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10 January 2018
Jacksonville Man Pleads Guilty After Knocking on Stranger’s Window with A RevolverRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Tyree Alexia Hall (27, Jacksonville) today pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, at around 2 a.m. on March 19, 2017, officers from the Jacksonville Sheriff’s Office responded to a 911 call in a residential neighborhood involving Hall. Callers reported that Hall was holding a firearm and knocking on the window of a home, and that he had threatened to shoot a dog. Upon arriving at the location, two officers observed Hall standing in the road holding a dark object. After shining a light on him, the officers observed Hall drop the object in the street. Hall was apprehended and admitted to the officers that he had possessed a firearm. The gun was recovered and identified as a Ruger .38 caliber revolver.
Hall was previously convicted in 2010 and 2012 for possession of cocaine and burglary with assault or battery, respectively. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Indictment: Junction City Woman Produced Child PornographyRead the Press Release
KANSAS CITY, KAN. – A Junction City woman was indicted Wednesday on charges of producing child pornography, U.S. Attorney Tom Beall said.
Kayla Michelle Simpson, 22, Junction City, Kan., is charged with one count of using a child to produce child pornography and one count of violating the conditions imposed on a registered sex offender. The crime is alleged to have occurred in July 2016 in Junction City.
The indictment alleges that Simpson, who was registered sex offender, enticed a 16-year-old victim to engage in sexual activity for the purpose of producing child pornography.
If convicted, Simpson faces a penalty of not less than 15 years and not more than 30 years in federal prison on the production charge, and up to 10 years and a fine up to $250,000 on the sex offender charge. The FBI investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
OTHER INDICTMENTS
Mack W. Colvin, Jr., 31, Park City, Kan., is charged with one count of bank robbery and two counts of brandishing a firearm.
The indictment alleges Colvin robbed the Fidelity Bank branch at 1306 N. Woodlawn in Wichita on Dec. 13, 2017, and the Wheat State Credit Union at 1400 S. Oliver in Wichita on Dec. 19, 2017. In both cases, he is charged with brandishing a firearm.
If convicted, he faces up to 25 years in federal prison and a fine up to $250,000 on each robbery charge, and not less than seven years and a fine up to $250,000 on each firearm charge. The FBI and the Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
John Stephen Kissell, 31, who is in custody, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred in September 2017 in Topeka, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illinois Man Sentenced to Prison for Using Stolen IDs of U.S. Air Force Members to File Fraudulent Tax ReturnsRead the Press Release
A Harvey, Illinois, man was sentenced to 63 months in prison today for his role in a stolen identity refund fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois.
According to documents filed with the court, from around November 2014 to March 2015, Jonathan Herring, 34, working with at least two others, prepared and filed income tax returns with the Internal Revenue Service (IRS) using stolen names and social security numbers of U.S. Air Force service members, and deposited the fraudulently obtained tax refunds into bank accounts that he controlled. In total, Herring filed approximately 225 fraudulent returns seeking approximately $845,979 in tax refunds.
In addition to the term of imprisonment, Herring was ordered to serve four years of supervised release and to pay $593,786 in restitution to the IRS. Herring pleaded guilty to wire fraud and aggravated identity theft in February 2016.
Principal Deputy Assistant Attorney General Zuckerman and U.S Attorney Lausch thanked agents of IRS Criminal Investigation, who conducted the investigation and Trial Attorneys Michael C. Boteler and Timothy M. Russo of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Houston Man Sentenced to 150 Months in Federal Prison for His Role in Tilak Jewelers RobberyRead the Press Release
DALLAS — Terrence Lynn Thompson, 54, of Houston, Texas was sentenced today by U.S. District Judge Ed Kinkeade to serve a total of 150 months in federal prison, following his guilty plea in January 2017 to his role in the conspiracy to rob Tilak Jewelers in Irving, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Thompson pleaded guilty to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Thompson has been in custody since his arrest in March 2016.
Thompson was charged along with eleven other individuals in an indictment in February 2016. Afraybeom Traverom Jackson, Dominique Pearson, Hilton Murdock Aitch, Irving Tyrone Flanagan, Larry Solomon, Joshua Deunte Caldwell, Anthony Ray Turner, Jr, Treveon Dominique Anderson, Michael Cornelious, Xavier Rashad Ross, and Vanlisa Scott, were each charged with one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. On October 12, 2017, Jimmy Hatchett was charged for the same robbery. Out of the thirteen, eleven have pleaded guilty and two are set for trial on January 29, 2018.
According to plea documents filed in the case, in the early morning hours on November 17, 2013, Aitch, Jackson, Caldwell, Pearson, Flanagan, Solomon, Aitch, Thompson, Turner, Anderson, Cornelious, and Ross, traveled from Houston, Texas, to the Dallas, Texas area with the specific intent to rob the Tilak Jewelers store located at 8300 North MacArthur Boulevard, Suite 100, Irving, Texas. They stole a cargo van and a minivan after they arrived in the Dallas, Texas, area in order to avoid detection and apprehension by law enforcement.
Jackson, Caldwell, Pearson, Turner, Anderson, and Ross drove together in the stolen cargo van to the Tilak Jewelers store, with the specific intent to commit the robbery. Aitch, Flanagan, and Thompson participated in planning the robbery and positioned themselves outside the Tilak Jewelers store, but maintained communications with Jackson for the purpose of monitoring the robbery and alerting the participants of the presence of law enforcement.
Prior to entering the Tilak Jewelers store, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross disguised their identities by wearing longsleeved clothing, long pants, gloves, and items covering their faces. Jackson and the others entered the jewelry store by smashing the locked glass door with a hammer. After gaining entry into the store, they restrained the owners of the jewelry store with zip-ties, smashed jewelry display cases, and took jewelry from the owners and employees of Tilak Jewelers.
After securing the jewelry, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross fled from the robbery using the stolen cargo van. They abandoned the cargo van at a predetermined location, where Solomon was waiting in the stolen minivan. Solomon then drove them to a second predetermined location, where Cornelious was waiting in a switch vehicle. Cornelious then used the switch vehicle to further facilitate their flight from the robbery and avoid detection and apprehension by law enforcement. Scott, who had traveled from Houston, met Thompson and the other coconspirators at a different location and took possession of the stolen jewelry for the purpose of safely transporting it to Houston, Texas.
The Irving Police Department, Houston Police Department, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys Keith Robinson and John de la Garza were in charge of the prosecution.
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Houston Man Pleads Guilty to Wire Fraud Scheme Using Children’s Social Security NumbersRead the Press Release
HOUSTON – A 35-year-old Houston resident has pleaded guilty to two counts of wire fraud and one count of aggravated identity theft, announced U.S. Attorney Ryan K. Patrick.
From on or about July 27, 2016, through approximately May 19, 2017, Amir Ali Bey enacted a scheme to obtain money, cars and other luxury items by using the identities of other individuals. Bey created a number of aliases, including the name Daniel Isaiah Murray, to create credit profiles that were under his exclusive ownership and control. Bey then utilized these credit profiles to apply for various lines of credit to obtain cash.
To create these profiles, Bey would intentionally steal the Social Security numbers of children, who typically do not monitor their credit histories in the same manner as adults. Bey would then link the stolen Social Security numbers to his name, or to another alias names under his exclusive ownership and control, by adding them as authorized users on existing credit card accounts in good standing. By doing so, he created a profile and credit history for those names with credit reporting agencies such as Experian.
To further facilitate the scheme, Bey would use fraudulent drivers’ licenses and fake pay stubs, and rent mailboxes at UPS stores using fraudulently-obtained identifications.
Law enforcement conducted a search of Bey’s apartment in May 2017, at which time they found multiple fraudulent identification documents, credit cards, bank statements and other items used the facilitate the wire fraud scheme.
U.S. District Judge Kenneth Hoyt accepted the plea today and set sentencing for March 19, 2018. At the time, up to 20 years for the wire fraud and a mandatory 24 months for the aggravated identity theft which must be served consecutively to any other prison term imposed. Both convictions also carry a possible $250,000 maximum fine. Bey was permitted to remain on bond pending that hearing.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Julie N. Searle is prosecuting the case.
Honduran National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON – A Honduran national pleaded guilty today in federal court in Boston to an immigration charge.
William Maradiaga-Oseguera, 32, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 4, 2018.
On Aug. 29, 2017, law enforcement officers in Boston encountered Maradiaga-Oseguera and determined him to be illegally present in the United States. Maradiaga-Oseguera was previously deported on March 27, 2009; March 17, 2012; July 9, 2012; and Nov. 13, 2013.
Maradiaga-Oseguera faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit is prosecuting the case.
Honduran Man Sentenced for Illegal Re-Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Leonel Antonio Rodriguez Ayala, age 29, and a citizen of Honduras, was sentenced today to time served (78 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Rodriguez Ayala admitted that he is a citizen of Honduras, and that he illegally returned to the United States after he was removed to Honduras on October 3, 2013.
On October 24, 2017, an ICE Officer arrested Rodriguez Ayala in Saratoga Springs, New York.
Following his sentencing, Rodriguez Ayala was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant United States Attorney Edward P. Grogan.
Guatemalan National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – Gilberto Ramirez-Ramirez, 27, pleaded guilty today in federal court in Boston to one count of unlawful reentry of a deported alien. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for April 5, 2018.
In April 2017, law enforcement in Lynn encountered Ramirez-Ramirez and determined him to be illegally present in the United States. Ramirez-Ramirez had previously been deported on March 3, 2016.
The charge provides for a sentence of no greater than 10 years in prison, three years of supervised released, and a fine of up to $250,000. Ramirez-Ramirez will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
Georgia Man Sentenced for Defrauding Staples Inc.Read the Press Release
BOSTON – A Georgia man was sentenced today in federal court in Boston in connection with a scheme to defraud Framingham-based Staples Inc. of more than $1.4 million.
Layne Michael Gosnell, 46, was sentenced by U.S. District Court Judge Leo T. Sorokin to 21 months in prison, three years of supervised release, and ordered to pay $443,913 in restitution and $443,913 in forfeiture. In October 2017, Gosnell pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud. Gosnell pleaded guilty on Sept. 26, 2017, but the Court conducted a second plea hearing due to the fact that immediately after the first plea hearing it was determined that Gosnell tested positive for alcohol above the legal limit in Massachusetts.
Gosnell and co-conspirator John Douglas, among others, engaged in a complex scheme to defraud Staples of more than $1.4 million worth of customer loyalty rewards and product rebates by creating more than 1,100 Staples rewards accounts, often using fictitious names, addresses and contact information. Douglas created a computer script to query a Staples website and seek unclaimed customer loyalty rewards for purchases that neither he nor Gosnell made. The computer script made thousands of queries a day, amassing more than $889,000 worth of rewards in small increments, often less than one dollar at a time. Gosnell and Douglas then used the rewards like cash to buy merchandise at Staples retail locations throughout the southern United States and along the eastern seaboard, as far north as Massachusetts. Gosnell sold his share of the fraudulently obtained Staples merchandise on eBay.
Gosnell and Douglas used a similar method to claim more than $527,000 in cash rebates from Staples for products that they did not purchase.
Staples discovered the fraud and referred the matter to federal authorities.
Douglas was sentenced on Sept. 6, 2017, to 30 months in prison and ordered to pay $691,327 in restitution and $553,061 in forfeiture.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney David J. D’Addio of Lelling’s Cybercrime Unit prosecuted the case.
Former Saint John, Indiana Resident ChargedRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Christopher Raciti, age 48, formerly of Saint John, Indiana, was charged by Information with possession of child pornography.
According to documents filed in the case, between November 7, 2015 and continuing through March 9, 2016, Raciti knowingly possessed more than 600 visual depictions of minors engaged in sexually explicit conduct on his computer. A petition to enter a plea of guilty was filed in conjunction with the Information.
The United States Attorney’s office emphasizes that an Information is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This information results from an investigation conducted by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) with the case being handled by Assistant United States Attorney Toi Denise Houston.
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Former Plattsburgh Resident Sentenced to 79 Months for Online FraudRead the Press Release
ALBANY, NEW YORK – Jared R. Hudson, age 39, formerly of Plattsburgh, New York, was sentenced today to 79 months in prison and 3 years of post-imprisonment supervised release for fraud and identity theft.
The announcement was made by United States Attorney Grant C. Jaquith; Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Plattsburgh Police Chief Kenneth R. Parkinson.
Hudson, who has also resided in Florida and Texas, pled guilty on August 2, 2017. He admitted that he and Thomas J. Howe, age 38, of Plattsburgh, devised a scheme to defraud banks, merchants and individual consumers by purchasing information including credit card numbers, bank account numbers, expiration dates, security codes, answers to security questions, and other personal identification information, and to using that information to electronically purchase goods, and to fraudulently transfer and attempt to transfer funds electronically, between October 2009 until at least December 13, 2014.
Initially, Hudson used stolen credit card numbers to order merchandise online and had the merchandise shipped to him. He then used other people’s personal identification information to sign up for credit cards. He then opened investment accounts in his name, which were funded with money taken from other people’s bank accounts using stolen account numbers, routing numbers, identification, and bank security information. Hudson admitted that his victims suffered at least $510,544.49 in actual and intended losses.
Hudson has been detained on federal charges since June 24, 2016. Senior United States District Judge Lawrence E. Kahn ordered the 79-month sentence to be served consecutively to the 18-year prison sentence Hudson is serving in Texas for possession/promotion of child pornography.
Federal charges remain pending against Howe, who is presumed innocent unless and until proven guilty.
This case was investigated by the FBI and the Plattsburgh Police Department, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Former Missionary Sentenced for Sexually Exploiting Children in HaitiRead the Press Release
Daniel John Pye, 36, an Ashdown, Arkansas, resident was sentenced to 40 years of imprisonment, to be followed by 25 years of supervised release, for traveling in foreign commerce with the purpose of engaging in illicit sexual conduct with a minor, also known as child sex tourism.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Pye, originally of Bradenton, Florida, was convicted in November 2017, after a week-long trial before U.S. District Judge Ursula Ungaro, of three counts of traveling in foreign commerce with the purpose of engaging in illicit sexual conduct with a minor, in violation of Title 18, United States Code, Section 2423(b).
According to court records and the evidence presented at trial, Pye was a missionary who operated an orphanage in Jacmel, Haiti, from the years of 2006 through 2012. The orphanage provided shelter, clothing, food, and school tuition to children without families and to children whose families could not afford to feed or otherwise support their children. Pye obtained financial support for the orphanage through his connections with numerous religious organizations and other nonprofit groups in the United States. During his time operating the orphanage, Pye would regularly sexually abuse the female residents of his orphanage, including girls as young as six years old. As described by the Haitian victims during trial, Pye routinely sexually abuse his victims both at the orphanage and while at the beach.
Since leaving Haiti, Pye resided in the Liberty Hill, Texas, Texarkana, Texas, and Ashdown, Arkansas, areas. Prior to arriving in Haiti, Pye resided in the Bradenton and Fort Lauderdale areas of Florida.
Mr. Greenberg commended the investigative efforts of ICE-HSI. The case was prosecuted by Assistant U.S. Attorneys Ben Widlanski and Ilham Hosseini.
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.
Former CBP Officer Sentenced to Prison for Alien SmugglingRead the Press Release
McALLEN, Texas – A 55-year-old man who formerly resided in Weslaco has been ordered to prison following his conviction of one count of conspiracy to transport aliens within the United States, announced U.S. Attorney Ryan K. Patrick. Former Customs and Border Protection (CBP) officer Sabas Salinas pleaded guilty Nov. 1, 2017.
Today, U.S. District Judge Micaela Alvarez handed Salinas a 24-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Alvarez noted that Salinas was entrusted with authority from the people - the citizens of the community. She noted that one of his specific job responsibilities was to ensure that individuals who were not authorized to come into the U.S. were prevented from doing so, and he did the exact opposite. Additionally, in spite of his good background, and regardless of whether he was getting paid for his actions, she found his participation in the offense to be corrupt.
Salinas had admitted that while on duty at the Progreso Port of Entry, he was going to allow Juana Sifuentes-Villagomez, 48, a lawful permanent resident of Donna, to transport an illegal alien into the U.S.
On Aug. 14, 2017, Sifuentes-Villagomez arrived at the Progreso Port of Entry with Asiano Uresti-Segundo, 46, of Reynosa, Tamaulipas, Mexico. Salinas was attempting to conduct the initial inspection and planned to allow them entry in to the U.S., knowing Uresti-Segundo was an illegal alien and not permitted to do so. However, other CBP officers discovered Uresti-Segundo was a citizen of Mexico who had been previously deported and did not have permission to re-enter the country. Both Sifuentes-Villagomez and Uresti-Segundo were arrested that day.
The investigation led to the discovery that Uresti-Segundo was going to pay Sifuentes-Villagomez for smuggling him illegally into the U.S. through a port of entry and transporting him to Donna.
Salinas was later arrested for his part in the conspiracy on Sept. 14, 2017.
Salinas has been and will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Sifuentes-Villagomez pleaded guilty to one count of conspiracy to transport aliens within the United States and is scheduled to be sentenced on Feb. 28, 2018. Uresti-Segundo entered a guilty plea to unlawfully attempting to enter the U.S. after being previously removed and is scheduled to be sentenced on Jan. 11, 2018. They also remain in custody pending those hearings.
The Department of Homeland Security – Office of Inspector General conducted the investigation with the assistance of Immigration and Customs Enforcement’s Homeland Security Investigations and CBP – Office of Field Operations. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Five Aliens Indicted on Illegal Reentry Charges, False Representation of a Social Security Account Number, Aggravated Identity Theft, Felon in Possession of a Firearm, and Illegal and Unlawful Alien in Possession of a FirearmRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging RAMIRO GOMEZ-SAN AGUSTIN, age 33, of Mexico, WALTER RAMIREZ-RODRIGUEZ, age 39, of Mexico, and RAMIRO MARTINEZ-ZACARIAS, age 38, of Mexico, with Illegal Reentry of a Deported Alien.
Additionally, a federal grand jury in Raleigh has returned an indictment charging ANGEL CASTRO, age 50, of Honduras, with False Representation of a Social Security Account Number, Aggravated Identity Theft, Felon in Possession of a Firearm, and Illegal Reentry of an Aggravated Felon.
Furthermore, a federal grand jury in Raleigh has returned an indictment charging MOHAMED SAAD TARDA, age 30, of Morocco, with Illegal and Unlawful Alien in Possession of a Firearm.
If convicted of Illegal Reentry of a Deported Alien, RAMIRO GOMEZ-SAN AGUSTIN, previously deported two times and found in Wake County, WALTER RAMIREZ-RODRIGUEZ, previously deported four times and found in Pitt County, and RAMIRO MARTINEZ-ZACARIAS, previously deported three times and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of False Representation of a Social Security Account Number, Aggravated Identity Theft, Felon in Possession of a Firearm, and Illegal Reentry of an Aggravated Felon, CASTRO, found in Wayne County, would face maximum penalties of life imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of Illegal and Unlawful Alien in Possession of a Firearm, TARDA, found in Cumberland County, would face maximum penalties of ten years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the cases.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
North Carolina Resident Indicted on Uttering a Forged Security. Rhonda F. Greer, age 54, of Shelby, North Carolina was charged in a one-count indictment. Rhonda F. Greer was charged with Uttering a Forged Security, a violation of Title 18, United States Code, Section 513(a). The maximum penalty Greer could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United States Postal Inspection Service and is assigned to Assistant United States Attorney William J. Watkins, Jr. of the Greenville office for prosecution.
Woman Indicted on Immigration Document Fraud Charge. Martha A. Zambrano Soriano, age 37, was charged in a one-count indictment with possession of a forged/counterfeit immigration document, a violation of Title 18, United States Code, Section 1546(a). The maximum penalty Soriano could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by ICE-Homeland Security Investigations and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney R. Trent Shores announced today the results of the January 2018 Federal Grand Jury.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Darren Lee Bryant. Felon in Possession of a Firearm and Ammunition. Bryant, 25, of Broken Arrow, is charged with possessing a firearm and ammunition after prior felony convictions. If convicted, he faces the maximum penalty of 10 years in prison and a $250,000 fine. The Federal Bureau of Investigation and the Tulsa Police Department are the investigating agencies.
Christopher Lee Caskey. Bank Robbery. Caskey, 32, of Inola, is charged with robbery of Arvest Bank by threatening to detonate a bomb and brandishing a pellet gun closely resembling a firearm. If convicted, he faces the maximum penalty of 25 years in prison and a $250,000 fine. The Federal Bureau of Investigation and the Tulsa Police Department are the investigating agencies.
Randy Alan Hamett. Kidnapping; Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence; Possessing and Receiving Stolen Firearm and Ammunition; and Possession of Firearms and Ammunition While Subject to a Domestic Violence Protective Order. Hamett, 62, of Choctaw, is charged with kidnapping and transporting a person from Oklahoma to Arkansas, displaying a pistol during and in relation to a violent crime, and knowingly possessing and receiving a stolen revolver and ammunition while subject to a domestic violence protective order. If convicted, he faces the maximum penalty of life in prison and a $250,000 fine for the kidnapping charge; a statutory mandatory minimum penalty of seven years and up to life in prison for the using, carrying, and brandishing a firearm during and in relation to a crime of violence charge; and a maximum penalty of 10 years in prison and a $250,000 fine for the possessing and receiving a stolen firearm and ammunition and for the possessing firearms and ammunition while subject to a domestic violence protective order charges. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Broken Arrow Police Department, the Siloam Springs Police Department, and the Rogers State University Police are the investigating agencies.
Noel A. McFadden. Sexual Exploitation of a Child; Enticement; and Possession of Child Pornography. McFadden, 71, of Broken Arrow, is charged with exploiting and enticing a minor to engage in sexually explicit conduct for the purpose of producing graphic image files and video files. If convicted, he faces the maximum penalty of 30 years in prison and a $250,000 fine for the sexual exploitation of a child charge; a maximum penalty of life in prison and a $250,000 fine for the enticement charge; and the maximum penalty of 20 years in prison and a $250,000 fine for the possession of child pornography charge. The Federal Bureau of Investigation is the investigating agency.
Daniel Miranda-Barrera. Reentry of Removed Alien. Miranda-Barrera, 34, of Sand Springs, is charged with having returned to the United States unlawfully after being deported in March 2011 from Del Rio, Texas. If convicted, he faces the maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement is the investigating agency.
Rory Eugene Monk. Felon in Possession of Firearms and Ammunition. Monk, 33, of Broken Arrow, is charged with possessing a firearm and ammunition after prior felony convictions. If convicted, he faces the maximum penalty of 10 years in prison and a $250,000 fine. This case arises out of Operation Blue Thunder, a joint federal and local task force concentrating on reducing violent crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigating agencies.
Antonio Morales-Zuniga. Reentry of Removed Alien. Morales-Zuniga, 35, unknown residency, is charged with having returned to the United States unlawfully after being deported in November 2015 from Laredo, Texas. If convicted, he faces the maximum penalty of 20 years in prison and a $250,000 fine. The United States Immigration and Customs Enforcement is the investigating agency.
Randall Gene Mukes. Felon in Possession of Firearms and Ammunition. Mukes, 31, of Tulsa, is charged with possessing a firearm and ammunition after prior felony convictions. If convicted, he faces the maximum penalty of 10 years in prison and a $250,000 fine. In addition, he would forfeit the firearm and ammunition involved in the offense. This case arises out of Operation Blue Thunder, a joint federal and local task force concentrating on reducing violent crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigating agencies.
Shawn Dale Sexton. Felon in Possession of Firearm and Ammunition; Possession of Unregistered Firearm; Possession With Intent to Distribute Methamphetamine; Using, Carrying, and Discharging a Firearm During and in Relation to a Drug Trafficking Crime.
Sexton, 26, of Bristow, is charged with possessing ammunition, possessing and discharging an unregistered semi-automatic rifle after prior felony convictions, and possession with intent to distribute 50 grams or more of methamphetamine. If convicted, he faces the maximum penalty of life in prison and a $250,000 fine for the felon in possession of firearm and ammunition charge, a maximum penalty of 10 years in prison and a $10,000 fine for the possession of an unregistered firearm charge, a maximum penalty of 40 years in prison and a $5,000,000 fine for the possession with intent to distribute methamphetamine charge, and a maximum penalty of life in prison and a $250,000 fine for the using, carrying, and discharging a firearm during and in relation to a drug trafficking crime charge. In addition, he would forfeit the firearm and ammunition involved in the offense. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Trevor James Thompson. Attempted Sexual Exploitation of a Child. Thompson, 31, of Locust Grove, is charged with knowingly attempting to entice minors to engage in sexually explicit conduct for the purpose of producing visual depiction of such conduct. If convicted, he faces the maximum penalty of 30 years in prison and a $250,000 fine for each count. Homeland Security Investigations is the investigating agency.
Eagle Butte Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on January 2, 2018, by U.S. District Judge Roberto A. Lange.
Colton White Feather, age 23, was sentenced to 41 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Feather was indicted by a federal grand jury on May 16, 2017. He pled guilty on October 17, 2017.
The conviction stemmed from an incident on July 28 and 29, 2016, when White Feather went to an individual’s home with a 3/4" wooden mop handle and ended up in a dispute with people who were present and swung the mop handle, hitting the victim in the head which resulted in the victim breaking her jaw.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
White Feather was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on January 5, 2018, by U.S. District Judge Roberto A. Lange.
Celby Noisy Hawk, Jr., age 42, was sentenced to 42 months in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Noisy Hawk was indicted by a federal grand jury on July 18, 2017. He pled guilty on September 26, 2017.
The conviction stemmed from an incident on June 9, 2017, when Noisy Hawk asked an individual for money to buy alcohol and the individual denied his request, telling Noisy Hawk that he was already very drunk. The denial resulted in an argument between Noisy Hawk and the individual, who then called the police department. Prior to law enforcement arriving, Noisy Hawk punched the victim several times in the head and face, and when the victim attempted to walk away, Noisy Hawk hit the victim again causing her to fall and breaking her ankle. The punches to the victim’s face caused a fracture in the right orbital socket, a closed head injury with a small subdural hematoma, and a small cortical convexity subarachnoid hemorrhage.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Noisy Hawk was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Indicted on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Nevin Thomas Joaquin, age 29, was indicted on December 12, 2017. He appeared before U.S. Magistrate Court Judge Daneta Wollmann on December 14, 2017, and pled not guilty to the Indictment.
The maximum penalties upon conviction are life in prison, a $10,000,000 fine, a lifetime of supervised release, forfeiture of firearms, ammunition, and U.S. currency, and a special assessment of $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between September 1, 2013, and December 12, 2017, Joaquin knowingly and intentionally conspired with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine. The Indictment further alleges that on April 1, 2016, and February 18, 2016, Joaquin unlawfully possessed firearms.
The charges are merely accusations and Joaquin is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Joaquin was ordered to be detained. A trial date has been set for February 20, 2018.
Dominican National Sentenced for Passport FraudRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Worcester for passport fraud.
Adolfo Santana Gonzalez, 31, was sentenced by U.S. District Court Judge Timothy S. Hillman to 366 days in prison. Santana Gonzalez will be subject to deportation upon completion of his sentence. In October 2017, Santana Gonzalez pleaded guilty to one count of misuse of a Social Security number and one count of making a false statement in an application for a United States passport.
In November 2016, Santana Gonzalez, using the identification and Social Security number assigned to another individual, submitted an application for a U.S. passport at a U.S. Post Office in Worcester in that individual’s name.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement today. U.S. Customs and Border Protection provided assistance with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Sentenced for Passport FraudRead the Press Release
BOSTON – A Dominican national previously charged with passport fraud, pleaded guilty and was sentenced yesterday in federal court in Boston.
Luis Hidalgo-Jimenez, 45, a Dominican national formerly residing in Lawrence, pleaded guilty to one count of passport fraud before U.S. Senior District Court Judge Rya W. Zobel, who sentenced Hidalgo-Jimenez to a period of time served. Hidalgo-Jimenez was arrested on Nov. 9, 2017, and has been in federal custody since that time.
On Feb. 20, 2009, Hidalgo-Jimenez submitted an application for a United States passport at a post office in Lawrence using the name and identifying information of a United States citizen. In support of the passport application, Hidalgo-Jimenez submitted a Connecticut driver’s license with his photograph along with the name and identifying information of another person. He also submitted a copy of the other person’s birth certificate, which was issued in Puerto Rico. Federal officials noticed evidence of fraud when reviewing the passport application and supporting documents. When Hidalgo-Jimenez was interviewed by federal law enforcement, he admitted to applying for the passport using the name and identifying information of a United States citizen.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit prosecuted the case.
Dental Management Company Benevis and its Affiliated Kool Smiles Dental Clinics to Pay $23.9 Million to Settle False Claims Act Allegations Relating to Medically Unnecessary Pediatric Dental ServicesRead the Press Release
WASHINGTON – The Justice Department announced today that it has settled False Claims Act allegations against dental management company Benevis LLC (formerly known as NCDR LLC) and more than 130 of its affiliated Kool Smiles dental clinics for which Benevis provides business management and administrative services. Under the agreement, Benevis and the Kool Smiles clinics will pay the United States and participating states a total of $23.9 million, plus interest, to resolve allegations that they knowingly submitted false claims for payment to state Medicaid programs for medically unnecessary dental services performed on children insured by Medicaid.
“Billing Medicaid programs for dental procedures that are not necessary contributes to the soaring costs of healthcare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When healthcare providers put vulnerable patients at risk by performing medically unnecessary procedures to achieve financial goals, we will take action.”
The United States alleged that between January 2009 and December 2011, Benevis and Kool Smiles clinics located throughout 17 states knowingly submitted false claims to state Medicaid programs for medically unnecessary pulpotomies (baby root canals), tooth extractions, and stainless steel crowns, in addition to seeking payment for pulpotomies that were never performed. The United States alleges that Kool Smiles clinics routinely pressured and incentivized dentists to meet production goals through a system that disciplined “unproductive” dentists and awarded “productive” dentists with substantial cash bonuses based on the revenue generated by the procedures they performed. According to the government’s allegations, Kool Smiles clinics ignored complaints from their own dentists regarding overutilization. In addition, the United States further alleged that Kool Smiles clinics located in Texas knowingly submitted false claims to the Texas Medicaid Program for First Dental Home (FDH), a program intended to provide a comprehensive package of dental services aimed at improving the oral health of children under three years of age. These clinics are alleged to have submitted false claims for FDH services that were not fully provided.
Of the $23.9 million to be paid by Benevis and its affiliated Kool Smiles clinics, the federal government will receive a total of $14,244,073.49, plus interest, and a total of $9,655,926.51, plus interest, will be returned to individual states, which jointly funded improper claims submitted to state Medicaid programs.
“The allegations in these cases are particularly egregious because they involved medically unnecessary dental services performed on children,” said John H. Durham, U.S. Attorney for the District of Connecticut. “Exploiting needy children for financial gain is inexcusable. The U.S. Attorney’s Office in Connecticut is committed to aggressively pursuing health care providers that submit fraudulent claims to government health care programs.”
The government’s investigation was initiated by five lawsuits filed under the whistleblower provision of the False Claims Act, which permits private citizens to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. Four of the cases are currently pending in the District of Connecticut and one is pending in the Western District of Texas. As part of today’s resolution, three of the whistleblowers—former Kool Smiles employees Adam Abendano, Poonam Rai, and Robin Fitzgerald—will receive payments totaling more than $2.4 million from the federal share of the settlement.
“When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the best care possible to the patient, especially when their patients are economically disadvantaged children,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “The United States Attorney’s Office for the Southern District of Texas will aggressively prosecute healthcare providers who fail to provide care as required when it adversely affects the taxpayers.”
“The conduct of Kool Smiles reached across state lines to impact many patients, many of them vulnerable children,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to thank our law enforcement partners for their tireless effort and dedication in bringing about this nationwide resolution.”
“Today’s settlement sends a very clear signal: Fraud in the federal healthcare system will not be tolerated,” said U.S. Attorney John F. Bash for the Western District of Texas. “Especially when that fraud involves performing unnecessary procedures on kids—here, unnecessary baby root canals and tooth extractions, among other procedures—we will not hesitate to use every tool at our disposal to punish those who break the law.”
“It is intolerable when health care companies seek to boost profits by defrauding Medicaid and exploiting children," said Special Agent in Charge Phillip M. Coyne, HHS-OIG. "Systematically performing and billing for medically unnecessary dental procedures undermines the well-being of these young patients, corrupts the impartiality of medical decision-making, and diverts money from taxpayer-funded health care programs designed to pay for legitimate medical needs.”
The settlement with Benevis and its affiliated Kool Smiles clinics was the result of a collaborative effort among federal and state agencies. The Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the District of Connecticut, Southern District of Texas, Eastern District of Virginia, and Western District of Texas handled the cases, with substantial assistance from the National Association of Medicaid Fraud Control Units (NAMFCU). The Civil Division and NAMFCU coordinated the nationwide investigation, which was conducted by the Office of Inspector General for the Department of Health and Human Services, the Department of Defense Criminal Investigative Service, and NAMFCU.
The cases are captioned United States, et al., ex rel. Abendano v. NCDR, LLC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Greenwald v. Kool Smiles Dentistry PC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Rai, et al. v. Kool Smiles Dentistry PC, et al., 3:17-cv-834 (JBA) (D. Conn.); United States, et al., ex rel. Bowne v. KS-VAP, PC, et al., 3:16-cv-369 (JBA) (D. Conn.); and United States, et al., ex rel. Alves, et al. v. NCDR, LLC, et al., SA-13-CV-0760H (W.D. Tex.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
In the District of Connecticut, the investigation was handled by Assistant U.S. Attorney Richard M. Molot.
Dental Management Company Benevis and its Affiliated Kool Smiles Dental Clinics to Pay $23.9 Million to Settle False Claims Act Allegations Relating to Medically Unnecessary Pediatric Dental ServicesRead the Press Release
WASHINGTON – The Justice Department announced today that it has settled False Claims Act allegations against dental management company Benevis LLC (formerly known as NCDR LLC) and more than 130 of its affiliated Kool Smiles dental clinics for which Benevis provides business management and administrative services. Under the agreement, Benevis and the Kool Smiles clinics will pay the United States and participating states a total of $23.9 million, plus interest, to resolve allegations that they knowingly submitted false claims for payment to state Medicaid programs for medically unnecessary dental services performed on children insured by Medicaid.
“Billing Medicaid programs for dental procedures that are not necessary contributes to the soaring costs of healthcare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When healthcare providers put vulnerable patients at risk by performing medically unnecessary procedures to achieve financial goals, we will take action.”
The United States alleged that between January 2009 and December 2011, Benevis and Kool Smiles clinics located throughout 17 states knowingly submitted false claims to state Medicaid programs for medically unnecessary pulpotomies (baby root canals), tooth extractions, and stainless steel crowns, in addition to seeking payment for pulpotomies that were never performed. The United States alleges that Kool Smiles clinics routinely pressured and incentivized dentists to meet production goals through a system that disciplined “unproductive” dentists and awarded “productive” dentists with substantial cash bonuses based on the revenue generated by the procedures they performed. According to the government’s allegations, Kool Smiles clinics ignored complaints from their own dentists regarding overutilization. In addition, the United States further alleged that Kool Smiles clinics located in Texas knowingly submitted false claims to the Texas Medicaid Program for First Dental Home (FDH), a program intended to provide a comprehensive package of dental services aimed at improving the oral health of children under three years of age. These clinics are alleged to have submitted false claims for FDH services that were not fully provided.
Of the $23.9 million to be paid by Benevis and its affiliated Kool Smiles clinics, the federal government will receive a total of $14,244,073.49, plus interest, and a total of $9,655,926.51, plus interest, will be returned to individual states, which jointly funded improper claims submitted to state Medicaid programs.
"The allegations in these cases are particularly egregious because they involved medically unnecessary dental services performed on children,” said U.S. Attorney John H. Durham for the District of Connecticut. “Exploiting needy children for financial gain is inexcusable. The U.S. Attorney’s Office in Connecticut is committed to aggressively pursuing health care providers that submit fraudulent claims to government health care programs.”
The government’s investigation was initiated by five lawsuits filed under the whistleblower provision of the False Claims Act, which permits private citizens to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. These cases are currently pending in the District of Connecticut and the Western District of Texas. As part of today’s resolution, three of the whistleblowers—former Kool Smiles employees Adam Abendano, Poonam Rai, and Robin Fitzgerald—will receive payments totaling more than $2.4 million from the federal share of the settlement.
“When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the best care possible to the patient, especially when their patients are economically disadvantaged children,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “The United States Attorney’s Office for the Southern District of Texas will aggressively prosecute healthcare providers who fail to provide care as required when it adversely affects the taxpayers.”
“The conduct of Kool Smiles reached across state lines to impact many patients, many of them vulnerable children,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to thank our law enforcement partners for their tireless effort and dedication in bringing about this nationwide resolution.”
“Today’s settlement sends a very clear signal: Fraud in the federal healthcare system will not be tolerated,” said U.S. Attorney John F. Bash for the Western District of Texas. “Especially when that fraud involves performing unnecessary procedures on kids—here, unnecessary baby root canals and tooth extractions, among other procedures—we will not hesitate to use every tool at our disposal to punish those who break the law.”
“It is intolerable when health care companies seek to boost profits by defrauding Medicaid and exploiting children," said Special Agent in Charge Phillip M. Coyne, HHS-OIG. "Systematically performing and billing for medically unnecessary dental procedures undermines the well-being of these young patients, corrupts the impartiality of medical decision-making, and diverts money from taxpayer-funded health care programs designed to pay for legitimate medical needs.”
The settlement with Benevis and its affiliated Kool Smiles clinics was the result of a collaborative effort among federal and state agencies. The Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the District of Connecticut, Southern District of Texas, Eastern District of Virginia, and Western District of Texas handled the cases, with substantial assistance from the National Association of Medicaid Fraud Control Units (NAMFCU). The Civil Division and NAMFCU coordinated the nationwide investigation, which was conducted by the Office of Inspector General for the Department of Health and Human Services, the Department of Defense Criminal Investigative Service, and NAMFCU.
The cases are captioned United States, et al., ex rel. Abendano v. NCDR, LLC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Greenwald v. Kool Smiles Dentistry PC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Rai, et al. v. Kool Smiles Dentistry PC, et al., 3:17-cv-834 (JBA) (D. Conn.); United States, et al., ex rel. Bowne v. KS-VAP, PC, et al., 3:16-cv-369 (JBA) (D. Conn.); and United States, et al., ex rel. Alves, et al. v. NCDR, LLC, et al., SA-13-CV-0760H (W.D. Tex.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Dental Management Company Benevis and Its Affiliated Kool Smiles Dental Clinics to Pay $23.9 Million to Settle False Claims Act Allegations Relating to Medically Unnecessary Pediatric Dental ServicesRead the Press Release
The Justice Department announced today that it has settled False Claims Act allegations against dental management company Benevis LLC (formerly known as NCDR LLC) and more than 130 of its affiliated Kool Smiles dental clinics for which Benevis provides business management and administrative services. Under the agreement, Benevis and the Kool Smiles clinics will pay the United States and participating states a total of $23.9 million, plus interest, to resolve allegations that they knowingly submitted false claims for payment to state Medicaid programs for medically unnecessary dental services performed on children insured by Medicaid.
“Billing Medicaid programs for dental procedures that are not necessary contributes to the soaring costs of healthcare,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When healthcare providers put vulnerable patients at risk by performing medically unnecessary procedures to achieve financial goals, we will take action.”
The United States alleged that between January 2009 and December 2011, Benevis and Kool Smiles clinics located throughout 17 states knowingly submitted false claims to state Medicaid programs for medically unnecessary pulpotomies (baby root canals), tooth extractions, and stainless steel crowns, in addition to seeking payment for pulpotomies that were never performed. The United States alleges that Kool Smiles clinics routinely pressured and incentivized dentists to meet production goals through a system that disciplined “unproductive” dentists and awarded “productive” dentists with substantial cash bonuses based on the revenue generated by the procedures they performed. According to the government’s allegations, Kool Smiles clinics ignored complaints from their own dentists regarding overutilization. In addition, the United States further alleged that Kool Smiles clinics located in Texas knowingly submitted false claims to the Texas Medicaid Program for First Dental Home (FDH), a program intended to provide a comprehensive package of dental services aimed at improving the oral health of children under three years of age. These clinics are alleged to have submitted false claims for FDH services that were not fully provided.
Of the $23.9 million to be paid by Benevis and its affiliated Kool Smiles clinics, the federal government will receive a total of $14,244,073.49, plus interest, and a total of $9,655,926.51, plus interest, will be returned to individual states, which jointly funded improper claims submitted to state Medicaid programs.
“The allegations in these cases are particularly egregious because they involved medically unnecessary dental services performed on children,” said U.S. Attorney John H. Durham for the District of Connecticut. “Exploiting needy children for financial gain is inexcusable. The U.S. Attorney’s Office in Connecticut is committed to aggressively pursuing health care providers that submit fraudulent claims to government health care programs.”
The government’s investigation was initiated by five lawsuits filed under the whistleblower provision of the False Claims Act, which permits private citizens to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. These cases are currently pending in the District of Connecticut and the Western District of Texas. As part of today’s resolution, three of the whistleblowers—former Kool Smiles employees Adam Abendano, Poonam Rai, and Robin Fitzgerald—will receive payments totaling more than $2.4 million from the federal share of the settlement.
“When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the best care possible to the patient, especially when their patients are economically disadvantaged children,” said U.S. Attorney Ryan K. Patrick for the Southern District of Texas. “The United States Attorney’s Office for the Southern District of Texas will aggressively prosecute healthcare providers who fail to provide care as required when it adversely affects the taxpayers.”
“The conduct of Kool Smiles reached across state lines to impact many patients, many of them vulnerable children,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “I want to thank our law enforcement partners for their tireless effort and dedication in bringing about this nationwide resolution.”
“Today’s settlement sends a very clear signal: Fraud in the federal healthcare system will not be tolerated,” said U.S. Attorney John F. Bash for the Western District of Texas. “Especially when that fraud involves performing unnecessary procedures on kids—here, unnecessary baby root canals and tooth extractions, among other procedures—we will not hesitate to use every tool at our disposal to punish those who break the law.”
“It is intolerable when health care companies seek to boost profits by defrauding Medicaid and exploiting children," said Special Agent in Charge Phillip M. Coyne, HHS-OIG. "Systematically performing and billing for medically unnecessary dental procedures undermines the well-being of these young patients, corrupts the impartiality of medical decision-making, and diverts money from taxpayer-funded health care programs designed to pay for legitimate medical needs.”
The settlement with Benevis and its affiliated Kool Smiles clinics was the result of a collaborative effort among federal and state agencies. The Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Offices for the District of Connecticut, Southern District of Texas, Eastern District of Virginia, and Western District of Texas handled the cases, with substantial assistance from the National Association of Medicaid Fraud Control Units (NAMFCU). The Civil Division and NAMFCU coordinated the nationwide investigation, which was conducted by the Office of Inspector General for the Department of Health and Human Services, the Department of Defense Criminal Investigative Service, and NAMFCU.
The cases are captioned United States, et al., ex rel. Abendano v. NCDR, LLC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Greenwald v. Kool Smiles Dentistry PC, et al., 3:10-cv-1100 (JBA) (D. Conn.); United States, et al., ex rel. Rai, et al. v. Kool Smiles Dentistry PC, et al., 3:17-cv-834 (JBA) (D. Conn.); United States, et al., ex rel. Bowne v. KS-VAP, PC, et al., 3:16-cv-369 (JBA) (D. Conn.); and United States, et al., ex rel. Alves, et al. v. NCDR, LLC, et al., SA-13-CV-0760H (W.D. Tex.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Debt Collection Company Employee Sentenced to Four Years in Prison for Aggravated Identity Theft and Bank FraudRead the Press Release
CHARLOTTE, N.C. – A debt collection company employee was sentenced yesterday to four years in prison for aggravated identity theft and bank fraud, involving a scheme to steal the personally identifiable information of local residents to obtain over $200,000 worth of new credit cards and a car loan, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Max O. Cogburn, Jr. ordered Justin Frank Pettway, 30, of Charlotte, to serve five years under court supervision and to pay $226,517 in restitution to four major banks defrauded by Pettway’s identity fraud scheme.
David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS), and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Murray in making today’s announcement.
According to the indictment, information contained in court filings, and court proceedings, from late 2015 to 2016, Pettway was employed by a South Carolina-based debt collection company. Through his employment, Pettway was able to use a national company’s Internet service that provides debt collection companies with computer and smartphone access to numerous public and proprietary databases containing individuals’ extensive personally identifiable information (PII). That information, which includes names, current and former residential addresses, social security numbers, dates of birth, telephone numbers and other historical and current information, is typically required to apply for new credit cards and loans.
Pettway unlawfully used the Internet service to input the residential addresses of local residents and steal their most current identity information. Pettway then used the stolen identity information to file fraudulent applications for loans and credit cards over the Internet and by telephone in the names of the identity theft victims.
Court documents show that once the defrauded banks notified Pettway that approved credit cards had been placed in the mail, Pettway drove to the identity theft victims’ residences, stole the issued credit cards from the victims’ mailboxes, and then used the credit cards until they were disabled by the banks. Typically, the identity theft victims did not learn of the new unauthorized credit cards issued in their names until they received subsequent credit card billing statements in the mail.
According to court records, Pettway charged $226,517 to the unauthorized credit cards to obtain cash from ATMs and goods and services from merchants. Pettway also purchased a Corvette from an out-of-state car dealer using a $58,000 car loan obtained in the name of an identity theft victim.
Pettway is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Postal Inspection Service in Charlotte and the Charlotte Mecklenburg Police Department, and noted that the case is the result of the Charlotte Financial Crimes Task Force (CFCTF). The task force was formed in early 2016 by the U.S. Postal Inspection Service and currently comprises over 25 local, state and federal law enforcement agencies located in the Western District of North Carolina. The goal of the taskforce is to focus on the identification and development of financial fraud investigations in the Charlotte area.
Assistant U.S. Attorney Thomas O’Malley of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Danville Man Sentenced to 61 Months in Prison for Student Loan FraudRead the Press Release
Danville, VIRGINIA – A Danville man, who obtained the identities of individuals in the Danville and Martinsville regions in order to apply for fraudulent student loans in their names to steal money from lenders, was sentenced yesterday in the United States District Court in Danville for a variety of federal charges, United States Attorney Rick A. Mountcastle announced.
James Willie Waller Jr., 29, was sentenced yesterday in District Court to 61 months in prison and ordered to pay $117,000 in restitution. Waller previously pleaded guilty to one count of student loan fraud, one count of wire fraud and two counts of aggravated identity theft.
According to evidence presented at previous hearings by Assistant United States Attorney Donald R. Wolthuis and Special Assistant United States Attorney Kari Munro, Waller devised a scheme in which he obtained the personally identifying information (PII) of individuals in the Danville and Martinsville regions of Virginia. The defendant used the obtained PII to apply for student loans to online colleges and universities, without the consent of those whose information he obtained.
Waller fraudulently applied for student financially aide and enrolled in online courses using the PII he procured. The U.S. Department of Education then sent grant and loan monies to the online schools to cover tuition and living expenses. The schools, in turn, caused debit cards to be issued in the names of the fictitious students. The debit cards were directed to a variety of mailing addresses throughout Danville and Martinsville, as orchestrated by Waller. Waller then used the cards for his own personal use.
In all, Waller received more than $117,000 in money to which he was not entitled.
The investigation of the case was conducted by Virginia State Police, The Department of Education – Office of the Inspector General and the United States Postal Inspection Service. Assistant United States Attorney Donald R. Wolthuis and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Couple Dealing Methamphetamine in Monroe & Houston Counties Each Receive More Than Twelve Years in Federal PrisonRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Stayce Crystal Dempsey, age 34, of Warner Robins, Georgia, was sentenced to 220 months (18 years and four months) imprisonment for distribution of methamphetamine, and Charles Nicholas Zammit, age 28, of Perry, Georgia, was sentenced to 150 months (12 years and six months) imprisonment for possession with intent to distribute methamphetamine by United States District Court Judge Marc T. Treadwell in Macon, Georgia on January 10, 2018.
In their respective plea agreements, Ms. Dempsey and Mr. Zammit admitted to driving together to several locations in Monroe and Houston counties to sell methamphetamine to various individuals. Between April and May of 2016, the couple was responsible for possessing and distributing more than 330 grams, that is approximately 12 or more ounces, of methamphetamine with a street value of more than $9,000.00.
Prior to entering pleas in this case, Ms. Dempsey and Mr. Zammit went on the run and were apprehended by local law enforcement in Jackson County, North Carolina while driving a rental truck from U-Haul. At the time of their apprehension, both defendants gave false names and were found in possession of a glass smoking pipe with methamphetamine residue on it. They were subsequently taken into custody by the United States Marshal Service.
Both Ms. Dempsey and Mr. Zammit had been convicted of drug crimes in the state of Georgia prior to being indicted in the present federal case. After serving their time in federal prison, where there is no parole, each defendant will also be required to serve an additional term of three years of supervised release under the supervision of a United States probation officer.
“The actions of Ms. Dempsey and Mr. Zammit demonstrate their reckless disregard for the rule of law in exchange for the thrill and greed of selling drugs in our local communities. Their desperation for momentary financial gain and inability to accept the consequences of their actions led them to foolishly go on the run from the United States government. The actions of state and federal law enforcement working together help rid our local communities of the scourge dealers like these cause by distributing drugs in and around neighborhoods throughout middle Georgia. This couple will now spend more than a decade in prison thanks to those efforts.”
This case was investigated by the United States Drug Enforcement Administration and the Georgia Bureau of Investigation with additional assistance from the Monroe County Sheriff’s Office. Assistant United States Attorney C. Shanelle Booker 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.
Connecticut Man Sentenced to 1 Year in Federal Prison for Conspiracy and BriberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Theodore D. Chuang sentenced Eugene Ostrovsky, age 57, of Stamford, Connecticut to a split sentence of 6 months imprisonment followed by two years of supervised release, the first 6 months of which are to be served on home confinement, for conspiracy to bribe a public official. Judge Chuang also ordered Ostrovsky to pay a $5000 fine.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Assistant Director in Charge Andrew Vale of the Federal Bureau of Investigation, Washington Field Office; and Deputy Inspector General for Investigations John Dupuy of the Department of Energy, Office of Inspector of General.
According to his plea agreement, Ostrovsky was the vice president and 20% owner of a metallurgical research company located in Long Island City, New York. Between August 2014 and May 2015, Ostrovsky and his co conspirators entered into what they believed to be a $3,400,000 Department of Energy ("DOE")-funded research contract. During the course of negotiating that contract, Ostrovsky negotiated the specifics of a bribe to be paid to a public official then working for the Department of Energy. In May 2015, Ostrovsky and the co-conspirators finalized a total of $80,000 in bribe money, to be paid in cash to the DOE employee, in installments over the duration of the contract.
Three other defendants in this and a related scheme Grigory Trosman, age 78, of Damascus, Maryland, Anatoly Samgorodsky, age 65, of Sarasota, Florida, and Anatoly Fedorovsky, age 57, of Fair Lawn, New Jersey, have pleaded guilty and have been sentenced. Trosman was sentenced to 18 months in prison, followed by six months of home-confinement and three years of supervised release. Samgorodsky was sentenced to 18 months, 1 day in federal prison followed by one year of supervised release and Fedorovsky was sentenced to 12 months in federal prison followed by one year of supervised release. Samgorodsky was also ordered to pay a $25,000 fine and $70,000 in restitution; Fedorovsky was ordered to pay a $15,000 fine and was ordered to forfeit $7,000, and Trosman was ordered to pay a $75,000 fine and $469,287 in restitution.
Acting United States Attorney Stephen M. Schenning commended the FBI and the DOE Office of Inspector General for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney David I. Salem, who prosecuted the case.
Columbia Man Sentenced for Failing to Register as Sex OffenderRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Kerwin Eugene Brown, age 39, of Columbia, was sentenced to three years in jail for Failure to Register as a Sex Offender, a violation of Title 18, United States Code, § 2250(a). Chief United States District Judge Terry L. Wooten, of Columbia, presided.
Evidence presented at the change of plea hearing established that on April 12, 2005, Brown pled guilty to Assault and Battery of a High and Aggravated Nature in the Richland County Court of General Sessions. During the plea colloquy, the judge required that Brown register as a sex offender. He was then sentenced to eight years in prison.
Brown moved to New York in 2013 and came to the attention of the FBI for unrelated activities. Agents determined that Brown had been living in New York for at least six months and had not registered as a sex offender.
When FBI agents interviewed Brown on November 11, 2016, Brown indicated he moved to New York to pursue a music career. He was living in the Trinidadian community in Queens and Brooklyn and was working construction and carpentry. He acknowledged registering as a sex offender in April 2010 and through 2013, but he stopped when he moved to New York.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office prosecuted the case.
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Citizen of Mexico Charged with Illegally Re-entering U.S. after DeportationRead the Press Release
PITTSBURGH - An illegal alien found in Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on January 9, named Pedro Omar Martinez-Alba, age 30, of Mexico, as the sole defendant.
According to the indictment presented to the court, Pedro Omar Martinez-Alba, an illegal alien, was formally removed from the United States by United States Immigration and Customs Enforcement on January 23, 2014 and November 24, 2015. Pedro Omar Martinez-Alba was found to be illegally present in Westmoreland County, on April 12, 2017.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Citizen of Ghana Charged with Assaulting Federal OfficersRead 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 Nana Dwomah Yeboah, 34, a citizen of the Republic of Ghana, was arrested and charged by criminal complaint with assaulting and resisting federal law enforcement officers and possessing a controlled substance with intent to distribute. The charges carry a maximum penalty of eight years in prison and a fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that according to the complaint, on the morning of December 24, 2017, Customs and Border Protection Officers were conducting a routine patrol of the Greyhound bus station on Cumberland Street in Rochester. Officers observed the defendant enter the bus station, place a package on a bench in the lobby area, and exit the station, leaving the package unattended. After several minutes, the officers searched the abandoned package to ensure that it did not pose a threat to the public. Inside, the officers discovered a quantity of marijuana that appeared to be packaged for sale. After several minutes, Yeboah returned to the area and was questioned by the officers, who quickly determined that he was not a U.S. Citizen. As officers attempted to detain and further identify the defendant, he fled the station, leading the officers on a short chase. Yeboah was ultimately apprehended, but proceeded to fight the officers for several minutes, causing one of the officers to suffer facial injuries that required treatment at Rochester General Hospital.
The defendant, who made an initial appearance before U.S. Magistrate Judge Jonathan Feldman, was held in custody pending a detention hearing scheduled for January 16, 2018.
The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations, with assistance from the Rochester Police Department, under the direction of Chief Michael Ciminelli.
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.
Choctaw Woman Sentenced for Assault with a Deadly WeaponRead the Press Release
Jackson, Miss. – Ida Mae Sam, 56, a member of the Mississippi Band of Choctaw Indians, was sentenced Tuesday by U.S. District Judge David C. Bramlette III, to serve 68 months in federal prison, followed by three years of supervised release, for assaulting another Choctaw Indian with a dangerous weapon and causing serious bodily injury, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze. Sam was also ordered to pay a $1,500 fine.
On April 25, 2015, Ida Mae Sam invited the victim and others to her residence located in the Pearl River Community on the Choctaw Indian Reservation. At some point during the day, Ida Mae Sam became involved in an argument with her boyfriend, and then with the boyfriend of the victim. She then went into another room, returned with a knife and stabbed the victim multiple times. The victim suffered large cuts and significant blood loss.
On April 18, 2017, a federal grand jury indicted Sam in a two-count indictment charging her with assault of another person with a dangerous weapon and assault causing serious bodily injury. A jury trial was held in Jackson, Mississippi, before U.S. District Judge David C. Bramlette III from October 30, 2017 to October 31, 2017. On October 31, 2017, the jury found Sam guilty on all counts of the indictment.
This case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It was prosecuted by Assistant United States Attorneys Keesha D. Middleton and Erin Chalk.
Chicago, Illinios Men Sentenced in Heroin ConspiracyRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announces that two Chicago, Illinois, men convicted of Conspiracy to Distribute Heroin were sentenced on January 4, 2018, by U.S. District Judge Karen E. Schreier.
Clifton Curtis Odie, age 42, was sentenced to 240 months in custody and a $100 special assessment to the Federal Crime Victims Fund. Robert Andrew Lockhart, age 48, was sentenced to 107 months in custody and a $100 special assessment to the Federal Crime Victims Fund. Co-conspirators Raleigh Dee Thomas, age 26, and Stephen Nathaniel Harris, age 38, were each sentenced to 60 months in custody by Judge Schreier in October of 2017.
An indictment was issued against the group for Conspiracy to Distribute Heroin by a federal grand jury on February 7, 2017. All four pled guilty to the charge in 2017.
Starting in 2014, Odie and his associates brought over one kilogram of heroin to Sioux Falls from Chicago and distributed the heroin, sometimes trading heroin for firearms.
This case was investigated by the Drug Enforcement Administration and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Cherry Creek Woman Sentenced for Concealing a Person from ArrestRead the Press Release
United States Attorney Ronald A. Parsons, Jr. announced that a Cherry Creek, South Dakota, woman convicted of Concealing a Person from Arrest was sentenced on January 3, 2018, by U.S. District Judge Roberto A. Lange.
September Waloke, age 52, was sentenced to 3 months in prison, followed by 1 year of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Waloke was indicted by a federal grand jury on November 9, 2016, for Concealing a Person from Arrest. She was found guilty on September 14, 2017, following a three-day jury trial.
The evidence produced at trial indicated the following: In the early morning hours of October 20, 2016, Deputy U.S. Marshals went to the Condon Waloke residence in Cherry Creek in an attempt to locate Tyson LeCompte, a/k/a Tyson Garreau, who had been issued a federal arrest warrant for failing to return to the Hughes County jail, following his release on a one-day furlough the day before. When LeCompte was not found in the residence, the deputies advised Condon and Waloke that they could not conceal, harbor, or assist LeCompte in any manner, and that they needed to contact law enforcement if they came into contact with him.
Later that same morning, LeCompte came to the Condon Waloke residence and stayed there throughout the day. Around 5:00 p.m. that evening, Cheyenne River Sioux Tribal Police went to the residence and found LeCompte hiding in one of the bedrooms under a bed. The jury found that Waloke knew that LeCompte was in the home and intentionally harbored and concealed LeCompte to prevent his arrest.
This case was investigated by the U.S. Marshals Service, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Waloke was ordered to self-report to the custody of the U.S. Marshals Service on January 5, 2018, to begin serving her sentence.
Charleston man sentenced to federal prison for escapeRead the Press Release
CHARLESTON, W.Va. – A Charleston man who walked away from a halfway house without permission was sentenced today to six months in federal prison, announced United States Attorney Mike Stuart. Jalin McArn, 23, previously pleaded guilty to escape.
McArn was on supervised release because of a previous conviction for distribution of heroin. He was incarcerated at the Federal Correctional Institution at Milan in Michigan until August 2017, where he was serving a 10-month sentence for violation of his supervised release. He was then transferred to Dismas Charities, a halfway house in St. Albans, to finish his prison term. McArn admitted that he walked away from Dismas in the early morning hours of September 25, 2017. McArn further admitted that he did not have permission or authority to be absent. On September 26, 2017, an arrest warrant was issued for McArn and he turned himself in to authorities on October 10, 2017.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. Chief United States District Judge Thomas E. Johnston imposed the sentence.
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Centre Hall Man Sentenced to 33 Months’ Imprisonment for Explosives and Firearms OffensesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge Malachy Mannion sentenced James Woodring, age 51, Centre Hall, Pennsylvania, to 33 months’ imprisonment and three years of supervised release, for manufacturing explosives and for being a felon in possession of firearms.
According to United States Attorney David J. Freed, James Woodring pleaded guilty to manufacturing explosives after he purchased and transported commercial grade fireworks to his residence, modified them to increase their power and volatility, and sold them, all without a license to do so. The activities ended on May 18, 2016, when an explosion occurred at Woodring’s Centre Hall residence after Woodring and his wife, Christina Woodring, accidentally ignited one of the devices.
James Woodring also pleaded guilty to possessing firearms, despite a prohibition triggered by his prior 2011 felony conviction for distributing explosive. The firearms, which were seized and forfeited by the government, along with several hundred rounds of ammunition and $3,000, were:
- .380 caliber Smith and Wesson semi-automatic pistol, which was reported stolen;
- 12-gauge Mossberg Maverick shotgun;
- 30x.06 Remington Sportsman 76 pump rifle; and a
- .223 caliber New Frontier LW-15 rifle, which is a semiautomatic firearm that is capable of accepting a large capacity magazine.
In pronouncing the sentence, Judge Mannion highlighted James Woodring’s prior federal conviction for dealing in explosives without a license, and the danger he created for himself, for his family, and for emergency personnel by manufacturing homemade explosives. Judge Mannion also focused on James Woodring’s statements to an undercover law enforcement official in which Woodring explained how to place effectively the explosives to damage an automobile.
Christina Woodring previously pleaded guilty to conspiring to manufacture and sell explosives, and was sentenced in April 2017 to home confinement and probation.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, the Centre Hall Police Department, and the Springettsbury Township Police Department. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Cambridge Hedge Fund Manager Pleads Guilty to Investment Fraud SchemeRead the Press Release
BOSTON – The owner of two Cambridge-based investment advisory firms pleaded guilty yesterday in federal court in Boston in connection with a scheme to defraud hedge fund investors.
Yasuna J. Murakami, 44, pleaded guilty to wire fraud and is scheduled to be sentenced on April 8, 2018 before U.S. Senior District Court Judge Douglas P. Woodlock. In May 2017, Murakami was charged and arrested.
Murakami was a managing member of MC2 Capital Management LLC and MC2 Canada Capital Management LLC – investment advisory firms through which he established and managed three hedge funds: the MC2 Capital Partners Fund, MC2 Capital Value Fund, and MC2 Capital Canadian Opportunities Fund. Between 2011 and 2016, Murakami fraudulently diverted millions of dollars of investor funds to business and personal accounts that he controlled. He used the money to pay for lavish personal expenses such as a luxury sports car, international travel, and payments to personal credit cards and high-end department stores. Murakami used new investor contributions to make Ponzi scheme-like payments to earlier investors who had made redemption requests and to place investments in his own name.
As part of the fraud, Murakami withheld material information regarding the management of the MC2 Canadian Opportunities Fund and provided investors with falsified account statements and tax documentation in an effort to lull them into believing that their investments were safe.
In a parallel action, the Securities and Exchange Commission (SEC) announced securities fraud charges against Murakami and his hedge fund advisory firms in May 2017. The SEC also filed charges against Murakami’s former business partner, Avi Chiat, in connection with the scheme. In January 2017, the Massachusetts Securities Division filed civil fraud charges against Murakami for the same conduct.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Economic Crimes Unit, is prosecuting the case.
California Man Sentenced to 30 Months in Prison for Role in Heroin Distribution SchemeRead the Press Release
NEWARK, N.J. – A California man who swallowed plastic bags containing approximately 600 grams of heroin and later admitted that he possessed the drug with intent to distribute it was sentenced today to 30 months in prison, U.S. Attorney Craig Carpenito announced.
Omar Vasques, 24, of Bakersfield, California, previously pleaded guilty before U.S. District Court Judge John Michael Vazquez to an information charging him with one count of possession of heroin with intent to distribute and distribution of heroin. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Sept. 15, 2016, Vasques landed at Newark Liberty International Airport on a commercial flight after having swallowed 81 “pellets” of heroin wrapped in plastic baggies. He intended to distribute the heroin after his arrival but was apprehended by law enforcement authorities, who escorted Vasques to a hospital. Vasques underwent emergency surgery after hospital staff discovered that one of the baggies had ruptured.
In addition to the prison term, Judge Vazquez sentenced Vasques to three years of supervised release.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie Nickerson, in Newark for the investigation that led to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Organized Crime/Drug Enforcement Task Force Unit.Defense Counsel: Anthony C. Mack Esq., Newark
Broward County Pharmacy Agrees to Pay the United States $350,000 to Settle Allegations That it Submitted Fraudulent Claims to TRICARERead the Press Release
Healthy Meds Pharmacy Corp., a pharmacy located in Hallandale, Florida has paid the United States $350,000, to settle allegations under the False Claims Act for filling prescriptions in violation of TRICARE’s policy on telemedicine.
Benjamin Greenberg, United States Attorney for the Southern District of Florida, and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), made the announcement.
The settlement results from an investigation initiated by the DCIS into Healthy Meds’ alleged violations of TRICARE’s policy on telemedicine. The United States alleged that between February 2015 and May 2015, Healthy Meds engaged in unsolicited calls to TRICARE beneficiaries, provided medically unnecessary compound medications to beneficiaries, and knowingly filled prescriptions from doctors who did not meet or properly consult with TRICARE beneficiaries. TRICARE is the Department of Defense program that provides health care benefits to active duty service members, retired service members, and their dependents.
“This settlement shows our continued resolve to pursue providers who improperly provide prescription drugs resulting in significantly increased costs to taxpayers,” said Benjamin Greenberg, United States Attorney for the Southern District of Florida.
Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service (DCIS), said, “The DoD TRICARE Program relies on health care professionals to provide the best care and services available to our military members and their families, while preserving precious taxpayer dollars. This settlement demonstrates the effectiveness of DCIS investigations to ensure that medical providers conduct business with integrity and in full compliance with Federal laws.”
The settlement was the result of a coordinated effort by the United States Attorney’s Office for the Southern District of Florida and DCIS. The case was investigated and the settlement negotiated by Assistant U.S. Attorney John C. Spaccarotella. The claims settled by the lawsuit are allegations only, and there has been no determination of liability.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Barre Man Pending Sentencing on Federal Gun Charges Arrested for Trading Heroin for A FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Eric Goldstein-Purdue, 26, of Barre, VT made his initial appearance on January 8, 2018 in the United States District Court in Burlington, following an arrest for possessing a firearm in furtherance of a drug trafficking crime. At the time of his arrest, Goldstein-Purdue was awaiting sentencing in U.S. District Court on charges that he possessed a firearm as a convicted felon. U.S. Magistrate Judge John M. Conroy detained Goldstein-Purdue pending trial.
According to court documents, in November 2017, Goldstein-Purdue pleaded guilty to being a felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1). Goldstein-Purdue was released pending sentencing which was scheduled for March 2018. In January 2018, while on conditions of release, Goldstein-Purdue began communicating with someone who was working as an undercover law enforcement agent with ATF. Goldstein-Purdue and the undercover agent discussed Goldstein-Purdue’s desire to obtain a firearm and Goldstein-Purdue said he could provide the agent heroin in exchange for the firearm. On January 5, 2018, Goldstein-Purdue met with the undercover agent, gave the agent approximately 40 bags of heroin and the officer gave Goldstein-Purdue a firearm. Immediately after the exchange, ATF agents arrested Goldstein-Purdue and recovered the firearm.
The United States Attorney, Christina E. Nolan, emphasized that the charge against Goldstein-Purdue is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, the defendant faces a sentence of not less than five years of imprisonment and up to life imprisonment, and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
U.S. Attorney Nolan commended the joint effort of state and federal law enforcement, adding “we will continue to make it a top priority to prosecute violent offenders and those who use guns in connection with drug trafficking, especially, as in this case, when such conduct is combined with troubling recidivism.”
Special Agent in Charge of the ATF Boston Field Division Mickey Leadingham stated: “This arrest demonstrates the outstanding partnership between ATF, Vermont State Police, Vermont State Drug Task Force and the United States Marshals Service, as well as the commitment we share to work together to interdict illegal firearms & narcotics and the violent criminals that compromise the safety of our communities.”
Goldstein-Purdue is represented by the Elizabeth Quinn of the Federal Public Defender’s office. The prosecutor is Assistant U.S. Attorney Wendy G. Fuller.
Baltimore woman admits to money launderingRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Baltimore, Maryland woman has admitted today to money laundering, United States Attorney Bill Powell announced.
Stephanie Edmonds, age 31, pled guilty to one count of “Conspiracy to Launder Monetary Instruments.” Edmonds admitted to conspiring with others to conduct unlawful financial transactions in Berkeley and Jefferson Counties and elsewhere from August 2015 to December 2016.
Edmonds faces up to 20 years incarceration and a fine of up to $500,000. 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 United States Attorney Anna Z. Krasinski and Special Assistant U.S. Attorney Elizabeth D. Grant, also with the West Virginia Attorney General’s Office, are prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Attorney General Sessions Announces Appointment of James McHenry as Director of the Executive Office for Immigration ReviewRead the Press Release
Attorney General Jeff Sessions today announced the appointment of James McHenry as the permanent Director of the Executive Office for Immigration Review (EOIR) at the Department of Justice. McHenry has served as the Acting Director of EOIR since May 30, 2017.
“I am pleased to announce the appointment of James as the permanent Director of EOIR. Since his appointment as Acting Director last May, James has led EOIR in restoring its commitment to the timely and efficient adjudication of immigration cases, and in identifying additional common-sense improvements to the immigration court system,” said Attorney General Sessions. “James is an exceptionally talented and capable leader, and I am confident that he will continue to ensure that EOIR and its components will adjudicate cases in a manner that serves the national interest.”
“Under Attorney General Sessions’ leadership, EOIR has implemented a series of sensible reforms that aim to reduce the pending caseload by realigning the agency towards completing cases, increasing both productivity and capacity, and changing policies that lead to inefficiencies and waste,” said EOIR Director McHenry. “I look forward to building on the success of last year and further realizing our goal of cutting the pending caseload in half by 2020.”
EOIR was created on Jan. 9, 1983, through an internal department reorganization which combined the Board of Immigration Appeals (BIA) with the immigration judge function previously performed by the former Immigration and Naturalization Service (INS) (now part of the Department of Homeland Security). The Office of the Chief Administrative Hearing Officer (OCAHO) was added in 1987.
EOIR is headed by a director who is responsible for the supervision of the Chairman of BIA, the Chief Immigration Judge, the Chief Administrative Hearing Officer and all agency personnel. EOIR has more than 2,100 employees in its 59 immigration courts nationwide, at the BIA, at OCAHO, and at EOIR headquarters in Falls Church, Virginia.
Director McHenry has previously served in the Executive Office for Immigration Review; he first joined the agency in 2003 through the Attorney General’s Honors Program and returned to the agency in 2016, when he was appointed as an administrative law judge (ALJ) for EOIR OCAHO.
Last year, McHenry served as a Deputy Associate Attorney General working on a variety of immigration-related litigation matters and overseeing multiple components reporting to the Office of the Associate Attorney General. From 2014 to 2016, he served as an ALJ for the Office of Disability Adjudication and Review in the Social Security Administration. Prior to that, he worked for the Office of the Principal Legal Advisor (OPLA), Immigration and Customs Enforcement, Department of Homeland Security as an Assistant Chief Counsel and, later, as a Senior Attorney where he served as a lead attorney for national security, denaturalization, gang cases, anti-human trafficking operations, and worksite enforcement matters. He also served a detail as a Special Assistant United States Attorney for the Criminal Division, U.S. Attorney’s Office, Northern District of Georgia.
Director McHenry earned a Bachelor of Science from the Georgetown University School of Foreign Service, a Master of Arts in political science from the Vanderbilt University Graduate School, and a Juris Doctor from the Vanderbilt University Law School.
Armed Meth Dealer Sentenced on Gun and Drug ChargesRead the Press Release
United States Attorney Richard Moore of the Southern District of Alabama announced that Robbie Lyn Pierce, 49, of Mobile, was sentenced in federal court on charges involving his illegal possession of firearms and his possession with intent to distribute methamphetamine. Court documents reflect that Pierce sold meth ice to a confidential informant working with the Mobile County Sheriff’s Office at his west Mobile residence. When sheriff’s deputies returned to the property with a search warrant, they found additional meth ice and a gun in the shed where the drug deals took place. Pierce pled guilty to both federal charges in June of 2017.
United States District Court Judge Kristi K. Dubose sentenced Pierce to 15 years imprisonment, consisting of the statutory mandatory penalty of 10 years on the drug count and the statutory mandatory consecutive penalty of 5 years on the gun count. Pierce’s prison sentence will be followed by an eight-year term of supervised release. Pierce will undergo treatment for drug abuse while in prison and as a condition of his supervised release. No fine was imposed, but the judge ordered that Pierce pay $200 special mandatory assessments.
The case was investigated by the Department of Homeland Security Investigations and the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Arizona Man Sentenced to 248 Months in Federal Prison for Firearm and Drug OffensesRead the Press Release
AMARILLO, Texas — Arturo Salazar, Jr., 41, was sentenced today by U.S. District Judge Sidney A. Fitzwater to serve a total of 248 months in federal prison following his guilty plea in September 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Judge Fitzwater ordered Salazar to report to the Bureau of Prisons on February 27, 2018.
According to the plea agreement factual resume filed in the case, on November 4, 2016, a Texas Department of Public Safety Trooper stopped a vehicle for speeding. The driver of the vehicle was identified as Salazar. The vehicle was also occupied by a female passenger. The Trooper noticed several indicators of possible criminal activity and Salazar and the female passenger provided the Trooper with conflicting stories of where they were traveling to and the reason for their trip. While waiting for a K9 unit to arrive to search the vehicle, Salazar admitted that there was a small amount of methamphetamine and a pipe on the driver’s side of his vehicle and methamphetamine in the trunk of the vehicle. Salazar also admitted he was going to deliver the methamphetamine to Springfield, Missouri.
A search of the vehicle revealed a small baggie of methamphetamine and the pipe in the driver’s side door, 24 bundles of suspected methamphetamine, with a net weight of 10,757 grams with a purity level of approximately 95 percent, in the trunk of the vehicle and a loaded firearm.
The Texas Department of Public Safety and Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Joshua Frausto and Sean Taylor prosecuted.
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Albuquerque Woman Pleads Guilty to Federal Conspiracy and Bank Fraud Charges Arising Out of Mail Theft SchemeRead the Press Release
ALBUQUERQUE – Yarelys Marquez, 19, of Albuquerque, N.M., pled guilty today in federal court to conspiracy and bank fraud charges arising out of a scheme to steal mail from U.S. Postal Service (USPS) mail collection boxes at U.S. Post Offices in the Albuquerque area in July and Aug. 2017.
U.S. Postal Inspectors arrested Marquez and co-defendants Jorge R. Cabrera, 20, Hector Lau, 21, and Fernando Cairo-Rosell, 29, all of Albuquerque, on Aug. 30, 2017, based on criminal complaints charging them with theft of mail and bank fraud charges. The criminal complaint alleged that in July and Aug. 2017, mail collection boxes at USPS stations in Albuquerque repeatedly were broken into and mail was stolen. The U.S. Postal Inspection Service initiated an investigation into the scheme after receiving complaints that checks deposited in the mail collection boxes had been stolen, altered and deposited into accounts allegedly held by the defendants.
The four defendants subsequently were charged with conspiracy and nine counts of bank fraud in a ten-count indictment, which was filed on Sept. 21, 2017. According to the indictment, the four defendants participated in a conspiracy to commit bank fraud that began in July 2017 and continued until Aug. 2017, and operated in Bernalillo County, N.M. The indictment also charges the four defendants with committing bank fraud against four credit unions that maintain branches in Albuquerque. The indictment alleges that the defendants conspired to commit bank fraud by stealing checks that had been deposited in U.S. mail depositories, altering the checks, and attempting to pass the checks off as legitimate to banking institutions. The indictment alleges that as part of their bank fraud scheme, the defendants deposited checks, which had been altered to make them payable to members of their conspiracy and in amounts ranging from $500 to $4,754, into bank accounts held by members of the conspiracy.
During today’s proceedings, Marquez pled guilty to conspiracy and one count of bank fraud under a plea agreement with the U.S. Attorney’s Office. In entering the guilty plea, Marquez admitted that from July 10, 2017 through Aug. 9, 2017, she conspired with others to deposit altered checks, which she knew had been stolen from mailboxes throughout Albuquerque, and during the mailbox robberies she acted as a lookout. Marquez further admitted that on July 16, 2017, she deposited a stolen check into another individual’s checking account that she knew had been among the checks stolen from within a mailbox and had their terms re-written without the account holder’s permission.
Cairo-Rosell previously pled guilty on Dec. 4, 2017, to conspiracy and five counts of bank fraud under a plea agreement with the U.S. Attorney’s Office. In entering the guilty plea, Cairo-Rosell admitted that from July 10, 2017 through Aug. 9, 2017, he conspired with others to deposit altered checks, which Cairo-Rosell knew had been stolen from mailboxes throughout Albuquerque. Cairo-Rosell further admitted that on at least four occasions, he allowed his bank account at an Albuquerque-area credit union to be used to deposit checks in exchange for a portion of the check-cashing proceeds.
At sentencing, Marquez and Cairo-Rosell each face a maximum penalty of 30 years in federal prison. Sentencing hearings have yet to be scheduled.
Cabrera and Lau have entered pleas of not guilty to the charges against them and are pending trial. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley.
Akayed Ullah Indicted on Terrorism and Explosives Charges in Connection with the Detonation of a Bomb in New York CityRead the Press Release
Today, a federal grand jury returned a six-count indictment (the Indictment) against Akayed Ullah, 27, of Brooklyn, New York, in connection with Ullah’s detonation and attempted denotation of a bomb in a subway station near the New York Port Authority Bus Terminal in New York City on Dec. 11, 2017. Three people were injured as a result of the detonation. The Indictment charges Ullah with one count of providing and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization; one count of using and attempting to use a weapon of mass destruction; one count of bombing and attempting to bomb a place of public use and a public transportation system; one count of destruction and attempted destruction of property by means of fire or explosives; one count of conducting and attempting to conduct a terrorist attack against a mass transportation system; and one count of using a destructive device during and in furtherance of a crime of violence.
Acting Assistant Attorney General for National Security Dana J. Boente and U.S. Attorney Geoffrey S. Berman of the Southern District of New York made the announcement. The case has been assigned to the Honorable Richard J. Sullivan.
“As alleged in the indictment Akayed Ullah constructed a pipe bomb and detonated it in a mass transit hub in the heart of New York City to terrorize as many people as possible and to bring ISIS-inspired violence to American soil,” said Acting Assistant Attorney General Boente. “Thanks to the tremendous efforts of the law enforcement community, the defendant was safely apprehended at the scene of the attack that injured three people, and will now be held accountable to the fullest extent of the law. The National Security Division remains steadfast in its mission to pursue justice against those who seek to harm our country and our citizens in the name of terrorism.”
“Less than one month ago, during the holiday rush hour, Akayed Ullah allegedly detonated a bomb in a major transit hub of New York City,” said U.S. Attorney Berman. “In selecting this time and place, Ullah’s alleged purpose in the Port Authority bombing was painfully clear: to inflict as much damage as possible, and to strike fear into the hearts of New Yorkers in the name of ISIS. Ullah’s alleged plot failed, and he is now charged with federal terrorism offenses and facing life behind bars.”
Ullah was initially arrested on a Complaint and presented before the Honorable Katharine H. Parker on Dec. 13, 2017. Ullah was ordered detained and has been in federal custody since his arrest. He will be arraigned before Judge Sullivan on Jan. 11, at 3:00 p.m.
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 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.
The Dec. 11, 2017 Attack
On Dec. 11, 2017, at approximately 7:20 a.m., Akayed Ullah detonated an improvised explosive device (IED) detonated inside a subway terminal (the Subway Terminal) in or around the New York Port Authority Bus Terminal located at West 42nd Street and Eighth Avenue in New York, New York (the December 11 Attack). Shortly after the blast, members of the Port Authority of New York and New Jersey Police Department (PAPD) located Ullah lying on the ground in the vicinity of the explosion. Surveillance footage captured Ullah walking through the Subway Terminal immediately prior to the explosion, and then falling to the ground after the explosion.
Ullah was subsequently taken into custody by law enforcement. During the course of Ullah’s arrest, law enforcement officers located on his person and in the surrounding area what appeared to be the components of an exploded pipe bomb (the Pipe Bomb). Specifically, law enforcement located, among other items, (i) a nine-volt battery inside Ullah’s pants pocket; (ii) wires connected to the battery and running underneath Ullah’s jacket; (iii) two plastic zip ties underneath Ullah’s jacket; (iv) several fragments of a metal pipe, including pieces of a metal end cap, on the ground; (v) the remnants of what appeared to be a Christmas tree lightbulb attached to wires; and (vi) pieces of what appear to be plastic zip ties, among other items.
After Ullah 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, Ullah stated, among other things, the following:
- Ullah constructed the Pipe Bomb and carried out the December 11 Attack. Ullah was inspired by ISIS to carry out the December 11 Attack, and stated, among other things, “I did it for the Islamic State.”
- Ullah constructed the Pipe Bomb at his residence in Brooklyn (the Residence).
- The Pipe Bomb was composed of a metal pipe, which Ullah filled with explosive material that he created. Ullah used Christmas tree lights, wires, and a nine-volt battery as a trigger to detonate the Pipe Bomb. Ullah filled the Pipe Bomb with metal screws, which he believed would cause maximum damage. Ullah used zip ties to secure the Pipe Bomb to his body.
- Ullah carried out the December 11 Attack in part because of the United States Government’s policies in, among other places, the Middle East. One of Ullah’s goals in carrying out the December 11 Attack was to terrorize as many people as possible. He chose to carry out the attack on a work day because he believed that there would be more people.
- Ullah’s radicalization began in at least approximately 2014. Ullah viewed pro-ISIS materials online, including a video instructing, in substance, that if supporters of ISIS were unable to travel overseas to join ISIS, they should carry out attacks in their homelands. He began researching how to build IEDs on the Internet approximately one year prior to the attack.
- On the morning of Dec. 11, 2017, shortly before carrying out the attack, Ullah posted a statement on his Facebook account referring to the President of the United States, stating, in substance, “Trump you failed to protect your nation.” Ullah also posted a statement that he believed would be understood by members and supporters of ISIS to convey that Ullah carried out the attack in the name of ISIS.
Items Recovered from Ullah’s Residence
On Dec. 11, 2017, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant. Law enforcement agents recovered, among other items, (i) multiple pieces of metal pipes; (ii) pieces of wire and fragments of what appear to be Christmas tree lights; (iii) multiple screws consistent with the screws recovered at the scene of the December 11 Attack; and (iv) a passport in Ullah’s name with multiple handwritten notations, including: “O AMERICA, DIE IN YOUR RAGE.”
Three individuals were injured as a result of the December 11 Attack.
* * *
If convicted of the charges in the Indictment, potential maximum sentences could include: (i) 20 years in prison for providing and attempting to provide material support and resources to a designated foreign terrorist organization, namely, ISIS; (ii) life in prison for using and attempting to use a weapon of mass destruction; (iii) life in prison for bombing and attempting to bomb a place of public use and a public transportation system; (iv) a maximum of 20 years in prison and a mandatory minimum sentence of five years for destruction and attempted destruction of property by means of fire or explosives; (v) life in prison for conducting and attempting to conduct a terrorist attack against a mass transportation system; and (vi) a consecutive sentence of 30 years to life in prison for using a destructive device during and in furtherance of a crime of violence. The potential sentences are all related to Ullah’s detonation and attempted detonation of an explosive device in New York City.
The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only. If convicted of any offense, the sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. The charges in the Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The prosecution is being handled by Assistant U.S. Attorneys Shawn G. Crowley, Rebekah Donaleski and George D. Turner of the Southern District of New York, with assistance from Trial Attorney Jerome J. Teresinski of the Counterterrorism Section of the Justice Department’s National Security Division.
Akayed Ullah Indicted on Terrorism and Explosives Charges in Connection with the Detonation of A Bomb in New York CityRead the Press Release
Dana J. Boente, the Acting Assistant Attorney General for National Security, and Geoffrey S. Berman, the U.S. Attorney for the Southern District of New York, announced that a grand jury in the Southern District of New York has returned a six-count indictment (the “Indictment”) against AKAYED ULLAH in connection with ULLAH’s detonation and attempted detonation of a bomb in a subway station near the New York Port Authority Bus Terminal in New York City on December 11, 2017. The Indictment charges ULLAH with one count of providing and attempting to provide material support to the Islamic State of Iraq and al-Sham (“ISIS”), one count of using and attempting to use a weapon of mass destruction, one count of bombing and attempting to bomb a place of public use and a public transportation system, one count of destruction and attempted destruction of property by means of fire or explosives, one count of conducting and attempting to conduct a terrorist attack against a mass transportation system, and one count of using a destructive device during and in furtherance of a crime of violence. The case has been assigned to the Honorable Richard J. Sullivan.
ULLAH was initially arrested on a Complaint and presented before the Honorable Katharine H. Parker on December 13, 2017. ULLAH was ordered detained and has been in federal custody since his arrest. He will be arraigned before Judge Sullivan on January 11, 2018, at 3:00 p.m.
U.S. Attorney Geoffrey S. Berman said: “Less than one month ago, during the holiday rush hour, Akayed Ullah allegedly detonated a bomb in a major transit hub of New York City. In selecting this time and place, Ullah’s alleged purpose in the Port Authority bombing was painfully clear: to inflict as much damage as possible, and to strike fear into the hearts of New Yorkers in the name of ISIS. Ullah’s alleged plot failed, and he is now charged with federal terrorism offenses and facing life behind bars.”
Acting Assistant Attorney General Boente said: “As alleged in the indictment Akayed Ullah constructed a pipe bomb and detonated it in a mass transit hub in the heart of New York City to terrorize as many people as possible and to bring ISIS-inspired violence to American soil. Thanks to the tremendous efforts of the law enforcement community, the defendant was safely apprehended at the scene of the attack that injured three people, and will now be held accountable to the fullest extent of the law. The National Security Division remains steadfast in its mission to pursue justice against those who seek to harm our country and our citizens in the name of terrorism.”
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.
The December 11, 2017 Attack
On December 11, 2017, at approximately 7:20 a.m., AKAYED ULLAH detonated an improvised explosive device (“IED”) detonated inside a subway terminal (the “Subway Terminal”) in or around the New York Port Authority Bus Terminal located at West 42nd Street and Eighth Avenue in New York, New York (the “December 11 Attack”). Shortly after the blast, members of the Port Authority of New York and New Jersey Police Department (“PAPD”) located ULLAH lying on the ground in the vicinity of the explosion. Surveillance footage captured ULLAH walking through the Subway Terminal immediately prior to the explosion, and then falling to the ground after the explosion. ULLAH was subsequently taken into custody by law enforcement. During the course of ULLAH’s arrest, law enforcement officers located on his person and in the surrounding area what appeared to be the components of an exploded pipe bomb (the “Pipe Bomb”). Specifically, law enforcement located, among other items, (i) a nine-volt battery inside ULLAH’s pants pocket; (ii) wires connected to the battery and running underneath ULLAH’s jacket; (iii) two plastic zip ties underneath ULLAH’s jacket; (iv) several fragments of a metal pipe, including pieces of a metal end cap, on the ground; (v) the remnants of what appeared to be a Christmas tree lightbulb attached to wires; and (vi) pieces of what appear to be plastic zip ties, among other items.After ULLAH 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, ULLAH stated, among other things, the following:
- ULLAH constructed the Pipe Bomb and carried out the December 11 Attack. ULLAH was inspired by ISIS to carry out the December 11 Attack, and stated, among other things, “I did it for the Islamic State.”
- ULLAH constructed the Pipe Bomb at his residence in Brooklyn (“the Residence”).
- The Pipe Bomb was composed of a metal pipe, which ULLAH filled with explosive material that he created. ULLAH used Christmas tree lights, wires, and a nine-volt battery as a trigger to detonate the Pipe Bomb. ULLAH filled the Pipe Bomb with metal screws, which he believed would cause maximum damage. ULLAH used zip ties to secure the Pipe Bomb to his body.
- ULLAH carried out the December 11 Attack in part because of the United States Government’s policies in, among other places, the Middle East. One of ULLAH’s goals in carrying out the December 11 Attack was to terrorize as many people as possible. He chose to carry out the attack on a work day because he believed that there would be more people.
- ULLAH’s radicalization began in at least approximately 2014. ULLAH viewed pro-ISIS materials online, including a video instructing, in substance, that if supporters of ISIS were unable to travel overseas to join ISIS, they should carry out attacks in their homelands. He began researching how to build IEDs on the Internet approximately one year prior to the attack.
- On the morning of December 11, 2017, shortly before carrying out the attack, ULLAH posted a statement on his Facebook account referring to the President of the United States, stating, in substance, “Trump you failed to protect your nation.” ULLAH also posted a statement that he believed would be understood by members and supporters of ISIS to convey that ULLAH carried out the attack in the name of ISIS.
Items Recovered from ULLAH’s Residence
On December 11, 2017, law enforcement agents conducted a search of the Residence pursuant to a judicially authorized search warrant. Law enforcement agents recovered, among other items, (i) multiple pieces of metal pipes; (ii) pieces of wire and fragments of what appear to be Christmas tree lights; (iii) multiple screws consistent with the screws recovered at the scene of the December 11 Attack; and (iv) a passport in ULLAH’s name with multiple handwritten notations, including: “O AMERICA, DIE IN YOUR RAGE.”
* * *
If convicted of the charges in the Indictment, potential maximum sentences could include: (i) 20 years in prison for providing and attempting to provide material support and resources to a designated foreign terrorist organization, namely, ISIS; (ii) life in prison for using and attempting to use a weapon of mass destruction; (iii) life in prison for bombing and attempting to bomb a place of public use and a public transportation system; (iv) 20 years in prison (maximum) and a mandatory minimum sentence of five years for destruction and attempted destruction of property by means of fire or explosives; (v) life in prison for conducting and attempting to conduct a terrorist attack against a mass transportation system; and (vi) a consecutive sentence of 30 years in prison (to life) for using a destructive device during and in furtherance of a crime of violence. The potential sentences are all related to Ullah’s detonation and attempted detonation of an explosive device in New York City.
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 the judge.
Mr. Boente and Mr. Berman praised the outstanding investigative efforts of the FBI, the NYPD, the Department of Homeland Security, Homeland Security Investigations (“HSI”), and the PAPD. ULLAH’s arrest and indictment are 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, PAPD, and other agencies – and the U.S. Department of Justice’s National Security Division.
The prosecution is being handled by the Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Shawn G. Crowley, Rebekah Donaleski, and George D. Turner are in charge of the prosecution, with assistance from Trial Attorney Jerome J. Teresinski of the Counterterrorism Section of the Justice Department’s National Security Division.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[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.
9 January 2018
Winston-Salem Man Sentenced to Federal Prison for Orchestrating Fraudulent Check Cashing SchemeRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, LAMONT DEVORE HAIRSTON, 30, of Winston Salem, North Carolina, was sentenced to serve 41 months in federal prison and 5 years of supervised release following his prior guilty plea to Conspiracy to Commit Bank Fraud. HAIRSTON was also ordered to make restitution to victims.
The Indictment and information provided at the sentencing hearing provided that HAIRSTON was a ringleader in a fraudulent check cashing scheme. According to the charges, HAIRSTON and others acquired stolen mail containing bank account information. HAIRSTON and others used this information to manufacture counterfeit checks using check-writing software and check stock. HAIRSTON then caused various individuals to cash the checks at local merchants, and to return the proceeds to HAIRSTON, who paid the participants a cut of the money for their participation. HAIRSTON was arrested by the Greenville Police Department in February of 2014 in possession of a computer and check stock used in the scheme.
The investigation of this case was conducted by the United States Secret Service, with the assistance of the Greenville Police Department. Assistant United States Attorney William M. Gilmore represented the government.
Wheeling man indicted on extortion chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Wheeling, West Virginia man was indicted today by a grand jury on extortion charges, United States Attorney Bill Powell announced.
Eugene Robert LeClear, age 46, was indicted on one count of “Conspiracy to Commit Extortion” and three counts of “Interstate Communications with the Intent to Extort.” LeClear is accused of conspiring with another to extort more than $14,000 from an individual from October to December 2017 in Ohio County.
LeClear faces up to five years incarceration and a fine of up to $250,000 for the conspiracy count and up to two years incarceration and a fine of up to $250,000 for each additional count. 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 Randolph J. Bernard is prosecuting the case on behalf of the government. The Federal Bureau of Investigation is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Ute Tribal Member Pleads Guilty to Voluntary Manslaughter on Uintah and Ouray Tribal LandsRead the Press Release
SALT LAKE CITY – Trent Sowsonicut, age 28, of Ft. Duchesne, Utah, pleaded guilty to voluntary manslaughter Monday afternoon in federal court in Salt Lake City. As a part of the plea agreement, Sowsonicut admitted that he killed L.M., an enrolled member of the Ute Indian Tribe, during a quarrel within the boundaries of the Uintah and Ouray Reservation.
Sowsonicut, who is also a tribal member, admitted that on Aug. 13, 2016, he went to L.M.’s residence to confront L.M. He said he brought a loaded shotgun into the residence and shot L.M. in the leg during a quarrel in L.M.’s bedroom. L.M. died as a result of the gunshot. Sowsonicut admitted he acted recklessly and with extreme disregard for human life when he brought the loaded shotgun into L.M,’s bedroom.
First responders arrived at the victim’s residence in Gusher, Utah, about 1:07 a.m. on Aug. 13, 2016, after receiving a 911 call saying that L.M. was a victim of a shooting at the residence. First responders attempted to stabilize the victim and eventually took him to the hospital. Acting on information provided during the investigation, FBI agents and Uintah County Search and Rescue officers found the loaded shotgun in the river beneath the Randlett Bridge.
A federal grand jury indicted Sowsonicut in January 2017 on charges of second degree murder and use and discharge of a firearm during a crime of violence. He entered his guilty plea to a Felony Information filed Friday charging him with voluntary manslaughter.
The plea agreement includes a stipulated sentence of 78 months in federal prison, to be followed by 36 months of supervised release. The sentence is subject to the approval of the court. U.S. District Judge David Sam set sentencing in the case for March 15, 2018, at 2:30 p.m.
Agents and officers with the FBI, the Bureau of Indian Affairs, and the Ute tribal police participated in the investigation of the case. Assistant U.S. Attorneys Stephen L. Nelson and Michael J. Thorpe of the U.S. Attorney’s Office are prosecuting the case.