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7 December 2017
Gloversville Man Sentenced for Dealing Firearms Without a LicenseRead the Press Release
ALBANY, NEW YORK – Shelley L. Bovee, age 63, of Gloversville, New York, was sentenced today to 3 years of probation for dealing firearms without a license.
The announcement was made by Acting United States Attorney Grant. C. Jaquith and Ashan M. Benedict, Special Agent In Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New York Field Division.
Senior United States District Judge Frederick J. Scullin, Jr. also sentenced Bovee to pay a $2,000 fine and perform 50 hours of community service.
As part of his August 23, 2017 guilty plea, Bovee admitted that on three occasions in 2016, he sold a total of five firearms, including two .22 caliber rifles, a .30-30 caliber long gun, a .410 caliber shotgun, and an AR-15 variant rifle. Bovee admitted to selling these firearms for a profit without having the required federal firearms license.
This case was investigated by the ATF and prosecuted by Special Assistant United States Attorney Jason W. White.
Former lumber executive pleads guilty for embezzling over $800,000Read the Press Release
BECKLEY, W.Va. – A former Chief Financial Officer for a Beckley lumber company who embezzled over $800,000 pleaded guilty yesterday, announced United States Attorney Carol Casto. James Matthew Miller, 42, entered his guilty plea to two counts of wire fraud.
Miller formerly worked as an executive for a lumber company until September 2013. In his role as Chief Financial Officer, his responsibilities included oversight of log inventories from vendors. From approximately December 31, 2007, to August 30, 2013, Miller admitted that he issued payments to a sham vendor, a close friend of Miller’s, and falsely inflated log inventories to conceal the fraud. He created a fictitious log vendor that has never hauled or delivered logs to the lumber company. Miller also admitted that he created false payment requests and then drafted and signed checks from the lumber company to the fake vendor. The vendor cashed the checks or deposited the checks in his bank account, then provided Miller with the money, minus a small amount Miller permitted the vendor to keep. During the course of the fraud, Miller was responsible for 160 checks totaling $822,396.63 from the company to the sham vendor. Miller admitted that he concealed the fraud and committed wire fraud by submitting company reports based on artificially inflated log inventories, and then emailed the reports to a lumber mill manager in Tennessee and a BB&T in Georgia.
Miller faces up to 20 years in federal prison and a fine of up to $250,000 on each count when he is sentenced on March 15, 2018.
The FBI conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. United States District Judge Irene C. Berger presided over the plea hearing.
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Former UVA Football Player Sentenced to 40 years for $10 Million FraudRead the Press Release
RICHMOND, Va. – Merrill Robertson, Jr., of Chesterfield, was sentenced today to 40 years in prison for his role in a $10 million fraud scheme.
According to court records and evidence presented at trial, Robertson, 37, started Cavalier Union Investments, LLC, with co-conspirator Sherman Carl Vaughn. From 2009-2016, Robertson and Vaughn made numerous misrepresentations to induce individuals to invest with their company, including telling them they could rollover their retirement savings. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union Military Academy, the University of Virginia, and in the National Football League, while Vaughn focused on developing investment opportunities.
As a result of this conspiracy, Robertson and Vaughn fraudulently obtained more than $10 million from over 60 investors, spending much of the money on their own personal living expenses, including mortgage and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.
Once Robertson began having trouble raising new investor capital, he became involved in a loan fraud scheme. Robertson approached Cavalier investors and others and suggested that he could help them obtain loans and lines of credit. Robertson and his conspirators then submitted falsified loan applications to banks and credit unions, which included false statements about the borrowers’ personal financial status, the purpose of the loan, and whether the loan was secured by collateral.
On August 24, 2017, a federal jury convicted Robertson of fifteen offenses, including: conspiracy to commit mail and wire fraud; conspiracy to commit bank fraud; five counts of mail fraud; two counts of wire fraud; four counts of bank fraud; and two counts of money laundering.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after the sentencing by U.S. District Judge John A. Gibney, Jr. The case was formerly prosecuted by Assistant U.S. Attorneys Katherine Lee Martin and Stephen E. Anthony.
The Virginia State Corporation Commission Division of Securities and Retail Franchising assisted with the investigation.
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. 3:16-cr-33.
Former Rochester Postal Employee Sentenced for Stealing Smartphones from the MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Bobby Bullard, Jr., 35, of Rochester, NY, who was convicted of theft by government employee, was sentenced to 90 days in jail and one year supervised release by U.S. District Judge David G. Larimer. The defendant was also ordered to pay $648 in restitution for a stolen cell phone.Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that the defendant worked as a Mail Handler Associate at the U.S. Mail Processing and Distribution Center in Rochester. While so employed, Bullard was seen rifling through packages that he was supposed to be sorting. Special Agents from the Postal Service’s Office of Inspector General conducted surveillance on three separate occasions and recorded Bullard taking packages containing smart phones off the sorting conveyor belt. Agents watched as the defendant covertly opened the packages, removed the smart phones inside, put them in his pocket, and then discarded the empty packaging materials. Agents recovered several cell phones from Bullard at the time of contact and also recovered discarded phone packages. Bullard is no longer a Postal Service employee.
In sentencing the defendant, Judge Larimer noted that the public relies upon the Postal Service as well as the honesty of its workers.
The sentencing is the culmination of an investigation by Special Agents of the United States Postal Service, Office of Inspector General, under the direction of Special Agent-in-Charge is Kenneth Cleevely.
Former PA Police Officer Pleads Guilty to Mail FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland –Marco DeCamillo, age 41, of Reading, Pennsylvania, pleaded guilty today to one count of mail fraud stemming from the sales of misbranded body armor.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Special Agent in Charge Marlon V. Miller of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Philadelphia and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, De Camillo was a former police officer in West Reading, PA. During his tenure as a police officer, DeCamillo also owned and operated a business called Mad Dragon Tactical (MDT). MDT sold law enforcement tactical gear, including body armor rifle plates, primarily on auction and shopping websites. DeCamillo, through MDT, sold approximately $169,000 worth of body armor that was falsely classified as certified by the National Institute of Justice (NIJ). The NIJ conducts ballistic testing on body armor.
DeCamillo falsely claimed that certain MDT body armor shields would protect against armor piercing rounds, and that certain products were made with the more robust HY80 and A4600 Steel. DeCamillo used his status as a police officer to sell the misbranded body armor rifle plates, understanding that several of his buyers were in law enforcement and/or military or defense and were relying on DeCamillo’s representations regarding the quality and safety of his products.
According to the plea agreement, on December 17, 2015, a defense contractor and NIJ accredited laboratory (“victim lab”) contacted the FBI with a complaint regarding the misuse of one of their ballistic data test sheets by MDT. The FBI verified that DeCamillo, through MDT, had advertised online a set of body armor plates with altered ballistic test sheet from the victim lab that had been completed in 2013. The original 2013 test sheet provided the results of ballistic testing on a ballistic test shield, not steel body armor plates as advertised by MDT. FBI agents viewed several MDT listings online and observed photographs of altered ballistic test sheets uploaded to each listing.
In January and February 2016, the FBI in Maryland set up controlled purchases of the body armor online from MDT through an undercover identity. All three shipments purchased listed DeCamillo’s home address in West Reading, PA as the return address and were delivered from Pennsylvania to Maryland via US Mail. Inside each package was a hard copy of the altered ballistic test sheet (originating from the victim lab). On the HY80 altered ballistic test sheet there was an additional hand-written note in the bottom margin stating, “Note-During testing Armor plate stopped (2) .308 Armor piercing Black Tip AP and (3) 7.62x39 Chinese Steel Core Armor Piercing AP rounds.”
A search warrant was conducted on DeCamillo’s residence and numerous ballistics sheets that had been fraudulently altered with “white out” or other redactions were recovered from the residence.
DeCamillo was interviewed by the FBI and admitted that he knew that his MDT body armor was not NIJ certified.
DeCamillo faces a maximum sentence of 20 years in prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for March 8, 2018 at 9:15 a.m.
Acting United States Attorney Stephen M. Schenning commended the HSI and FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Rachel M. Yasser who is prosecuting the case.
Former North Charleston, South Carolina, Police Officer Michael Slager Sentenced to 20 Years in Prison for Federal Civil Rights OffenseRead the Press Release
Former North Charleston, South Carolina, Police Department (NCPD) Officer Michael Slager, 36, was sentenced to 20 years in prison today for his commission of a federal civil rights offense during his fatal shooting of Walter Scott, Jr. on April 4, 2015. This sentence resulted from the Court’s determinations that Slager’s actions in shooting Mr. Scott constituted second-degree murder, and his subsequent conduct constituted obstruction of justice as defined by federal sentencing guidelines.
Attorney General Jeff Sessions, Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Beth Drake of the District of South Carolina, Special Agent in Charge Alphonse “Jody” Norris of the FBI’s Columbia Division, Solicitor Scarlett A. Wilson of the Ninth Judicial Circuit, and Chief Mark Keel of the South Carolina Law Enforcement Division (SLED) announced today’s sentence by U.S. District Judge David C. Norton.
According to documents filed in connection with the guilty plea entered on May 2, 2017, Michael Slager, while acting as an NCPD Officer, willfully used deadly force on Walter Scott even though it was objectively unreasonable under the circumstances. Slager had stopped Scott’s vehicle after observing that a brake light was not working. During the stop, Scott fled on foot and Slager pursued him. During the foot chase, Slager deployed his Taser and Scott fell to the ground. Scott managed to get off of the ground and again run away. Scott was unarmed and running away when Scott fired eight shots at him from his department-issued firearm. Five shots hit Scott, with all of the bullets entering from behind. Scott died as a result of the injuries from Slager’s gunshots.
“Law enforcement officers have the noble calling to serve and protect,” Attorney General Sessions said. “Officers who violate anyone’s rights also violate their oaths of honor, and they tarnish the names of the vast majority of officers, who do incredible work. Those who enforce our laws must also abide by them—and this Department of Justice will hold accountable anyone who violates the civil rights of our fellow Americans. On behalf of the Department of Justice, I want to offer my condolences to the Scott family and loved ones.”
“This state, this nation, owe a tremendous thanks to the Scott family for their commitment to see this case through,” said U.S. Attorney Drake. “Their grace, their commitment are a lesson for us all. The South Carolina Law Enforcement Division, with the support of the FBI, conducted a thorough investigation that enabled us to build an excessive force case against former officer Michael Slager. I am so proud of the work put into this case by the dedicated law enforcement, victim advocates and trial teams at the state and federal level.”
“When a law enforcement officer—who swears an oath to protect and serve—violates the civil rights of an individual, it erodes the public’s trust in the entire law enforcement community,” said Special Agent in Charge Norris. “The FBI will always respond to these acts and support our state and local partners, like the South Carolina Law Enforcement Division (SLED), as we all strive to ensure the perpetrator meets justice. The excellent work of SLED, the United States Attorney’s Office, and the Civil Rights Division of the Department of Justice in bringing this matter to a close is to be commended.”
The federal case was prosecuted by Assistant U.S. Attorneys Nathan Williams and Alyssa Richardson of the District of South Carolina, Special Litigation Counsel Jared Fishman, and Trial Attorney Rose Gibson of the Civil Rights Division of the Department of Justice. The case was investigated by the FBI’s Columbia Division and the South Carolina Law Enforcement Division. The state case is being prosecuted by Scarlett A. Wilson and the Office of the Solicitor of the Ninth Judicial Circuit.
Former North Charleston, South Carolina, Police Officer Michael Slager Sentenced to 20 Years in Prison for Federal Civil Rights OffenseRead the Press Release
WASHINGTON – Former North Charleston, South Carolina, Police Department (NCPD) Officer Michael Slager, 36, was sentenced to 20 years in prison today for his commission of a federal civil rights offense during his fatal shooting of Walter Scott, Jr. on April 4, 2015. This sentence resulted from the Court’s determinations that Slager’s actions in shooting Mr. Scott constituted second-degree murder, and his subsequent conduct constituted obstruction of justice as defined by federal sentencing guidelines.
Attorney General Jeff Sessions, Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Beth Drake of the District of South Carolina, Special Agent in Charge Alphonse “Jody” Norris of the FBI’s Columbia Division, Solicitor Scarlett A. Wilson of the Ninth Judicial Circuit, and Chief Mark Keel of the South Carolina Law Enforcement Division (SLED) announced today’s sentence by U.S. District Judge David C. Norton.
According to documents filed in connection with the guilty plea entered on May 2, 2017, Michael Slager, while acting as an NCPD Officer, willfully used deadly force on Walter Scott even though it was objectively unreasonable under the circumstances. Slager had stopped Scott’s vehicle after observing that a brake light was not working. During the stop, Scott fled on foot and Slager pursued him. During the foot chase, Slager deployed his Taser and Scott fell to the ground. Scott managed to get off of the ground and again run away. Scott was unarmed and running away when Scott fired eight shots at him from his department-issued firearm. Five shots hit Scott, with all of the bullets entering from behind. Scott died as a result of the injuries from Slager’s gunshots.
“Law enforcement officers have the noble calling to serve and protect,” Attorney General Sessions said. “Officers who violate anyone’s rights also violate their oaths of honor, and they tarnish the names of the vast majority of officers, who do incredible work. Those who enforce our laws must also abide by them—and this Department of Justice will hold accountable anyone who violates the civil rights of our fellow Americans. On behalf of the Department of Justice, I want to offer my condolences to the Scott family and loved ones.”
“This state, this nation, owe a tremendous thanks to the Scott family for their commitment to see this case through,” said U.S. Attorney Drake. “Their grace, their commitment are a lesson for us all. The South Carolina Law Enforcement Division, with the support of the FBI, conducted a thorough investigation that enabled us to build an excessive force case against former officer Michael Slager. I am so proud of the work put into this case by the dedicated law enforcement, victim advocates and trial teams at the state and federal level.”“When a law enforcement officer—who swears an oath to protect and serve—violates the civil rights of an individual, it erodes the public’s trust in the entire law enforcement community,” said Special Agent in Charge Norris. “The FBI will always respond to these acts and support our state and local partners, like the South Carolina Law Enforcement Division (SLED), as we all strive to ensure the perpetrator meets justice. The excellent work of SLED, the United States Attorney’s Office, and the Civil Rights Division of the Department of Justice in bringing this matter to a close is to be commended.”
The federal case was prosecuted by Assistant U.S. Attorneys Nathan Williams and Alyssa Richardson of the District of South Carolina, Special Litigation Counsel Jared Fishman, and Trial Attorney Rose Gibson of the Civil Rights Division of the Department of Justice. The case was investigated by the FBI’s Columbia Division and the South Carolina Law Enforcement Division. The state case is being prosecuted by Scarlett A. Wilson and the Office of the Solicitor of the Ninth Judicial Circuit.
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Former Head of Niagara Falls Housing Authority Pleads Guilty to Stealing Government Funds; Son and Daughter-In-Law Also ConvictedRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. –U.S. Attorney James P. Kennedy, Jr. announced today that Stephanie W. Cowart, 58, of Grand Island, NY, pleaded guilty to theft concerning programs receiving federal funds before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine. In addition, Cowart’s son and daughter-in-law, Allen, 31, and Fredia, 28, both of Niagara Falls, NY, pleaded guilty to a misdemeanor charge of theft of government funds which carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Russell T. Ippolito, who is handling the case, stated that between 1997 and July 21, 2016, Stephanie Cowart served as Executive Director of the Niagara Falls Housing Authority (NFHA), an organization that has received federal funding. Between October 2013 and January 2015, Stephanie Cowart, being an agent of a state authority, and being aided by Allen and Fredia Cowart, stole $6,000 from the NFHA.
The Niagara Area Foundation (NAF) was established in 2000 by citizens of Niagara County who were employed in the private and non-profit sectors, to provide support and charity-oriented philanthropic initiatives for residents in Niagara County. Allen and Fredia Cowart, on behalf of People and Possibilities, Inc., sought and obtained a $6,000 grant from NAF, with the assistance of Stephanie Cowart. The money was to be used for “A Better Me,” a project that was to “teach children and youth the importance of proper etiquette, what bullying is and what they can do about it and to teach educational empowerment tools.” The NAF grant proceeds for the “A Better Me” project were deposited directly into the NFHA’s operating account. The NFHA then paid Allen and Fredia Cowart for work purportedly done on the project. However, Allen and Fredia Cowart never actually conducted any presentations related to the “A Better Me” project.
In addition, between October 2013 and June 2014, aided by his mother, Allen Cowart defrauded the NFHA and the New York Office of Children and Family Services (NYOCFS). Allen Cowart falsely claimed that he was performing the work of two teachers under the Advantage After School Program and was paid more than two times the normal hourly pay rate for one teacher position. The Advantage After School Program is funded, in part, through a contribution of federal Temporary Assistance to Needy Families (TANF) funds to New York State.
Allen Cowart was appointed to the temporary position of Teacher, under the Advantage After School Program, October 1, 2013 for the duration of the school year. The salary associated with this appointment was $23 an hour. However, Stephanie Cowart directed that effective October 23, 2013, her son was to be paid an hourly rate of $50. During the time period that Allen Cowart was paid a $50 hourly pay rate, he received $11,583 more than he would have, had he been paid the $23 hourly pay rate.
“As the leader of the Niagara Falls Housing Authority, Stephanie Cowart was obligated to act as a responsible steward of these funds and to use them to better the lives of residents and the community as a whole,” said U.S. Attorney Kennedy. “Instead, the defendant misused her position to ensure that the only improvements realized through her administration of these funds were to the bank balances of her family members.”
“Stephanie Cowart used her power as the Executive Director of the Niagara Falls Housing Authority to enrich herself and members of her family,” said Adam S. Cohen, Special Agent-in-Charge of the FBI’s Buffalo Division. “She failed to honor the public position she held.”
"In a blatant abuse of power, longtime executive director of the Niagara Falls Housing Authority, Stephanie Cowart failed the very people she was hired to assist by diverting public funds to her relatives through exorbitant hourly wages and grants," State Comptroller Thomas P. DiNapoli said. "My investigators brought this case to our partners in law enforcement, and I thank U.S. Attorney James P. Kennedy, Jr., the U.S. Department of Housing and Urban Development's Inspector General, and the FBI for their diligent work in the fight against public corruption."
The pleas are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary; and the Office of New York State Comptroller Thomas P. DiNapoli, Division of Investigations.
Sentencing for the defendants is scheduled for April 5, 2018 at 12:00 p.m. before Judge Arcara.
Former Bay Area Resident Indicted in Investment Fraud SchemeRead the Press Release
SAN FRANCISCO – A former Bay Area resident was arrested yesterday in Barnstable, Massachusetts on charges related to a long-running investment fraud scheme. John Bryan Murphy was charged on November 30, 2017, by a federal grand jury in San Francisco with wire fraud and money laundering announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The indictment was unsealed late yesterday following Murphy’s arrest.
According to the indictment, between 2012 and 2017, Murphy, 44, who currently resides in Massachusetts, solicited investments from numerous individuals on the premise that their money would be professionally invested. After receiving these solicitations, several victim investors provided funds to Murphy for the purpose of allowing him to invest those funds on their behalf. In fact, Murphy primarily used these “investments” to support his personal lifestyle, to speculate on the stock market in an account in his name, and/or to repay other victims a portion of their investments.
The indictment alleges that Murphy made payments to various victims that were designed to lull them into a false sense of security, lead them to believe that the promises made to them would be fulfilled, postpone or prevent the victims’ complaints to law enforcement, conceal and prevent detection of the scheme and artifice, and induce victims to “invest” more money with Murphy. The indictment alleges that Murphy obtained over $700,000 in fraudulently solicited funds from victims of the scheme.
The indictment charges Murphy with ten counts of wire fraud, in violation of 18 U.S.C. § 1343, and two counts of money laundering, in violation of 18 U.S.C. § 1957.
After his arrest, Murphy made his initial appearance in United States District Court in Boston, Massachusetts, and was detained pending further proceedings. A detention hearing is scheduled for Friday, December 8, 2017, before Magistrate Judge Donald L. Cabell in Boston.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment on each wire fraud count and 10 years’ imprisonment on each money laundering count, fines of $250,000 on each count in the indictment, and restitution for the losses he is alleged to have caused. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Robert Rees and Kyle Waldinger are prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Final Individual Sentenced in Illegal Steroid ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On December 6, 2017, Kari Carter, 27, of Johnson City, Tennessee, was sentenced by the Honorable J. Ronnie Greer, to serve four months in prison for her role in a large illegal steroid conspiracy in east Tennessee. Upon her release from prison, she will be supervised by U.S. Probation for three years.
Carter was the final of 22 defendants charged in this scheme to be sentenced. All pleaded guilty and received the following sentences:
Defendant Name, Age, Residence
Prison Sentence
Supervised Release
Probation
Monetary Judgement
Forfeited Property
Joel Pasternak, 28,
Johnson City, Tennessee
108 months
3 years
$2.8 million
Edward Pasternak, 59, Newport, Tennessee
36 months
3 years
$100,000 (jointly with Lori Pasternak)
$68,866 cash and property valued at $80,000
Thomas Hensley Maxwell, 28,
Johnson City, Tennessee
30 months
3 years
$63,000
Daniel Boston, 33,
Versailles, Kentucky
27 months
3 years
$17,064
Heath Kershaw, 37, Fleetwood, North Carolina
21 months
3 years
$50,000
John Allen, 32,
Seminole, Florida
18 months
3 years
$35,000
Lori Pasternak, 52,
Newport, Tennessee
12 months + 1 day
3 years
$100,000 (jointly with Edward Pasternak)
$68,866 cash and property valued at $80,000
Matfey Lisovoy, 29, Knoxville, Tennessee
15 months
3 years
$40,000
Nathan Urrutia, 34,
Madison Heights, Michigan
15 months
3 years
$30,000
$20,840 cash
Christopher Jones, 37, Pawtucket, Rhode Island
37 months
3 years
$121,745
Glen Jenkins, 31,
Knoxville, Tennessee
4 months
3 years
$4300
William Gallant, 34, Sevierville, Tennessee
90 days
3 years
$33,000
Richard Hensley, 34, Memphis, Tennessee
5 years
$61,000
Jared Pasternak, 23,
Newport, Tennessee
5 years
$10,000
$4680 cash
Joshua Pasternak, 32, Sevierville, Tennessee
5 years
$10,000
Michael VanLeeuewen, 36, Memphis, Tennessee
4 years
Abigail Chester, 32, Farmington, New Mexico
4 years
$36,650
Mitchell Free, 32,
Lula, Georgia
4 years
$17,542
Lauren Dean, 27, Jonesborough, Tennessee
2 days
4 years
Pamela Little, 28,
Kingsport, Tennessee
3 years
$8000
Lindsey Smallman, 25, Johnson City, Tennessee
3 years
$8000
This scheme involved importing raw steroid powders shipped in misbranded packaging from China and other countries, which were converted to liquid, pill, and tablet form and marketed via the internet using the Incredible Hulk image and the name Hulkbody. Customers purchased the steroid products by sending money to Western Union, MoneyGram, and Walmart-to-Walmart Money Transfer using false identities. Over a three-year period, the Pasternak drug organization operated five different clandestine steroids labs in the Johnson City area, derived more than $2.8 million in criminal proceeds, engaged in thousands of sales transactions, and involved a total of 22 co-conspirators. Law enforcement officers found what is described as one of the largest clandestine steroids lab in the United States as part of the investigation.
Agencies involved in this investigation included the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, U.S. Postal Inspection Service, U.S. Department of Homeland Security Investigations and the Washington County Sheriff’s Office. Assistant U.S. Attorneys Helen C.T. Smith and Frank M. Dale, Jr., represented the United States in court proceedings.
Federal Jury Convicts Amarillo Man on Drug ChargeRead the Press Release
AMARILLO — Following a three-day trial, a federal jury has convicted Jose Santillan, 25, of Amarillo, Texas, on one count of conspiracy to distribute and possess with intent to distribute 50 grams or more of pure methamphetamine, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
The conspiracy conviction carries a statutory penalty of at least ten years and not more than life in federal prison and a $10,000,000 fine. Santillan is scheduled to be sentenced on March 26, 2018, by U.S. District Judge Sidney A. Fitzwater.
According to evidence presented at trial, on February 2, 2016, a Texas Department of Public Safety agent working in an undercover capacity arranged to purchase eight ounces of methamphetamine from Guadalupe Vargas-Mayorga. Through surveillance and recorded telephone calls between the undercover agent and Vargas-Mayorga, law enforcement learned that Vargas-Mayorga obtained the eight ounces of methamphetamine from Jose Santillan and then delivered that methamphetamine to the undercover agent. Laboratory results confirmed that Vargas-Mayorga and Santillan delivered 192 grams of pure methamphetamine to the undercover agent on February 2, 2016. The evidence presented at trial also showed that Santillan had been supplying Vargas-Mayorga with methamphetamine for further distribution since approximately 2014.
The Drug Enforcement Administration, Department of Homeland Security, Texas Department of Public Safety, Amarillo Police Department, Potter County Sheriff’s Office, and Randall County Sheriff’s Office investigated. Assistant U.S. Attorneys Sean Taylor and Joshua Frausto and Deputy Criminal Chief Assistant U.S. Attorney Jeffrey Haag are prosecuting the case.
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Federal Jury Convicts Albuquerque Resident on Drug Trafficking Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict yesterday afternoon finding Gaspar Leal, 47, guilty of participating in a methamphetamine trafficking conspiracy after a three-day trial, announced Acting U.S. Attorney James D. Tierney and Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
In Aug. 2016, a multi-agency investigation led by the ATF concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents, including Leal, with federal firearms and narcotics trafficking offenses. To date, 81 of the 103 defendants charged as the result of this investigation have been convicted, including 80 who have pleaded guilty, and 52 have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This week, in addition to the guilty verdict against Leal, two other Albuquerque residents were sentenced for their convictions on federal firearms and drug trafficking offenses.
Guilty Verdict in Trial against Gaspar Leal
Leal and co-defendants Candace Tapia, 23, Bernadette Aurora Tapia, 49, and Brandon Candelaria, 22, were charged by indictment on July 12, 2016, with conspiracy and distribution of methamphetamine on June 8, 2016, in Bernalillo County. Bernadette Aurora Tapia pled guilty on Dec. 13, 2016, and was sentenced to 21 months in prison followed by three years of supervised release on April 7, 2017. Candace Tapia pled guilty on June 1, 2017, and was sentenced to 18 months in prison followed by three years of supervised release on Oct. 3, 2017. The charges against Candelaria were dismissed on July 18, 2017.
Trial against Leal on the two-count indictment commenced on Dec. 4, 2017, and concluded the afternoon of Dec. 6, 2017, when the jury convicted Leal on Count 1, charging Leal with conspiracy to distribute methamphetamine, and acquitting him on Count 2, charging him with possession of methamphetamine with intent to distribute. The evidence at trial established that in May and June 2016, Leal facilitated the sale of approximately 59.2 grams of methamphetamine to an individual working with the ATF. The jury deliberated approximately three-and-a-half hours before returning its verdict.
At sentencing, Leal faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. Leal has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
United States v. Noe Urias, et al.
Noe Urias and co-defendant Angelica Marie Santiesteban, 40, were charged in a four-count indictment filed on June 30, 2016, with methamphetamine trafficking offenses. The indictment was superseded on July 28, 2016, to include Patrick Zamora, 22, and an additional methamphetamine trafficking charge. The superseding indictment charged all three defendants with conspiracy to distribute methamphetamine from May 2, 2016 through June 20, 2016, and distribution of methamphetamine on June 20, 2016; Urias and Santiesteban with distribution of methamphetamine on May 2, 2016 and May 19, 2016; and Urias with distribution of methamphetamine on May 18, 2016.
On March 9, 2017, Urias pled guilty to Count 3 of the superseding indictment charging him with distribution of methamphetamine and admitted that on May 18, 2016, he sold methamphetamine in exchange for money. Santiesteban pled guilty on Dec. 8, 2016, and was sentenced to 63 months in prison followed by five years of supervised release on June 27, 2017.
Noe Urias, 35, was sentenced on Dec. 6, 2017, to 41 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Zamora has entered a plea of not guilty and is pending trial.
United States v. Jorge Chacon
Jorge Chacon was charged in a seven-count indictment filed on June 30, 2016, with drug trafficking and firearms offenses. Chacon was charged with distributing methamphetamine and using and carrying a firearm in relation to a drug trafficking crime on May 16, 2016; being a felon in possession of a firearm on May 16, 2016, May 19, 2016, and twice on May 26, 2016; and possession a firearm with an obliterated serial number on May 26, 2016. According to the indictment, Chacon was prohibited from possessing firearms or ammunition because he previously been convicted of burglary, aggravated battery and aggravated assault with a deadly weapon.
On Feb. 13, 2017, Chacon pled guilty to Count 2 of the indictment charging him with carrying a firearm during and in relation to a drug trafficking crime, and admitted that on May 16, 2016, he possessed a firearm during the sale of methamphetamine. Chacon, 34, was sentenced on Dec. 6, 2017, to 60 months in prison followed by three years of supervised release for using and carrying a firearm in furtherance of a drug trafficking crime.
Nineteen of the defendants charged as the result of the ATF investigation have entered not guilty pleas or have been found guilty to the charges against them. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. Two defendants are fugitives and the charges against two defendants have been dismissed.
These cases were investigated by the Albuquerque office of ATF. The case against Leal is being prosecuted by Assistant U.S. Attorneys Samuel A. Hurtado and Kimberly A. Brawley. The case against Urias is being prosecuted by Assistant U.S. Attorney Edward Han. The case against Chacon was prosecuted by Assistant U.S. Attorney Norman Cairns.
Federal Grand Jury Files Superseding Indictment in Criminal Case Against Co-Founders of Ayudando GuardiansRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in Albuquerque, N.M., filed a superseding indictment on Dec. 5, 2017, in the criminal case against Susan Harris, 71, and Sharon Moore, 62, the co-founders of Ayudando Alpha, Inc., d/b/a “Ayudando Guardians, Inc.” (Ayudando Guardians or Ayudando), a now defunct non-profit Albuquerque-based corporation that provided guardianship, conservatorship and financial management services to hundreds of individuals with special needs. The superseding indictment amends the original indictment by adding two new defendants, William S. Harris, 56, and Craig M. Young, 52, the husband and son, respectively, of defendant Susan Harris, and five new counts of money laundering.
The superseding indictment, which was filed under seal, was unsealed earlier today after the Special Agents of the FBI and IRS Criminal Investigation arrested William Harris and Young, both of whom made their initial appearances before U.S. Magistrate Judge Steven C. Yarbrough in federal court in Albuquerque this morning. William Harris and Curtis are scheduled to return to court tomorrow morning for detention hearings, when they also will be arraigned on the superseding indictment. Moore is scheduled to be arraigned on the superseding indictment on Dec. 11, 2017, and Susan Harris is scheduled for arraignment on Dec. 12, 2017.
The Original Indictment
The original indictment, which was filed on July 11, 2017, generally alleged that Susan Harris and Moore perpetuated a decade-long sophisticated scheme to embezzle funds from client trust accounts managed by Ayudando Guardians. According to the indictment, Ayudando Guardians received government benefit payments from the U.S. Department of Veterans Affairs (VA) and U.S. Social Security Administration (SSA) on behalf of many of its clients, and acted as a fiduciary or representative payee for these clients by paying their expenses and maintaining the balances for the benefit of the clients. The indictment alleged that Harris and Moore, the primary owners and operators of Ayudando, embezzled millions of dollars from their special needs clients to support lavish lifestyles for themselves and their families.
The original indictment was comprised of 28-counts, including two conspiracy counts, ten counts of mail fraud, ten counts of aggravated identify theft and six counts of money laundering. It alleged that from Nov. 2006, when Harris and Moore founded Ayudando, and continuing until July 2017, Ayudando, Harris and Moore embezzled millions of dollars from Ayudando client accounts to cover their personal expenses and support lavish lifestyles for themselves and their families. According to the indictment, Harris and Moore perpetuated the embezzlement scheme by:
- Establishing Ayudando as a non-profit corporation in Nov. 2006, to position it as a guardian, conservator, fiduciary and representative payee for individuals needing assistance with their financial affairs;
- Setting up client trust and company bank accounts which only they controlled;
- Transferring funds from client accounts to Ayudando company accounts;
- Using client funds to pay off more than $4 million in charges on a company credit card account used by Harris, Moore and their families for personal purposes;
- Writing checks from Ayudando company accounts to themselves, cash and to cover personal expenses; replenishing depleted client accounts with funds taken from other clients; mailing fraudulent statements and certifications to the VA; and
- Forging and submitting forged bank statements to the VA.
The mail fraud charges in the original indictment described some of the fraudulent documents allegedly mailed by Ayudando, Harris and Moore to the VA to perpetuate and conceal their embezzlement scheme. For example, between Jan. 2016 and Nov. 2016, Moore allegedly mailed fraudulent documents to the VA that falsely represented the balances in ten client accounts. The documents falsely claimed that the ten client accounts had an aggregate balance of $1,906,908, when the actual value of the ten accounts was only $72,281. The original indictment identified the ten client accounts as examples of the fraud allegedly perpetrated by the defendants as part of their embezzlement scheme.
According to the original indictment, Ayudando, Harris and Moore also engaged in aggravated identify theft by using their clients’ names, dates of birth, Social Security Numbers and VA file numbers to commit mail fraud offenses. Harris and Moore also allegedly committed money-laundering offenses by using $392,623 from the Ayudando client reimbursement account to pay off balances on a company credit card used by the defendants and their families for personal purposes.
The original indictment included forfeiture provisions seeking forfeiture to the United States of any proceeds and property involved in, or derived from, the defendants’ unlawful conduct.
The Superseding Indictment
The superseding indictment is the result of an ongoing multi-agency investigation by the FBI, IRS Criminal Investigation, U.S. Marshals Service (USMS), VA Office of Inspector General and SSA Office of Inspector General. It amends the original indictment by adding William Harris and Young as defendants to the two conspiracy counts, ten mail fraud counts, and eight of the ten substantive money laundering counts. The superseding indictment also adds several new overt acts to Count 1, the conspiracy charge, including the following:
- From Oct. 2010 through July 2017, Susan Harris, Moore and Young allegedly paid Young’s personal mortgage through a series of 83 checks totaling $206,970 from Ayudando bank accounts.
- From March 2013 through July 2017, Susan Harris, William Harris, Moore and Young maintained a private box at the University of New Mexico basketball arena, also known as the “Pit,” and allegedly provided $304,863 in Ayudando client funds to the UNM Lobo Club, UNM Athletic Department, UNM Catering and UNM Ticketing Services.
- In March 2014, Susan Harris and Moore allegedly invested $100,000 in Ayudando client funds to a fantasy football software company.
- Between July 2014 and July 2017, Susan Harris, William Harris, Moore and Young, allegedly paid $20,900 in Ayudando client funds to William Harris’s mother in exchange for a recreational vehicle.
- Between Nov. 2014 and Oct. 2015, Susan Harris, William Harris and Moore allegedly used $15,700 of Ayudando client funds to pay a New Mexico state tax liability incurred by William Harris while operating an unrelated business.
- In March 2017, Susan Harris, William Harris and Moore allegedly applied for a $250,000 business loan supposedly to expand Ayudando’s business but actually to “pay back” clients from whom they had taken money without authorization.
The superseding indictment also includes the following two new counts of money laundering against Susan Harris and Moore. Counts 22 and 23 allege that on Feb. 28 and 29, 2016, Susan Harris and Moore engaged in financial transactions intended to conceal that they involved the proceeds of mail fraud when they made payments to the UNM Lobo Club. It also includes three new counts of money laundering against all four defendants. Counts 26 and 27 charge the four defendants with engaging in financial transactions involving the alleged $100,000 investment in the fantasy football software company, and Count 30 charges the four defendants with a money laundering charge relating to the use of Ayudando client funds for “Pit” related expenses.
The forfeiture provisions in the superseding indictment are amended to seek forfeiture of the following parcels of real estate and the following vehicles:
- The Albuquerque residence of Susan Harris and William Harris;
- The Albuquerque residence of Moore;
- The Albuquerque residence of Young;
- Two Albuquerque residences owned by Moore;
- A 2018 5th Wheel Vehicle owned by Susan Harris and William Harris; and
- A 2014 Jeep Wrangler.
Ayudando Guardian, as a corporate entity, was charged as a defendant in the original indictment but to date has not had an attorney enter an appearance on its behalf. On July 19, 2017, the USMS took over Ayudando’s business operations under a federal court order authorizing it to operate the business so that its assets were not improperly spent or removed, and so that the interests of Ayudando clients were protected as the prosecution of the criminal case moved forward. On Aug. 31, 2017, the USMS announced that it was closing the offices of Ayudando Guardians while continuing to be responsible for managing Ayudando’s business affairs under a protective restraining order issued by the federal court. Ayudando Guardians is not named as a defendant in the superseding indictment.
Statutory Penalties for Charges in Superseding Indictment
If the defendants are convicted on the crimes charged in the superseding indictment, they face the following maximum statutory penalties:
- Count 1, conspiracy – 30 years of imprisonment and a $250,000 fine;
- Counts 2-11, mail fraud – 30 years of imprisonment and a $250,000 fine;
- Counts 12-21, aggravated identity theft – a mandatory two-years of imprisonment that must be served consecutive to any other sentence imposed on other counts and a $250,000 fine;
- Counts 22-23, money laundering – 20 years of imprisonment and a $250,000 fine or twice the amount of the property involved in the crime;
- Counts 23-32, money laundering – ten years of imprisonment and a $250,000 fine or twice the amount of the property involved in the crime; and
- Count 33, conspiracy to commit money laundering – ten years of imprisonment and a $250,000 fine or twice the amount of the property involved in the crime.
Susan Harris and Moore have entered not guilty pleas to the original indictment. Arraignment hearings on the superseding indictment for the four defendants have not yet been scheduled.
The Albuquerque offices of the FBI and IRS Criminal Investigation conducted the investigation, which resulted in the charges in the superseding indictment, and are leading the continuing investigation. The Complex Assets Unit and the Albuquerque office of the USMS, the Criminal Investigations Division of the VA Office of Inspector General, and the Dallas Field Division of the SSA Office of Inspector General are assisting in the investigation. Assistant U.S. Attorneys Jeremy Peña and Brandon L. Fyffe are prosecuting the case.
Information about the federal investigation into Ayudando Guardians is available at www.justice.gov/usao-nm/ayudando-guardians.
Charges in indictments are merely allegations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ayudando Superseding IndictmentFederal Grand Jury Charges Grand Prairie Husband and Wife for Medicare FraudRead the Press Release
DALLAS — On December 6, 2017, a husband and wife were indicted on charges that they submitted false and fraudulent claims for home health services and defrauded Medicare of more than $3.4 million, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Edwin Oparaochaekwe, 53, and Chiazom Oparaochaekwe, 47, both of Grand Prairie, Texas, are charged collectively with 10 counts of health care fraud. Today, both defendants were arrested and made their initial appearance before a U.S. Magistrate Judge.
The indictment alleges that from December 2011 through May 2017, Prime World Home Health (Prime World) was an approved home health agency located originally in Irving, Texas and most recently in Mansfield, Texas. Edwin Oparaochaekwe was part-owner of Prime World and worked as a recruiter. Chiazom Oparaochaekwe was a registered nurse and also part-owner of Prime World.
As part of the scheme, the defendants marketed Prime World’s services directly to Medicare beneficiaries, instead of obtaining referrals from physicians who had legitimate physician-patient relationships with patients. To obtain the required physician homebound certifications and plans of care (CMS-485s), the defendants sought and obtained signatures on CMS-485s from physicians who had no prior relationship with the patients, and who, in many cases, never saw or treated them. The defendants sought home health certifications for patients regardless of the patient’s eligibility for home health care.
Prime World employees were directed to submit claims for patients that did not have legitimately signed CMS-485s. For some of the unsigned CMS-485s, Chiazom Oparaochaekwe forged the signatures by photocopying physician signatures and affixing them on the unsigned document. Chiazom Oparaochaekwe then placed a copy of the forged document in the patient’s medical record.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, each of the 10 counts of health care fraud carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. In addition, the indictment includes a forfeiture notification that would require the defendants, upon conviction, to forfeit any property derived from proceeds of the offenses alleged.
The case was investigated by the Department of Health and Human Services-Office of Inspector General, the Federal Bureau of Investigation, and the Texas Medicaid Fraud Control Unit. Assistant U.S. Attorney Kate Rumsey and Special Assistant U.S. Attorney Jason Meyer are handling the prosecution.
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Environmental Training Company Owner to Serve Prison Time for Falsely Certifying Lead Abatement Course CompletionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Tyler C. Amon, Special Agent in Charge of EPA’s Criminal Investigation Division in New England, announced that STEPHEN CRAIG, 66, of Essex, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to six months of imprisonment, followed by three years of supervised release, for falsely certifying the completion of a lead abatement course. Judge Bryant also ordered CRAIG to pay a $20,000 fine.
According to court documents and statements made in court, STEPHEN CRAIG owned Boston Lead Company LLC (BLC), a Connecticut corporation that provided industrial hygiene and safety services. Doing business as Environmental Training and Assessment (ETA), BLC offered a variety of training courses to individuals working with lead paint and asbestos. STEPHEN CRAIG was the training manager and a primary instructor for those courses, and his son, Matthew Craig, provided hands-on instruction and assisted with course administration, including the grading of examinations.
ETA’s lead and asbestos training courses were subject to regulation under the training provider accreditation requirements of the federal Toxic Substances Control Act (TSCA). TSCA allowed states to obtain U.S. Environmental Protection Agency (EPA) authorization to administer and enforce the standards, regulations and other requirements of the TSCA’s lead and asbestos programs, including the approval of training courses. The State of Connecticut received such authorization for all lead and asbestos programs except the lead program that covered renovations, repairs and painting. Individuals in Connecticut who perform lead abatement activities must be certified by the Connecticut Department of Public Health (CT DPH). To obtain certification, an individual must successfully complete an approved 32-hour lead abatement worker initial training course. ETA applied for and received approval from CT DPH to offer a wide range of lead and asbestos training courses, including lead abatement worker initial and refresher courses.
In August 2011, ETA offered a lead abatement training course at its Middletown facility. STEPHEN CRAIG was the training manager and primary course instructor, and Matthew Craig provided the hands-on training and graded the exams. An undercover EPA agent attended the course under the fictitious identity, seeking a lead abatement worker initial course completion certificate. The agent skipped the first two days of the course, and was two hours late on the third day. Thereafter, the agent attended the course for a total of approximately 15 hours, including approximately three hours of hands-on training. STEPHEN CRAIG was aware that agent did not attend the full training course.
At the conclusion of the course, the agent paid STEPHEN CRAIG $525 in cash and was allowed to sit for the lead abatement worker examination, which was proctored and graded by Matthew Craig. The agent intentionally failed the examination. Although Matthew Craig knew that the agent had failed the examination, Matthew Craig completed questions that the agent had left blank and corrected a sufficient number of incorrectly answered questions to bring the examination grade to a passing grade of 80 percent.
On August 12, 2011, ETA issued a false Certificate of Completion to the agent that stated that the agent had successfully completed a 32-hour lead abatement worker initial training course and passed an examination in accordance with CT DPH standards.
On August 3, 2017, STEPHEN CRAIG pleaded guilty to one count of making a false statement to the federal government.
Matthew Craig previously pleaded guilty to one count of making a false statement and, on March 14, 2013, was sentenced to two years of probation and ordered to perform 100 hours of community service.
This matter was investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Eleven people from Canton indicted for firearms violations, including firearms trafficking and illegal sale of a machine gunRead the Press Release
Eleven people from the Canton area were indicted in federal court for firearms violations, including firearms trafficking, illegal sale of a machine gun and drug charges, law enforcement officials said.
Indicted are: Rasheed Babb, 25; Shawntez Block, 25; Andre Bowers, 41; Ikasha Clark, 38; Darnell Curtis, 39; Kamari Kidd, 21; Tae’Vontae Miles, 22; Jesse Gulley, 44; Thomas Lorenz, 60; Arthur Keeney, 28, and Sean Foster, 33.
All the defendants live in Canton except Lorenz, who is from Dover, and Block, who is from Massillon.
Bowers was charged with illegally dealing firearms while Kidd and Miles were charged with assisting his firearms trafficking.
Bowers engaged in the unlicensed dealing of firearms between December 2016 and February 2017. Bowers’ previous convictions include aggravated assault, cocaine trafficking, domestic violence, escape and other crimes.
At various times he sold or possessed a Harrington & Richardson .32-caliber revolver, a Mossberg 12-gauge shotgun, a Glock .40-caliber pistol, another Mossberg 12-gauge shotgun, a Marlin .22-caliber rifle, a Rossi 20-gauge shotgun and a Kel-Tec 5.56 mm pistol, according to the indictment.
Bowers also distributed heroin, according to the indictment.
Gulley, Clark and Lorenz were indicted for a transaction in July 2017 in which Lorenz transferred to Gulley and Clark a Heckler and Koch, 308-caliber machine gun, according to the indictment.
Gulley on July 25, 2017, possessed the aforementioned machine gun, ammunition and six other firearms, despite prior convictions for felonious assault and possession of cocaine. On the same day, Gulley and Clark possessed a sawed-off shotgun, according to the indictment.
“Cases like these are exercises in homicide prevention,” U.S. Attorney Justin E. Herdman said. “These defendants have no business carrying firearms, given their previous criminal conduct. This operation has made Canton safer.”
“The value of these types of cases can be measured in human lives,” said Canton Police Chief Bruce Lawver. “These cases involve illegally possessed firearms in the hands of criminal. They demonstrate the cooperation that exists between the Canton Police Department and our federal law enforcement partners.”
“These arrests are just the next step in our work with our partners at the Canton Police Department and the FBI,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “We will continue to work together to make Canton and the surrounding communities safer by removing individuals who use violence to further their criminal activities from our streets.”
“These dangerous individuals will now be held accountable for their numerous criminal violations involving guns,” said FBI Special Agent in Charge Stephen D. Anthony. “The FBI commends the collaborative work done by all agencies involved, especially the ATF and Canton Police Department.”
Keeney possessed a Hi-Point 9 mm pistol and nine rounds of 9 mm Winchester brand ammunition on Dec. 7, 2016, despite prior convictions for felonious assault and improper handling of a firearm in a mother vehicle, according to the indictment.
Foster possessed a Smith and Wesson .40-caliber pistol , a Smith and Wesson 9 mm pistol, a Fabrique Nationale .40-caliber pistol and 35 rounds of ammunition on Oct. 1, 2017, despite prior convictions for trafficking cocaine and possession of cocaine, according to the indictment.
Block possessed a Ruger 9mm pistol on Jan. 16, 2016, despite prior convictions for aggravated drug trafficking and endangering children, according to the indictment.
Curtis possessed a Remingon 12-gauge shotgun and a Harrington and Richardson 12-gauge shotgun on May 11, 2017, despite a prior conviction for aggravated robbery with a firearms specification, according to the indictment.
Babb possessed a Harrington and Richardson .32-caliber revolver on Oct. 19, 2017, despite a prior conviction for possession of a controlled substance with intent to deliver, according to the indictment.
Approximately 30 firearms were seized as part of the operation, along with ballistic vests, ammunition, heroin, fentanyl and cocaine.
These cases were investigated by the Canton Police Department, the ATF and the FBI, with assistance from the Stark County Prosecutor’s Office. The cases are being prosecuted by Assistant U.S. Attorneys Aaron P. Howell and Henry F. DeBaggis.
If convicted, the sentence in this case will be determined by the Court after consideration of the federal sentencing guidelines, which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique 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.
A charge 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.
District Man Found Guilty of Felony Murder in 2014 Slaying at Southeast Washington Barber ShopRead the Press Release
WASHINGTON – Antwon D. Green, 29, of Washington, D.C., was found guilty by a jury today of felony murder, first-degree murder while armed, and a related weapons charge in the killing of a man in 2014 at a Southeast Washington barber shop, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Green was found guilty following a trial in the Superior Court of the District of Columbia. He is to be sentenced on Feb. 16, 2018 by the Honorable Judith Bartnoff. He remains in custody pending sentencing.
According to the government’s evidence, on Friday, Oct. 10, 2014, at about 11 a.m., Green walked by the front of the Kutt n’ Up barber shop in the 1400 block of Good Hope Road SE, and pointed at Breond Keys, a customer who was getting his hair cut inside.
Roughly 16 minutes later, Green, wearing different clothes and dressed in a dark-colored hooded jacket, ran into the barber shop, holding what appeared to be a pistol in his right hand. Green immediately raised the pistol with both hands, pointed it at Mr. Keys, and began firing, hitting Mr. Keys multiple times. Once Mr. Keys fell to the floor, Green dug into his front pants pocket, pulled an item out of it, and fled. Mr. Keys, 38, was taken to a hospital, but pronounced dead a short time after the shooting.
Following an investigation by MPD, Green was charged in the murder in July 2015.
In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department and the FBI. They also expressed appreciation for the assistance provided by the District of Columbia Office of the Medical Examiner, the Glendale Verdugo Regional Crime Laboratory, and the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Victim/Witness Advocate James Brennan; Paralegal Specialists Kelly Blakeney and Meridith McGarrity; Criminal Investigators John Marsh, William Hamann, and Zachary McMenamin, and Litigation Technology Specialist Leif Hickling. Finally, they commended the work of Assistant U.S. Attorneys Richard DiZinno, Glenn Kirschner and Allessandra Stewart, who investigated and prosecuted the case.
Deputy Attorney General Rod Rosenstein Selects Corey Ellis as Director of Asset Forfeiture AccountabilityRead the Press Release
Deputy Attorney General Rod Rosenstein today announced that Corey Ellis, First Assistant U.S. Attorney of the Western District of North Carolina, will serve as the Director of Asset Forfeiture Accountability within the Office of the Deputy Attorney General. Pursuant to Attorney General Jeff Sessions’s Oct. 16 memorandum, Ellis will coordinate the Department’s Asset Forfeiture Program, including reviewing complaints and ensuring compliance with the law.
“Many criminals transfer ill-gotten gains to relatives or friends, and others use couriers to transport cash. Civil asset forfeiture helps prevent crime by enabling the government to recover property when prosecuting the person caught holding it may not be appropriate or feasible,” Deputy Attorney General Rosenstein said. “Given his personal experience handling complex asset forfeiture litigation and his superb reputation as a manager, Corey Ellis will strengthen the Justice Department’s Asset Forfeiture Program and help us prevent crime while protecting the property rights of law-abiding people.”
Starting in January, Ellis will begin work on several Department priority initiatives, including the modernization of the National Asset Forfeiture Strategic Plan, updating the Asset Forfeiture Program’s policy guidance, and improving controls over the use of program funds.
Since November 2015, Ellis has served as the First Assistant U.S. Attorney for the Western District of North Carolina. In that position, he has managed an approximately 100-employee office and helped to coordinate complex white-collar crime prosecutions. He has also directed the office’s training in response to the Attorney General’s July 2017 Asset Forfeiture policy order.
Ellis previously served as an Assistant U.S. Attorney in the Asheville Division of the U.S. Attorney’s Office for the Western District of North Carolina, where he prosecuted cases involving federal lands, drug smuggling, firearm offenses, and violent crime. Mr. Ellis has also coordinated the District’s efforts to fight white-collar fraud, computer hacking, and intellectual property theft. Before becoming a federal prosecutor, he served as an Assistant District Attorney for the 29th Prosecutorial District in North Carolina for eight years.
Ellis received his J.D. from the University of Memphis in Tennessee with awards in trial advocacy and tax law, and his B.A. from Brown University.Department of Justice Recovers Millions in Criminal Proceeds via a First Time Forfeited Asset Sharing by Guernsey OfficialsRead the Press Release
United States prosecutors and investigators are recovering more than $14 million linked to two U.S. criminal cases, in which the money was laundered via Guernsey, thanks to a first-time ever sharing of forfeited assets by Guernsey officials. Guernsey is a significant offshore financial center located in the English Channel near the coast of France.
“The United States and Guernsey have a valued and close law enforcement relationship, and this first-ever asset sharing from Guernsey to the United States is the latest outward sign of our strong ties,” said John P. Cronan, Acting Assistant Attorney General for the Department of Justice’s Criminal Division. “Today’s announcement sends a strong message that the Department of Justice and our counterparts in Guernsey will not rest until defendants are brought to justice and denied the illicit proceeds of their crimes.”
Guernsey Attorney General Megan M.E. Pullum, Q.C., and Guernsey Solicitor General Robert M. Titterington, Q.C., announced their commitment to transfer the funds to the United States under a bilateral asset sharing agreement that entered into force between Guernsey and the United States in February 2015. Their announcement came during a meeting with U.S. officials at the Department of Justice’s headquarters today.
The $14.3 million to be shared from Guernsey represents one half of the net proceeds recovered in that jurisdiction that stem from the two U.S. criminal cases, which are discussed below. Guernsey will retain an equal amount.
Most of the funds being transferred from Guernsey – more than $12.77 million – stem from Guernsey’s cooperation in connection with the prosecution of defendant Raymond Bitar and his associates by the United States Attorney for the Southern District of New York. In April 2013, Bitar pleaded guilty to unlawful internet gambling and conspiracy to commit bank fraud and wire fraud. He admitted to defrauding customers of his Full Tilt Poker operation by lying to them about the security of their funds held by Full Tilt Poker, and by falsely promising players that their funds would be protected in segregated accounts. Instead, Bitar and his accomplices used players’ funds for whatever purposes that Bitar directed, including to pay him and others millions of dollars and to cover the operating expenses of Full Tilt Poker. Ultimately, Full Tilt collapsed and was unable to pay players approximately $350 million that it owed to them. In connection with his plea and sentencing, Bitar agreed to forfeit $40 million dollars in money and other property derived from his offenses, including the funds he maintained in Guernsey.
The United States Marshals Service expended significant work on the post-conviction tracing, recovery, and liquidation of the criminal assets of Bitar and his associates, both domestically and internationally. Between November 2012 and June 2015, the Justice Department’s Office of International Affairs sent a series of three Mutual Legal Assistance requests to the Guernsey authorities seeking their assistance with the tracing, restraint, forfeiture and recovery of the proceeds that had been laundered to Guernsey. In response to those requests, the Guernsey authorities used domestic proceedings to block the Bitar accounts, provided bank records that facilitated the U.S. investigation and forfeiture, and ultimately gave effect to the final U.S. judgment of forfeiture and liquidated the accounts.
The remaining funds to be shared by Guernsey – more than $1.56 million – stemmed from the prosecution of defendant Paul Hindelang and his associates by the United States Attorney for the Southern District of Florida. Hindelang was large-scale importer of Colombian marijuana into the United States during the 1970s and 1980s. Similar to the Bitar case, Guernsey’s assistance in connection with the Hindelang case ultimately included the registration and enforcement of a U.S. judgment of forfeiture against assets that were laundered to Guernsey and the liquidation of those assets.
This is the second time assets have been shared pursuant to a 2015 asset sharing agreement between the United States and Guernsey. In 2016, the Department of the Treasury shared more than $2 million with Guernsey in 2016. Guernsey has long been a reliable partner with the United States in the areas of anti-money laundering and forfeiture cooperation.
Representatives from the United States Marshals Service, Homeland Security Investigations, and the Office of International Affairs, who provided substantial assistance in this matter, also were on hand for the asset sharing announcement.
Cuyahoga Falls man indicted for making death threats to wife in NevadaRead the Press Release
A federal grand jury returned a two-count indictment charging a Cuyahoga Falls man with making interstate death threats, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Wei Li, 28, is charged with one count of making an interstate threat of murder and one count of obstructing an official proceeding.
Li transmitted a threat from Cuyahoga Falls, Ohio to Nevada on Nov. 6 in which he threatened to murder his wife and others. His text messages included: “You will be dead,”, “I am not crazy. I am a high functioning sociopath…”, “Automatic rifle. I can't find you, then I just sweep the place. Make it big...” and “...We have 1000 people in our church. I will make the biggest one in history.”, among others, according to the indictment.
Li deleted text messages during a Nov. 10, interview with FBI agents, 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 records, 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.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Cuyahoga Falls Police Department. The case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis.
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.
Colorado Man Sentenced to 121 Months for Federal Drug Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Saul Cerros, 36, of Northglenn, Colo., was sentenced today in federal court in Las Cruces, N.M., to 121 months in prison for his conviction on methamphetamine trafficking charges. Cerros will be on supervised release for five years after completing his prison sentence.
Cerros was arrested on Sept. 28, 2016, on a four-count indictment charging him with methamphetamine trafficking offenses. Cerros was charged with conspiring to distribute methamphetamine from March 27, 2015 through March 31, 2015, and with distributing methamphetamine twice on March 27, 2015, and again on March 31, 2015. According to the indictment, Cerros committed the offenses in Dona Ana County, N.M.
On April 10, 2017, Cerros pled guilty to the indictment. In entering the guilty plea, Cerros admitted selling an aggregate of 891.56 grams of pure methamphetamine to undercover law enforcement agents on three separate occasions; twice on March 27, 2015, and a third time on March 31, 2015. Cerros further admitted that he personally smuggled the methamphetamine involved in one of the drug deals into the United States from Mexico.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and was prosecuted by Assistant U.S. Attorney Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Citizen of Mexico Pleads Guilty to Illegally Reentering the United StatesRead the Press Release
Roanoke, VIRGINIA – A Mexican citizen, who had previously been deported from the United States on two occasions, pleaded guilty earlier this week to illegally reentering the United States, United States Attorney Rick A. Mountcastle announced.
Edi Jose Manuel, 37, a.k.a. “Edy Manuel,” “Edi Jose-Martinez,” “Edy Manuel Jose,” “Jose Manuel Ramos,” “Jose Manuel,” “Manuel Rams,” “Manuel Perez-Perez,” pleaded guilty this week to being a convicted felon who illegally reentered the United States after being previously deported.
According to evidence presented at Manuel’s guilty plea hearing, the defendant was convicted in 2004 in the Circuit Court of Franklin County for four counts of forging public documents. Manuel was sentenced to prison time and was deported following his prison sentence.
At an unknown time after being deported in 2008, Manuel illegally reentered the United States a second time. On or about August 31, 2017, while incarcerated in the Martinsville City Jail on a driving while intoxicated charge, a fingerprint card for the defendant was submitted and revealed the prior convictions for the defendant. Martinsville Jail officials contacted officials with Immigration and Customs Enforcement to alert them of the defendant’s presence in the jail.
The investigation of the case was conducted by the United States Immigration and Customs Enforcement, Homeland Security Investigations. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Charter School Administrator Sentenced to 18 Months in PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that Sean Moore, age 44, of New Castle, Del., was sentenced by U.S. District Court Judge Richard G. Andrews to 18 months of imprisonment, which was the sentence requested by the government. The sentencing came after Moore pleaded guilty to three counts of federal program theft on November 2, 2016.
According to court records and statements made in open court, between 2011 and 2015, while serving as the Director of Finance and Operations for the Family Foundations Academy, a charter school in New Castle, Del., Moore embezzled $161,871 from the school. Moore accomplished this embezzlement in a number of ways, to include opening an unauthorized credit card in the school’s name, buying iPads with school funds and then selling them online for cash, and skimming the school’s fundraising account. Moore used the embezzled money to buy personal items such as food, entertainment, electronics, gas, travel, shoes, jewelry, and hotels.
Prior to sentencing, Moore claimed that he was suffering from a “severe level of sexual addiction and shopping addiction,” which contributed to his commission of the offense.
Acting U.S. Attorney Weiss said, “Acting out of self-interest and greed, Mr. Moore stole money intended for the children he promised to serve. That is egregious. The sentence imposed today holds him accountable for cheating children, their families, and the taxpayers.”
“Mr. Moore knowingly and willfully abused his position of trust for personal gain and did so at the expense of the educational development of children. That is unacceptable,” said Geoffrey Wood, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Mid Atlantic Regional Office. “I’m proud of the work of OIG special agents and our law enforcement partners for holding Mr. Moore accountable for his criminal actions. The OIG will continue to aggressively pursue those who steal Federal education funds for their own purposes. America’s students and taxpayers deserve nothing less.”
This case is the result of an investigation conducted by the FBI, the U.S, Department of Education – Office of the Inspector General, and the Delaware Attorney General’s Office, with assistance from the Delaware Office of Auditor of Accounts. Assistant U.S. Attorney Elizabeth L. Van Pelt is prosecuting the case on behalf of the United States.
Charleston dentist sentenced to five years in federal prison for health care fraudRead the Press Release
CHARLESTON, W.Va. – A Charleston dentist who falsely billed West Virginia Medicaid and West Virginia Medicaid Managed Care Organizations (MCOs) for more than $700,000 was sentenced today to five years in federal prison, announced United States Attorney Carol Casto. Antoine Skaff, 58, previously pleaded guilty to health care fraud. Skaff also previously entered into a civil settlement with the U.S. Attorney’s Office, the Office of Inspector General for the U.S. Department of Health and Human Services, the West Virginia Department of Health and Human Resources (DHHR), DHHR’s Bureau for Medical Services, and the West Virginia Medicaid Fraud Control Unit, in which he agreed to pay treble damages of $2.2 million, or three times the loss suffered by West Virginia Medicaid.
Skaff, a dentist, fraudulently billed West Virginia Medicaid and Medicaid MCOs for dental procedures that he did not actually perform on Medicaid recipients. Skaff’s scheme to defraud Medicaid and its MCOs lasted more than five years and involved upcoding and double billing.
Skaff admitted that he falsely inflated his billings, a practice commonly known as upcoding, often by falsely claiming reimbursement for procedures involving impacted teeth. Typically, only wisdom teeth are impacted. However, Skaff admitted that he upcoded billings for tooth extractions by falsely informing Medicaid and its MCOs that he performed more complex procedures, such as extractions of impacted teeth, when he had actually performed simple extractions. Because Skaff upcoded these extractions, Medicaid and its MCOs paid Skaff $172 per extraction of each tooth, rather than $80 per tooth for a simple extraction. Skaff additionally admitted that he falsely upcoded at least 7,490 tooth extractions, billing more than $1.3 million for those procedures. He further admitted that if those extractions were medically necessary, and if had actually performed the procedures he claimed, then he should have been paid only $599,200.
Skaff also admitted that he submitted false bills and received payment twice for removing the same teeth from the same patients. Skaff first billed and received payments from Medicaid for the extraction of patients’ specific teeth. He then falsely billed and received payment again from Medicaid MCOs for extraction of the same teeth. Skaff admitted that he received $56,930 from his false double billings.
The West Virginia Medicaid Fraud Control Unit, the FBI, the Office of Inspector General for the U.S. Department of Health and Human Services, and the Affirmative Civil Enforcement investigator from the U.S. Attorney’s Office conducted the investigation. Assistant United States Attorney Meredith George Thomas is in charge of the criminal prosecution. Assistant United States Attorney Jennifer Mankins is responsible for the civil settlement. United States District Judge Joseph R. Goodwin imposed the sentence.
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Career Criminal Sentenced to 180 Months in Federal Prison for Distribution of Methamphetamine After Being Released from State Prison Less Than One Year PreviouslyRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Jesus Torres, age 39, of Pasco, Washington, was sentenced on two counts of distribution and possession with the intent to distribute methamphetamine. Senior United States District Judge Edward Shea found that Torres was a career offender based upon his extensive criminal history and sentenced him to an180-month term of imprisonment and a five-year term of court supervision following release from Federal prison.
According to information disclosed during court proceedings, Jesus Torres was released from his third 5-year sentence in state court in May 2016. By January 2017, the METRO Drug Task Force in Tri-Cities learned that Torres, a confirmed Soreno gang member, was back in the business of distributing methamphetamine and heroin, utilizing multiple residences and recruiting young adults to work for him to include a 20 year old family member. The METRO Drug Task Force partnered with the FBI Safe Streets Task Force in Tri-Cities during the investigation which culminated in the execution of multiple search warrants and the arrest of Jesus Torres. During the search warrants, law enforcement identified that one of the locations was utilized as a heroin den in the Tri-Cities area, sourced by Torres as well as a loaded firearm that was found to be in Torres’ possession during the investigation.
Joseph H. Harrington said, “Prosecuting drug-trafficking and firearms-related crimes continues to be a priority for the United States Attorney’s Office for the Eastern District of Washington. In addition to mandatory terms of imprisonment for methamphetamine-trafficking offenses, previously convicted felons, gang members and violent felons should be aware that there are serious criminal penalties for repeated offenders who have no respect for the law and that this Office is committed to prosecuting aggressively those offenders who remain a danger to the communities in the Eastern District of Washington.”
This case was investigated by the METRO Drug Task Force and the FBI Safe Streets Task Force in Tri-Cities Washington. This case was prosecuted by Stephanie Van Marter, an Assistant United States Attorney for the Eastern District of Washington.
Cambria County Woman Pleads Guilty to Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Portage, Pa., pleaded guilty in federal court in Johnstown to charges of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
Dawn M. Strayer, 36, of Portage, Pa., pleaded guilty to one count of the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on May 18, 2016, Strayer distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for April 5, 2018, at 10:00 a.m. The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 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 Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Strayer.
California man sentenced to 144 months in prison for conspiring to transport methamphetamineRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from California was sentenced Wednesday to 12 years in prison for conspiring to transport methamphetamine.
Maquel L. Shelby, 37, of Hawthorne, Calif., was sentenced by U.S. District Judge Donald E. Walter on one count of conspiracy to possess with intent to distribute methamphetamine. He was also sentenced to three years of supervised release. According to the August 30, 2017 guilty plea, a Louisiana State trooper conducted a traffic stop on a Dodge Durango Shelby was driving January 31, 2017 on Interstate 20 in Bossier Parish. Codefendant Bryanna Warren, 27, also of California, was riding in the car along with two children, ages 5 and 2. After being questioned, Shelby admitted there was a pistol in the vehicle’s glove compartment. As the trooper walked over to the vehicle to speak to Warren who was seated in the front passenger seat, she pulled out a loaded S&W .40 caliber pistol from a diaper bag and handed it to the trooper. She admitted to trying to hide the firearm after taking it from the glove compartment. The vehicle was also searched, and troopers found 2 pounds of methamphetamine in a backpack. After the arrest, Shelby admitted he had picked up the methamphetamine from Shreveport and was instructed to bring it to Monroe, La.
Warren pleaded guilty on May 25, 2017 to one count of possession of a firearm in furtherance of drug trafficking and was sentenced on October 19, 2017 to five years in prison and three years of supervised release.
The DEA and Louisiana State Police conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Businessman Sentenced to 33 Months in Prison for Defrauding Real Estate InvestorsRead the Press Release
PITTSBURGH – A resident of Allegheny County, Pennsylvania has been sentenced in federal court to 33 months incarceration and 3 years supervised release on his conviction of wire fraud, Acting United States Attorney Soo C. Song announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Golan Barak, 50, of Pittsburgh, PA.
According to the information presented to the court, between 2013 and 2016, Barak falsely induced foreign nationals, mostly of Israeli descent, to invest with him in real estate in Pittsburgh, Pennsylvania, but fraudulently dissipated investors’ money for personal and business expenses, or to buy other properties, or to pay other investors. In particular, Barak defrauded two Israeli investors out of approximately $1,400,000 connected with the purchase of 12 pieces of real estate throughout the Pittsburgh area. The purchase money was used instead by Barak to purchase other properties, or for Barak’s expenses in his management company called Ergo Management.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Acting U.S. Attorney Soo C. Song commended the FBI for the investigation that led to the successful prosecution of Golan Barak.
Buffalo Man Pleads Guilty to Production and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Duke Jimenez, 34, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara, to production and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 50 years, and a fine of $500,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between February 10, 2014, and October 27, 2014, the defendant engaged in sexual contact with a three-year-old female child entrusted to his care. During that contact, Jimenez used his cellular telephone to create visual depictions of the victim engaging in sexually explicit conduct. The images were located on the defendant’s SD card.
Jimenez was arrested by the Buffalo Police Department on November 18, 2015, at which time the defendant’s telephone was seized. A subsequent search of phone and SD card in the phone revealed 18 image files which depicted the victim engaging in the sexually explicit conduct.
The plea is the result of an investigation by the Federal Bureau of Investigation under the direction of Adam S. Cohen, Special Agent-in-Charge and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for April 16, 2018, at 12:30 p.m. before Judge Arcara.
Barberton man will be deported for lying about his actions during the war in the former YugoslaviaRead the Press Release
A Barberton man will be deported after pleading guilty to lying about his actions during the war in the former Yugoslavia, said U.S. Attorney Justin Herdman and Steve Francis, Special Agent in Charge of HSI’s Detroit office.
Oliver Dragic, 42, pleaded guilty to possessing and fraudulently obtained immigration documents. Under the terms of his plea agreement, he will be deported.
Dragic failed to disclose his paramilitary police service for the Republika Srpska, a rogue state unrecognized by the international community that attempted to create an ethnically pure Serbian nation within the ethnically-mixed territory of the Yugoslav Republic of Bosnia-Herzegovina. Dragic completed police training in Serbia in 1994 and returned to Bosnia, where he voluntarily joined a special police unit that joined in Republika Srpska’s army during military operations, according to court documents.
Dragic applied for refugee status in the U.S. in May 1998, claiming he was a victim of the Bosnian war. He claimed in that application that he had never worked, when in fact he had served in the paramilitary unit, according to court documents.
“This defendant claimed to be a refugee but served in a paramilitary force during the war in the former Yugoslavia,” Herdman said.
“The investigation, prosecution, and ultimate removal of individuals like Dragic are paramount to the mission of Homeland Security Investigations and to the safety our communities,” Francis said.
Assistant U.S. Attorneys Matt Cronin and Om Kakani prosecuted the case following an investigation by HSI Special Agent Matt Hamulak and Historian Michael MacQueen.
Members of the public who have information about foreign nationals suspected of engaging in human rights abuses or war crimes are urged to contact HSI by calling the toll-free tip line at 1-866-347-2423 or internationally at 001-1802-872-6199. They can also email [email protected] (link sends e-mail).
Aviso Importante Servicio de Rentas Internas (IRS) advirtió hoy sobre una estafa telefónica sofisticada dirigida a los contribuyentesRead the Press Release
La Fiscal Federal Rosa Emilia Rodríguez-Vélez de la Oficina de Fiscalía Federal Distrito de Puerto Rico anuncia que el Servicio de Rentas Internas (IRS) advirtió hoy sobre una estafa telefónica sofisticada dirigida a los contribuyentes.
Se les dice a las víctimas que deben dinero al IRS y que deben pagarlo inmediatamente, mediante una tarjeta de débito pre-pagada o transferencia bancaria. Si la víctima se niega a cooperar, la amenazan con arrestarla, deportarla, o suspenderle su licencia de negocio o de conducir. En muchos casos, la persona que llama se vuelve agresiva.
Otras características de esta estafa incluye:
- Los estafadores usan nombres y número de placa falsos al igual que números de emblema del IRS. Por lo general usan nombres y apellidos comunes para identificarse.
- Los estafadores pueden ser capaces de saber los últimos cuatro dígitos del número de seguro social de la víctima.
- Los estafadores copian el número gratuito del IRS para que aparezca en su identificador de llamada y la víctima piense que la llamada es del IRS.
- Los estafadores a veces envían falsos correos electrónicos en apoyo a sus llamadas falsas.
- Las víctimas oyen ruido de fondo de otras llamadas que se están realizando que simulan un centro de llamadas.
- Después de amenazar a las víctimas con una sentencia carcelaria o con la revocación de su licencia de conducir, los estafadores cuelgan la llamada e inmediatamente llaman otros estafadores fingiendo ser de la policía local o del Departamento de Vehículos Motorizados (DMV, por sus siglas en inglés), y el identificador de llamadas respalda sus afirmaciones.
Si recibe una llamada de alguien diciendo ser del IRS, esto es lo que debe hacer:
- Si usted sabe que adeuda impuestos o si piensa que podría deber, llame al IRS al 1.800.829.1040. Las personas que contestan esa línea telefónica pueden ayudar con asuntos de pago – si es que en realidad existe tal problema.
Si usted sabe que no debe impuestos y no tiene ningún motivo para pensar lo contrario (por ejemplo, si nunca recibió una cuenta o la persona que lo llamó hizo una amenaza falsa como las descritas anteriormente), entonces llame y reporte el incidente al Treasury Inspector General for Tax Administration, (en inglés) al 1.800.366.4484.
Aurora Man Indicted and Arrested for Coercion and Enticement, Transportation as Well as Production of Child PornographyRead the Press Release
DENVER – Ryan Charles McCraw, age 37, of Aurora, Colorado, was arrested following a federal grand jury indictment on charges of coercion, enticement and production of child pornography, U.S. Attorney Bob Troyer and FBI Denver Division Special Agent in Charge Calvin Shivers announced. McCraw, who is in federal custody, appeared today before U.S. Magistrate Judge Nina Y. Wang where he was arraigned and entered a not guilty plea. He is being detained under an order from the District of Kansas.
McCraw was indicted by a federal grand jury in Denver on October 26, 2017. He first appeared in U.S. District Court in Denver on December 4, 2017 to be advised of his rights and the charges pending against him. According to the indictment as well as information presented in open court, McCraw allegedly met underage boys living in the Denver metro area through online chat services. McCraw engaged in sexually explicit conversations with the boys over the course of months, asking them to send him sexually explicit images online. He enticed the boys to meet with him, picking them up in his car if they were too young to drive. He took them to his residence and engaged in sex acts with them. McCraw filmed the sex acts and took still images of the boys, including images of bondage. He continued this course of conduct for over a year with multiple victims. McCraw boasted online that he had “trained” 12 other boys.
Authorities believe that there could be other victims of the defendant. To that end, attached please find a photo of the defendant released in hopes of determining whether there are other child victims. If you are a victim or know of someone who could be a victim of the defendant, you are asked to contact the FBI at 970-663-1028.
McCraw faces two counts of coercion and enticement and attempted coercion and enticement. Those two counts carry penalties of not less than 10 years and up to life in federal prison. He also faces two counts of production of child pornography, both of which carry penalties of not less than 15 years, and up to 30 years imprisonment. He also faces one count of transportation of child pornography, which carries for the first offense a penalty of not less than 5 years, and up to 20 years in prison.
The FBI, Longmont Police Department and Aurora Police Department investigated this matter. The 20th Judicial District assisted with this matter. The defendant is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
The defendant is presumed innocent unless and until proven guilty in a court of law
Arizona Man Convicted of Conspiracy to Defraud the Government with Respect to Claims of FraudRead the Press Release
DENVER – On November 30, 2017, Tramell Thomas, of Phoenix, Arizona, was found guilty by a jury in U.S. District Court in Denver on all counts charged stemming from a financial aid fraud scheme, announced United States Attorney Bob Troyer. Thomas was convicted of one count of conspiracy to defraud the government through 181 false Free Applications for Federal Student Aid (FAFSAs). Thomas was also convicted of six counts of aiding and abetting mail fraud resulting from the mailing of debit cards that contained federal student aid to addresses under the conspirators’ control.
In sum, the conspirators visited Department of Corrections websites for the states of Colorado, Arizona, Florida, Illinois, and Ohio, and they retrieved the names, dates of birth, and release dates of state inmates. Armed with this information, one of the conspirators obtained these inmates’ social security numbers through her employment at a bank. Once the conspirators had this information, they filled out FAFSAs requesting federal student aid to attend community colleges in Colorado and Arizona. The conspirators chose inmates serving long prison sentences, believing that these inmates were less likely to notice that their identities had been stolen. All told, the conspirators filed claims seeking approximately $1.3 million dollars. The Department of Education paid out approximately $582,000, with $419,000 of these funds forwarded to the conspirators in the form of debit cards. These funds were to be used for authorized living expenses while attending college. The remainder of the money was paid to the community colleges. Thomas’s conspirators, Heather Carr, Mercedes Diaz, and Marcelle Green, have all pled guilty and await sentencing.
“The expert investigative team and sophisticated prosecutors did a remarkable job,” said U.S. Attorney Bob Troyer. “These thieves received a well-deserved education in federal justice.”
“Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality, it’s not a personal slush fund. As the law enforcement arm of the U.S. Department of Education, ensuring that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions is a big part of our mission,” said Adam Shanedling, Special Agent in Charge of the U.S. Department of Education Office of Inspector General's Western Regional Office. "That’s why I’m proud of the work of OIG special agents and our law enforcement colleagues for holding Mr. Thomas accountable for his criminal actions.”
“The U.S. Postal Inspection Service is committed to ensuring that these types of predatory schemes are investigated aggressively,” said Acting U.S. Postal Inspector in Charge Nicole Davis of the Denver Division. “It is imperative that we continue to work with our partners to protect those vulnerable individuals in our society who unknowingly fall prey to these schemes. We cannot allow fraudsters to utilize the U.S. mail to further their schemes.”
At his April 12, 2018 sentencing hearing, Thomas faces up to 10 years in federal prison on his conspiracy conviction and up to 20 years in federal prison on each of his six mail fraud convictions. He also faces a fine of up to $250,000 on each count.
This case was investigated by the United States Department of Education, Office of Inspector General and the United States Postal Inspection Service.
This case was prosecuted by Assistant U.S. Attorneys Martha A. Paluch and Bryan D. Fields.
Amarillo Man Sentenced to 189 Months in Federal Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
AMARILLO, Texas —Rogelio Xochitl Amparan, 29, was sentenced this week by U.S. District Judge Sidney A. Fitzwater to 189 months in federal prison terms for his role in a methamphetamine distribution conspiracy, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Amparan has been in custody since his arrest in June 2017 on a related federal criminal complaint. He pleaded guilty in September 2017 to one count of possession with intent to distribute 500 grams or more of methamphetamine.
Co-defendants Miguel Angel Bravo-Farias, 41, and Hector Terrazas, 25, were also arrested in June 2017. Bravo-Farias and Terrazas pleaded guilty to their roles and are awaiting sentencing.
According to the plea agreement factual resume, on June 8, 2017, an operation was conducted to purchase 20 pounds of methamphetamine from Bravo-Farias, an illegal immigrant, and Terrazas. When law enforcement agents met with Bravo-Farias and Terrazas they were in possession of a box containing a large amount of methamphetamine and were arrested at the scene.
During the operation, Amparan was observed leaving Terrazas’ residence. He was stopped by law enforcement and arrested for having a suspended registration.
A search of Terrazas’ residence revealed 2 containers with crystal like residue and 34 empty glass bottles with crystal like substance on the spouts in a bedroom. In the refrigerator, there were multiple containers containing a total of approximately 5,498 grams of liquid methamphetamine. In the same room was a closet that was converted into a work station with drying equipment. The closet contained fans and opened igloo style containers. On the floor there were used plastic gloves and utensils that had crystal like substance on them. The residence was used as a conversion lab from liquid to crystal methamphetamine.
During an interview, according to the plea agreement factual resume, Amparan admitted that he was involved in the methamphetamine operation. Amparan stated that he received all the money from the sale of methamphetamine and transported the money back to his brother, who lives in Juarez, Mexico.
The Amarillo Police Department and the Drug Enforcement Administration investigated the case with assistance from the Randall County Sheriff’s Office, the Potter County Sheriff’s Office, the Texas Department of Public Safety and the Potter County District Attorney’s Office.
Assistant U.S. Attorney Anna Bell prosecuted.
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Air Force Employee Pleads Guilty to Providing Confidential Information to Companies Bidding on Federal ContractsRead the Press Release
James Gillis, 60, of Maryville, IL, pled guilty to a charge of government procurement fraud in federal court in East St. Louis, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Gillis was the Chief of Project Management for the 375th Civil Engineering Squadron at Scott Air Force Base. He admitted to knowingly disclosing confidential information to private companies bidding on contracts at Scott Air Force Base. This information gave an unfair competitive advantage to the companies receiving the information. Gillis received lunch and baseball tickets in connection with providing the confidential information.
Gillis’s sentencing hearing is scheduled for March 23, 2018, at 9:00 a.m., at the federal courthouse in East St. Louis, Illinois. The crime of government procurement fraud is punishable by up to five years of imprisonment, a fine of up to $250,000, not more than three years of supervised release, and restitution.
The investigation was conducted by agents from the United States Air Force Office of Special Investigations, Procurement Fraud Investigations. The case is being prosecuted by Assistant United States Attorney Michael J. Quinley.
"Real Time": Greenville Man Sentenced to 100 Months in Federal Prison for Gun and Drug ChargeRead the Press Release
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Justin Bailey Rhodes, age 27, of Greenville, South Carolina was sentenced yesterday in federal court in Greenville for Possessing a Firearm In Furtherance of a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c). United States District Judge Bruce Howe Hendricks, of Charleston, sentenced Rhodes to 100 months imprisonment and 5 years of supervised release.
Evidence presented at the change of plea hearing established that on March 25, 2016, South Carolina Department of Probation and Parole were conducting a home visit on parolee Justin Bailey Rhodes at his residence. Officers searched Rhodes apartment and found bags of marijuana, drug paraphernalia, and a Bersa Model Thunder .380 caliber semi-automatic pistol loaded with four rounds of ammunition. A trace was conducted on the firearm, which was found to have been stolen. Rhodes was arrested and has remained in custody since.
Rhodes’s case was expedited for federal prosecution pursuant to Operation “Real Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community. “Real Time” is a working collaboration between local, state, and federal law enforcement as well as state and federal prosecutors.
The case was investigated by agents of the ATF, South Carolina Department of Probation and Parole, and Greenville Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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6 December 2017
“Los Cachiros” Drug Trafficker Pleads Guilty to Cocaine ConspiracyRead the Press Release
RICHMOND, Va. – A Honduran man pleaded guilty today to participating in a conspiracy from 2011 to 2014 that transported over a 1,000 kilograms of cocaine on United States registered aircraft on behalf of the “Los Cachiros,” a large-scale Honduran based drug trafficking organization (DTO).
According to court documents, Willian Reyniery Medina-Escobar, 33, joined the “Los Cachiros” DTO in approximately 2011. As a member of the “Los Cachiros,” Medina-Escobar conspired with other members to transport cocaine from Apure, Venezuela to Honduras using United States registered aircraft. Specifically on behalf of the DTO, Medina-Escobar negotiated the purchase of cocaine, inspected aircraft used to make long distance drug flights, coordinated the landing of drug laden aircraft, surveilled potential clandestine aircraft landing sites in Honduras, and served as a radio operator to facilitate communication between pilots and the ground crew for drug laden flights. On Oct. 27, 2013, Medina-Escobar assisted in the landing of a United States registered aircraft in Limon, Honduras, that transported 1,025 kilograms of cocaine from Apure, Venezuela.
Medina-Escobar pleaded guilty to conspiring to possess with intent to distribute five kilograms or more of cocaine on a United States registered aircraft and faces a mandatory minimum sentence of 10 years and a maximum penalty of life in prison when sentenced on March 30, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the DEA and IRS Richmond Field Offices as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Strong Moon. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Colonel David R. Hines, Hanover County Sheriff’s Office, and Colonel Thierry Dupuis, Chesterfield County Police Department, made the announcement after U.S. District Judge Henry E. Hudson accepted the plea. Assistant U.S. Attorney Erik S. Siebert and Peter S. Duffey are prosecuting 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. 3:16-cr-91.
Youngstown man charged with selling heroin and crack cocaine near a schoolRead the Press Release
A Youngstown man was charged with selling heroin and crack cocaine near a school, law enforcement officials said
Anthony A. Scrutchen, Jr., 31, distributed heroin within 1,000 feet of the Youngstown Academy of Excellence, a public elementary school, on at least eight occasions between October 2016 and January 2017, according to the 10-count criminal information.
Scrutchen possessed with the intent to distribute crack cocaine within 1,000 feet of the Youngstown Academy of Excellence in January 2017, according to the information.
Scrutchen is also charged with maintained a location at 173South Jackson Street in Youngstown for the purpose of distributing narcotics, according to the information.
“Selling drugs responsible for killing thousands of our friends and relatives so close to a school is particularly reprehensible,” said U.S. Attorney Justin Herdman. “Law enforcement will continue to work shut off the flow of opioids into our neighborhoods.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the information was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mahoning Valley Task Force and the Youngstown Police Department. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An information 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.
York County Man Convicted of Child Pornography OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert E. Miller, III, age 34, of York County, Pennsylvania, was convicted of being in the possession of images depicting the sexual exploitation of children and receipt of obscene visual representations depicting the sexual abuse of children. The three-day trial was held before United States District Court Judge John E. Jones, III.
According to United States Attorney David J. Freed, the jury returned the guilty verdict after approximately 1.5 hours of deliberation. The case originated when the FBI Major Case Coordination Unit sent a lead to the FBI Harrisburg office regarding a user browsing a known child pornography website. After obtaining a search warrant, federal and local law enforcement officers located hundreds of images and videos containing child pornography and obscene material depicting the sexual abuse of children, including violent rape, sodomy, bondage and forcible penetration with an object.
This case was investigated by the Federal Bureau of Investigation and the Northern York County Regional Police Department. Assistant United States Attorneys Daryl Bloom and Carlo Marchioli 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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for Count one is 10 years’ imprisonment, a lifetime of supervised release following imprisonment, and a $250,000 fine. The maximum penalty under federal law for Count two is 20 years’ imprisonment, a lifetime of supervised release following imprisonment, and a $250,000 fine. Count two carries a mandatory term of five years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Would-Be Soccer Stadium Developer Sentenced to 3 Years in PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JAMES C. DUCKETT JR., 45, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for his role in a fraud scheme involving the redevelopment of Hartford’s Dillon Stadium and a plan to bring a professional soccer team to the city. On July 6, a jury found DUCKETT guilty of conspiracy, fraud and money laundering offenses stemming from the scheme.
According to the evidence at trial, in September 2014, the City of Hartford entered into a professional services agreement with Mitchell Anderson and his company, Premier Sports Management Group (“PSMG”), to secure a professional soccer team and to develop a new, 9,000 seat facility at the Dillon Stadium location. Under the terms of the agreement, PSMG was entitled to receive $775,000 for serving as the project manager for the $12 million plan. In February 2015, Anderson joined with DUCKETT who agreed to be the majority owner of the professional soccer team. DUCKETT and Anderson represented to various city officials that PSMG and DUCKETT’s Black Diamond Consulting Group had merged for purposes of completing the Dillon Stadium project and securing the professional soccer team. DUCKETT represented that he was a former professional football player in the NFL and that Black Diamond was involved in a casino project and sports-related projects in Las Vegas and Atlanta.
Beginning in approximately March 2015, Anderson submitted invoices to the city for reimbursement to PSMG subcontractors working on the project. However, rather than pay the total amounts owed to PSMG’s subcontractors, DUCKETT and Anderson directed more than $1 million that PSMG received from the city to themselves, PSMG, Black Diamond, and other entities not related to the Dillon Stadium project. DUCKETT and Anderson also secured invoices from subcontractors who had not performed work for the project, which DUCKETT and Anderson caused to be submitted to the city as if the work had been performed. DUCKETT and Anderson then illegally used the proceeds of the fraud in a series of bank transactions to pay individuals and companies for expenses unrelated to the Dillon Stadium.
The investigation revealed that DUCKETT used funds that the city provided to PSMG to purchase a Range Rover that cost approximately $120,000, to pay unrelated attorneys’ fees and a $20,000 “finder’s fee” to an individual, and for other personal expenses including luxury clothing and jewelry items.
DUCKETT was arrested on June 23, 2016.
The jury found DUCKETT guilty of one count of conspiracy to commit mail and wire fraud, three counts of wire fraud, and eight counts of conducting illegal monetary transactions. The jury found DUCKETT not guilty of one count of conducting illegal monetary transactions.
The government advocated for a sentence of 60 months of imprisonment.
Judge Underhill will issue a restitution order after further submissions by the parties.
DUCKETT, who is released on bond, was ordered to report to prison on January 31, 2018.
On February 6, 2017, Anderson pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, and one count of conducting illegal monetary transactions. He awaits sentencing. Anderson has agreed to make restitution in the total amount of $1,134,595.37 to the City of Hartford and two subcontractors of the Dillon Stadium project.
This matter was investigated by the Connecticut Public Corruption Task Force, notably the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The Task Force also includes members from the U.S. Department of Housing and Urban Development- Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Postal Inspection Service. The Hartford Police Department assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Douglas Morabito.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Warwick Resident Convicted of Meth Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, RI – A Warwick man faces statutory penalties of 5 years to life in federal prison when he is sentenced in March after a jury in Providence convicted him of trafficking methamphetamine and being a felon in possession of a firearm which he used in furtherance of his drug trafficking activities.
Jon Cascella, 49, of Warwick, was convicted yesterday on four counts of distribution of methamphetamine, two counts of distribution of 5 grams or more of methamphetamine, and one count each of possession with intent to distribute 5 grams or more of methamphetamine, being a felon in possession of a firearm arm and possession of a firearm in furtherance of drug trafficking.
Cascella’s conviction is announced by Acting United States Attorney Stephen G. Dambruch; Mickey Leadingham, Special Agent in Charge of the Boston Field Division of Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Warwick Police Chief Colonel Stephen M. McCartney.
According to the government’s evidence presented at trial, on five occasions between March 29 and May 4, 2017, Cascella sold between 1.5 grams and 7.7 grams of methamphetamine to a Warwick undercover police officer for between $100 and $750. The transactions were electronically monitored and recorded. Beginning shortly after the first transaction, Cascella repeatedly expressed an interest in purchasing a firearm for protection. The undercover officer agreed to assist Cascella obtain a firearm.
According to the government’s evidence, on May 4, 2017, Cascella met with an ATF undercover agent who exchanged a .380 caliber semi-automatic handgun and $600 in cash for 7.4 grams of methamphetamine. A storage garage where the transaction for the firearm took place was outfitted with several law enforcement video and audio recording devices. Cascella was arrested moments after he took possession of the firearm.
A court authorized search of Cascella’s residence following his arrest resulted in the seizure of approximately 9.6 grams of methamphetamine.
According to the government’s evidence, following his arrest Cascella told investigators that he needed the firearm for protection because methamphetamine had been stolen from his residence. Kent admitted to investigators that he previously served five year prison sentences in Texas and Florida, having been convicted in each state on bank robbery charges.
Cascella will be sentenced by U.S. District Court Chief Judge William E. Smith on March 2, 2018.
Distribution of methamphetamine is punishable by statutory penalties of up to 20 years imprisonment followed by 3 years to lifetime supervised release, and a fine of $1,000,000; distribution of 5 grams or more of methamphetamine and possession with intent to distribute 5 grams or more of methamphetamine are punishable by up to 40 years imprisonment followed by up to 4 years to lifetime supervised release, and a fine of $8,000,000; felon in possession of a firearm is punishable by up to 10 years imprisonment followed by 3 years supervised release, and a fine of $250,000; and possession of a firearm in furtherance of a drug trafficking crime is punishable by up to life in federal prison – with a mandatory minimum sentence of 5 years in prison, to be followed by 3 years supervised release, and a fine of $250,000.
Casella has been detained in federal custody since his arrest on May 4, 2017.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
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Volkswagen Senior Manager Sentenced to 84 Months in Prison for Role in Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
The former general manager of Volkswagen AG’s (VW) U.S. Environment and Engineering Office was sentenced today 84 months in prison for his role in VW’s scheme to sell diesel “clean diesel” vehicles containing software designed to cheat U.S. emissions tests.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of FBI’s Detroit Field Office and Acting Assistant Administrator Larry Starfield, for the Environmental Protection Agency (EPA)’s Office of Enforcement and Compliance Assurance made the announcement.
Oliver Schmidt, 48, a citizen and resident of Germany, was sentenced by U.S. District Judge Sean F. Cox of the Eastern District of Michigan, who also ordered Schmidt to pay a criminal penalty of $400,000. Schmidt pleaded guilty on Aug. 4 to one count of conspiracy to defraud the United States, to commit wire fraud and to violate the Clean Air Act, and to one count of violating the Clean Air Act.
“Upon learning of Volkswagen’s massive scheme to defraud and mislead U.S. consumers and regulators, Oliver Schmidt chose to join the conspiracy and deceive U.S. regulators,” said Acting Assistant Attorney General Cronan. “This case, along with the prior prosecution of the company and another Volkswagen engineer, further demonstrate the Criminal Division’s unwavering commitment to hold both corporations and individuals accountable for their wrongdoing.”
“Oliver Schmidt cheated the American people, and today’s sentencing shows that such behavior will be prosecuted to the fullest extent of the law,” said Deputy Assistant Attorney General Williams. “The Department of Justice and its partner agencies will continue to work together to ensure a level playing field for all competitors and a cleaner environment for all Americans.”
“This sentence reflects how seriously we take environmental crime,” said Acting U.S. Attorney Lemisch. “Protecting natural resources is a priority of this office. Corporations, and individuals acting on behalf of corporations, will be brought to justice for harming our environment.”
“Americans expect corporations to follow laws and regulations designed to protect consumers and the environment,” said FBI Special Agent in Charge Gelios. “The sentence of Mr. Schmidt demonstrates the Department of Justice’s commitment to hold companies that defraud their customers both personally, as well as, corporately accountable for their crimes.”
“As this case demonstrates, EPA is committed to ensuring a level playing field for companies that follow the rules and pursuing individuals whose actions create an unfair competitive advantage for their employer,” said EPA Acting Assistant Administrator Starfield.
In connection with his guilty plea, Schmidt admitted that he agreed with VW employees to mislead and defraud the United States and domestic customers who purchased diesel vehicles, and to violate the Clean Air Act. Schmidt first learned during the summer of 2015 that certain VW diesel vehicle models contained a defeat device, or software that detected the difference between when the car was undergoing standard U.S. emissions testing and when it was being driven under normal conditions on the road. If the vehicle recognized that it was not being tested, many of its emissions control systems were significantly reduced, resulting in NOx emissions that were sometimes 30 times higher than U.S. standards. Schmidt admitted to participating in discussions with other VW employees in the summer of 2015 on how to coordinate responses to questions from U.S. regulators about VW’s diesel vehicles without admitting to the defeat device contained in vehicles. On the instructions of management, Schmidt met with U.S. regulators twice in August 2015 and attempted to obtain approval for the sale of additional VW diesel vehicles without disclosing what he knew was the truth – that the real reason for the high emissions on the road was that VW had intentionally installed software designed to cheat emissions testing.
Schmidt further admitted that he knew during his participation in the conspiracy that the VW “clean diesel” vehicles were being marketed to the public as being environmentally friendly and promoting increased fuel economy while complying with U.S. environmental regulations. Schmidt knew that VW’s diesel vehicles were not compliant with U.S. standards and regulations and that these representations made to domestic customers were false, he admitted.
As part of his guilty plea, Schmidt agreed that during his participation in the scheme, he and his co-conspirators caused losses to victims of more than $150 million and that he obstructed justice.
The FBI’s Detroit Field Office and the EPA’s Criminal Investigation Division are investigating the case, with assistance from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Securities and Financial Fraud Unit Chief Benjamin D. Singer and Trial Attorney David M. Fuhr of the Criminal Division’s Fraud Section, Senior Trial Attorney Jennifer Blackwell of the Environment and Natural Resources Division’s Environmental Crimes Section and White Collar Chief John K. Neal of the U.S. Attorney’s Office for the Eastern District of Michigan are prosecuting the case.
United States Seeks Warrant to Seize Ring Trafficked by ISISRead the Press Release
WASHINGTON – The U.S. Department of Justice announced today that the United States is seeking a warrant to seize one of the antiquities trafficked by the Islamic State of Iraq and Syria (ISIS), a gold ring that was identified in its previously filed civil complaint and that is believed to have been confiscated by authorities in Turkey.
The United States also amended its year-old forfeiture complaint to add three additional antiquities, with a total of seven items now included in the lawsuit. The amended complaint alleges that ISIS, which is designated by the U.S. Department of State as a Foreign Terrorist Organization, markets and sells antiquities to finance its terror operations.
The amended complaint, filed in the U.S. District Court for the District of Columbia, seeks the forfeiture of seven archaeological properties that were depicted in photographs found during a raid of a residence of Abu Sayyaf, a senior leader within ISIS, in Deir Ezzor, Syria, in May 2015. The original items included a gold ring, two gold coins, and a carved stone. The amended complaint adds a gold brooch as well as a gold necklace with a matching brooch. These items date to ancient times and are believed to be worth hundreds of thousands of dollars.
In a related filing, the United States submitted a motion seeking authority to seize the gold ring identified in the complaint. The filing indicates that there is probable cause to believe that ISIS attempted to facilitate the transfer of the ring to a Syrian antiquities trafficker, who sold the gold ring to a person in Turkey for approximately $250,000. This same Syrian antiquities trafficker also sold additional antiquities contained in the larger set identified in the amended complaint. According to the amended complaint, Turkish law enforcement subsequently confiscated the gold ring.
The initial lawsuit was filed in December 2016, following an investigation into items seized in the raid of Abu Sayyaf’s residence. During the operation, Abu Sayyaf was killed when he engaged with U.S. military forces.
According to the amended civil complaint, the United States recovered data from electronic media during the raid, including photographs of the properties at issue. These documents additionally revealed a significant amount of information about the organizational structure of ISIS and Abu Sayyaf’s position within the network. For example, according to the lawsuit, in multiple documents written on ISIS letterhead, Abu Sayyaf referred to himself as the President of the Ministry of Natural Resources Antiquities Department and discussed depositing the proceeds of their trafficking into ISIS’s treasury.
The subsequent investigation has revealed that antiquities, including at least one of the antiquities in the complaint, were being sold in U.S. dollars as part of these efforts.
At the height of its influence, ISIS controlled large swathes of land in Syria and Iraq, including multiple UNESCO World Heritage Sites and other sites that contain archaeological and ethnological materials that are important to the cultural heritage of the people of Syria and Iraq. The complaint states that ISIS created a sophisticated system for extracting wealth from these resources, including through the sale and trafficking of antiquities. According to the complaint, Abu Sayyaf’s antiquity trafficking directly financed ISIS.
Under United States law, all assets, foreign or domestic, of a terrorist or terrorist organization, and all assets, foreign or domestic, affording a source of influence over any such entity or organization, are subject to forfeiture.
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“These court actions are the latest step in an ongoing effort to disrupt the ability of ISIS and other terrorist groups to finance their operations,” said Jessie K. Liu, U.S. Attorney for the District of Columbia. “They reflect our determination to locate precious stolen antiquities and preserve the cultural heritage of ancient sites that fell under ISIS’s control.”
“The FBI continues to work tirelessly with its partners to recover these precious antiquities stolen by ISIS, who sold them on the black market in order to finance their terrorist operations,” said Andrew W. Vale, Assistant Director in Charge of the FBI's Washington Field Office. “ISIS members extorted and threatened to arrest anyone outside of the terrorist organization who attempted to excavate, sell or transport antiquities from the territory under their control.”
“The State Department is working to ensure full implementation of the multiple UN Security Council resolutions that prohibit all forms of financial support to ISIS and other terrorist groups,” said Principal Deputy Assistant Secretary of State for Educational and Cultural Affairs Jennifer Zimdahl Galt. “We applaud the work of DOJ and the FBI to prevent the trade in Iraqi and Syrian cultural property.”
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According to the complaint, Abu Sayyaf’s electronic media contained a number of images of antiquities. The documentary style, lighting and focus of the photographs indicate that these images were prepared for marketing in order to sell the items internationally.
The United States sought authority to seize the following item identified in the complaint that was filed last year:
The United States sought authority to seize the following item identified in the complaint that was filed last year:
Defendant Property 1: Gold ring with carved gemstone
This ring is believed to be from the Hellenistic/Roman period, dating approximately from 323 BC to 31 BC, and to have come from Deir Azzour, Syria, which is where the raid against Abu Sayyaf occurred.
The amended complaint alleges that the following additional items are subject to forfeiture:
Defendant Property 5: Gold brooch with a cameo of Minerva or Athena
This item is believed to have been produced in the third century A.D. by the same workshop that supplied similar items to elite residents of the Roman city of Dura Europos. It is estimated to be worth approximately $30,000.
Defendant Properties 6 and 7: Gold necklace with a coin featuring Emperor Gordian III and a matching brooch
These items are also believed to have been produced in the third century A.D. by the workshop that supplied similar items to elite residents of Dura Europos. The coin is believed to date to approximately 238-244 A.D. and features a bust of Roman Emperor Gordian III facing right and wearing a laurel wreath. Each of the two properties is estimated to be worth approximately $50,000.
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The amended lawsuit is captioned United States v. One Gold Ring with Carved Gemstone, an Asset of ISIL, Discovered on Electronic Media of Abu Sayyaf, President of ISIL Antiquities Department; One Gold Coin Featuring Antoninus Pius, an Asset of ISIL, Discovered on Electronic Media of Abu Sayyaf, President of ISIL Antiquities Department; One Gold Coin Featuring Emperor Hadrian Augustus Caesar, an Asset of ISIL, Discovered on Electronic Media of Abu Sayyaf, President of ISIL Antiquities Department; One Carved Neo-Assyrian Stone Stela, an Asset of ISIL, Discovered on Electronic Media of Abu Sayyaf, President of ISIL Antiquities Department; One Gold Brooch with a Cameo of Minerva, an Asset of ISIL, Discovered on Electronic Media of Abu Sayyaf, President of ISIL Antiquities Department; One Gold Necklace with a Coin Featuring Emperor Gordian III, and a Matching Brooch with an Inset, Undecorated Stone, an Asset of ISIL, Discovered on Electronic Media of Abu Sayyaf, President of ISIL Antiquities Department. The claims made in the complaint are only allegations and do not constitute a determination of liability.
This case is being investigated by the FBI’s Washington Field Office and the U.S. Attorney’s Office for the District of Columbia. Assistance has been provided by the U.S. Department of State. Assistant U.S. Attorneys Zia M. Faruqui, Deborah Curtis, Brian P. Hudak, Christopher B. Brown, and Ari Redbord and Paralegal Specialist Toni Anne Donato, all from the U.S. Attorney’s Office for the District of Columbia, are representing the government.
Two Rhode Island Women Charged with Conspiracy to Commit Mail FraudRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Johanna Calderalo, age 45, and Ana Calderalo, age 71, both of Cranston, Rhode Island, were charged on December 5, 2017, in a criminal information with conspiracy to commit mail fraud.
According to United States Attorney David J. Freed, the criminal information alleges that while working at a bank in Rhode Island, Johanna Calderalo changed the mailing address of the victim to a residence in Scranton, Pennsylvania and had an ATM card sent to the new address. Ana Calderalo travelled to the Scranton address to obtain the ATM card and directed an individual to make multiple withdrawals from the account totaling $56,400.
The case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Jenny P. Roberts.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Mexican nationals plead guilty to immigration crimesRead the Press Release
CHARLESTON, W.Va. – Two Mexican nationals pleaded guilty today to immigration crimes, announced United States Attorney Carol Casto. Rogelio Herrera-Hernandez, 50, and Jose Martinez-Santos, 30, entered guilty pleas to illegally reentering the United States after having been removed.
On September 18, 2017, Herrera-Hernandez was identified riding a bicycle in Ripley by agents of the Department of Homeland Security. Agents recognized him from a prior encounter in 2009, and Herrera-Hernandez confirmed his identity when they stopped the bike. Fingerprint comparison confirmed that Herrera-Hernandez had three prior removals from the United States, one on September 1, 2009, in Charleston, another on December 10, 2009, in Laredo, Texas, and another on December 11, 2009, also in Laredo. On each occasion after being removed, he then illegally reentered the United States. Herrera-Hernandez admitted that he had not formally applied for permission to legally enter the United States.
In a separate prosecution, Martinez-Santos was identified by Department of Homeland Security agents in Charleston on September 26, 2017. He was a passenger in a van that was stopped by agents looking for another individual believed to be in the country illegally. Martinez-Santos confirmed his identity during the stop, and gave a sworn statement admitting that he had reentered the United States illegally. Agents also learned through fingerprint comparison that Martinez-Santos had two prior removals from the United States, one on March 3, 2011, in Staunton, Virginia, and another on September 6, 2015, in Henrico, Virginia. On both occasions after being removed, he then illegally reentered the United States. Martinez-Santos also admitted that he had not formally applied for permission to legally enter the United States.
Herrera-Hernandez and Martinez-Santos both face up to two years in federal prison when they are sentenced on March 1, 2018. They are also both subject to removal proceedings at the conclusion of the cases.
The investigations were conducted by the Department of Homeland Security. Assistant United States Attorney Erik S. Goes is in charge of the prosecutions. The plea hearings were held before United States District Judge Joseph R. Goodwin.
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Two Men Sentenced to Prison on Federal Drug ChargesRead the Press Release
Natchez, Miss. – Donyale Jerrel Holloway, 37, of Bogue Chitto, Mississippi, and Ennis Montgomery, 48, of Rockford, Illinois, were sentenced on December 5, 2017, by Senior U.S. District Judge David C. Bramlette III, for conspiracy to possess with intent to distribute 50 kilograms or more of marijuana, announced U.S. Attorney Mike Hurst.
Holloway was sentenced to 211 months in prison followed by three years of supervised release and ordered to forfeit $53,674.00. Montgomery was sentenced to 51months in prison followed by three years of supervised release. Both defendants were also ordered to pay a $1500.00 fine.
The defendants were arrested after a lengthy investigation into a drug trafficking organization operating in South Mississippi. Montgomery was transporting marijuana in an 18-wheeler from Texas to Lincoln County, Mississippi. Holloway would then distribute the marijuana in Southwest Mississippi.
The case was investigated by the Federal Bureau of Investigation Safe Streets Task Force in Hattiesburg, the Mississippi Bureau of Narcotics, the Mississippi Bureau of Investigation, the Office of the Mississippi State Auditor, the Marion County Sheriff’s Office, the Lincoln County Sheriff’s Office, and the Hattiesburg Police Department. It was prosecuted by Assistant U.S. Attorney Jerry L. Rushing
Two Men Charged in Theft of over $2 Million in Stock Certificates from Deceased Manhattan WomanRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging STEPHEN DECKER and LUIS MERCADO with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft in connection with a scheme to steal more than $2 million in stock certificates from the apartment of a deceased Manhattan woman, and then use those stolen assets to attempt to purchase over $2 million worth of gold coins. DECKER and MERCADO were arrested this morning in Manhattan. The defendants will be presented before U.S. Magistrate Judge James L. Cott in Manhattan federal court this afternoon. The case has been assigned to U.S. District Judge Lewis A. Kaplan.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, these defendants preyed on a deceased New Yorker’s estate by stealing millions in stock certificates from her home. Then, in an attempt to cover their tracks, the defendants allegedly sold the certificates and tried to purchase more than $2 million in gold coins so that the ill-gotten gains couldn’t be traced to them. Thanks to the outstanding investigative work of the FBI, the defendants will now be held accountable for their brazen actions.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, when Decker and Mercado cashed out on stolen stock certificates, their right to ownership was nothing more than fool’s gold. Not only did the certificates not belong to them, their rightful owner was an elderly deceased woman with no representatives to stake her claim. Taking advantage of those who are powerless to defend themselves or their legacy has always been, and will always be, an inexcusable crime.”
According to the Indictment[1] unsealed today in federal court:
From March 2016 to February 2017, DECKER and MERCADO engaged in a scheme designed to steal over $2 million from a deceased Manhattan woman (the “Victim”). As part of the scheme, DECKER and MERCADO stole stock certificates valued at over $2 million from the Victim’s Manhattan apartment after the Victim’s death in March 2016. In August 2016, based on false representations made by DECKER and MERCADO, a financial institution (“Company-1”) opened a brokerage account (the “Account”) in the Victim’s name. DECKER and MERCADO then deposited the stolen stock certificates into the Account. In September 2016, based on additional false representations made by DECKER and MERCADO, Company-1 sold the shares in the brokerage account opened in the Victim’s name, resulting in a cash balance in the Account of more than $2 million. DECKER and MERCADO then attempted to purchase over $2 million in gold coins using the assets in the Account.
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The Indictment charges DECKER, 59, of Secaucus, New Jersey, and MERCADO, 53, of Manhattan, New York, each with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Alexandra N. Rothman is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations and every fact described should be treated as an allegation.
Two Members of A Nevada City-Based Conspiracy Convicted in Multi-Million Dollar Bank and Title Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Earlier today, a federal jury found two men guilty in a bank fraud scheme that sought to fraudulently eliminate home mortgages and then profit on the subsequent home sales, U.S. Attorney Phillip A. Talbert announced.
George B. Larsen, 56, formerly of San Rafael, was found guilty of conspiracy and four counts of bank fraud. Larry Todt, 65, formerly of Malibu, was found guilty of conspiracy and one count of bank fraud.
According to court documents, between April 22, 2010, and November 18, 2011, Larsen and Todt were members of a conspiracy that ran a “mortgage elimination program” purporting to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.
As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators indicated to the homeowners these entities would offer protection against the banks.
Larsen and Todt each ran branches of the mortgage elimination program, recruiting homeowners into the scheme, marshalling the necessary recorded documents, and guiding the homes through sale. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Larsen and Todt would have a sham deed of trust created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.
The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.
With title appearing to be clear, the conspirators caused the sale of the home, with the proceeds split between the co-conspirators and the homeowners.
In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes, but were unable to sell these before the scheme unraveled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Todd A. Pickles are prosecuting the case.
Three other co-defendants have previously entered guilty pleas. On April 21, 2017, Remus A. Kirkpatrick, formerly of Oceanside, pleaded guilty to one count of falsely making writings of lending associations. On May 26, 2017, Michael Romano, of Benicia, pleaded guilty to conspiracy, and on July 14, 2017, Laura Pezzi, of Roseville, pleaded guilty to falsely making writings of lending associations. They are scheduled to be sentenced on February 23, 2018. Co-defendants John Michael DiChiara, of Penn Valley, and James Castle, of Santa Rosa, are still awaiting trial. The charges against DiChiara and Castle are only allegations: both defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
In related cases, on September 4, 2015, Tisha Trites and Todd Smith, both of San Diego, pleaded guilty to related charges before U.S. District Judge Garland E. Burrell, Jr. They are scheduled to be sentenced on February 9, 2018.
Larsen and Todt are scheduled to be sentenced by U.S. District Judge Garland E. Burrell, Jr. on March 16, 2018, at which time they each face a maximum penalty of five years in prison and a $250,000 fine. The maximum penalty for bank fraud is 30 years and a $1 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tax Return Preparer Sentenced for Preparing False Tax ReturnsRead the Press Release
DALLAS — A local tax return preparer who managed a tax preparation business in Dallas, who admitted to filing fraudulent tax returns, was sentenced today, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Arslen Ramin Ayeze was sentenced by U.S. District Judge Ed Kinkeade to serve twelve months and one day in federal prison and ordered to pay $65,000 in restitution to the Internal Revenue Service (IRS). Ayeze pleaded guilty in July 2017 to one count of aiding and assisting in the preparation of a tax return and was remanded to custody following his guilty plea for a violation of his conditions of pretrial release.
According to the plea agreement factual resume filed in the case, from 2008 through 2010, Ayeze was a tax preparer doing business under the name of Universal Tax in Dallas, Texas. On January 20, 2010, Ayeze prepared and electronically filed with the IRS, a 2009 U.S. Individual Income Tax Return, Form 1040, on behalf of K.G. which was false and fraudulent. In preparing the tax return, Ayeze deceived the IRS by falsely including a business loss deduction in the amount of $10,575 for a purported sole proprietorship operated by K.G. Ayeze knew K.G. had not incurred the loss and was not entitled to claim the deduction on the tax return. The false deduction of $10,575 resulted in an actual tax loss to the United States in the approximate amount of $2,557.
The investigation was conducted by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Christopher Stokes prosecuted.
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Suffolk Woman Sentenced for $1.6 Million Tax Return FraudRead the Press Release
NORFOLK, Va. – A Suffolk woman was sentenced today to 57 months in prison for her role in a fraud scheme that prepared hundreds of false tax returns that resulted in a loss of approximately $1.6 million to the United States.
According to court documents, Brenda Benn, 47, was the owner of A Plus Tax Service, later renamed NN Financial, which operated as a tax preparation business at different periods between July 2009 and February 2014. Benn, along with co-defendants Kevin Towns and Stephanie Towns, conspired to operate a business based on creating false tax returns that generated inflated refunds for their clients in order to cultivate good will and generate repeat business. They used methods such as claiming false education-related expenses, stating excessively high amounts of charitable contributions, and manipulating the amount of income to take advantage of certain tax credits. The customers did not persuade or instruct the tax preparers to generate the false returns.
Kevin Towns was sentenced on September 14 to 40 months in prison for his role in the conspiracy. Stephanie Towns was sentenced on September 27 to 10 months in prison followed by 20 months of home detention. All three defendants have been ordered to pay the government $1,683,159 in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Randy Stoker 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. 2:17-cr-30.