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Wednesday 22 November 2017
Columbus Man Sentenced to 20 Years in Prison for Attempted Sexual Exploitation of ChildrenRead the Press Release
United States Attorney G. F. “Pete” Peterman, III announces that Timothy Joiner, age 34 of Columbus, Georgia, was sentenced to serve 20 years in Federal prison for attempted sexual exploitation of children. The sentence was handed down on November 20, 2017, by Chief United States District Court Judge Clay D. Land in Columbus, Georgia.
There is no parole in the federal system.
Mr. Joiner entered a plea of guilty to the charge on August 2, 2017. According to the plea agreement, in March 2017, he sent pornographic pictures of children he found on the internet with the intent to receive child pornography in return. He also sent pictures of children taken from inside his own house, inside his car, and a picture of one of his own blood relatives. The charges were the result of an undercover investigation conducted by the Metropolitan Police Department-Federal Bureau of Investigation (FBI) Child Exploitation Task Force.
“Mr. Joiner’s perverse activities as a user, creator and purveyor of child pornography certainly warrant the sentence he received.” said United States Attorney Peterman. “Hopefully this case will send a message to others who might share the same inclinations as Mr. Joiner that when caught they will be prosecuted by this office to the fullest extent of the law.”
The case was investigated by the Federal Bureau of Investigation, assisted by the Columbus Police Department. Assistant United States Attorney Crawford Seals prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Charles E. Peeler Sworn in as United States AttorneyRead the Press Release
MACON, GA – Charles E. “Charlie” Peeler has taken the oath of office to become the United States Attorney for the Middle District of Georgia. Mr. Peeler was nominated by President Donald Trump on August 3, 2017 and confirmed by the U.S. Senate on November 9, 2017. He took the oath of office from Chief United States District Court Judge Clay D. Land.
“I am honored to have the opportunity to serve as United States Attorney in the Middle District of Georgia. My objective is to make the Middle District a safer place to live, work and visit. I look forward to working with the Assistant United States Attorneys and State and Federal law enforcement to accomplish this mission.”
As U.S. Attorney, Mr. Peeler is the top-ranking federal law enforcement official in the Middle District of Georgia, which includes Albany, Athens, Columbus, Macon and Valdosta. He oversees a staff of 74 employees, including 28 attorneys and 46 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Mr. Peeler, of Albany, Georgia, received his J.D cum laude in 1999 from The University of Georgia School of Law and his B.S. in Biochemistry and Molecular Biology in 1995 also from The University of Georgia. He is a member of the Georgia Bar Association.
PROFESSIONAL OVERVIEW
Over the last 17 years Mr. Peeler has built a diverse trial practice. Mr. Peeler worked in Atlanta for King & Spalding prior to moving to Albany and founding a litigation boutique firm. Mr. Peeler has argued cases before the 11th Circuit Court of Appeals, Georgia Court of Appeals and the Georgia Supreme Court. Mr. Peeler has obtained multi-million dollar jury verdicts on behalf of plaintiffs and defense verdicts on behalf of defendants. Mr. Peeler has tried to verdict business disputes, civil rights matters, criminal matters, employment matters and intellectual property matters. Mr. Peeler was appointed by District Court Judges in the Middle District of Georgia to serve on the Local Rules Advisory Committee and the Planning Committee for the 2016 11th Circuit Judicial Conference. Mr. Peeler was appointed by Georgia Governors Sonny Perdue and Nathan Deal to serve on the State Judicial Nominating Commission.Cataula Tax Preparers Sentenced for Tax FraudRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces that on November 21, 2017, Chief U.S. District Court Judge Clay D. Land sentenced Melissa Lowe, age 47, and her daughter, Bianca Lowe, age 29, for their roles in filing false tax returns with the Internal Revenue Service.
Melissa Lowe was sentenced to 24 months imprisonment and restitution in the amount of $440,000, followed by a year of supervised release. Bianca Lowe was sentenced to 9 months imprisonment and restitution in the amount of $78,687, followed by a year of supervised release. As a condition of their supervised release, both parties are prohibited from acting as tax preparation agents or seeking employment in any tax related field.
The evidence showed that from 2011-2013, Melissa Lowe owned and operated Priority Tax Service in Cataula, Harris County, Georgia. Bianca Lowe was an occasional employee of the business. This business primarily was engaged in filing federal and state income tax returns for individual taxpayers. The Lowes engaged in a sustained practice of filing fraudulent income tax returns designed to inflate their customers’ tax refunds. While the scheme was perpetrated in several ways, the most common method used by the Lowes was filing a “Schedule C” with each return, even when such a filing was unwarranted and/or unnecessary. A Schedule C is filed when a taxpayer must report small business gains or losses; the Lowes routinely would file a Schedule C showing that their client sustained large business losses, which offset the amount of tax owed, and therefore increased the tax refund to the client. In most cases, the Schedule C businesses were either non-existent or their losses were drastically overstated.
The scheme was discovered when the Internal Revenue Service (IRS) realized that Ms. Lowe’s business was filing Schedule C returns in a volume that was drastically higher than the national average for such businesses. As a result of this scheme, the total loss to the government was estimated at $440,000. Most of the individual taxpayers were unaware of the fraudulent filings, and will not be held accountable for the losses.
“Today’s sentencings should act as a deterrent for those who are thinking about helping others submit false tax returns,” said James Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “We will continue to utilize our resources, work with our law enforcement partners and dismantle any of these tax preparation businesses who submit fraudulent tax returns.”
This case was investigated by agents representing the Harris County Sheriff’s Office, the Columbus Police Department, and the Internal Revenue Service. Assistant United States Attorney Mel Hyde prosecuted this matter for the government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Buffalo Men Convicted by Federal Jury of Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has found Isiah Pierce, 34, and Larry Willis, 32, both of Buffalo, NY, guilty of possessing crack cocaine with intent to distribute, maintaining a drug involved premises, possessing firearms in furtherance of drug trafficking activities, and being a felons-in-possession of firearms and explosives. In addition to the foregoing, defendant Pierce was also convicted of possession with intent to distribute cocaine, fentanyl, and butryl fentanyl. The charges carry a maximum penalty of life in prison.
Assistant U.S. Attorneys Laura A. Higgins and Paul E. Bonanno, who handled the trial of the case, stated that between November 2016 and December 1, 2016, the defendants utilized two apartments inside 70 Henrietta Avenue, Buffalo, New York, to manufacture, package, and store quantities of crack cocaine, heroin, cocaine, fentanyl, and butyryl fentanyl, along with the proceeds for sale of such controlled substances. To protect their product and their proceeds, the defendants maintained multiple firearms and ammunition within each of the apartments.
During the execution of a search warrant in the lower apartment at 70 Henrietta Avenue, officers recovered crack cocaine, three firearms and ammunition, a digital scale with drug residue, packaging material, whisks, spoons, and cutting agents. A subsequent search of the upper apartment uncovered additional amounts of crack cocaine, a mixture of heroin and butyryl fentanyl, three handguns and numerous rounds of ammunition.
The verdict is the result of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard and the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Pierce and Willis will be sentenced on March 20, 2018, and March 21, 2018, respectively, before U.S. District Judge Lawrence J. Vilardo, who presided over the trial of the case.
Buffalo Man Sentenced on Fentanyl and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John Walker, Jr., 25, of Buffalo, NY, who was convicted of distribution of fentanyl and unlawful possession of a firearm by a person subject to an order of protection, was sentenced to 33 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that on five occasions in March and April of 2016, the defendant sold fentanyl to a confidential source of the Federal Bureau of Investigation. The last of those transactions occurred on April 18, 2016, when Walker sold a quantity of fentanyl for $1,000.
On April 26, 2016, a search warrant was executed at the defendant’s residence on Busti Avenue in Buffalo. Officers recovered a semi-automatic pistol, and a magazine loaded with 13 rounds of 9mm ammunition. At the time, Walker was subject to a court order prohibiting him from harassing, stalking, or threatening an individual. The defendant was also explicitly prohibited from using, attempting to use or threatening use of physical force against the individual. The individual has children with the defendant.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Buffalo Man Pleads Guilty to Running A Fraudulent Debt Collection SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shawn Sylvia, 35, of Buffalo, NY, pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that the defendant organized a scheme fraudulently to collect on non-existent debts and over-collect on debts that had been paid-in-full. Sylvia, or other individuals he managed, contacted eight victims via telephone purporting to be from organizations which included: American Mutual Holdings (AMH); Check Systems, LLC; Interstate Recovery Solutions; Apex Resolution Group; Interstate Check Registry; Miller and Flemming and Associates (MFA); Pasquale and Associates LLC; Checking Solutions; or Aries Resolution Group.
The defendant and others used strong-arm tactics including threats of arrest, jail, and lawsuits to convince victims to make payments toward what they were told were outstanding debts. Victims were directed to transfer money via MoneyGram and Western Union and to wire funds into bank accounts controlled by the defendant or his associates. Merchant accounts were established with two merchant processing companies in order to process credit card payments made by victims. In creating those merchant accounts, Sylvia and others made false representations to the payment processing companies claiming that the business entities they operated were engaging in legal services, investment services, and software sales. The payment processing companies suffered losses as a result of chargebacks of payments as a result of unauthorized and fraudulent charges.
Between May 2013 and August 2017, Sylvia and his associates fraudulently obtained a total of $342,303.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for April 3, 2017, at 12:30 before Judge Arcara.
Buffalo Man Pleads Guilty to Gun ChargeRead 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 Jimmy Lee Barner, 35, of Buffalo, NY, pleaded guilty to being a felon-in-possession of a firearm before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on December 7, 2016, Amherst, NY police officers stopped a vehicle in connection with a report of larceny from a Kohl’s department store on Transit Road in Williamsville, NY. The defendant was one of four occupants and was sitting in the front passenger seat. Stolen merchandise was recovered from some of the occupants.
A subsequent search of the vehicle for additional items of stolen property resulted in the seizure of a .380 caliber semi-automatic pistol from the glove box. The firearm was loaded with nine rounds of ammunition. Subsequently, a DNA sample was taken from Barner to compare with DNA collected from the firearm. Testing confirmed that the defendant’s DNA was on the firearm.
Barner was previously convicted of local charges in Erie County Court as well as federal charges in the Western District of New York of and is legally prohibited from carrying a firearm.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, and the Amherst Police Department, under the direction of Chief John Askey.Sentencing is scheduled for March 13, 2018, before Judge Vilardo.
Brooklyn Man Sentenced for Illegal Transportation of AlienRead the Press Release
ALBANY, NEW YORK – Myroslav Avram, age 46, of Brooklyn, New York, and a citizen of Ukraine, was sentenced yesterday to time served (65 days in jail), as well as a 2-year term of supervised release, for transporting another Ukrainian citizen who illegally crossed the border into the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Avram pled guilty on December 12, 2016 and admitted that on February 23, 2016, in Hogansburg, New York, he picked up a Ukrainian citizen who had crossed the border illegally from Canada. Avram was driving the man to New York City when he was stopped and arrested by Border Patrol Agents near Clinton, New York.
The smuggled alien, Petro Vasylyovy Lakusta, age 40, of Ukraine, was sentenced on March 1, 2016 to 23 days in jail and then placed into removal (deportation) proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Attorney General Jeff Sessions Directs FBI and ATF to Conduct a Comprehensive Review of the National Instant Criminal Background Check SystemRead the Press Release
Today, Attorney General Jeff Sessions issued a memo to the FBI and ATF directing them to look at several issues as it relates to reporting information to the National Instant Criminal Background Check System. The memo directs the FBI and ATF to take the following steps:
- Work with the Department of Defense to identify and resolve any issues with the military’s reporting of convictions and other information relevant to determining prohibited person status under 18 U.S.C. § 922(g).
- Conduct a review to identify other federal government entities that are not fully and accurately reporting information to NICS. If any such entities are identified, a plan should be developed to ensure full and accurate reporting to NICS going forward to the extent required under current law.
- Conduct a review of the format, structure, and wording of ATF Form 4473 and recommend changes as necessary.
- Prepare a report that addresses: (a) the number of current open investigations for making a false statement on ATF Form 4473; (b) the number of investigations for making a false statement on ATF Form 4473 for the past five years; (c) the prosecution referral and declination numbers for the current year, as well as the past five years for making a false statement on ATF Form 4473; and (d) the priority level assigned to investigations for making a false statement on ATF Form 4473.
- Identify any additional measures that should be taken to prevent firearms from being obtained by prohibited persons, including identifying obstacles to state, local, and tribal entities sharing information with NICS.
“The National Instant Criminal Background Check System is critical for us to be able to keep guns out of the hands of those that are prohibited from owning them,” said Attorney General Jeff Sessions. “The recent shooting in Sutherland Springs, Texas revealed that relevant information may not be getting reported to the NICS – this is alarming and it is unacceptable. Therefore, I am directing the FBI and ATF to do a comprehensive review of the NICS and report back to me the steps we can take to ensure that those who are prohibited from purchasing firearms are prevented from doing so.”
- Work with the Department of Defense to identify and resolve any issues with the military’s reporting of convictions and other information relevant to determining prohibited person status under 18 U.S.C. § 922(g).
Albany Woman Pleads Guilty to Wire FraudRead the Press Release
ALBANY, NEW YORK – Bobbi A. Constantine, formerly known as Robert Bove, age 48, of Albany, pled guilty today to wire fraud in connection with a scheme to obtain mortgages and car loans under the false pretense of being a beneficiary of a $12 million trust.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Acting Inspector in Charge Raymond Moss, U.S. Postal Inspection Service (USPIS), Boston Division.
As part of her guilty plea, Constantine admitted that, from October 2014 through July 2016, when she was known as Robert Bove, she obtained mortgages and automobile lease financing from lenders under the false pretense that she was the beneficiary of a trust containing more than $12 million of the assets of a fictitious, deceased aunt.
Constantine used fictitious trust documents, which bore a forged notary seal, to dupe an attorney into generating a letter stating that that she was the beneficiary of a trust generating annual income of more than $50,000. Constantine also impersonated a fictitious administrative trustee for the trust. On the basis of the fraudulent trust documents and the attorney’s letter, Constantine obtained lease financing for a new Toyota RAV4 and a new Jeep Renegade, and obtained mortgages for her purchase of a $200,000 home in Albany and a $131,000 condominium in Myrtle Beach, South Carolina.
The plea follows Constantine’s August 21, 2017 federal sentencing for making false statements in connection with her May 2016 application for employment with the United States Postal Service. Constantine, who has more than 20 prior convictions including convictions for fraud, falsely stated in her employment application that she had never been convicted of a crime.
Constantine has been in federal custody since September 13, 2016. She received a sentence of time served on the false statements conviction.
United States District Judge Mae A. D’Agostino is scheduled to sentence Constantine on December 22, 2017 on the fraud conviction. Constantine faces up to 30 years in prison, a maximum $1 million fine, and a term of post-imprisonment supervised release of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The plea agreement requires that Constantine consent to forfeiture in the amount of $43,640.72, and pay restitution in the amount of $18,739 to the Social Security Administration and $24,901.72 to the seller of the Myrtle Beach condominium.
This case was investigated by the USPIS, the New York State Police, the Social Security Administration Office of the Inspector General, and the Town of Bethlehem Police Department, and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Alaska Man Sentenced to Prison for Threatening to Assault Federal OfficialsRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced today that a Wiseman, Alaska, man was sentenced in federal court for threatening to assault federal officials.
Jay Rolf Armstrong, 52, of Wiseman, Alaska, was sentenced today by U.S. District Judge Ralph R. Beistline, to serve two years in federal prison, followed by one year of supervised release. Armstrong was also ordered to pay a fine of $2,000. Armstrong pleaded guilty on Aug. 18, 2017, to two counts of threatening to assault federal officials.
According to court documents, Armstrong had made numerous complaints to BLM officials and others over a period of several months, beginning in January 2016, about BLM’s decisions regarding Armstrong’s mining activities on public lands. On Jan. 9, 2017, in Washington, D.C., Armstrong spoke to a BLM official and expressed his anger at being denied mining permits. Two days later, Armstrong made two phone calls to government officials, and threatened to kill BLM employees in Alaska.
In the first call, Armstrong said: “We should just go out and kill these sons of bitches. Honestly, I have half a mind to walk down there and mess them up right now.” In his second call that day, Armstrong telephoned a BLM official in Fairbanks, and stated: “Don't think for a second that if we don’t get this resolved that I won't pick up arms. I will pick up arms, and I will kill you guys. That's not a threat.”
When at his residence in Wiseman, Alaska, Armstrong could be heard firing his weapons, including a .50 caliber rifle and semi-automatic firearms. A search of Armstrong’s residence and property revealed a variety of firearms including rifles, shotguns, revolvers, rifle scopes, thousands of rounds of ammunition, ammunition magazines, firearm parts, gunpowder, shell casings, primers, bayonets and a large gun safe containing two .50 caliber rifles, additional firearms and ammunition.
The Federal Bureau of Investigation (FBI) and Bureau of Land Management (BLM) conducted the investigation leading to the successful prosecution of this case.
Akron man indicted on explosives and firearms chargesRead the Press Release
An Akron man was indicted for possession of a sawed-off shotgun, transportation of explosive materials, and possession of a destructive device, law enforcement officials said.
Elijah B. Blankenship, 27, possessed a sawed-off 12-gauge Iver Johnson shotgun on Feb. 17, according to the indictment.
On Aug. 16, he possessed a pipe bomb. He knowingly transported explosive materials on the same date, according to the indictment.
In the early evening of August 16, 2017, Akron Police officers began speaking with Elijah Blankenship in the area of Druid Walk in Akron. Through the discussion with Blankenship it was determined that Blankenship possessed a folding knife in his waistband. An Ohio State Highway Patrol K-9 Officer and his partner approached the scene and alerted to Blankenship's vehicle. Two packages of unknown powder substances, gunpowder and a pipe bomb were discovered during the probable cause search of the vehicle. Blankenship was placed in custody by law enforcement, according to court documents.
All items were collected for laboratory analysis and evidence. The disassembly of the suspected pipe bomb and pyrotechnic aerial shell revealed PVC components containing metal screws, nuts, and bolts as well as an unknown powder. A test burn was conducted of the unknown powder. The powder burned in a manner consistent with an energetic pyrotechnic powder, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S. Attorney Teresa L. Riley following an investigation the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Akron Police Department, the Summit County Sheriff’s Office Bomb Squad and the Ohio State Highway Patrol.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Acting Manhattan U.S. Attorney Announces Conviction of Frank Mercedes on Murder ChargesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that FRANK MERCEDES was found guilty yesterday of murder in connection with a drug conspiracy, murder-for-hire, murder-for-hire conspiracy, and use of a firearm resulting in death, for his role in the murder of Richard Diaz, 28, in Manhattan in 1999. MERCEDES was convicted after a one-week jury trial before U.S. District Judge Richard J. Sullivan.
Acting U.S. Attorney Joon H. Kim said: “Thanks to the work of dedicated agents, detectives, and prosecutors who relentlessly pursued justice, the cold-case murder of an innocent 28-year-old man has been solved after more than 18 years. We hope the verdict brings some measure of peace to Richard Diaz’s family.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
FRANK MERCEDES, a/k/a “Jabao,” ran a significant drug enterprise in Upper Manhattan in the late 1990s. In the summer of 1999, MERCEDES hired three men, including Jose Luis Gracesqui, a/k/a “Muffler,” to kill one of his drug customers (the “Intended Victim”) after the Intended Victim and a number of his associates stole heroin from MERCEDES.
On the night of July 19, 1999, Gracesqui and a member of his crew saw the Intended Victim in a car with Richard Diaz and began following them through Manhattan. When the car with the Intended Victim stopped at a red light, Gracesqui got out of the car that he had been in, approached the car with the Intended Victim, and began shooting. The shots hit both the Intended Victim and the driver of the car, Richard Diaz. Diaz was able to drive a short distance to the Henry Hudson Parkway, until he lost consciousness and died. The Intended Victim sustained injuries but survived. Shortly thereafter, MERCEDES met with Gracesqui and the other members of the hit team to pay them tens of thousands of dollars in exchange for committing the murder.
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MERCEDES, 51, from the Dominican Republic, faces a mandatory minimum sentence of life in prison. MERCEDES is scheduled to be sentenced on April 4, 2018, before Judge Sullivan.
Gracesqui was previously convicted in January 2016 of charges relating to his role in the murder of Richard Diaz, and is currently serving a life sentence.
Mr. Kim praised the investigative work of the U.S. Drug Enforcement Administration (DEA) New York Drug Enforcement Task Force, which is comprised of agents, detectives and investigators from the DEA, the New York City Police Department and the New York State Police. Mr. Kim also thanked the NYPD.
This case is being prosecuted by the Office’s Violent and Organized Crimes Unit. Assistant United States Attorneys Rebekah Donaleski, Jessica K. Fender, and Laurie A. Korenbaum are in charge of the prosecution.
Tuesday 21 November 2017
Williamsville Couple Pleads GuiltyRead 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 Shaheen Hassanali, 45, pleaded guilty to filing a false tax return, and her husband, Riyaz Hassanali, 57, both of Williamsville, NY, pleaded guilty to receiving and delivering misbranded drugs. The pleas took place before U.S. District Judge Richard J. Arcara. The charge against Shaheen Hassanali carries a maximum penalty of three years in prison and a $250,000 fine. Riyaz Hassanali faces a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that for the tax years 2006-2009, Shaheen Hassanali filed false joint income tax returns for herself and her husband. The defendant substantially under-reported the income earned from her husband’s medical practice.
In addition, between 2009 and 2011, Riyaz Hassanali ordered, and administered to patients, a misbranded, and non-FDA approved, foreign market product, similar to the prescription drug Dysport, a prescription drug commonly used in cosmetic procedures.
The pleas are the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office, and the U.S. Food and Drug Administration, Office of Criminal Investigations, under the direction of Jeffrey Ebersole, Special Agent-in- New York Field Office.
Sentencing is scheduled for March 6, 2018, at 12:30 p.m. before Judge Arcara.
West Virginia Man Charged with Producing Child Pornography and Online Enticement of A MinorRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Johnnie Gresham, age 39, of Charleston, West Virginia, was indicted by a federal grand jury today on charges of production of child pornography and online sexual enticement of a minor.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Gresham committed the offenses between April 2017 and June 2017, in Susquehanna County and elsewhere. The indictment alleges that Gresham used a cell phone and the internet to commit the crimes.
The charges stem from an investigation by Homeland Security Investigations and the Pennsylvania Attorney General’s Office. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 15 years’ imprisonment for the production of child pornography charge, and a mandatory minimum sentence of 10 years’ imprisonment for the online enticement charge. 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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U.S. Attorney's Office Announces Hiring Grants for Community Policing OfficersRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced that hiring grants for community policing officers were awarded to two local law enforcement agencies in the Western District of North Carolina.
The U.S. Department of Justice’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program awarded $480,963 to the Haywood County Sheriff’s office to fund the hiring of four officers, and $375,000 to the Statesville Police Department to fund the hiring of three officers.
In making the announcement U.S. Attorney Rose said, “One of the Justice Department’s top priorities is to create safer neighborhoods by removing criminals from the streets and reducing violent and gun crime. The two hiring grants will provide our local law enforcement partners with the resources they need to strengthen their ability to fight violent crime and to protect the well-being of citizens in their communities.”
The Haywood County Sheriff’s Office and the Statesville Police Department were among the 179 law enforcement agencies across the nation awarded a combined 98,495,397 through the COPS Hiring Program.
The COPS Office is the component of the U.S. Department of Justice responsible for advancing the practice of community policing by providing grant funding directly to state, local and tribal law enforcement agencies to support hiring additional law enforcement officers for three years to address specific crime problems. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.
For a complete list of award recipients, please visit: https://cops.usdoj.gov/pdf/2017AwardDocs/chp/Award_List.pdf
Two Sentenced to Prison for Embezzling from St. Paul’s Fire DepartmentRead the Press Release
Charleston, South Carolina --- United States Attorney Beth Drake announced today that Doc McNeil Matthews, 48, of Hollywood, South Carolina, and Mary Jo Thomas-Delaney, 68, of Summerville, South Carolina, were sentenced to prison for their roles in a scheme to embezzle funds from the St. Paul’s Fire District. Matthews was sentenced to 33 months imprisonment and Thomas-Delaney was sentenced to 14 months imprisonment. Both sentences included three years of supervised release, to follow the respective terms of imprisonment. United States District Court Judge Richard Gergel imposed the sentences.
Matthews and Thomas-Delaney were convicted following a jury trial in July, 2017. Evidence at trial proved that from December, 2010, through August, 2012, Matthews and Thomas-Delaney, along with others, embezzled approximately $215,000.00 from the St. Paul’s Fire District. The group utilized a FEMA grant that had been awarded to the Fire District. Thomas-Delaney was responsible for administering the grant, while Matthews was the St. Paul’s Fire Chief at the time. The grant contained funds for grant administration, which was inflated without any authority, then the inflated amounts were shared amongst the defendants, resulting in a total loss of $183,375.00.
The conviction is the result of an investigation conducted by the Federal Bureau of Investigations. The case was prosecuted by the U.S. Attorney’s Office in Charleston.
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Two Former Downstate Prison Correction Officers Convicted of Beating an Inmate and Falsifying RecordsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William Grady, the Dutchess County District Attorney, announced today that KATHY SCOTT and GEORGE SANTIAGO JR., both former New York State Correction Officers, were convicted yesterday of the November 12, 2013, beating of Kevin Moore, a sentenced inmate at the Downstate Correctional Facility in Fishkill New York, and of falsifying records after the fact to cover up the beating. SCOTT and SANTIAGO assaulted Moore in violation of his rights under the U.S. Constitution by repeatedly punching and kicking him in the head and body as he lay prone on the floor – injuries that caused Moore to be hospitalized for two weeks with facial bone fractures, five broken ribs, and a collapsed lung. SCOTT and SANTIAGO were also charged with, and convicted of, conspiring to violate Moore’s civil rights, as well as falsifying and conspiring to falsify Department of Correction records concerning the assault. After a nine-day jury trial before U.S. District Judge Kenneth M. Karas, SCOTT and SANTIAGO were convicted of all charges and immediately taken into custody.
Manhattan U.S. Attorney Joon H. Kim said: “Yesterday, a unanimous jury in White Plains found two New York State correction officers guilty of federal crimes in brutally beating 54-year-old inmate Kevin Moore and then orchestrating a massive cover-up involving scores of lies and even a phony injury. This verdict should send a loud, clear message to the New York State prison system that the protections of the U.S. Constitution do not stop at the prison wall. Although most correction officers are good and honest public servants doing an enormously challenging and important job, there are those who become criminals themselves. Officers who beat inmates, supervising officers who facilitate abuse, and those who lie about it to investigators will face the consequences. And that could be a federal conviction and time in prison as an inmate themselves.”
Dutchess County District Attorney William Grady said: "The United States Attorney’s Office, in agreeing to take the lead in this case, allowed us to avoid the serious legal restrictions that would have been encountered if we had pursued this investigation at the state level. The resulting joint investigation coupled with this jury verdict has allowed our two offices to ensure that there would be full accountability in this horrific case and send the message that every available option was and will continue to be pursued to ensure that justice is achieved."
According to the evidence introduced at trial:
On November 12, 2013, Kevin Moore, then 54, was brought to the 1D Housing Unit at Downstate Correctional Facility to be housed overnight. Moore objected to his cell assignment and a verbal dispute ensued between Moore and a group of correction officers. After Moore yelled, in sum and substance, “I’m a monster,” multiple officers, including SANTIAGO, forced Moore to the floor, held him down, and proceeded to assault Moore as he lay there, repeatedly punching and kicking Moore in the head and body. At no time did Moore ever try to attack, touch, or even make a threatening gesture toward any of the officers. While Moore lay defenseless on the floor, SANTIAGO cocked back his leg and kicked Moore in the face. SANTIAGO also continued to strike Moore after Moore was handcuffed. During the beating, SANTIAGO laughed and taunted Moore, yelling, “Who’s the monster now?”
SCOTT, who was then a sergeant and the supervising officer on the scene, was present for the entire beating and was required to stop the excessive force of her subordinates. Instead of taking action to stop the unlawful violence, SCOTT encouraged it, ordering an officer to hold Moore down on the floor while other officers continued to kick and punch him. During the beating, Moore repeatedly cried out in pain and begged SCOTT and the other officers to stop hurting him.
Immediately after the beating, SANTIAGO and other officers, led by SCOTT, engaged in an elaborate cover-up of the crime they had committed. They made up a false cover story that Moore had attacked one of the officers and that another officer had to strike Moore once in the head. To make this lie believable, the officers claimed that Moore had injured the officer’s back by pushing the officer backward onto a table. Because nothing of the sort had occurred, they created a phony injury. Specifically, SANTIAGO hit one of the other officers repeatedly on the back with a baton and SCOTT photographed the fake injury. SCOTT then prepared a false Use of Force Report of the incident, incorporating the photos and false statements from herself and other officers, including SANTIAGO, and submitted the report to her superiors. SCOTT and SANTIAGO also repeatedly pressured other officers to lie to investigators about what had occurred.
Moore was severely injured, suffering multiple facial fractures, five broken ribs, and a collapsed lung, among other injuries. According to the medical evidence, Moore received at least four forceful blows to the face and torso, including one crushing strike to the right eye that was consistent with a kick from a boot.
* * *
SCOTT, 43, of Saugerties, New York, and SANTIAGO, 35, of Fremont Center, New York, were each convicted of one count of deprivation of rights under color of law, which carries a maximum sentence of 10 years in prison; one count of conspiracy to deprive civil rights, which carries a maximum sentence of 10 years in prison; one count of falsifying documents, which carries a maximum sentence of 20 years in prison; and one count of conspiring to falsify documents, which carries a maximum sentence of five years in prison. SCOTT AND SANTIAGO are scheduled to be sentenced by Judge Karas on April 10, 2018.
Three other former Downstate correction officers pled guilty to the same four offenses. Andrew Lowery pled guilty on July 27, 2016; Donald Cosman pled guilty on August 31, 2016; and Carson Morris, pled guilty on November 1, 2017.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation and the Criminal Investigators at the United States Attorney’s Office. Mr. Kim, also thanked the New York State Department of Correction Office of Special Investigation, and the Dutchess County District Attorney’s Office for their assistance in the investigation.
This case is being handled by the Office’s Civil Rights Unit and the White Plains Division. Assistant U.S. Attorneys Andrew Dember and Pierre Armand are in charge of the prosecution.
Texas Man Pleads Guilty to Drug ConspiracyRead the Press Release
BOSTON – A Texas man involved in a Lawrence-based fentanyl, heroin, and cocaine trafficking scheme pleaded guilty today in federal court in Boston.
Joel Jahamal Rougeau, 41, pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute fentanyl, heroin, and cocaine. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 7, 2018. In July 2015, Rougeau and three co-defendants, Jerri Martinez-Tejeda, 31, of Lawrence; Yoelly Carmenatty, 27, of Lawrence; and Lily Solis, 28, of Texas, were charged in a criminal complaint.
In March 2014, an investigation into a drug trafficking organization operating in Massachusetts, California and elsewhere led law enforcement to Martinez-Tejeda. In late May or early June 2015, Martinez-Tejeda hired Rougeau and Solis to pick up nine kilograms of narcotics in California and transport them to the Northeast. On June 4, 2015, law enforcement in Oklahoma intercepted Rougeau and Solis transporting nine kilograms of fentanyl to Martinez-Tejeda and his partner, Carmenatty, in Lawrence for distribution.
In June 2016, Solis was sentenced to 33 months in prison; in October 2016, Martinez-Tejeda was sentenced to 292 months in prison; and in January 2017, Carmenatty was sentenced to six years in prison.
The charge provides for a sentence of up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. 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 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 Thomas E. Kanwit of Weinreb’s Criminal Division is prosecuting the case.
Scranton Men Charged with Armed Robberies of Two Gas StationsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Durrell Davenport, age 26, and Amod Phillips, age 27, both of Scranton, Pennsylvania, were indicted by a federal grand jury for interference with commerce by robbery and aiding and abetting, conspiracy to commit interference with commerce by robbery, and brandishing a firearm in furtherance of a crime of violence.
According to United States Attorney Bruce D. Brandler, the indictment alleges that on June 8, 2017, Davenport and Phillips brandished firearms and robbed the EFuel Gas Station and Food Mart in Scranton. Approximately $266 and several packs of cigarettes were taken in the robbery. The indictment also charges Davenport with the armed robbery of the Sunoco Gas Station and Convenience Store, in Scranton, on June 20, 2017. Davenport stole $386 and several packs of cigarettes.
The case was investigated by the Scranton Police Department and the Bureau of Alcohol, Tobacco and Firearms. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the robbery charges under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. The charge of brandishing a firearm carries a mandatory minimum sentence of seven years, consecutive to any other sentence. 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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Sayfullo Saipov Indicted on Terrorism and Murder in Aid of Racketeering Charges in Connection with Lower Manhattan Truck AttackRead the Press Release
Jeff Sessions, the Attorney General of the United States, Joon H. Kim, Acting United States Attorney for the Southern District of New York, Dana J. Boente, Acting Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that a grand jury in the Southern District of New York has returned a 22-count indictment (the “Indictment”) against SAYFULLO HABIBULLAEVIC SAIPOV in connection with SAIPOV’s alleged terrorist attack in lower Manhattan on October 31, 2017, which killed eight people and injured 12 more. The Indictment charges SAIPOV with eight counts of murder in aid of racketeering, 12 counts of attempted murder in aid of racketeering, one count of providing and attempting to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”), and one count of violence and destruction of a motor vehicle. The case has been assigned to U.S. District Judge Vernon S. Broderick.
SAIPOV was initially arrested on a Complaint and presented before the Honorable Barbara Moses on November 1, 2017. He was ordered detained and has been in federal custody since his arrest.
Attorney General Jeff Sessions said: “As alleged in this indictment, Sayfullo Saipov murdered eight innocent people and injured many more in a calculated act of terrorism in the heart of one of our great cities. People have a right to safety walking down a sidewalk or riding a bike, and we will not change our resolve to confront these threats both at home and abroad. I am especially proud today of the law enforcement officers who acted quickly and courageously to respond and to protect people from further harm. We continue to offer our assistance, our support and our prayers to the victims of this attack and to all the people of New York City.”
Acting U.S. Attorney Joon H. Kim said: “Consumed by hate and a twisted ideology, Sayfullo Saipov allegedly barreled down a pedestrian walkway and bicycle path on a sunny afternoon on the West Side of Manhattan, killing eight innocent people and injuring at least a dozen others. As the scores of videos and images on his cellphone showed, Saipov’s depraved use of a rental truck as a weapon of terror was allegedly in support of the terrorist organization ISIS. As of today, Saipov stands indicted of material support of terrorism, as well as eight counts of murder and 12 counts of attempted murder in aid of racketeering. Like many terrorists before him, Saipov will now face justice in an American court. And like New York City’s response to his alleged attack, we expect that justice in this case will be swift, firm, and resolute.”
FBI Assistant Director William F. Sweeney Jr. said: “When Sayfullo Saipov carried out his brutal attack last month, his intentions were to inflict significant damage, death and injury to innocent victims and terrorize this city. We announce today’s indictment with the understanding that nothing can ever reverse the unfortunate events of that day, or alleviate the pain and sorrow of the victims’ families. Today’s indictment should be a signal though that the rule of law will always prevail and we are dedicated to holding this perpetrator and anyone else who threatens to disrupt our most basic freedoms accountable for their criminal actions.”
As alleged in the Indictment and the Complaint:[1]
Islamic State of Iraq and Al-Sham
ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide. ISIS has pursued the objective of an Islamic state through, among other things, killing and deliberate targeting of civilians, mass executions, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape, and other forms of sexual violence. ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria, and other locations in Africa and the Middle East, and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts.
ISIS, including its leadership, membership, and associates, constitutes an “enterprise,” as that term is defined in Title 18, United States Code, Section 1959(b)(2) – that is, a group of individuals associated in fact, although not a legal entity, which is engaged in, and the activities of which affect, interstate and foreign commerce. ISIS members and associates make and have made public statements and issued public declarations, which, among other things: (i) proclaimed and acknowledged acts of violence had been committed by ISIS; (ii) threatened future acts of violence if ISIS’s demands were not met; and (iii) were intended to promote and foster the prestige and standing of ISIS. ISIS has specifically distributed propaganda designed to encourage ISIS followers to commit acts of violence using vehicles as weapons.
The October 31, 2017, Truck Attack
On October 31, 2017, at approximately 3:00 p.m., SAIPOV drove a rented flatbed truck (the “Truck”) from New Jersey over the George Washington Bridge into New York City. After SAIPOV entered New York City, he proceeded in the Truck to the West Side Highway and began traveling southbound. Once SAIPOV was in the vicinity of Houston Street in Manhattan, he drove the Truck onto the bike lane and pedestrian walkway of the West Side Highway. SAIPOV then drove down the walkway for several blocks, striking numerous civilians. SAIPOV eventually collided with a school bus, which was carrying occupants in the vicinity of West Street and Chambers Street, at which point the Truck came to a halt.
After SAIPOV collided with the school bus, he exited the driver’s door of the Truck with two objects in his hands that appeared to be firearms. Moments after SAIPOV got out of the Truck, he yelled, in substance and in part, “Allahu Akbar,” which is an Arabic phrase that translates to “God is Great.”
SAIPOV was shot by a law enforcement officer and taken into custody. Law enforcement officers subsequently recovered in the vicinity of the Truck, among other things, a paintball gun, a pellet gun, a stun gun, and three knives. Law enforcement officers also recovered, approximately ten feet from the driver’s door of the Truck, a document that contained, among other things, the Arabic text for “No God but God and Muhammad is his Prophet” and “Islamic Supplication. It will endure.” “It will endure” is commonly used to refer to ISIS. Cellphones recovered from the Truck contained, among other things, videos and images of ISIS propaganda, and internet searches for truck rentals and for Halloween in New York City.
After SAIPOV was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights. During that interview, SAIPOV stated, among other things, the following:
- SAIPOV was inspired to carry out the Truck attack by ISIS videos he had watched on his cellular phone.
- Approximately one year ago, SAIPOV began planning an attack in the United States. Approximately two months ago, he decided to use a truck to inflict maximum damage against civilians. On or about October 22, 2017, SAIPOV rented a truck so he could practice making turns in advance of his attack.
- SAIPOV planned to use the Truck to strike pedestrians in the vicinity of the West Side Highway and then proceed to the Brooklyn Bridge to continue to strike pedestrians. SAIPOV wanted to kill as many people as he could. SAIPOV chose October 31, Halloween, for the attack because he believed there would be more civilians on the street for the holiday.
- SAIPOV wanted to display ISIS flags in the front and back of the Truck during the attack, but decided against it because he did not want to draw attention to himself. SAIPOV requested to display ISIS’s flag in his hospital room and stated that he felt good about what he had done.
Eight individuals died from the injuries they sustained as a result of the Truck driving on the walkway and at least 12 additional individuals were injured.
* * *
SAIPOV, 29, of Paterson, New Jersey, was initially arrested by the NYPD on October 31, 2017. A chart containing the charges and maximum penalties against SAIPOV is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Kim, Attorney General Sessions, and Mr. Boente praised the outstanding investigative efforts of the FBI, the NYPD, and the Department of Homeland Security, Homeland Security Investigations (“HSI”). SAIPOV’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force – which consists of law enforcement officers of the FBI, NYPD, HSI, and other agencies – and the U.S. Department of Justice’s National Security Division. Mr. Kim also thanked the U.S. Department of Justice’s Organized Crime and Gang Section, Office of Enforcement Operations, and Capital Case Section for their exceptional assistance.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Andrew D. Beaty, Amanda Houle, and Matthew Laroche are in charge of the prosecution, with assistance from Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
COUNT
CHARGES
MAXIMUM PENALTIES ON EACH COUNT
1-8
Murder in Aid of Racketeering
Life in prison or death
9-20
Attempted Murder in Aid of Racketeering
10 years in prison
21
Providing and Attempting to Provide Material Support to a Designated Foreign Terrorist Organization
Life in prison
[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the Complaint, and the descriptions of the Indictment and the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
- SAIPOV was inspired to carry out the Truck attack by ISIS videos he had watched on his cellular phone.
Sayfullo Saipov Charged with Terrorism and Murder in Aid of Racketeering in Connection with Lower Manhattan Truck AttackRead the Press Release
Today, a grand jury returned a twenty-two count Indictment against Sayfullo Habibullaevic Saipovm, 29, of Paterson, New Jersey, in connection with Saipov’s alleged terrorist attack in lower Manhattan on Oct. 31, which killed eight people and injured twelve more.
Attorney General Jeff Sessions, Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Joon H. Kim for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr., of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD made the announcement.
The Indictment charges Saipov with eight counts of murder in aid of racketeering, twelve counts of attempted murder in aid of racketeering, one count of providing and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS) and one count of violence and destruction of a motor vehicle resulting in death. This case has been assigned to U.S. District Judge Vernon S. Broderick.
Saipov was initially arrested on a Complaint and presented before the Honorable Barbara Moses on Nov. 1. He was ordered detained and has been in federal custody since his arrest.
“As alleged in this indictment, Sayfullo Saipov murdered eight innocent people and injured many more in a calculated act of terrorism in the heart of one of our great cities,” said Attorney General Sessions. “People have a right to safety walking down a sidewalk or riding a bike, and we will not change our resolve to confront these threats both at home and abroad. I am especially proud today of the law enforcement officers who acted quickly and courageously to respond and to protect people from further harm. We continue to offer our assistance, our support and our prayers to the victims of this attack and to all the people of New York City.”
“Consumed by hate and a twisted ideology, Sayfullo Saipov allegedly barreled down a pedestrian walkway and bicycle path on a sunny afternoon on the West Side of Manhattan, killing eight innocent people and injuring at least a dozen others,” said Acting U.S. Attorney Kim. “As the scores of videos and images on his cellphone showed, Saipov’s depraved use of a rental truck as a weapon of terror was allegedly in support of the terrorist organization ISIS. As of today, Saipov stands indicted of material support of terrorism, as well as eight counts of murder and 12 counts of attempted murder in aid of racketeering. Like many terrorists before him, Saipov will now face justice in an American court. And like New York City’s response to his alleged attack, we expect that justice in this case will be swift, firm, and resolute.”
“When Sayfullo Saipov carried out his brutal attack last month, his intentions were to inflict significant damage, death and injury to innocent victims and terrorize this city,” said Assistant Director in Charge Sweeney. “We announce today’s indictment with the understanding that nothing can ever reverse the unfortunate events of that day, or alleviate the pain and sorrow of the victims’ families. Today’s indictment should be a signal though that the rule of law will always prevail and we are dedicated to holding this perpetrator and anyone else who threatens to disrupt our most basic freedoms accountable for their criminal actions.”
As alleged in the Indictment and the Complaint:
Islamic State of Iraq and Al-Sham
ISIS is a foreign terrorist organization based in the Middle East and Africa whose publicly stated purpose is the establishment of an Islamic state or caliphate based in the Middle East and Africa that encompasses all Muslims worldwide. ISIS has pursued its objective through, among other things, indiscriminate killing and deliberate targeting of civilians, mass executions and extrajudicial killings, persecution of individuals and communities on the basis of their religion, nationality, or ethnicity, kidnapping of civilians, forced displacement of Shia communities and minority groups, killing and maiming of children, rape and other forms of sexual violence. ISIS has recruited thousands of foreign fighters from across the globe to assist with its efforts to expand its so-called caliphate in Iraq, Syria and other locations in Africa and the Middle East and has leveraged technology to spread its violent extremist ideology and for incitement to commit terrorist acts around the world.
ISIS, including its leadership, membership and associates, constitutes an “enterprise,” as that term is defined in Title 18, United States Code, Section 1959(b)(2) — that is, a group of individuals associated in fact, although not a legal entity, which is engaged in, and the activities of which affect, interstate and foreign commerce. ISIS members and associates make and have made public statements and issued public declarations, which, among other things: (i) proclaimed and acknowledged acts of violence had been committed by ISIS; (ii) threatened future acts of violence if ISIS’s demands were not met; and (iii) were intended to promote and foster the prestige and standing of ISIS.
ISIS has specifically distributed propaganda designed to encourage ISIS followers to commit acts of violence using vehicles as weapons. For example, the July 2016 issue of Dabiq, ISIS’s then-official magazine, praised the “brother” who answered “the Islamic State’s calls to target nations participating in the Crusader coalition fighting the Caliphate” by “killing more than 80 people and injuring more than 300 others” with a truck in an attack that occurred in Nice, France on or about July 14, 2016. In September 2016, ISIS changed the name of its official magazine from Dabiq to Rumiyah. In November 2016, ISIS released Rumiyah, Issue 3, which has an article titled “Just Terror Tactics,” which again focused on a vehicle attack as a primary attack weapon with a secondary attack using a knife or gun to maximize death and terror.
The Oct. 31, Truck Attack
On Oct. 31, at approximately 3:00 p.m., Saipov drove a rented flatbed truck (the “Truck”) from New Jersey over the George Washington Bridge into New York City. After Saipov entered New York City, he proceeded in the Truck to the West Side Highway and began traveling southbound. Once Saipov was in the vicinity of Houston Street in Manhattan, he drove the Truck onto the bike lane and pedestrian walkway of the West Side Highway. Saipov then drove down the walkway for several blocks, striking numerous civilians. Saipov eventually collided with a school bus, which was carrying occupants in the vicinity of West Street and Chambers Street, at which point the Truck came to a halt.
After Saipov collided with the school bus, he exited the driver’s door of the Truck with two objects in his hands that appeared to be firearms. Moments after Saipov got out of the Truck, he yelled, in substance and in part, “Allahu Akbar,” which is an Arabic phrase that translates to “God is Great.”
Saipov was shot by a law enforcement officer and taken into custody. Law enforcement officers subsequently recovered in the vicinity of the Truck, among other things, a paintball gun, a pellet gun, a stun gun and three knives. Law enforcement officers also recovered, approximately ten feet from the driver’s door of the Truck, a document that contained, among other things, the Arabic text for “No God but God and Muhammad is his Prophet” and “Islamic Supplication. It will endure.” “It will endure” is commonly used to refer to ISIS. Cellphones recovered from the Truck contained, among other things, videos and images of ISIS propaganda and internet searches for truck rentals and for Halloween in New York City.
After Saipov was taken into custody, he was transferred to Bellevue Hospital, where he made statements to law enforcement officers after waiving his Miranda rights. During that interview, Saipov stated, among other things, the following:
- Saipov was inspired to carry out the Truck attack by ISIS videos he had watched on his cellular phone.
- Approximately one year ago, Saipov began planning an attack in the United States. Approximately two months ago, he decided to use a truck to inflict maximum damage against civilians. On or about Oct. 22, Saipov rented a truck so he could practice making turns in advance of his attack.
- Saipov planned to use the Truck to strike pedestrians in the vicinity of the West Side Highway and then proceed to the Brooklyn Bridge to continue to strike pedestrians. Saipov wanted to kill as many people as he could. Saipov chose Oct. 31, Halloween, for the attack because he believed there would be more civilians on the street for the holiday.
- Saipov wanted to display ISIS flags in the front and back of the Truck during the attack, but decided against it because he did not want to draw attention to himself. Saipov requested to display ISIS’s flag in his hospital room and stated that he felt good about what he had done.
Eight individuals died from the injuries they sustained as a result of the Truck driving on the walkway and at least twelve additional individuals were injured.
* * *
Saipov was initially arrested by the NYPD on Oct. 31. The defendant is charged with:
- Counts 1-8: Murder in Aid of Racketeering with a maximum sentence of life imprisonment or death on each count.
- Counts 9-20: Attempted Murder in Aid of Racketeering with a maximum sentence of 10 years’ imprisonment on each count.
- Count 21: Providing and Attempting to Provide Material Support to a Designated Foreign Terrorist Organization Resulting in Death with a maximum sentence of life imprisonment.
- Count 22: Violence and Destruction of Motor Vehicles Resulting in Death with a maximum sentence of life imprisonment or death.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Attorney General Sessions, Mr. Boente, and Mr. Kim praised the outstanding investigative efforts of the FBI, the NYPD and the Department of Homeland Security Homeland Security Investigations (HSI). Saipov’s arrest is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the FBI’s Joint Terrorism Task Force — which consists of law enforcement officers of the FBI, NYPD, HSI and other agencies — and the U.S. Department of Justice’s National Security Division. Attorney General Sessions, Mr. Boente, and Mr. Kim also thanked the U.S. Department of Justice’s Organized Crime and Gang Section, Office of Enforcement Operations and Capital Case Section for their exceptional assistance.
The case is being prosecuted by Assistant U.S. Attorneys Andrew D. Beaty, Amanda Houle and Matthew Laroche of the Southern District of New York, and Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
Rochester Man Pleads Guilty to Conspiracy to Sell OxycodoneRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Ingham, 29, of Rochester, NY, pleaded guilty to conspiring to distribute a controlled substance before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 20 years in prison and a $1,000,000.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that co-defendant Ronald Lockwood was prescribed large quantities of oxycodone by his heath care provider. Beginning in October 2016 and continuing until his arrest in February 2017, Ingham conspired to purchase those pills from Lockwood to sell to others in the Rochester area.
Ronald Lockwood has been convicted and is awaiting sentencing. Charges are pending against another co-defendant Daniel Volonino, Jr. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Ingham’s plea is the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and investigators with the Medicaid Fraud Control Unit of the New York State Attorney General, under the direction of Eric Schneiderman.
Sentencing is scheduled for January 16, 2018, at 10:30 a.m. before Judge Larimer.
Robert M. Duncan, Jr. Sworn in as United States AttorneyRead the Press Release
LEXINGTON, KY. – Robert M. Duncan, Jr. has taken the oath of office to become the United States Attorney for the Eastern District of Kentucky. He was nominated by President Donald Trump on August 3, 2017, and confirmed by the United States Senate on November 9, 2017. Duncan took the oath of office from Chief Judge Karen K. Caldwell of the United States District Court for the Eastern District of Kentucky.
“I am humbled and honored to have been appointed by President Trump and confirmed by the United States Senate to serve as the United States Attorney for the Eastern District of Kentucky,” Duncan stated. “It is my great privilege to serve with the dedicated and talented members of the United States Attorney’s Office, men and women who are committed to the principles of justice, fairness, and the rule of law. As a native Kentuckian and career prosecutor, I understand the unique challenges facing our District, including the devastation of lives caused by drug trafficking and the tragic consequences of violent crime. I am committed to working with our partners and colleagues in law enforcement to help make our communities safer through the vigorous and fair enforcement and prosecution of the laws of the United States.”
As United States Attorney, Robert M. Duncan, Jr. is the top-ranking federal law enforcement official in the Eastern District of Kentucky, which encompasses the 67 easternmost counties in the Commonwealth, has a population of approximately 2.2 million, and includes the cities of Lexington, Covington, Frankfort, Ashland, Pikeville, Somerset, and London. Duncan will serve as the twenty-third presidentially appointed United States Attorney for the Eastern District of Kentucky, which was created in 1901.
Duncan will oversee a staff of 83 employees, including 39 attorneys, 36 non-attorney support personnel, and 8 contract employees. The office is responsible for prosecuting federal crimes in the District, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Prior to his appointment, Duncan had served for more than a decade as an Assistant United States Attorney in the Eastern District of Kentucky. Beginning in 2011 and continuing until his appointment as United States Attorney, Duncan focused on the prosecution of Organized Crime Drug Enforcement Task Force cases, working with federal, state, and local law enforcement personnel to disrupt and dismantle complex drug trafficking and money laundering organizations operating in the District and elsewhere. From 2007 to 2013, Duncan served as coordinator of the office’s Project Safe Neighborhoods Program, a Department of Justice initiative to reduce gun and gang crime through education, community outreach, and prosecution.
During his career as a federal prosecutor, Duncan handled a wide array of criminal and appellate matters, including cases involving violent crimes, immigration offenses, public corruption, white-collar offenses, environmental crimes, and child exploitation offenses. Duncan also served as the Professional Responsibility Officer for the office, providing advice about legal ethics. Duncan joined the United States Attorney’s Office in January 2005.
Prior to becoming a federal prosecutor, Duncan served as a law clerk to Senior United States District Court Judge Henry R. Wilhoit, Jr., in Ashland, Kentucky.
Duncan is a member of the Kentucky Bar Association and admitted to practice law in Kentucky. He is also admitted to practice before the Supreme Court of the United States, the United States Court of Appeals for the Sixth Circuit, and the United States District Court for the Eastern District of Kentucky. Duncan has served as President of the Kentucky Chapter of the Federal Bar Association and on several civic, educational, and philanthropic boards.
Robert M. Duncan, Jr., grew up in Inez, in Martin County, Kentucky, along the Commonwealth’s border with West Virginia. Duncan graduated from Sheldon Clark High School in Inez in 1996. He graduated from Centre College in Danville, Kentucky, in 2000 with his B.A. in English and minor in History. Duncan received his J.D. in May 2003 from the University Of Kentucky College of Law in Lexington, Kentucky.
Duncan, his wife, Valerie, and their children live in Lexington.
Richmond County Man Sentenced on Federal Methamphetamine ChargesRead the Press Release
GREENSBORO, N.C. – Christopher Lee Huckabee, 36, and formerly of 311 Hickory Street, Rockingham, was sentenced today for conspiracy to manufacture methamphetamine, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina. Huckabee had pleaded guilty to the charge on July 10, 2017, before the Honorable William L. Osteen, Jr., United States District Judge.
Huckabee was sentenced to 230 months in the Federal Bureau of Prisons, to be followed by a ten-year term of supervised release. Huckabee was also ordered to pay restitution of $270.23 to the North Carolina State Bureau of Investigation for clean-up costs related to a meth lab located at his home on February 4, 2017. A $100 special assessment was also ordered.
Huckabee still has state charges pending in Richmond County wherein he is charged with the felony offenses of throwing acid or an alkili and assault inflicting serious bodily injury, alleged to have occurred on or about January 18, 2017. Trial on these charges is currently scheduled for January 8, 2018, in Richmond County Superior Court. Huckabee is presumed innocent of the charges pending in state court unless and until proven guilty in a court of law.
This case was jointly investigated by the Richmond County Sheriff’s Office and the North Carolina State Bureau of Investigation.
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Registered Sex Offender Sentenced to 540 Months for Child Pornography OffensesRead the Press Release
DALLAS — Jason Lee Randall, 33, of Mesquite, Texas, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 540 months in federal prison, following his guilty plea in January 2017 to multiple child pornography offenses, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Randall pleaded guilty to production of child pornography, transportation of child pornography, possession of prepubescent child pornography and penalties for registered sex offenders. Randall has been in custody since the time of his arrest in September 2016.
According to the indictment, factual resume, and information from his sentencing hearing, Randall, a registered sex offender previously convicted of several possession-of-child-pornography charges, used an online alias of “Emily Randall” to communicate with other children on the internet. Randall, using various online accounts, pretended to be a 12-year-old girl and convinced other girls he met online to engage in sexually explicit conduct and create child pornography of themselves. Randall would then send this child pornography to other children to convince them to engage in sexually explicit conduct and create more child pornography. On at least one occasion, Randall video-chatted with a child and engaged in a sex act visible to the child. Randall victimized at least twenty girls around the world, the majority of which were between the ages of 9 and 13 years old. Randall also possessed thousands of images and videos of prepubescent child pornography, including videos involving infants being sexually abused.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Mesquite Police Department in Texas, and the Burrillville Police Department in Rhode Island. Assistant U.S. Attorney Jamie L. Hoxie was in charge of the prosecution.
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Psychologist George E. Compton Jr. of Sturgis Sentenced for Health Care FraudRead the Press Release
Compton Billed Insurers for Numerous Counseling Sessions that he did not Provide
GRAND RAPIDS, MICHIGAN —George E. Compton, Jr., 63, of Sturgis, Michigan, was sentenced to 28 months in prison, U.S. Attorney Andrew Birge announced today. Compton previously pled guilty to executing a health care fraud scheme from January 1, 2013, until June 30, 2016, when he repeatedly billed numerous health care insurance companies for psychological counseling sessions that he never provided. When imposing the sentence, U.S. District Court Judge Gordon Quist commented that Compton had "ample opportunity to come clean" and that his conduct "contributed to a loss of confidence in the health care industry as a whole because of what occurred right here in our own neighborhood." The court also ordered Compton to pay restitution to the health care insurance companies that he defrauded.
"Unfortunately, this case represents yet another example of how some health care professionals allow their own greed to lead them down the path of defrauding health care benefit programs and ultimately harming consumers," said U.S. Attorney Birge. "My office will continue to vigorously prosecute those who commit health care fraud against private or public health insurance plans."
Compton, who operated a psychology practice in Coldwater, Michigan, established legitimate relationships with numerous patients to provide periodic counseling sessions. However, after establishing these relationships, Compton regularly billed his patients’ health care benefit programs for counseling sessions that grossly exceeded the number of actual counseling sessions that he provided, including billing one patient’s insurance 100 times when her children only actually received eight counseling sessions. When his patients or the health care benefit programs occasionally detected his excess billings, Compton claimed that the billings were the result of an honest mistake or the automated billing functions of his billing software and he reimbursed the health care benefit program for the over-payment. Additionally, when audited by one of the health care benefit programs, Compton created fake patient counseling notes in an attempt to make it appear as if he actually provided counseling sessions on dates that he knew he had previously submitted false billings. During the 41 months that the fraud occurred, Compton received over $800,000.00 in fraudulent insurance payments and spent over $410,000.00 on various credit cards for items including sound equipment for his business ACE Mobile Recording, vacations, concert tickets, and other personal items.
"The march before the federal bench of health care providers to answer for fraudulent billing practices continues with the sentencing of George Compton today," said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "So long as there are those like Mr. Compton who place greed over their oath, and siphon away critical resources from our health care system contributing to the rising cost of health care for all Americans, the FBI and our partners will continue our work to identify offenders and bring them to justice."
The case was investigated by the Kalamazoo office of the FBI and prosecuted by Assistant U.S. Attorney Ronald M. Stella.
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Press Conference AdvisoryRead the Press Release
There will be a press conference today at 12:30 p.m. to announce charges against Behzad Mesri, an Iranian national, for allegedly hacking into the computer servers of Home Box Office, Inc. (HBO), stealing proprietary data, including information about then-unreleased episodes of the popular television series, “Game of Thrones,” and then allegedly seeking to extort HBO.
WHO:
Joon H. Kim, Acting United States Attorney for the Southern District of New York
William F. Sweeney, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation
WHEN:
Tuesday, November 21, 2017 at12:30 p.m.
WHERE:
U.S. Attorney’s Office, Southern District of New York
1 St. Andrew’s Plaza
New York, NY 10007
LIVESTREAM:
Facebook @USAOSDNY
CONTACT:
James Margolin, Dawn Dearden, Nicholas Biase
(212) 637-2600
Pittsburgh Drug Dealer Sentenced to 10 Years in Prison for Distributing Heroin, Fentanyl and Crack CocaineRead the Press Release
PITTSBURGH – Romel Wilson was sentenced to 120 months in federal prison for trafficking heroin, fentanyl, and cocaine base in April 2015, Acting United States Attorney Soo C. Song announced today.
Wilson, age 34, formerly of Pittsburgh, Pennsylvania, was sentenced yesterday by United States District Court Judge Donetta W. Ambrose. Judge Ambrose ordered that Wilson serve six years of supervised release after he is released from prison. Wilson was previously convicted four times in four separate cases in Pennsylvania state court of trafficking heroin and crack cocaine. Information was provided to the Court in conjunction with Wilson’s federal sentencing that he continued to distribute a mixture of heroin and fentanyl in April 2015 despite the fact that he was aware that the mixture had recently caused at least one of his customers, as he put it, to go “out.”
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police and the Drug Enforcement Administration conducted the investigation leading to the conviction in this case.
Perry County Man Pleads Guilty to Filing False Federal Income Tax ReturnRead the Press Release
Jackson, TN – D. Michael Dunavant, United States Attorney for the Western District of Tennessee and Tracey D. Montano, Special Agent in Charge, IRS-Criminal Investigation announced today that Joel Anthony Bunch, of Clifton, Tennessee has pleaded guilty to one count of Filing a False Federal Income Tax Return.
On February 21, 2017, Bunch was charged with Filing False Federal Income Tax Returns in an 8-count indictment handed down by a federal grand jury in Jackson.
According to the indictment, Bunch filed false U.S. Corporation Income Tax Returns for the tax years 2010, 2011, 2012, and 2013, by underreporting the corporation’s gross receipts. Bunch also filed false U.S. Individual Income Tax Returns for tax years 2010, 2011, 2012, and 2013, by underreporting gross receipts on his Schedule C, Profit or Loss from Business.
During today’s plea hearing, Bunch pled guilty to Count 8 of the indictment charging him with filing a false U.S. Individual Income Tax Return for tax year 2013. At that time, Bunch owned Bunch Forest Products, located in Clifton, Tennessee, and was the sole person responsible for the business record keeping. Bunch caused his paid tax return preparer to underreport his gross receipts for 2013, by depositing business income into his personal bank account, cashing income checks, and knowingly providing incomplete and inaccurate information to his paid preparer. As a result, Bunch’s 2013 gross receipts were underreported by $27,317, resulting in an additional tax due and owing of $8,361.
The Internal Revenue Service – Criminal Division investigated this case. Assistant U.S. Attorney Matthew J. Wilson is prosecuting the case on the government’s behalf.
Parkersburg man pleads guilty to federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Nathaniel Pittman, 27, entered his guilty plea to a single-count indictment charging him with possession with intent to distribute heroin and cocaine.
On July 7, 2016, members of the Wood County Sheriff’s Office conducted a traffic stop of Pittman’s vehicle and discovered heroin and cocaine. Pittman admitted that he possessed the drugs found in his vehicle, and that he intended to sell the drugs. Lab testing confirmed that the drugs law enforcement recovered were over 80 grams of heroin and over 90 grams of cocaine.
Pittman faces up to 20 years in federal prison when he is sentenced on February 13, 2018.
The investigation was conducted by the Wood County Sheriff’s Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney John Frail is handling the prosecution. United States District Judge Joseph R. Goodwin presided over the plea hearing.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Papillion Man Sentenced for Bank LarcenyRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Jacob A. McClure, age 23, of Papillion, Nebraska, was sentenced yesterday by the Honorable John M. Gerrard to three year’s probation, 160 hours of community service, eight consecutive weekends in jail and ordered to pay restitution of $4,679.00 to Rochester Armored Car, Inc. McClure had previously pled guilty to one count of bank larceny.
In December of 2016, McClure was employed with Rochester Armored Car, Inc. One of his duties was to fill ATM machines. On December 1, 2016, he filled the SAC Federal Credit Union ATM located at the Offutt Air Force Base Off-Post Shoppette, 25 Hruska Drive, Bellevue, Nebraska, with $50,000. When a customer tried using the ATM on December 5, the ATM wasn’t working. When another Rochester employee went to look at the ATM, it was found that the boxes that store the money were in the wrong place. An audit was performed and it was discovered McClure had taken $47,030.00. When confronted, McClure turned over $37,000.00 that had not yet been spent. McClure had previously made partial restitution and the $4,679.00 in restitution that was ordered by the court was the remaining balance. Rochester had previously reimbursed SAC Federal Credit Union for the missing money.
The case was investigated by the Federal Bureau of Investigation.
Owner of Two Miami Home Health Agencies Sentenced to More Than Six Years in Prison for Role in $74 Million Medicare Fraud ConspiracyRead the Press Release
The owner and operator of two defunct Miami home health agencies was sentenced today to 80 months in prison for her role in a $74 million conspiracy to defraud the Medicare program.
Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, made the announcement.
Sila Luis, 59, of Miami, Florida, was sentenced by U.S. District Judge Marcia G. Cooke of the Southern District of Florida. Judge Cooke also ordered the defendant to pay $45 million in restitution and to forfeit the gross proceeds traced to the offense. Luis pleaded guilty on June 28, to one count of conspiracy to commit health care fraud.
As part of her guilty plea, Luis admitted that, between January 2006 and June 2012, she and her co-conspirators agreed to, and actually did, operate LTC Professional Consultants Inc. (LTC) in order to fraudulently bill the Medicare program for home health care services, including diabetic injections, skilled nursing visits, physical therapy, and other treatments and services. Professional Home Care Solutions Inc. was another home health agency under Luis’s ownership and control that was involved in the conspiracy. Luis further admitted that she and her co-conspirators enlisted and paid patient recruiters kickbacks and bribes in exchange for the referral of Medicare beneficiaries to LTC. Had Medicare known that Luis paid bribes and kickbacks to attract beneficiaries to her facilities, Medicare would not have paid any claims submitted on behalf of those beneficiaries.
Judge Cooke determined at sentencing that Luis was responsible for an intended loss of $74 million to the Medicare program.
Luis was charged along with Elsa Ruiz, 49, and Myriam Acevedo, 68, both of Miami, Florida, in an indictment returned on Oct. 3, 2012. Acevedo pleaded guilty in May 2013 to conspiracy to pay health care kickbacks and payment of kickbacks in connection with a federal health care benefit program. She was sentenced to 60 months in prison and ordered to pay $27 million in restitution. Ruiz pleaded guilty to conspiracy to commit health care fraud. She was sentenced to 80 months in prison and ordered to pay $45 million in restitution.
The FBI and HHS-OIG investigated this case. Trial Attorneys David Snider, Patrick Mott, and L. Rush Atkinson of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
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.
Owner of Two Miami Home Health Agencies Sentenced to More Than Six Years in Prison for Role in $74 Million Medicare Fraud ConspiracyRead the Press Release
The owner and operator of two defunct Miami home health agencies was sentenced today to 80 months in prison for her role in a $74 million conspiracy to defraud the Medicare program.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Sila Luis, 59, of Miami, Florida, was sentenced by U.S. District Judge Marcia G. Cooke of the Southern District of Florida. Judge Cooke also ordered the defendant to pay $45 million in restitution and to forfeit the gross proceeds traced to the offense. Luis pleaded guilty on June 28, to one count of conspiracy to commit health care fraud.
As part of her guilty plea, Luis admitted that, between January 2006 and June 2012, she and her co-conspirators agreed to, and actually did, operate LTC Professional Consultants Inc. (LTC) in order to fraudulently bill the Medicare program for home health care services, including diabetic injections, skilled nursing visits, physical therapy, and other treatments and services. Professional Home Care Solutions Inc. was another home health agency under Luis’s ownership and control that was involved in the conspiracy. Luis further admitted that she and her co-conspirators enlisted and paid patient recruiters kickbacks and bribes in exchange for the referral of Medicare beneficiaries to LTC. Had Medicare known that Luis paid bribes and kickbacks to attract beneficiaries to her facilities, Medicare would not have paid any claims submitted on behalf of those beneficiaries.
Judge Cooke determined at sentencing that Luis was responsible for an intended loss of $74 million to the Medicare program.
Luis was charged along with Elsa Ruiz, 49, and Myriam Acevedo, 68, both of Miami, Florida, in an indictment returned on Oct. 3, 2012. Acevedo pleaded guilty in May 2013 to conspiracy to pay health care kickbacks and payment of kickbacks in connection with a federal health care benefit program. She was sentenced to 60 months in prison and ordered to pay $27 million in restitution. Ruiz pleaded guilty to conspiracy to commit health care fraud. She was sentenced to 80 months in prison and ordered to pay $45 million in restitution.
The FBI and HHS-OIG investigated this case. Trial Attorneys David Snider, Patrick Mott, and L. Rush Atkinson of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Orchard Park Pain Doctor Arrested; Charged with Using Patient Names Fraudulently to Obtain Controlled SubstancesRead 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 Dr. Paul Biddle, 53, of Amherst, NY, was arrested and charged by criminal complaint with obtaining controlled substances through fraud and identity theft. The drug charges carry a maximum possible term of four years in prison, while the identity theft charges carry a maximum possible term of five years in prison.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that Biddle is an anesthesiologist and pain management doctor who also operates a medical marijuana practice.
According to the complaint, in September 2017, federal agents reviewed information from the New York State Bureau of Controlled Substances/Bureau of Narcotic Enforcement (BNE) regarding prescriptions issued by the defendant. The review showed that Biddle was prescribing controlled substances for 23 of his patients through a pharmacy in Tampa, Florida. Such prescriptions, which were paid for without using insurance, were sent directly to the defendant’s home address in Amherst or his office in Orchard Park, NY. Between November 11, 2013, to October 16, 2017, Biddle wrote and received a total of 888 prescriptions for controlled substances in this manner from the Tampa pharmacy. The prescriptions were for opioids including hydromorphone HCL, fentanyl citrate, and morphine sulfate. Two of the 23 patients for whom defendant wrote the prescriptions were already deceased at the time that defendant wrote a combined total of 33 separate controlled substance prescriptions for them.
Evidence obtained from Dr. Biddle’s trash suggest that the opioids he was fraudulently receiving, as well as marijuana, were being used unlawfully at his home.
The defendant made his initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy and was released, with the express condition that he not practice medicine or be permitted to write prescriptions pending his next court appearance on November 27, 2017.
“The harm caused by drug addiction, particularly opioids knows no boundaries,” said U.S. Attorney Kennedy. “From LeRoy Avenue to LeBrun Drive and from Olcott to Orchard Park, lives across our region are being ruined, and even lost, every day as a result of opioid addiction. Sadly, it appears that Dr. Biddle used his medical license as a license both to steal his patient information and to divert drugs to himself. Today’s arrest reminds us that no one is immune from the deleterious impact of drug addiction.”
The complaint is the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Federal Bureau of Investigation, Western New York Healthcare Fraud Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; the New York State Department of Financial Services, under the direction of Maria T. Vullo, Superintendent of Financial Services; Department of Health and Human Services, Office of Inspector General, Office of Investigations, under the direction of Special Agent-in-Charge Scott Lampert; and the Amherst Police Department, under the direction of Chief John Askey.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Norwalk Man Sentenced to Five Years in Federal Prison for Using Internet to Entice Minor to Have SexRead the Press Release
LOS ANGELES – A Norwalk man has been sentenced to five years in federal prison for using the internet as part of his efforts to solicit a 15-year-old girl to have sex.
Mauricio Edgardo Estrada, 29, who at the time of the offense was a police officer with the Los Angeles Unified School District, was sentenced yesterday by United States District Judge Dale S. Fischer.
Estrada pleaded guilty in June to one count of using the internet to transmit information about a minor in connection with criminal sexual activities.
The case against Estrada was the result of an undercover operation by the Los Angeles Regional Human Trafficking Task Force, which includes representatives of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), the Los Angeles County Sheriff’s Department and the Department of State’s Diplomatic Security Service. The Task Force was conducting an anti-sex trafficking operation in Artesia and posted an advertisement on the Craigslist website that was designed to attract individuals interested in engaging in commercial sex acts with minors.
On April 20, 2016, Estrada responded to the advertisement via e-mail and subsequently engaged in a series of text messages with an undercover agent he thought was a 15-year-old girl, according to court documents. Estrada agreed to pay $150 to engage in sex with the “girl.” When he arrived at a gas station in Artesia for the encounter with the “girl,” Estrada had condoms and approximately $150 in his possession.
The case against Estrada was prosecuted by Assistant United States Attorney Lana Morton-Owens of the Violent and Organized Crime Section
Non-Indian Man from Santa Fe County Sentenced for Assault on Indian WomanRead the Press Release
ALBUQUERQUE – Manuel A. Caudillo, 29, a non-Indian man from Alcalde, N.M., was sentenced today in federal court in Albuquerque, N.M., to nine months in prison followed by one year of supervised release for his conviction on a battery on a household member charge.
Caudillo was charged in a criminal complaint filed on Feb. 4, 2016, with assault of an intimate partner by strangulation. According to the complaint, Caudillo assaulted the victim, a Pojoaque Pueblo woman, on Jan. 24, 2016, in the Pojoaque Pueblo within Santa Fe County, N.M., by strangling the victim with his hands to the point the victim lost consciousness, and by attempting to wrap a cord around the victim’s neck. The victim suffered bruising to her forehead, redness to her neck consistent with being strangled and bruising to her arms and knees.
Caudillo was subsequently charged in a four-count indictment on March 8, 2016, with three counts of assault of an intimate partner by strangulation or suffocating, and assault with a dangerous weapon with intent to do bodily harm. According to the indictment, Caudillo committed the crimes on Jan. 24, 2016, on the Pojoaque Pueblo in Santa Fe County.
On Aug. 18, 2017, Caudillo pled guilty to an information charging him with three counts of battery against a household member. In entering the guilty plea, Caudillo admitted that on Jan. 24, 2016, he got into a verbal and physical fight with the victim. During the fight, Caudillo grabbed the victim and pushed her onto a couch, and angrily grabbed and shoved her in a hallway. Police noticed injuries that Caudillo inflicted on the victim.
This case was investigated by the Northern Pueblos Agency of the BIA, Office of Justice Services. The case was prosecuted by Assistant U.S. Attorney Nicholas J. Marshall and Special Assistant U.S. Attorney Lucy B. Solimon pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
New Orleans Attorney Sentenced for His Role in Honest Services Fraud and Bribery Scheme at Orleans Parish Criminal District CourtRead the Press Release
Acting U. S. Attorney Duane A. Evans announced that JAMES JOHNSON, age 38 of New Orleans, was sentenced today by United States District Judge Ivan L.R. Lemelle after previously pleading guilty in the midst of trial for his role in operating a long-running and extensive bribery and honest services fraud scheme related to a series of bail bonds business located at 536-38 South Broad Street in New Orleans. JOHNSON previously pleaded guilty to misprision of a felony. Today, Judge Lemelle sentenced him to 5 years probation and ordered him to forfeit $25,000 and pay a fine of $25,000. Judge Lemelle also postponed ruling on whether JOHNSON must also pay restitution pending further proceedings.
According to the court documents, JOHNSON’S father, Rufus Johnson, who was previously sentenced to 74 months in prison, operated as an unlicensed bail bondsman for at least between 2003 and 2013, accepting money from customers in exchange for getting Orleans Parish Prison inmates released from jail, in violation of state law. To circumvent the prohibition against unlicensed individuals operating as bailbondsmen, Rufus Johnson opened bail bonds business under JOHNSON’S name and then used the licenses of JOHNSON and other employees and contracts of paid employee bail bondsmen and corruptly paid certain public employees in the Orleans Parish criminal justice system to release inmates on their own recognizance, to provide and alter information in protected computer systems, and to make false certifications on official bond documents. JOHNSON was aware that the business made cash payments to deputy clerks in the Clerk’s Office of the Orleans Parish Criminal District Court in order to obtain documents and information, including sensitive and official-use-only information, from protected computer systems servicing the criminal justice system. This information was valuable to bail bondsmen who were seeking to post bonds for inmates and to address bond forfeitures.
Additionally, JOHNSON was aware that Rufus Johnson paid bribes and kickbacks to a deputy clerk at Criminal District Court who worked as a deputy at CINTAP, an office located in the Orleans Parish Prison’s Central Lockup where one or two deputy sheriffs on shift received and processed telephone orders from judges and other appropriate elected officials to release pre-trial prison inmates on their own recognizance, or to reduce or otherwise alter inmates’ bail amounts or bail status.
After the scheme was unearthed in 2010, JOHNSON sought to obstruct the investigation by instructing other persons involved with the bail business that if law enforcement should ask what Rufus Johnson did there, they should lie and say that he was merely the janitor, or that his primary role at the office was cleaning up and sweeping, and that he did not sell, solicit, or negotiate bonds, and that he was not the primary operator of the bailbonds business. Several of these individuals subsequently repeated this lie to agents of the Federal Bureau of Investigation. JOHNSON also testified falsely before a federal grand jury about the nature of his father’s role at the bailbonds business.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the New Orleans Police Department, and the Orleans Parish District Attorney’s Office, with the assistance of the Metropolitan Crime Commission. Assistant United States Attorneys Harry W. McSherry, Jordan Ginsberg, Brittany Reed, and Michael B. Redmann were in charge of the prosecution.
Milwaukee Woman Sentenced to Prison for False Tax Return Scheme and Identity TheftRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 6, 2017 Trulunda Stenson (age 35) of Milwaukee, Wisconsin was sentenced to 30 months in prison, followed by three years of supervised release. In addition, United States District Judge Pamela Pepper ordered restitution in an amount to be determined at a later date. On June 30, 2017, Stenson was convicted by a jury on each of the following 34 counts charged in the indictment: (1) ten counts of filing false tax refund claims, in violation of Title 18, United States Code, Section 287; (2) eleven counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and (3) eleven counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
As proven at trial, beginning in January 2011, Stenson pursued a scheme to file false income tax returns that claimed refund payments from the Internal Revenue Service (IRS). Stenson and others gathered individuals’ social security numbers and other personal information. Stenson then prepared federal income tax returns that fraudulently claimed wages and federal tax-withholding amounts from several employers, even though in many cases, those employers had not actually paid wages or withheld taxes for the individuals. Stenson submitted the returns electronically to the IRS, signing the returns for individuals, many of whom she had never met. Stenson filed over 80 fraudulent tax returns seeking more than $300,000 in tax refund payments. In addition, the jury also found Stenson guilty of filing fraudulent 2011 and 2012 income tax returns in her own name.
This case resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation. The case was prosecuted by Assistant United States Attorneys Matthew Jacobs and Matthew Krueger.
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For Additional Information Contact:
Public Information Officer Dean Puschnig (414) 297-1700
Michigan City Man SentencedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Daniel Mallet, age 32, of Michigan City, Indiana, was sentenced before South Bend District Court Judge Jon E. DeGuilio for distributing heroin.
Mallet was sentenced to 120 months imprisonment followed by three years of supervised release.
According to documents in this case, on May 5, 2016, Mallet distributed heroin to an individual who was working with law enforcement.
This case was investigated by the Drug Enforcement Administration and handled by Assistant U.S. Attorney Frank E. Schafer.
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Miami-Area Man Pleads Guilty for Role in $63 Million Health Care Fraud SchemeRead the Press Release
A Miami-area, Florida man pleaded guilty today for his role in a $63 million health care fraud scheme involving a now-defunct community mental health center located in Miami that purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness.
Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Robert Lasky of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, made the announcement.
Samuel Konell, 70, of Boca Raton, Florida, pleaded guilty to one count of conspiracy to defraud the United States and to receive health care kickbacks before U.S. District Judge Jose E. Martinez of the Southern District of Florida. Sentencing has been scheduled for Jan. 30 before Judge Martinez. Konell was charged in an indictment unsealed on June 9.
As part of his guilty plea, Konell admitted that from approximately January 2006 through June 2012, he received kickbacks and/or bribes in return for referring Medicare beneficiaries from the Miami-Dade state court system to Greater Miami Behavioral Healthcare Center Inc. (Greater Miami) to serve as patients.
Specifically, Konell admitted that he coordinated with criminal defendants in the state court system to obtain court orders for mental health treatment in lieu of incarceration so that Konell could refer those individuals to Greater Miami to serve as patients in return for kickbacks and/or bribes. Konell further admitted that he did so knowing that certain of those individuals were not mentally ill or otherwise did not meet the criteria for PHP treatment.
In addition, Konell admitted that he and his co-conspirators at Greater Miami took steps to disguise the true nature of the kickbacks and/or bribes that Greater Miami paid to Konell and other patient brokers. Specifically, Konell was placed on the Greater Miami payroll to make the kickbacks and/or bribes appear as though they were legitimate salary payments, Konell admitted.
Konell further admitted that he was originally paid a flat monthly rate that was based on the number of patients he referred to Greater Miami from the state court system, and when Konell referred more patients to Greater Miami, his co-conspirators found ways to pay him over and above his regular kickback payments, including by providing him with holiday bonuses.
In furtherance of the kickback conspiracy, Konell made representations to judges and others in the Miami-Dade state court system that the individuals he referred to Greater Miami received medically necessary PHP services from Greater Miami when in reality such services were not always needed, he admitted.
According to plea documents, Konell’s co-conspirators caused the submission of over $63 million in false and fraudulent claims to Medicare. These claims were based on kickbacks and/or bribes paid to Konell and others and were for services that were medically unnecessary, were not eligible for Medicare reimbursement or were never provided by Greater Miami. Konell admitted that his participation in the Greater Miami scheme resulted in the submission of claims to Medicare totaling between at least approximately $9.5 and $25 million.
Eleven other individuals have pleaded guilty for their roles in the scheme, including the owner of Greater Miami, three administrators and seven patient brokers.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Senior Trial Attorney Christopher J. Hunter and Trial Attorneys Elizabeth Young and Leslie Wright of the Fraud Section are prosecuting the case.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
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.
Miami-Area Man Pleads Guilty for Role in $63 Million Health Care Fraud SchemeRead the Press Release
A Miami-area, Florida man pleaded guilty today for his role in a $63 million health care fraud scheme involving a now-defunct community mental health center located in Miami that purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge Robert Lasky of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Samuel Konell, 70, of Boca Raton, Florida, pleaded guilty to one count of conspiracy to defraud the United States and to receive health care kickbacks before U.S. District Judge Jose E. Martinez of the Southern District of Florida. Sentencing has been scheduled for Jan. 30 before Judge Martinez. Konell was charged in an indictment unsealed on June 9.
As part of his guilty plea, Konell admitted that from approximately January 2006 through June 2012, he received kickbacks and/or bribes in return for referring Medicare beneficiaries from the Miami-Dade state court system to Greater Miami Behavioral Healthcare Center Inc. (Greater Miami) to serve as patients.
Specifically, Konell admitted that he coordinated with criminal defendants in the state court system to obtain court orders for mental health treatment in lieu of incarceration so that Konell could refer those individuals to Greater Miami to serve as patients in return for kickbacks and/or bribes. Konell further admitted that he did so knowing that certain of those individuals were not mentally ill or otherwise did not meet the criteria for PHP treatment.
In addition, Konell admitted that he and his co-conspirators at Greater Miami took steps to disguise the true nature of the kickbacks and/or bribes that Greater Miami paid to Konell and other patient brokers. Specifically, Konell was placed on the Greater Miami payroll to make the kickbacks and/or bribes appear as though they were legitimate salary payments, Konell admitted.
Konell further admitted that he was originally paid a flat monthly rate that was based on the number of patients he referred to Greater Miami from the state court system, and when Konell referred more patients to Greater Miami, his co-conspirators found ways to pay him over and above his regular kickback payments, including by providing him with holiday bonuses.
In furtherance of the kickback conspiracy, Konell made representations to judges and others in the Miami-Dade state court system that the individuals he referred to Greater Miami received medically necessary PHP services from Greater Miami when in reality such services were not always needed, he admitted.
According to plea documents, Konell’s co-conspirators caused the submission of over $63 million in false and fraudulent claims to Medicare. These claims were based on kickbacks and/or bribes paid to Konell and others and were for services that were medically unnecessary, were not eligible for Medicare reimbursement or were never provided by Greater Miami. Konell admitted that his participation in the Greater Miami scheme resulted in the submission of claims to Medicare totaling between at least approximately $9.5 and $25 million.
Eleven other individuals have pleaded guilty for their roles in the scheme, including the owner of Greater Miami, three administrators and seven patient brokers.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Senior Trial Attorney Christopher J. Hunter and Trial Attorneys Elizabeth Young and Leslie Wright of the Fraud Section are prosecuting the case.
The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Massachusetts Man Charged with Sex Trafficking and KidnappingRead the Press Release
An indictment was unsealed today in the U.S. District Court for the District of Maine charging Rashad Sabree, 37, of Boston, Massachusetts, with two counts of sex trafficking by force, fraud, or coercion, two counts of kidnapping, and one count of interstate transportation for purposes of prostitution, announced Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division and U.S. Attorney Halsey B. Frank of the District of Maine.
According to the indictment, in late 2015 and early 2016, the defendant used force, fraud, and coercion to cause two women to engage in commercial sex acts in Maine before attempting to drive them to Massachusetts against their will.
The District of Maine is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a minimum sentence of 15 years’ imprisonment and a maximum sentence of life, a $250,000 fine, and mandatory restitution.
The case is being investigated by the Federal Bureau of Investigation, U.S Immigration and Customs Enforcement’s Homeland Security Investigations, and the Biddeford Police Department. It is being prosecuted by Assistant U.S. Attorney Julia Lipez and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Mark A. Klaassen Sworn in as United States AttorneyRead the Press Release
CHEYENNE, WYOMING. –Mark A. Klaassen has taken the oath of office to become the United States Attorney for the District of Wyoming. Klaassen was nominated by President Donald Trump on July 21, 2017, and confirmed by the U.S. Senate on November 9, 2017. Federal District Court Judge Alan B. Johnson administered the oath of office.
Upon officially entering office, United States Attorney Mark A. Klaassen said, "It is an honor to be confirmed as the next United States Attorney for the District of Wyoming. I am pleased to continue working with a talented group of colleagues, as well as our federal, state, and local law enforcement partners. Wyoming is a special place to live and raise a family. As United States Attorney, I am committed to sustaining efforts necessary to protect our communities and uphold the rule of law.
We face many challenges in reducing violent crime in our neighborhoods, stemming the tide of illegal drugs and prescription opioid abuse affecting our communities, and protecting the most vulnerable in our society from exploitation. Together with our law enforcement partners, we will make a difference.
I appreciate the confidence placed in me by the President, as well as the support of Senators Enzi and Barrasso, and Congresswoman Cheney throughout the confirmation process. I look forward to serving the people of Wyoming."
As U.S. Attorney, Klaassen is the top-ranking federal law enforcement official in the District of Wyoming. He oversees a staff of 42 employees, including 17 attorneys and 25 non-attorney support personnel. The office is responsible for prosecuting federal crimes occurring in the district, including crimes related to public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Prior to his nomination, Klaassen served for almost nine years as an Assistant United States Attorney for the District of Wyoming, where he worked on affirmative civil and financial litigation cases. During that time, he was also elected to the Board of Trustees for Laramie County School District Number One.
Before joining the United States Attorney’s Office, Klaassen was appointed by President George W. Bush to serve as Chief of Staff to the General Counsel for the Department of Homeland Security from 2007 to 2009. Prior to that appointment, Klaassen worked as General Counsel for the U.S. House Committee on Homeland Security from 2003 to 2007.
Klaassen began his career in Cheyenne as a law clerk for the Honorable Wade Brorby of the United States Court of Appeals for the Tenth Circuit, and later joined the law firm of Latham & Watkins LLP. He received his B.S. in Finance, summa cum laude, from Oral Roberts University and his J.D., magna cum laude, from Notre Dame Law School.
Klaassen has deep ties to Wyoming. He was raised in Gillette, where he attended public school and graduated in 1991. He and his wife Christy now reside in Cheyenne with their three children.
Marion County man admits to making methamphetamineRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Fairmont, West Virginia man has admitted to his role in making methamphetamine, United States Attorney Bill Powell announced.
Jesse Nelson Yoho pled guilty to one count of “Possession of Pseudoephedrine to be Used in Manufacture of Methamphetamine.” Yoho admitted to possessing Pseudophedrine with the intent of making methamphetamine in Marion County in April 2015.
Yoho 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 Andrew R. Cogar is prosecuting the case on behalf of the government. The Three Rivers Drug &Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.Man Pleads Guilty to Child Pornography Charges and Failure to Register as a Sex OffenderRead the Press Release
BOSTON – A former Massachusetts man pleaded guilty yesterday in federal court in Boston to possessing and distributing child pornography and to failing to register as a sex offender. The offenses stem from two separate cases.
Scot Letourneau, 44, formerly of Quincy and Maine, pleaded guilty to one count of distribution of child pornography and one count of possession of child pornography; and in a separate case, he pleaded guilty to failure to register as a sex offender. U.S. District Court Judge Denise J. Casper scheduled sentencing for Feb. 27, 2018.
In early 2015, law enforcement officers learned that an individual was trading images of child pornography on Kik Messenger, an instant messaging application, with an individual in Connecticut. Further investigation linked the Kik Messenger account to Letourneau. On May 21, 2015, a search warrant was executed at Letourneau’s home, when a preliminary review of his cellphone revealed that he exchanged images of child pornography with others. Forensic analysis revealed that Letourneau had a collection of approximately 103 videos and more than 500 images of children engaged in sexually explicit conduct and acts.
After he was arrested and charged in May 2015, the government sought to detain Letourneau pending trial based on his prior convictions, including a 2004 conviction in Cheshire County Superior Court for distribution of child pornography. However, on Aug. 5, 2015, the court released Letourneau on an electronic bracelet and home confinement in Maine. On Nov. 3, 2015, Letourneau fled to New Mexico; he was apprehended in Denver in March 2017.
In addition, as a result of his 2004 conviction for distribution of child pornography in New Hampshire, Letourneau is required to register as a sex offender, which he failed to do while living in New Mexico as a fugitive under an alias.
Due to Letourneau’s previous child pornography conviction, the current charge of distribution of child pornography provides for a mandatory minimum sentence of 15 years and no greater than 40 years in prison; and the charge of possession of child pornography provides for a mandatory minimum of 10 years and no greater than 20 years in prison. Both charges provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charge of failure to register as a sex offender provides for no greater than 10 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. 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, U.S. Marshal John Gibbons for the District of Massachusetts and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistance was also provided by the U.S. Marshals Service for the District of Colorado; the Adams County (Colo.) Sheriff’s Department; Connecticut State Police; Quincy Police Department; and U.S. Coast Guard. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Man Pays Price for Trafficking Box Turtles to Corpus ChristiRead the Press Release
CORPUS CHRISTI, Texas - A 34-year-old Louisiana man has been convicted and fined for violating the Lacey Act, announced Acting U.S. Attorney Abe Martinez along with Acting Assistant Director Edward Grace of the U.S. Fish and Wildlife Service (FWS).
Byron Paul Pitre pleaded guilty before Senior U.S. District Judge John D. Rainey today. The court then ordered him to serve three years of probation and pay a $2,500 fine. “Our wildlife and environment are a precious natural resource that we need to protect,” said Judge Rainey.
"One of the primary objectives of the FWS - Office of Law Enforcement is to combat the illegal trafficking of wildlife,” said Grace. “The special agents and federal prosecutors work hard to bring defendants to justice, and hopefully this case provides a deterrence to others that want to profit from the illegal sales of protected wildlife.”
The Lacey Act prohibits people from importing, exporting, transporting, selling, receiving, acquiring or purchasing any fish or wildlife or plant taken, possessed, transported or sold in violation of any law, treaty or regulation of the United States or in violation of any tribal law.
During the hearing today, the court heard that in February 2017, Pitre sold and shipped three wild Louisiana box turtles (Terrapene Carolina) to an undercover agent in Corpus Christi. The sale and transportation of wild box turtles from Louisiana to Texas is illegal under Louisiana state law.
In May 2017, agents executed a search warrant at Pitre’s residence in Louisiana. At that time, he admitted to obtaining turtles that were unlawfully caught in the wild and selling them to individuals in Texas, Nevada and New Jersey. Agents also seized more than 230 box turtles, 119 map turtles, 45 leopard tortoises, 20 Sulcata tortoises and 88 tortoise eggs.
The FWS conducted the investigation. Assistant U.S. Attorney Hugo R. Martinez prosecuted the case.
Man Convicted for Using Stolen Identities to Attempt to Defraud Various Financial Institutions of More Than $1.7 Million DollarsRead the Press Release
Memphis, TN – After a six-day jury trial in the U.S. District Court, a Memphis man has been found guilty as charged of using stolen identities to defraud over 100 individual victims and various financial institutions of more than $1.7 million dollars. In addition, he was found guilty on two counts of tampering with government witnesses. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the convictions today.
According to the indictment, Jeremy Jones, 39, of Memphis, executed a scheme to steal the identities of personal acquaintances, car dealers and over 145 Memphis Neurology patients throughout 2011, 2012 and 2015. Jones used this identifying information to apply for loans and credit cards and open bank accounts in the individuals’ names without their knowledge. A co-conspirator, who was employed at Memphis Neurology, removed patient information from the company’s database and provided it to Jones upon his request. Jones agreed to compensate the co-conspirator for providing him with this information.
Jones sent and received loan applications, checks and other financial information from numerous lenders throughout the United States via the internet and mail carriers. The potential loss is $1.7 million.
On February 16, 2016, Jones was originally indicted on individual counts of conspiracy to commit identity theft and mail fraud, and separate counts of identity theft, mail fraud, and aggravated identity theft. On October 3, 2017, a superseding indictment added two additional counts of obstruction of justice for tampering with two government witnesses.
The sentencing hearing is set for March 8, 2018. The maximum prison sentence for conspiracy is 5 years; the maximum prison sentence for identity theft is 5 years; and the maximum prison sentence for mail fraud is 20 years. The maximum prison sentence for aggravated identity theft is a mandatory penalty of 2 years imprisonment consecutive to any other sentence imposed. For the obstruction of justice charge, the maximum sentence is 20 years.
"Identity theft and financial fraud of this magnitude and scale by the defendant has victimized hundreds of people by compromising their personal and private information for his own selfish and unjust enrichment, and I am pleased that we have been able to hold the defendant accountable and achieve justice for the victims. I want to commend the good investigative work done in this case by the U.S. Postal Inspection Service and U.S. Secret Service, and I want to recognize the outstanding prosecutorial efforts of Assistant U.S. Attorneys Damon K. Griffin and Murre Martindale in presenting this complex case to the jury on behalf of the government," said U.S. Attorney D. Michael Dunavant.
MS-13 Leader Convicted by Federal Jury of RICO ConspiracyRead the Press Release
BOSTON – A federal jury has convicted an MS-13 gang leader of racketeering conspiracy, following a two week trial in Boston.
Rafael Leoner Aguirre, a/k/a “Tremendo,” 22, a Salvadoran national, was found guilty of 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 2, 2018.
Leoner Aguirre was the leader of the Enfermos Criminal Salvatrucha clique (“Enfermos clique”) of La Mara Salvatrucha, or MS-13. The Enfermos clique was one of many MS-13 cliques operating in Massachusetts from 2013 to 2016.
MS-13 is a violent, transnational criminal organization whose members engage in racketeering activity involving murder, robbery and drug trafficking. Multiple witnesses testified during trial that MS-13’s core principles include a desire to control territory by killing rival gang members, and a desire to kill those who are suspected of cooperating with law enforcement. Prospective members of MS-13 are required to complete an initiation process—to move from “paro,” to “observation,” to “chequeo,” to “homeboy.” Further, MS-13 often recruits younger members in local high schools.
In 2013 and early 2014, there were several “paros” and “chequeos” in Chelsea, Mass., who were associated with MS-13, but who lacked homeboy leadership. These MS-13 members included Hector Ramires, a/k/a “Cuervo;” Bryan Galicia Barillas, a/k/a “Chucky;” David Lopez, a/k/a “Cilindro,” a/k/a “Villano;” Daniel Menjivar, a/k/a “Roca,” a/k/a “Sitiko;” Angel Pineda, a/k/a “Bravo;” and Kevin Ayala, a/k/a “Gallito.”
In 2013, Leoner Aguirre entered the United States illegally from El Salvador, and in March 2014 he moved to the Chelsea area to provide leadership and to activate, organize, and supervise the group.
Even before arriving in Chelsea, Leoner Aguirre began recruiting and planning MS-13 activities. Among other things, Leoner Aguirre created recruitment videos for MS-13 and posted them on YouTube. This enabled younger members to view these videos, including one witness who testified that he first saw these videos while at a local high school.
Once Leoner Aguirre arrived in Massachusetts, he encouraged members of the clique to attack and kill rival gang members, in addition to committing other racketeering acts such as robberies. Leoner Aguirre himself committed a number of racketeering acts, including an attempted murder involving a shooting and another attempted murder involving a machete. More junior members of the Enfermos clique also committed a number of racketeering acts after Leoner Aguirre arrived in Massachusetts, including a shooting that resulted in the death of an innocent bystander.
The other members of the Enfermos clique—Ramires, Galicia Barillas, Lopez, Menjivar, Pineda and Ayala—were also arrested and charged with RICO conspiracy and previously pleaded guilty. Ramires pleaded guilty pursuant to a plea agreement under which the parties will recommend 27 years in prison. Galicia Barillas pleaded guilty pursuant to a plea agreement under which the parties will recommend 22 years in prison. Lopez and Menjivar pleaded guilty pursuant to plea agreements in which there is no agreement on sentencing. Pineda was previously sentenced to 93 months in prison and Ayala was sentenced to 42 months in prison. The defendants are also subject to deportation upon the completion of their sentences.
Leoner Aguirre faces up to 20 years in prison, three years of supervised release, and will be subject to deportation upon the 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.
Lynchburg Man Sentenced on Federal Securities Fraud ChargeRead the Press Release
Lynchburg, VIRGINIA – A Lynchburg man convicted of securities fraud was sentenced last week in the United States District Court for the Western District of Virginia in Lynchburg, United States Attorney Rick A. Mountcastle announced.
Robert Scott Mattingley, 54, was sentenced last week to 50 months in federal prison and three years of supervised release after the Court heard evidence that he defrauded more than 80 victims out of $847,000 in connection with a commercial loan fraud scheme. Mattingley previously pleaded guilty in this case to one count of securities fraud.
According to evidence presented at previous hearings by Special Assistant United States Attorney Kari Munro, between 2008 and 2012, Mattingley owned and operated Virginia Commercial Capital Corporation, based in Lynchburg. Through this company, Mattingley held himself out as a commercial broker who could obtain favorable rates on loans for commercial projects provided his customers could make one or, in some cases, several, cash deposits toward their loans.
Mattingely failed to obtain commercial loans on behalf of his customers as agreed and kept their deposits, using them for personal expenses. In all, he obtained more than $845,000 from as many as 80 individuals located throughout the United States.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia State Police. Special Assistant United States Attorney Kari Munro and Department of Justice, Tax Division Trial Attorney Sean Beaty prosecuted the case for the United States.