Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
11 December 2017
Imperial Beach Man Sentenced to Life in Fatal Stabbing of his Texas BoyfriendRead the Press Release
Assistant U. S. Attorney Robert Ciaffa (619) 546-7748
NEWS RELEASE SUMMARY – December 11, 2017
SAN DIEGO – David Enrique Meza of Imperial Beach was sentenced in federal court this morning to life in prison for fatally stabbing his boyfriend 24 times, slashing his throat to the point of near-decapitation and dumping his body in a ravine near Rosarito Beach, Mexico in order to inherit the boyfriend’s estate.
During today’s hearing, U.S. District Judge Jeffrey T. Miller called the murder an “inhumane, depraved act” and said the crime qualifies for a harsh sentence in part because of the unusually heinous, cruel nature of Meza’s actions. “The Merriam dictionary defines ‘heinous’ as hatefully or shockingly evil, abominable. This murder was shockingly evil – excessively so,” Judge Miller said.
On May 2, 2017, after two weeks of trial and seven days of deliberations, a jury found Meza guilty of murdering Texas retiree Jake Clyde Merendino in the early morning hours of May 2, 2015 in Mexico. Merendino’s body was found next to the highway between Rosarito and Ensenada in an area known as Los Arenales. Meza was convicted of both charges in the indictment, including one count of Foreign Domestic Violence Resulting in Death and one count of Conspiracy to Obstruct Justice.
Judge Miller, in describing the reasoning behind the sentence, said at the hearing, “If we try to visualize what happened, we visualize blow, after blow, after blow, after blow, after slash, after slash, after slash, after blow, and repeat another three times…One can’t even imagine the torture and torment Mr. Merendino experienced.”
According to evidence presented at trial, Meza, then 25, and Merendino, then in his early 50s, met online in June 2013 and were involved in a romantic relationship thereafter. At the same time, Meza was also involved in a long-term romantic relationship with Taylor Marie Langston, a Chula Vista High graduate who was pregnant with his child at the time of the murder. Prosecutors said Meza was living a double life.
Merendino’s death came two days after he closed escrow on a luxury oceanfront condominium at Palacio del Mar in Rosarito. Meza was the beneficiary. Within days of the murder, Meza produced a handwritten will written on hotel stationery that made him sole heir to Merendino’s estate.
Judge Miller, who presided over the trial, told the courtroom that Meza was certainly motivated by greed, but he was also attempting to gain control of his spiraling circumstances. “His double life was collapsing under its own weight. A solution was the savage murder of Mr. Merendino.”
U.S. Attorney Adam Braverman said, “Nothing can spare the victim or his family the agony of this unspeakable crime, but today justice was delivered to a murderer who will suffer his own sort of agony – a lifetime in prison.”
“This life sentence, plus an additional 20 years for obstruction, is a just punishment for a callous, calculated and brutal murder,” stated FBI Special Agent in Charge Eric S. Birnbaum. “Our message to all crime victims and today, a message in the name of Jake Clyde Merendino: Every day, the FBI carries an unwavering commitment to work tirelessly to deliver justice for the victims of crime. Alongside our colleagues at United States Attorney’s Office and our law enforcement partners in Mexico, the FBI is proud to have done that today.”
According to evidence presented at trial, Meza and Merendino drove to Mexico on April 30, 2015, so Merendino could close on his $273,000 ocean-view condominium at Palacio Del Mar in Rosarito.
The next day, on May 1, Meza and Merendino returned to Baja, this time with Merendino driving his Range Rover and Meza following on a motorcycle (a 2014 Christmas gift from the victim). The new condo was not yet ready for occupancy, so they checked in to a room at Bobby’s by the Sea, a hotel nearby.
At about 10:30 p.m., the hotel manager heard a motorcycle leaving the hotel parking lot, and Meza was captured on a border camera entering the U.S. at about 11 p.m. Meza returned to Mexico in the early morning hours of May 2, 2015, and his movements were tracked to the murder scene via GPS on his cell phone.
Merendino was last seen alive in the early morning hours of May 2, when he drove out of Bobby’s by the Sea parking lot, telling the hotel security guard that he needed to help a friend stranded on the road. His body was found at around 3 a.m. by Mexican police officers. At 3:57 a.m. Meza crossed into the United States on his motorcycle.
At 7 p.m. the same day as the murder, Meza and his fiance returned to the Bobby’s by the Sea hotel in the black SUV. Meza told hotel staff he was there to pick up his personal items from the room he had shared with Merendino.
After the slaying, Meza filed an application to probate a 2014 handwritten will in which Merendino left his entire estate to Meza.
U.S. Attorney Braverman thanked law enforcement counterparts from Procuraduría General de Justicia del Estado - the Attorney General’s office in the state of Baja California – as well as the Rosarito Municipal Police, for their assistance in the investigation and prosecution of these crimes.
Braverman noted that in certain circumstances, the United States has legal jurisdiction to prosecute crimes committed in other countries when U.S. citizens are victimized. “The United States will use every tool at its disposal to investigate and prosecute offenders who prey on U.S. citizens abroad.”
DEFENDANT Case Number: 15CR3175-JM
David Enrique Meza Age: 27
SUMMARY OF CHARGES
Count One
Interstate or Foreign Domestic Violence Resulting in Murder, in violation of Title 18 United States Code, Section 2261 (a) (1).
Maximum Penalty: Life in prison
Sentence: Life in prison
Count Two
Conspiracy to Obstruct Justice, in violation of Title 18, United States Code, Section 1512 (k).
Maximum Penalty: 20 years in prison
Sentence: 20 years in prison
AGENCY
Federal Bureau of Investigation
Huntington heroin dealer sentenced to federal prison for drug crimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who sold heroin in June 2016 was sentenced today to four years and three months in federal prison for a drug charge, announced United States Attorney Carol Casto. George Holloway, 45, previously pleaded guilty to distribution of heroin.
On June 7, 2016, a confidential informant working with the Huntington FBI Drug Task Force met Holloway at 833 26th Street in Huntington. The informant bought approximately 20 grams of heroin from Holloway. As part of the plea agreement, Holloway admitted to all the drug trafficking activity charged in the indictment, including that he distributed heroin in Huntington on four other occasions in 2015 and 2016.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Stephanie S. Taylor handled the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
- Follow us on Twitter: SDWVNews
Huntington felon sentenced to federal prison for gun crimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington felon who possessed a firearm in January 2017 was sentenced today to four years and three months in federal prison, announced United States Attorney Carol Casto. Jermaine D. Cathey, 36, previously pleaded guilty to being a felon in possession of a firearm.
On January 2, 2017, officers from the Huntington Police Department observed Cathey walking and screaming in the middle of Veteran’s Memorial Boulevard in Huntington. When officers approached Cathey, they saw that he had a pistol in his right hand. Cathey was prohibited from possessing any firearm under federal law because of multiple felony convictions, including a 2013 conviction in Cabell County Circuit Court for being a felon in possession of a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Huntington Police Department conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is responsible for the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
- Follow us on Twitter: SDWVNews
Huntington drug dealer pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man caught with heroin and a firearm in July 2017 pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Antonio Newson, 42, entered his guilty plea to possession with intent to distribute 100 grams or more of heroin.
On July 10, 2017, officers with the Huntington FBI Drug Task Force executed a search warrant at Newson’s residence, located at 1748 Jefferson Avenue in Huntington. During the search, officers located approximately 983 grams of heroin in a closet, along with a firearm. Newson admitted that the heroin and the firearm belonged to him, and, as part of the plea agreement, he also admitted to the other drug activity charged in the indictment.
Newson faces at least five and up to 40 years in federal prison when he is sentenced on March 12, 2018.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
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 prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. This case was also brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
- Follow us on Twitter: SDWVNews
Houston Man Taken into Custody on Charges of TerrorismRead the Press Release
Kaan Sercan Damlarkaya, an 18-year-old U.S. citizen from Houston, has been charged with unlawfully distributing explosive making information and attempting to provide material support to Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Abe Martinez and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
Authorities arrested Damlarkaya late Friday, Dec. 8, 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 the 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. A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law. 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.
High-Ranking “Ygz” Gang Member Sentenced to 45 Years in Prison for Murder of 21-Year-OldRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that KAREEM LANIER, a/k/a “Reem,” a/k/a “Black,” has been sentenced to a term of 40 years in prison, which must run consecutively to a prior prison sentence of five years, for his crimes as a high-ranking member of the “Young Gunnaz” or “YGz” gang, including murdering Dykeem Etheridge on January 24, 2011, and providing assistance to other YGz gang members in connection with three other murders. LANIER was sentenced on Friday afternoon in Manhattan federal court by United States District Judge Valerie E. Caproni, before whom he previously pleaded guilty.
According to the charging and other documents filed in the case, as well as statements made during LANIER’s guilty plea and sentencing proceedings and other court proceedings in the case:
LANIER was a high-ranking member of a set of the YGz gang known as the “Morris Avenue Gunnaz,” which was based in and around Maria Lopez Plaza on Morris Avenue in the South Bronx. From 2005 to 2017, members and associates of the YGz enriched themselves by committing robberies and by selling drugs, such as crack cocaine, and committed acts of violence, including murder and attempted murder, against various people, including rival gang members.
On January 24, 2011, a group of YGz members, including LANIER, assaulted Dykeem Etheridge, 21, as he exited a store on the corner of 154th Street and Courtlandt Avenue. LANIER shot and killed Etheridge as he tried to flee the attack. LANIER later told a fellow gang member that he killed Etheridge in order to enhance his status in the YGz.
On July 3, 2011, LANIER and other YGz members rode on bicycles to the territory of a rival gang on Park Avenue near 158th Street in the South Bronx. Their goal was to shoot and kill a rival gang member on sight, and LANIER went along to support and encourage the other YGz members. A member of the YGz shot at a rival gang member, who survived the shooting. While LANIER and others were fleeing from the scene of the shooting, LANIER’s associate shot Curtis Smith, 23, a bystander, in the head. Smith died several days later.
On October 17, 2011, LANIER provided a firearm to a fellow YGz member, who then used the firearm in a shootout with members of a rival gang that resulted in the death of Devon Jackson, 16, in the vicinity of East 146th Street between Third and Collect Avenues in the Bronx.
On December 22, 2011, after several YGz members murdered Taisheem Ferguson, 17, near Morris Avenue and 151st Street in the Bronx, LANIER helped two of the participants in the murder flee from the scene by hailing and paying for a taxi cab so that they would escape before the police could catch them.
* * *
LANIER, 26, of the Bronx, is the eighth defendant to be sentenced this year by Judge Caproni for participation in a YGz-related murder.
Acting U.S. Attorney Kim praised the outstanding work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the New York City Police Department in the investigation of this case. He also thanked the Bronx District Attorney’s Office for their support in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, Gina M. Castellano, and Andrew C. Adams are in charge of the prosecution.
Harrison County woman receives 15-year sentence for the distribution of fentanylRead the Press Release
CLARKSBURG, WEST VIRGINIA – Taylor Michelle Syslo, of Lost Creek, West Virginia, was sentenced today to 180 months incarceration for distributing fentanyl, United States Attorney Bill Powell announced.
Syslo, age 25, pled guilty to one count of “Distribution of Fentanyl” in July 2017. As a part of the binding plea agreement, Syslo admitted to distributing the fentanyl that resulted in the death of a Marion County man. The crime occurred in September 2016 in Marion County.
Syslo was also ordered to pay $1,728.44 to cover funeral expenses for the victim in this case.
Assistant U.S. Attorney Shawn M. Adkins and Assistant U.S Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated, with the assistance of the 3 Rivers Task Force and White Hall Police Department.
Senior U.S. District Judge Irene M. Keeley presided.
Harrison County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia, man has admitted to a firearms charge, United States Attorney Bill Powell announced.
David Leon Turner, age 30, pled guilty to one count of “Unlawful Possession of a Firearm.” Turner, having previously being convicted of three felonies, is also accused of possessing a 9mm caliber pistol. The crime is alleged to have occurred in Harrison County in May 2017.
Turner faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating.
U.S. Magistrate Judge Michael John Aloi presided.
Four indicted for illegally reentering the United StatesRead the Press Release
Four people were charged with illegally reentering the United States, said U.S. Attorney Justin E. Herdman.
Indicted are Santos Adelmo Escobar-Garcia, 44, of Honduras; Juan Carlos Galindo-Escobar, 48, of Guatemala; Bernabe Vazquez-Bamaca, 33, of Mexico, and Santos Guevara- Batres, 26, of El Salvador.
The cases were investigated by U.S. States Border Patrol and U.S. Immigration and Customs Enforcement.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Postal Employee Sentenced to over 6 Years in Federal Prison for Selling at Least 6,240 Credit Cards Stolen from the U.S. MailRead the Press Release
SANTA ANA, California – A Garden Grove man who worked for the United States Postal Service for more than two decades was sentenced today to 75 months in federal prison for stealing thousands of credit cards from the U.S. Mail and selling the credit cards on the black market.
Chinh Vuong, 49, was sentenced by United States District Judge Cormac J. Carney, who also ordered the defendant to pay $325,085 in restitution to Chase Bank USA and American Express.
Vuong pleaded guilty in August 2016 to conspiracy to commit bank fraud and aggravated identity theft.
Vuong told federal investigators that he made at least $6,000 per month selling stolen credit cards and “used the funds from the sale of stolen credit cards to pay for personal expenses, including designer handbags and boots, two BMW automobiles, alcohol and drugs,” according to court documents.
Prior to being confronted with evidence of the thefts, Vuong had worked at the United States Postal Service Santa Ana Processing and Distribution Center as a mail processing clerk for about 25 years. On October 6, 2015, federal authorities searched Vuong’s residence and seized approximately 199 stolen credit cards and luxury items, such as more than 20 handbags from designers that included Prada, Louis Vuitton and Gucci.
“On the day of the warrant, [Vuong] described to federal agents how he executed the bank fraud conspiracy and identity theft scheme,” according to a sentencing memorandum filed with the court. “While at work, [Vuong] would identify envelopes that contained American Express and Chase credit cards but had been marked ‘undeliverable.’ Rather than let those envelopes be returned to the respective bank, [Vuong] stuffed the envelopes with new credit cards inside into his waistband. Then, he made trips to his car while on break to hide the stolen credit cards.”
Vuong admitted to investigators that in the year prior to the search, he had stolen an average of 40 credit card envelopes, three to five nights per week, which means he stole at least 6,240 credit cards over a one-year period.
The investigation into Vuong was conducted by the U.S. Postal Inspection Service’s Identity Theft & Economic Crimes Task Force; the United States Postal Service, Office of the Inspector General; and the Federal Bureau of Investigation. The Westminster Police Department provided assistance during the investigation.
The case against Vuong was prosecuted by Assistant United States Attorney Vibhav Mittal of the Santa Ana Branch Office.
Former Owner and Manager of Long Island Catering Hall Indicted for Forced Labor and Visa FraudRead the Press Release
A six-count indictment was unsealed today in federal court in Central Islip, New York, charging Ralph Colamussi and Roberto Villanueva with conspiring to engage in forced labor of immigrants and visa fraud, as well as related substantive counts, fraud in foreign labor contracting and fraudulent inducement of aliens to enter and remain in the United States in violation of law. Both defendants were arrested this morning and will be arraigned this afternoon before United States Magistrate Judge Anne Y. Shields.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Thomas M. Cioppa, District Director, United States Citizenship and Immigration Services (USCIS), and Michael Mikulka, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General (DOL-OIG), announced the charges.
“As alleged, Colamussi and Villanueva lured immigrants from the Philippines to the United States with false promises regarding jobs and overtime pay in order to line their own pockets at the expense of the victims,” stated Acting United States Attorney Rohde. “This Office, together with our law enforcement partners, will hold accountable those who engage in such illegal, exploitive behavior.”
“This case is an example of ruthless labor trafficking hiding in plain sight. These individuals allegedly committed visa fraud while forcing people to work in their catering hall under horrible conditions, in what seemed to be an inescapable situation,” stated HSI Special Agent-in-Charge Melendez. “It is important for anyone who may believe they are a victim of trafficking to know that our investigations are victim-centered, focusing on keeping the victim safe while bringing their traffickers to justice.”
“USCIS played a meaningful role in bringing suspects of this inhumane criminal activity to face justice,” said USCIS New York District Director Cioppa. “Supporting cases like these is an important way USCIS fulfills key parts of our mission: safeguarding the integrity of our immigration system and securing the homeland.”
“An important function of the Office of Inspector General is to investigate allegations of fraud related to the Department of Labor's administration of the H-2B Visa program,” stated DOL-OIG Special Agent-in-Charge Mikulka. “We will continue to proactively work with our law enforcement partners to investigate these types of allegations.”
At the time of the events alleged in the indictment, Colamussi was the owner and operator of Thatched Cottage, a popular catering and wedding venue in Centerport, New York, as well as the owner and operator of the Jellyfish Restaurant, a popular bar located next door to the Thatched Cottage. As alleged in the indictment, between approximately August 2008 and March 2013, Villanueva and Colamussi recruited prospective employees in the Philippines with false promises of jobs with overtime pay, as waiters, servers, cooks, chefs and food preparation. The prospective employees were illegally made to pay the defendants money in advance in order to qualify for the visa interview in the United States and directed to conceal such payments from the United States Department of State during visa interviews. Workers were not only brought to the United States by means of fraudulent promises of specific employment, but upon arrival, were forced to work at lower than promised wages without overtime. The workers were also forced to care for Colamussi’s relatives, including his father, and to perform construction work at the Jellyfish Restaurant.
Workers were brought to the United States on H-2B visas that expired shortly after their arrival in the United States. Once their H-2B visas expired, workers were allegedly told by Colamussi and Villanueva to apply for student visas and to fraudulently represent that they intended to attend school full-time and had sufficient resources to support themselves during school. Colamussi and Villanueva, at times, deposited funds in the workers’ bank accounts to give the appearance of resources and then withdrew the funds once the student visas were approved. The workers continued to work for Colamussi and Villanueva during the term of their student visas, attending school one day a week.
When the workers objected to performing certain jobs or working consecutive shifts, Colamussi and Villanueva threatened to report them to immigration authorities. Colamussi had many workers whose visas had expired living in the basement of his home in East Northport, New York, and working for him off the books.
The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
If convicted, Colamussi and Villanueva face a maximum term of imprisonment of 20 years for forced labor and conspiracy to commit forced labor, 10 years for visa fraud and fraud in foreign labor contracting, and five years for conspiracy to commit visa fraud and inducement of an alien to illegally enter and reside in the United States. Defendants also face forfeiture of all proceeds and the house in East Northport where the immigrants lived in the basement.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles P. Kelly is in charge of the prosecution with the assistance of Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division, which is responsible for the forfeiture of assets.
Former IRS Revenue Agent Sentenced to Two Years in Federal Prison for Distributing MethamphetamineRead the Press Release
BOISE – David Lon Rose, 43, of Boise, was sentenced last week in federal court to two years in prison followed by four years of supervised release for distributing methamphetamine, U.S. Attorney Bart M. Davis announced. Rose pleaded guilty to that charge on September 18, 2017. He was sentenced by Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
According to court records, Rose distributed 37 grams of pure methamphetamine to a confidential informant on two separate occasions in December of 2016. The investigation into Rose’s methamphetamine dealing began in May of 2016. In June of 2016, Rose resigned from his position as a revenue agent for the Internal Revenue Service.
This case was the result of a joint investigation by the Boise Police Department, the Federal Bureau of Investigation and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Former Bookkeeper and Associate Plead Guilty to Embezzling More Than $1 M from Fresno BusinessRead the Press Release
FRESNO, Calif. — Fresno residents Brandi Marshall, 41, and Daniel Barrios Jr., 37, pleaded guilty today to conspiracy to commit wire fraud and bank fraud and conspiracy to launder money in connection with their embezzlement of money from a Fresno business, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Marshall was employed as the company’s bookkeeper between October 2014 and March 2016 and was responsible for, among other things, receiving and depositing checks from customers to pay their invoices. During that time, she and Barrios misappropriated more than 100 checks and fraudulently deposited them into Barrios’s personal bank account. Marshall and Barrios used money derived from the fraudulently deposited checks for personal purchases, including more than $35,000 to purchase and accessorize a 2016 Ford Mustang GT, and more than $25,000 to purchase a 2012 Dodge Challenger. Marshall created fictitious entries in the company’s computer accounting application to attempt to conceal the embezzlement. Together, Marshall and Barrios embezzled more than $1 million dollars.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Marshall and Barrios are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on March 12, 2018, and March 19, 2018, respectively. They face a maximum statutory penalty of 30 years in prison and a $1 million fine for conspiracy to commit wire fraud and bank fraud, and an additional 10 years in prison and $250,000 fine for conspiracy to launder money. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal inmate sentenced for murder of fellow prisonerRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kevin Marquette Bellinger, a federal inmate at the U.S. Penitentiary Hazelton in Bruceton Mills, West Virginia, was sentenced today to life in prison for murdering another inmate, United States Attorney Bill Powell announced.
Bellinger, 36, formerly of Washington, D.C., was found guilty of one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of fellow inmate Jesse Harris by a jury in August 2017.
Bellinger and fellow inmate, Patrick Andrews, stabbed Harris to death with homemade knives in an orchestrated attack. According to evidence introduced during Bellinger’s trial, while a group of inmates were being moved from the recreation yard back to their cells, Andrews and Bellinger confronted Harris and repeatedly stabbed him. In less than a minute, a correctional officer approached and the attackers fled. Officers apprehended Andrews after reviewing surveillance footage, which showed Andrews and Bellinger engaged in a verbal confrontation with Harris, followed by the two attackers wielding weapons and assaulting Harris, who was unarmed and backing away from them. Harris ultimately died from multiple stab wounds sustained during the attack.
At the time of the murder, Bellinger was serving a sentence of 15 years to life for an assault with intent to kill that took place in 2000.
Bellinger was convicted in this case by a federal jury on June 16, 2014 and sentenced to life in prison. That conviction was overturned on appeal in June 2016.
Assistant U.S. Attorneys Andrew R. Cogar and Sarah E. Wagner prosecuted the case on behalf of the government. This case was investigated by the FBI and the U.S. Bureau of Prisons.
Senior U.S. District Judge Irene M. Keeley presided.
Federal Jury Finds Armed Career Criminal Guilty on Firearm and Ammunition ChargesRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Michael Moore (36, Sarasota) guilty of possessing a firearm and ammunition as a convicted felon. He faces a minimum mandatory term of 15 years, up to life, in federal prison. His sentencing hearing is scheduled for March 7, 2018.
Moore was indicted on July 18, 2017.
According to evidence presented at trial, on May 28, 2017, Moore had an altercation with his girlfriend during which he removed her loaded firearm from underneath the driver’s seat of her car. When Moore’s girlfriend reported him to the police for stealing her loaded firearm, he hid the weapon at a friend’s house. After his girlfriend agreed to drop the gun report against him, Moore retrieved the loaded firearm and returned it to her. As a previously 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 Sarasota Police Department. It is being prosecuted by Assistant United States Attorneys Kaitlin R. O’Donnell and Michael Baggé-Hernández.
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.
Detroit man sentenced for heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Wali “Black” Murphy, of Detroit, Michigan, was sentenced today to 46 months incarceration for drug trafficking, United States Attorney Bill Powell announced.
Murphy, age 25, pled guilty to one count of “Distribution of Heroin” in September 2017. Murphy admitted to selling heroin in September 2016 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.Defendant Charged with Smuggling 77 Pounds of Deadly Fentanyl into the United States in one of Largest Fentanyl Seizures along Southwest BorderRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – December 11, 2017
SAN DIEGO – Tijuana resident Flavio Diego Rivera Davalos was arraigned today in federal court on charges that he smuggled approximately 77.82 pounds of fentanyl into the United States in one of the largest seizures of the deadly drug along the Southwest border with Mexico.
According to court documents, Davalos entered the United States from Mexico via the San Ysidro, California Port of Entry. Davalos, a visa holder, was the driver, sole occupant and registered owner of the 2010 Ford Focus bearing Baja California, Mexico license plates.
In pre-primary inspection, a Customs and Border Protection Officer and an assigned Narcotics and Human Detection Dog were conducting roving operations when the canine alerted to the odor of narcotics at the vehicle’s passenger rear door area and rear seats.
A CBP officer questioned Davalos regarding his purpose of travel to the United States and he responded that he was going to “Las Americas” Premium Outlets shopping mall. At the secondary inspection area, CBP officers detected anomalies in the rear seat and rear quarter panels of the vehicle. According to a complaint, officers found 31 packages throughout the vehicle, including in the driver’s side quarter panel, the passenger’s side quarter panel, the driver’s side rear seat, the passenger’s side rear seat, the speaker box and the firewall under the hood.
The defendant’s detention hearing is scheduled on December 14 at 9:45 a.m. before U.S. Magistrate Judge Karen Crawford and his preliminary hearing is set for December 21 at 2 p.m.before U.S. Magistrate Judge Jan Adler.
Federal authorities, led by U.S. Customs and Border Protection and Homeland Security Investigations, confiscated 542.42 kilograms of fentanyl in FY 2017. In FY 2015, there were only six seizures totaling 30.18 kilograms. This represents a 914 percent increase in fentanyl seizures at the Ports of Entry in the Southern District of California.
DEFENDANT Case Number 17MJ4684
Flavio Diego Rivera Davalos Age 19 Tijuana, Mexico
CHARGES
Importation of Controlled Substance: 10 year minimum mandatory to life; fine of $1 million dollars; at least 3 years of supervised release; $100 Special Assessment
AGENCIES
Customs and Border Protection (CBP)
Homeland Security Investigations (HSI)
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Credit Union Manager Sentenced to Prison, Ordered to Pay Restitution for Embezzling Nearly $1 MillionRead the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania, has been sentenced in federal court to one year of imprisonment, followed by five years supervised release and ordered to pay approximately $979,595.82 in restitution on her conviction of embezzlement, Acting United States Attorney Soo C. Song announced today.
United States District Judge Donetta W. Ambrose, imposed the Catherine M. Linton, 58, of Washington, Pennsylvania.
According to information presented to the Court, Linton, as former manager of Trailblazer Federal Credit Union, embezzled approximately $979,595.82.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended Federal Bureau of Investigation for the investigation leading to the successful prosecution of Linton.
Crawford County Man Admits Having Child Pornography on His ComputerRead the Press Release
ERIE, Pa. - A former resident of Crawford County, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
Alan Thomas Rigby, 70, pleaded guilty to one count before United States District Judge David S. Cercone. As part of the plea agreement in the case, Rigby agreed to a sentence of 13 years in jail and lifetime supervised release.
In connection with the guilty plea, the court was advised that Rigby possessed computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for April 16, 2018. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Rigby.
Citizen of Mexico Pleads Guilty to Being in the United States After RemovalRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Eliud Lopez-Baez, 32, a citizen of Mexico, pleaded guilty today in U.S. District Court to being an alien who was found in the United States after having been removed and deported from the United States.
Court documents reveal that on November 28, 2017, at about 7:50 a.m., U.S. Border Patrol agents found the defendant in a swamp in Hodgdon, Maine, a short distance from the international boundary. The defendant had no immigration documents and admitted that he was a citizen of Mexico. Immigration records showed that he had been removed from the United States in February 2017.
The defendant faces up to two years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Border Patrol.
Christina E. Nolan to Be Sworn in as U.S. AttorneyRead the Press Release
The Office of the United States Attorney for the District of Vermont announces that Christina E. Nolan will be formally sworn in as United States Attorney on Friday, December 15, 2017, at 10:30 a.m. in the Fifth Floor Courtroom of the United States Courthouse, 11 Elmwood Avenue, Burlington, Vermont. Members of the press are invited. Cameras will be allowed in the courtroom, but due to space limitations, we ask that you please use a single video feed. Chief United States District Court Judge Christina Reiss will preside.
Charleston crack dealer pleads guilty to federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Yusuf Ali, 38, entered his guilty plea to distribution of crack.
Ali admitted that on four occasions in August 2017, he sold crack to a confidential informant working with the Metropolitan Drug Enforcement Network Team. The drug deals took place in Charleston. On August 29, 2017, law enforcement executed a search warrant at Ali’s residence and recovered over 130 grams of suspected crack and over 40 grams of suspected fentanyl.
Ali faces up to 20 years in federal prison when he is sentenced on March 15, 2018.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Matt Davis is handling the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
- Follow us on Twitter: SDWVNews
Ceres Man Sentenced to 15 Years in Prison for Distributing Child PornographyRead the Press Release
FRESNO, Calif. — Richard Anthony Matlock, 30, of Ceres, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 15 years in prison for distributing child pornography, U.S. Attorney Phillip A. Talbert announced.
“Downloading and distributing sexually explicit images and videos of young children not only creates lifelong scars for victims, but also creates a demand for the continuous production of the disturbing material,” said Ryan L. Spradlin, special agent in charge for HSI San Francisco. “HSI will continue to work tirelessly with our law enforcement partners to target criminals who prey on the most vulnerable members of society.”
According to court documents, between November 5, 2015, and September 22, 2016, in Stanislaus County, Matlock was found to have distributed through his cellphone between 300 and 600 images of minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. According to court documents, Matlock has a prior conviction in the Stanislaus County Superior Court on April 9, 2015, for possession of child pornography.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Brian W. Enos prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Canton man indicted for child pornography crimesRead the Press Release
A Canton man was indicted on child pornography charges, said U.S. Attorney Justin E. Herdman.
Andrew H. Daugherty, 27, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Daugherty knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct in August 2017, according to the indictment.
Daugherty also possessed a computer on Nov. 14 that contained child pornography, according to the indictment.
If convicted, the defendant's sentence will be determined by the Court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not
exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik following an investigation by the Canton Police Department and FBI.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Brooke County nurse admits to illegal drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – A Wellsburg, West Virginia registered nurse has admitted to distributing drugs illegally, United States Attorney William J. Powell announced.
Sharon E. Jackson, age 46, pled guilty to one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice.” Jackson admitted to conspiring with others to illegally distribute suboxone, subutex, and buprenorphine, controlled substances used to treat opioid addiction. Jackson admitted to committing the crime while operating at an opioid addiction treatment center, Advance Healthcare, Inc., in Weirton, West Virginia from 2007 until 2017.
Jackson faces up to 10 years incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Sarah E. Wagner and Robert H. McWilliams, Jr. and are prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Drug Enforcement Administration are investigating.
U.S. Magistrate Judge James E. Seibert presided.
Attorney General Sessions Issues Statement on the Attempted Terrorist Attack in New York CityRead the Press Release
Today Attorney General Jeff Sessions issued the following statement on the attempted terrorist attack in New York City:
“The President is exactly correct about the changes we need to our immigration system. We have now seen two terrorist attacks in New York City in less than two months that were carried out by people who came here as the result of our failed immigration policies that do not serve the national interest—the diversity lottery and chain migration. The 20-year-old son of the sister of a U.S. citizen should not get priority to come to this country ahead of someone who is high-skilled, well educated, has learned English, and is likely to assimilate and flourish here.
“It is a failure of logic and sound policy not to adopt a merit-based immigration system. The President has asked Congress to work with him on ending the diversity lottery and chain migration. He has proposed switching to a merit-based system of immigration similar to the Canadian and Australian systems. That means welcoming the best and the brightest and turning away not only terrorists but gang members, fraudsters, drunk drivers, and child abusers. Such a merit-based system would make us safer and welcome individuals who would be best able to assimilate and flourish in our country.”
Area Law Enforcement Officials Meet to Address Violent CrimeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that area law enforcement leaders met today for a roundtable discussion aimed at improving coordination to reduce violent crime in the metropolitan area.
The purpose of today’s meeting was to bring law enforcement and prosecution partners together to enhance their coordination in combatting violent crime. This is a component of the U.S. Attorney’s Office strategy to develop and implement an enhanced Project Safe Neighborhoods plan, which includes prioritizing violent crime reduction.
Project Ceasefire is the longstanding Project Safe Neighborhoods initiative in the Kansas City, Mo., area, to target felons and others who illegally possess firearms. An enhanced Project Safe Neighborhoods program will include enhancing the working relationships between federal, state and local agencies to reduce violent crime and effectively leverage resources. They will jointly identify the area’s most significant violent crime problems in order to target and prioritize enforcement.
Among the law enforcement officials who addressed today’s gathering regarding their specific agency or department priorities, programs and strategies were: • Acting U.S. Attorney Tom Larson; • Kansas City Police Chief Rick Smith; • ATF Special Agent in Charge George Lauder; • Jackson County Prosecuting Attorney Jean Peters Baker; • FBI Special Agent in Charge Darrin Jones; • Assistant U.S. Attorney Jeff Valenti, Project Safe Neighborhoods Coordinator; and
• Counsel to the U.S. Attorney David M. Ketchmark.Also participating in the discussion held at the ATF Kansas City Field Division office were DEA Supervisory Special Agent M. Todd Hixson, Director Jeffrey B. Stamm of Midwest HIDTA (High Intensity Drug Trafficking Area), Jackson County Sheriff Mike Sharp, Independence Police Chief Brad Halsey, Assistant Special Agent in Charge Gilbert Trill of Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and Acting U.S. Marshal Scott Seeling.
Another Montgomery “Pill Mill” Doctor Pleads Guilty to Drug Distribution and Money Laundering ChargesRead the Press Release
Montgomery, Ala. – On Friday, December 8, 2017, Dr. Shepherd A. Odom, 78, of Alexander City, Alabama, pleaded guilty to charges of drug distribution and conspiracy to commit money laundering, announced United States Attorney Louis V. Franklin, Sr. Dr. Odom’s guilty plea was a part of the ongoing investigation and prosecution of those involved in operating a “pill mill” through the Family Practice medical office located at 4143 Atlanta Highway in Montgomery, Alabama.
According to court documents, until 2013, Dr. Odom was a part owner of Family Practice. In 2013, he sold his interest in the business to his partner, Dr. Gilberto Sanchez, who recently pled guilty to drug distribution, health care fraud, and money laundering charges arising out of the same scheme. After selling his ownership interest in Family Practice, Dr. Odom remained involved in the business’s affairs. For example, records show that in 2014 Dr. Odom issued an illegitimate and unnecessary prescription for fentanyl patches to a patient. Additionally, in or about 2013, Dr. Odom agreed with Dr. Sanchez and others to launder the proceeds of the practice’s drug distribution operations. The money laundering was accomplished by Dr. Sanchez frequently issuing sizable checks from the practice’s bank account that were payable to Dr. Odom.
On March 22, 2018, Dr. Odom is scheduled to be sentenced in federal court where he faces up to 20 years on each count. Dr. Odom also faces substantial monetary penalties and restitution.
This case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad, the Internal Revenue Service’s Criminal Investigation Division, and the Department of Health and Human Services – Office of Inspector General. The Montgomery County, Alabama Sheriff’s Office, the Alabama Board of Medical Examiners, the Montgomery, Alabama Police Department, and the Opelika, Alabama Police Department all assisted in the investigation. Assistant United States Attorneys Jonathan S. Ross and R. Rand Neeley are prosecuting the case.
Alameda County Resident Pleads Guilty to Wire Fraud in Connection with Scheme to Defraud Networking Equipment ManufacturerRead the Press Release
SAN JOSE –Ferdinand Pasion Arafiles, a/k/a Dennis Arafiles, pleaded guilty today to charges he defrauded a Bay Area manufacturer and seller of networking equipment and services, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The guilty plea was accepted by the Honorable Edward J. Davila, United States District Judge.
Arafiles, 49, of Alameda County, was an employee of a Bay Area public school district. According to his plea agreement, beginning in October of 2009 and continuing until February 2016, he devised a plan to take advantage of the relationship between the district and a leading networking equipment and services corporation (the “Corporation”). Specifically, Arafiles maintained access to the Corporation’s warranty contract and service program for the school district and used that access to order, receive, and then sell, replacement computer parts to which he was not entitled.
In the plea agreement, Arafiles acknowledged he created multiple email accounts, including variations on the name of the school district that employed him, and used those email accounts to create user accounts with the Corporation. He then made service requests on the Corporation’s customer support website. Using those email accounts and fraudulent identities, Arafiles instructed the Corporation to send “replacement” parts to designated addresses, including Arafiles’s personal residence in Alameda County. Arafiles understood that the Corporation required the return of failed or defective parts, so he returned bogus parts that contained forged or altered serial number labels. Arafiles also posted for sale and sold on internet market places some of the parts he fraudulently obtained from the Corporation.
A federal grand jury indicted Arafiles on June 23, 2016. In sum, Arafiles was charged him with five counts each of wire fraud, in violation of 18 U.S.C. § 1343; interstate transportation of stolen property, in violation of 18 U.S.C. § 2314; and mail fraud, in violation of 18 U.S.C. § 1341. Pursuant to today’s plea, Arafiles pleaded guilty to one count of wire fraud and the remaining charges will be dismissed at sentencing.
Arafiles faces a maximum statutory sentence of 20 years’ imprisonment and a fine of $250,000 plus restitution, if appropriate, for violating 18 U.S.C. § 1343. Additional fines and a term of supervised release also may be imposed, however, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Arafiles currently is released on bond. Judge Davila has scheduled his sentencing hearing for May 10, 2018, at 1:30 p.m. An interim status date was also set for March 19, 2018, at 1:30 p.m.
Assistant U.S. Attorney Timothy Lucey is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Aggravated Felon Pleads Guilty to Illegal ReentryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Armando Navarrete-Dominguez, 29, of Mexico, pleaded guilty, before U.S. District Judge Richard J. Arcara, to reentering the United States illegally after a conviction for an aggravated felony. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that on February 15, 2017, the defendant was taken into custody after a vehicle and traffic stop on Grand Island, NY. Record checks revealed that Navarrete-Dominguez was a citizen of Mexico and was previously convicted in North Carolina of sexual exploitation of a minor and breaking and entering. Further, the defendant was deported and removed from the United States to Mexico in 2009 after his convictions in North Carolina.
The plea is the result of an investigation by U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Steven Oldman.
Sentencing is scheduled for April 6, 2018, at 1:00 p.m. before Judge Arcara.
Advanced Plastic Surgery Solutions agrees to resolve alleged violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The U.S. Attorney's Office for the Northern District of Georgia has reached a settlement with Advanced Plastic Surgery Solutions (“APSS”) to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (“ADA”) by refusing to accept a new patient because of her HIV status.
“The ADA prohibits healthcare providers from denying services on the basis of a disability or perceived disability,” said U. S. Attorney Byung J. “BJay” Pak. “When a person is denied service because of a disability, it can be emotionally painful and, in this case, deprive a person of the medical care she desires. Our office remains committed to eradicating this type of discrimination wherever it may occur."According to the complaint, the complainant attempted to schedule an initial appointment with APSS to discuss cosmetic surgery. Complainant’s initial call was answered by a third party call center retained by APSS to handle large volumes of telephone calls from prospective patients. Upon revealing that she had HIV, the call center employee told the complainant that APSS doctors would not perform the procedure. Complainant called back and spoke with an employee of APSS who also told complainant that under those circumstances, APSS would not perform surgery.
The settlement requires APSS to draft new policies and procedures indicating that it does not discriminate against persons with disabilities, including persons who have HIV or AIDS. APSS will also conduct training for its employees, with a focus on HIV-related discrimination. APSS has agreed to pay $25,000 to compensate the complainant for her emotional distress, and pay a $10,000 civil penalty to the United States.
The ADA prohibits discrimination against individuals with disabilities by health care professionals. Denying people with disabilities access to medical services based solely upon the individual's disability, including HIV status, violates the ADA.This matter was handled by Assistant U.S. Attorney Aileen Bell Hughes, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office.
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.
10 December 2017
Broken Arrow Man Sentenced to 60 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jason Nathaniel Daugherty, age 31, of Broken Arrow, Oklahoma, was sentenced to 60 months imprisonment and 3 years of supervised release for Felon In Possession Of Firearm And Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about, December 4, 2016, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce a firearm and ammunition which have been shipped and transported in interstate commerce.
The charge arose from an investigation by the Broken Arrow Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
United States Attorney Brian J. Kuester said, “This office is committed to working with our federal, state, local and tribal partners to protect the public from violent offenders. Enforcement of the federal laws that prohibit convicted felons from possession of firearms is one way that we are able to protect the public. I am thankful for the work of the Broken Arrow Police Department, the Bureau of Alcohol, Tobacco, and Firearms, and members of the United States Attorney’s Office for their work on this case and their commitment to public safety."
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Kristin Harrington represented the United States.
8 December 2017
Yuba County Man Sentenced to 2 Years in Prison for Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Earnest Marshall Badman, 31, of Marysville, was sentenced today to two years in prison by U.S. District Judge Garland E. Burrell Jr. for aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail and Identity theft crimes committed against the public.”
According to court documents, in January and February of 2016, Badman executed a scheme to defraud banks by using credit cards and checks and identification documents of others obtained from stolen mail and burglaries.
On February 9, 2016, Badman was arrested after a high speed chase in a stolen vehicle in Colusa County. The vehicle pursuit ended in the backyard of an Arbuckle home. Badman attempted to flee on foot but was arrested. At the time of his arrest, Badman possessed burglary tools, credit cards in the names of others, and stolen mail. He possessed the mail and identity information of over 40 victims and over 15 different credit cards for fraudulent use.
This case was the product of an investigation of the U.S. Postal Inspection Service with assistance from the Yuba County Sheriff's Office, California Highway Patrol, Butte County Sheriff’s Office, and the Yuba County Probation Department. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.
Wounded Knee Man Indicted for Assault with a Golf ClubRead the Press Release
United States Attorney Randolph J. Seiler announced that a Wounded Knee, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Virgil Left Hand, Sr., age 50, was indicted on October 24, 2017. Left Hand appeared before U.S. Magistrate Judge Daneta Wollmann on December 1, 2017, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, $100 to the Federal Crime Victims Fund, and a $5,000 assessment, unless the sentencing court finds the defendant to be indigent. Restitution may also be ordered.
The charges relate to Left Hand using a golf club to assault the male victim at Wounded Knee on September 23, 2017.
The charges are merely accusations and Left Hand is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Left Hand was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for February 6, 2018.
Worcester Business Owner Pleads Guilty to Defrauding SNAP Benefits Program and Selling Counterfeit MerchandiseRead the Press Release
BOSTON – The owner of Esther’s Fashion Paradise in Worcester pleaded guilty yesterday in federal court to defrauding the SNAP benefits program and selling counterfeit merchandise.
Esther Acquaye, 31, of Worcester, pleaded guilty to one count of conspiracy to acquire, possess, and redeem SNAP benefits in an unauthorized manner, and to convert public money; one count of SNAP fraud; and one count of trafficking in counterfeit goods. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for March 7, 2018.
On numerous occasions between November 2013 and April 2016, Acquaye, the owner of Esther’s Fashion Paradise in Worcester, accepted EBT cards from SNAP recipients wishing to exchange their SNAP benefits for cash. Specifically, Acquaye passed the EBT cards through a point-of-sale terminal causing the full value of the SNAP benefits to be electronically transferred to her business, and then provided less than the full value of the SNAP benefits in cash to the SNAP recipients. In total, Acquaye caused approximately $282,541 in fraudulent EBT transactions and SNAP benefits to be transacted at Esther’s.
In addition, on at least four occasions between November 2015 and March 2016, Acquaye accepted an EBT card from an undercover investigator as payment for counterfeit retail goods. Acquaye sold the investigator two counterfeit Michael Kors purses, one counterfeit Gucci purse, one counterfeit The North Face jacket, and one counterfeit Michael Kors wallet.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of SNAP fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain/loss, whichever is greater. The charge of trafficking in counterfeit goods provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Bethanne M. Dinkins, Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General, Office of Investigations, Northeast Region; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Michelle Dineen Jerrett of Weinreb’s Worcester Branch Office is prosecuting the case.
Wisconsin Man Found Guilty of Sexual AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that DaShown Keys, age 25, of Milwaukee, Wisconsin was found guilty of six counts of Aggravated Sexual Abuse of a Child and Abusive Sexual Contact of a Child as a result of a federal jury trial in Aberdeen, South Dakota. The verdict was returned on December 7, 2017.
The charges carry a mandatory minimum sentence of 30 years, up to a maximum of life in custody and/or a $1,500,000 fine, up to life of supervised release, and a $600 special assessment to the Federal Crime Victims Fund.
Keys was indicted by a federal grand jury on June 14, 2016.
The conviction stems from incidents between November 1, 2013, and January 1, 2016, when Keys repeatedly sexually abused two minor victims, while Keys was staying at the home of one of the victims.
This case was investigated by the Federal Bureau of Investigation and the Sisseton-Wahpeton Tribal Police Department. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
A presentence investigation was ordered and a sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service.
Wayne Man Charged with Mail and Securities FraudRead the Press Release
Paul Smith, of Wayne, Pennsylvania, was charged yesterday by Information with mail fraud and securities fraud, announced United States Attorney Louis D. Lappen. These charges arise from the defendant’s operation of “the Haverford Group,” which the defendant promoted as a stock investment club, but which was actually a Ponzi scheme.
If convicted, Smith faces a maximum possible sentence of 40 years’ imprisonment, a three-year period of supervised release, a $5,250,000 fine, and a $300 special assessment. Full restitution of as much as $886,214 also shall be ordered.
The case was investigated by the Federal Bureau of Investigation with assistance from the Securities and Exchange Commission, and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Washington Man Convicted for Conspiracy to Distribute Heroin and Methamphetamine in AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that, on Dec. 6, 2017, a federal jury in Juneau convicted Zerisenay Gebregiorgis, 35, a Washington resident, of conspiracy to distribute and to possess with the intent to distribute heroin and methamphetamine.
The evidence presented at trial showed that, between June 1, 2016, and August 16, 2016, Gebregiorgis and others planned to distribute large quantities of heroin and methamphetamine in the communities of Ketchikan and Sitka. Gebregiorgis supplied drugs to drug couriers, who carried the drugs inside their bodies to other co-conspirators in Ketchikan and Sitka for subsequent distribution. Drug proceeds were then given to the couriers to be carried back to Seattle to be delivered to the defendant or deposited into bank accounts controlled by Gebregiorgis.
According to evidence presented at trial, Gebregiorgis trafficked at least 100 grams or more of heroin and 50 grams or less of methamphetamine. Gebregiorgis directed every aspect of the conspiracy, to include directing the amounts of drugs sent to Alaska, the couriers who carried the drugs, the travel for those couriers, and delivery of drug proceeds of the conspiracy back to him via couriers and bank accounts deposits.
Sentencing is scheduled for March 5, 2018, at 11:00 a.m. in Juneau. The law provides for a mandatory minimum sentence of five years up to a maximum of 40 years in prison, a fine of up to $5 million dollars, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the criminal history, if any, of the defendant. The defendant is detained pending sentencing.
Mr. Schroder commends the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the members of the Southeast Alaska Cities Against Drugs Taskforce (SEACAD), specifically the members from the Alaska State Troopers (AST), Ketchikan Police Department (KPD), and the Sitka Police Department (SPD) for the investigation of this case.
Virginia Man Sentenced to 14 Years in Prison for Attempting to Entice Eight-Year-Old Minor to Have Sex OverseasRead the Press Release
A Springfield, Virginia man was sentenced today to 168 months in prison for attempting to entice an eight-year-old minor to engage in sex with him during a trip to the Philippines in 2013, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office.
Carl Sara, 63, was sentenced by U.S. District Judge Anthony J. Trenga. Sara pleaded guilty on Sept. 6 to attempted coercion and enticement of a minor. Sara was also sentenced to a lifetime of supervised release after his serving his term of imprisonment. According to the statement of facts filed with the plea agreement, Sara participated in live-streaming webcam sessions depicting minors engaged in sexually explicit conduct, along with contemporaneous instant message chatting with persons in the Philippines and elsewhere. During some of these chats, which occurred in or about May 2013 until July 2013, Sara discussed, with a woman in the Philippines, plans for Sara to have sex with the woman’s eight-year old daughter during an upcoming trip to the Philippines. During these chats with the mother, Sara attempted to entice the minor to engage in sexual activity with him on that upcoming trip. Sara sent the mother $200 dollars via Western Union upon receiving the mother’s agreement that he could had sex with her daughter, and offered to pay her an additional $300 after he had sex with the eight-year-old.
Additionally, at the sentencing hearing the Court found that Sara then traveled to the Philippines in order to have sex with the eight-year-old and other minor children. During this trip to the Philippines he paid for sex with another minor, a 16-year-old girl. In addition, the Court found that Sara had sent wire transfers overseas totaling more than $33,000, the majority of which was used to pay for live webcam shows depicting minors engaged in sexually explicit conduct or child pornography. Finally, the Court at the sentencing hearing found that Sara routinely sought out mothers in the Philippines with young children in order to persuade them allow him to have sex with them.
The case was investigated by the FBI and prosecuted by Special Assistant U.S. Attorney James E. Burke IV and Assistant U.S. Attorney Nathaniel Smith III.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), 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.justice.gov/psc.
Virginia Beach Woman Sentenced for EmbezzlementRead the Press Release
NORFOLK, Va. – A Virginia Beach woman was sentenced today to 46 months for embezzling over $300,000 from her former employer.
According to court documents and evidence presented in Court, Vernell Collins, 52, was employed by a Virginia Beach company as a Personal Injury Protection claims adjuster starting in April 2013. From April 2013 through August 2015, Collins caused the company to send reimbursement checks directly to her, endorsed the checks as “parent of minor,” and cashed the checks at her local bank. Collins stole over $300,000 from the company before she was found through a routine audit. After being discovered and confronted, Collins then applied for and was employed by the City of Norfolk as a Safety Specialist until July 2017.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and George D. Purefoy, Resident Agent in Charge of the U.S. Secret Service’s Norfolk Resident Office, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17cr77.
Two Federal Inmates Sentenced for Weapon PossessionRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that U.S. District Court Judge Matthew W. Brann sentenced two federal inmates separately for possessing weapons in prison.
According to United States Attorney David J. Freed, Jeremy Harwell, age 30, an inmate at the Federal Correctional Institute (“FCI”) Allenwood, was sentenced to 18 months’ imprisonment for being in possession of a homemade weapon made out of wood, commonly referred to as a “shank” in December 2016.
Craig Pipps, age 43, an inmate at the United States Penitentiary (“USP”) Allenwood, was sentenced to 20 months’ imprisonment for being in possession of a homemade weapon made out of wood, commonly referred to as a “shank” in December 2016.
Harwell and Pipps each previously pleaded guilty on September 8, 2017. The sentences will be served consecutively to their current periods of federal confinement.
The investigation was conducted by the Federal Bureau of Investigation, and the Bureau of Prisons Special Investigative Service. Special Assistant United States Attorney Michael FiggsGanter prosecuted the cases.
# # #
Twelve People Indicted in Drug Conspiracy Cases, Accused of Distributing Heroin, Methamphetamine, and Crack Cocaine in the Washington AreaRead the Press Release
WASHINGTON –Twelve people have been indicted on federal charges stemming from an ongoing investigation into a drug trafficking organization that distributed large amounts of heroin, methamphetamine, and cocaine in the Washington, D.C. metropolitan area. To date, more than 300 grams of crack cocaine and 200 grams of methamphetamine have been seized as a result of the investigation, along with seven firearms.
The charges are contained in two indictments unsealed today in the U.S. District Court for the District of Columbia. The charges were announced by U.S. Attorney Jessie K. Liu, Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
All 12 defendants are charged with taking part in a conspiracy to distribute and possess with intent to distribute drugs. The indictment also includes a forfeiture count against all of those now charged in the investigation, which seeks all proceeds from the crimes. Nine defendants were arrested yesterday, and three were already in custody.
The defendants began making their first court appearances today. They include 11 men and one woman from the District of Columbia, Maryland, and Virginia.
“This investigation demonstrates our unwavering determination to disrupt and dismantle drug trafficking organizations that operate in the District of Columbia,” said U.S. Attorney Liu. “Working with our law enforcement partners, we were able to remove dangerous drugs and guns from the streets and make our neighborhoods safer.”
“The FBI works tirelessly with its partners to protect our communities and to hold accountable those who threaten our safety,” said Assistant Director in Charge Vale. “This week's arrests demonstrate our continuous efforts to dismantle drug trafficking organizations.”
“The District of Columbia is a safer place today as a result of the hard work and collaboration between the agencies involved,” said Chief Newsham. "We will continue to seize illegal drugs found in our city and ensure the individuals involved in narcotics distribution are held accountable.”
The charges arose from a long-term investigation into people suspected of acting as wholesale distributors of heroin and cocaine in the Washington, D.C., metropolitan area. The investigation determined that from at least January 2016 through December 2017, the defendants maintained a drug trafficking organization that supplied distribution amounts of crack cocaine, methamphetamine, and heroin to drug dealers in the District of Columbia, Maryland and Virginia. Much of the activity took place in the Birney Place area of Southeast Washington. In particular, the investigation showed that several of the defendants regularly sold crack cocaine and heroin in the 2600 block of Birney Place SE.
The prosecution grew out of the efforts of the FBI/MPD Safe Streets Task Force, a multi-agency team that conducts comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The prosecution was sponsored and supported by the federal Organized Crime Drug Enforcement Task Force (OCDETF).
The U.S. Attorney’s Office is working with MPD, the FBI, and other law enforcement partners on a Justice Department initiative called Project Safe Neighborhoods that is expected to generate additional cases targeting drug organizations. Under Project Safe Neighborhoods, the U.S. Attorney’s Office is committed to a coordinated law enforcement approach and identifying and addressing the most violent locations in the District of Columbia and the offenders.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Liu, Assistant Director in Charge Vale, and Chief Newsham commended the work of those who investigated the case from the Safe Streets Task Force, including the FBI, MPD, U.S. Park Police, Prince George's County, Md. Police, and the U.S. Bureau of Alcohol, Tobacco, and Firearms (ATF). They also expressed appreciation for the assistance provided by the U.S. Attorney’s Office for the District of Maryland. Finally they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Nihar Mohanty and Kevin Rosenberg, as well as Assistant U.S. Attorney Thomas Swanton, who assisted with the forfeiture aspects of the investigation.
Three More Men Arrested on Hobbs Act Robbery and Related Gun ChargesRead the Press Release
St. Thomas, USVI – Devon Davis, 27, Keon Wilson, 22, and Shawn McIntosh, 24, have been arrested after being charged by a superseding indictment with Hobbs Act robbery, conspiracy to commit Hobbs Act robbery, and brandishing a firearm during a federal crime of violence, Acting United States Attorney Joycelyn Hewlett announced. At a hearing today in District Court, Magistrate Judge Ruth Miller ordered Wilson detained pending trial. McIntosh was detained on November 22, 2017, and Davis was released on conditions.
Davis, Wilson, and McIntosh, along with Shaquille Correa, 22, Jarmaine Ayala, 36, Wahilli James, 21, and Ron Delano Kuntz, 42, are charged in a conspiracy to rob Gems and Gold Corner Jewelry Store on St. Thomas.
According to the superseding indictment, on September 16, 2013, the seven men conspired with each other and other unidentified co-conspirators to rob the store, brandished weapons to threaten and intimidate store employees, and then fled the store with merchandise.
If convicted, each of the seven men face up to 20 years in prison on the Hobbs Act robbery charge, plus a mandatory seven-year consecutive sentence for the brandishing a firearm charge.
This case is being investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Anna A. Vlasova and Kim L. Chisholm.
Acting United States Attorney Hewlett reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Tennessee Staffing Company Operator Convicted of Employment Tax FraudRead the Press Release
A Tennessee temporary staffing company officer was convicted today by a federal jury in Memphis of conspiring to defraud the United States, failing to pay over employment taxes, filing fraudulent employment tax returns, theft of government funds and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
According to the evidence presented at trial, from 2005 through 2015, Mark Stinson and his wife, Jayton Stinson, operated a temporary staffing company in Memphis that provided services to businesses in Tennessee and elsewhere. The staffing company’s standard contract with its customers provided that the staffing company was responsible for withholding employment tax from its employees’ wages and paying over the amounts withheld to the Internal Revenue Service (IRS).
The Stinsons failed to pay over $2.8 million in withholdings and other employment taxes due to IRS, failed to timely file employment tax returns and filed false employment tax returns. In an effort to avoid making payments to the IRS the Stinsons changed the name and structure of the company multiple times after accumulating employment tax liabilities, operating as Jayton Stinson Connex Staffing & Janitorial Service, Connexx Staffing Services LLC, Connexx Staffing Services Inc., and Complete Employment Agency.
The Stinsons also conspired to impede efforts by the IRS to collect on the employment tax liabilities owed by their companies. For example, the Stinsons made false representations to the IRS about their control of the staffing company and their knowledge of their responsibility to truthfully account for and pay over the employment taxes, placed the staffing company in the names of nominees who did not have control over the business operations, and established payment arrangements intended to impede an IRS levy placed on their customer payments. The Stinsons used the withheld funds to pay for personal expenses, including a Mercedes-Benz, a Cadillac Escalade, mortgage payments and private school tuition for their children. Jayton Stinson previously pleaded guilty to conspiracy charges in connection with this case.
Mark Stinson also filed a fraudulent tax return for a relative that included a false dependent seeking a refund to which the relative was not entitled. Stinson received a substantial portion of the fraudulent refund.
U.S. District Court Judge John T. Fowlkes, Jr. scheduled sentencing for March 1, 2018. Mark Stinson faces a statutory maximum sentence of five years in prison for each count of conspiracy, theft of government funds and failing to pay over employment taxes, three years in prison for each count of filing a false tax return, and a mandatory two years in prison for aggravated identity theft. He also faces a period of supervised release, restitution and monetary penalties. Jayton Stinson is scheduled to be sentenced on Jan. 31, 2018.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Damon Griffin and Trial Attorney Nathan Brooks, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Substance Abuse Treatment Provider and CEO Pay More Than $800,000 to Settle Improper Billing AllegationsRead the Press Release
United States Attorney John H. Durham and Connecticut Attorney General George Jepsen today announced that APT FOUNDATION, INC. and its Chief Executive Officer, LYNN MADDEN, have entered into a civil settlement agreement with the federal and state governments in which they will pay $883,859 to resolve allegations that they caused overpayments to be paid by the Connecticut Medicaid Program.
APT Foundation, Inc. (“APT”) is a healthcare organization that provides behavioral health and substance use disorder services to patients at its clinics in New Haven, North Haven and Bridgeport. The allegations against APT and MADDEN arise out of improper billing for urine drug testing services.
APT entered into contracts with the State of Connecticut Department of Social Services (“DSS”) to provide behavioral health and substance use disorder services to Medicaid beneficiaries. Medicaid reimburses methadone clinics, such as APT, utilizing a weekly rate payment for each Medicaid patient provided methadone treatment. Regulations issued by the State of Connecticut in 2013 made it clear that the weekly payment was a “bundled” rate that included intake evaluation, initial physical examination, on-site drug abuse testing and monitoring, and individual, group and family counseling services (emphasis added).
On September 3, 2014, Medicaid issued a Provider Bulletin to all methadone clinics reminding them that the weekly rate payment included reimbursement for on-site drug abuse testing and monitoring.
On February 1, 2015, DSS published on its website an Audit Protocol for methadone clinics. The Audit Protocol stated that if a DSS audit found Medicaid paid another laboratory provider for drug testing within a week of the date a methadone clinic was paid for methadone treatment, Medicaid would reduce the methadone clinic’s payment for the methadone treatment service by the cost of the laboratory service.
In 2015, DSS conducted an audit of APT and found that both APT and an independent laboratory billed Medicaid for drug testing performed by the laboratory, contrary to DSS’ weekly rate payment regulation. The Audit Report warned APT that continued non-compliance with the weekly rate payment rule would result in financial disallowances in future audits.
The government alleges that despite clear guidance from the Medicaid program and the audit finding indicating that on-site drug testing was part of the bundled rate, APT and MADDEN routinely referred urine drug tests for APT’s patients to an outside, independent lab in Massachusetts. As a result, Medicaid paid for the claims twice, once to APT pursuant to the bundled rate, and a second time to the outside lab in Massachusetts.
To resolve their liability, APT and MADDEN will pay $883,859 to the federal and state governments for conduct occurring between January 1, 2016 and November 30, 2016.
“Providers who bill government health insurance programs must follow the relevant rules and regulations, and the failure to do so will have serious consequences,” said U.S. Attorney Durham.
This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot, and by Assistant Attorneys General Michael Cole and Greggory O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Subsidiary of Caterpillar, Inc. Pleads Guilty to Federal Offense of Dumping Parts into Ocean after Performing Improper Railcar RepairsRead the Press Release
LOS ANGELES – A company that repaired railcars at a Terminal Island facility has pleaded guilty to a federal environmental offense of dumping parts into the ocean to conceal that it was performing unnecessary and improper repairs for several railcar operators.
United Industries LLC – a subsidiary of Progress Rail Services, Inc., which itself is a subsidiary of Caterpillar, Inc. – appeared yesterday afternoon in United States District Court and pleaded guilty to the federal water pollution charge.
Immediately after the guilty plea, United States District Judge Dolly M. Gee imposed a sentence that required United Industries to pay a $5 million criminal fine. Judge Gee also ordered United Industries to pay $20 million in restitution to three victim companies – TTX Company, Pacer International, and Greenbrier Company, all of whom owned and operated railcars that were improperly serviced and repaired.
United Industries admitted in a plea agreement filed in federal court that its employees “knowingly conducted inadequate inspections” on railcars the company serviced. United Industries employees improperly replaced functioning parts that did not need to be removed in a process known as making repairs to “green parts.” Employees also made random repairs on the railcars without conducting a proper inspection. The victim companies were then charged for the unnecessary and improper repairs.
“In order to conceal their unnecessary and improper repairs, United Industries’ employees, operating within the scope of their employment and motivated by an intent to benefit the company, concealed the replacement of ‘green’ railcar parts by throwing such parts into the Port of Long Beach (also known as Long Beach Harbor), a navigable water of the United States, from the shore alongside the Terminal Island repair facility,” according to the plea agreement.
After receiving a tip about the improper dumping, Port authorities conducted underwater dives that led to the discovery of a “large debris field” and the recovery of railcar parts that did not show any signs of mechanical wear that would have required replacement.
As a result of illegal conduct that spanned the years 2008 through 2014 – including the unnecessary and improper repairs on railcar adapters, brake beams, grating platforms, brake shoes, friction castings, hand brakes, roof liners and side bearings – United Industries earned at least $5 million.
After the investigation was initiated, United Industries exited the intermodal railcar repair business and no longer operates intermodal repair facilities on Terminal Island or elsewhere.
United Industries pleaded guilty to a misdemeanor offense of depositing refuse in navigable waters, specifically the Port of Long Beach.
The investigation into United Industries’ improper repairs did not uncover any rail accidents attributable to the company’s illegal activities.
The investigation into United Industries was conducted by the United States Environmental Protection Agency, Criminal Investigation Division; the Federal Bureau of Investigation; the Federal Rail Administration; and the Los Angeles Port Police, Hazardous Materials Investigations Unit.
This case was prosecuted by Assistant United States Attorneys Mark A. Williams and Joseph O. Johns of the Environmental and Community Safety Crimes Section.
Seven Romanian Nationals Plead Guilty to Racketeering Conspiracy and ATM SkimmingRead the Press Release
BOSTON – Seven Romanian nationals pleaded guilty yesterday in federal court in Boston in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New York and South Carolina.
Constantin Denis Hornea, 23; Maria Lazar, 19; Ludemis Hornea, 20; Claudiu Florea, 25; Denisa Bonculescu, 27; and Anamaria Margel, 23, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly known as RICO conspiracy, and conspiracy to use counterfeit access devices. Constantin Hornea, Lazar, and Ludemis Hornea also pleaded guilty to aggravated identity theft and money laundering conspiracy; Constantin and Ludemis Hornea also pleaded guilty to possession of device making equipment; and Florea also pleaded guilty to money laundering conspiracy. Ion Trifu, 25, pleaded guilty to conspiracy to use counterfeit access devices and money laundering conspiracy. U.S. District Court Judge William G. Young scheduled sentencing for March 15, 2018.
In May 2017, the defendants were indicted along with five others whose whereabouts remain unknown.
The defendants, except for Trifu, were members of the Hornea Crew (“Crew”), led by Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards, and making unauthorized withdrawals from the victims’ bank accounts. Over a period of 18 months, the Crew installed skimming devices and made unauthorized withdrawals in seven states, including Massachusetts. In particular, members of the Crew installed skimming devices in the following locations: Amherst, Bellingham, Billerica, Braintree, Chicopee, Quincy, Southwick, Waltham, Weymouth, and Whately, Mass.; Enfield, Conn.; Columbia, Greenville, Greenwood, Mauldin, and Saluda, S.C.; Savannah, Ga.; and Yadkinville, N.C. The Crew made unauthorized withdrawals at ATMs in approximately 29 Massachusetts towns; seven Connecticut towns; six New York towns; Salem, N.H.; and Sumter, S.C.
Members of the Hornea Crew and Trifu transferred money throughout the United States and to Romania and the People’s Republic of China. Some of those transfers were for the purchase of skimming devices and related components from abroad.
The charge of conspiracy to conduct enterprise affairs through a pattern of racketeering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and fine of $250,000. The charge of conspiracy to use counterfeit access devices provides for a sentence of no greater than five years in prison, three years of supervised release, and fine of $250,000. The charge of aggravated identity theft provides for a mandatory consecutive term of two years in prison. The charge of possession of device making equipment provides for a sentence of no greater than 15 years in prison, three years of supervised release, and a fine of $250,000. The charge of money laundering conspiracy provides for a sentence of no greater than 20 years in prison, three years or supervised, and a fine of $500,000, or twice the value of the property involved in the crime, whichever is greater. The defendants will face deportation proceedings upon completion of their sentences. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations (IRS-CI) in Boston; Massachusetts Department of Correction; U.S. Customs and Border Protection; the Amherst, Billerica, Braintree, Boston, Quincy, Southwick, Waltham, Whately, and Westwood Police Departments; Connecticut Financial Crimes Task Force, consisting of the U.S. Secret Service, U.S. Postal Service, IRS-CI, Connecticut State Police, and Greenwich Police Department; the New York City Police Department; Houston Police Department; South Carolina Law Enforcement Division; Richland County (South Carolina) Sheriff’s Department; Florence and Saluda (South Carolina) Police Departments; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran of Weinreb’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Settlement Reached in Significant Drug Diversion CaseRead the Press Release
SALT LAKE CITY – In what is believed to be the largest settlement of its kind in Utah involving allegations of drug diversion, Intermountain Healthcare has agreed to pay the United States $1 million to resolve allegations that lax controls enabled a former employee to divert controlled substances for personal use.
U.S. Attorney John W. Huber and U.S. Drug Enforcement Administration (DEA) District Agent in Charge Brian S. Besser announced the settlement Friday morning.
In conjunction with the monetary settlement, IHC has implemented a comprehensive corrective action plan to prevent, identify, and address future diversions. The settlement is not an admission of liability by Intermountain Healthcare.
“Under the law, healthcare networks such as IHC have a responsibility to ensure that controlled substances are used for patient care and are not diverted for non-medical purposes,” Huber said. “Diversion of these drugs feeds addiction, contributes to potential illegal drug sales, and fuels the opioid epidemic that has had a devastating effect on Utah and the rest of the country. We commend IHC for addressing its diversion problem and for taking steps to ameliorate future diversion by IHC personnel,” Huber said.
The settlement relates to civil claims arising from a diversion of controlled substances at a clinic and pharmacy in the Ogden area. Specifically, the United States contends that from September 2007 through March 2015, a diversion of controlled substances occurred at the clinic under DEA registration numbers for a physician and pharmacy.
A DEA investigation found that a former medical assistant of a doctor at the clinic used the physician’s DEA registration number to issue prescriptions to herself and two family members, including prescriptions for Oxycodone, Diazepam, Phentermine and Hydrocodone.
“With the burgeoning opioid epidemic sweeping across the country and the great State of Utah, the DEA takes very seriously its responsibility to ensure the public’s safety in regard to the proper prescribing and dispensing of highly-addictive controlled substances made available to our communities through the healthcare industry. DEA is committed to investigating any instances involving the unlawful diversion of powerful synthetic opioids with which many Utahan’s woefully begin their cycle of drug addiction,” Besser said today.
The United States contends, for example, that 244 prescriptions of Oxycodone 30 mg tablets (46,616 pills) were issued without a legitimate medical purpose and not in the course of the doctor’s professional practice. Another 151 prescriptions for controlled substances, totaling 11,430 pills, w ere also issued. The pharmacy filled each of the prescriptions, which were picked up by the former medical assistant. The physician and the pharmacy shared equal responsibility for ensuring the proper prescribing and dispensing of the controlled substances, the United States contends.
The Affirmative Civil Enforcement Division in the United States Attorney’s Office handled the civil action.Schererville Man SentencedRead the Press Release
HAMMOND –United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Hulian Terrell III, age 34, of Schererville, IN, was sentenced before Hammond Senior Judge James T. Moody for filing false claims and identity theft.
Terrell was sentenced to 27 months followed by 2 years of supervised release. Terrell was also ordered to pay restitution in the amount of $551,647.
According to documents in this case, the defendant pleaded guilty to filing fraudulent federal and state tax returns utilizing the names, dates of birth, and social security numbers of incarcerated individuals without their knowledge, authority, or permission. Terrell obtained the personal identifying information of these individuals by accessing various websites including Department of Corrections’ websites. The fraudulent refunds were received through the United States Mail and electronically. These fraudulent filings led to fraudulent federal and state refunds being issued in the names of these individuals, but received by the defendant.
This case was investigated by the Internal Revenue Service, Criminal Investigations Division, the United States Postal Inspection Service, the United States Secret Service, and the Social Security Administration, Office of Inspector General. The case was handled by Assistant U.S. Attorney Toi Denise Houston.
# # #
Romanian Man Sentenced for Role in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
A Romanian man was sentenced today to 29 months in prison for his participation in an international scheme involving fraudulent advertisements on online marketplaces that induced victims to send over $870,000 to conspirators for the purchase of various items that were not actually available for purchase.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran of the Middle District of Tennessee made the announcement.
Vlad Diaconu, 37, originally of Bucharest, Romania, was sentenced by Senior U.S. District Judge Marvin E. Aspen of the Northern District of Illinois, who sits in the Middle District of Tennessee by designation. Diaconu pleaded guilty to conspiracy to commit bank and wire fraud on March 28. In addition to his prison term, Judge Aspen ordered Diaconu to pay $834,841.75 in restitution.
As part of his guilty plea, Diaconu admitted that co-conspirators fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, co-conspirators responded with emails directing the victims to wire payments to specified bank accounts, which the victims believed were going to serve as escrow accounts until the victims received the vehicle they wished to purchase. In reality, these bank accounts were opened by Diaconu and his co-conspirators, who used false identities and fraudulent documents, including counterfeit passports, when opening the accounts. Twelve victims sent approximately $185,000 to accounts opened by Diaconu. Another 35 victims sent approximately $688,000 to accounts opened by Diaconu’s co-conspirators. Diaconu and his co-conspirators subsequently sent the bulk of the money to co-conspirators located overseas. The victims never received the vehicles they intended to purchase.
The case was investigated by the FBI and the Tennessee Bureau of Investigation. The case was prosecuted by Senior Counsel Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee. The Criminal Division’s Office of International Affairs also provided substantial assistance.