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11 December 2017
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.
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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.
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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.
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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.
Political Consultant Pleads Guilty to Lying to the FBI in Connection with Campaign Finance InvestigationRead the Press Release
Political Consultant Pleads Guilty to Lying to the FBI in Connection with Campaign Finance Investigation
A Philadelphia-area political consultant pleaded guilty today to making a false statement to FBI agents in connection with a campaign finance investigation. U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.
Donald Jones, 62, of Willingboro, New Jersey, was charged with this crime and related offenses in an indictment against him and co-defendant Kenneth Smukler returned by a federal grand jury sitting in the Eastern District of Pennsylvania on Oct. 24. Pursuant to the plea agreement, Jones admitted to making a false statement to the FBI arising from his participation in a falsification scheme involving unlawful contributions to Jimmie Moore’s 2012 campaign for the Democratic Party’s nomination for Member of the U.S. House of Representatives. As described in the plea memorandum, the scheme entailed Moore’s agreement to withdraw from the race in exchange for $90,000 in payments from his opponent’s campaign. The payments exceeded the $2,000 limit on contributions from one campaign to another campaign for primary elections. The payments, moreover, were paid to a company created by Moore’s campaign manager, Carolyn Cavaness, for the sole purpose of receiving the funds and repaying Moore’s campaign debts. According to the plea memorandum, the payments to that company were routed through political consulting companies run by Jones and Smukler to conceal the nature and source of the funds.
As set forth in the plea memorandum, the campaign of Moore’s opponent made a $25,000 payment to D. Jones & Associates, a political consulting company run by Jones. On or about August 30, 2012, Jones caused D. Jones & Associates to send a check to the company created by Cavaness in the amount of $25,000. The payment was disguised as a payment for Cavaness’s consulting services, even though Cavaness performed no work for Jones’ company or the campaign of Moore’s opponent. Jones understood that the purpose of the transfers was to conceal the payment of funds from the opposing campaign to Moore’s campaign in exchange for Moore’s withdrawal. According to the plea memorandum, the campaign of Moore’s opponent additionally made $65,000 in payments to Voter Link Data Systems, a political consulting company run by Smukler, and Smukler’s company subsequently sent Cavaness $65,000 in payments to conceal the nature and source of those funds as well.
According to the plea memorandum, on or about May 5, 2017, Jones made a false statement to FBI agents investigating this matter. When questioned about the $25,000 payment from his company to Cavaness’s company, Jones falsely stated to the agents that Cavaness had performed work for his company and the campaign of Moore’s opponent in exchange. According to the plea memorandum, Jones made this false statement knowingly and willfully and for the purpose of concealing from the FBI the fact that the $25,000 payment was an illegal campaign contribution.
Cavaness pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on July 25. Moore pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on Oct. 2.
The charges against the remaining co-defendant, Smukler, are still pending and a defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.
Political Consultant Pleads Guilty to Lying to the FBI in Connection with Campaign Finance InvestigationRead the Press Release
A Philadelphia-area political consultant pleaded guilty today to making a false statement to FBI agents in connection with a campaign finance investigation. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania made the announcement.
Donald Jones, 62, of Willingboro, New Jersey, was charged with this crime and related offenses in an indictment against him and co-defendant Kenneth Smukler returned by a federal grand jury sitting in the Eastern District of Pennsylvania on Oct. 24. Pursuant to the plea agreement, Jones admitted to making a false statement to the FBI arising from his participation in a falsification scheme involving unlawful contributions to Jimmie Moore’s 2012 campaign for the Democratic Party’s nomination for Member of the U.S. House of Representatives.
As described in the plea memorandum, the scheme entailed Moore’s agreement to withdraw from the race in exchange for $90,000 in payments from his opponent’s campaign. The payments exceeded the $2,000 limit on contributions from one campaign to another campaign for primary elections. The payments, moreover, were paid to a company created by Moore’s campaign manager, Carolyn Cavaness, for the sole purpose of receiving the funds and repaying Moore’s campaign debts. According to the plea memorandum, the payments to that company were routed through political consulting companies run by Jones and Smukler to conceal the nature and source of the funds.
As set forth in the plea memorandum, the campaign of Moore’s opponent made a $25,000 payment to D. Jones & Associates, a political consulting company run by Jones. On or about August 30, 2012, Jones caused D. Jones & Associates to send a check to the company created by Cavaness in the amount of $25,000. The payment was disguised as a payment for Cavaness’s consulting services, even though Cavaness performed no work for Jones’ company or the campaign of Moore’s opponent. Jones understood that the purpose of the transfers was to conceal the payment of funds from the opposing campaign to Moore’s campaign in exchange for Moore’s withdrawal. According to the plea memorandum, the campaign of Moore’s opponent additionally made $65,000 in payments to Voter Link Data Systems, a political consulting company run by Smukler, and Smukler’s company subsequently sent Cavaness $65,000 in payments to conceal the nature and source of those funds as well.
According to the plea memorandum, on or about May 5, 2017, Jones made a false statement to FBI agents investigating this matter. When questioned about the $25,000 payment from his company to Cavaness’s company, Jones falsely stated to the agents that Cavaness had performed work for his company and the campaign of Moore’s opponent in exchange. According to the plea memorandum, Jones made this false statement knowingly and willfully and for the purpose of concealing from the FBI the fact that the $25,000 payment was an illegal campaign contribution.
Cavaness pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on July 25. Moore pleaded guilty to the charge of causing false statements to the FEC in connection with this matter on Oct. 2.
The charges against the remaining co-defendant, Smukler, are still pending and a defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.
Pleasants County man sentenced for selling methamphetamineRead the Press Release
CLARKSBURG, WEST VIRGINIA – Roger Dale Doehring, of St. Marys, West Virginia was sentenced today to 15 months incarceration for a methamphetamine distribution charge, United States Attorney Bill Powell announced.
Doehring, age 54, pled guilty to one count of “Distribution of Methamphetamine - Aiding and Abetting” in August 2017. Doehring admitted to selling methamphetamine in December 2016 in Pleasants County, West Virginia.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The West Virginia State Police and the Pleasants County Sheriff’s Office investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Pittsburgh Man Charged in Interstate Murder for Hire PlotRead the Press Release
PITTSBURGH – Brad Lanese, 52, of Pittsburgh, Pennsylvania, has been arrested and charged in a criminal complaint with one count of Using Interstate Commerce Facilities with the Intent to Commit a Murder for Hire, Acting United States Attorney Soo C. Song announced today.
According to the criminal complaint, unsealed yesterday, defendant Brad Lanese and two associates – identified as C.B and his wife, L.D. - ran a large marijuana grow operation in Northern California. When Lanese and L.D. began having difficulties, Lanese was asked to leave the property. Back in Pittsburgh, Lanese contacted a confidential source for the Drug Enforcement Agency and enlisted that source to travel with him to Northern California in order to rob C.B. and L.D. of the profits from the marijuana grow operation.
On October 31, 2017, Lanese and the confidential source travelled to California. The next day, Lanese and the confidential source met with “Deeds,” a DEA operative acting in an undercover capacity who was to provide firearms and logistical support for the robbery. Lanese told “Deeds” that he no longer wanted to rob C.B., but wanted “Deeds” to murder someone instead. Lanese then hired “Deeds” to kill L.D. by suggesting that he inject L.D. with a fatal dose of heroin/fentanyl mix in the marijuana fields, and push L.D.’s body and car over the cliffs and into the Pacific Ocean. Lanese told “Deeds” that once L.D. was dead, he would be able to return to the marijuana grow operation and pay “Deeds” for the murder.
On November 14, 2017, back in Pittsburgh, Lanese confirmed to “Deeds” that he wanted L.D. to be murdered and agreed to pay $30,000 for the murder.
The defendant appeared on December 7 in federal court before U.S. Magistrate Judge Maureen P. Kelly. The government is seeking detention of the defendant pending trial. Lanese’s detention hearing is scheduled for December 12, 2017, at 10 a.m. in front of Judge Kelly.
The law provides for a maximum sentence of 10 years in prison and of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case. The Drug Enforcement Agency - Pittsburgh Division, Bureau of Alcohol, Tobacco, Firearms and Explosives - Pittsburgh Division, and the Pittsburgh Bureau of Police, with assistance from the Drug Enforcement Agency - Santa Rosa, California Division, conducted the investigation that led to the complaint against Lanese. The United States Attorney’s Office for the Northern District of California is also assisting in the prosecution of this case.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that he is guilty of an offense.
Owner of Home Health Agency Sentenced in Absentia to 80 Years in Prison for Involvement in $13 Million Medicare Fraud Conspiracy and for Filing Fraudulent Tax ReturnsRead the Press Release
The owner of a Houston home health agency was sentenced today to 80 years in prison for his role in a $13 million Medicare fraud scheme and for filing false tax returns.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region and Special Agent in Charge D. Richard Goss of the Houston Field Office of the Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
Ebong Tilong, 53, of Sugarland, Texas, was sentenced by U.S. District Judge Melinda Harmon of the Southern District of Texas. In November 2016, after the first week of trial, Tilong pleaded guilty to one count of conspiracy to commit healthcare fraud, three counts of healthcare fraud, one count of conspiracy to pay and receive healthcare kickbacks, three counts of payment and receipt of healthcare kickbacks, and one count of conspiracy to launder monetary instruments. In June 2017, Tilong pleaded guilty to two counts of filing fraudulent tax returns. Tilong failed to appear for his original sentencing, which was scheduled for Oct. 13, 2017.
According to the evidence presented at trial and Tilong’s admissions in connection with his guilty plea, from February 2006 through June 2015, Tilong and others conspired to defraud Medicare by submitting over $10 million in false and fraudulent claims for home health services to Medicare through Fiango Home Healthcare Inc. (Fiango), owned by Tilong and his wife, Marie Neba, 53, also of Sugarland, Texas. The trial evidence showed that using the money that Medicare paid for such fraudulent claims, Tilong paid illegal kickbacks to patient recruiters for referring Medicare beneficiaries to Fiango for home health services. Tilong also paid illegal kickbacks to Medicare beneficiaries for allowing Fiango to bill Medicare using beneficiaries’ Medicare information for home health services that were not medically necessary or not provided, the evidence showed. Tilong falsified medical records and directed others to falsify medical records to make it appear as though the Medicare beneficiaries qualified for and received home health services. Tilong also attempted to destroy evidence, blackmail a witness, and suborn perjury from witnesses, including a co-defendant while in the federal courthouse, the evidence showed.
According to the evidence presented at trial and his admissions to the tax offenses, from February 2006 to June 2015, Tilong received more than $13 million from Medicare for home health services that were not medically necessary or not provided to Medicare beneficiaries.
In connection with his guilty plea to the tax offenses, Tilong admitted that to maximize his gains from the Medicare fraud scheme, he created a shell company called Quality Therapy Services (QTS) to limit the amount of tax that he paid to the IRS on the proceeds that he and his co-conspirators stole from Medicare. According to his plea agreement, in 2013 and 2014, Tilong wrote almost a million dollars in checks from Fiango to QTS, purportedly for physical-therapy services that QTS provided to Fiango’s Medicare patients. The evidence showed that QTS did not provide those services. According to his plea agreement, in 2013 and 2014, Tilong’s fraudulent tax scheme caused the IRS a tax loss of approximately $344,452.
To date, four others have pleaded guilty or been convicted based on their roles in the fraudulent Medicare scheme at Fiango. Nirmal Mazumdar, M.D., of Houston, Texas, the former medical director of Fiango, pleaded guilty to a scheme to commit health care fraud for his role at Fiango. Daisy Carter, 58, of Wharton, Texas, and Connie Ray Island, 49, of Houston, Texas, two patient recruiters for Fiango, pleaded guilty to conspiracy to commit health care fraud for their roles at Fiango. Neba was convicted after a two-week jury trial of one count of conspiracy to commit health care fraud, three counts of health care fraud, one count of conspiracy to pay and receive health care kickbacks, one count of payment and receipt of health care kickbacks, one count of conspiracy to launder monetary instruments and one count of making health care false statements.
On Aug. 11, Neba was sentenced to 75 years in prison and Island was sentenced to 33 months in prison. On Oct. 3, Mazumdar was sentenced to time served with three years of home confinement. Carter is awaiting sentencing.
The case was investigated by the FBI, IRS-CI and HHS-OIG under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Trial Attorney William S.W. Chang, Senior Trial Attorney Jonathan T. Baum, and Trial Attorney Andrew Pennebaker of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Mission Man Indicted for Assault and Child Abuse ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assault of an Intimate Partner and Child Abuse.
Tristan Lee Kills The Enemy, age 21, was indicted on November 14, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 28, 2016, Kills The Enemy assaulted an intimate partner by strangulation. The Indictment further alleges that Kills The Enemy abused, exposed, tortured, tormented, and cruelly punished a child who had not attained the age of 18, on that date.
The charges are merely an accusation and Kills The Enemy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson is prosecuting the case.
Kills The Enemy was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Milton Man and Connecticut Woman Arrested for Sex TraffickingRead the Press Release
BOSTON – A Milton man and a Connecticut woman were arrested today and charged in federal court in Boston with federal sex trafficking crimes.
Duhamel Cassagnol, 30, of Milton, was charged in an indictment with committing sex trafficking by force, fraud, or coercion; engaging in a conspiracy to commit sex trafficking; and transporting an individual for prostitution. Geneiva Whaley, 23, of Connecticut, was charged in a criminal complaint with transporting an individual for prostitution. The defendants were detained following an initial appearance in federal court in Boston this afternoon.
The indictment charging Cassagnol alleges that, between approximately July 2014 and February 2016, he conspired to recruit and transport victims across state lines for the purpose of engaging in commercial sex acts, knowing that the women would be induced to engage in those acts through force, fraud, or coercion. The indictment also charges Cassagnol with transporting the victims between states with the intent that they engage in prostitution.
The complaint charging Whaley alleges that, in October 2015, she knowingly transported one of Cassagnol’s victims from Massachusetts to Connecticut with the intent that the victim would engage in prostitution. Specifically, Whaley allegedly recruited the victim, who had just been released from a detox facility, and worked with Cassagnol to keep the victim in various motels or hotels in Connecticut, which were rented in Whaley’s name. While at the motels, Whaley assisted in prostituting the victim. Cassagnol and Whaley also allegedly supplied the victim with drugs while she stayed at the motels.
The charge of sex trafficking through force, fraud, or coercion provides for a sentence of no less than 15 years and up to life in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. The charge of conspiracy to commit sex trafficking provides for a sentence of up to life in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. For first-time offenders, the charge of transporting an individual for prostitution provides for a sentence of up to 10 years in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement today. Assistance was provided by the Massachusetts State Police, Lexington and Needham Police Departments, and Vernon (Connecticut) Police Department. Assistant U.S. Attorney Brian A. Pérez-Daple of Weinreb’s Civil Rights Enforcement Team is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Midland Woman Pleads Guilty to Stealing over $1.5M from EmployerRead the Press Release
In Midland today, 47-year-old bookkeeper Mary Elisa “Lisa” Salazar pleaded guilty to stealing over $1.5 million from her employer, an oil well leasing company in Midland, announced United States Attorney Richard L. Durbin, Jr.; Internal Revenue Service-Criminal Investigation Acting Special Agent in Charge Troy Caldron; and, Federal Bureau of Investigation Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
Appearing before U.S. Magistrate Judge David Counts, Salazar pleaded guilty to a two-count Information charging her with one count of wire fraud and one count of making and filing a false Income Tax return.
By pleading guilty, Salazar admitted that from 2011 to 2016, she embezzled funds from the business by writing unauthorized company checks to herself. She further admitted to concealing her actions by either falsifying bank reconciliation statements or omitting the checks in the internal accounting system. The estimated loss to the company because of her illegal scheme is $1,588,518.
Salazar also admitted to filing false Income Tax returns for calendar years 2011 to 2016 in which she substantially understated her total income, adjusted gross income and taxable income. According to court records, Salazar owes the Internal Revenue Service an estimated $540,000 in unpaid taxes due to her underreporting.
Salazar remains on bond pending sentencing. No sentencing date has been scheduled. Salazar faces up to 20 years in federal prison for the wire fraud charge and up to three years in federal prison for the tax charge.
The Internal Revenue Service-Criminal Investigation and Federal Bureau of Investigation conducted this investigation.
Michigan Man SentencedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Rashawn Moffitt, age 31, of Niles, Michigan, was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for possessing a firearm by a convicted felon.
Moffitt was sentenced to 54 months imprisonment followed by two (2) years of supervised release.
According to documents in this case, On May 8, 2017, South Bend Police encountered Rashawn Moffitt in a parking lot as he got out of the driver’s seat of a car. On the driver’s floorboard of that car was a loaded handgun with an extended magazine.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the South Bend Police Department. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
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Michael J.W. Potter Convicted of Conspiring to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. - Following a three-day trial before the Honorable J. Ronnie Greer, U.S. District Judge, a jury convicted Michael J.W. Potter, 36, of Kingsport, Tennessee, of conspiracy to distribute 50 grams or more of methamphetamine.
Sentencing is set for 9:00 a.m., April 2, 2017, in U.S. District Court in Greeneville. Potter faces a minimum sentence of 10 years up to a maximum of life in prison. There is no parole in the federal system.
Evidence presented at trial revealed that an investigation into a large scale methamphetamine distribution ring in northeast Tennessee and southwest Virginia began in 2015. In June 2016, a Tennessee Highway Patrol Officer stopped two members of the organization shortly after they delivered several pounds of crystal methamphetamine to individuals in Kingsport, Tennessee. That stop led to the execution of search warrants by the Second Judicial Drug Task Force working with the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Tennessee Bureau of Investigation (TBI), resulting in the seizure of nearly five kilograms of crystal methamphetamine. Information obtained through the traffic stop and search warrants allowed agents to identify numerous members of the organization, which was supplied primarily by co-defendant, Nathan Hogan of Villa Rica, Georgia.
Hogan and others, including Potter, were responsible for transporting hundreds of pounds of crystal methamphetamine, a highly addictive controlled substance, into Sullivan County, Tennessee and the surrounding area for distribution. Of the 25 individuals indicted in this conspiracy, Potter was the only one to proceed to trial. The other 24 defendants pleaded guilty, with the exception of Shawn Dumitras, who died prior to arrest.
Law enforcement agencies participating in this joint investigation were the Second Judicial District Drug Task Force, Sullivan County Sheriff’s Office, Kingsport, Police Department, TBI, ATF and DEA. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Mexican Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Raul Meza, age 48, and a citizen of Mexico, was sentenced today to time served (113 days jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Meza admitted that on August 18, 2017, a Border Patrol agent found him walking on a road in Champlain, New York, 250 yards south of the border between the United States and Canada. Meza had twice been removed from the United States to Mexico, first in 2001 and again in 2010. Meza did not have authorization to return to the United States.
Following the sentencing, Meza was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Douglas Collyer.
Merrillville Man SentencedRead the Press Release
HAMMOND –United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Javon Kennedy, 43, of Merrillville, Indiana, was sentenced on December 7, 2017 by District Court Senior Judge James T. Moody for possession with intent to distribute a controlled substance.
Kennedy was sentenced to 41 months imprisonment followed by 2 years of supervised release.
According to documents filed in this case, on January 24, 2017, defendant was stopped for speeding in Hobart, Indiana. As the officer approached defendant’s car he noticed defendant’s breathing was heavy and his hands were shaking. Defendant retrieved his driver’s license, registration and insurance from the glove box. The officer noticed a white powdery residue near the center cup holder and asked defendant and his passenger if there was anything illegal in the car. Kennedy pointed to his female passenger stating “She has it." Officers recovered 25 grams of cocaine from defendant and the passenger.
This case was investigated by the Federal Bureau of Investigation GRIT in cooperation with the Hobart Police Department. This case was prosecuted by Assistant United States Attorney Thomas Mahoney.
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Martin County Residents Indicted for Production and Distribution of Child PornographyRead the Press Release
Two Martin County residents were indicted yesterday by a federal grand jury for producing child pornography. One was also charged with the distribution of child pornography.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ken Mascara, Sheriff, St. Lucie County Sheriff's Office (SLCSO), and William D. Snyder, Sheriff, Martin County Sheriff's Office (MCSO), made the announcement.
Joshua Lane Rogers, 34, and Richard William Lockley, 34, both of Stuart, were charged in a superseding indictment. Both defendants have been detained pending trial as a risk of flight and danger to the community.
More specifically, the 10 count superseding indictment charges Rogers with five counts of production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2251(a) and (e); and five counts of distribution production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, 2252(a)(2) and (b)(1). Lockley is charged together with Rogers in one count of production of visual depictions of sexual exploitation of minors. If convicted of the production or distribution charges, Rogers and Lockley face a mandatory minimum sentence of 15 years up to 30 years in prison, up to a lifetime of supervised release, and mandatory sex offender registration.
According to the criminal complaints filed in this matter, on September 3, 2017, SLCSO deputies responded to a “Missing Person Juvenile/ Runaway” call for a missing 16-year-old minor. On September 27, 2017, Rogers was arrested when he was located at a Stuart Dunkin Donuts with the minor victim. After meeting her online, Rogers offered the minor victim to come live with him. A forensic analysis of Roger’s cellular smart phone revealed that Rogers had recorded sexually explicit activity with the minor victim on numerous occasions, using his cellular smartphone. Detectives later discovered that Rogers distributed several of the images and videos to other individuals, via MMS text communications, and a social media networking program. Detectives found that Rogers and another male produced a video of sexually explicit conduct and activity with the minor victim. MCSO detectives identified this male to be Lockley and arrested him on November 15, 2017. Detectives executed a federal search warrant on Lockley’s cellular smartphone, locating videos of Rogers and Lockley engaged in sexually explicit activity with the victim, produced inside of Rogers’ Martin County residence.
Mr. Greenberg commended the investigative efforts of the FBI, SLCSO and the MCSO for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
An indictment is only an accusation, and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Sentenced to Prison for $1 Million Arson SchemeRead the Press Release
RICHMOND, Va. – A Sandston man was sentenced today to 57 months in prison for his role in a long-running arson for profit scheme.
According to court documents, Vershawn Jackson, 39, and co-conspirators participated in an insurance fraud scheme spanning 17 years across two states, in which the conspirators purchased cars or mobile homes at auction, or signed leases at rental properties, insured the property, and set fire to the insured property to collect insurance proceeds. In many instances, the time between the purchase of insurance and the fire was mere weeks or even days. Over the course of the scheme, defrauded insurance companies paid out over $1 million on claims by the conspirators.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Henry Rosenbaum, Henrico County Fire Marshal, and David Creasey, Richmond Fire Marshal, made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorneys David V. Harbach, II, Michael C. Moore, and Janet Jin Ah Lee 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. 3:17-cr-29.
Man Sentenced to 78 Months in Federal Prison for Illegally Manufacturing Firearms That Were Sent to MexicoRead the Press Release
DALLAS — Gary Busby, 65, formerly of Flower Mound, Texas, was sentenced this morning by U.S. District Judge Sam A. Lindsay to 78 months in federal prison for his role in a conspiracy to illegally manufacture firearms that were sent to Mexico, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Busby was convicted in March 2017, following a two-week jury trial, on one count of conspiracy to manufacture firearms without a license and four counts of structuring financial transactions to evade reporting requirements. Judge Lindsay ordered Busby to surrender to the Bureau of Prisons on March 6, 2018.
According to evidence presented at trial, over the course of 2010 and 2011, Busby manufactured hundreds of AR-15 and AK firearm receivers into fully functional firearms and made thousands of dollars doing so. Law enforcement found approximately fifty of these firearms. Some were recovered smuggled into Mexico while the rest were recovered by Mexican authorities.
Evidence also showed that from approximately December 2010 to September 2012, Busby purchased hundreds of postal money orders at dozens of post offices in the Dallas-Fort Worth area, in an effort to hide the proceeds of his illegal firearm activity. Busby would only purchase two $1,000 money orders at a time at one post office, using cash, and would travel to up to six post offices in one day, purchasing $2,000 in money orders at each. Doing so, he was knowingly evading the federal reporting requirement for when a customer purchases $3,000 or more in money orders. In 2011 alone, Busby purchased approximately $236,000 in postal money orders, in order to hide the money made manufacturing firearms. Evidence presented to the jury showed that he knowingly structured these cash transactions.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Inspection Service investigated. Assistant U.S. Attorney Kate Rumsey and Criminal Chief Chad Meacham prosecuted.
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Man Pleads Guilty to Tax Avoidance ConspiracyRead the Press Release
HOUSTON – A local bar owner has entered a guilty plea to conspiring with others to defraud the United States by failing to pay taxes on income he received from vending machines located in the bars he owned, announced Acting U.S. Attorney Abe Martinez.
In the plea agreement filed in the record of the case, Matthew J. Mitchell admitted he had partial ownership of multiple bars in the Houston area that operated under the name “On the Rox.” Mitchell conspired with others to conceal the cash income from vending machines located in the bars from the IRS.
According to the plea agreement, Mitchell admitted he failed to report to the IRS a total of $276,806 in income for tax years 2010, 2011 and 2012. Mitchell’s failure to pay taxes on this income resulted in a tax loss to the United States of $63,386.
U.S. District Judge Sim Lake accepted the plea and has set sentencing for March 15, 2018. At that time, Mitchell will face up to five years in federal prison and a possible $250,000 maximum fine. Mitchell was permitted to remain on bond pending that hearing.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Luxury Yacht Captain Indicted in Death of Boater off Westerly, Rhode IslandRead the Press Release
PROVIDENCE, RI – A federal grand jury in Providence, R.I., on Wednesday returned an indictment charging the operator of 60-foot luxury yacht with seaman’s manslaughter in the death in September 2015 of the 81-year-old operator of a 23-foot powerboat.
It is alleged that on September 22, 2015, Cooper “Chick” Bacon, 78, of Cape May, N.J., failed to take precautions required of the ordinary practice of a seaman when he was at the helm of a yacht as it made its way from a boat show in Newport, R.I., to boat show in Stamford, Conn. The Princess 60 yacht collided with a 23-foot powerboat, the Peggy K, in waters off Westerly, R.I., killing its sole occupant, Walter S. Krupinski, of Stonington, Conn. The collision occurred in Fishers Island Sound, on the waters off Naptree Point in the town of Westerly.
The indictment of Cooper Bacon is announced by Acting United States Attorney Stephen G. Dambruch; Admiral Steven Poulin, Commander of the First Coast Guard District, United States Coast Guard, and Richard Cox, Special Agent in Charge, Coast Guard Investigative Service, New England Region.
According to the indictment, it is alleged that, among other things, Bacon failed to take precautions required by the ordinary practice of seamen; adequately assess the risk of collision; proceed at a safe speed; post his First Mate to look-out; and properly overtake, give-way and steer well clear of the Peggy K.
An indictment is merely an allegation 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.
Bacon is scheduled to be arraigned on December 19, 2017, before U.S. District Court Magistrate Judge Patricia A. Sullivan.
Seaman’s manslaughter is punishable by statutory penalties of up to 10 years imprisonment; 3 years supervised release; and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The matter was investigated by the Coast Guard Investigative Service.
Acting United States Attorney Stephen G. Dambruch thanks the many local and state agencies in Rhode Island and Connecticut that provided assistance and information to the United States Attorney’s Office in Rhode Island and to the Coast Guard Investigative Service during the investigation of this matter.
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Louisville-area drug trafficking organization dismantledRead the Press Release
Alleged to have sold large quantities of methamphetamine in Indiana and Kentucky
New Albany – Josh J. Minkler, United States Attorney for the Southern District of Indiana and Russell M. Coleman, United States Attorney for the Western District of Kentucky, announced today the dismantling of a large drug trafficking organization (DTO) selling methamphetamine in Indiana and Kentucky.
“Drug trafficking brings gun violence that many of our Midwestern communities are experiencing,” said Minkler. “Those who choose to sell drugs in our neighborhoods will experience the full brunt of federal law enforcement and realize the Ohio River will not stifle or cooperative effort between law enforcement agencies.”
“The Department of Justice and our law enforcement partners stood shoulder to shoulder last week to promise intelligence-driven targeting of these violent drug trafficking organizations harming this great city,” said U.S. Attorney Russell Coleman. “Today’s arrests are yet another deposit on this promise; stay tuned.”
Those charged in the Southern District of Indiana with conspiracy to distribute methamphetamine include: Clifton Jones, 31, Gregory Churchill, 33, and Stanley Duke, Jr., 41 all from Louisville; Billy Dale Sears, 44, Harry Edelen, 44, Roger Carroll, Jr., 47, from New Albany, Indiana; and Chad Albertson, 40, from Salem, Indiana. Duke faces an additional charge of possession of a firearm by a convicted felon.
The indictment alleges that Billy Dale Sears was the leader and supervisor of the DTO which conspired to distribute large quantities of methamphetamine. Sears would obtain the methamphetamine from Clifton Jones and Gregory Churchill who both lived in Louisville. Sears would then distribute the methamphetamine to mid-level dealers in New Albany, Jeffersonville, Salem and Louisville for redistribution throughout Southwestern Indiana and Northern Kentucky.
Throughout the conspiracy, it is alleged that the DTO sold methamphetamine on a “front’ basis, where defendants provided large quantities of methamphetamine on consignment to distributors. Payment was received after the sale by other distributors. The defendants also used telephones, using code language and text messages to discuss matters relative the trafficking operation.
In a separate indictment, returned by a grand jury in Louisville on December 5, 2017, and unsealed today, eleven defendants, all from Louisville, were charged in a single count with conspiring with each other to possess with the intent to distribute 50 grams or more of methamphetamine, a Schedule II controlled substance.
Defendant Clifton Jones additionally faces charges in the Western District of Kentucky, along with co-defendants Dontay L. Rice, Eric R. Estey, 35, Dandre L. Taylor, 35, Odell P. Smith, Jr., 34, William C. Freeman, 32, James E. Hall, 33, Chad J. Heiser, 37, Clarence W. Rice, Jr., Alex M. Bowles, 25, and Joseph R. Willis, 21.
All but defendant Heiser were arrested Thursday, and are in federal custody. Defendants charged in the WDKY are scheduled for an initial appearance before Magistrate Judge Dave Whalin, in Louisville, at 2:00pm. Defendants charged in the Southern District of Indiana were scheduled to appear Friday morning before Magistrate Judge Van T. Willis.
This case was investigated by the Federal Bureau of Investigation in Indiana and Kentucky, IRS Criminal Investigation, ATF, United States Marshal Service, Jeffersonville Police Department, New Albany Police Department, Clarksville Police Department, Clark County Sheriff’s Department, Harrison County Sheriff’s Department, Indiana State Police and the Louisville Metro Police Department.
“Working collaboratively with our federal, state, and local partners we are able to target, disrupt and dismantle criminal enterprises such as this that use violence in the commission of their illegal activities so they can no longer terrorize our communities,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division.
“The FBI and its partners remain dedicated to disrupting and dismantling the most violent offenders and organizations through intelligence-driven investigations,” said Amy S. Hess, Special Agent in Charge FBI Louisville. “Our goal remains the same: stop the violence, get drugs and weapons off the streets, and deliver justice for the people who live in the communities we serve.”
According to Assistant United States Attorney Lauren M. Wheatley who is prosecuting this case for the Southern District of Indiana and Assistant United States Attorney J. Scott Davis, from the Western District of Kentucky, all defendants face ten years to life if convicted.
An indictment is merely a charge and not evidence of guilt. All defendants are considered innocent until proven guilty in federal court.