Shore.
According to court documents, from approximately May 2015 until April 12, 2017, the conspirators manufactured steroid products - made from raw materials purchased overseas - in Goodwin’s home, and marketed them as “Onyx” steroids using “Onyx” labels that were also ordered from overseas suppliers. Onyx, now owned by Amgen Inc., is a legitimate pharmaceutical company that does not manufacture steroids.
The defendants allegedly sold the steroids to customers across the United States using email and social media platforms, collected payment through money remitters, such as Western Union and MoneyGram, and used false identifications and multiple remitter locations to pick up the proceeds. Some of the defendants laundered proceeds from the steroid sales through Wicked Tan LLC, a tanning business located in Beverly, which they owned and operated specifically to launder the proceeds of the steroid operation.
In August 2017, Bauman pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on Jan. 23, 2018.
The charges of conspiracy to traffic in counterfeit drugs and conspiracy to distribute controlled substances provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss of the conspiracy. The charge of possession of a controlled substance provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss of the conspiracy. The charge of trafficking in counterfeit drugs provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $5 million. The charge of money laundering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the value of the property involved in the laundering transactions. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office, made the announcement today. Assistant U.S. Attorneys Amy Harman Burkart and David J. D’Addio of Weinreb’s Cybercrime Unit are prosecuting the case.
Local Investigative Team Wins Federal Law Enforcement Award for Murder InvestigationRead the Press Release
On November 30, 2017, five members of the team that investigated the May, 2011 killing of Tony Canfield were recognized for their efforts with the Federal Law Enforcement Officers Association (FLEOA) national group achievement award. The award ceremony took place at the Sioux City Police Department.
The FLEOA was founded in 1977, and is a non-profit organization that represents federal law enforcement agents across the nation, and currently represents more than 25,000 federal law enforcement agents from over 65 different agencies.
The recipients of the FLEOA award were FBI Special Agent Jonathan Moeller, Northern District of Iowa Assistant United States Attorney Forde Fairchild, Sioux City Police Department Detectives Heather Albrecht and Mike Simons and Minnehaha County Sheriff’s Office Captain Mike Walsh.
The national award stems from the recipients’ group efforts in the investigation of Sioux City resident Tony Canfield’s murder. The case began on May 1, 2011, when Mr. Canfield and his wife were robbed at gunpoint by three men. One of the robbers held and brutalized the wife, while the other two physically robbed Mr. Canfield of marijuana and cash. Mr. Canfield resisted his attackers and attempted to escape the robbery by fleeing his home. While fleeing, Mr. Canfield was shot and killed on his front porch. The crime went unsolved for five years, owing to the fact there was no forensic evidence identifying the perpetrators, and neither the murder weapon, nor any shell casings were recovered at the scene. In addition, the wife could not identify the robbers as they were wearing masks. Nonetheless, through dogged investigative work, which included numerous interviews conducted in a number of different states, the perpetrators were arrested and prosecuted. In 2016, all three defendants were convicted, and sentenced. The sentences ranged from 20 to 35 years’ imprisonment.
United States Attorney for the Northern District of Iowa Peter Deegan stated: “Our office is proud to count Assistant United States Attorney Forde Fairchild among those who helped bring Canfield’s ruthless killers to justice. The investigative team represents the very best in cooperative law enforcement and is most deserving of this prestigious award.”
Sioux City Police Chief Rex Muller added: “We are extremely proud of the working relationship we have with the local FBI Office and United States Attorney’s Office. This was a particularly challenging case that required the resources of multiple agencies to lead to a successful prosecution. These criminals presented a significant danger to the general public if not identified and arrested. The efforts of the investigators and prosecutors in this case over a five year period are a testament to their dedication to bring justice to this case, as well as bring some closure to the family of Tony Canfield. It is a fine example of the strong cooperation and capability that exists within Northwestern Iowa law enforcement community.”
In praising the investigative team, Minnehaha County Sheriff Mike Milstead said: “I’m proud that Captain Mike Walsh was able to provide valuable assistance to this joint investigation and help bring those responsible to justice. The team’s dedication, thoroughness and persistence paid off in ways far beyond the award they received today.”
Finally, FBI Special Agent Jon Moeller, a member of the award winning team, said: “Although this investigation took five years, it never really went ‘cold’. Diligently and persistently a team of investigators and analysts - spread over five states - and from multiple agencies, never stopped working this case. Together we brought three killers to justice, brought closure to the friends and family of Mr. Canfield, and a renewed sense of security to the whole community. It is an honor and privilege to work with these folks on a daily basis.”
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Leading Proxy Solicitation Firm Georgeson LLC Agrees to Pay $4.5 Million to Resolve Fraud ChargesRead the Press Release
BOSTON – New York-based proxy solicitation firm Georgeson LLC has entered into a deferred prosecution agreement and agreed to pay a $4.5 million criminal penalty to resolve the government’s criminal investigation into a conspiracy to bribe an employee of a proxy advisory firm as part of a scheme to defraud the advisory firm of confidential information about how its clients had voted on numerous shareholder proposals.
According to admissions made in the resolution documents, from September 2007 to March 2012, Georgeson, one of the nation’s leading proxy solicitation firms, conspired to provide tickets to concerts and sporting events to Brian M. Bennett, formerly known as Brian Zentmyer, an employee of one of the country’s leading proxy advisory firms, in order to obtain information about whether and how the proxy advisory firm’s clients had voted on particular shareholder proposals. Georgeson also admitted that its employees conspired to defraud Georgeson’s own clients by billing them for at least a portion of the cost of the bribes provided to Bennett, while falsely describing those charges in invoices as legitimate expenses.
Proxy advisory firms provide institutional investors with research, analysis and recommendations concerning proposals subject to vote by shareholders in publicly traded companies. The firms may also engage in ancillary businesses, such as helping clients cast their votes, also known as proxy ballots or proxies. Proxy solicitation firms, in turn, assist publicly traded companies in matters requiring shareholder approval by attempting to gather information about institutional investors’ holdings and the direction of their proxy votes. This information can help proxy solicitors and their clients determine whether particular shareholder proposals are likely to pass or fail, and can thus help to shape their strategies for affecting the outcome of shareholder votes.
In July 2015, Bennett pleaded guilty to an Information charging him with one count of conspiracy to commit wire fraud and honest services wire fraud. He was sentenced in January 2017 to one year of probation. In December 2016, Keith Haynes, a former senior managing director at Georgeson, pleaded guilty to an Information charging him with one count of conspiracy to commit wire fraud and honest services wire fraud. He has not yet been sentenced. Four other Georgeson employees have been charged in an indictment with conspiracy to commit wire fraud and honest services wire fraud, as well as substantive counts of wire fraud and honest services wire fraud. They are scheduled to stand trial in February 2018 in federal court in Boston. The details contained in the indictment against those individuals are allegations. They are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
As part of the deferred prosecution agreement, Georgeson has agreed to pay the criminal penalty, to continue to cooperate with the U.S. Attorney’s Office in the District of Massachusetts in any ongoing investigations and prosecutions relating to the conduct, including of individuals, to enhance its compliance program and to retain an independent compliance consultant.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission. Assistant U.S. Attorney Stephen E. Frank, Chief of Weinreb’s Economic Crimes Unit, and Assistant U.S. Attorney Eric D. Rosen, also of the Economic Crimes Unit, are prosecuting the case.
Leader of Tuscaloosa Area Drug Ring Sentenced to 25 Years in PrisonRead the Press Release
TUSCALOOSA – A federal judge today sentenced the leader of a drug ring trafficking methamphetamine and cocaine in Tuscaloosa County to 25 years in prison, announced U.S. Attorney Jay E. Town, Bureau of Alcohol, Tobacco, Firearms & Explosives Special Agent in Charge Steven L. Gerido and West Alabama Narcotics Task Force Captain Phil Simpson.
U.S. District Judge L. Scott Coogler sentenced SANTONY MARKEI NOLAND, 32, also known as “Santony Markies Noland,” “San T” and “Black,” on one count of conspiracy to distribute 50 grams or more of methamphetamine between December 2016 and March 2017, and on one count of being a felon in possession of a firearm. Noland pleaded guilty to the charges in July.
Noland, of Tuscaloosa, is one of 10 defendants, all of whom have pleaded guilty to charges related to the drug-trafficking conspiracy. Three of the defendants remain to be sentenced.
"Multiple law enforcement agencies came together in this investigation and successfully took down an established cocaine- and methamphetamine-trafficking organization in the Tuscaloosa area," Town said. "This is an outstanding example of how robust partnerships between every level of law enforcement enables the dismantling of drug smuggling organizations and reduces the availability of illegal narcotics in our communities.”
“ATF, along with its partners, work diligently to protect the public from senseless acts of violence,” Gerido said. “ATF will remain vigilant as we engage with the community and foster a safe environment. Support from the public is crucial and the reporting of illegal activity is encouraged through ATF’s report it phone app.”
“We were glad to be able to partner with the ATF to get this violent drug offender off the streets,” Simpson said.
Noland has multiple felony convictions in Tuscaloosa County Circuit Court and a prior federal felony conviction from the Northern District of Alabama for being a felon in possession of a firearm on a previous occasion.
The ATF, WANTF and the Drug Enforcement Administration investigated the case. The task force is composed of officers from the Tuscaloosa County Sheriff’s Office, the Tuscaloosa, Northport and University of Alabama police departments, and the Tuscaloosa County District Attorney’s Office. Assistant U.S. Attorney Brad Felton is prosecuting the case.
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Kansas Man Indicted in Robbery, Attempted RobberyRead the Press Release
KANSAS CITY, KAN. – A Prairie Village man was indicted Wednesday on charges he robbed a shoe store, and attempted to rob a credit union, U.S. Attorney Tom Beall said.
John P. Gail, 49, Prairie Village, Kan., was charged with one count of commercial robbery, and one count of attempted robbery of a Credit Union. The indictment alleges that on Sept. 10, 2017, he robbed Payless Shoe Source at 4824 S. 4th Street in Leavenworth, Kan.
In addition, the indictment alleges that on Sept. 11, 2017, Gail attempted to rob the Community America Credit Union at 13590 S. Blackbob in Olathe, Kan.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on each count. The FBI, the Leavenworth Police Department and the Olathe Police Department investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
OTHER INDICTMENTS
Ronald James McNeil, 25, Charlotte, N.C., and Rock Sarousse Lamartiniere, 24, are charged with one count of wire fraud and one count of aggravated identity theft. The indictment alleges they used false identities to purchase cell phones at discounted prices from AT&T. The crimes are alleged to have occurred Aug. 31, 2017, in Johnson County, Kan.
If convicted, they face up to 20 years in federal prison and a fine up to $250,000 on the wire fraud count and two years (consecutive) and a fine up to $250,000 on the identity theft count. The Overland Park Police Department investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Jury Finds Mission Man Guilty of Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that Roger Watts, age 34, of Mission, South Dakota, was found guilty of Assaulting, Resisting, and Impeding a Federal Officer following a two-day jury trial in Pierre, South Dakota. The verdict was returned on November 29, 2017.
The charge carries a maximum sentence of up to 20 years in prison, and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Watts was indicted by a federal grand jury on February 15, 2017. The conviction stems from an incident that occurred on January 20, 2017, in the North Antelope Community near Mission. On that date, Rosebud Sioux Tribe Law Enforcement Services Officers were investigating an allegation that Watts had stolen property and questioned him at a home in North Antelope. After being questioned, Watts was informed he was being arrested. Watts became combative and charged at one of the officers, physically engaging him. A struggle ensued and the officer sustained a knee injury during the struggle.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for February 20, 2018.
Watts was remanded to the custody of the U.S. Marshals Service pending sentencing.
Jury Convicts Two Men of Conspiracy to Import HeroinRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted two men today for their role in a conspiracy to import heroin and cocaine into the United States from El Salvador.
According to court records and evidence presented at trial, Rosemberg Martin Majano, 40, of Lithia Springs, Georgia, and Jose Alejandro Orellana Montalvo, 25, of Woodbridge, were participants in a conspiracy to smuggle more than $400,000 worth of heroin and cocaine into the United States from El Salvador. Majano carried the drugs in his checked luggage on a flight from El Salvador into Washington Dulles International Airport. When Majano arrived at the airport, officers with the U.S. Customs and Border Protection discovered the heroin and cocaine concealed within food packaging in his luggage. Majano admitted that he was being paid to deliver the packages to someone in the airport. In an ensuing surveillance operation, special agents with the Department of Homeland Security, Homeland Security Investigations, identified Orellana Montalvo as the individual who was to pick up the narcotics from Majano. Orellana Montalvo was arrested after he tried to pick up Majano outside of a restaurant in Herndon.
Each man faces a mandatory minimum of 10 years and maximum of life in prison when sentenced on March 30, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Casey Owen Durst, Director of CBP’s Baltimore Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the verdict. Assistant U.S. Attorneys Thomas W. Traxler and Dennis M. Fitzpatrick are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-204.
Internal Revenue Service Impersonation Scammers ArrestedRead the Press Release
United States Attorney Gregory J. Haanstad for the Eastern District of Wisconsin announced that pursuant to criminal complaints and arrest warrants issued by a United States Magistrate Judge in the Eastern District of Wisconsin four suspects in an Internal Revenue Service impersonation scam were arrested by local and federal law enforcement. Moin Gohil of Dunwoody, Georgia (age: 22), was arrested by local law enforcement authorities on November 24, 2017. Pratik Patel of Hoffman Estates, Illinois (age: 26), Parvez Jiwani of Tucker, Georgia (age: 39), and Nakul Chetiwal of Dunwoody, Georgia (age: 27), were arrested on November 28, 2017 by federal law enforcement authorities. All of these arrests were based on charges of violations of Title 18, United States Code, Sections 1343, 1349, 2 (Wire Fraud, Conspiracy to Commit Wire Fraud, and Aiding and Abetting). Each of these charges carries a maximum of 20 years imprisonment and a $250,000 fine.
According to the criminal complaint, Gohil, Chetiwal, and Jiwani were “runners” who used fraudulent identification cards to pick up fraud proceeds for a scheme likely originating from India. Patel aided and abetted at least one of the runners. In this scheme, which is sometimes referred to as an “IRS impersonation scheme,” members of the scheme (likely in India) call victims and make misrepresentations (typically, that the victim owes taxes) and cause the victims to wire money through a wire service, such as MoneyGram. Other members of the conspiracy (known as “runners”), such as Gohil, Chetiwal, and Jiwani, then use fraudulent identification cards to pick up the fraud proceeds. According to the complaint, Gohil, Chetiwal, and Jiwani picked up $666,537 sent from 784 victims during the period from January 25, 2016, through August 8, 2017. The false identities used by Gohil, Chetiwal, and Jiwani are linked to an additional 6,530 fraudulent transactions totaling $2,836,745.
The case was investigated by the Treasury Inspector General for Tax Administration Mid Atlantic Division and Southern Field Division as well as the Mount Pleasant, Wisconsin Police Department and the Federal Deposit Insurance Corporation Office of the Inspector General. The case is being prosecuted Assistant United States Attorney Zachary J. Corey.
A criminal complaint is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The public should be aware that the Internal Revenue Service (or any federal government agency) will never ask you to pay money to them via MoneyGram, RIA, Western Union, or especially iTunes or Steam (online gaming) gift cards.
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Inmate Indicted for Murder-For-Hire SchemeRead the Press Release
BOSTON – An inmate at the Essex County House of Corrections was indicted today in federal court in Boston in connection with a murder-for-hire scheme.
Mason Stickney, 20, of Byfield, was indicted on three counts of using a facility of interstate commerce in the commission of murder-for-hire.
According to court documents, in October 2017, Stickney, who was in custody at the Essex County House of Corrections, approached a fellow inmate and solicited his assistance in the murder of a police officer, a restaurateur from New Hampshire and a student. The fellow inmate reported Stickney’s solicitation to authorities. Thereafter, at the request of investigators, the inmate provided Stickney with the phone number of a would-be hitman, who was actually an undercover agent.
It is alleged that in recorded conversations between Nov. 3 and Nov. 8, 2017, both on the phone and in person at the jail, Stickney described to the undercover agent the individuals he wanted killed and how he wanted the murders committed. Stickney promised to pay the undercover agent $10,000 upon his release from jail, as well as to “get rid of three people for you guys.”
Each charge provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Essex County District Attorney Jonathan Blodgett; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Essex County Sheriff Kevin F. Coppinger made the announcement. Assistant U.S. Attorney Robert Richardson of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Immigration Attorney Pleads Guilty to Fraud Scheme and Identity Theft in Relation to Visa ApplicationsRead the Press Release
An Indianapolis, Indiana immigration attorney pleaded guilty today for defrauding the U.S. Citizenship and Immigration Services (USCIS) and more than 250 of his clients by filing false visa applications and reaping approximately $750,000 in fraudulent fees.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge James M. Gibbons of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Chicago made the announcement.
Indianapolis immigration attorney Joel Paul, 45, of Fishers, Indiana pleaded guilty before U.S. District Judge Jane E. Magnus-Stinson of the Southern District of Indiana to an information charging him with one count each of mail fraud, immigration document fraud, and aggravated identity theft in connection with a scheme to submit fraudulent U-visa applications. Sentencing will be scheduled before Judge Magnus-Stinson in early 2018.
“Individuals who commit immigration fraud undermine and abuse our generous immigration system—a system that lawfully admits more immigrants than any other country in the world—and put our public safety and national security at risk,” said Attorney General Sessions. “President Trump promised voters he would return this country to a lawful system of immigration, and this Justice Department is committed to fulfilling that promise by rooting out fraud and abuse. We will not tolerate fraud at any level, and will bring those who engage in fraud to justice.”
According to the plea agreement, Paul admitted that from 2013 to 2017, he submitted more than 250 false Applications for Advance Permission to Enter as a Nonimmigrant on behalf of his clients and without their knowledge. Those applications falsely asserted that Paul’s clients had been victims of a crime and had provided substantial assistance to law enforcement in investigating the crime. With approximately 200 of the false applications, Paul submitted unauthorized copies of a certification he had obtained from the U.S. Attorney’s Office (USAO) for the Southern District of Indiana in 2013, using the certification without the USAO’s knowledge to falsely claim that the applicant had provided substantial assistance in a criminal prosecution. In total, Paul charged his clients approximately $3,000 per application.
HSI investigated the case. Trial Attorneys Molly Gaston, Peter M. Nothstein, and Amanda Vaughn of the Criminal Division’s Public Integrity Section are prosecuting the case.
Individuals who believe they may have been victims of the scheme described above or who have information about this matter can contact the Department of Justice by phone at (202) 514-1412.
Hoover Man Sentenced to Prison for Fraud Against Employers and UA Band Support GroupRead the Press Release
TUSCALOOSA – A federal judge today sentenced a Hoover man to more than two years in prison for stealing money from two former employers and a non-profit organization that supported the University of Alabama’s Million Dollar Band, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
U.S. District Court Judge L. Scott Coogler sentenced RANDALL SHO WOODS, 33, to two years and three months in prison on two counts of wire fraud and one count of bank fraud. Woods pleaded guilty to the charges in June.
“This case is yet another example of an employee stealing from a series of employers,” Town said. “Citizens have to trust those with access to bank accounts and confidential business information and when that trust is breached, there needs to be dire consequences.”
Ingram’s Accounting & Financial Management Inc. in Tuscaloosa had employed Woods as a staff accountant. While working at the business, Woods fraudulently charged more than $30,000 on corporate credit card accounts for personal expenses, according Woods’ guilty plea. Another company, Birmingham-based State Traditions, had previously employed Woods as an account clerk. While at State Traditions, Woods engaged in numerous fraudulent activities, including stealing from the company’s Pay-Pal account and forging the endorsement of one of State Traditions’ owners on multiple checks. Combined, Woods stole more than $150,000 from State Traditions, according to his plea. Finally, while Woods served as treasurer of the Million Dollar Band Association, he stole more than $28,000 by writing checks payable to himself, according to his plea.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark prosecuted.
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Honduran National Sentenced for Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans, announced that LUIS ALONSO MUNOZ-MADRID, age 35, a citizen of Honduras, was sentenced today after previously pleading guilty to being in the United States illegally.
U.S. District Judge Nannette Jolivette Brown sentenced MUNOZ-MADRID to time served and ordered that he be remanded to the U.S. Marshals Service where he would then be surrendered to immigration authorities pursuant to an ICE detainer.
According to the court documents, on August 29, 2017, MUNOZ-MADRID was found in the Eastern District of Louisiana after having been previously deported from the United States on December 14, 2011.
Acting U.S. Attorney Evans praised the work of the Immigration and Customs Enforcement in investigating this matter.
Honduran Man Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Leonel Antonio Rodriguez Ayala, age 29, and a citizen of Honduras, pled guilty today to illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Rodriguez Ayala admitted that he was removed from the United States to Honduras on October 3, 2013, and that he returned to the United States without permission following the 2013 removal. On October 24, 2017, ICE Officers arrested Rodriguez Ayala in Saratoga Springs, New York.
Rodriguez Ayala faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States Judge Lawrence E. Kahn on March 29, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by ICE-ERO and prosecuted by Assistant United States Attorney Edward P. Grogan.
Harrisburg Man Indicted on Firearms ChargeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daryl Davis, age 20, of Harrisburg, Pennsylvania, was indicted on November 29, 2017, by a federal grand jury on a firearms charge.
According to United States Attorney David J. Freed, the indictment alleges that on September 15, 2017, in Harrisburg, Davis unlawfully possessed a Taurus .40 caliber pistol as a previously convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg City Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is ten years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Hamilton Township Man Charged with Distributing Child Pornography of Five Year OldRead the Press Release
CINCINNATI – Jake M. Damron, 25, of Loveland, Ohio, was arrested yesterday and charged with receipt and distribution of child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Hamilton Township Police Chief Scott Hughes and the FBI’s Child Exploitation Task Force announced the charge.
Damron was charged by a criminal complaint that was unsealed today at his initial appearance in federal court.
According to the affidavit filed in support of the complaint, Hamilton Township Police received a report on November 20 that Damron had taken pornographic pictures of a five year old to whom he had access. It was reported that Damron was trading images of the victim for other child pornography via the Kik messenger app.
During an interview with FBI agents, Damron confirmed that he had taken sexually explicit photographs of the five year old. He stated this was the only victim he had photographed and that he had “probably” taken them due to easy access.
Receipt and distribution of child pornography in this case is punishable by a range of five to 20 years in prison.
“I commend the investigation by the FBI and the Hamilton Township Police, particularly the speed with which they were able to act,” said U.S. Attorney Glassman. “This kind of close cooperation between federal and local law enforcement partners helps make urgent action possible.” U.S. Attorney Glassman further commended Assistant United States Attorney Kyle J. Healey, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Government Contractor Convicted of Major Fraud against the United StatesRead the Press Release
Memphis, TN – After two days of the trial before U.S. District Judge John T. Fowlkes, Jr., the defendantM. Cleve Collins entered a plea of guilty to the indictment charging him with one count of major fraud against the United States. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the conviction today.
According to the indictment, M. Cleve Collins, aka Milton Cleve Collins aka Cleve Collins, 54, executed a scheme to defraud the United States on a construction contract valued at approximately one and one-half million dollars administered by the General Services Administration for the replacement of the roof and the air conditioning system at the Ed Jones Federal Courthouse and Post Office in Jackson, TN.
As part of the scheme to defraud, Collins caused the roofing subcontractor, a small Memphis-area business, to perform work for which he was never fully paid. Additionally, Collins filed false and fraudulent certifications with the U.S. Government indicating he had, in fact, paid the subcontractor. The value of the funds obtained because of this scheme was over $580,000.
"As the legal representative of the United States of America, it is the priority and duty of the U.S. Attorney’s Office to safeguard taxpayer funds, and to promote the responsible use and stewardship of such government resources for the benefit of our nation and our citizens. The major fraud committed by the defendant in this case is a serious crime of dishonesty and deceit that strikes at the very heart of those national interests, and will not be tolerated. The GSA and the FBI are to be commended for their diligent investigative work in uncovering and exposing this fraud, and I am pleased that we have achieved justice by holding the defendant accountable under the law," said D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee.
On November 17, 2016, Collins was indicted on one count of violation of major fraud against the United States. The sentencing hearing is set for March 1, 2018. The maximum penalty for major fraud against the United States is not more than 10 years, not more than a $5,000,000 fine, 3 years supervised release and a special assessment of $100.
"Federal contractors are obligated to follow through on their promises to make payments to their subcontractors," said GSA Inspector General Carol Fortine Ochoa. "When contractors fail to meet their obligations, we will hold them accountable."
"The FBI takes particular interest in cases where individuals, for their own personal benefit, use deceit and fraud to line their pockets," said Michael T. Gavin, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. "Fraud has a negative and long lasting impact on the community, and the honest and law abiding citizens who are fed up with the likes of those who, motivated merely by greed, violate the law, should be assured by this conviction that the FBI is committed to work closely with its law enforcement partners to vigorously pursue anyone who commits such crimes."
This case was investigated by Special Agent Steve Heckler of the General Services Administration, Office of the Inspector General and Special Agent Brent Hayden of the FBI. Assistant U.S. Attorney Tony Arvin is prosecuting this case on the government’s behalf.
Georgia Man Sentenced to over 12 Years for Possessing Child Pornography and Failing to Register as a Sex OffenderRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that William Curtis Oliver, 53, of Dover-Foxcroft, Maine and formerly of Dougherty County, Georgia, was sentenced today in U.S. District by Judge John A. Woodcock, Jr. to 151 months in prison and 20 years of supervised release for possessing child pornography and failing to register as a sex offender. Oliver pleaded guilty to failing to register as a sex offender on December 13, 2016; he pleaded guilty to possessing child pornography on June 8, 2017.
Court records reveal that in January 2016, a detective with the Rosenberg, Texas police department who was affiliated with the Houston Internet Crimes Against Children Task Force, was monitoring certain internet sites. The detective was working in an undercover capacity and posing as a 14-year-old female child (“UC”). On January 27, 2016, the defendant wrote to the UC about traveling from Maine to see the UC and have sex. Over the next few weeks, the defendant sent several text messages to the UC. On about February 2, 2016, the defendant sent several images of prepubescent girls engaged in sexually explicit conduct to the UC.
The defendant has been in custody since his arrest on September 15, 2016, following a related investigation by federal and state authorities that revealed that the defendant had been convicted of child molestation in Georgia and had moved to Maine in December 2015 without complying with federal sex offender registry requirements.
In imposing sentence, Judge Woodcock said: “The need to protect the public from this defendant is clear.”
The investigation was conducted by the Rosenberg, Texas Police Department; the United States Marshal’s Service; Immigration and Customs Enforcement-Homeland Security Investigations; the U.S. Marshal’s Service, and the Dover-Foxcroft Police Department.
Franklin, Tennessee Man Sentenced to Federal Prison for Transporting Illegal AlienRead the Press Release
Ronald Edward Strickland, 69, of Franklin, Tenn., was sentenced today in U.S. District Court, to 30 months in prison, followed by 3 years of supervised release, for smuggling a Honduran woman into the United States, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
Strickland was also ordered to pay a $75,000 fine by U.S. District Judge Sean Cox, who remarked that Strickland was a sexual predator who preys on young and vulnerable women and that he gave the families money so that they would allow him to have sex with their daughters.
Strickland, a retired Tennessee Highway Patrol sergeant, was arrested on a criminal complaint on August 1, 2016, and indicted on August 31, 2016. He pleaded guilty to the charge on June 20, 2017.
“The self-serving actions of this individual not only violated our nations’ immigration laws but placed the lives of vulnerable people in grave danger,” said U.S. Attorney Cochran. “We will continue to work closely with Homeland Security Investigations to aggressively pursue those who facilitate the illegal entry of persons into the U.S.”
According to court documents, in early 2016, Strickland devised a plan to smuggle a 22- year-old female from Honduras into the United States. Strickland texted the woman on January 7, 2016, about uniting with him and engaging in a sexual relationship. Strickland then began a series of text communications with an individual in Honduras and others, in which he discussed smuggling the woman into the United States. Strickland maintained the text communications, monitoring the progress of the woman’s journey, until he was notified that the woman had arrived in Houston, Texas.
Additional testimony and evidence introduced during court proceedings established that Strickland caused the woman to attempt to enter the U.S. twice before her third successful entry. He monitored her progress through social media and was aware of the dangers she faced during the journeys, including becoming lost in the desert for days in the middle of the summer with no supplies and being injured after having to jump from a train. During one of the woman’s journeys, Strickland messaged a family member and stated that his “friends” were under control of the Zetas (a violent Mexican criminal organization) and commented that it would be better if the women were caught by immigration officials. During another instance, the woman was not answering Strickland’s phone calls and Strickland threatened that if she had used him, he would obtain an arrest warrant against her alleging that she had stolen money from him and that would cause her to be put in jail and deported.
In July 2016, Strickland drove to Houston, Texas, where he picked up the woman and drove her to his home in Franklin, Tenn.
Acting on a tip, on July 22, 2016, Homeland Security Investigations (HSI) agents went to Strickland’s Franklin home, where they located the 22-year-old female. The subsequent investigation determined that the woman had been illegally smuggled into the United States and that Strickland had paid a coyote $8,000 to smuggle her from Honduras to the United States. The investigation also determined that Strickland maintained an apartment in Honduras and travelled there on a regular basis.
Assistant Special Agent in Charge Robert Hammer, who oversees HSI operations in Tennessee said, “HSI is committed to aggressively investigating those individuals that attempt to smuggle women into the country and illegally harbor them in their homes.”
In considering enhancements to the sentence, Judge Cox found that the perils of the woman’s journey were reasonably foreseeable to Strickland and that he was responsible for intentionally or recklessly creating a substantial risk of death or bodily injury to the woman being smuggled. Judge Cox particularly noted that she was under the control of armed smugglers and gang members; that women in her group were robbed and sexually molested; that she had to jump from a moving train; and that her group was sent into the desert alone, without food or water.
This case was investigated by Homeland Security Investigations and was prosecuted by Assistant U.S. Attorneys Lynne T. Ingram and Henry Leventis.
Franklin County Man Charged with Dealing Heroin, Fentanyl, Cocaine that Resulted in DeathRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged David L. Dobbins, 38, of Urbancrest, Ohio, with seven charges related to distributing heroin, fentanyl and cocaine – including distribution that resulted in death – in a superseding indictment returned here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and Grove City Police Chief Jeffrey A. Pearson announced the charges.
The superseding indictment alleges that in February, Dobbins distributed heroin, cocaine and fentanyl that caused the death of at least one known individual. The victim was found dead at the Star City Inn in Grove City.
Dobbins is also charged with five counts of possession with intent to distribute the controlled substances and one count of possession of a firearm in furtherance of drug trafficking.
Dobbins was arrested April 14 and remains in custody. He was charged by an original indictment in October and this superseding indictment adds the charge of distributing heroin, fentanyl and cocaine that resulted in death.
Distributing narcotics that result in death is a federal crime that carries a potential sentence of 20 years to life in prison. Each possession with the intent to distribute count is punishable by up to 20 years in prison. Possessing a firearm while committing a drug trafficking crime is punishable by a range of seven years to life in prison, to be served consecutive to any other sentence.
U.S. Attorney Glassman commended the investigation of this case by the DEA and Grove City Police, and Assistant United States Attorney Timothy D. Prichard, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Fort Peck Meth Dealer Sentenced to PrisonRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that Mauri Gourneau was sentenced to 40 months in prison, four years of supervised release, and a $100 special assessment. U.S. District Judge Brian Morris presided over the hearing.
Gourneau previously entered a guilty plea to possession with intent to distribute methamphetamine. In April 2017, Gourneau was stopped by the Montana Highway Patrol on US Highway 2. Following a search of her vehicle and possessions, Gourneau was found in possession of a digital scale and a plastic baggie containing 76.7 grams of pure methamphetamine. Gourneau was selling methamphetamine on the Fort Peck Indian Reservation, primarily in Poplar.
In a sentencing memorandum filed in federal court, federal prosecutors noted, “The distribution of methamphetamine is crippling communities, including the Indian reservations. Possessing with the intent to distribute methamphetamine is an offense against society as a whole and the mere existence of methamphetamine is detrimental.” It continued “[Gourneau’s] possession of over 70 grams of pure methamphetamine in alarming considering how many people could purchase from her and get high.”
Judge Morris sentenced Gourneau to over three years in federal prison, with four years of supervised release to follow. Because there is no parole in the federal system, Gourneau will likely serve all of the time imposed by the court. In the federal system, Gourneau does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The Gourneau case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, Fort Peck Tribes Department of Law and Justice, Roosevelt County Sheriff’s Office, and other federal, state, and local agencies.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Former State Senator Pleads Guilty to Child Sex TraffickingRead the Press Release
Oklahoma City, Oklahoma – RALPH ALLAN LEE SHORTEY, 35, of Oklahoma City, pleaded guilty today to child sex trafficking, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On September 5, 2017, a federal grand jury returned a four-count indictment against Shortey, who was an Oklahoma State Senator at the time of the alleged offenses. Counts 1 and 2 charged him with using a facility of interstate commerce on October 10 and 15, 2013, to transport child pornography. In particular, these child pornography counts alleged Shortey used his smartphone to send a video involving a prepubescent girl and videos involving young boys from his AOL email address to a Hotmail address and a Yahoo! address. Count 3 alleged Shortey produced child pornography by persuading a minor identified as John Doe to send him at least one image of Doe’s penis. This count alleged Shortey began communicating with Doe in February 2016 on Kik, a social media application, and that the production of child pornography took place between February 14, 2016, and March 8, 2017.
Count 4 charged Shortey with child sex trafficking for soliciting a minor to engage in a commercial sex act on March 8 and 9, 2017. According to the indictment, Doe advised Shortey via Kik on March 8 that he needed money for spring break. Shortey is alleged to have replied: "I don’t really have any legitimate things I need help with right now. Would you be interested in 'sexual' stuff?" The indictment stated that after Doe responded "yes," the Kik conversation included explicit references to sex acts. The indictment further alleged that just after midnight on March 9, Shortey drove Doe to a Super 8 Motel in Moore, Oklahoma, where Shortey rented a room with his credit card. Based on information provided by Doe’s father, officers of the Moore Police Department knocked on the motel room door at approximately 1:00 a.m. and allegedly discovered Doe with Shortey, whose backpack contained an open box of condoms.
This afternoon Shortey pleaded guilty to Count 4, the child-sex-trafficking count. In particular, he admitted to U.S. District Judge Timothy D. DeGiusti that he solicited Doe, who was a minor, to engage in a commercial sex act in and affecting interstate commerce, after having had a reasonable opportunity to observe Doe. The United States has agreed to dismiss the remaining three counts at the time of sentencing. At the conclusion of the hearing, the court ordered that Shortey be detained in the custody of the U.S. Marshals Service until sentencing, which will take place in approximately 90 days.
Shortey faces a mandatory minimum sentence of ten years in prison. He could receive a maximum sentence of life in prison. He will serve a term of supervised release after incarceration of at least 5 years and up to life and could be fined up to $250,000. He will also be required to pay restitution and a $5,000 special assessment.
This case is the result of an investigation by the Federal Bureau of Investigation and the Moore Police Department, with assistance from the Cleveland County District Attorney’s Office and the Oklahoma State Bureau of Investigation. Assistant U.S. Attorneys K. McKenzie Anderson and Brandon Hale are prosecuting the case. Reference is made to court filings for further information.
Former Postal Employee Sentenced to Prison and Ordered to Pay Almost $1.0 Million for Fraudulently Obtaining Workers' Compensation BenefitsRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that Deborah Joy Durand, a 55-year-old resident of Fruitland, Idaho, was sentenced to 15 months in prison, two years of supervised release, and ordered to pay $903,316.48 in restitution and forfeiture. U.S. District Court Judge Brian Morris Morris presided over the sentencing hearing.
At trial, the government presented the following evidence. Durand had a back injury from her job at the Post Office. She had back surgery and was unable to work for a period of time. But instead of returning to work when capable, Durand obtained total disability status. Special Agents from the U.S. Postal Service Office of Inspector General obtained evidence that Durand was feeding horses, lifting hay bales, jogging in the mornings, clearing land, running chainsaws, removing stumps from fallen trees, building fences, mowing the lawn every week, riding horses twice a week, and many other physically challenging activities.
Durand also participated in other physical activities including a lengthy three-day kayaking trip where she paddled approximately 30 miles in open ocean water, among other strenuous physical activities. Durand claimed she could not sit or stand for long, and she was “totally sedentary.” She even claimed she was unable to work in any capacity.
At trial, Durand was convicted of four counts of fraud related to obtaining workers’ compensation benefits. In total, Durand received over $664,828.16 based on her claims for workers’ compensation. Of that amount, she received $238,488.32 for wages, despite having the ability to work at least a desk job at the Post Office.
U.S. Attorney Kurt Alme stated, “The Federal Worker’s Compensation Program is there to help the truly injured. The public should be assured that individuals who defraud that Program in Montana will be held accountable. I applaud the efforts of the USPS Office of Inspector General and Ryan Weldon of our office in bringing this case to justice.”
This case was investigated by the USPS Office of Inspector General. Acting Executive Special Agent-in-Charge Jeff Krafels said, “The majority of Postal Service employees are dedicated, hardworking, and trustworthy professionals who would never consider engaging in criminal conduct. However, when attempts to defraud the Federal Workers’ Compensation Program arise, those acts will not be tolerated, and they will be vigorously investigated by the USPS Office of Inspector General. The Workers’ Compensation Program is designed to ensure that individuals injured during the performance of their duties receive appropriate medical care and compensation. The conviction and sentence in this case are a result of the commitment between the United States Attorney’s Office and the USPS Office of Inspector General, to ensure the integrity of the Federal Workers’ Compensation Program, and to hold those accountable for defrauding the program.”
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Durand will likely serve all of the time imposed by the court. In the federal system, Durand does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
Former Police Officer Pleads Guilty to Exploiting his Authority by Sexually Assaulting an IndividualRead the Press Release
Jerry Lynn Gragg, 40, a former police officer with the Savanna Police Department in Pittsburg County, Oklahoma, pleaded guilty today in federal court in Muskogee, Oklahoma, to one count of violating the civil rights of a female whom he sexually assaulted during a routine traffic stop.
According to court documents, on Jan. 21, 2017, Gragg, while on-duty, stopped a vehicle during the early hours of the morning while it was still dark outside. After approaching the vehicle, Gragg brought the female driver back to his marked patrol unit and directed her to sit in the front passenger seat. Given the coercive power of Gragg’s position as a law enforcement offer, and the physical disparity in size between Gragg and the victim, she could not escape from the patrol car. Thereafter, Gragg caused the victim to perform a sexual act on him against her will. Gragg admitted that he knew what he was doing was wrong and against the law, yet he did so anyway. Gragg further admitted that his acts included aggravated sexual abuse, which under federal law, requires force or putting the victim in fear of bodily injury, kidnapping, or death.
“The Department of Justice will not tolerate law enforcement officers who exploit their authority to sexually abuse individuals in their custody, thinking their actions will go without consequence because of the power they wield,” said Acting Attorney General John M. Gore. “The Civil Rights Division will continue to vigorously prosecute these cases.”
"I commend the strength and courage exhibited by the victim of this heinous act to come forward and provide law enforcement with the information necessary to hold the Defendant accountable for violating his oath to protect and serve his community." said U.S. Attorney Brian Kuester. "While the majority of law enforcement officers follow the laws they are sworn to uphold, this Office will continue to investigate and prosecute those who choose otherwise."
“This deliberate abuse of authority is a disgrace and embarrassment to all members of the law enforcement community,” said FBI’s Oklahoma City Division Special Agent in Charge Kathryn Peterson. “There is an added sense of betrayal when a fellow law enforcement official preys on the citizens he has sworn to protect.”
The terms of the plea agreement require Gragg to forfeit his law enforcement certification and comply with federal and state sex offender registration requirements. A sentencing hearing has not been set.
This case is being investigated by the Oklahoma City Division of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Pittsburg County District Attorney’s Office and the Savanna Police Department. It is being prosecuted by Assistant United States Attorney Shannon Henson of the Eastern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Police Officer Pleads Guilty to Exploiting His Authority by Sexually Assaulting an IndividualRead the Press Release
MUSKOGEE, OKLAHOMA – Jerry Lynn Gragg, 40, a former police officer with the Savanna Police Department in Pittsburg County, Oklahoma, pleaded guilty today in federal court in Muskogee, Oklahoma, to one count of violating the civil rights of a female whom he sexually assaulted during a routine traffic stop.
According to court documents, on January 21, 2017, Gragg, while on-duty, stopped a vehicle during the early hours of the morning while it was still dark outside. After approaching the vehicle, Gragg brought the female driver back to his marked patrol unit and directed her to sit in the front passenger seat. Given the coercive power of Gragg’s position as a law enforcement offer, and the physical disparity in size between Gragg and the victim, she could not escape from the patrol car. Thereafter, Gragg caused the victim to perform a sexual act on him against her will. Gragg admitted that he knew what he was doing was wrong and against the law, yet he did so anyway. Gragg further admitted that his acts included aggravated sexual abuse, which under federal law, requires force or putting the victim in fear of bodily injury, kidnapping, or death.
“The Department of Justice will not tolerate law enforcement officers who exploit their authority to sexually abuse individuals in their custody, thinking their actions will go without consequence because of the power they wield,” said Acting Assistant Attorney General John M. Gore. “The Civil Rights Division will continue to vigorously prosecute these cases.”
"I commend the strength and courage exhibited by the victim of this heinous act to come forward and provide law enforcement with the information necessary to hold the Defendant accountable for violating his oath to protect and serve his community." said U.S. Attorney Brian Kuester. "While the majority of law enforcement officers follow the laws they are sworn to uphold, this Office will continue to investigate and prosecute those who choose otherwise."
“This deliberate abuse of authority is a disgrace and embarrassment to all members of the law enforcement community,” said FBI’s Oklahoma City Division Special Agent in Charge Kathryn Peterson. “There is an added sense of betrayal when a fellow law enforcement official preys on the citizens he has sworn to protect.”
The terms of the plea agreement require Gragg to forfeit his law enforcement certification and comply with federal and state sex offender registration requirements. A sentencing hearing has not been set.
This case is being investigated by the Oklahoma City Division of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Pittsburg County District Attorney’s Office and the Savanna Police Department. It is being prosecuted by Assistant United States Attorney Shannon Henson of the Eastern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Shannon Henson represented the United States.
Former Federal Agent Pleads Guilty to Accepting Bribes to Dismiss Indictment Against Colombian Narcotics KingpinRead the Press Release
A former U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Special Agent pleaded guilty today to accepting bribes in exchange for securing the dismissal of a drug trafficking indictment filed against a Colombian cocaine trafficker, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
According to admissions in his plea agreement, Christopher V. Ciccione II, 52, of Phoenixville, Pennsylvania, accepted cash and other things of value and used his official position to cause a drug trafficking indictment against Colombian national Jose Bayron Piedrahita Ceballos to be dismissed and to obtain official authorization for Piedrahita and his family to enter the United States. Piedrahita and Colombian national Juan Carlos Velasco Cano, 49, gave Ciccione approximately $20,000 in cash, as well as dinner, drinks and prostitution during an extended hotel stay in Bogota, Colombia, in exchange for official acts that resulted in the dismissal of the indictment against Piedrahita. Velasco, who previously pleaded guilty, served as the intermediary between Ciccione and Piedrahita.
Ciccione admitted that in furtherance of this scheme to obstruct justice, he misled the U.S. Attorney’s Office and HSI management and altered law enforcement records to represent to decision makers that Piedrahita was a “former” suspect of a closed investigation, rather than a “current” subject, who was “never positively identified” and that his case should be dismissed— all while maintaining contact with Piedrahita. Ciccone also falsified the concurrence of several other federal agents and attempted to parole Piedrahita into the United States.
Ciccione will be sentenced on Feb. 9, 2018, before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida. Piedrahita is currently incarcerated in the Republic of Colombia.
The U.S. Department of the Treasury’s Office of Foreign Assets Control designated Piedrahita as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act on May 3, 2016.
ICE’s Office of Professional Responsibility, Department of Homeland Security’s Office of Inspector General and the FBI investigated the case. The Criminal Division’s Office of International Affairs, the Office of the Judicial Attaché in Colombia and the Drug Enforcement Administration provided valuable assistance to the investigation. The Colombian Attorney General’s Office also provided invaluable support. Trial Attorneys Luke Cass and Jennifer A. Clarke of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former Bank Executive Charged for Role in $15 Million Bank Loan SchemeRead the Press Release
A former Kansas bank executive was charged in an indictment filed today for his participation in a bank fraud scheme to obtain a $15 million construction loan from 26 Kansas banks based on allegedly false information contained in the loan documents.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge David Anderson of the Federal Deposit Insurance Corporation Office of Inspector General’s (FDIC-OIG) Kansas City Regional Office, Special Agent in Charge Karl A. Stiften of the Internal Revenue Service Criminal Investigation’s (IRS-CI) St. Louis Field Office, Special Agent in Charge Darrin E. Jones of the FBI’s Kansas City Field Office and Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) Central Region Office made the announcement.
Troy A. Gregory, 50, of Lawrence, Kansas, was charged in an indictment filed in the District of Kansas with one count of conspiracy to commit bank fraud, four counts of bank fraud, and two counts of false statements.
According to the indictment, Gregory was a bank executive and loan officer who had made millions of dollars in loans to a group of borrowers who were struggling to make payments on the loans. The indictment alleges that beginning in approximately late 2007, Gregory began the process of making a $15.2 million construction loan to build an apartment complex to that same group of borrowers. The indictment further alleges that Gregory’s bank shared this loan with 25 other Kansas banks. Gregory allegedly made or caused others to make false statements to the banks about the strength of the borrowers, the debt status of the apartment property and the existence of approximately $1.7 million in certificates of deposit for collateral on the loan, all to get the loan approved. Instead of using the loan funds promised for building the apartments, Gregory allegedly immediately diverted over $1 million of the loan to pay for part of the certificates of deposit pledged as collateral, pay off debt on the apartment property and make payments on unrelated loans. Other Kansas banks that shared in this loan allegedly would not have participated in the loan without the false representations and promises.
The indictment alleges that the banks ultimately wrote off millions of dollars on the $15.2 million construction loan.
An indictment is merely an allegation and all defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The FDIC-OIG, IRS-CI, FBI and FHFA-OIG are investigating this matter. Trial Attorney Andrew R. Tyler and Senior Litigation Counsel David A. Bybee of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country, focusing on cases of national significance and international scope. Fraud Section prosecutors have vast experience in investigating and prosecuting securities and financial fraud, health care fraud and foreign corruption. The Section is routinely the national leader in large, sophisticated white collar investigations and prosecutions, frequently in partnership with U.S. Attorneys’ Offices and in coordination with foreign law enforcement agencies.
Former Baltimore City Sergeant Indicted for Planting EvidenceRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury has indicted former Sergeant Wayne Earl Jenkins, age 37, of Middle River, Maryland, today on charges relating to a 2010 arrest based in part on planted evidence. Jenkins has been charged with Destruction, Alteration, or Falsification of Records in Federal Investigations and Deprivation of Rights Under Color of Law.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the five-count indictment, on April 28, 2010, Jenkins, driving an unmarked Baltimore Police Department (BPD) vehicle with Officer #2 as his passenger, and Officer #1, who was also driving an unmarked BPD vehicle, engaged in a vehicle pursuit of a car driven by U.B. B.M. was a passenger in the car driven by U.B.
At the intersection of Belle Avenue and Gwynn Oak Avenue, U.B., who was driving at a high speed, struck a car entering the intersection. The impact of the collision was so great that the car was pushed onto the front porch of a row house on the corner of the intersection. The car was operated by an elderly man whose wife was a passenger. The elderly driver was trapped in the car after the collision and died later that day.
The indictment alleges there were no drugs in the car driven by U.B. prior to the crash. After the crash, and after U.B. and B.M. had been arrested, Jenkins told Officer #2 to call a Sergeant who was not at the scene because he had the “stuff” in his car.
After emergency medical personnel arrived on the scene, Officer #2 returned to Jenkins who was standing near U.B. and B.M.’s car. At that time, Jenkins told Officer #2 that the “stuff” was in the car, referring to U.B. and B.M.’s car, and that Jenkins was going to send Officer #1 to the car to find it because Officer #1 was “clueless.” Sometime later, Officer #2 saw Officer #1 searching the car. Officer #1 signaled that he had found something.
Officer #1 found approximately 28 grams of heroin that Jenkins had planted in the vehicle. Later that day, Jenkins authored a false Statement of Probable Cause where he claimed that “32 individually wrapped pieces of plastic containing a tan powder substance each weighing approximately one gram (all of which was suspected high purity heroin)” was recovered from U.B.’s car by Officer #1. The indictment charges that Jenkins knew the heroin in U.B.’s car had been planted.
Following the incident and arrest, Jenkins listened to recorded jail calls of U.B. and B.M. After having listened to these calls, Jenkins told Officer #2 that U.B. and B.M. were saying that the heroin recovered from the car had been planted on them. Jenkins told Officer #2 that he could not testify if the case went to trial because “something had been put in the car,” referring to the heroin that had been planted in U.B.’s car.
Based on the false police report, U.B. and B.M. were charged with, and imprisoned for, federal drug charges for the heroin that had been planted in U.B.’s car.
Jenkins is presently awaiting trial on January 16, 2018 on criminal racketeering and fraud charges. Jenkins now faces an additional sentence of 20 years in prison for the additional charges. Jenkins remains detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The United States Attorneys Office filed a petition for a writ of coram nobis to vacate the Federal convictions of U.B. and B.M.
PETITION FOR A WRIT OF CORUM NOBIS TO VACATE CONVICTIONS
The United States has filed a petition for a writ of corum nobis in United States v. Burley and Matthews, Cr. No. 11-74-RDB, to vacate the federal drug convictions of Burley and Matthew because they are innocent.
Federal Courts have the power to grant a writ of error coram nobis to vacate a conviction after a sentence has already been served to achieve justice.
On June 10, 2011, Umar Burley and Brent Matthews entered pleas of guilty in United States District Court to charges of possession with intent to distribute heroin despite the fact they knew they were innocent. Both men concluded that in a trial involving a Baltimore Police Department Sergeant’s word against theirs, they would lose.
On August 18, 2011, Burley was sentenced to 15 years in prison on the federal drug charge to run concurrent to his state sentence (10 years) in the vehicular manslaughter case. On September 19, 2011, Matthews was sentenced to 46 months in prison on the federal drug charges with credit for time served since March 4, 2011.
On September 19, 2013, Matthews was placed on supervised release after serving more than two-and-a-half years in federal custody.
During the course of the ongoing investigation of corruption at the Baltimore Police Department, the United States learned that the heroin Jenkins planted was the heroin in Burley’s vehicle. Jenkins did not disclose that the heroin was planted to the prosecutor who was assigned to prosecute Burley and Matthews. On August 23, 2017, the Government moved to reduce Burley’s sentence to time served. After a hearing on August 31, 2017, the Court granted the Government’s motion and Burley was released from prison that day.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who moved to vacate the convictions of Burley and Matthews and are prosecuting the Organized Crime Drug Enforcement Task Force cases against Jenkins and other former officers of the Baltimore City Police Department and Philadelphia Police Department.
Foreign National Pleads Guilty to Transporting Stolen Coins in Interstate and Foreign CommerceRead the Press Release
A dual citizen of Australia and the United Kingdom pled guilty to transporting stolen gold and silver collectible coins in interstate and foreign commerce.
Benjamin G. Greenberg, Acting United States Attorney of the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Thomas Robarge, Special Agent in Charge, United States Coast Guard Investigative Service (CGIS), Southeast Region, made the announcement.
Lewis Bennett, 40, of Delray Beach, pled guilty to one count of transporting stolen property valued at $5,000 or more in interstate or foreign commerce. Sentencing is scheduled for February 12, 2018, before United States District Judge James Lawrence King in Key West, Florida. At sentencing, Bennett faces a statutory maximum of ten years in prison.
According to court documents, including the agreed upon factual proffer, Bennett knowingly transported stolen gold and silver coins from St. Maarten to the United States. In May 2016, Bennett was serving as a crewmember on board a sailing vessel, KITTY R. On or about May 5, 2016, collectible gold and silver coins were stolen from KITTY R while the vessel was located in St. Maarten. Bennett knew the location where the coins were located on KITTY R and filed a police report in St. Maarten concerning the stolen coins.
In the early morning of May 15, 2017, the United States Coast Guard (USCG) received an emergency alert approximately 26 nautical miles from Cay Sal Bank, Bahamas, in international waters. An USCG helicopter ultimately rescued Bennett from a life raft and transferred him to an airport in Marathon, Florida. Bennett reported to the USCG that he had been on board an approximately 40-foot catamaran with his wife, and deployed his life raft after his catamaran began taking on water.
Collectible coins stolen from KITTY R were recovered from Bennett’s life raft and his residence in Palm Beach County, Florida. As of May 15, 2017, the market value of the recovered gold and silver coins was approximately $38,480.00. Bennett had knowingly transported these coins from St. Maarten to the United States.
Mr. Greenberg commended the investigative efforts of the FBI and CGIS in this matter. This case is being prosecuted by Assistant U.S. Attorney Kurt K. Lunkenheimer and Special Assistant U.S. Attorney Emily A. Rose.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Pharmacy and Owner Agree to Pay $170,000 to Resolve Allegations of Fraudulent Claims to Tricare for Compounded MedicationsRead the Press Release
Express Plus Pharmacy, LLC, a pharmacy that operated in Davie, Florida and its owner, Antonio Primo, have agreed to pay $170,000 to resolve allegations that they violated the False Claims Act by submitting fraudulent claims to Tricare for compounded medications such as pain creams, the United States Attorney’s Office announced today.
“This case demonstrates the United States Attorney’s Office’s commitment to combat compounding pharmacy fraud, which targets federal health care programs and especially TRICARE,” said Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida. “Our office will aggressively pursue those who abuse federal health care programs for personal profit.”
As set forth in the settlement agreement between the parties, the United States alleged that, between January and May, 2015, Express Plus Pharmacy knowingly submitted claims to TRICARE for compounded medications that were not reimbursable because they were not issued pursuant to valid physician-patient relationships; the prescriptions were issued after brief phone calls with patients that violated applicable law on telemedicine; the prescriptions were medically unnecessary; and/or the prescriptions were tainted by kickbacks to marketers. This settlement, which was based on the defendants’ ability to pay, resolves these allegations as to prescriptions written by one physician.
“The Defense Criminal Investigative Service is committed to protecting the integrity of the U.S. military health care program to provide top quality medical care to America’s warfighters and their families, while ensuring that health care providers and facilities comply with Federal laws,” said John F. Khin, Special Agent in Charge, DCIS - Southeast Field Office. “DCIS aggressively pursues all available remedies to bring violators to justice. This settlement demonstrates the effectiveness of our investigative efforts.”
This case was developed through an initiative to track and prosecute compounding pharmacies that submitted millions of dollars in improper claims to the TRICARE program. The government estimates that, in 2015, approximately $1.5 billion of tainted and unnecessary compound prescriptions were paid by the government.
The investigation of this case was the result of a coordinated effort by the United States Attorney’s Office for the Southern District of Florida and the U.S. Department of Defense, Defense Criminal Investigative Service. The settlement was negotiated by Assistant U.S. Attorney Susan Torres.
The claims asserted against the defendants are allegations only, and there has been no determination of liability.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Final Two Defendants Plead Guilty in Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — Two Woodland residents pleaded guilty today to a scheme to steal identities from mail obtained by fraudulent vacation holds and mail forwarding requests filed online, U.S. Attorney Phillip A. Talbert announced.
Latomba Bishop, 32, pleaded guilty to mail fraud and aggravated identity theft, and Joshua Yadon, 34, pleaded guilty to conspiracy to obtain mail by fraud.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail and identity theft crimes committed against the public.”
According to court documents, Bishop, Yadon, and Norman Thompson, 36, of Sacramento, conspired to obtain credit cards, checks, and merchandise in victims’ names and then diverted these items from the victims’ true addresses to the conspirators’ addresses using fraudulent vacation holds and mail forwarding requests filed online with the U.S. Postal Service. The defendants were captured on video using fraudulently obtained credit cards at various retailers in the Sacramento area.
For her part, Bishop made a $1,000 online purchase of shoes using a victim’s compromised online merchant account. When the victim reported the fraud and the shipment was canceled, Bishop called the company, posing as the victim, and demanded she be reimbursed for the purchase. Bishop directed the company to mail checks to Bishop’s own address.
According to the plea agreements, on April 19, 2017, Yadon and Bishop bought over $1,000 in merchandise at a home improvement store using a credit card obtained through the scheme.
This case is the product of an investigation by the United States Postal Inspection Service with assistance from the Davis Police Department, Sacramento County Probation, and the Woodland Police Department. Assistant U.S. Attorney Jeremy J. Kelley is prosecuting the case.
On October 5, 2017, co-defendant Thompson was sentenced by U.S. District Judge Troy L. Nunley to three years and 10 months in prison after pleading guilty to conspiring to obtain mail by fraud. He was ordered to pay $38,086 in restitution to victims of the scheme.
Yadon and Bishop are scheduled to be sentenced by Judge Nunley on February 15, 2018. Yadon faces a maximum statutory penalty of five years in prison and a $250,000 fine. Bishop faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal jury convicts man for trafficking methamphetamine, firearms chargesRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a federal jury found a Clayton man guilty of possessing methamphetamine with intent to distribute and firearms charges.
Robert L. Snyder, 41, of Clayton, La., was found guilty of one count of possession with intent to distribute methamphetamine, one count of possession of an unregistered firearm, and two counts of possession of a firearm by a convicted felon. United States District Judge Dee D. Drell presided over the trial. The defendant’s trial started Monday and ended Wednesday with the jury returning the guilty verdict after deliberating for about three hours. Evidence admitted at trial revealed that law enforcement agents learned that illegal drugs were being sold out of a Clayton residence. After a search of Snyder’s home, police found more than 100 grams of methamphetamine along with numerous firearms, $1,600 in cash and $10,000 in money orders. Law enforcement revisited the property on March 4, 2014 and found more firearms in the home. In total, law enforcement found 15 weapons and ammunition. Among the firearms was a .22 caliber rifle with the serial number removed.
Snyder faces 10 years to life in prison for the methamphetamine count, up to 10 years in prison for possession of an unregistered firearm, and up to 10 years in prison for each count of possession of a firearm by a convicted felon. He also faces not less than five years of supervised release, a $10 million fine and forfeiture of items seized during the investigation. The court set sentencing for March 6, 2018.
The U.S. Marshals Service, FBI, ATF and the Concordia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Tennille M. Gilreath and Mary J. Mudrick are prosecuting the case.
Federal Jury Finds Man Guilty of Sex Trafficking of A MinorRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, a federal jury in New Bern found WILLIAM MAURICE SADDLER guilty of conspiracy to commit sex trafficking of a minor and sex trafficking by force, fraud or coercion and of a minor.
SADDLER was named in an Indictment on October 5, 2016 that included four other codefendants who previously pled guilty. SADDLER was found guilty of Counts One and Two in the indictment.
The evidence presented at trial showed: The victim was fifteen years old. He began a dating and then a sexual relationship with her. One day, SADDLER gave her crack, took her to a Mexican migrant camp near Wilson, North Carolina, and forced her to prostitute. After that, SADDLER took her to Mexican migrant camps near Wilson numerous times to prostitute. SADDLER abused and threatened the victim when she said that she did not want to prostitute.
At sentencing, SADDLER faces a maximum sentence of not less than 15 years in prison up to life imprisonment and a fine of up to $500,000.
Investigation of this case was conducted by the Federal Bureau of Investigation, the Raleigh Police Department, the N.C. State Bureau of Investigation, the Wilson Police Department and the Wilson County Sheriff’s Office. Assistant United States Attorneys Erin C. Blondel and Eleanor Morales represented the United States.
Federal Indictment Charges Three North Minneapolis Gang Members in Violent Drug Trafficking ConspiracyRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced a federal indictment charging three members of the North Minneapolis-based 1-9 Block Dipset Gang with crimes related to violent gang activity, including conspiracy, possession and distribution of heroin, and illegal possession of firearms and ammunition. DOMONICK DESHAY WRIGHT, a/k/a “Freaky,” 29, BRIAN FUNTANOUS MACK, a/k/a “B-Mack,” 32, and HAKEEM MALIK DONTAE FLAX, a/k/a “Keem,” 31, are currently in custody and are awaiting court appearances before a United States Magistrate Judge.
According to the indictment, from at least August 2016 through the present, the defendants maintained active membership in the 1-9 Block Dipset Gang, with the purpose of making money for the gang through criminal acts, including distribution of heroin. As part of their heroin distribution scheme, WRIGHT, MACK, FLAX and other members of the gang possessed, used and carried firearms in order to protect themselves from rival gang members and maintain drug distribution territory. WRIGHT, MACK and FLAX have prior felony offenses that make them ineligible to possess firearms.
According to the indictment, members of the 1-9 Block Dipset Gang were involved in a violent gang war with rival North Minneapolis gangs, including the Tre Tre Crips and the Young-N-Thuggin gangs, which resulted in the shooting deaths of gang members on both sides of the conflict. Disputes over gang territories and retaliation for prior acts of violence also contributed to the gun violence. As an example, on August 5, 2017, FLAX shot and killed a member of the rival Tre Tre Crips gang in a parking lot outside of a North Minneapolis restaurant.
This indictment is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.
This case is being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.
Defendant Information:
DOMONICK DESHAY WRIGHT, a/k/a “Freaky,” 29
Brooklyn Center, Minn.
Charges:
- Conspiracy to possess a firearm in furtherance of a drug trafficking crime, 1 count
- Conspiracy to distribute heroin, 1 count
- Possession with intent to distribute heroin, 1 count
- Felon in possession of a firearm, 2 counts
- Possession of a firearm in furtherance of a drug trafficking crime, 1 count
BRIAN FUNTANOUS MACK, a/k/a “B-Mack,” 32
Minneapolis, Minn.
Charges:- Conspiracy to possess a firearm in furtherance of a drug trafficking crime, 1 count
- Conspiracy to distribute heroin, 1 count
- Possession with intent to distribute heroin, 1 count
- Felon in possession of a firearm, 3 counts
- Possession of a firearm in furtherance of a drug trafficking crime, 1 count
HAKEEM MALIK DONTAE FLAX, a/k/a “Keem,” 31
Vadnais Heights, Minn.
Charges:- Conspiracy to possess a firearm in furtherance of a drug trafficking crime, 1 count
- Conspiracy to distribute heroin, 1 count
- Felon in possession of ammunition, 1 count
- Discharge of a firearm in furtherance of a drug trafficking crime, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Federal Indictment Charges Four in Furanyl Fentanyl Distribution ConspiracyRead the Press Release
LUBBOCK — Four Lubbock residents have been charged in a federal indictment, unsealed today, with felony offenses stemming from their role in a furanyl fentanyl distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
The defendants made their initial appearances in federal court in Lubbock before U.S. Magistrate D. Gordon Bryant, Jr. and will remain in custody pending trial.
The four-count indictment charges Steven Lawrence Forcum, 32; Krisandrea Monee Dobbs, 31; Peyton Cleveland Wilson, 27; and Ashlyn Paige Utley, 23, with one count of conspiracy to distribute and possess with intent to distribute furanyl fentanyl. In addition, Utley and Wilson are charged with one count of distribution and possession with intent to distribute furanyl fentanyl. Wilson is also charged with one count of possession of a firearm in furtherance of a drug trafficking crime.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
The Drug Enforcement Administration and the Lubbock Police Department are in charge of the investigation.
Assistant U.S. Attorney Russell Lorfing is in charge of the prosecution.
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Federal Grand Jury Indicts Two Men for Child Sex-Trafficking in Madison CountyRead the Press Release
BIRMINGHAM – A federal grand jury late Wednesday indicted a Huntsville man and a Honduran national on sex-trafficking charges involving a minor in Madison County, announced U.S. Attorney Jay E. Town and ICE Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr.
In separate indictments filed in U.S. District Court, BILLY R. EDWARDS, 63, of Huntsville, and DARWIN MOISES AMADOR-ZEPEDA, 38, of Honduras, are charged with commercial sex trafficking, coercion and enticement of a minor to engage in prostitution and sexual exploitation of a child. Edwards also faces additional charges of producing child pornography and being a convicted felon in possession of firearms.
“Sex trafficking and the exploitation of children are among the most heinous acts that too often prey on the youngest and most vulnerable members of our community,” Town said. “Our Human Trafficking Task Force will continue bringing to justice the persons who facilitate these horrific crimes.”
“Sex trafficking of a minor is one of the most reprehensible criminal offenses imaginable,” Parmer said. “Along with law enforcement partners like the Madison County Sheriff's Office, HSI will continue seeking out the facilitators and perpetrators of these heinous crimes to ensure they are brought to justice.”
HSI arrested Edwards Oct. 30 on a criminal complaint charging that he paid Amador-Zepeda more than $20,000 over several years to have sexual relations with a boy who was 16 years old when Amador forced him into the ongoing sexual relationship with Edwards.
According to the indictments, Edwards and Amador-Zepeda both trafficked “Minor Child 1” between December 2014 and January 2017, knowing that the child would be forced or coerced into commercial sex acts. During that time, the two men used cell phones and bank accounts to induce or coerce the child to engage in prostitution, and used a cell phone to induce or coerce the child to engage in sexually explicit conduct in order to photograph the conduct, according to the charges.
Edwards is charged with possessing an Industrial National de Armes .38-caliber revolver, a Jimenez Arms .25-caliber pistol, a Bryco Jennings .380-caliber pistol and a Winchester model 1400 MKII shotgun on Sept. 1, 2017, in Madison County. He was convicted of a felony, conspiracy to commit fraud, in the Northern District of Alabama in 2005, according to the indictment.
Amador-Zepeda has used a number of aliases, according to the indictment, including Darwin M. Amador, Moises Amador, Amador Zepeda-Darwin Moses, Mario Antonio Guillen-Lopez and Mario Guillen-Lopez.
Immigration and Customs Enforcement’s HSI, in conjunction with the Madison County Sheriff’s Department and the Madison County District Attorney’s Office, investigated the case, which Assistant U.S. Attorneys Xavier Carter and Carla Ward are prosecuting.
Fairhaven Man Sentenced for Distributing MethamphetamineRead the Press Release
BOSTON – A Fairhaven man was sentenced yesterday in federal court in Boston for distributing methamphetamine.
Peter Lobo, 54, was sentenced by U.S. District Court Judge Denise J. Casper to five years in prison and three years of supervised release. In July 2017, Lobo pleaded guilty today to one count of distributing methamphetamine.
In late 2016, an undercover agent posing as a Maine methamphetamine dealer met with Lobo, and on Dec. 12, 2016, Lobo distributed a half-pound sample of methamphetamine to the agent. Two days later, the agent paid Lobo $4,000 for the half-pound, and Lobo sold an additional four pounds of methamphetamine to the agent. A subsequent drug analysis determined that the substance consisted of 1,777 grams of 99% pure d-methamphetamine hydrochloride, also known as “Ice.”
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorney Theodore B. Heinrich of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Eric Matthew Reddick Pleads Guilty to Federal Armed Robbery and Firearms ChargesRead the Press Release
ALBUQUERQUE – Eric Matthew Reddick, 22, of Albuquerque, N.M., pled guilty today in federal court to a two-count indictment charging him with violating the Hobbs Act and federal firearms laws. The charges against Reddick arise out of the armed robbery of a convenience store on Oct. 6, 2017, during which Reddick shot and injured two individuals. Reddick entered the guilty plea without the benefit of a plea agreement.
Acting U.S. Attorney James D. Tierney said that Reddick is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The FBI arrested Reddick on Oct. 12, 2017, on a criminal complaint charging him with violating the Hobbs Act by robbing a business engaged in interstate commerce and with discharging a firearm during a crime of violence on Oct. 6, 2017, in Bernalillo County, N.M. According to the criminal complaint, on Oct. 6, 2017, Reddick entered an Albuquerque-area convenience store and placed a pack of gum and a dollar bill on the counter. When the store clerk opened the cash drawer, Reddick pointed a firearm at the store clerk, and demanded and obtained cash from the store clerk. As he left the convenience store, Reddick fired several rounds of ammunition at the store clerk and a witness who was taking photographs of him with a cellular telephone, hitting and injuring both of them.
Later that day, officers of the Albuquerque Police Department (APD) arrested Reddick, who was in the vehicle in which he used to flee from the convenience store, on related state charges, which have been dismissed in favor of federal prosecution. In the vehicle, the officers observed a firearm during an inventory search.
Reddick was subsequently indicted on Oct. 24, 2017, and charged with violating the Hobbs Act by robbing a business engaged in interstate commerce and brandishing and discharging a firearm during and in relation to a crime of violence on Oct. 6, 2017, in Bernalillo County.
At sentencing, Reddick faces a statutory maximum penalty of 20 years in prison on the Hobbs Act charge. Reddick also faces a statutory mandatory minimum of ten years of imprisonment for discharging a firearm during a crime of violence, which must be served consecutive to any sentence imposed on the other charge.
This case was investigated by the Albuquerque office of the FBI and APD. Special Assistant U.S. Attorney Timothy Trembley is prosecuting the case.
El Salvadorian National Pleads Guilty to Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that BENJAMIN GARCIA-VASQUEZ, age 50, a native of El Salvador, pled guilty yesterday to a one-count Indictment charging him with illegal entry of a removed alien.
According to court documents, GARCIA-VASQUEZ was previously removed from the United States on October 26, 2012. GARCIA-VASQUEZ was found in the Eastern District of Louisiana on July 26, 2017, without having received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter the country.
GARCIA-VASQUEZ faces a maximum term of imprisonment of two years in prison, a fine of $250,000, one year of supervised release, and a $100 special assessment fee. U.S. District Judge Susie Morgan set sentencing for January 12, 2018.
Acting U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
East Aurora Man Pleads Guilty for His Role in A Pharmacy RobberyRead 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 Ryan Peltan, 32, of East Aurora, NY, pleaded guilty to brandishing a firearm in furtherance of a crime of violence before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum sentence of seven years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that, on October 24, 2015, the defendant entered Larwood Pharmacy Inc., located at 597 Oakwood Avenue in East Aurora. Armed with a handgun, the defendant directed the pharmacy owner at gun point to give him controlled substances. Peltan also ordered customers to lie on the ground. The defendant then forcibly took numerous bottles of prescription pills and controlled substances and fled the pharmacy. Peltan was subsequently arrested a couple days later in Akron, Ohio, in possession of many of the prescription pills and controlled substances that were taken from Larwood Pharmacy during the robbery.
The plea is the result of an investigation by: the Drug Enforcement Agency and the East Aurora Police Department.
Sentencing is scheduled for March 23, 2018, at 12:30 p.m. before Judge Vilardo.
Durham Man Sentenced in Scheme to Defraud Area BusinessesRead the Press Release
GREENSBORO, N.C. – A Durham resident was sentenced on November 28, 2017, for carrying out a scheme to defraud Durham businesses and aggravated identity theft, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.
GARY PATTERSON, 31, was sentenced to 94 months in federal prison on November 28, 2017, by the Honorable Loretta C. Biggs, United States District Judge for the Middle District of North Carolina. PATTERSON had previously pleaded guilty to charges of wire fraud in violation of Title 18, United States Code, Section 1343, and aggravated identity theft in violation of Title 18, United States Code, Section 1028A(a)(1), in relation to a scheme to defraud Durham businesses by portraying himself as a local clergyman.
Court documents reveal that PATTERSON victimized dozens of small businesses by making numerous fraudulent credit card purchases. PATTERSON made these transactions by convincing merchants to “force” the sale after the worthless and unauthorized credit card presented by PATTERSON was rejected by the bank. A merchant can “force” a transaction where the bank issuing the credit card has rejected the credit card purchase. Normally, the merchant contacts the bank and requests a code to authorize the transaction despite the bank’s rejection of the card.
PATTERSON convinced numerous merchants to force transactions that had been rejected by the card issuer. PATTERSON often presented himself as being a pastor or bishop associated with a Durham church including “Bishop Gary Johnson” and “Pastor Ed Johnson.” Using the “forced” transaction scheme and a variety of stolen credit cards, PATTERSON obtained money, goods and services from the defrauded merchants. In his assumed role as a clergyman, PATTERSON presented merchants with a debit card issued on a closed Bank of America Account in the name of “Second Chance Outreach Ministry.”
As part of his scheme, PATTERSON also represented to auto care businesses that the business had recently repaired a van from the church at which he claimed to serve as a bishop or pastor. He further represented to the auto care shop that the repair work on the church van had been paid for with a personal credit card and that he needed to pay for the work with a church credit card and receive a refund check for the work paid for on the personal credit card. PATTERSON then presented the auto care business with the “Second Chance Outreach Ministry” debit card to pay for the repair of the church van and instructed the auto care business to “force” the transaction when the sale was declined. After the transaction was forced, PATTERSON then instructed the auto care business to provide him with a check in the amount of the refund, when in fact, as PATTERSON then well knew, no repair work had been performed, the forced credit card transaction would be rejected by Bank of America, N.A., and he was not entitled to receive any refund from the auto care merchant. He then converted the refund check to his own use leaving the auto car business to bear the loss.
In addition to a 94-month term of imprisonment, Judge Biggs sentenced PATTERSON to three years of supervised release and ordered him to pay $72,730.66 in restitution.
The United States Department of Treasury Office of Inspector General and the Durham Police Department participated in the investigation of this case. Special Assistant United States Attorney Kennedy Gates and Assistant United States Attorney Frank Joseph Chut, Jr., prosecuted the case.
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Dominican National Charged with Identity TheftRead the Press Release
BOSTON – Wilkin Pena Soto, 31, was indicted today in federal court in Boston on one count of passport fraud and one count of aggravated identity theft.
According to court documents, Pena Soto applied for a passport at an Attleboro Post Office in August 2017, purporting to be a U.S. citizen. On the application, he represented that the name, Social Security number, and date of birth of a Puerto Rican man were his. He supported the application with a birth certificate and Massachusetts driver’s license in the U.S. citizen’s name. It is further alleged that Pena Soto committed aggravated identity theft in connection with the passport application.
The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000. The charge of passport fraud provides for no greater than 10 years in prison, three years of supervised released and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doctor Sentenced to 16 Years for Distributing DrugsRead the Press Release
COEUR D'ALENE – Dr. Rafael Beier, 63, of Kingston, Idaho, was sentenced yesterday to 192 months in federal prison followed by ten years of supervised release for unlawfully distributing oxycodone and hydrocodone, U.S. Attorney Bart M. Davis announced. Senior U.S. District Judge Edward J. Lodge also ordered Dr. Beier to pay a $63,000 fine and to forfeit proceeds of $732,800.
In May 2016, a north Idaho jury found Dr. Beier guilty of conspiring to distribute oxycodone and hydrocodone and 61 separate counts of distributing a controlled substance. It is unlawful for a doctor to distribute controlled substances outside the usual course of their professional practice and not for a legitimate medical purpose.
Evidence at trial showed that between 2012 and May 2014, Dr. Beier sold prescriptions for highly addictive drugs like oxycodone, Adderall and hydrocodone in exchange for cash at locations such as bars, parking lots, stores, as well as his office. The jury heard evidence that Dr. Beier created false medical charts to explain the illegal drug sales.
The jury also saw the prescriptions written by Dr. Beier, a video of Dr. Beier discussing his drug sales with a witness, and an audio recording of a government informant buying a prescription from Dr. Beier in a bathroom stall. Witnesses included co-conspirators who sold pills for Beier, non-patients whose names were used on prescriptions and a number of people who bought prescriptions from Dr. Beier. Several witnesses testified about the substantial negative effect that opioid addiction had on their lives.
At the sentencing hearing, Judge Lodge stated, "Dr. Beier let greed, sexual satisfaction and the power of a prescription pad cloud his judgment.”
The case was investigated by Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), and North Idaho Violent Crimes Task Force (NIVCTF).
Dentist and Others Charged in Medicaid Health Care Fraud Scheme at Upper Manhattan Dental ClinicRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Scott J. Lampert, the Special Agent in Charge of the New York Regional Office of the United States Department of Health and Human Services Office of Inspector General (“HHS-OIG”), announced the arrests of MEHMET DIKENGIL, ANNA JONES, and LUIS OMAR VARGAS for their participation in a scheme to defraud Medicaid of more than $400,000. DIKENGIL, the owner of Dental Express Broadway, P.C., a dental clinic located in upper Manhattan, employed JONES, an officer manager, and VARGAS, an unlicensed dental provider, in furtherance of the health care fraud, which involved billing Medicaid for dental services that were not provided to patients. DIKENGIL and VARGAS were arrested this morning in New Jersey. JONES was arrested this morning in Queens, New York. The defendants will be presented later today in Manhattan federal court before Chief Magistrate Judge Debra Freeman.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, these defendants, including a licensed dentist, defrauded Medicaid time and again by billing for services that were never provided. Together with our law enforcement partners, we will aggressively prosecute those who defraud federal programs that provide care for low income New Yorkers.”
HHS-OIG Special Agent-in-Charge Scott J. Lampert: “Health providers, including an unqualified ‘dentist,’ allegedly siphoned money from the vital Medicaid program to pay for services not needed or never delivered. Patients and taxpayers need to know that suspected government health program fraud will be investigated and prosecuted.”
According to the Complaint[1] unsealed in federal court:
From at least January 2017, up to and including November 2017, DIKENGIL, a licensed dentist and owner of Dental Express Broadway, P.C. (the “Dental Clinic”), JONES, the office manager at the Dental Clinic, and VARGAS, an unlicensed dental provider at the Dental Clinic, engaged in a health care fraud conspiracy. In furtherance of the fraud, the defendants submitted numerous reimbursement claims to Medicaid for having provided Medicaid patients with dental services, when, in fact, they did not provide such services. Patients were recruited to the Dental Clinic where they were paid kickbacks of $25 to undergo minimal dental procedures. The Dental Clinic then billed Medicaid for any dental services provided to the patients, as well as for additional dental services that were not provided. In addition, VARGAS, although not licensed as a dentist, performed dental work and then billed Medicaid under DIKENGIL’s name. In total, the Dental Clinic submitted fraudulent Medicaid claims totaling more than $400,000.
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The Complaint charges MEHMET DIKENGIL, 69, of Chester, New Jersey, ANNA JONES, 59, of Queens, New York, and LUIS OMAR VARGAS, 45, of Roselle, New Jersey, with conspiracy to commit health care fraud and health care fraud. The maximum sentence on each count is 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the investigative work of HHS-OIG. Mr. Kim also thanked the New York City Human Resources Administration for their assistance during the investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Alexandra N. Rothman is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.
Defendants Sentenced for Roles in Distributing Large Amounts of MethamphetamineRead the Press Release
AMARILLO, Texas — Two defendants, who pleaded guilty to their respective roles in distributing large quantities of methamphetamine in Amarillo, Texas, were sentenced this afternoon by U.S. District Judge Sidney A. Fitzwater, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Benigno Paez, 29, was sentenced to a total of 248 months in federal prison. He pleaded guilty in August 2017 to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
Co-conspirator Eliazar Rocha, 35, also pleaded guilty in August 2017 to one count of possession with intent to distribute methamphetamine and was sentenced to 108 months in federal prison.
Judge Fitzwater ordered Paez and Rocha to surrender to the Bureau of Prisons on January 9, 2018.
According to the plea agreement factual resumes filed for both defendants, on April 30, 2017, Rocha, Paez and two other codefendants met with undercover officers to deliver six pounds of methamphetamine in exchange for $5,500 per pound. Rocha exited a vehicle, driven by Paez, to deliver the methamphetamine at which time officers indicated they did not have the money with them. When Rocha returned to the vehicle officers arrested the four defendants. Officers located 2,622 grams of methamphetamine in the vehicle and a stolen firearm.
Agents learned that the methamphetamine came from a residence in Amarillo, Texas. A search warrant was executed at the residence and law enforcement located an additional 1,846 grams of methamphetamine.
The case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Joshua Frausto was in charge of the prosecution.
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