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13 December 2017
Nevada Cardiologist Arrested for Unlawful Distribution of Prescription Opioids and Health Care FraudRead the Press Release
An Elko, Nevada, cardiologist was arrested yesterday on 39-charges of unlawful distribution of prescription opioids and Medicare and Medicaid fraud, announced Attorney General Jeff Sessions, Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas office, Special Agent in Charge David J. Downing for the DEA’s Los Angeles field office, and Special Agent in Charge Christian Schrank for the Office of Inspector General of the U.S. Department of Health and Human Services Office Los Angeles Region.
Dr. Devendra I. Patel, aka Devendrakumar I. Patel, 58, of Elko, is charged with 36-counts of distribution of controlled substances such as oxycodone and hydrocodone, and three-counts of health care fraud. Patel is a cardiologist at his medical practice Northeastern Nevada Cardiology. The statutory maximum penalty for distribution of a controlled substance is 10 years in prison and the maximum penalty for health care fraud is 10 years in prison. He is scheduled to appear in federal court on Wednesday in Reno.
According to the 39-count indictment that was unsealed today, it is alleged that, from May 2014 to September 2017, Patel routinely prescribed fentanyl, hydrocodone, and oxycodone for his patients without a legitimate medical purpose and that he fraudulently billed Medicare and Medicaid for medical tests that he did not perform. The indictment alleges that Patel performed EKGs on his patients, so he could then order nuclear stress tests which he did not administer. He allegedly used a poorly calibrated machine and presented his patients with fraudulent X-Rays, in order to deceive his patients into thinking they had coronary issues that needed to be treated by him.
"Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes," said Attorney General Sessions. "This summer, I ordered the creation of the Opioid Fraud and Abuse Detection Unit, which brings together data analysts and Assistant United States Attorneys from throughout the country to prosecute doctors engaged in opioid-related health care fraud. Additionally, I assigned a dozen of our top federal prosecutors to focus solely on this problem where the epidemic is at its worst. Prosecuting these cases help cut off the supply of drugs and stop addiction from spreading. These prosecutors are already delivering results, filing charges against doctors in Western Pennsylvania and Nevada. We will file many more charges in the months to come—because the Department of Justice will be relentless in hunting down drug dealers and turning the tide of this epidemic."
“Dr. Patel is the first person to be charged in Nevada since the formation of the Justice Department’s Opioid Fraud and Abuse Detection Unit,” said Acting U.S. Attorney Myhre.” The U.S. Attorney’s Office is committed to turning the tide of the prescription opioid epidemic that is plaguing our communities. We will continue to work with our law enforcement partners to investigate and prosecute individuals who contribute to this scourge.”
"Despite his physician's oath to do no harm, Dr. Patel recklessly prescribed opioids, for no legitimate medical purpose," stated FBI Special Agent in Charge Rouse. "The FBI is confident that today's arrest will send a message to other physicians that are prescribing opioids outside the scope of legitimate medical care. We are committed to using every tool in our arsenal to battle the opioid crisis in the state of Nevada."
“Our Country is in the midst of a devastating opioid crisis and DEA is using every resource available to identify the traffickers and facilitators fueling addiction in our communities,” said DEA Special Agent in Charge Downing. “Healthcare professionals who abuse the public’s trust and prescribe or dispense drugs purely for profit are drug dealers, and they’re going to be held accountable.”
“To combat this opioid epidemic, OIG will never hesitate to investigate health professionals more concerned with profits than patients,” said HHS-OIG Special Agent in Charge Schrank. “Inappropriately diagnosing patients and then prescribing medications is only compounded by the greed of sticking taxpayers with the bill.”
The case is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Office of Inspector General of the U.S. Department of Health and Human Services, U.S. Secret Service, Elko Combined Narcotics Unit, Nevada Department of Public Safety, and the Elko County Sheriff’s Office. Assistant U.S. Attorneys Kilby Macfadden and Sue Fahami are prosecuting the case.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Over 64,000 Americans died from drug overdoses in 2016. The majority of these deaths can be attributed to opioids, including illicit fentanyl. For information about the harmful effects of illicit drug use, visit www.JustThinkTwice.com for teens, and www.GetSmartAboutDrugs.com for parents, educators and caregivers.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
Multiple federal inmates sentenced on weapons chargesRead the Press Release
BLUEFIELD, W.Va. – Five federal inmates were sentenced today for possessing weapons at the Federal Correctional Institution at McDowell, announced United States Attorney Carol Casto. As part of separate prosecutions, Scott Finnell, 29, was sentenced to a year and three months in prison; Misael Santana-Rivera, 32, was sentenced to a year and three months in prison; Antonio R. Azpeitia, 40, was sentenced to a year and three months in prison; Ernest Shields, 42, was sentenced to two years in prison; and Diego Ninos, 30, was sentenced to two years in prison. All of the defendants had previously pleaded guilty to possession of a weapon by an inmate of the institution.
Each inmate admitted to possessing a handcrafted weapon, commonly referred to as a “shank.” This year, from March until June, the weapons were either observed or discovered through searches by staff members of the Federal Correctional Institution at McDowell. The objects were made out of a variety of materials, including plastic, metal, and wood, and were sharpened to a point at one end. The inmates all admitted that the shanks were designed and intended to be used as weapons.
These cases were investigated by the Federal Bureau of Prisons. Assistant United States Attorney John File handled these prosecutions. Senior United States District Judge David A. Faber imposed the sentences.
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Monroe County Man Sentenced to Five Years’ Imprisonment for Firearms OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on December 12, 2017, United States District Court Judge James M. Munley sentenced Kyle Heller, age 29, of Monroe County, Pennsylvania, to five years’ imprisonment for a felony firearms offense.
According to United States Attorney David J. Freed, Heller possessed a Smith & Wesson 9mm handgun during and in relation to a drug trafficking crime in East Stroudsburg, Pennsylvania. In August 2016, Heller stole the firearm from an unlocked pickup truck in Monroe County, and used it to trade for cocaine and cash, with which he then purchased heroin.
The case was investigated by the U.S. Federal Bureau of Investigation, the Stroud Regional Area Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni prosecuted 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.
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Missouri Man Indicted for Making Threats Against Augusta MosqueRead the Press Release
Savannah, GA – Preston Q. Howard, 49, of Wright City, Missouri, was indicted last week by a federal grand jury in Savannah for transmitting threats in interstate commerce to members of the Islamic Society of Augusta, Georgia. Today, Howard was arrested on those charges, the indictment against him was unsealed, and he will make an initial appearance before a federal magistrate judge in Missouri.
The indictment alleges that, between June 22, 2017 and August 8, 2017, Howard made numerous telephone calls to the mosque during which he threatened to “kill,” “shoot,” “behead,” “slaughter,” “execute,” “light on fire,” and “murder” members of the mosque, to “hunt down” and “zone in” on Muslims, and to “blow up the mosque.”
United States Attorney Bobby L. Christine said, “Those who make detestable and hateful threats against members of our community in violation of federal law will be held accountable, as we continue to work with our law enforcement partners to identify and bring to justice those who terrorize our citizens.”
“No one has the right to rob citizens of their sense of safety in their communities and where they practice their faith,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Threats intended to instill fear in religious communities are an attack on the very fabric of our society and will not be tolerated. The FBI will continue to vigorously investigate anyone who engages in such violent acts.”
The indictment against Howard charges ten counts of interstate communication with intent to threaten to injure. If convicted, Howard faces up to five years’ imprisonment on each count.
Mr. Christine emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The indictment of Howard arises out of an investigation led by the Federal Bureau of Investigation. Assistant United States Attorney Nancy Greenwood is prosecuting the case on behalf of the United States. For any questions, please contact Appellate Chief R. Brian Tanner at (912) 652-4422.
Middleman in Fraudulent Money Order Cashing Scheme Pleads GuiltyRead the Press Release
CAMDEN, N.J. – A Knoxville, Tennessee, resident today admitted recruiting individuals to cash fraudulent money orders that he received from a former South Jersey U.S. Postal Service (USPS) employee, Acting U.S. Attorney William E. Fitzpatrick announced.
Eugene Bowen, 35, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of transmitting and presenting unlawfully issued USPS money orders with intent to defraud the United States.
According to the documents filed in this case and statements made in court:
Bowen admitted that Marc Saunders, 39, of Sicklerville, New Jersey, a former employee at the USPS branch in New Lisbon, New Jersey, provided him with stolen money orders and told him to recruit others to cash them. Bowen admitted that he recruited individuals to cash the money orders and paid them a small fee, while keeping the rest of the money for Saunders and himself.
The charge for transmitting and presenting unlawfully issued USPS money orders carries a maximum penalty of five years in prison and $250,000 fine. Bowen’s sentencing is scheduled for March 21, 2018.
On Dec. 12, 2017, Saunders pleaded guilty to his role in the scheme, including producing the money orders with a stolen imprinting machine and giving them to others to cash. His sentencing is set for March 20, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the USPS, Office of the Inspector General, under the direction of Acting Special Agent in Charge Kenneth M. Cleevely of the Eastern Area Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: John Brennan Esq., Marlton, New Jersey
Mexican National Sentenced to 17 Years for Drug Trafficking, Possessing a Machine GunRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court in two separate cases for drug trafficking and for illegally possessing a machine gun and a rifle.
Jonathan Villegas-Escobar, 26, a citizen of Mexico residing in Kansas City, Mo., was sentenced by U.S. District Judge Gary A. Fenner to 17 years and seven months in federal prison without parole.
On March 6, 2017, Villegas-Escobar pleaded guilty to possessing a machine gun. Villegas-Escobar also pleaded guilty, in a separate federal indictment, to participating in a conspiracy to distribute methamphetamine and to using a firearm during a drug-trafficking crime.
Villegas-Escobar admitted that the amount of drugs foreseeable to him during the methamphetamine distribution conspiracy is 692.39 grams of pure methamphetamine. As relevant conduct, Villegas-Escobar also admitted responsibility for 5.29 kilograms of cocaine distributed with co-defendant Demond Robins, 36, of Kansas City, Mo.
During the course of the cocaine-trafficking conspiracy, Villegas-Escobar and Robins distributed approximately 1.9 kilograms of cocaine to a law enforcement confidential informant. Law enforcement officers seized approximately $152,675, which equates to approximately 3.392 kilograms of cocaine (based on approximately $45/gram). Additionally, Robins received approximately three kilograms of cocaine from co-defendant Jose Aguayo-Rodriguez, 25, a citizen of Mexico residing in Kansas City, Mo. (To avoid double-counting, only one additional kilogram of cocaine is attributed to Robins.) This results in a total of approximately 6.292 kilograms of cocaine.
Villegas-Escobar also admitted that he carried and used a .40-caliber Hi-Point rifle in relation to a drug-trafficking crime. Villegas-Escobar sold the firearm to another individual during a drug transaction in which he also sold methamphetamine to the same individual.
In the second federal case, Villegas-Escobar admitted that he possessed a machine gun on March 24, 2015. Villegas-Escobar sold another individual a Glock 9mm handgun, which had been converted into a fully-automatic machine gun.
Robins pleaded guilty and was sentenced to 12 years in federal prison without parole for his role in the drug-trafficking conspiracy and for participating in a money-laundering conspiracy. Aguayo-Rodriguez pleaded guilty and was sentenced to three years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Mexican Human Smugglers Head to Federal PrisonRead the Press Release
LAREDO, Texas – Two Mexican human smugglers have been ordered to prison following their convictions for bringing in 17 undocumented aliens, including five unaccompanied minors, into the United States, announced Acting U.S. Attorney Abe Martinez. Jesus Enrique Duran-Morales, 34, and Amilcar Rodolfo Molina-Ordinez, 35, both citizens and nationals of Mexico, pleaded guilty Oct. 2, 2017.
Today, U.S. District Judge Diana Saldaña sentenced both men to 51 months in federal prison. In handing down the sentences, the court noted their extensive immigration and criminal histories. Not U.S. citizens, they are expected to face deportation proceedings following their release.
Duran-Morales and Molina-Ordinez guided at least 17 undocumented aliens across the Rio Grande River and through ranch land near Laredo on Aug. 12, 2017. Agents from U.S. Border Patrol apprehended the group with the support of the Laredo Sector Horse Patrol Unit and Helicopter Support.
Among the 17 apprehended undocumented aliens were five unaccompanied minors, ranging in age from 14 to 17.
They have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
U.S. Border Patrol conducted the investigation. Special Assistant U.S. Attorney Lisa Ezra prosecuted the case.
Mexican Citizen Sentenced for Illegal Re-entry to United StatesRead the Press Release
ALBANY, NEW YORK – Jaime Marquez-Venancio, age 50, and a citizen of Mexico, was sentenced today to time served (76 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Marquez-Venancio admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on May 4, 2017. Marquez-Venancio was also previously removed to Mexico on April 28, 2017.
On September 28, 2017, Marquez-Venancio was arrested by Border Patrol Agents in Mooers, New York, as he was walking south away from the Canadian border after he illegally walked across the border at a remote location in Clinton County.
Following his sentencing, Marquez-Venancio was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by United States Border Patrol and prosecuted by Assistant United States Attorney Edward P. Grogan.
Mexican Citizen Charged with Illegal Reentry After DeportationRead the Press Release
PITTSBURGH - An illegal alien found in Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry after deportation, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on December 12, named Uriel Reyes Espinoza, age 26, of Mexico, as the sole defendant.
According to the indictment presented to the court, Uriel Reyes Espinoza, an illegal alien, was formally removed from the United States by United States Immigration and Customs Enforcement on August 26, 2008, May 1, 2012, February 2, 2014, and February 19, 2015. Uriel Reyes Espinoza was found to be illegally present in Butler, Pennsylvania, on November 28, 2017.
The law provides for a maximum total sentence of 2 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement/Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Merrillville Woman Convicted During 2-Day Jury TrialRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Anastacia Vann Maclin, age 46, of Merrillville, Indiana was convicted of embezzlement and theft from the Indiana Medicaid program, after a two-day jury trial before District Court Judge Philip P. Simon.
According to evidence presented in this case, Maclin was hired in January 2015 by a local physician in East Chicago, Indiana to function as the physician’s office manager and biller.
Beginning in April 2015 and continuing through July 2016 Maclin diverted more than $30,000 of Indiana Medicaid payments designated for her employer to a bank account that only she knew about and controlled. Maclin also applied for, received and diverted a 2015 bonus payment of more than $20,000 Indiana Medicaid was paying physicians for using electronic medical records by falsely representing the claim was being submitted by and for her employer.
This case was the result of an investigation by the Federal Bureau of Investigation and the Indiana Attorney General’s Medicaid Fraud Control Unit. This case was prosecuted by Assistant United States Attorneys Diane Berkowitz and Jacky Jacobs.
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Member of Eastern European Organized Crime Syndicate Sentenced to 46 Months’ Imprisonment for RacketeeringRead the Press Release
Earlier today, in federal court in Brooklyn, Igor Krugly was sentenced by United States District Judge Brian M. Cogan to 46 months’ imprisonment following his conviction for racketeering, including illegal gambling and extortion conspiracy as predicate acts. Krugly was a prominent member of a violent, Brooklyn-based, Eastern European criminal syndicate linked to high-ranking members of the Eastern European mafia. Krugly also agreed to pay criminal forfeiture in the amount of $25,000. Krugly pleaded guilty to the charge in June 2017.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), Angel M. Melendez, Special Agent-in-Charge, Immigration and Customs Enforcement, Homeland Security Investigations New York (ICE-HSI), James D. Robnett, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, (IRS-CI), James P. O’Neill, Commissioner, New York City Police Department (NYPD), and George Beach, Superintendent, New York State Police (NYSP), announced the sentence.
“As a member of an Eastern European organized crime syndicate, Krugly engaged in traditional and pernicious rackets, operating illegal high stakes poker games and perpetuating a related, international extortion conspiracy,” stated Acting United States Attorney Rohde. “Krugly’s conviction and sentence demonstrate the resolve of this Office and our law enforcement partners to use all available tools to root out the destructive influence of organized crime groups wherever they operate.”
“Krugly was a leader of a criminal enterprise operating in New York that profited from illegal gambling, drug trafficking and other criminal acts,” stated DEA Special Agent-in-Charge Hunt. “Throughout the investigation, our Strike Force identified Krugly’s role in violent crimes committed in other countries including Russia and Israel. This conviction is a true testament to law enforcement’s tenacity and successful collaboration between federal, state, local and international law enforcement.”
“This criminal organization has been connected to arson, assault, illegal gambling and extortion, including using threats for repayment of a gambling debt,” stated HSI Special Agent-in-Charge Melendez. “Today’s sentencing is the result of the hard work of the men and women from multiple agencies on the DEA’s Strike Force, and we are committed to working with our law enforcement partners and bringing these criminals to justice.”
“When defendants take extreme measures to continue their criminal activity, IRS-CI will add our financial expertise to strengthen these multi-agency investigations,” said IRS-CI Special Agent-in-Charge Robnett. “Today’s sentence is a direct result of the contributions from our law enforcement partners and prosecutors of the Eastern District of New York, who are committed to combating violations of federal law.”
“Today’s sentencing is a direct result of the hard work and cooperation among law enforcement at all levels, and I applaud all of our partners for their dedication to fighting organized crime,” stated NYSP Superintendent Beach. “The disruption of this illegal operation serves as a strong reminder that activities such as racketeering, illegal gambling and the violence that is perpetuated by such crimes will not be tolerated.”
According to court filings, members of the syndicate engaged in a wide range of organized criminal activities, including arson, assault, drug trafficking, extortion, illegal gambling and loansharking. Krugly co-owned and operated some of the syndicate’s high-stakes poker games in Brooklyn, and he used threats of violence to collect debts. In mid-2016, after a poker player who owed Krugly tens of thousands of dollars fled the country, Krugly and his co-defendants devised a plan to extort the player with the help of high-ranking members of Eastern European organized crime, known as “Thieves-in-Law” or “Thieves.” Court-authorized wiretaps captured Krugly planning to track down the player’s family in Russia to find out where he had fled: “This [expletive] is not [expletive] calling me. Right now, we need to find him or his father, that’s it . . . . they will approach the father, the wife of the father or his people there in Moscow.” Krugly and his co-defendants ultimately located the player in Israel and enlisted the help of the Thieves to confront him there. Less than an hour after being approached in Israel, the player contacted Krugly to arrange repayment of his debt.
Krugly was also the co-owner of a high-stakes poker game located inside a storefront at 2663 Coney Island Avenue in Brooklyn, which displayed a large poster bearing the name of the defendant’s private security business, “Pitbull Security,” in the window. Inside, however, was a professional poker room where Krugly was involved in every aspect of the business including recruiting players, paying out money to winners and collecting debts from losers, and hiring dealers and “massage girls.”
Eleven other members of the syndicate have been charged with racketeering crimes in this case. One defendant remains a fugitive, and seven have pled guilty to racketeering and related crimes. On November 13, 2017, co-defendant Isok Aronov was sentenced to a year and a day of imprisonment for unlawful debt collection. Defendants Leonid Gershman, Aleksey Tsvetkov and Artiom Pocinoc are awaiting trial. The remaining defendants are awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Matthew Jacobs and Andrey Spektor are in charge of the prosecution.
Defendant Sentenced Today:
IGOR KRUGLY
Age: 38
Residence: Brooklyn, New YorkDefendant Previously Sentenced: ISOK ARONOV
Age: 32
Residence: Brooklyn, New YorkDefendants Awaiting Trial:
LEONID GERSHMAN
Age: 34
Residence: Brooklyn, New York
ARTIOM POCINOC
Age: 28
Residence: Brooklyn, New York
ALEKSEY TSVETKOV
Age: 39
Residence: Brooklyn, New York
Defendants Awaiting Sentencing:
ERIC BOBRITSKY
Age: 32
Residence: BrooklynVYACHESLAV MALKEYEV
Age: 33
Residence: Manhattan, New York
YUSIF PARDILOV
Age: 52
Residence: Brooklyn, New YorkLIBRADO RIVERA
Age: 36
Residence: Brooklyn, New York
RENAT YUSUFOV
Age: 38
Residence: Brooklyn, New YorkFugitive:
VIKTOR ZELINGER
Age: 38
Residence: Brooklyn, New York
E.D.N.Y. Docket No. 16-CR-553 (S-2) (BMC)
Media NotificatonRead the Press Release
WHAT: D. Michael Dunavant, United States Attorney Western District of Tennessee, and Robert Hammer, Assistant Special Agent in Charge, Homeland Security Investigations, will make an announcement regarding the Department of Justice’s investigation into Criminal Immigration Enforcement. DATE: Wednesday, December 13, 2017 TIME: 3:30 p.m. WHERE: United States Attorney’s Office – Main Conference Room
Clifford Davis Odell Horton Federal Building
167 North Main Street, Suite 800
Memphis, TN 38103NOTE: All media members must present government-issued photo I.D. (such as driver’s license), as well as valid media credentials.
Media are requested to RSVP to [email protected]. The conference room will be available for media to set up at 2:30 p.m. Everything must be pre-set by 3:00p.m. Press inquiries regarding logistics should be directed to Cherri Green at 901-969-2948.
Louisiana Return Preparer Sentenced to Seven Years in Prison for Filing Fraudulent Tax ReturnsRead the Press Release
A Louisiana tax return preparer was sentenced to seven years in prison today for filing fraudulent returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Duane A. Evans for the Eastern District of Louisiana.
According to documents filed with the court, Shawanda Nevers, aka Shawanda Hawkins, Shawanda Bryant, and Shawanda Johnson, 49, operated a series of businesses in the LaPlace area, including 3LJ’s Café Services & Sports Bar LLC and 3LJ’s Industrial Service Solutions LLC. Between 2011 and 2016, Nevers filed fraudulent income tax returns that included fake business losses, deductions and tax credits and sought refunds to which her clients were not entitled. Despite a federal judge permanently enjoining her from preparing federal tax returns in 2014, Nevers continued to file fraudulent returns.
In addition to the term of prison imposed, U.S. District Court Judge Susie Morgan ordered Nevers to serve one year of supervised release and to pay restitution to the IRS for $6,934,764 in losses that she caused. She also was ordered to pay $128,900 to the Deepwater Horizon Oil Spill Trust and $964 to the Social Security Administration. Nevers pleaded guilty to filing fraudulent tax returns in August.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Evans commended special agents of IRS Criminal Investigation and the U.S. Secret Service, who conducted the investigation, and Assistant U.S. Attorneys Hayden Brockett and Loan “Mimi” Nguyen, and Trial Attorney Grace Albinson of the Tax Division, who prosecuted this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Laplace Woman Sentenced for Embezzling over $940,000 from EmployerRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ANGIE CAMBRE, age 43, of Laplace, was sentenced today after previously pleading guilty to a one-count Bill of Information charging her with wire fraud.
U.S. District Judge Sarah S. Vance sentenced CAMBRE to 33 months imprisonment, followed by 3 years of supervised release, and a $100 special assessment. Additionally, CAMBRE was ordered to pay restitution in the amount of $940,336.24.
According to court documents, CAMBRE was hired in August 2011 to be the accountant and bookkeeper for a commercial printing company headquartered in New Orleans that specializes in printing materials, such as flyers and manuals, geared toward the automotive industry (“Company A”). Between November 2011 and June 2016, CAMBRE embezzled approximately $940,336.24 from Company A in a series of approximately 3,300 individual transactions, without Company A’s knowledge or authorization. CAMBRE did so by causing payments to be sent from one of Company A’s bank accounts to accounts under her control and to repay debts due and owing related to her personal use. To disguise her behavior and to make the fraudulent, unauthorized withdrawals appear legitimate, CAMBRE recorded the transactions in Company’s A’s ledger as having been legitimate expenditures made payable to various corporate entities with whom Company A had business relationships.
Acting U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant U.S. Attorney Jordan Ginsberg was in charge of the prosecution.
Kayenta Man Sentenced to 37 Months in Federal Prison for Involuntary Manslaughter Related to Drunk DrivingRead the Press Release
PHOENIX – On Dec. 12, 2017, Morris Singer, 54, of Kayenta, Ariz., and a member of the Navajo Nation, was sentenced by U.S. Senior District Judge Stephen M. McNamee to 37 months in prison, followed by 3 years of supervised release. Singer had previously pleaded guilty to involuntary manslaughter.
The case involved Singer driving his vehicle while intoxicated. The victim, also a member of the Navajo Nation, was the passenger in Singer’s vehicle. Singer lost control of the vehicle and it rolled several times, ejecting the victim. The victim died from injuries sustained from the crash, which occurred within the Navajo reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Police Department. The prosecution was handled by Sharon Sexton and Alex Samuels, Assistant United State Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8049-PCT-SMM
RELEASE NUMBER: 2017-121_Singer
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Justice Department Announces Charges and Guilty Pleas in Three Computer Crime Cases Involving Significant DDoS AttacksRead the Press Release
The Justice Department announced today the guilty pleas in three cybercrime cases. In the District of Alaska, defendants pleaded guilty to creating and operating two botnets, which targeted “Internet of Things” (IoT) devices, and in the District of New Jersey, one of the defendants also pleaded guilty to launching a cyber attack on the Rutgers University computer network.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Bryan D. Schroder of the District of Alaska, Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey and Assistant Director Scott Smith of the FBI's Cyber Division made the announcement.
On Dec. 8, Paras Jha, 21, of Fanwood, New Jersey; Josiah White, 20, of Washington, Pennsylvania; and Dalton Norman, 21, of Metairie, Louisiana, pleaded guilty to criminal Informations in the District of Alaska charging them each with conspiracy to violate the Computer Fraud & Abuse Act in operating the Mirai Botnet. In the summer and fall of 2016, White, Jha, and Norman created a powerful botnet – a collection of computers infected with malicious software and controlled as a group without the knowledge or permission of the computers’ owners. The Mirai Botnet targeted IoT devices – non-traditional computing devices that were connected to the Internet, including wireless cameras, routers, and digital video recorders. The defendants attempted to discover both known and previously undisclosed vulnerabilities that allowed them to surreptitiously attain control over the victim devices for the purpose of forcing the devices to participate in the Mirai Botnet. At its peak, Mirai consisted of hundreds of thousands of compromised devices. The defendants used the botnet to conduct a number of powerful distributed denial-of-service, or “DDOS” attacks, which occur when multiple computers, acting in unison, flood the Internet connection of a targeted computer or computers. The defendants’ involvement with the original Mirai variant ended in the fall of 2016, when Jha posted the source code for Mirai on a criminal forum. Since then, other criminal actors have used Mirai variants in a variety of other attacks.
On Dec. 8, Paras Jha and Dalton Norman also pleaded guilty to criminal Informations in the District of Alaska charging each with conspiracy to violate the Computer Fraud & Abuse Act. From December 2016 to February 2017, the defendants successfully infected over 100,000 primarily U.S.-based computing devices, such as home Internet routers, with malicious software. That malware caused the hijacked home Internet routers and other devices to form a powerful botnet. The victim devices were used primarily in advertising fraud, including “clickfraud,” a type of Internet-based scheme that makes it appear that a real user has “clicked” on an advertisement for the purpose of artificially generating revenue.
On Dec. 13, Paras Jha pleaded guilty in the District of New Jersey to violating the Computer Fraud & Abuse Act. Between November 2014 to September 2016, Jha executed a series of attacks on the networks of Rutgers University. Jha’s attacks effectively shut down Rutgers University’s central authentication server, which maintained, among other things, the gateway portal through which staff, faculty, and students delivered assignments and assessments. At times, Jha succeeded in taking the portal offline for multi-day periods, harming Rutgers University, its faculty, and its students.
“The Mirai and Clickfraud botnet schemes are powerful reminders that as we continue on a path of a more interconnected world, we must guard against the threats posed by cybercriminals that can quickly weaponize technological developments to cause vast and varied types of harm,” said Acting Assistant Attorney General Cronan. “The Criminal Division will remain constantly vigilant in combating these sophisticated schemes, prosecuting cybercriminals, and protecting the American people.”
“Our world has become increasingly digital, and increasingly complex,” said U.S. Attorney Schroder. “Cybercriminals are not concerned with borders between states or nations, but should be on notice that they will be held accountable in Alaska when they victimize Alaskans in order to perpetrate criminal schemes. The U.S. Attorney’s Office, along with our partners at the FBI and Department of Justice‘s Computer Crime and Intellectual Property Section (CCIPS), are committed to finding these criminals, interrupting their networks, and holding them accountable.”
“Paras Jha has admitted his responsibility for multiple hacks of the Rutgers University computer system,” said Acting U.S. Attorney Fitzpatrick. “These computer attacks shut down the server used for all communications among faculty, staff and students, including assignment of course work to students, and students’ submission of their work to professors to be graded. The defendant’s actions effectively paralyzed the system for days at a time and maliciously disrupted the educational process for tens of thousands of Rutgers’ students. Today, the defendant has admitted his role in this criminal offense and will face the legal consequences for it.”
“These cases illustrate how the FBI works tirelessly against the actions of criminals who use malicious code to cause widespread damage and disruptions to the general population,” said FBI Assistant Director Smith. “The FBI is dedicated to working with its domestic and international partners to aggressively pursue these individuals and bring justice to the victims.”
For additional information on cybersecurity best practices for IoT devices, please visit: /media/906536/dl?inline.
All three cases were investigated by the FBI’s Anchorage, Alaska and Newark, New Jersey Field Offices; and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Atlanta - Greenville South Carolina Office. The Mirai Botnet and Clickfraud Botnet cases are being prosecuted by Assistant U.S. Attorney Adam Alexander of the District of Alaska and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section of the Criminal Division. The Rutgers University case is being prosecuted by Assistant U.S. Attorney Shana Chen of the District of New Jersey. Additional assistance was provided by the FBI’s New Orleans and Pittsburgh Field Offices, the U.S. Attorney’s Office for the Eastern District of Louisiana, the United Kingdom’s National Crime Agency, the French General Directorate for Internal Security, the National Cyber-Forensics & Training Alliance, Palo Alto Networks Unit 42, Google, Cloudflare, Coinbase, Flashpoint, Yahoo and Akamai. Former Department of Justice prosecutors Ethan Arenson, Harold Chun, and Yvonne Lamoureux provided invaluable support during their previous tenure at DOJ.
Justice Department Announces Charges and Guilty Pleas in Three Computer Crime Cases Involving Significant DDOS AttacksRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today the guilty pleas in three cybercrime cases. In the District of Alaska, defendants pleaded guilty to creating and operating two botnets, which targeted “Internet of Things” (IoT) devices, and in the District of New Jersey, one of the defendants also pleaded guilty to launching a cyber attack on the Rutgers University computer network.
On Dec. 8, Paras Jha, 21, of Fanwood, New Jersey; Josiah White, 20, of Washington, Pennsylvania; and Dalton Norman, 21, of Metairie, Louisiana, pleaded guilty to criminal Informations in the District of Alaska charging them each with conspiracy to violate the Computer Fraud & Abuse Act in operating the Mirai Botnet. In the summer and fall of 2016, White, Jha, and Norman created a powerful botnet – a collection of computers infected with malicious software and controlled as a group without the knowledge or permission of the computers’ owners. The Mirai Botnet targeted IoT devices – non-traditional computing devices that were connected to the Internet, including wireless cameras, routers, and digital video recorders. The defendants attempted to discover both known and previously undisclosed vulnerabilities that allowed them to surreptitiously attain control over the victim devices for the purpose of forcing the devices to participate in the Mirai Botnet. At its peak, Mirai consisted of hundreds of thousands of compromised devices. The defendants used the botnet to conduct a number of powerful distributed denial-of-service, or “DDOS” attacks, which occur when multiple computers, acting in unison, flood the Internet connection of a targeted computer or computers. The defendants’ involvement with the original Mirai variant ended in the fall of 2016, when Jha posted the source code for Mirai on a criminal forum. Since then, other criminal actors have used Mirai variants in a variety of other attacks.
On Dec. 8, Paras Jha and Dalton Norman also pleaded guilty to criminal Informations in the District of Alaska charging each with conspiracy to violate the Computer Fraud & Abuse Act. From December 2016 to February 2017, the defendants successfully infected over 100,000 primarily U.S.-based computing devices, such as home Internet routers, with malicious software. That malware caused the hijacked home Internet routers and other devices to form a powerful botnet. The victim devices were used primarily in advertising fraud, including “clickfraud,” a type of Internet-based scheme that makes it appear that a real user has “clicked” on an advertisement for the purpose of artificially generating revenue.
On Dec. 13, Paras Jha pleaded guilty in the District of New Jersey to violating the Computer Fraud & Abuse Act. Between November 2014 to September 2016, Jha executed a series of attacks on the networks of Rutgers University. Jha’s attacks effectively shut down Rutgers University’s central authentication server, which maintained, among other things, the gateway portal through which staff, faculty, and students delivered assignments and assessments. At times, Jha succeeded in taking the portal offline for multi-day periods, harming Rutgers University, its faculty, and its students.
“Our world has become increasingly digital, and increasingly complex,” said U.S. Attorney Schroder. “Cybercriminals are not concerned with borders between states or nations, but should be on notice that they will be held accountable in Alaska when they victimize Alaskans in order to perpetrate criminal schemes. The U.S. Attorney’s Office, along with our partners at the FBI and Department of Justice’s Computer Crime and Intellectual Property Section (CCIPS), are committed to finding these criminals, interrupting their networks, and holding them accountable.”
“The FBI Anchorage Office investigated this case because many rural Alaska communities and businesses are uniquely vulnerable to cyber-crimes due to our reliance on the integrity of Internet access,” said Special Agent in Charge Marlin L. Ritzman of the FBI’s Anchorage Division.
For additional information on cybersecurity best practices for IoT devices, please visit: https://www.justice.gov/criminal-ccips/page/file/984001/download.
All three cases were investigated by the FBI’s Anchorage, Alaska and Newark, New Jersey Field Offices. The Mirai Botnet and Clickfraud Botnet cases are being prosecuted by Assistant U.S. Attorney Adam Alexander of the District of Alaska and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section of the Criminal Division. The Rutgers University case is being prosecuted by Assistant U.S. Attorney Shana Chen of the District of New Jersey. Additional assistance was provided by the FBI’s New Orleans and Pittsburgh Field Offices, the U.S. Attorney’s Office for the Eastern District of Louisiana, the United Kingdom’s National Crime Agency, the French General Directorate for Internal Security, the National Cyber-Forensics & Training Alliance, Palo Alto Networks Unit 42, Google, Cloudflare, Coinbase, Flashpoint, Yahoo and Akamai. Former Department of Justice prosecutors Ethan Arenson, Harold Chun, and Yvonne Lamoureux provided invaluable support during their previous tenure at DOJ.
Justice Department Announces Charges and Guilty Pleas in Three Computer Crime Cases Involving Significant Cyber AttacksRead the Press Release
Defendants Responsible for Rutgers University Hack, Creating Mirai and clickfraud Botnets, Infecting Hundreds of Thousands of Devices with Malicious Software
TRENTON, N.J. – The Justice Department announced today guilty pleas in three cybercrime cases. In the District of New Jersey, one defendant also pleaded guilty to launching a cyber attack on the Rutgers University computer network, and in the District of Alaska, that defendant and two others pleaded guilty to creating and operating two botnets, which targeted “Internet of Things” (IoT) devices.
Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge Timothy Gallagher of the FBI’s Newark Division; U.S. Attorney Bryan D. Schroder of the District of Alaska; and Special Agent in Charge Marlin L. Ritzman of the FBI’s Anchorage Division and made the announcement.
Paras Jha, 21, of Fanwood, New Jersey, pleaded guilty today before U.S. District Judge Michael Shipp in Trenton federal court in the District of New Jersey to violating the Computer Fraud & Abuse Act. Between November 2014 and September 2016, Jha executed a series of attacks on the networks of Rutgers University. Jha’s attacks effectively shut down Rutgers University’s central authentication server, which maintained, among other things, the gateway portal through which staff, faculty, and students delivered assignments and assessments. At times, Jha succeeded in taking the portal offline for multiple consecutive periods, causing damage to Rutgers University, its faculty, and its students. The count to which Jha pleaded guilty is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross amount of any pecuniary gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for March 13, 2018.
On Dec. 8, 2017, Jha, Josiah White, 20, of Washington, Pennsylvania, and Dalton Norman, 21, of Metairie, Louisiana, pleaded guilty to criminal informations in the District of Alaska charging them each with conspiracy to violate the Computer Fraud & Abuse Act in operating the Mirai Botnet. In the summer and fall of 2016, White, Jha, and Norman created a powerful botnet – a collection of computers infected with malicious software and controlled as a group without the knowledge or permission of the computers’ owners. The Mirai Botnet, targeted IoT devices – non-traditional computing devices that have been connected to the Internet, including wireless cameras, routers, and digital video recorders. The defendants attempted to discover both known and previously undisclosed vulnerabilities that allowed them to surreptitiously attain administrative or high-level access to victim devices for the purpose of forcing the devices to participate in the Mirai Botnet. At its peak, Mirai consisted of hundreds of thousands of compromised devices. The defendants used the botnet to conduct a number of powerful “distributed denial of service” (DDOS) attacks, which occur when multiple computers acting in unison flood the Internet connection of a targeted computer or computers. The defendants’ involvement with the original Mirai variant ended in the fall of 2016, when Jha posted the source code for Mirai on a criminal forum. Since then, other criminal actors have used Mirai variants in a variety of other attacks.
Jha and Norman also pleaded guilty to criminal informations in the District of Alaska charging each with conspiracy to violate the Computer Fraud & Abuse Act. From December 2016 to February 2017, the defendants successfully infected more than 100,000 primarily U.S.-based Internet-connected computing devices, such as home Internet routers, with malicious software. That malware caused the hijacked home Internet routers and other devices to form a powerful botnet. The defendants then used the compromised devices as a network of proxies through which they routed Internet traffic. The victim devices were used primarily in advertising fraud, including “clickfraud,” a type of Internet-based scheme that utilizes “clicks,” or the accessing of URLs and similar web content, for the purpose of artificially generating revenue.
“Paras Jha has admitted his responsibility for multiple hacks of the Rutgers University computer system,” Acting U.S. Attorney Fitzpatrick said. “These computer attacks shut down the server used for all communications among faculty, staff and students, including assignment of course work to students, and students’ submission of their work to professors to be graded. The defendant’s actions effectively paralyzed the system for days at a time and maliciously disrupted the educational process for tens of thousands of Rutgers’ students. Today, the defendant has admitted his role in this criminal offense and will face the legal consequences for it.”
“Today's guilty plea is a testament to the countless hours of hard work and dedication by law enforcement in the fight against cyber criminals,” FBI Newark Special Agent in Charge Timothy Gallagher said. “Cybercrime knows no boundaries. Dismantling these operations is possible only by working closely with our partners.”
“The Mirai and Clickfraud botnet schemes are powerful reminders that as we continue on a path of a more interconnected world, we must guard against the threats posed by cybercriminals that can quickly weaponize technological developments to cause vast and varied types of harm,” Acting Assistant Attorney General Cronan said. “The Criminal Division will remain constantly vigilant in combating these sophisticated schemes, prosecuting cybercriminals, and protecting the American people.”
For additional information on cybersecurity best practices for IoT devices, please visit: https://www.justice.gov/criminal-ccips/page/file/984001/download .
All three cases were investigated by the FBI. The Rutgers University case is being prosecuted by Assistant U.S. Attorney Shana Chen of the District of New Jersey. The Mirai Botnet and Clickfraud Botnet cases are being prosecuted by Assistant U.S. Attorney Adam Alexander of the District of Alaska and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section of the Criminal Division. Additional assistance was provided by the FBI Newark Cyber Task Force, Rutgers University Police Department, N.J. State Police, the Federal Protective Service, FBI’s New Orleans and Pittsburgh Field Offices, the U.S. Attorney’s Office for the Eastern District of Louisiana, the United Kingdom’s National Crime Agency, the French General Directorate for Internal Security, the National Cyber-Forensics & Training Alliance, Palo Alto Networks Unit 42, Google, Cloudflare, Coinbase, Flashpoint, Yahoo and Akamai.
Defense counsel: Robert Stahl Esq., Westfield, New Jersey
Jury convicts operator of National Vocation Group job-staffing company of wire fraudRead the Press Release
ATLANTA – A federal jury in Atlanta has convicted Erick Powell, a former operator and co-owner of the National Vocation Group job-staffing company, of wire fraud. A second defendant and co-owner, Ahmad McCormick, pleaded guilty to wire fraud on August 31, 2017.
“Powell and his co-defendant used their company to dupe hundreds of job-seekers into paying high fees for unnecessary training with the expectation of placement in jobs that did not exist,” said U.S. Attorney Byung J. “BJay” Pak. “The jury’s verdict is a strong message to other criminals that law enforcement will find and prosecute any person or company seeking to take advantage of the hard-working citizens of this district.”
“Erick Powell deceived victims into believing they were applying for legitimate jobs that required certain Occupational Safety and Health Administration certifications when, in fact, they were not. Powell and his co-conspirators used phony online job postings to lure unsuspecting applicants into fraudulently paying their company for unnecessary OSHA training certifications. We will continue to work with OSHA and our law enforcement partners to investigate those who prey on legitimate job seekers,” stated Rafiq Ahmad, Special Agent in Charge, Atlanta Regional Office, U.S. Department of Labor, Office of Inspector General.
According to U.S. Attorney Pak, the charges, and other information presented in court: Powell and Ahmad McCormick operated a fraudulent job-staffing company in Atlanta called National Vocation Group (NVG) from August 2015 through October 2015. Powell and McCormick used Indeed.com and ZipRecruiter.com to advertise open and available jobs in the housekeeping and maintenance industries that paid above-average wages. These advertisements falsely represented that NVG had existing contracts with commercial cleaning companies throughout the Atlanta area; that the jobs paid above-average wages of up to $17/hour; and that NVG could place its clients in these high-paying jobs.
When NVG’s job applicant clients were interviewed by Powell, McCormick, and other employees of NVG, the applicants were told that, to be hired for the advertised jobs, they would have to pay $349 for certain OSHA (Occupational Safety and Health Administration) training. The applicants were falsely told that federal law required housecleaning and maintenance workers to take the OSHA General Industries Course before starting work in the advertised jobs. Hundreds of applicants paid the $349 fee based on NVG’s false representations, and took the OSHA course as required, but none of those applicants received the high-paying jobs they were promised.
Several victims complained to law enforcement, and some notified local media outlets. NVG relocated its offices from downtown Atlanta to East Point, Georgia, where the company continued its fraudulent activities. The company eventually disbanded in mid-October 2015, although both McCormick and Powell continued operating other similar, fraudulent job-staffing companies after NVG ceased operating.
On October 25, 2016, a federal grand jury returned an indictment charging McCormick and Powell for wire fraud conspiracy and ten substantive wire fraud counts. On August 31, 2017, McCormick pled guilty to wire fraud conspiracy pursuant to a guilty plea agreement. On September 14, 2017, a federal grand jury returned a superseding indictment charging Powell with wire fraud conspiracy and three substantive counts of wire fraud. On December 11, 2017, after a four-day trial, a federal jury returned a verdict convicting Powell on one count of substantive wire fraud. The jury acquitted Powell on the other counts.
Erick Powell, 29, of New Windsor, New York, and Ahmad McCormick, 31, of Brooklyn, New York, will be sentenced in early 2018. Both defendants face a statutory maximum penalty of 20 years of imprisonment.
This case is being investigated by the U.S Department of Labor, Office of the Inspector General. The East Point Police Department also provided assistance.
Assistant U.S. Attorneys John S. Ghose and Lynsey M. Barron are 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.
Jury Convicts Businessman of Defrauding the City of San Antonio with Respect to an Alamodome Janitorial Services ContractRead the Press Release
In San Antonio this afternoon, a jury convicted 54-year-old Geoffrey Comstock, owner and operator of the Frio Nevado Corporation (Frio Nevado), for overbilling the City of San Antonio by more than $500,000 for janitorial services at the Alamodome announced United States Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
The jury convicted Comstock of one count of conspiracy to commit wire fraud and six substantive counts of wire fraud. Testimony during trial revealed that from 2002 to 2016, Frio Nevado had a contract to provide janitorial services to the City of San Antonio at the Alamodome on a daily basis and for special events. Between June 2014 and January 2016, Comstock implemented a scheme to submit fraudulent invoices to the City of San Antonio that inflated the number of man hours of janitorial work performed at the Alamodome. A contract review in 2016 by the City of San Antonio Financial Department revealed that in July 2015, Comstock began preparing, or directed other employees to prepare and submit, timesheets that did not accurately reflect the names of employees, number of employees, or number of man hours expended, to justify the previously submitted false invoices. Based upon those fraudulent invoices, the City of San Antonio overpaid Frio Nevado by more than $500,000. The jury acquitted Comstocks’s former billing coordinator, 58-year-old Anna Becerra, of all charges.
“Comstock took advantage of the level of good faith and fair dealing in our financial system for his own personal gain,” said Special Agent in Charge Shane Folden, HSI San Antonio. “This case clearly demonstrated the company was defrauding the city by overbilling hundreds of thousands of dollars in fake hours at the expense of tax payers.”
Comstock faces up to 20 years in federal prison on each charge. Sentencing has yet to be scheduled.
Homeland Security Investigations (HSI) investigated this case with the cooperation of the City of San Antonio. Assistant United States Attorneys Gregory Surovic and Bud Paulissen are prosecuting this case on behalf of the Government.
Julian Robles Sentenced to Federal Prison for Drug Trafficking CrimeRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JULIAN ROBLES, age 40, from Agat, was sentenced in District Court to a term of 20 years imprisonment for Conspiracy to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 846; Conspiracy to Launder the Proceeds of the Unlawful Distribution of Controlled Substances, in violation of 18 U.S.C. §§ 1956(h) and 1956(a)(1)(A)(i); and Felon in Possession of Firearms and Ammunition, in violation of 18 U.S.C. § 922(g). The Court also ordered ten years of supervised release following defendant’s term of imprisonment and payment of a mandatory $300 assessment fee. Robles was subject to federal sentencing enhancements due to prior convictions for Robbery in Hawaii and Possession of a Scheduled II Controlled Substance in Guam. Additionally, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
Acting U.S. Attorney Anderson stated, “The primary goal of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program has been to identify, investigate, and prosecute the transnational, national, and regional criminal organizations most responsible for the illegal drug supply in the United States, the diversion of pharmaceutical drugs, and the violence associated with the drug trade. As this complex drug investigation revealed, Guam is not immune from this type of organized activity. Armed drug traffickers pose an exceptionally grave danger to our communities. The possession of one round of ammunition can expose a prohibited person to substantial federal penalties. The public can expect our federal and local law enforcement partnership to continue to focus its resources and expertise to combat this criminal activity.”
This OCDETF case involved federal agents and local law enforcement officers of the Drug Enforcement Administration, U.S. Postal Inspection Service , Internal Revenue Service-Criminal Investigations, U.S. Department of Homeland Security, Homeland Security Investigations, Guam Police Department, Guam Customs and Quarantine Agency, Bureau of Alcohol, Tobacco, Firearms & Explosives, U.S. Coast Guard Criminal Investigative Service, U.S. Marshals Service, and the Judiciary of Guam Probation Division. The case was prosecuted by Assistant U.S. Attorney Stephen F. Leon Guerrero and former Assistant U.S. Attorney Clyde Lemons Jr.
Indictment: Two Topeka Men Robbed Health ClubRead the Press Release
TOPEKA, KAN. – Two Topeka men were indicted Wednesday on charges of robbing a health club where one of them used to work, U.S. Attorney Tom Beall said.
Lesley Jamar Terrell, Jr., 33, Topeka, Kan., and George Bernard Phelps, III, 31, Topeka, Kan., are charged with one count of robbery. The indictment alleges that on Nov. 24, 2017, the two defendants robbed the Genesis Health Club at 2909 Southwest 37th Street in Topeka.
A criminal complaint in the case alleges that a Genesis employee came upon the two defendants in the lobby of the business while they attempted to pry open a box used for money deposits by members of the club. One of the defendants told the employee the robbers did not want trouble and instructed him to wait in an adjacent room. The defendant stood in the doorway of the room with his hand in the waistband of his pants. The defendants removed cash and checks from the box and then fled.
When police arrived, the employee told them one of the robbers resembled a former employee of the business. Investigators identified Terrell as a prior employee of the business who worked as an overnight maintenance worker.
If convicted, the defendants face up to 20 years in federal prison and a fine up to $250,000. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Xavier Leron Sims, 30, who is in custody, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Oct. 21, 2017
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
INTERPOL Washington Employee Joins FEMA Relief EffortsRead the Press Release
This year’s Atlantic hurricane season devastated vast swaths of the southern United States and nations of the Caribbean. Of the 17 named storms of the season, three—Harvey, Irma, and Maria—combined to make 2017 one of the most dangerous and costly ever. In response to a government–wide call for volunteers, INTERPOL Washington Information Technology (IT) Specialist Chris Gorham answered.
The sheer number and ferocity of the storms and their trails of devastation led the Federal Emergency Management Agency (FEMA) to open its Surge Capacity Force to Federal employees outside of the Department of Homeland Security, including the Department of Justice. The surge force supplements FEMA’s first responders, by providing extra personnel when disasters overwhelm FEMA resources. The volunteers work in tours of duty not to exceed 45 days. In 2017, surge force volunteers deployed to Texas, Florida, and the Caribbean, including Puerto Rico and the U.S. Virgin Islands.
On Friday, September 29th, Gorham received his notice to activate as a volunteer. By Sunday, he was in Anniston, Alabama, at FEMA’s training facility known as the Center for Domestic Preparedness. This state-of-the-art facility provides training to state, local, and tribal emergency response providers. Gorham spent the next three weeks in training with, and ultimately providing training to, other U.S. Government volunteers.
Hurricane Maria had devastated Puerto Rico on September 20th. As an IT specialist, Gorham was assigned to the IT team to support the stand-up of FEMA Disaster Recovery Centers (DRCs). DRCs serve homeowners, renters and business owners who sustained damage as a result of Hurricane Maria. The team left Alabama for a mission to setup DRCs around the island.
The team arrived in a country still reeling. By mid-October, internet connectivity and electrical power remained scarce. Accommodations for the volunteers were also sparse as was air conditioning, food, and clean drinking water. According to Gorham, “For the first few weeks, we slept on cots in the back of the San Juan Convention Center, before moving to one of the U.S. military ships docked in San Juan, and ultimately to a small hotel. The days were long—10-12 hours per day, 7 days per week was normal. Our conditions were difficult but nothing like the conditions for the local people. We knew our hardship would end in 45 days.”
From their base in San Juan, Gorham and his team traveled across the devastated island, using washed-out roads littered with fallen power lines, shredded traffic signs, and debris torn from lost homes and businesses. Without internet connectivity, GPS mapping systems didn’t work consistently making travel to remote areas difficult and tedious. For example, Humacao, a city located on the eastern coast of the island, is normally about a one-hour drive from San Juan. During the time that Gorham was there, the trip took more than three hours. Visiting up to three locations per day in each town, the team used stadiums, gymnasiums, and other large buildings to provide IT support for the newly established DRCs. At times they found themselves helping to distribute basics such as food and water to people waiting in 95-degree heat for sustenance.
During Gorham’s time in Puerto Rico, he participated in the opening of more than 70 DRCs. “The opportunity to volunteer to help fellow Americans was truly a privilege. I had a chance to get out of my usual routine and expand my perspective. Working in small teams under adverse conditions was challenging but rewarding. I know my work helped people who have lost everything begin the recovery process,“ Gorham reflected.
Photo by Andrea Booher / FEMA Santa Maria, Puerto Rico, October 8, 2017 -- Damaged properties in the Santa Maria neighborhood near Humacao, Puerto Rico. After Hurricane Maria, many homes, businesses, roads, bridges and government buildings suffered major damage due to strong winds and heavy rain.Houston Man Taken into Custody on Charges of TerrorismRead the Press Release
UPDATE - 12/13/17:
Today, A federal grand jury returned a five-count indictment against Kaan Sercan Damlarkaya.
He is charged with one count of providing and attempting to provide material support to terrorists which carries a possible sentence of up to 15 years in federal prison. He is also charged with two counts of attempting to provide material support to ISIS and two counts of unlawfully distributing explosives information, all of which carry a possible 20-year maximum term of imprisonment. Each of the charges also carries a potential $250,000 maximum fine.
He remains set for a detention hearing tomorrow at 10:00 a.m.
An indictment complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
HOUSTON – An 18-year-old U.S. citizen from Houston has been charged with unlawfully distributing explosive making instructions and attempting to provide material support to Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General for National Security Dana J. Boente and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
Authorities arrested Kaan Sercan Damlarkaya late Friday, Dec. 8, 2017, upon the filing of a sealed criminal complaint. It was unsealed this morning as he made his initial appearance before U.S. Magistrate Judge Dena H. Palermo, at which time he was temporarily ordered into custody pending a detention hearing set for Dec. 14.
According to the charges, beginning in or about early August 2017, Damlarkaya engaged in online communications with undercover FBI agents and other sources. During those conversations, he allegedly shared his intentions to travel overseas to fight for ISIS or, if unable, to commit an attack in the United States. The charges also indicate Damlarkaya asked if he could provide a farewell video to be published should he follow through with an attack resulting in his death in order to inspire others. Damlarkaya further provided instructions on how to build an AK-47 or AR-15 assault rifle from readily available parts in order to avoid detection from authorities, according to the criminal complaint.
Additionally, Damlarkaya provided a formula to alleged ISIS supporters for the explosive, Triacetone Triperoxide (TATP), and instructions on how to use TATP in a pressure cooker device that contained shrapnel, according to the allegations. He also discussed the use of a machete or Samurai sword as an alternative to a gun or explosive. The criminal complaint further indicates he claimed to carry a knife in the event he was stopped by law enforcement and that he slept with a machete under his pillow in case his house was ever raided.
In early November 2017, according to court documents, Damlarkaya explained “if I buy a gun or supplies for a bomb, they [presumably law enforcement] will heat up pressure [j]ust like a few months ago when I was trying an operation but they found out.” The criminal complaint further alleges that Damlarkaya claims to have attempted to get to Syria on two other occasions, but failed.
If convicted of unlawfully distributing explosives information or attempting to provide material support to a designated foreign terrorist organization, Damlarkaya faces a possible 20-year-maximum term of imprisonment. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.
The FBI’s Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorneys Alamdar Hamdani and Rob Jones of the Southern District of Texas are prosecuting the case along with Trial Attorneys Gregory Gonzalez and Kevin Nunnally of the Counterterrorism Section of the Justice Department’s National Security Division.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Houston Area Man Sentenced for Role in Cocaine DistributionRead the Press Release
BROWNSVILLE, Texas – A 28-year-old resident of Pasedena has been ordered to prison for his participation in a cocaine distribution scheme involving multiple seizures of cocaine, announced Acting U.S. Attorney Abe Martinez. Victor Hugo Hernandez pleaded guilty May 24, 2017.
Today, U.S. District Judge Andrew S. Hanen ordered Hernandez to serve a total of 120 months in federal prison. The sentence will be immediately followed by five years of supervised release.
Beginning in April 2015, Hernandez participated in a series of meetings to negotiate the transportation of approximately 30 kilograms of cocaine to Kansas City, Missouri. Law enforcement observed and recorded these meetings. On May 1, 2015, Hernandez went to a fast food restaurant in Brownsville and finalized the delivery of the cocaine. Co-conspirator Mario Marroquin arrived and delivered the narcotics in the parking lot. The drugs were then transported to Kansas City where they ultimately tested positive for cocaine and weighed approximately 29 kilograms.
In October 2015, Hernandez engaged in another transaction involving the transportation of cocaine to North Carolina. He assisted the cocaine distribution scheme as Jaime Pena and Jose Adan Lopez delivered two separate loads of cocaine to an undercover officer. Pena delivered approximately 25 kilograms of cocaine at an Olmito convenience store, while Lopez provided 20 kilograms of cocaine to the office at a Home Improvement store in Brownsville.
The court found the total amount of cocaine for which Hernandez was responsible in these three transactions was 74 kilograms.
Each of the co-conspirators had also pleaded guilty. Lopez, 43, Marroquin, 25, and Pena, 53, all of Brownsville, received 102, 70 and 54 months in prison, respectively.
Hernandez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and police departments in Brownsville and Pasadena conducted the investigation. Assistant U.S. Attorneys Jody Young and Karen Betancourt prosecuted the case.
Honduran Charged with Illegally Reentering U.S. After DeportationRead the Press Release
PITTSBURGH – An individual found by the U.S. Department of Homeland Security/Immigration and Customs Enforcement has been indicted by a federal grand jury in Pittsburgh on charges of illegal re-entry into the United States after deportation, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on December 12, named Fredy Abel Lainus-Vasquez, 30, formerly of Honduras, as the sole defendant.
According to the indictment, Lainus-Vasquez, an alien, was removed from the United States by U.S. Immigration and Customs Enforcement on August 9, 2011 and September 26, 2012, and was again found in the United States, in Pittsburgh on August 2, 2017, by ICE Officers.
The law provides for a maximum total sentence of two 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.
The U.S. Immigration and Customs Enforcement/Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hart County, Kentucky, Resident Charged with Possession with Intent to Distribute Methamphetamine and Being A Convicted Felon in Possession of Multiple Firearms and AmmunitionRead the Press Release
BOWLING GREEN, – A Hart County, Kentucky, resident was charged today by grand jury indictment with intentionally possessing methamphetamine for the purpose of distribution, being a convicted felon in possession of multiple firearms and ammunition, and carrying a firearm during a drug trafficking crime announced United States Attorney Russell M. Coleman.
Tonya Nickson, 42, of Cave City, was arrested at her home on July 27, 2017, by the Metcalf County Kentucky Sheriff’s Department and is currently out of custody on bond.
According to the three-count federal Indictment, Nickson is a convicted felon having been convicted of a felony on April 4, 2006, in Hart County Circuit Court, for possession of a controlled substance.
At the time of her arrest, Nickson was in possession of 19 firearms including: a Kimber, model Micro 9, 9 millimeter semiautomatic pistol; Fratelli Tanfoglio, model Witness PS, 9 millimeter semiautomatic pistol; Fratelli Tanfoglio, model Witness P, 9 millimeter semiautomatic pistol; Smith and Wesson, model 15, .38 caliber revolver; Iver Johnson, model 55, .22 caliber revolver; Maadi Company model Helwan, 9 millimeter semiautomatic pistol; CZ, model C252, 7.62 Tokarev caliber semiautomatic pistol; American Tactical Imports, model Omni Hybrid, multi caliber lower receiver; Marlin, model 70PSS, .22 semiautomatic rifle; Norinco, model SKS, 7.62x39 caliber semiautomatic rifle; Norinco, model SKS, 7.62x39 caliber semiautomatic rifle; Mossberg, model 500C, 20 gauge pump shotgun; Marlin, model 60, .22 caliber semiautomatic rifle; Savage, model 10, .22-250 caliber bolt action rifle; Oregon Arms Inc., model Chipmunk, .22 caliber bolt action rifle; Marlin, model 81, .22 caliber rifle, no serial number; Browning, model Auto 5, 12 gauge semiautomatic shotgun; Winchester, model 1200, 12 gauge pump shotgun; Winchester, model 62A, .22 caliber rifle; and ammunition.
If convicted of the charges, Nickson could be sentenced to no more than 20 years for count one, no more than ten years for count two, and no less than five years for count three. Further, Nickson could be fined and ordered to serve a period of supervised release.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
nickson_indictment_12-13-17.docx
Guatemalan Man Sentenced to 15 Years for Conspiracy to Distribute HeroinRead the Press Release
The United States Attorney for the District of Vermont announced that Diego Walther Anibal Mejia Paredes, 35, of Guatemala, was sentenced December 10, 2017, in United States District Court in Burlington to 180 months of imprisonment following his guilty plea to conspiracy to distribute more than a kilogram of heroin. United States District Judge William K. Sessions III also ordered that Mejia Paredes serve five years of supervised release following the completion of his prison sentence. Mejia Paredes has been in the custody of the United States Marshals Service since his October 2015 arrest.
Court records indicate that during the summer and fall of 2015 Mejia Paredes conspired with Marco Antonio Lam Peralta, of South Londonderry, Vermont, and others, to ship large quantities of heroin from Guatemala, hidden in Guatemalan food supplement packaging, to various addresses in Southeastern, Vermont. In early October 2015 customs officials discovered more than 41 kilograms of heroin in one such shipment, addressed to a restaurant in Manchester Center, Vermont. Agents from the Department of Homeland Security, working with the Drug Enforcement Administration and the Vermont State Police, conducted a controlled delivery of that shipment. Shortly before arresting him, agents observed Mejia Paredes wait for the shipment to arrive, take delivery of the shipment, and drive off with the contraband. Additional investigation led agents to conclude that this was the conspiracy's eighth shipment into Vermont in 2015.
Mejia Paredes' co-defendant, Lam Peralta, pleaded guilty in August 2017, but has since filed a motion seeking to withdraw from his plea. That motion is pending.
This case was investigated by the Department of Homeland Security, the Drug Enforcement Administration, the Vermont State Police, and the Bureau of Alcohol, Tobacco and Firearms, with assistance from the Manchester, Vermont, Police Department.
Mejia Paredes is represented by Steven Barth. The prosecutor is Assistant U.S. Attorney Michael Drescher.
German national is the latest cyber-criminal sentenced for conspiring to launder proceeds from fraudulent affiliate marketing websitesRead the Press Release
ATLANTA - Sven Franssen, a German national residing in the Netherlands, has been sentenced to two years and six months in federal prison for his role in conspiring to launder the proceeds of fraudulent affiliate marketing websites. The fraudulent sites received increased internet traffic due to a massive computer hacking and illegal spam campaign brought on by a pair of Vietnamese nationals.
“Franssen’s sentencing concludes the methodical takedown of a cyber-criminal syndicate,” said U. S. Attorney Byung J. “BJay” Pak. “As cyber-criminals continue to look for ways to commit theft and fraud, law enforcement agencies are continuing their work to neutralize their efforts, and bring them to prosecution.”
“The takedown of this criminal organization is an example of how determined and persistent FBI investigators and our federal partners are, no matter where in the world the investigation leads,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “We will vigorously continue to investigate, prosecute and impose stiff penalties on any criminal who believes they can hide in cyber space and prey on the American people with impunity.”
“Sven Franssen’s sentencing should be a warning to all operating illegally in the cyber world. Consumers have an expectation of trust when purchasing good and services through the internet,” said James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “IRS Criminal Investigation will continue to work with our law enforcement partners to investigate and prosecute those laundering ill-gotten gains at the expense of consumer trust.”
According to U.S. Attorney Pak, the charges and other information presented in court: In March 2015, a 29-count indictment from the Northern District of Georgia was unsealed against Vietnamese nationals Viet Quoc Nguyen and Giang Hoang Vu, both of whom lived for a period of time in the Netherlands. The indictment was in connection with their alleged computer hacks of at least eight E-mail Service Providers (“ESPs”) all over the United States, including two ESPs based in the Northern District of Georgia.
Email Service Providers are companies that generally offer legitimate email marketing or bulk email services to their clients. Clients hire ESPs to assist with sending bulk emails to customers or potential customers who have opted to receive such emails. “Spam,” by contrast, is a commonly-used term for unsolicited email. ESPs generally take affirmative steps to ensure that their email campaigns are not blocked or classified as “spam” by the recipients’ email programs.
Nguyen and Vu allegedly stole confidential information from the ESPs, including proprietary marketing data containing over one billion email addresses. Nguyen and Vu then allegedly used their unauthorized access to launch spam attacks on tens of millions of email recipients, which helped drive internet traffic to affiliate marketing websites associated with Marketbay.com, which included Nguyen’s own website.
Affiliate marketing is a type of business in which persons or companies, known as “affiliates,” enter into formal or informal marketing agreements with companies to generate sales of the companies’ products. In the internet context, affiliates earn commissions on sales to customers who purchase the companies’ products from websites associated with the affiliate.
Giang Hoang Vu was arrested by Dutch law enforcement in Deventer, Netherlands, in 2012 and extradited to the United States in March 2014. On February 5, 2015, Vu pled guilty to conspiracy to commit computer fraud, and on July 27, 2015, he was sentenced to two years in prison. Nguyen is not in custody and remains a fugitive.
David-Manuel Santos Da Silva, a Canadian national and a co-owner of the affiliate marketing website Marketbay.com, was also previously charged and convicted in connection with his role in the offense. As the owner and operator of Marketbay.com, Da Silva entered into an affiliate marketing arrangement with Nguyen, which allowed Nguyen to receive commissions on sales generated from internet traffic that he directed to websites promoting specific products. Da Silva knew that Nguyen was spamming to stolen email addresses in order to direct high volumes of internet traffic to his affiliate marketing websites with Marketbay.com. Da Silva conspired with Nguyen and others to promote Nguyen’s hacking and spamming activities by providing him with a platform, through Marketbay.com, to generate sales commissions from his computer hacks.
On March 4, 2015, Da Silva was indicted by a federal grand jury in the Northern District of Georgia for conspiracy to commit money laundering with Nguyen and others. Da Silva was arrested while traveling in Ft. Lauderdale, Florida in 2015. He pleaded guilty on November 2, 2015, and on June 14, 2017, he was sentenced to four years, three months in prison.
On December 11, 2017, Sven Franssen was sentenced in connection with his role in the offense. Franssen owned and operated Certo Business Solutions B.V. (“Certo”), also known as Multibill, which processed payments for products purchased through affiliate marketing websites associated with Marketbay.com. Franssen knew that affiliates working through Marketbay.com were promoting and selling products through false and fraudulent means. Franssen knew that certain software products sold by affiliates could be publicly downloaded elsewhere for free, and that certain products being promoted for sale were not actually available to sell, or were being sold in violation of a copyright or trademark. For example, Nguyen promoted a product for sale on his website called “Adobe Reader 10” that prominently featured the Adobe logo. In fact, the product that was for sale on Nguyen’s affiliate marketing website with Marketbay.com was not an Adobe-branded product, and was not authorized for sale by Adobe.
The products promoted by Marketbay.com affiliates through false and fraudulent means were sold to customers in the Northern District of Georgia and to customers around the world. Franssen received warnings that his company was processing payments from the sale of fraudulent products. Despite these warnings, and on occasion directly in response to them, Franssen advised and encouraged Da Silva and his business partner to conceal and disguise the false and fraudulent nature of the product sales generated by affiliates working through Marketbay.com.
During the period of the conspiracy, Franssen’s company processed over $1.5 million in revenue generated from the sale of products that were falsely and fraudulently promoted through Marketbay.com.
Sven Franssen, 53, was sentenced by U.S. District Court Judge Timothy C. Batten Sr. to two years, six months in prison, following his guilty plea to conspiracy to commit money laundering. He was also ordered to forfeit real property in Cape Coral, Florida, and a 24-foot watercraft vessel.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys Steven D. Grimberg and Kelly K. Connors prosecuted 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.
Frenchtown Man Sentenced to Nine Years in Prison for Drug OffenseRead the Press Release
BILLINGS – John Thomas Giblin, III, a 45-year-old resident of Frenchtown, was sentenced today to 108 months in prison followed by 3 years supervised release after pleading guilty to conspiracy to possess with intent to distribute controlled substances. U.S. District Judge Susan Watters handed down the sentence.
During three different occasions, Giblin sold a total of 215 Oxycodone pills, 40 Morphine pills, 35 Methadone pills, 29 Demerol pills, and 10 Valium pills valued at more than $9,000 dollars to an undercover agent from the Drug Enforcement Administration. On May 27, 2015, Giblin then made arrangements with the undercover agent to buy 1 kilogram of cocaine and ½ pound of methamphetamine in exchange for money, marijuana, and more prescription pills. Giblin agreed to meet the undercover agent in the parking lot of the Cracker Barrel restaurant in Missoula. Law enforcement surveilled the drug purchase and after the package containing the cocaine and methamphetamine was delivered to Giblin, he was arrested. Giblin had brought approximately $12,000 in cash to the drug deal. He was interviewed after the arrest and admitted that he was planning to re-sell the methamphetamine in order to make money.
The case was prosecuted by Assistant U.S. Attorney Bryan R. Whittaker and investigated by the Drug Enforcement Administration.
Former Tampa Police Sergeant Sentenced to Prison for Receipt of Stolen Government PropertyRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced LaJoyce Caldwell Houston (51, Riverview) to two years and nine months in federal prison for receiving stolen tax refunds. The Court also ordered her to pay $61,660.52 in restitution to the Internal Revenue Service. Houston pleaded guilty on August 23, 2017.
According to court documents, in 2011 and 2012, while working at the Tampa Police Department, Houston received goods, services, money orders, and cash that were obtained with debit cards tied to accounts that had been loaded with fraudulently obtained tax refunds. The fraudulent refunds deposited in these accounts were the result of fraudulent federal income tax returns that had been filed by co-conspirator Rita Girven. Items received as a result of the fraud included a pool pump system for Houston’s home, computers, appliances, purses, jewelry, money orders, and cash, among other things. The Court also found that fraudulent tax returns were filed from Houston’s home and that online purchases were made from her residence with debit cards that had been loaded with fraudulent tax refunds.
In addition, in January 2012, Houston used her position at the Tampa Police Department to obtain the personally identifiable information (PII) of five individuals that Houston then provided to Girven to file fraudulent tax returns and/or obtain and access reloadable debit cards.
The Court ruled that the fraudulently obtained tax refunds deposited into the accounts from which LaJoyce Houston benefited totaled $284,490.41 and that Houston received more than $150,000 in goods, services, and cash from these accounts.
LaJoyce Houston’s co-defendant and husband, Eric Houston, pleaded guilty on March 31, 2017, to receiving stolen government property. He was sentenced on October 25, 2017, to six months in federal prison. In a related case (8:15-cr-58-T-17EAJ), Rita Girven pleaded guilty on March 16, 2015, to conspiracy to commit wire fraud and aggravated identity theft. She was sentenced on November 20, 2015, to 12 years in federal prison.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Former Ramapo Town Supervisor Christopher St. Lawrence Sentenced to 30 Months in Prison in Municipal Bond Securities Fraud CaseRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that CHRISTOPHER ST. LAWRENCE, the former Ramapo Town Supervisor, was sentenced to 30 months in prison today in connection with his scheme to defraud investors in municipal bonds issued by the Town of Ramapo (the “Town”) and the Ramapo Local Development Corporation (the “RLDC”). ST. LAWRENCE was found guilty of 20 counts of fraud and conspiracy following a four-week trial last May before United States District Judge Cathy Seibel in federal court in White Plains. It was the first conviction for securities fraud in connection with municipal bonds.
Acting U.S. Attorney Joon H. Kim said: “For years, Christopher St. Lawrence, as Ramapo Town Supervisor, misled municipal bond investors about the state of Ramapo’s finances. At a trial earlier this year, the jury quickly saw through his years lies, and today, he was sentenced to time in federal prison. The integrity of the $3.7 trillion municipal bond market must be protected, and prosecutions like this one should put on all on notice that misleading investors in that market through fraud and deception will lead to prosecution and jail.”
According to the allegations contained in the Indictment and the evidence presented in court during the trial:
As of August 2015, the Town had more than $128 million in outstanding bonds that had been issued for various municipal purposes, while the RLDC, a corporation created and owned by the Town under state law, had issued $25 million in bonds to pay for the construction of Provident Bank Park, a minor league baseball stadium in Ramapo.
While the fraud predated the construction of the stadium, the Town’s financial problems were caused largely by the $58 million total cost of the stadium. The Town paid more than half of that cost, despite the rejection of the Town’s guarantee of bonds to pay for construction of the stadium in a Town-wide referendum in 2010 and ST. LAWRENCE’s public statements that no public money would be used to pay for the stadium.
The Indictment charged that ST. LAWRENCE lied to investors in the Town’s and RLDC’s bonds in order to conceal the deteriorating state of the Town’s finances and the inability of the RLDC to make scheduled payments of principal and interest to holders of its bonds from its own money. ST. LAWRENCE lied to investors primarily by making up false assets in the Town’s General Fund.
The General Fund is the Town’s primary operating fund. The accumulated difference over time between how much money the Town receives in taxes and fees and how much it spends in a year is the fund’s balance. The fund balance is a cushion that can be spent during difficult financial times. The size of the fund balance relative to the amount of the fund’s revenue and trends in the Town’s General Fund balance over time are the primary indicators of the Town’s financial health.
According to the Indictment and the evidence, ST. LAWRENCE lied to the RLDC’s bond rating service in January 2013 when he told them in a telephone call that the 2012 fund balance would remain unchanged from the 2011 balance. Immediately after that call ended, ST. LAWRENCE told Town employees “to do [an upcoming] refinancing of the short term debt as fast as possible because . . . we’re going to have to all be magicians to get to some of those numbers.”
When the RLDC issued $25 million in bonds to build the stadium building itself in 2011, ST. LAWRENCE inflated the size of the Town’s General Fund by including a false $3.6 million receivable in the General Fund. The Town’s financial condition was important to investors in the RLDC’s bonds because the Town guaranteed the payments of principal and interest on the bonds. Without that fake asset, the General Fund’s balance would have been negative in that year.
In addition, ST. LAWRENCE inflated the General Fund with another fake receivable for $3.08 million from 2010 through 2015. It first went on the Town’s books when the RLDC agreed to buy property known as The Hamlets from the Town for $3.08 million. That sale never closed because the land turned out to be a habitat for rattlesnakes. Rather than take the receivable off the Town’s books – and reduce the size of the General Fund balance by $3.08 million, thereby pushing it into negative territory – ST. LAWRENCE claimed the receivable had to do with the RLDC’s purchase of another property from the Town that had already taken place. To keep it on the books, ST. LAWRENCE then caused the Town Attorney to tell the Town’s auditors over a period of years that the receivable would be paid back within a year, which was required if the receivable were going to stay in the General Fund. Without this fake receivable alone, the Town’s General Fund balance would have been negative for years.
In May 2013, the FBI searched Town Hall in connection with this investigation. Less than 10 days later, ST. LAWRENCE inflated another receivable in the General Fund – this one for money from FEMA to reimburse the Town for expenses from Hurricanes Irene and Sandy. ST. LAWRENCE claimed that the Town was going to receive $3.145 million from FEMA when the Town hadn’t even submitted those claims to FEMA yet. Without ST. LAWRENCE’s inflation of this receivable alone, the projected General Fund balance for 2012 would have been negative when the Town sold bonds in May 2013.
Finally, the Indictment alleged and the evidence showed that ST. LAWRENCE told investors in the Town’s and RLDC’s bonds that the RLDC was making the payments on its bonds from its operating revenue, meaning money it was making from its ordinary business of running the baseball stadium and selling condominiums at a development it had built. That was important to investors because it led them to believe that the Town would not have to pay off the RLDC’s $25 million bonds. It also made the RLDC’s bonds look less risky. The RLDC actually made those payments from money it borrowed from the bank or money it got from the Town.
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In addition to the prison term, ST. LAWRENCE, 67, of Wesley Hills, New York, was sentenced to three years of supervised release and a $2,000 special assessment. Restitution, if any, will be determined at a future date.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation and the Rockland County District Attorney’s Office. Mr. Kim also thanked the Securities & Exchange Commission for its substantial assistance in the investigation and trial.
The criminal case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys James McMahon, Stephen Ritchin, and Daniel Loss are in charge of the prosecution.
Former Pulaski County Illinois Resident Sentenced for Receipt of Child Pornography and Mail FraudRead the Press Release
Clint Wade Green, 43, of Paducah, Kentucky, was sentenced on Tuesday, December 12, 2017, on four counts of receipt of child pornography in one indictment and one count of mail fraud in a separate information involving theft of Pulaski County Development Association (PCDA) funds, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Green was sentenced to 108 months in prison and five years of supervised release on each of the receipt of child pornography counts and 24 months in prison and three years supervised release on the mail fraud count. All sentences will run concurrently. Additionally, Green was ordered to pay $51,881.60 in restitution to the PCDA in the mail fraud case.
The prosecution was the result of an investigation by the Federal Bureau of Investigation-Marion. The Department of Agriculture-Office of Inspector General, the Illinois State Police, and the Paducah Kentucky Police Department also participated in this investigation. The case was prosecuted by Assistant United States Attorney James G. Piper, Jr.
Former Office Manager to Serve 3 1/2 Years in Prison for Defrauding Bloomington Employer of More Than $1 MillionRead the Press Release
PEORIA, Ill. – U.S. District Judge Michael M. Mihm has sentenced a woman who defrauded her former employer, a Bloomington, Ill., landscaping business, of more than $1,000,000. Yesterday afternoon, Dec. 12, Judge Mihm ordered that Tina Cozart, 55, formerly of Carlock, Ill., serve 42 months in federal prison. In addition, Cozart, currently of Fremont, Calif., was ordered to pay restitution in the amount of $1,145,428 to her former employer, $346,299 to the IRS, and $25,000 to an insurance company. Cozart was ordered to report to the federal Bureau of Prisons on Feb. 20, 2018.
On June 16, 2017, Cozart pleaded guilty to one count each of wire fraud and filing a false income tax return. Cozart admitted that she used her position as office manager for F & W Lawn Care and Landscaping, Inc., to access and use the business’s credit cards and bank accounts to make unauthorized purchases for herself, her family, and others. According to statements presented at the sentencing hearing, in at least 13 months, Cozart charged more to the business’s credit cards than she earned for the year. Some of the money was spent on trips to Cancun, Las Vegas, Florida, and Phoenix, or to buy tickets to sporting events.
Cozart also used a dormant business bank account to deposit customer payments. Cozart then used the funds to pay the unauthorized personal purchases she had made using the business’s credit card. In addition, Cozart admitted she filed a false federal income tax return for tax year 2013 in that she did not report that she had obtained $333,378 in additional funds as a result of her fraud scheme.
The case was prosecuted by Supervisory Assistant U.S. Attorney Darilynn J. Knauss. The charges were investigated by the FBI and IRS, Criminal Investigation.
Former Fort Wainwright Soldier Convicted of Distributing Child PornographyRead the Press Release
Fairbanks, Alaska – U.S. Attorney Bryan Schroder announced that, yesterday, a federal jury in Fairbanks convicted a former Fort Wainwright soldier of distribution and transportation of child pornography.
Kaleb Basey, 27, was found guilty after a two-day trial before U.S. District Judge Ralph R. Beistline. Sentencing is scheduled for Feb. 23, 2018, in Fairbanks. The maximum penalty for each of the two counts upon which Basey was convicted is not less than five years and up to 20 years in prison, a fine of $250,000, and a term of supervised release of five years to life.
According to evidence presented at trial, in January 2014, Basey posted an advertisement within the “Casual Encounters” section of the Fairbanks Craigslist website that read: “any dads or moms want to share a daughter with me for the night?” Alaska State Troopers received a report about the ad and began an investigation, concerned that an actual minor might be in danger. Troopers identified Basey as the person who posted the ad in less than 24 hours. He was also identified as being an active duty solider on Fort Wainwright.
Troopers contacted Army Criminal Investigation Division (CID) agents and executed a search of the defendant’s barracks room. Law enforcement agents eventually contacted the FBI for assistance. FBI agents were able to identify additional sexually-explicit Craigslist postings by Basey in which he sought access to minor children, as well as email communications in which individuals had responded to these sexually-explicit posts. In one set of emails, the defendant included a picture of child pornography, and told the person with whom he was emailing that he enjoyed watching movies that showed “young girls 5-15yo” engaged in sexual acts with adults. To this email string, the defendant also attached a fully-nude selfie. In a second email, the defendant sent a picture of child pornography to himself.
This case was investigated by the Federal Bureau of Investigation, Alaska State Troopers, and Army Criminal Investigation Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices nationwide and the 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 more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Federal Official and Accountant Indicted in Bribery and Fraud ConspiracyRead the Press Release
LAS VEGAS, Nev. – A former official for the U.S. Bureau of Reclamation and an accountant for a private accounting firm were indicted today for their roles in a bribery scheme involving a government contract, announced Acting U.S. Attorney Steve W. Myhre for the District of Nevada.
Fredrick J. Leavitt, 46, and Dustin M. Lewis, 43, both of Henderson, Nevada, were each indicted with one count of honest services fraud conspiracy. In addition, Leavitt was charged with one count of solicitation and receipt of a bribe by a public official and Lewis was charged with solicitation and bribery of a public official. Leavitt was employed by the U.S. Bureau of Reclamation as Director of the Financial Management Office for the Lower Colorado Region, which includes the Hoover Dam. Lewis was employed by LL Bradford & Company (LL Bradford), an accounting and tax firm. Leavitt and Lewis are scheduled to have their initial appearance before U.S. Magistrate Judge Nancy J. Koppe on Dec. 21, 2017.
According to the allegations contained in the indictment, from February 2015 to February 2016, Lewis bribed and provided kickbacks to Leavitt in exchange for Leavitt, in his official position, steering a Southern California Public Power Authority (SCPPA) audit contract to LL Bradford. It is alleged that Leavitt and Lewis colluded over the preparation of LL Bradford’s bid submission, and Leavitt provided Lewis with inside information about the selection process. Leavitt used his position on the audit selection committee to score LL Bradford’s bid proposal as a “1,” the top rating. The indictment further alleges that after LL Bradford was selected as the winning bidder for the contract, Lewis transferred more than $200,000 to Leavitt. In January 2016, Leavitt went to work as a tax partner with LL Bradford. Finally, the indictment alleges criminal forfeiture against Leavitt in the amount of $201,250, including a 2016 Mercedes Benz CLS 63 AMG S-Model sports car, and criminal forfeiture in the amount of $704,002 as to Lewis.
The case is a joint investigation by the Federal Bureau of Investigation, IRS-Criminal Investigation, and the U.S. Department of Interior-Office of Inspector General. Acting U.S. Attorney Steven W. Myhre and Assistant U.S. Attorney Patrick Burns are prosecuting the case.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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Former Chicago Police Officer Sentenced to Five Years in Prison for Passing Law Enforcement Information to Target of Federal Drug ProbeRead the Press Release
CHICAGO — A federal judge today sentenced a former Chicago Police officer to five years in prison for notifying a high school friend that he was the target of a federal drug investigation.
In June 2014, RONALD COLEMAN was a Chicago Police officer assigned to work with the U.S. Drug Enforcement Administration on an undercover investigation dubbed “Operation Five Leaf Clover,” which targeted drug trafficking by a street gang on Chicago’s West Side. As a trusted member of the investigative team, Coleman participated in all of facets of the probe, including court-authorized wiretaps of suspects’ phones, physical and electronic surveillance, and seizures of drugs and guns. Coleman knew that a high school friend was involved in the sale of heroin supplied to the gang by RODNEY BEDENFIELD. Coleman obstructed justice when he notified his friend's cousin that authorities were planning to search the friend’s home and a dozen other locations as part of the investigation. After receiving word of Coleman’s tip, the friend passed it along to Bedenfield, who quickly moved contraband to an alternative location to avoid law enforcement.
A jury in August convicted Coleman, 47, of Chicago, on one count of obstruction of justice. U.S. District Judge Charles Norgle imposed the sentence in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The Chicago Police Department provided valuable assistance.
Evidence at Coleman’s trial revealed that law enforcement agents surveilling Bedenfield observed him, after receiving word of Coleman’s tip, transporting several large bags from a residence in the North Lawndale neighborhood to an alternative location around the corner. On June 12, 2014, agents and officers executed a search warrant on the alternative location and discovered five handguns, a rifle, multiple handgun magazines, ammunition, approximately 400 grams of heroin, two containers of lactose, three digital scales, plastic baggies and a bill counter.
“Bedenfield chose to move his contraband in an attempt to hide it from law enforcement,” Assistant U.S. Attorney Shoba Pillay argued in the government’s sentencing memorandum. “But he could also have chosen to protect his heroin trafficking operation, and used that significant amount of firepower on the police when they arrived to execute the arrest and search warrants. Defendant’s actions could have gotten his fellow police officers killed.”
Bedenfield was indicted separately on multiple drug trafficking and firearms charges. He pleaded guilty to the narcotics-related counts and was convicted of the firearms-related counts at a bench trial in federal court in Chicago. Bedenfield was sentenced to 18 years in prison.
Florida Felon Sentenced to More Than Seven Years in Prison for Possessing FirearmsRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Joseph James Belmont (28, Tampa) to seven years and eight months in federal prison for possessing firearms as a convicted felon. The Court also ordered him to forfeit the guns and ammunition used in the offense.
Belmont pleaded guilty on August 22, 2017.
According to court documents, in November 2016, officers from the Tampa Police Department (TPD) stopped Belmont for a traffic violation that led to the discovery of a loaded handgun. Approximately three months later, TPD officers found Belmont passed out behind the wheel of a car, parked on the wrong side of the street, with the engine running. They knocked on the car door, and when Belmont opened it, officers saw another loaded handgun.
Belmont’s prior convictions include robbery with a weapon and delivery of a controlled substance. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, Acting U.S. Attorney W. Stephen Muldrow coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Fifteen Convicted or Charged in Amherst County Methamphetamine ConspiracyRead the Press Release
Lynchburg, VIRGINIA – An investigation into the distribution of methamphetamine in and around Amherst County, Virginia has resulted in more than a dozen arrests and convictions, United States Attorney Rick A. Mountcastle announced.
The investigation led to multiple kilo-level seizures of methamphetamine, as well as the seizure of numerous firearms, and tens of thousands of dollars in drug proceeds. To date, more than a dozen individuals have been arrested, charged and/or convicted in federal court on charges resulting from this investigation.
Those individuals charged/convicted in federal court are:
- George Christopher Mays, 43, of Wingina, Virginia.
- David Campos-Luebano, 26, of Chatham, Virginia.
- Graciano Ochoa-Bermudez, 40, a citizen of Mexico
- Isabel Gonzalez, 56, of Concord, North Carolina.
- Irineo Perez-Aguirre, 42, a citizen of Mexico.
- Jeffrey Dean-Dickinson, 51, of Fredericksburg, Virginia.
- Lance Dereck Hicks, 28, of Lynchburg, Virginia.
- Jonathan Wayne Angus, 29, of Gladstone, Virginia.
- Timothy Edgar Bryant, 36, of Gladstone, Virginia.
- Edgar Estrada Ruiz, 33, of Burke, Virginia.
- Cynthia D. Baird, 33, of Earlysville, Virginia.
- John Bernard Goolsby, 45, of Shipman, Virginia.
- Wayne Thomas Burnley, 43, of Wingina, Virginia.
- Stephanie Hurst, 32, of Lewisburg, North Carolina
- Kenneth Cordova, 32, of North Carolina
This investigation originated with the Amherst County Sheriff’s Office Narcotics Unit. Due to the quantity of drugs, operational costs, and the expansiveness of drug activity across multiple jurisdictions, the Drug Enforcement Administration was contacted for assistance. Investigative efforts uncovered a vast trafficking network and lead to the designation of an Organized Crime Drug Enforcement Task Force (OCEDTF) case.
The investigation, which remains ongoing, is being conducted by the Amherst County Sheriff’s Office and the Drug Enforcement Administration with substantial assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Virginia State Police, the Lynchburg Police Department, the Waynesboro Police Department, the Pittsylvania County Sheriff’s Office, the Appomattox County Sherriff’s Office, the Nelson County Sheriff’s Office, the Buckingham County Sheriff’s Office, the Bedford County Sheriff’s Office, the Stafford County Sheriff’s Office, the Rockbridge County Sheriff’s Office, the Jefferson Area Drug Task Force, the Campbell County Sheriff’s Office, the Guilford County Sheriff’s Office, the South Carolina Law Enforcement Division [SLED] and the South Boston Police Department.
Assistant United States Attorney Andrew Bassford is prosecuting the cases for the United States. A Grand Jury Indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Felon Charged with Possessing Handgun, Ammunition and Multiple Illegal DrugsRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating the federal firearms and drug laws, Acting United States Attorney Soo C. Song announced today.
The three-count superseding indictment, returned on December 12, named James Taric Byrd, 41, of Pittsburgh, Pennsylvania.
According to the superseding indictment, on or about February 23, 2015, Byrd, an individual with multiple prior felony convictions did knowingly and unlawfully possess a .40 caliber Sig Sauer handgun and ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition. Byrd also was charged with possessing with the intent to distribute cocaine, cocaine base, heroin and marijuana, and carrying and possessing a firearm in furtherance of that drug trafficking crime.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of not more than $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the superseding indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Virginia Man for Cyberstalking and Communicating Interstate ThreatsRead the Press Release
RALEIGH – Robert J. Higdon, Jr. United States Attorney for the Eastern District of North Carolina, announces that on December 13, 2017 in Federal court, WILLIAM SCOTT DAVIS, JR., a 57-year-old resident of Hampton, Virginia, was convicted following a three-day trial before Senior United States District Judge W. Earl Britt. The jury found DAVIS guilty of cyberstalking and communicating interstate threats.
The evidence at trial showed that DAVIS’ parental rights to his daughter were conclusively terminated in 2009, following protacted litigation with authorities in Wake County, where DAVIS was residing at the time. During the same time period, DAVIS was charged with multiple fraud offenses in Wake County relating to the forgery of his daughter’s birth certificate and convicted by a jury of his peers. Following the termination of his parental rights and his state fraud conviction in 2009, DAVIS initiated a relentless campaign of harassment and intimidation directed towards a female detective with Cary Police Department, a female prosecutor with the Wake County District Attorney’s Office, and a female attorney in Raleigh for their roles in different aspects of the process. The evidence at trial established that in the summer of 2014, DAVIS sharply escalated his campaign to include email communications sent from Virginia to all three women in North Carolina which contained detailed threats of violence and rape. In addition, DAVIS stalked the Raleigh attorney by threatening her life and the lives of her family, as well as impersonating an FBI agent.
Mr. Higdon said: “The proper functioning of our social services and judicial systems requires that all its participants - prosecutors, law enforcement officers, and attorneys - be free from threats and harm. Our systems cannot function where those participants face threats, intimidation or the real risk of harm. This case is an example of the steps the United States Department of Justice and the United States Attorney’s Office will take when these public servants face these risks. Make no mistake, we will stand firmly behind our fellow prosecutors and our law enforcement and social services partners!”
The case was investigated by the Raleigh Police Department and the Federal Burean of Investigation. Assistant United States Attorneys Ethan A. Ontjes and Adam F. Hulbig represented the government in this case.
Federal Jury Convicts Birmingham Man for Sexually Exploiting Five-Year-Old BoyRead the Press Release
BIRMINGHAM – A federal jury on Monday convicted a Birmingham man of sexually exploiting a five-year-old boy by forcing the child to perform sexual acts on him in 2016 and videotaping the conduct, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp Jr.
LARRY DEAN GARRETT Jr., 37, faces 25 to 50 years in prison because of a previous conviction of a sexual offense against a child in Michigan in 2000. In that case, Garrett confessed to criminal sexual conduct involving a boy younger than 13, according to evidence at trial.
The north Alabama jury convicted Garrett on one count of sexual exploitation of a child following four days of testimony before U.S. District Judge Madeline H. Haikala. Garrett chose to represent himself at trial. A sentencing date has not been set.
“Sexual exploitation of a child by a previously convicted sex offender is one of the most serious and emotionally difficult offenses we prosecute within the federal system,” said Assistant U.S. Attorney Erica Williamson Barnes, who prosecuted the case. “I commend the family and friends of the victim for their willingness to come forward and assist law enforcement, the FBI for its tireless devotion to vindicating a particularly vulnerable victim, and the jurors who rendered a just verdict,” she said.
“The FBI and the U.S. Attorney’s trial team did an excellent job of bringing the perverse, abhorrent acts of Garrett before the jury that rightfully convicted him,” Town said. “We are very much looking forward to the sentencing hearing.”
“These types of cases are always particularly disturbing,” Sharp said. “The FBI and our partners, however, will not rest in bringing predators like Garrett to justice and holding them accountable for their heinous actions.”
Garrett, who performs magic tricks and uses the name, “Magic,” lived in the same Birmingham apartment complex as his five-year-old victim and the child’s mother in 2016 and was known to have spent time with the child, according to evidence.
A friend of the child’s family who also lived in the same apartment complex testified that he knew Garrett downloaded movies and requested one from him. When the man, identified in court records as, “A.J,” opened the files on the computer memory card that Garrett gave him, he discovered the sexually explicit video involving the child, he testified. He showed the video to members of the child’s family, and they provided the video to police, the man testified.
The FBI investigated the case, which Barnes prosecuted.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Spartanburg Man Indicted on Federal Gun Charge. Jhaquan M. Brown, age 28, of Spartanburg, South Carolina, was charged in a one-count indictment with possession of a firearm and ammunition by a prohibited person, violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Brown could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Bureau of Alcohol, Tobacco, Explosives, and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Spartanburg Man Indicted on Federal Gun Charge. Rosean Cerome Kelly, age 26, of Spartanburg, South Carolina, was charged in a two-count superseding indictment with possession of a firearm and ammunition by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1). The maximum penalty Kelly could face is a fine of $250,000.00 and/or imprisonment of 10 years. This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and is being prosecuted by Special Assistant United States Attorney Jennifer Wells of the Greenville office.
Easley Resident Indicted on Possession and Distribution of Child Pornography. William F. Haynes, age 60, of Easley, South Carolina was charged in a 2-count indictment. William F. Haynes was charged with Possession of Child Pornography, a violation of Title 18, United States Code, Sections 2252A(a)(5)(B) and 2252A(b)(2), and Distribution of Child Pornography, a violation of Title 18, United States Code, Section 2252(a)(2). The maximum penalty Haynes could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Federal Bureau of Investigation and is assigned to Assistant United States Attorney William J. Watkins, Jr. of the Greenville office for prosecution.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Elkview man sentenced to 10 years in federal prison for methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – An Elkview man who transported methamphetamine from Georgia to West Virginia was sentenced to 10 years in federal prison today, announced United States Attorney Carol Casto. Randy George Vance, 59, previously pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine.
On January 13, 2016, officers with the Metropolitan Drug Enforcement Network Team conducted a traffic stop of Vance as he was returning to West Virginia from Atlanta. During a search of Vance’s vehicle, officers recovered approximately 156 grams of methamphetamine. The methamphetamine was lab-tested and confirmed to be over 80% pure. Vance admitted that he got the drugs in Atlanta and that he intended to distribute the methamphetamine.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Gabriele Wohl is responsible for the prosecution. Chief United States District Judge Thomas E. Johnston imposed the sentence.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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El Dorado Man Sentenced to 15 Years in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Pradis Lee Benton, aka Benton, age 42, of El Dorado, was sentenced today to 180 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, on April 14, 2016, investigators with the United States Marshal Service (“USMS”) and 13th Drug Task Force (“DTF”) received information that a fugitive was inside of a mobile home on Nick Springs Road in El Dorado, Arkansas, which is located in the Western District of Arkansas.
Investigators went to that residence and knocked on the front door. A female opened the door and stated that the fugitive the investigators were seeking was not at the residence. She told investigators that they were free to go inside the home and look around. Investigators took her up on that offer and once inside the residence, encountered Benton in the restroom. The officers asked Benton to go into the living room while they completed a search of the residence.
While attempting to ascertain and confirm Benton’s identity, an officer with the DTF noticed a large bulge at Benton’s ankle that he thought, in his training and experience, resembled an ankle holster containing a firearm. The officer asked Benton what was at his ankle and Benton immediately reached for the item. The officer stepped towards Benton and stopped Benton from grabbing the item. Benton pushed the officer away and went for the item at his ankle again. During the struggle, the officer’s foot caused the item to fall from Benton’s pants. The item turned out to be three bags of suspected methamphetamine.
Benton then began to struggle with officers over the bags. Benton ripped open one of the bags and threw the suspected methamphetamine in the officers’ faces. After the struggle, Benton was taken into custody for the possession of the methamphetamine.
Benton was named in a federal indictment in August of 2016 and pled guilty to the charge in October of 2016.
The United States Marshal Service and the 13th Judicial Drug Task Force investigated the case. Assistant United States Attorney Ben Wulff prosecuted the case for the United States.
Dallas Man Sentenced to 114 Months in Federal Prison for Bank RobberiesRead the Press Release
DALLAS — A Dallas man, Stephen Christopher Plunkett, 42, was sentenced this week by U.S. District Judge Sam A. Lindsay to 114 months in federal prison and ordered to pay $10,220 in restitution for committing three bank robberies, in the Dallas-Fort Worth metroplex in March 2014, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Plunkett pleaded guilty in January 2016 to two counts of bank robbery. He has been in custody since his arrest in June 2015.
According to documents filed in the case and information presented at his sentencing hearing, Plunkett admitted to robbing the following three banks:
March 24, 2014 Chase Bank, 10729 Preston Road, Dallas
March 25, 2014 Wells Fargo, 14999 Preston Road, Dallas
March 28, 2014 Wells Fargo, 2611 Cedar Springs Road, Dallas
Judge Lindsay ordered Plunkett to serve the 114-month sentence in this case consecutively to a 10 year sentence Plunkett received for the April 9, 2014 robbery of a Chase Bank branch located in Forsyth County, Georgia.
The Federal Bureau of Investigation investigated. Deputy Criminal Chief Assistant U.S. Attorney Lisa Dunn prosecuted.
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Citizen of Mexico Pleads Guilty to Trafficking Heroin and Fentanyl, Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that JESUS GOMEZ-VALDIVIA, 38, a citizen of Mexico, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to drug trafficking and immigration offenses.
According to court documents and statements made in court, on October 12, 2017, the Drug Enforcement Administration received information that GOMEZ was couriering narcotics on a flight that had departed Los Angeles International Airport and would be arriving at Tweed New Haven Airport later that day. DEA Agents traveled to Tweed New Haven Airport and, after the flight landed, identified two pieces of luggage that GOMEZ had checked. Agents then met GOMEZ in the baggage claim area after he retrieved his luggage. GOMEZ was arrested after investigators discovered that nearly two kilograms of heroin and approximately 500 grams of fentanyl had been sewed into one of the suitcases.
The investigation also revealed that GOMEZ was deported from the U.S. to Mexico in November 2001, and subsequently reentered the U.S. illegally.
GOMEZ pleaded guilty to one count of possession with intent to distribute controlled substances, which carries a maximum term of imprisonment of 20 years, and one count of reentry of a removed alien, which carries a maximum term of imprisonment of two years. Judge Meyer scheduled sentencing for March 7, 2018.
GOMEZ has been detained since his arrest.
This matter is being investigated by the Drug Enforcement Administration with the assistance of the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Charlotte Man Found Guilty of Credit Card Fraud and Weapons PossessionRead the Press Release
Columbia, South Carolina - United States Attorney Beth Drake stated today that Lonnie Eugene Hames, age 28, of Charlotte, North Carolina, was found guilty after jury trial of conspiracy to commit credit card fraud in violation of Title 18, United States Code, Section 1029(b)(2) and of being a felon in possession of a firearm in violation of Title 18, United States Code Section 922(g)(1). According to testimony presented during the trial, Hames and his co-defendant were responsible for the theft of a federal officer’s service weapon and credit cards from a vehicle in Rock Hill, South Carolina. Agents tracked the pair by following their use of the stolen credit cards to businesses in Charlotte, North Carolina. When apprehended, Hames and his co-defendant were found with the stolen firearm and other fraudulent credit cards.
Sentencing in the case has not yet been scheduled, but Hames faces a maximum penalty of ten years of imprisonment and a fine of $250,000. The case was investigated by Special Agents with the Department of Homeland Security, Federal Protective Service. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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California Man Sentenced to 46 Months in Prison for Laundering Proceeds from Heroin Trafficking OrganizationRead the Press Release
TRENTON, N.J. – An Anaheim, California, man was sentenced today to 46 months in prison for laundering money on behalf of an international drug trafficking organization, Acting U.S. Attorney William E. Fitzpatrick announced.
Harry Madrid, 26, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to Count Two of an indictment charging him with conspiracy to launder money. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From June 2014 through November 2014, Madrid conspired with other members of an international drug trafficking organization, which included cells operating in New Jersey, to launder more than $150,000 in United States currency related to the distribution of heroin.
Several of Madrid’s co-defendants have also pleaded guilty before Judge Sheridan and await sentencing. Madrid’s brother, Wilson Madrid, pleaded guilty to conspiracy to launder money. Henry Zamora pleaded guilty to conspiring to distribute four kilograms of heroin that were recovered from a hidden compartment in his vehicle. Dany Francisco-Valerio pleaded guilty to conspiring to distribute 15 kilograms of heroin that were recovered from a hidden compartment in his vehicle when it was stopped in Warren County, New Jersey.
In addition to the prison term, Judge Sheridan sentenced Madrid to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited the Drug Enforcement Administration (DEA)’s New Jersey Division, under the direction of Special Agent in Valerie Nickerson, officers of the N.J. State Police, under the direction of Acting Superintendent Col. Patrick J. Callahan, and officers from the DeKalb, Illinois, police department, under the direction of Chief Gene Lowrey, with the investigation.The government is represented by Assistant U.S. Attorney Thomas S. Kearney and Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
Defense counsel: John Holliday Esq., Hamilton, New Jersey
Brevard, N.C. Man Sentenced to 10 Years on Internet Enticement ChargesRead the Press Release
ASHEVILLE, N.C. – William Robert Garberding, 62, of Brevard, N.C. was sentenced late yesterday to 120 months in prison for enticing a minor using the Internet, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Martin Reidinger ordered Garberding to serve a lifetime of supervised release and to register as a sex offender.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief John Phillip Harris, Jr. of the Brevard Police Department.
According to filed court documents and the sentencing hearing, on November 17, 2015, an individual identified as “BA” reported to law enforcement that she had located some material of concern posted on Garberding’s social media account, who at the time was staying at BA’s residence. According to court records, over the course of the investigation, law enforcement discovered that Garberding was using social media to exchange messages and images of a sexual nature with a 13-year-old girl living in Kentucky. According to court records, Garberding knew the victim was underage, and he had falsely told the minor victim that he was 16-years-old.
Court records show that a forensic analysis of Garberding cellular phone revealed that he had downloaded 55 images of child pornography. In addition, over the course of the investigation, law enforcement discovered multiple messages between Garberding and the minor, in which Garberding solicited the minor to engage in sexually explicit conduct.
Garberding pleaded to one count of enticing a minor via the Internet and is currently in federal custody. In making today’s announcement, U.S. Attorney Murray thanked the Minneapolis Division of the FBI for their assistance with the investigation.
In a separate case, Judge Reidinger also sentenced yesterday James Eugene Patty, Jr., 49, of Maryville, Tennessee, to 108 months in prison on transportation of child pornography charges. Patty was also ordered to serve a lifetime of supervised release and to register as a sex offender.
According to filed court documents and court proceedings, in September 2016, law enforcement located an online advertisement soliciting a partner to engage in sexual conduct and advertising “the younger the better.” Posing as a 14-year-old female, a law enforcement officer responded to the ad, and proceeded to engage in multiple exchanges with Patty, which were sexual in nature. Court records show that, over the course of the online exchanges, Patty told the “minor” that he was interested in bondage, and sent the “minor” sexual images that depicted bondage.
According to court records, after exchanging multiple online and text messages, Patty was arrested by law enforcement on October 5, 2016, after he drove from Tennessee to Asheville to meet the minor female. At the time of his arrest, Patty was a sheriff deputy with the Blount County Sheriff’s Office in Tennessee. During the course of the investigation, law enforcement found child pornography images in Patty’s cellular phone, including the images he had transmitted to the “minor.”
Patty pleaded guilty to one count of transportation of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Murray thanked the North Carolina State Bureau of Investigation, the Boone Police Department and the Asheville Police Department for their investigation.
The U.S. Attorney’s Office in Asheville prosecuted both cases.