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Monday 30 October 2017
Virginia Man Pleads Guilty to Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Martin, 58, of Virginia Beach, Virginia, pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years and a $250,000 fine.
Assistant U.S. Attorneys MaryEllen Kresse and Elizabeth R. Moellering, who are handling the case, stated that in March 2013, the defendant, operating as Capital Source Lending, LLC, agreed to work with co-defendant Christopher Venti, operating as Viewpoint Solutions Group and Secured Strategies LLC, on a fraudulent investment scheme involving multiple victims.
Victims who were interested in obtaining funding were solicited by Christopher Venti, and others. The solicitations involved false promises of, among other things, access to “blocked” bank accounts that purportedly contained the funds victims sought. Victims were required to make advance payments into escrow in order to establish the “blocked” bank accounts in their names. Victims were falsely and fraudulently told that the “blocked” bank accounts would contain 10 times the amount of funds placed in escrow, and would be accessible to the victims in approximately 30 days. The advance payments were to be released from escrow by the victim upon the victim’s confirmation that the “blocked” bank account had been established in the victim’s name.
Victims were given letters on bank letterhead that purported to confirm the existence of the “blocked” bank accounts. In reality, the defendant Martin, Venti, and others knew that the bank letters were fraudulent, and that the confirmation process established in the escrow agreements signed by the victims, was fraudulent. Pre-arranged numbers victims were instructed to call directed them to others involved in the scheme who falsely represented to victims that they worked at the respective bank and that they could confirm the existence of the claimed “blocked” bank account.
Defendant Martin and Venti attempted to obtain $1,240,000 from six individuals, two of whom sent the defendant and Venti a total of $300,000. Martin also admitted his involvement in two other fraudulent schemes, both involving false representations that Martin could obtain funding for the victims through the alleged “monetizing” of a bank instrument. None of the defendant’s victims received the funds promised by the defendant.
Christopher Venti has been convicted for his involvement in this and other investment fraud schemes and is awaiting sentencing.
Today’s plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for February 27, 2018, at 4:00 p.m., before Judge Wolford.Utah Financial Advisor Pleads Guilty to Tax Evasion, Securities Fraud and Wire FraudRead the Press Release
SALT LAKE CITY – A St. George, Utah, financial advisor pleaded guilty Monday afternoon to his role in selling fraudulent tax-avoidance and investment strategies to his clients, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to documents and information provided to the court, Henry Brock, pleaded guilty to tax evasion, securities fraud and wire fraud. Brock founded a financial services company in 2009 and served as the president from 2009 through 2017. As President, he marketed and sold a fraudulent tax scheme, called “IRA Exit Strategy,” to potential investors. Brock promised investors that he could provide a way for them to avoid paying taxes on IRA withdrawals, which would otherwise be subject to Internal Revenue Service (IRS) penalties and taxes. To implement his scheme, Brock caused his business to issue tax forms to his clients falsely representing that they were investors in his business who incurred losses, which served to offset the clients’ tax liabilities. As a result, Brock caused clients to file fraudulent income tax returns claiming a total of approximately $3.8 million in bogus business losses and resulting in a tax loss of over $1.1 million.
During this period, Brock fraudulently raised more than $10.8 million in investments by making false representations to investors regarding the “IRA Exit Strategy,” the financial condition of his company and other matters. On at least one occasion, Brock also transferred $196,323 of a client’s investment funds and used the money for his own personal and business expenses.
Sentencing is scheduled for March 5, 2018, before U.S. District Court Judge Ted Stewart. Brock faces a statutory maximum sentence of five years in prison for tax evasion, 20 years in prison for securities fraud and 20 years in prison for wire fraud. He also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation and the Utah Division of Securities, who conducted the investigation, and AUSA Trina Higgins and Trial Attorney Matthew Hoffman of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Utah Financial Advisor Pleads Guilty to Tax Evasion, Securities Fraud and Wire FraudRead the Press Release
A St. George, Utah, financial advisor pleaded guilty today to his role in selling fraudulent tax-avoidance and investment strategies to his clients, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to documents and information provided to the court, Henry Brock, pleaded guilty to tax evasion, securities fraud and wire fraud. Brock founded a financial services company in 2009 and served as the president from 2009 through 2017. As President, he marketed and sold a fraudulent tax scheme, called “IRA Exit Strategy,” to potential investors. Brock promised investors that he could provide a way for them to avoid paying taxes on IRA withdrawals, which would otherwise be subject to Internal Revenue Service (IRS) penalties and taxes. To implement his scheme, Brock caused his business to issue tax forms to his clients falsely representing that they were investors in his business who incurred losses, which served to offset the clients’ tax liabilities. As a result, Brock caused clients to file fraudulent income tax returns claiming a total of approximately $3.8 million in bogus business losses and resulting in a tax loss of over $1.1 million.
During this period, Brock fraudulently raised over $10.8 million in investments by making false representations to investors regarding the “IRA Exit Strategy,” the financial condition of his company and other matters. On at least one occasion, Brock also transferred $196,323 of a client’s investment funds and used the money for his own personal and business expenses.
Sentencing is scheduled for March 5, 2018 before U.S. District Court Judge Ted Stewart. Brock faces a statutory maximum sentence of five years in prison for tax evasion, 20 years in prison for securities fraud and 20 years in prison for wire fraud. He also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation and the Utah Division of Securities, who conducted the investigation, and AUSA Trina Higgins and Trial Attorney Matthew Hoffman of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Two Wooster men indicted for selling heroin and cocaine that resulted in fatal overdoseRead the Press Release
Two Wooster men were indicted for distributing heroin and cocaine that resulted in the fatal overdose of a Wayne County woman, law enforcement officials said.
Jamie Curtis, 36, and Theodore Alleman, 28, were both indicted on one count of distribution of heroin and cocaine. The charge carries a potential sentencing enhancement because the drugs they distributed resulted in a death.
Curtis is also charged with being a felon in possession of a firearm. Curtis had a Witness 9 mm firearm with an obliterated serial number, and ammunition, despite a prior felony conviction for drug trafficking in Wayne County Common Pleas Court.
Curtis sold heroin and cocaine to Alleman from June 2016 through January 2017, according to the indictment.
Alleman, on Nov. 12, 2016, contacted a Wayne County woman identified in the indictment as H.C. H.C. was a recovering drug addict. Alleman repeatedly attempted to persuade H.C. to inject heroin with him, but she refused, according to the indictment.
Alleman purchased drinks for H.C. throughout the evening at a local pub and continued to ask her to inject heroin with him. In the early morning hours of Nov. 13, H.C. agreed. Alleman went to an ATM to get money and texted Curtis “I need a g” (gram of heroin), according to the indictment.
A friend identified in the indictment as G.C. fought with Alleman and H.C. about getting heroin. C.G. was forcefully removed from the vehicle. Alleman and H.C. met with Curtis and purchased heroin and cocaine, according to the indictment.
On Nov. 13, Alleman prepared a mixture of heroin and cocaine that he and H.C. injected. H.C. then overdosed and died, according to the indictment.
“These men sold drugs that directly resulted in the death of a young woman,” Herdman said. “We will continue to seek long prison sentences for drug dealers who kill and injure our friends and neighbors.”
DEA Special Agent in Charge Timothy J. Plancon said: “Identifying and bringing to justice the individuals that distribute drugs that lead to overdose death is a top priority of DEA. Today’s charges send the message to all drug dealers that they will be held accountable for bringing that poison into the community, and their deadly results.”
“The continued collaborative efforts of the Medway Drug Task Force and the Cleveland DEA to investigate these opiate overdoses, truly sends a message to our community that people will be held accountable,” said MEDWAY Director Don Hall.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is prosecuted by Assistant U.S. Attorney Teresa Riley following an investigation by the DEA, ATF, MEDWAY Drug Enforcement Agency, Wooster Police Department, Wayne County Sheriff's Office, Wayne County Coroner's Office and Ohio BCI.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tonawanda Man Charged with Distribution and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Randy Rance, 56, of Tonawanda, NY, was arrested and charged by criminal complaint with distribution and possession of child pornography. The charges carry a minimum penalty of five years in prison, a maximum of 20 years and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that according to the complaint, in December 2016, the defendant distributed child pornography to an undercover investigator. In January 2017, the Town of Tonawanda Police Department seized Rance’s computer. Forensic examination determined that the defendant was in possession of hundreds of thousands of images of child pornography, some of which depicted prepubescent children less than 12 years of age.
The criminal complaint is the result of an investigation by the Town of Tonawanda Police Department under the direction of Chief Jerome Uschold, and the Federal Bureau of Investigation under the direction of Special Agent-in-Charge Adam S. Cohen.
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.
Third Man Pleads Guilty in Fraud Scheme Targeting Buick DealershipRead the Press Release
ERIE, Pa. - A resident of Fairview, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, Acting United States Attorney Soo C. Song announced today.
Adam James Weaver, 41, of Fairview, Pennsylvania, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from in and around May 2015, to in and around March 2016, Weaver and two-defendants engaged in a scheme to defraud auto loans providers by utilizing two straw purchasers to buy vehicles in their own names from Rick Weaver Buick GMC. The three facilitated the scheme by falsifying the loan applications to make the straw purchasers appear more credit worthy and by not revealing that the straw purchasers were buying multiple vehicles at the same time. The value of many of the vehicles was also inflated to increase the funds received by the co-conspirators.
Judge Cercone scheduled sentencing for April 19, 2018 at 12:45 p.m. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Weaver on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Erie Police Department conducted the investigation that led to the prosecution of Weaver.
Texas Man Charged with Armed Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Justin Wade Lynch, age 44, of Texas, was indicted on October 24, 2017, by a federal grand jury for armed bank robbery. The case was unsealed on October 27, 2017.
According to United States Attorney Bruce D. Brandler, Lynch is charged with the October 30, 2012, robbery of Penn Security Bank & Trust in Peckville, Lackawanna County, Pennsylvania. The indictment alleges Lynch brandished a firearm during the robbery, and stole $12,470.
The case is being investigated by the Blakely Police Department, the Pennsylvania State Police, and the Federal Bureau of Investigation. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Criminal Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 25 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tazewell Woman Sentenced on Federal Firearms ChargesRead the Press Release
Abingdon, VIRGINIA – A Tazewell woman, who illegally purchased and provided firearms to her son was sentenced last week in the United States District Court for the Western District of Virginia in Abingdon for a pair of federal charges, Acting United States Rick A. Mountcastle announced.
Glenna Elswick, 50, was sentenced last Friday to six months in prison. Previously, Elswick pleaded guilty to one count of making a false statement in connection with the acquisition of a firearm from a licensed dealer and one count of providing a firearm to a prohibited person.
According to evidence presented at a previous hearing by Assistant United States Attorney Zachary T. Lee, between October 2016 and February 2017, Elswick purchased at least seven firearms for her son, Matthew Elswick, who is prohibited from owning firearms due to his status as a previously convicted felon. In the process of purchasing the firearms, Elswick made false statements on ATF forms stating she was buying the firearms for her own use. The firearms included semi-automatic pistols and AR style semi-automatic rifles. Matthew Elswick’s previous convictions included burglary and arson and evidence at the sentencing demonstrated he had a long history of violence and involuntary commitments for mental health issues. Matthew Elswick was ultimately arrested with some of the firearms purchased by Glenna Elswick following an armed standoff with deputies of the Tazewell County Sheriff’s Office.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tazewell County Sheriff’s Office. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Tax Attorney for Ex-NFL Player Antrel Rolle Charged with Obstructing the IRS and Filing False Documents Without His Client’s KnowledgeRead the Press Release
LOS ANGELES – A tax attorney who represented retired professional football player Antrel Rolle surrendered this morning to federal authorities after being charged with fraudulently claiming refunds for Rolle, stealing those refunds, and then filing false documents with the Internal Revenue Service to cover up his scheme.
Hiram M. Martin, 69, a resident of the Northern California city of Fair Oaks, is scheduled to be arraigned this afternoon in United States District Court.
A federal grand jury returned an indictment on September 20 that charges Martin with attempting to obstruct and impede the administration of internal revenue laws and three counts of aiding and assisting in the preparation and presentation of false documents.
The indictment alleges that Martin submitted tax returns for Rolle that falsely claimed millions of dollars of charitable deductions and business expenses. As a result of these deductions, the IRS issued tax refunds of $322,008 for the 2005 tax year and $901,472 for the 2006 tax year. Martin allegedly directed the IRS to deposit the refunds into bank accounts he controlled or to mail the refunds to his address. He then used the money for his own personal benefit, according to the indictment.
After the IRS began auditing Rolle’s 2005 and 2006 tax returns, Martin submitted false documents to the IRS to conceal his fraud. For example, the indictment alleges that Martin sent the IRS false letters purporting to support the fraudulent deductions, and then, after the IRS rejected the deductions, petitions challenging the IRS’s assessments. Rolle’s signature was forged on some of the documents Martin used in the scheme.
Martin eventually agreed – without Rolle’s knowledge – to a judgment that imposed almost a $2 million tax liability against Rolle, according to the indictment. When Rolle learned of the judgment, he hired a new attorney, who was able to have the judgment set aside in 2015 because of Martin’s fraud on the Tax Court.
The indictment alleges that Martin acted without the knowledge, consent or authority of Rolle, who hired Martin when he was a 23-year-old rookie in the National Football League. Martin allegedly provided Rolle with a fabricated set of 2005 and 2006 tax returns that did not claim any refund – tax returns that were different from the returns that Martin actually filed with the IRS in Rolle’s name.
Martin is also accused of taking steps to ensure the IRS could not contact Rolle directly. For example, Martin allegedly provided the IRS with his own address and claimed it was Rolle’s address.
When the media reported in January 2010 that the IRS had issued tax liabilities against Rolle, Martin lied to Rolle and his family, falsely representing to them that the article was untrue, according to the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If Martin were to be convicted of the four counts in the indictment, he would face a statutory maximum sentence of 18 years in federal prison.
The case is being prosecuted by Assistant United States Attorney Ranee Katzenstein, the Chief Assistant for Trials, Integrity and Professionalism, and Assistant United States Attorney Alex Wyman of the General Crimes Section.
Taft Drug Trafficker Pleads Guilty to Drug ConspiracyRead the Press Release
FRESNO, Calif. —Mario Alvarez-Muniz, 49, a citizen of Mexico and former resident of Taft, entered a guilty plea today to conspiring to distribute and possess with intent to distribute heroin, cocaine, and methamphetamine, United States Attorney Phillip A. Talbert announced.
According to court documents, in December 2016, Alvarez-Muniz delivered two pounds of methamphetamine during an undercover operation, but subsequently left the United States for Mexico. He returned to the United States and in May of 2017, orchestrated a shipment of six kilograms of heroin and eleven kilograms of cocaine from Bakersfield to Chicago. The drugs were intercepted by law enforcement and the defendant was ultimately arrested.
Alvarez-Muniz was previously detained as a flight risk and danger to the community and is scheduled for sentencing on January 22, 2018. Alvarez-Muniz faces a mandatory minimum statutory penalty of 10 years in prison and a maximum penalty of life in prison, along with a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Darrell Leon Jennings, 49, a codefendant in the case, is currently a fugitive.
This case was the product of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation by the U.S. Drug Enforcement Administration, California Highway Patrol, Bakersfield Police Department, and Kern County Probation Office. The OCDETF Program is the centerpiece of the United States Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and related criminal enterprises. Assistant United States Attorney Karen Escobar is prosecuting the case.
Rochester Man Pleads Guilty to Charge Involving Synthetic CannabinoidsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Mohammed Akram, 29, of Rochester, NY, pleaded guilty to two counts of misbranding food before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of six years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between November 2014 and April 2015, the defendant managed Best in the West, a convenience store located at 670 Jay Street in Rochester. On April 14, 2015, search warrants were executed at that location and at the apartment above the store, where Akram lived. Officers recovered $67,847 in United States currency and approximately 1,900 packets of suspected synthetic cannabinoids.
The defendant traveled to New York City to purchase and transport bulk quantities of 3-5 ounce packages containing green vegetable matter to Rochester. The packages were labeled “G-20,” “Bizarro,” “Mardi Gras,” “G10 Potporri,” “Mr. Happy,” “WTF,” “VooDoo,” “Remarkable Herbs,” “MR SIN,” “Scooby Snax,” and “Mad Hatter.” The green vegetable matter was laced with chemicals that were not authorized by law for human consumption. The defendant, who claimed the packages were potpourri, offered the various packages of green vegetable matter for retail sale in the convenience store knowing that customers intended to ingest the green vegetable matter.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, New York, New York Field Division, and the New York State Police, under the direction of Major Richard Allen.
Sentencing is scheduled for January 29, 2017, before Judge Wolford.
Pettus Man Pleads Guilty to Online Solicitation of MinorsRead the Press Release
CORPUS CHRISTI, Texas - A 55-year-old resident of Pettus has admitted he attempted to meet two underage boys for the purpose of sex, announced Acting U.S. Attorney Abe Martinez.
Darrell Freeze appeared before U.S. Magistrate Judge Jason B. Libby and entered a guilty plea to one count of online solicitation of a minor.
Freeze was communicating with a person he believed was the mother of two minor children - ages 14 and 11. He made arrangements to meet and engage in sexual contact with the minors, but was apprehended as he arrived at the designated meeting place. Freeze admitted to authorities that he had sent messages indicating his intention to engage in sexual acts with the children. He was also in possession of condoms and candy he brought for the children.
Sentencing has been set for Feb. 28, 2018, before U.S. District Judge Nelva Gonzales Ramos. At that time, Freeze faces a minimum of 10 years and up to life in federal prison. He will remain in custody pending his sentencing hearing.
The FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Corpus Christi Police Department—Internet Crimes Against Children Task Force and the Nueces County District Attorney’s Office conducted the investigation as part of Operation Hidden Predator.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Pain Management Physician Convicted on Charges of Accepting Kickbacks and Submitting Fraudulent Bills for Anesthesia ServicesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – On October 27, 2017, following a thirteen-day trial, a federal jury convicted Atif Babar Malik, age 48, of Germantown, Maryland, on 26 felony counts arising from two criminal schemes that involved referring patients’ urine toxicology specimens to a New Jersey diagnostic testing lab in return for $1.376 million in kickbacks and fraudulently billing for anesthesia services provided in connection with spinal nerve block injections. Malik was convicted on one count of conspiracy to violate the federal Anti-Kickback Act and the Travel Act; 12 counts of violating the Anti-Kickback Act; three counts of violating the Travel Act; six counts of health care fraud; and three counts of making false entries in patients’ medical records.
Malik’s convictions were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Drew Grimm of the Office of Personnel Management – Office of Inspector General.
Malik was one of six defendants who were charged in connection with the kickback or fraudulent billing schemes. His practice co-owner and co-defendant Sandeep Sherlekar, age 52, of Germantown, Maryland, was also charged with participating in the referrals-for-kickbacks conspiracy and the fraudulent anesthesia billing scheme, as well as with making false entries in patients’ medical records. Following the return of the original indictment in late June 2016, Sherlekar committed suicide shortly before his scheduled initial appearance and arraignment in early October 2016.
Konstantin Bas, age 41, of Brooklyn, New York, the former owner and Chief Executive Officer of a Linden, New Jersey-based diagnostic testing lab known as Accu Reference; Mubtagha Shah Syed, age 50, of Jersey City, New Jersey, who worked as a marketer for Accu Reference; and Vic Wadhwa, 39, of Frederick, Maryland, the Chief Financial Officer (CFO) of Malik’s and Sherlekar’s medical practice, all previously pled guilty to charges of conspiring to violate the Anti-Kickback Act or to an individual charge of violating the Anti-Kickback Act, and are currently awaiting sentencing. Muhammad Ahmad Khan, age 44, the Chief Administrative Officer of Drs. Malik’s and Sherlekar’s practice, who was also charged in connection with the kickbacks and Travel Act conspiracy, is a fugitive and is believed to be in Pakistan.
Dr. Malik is a physician trained in pain management and Dr. Sherlekar was trained in both pain management and in anesthesiology. The two merged their pain management practices in February 2009 to create Advanced Pain Management Services, LLC (APMS), which initially had three offices in Maryland and one in New Jersey, but that later expanded to as many as ten offices. In August 2010, APMS began doing business under the name of American Spine Center, LLC (APMS/ASC). Khan was the CEO of APMS/ASC and co-conspirator Vic Wadhwa was its CFO.
APMS/ASC physicians periodically required patients who were prescribed controlled substances as pain relief medications to submit urine specimens for testing as means of monitoring the levels of pain medication or other narcotics in their bodies. According to evidence presented at trial, in the late winter of 2011, Accu Reference’s marketing agent Mubtagha Syed proposed to Khan and Wadhwa that APMS/ASC discontinue using its current testing lab and start referring its patients’ urine toxicology specimens to Accu Reference in return for the payment of kickbacks. After Drs. Malik and Sherlekar approved the plan, which also came to include back braces from another Bas-controlled company, APMS/ASC began submitting all of its patients’ urine specimens to Accu Reference in April 2011.
Starting in the late spring of 2011 and continuing through the end of July 2012, APMS/ASC each month referred between 700 to as many as 1,300 patient urine specimens to Accu Reference for testing in return for the payment of kickbacks. Accu Reference submitted claims for performing diagnostic tests on these specimens to Medicare and various private insurers for reimbursement, receiving in return approximately $4.4 million in payments. After deducting its overhead expenses on the testing, Accu Reference split its profits 50/50 with Khan, Wadhwa, Sherlekar, and Malik. (Syed also received a share of Accu Reference’s profits.) From the time the kickback payments commenced in June 2011 until the end of the scheme in August 2012, Bas caused his companies to pay kickbacks totaling $1.376 million to Sherlekar, Malik, Khan and Wadhwa. Khan and Wadhwa deceived Drs. Sherlekar and Malik about the full amount of the kickback payments Accu Reference was paying, however, and thus were able to retain more than 60% of the kickback payments for themselves. Drs. Sherlekar and Malik each received approximately $240,000 in kickback funds before the scheme came to an end in the late summer of 2012.
Among the services APMS/ASC provided to its patients were diagnostic or therapeutic nerve blocks and injections in connection with spinal conditions, which were often provided in conjunction with anesthesia. If two physicians were present during a surgical procedure, with one performing the surgical procedure and the other administering the anesthesia, then the anesthesiologist could bill separately for the anesthesia service. However, if a single surgeon or anesthesiologist was alone in the procedure room and administered the anesthesia while also performing the surgical procedure, then the anesthesia service could not be billed as a separate charge, but was instead treated as included within the fee established for the surgical procedure.
According to evidence presented by the government at trial, during the period from January 2010 through the summer of 2012, it was relatively common for only one physician at APMS/ASC to both perform the spinal injection and administer the anesthesia. In a number of these cases, APMS/ASC then submitted bills to Medicare and private insurers using a billing code that represented that two separate physicians had respectively provided the nerve block and the anesthesia, and as a result received a higher level of reimbursement. For example, evidence presented by prosecutors demonstrated that on January 3, 2012, a date when Dr. Sherlekar alone provided both spinal injections and anesthesia to a large number of patients at APMS/ASC’s Frederick office, he advised Dr. Malik by text that “I am using your name today as surgeon as we have 34 procedures here [in Frederick] and 20 in Waldorf,” to which Malik responded “ok,” although he was seeing patients at his office in Hackettstown, New Jersey that day, more than 200 miles from Frederick.
In addition to the kickback-related and health care fraud and false medical records charges that were at issue in this trial, the Court has severed out for a separate trial another count of the indictment that charged Drs. Malik and Sherlekar with conspiring to defraud the IRS by not reporting as income cash payments received by APMS/ASC, and by filing false corporate tax returns that overstated the practice’s expenses and understated its revenues. This count is currently scheduled to go to trial in February 2018.
Malik faces potential maximum sentences of 10 years in prison for each of his six health care fraud convictions; five years in prison for conspiring to violate the Anti-Kickback Act and the Travel Act; five years in prison for each of the three Travel Act convictions and for the three counts of making false statements on patients’ medical records; and two years in prison for each of his 12 convictions on charges of soliciting and receiving health-care related kickbacks. His actual sentencing range will be calculated using the Federal Sentencing Guidelines, however, and the Court will have a wide range of discretion in imposing sentence.
Acting United States Attorney Stephen M. Schenning commended the FBI; the Department of Health and Human Services – Office of the Inspector General (HHS-OIG); the IRS - Criminal Investigation Division; and the Defense Criminal Investigative Service and the Office of Personnel Management – Office of the Inspector General (OPM-OIG) for their work on the investigation. Mr. Schenning also thanked Assistant U.S. Attorneys Jefferson M. Gray and Sean R. Delaney, who led the investigation and tried the case against Dr. Malik.
Owner of Pittsburgh-Area Steel Erection Company Pleads Guilty to Conspiracy to Defraud the United States of More than $1,000,000 in Bridge SubcontractsRead the Press Release
PITTSBURGH – A resident of Eighty-Four, Pennsylvania, pleaded guilty in federal court to conspiracy to defraud the United States, Acting United States Attorney Soo C. Song announced today.
Donald R. Taylor, 78, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Taylor, the owner of Century Steel Erectors Co. (CSE), admitted that he conspired with Watson L. Maloy, Jr. to use Maloy’s company, W.M.C.C. Inc. (WMCC), as a “front” company to illegally obtain federally funded subcontracts on Pennsylvania Department of Transportation (PennDOT) and Pennsylvania Turnpike Commission (PTC) bridge projects. As part of his guilty plea, Taylor further admitted that the United States Department of Transportation (USDOT), through the Federal Highway Administration, required PennDOT and the PTC to implement USDOT’s disadvantage business enterprise (DBE) program, which was designed, among other things, to promote participation of minority-owned small businesses in federally funded projects. Because CSE was not a certified DBE subcontractor, Taylor and Maloy agreed that they would use WMCC as a means to obtain DBE-eligible bridge subcontracts. Contrary to DBE requirements, however, Taylor admitted that CSE employees, acting at his direction, actually identified, bid, negotiated, and performed the work on DBE-eligible subcontracts. As a means to conceal CSE’s role in handling contracts awarded to WMCC, Taylor admitted that CSE employees used a WMCC email account and phone line, used magneticWMCC signs to cover the CSE logo on CSE vehicles at job sites, possessed WMCC business cards, and held themselves out as WMCC employees in dealings with general contractors and PennDOT and PTC officials. As a result, Taylor admitted that WMCC and CSE fraudulently obtained nine PennDOT subcontracts between approximately January 2012 and February 2014, resulting in payments to WMCC totaling approximately $1,065,000. In return, Taylor admitted that Maloy was paid a periodic “fee,” ranging from $2,000 to $10,000 during the conspiracy.
As part of his guilty plea, Taylor agreed to pay restitution in the amount of $85,221.21 to PennDOT.
Judge Fischer scheduled sentencing for March 9, 2018, at 9:00 a.m. The law provides for a maximum total sentence of five 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.
Maloy previously pleaded guilty to one count of conspiracy to defraud the United States on November 12, 2014, and his sentencing is currently scheduled for January 23, 2018 before Chief United States District Judge Joy Flowers Conti.
Assistant United States Attorneys Robert S. Cessar, Eric G. Olshan, and Christy Criswell Wiegand are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the United States Department of Transportation – Office of Inspector General conducted the investigation of Taylor and Maloy, with assistance from the Pennsylvania Turnpike Commission – Office of Inspector General.
Oakland Man Sentenced to Almost Twenty Years in Prison for Role in Conspiracy to Smuggle Drugs Around Airport SecurityRead the Press Release
OAKLAND – Jeremy Luckett was sentenced today to 235 months in prison for his role in a conspiracy to distribute, and to possess with the intent to distribute, methamphetamine, announced United States Attorney Brian J. Stretch; Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf; and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge, following a guilty plea in which Luckett admitted participating in an operation to smuggle methamphetamine, cocaine, and marijuana through the Oakland International Airport in violation of security requirements.
Luckett, 38, of Oakland, pleaded guilty on May 8, 2017, to one count of conspiring to distribute, and to possess with intent to distribute, fifty grams and more of actual methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(b)(1)(A)(viii). According to the plea agreement and the government’s sentencing memorandum, from at least January 2011, to April 28, 2014, Luckett was part of a conspiracy to smuggle narcotics through the Oakland airport by violating airport security measures to transport methamphetamine, cocaine, and marijuana to Hawaii. In order to carry out his scheme, the defendant conspired with a Southwest Airlines employee to smuggle the narcotics into the Oakland Airport around the Transportation Security Administration checkpoint where the drugs were eventually provided to couriers who transported the narcotics on outbound commercial flights from Oakland to Hawaii. Luckett recruited some of the couriers and typically paid them cash before and after their smuggling runs. Luckett also purchased or directed a co-conspirator to purchase the plane tickets and hotel accommodations used to carry out the conspiracy. The drug smuggling operation came to an end on April 28, 2014, when one of the couriers became intoxicated and was denied entry to her flight to Hawaii. The courier was subsequently arrested and the narcotics provided to her for transport were seized. The narcotics intended for distribution in Hawaii included packages that contained 1,741.7 grams of mixtures and substances containing 1,690.2 grams of actual (pure) methamphetamine as well as 998.6 grams of cocaine.
On August 11, 2016, Luckett was charged by a federal grand jury in a superseding indictment. Luckett was charged with one count of conspiracy to enter an airport area in violation of security requirements and to defraud the United States, in violation of 18 U.S.C. § 371; 33 counts of entering an airport area in violation of security requirements, in violation of 49 U.S.C. §§ 46314(a) and 46314(b)(2); one count of conspiracy to distribute, and to possess with intent to distribute, methamphetamine and cocaine, in violation of 21 U.S.C. § 846; one count of distribution and possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1); one count of distribution and possession with intent to distribute cocaine, in violation of 21 U.S.C. § 841(a)(1); and one count of money laundering with intent to promote drug trafficking, in violation of 18 U.S.C. § 1956(a)(1)(A)(i). Pursuant to his guilty plea, Luckett pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute methamphetamine. The remaining counts were dismissed.
In addition to the prison term, Judge Gilliam also sentenced the defendant to a five-year period of supervised release. The defendant, who is in custody, will begin serving the sentence immediately.
Luckett’s co-defendants, Damian Lewis, Christopher Cross, Anthony Turner, Ja’Del McField, Brianna Holloway, Laura Turner, and Katrice Day, pleaded guilty to their respective roles in the scheme. Of these co-defendants, all except for Katrice Day await sentencing. Judge Gilliam sentenced Katrice Day on July 31, 2017, to three years of probation.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Kathleen Turner and Vanessa Quant. The prosecution is the result of an investigation by the IRS-CI, the DEA, the FBI, and the Alameda County Sheriff’s Office. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Anyone wishing to report suspected public corruption is encouraged to contact the FBI public corruption hotline at 415-553-7400 ext. 5 or at [email protected].
Non-Indian Man Residing in Isleta Pueblo Pleads Guilty to Unlawfully Possessing FirearmRead the Press Release
ALBUQUERQUE – Edward A. Garcia, 51, a non-Indian man residing in Isleta Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to violating the federal firearms laws by unlawfully possessing a firearm.
The Isleta Pueblo Tribal Police Department arrested Garcia on a criminal complaint in July 2017, for assaulting an Isleta Pueblo woman by biting her and striking her on the face and threatening her with a sledgehammer. The complaint alleged that Garcia committed the assault in Isleta Pueblo in Bernalillo County, N.M.
Garcia subsequently was charged in a four-count indictment that was filed on July 27, 2017. The indictment charged Garcia with two assault offenses: assault of an intimate partner resulting in substantial bodily injury on June 6, 2017, and assault with a dangerous weapon, a sledgehammer, on June 7, 2017. It also charged Garcia with using a cellphone to engage in a course of conduct that caused substantial emotional distress to the victim and placing her in fear of death and serious bodily injury from June 7, 2017 through July 6, 2017, and with unlawfully possessing a firearm in July 2017. According to the indictment, Garcia was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of a controlled substance.
During today’s change of plea hearing, Garcia pled guilty to being a felon in possession of a firearm. In entering the guilty plea, Garcia admitted that on July 7, 2017, when he was arrested by law enforcement authorities, he was in possession of a handgun. Garcia admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
At sentencing, Garcia faces a maximum penalty of ten years in federal prison. Garcia remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Isleta Pueblo Tribal Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Multi-State Fentanyl, Cocaine Trafficking Organization ShutdownRead the Press Release
PROVIDENCE – Twenty-three individuals have been charged in federal court in Providence, two individuals have been charged in state courts in Connecticut and Massachusetts, and federal arrest warrants have been issued for several more individuals in connection with a series of wide-sweeping investigations that to date have resulted in the seizure of at least 45 kilograms of suspected fentanyl, cocaine and marijuana. It is believed that hundreds of kilograms of fentanyl and cocaine were moved through Rhode Island and Massachusetts by the drug trafficking organization targeted in these investigations.
The first strike by law enforcement occurred when members of law enforcement interrupted the delivery of a kilogram of suspected fentanyl on February 14, 2017, allegedly supplied by a Rhode Island man, earmarked for delivery in Bridgewater, Mass. That investigation expanded to encompass a series of investigations that, to date, has involved at least 36 federal, state and local law enforcement agencies in six states and in the Dominican Republic.
At a press conference today, Acting United States Attorney for the District of Rhode Island Stephen G. Dambruch, Resident Agent in Charge of the Providence office of the Drug Enforcement Administration Sam Masiello, and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police provided an overview of the investigations dubbed “Operation Panamera.”
During the course of the investigations, at least 23 kilograms of suspected fentanyl, 11kilograms of cocaine, 11 kilograms of marijuana and two kilograms of psilocybin mushrooms were seized. The seizures were made as the drugs moved through the U.S. Postal Service; during traffic stops, including a traffic stop in Fairfield, Conn., on September 30, 2017, where 5 kilograms of suspected fentanyl, ultimately headed to Rhode Island for distribution, were seized; and the execution of court authorized searches of residences, storage units and vehicles where, for example, 5 kilograms of suspected fentanyl were seized from a residence in Norton, Mass., on September 30, 2017.
Among the individuals arrested and detained in federal custody is Ramon Delossantos, 24, of Cumberland, R.I., a Dominican national identified in court papers as the alleged leader of the drug trafficking organization. It is alleged that Delossantos was the source of the kilogram of fentanyl seized on February 14, 2017, in Bridgewater, Mass. It is also alleged in court documents that at least 50 kilograms of fentanyl and cocaine were trafficked by Delossantos or by individuals associated with Delossantos. The investigation determined that Delossantos allegedly utilized multiple telephones to avoid law enforcement detection as he allegedly facilitated the distribution of narcotics in New England with the use of “runners.” It is alleged that the deliveries varied from small quantities for users to kilograms quantities at a time for large scale distributors. Delossantos’ alleged mode of transportation during the alleged drug trafficking operation was a 2010 Porche Panamera Turbo. Delossantos was arrested on October 2, 2017, and his Porche Panamera was seized by law enforcement.
According to court documents, Delossantos, who has strong ties to the Dominican Republic, was previously convicted in Massachusetts and Rhode Island state courts on drug trafficking and firearms charges. Most recently, Delossantos was convicted and sentenced to the Adult Correctional Institutions (ACI) in Rhode Island in December 2014 on firearms charges. An immigration detainer was lodged against Delossantos at that time by Immigration and Customs Enforcement. Delossantos was released from the ACI upon completion of his prison sentence in May 2016.
Also detained in federal custody are Rinaxo M. Rufino, 33, of Miramar, FL., and Gabriel Concepcion, 27, of Kissimmee, FL., on a federal indictment charging them with conspiracy to possess with the intent to distribute five kilograms or more of cocaine. They were arrested on August 26, 2017, and charged in connection with the seizure of more than 19 kilograms of cocaine shipped via the U.S. Postal Service from Puerto Rico to residences in Providence, Woonsocket and Central Falls. The packages were intercepted by U.S. Postal Inspectors. It is alleged in court documents that Rufino and Conception were associated with Delossantos.
“This cooperative effort is yet another example of the coordinated approach law enforcement employs to combat the scourge of illegal drug distribution, particularly the opioid epidemic that has hit RI and the entire country so hard during the last few years,” said Acting United States Attorney Stephen G. Dambruch. “Drug overdoses are now the leading cause of death for Americans under the age of 50. Unfortunately, Rhode Island has not been immune to this crisis. In 2016, 336 Rhode Islanders died from an overdose, with 195 of those deaths involving fentanyl. To put that number in perspective, we had 29 homicides and 53 traffic fatalities in Rhode Island during that same period. So, when someone says drug dealing is not a violent crime, think of those numbers.”
“DEA is committed to investigating and dismantling large scale poly drug trafficking organizations like this one operating in Rhode Island,” said DEA Special Agent in Charge Michael J. Ferguson. “The Delossantos drug trafficking operation was allegedly responsible for distributing multi-kilogram quantities of fentanyl, heroin, and cocaine throughout Rhode Island and Massachusetts. DEA and our law enforcement partners will aggressively pursue any group that distributes these poisons. This investigation demonstrates the strength of collaborative law enforcement and our strong partnership with the U.S. Attorney’s Office.”
Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police and Director of the Department of Public Safety, said, “Rhode Islanders – and everyone throughout New England -- should be proud of the teamwork that went into this operation. Working together, we arrested more than two-dozen people. We seized 47 kilos of fentanyl, cocaine, marijuana and other illegal narcotics worth millions of dollars. We also saved lives. We can’t begin to imagine how many people could have died if we didn’t get those deadly drugs off our streets.”
Defendants being prosecuted in U.S. District Court in Providence are being prosecuted by Assistant U.S. Attorneys Paul F. Daly, Jr., and William J. Ferland.
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Moody Pill Mill Doctor Charged with Illegal PrescribingRead the Press Release
BIRMINGHAM – Federal prosecutors on Friday charged a Vestavia Hills physician with illegally prescribing controlled substances, including opioid painkillers, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
In a one-count information filed in U.S. District Court, the U.S. Attorney’s Office charged STEVEN BRUCE HEFTER, 60, with one count of conspiracy to dispense and distribute schedule II controlled substances, including oxycodone, methadone and hydrocodone, outside the scope of professional practice and not for a legitimate medical purpose between 2012 and December 2015. Hefter worked at a pain management clinic in Moody that closed after investigators began looking into the clinic’s prescribing practices.
In conjunction with the charge against Hefter, prosecutors also filed a plea agreement with him. The terms of the plea agreement were filed under seal; however, Hefter will be required to surrender his Alabama medical license, along with his state and federal DEA certificates to prescribe controlled substances. He will be prohibited from ever practicing medicine in the United States. A federal judge must accept the terms of the agreement before it is final.
“President Trump has declared the opioid crisis a national health emergency,” Town said. “Attorney General Sessions has already implemented programs to target this epidemic. Our collective efforts in the Northern District of Alabama are already getting results and the people of Alabama can count on many more.”
“Our agents will continue to work these cases tirelessly,” Hamilton said. “This opioid crisis is devastating to our community and our children.”
“Doctors must play a critical role in not only treating pain but also in combating America’s opioid epidemic,” said Assistant U.S. Attorney Mohammad Khatib. “Doctors prescribing opioids within the bounds of legitimate medicine are not the focus of the Department of Justice. We are, however, coming for those physicians and medical providers who abuse their positions and prescribing authority for no other purpose than greed,” he said. “Doctors who do so harm all Americans and represent the nadir of the medical profession.”
Hefter specialized as a cardiologist, not in pain management, but worked as a pain management physician for the clinic in Moody. The clinic held itself out as providing legitimate pain management services. In reality, the clinic was a pill mill churning out schedule II controlled substance pills mainly to make money. Hefter issued prescriptions through the clinic for schedule II controlled substances that were not medically necessary.
The DEA investigated the case, based partly on an investigation conducted by the Alabama Board of Medical Examiners. Khatib is prosecuting the case.
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Milwaukee-Area Gas Station Owner Charged in Federal Court with Forced Labor Trafficking and Other CrimesRead the Press Release
United States Attorney Gregory J. Haanstad announced today that a federal grand jury has returned a three-count indictment charging the owner of several Milwaukee-area gas stations with labor-related crimes involving his business that occurred between 2009 and 2011. Harshinder Bhatia (age: 58), was charged with one count of harboring an alien for financial gain, one count of forced labor involving aggravated sexual abuse, and one count of document servitude. He was arraigned on these charges on October 24, 2017.
If convicted, Bhatia faces up to 5 years in prison on the charge of document servitude, up to 10 years in prison on the charge of alien harboring, and up to life in prison on the charge of forced labor. The indictment also notifies Bhatia of the government’s intention to seek forfeiture of a number of real properties used to facilitate these offenses or acquired as proceeds of these offenses.
According to the indictment, Bhatia obtained the labor and services of an Indian national female using force and threats of force, causing her to believe that if she did not perform such labor and services, she would suffer serious harm. The indictment charges that this crime involved aggravated sexual abuse and was furthered by Bhatia’s possession of the victim’s passport.
This matter is being investigated by members of the Federal Human Trafficking Task Force, including special agents and detectives representing Homeland Security Investigations, the Federal Bureau of Investigation, the Department of Labor, and the Milwaukee Police Department. The case is being prosecuted by Assistant United States Attorney Erica J. Lounsberry.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
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McAlester Man Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that KELLY RAY POTTER JR, age 41, of McAlester, Oklahoma pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A), punishable by not less than 10 years imprisonment, and up to life imprisonment, and up to a $10,000,000.00 fine.
The Superseding Indictment alleged that beginning in or about July 2016 and continuing until on or about November 29, 2016, within the Eastern District of Oklahoma and elsewhere, the defendant, KELLY RAY POTTER JR., did knowingly and intentionally combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to distribute and possess with intent to distribute 50 grams or more of methamphetamine (actual).
The charges arose from a joint investigation entitled “Golden Pony” coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Bureau of Indian Affairs and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Timothy Hammer represented the United States.
Marty Man Sentenced to 135 Months in Federal Prison for Sexual Abuse Involving ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a Marty, South Dakota, man convicted of Sexual Abuse was sentenced on October 30, 2017, by U.S. District Judge Karen E. Schreier.
Burton Wayne Rainbow, Jr., age 35, was sentenced to 135 months in custody, followed by five years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
According to the court documents, in August of 2015 at Marty, South Dakota, Burton Wayne Rainbow, Jr., knowingly caused the victim to engage in a sexual act by placing the victim in fear. At the time of the sexual assault, the victim was 13 years old and the defendant was 32 years old.
The investigation is being conducted by the Federal Bureau of Investigation and the Yankton Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Rainbow was immediately turned over to the custody of the U.S. Marshal’s Service.
Libyan National Charged with Federal Offenses in 2012 Attack on U.S. Special Mission and Annex in BenghaziRead the Press Release
Mustafa al-Imam, a Libyan national approximately 46 years old, has been charged for his alleged participation in the Sept. 11, 2012, attack on the U.S. Special Mission and Annex in Benghazi, Libya, which resulted in the deaths of four Americans.
“The murder of four Americans in Benghazi on September 11, 2012 was a barbaric crime that shocked the American people. We will never forget those we lost – Tyrone Woods, Sean Smith, Glen Doherty and Ambassador Christopher Stevens – four brave Americans who gave their lives in service to our nation," said Attorney General Jeff Sessions. "We owe it to them and their families to bring their murderers to justice. Today the Department of Justice announces a major step forward in our ongoing investigation as Mustafa al-Imam is now in custody and will face justice in federal court for his role in the attack. I am grateful to the FBI, our partners in the intelligence community and the Department of Defense who made this apprehension possible. The United States will continue to investigate and identify all those who were involved in the attack – and we will hold them accountable for their crimes.”
“The apprehension of Mustafa al-Imam demonstrates our unwavering commitment to holding accountable all of those responsible for the murders of four brave Americans in a terrorist attack in Benghazi,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “Together with our law enforcement partners, we will do all that we can to pursue justice against those who commit terrorist acts against the United States, no matter how far we must go and how long it takes.”
Mustafa al-Imam is charged in a recently unsealed three-count criminal complaint. The complaint, which was filed under seal on May 19, 2015, in the U.S. District Court for the District of Columbia, charges al-Imam with:
- Killing a person in the course of an attack on a federal facility involving the use of a firearm and dangerous weapon and attempting and conspiring to do the same.
- Providing, attempting and conspiring to provide material support to terrorists resulting in death.
- Discharging, brandishing, using, carrying and possession of a firearm during and in relation to a crime of violence.
Al-Imam is in U.S. custody, and upon his arrival to the U.S. he will be presented before a federal judge in Washington, D.C.
Charges contained in criminal complaints are merely allegations that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s New York Field Office with substantial assistance from various other government agencies. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the National Security Division of the U.S. Department of Justice
Libyan National Charged with Federal Offenses in 2012 Attack on U.S. Special Mission and Annex in BenghaziRead the Press Release
WASHINGTON – Mustafa al-Imam, a Libyan national approximately 46 years old, has been charged for his alleged participation in the Sept. 11, 2012, attack on the U.S. Special Mission and Annex in Benghazi, Libya, which resulted in the deaths of four Americans.
“The murder of four Americans in Benghazi on September 11, 2012 was a barbaric crime that shocked the American people. We will never forget those we lost – Tyrone Woods, Sean Smith, Glen Doherty and Ambassador Christopher Stevens – four brave Americans who gave their lives in service to our nation," said Attorney General Jeff Sessions. "We owe it to them and their families to bring their murderers to justice,. Today the Department of Justice announces a major step forward in our ongoing investigation as Mustafa al-Imam is now in custody and will face justice in federal court for his role in the attack. I am grateful to the FBI, our partners in the intelligence community and the Department of Defense who made this apprehension possible. The United States will continue to investigate and identify all those who were involved in the attack – and we will hold them accountable for their crimes.”
“The apprehension of Mustafa al-Imam demonstrates our unwavering commitment to holding accountable all of those responsible for the murders of four brave Americans in a terrorist attack in Benghazi,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “Together with our law enforcement partners, we will do all that we can to pursue justice against those who commit terrorist acts against the United States, no matter how far we must go and how long it takes.”
Mustafa al-Imam is charged in a recently unsealed three-count criminal complaint. The complaint, which was filed under seal on May 19, 2015, in the U.S. District Court for the District of Columbia, charges al-Imam with:
- Killing a person in the course of an attack on a federal facility involving the use of a firearm and dangerous weapon and attempting and conspiring to do the same.
- Providing, attempting and conspiring to provide material support to terrorists resulting in death.
- Discharging, brandishing, using, carrying and possession of a firearm during and in relation to a crime of violence.
Al-Imam is in U.S. custody, and upon his arrival to the U.S. he will be presented before a federal judge in Washington, D.C.
Charges contained in criminal complaints are merely allegations that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s New York Field Office with substantial assistance from various other government agencies. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the National Security Division of the U.S. Department of Justice
- Killing a person in the course of an attack on a federal facility involving the use of a firearm and dangerous weapon and attempting and conspiring to do the same.
Leader of Check Fraud Scheme Sentenced to 4 Years in PrisonRead the Press Release
PROVIDENCE – Taquala Wigginton, 21, of Providence, was sentenced on Friday to 48 months in federal prison for leading a check fraud scheme that defrauded several local banks, and for violating the terms of supervised release in relation to a previous federal conviction and court-imposed sentence for conspiracy to commit bank fraud.
At sentencing, U.S. District Court Chief Judge William E. Smith imposed a sentence of 24 months in federal prison on Wigginton’s most recent conviction on a charge of conspiracy to commit bank fraud. Wigginton pleaded guilty on July 28, 2017. Additionally, Chief Judge William E. Smith imposed a consecutive sentence of 24 months in prison for violating the terms of supervised release in relation to January 2015 conviction and original sentence imposed for conspiracy to commit bank fraud.
Both the government and the defense recommended to the court a sentence of 48 months incarceration. The U.S. Sentencing Guideline imprisonment range in the most recent case is 27-33 months.
Wigginton’s sentence is announced by Acting United States Attorney Stephen G. Dambruch and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to court documents and information presented to the court, in the most recent case, from at least October 2015 to late February 2017, Wigginton led a conspiracy to defraud several banks through the use of fraudulent and stolen checks. The stolen and fraudulent checks were deposited into actual bank accounts, and then the funds withdrawn. As part of the scheme, Wigginton recruited individuals who surrendered control of their bank accounts and PIN numbers to her. At least seven bank account holders were identified.
According to information presented to the Court, in addition to actual bank account owners, Wigginton recruited others to participate in the scheme, including through postings on Facebook. Among those recruited to assist Wigginton was a juvenile who, by his account, executed at least 50 such transactions.
As part of the investigation into Wigginton’s criminal conduct, on February 21, 2017, Rhode Island State Police arrested Wigginton and performed a consensual search of her Providence apartment. State Police detectives seized, among other things, 335 blank checks from a Habitat for Humanity bank account; several blank checks that could be used to produce bank checks; debit cards and ATM cards, and personal identifying information belonging to several individuals.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
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Leader of Drug Trafficking Organization Operating in New Jersey Extradited from the Dominican RepublicRead the Press Release
NEWARK, N.J. – A Dominican national was extradited to the United States over the weekend for his alleged role in a drug trafficking organization responsible for over 16 kilograms of heroin that were seized in New Jersey and New York, Acting U.S. Attorney William E. Fitzpatrick announced.
Wellington Luna De La Cruz, a/k/a “Orlando Luna Cruz,” a/k/a “Luis Echevarria,” a/k/a “El Mofle,” 40, is charged by indictment with one count of conspiracy to distribute more than one kilogram of heroin and one count of distribution and possession with intent to distribute more than one kilogram of heroin. De La Cruz appeared this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was detained.
According to documents filed in this and related cases:
Since January 2015, the Drug Enforcement Administration (DEA) has been investigating a drug trafficking organization (DTO) operating in New Jersey, the Dominican Republic, Mexico, and elsewhere. The investigation revealed that De La Cruz is an alleged narcotics trafficker and high-ranking member of the DTO.
The narcotics were generally imported from Mexico and transported via truck to the New Jersey and New York areas. De La Cruz allegedly instructed certain DTO members to receive the shipments, deliver payment to the truck drivers or other suppliers, and then distribute specified amounts of narcotics to other members of the DTO.
The DTO has been linked to several multiple-kilogram seizures of heroin, including two kilograms of heroin seized in New York in March 2015; four kilograms of heroin seized on Route 80 near Saddle Brook, New Jersey, in November 2015; and 10 kilograms of heroin seized in Elizabeth, New Jersey, in January 2017.
If convicted, De La Cruz faces a mandatory minimum sentence of 10 years imprisonment, a maximum sentence of life imprisonment, and a fine of $10 million per count.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Acting U.S. Attorney Fitzpatrick credited special agents with the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson, and officers with the N.J. State Police, Trafficking North Unit, under the direction of Col. Rick Fuentes, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the OCDETF/Narcotics Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Las Cruces Man Arrested on Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – John Bevel, 42, of Las Cruces, N.M., made his initial appearance today in federal court on a criminal complaint charging him with possessing child pornography. Bevel remains in federal custody pending a preliminary hearing and a detention hearing, which are scheduled for Nov. 2, 2017.
The criminal complaint alleges that Bevel possessed child pornography in Oct. 2017, in Dona Ana County, N.M. According to the complaint, Homeland Security Investigations and the Las Cruces Police Department initiated an investigation into Bevel in early Oct. 2017, when Dropbox Inc., an online storage account system, reported to the National Center for Missing and Exploited Children that Bevel’s account allegedly contained approximately 15 files containing child pornography. The complaint further alleges that Bevel’s smartphone contained hundreds of images of child pornography.
If convicted of possessing child pornography, Bevel faces a statutory maximum penalty of 20 years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of Homeland Security Investigations and the Las Cruces Police Department. Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Lake Andes Man Charged with Sexual Abuse Offenses Involving Children Appears in Federal CourtRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lake Andes, South Dakota, man has been indicted by a federal grand jury for fourteen counts of sexual abuse offenses involving children.
Quentin Peter Bruguier, Jr., a/k/a “JB,” age 54, was indicted on October 11, 2017. He appeared before U.S. Magistrate Judge Veronica L. Duffy on October 19, 2017, and pled not guilty to the Indictment.
For the most serious offenses, the maximum penalty upon conviction is up to life imprisonment and/or a $250,000 fine, 5 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the Indictment, between 1989 and 2016, Bruguier engaged in sexual acts with children. The charges are merely accusations and Bruguier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Bruguier is currently detained. A trial date has been set for December 26, 2017.
Kansas Business Owner Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
A former resident of Overland Park, Kansas, pleaded guilty today to aiding and assisting in the preparation and presentation of false income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Thomas E. Beall for the District of Kansas.
According to documents filed with the court, Alfred Reece, 58, owned and operated a tax preparation business in Kansas City. From approximately 2013 through 2015, Reece prepared federal tax returns for individuals, claiming false business income and losses, medical and dental expense deductions, job-related expenses, charitable donations and other fraudulent items. Reece also concealed himself as the preparer on these fraudulent returns by falsely claiming that they were self-prepared. Reece admitted to causing a tax loss of between $550,000 and $1.5 million.
Sentencing is scheduled for Jan. 17, 2018 before U.S. District Court Judge Julie A. Robinson. Reece faces a statutory maximum sentence of three years in prison on each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Beall commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Scott C. Rask of the District of Kansas, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Kansas Business Owner Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
A former resident of Overland Park, Kansas, pleaded guilty today to aiding and assisting in the preparation and presentation of false income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Thomas E. Beall for the District of Kansas.
According to documents filed with the court, Alfred Reece, 58, owned and operated a tax preparation business in Kansas City. From approximately 2013 through 2015, Reece prepared federal tax returns for individuals, claiming false business income and losses, medical and dental expense deductions, job-related expenses, charitable donations and other fraudulent items. Reece also concealed himself as the preparer on these fraudulent returns by falsely claiming that they were self-prepared. Reece admitted to causing a tax loss of between $550,000 and $1.5 million.
Sentencing is scheduled for Jan. 17, 2018 before U.S. District Court Judge Julie A. Robinson. Reece faces a statutory maximum sentence of three years in prison on each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Beall commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Scott C. Rask of the District of Kansas, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Jury convicts former Cumming Police sergeant of accepting bribes and computer fraudRead the Press Release
ATLANTA – A federal jury in Atlanta convicted former Cumming Police Sergeant Nathan VanBuren of taking bribes in exchange for providing sensitive law enforcement information.
“VanBuren broke the very laws he swore to uphold and enforce,” said U.S. Attorney Byung J. “BJay” Pak. “Police officers are afforded respect, and are expected to model integrity and honesty. This former officer undermined the hard work of other officers who serve, as well as the community’s trust and respect for the police.”
“The FBI is charged with the unfortunate but necessary task of investigating police misconduct, to include corruption. That was the case with the allegations received involving then Cumming Police Sgt. VanBuren, which resulted in his federal indictment and today’s conviction via jury trial. The FBI continues to ask the public to do its part by reporting all allegations of public corruption, to include those involving law enforcement, to their nearest FBI field office for prompt action,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. States Attorney Pak, the charges, and other information presented in court: In July 2015, VanBuren, in his official capacity as a police officer, responded to a 911 call at a citizen’s home in Cumming, Georgia. The citizen was arrested. In July and August 2015, VanBuren and the citizen had additional communications. During those communications, VanBuren asked the citizen for a loan under the guise that his wages were being garnished and he had incurred financial debt due to his son’s medical and surgical expenses. In truth, VanBuren’s salary was not being garnished and his son was neither ill nor had surgery. The citizen felt threatened and reported VanBuren’s actions to the Forsyth County Sheriff’s Department and agreed to cooperate with law enforcement.
While cooperating with law enforcement, the citizen provided VanBuren $5000 in response to VanBuren’s repeated requests for money. During that meeting, the citizen asked whether VanBuren would search a sensitive police database to determine whether an individual was an undercover police officer. Ultimately, in exchange for $1000, VanBuren unlawfully accessed a law enforcement database and provided the results of that search to the citizen. VanBuren resigned before he was terminated by the Cumming Police Department.
A jury found Nathan VanBuren, 35, of Cumming, Georgia, guilty of honest services wire fraud and computer fraud. Sentencing for VanBuren has not yet been scheduled.
This case is jointly being investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation. The Cumming Police Department and Forsyth County Sheriff’s Office assisted with the investigation.
Assistant U.S. Attorney Jeffrey Brown is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Judge Sentences Pittsburgh Heroin Dealer to 8 Years in Federal PrisonRead the Press Release
PITTSBURGH – Garriton Jones was sentenced to 96 months in federal prison for conspiring to distribute heroin, Acting United States Attorney Soo C. Song announced today.
Jones, 38, formerly of Pittsburgh, Pennsylvania, was sentenced by United States District Court Judge Nora Barry Fischer. Judge Fischer ordered that Jones serve three years of supervised release after he is released from prison.
Assistant United States Attorneys Rachael L. Dizard and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Immigration and Customs Enforcement/Homeland Security Investigations, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Indictment Charges 8 Connecticut Residents with Cocaine Trafficking OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England and Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, today announced that, on October 18, 2017, a grand jury in New Haven returned seven-count indictment charging the following eight individuals with cocaine trafficking offenses:
LUIS CIRINO, a.k.a. “Gordo” and “G,” 40, of New Britain
MICHAEL RIVERA, 23, of New Britain
ANGEL SALINAS, a.k.a. “Chino,” 21, of Waterbury
JAVIER VASQUEZ, 46, of Willimantic
ANGEL CRUZ, 43, of New Britain
ALBA LORENGIE FILOMENO-GOMEZ, 22, of New London
JASMINE DELGADO, 27, of Middletown
OMAR RIVERA, a.k.a. “O,” 34, of New BritainThe indictment stems from an ongoing investigation headed by the DEA New Haven Task Force and the U.S. Postal Inspection Service that has included the use of court-authorized wiretaps and the seizure of more than 12 kilograms of cocaine. According to statements made in court, it is alleged that Luis Cirino, of New Britain, coordinated the shipment of multi-kilogram quantities of cocaine through the U.S. Mail from Puerto Rico to various locations in Connecticut. Cirino, who was assisted by individuals who received the cocaine on his behalf, then distributed the drug in Connecticut with the assistance of Michael Rivera, Angel Cruz and Omar Rivera, all of New Britain.
Cirino, Michael Rivera, Salinas, Cruz, Filomeno-Gomez and Delgado were arrested on October 25 and Vasquez was arrested on October 27.
Omar Rivera, who is charged in two pending, related indictments, has been detained since his arrest on July 26. It is alleged that Omar Rivera also received cocaine from Orlando Quiros, also known as “O” and “Gordo,” of Suffield, and supplied cocaine received from both Quiros and Cirino to Westley Northrup, also known as “Piff,” formerly of Meriden. Northrup operated a cocaine and crack cocaine trafficking ring while he was incarcerated in state custody. The two related indictments charge a total of 17 individuals.
Each of the defendants in the Cirino, et al, indictment are charged with conspiracy to distribute and to possess with intent to distribute cocaine. If convicted of this charge, based on their conduct and the quantity of cocaine involved in the conspiracy, Cirino, Michael Rivera and Salinas face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. Vasquez, Cruz, Filomeno-Gomez, Delgado and Rivera face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. Each defendant, with the exception of Salinas and Cruz, is also charged with one or more counts of possession, or attempted possession, with intent to distribute cocaine.
Cirino, who is on federal supervised release from a prior federal conviction in the District of Connecticut, faces an additional term of imprisonment if he is found to have violated the conditions of his supervised release.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments. The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service. The U.S. Marshals Service, ATF, FBI and the Suffield, Bloomfield and Springfield (Mass.) Police Departments have assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Groton Man Sentenced to 6 Years in Federal Prison for Trafficking HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSE DAVILA, also known as “Fallo,” 33, of Groton, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 72 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
According to court documents and statements made in court, an investigation by the Groton Town Police Department and the Regional Community Enhancement Task Force revealed that DAVILA was selling heroin from a camper located on a property on South Road in Groton. On May 23, 2016, investigators conducted a court-authorized search of the camper and seized more than 100 grams of heroin, items used to process and package heroin for street sale, a .380 cailber pistol with an obliterated serial number, and 80 rounds of ammunition. DAVILA was arrested on that date.
On March 1, 2017, DAVILA pleaded guilty to one count of possession with intent to distribute heroin. He has been detained since his arrest.
DAVILA’s criminal history includes at least four prior convictions, including convictions for threatening, sale of illegal drugs, and risk of injury to a child.
This case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Fort Pierce Resident Sentenced in Federal Health Care Fraud SchemeRead the Press Release
Miguel De Paula Arias, 53, of Fort Pierce, was sentenced to 161 months in prison on charges of health care fraud, false statements related to healthcare and aggravated identity theft.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), Jimmy Patronis, Florida Chief Financial Officer, and Sarah J. Mooney, Chief, West Palm Beach Police Department, made the announcement.
According to the indictment, Arias stole the identities of six retired and semi-retired senior citizen physicians and their Medicare accounts used to submit claims for services provided to patients. Arias, utilized fake passports, driver’s licenses and other identity documents, to establish bank accounts, mailing addresses and phone answering services in the names of the victim physicians to give the appearance that the physicians were in practice and providing medical care to senior citizens in different locations around the country. Between June 2011 and December 2016, using stolen personal identification information of real senior citizens from around the county, Arias submitted fraudulent and fictitious claims for purportedly providing medical services to Medicare using the victim doctors’ identities. Arias had the money paid by Medicare, resulting from this scheme, deposited into the bank accounts he controlled in the victim doctors’ names. The doctors, as a result of Arias’ crimes, received bills from the Internal Revenue Service for unpaid taxes and from Medicare for repayment of the apparently fraudulent claims. As a result of the fraudulent and fictitious claims submitted by Arias, he was paid more than $1.6 million.
The court imposed a total sentence of 161 months in prison, followed by three years of supervised release, restitution to Medicare in the amount of $1,665,348.03. Arias has been in custody since December 21, 2016. At the conclusion of the hearing, Arias was remanded to the custody of the Bureau of Prisons to serve his sentence.
Mr. Greenberg commended the investigative efforts of the HHS-OIG, FBI, DOL-EBSA, Florida Division of Investigative and Forensic Services, and the West Palm Beach Police Department. This case is being prosecuted by Assistant U.S. Attorneys Ellen L. Cohen and Stephanie Evans.
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 Qdoba Employee Pleads Gulity to ArsonRead the Press Release
LEXINGTON, Ky. – A Lexington, Ky., man has entered a guilty plea to a federal arson charge, which involved a fire at a local business where he had previously been employed.
Bennie C. Davis, 21, entered his guilty plea today, before Senior U.S. District Judge Joseph M. Hood.
In his guilty plea, Davis admitted that, on April 25, 2017, he entered the Qdoba Restaurant located on East Tiverton Way, in Lexington, after the store had closed and then set fire to the building. Davis had been recently discharged from a management position with Qdoba, a position he had held for several years.
Acting U.S. Attorney Carlton S. Shier, IV; Stuart Lowery, Special Agent in Charge, ATF; and Kristin Chilton, Chief of the Lexington Fire Department, jointly announced the guilty plea.
The ATF and the Lexington Fire Department conducted the investigation. Assistant U.S. Attorney Roger West prosecuted the case on behalf of the federal government.
Davis will be sentenced on February 29, 2018 and faces a minimum sentence of five years. He must serve at least 85 percent of his prison sentence.
Former Old Dominion University Employee Charged with Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A former employee of Old Dominion University’s computer science department pleaded guilty today to receiving images of child sexual abuse.
According to court documents, Christopher J. West, 33, of Virginia Beach, distributed child pornography to an FBI agent working in an undercover capacity in 2016. After an investigation linked the IP address of the downloads to West, the FBI executed a search of West’s apartment in Virginia Beach on April 20. During an interview West admitted he used a file sharing program to download child pornography videos from the internet. Forensic analysis on the electronics seized from West’s residence determined that he had multiple videos of child pornography on his electronic devices.
West pleaded guilty to receipt of child pornography and faces a mandatory minimum of five years and a maximum penalty of 20 years in prison when sentenced on Feb. 21, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea. Assistant U.S. Attorney Megan M. Cowles is prosecuting the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources” for more information about Internet safety education.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-88.
Former O.C. Man Sentenced to over 8 Years in Prison for Bilking Insurance Companies by Billing for Tests that Were Never PerformedRead the Press Release
LOS ANGELES – A former resident of Aliso Viejo who submitted fraudulent bills to insurance companies that sought well over $8 million for tests and services that were never performed was sentenced today to 97 months in federal prison.
Michael Mirando, 40, who currently resides in Portland, Oregon, was sentenced by United States District Judge Percy Anderson, who also ordered Mirando to pay just over $3 million in restitution. At the conclusion of today’s hearing, Judge Anderson – who called the defendant “totally unrepentant” – remanded Mirando into custody.
Following a one-week trial, Mirando was found guilty in May of 15 counts of health care fraud. The federal jury deliberated for less than 30 minutes before issuing its verdicts.
The evidence presented during the trial showed that Mirando – who was an owner of Holter Labs, LLC, which provided cardiac monitoring services using an ambulatory electrocardiography device known as a Holter recorder – defrauded dozens of private insurance companies by submitting millions of dollars in claims for services that were never performed. Mirando handled most of Holter Lab’s business activities, including purchasing the Holter recorders, advertising, managing the company’s finances, and submitting the medical claims to the patients’ insurance companies. Holter Labs was based in Laguna Niguel until Mirando moved the company to Portland in 2012.
Holter Labs provided the Holter recorder to physicians, who prescribed the devices to monitor patients’ heart rates for one to two days. Mirando then billed the patients’ insurance companies for the prescribed 24- or 48-hour tests, but he also submitted bills for services never ordered – such as 30-day tests – and for services the device could not perform – such as brain scans and oxygen studies.
From 2005 through 2016, Mirando submitted tens of thousands of claims to health insurance companies, some of which were for services legitimately performed. But Mirando also submitted bills “for services that doctors never ordered, patients never received, and that the Holter devices never performed and, in many cases, were incapable of performing,” according to documents filed by prosecutors.
The bills submitted to 26 health insurance companies sought approximately $10.3 million, which included approximately $8.4 million for tests that his company’s heart rate monitors never performed and were unable to perform. The victim health insurance companies paid about $3 million on these fraudulent claims.
Mirando was “the scheme’s primary beneficiary,” prosecutors wrote in their sentencing memorandum. “He controlled Holter Labs’ finances, diverted most of the fraudulent proceeds from his business partner, and paid to himself the majority of the proceeds from fraudulent scheme. And [Mirando] continued submitting his fraudulent claims even after being indicted and arrested.”
After Mirando admitted that he purchased his house in Portland with proceeds generated by the fraud scheme, Judge Anderson recently signed a preliminary order of forfeiture for that residence.
The case against Mirando was investigated by the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorneys Michael G. Freedman and Katherine A. Rykken of the General Crimes Section.
Former Erie Resident Pleads Guilty to Drug and Gun ChargesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal drug and firearms laws, Acting United States Attorney Soo C. Song announced today.
Ramon Martinez-Silva, 38, pleaded guilty to one count at Criminal No. 14-26 Erie and one count at Criminal No. 15-20 Erie before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that in the case at Criminal No. 14-26 Erie, from on or about May 16, 2013, to on or about August 26, 2013, Martinez-Silva and a co-defendant conspired to distribute and possess with intent to distribute cocaine. Martinez-Silva sold cocaine on four occasions in Erie, Pennsylvania. In addition, at Criminal No. 15-20 Erie, Martinez-Silva possessed a firearm while being a convicted felon. According to information provided to the court, Martinez-Silva obtained a Marlin 9mm semi-automatic rifle from an individual at a residence in Erie and was then caught by law enforcement officers after selling that gun. Martinez-Silva was prohibited from firearm possession because of two prior felony convictions.
Judge Cercone scheduled sentencing for April 19, 2018 at 3:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both for the drug charge and 10 years in prison, a fine of $250,000, or both for the gun charge. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting these cases on behalf of the government.
The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Erie Police Department, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation conducted the investigation that led to the prosecution of Martinez-Silva.
Former D.C. Teacher Pleads Guilty to Sexually Abusing StudentRead the Press Release
WASHINGTON – Alan Wade Coleman, 47, of Gainesville, Florida, pled guilty today to a charge of first-degree child sexual abuse for sexually abusing of one of his students during the 2004-2005 academic year, when Coleman was a teacher at the KIPP D.C. Key Academy middle school in Southeast Washington, announced U.S. Attorney Jessie K. Liu.
Coleman pled guilty in the Superior Court of the District of Columbia as part of a larger plea agreement in which he already pled guilty in Montgomery County, Md., where Coleman then lived and where most of the sexual activity with the student occurred.
The Honorable Hiram E. Puig-Lugo scheduled sentencing for Jan. 26, 2018. Coleman is scheduled to be sentenced in Montgomery County on Dec. 14, 2017. Once released from prison, Coleman will be required to register as a sex offender for 10 years as a result of his plea in the District of Columbia, and for life as a result of his plea in Montgomery County. He will also be on supervised release for up to 10 years as part of his sentence in the District of Columbia.
According to the government’s evidence, during the 2004-2005 academic year, Coleman engaged in sexual acts with the female student, most of which occurred at his apartment in Takoma Park, Md.; at the time she was 14 and 15 years old. On those occasions, Coleman would drive the girl to Maryland from a location either at, or near, the KIPP School. However, on several occasions during that academic year, Coleman drove her to a location in the District, where he parked and engaged in sexual acts with her in his vehicle. Coleman remained in a relationship with the girl until she was 19.
In announcing the plea, U.S. Attorney Liu praised the work of officers from the Metropolitan Police Department’s Youth Investigation Division. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Brenda C. Williams and Victim/Witness Advocate Juanita Harris. Finally, U.S. Attorney Liu commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
Former Chief Financial Officer of Manhattan-Based Real Estate Management Company Sentenced to 63 Months in Prison for FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that LOUIS LITVIN, the former chief financial officer of United Realty Management (“URM”), was sentenced today by U.S. District Judge Naomi Reice Buchwald to 63 months in prison for his role in a fraudulent scheme to steal more than $1 million from URM.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Louis Litvin, the former chief financial officer of the real estate management company URM, abused his position and substantial control he had over URM’s books, to help orchestrate a million-dollar fraud against the very company he was supposed to be serving. Today, this corporate executive was held accountable for his criminal greed.”
According to the Complaint, Information, and statements made on the record at sentencing:
From 1996 to 2011, LITVIN was the CFO for URM, and also a part-owner of URM. Unbeknownst to his co-owners, LITVIN conspired with co-defendants Melissa Chan (a former URM bookkeeper) and Chitakra Ramudit (a former Capital One branch manager who handled URM’s banking relationship) to steal more than $1 million from URM through fraudulent wire transfers, cashier’s checks, and unauthorized transfers and deposits.
LITVIN also took steps to cover up the fraud. For example, after he was fired from URM, he filed for bankruptcy. In connection with the bankruptcy proceeding, he lied in his sworn deposition, and he coached Chan to lie in her deposition, by providing her with a cover story to explain money she received from him. The cover-up of the fraud continued for years after LITVIN was fired in October 2011, until it finally came to light when URM retained forensic auditors to review the accounts that LITVIN oversaw.
* * *
In addition to his term of incarceration, LITVIN, 64, of West Palm Beach, Florida, was sentenced to five years of supervised release, and forfeiture and restitution in amounts to be determined.
LITVIN’s co-defendant Melissa Chan pled guilty to conspiracy to commit bank fraud on October 24, 2017, and is scheduled to be sentenced by Judge Buchwald on March 14, 2018. LTIVIN’s co-defendant Chitakra Ramudit is charged in Information S2 17 Cr. 445 (NRB) with conspiracy to commit bank fraud, bank fraud, and conspiracy to commit money laundering. The allegations in the Information as to Ramudit are merely accusations, and she is presumed innocent unless and until proven guilty.
Mr. Kim praised the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Eli J. Mark and Jacob Warren are in charge of the prosecution.
Former Chairman and CEO of Federal Credit Union and Computer Programmer for Unlawful Bitcoin Exchange Sentenced in Manhattan Federal CourtRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that TREVON GROSS and YURI LEBEDEV were sentenced by U.S. District Judge Alison J. Nathan to prison in connection with a bribery scheme to take over control of a federal credit union and a related fraud scheme to operate Coin.mx, an illegal Bitcoin exchange. On March 17, 2017, GROSS and LEBEDEV were convicted following a jury trial on all counts with which they were charged in the controlling indictment. On October 20, Judge Nathan sentenced LEBEDEV to 16 months in prison. Earlier today, Judge Nathan sentenced GROSS to 60 months in prison.
Acting U.S. Attorney Joon H. Kim said: “Yuri Lebedev and others at Coin.mx, an unlawful Bitcoin exchange, tricked banks into processing millions of dollars in transactions by hiding the nature of their business. When the banks caught on to their scheme, Lebedev and others bribed Trevon Gross in order to gain control of a credit union to process those transactions, undermining the credit union’s safety and solvency in the process. Despite elaborate efforts by the defendants to hide their schemes, their brazen crimes were exposed at trial. Gross and Lebedev’s criminal schemes have now landed them in federal prison.”
According to the Superseding Indictment on which GROSS and LEBEDEV were convicted, evidence admitted at trial, and statements made during the sentencing proceedings:
The Unlawful Bitcoin Exchange
Between 2013 and July 2015, LEBEDEV helped operate Coin.mx, an unlawful internet-based Bitcoin exchange, along with Anthony Murgio, the founder of Coin.mx. LEBEDEV, Murgio, and their co-conspirators engaged in substantial efforts to evade detection of their unlawful Bitcoin exchange by operating through a phony front company called “Collectables Club.” Coin.mx used the “Collectables Club” to open financial accounts in order to trick financial institutions into believing the unlawful Bitcoin exchange was simply a members-only association of individuals who discussed, bought, and sold collectible items and memorabilia. LEBEDEV and his co-conspirators deceived financial institutions by deliberately misidentifying and miscoding Coin.mx customers’ credit and debit card transactions, in violation of bank and credit card company rules and regulations. Through the illegal Coin.mx scheme, LEBEDEV and his co-conspirators caused more than $10 million in Bitcoin-related transactions to be processed illegally through financial institutions.
The Credit Union Bribery Scheme
In 2014, in an effort further to evade scrutiny from financial institutions about the nature of the business engaged in by Coin.mx, LEBEDEV, Murgio, and their co-conspirators gained control of HOPE Federal Credit Union (“HOPE FCU”), a low-income designated federal credit union in Lakewood, New Jersey, for which GROSS served as Chairman and CEO. After making more than $150,000 in illegal bribes at GROSS’s direction to bank accounts in the name of a church where GROSS served as the pastor, LEBEDEV, Murgio, and their co-conspirators took control of HOPE FCU. With GROSS’s assistance, Murgio installed LEBEDEV and various co-conspirators on HOPE FCU’s Board of Directors and transferred Coin.mx’s banking operations to HOPE FCU. GROSS also ceded operational control of the credit union to the board members installed by Murgio, including LEBEDEV. Thereafter, GROSS, LEBEDEV, and others worked to run tens of millions of dollars of ACH (Automated Clearing House) transactions through the credit union without adequate capital or anti-money laundering controls, thus putting HOPE FCU’s financial condition at substantial risk.
GROSS, LEBEDEV, Murgio, and their co-conspirators also obstructed an examination of HOPE FCU by the National Credit Union Administration (“NCUA”) and made false statements to the NCUA in order to perpetuate LEBEDEV and Murgio’s control of the credit union. These included deliberately failing to disclose the bribe payments; misrepresenting the location of Coin.mx-affiliated businesses, including the “Collectables Club,” so as to claim that they were eligible to be members of the credit union and to serve as Board members; and manipulating the accounting at HOPE FCU so as to hide its true financial condition and the fact that it was processing tens of millions of dollars of ACH transactions without adequate controls. HOPE FCU was operated as a captive bank by MURGIO and his co-conspirators until the end of 2014. In October 2015, the NCUA placed HOPE FCU into conservatorship and subsequently liquidation.
On March 17, 2017, GROSS and LEBEDEV were convicted after a four-week jury trial of conspiring to make corrupt payments to an officer of a financial institution, to receive corrupt payments by an officer of a financial institution, to obstruct an NCUA examination of a financial institution, and to make false statements to the NCUA. GROSS was also convicted of the receipt of corrupt payments by an officer of a financial institution. LEBEDEV was also convicted of making corrupt payments to an officer of a financial institution, wire fraud, bank fraud, and conspiring to commit wire fraud and bank fraud. In imposing today’s sentence, Judge Nathan found that GROSS committed perjury when he testified under oath at trial.
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In addition to the prison sentences, GROSS, 47, of Jackson, New Jersey, and LEBEDEV, 39, of St. Johns, Florida, were each sentenced to three years of supervised release and ordered to pay fines of $12,000 and $10,000, respectively. In addition, GROSS and LEBEDEV were ordered to forfeit the proceeds of their crimes and to pay restitution, jointly and severally with Murgio, to the NCUA.
All four of LEBEDEV and GROSS’s co-defendants have been convicted and have been sentenced or are awaiting sentence by Judge Nathan.
Anthony R. Murgio pled guilty on January 9, 2017, to conspiring to operate an unlicensed money transmitting business, conspiring to commit wire fraud and bank fraud, and conspiring to obstruct an examination of HOPE FCU by the NCUA in furtherance of the illegal Coin.mx scheme. On June 27, 2017, Murgio was sentenced to 66 months in prison, three years of supervised release, and a $12,000 fine.
Michael J. Murgio pled guilty on October 27, 2016, to conspiring to obstruct an NCUA examination of a financial institution, and was sentenced on January 27, 2017, to one year of probation and a $12,000 fine.
Jose M. Freundt pled guilty on October 13, 2016, to operating an unlicensed money transmitting business, conspiring to operate an unlicensed money transmitting business, making corrupt payments to an officer of a financial institution, conspiring to make corrupt payments to an officer of a financial institution, wire fraud, and conspiring to commit wire fraud. Freundt is scheduled to be sentenced on December 18, 2017.
Ricardo Hill pled guilty on January 17, 2017, to operating an unlicensed money transmitting business; conspiring to operate an unlicensed money transmitting business; making corrupt payments to an officer of a financial institution; conspiring to make corrupt payments to an officer of a financial institution, to receive corrupt payments by an officer of a financial institution, to obstruct an NCUA examination of a financial institution, and to make false statements to the NCUA; wire fraud; bank fraud; and conspiring to commit wire fraud and bank fraud. Hill is scheduled to be sentenced on December 18, 2017.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the United States Secret Service. He also thanked the NCUA for its assistance with the investigation and prosecution.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi, Daniel S. Noble, and Won S. Shin are in charge of the prosecution.
Former Attorney Sentenced to 15 Months in Prison for Wire FraudRead the Press Release
SAN FRANCISCO – Scott Loren Steever was sentenced to 15 months in prison and ordered to pay $283,689.16 in restitution for his role in a conspiracy to commit wire fraud and to commit money laundering, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down on October 25, 2017, by the Honorable Edward M. Chen, U.S. District Judge, following Steever’s plea of guilty to the charges.
According to the plea agreement, Steever, 60, of Rohnert Park, Calif., admitted that during the course of the offense, he was a licensed attorney and was working in a law firm with his co-defendant, Robert Anderson. In 2009, the law firm became financially distressed and experienced persistent cash flow problems. Between November 2009 and August 2012, Steever and his co-defendant took funds from a client’s trust account, used those funds to pay the firm’s expenses, including payment of Steever’s and his law partner’s draws, and later misrepresented that those funds were still held in a trust account for the client’s benefit, even though all of the funds had been spent. As a result of the scheme, the client suffered a net loss of $210,189.16.
A federal grand jury indicted Steever on December 18, 2014, charging him with one count of conspiracy to engage in wire fraud, in violation of 18 U.S.C. § 1349; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h); six counts of wire fraud, in violation of 18 U.S.C. §§ 1347 and 2; and one count of money laundering, in violation of 18 U.S.C. § § 1957 and 2. On November 18, 2016, Steever pleaded guilty to the two conspiracy counts and the remaining charges were dismissed.
In addition to the prison term, Judge Chen also sentenced the defendant to a 3-year period of supervised release. Further, for losses caused by his offenses and other misuse of client funds entrusted to his former law firm, Steever agreed to pay, and Judge Chen ordered Steever to pay, restitution to the client in the amount of $210,189.16, and restitution to two other victims in the amounts of $45,000 and $28,500—for a total of $283,689.16 in restitution. Steever will begin serving his prison term on January 8, 2018.
On March 9, 2016, Robert Anderson pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering. Judge Chen has scheduled Anderson’s sentencing for December 13, 2017.
Assistant U.S. Attorney Chinhayi Cadet is prosecuting the case with the assistance of Patricia Mahoney. The prosecution is the result of an investigation by the FBI.
Firearms Crime ReportRead the Press Release
Clarence Bradford, 28, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute controlled substances; and possession of a firearm in furtherance of a drug trafficking crime.
Darryl Easley, 47, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to distribute marijuana; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Charles Jones, 44, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Willie McFarland, 42, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Harold Perkins, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and one felony count of felon in possession of ammunition.
Frederick Townley, 51, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Calvin W. Davis, 55, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Anthony Kirksey, 30, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Ivery Williams, 48, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Donta Vines, 32, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Eric L. Clark, 54, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Raymond Pargo, 38, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Victor Wilson, 41, Hazelwood, pled guilty to one felony count of felon in possession of a firearm.
Richard E. Scott, Jr., 35, pled guilty to one felony count of conspiracy to distribute and possess with intent to distribute in excess of 5 kilos of cocaine; one felony count of conspiracy to distribute and possess with intent to distribute in excess of 100 grams of heroin; and one felony count of felon in possession of a firearm.
Brandon A. Campbell, 27, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Shon Sanders, 43, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Cary Washington, 47, St. Ann, was sentenced to 41 months in prison for felon in possession of a firearm.
Taron Scott, 28, St. Louis, was sentenced to 46 months in prison for felon in possession of a firearm.
Roland Robinson, 22, Florissant, was sentenced to 41 months in prison for felon in possession of a firearm.
Dominique Darden, 30, St. Louis, was sentenced to 15 months in prison for felon in possession of a firearm.
Pierre Underwood, 29, was sentenced to 65 months in prison for possession of a stolen firearm.
Donvie S. Eddington, 29, St. Louis, was sentenced to 30 months in prison for felon in possession of a firearm.
Cleave Abbott, 45, St. Louis, was sentenced to 76 months in prison for felon in possession of a firearm, possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.
Cary W. Washington, 47, St. Louis was sentenced to 41 months in prison for felon in possession of a firearm.
George Gholston, 25, Florissant, was sentenced to 24 months in prison for felon in possession of a firearm.
Joseph A. Tolcou, 27, Union, was sentenced to 30 months in prison for felon in possession of a firearm.
Erie Man Pleads Guilty in Food Stamp Fraud SchemeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to defraud the United States, Acting United States Attorney Soo C. Song announced today.
Dhia Almaleki, 47, of Erie, Pennsylvania, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Dhia Almaleki and three co-defendants were engaged in exchanging food stamps for cash on a regular basis at The Lotto World, also known as Samir’s and Lotto World Convenience, a convenience store located at 832 State Street in Erie. The four defendants also allowed customers to pay off store credit with food stamps. Alquraishi was also using customers’ food stamp cards to buy items at various stores in the area.
Judge Cercone scheduled sentencing for April 19, 2018. The law provides for a total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Almaleki on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Department of Agriculture, Office of Inspector General, the Department of Homeland Security Investigations, and the Erie Police Department conducted the investigation that led to the prosecution of Almaleki.
District Man Sentenced to 60 Years in Prison for Killings of Two Roommates in Northwest WashingtonRead the Press Release
WASHINGTON – Jeffrey Neal, 25, of Washington, D.C., was sentenced today to 60 years in prison on charges stemming from the slayings of his two roommates, whose bodies were found at their residence in Northwest Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Neal was found guilty in July 2017 of two counts of first-degree murder while armed, with aggravating circumstances, and related offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Chief Judge Robert E. Morin. Following his prison term, Neal will be placed on five years of supervised release.
According to the government’s evidence, on June 12, 2014, at approximately 11:35 a.m., officers with the Metropolitan Police Department (MPD) were dispatched to a house in the 1800 block of Eighth Street NW for a report of an unconscious person. The body of Leon Young, 22, was discovered in the attic, naked except for a black plastic bag tied around his head. Neal was arrested the following day and charged with Mr. Young’s murder.
On June 16, 2014, police returned to the house and discovered the body of Delano Wingfield, 23, in a shallow grave in the backyard. He was naked except for a pair of socks.
An investigation determined that both men were beaten multiple times in the head with a hammer. During the investigation, police learned that Mr. Young and Mr. Wingfield were childhood friends with the defendant. When the police interviewed Neal, he confessed to killing Mr. Young. He claimed he killed Mr. Young in self-defense, after Mr. Young allegedly confessed to killing Mr. Wingfield. Neal claimed he hit Mr. Young twice in the head with a hammer in self-defense. However, the autopsy of Mr. Young revealed that Mr. Young had been hammered in the head at least 26 times. Some of those blows were after the black plastic bag had been placed on Mr. Young’s head. Further, according to the government’s evidence, DNA evidence of Mr. Wingfield’s blood was found in various locations in Neal’s bedroom. Also, Neal told detectives that he left a pair of socks on Mr. Young’s body. However, Mr. Young was not discovered with socks. It was Mr. Wingfield’s body that had on a pair of socks.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences; the FBI’s Cellular Analysis Survey Team; the FBI’s DNA Casework Unit; the District of Columbia Office of the Chief Medical Examiner; Bode Cellmark Forensics, and the New Smyrna Beach Police Department of New Smyrna Beach, Fla.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Sharon Donovan, Deputy Chief of the Homicide Section; Chrisellen Kolb, Deputy Chief of the Appellate Division; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Litigation Technology Specialist Leif Hickling; Paralegal Specialist Kelly Blakeney; former Paralegal Specialists Fern Rhedrick, Amoret Vanterpool, and Vanessa Trent-Valentine; Marcia Rinker, David Foster, LaJune Thames, and Katina Adams-Washington, all of the Victim/Witness Assistance Unit; Criminal Investigators John Marsh, Durand Odom, and Zachary McMenamin; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie, Contract Specialist Sallie Rynas; Interns Hayley Poindexter and Simone Unwalla, and former intern Benjamin Symons.
Finally, they commended the work of Assistant U.S. Attorneys Shana L. Fulton and Veronica Sanchez, who investigated and prosecuted the case.
Decatur Man Pleads Guilty to Hobbs Act Robbery, Conspiracy, and Firearms ChargesRead the Press Release
SPRINGFIELD, Ill. – Sentencing has been scheduled on Mar. 5, 2018, for Matthew J. Higgins-Vogt, 25, of Decatur, Ill., who today pled guilty to his role in the April 2015, armed robbery of the Circle K convenience store and murder of 19-year-old Paige Mars, also of Decatur.
In court today, Higgins-Vogt admitted that on April 3, 2015, he and Kelton Snyder robbed the Circle K convenience store at 1685 S. Baltimore in Decatur, and took money, including the contents of the cash register, and alcohol, while Snyder brandished a 12-gauge shotgun. In furtherance of the conspiracy to commit the armed robbery of the convenience store, Higgins-Vogt admitted that he shot and killed Paige Mars on April 5, 2015, because he and Snyder did not want Mars to alert law enforcement about the robbery. Mars drove the two men to the convenience store, waited in the car while they committed the robbery, and then drove them away.
The case is being prosecuted in federal court by Assistant U.S. Attorney Jason Bohm. The Decatur Police Department and FBI conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Macon County Sheriff’s Office.
Higgins-Vogt has been in the custody of the U.S. Marshals Service since his initial appearance in federal court on Feb. 17, 2017. Higgins-Vogt was previously in the custody of the Macon County Sheriff’s Office since his arrest on state charges on April 8, 2015.
At sentencing, the penalty for brandishing a firearm during a crime of violence is a mandatory seven years to life to be served consecutive to any sentence imposed for the crime of violence. The statutory sentence for Hobbs Act robbery and conspiracy to commit Hobbs Act robbery, is up to 20 years in prison. For felon in possession of a firearm, the penalty is up to 10 years in prison.
A jury convicted co-conspirator Kelton Snyder in April 2016. On Oct. 24, 2016, Snyder was sentenced to life in federal prison.
Connecticut Man Pleads Guilty to Participating in Multimillion-Dollar Ponzi SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that STEVEN SIMMONS pled guilty in Manhattan federal court today to conspiring to commit securities fraud and wire fraud. Between 2013 and January 2017, SIMMONS solicited more than $6 million in investments for a hedge fund (the “Hedge Fund”). SIMMONS, however, misappropriated some of these funds for his own use and knew that the Hedge Fund used the remainder of the funds to pay back prior investors, as part of a Ponzi-like scheme. SIMMONS pled guilty earlier today before U.S. Magistrate Judge Barbara Moses.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Steven Simmons engaged in one of the oldest frauds in the book: using investor funds to pay back earlier investors, all while skimming funds off the top for his own personal use. When investors demanded the returns promised to them, they learned that the entire investment was just a scam. Now Simmons, who admitted his guilt in court today, will answer for his crimes.”
According to allegations in the superseding Indictment filed in Manhattan federal court, previous court filings, and statements made in public court proceedings:
Between 2013 and January 2017, SIMMONS solicited investments by falsely representing to investors that their funds would be used by the Hedge Fund for legitimate, specified investment purposes, that they would receive specific rates of return, and that their investments would not be placed at risk or commingled with other funds. In fact, SIMMONS failed to invest the investor monies as promised, but, instead, diverted investor funds for his own use and also, together with others, used the money in a Ponzi-like fashion to fund the repayment of earlier investors in the Hedge Fund whose redemption requests could not be forestalled.
Among other false and misleading statements, SIMMONS told one investor (“Victim Entity-1”) that its funds would be placed by the Hedge Fund with a highly successful group of portfolio managers and provided performance information for these portfolio managers. In truth and in fact, SIMMONS solicited those investment funds from Victim Entity-1 for the purpose of repaying an earlier investor in the Hedge Fund which had demanded the return of its investment. Most of Victim Entity-1’s funds were, within minutes of their receipt by the Hedge Fund, wired to the earlier investor. The following day, $50,000 was wired by the Hedge Fund to an account controlled by SIMMONS. In a later consensually recorded conversation with a cooperating witness (the “CW”), SIMMONS expressed concern that Victim Entity-1 would contact the portfolio managers with whom it believed its funds were invested and learn that “there’s no . . . money.” As part of the fraudulent scheme, Simmons also created and provided investors with false monthly statements.
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SIMMONS, 48, of Wilton, Connecticut, pled guilty to one count of conspiracy to commit securities fraud and wire fraud. The conspiracy count carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. In addition, pursuant to a plea agreement with the Government, SIMMONS agreed to forfeit $6,900,000.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. SIMMONS will be sentenced at a date set by the Court.
Mr. Kim praised the work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Elisha J. Kobre and Brendan F. Quigley are in charge of the prosecution.
Conneaut Lake Man Sentenced to 7 Years in Prison for Possessing and Distributing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Conneaut Lake, Pennsylvania, has been sentenced in federal court to 84 months in jail, 10 years supervised release, and ordered to make restitution in the amount of $1,000 on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on John P. Hoffman, 49, of Conneaut Lake, Pennsylvania.
According to information presented to the court, Hoffman possessed and distributed computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Department of Homeland Security Investigations for the investigation leading to the successful prosecution of Hoffman.
Columbia Men Plead to Federal Heroin ConspiracyRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated that Michael Glover, a/k/a “Glove,” a/k/a “G,” a/k/a “HG,” age 47, and Jihad Salahadeen Pollard, age 43, both formerly of Columbia, South Carolina, pled guilty today in federal court. Glover and Pollard each plead guilty to conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B). Glover also plead guilty to a money laundering conspiracy, in violation of Title 18, United States Code, Section 1956(h). Senior United States District Judge Joseph F. Anderson, Jr., of Columbia, accepted the pleas and will impose sentence after he has reviewed the presentence investigation reports, which will be prepared by the U.S. Probation Office.
Glover and Pollard were two of 10 defendants charged in April 2014, following a series of court-authorized, DEA-monitored wiretaps over several telephones in the Columbia area. The investigation revealed that a group of individuals in the Columbia area were obtaining heroin from various sources outside of South Carolina and then distributing it in the Midlands. Evidence indicated that the suppliers were initially getting the heroin in packages from India. Several packages destined for Columbia and containing heroin were intercepted by law enforcement during the investigation. Evidence further showed that the co-defendants later obtained heroin in New York and transported it back to Columbia where it was distributed. The New York heroin suppliers were charged and convicted in the Eastern District of New York for their role in the heroin conspiracy.
Glover and Pollard were fugitives until their arrests this past summer in Texas, where they were residing under false identities. Six of their co-defendants were arrested in 2014 and plead guilty to their role in the drug conspiracy here in South Carolina and were sentenced in 2015 as follows: Eric Shawn Bradley, a/k/a “E,” age 50, of Columbia, was sentenced to 210 months imprisonment with 8 years of supervised release; Kenneth Crawford, age 44, of Washington, D.C., and formerly of Columbia, was sentenced to 120 months imprisonment with 8 years of supervised release; Charles Bradley, age 35, of Columbia was sentenced to 57 months imprisonment with 6 years of supervised release to follow; Anthony Glover, age 43, of Columbia was sentenced to 120 months imprisonment with 8 years of supervised release to follow; Larry Bookman, age 64, of Columbia was sentenced to 70 months imprisonment with 6 years of supervised release; and Jessany Lyons, age 27, of Far Rockaway, New York, was sentenced to 37 months imprisonment with 3 years of supervised release. Two other co-defendants charged in the indictment remain fugitives and are innocent until and unless proven guilty.
Drake stated that on the drug conspiracy charge, Glover faces a statutory mandatory minimum of 10 years imprisonment with a maximum of life, a fine of $8,000,000, a special assessment of $100, and a term of supervised release of at least 8 years in addition to any term of imprisonment. Glover faces an enhanced sentence based upon his two prior felony drug convictions. Glover has North Carolina convictions for possession with intent to distribute marijuana (1993) and possession with intent to sale/deliver of cocaine (1994). On the money laundering conspiracy charge, Glover faces a maximum term of imprisonment of 20 years, a fine of not more than $500,000 or twice the value of the property involved in the transaction, whichever is greater, a term of supervised release of not more than 3 years, and a special assessment of $100. On the drug conspiracy charge, Pollard faces a statutory mandatory minimum of 5 years imprisonment with a maximum of 40 years, a fine of $5,000,000, a special assessment of $100, and a term of supervised release of at least 4 years in addition to any term of imprisonment
The case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which is comprised of agents and officers from the DEA, ICE - Homeland Security Investigations, United States Secret Service, Federal Bureau of Investigation, Columbia Police Department, Richland County Sheriff’s Department, South Carolina State Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Department, and the Fifth Circuit Solicitor’s Office. Assistant United States Attorney Stacey D. Haynes of the Columbia United States Attorney’s Office prosecuted the case.
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Church Employee Charged with ArsonRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a church maintenance worker was charged in federal court today with arson after setting a fire at Concord Cultural Center and spray-painting racist graffiti on the front of the adjoining church, Concord Fortress of Hope, in an effort to cover up his burglary.
Nathaniel D. Nelson, 48, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. Nelson remains in federal custody pending a detention hearing.
Nelson was a member of the church who was employed as a maintenance worker at the church and cultural center, located at 11040 W. Longview Parkway, Kansas City, Mo. Firefighters were called by a church employee and responded to the cultural center on Sunday morning, Oct. 29, 2017. A fire had occurred in an office inside the building but a sprinkler had activated and extinguished the fire prior to the arrival of firefighters. Investigators concluded that an office chair and other ordinary combustible material had been intentionally ignited using an open flame.
Investigators also discovered racist graffiti spray-painted on the front of the church. A racial slur, the letters “KKK” and a symbol similar to a swastika were visible from the main entrance into the parking lot as members of the congregation arrived for church for Sunday morning services.
The digital video recorder for the video surveillance system that monitored the foyer area and the cultural center’s interior and exterior cameras was unplugged and no longer recording when examined by investigators. Investigators determined that the DVR system lost power sometime after 1 a.m. Sunday, Oct. 29, 2017, and had been intentionally unplugged.
According to an affidavit filed in support of the federal criminal complaint, a review of the DVR system revealed that Nelson was in the foyer area shortly before the DVR system was deactivated. A second DVR, which was still powered on, recorded the video surveillance footage for the interior and exterior cameras located inside and outside of the church, which were separate from the cameras located in the cultural center and foyer. The second DVR, the affidavit says, captured video footage of Nelson spray painting the front of the church. KCPD Deputy Chief Karl Oakman, a member of the church, identified Nelson from the video surveillance footage.
Investigators then interviewed Nelson. According to the affidavit, Nelson told investigators that he went to his office in the cultural center to smoke crack cocaine sometime after 8 p.m. Saturday, Oct. 28, 2017. At some point after getting high, Nelson said he went into the church office area and attempted to force his way into the finance office to steal money. (The finance office was the only room in the church and cultural center he did not have keyed access.) Nelson wasn’t able to break into the finance room so he proceeded into two adjacent offices using his key and took $140 from one office and $94 from another office. Nelson told investigators that he then left the church to purchase more crack cocaine.
Nelson stated that after he purchased four crack rocks for approximately $125, he returned to the church to get high a second time. After Nelson smoked the crack cocaine in his office, he said, he retrieved a pair of bolt cutters, a wrench and a drill bit and attempted to break into the vending machines located in the gymnasium of the cultural center. Nelson said he was only able to steal $2 from the vending machines.
Nelson told investigators that at some point after breaking into the vending machines he left the church to purchase additional crack cocaine from the same source. Nelson told investigators that after he purchased approximately four additional crack rocks he again returned back to the church to get high. Nelson said he only paid $75 for the additional crack cocaine with the promise that he would provide his source $200 in food stamps at a later time.
During the interview, the affidavit says, Nelson admitted to investigators that he intentionally unplugged one DVR system but did not know that video was being recorded on a separate system inside the church, which captured him spray-painting the outside of the building.
According to the affidavit, Nelson told investigators that he intentionally set a fire inside the office area of the cultural center using clothing and paper towels that he had laid on or next to an office chair. Nelson also told investigators he spray-painted the front of the church with inflammatory graffiti and intentionally set the fire to create a diversion and throw investigators off.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.