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6 December 2017
Six Plead Guilty to Conspiracy to Transport Undocumented AliensRead the Press Release
LAREDO, Texas – Six Texas residents have entered guilty pleas related to a human smuggling operation, announced Acting U.S. Attorney Abe Martinez.
Those pleading guilty today include brothers Lucio Segundo, 31, and Christopher Segundo, 23, of Giddings. On Monday, Francisco Segura, 29, also of Giddings; Alex De La Rosa, 23, of San Marcos; Jesus Perez, 24, of La Grange; and David Cedillo, 46, of Austin, entered their respective pleas of guilty. All admitted to a conspiracy to transport illegal aliens.
During the conspiracy, the defendants at times smuggled the undocumented aliens in the trunks of rental vehicles. More often, they were transported in trailers that had been specifically modified with false bottoms under vehicle floorboards. As many as a dozen aliens could be transported at one time lying down in those false compartments. Construction materials would be placed on the trailers to make it appear that the trailers were carrying legitimate loads.
Various drivers were recruited to transport the aliens northbound from Laredo through Border Patrol checkpoints between Nov. 1, 2015, and July 1, 2017.
U.S. Magistrate Judge Guillermo Garcia accepted the pleas today. All will remain in custody pending their sentencing hearings which will set in the near future before U.S. District Judge Diana Saldaña.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Michael Bukiewicz and Alfredo De La Rosa are prosecuting the case.
Several Local Residents in Custody in Operation City ShieldRead the Press Release
CORPUS CHRISTI, Texas – A total of 12 Corpus Christi men are now in custody following enforcement actions resulting from Operation City Shield, a joint venture to identify violent offenders, stop gun violence and protect the community, announced Acting U.S. Attorney Abe Martinez.
Each defendant has been charged in separate and unrelated indictments for federal firearms and/or narcotics violations.
A federal grand jury charged Adam Flores, 36, Joe Parker, 30, Justin Moreno, 27, Jessie Zuniga, 36, Cruz Gonzalez, 29, Fred Corona, 24, Akeem Olajuwon Edwards, 30, Gavino Flores, 24, and Adam Rodriguez, 35, for being felons in possession of firearms and ammunition.
In a separate indictment, Andrew Hernandez, 34, is charged with knowingly and intentionally possessing with intent to distribute a synthetic cannabinoid mixture and a substance containing a detectable amount of a schedule I controlled substance analogue. Hernandez is also charged with using a firearm in furtherance of a drug trafficking crime and with being a felon in possession of a firearm and ammunition.
Zuniga, Parker, Andrew Hernandez, Moreno, Adam Flores and Corona were taken into custody yesterday and made their initial appearance before U.S. Magistrate Judge Jason Libby. At that time, they were ordered temporarily into custody pending detention hearings set for Friday, Dec.. 8, at 9:00 a.m. Edwards, Gavino Flores, Rodriguez and Gonzalez had already been in custody and are expected in federal court on the new charges in the near future.
Both Cody Hernandez, 27, and Timothy Allen, 38, were indicted previously for being felons in possession of a firearm and ammunition. Allen was also charged with possessing with intent distribute methamphetamine. Allen has already pleaded guilty to both of his charges and is pending sentencing in January 2018. Cody Hernandez’s case is still pending.
The felon in possession of firearms charge carries a maximum penalty of 10 years imprisonment and a possible $250,000 maximum fine. Those charged with possession with intent to distribute controlled substances face up to 20 years of imprisonment and a possible $1 million maximum fine. Hernandez and Allen further face up to five years in prison for using a firearm in furtherance of a drug trafficking crime which must be served consecutively to any other prison term imposed.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; Corpus Christi Police Department; Immigration and Customs Enforcement’s Homeland Security Investigations; U.S. Marshals Service and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Rocky River executive charged with embezzling from employee retirement plan and failing to pay over taxes collected from employeesRead the Press Release
An eight-count indictment was filed charging a Rocky River business executive with collecting nearly $860,000 from his employees but not paying the money to the IRS, as well as embezzling more than $130,000 from an employee retirement plan, law enforcement officials said.
C. David Snyder, 65, served as chairman, president and chief executive officer of Attevo, Inc., a technology consulting company headquartered in Cleveland. He also served as chairman and primary shareholder at Ruralogic, Inc., headquartered in Bryan, Ohio.
Attevo employees prepared financial records and schedules, quarterly and annual returns and reports for Attevo, at Snyder’s direction. Snyder ranked Attevo’s payables in order of importance, according to the indictment.
Snyder, on behalf of Attevo, and the IRS in 2011 agreed to a monthly payment plan of $48,350 per month to repay the company’s outstanding payroll tax liabilities. Attevo made 10 payments totaling $483,500 then made no further payments, according to the indictment.
Snyder withheld payroll tax from employees but failed to pay it to the IRS. Snyder failed to pay over approximately $328,355 of employee’s portion of payroll taxes in 2010 and approximately $530,778 in 2012, according to the indictment.
Snyder created a 401(k) and profit-sharing plan for Attevo employees in 2009. Ruralogic was added to the plan in 2010. The plan was funded through employee payroll deferrals. Between 2010 and 2012, Snyder failed to pay into the plan approximately $130,415 in contributions and loan repayments withheld from Attevo and Ruralogic employee wages, according to the indictment.
During the time of his alleged criminal conduct, Snyder paid approximately $510,000 for the rental of his personal residence in Lakewood and his vacation home in Chautauqua County, New York. He took cash advances from Attevo’s credit card and then caused approximately $82,237 in cash to be deposited into his bank account and $182,988 to be deposited into his wife’s bank account. His wife did not work for Attevo, according to the indictment.
Snyder earned income from Attevo totaling approximately $850,132 between 2009 and 2011, according to the indictment.
“This defendant embezzled money from an employee retirement account and did not pay to the IRS money he withheld from his employees’ paychecks, all while living a lavish lifestyle,” U.S. Attorney Justin E. Herdman said.
“Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service,” said IRS Special Agent in Charge Ryan Korner. “The failure to pay over withheld taxes results in the loss of tax revenue to the United States government and the loss of future Social Security or Medicare benefits for employees.”
“An important mission of the Office of Inspector General is to investigate allegations relating to labor racketeering and theft of pension funds covered by ERISA. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the United States Department of Labor, Office of Inspector General.
This case was investigated by the Internal Revenue Service – Criminal Investigations and the U.S. Department of Labor – Office of Inspector General. It is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Megan R. Miller.
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.
An indictment is 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.
Robeson County Man Sentenced for Drug TraffickingRead the Press Release
GREENVILLE –United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced DARWIN DIAL, JR., 30, of Maxton, North Carolina to 135 months imprisonment, followed by 4 years of supervised release.
DIAL was named in an Indictment filed on April 24, 2017 charging him with conspiracy to distribute and possess with the intent to distribute 28 grams or more of cocaine base (crack). On September 11, 2017, DIAL pled guilty to that charge.
According to the investigation, in 2016, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Robeson County Sheriff’s Office initiated an investigation into the drug trafficking activities of DIAL. Between March of 2016 and May 2017, DIAL was held accountable for the distribution or possession with intent to distribute over 600 grams of cocaine base (crack).
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Robeson County Sheriff’s Office. Assistant United States Attorney Lawrence J. Cameron represented the government.
Registered Sex Offender Indicted for Sex Offenses Against MinorRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin, announced that on December 5, 2017, a federal grand jury returned an indictment against James A. Huskisson, also known as Jason Desantes (age: 45) of Ozone Park, New York.
Huskisson faces charges alleging he sexually exploited a minor and coerced or enticed that minor to engage in illicit sexual activity contrary to Title 18, United States Code, Sections 2251(a) and 2422(b). Huskisson was previously convicted of two separate charges of 1st degree forcible rape in the State of New York. He spent time in prison for those crimes and is a lifetime sex offender registrant under the laws of that state. As such, he faces a third charge for the commission of a felony sex offense by an individual required to register as a sexual offender contrary to Title 18, United States Code, Section 2260A. If convicted of the charges, Huskisson will serve at least 25 years in federal prison and up to a life sentence.
Huskisson is alleged to have initiated an online relationship with a minor using popular online messaging systems to correspond. Shortly after establishing contact with the minor, he began sending digital images of his genitalia, as well as demanding sexually explicit photographs from the minor. Within two weeks of contacting the minor online, Huskisson allegedly travelled from his home in Ozone Park, New York to Wisconsin for the purpose of engaging in illicit sexual activity with the minor victim.
When local authorities learned of the allegations, they contacted the Federal Bureau of Investigation’s Green Bay Office for assistance. In coordination with the F.B.I.’s New York Field Office, Huskisson was arrested near his home in New York, and is currently in the custody of the United States Marshal Service for transportation to the United States District Court in Green Bay.
This case was investigated by the F.B.I.’s offices in Green Bay and New York City, the Shawano County Sheriff’s Office, the Shawano Police Department, the Brown County Internet Crimes Against Children (ICAC) Task Force, the New York Police Department, and the U.S. Marshal’s Service. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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For further information contact:
Public Information Officer Dean Puschnig (414) 297-1700
Passaic County, New Jersey, Man Sentenced to 37 Months in Prison for Taking Bribes for Referring Tests to New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – An internal medicine doctor with a practice in West New York, New Jersey, was sentenced today to 37 months in prison for accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
Jorge J. Figueroa, 59, of Wayne, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to accepting bribes. Judge Chesler imposed the sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
Figueroa admitted that he had accepted checks, cash and other bribe payments totaling approximately $200,000 from BLS employees and associates between May 2007 and April 2013. In exchange, Figueroa generated more than $1.4 million in lab business for BLS.
The investigation has thus far resulted in 51 convictions – 37 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $13 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
In addition to the prison term, Judge Chesler sentenced Figueroa to one year of supervised release and fined him $7,500. He must also forfeit $199,899.
U.S. Attorney Fitzpatrick credited special agents of the New Jersey FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph V. Cronin in Newark, with the ongoing investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Assistant U.S. Attorney Barbara Ward, deputy chief of the asset forfeiture program.
The New Jersey U.S. Attorney’s Office reorganized its health care fraud practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.37 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Orthopedist and Former Anesthesiologist Sentenced for Drug Conspiracy and Alien Smuggling ChargesRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Fred Joseph Turner (60, Sarasota) and Rosetta Valerie Cannata (61, Osprey) to 12 years and 7 months in federal prison for conspiring to dispense controlled substances for no legitimate medical purpose and outside the usual course of medical practice, dispensing controlled substances, and conspiring to smuggle an alien into the United States. As part of the sentences, the Court also entered a $232,020 money judgment against Turner, and a $73,148 money judgment against Cannata, representing the proceeds of the charged criminal conduct. A federal jury found them guilty on July 20, 2017.
According to court documents, from March 2011 through July 2015, Turner, an orthopedist, and Cannata, a former anesthesiologist, operated Gulfshore Pain and Wellness Centre, a pain management clinic with offices in Tampa and Punta Gorda. Turner and Cannata rarely conducted physical or diagnostic examinations of their patients and ignored results of patient drug screens when they prescribed excessive amounts of opiates, including oxycodone, hydrocodone, hydromorphone, and morphine.
During the investigation, several law enforcement officers entered the clinic in undercover capacities as patients. On one occasion, Turner and Cannata asked the undercover agent to smuggle a Hungarian national into the United States. In return, Turner prescribed the agent an increased amount of oxycodone and hydromorphone, and Cannata paid him $5,000 in cash. To justify the increase in prescribed medication, Turner and Cannata instructed the agent to fabricate an injury and walked him through the process of falsifying his patient history.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorneys Carlton C. Gammons and Taylor G. Stout.
Orangeburg Man Indicted on Federal Firearms ChargeRead the Press Release
Columbia, South Carolina------Eugene Jonathan James, age 19, of Orangeburg, was charged in a 2-count indictment with being a felon in possession of a firearm and possession of a firearm with an obliterated serial number, all in violation of Title 18, United States Code, Sections 922(g)(1) and 922(k). The felon in possession charge carries a maximum of 10 years’ imprisonment, a fine of $250,000, and a term of supervised release of not more than 3 years. The obliterated serial number charge carries a maximum of 5 years’ imprisonment, a fine of $250,000, and a term of supervised release of not more than 3 years.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Cayce Department of Public Safety, the Columbia Police Department, and the South Carolina State Law Enforcement Division (SLED) and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.
The United States Attorney stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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North Suburban Chiropractor Sentenced to 20 Months in Prison for Billing Insurance Carrier for Medically Unnecessary TreatmentRead the Press Release
CHICAGO — A chiropractor who owned several clinics in the north suburbs of Chicago has been sentenced to 20 months in federal prison for billing an insurance carrier for medically unnecessary or nonexistent services.
As a licensed chiropractor and owner of the facilities, STEVEN PAUL required the clinics’ chiropractors and medical doctors to order x-rays, MRI scans and neurological diagnostic testing, without regard to medical necessity. Paul billed Blue Cross Blue Shield of Illinois for the unnecessary services, and he also billed the carrier for physical therapy services that were never provided.
Paul, 46, of Northbrook, previously pleaded guilty to one count of health care fraud. U.S. District Judge Ronald A. Guzman on Tuesday imposed the prison sentence in federal court in Chicago. Judge Guzman cited Paul’s “extraordinary cooperation” in the government’s investigation as a basis for imposing what the Judge said was the lowest possible term of imprisonment he would consider for Paul’s fraud scheme.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General.
Paul and a co-defendant, chiropractor BRADLEY MATTSON, jointly owned six chiropractic clinics in the north suburbs of Chicago: Hawthorn Physical Medicine, Woodfield Physical Medicine, Stratford Physical Medicine, Algonquin Physical Medicine, Northshore Physical Medicine, and Cumberland Physical Medicine.
Paul and Mattson admitted in plea agreements that they required patients to receive an initial x-ray and a pre-set schedule of clinic visits for a period of six months, without regard to the medical necessity of the visits. Paul admitted that from 1999 to 2008, he directed billings to Blue Cross Blue Shield totaling $3.65 million for medically unnecessary tests or physical therapy services that were not provided, and his clinics collected $1.33 million in fraudulent reimbursements from the insurance company.
During the investigation, an undercover FBI agent visited the Hawthorn clinic for treatment of a purported back strain. Mattson diagnosed the agent with a pinched nerve and ordered a pre-set treatment plan that began with daily visits for two weeks. Mattson rendered his diagnosis despite the opinion of the clinic’s medical doctor and a physical therapist that the agent did not have a pinched nerve but rather a pulled muscle.
Mattson, of Lake Forest, pleaded guilty to health care fraud and was sentenced in 2012 to six and a half years in prison.
The government is represented by Assistant U.S. Attorney Renai S. Rodney.
Nineteen Defendants Charged with Conspiracy to Distribute Heroin, Fentanyl and Cocaine, Money Laundering, and Bankruptcy FraudRead the Press Release
United States Attorney Gregory Haanstad announced today that the following nineteen (19) defendants have been charged in federal court with offenses related to a conspiracy to distribute heroin, fentanyl and cocaine, as well as money laundering and bankruptcy fraud:
Clifton Morrison, age 51
Jose Rodriguez, age 67
Miguel Rodriguez, age 68
Samuel Flores-Morales, age 39
Luis Nevarez, age 27
Brenda Y. Valverde, age 29
Ronnie McFadden, age 47
Dewayne Alexander, Sr., age 48
Frederick R. Perry, age 56
David Wilder III, age 50
Tommie Stevens, age 41
Germaine D. Johnson, age 35
Daniel S. Carter, age 43
Don D. Walker-Cruse, age 41
Ricky Christopher, age 49
David D. Coleman, age 39
Kellin R.L. Morrison, age 33
Janine R. Hegwood, age 51
Dewayne Alexander, Jr., age 24
The defendants currently reside in the greater Milwaukee area, Chicago, Illinois, and Burlington, Iowa. This case is a part of a long-term federal drug and money laundering investigation based out of Milwaukee.
The defendants are charged with various drug, money laundering and bankruptcy fraud offenses, including: distribution of and possession with intent to distribute controlled substances and conspiracy. If proven that the offenses involved either more than one kilogram of heroin or five kilograms of cocaine, defendants charged with drug offenses will face up to life in prison, with a mandatory minimum sentence of ten years in prison.
Today, law enforcement officers arrested all of the above defendants. In addition to today’s arrests, law enforcement officers executed 17 federal search warrants in Wisconsin and Illinois and one state warrant in Iowa targeting members of this organization. Law enforcement recovered approximately 1.5 kilograms of cocaine and a half kilogram of heroin. Law enforcement also seized 21 guns (including 3 rifles), 8 vehicles and an undetermined amount of cash. Over 250 federal, state, and local officers participated in these arrests and search warrants.
In making today’s announcement about the federal charges, searches, and arrests, United States Attorney Haanstad stated: “The large-scale distribution of cocaine, heroin, and other controlled substances is a continuing and urgent threat to public health and public safety. Countering that threat requires the sustained, concerted attention of federal, state, and local law enforcement agencies and by task forces like the one whose efforts led to these charges and arrests. The United States Attorney’s Office and the Department of Justice are committed to continuing to make efforts like these a top priority.”
Drug Enforcement Administration Assistant Special Agent in Charge Robert Bell commended local, state and federal law enforcement agents for strategically and successfully dismantling this high-level heroin trafficking organization. “This very organized criminal network profited by perpetuating addiction and suffering – by victimizing others. To save lives and reduce levels of addiction, law enforcement agents and federal prosecutors will continue to purposefully bring predatory drug traffickers to justice.”
“Once again DOJ’s DCI agents worked together with federal, state, and local law enforcement to take down a major crime organization that has been flooding southeastern Wisconsin with fentanyl, heroin, and guns,” said Attorney General Schimel. “Today’s bust will put a major dent in this criminal organization’s ability to prey on and profit off of people’s addiction. This is a significant win in the fight against the opioid epidemic and efforts to reduce gun violence.”
The defendants were charged after a lengthy investigation by the Wisconsin Department of Justice - Division of Criminal Investigation, Wauwatosa Police Department, Greenfield Police Department, Waukesha County Sheriff’s Department and Metro Drug Unit, Milwaukee Police Department, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, and Firearms, Iowa Division of Narcotics Enforcement, South East Iowa Drug Task Force and the Iowa State Patrol. In addition to the above law enforcement agencies the following agencies participated in today’s arrests and search warrants: Milwaukee County Sheriff’s Department, Oak Creek Police Department, Kenosha County Drug Unit, Racine County Drug Unit, West Allis Police Department, South Milwaukee Police Department, Lake County Illinois Sheriff’s Department, Wisconsin State Patrol, United States Marshals Service, Department of Homeland Security - Homeland Security Investigation / Enforcement Removal Operations and the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorneys Elizabeth M. Monfils and Gail J. Hoffman.
A criminal complaint is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
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For additional information contact:
Public Information Officer Dean Puschnig (414) 297-1700
New Haven Man Sentenced to 4 Years in Federal Prison for Role in Large-Scale Fencing OperationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANDREW SACCO, 44, of New Haven and formerly of Durham, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 48 months of imprisonment, followed by three years of supervised release, for participating in a large-scale fencing operation. Judge Shea also ordered SACCO to pay a $5,000 fine.
According to court documents and statements made in court, between January 2012 and December 2014, SACCO participated in a conspiracy to purchase stolen property from “boosters,” who typically were shoplifters with opioid addictions, and then resold the property at online websites. SACCO, his co-conspirator Matthew Harwood, and others instructed the boosters to steal certain items from retail stores such as Petco, Staples, Walmart, and Bed Bath & Beyond, and paid cash for the stolen items at approximately one-third of their retail price.
After receiving the stolen merchandise, SACCO and Harwood stored the merchandise at multiple locations, including SACCO’s former residence in Durham and business locations in North Haven. SACCO and Harwood then sold the stolen products at online sites, including eBay and Amazon.
Through this scheme, retailers lost more than $3.9 million.
SACCO was arrested on July 15, 2016. On June 21, 2017, he pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property and one count of interstate transport of stolen property.
SACCO, who is released on a $100,000 bond, was ordered to report to prison on February 6, 2018.
On November 3, 2016, Harwood pleaded guilty to the same charges. He awaits sentencing.
This matter has been investigated by Federal Bureau of Investigation, with assistance from the Connecticut State Police, U.S. Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and John T. Pierpont, Jr.
Neville Township Man Sentenced to 5 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 60 months imprisonment, followed by five years supervised release, on a charge of possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentenced on Lance G. Gehring, age 48, of Neville Township, Pennsylvania.
According to information presented to the court, on March 10, 2016, Gehring knowingly possessed and knowingly accessed with intent to view images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
Acting U.S. Attorney Soo C. Song commended the Federal Bureau of Investigation and the Allegheny County District Attorney’s Office for conducting the investigation leading to the successful prosecution of Gehring.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Navajo Man from McKinley County Pleads Guilty to Federal Child Abuse ChargesRead the Press Release
ALBUQUERQUE – Roland Skeets, 27, an enrolled member of the Navajo Nation who resides in Smith Lake, N.M., pled guilty today in federal court in Albuquerque, N.M., to child abuse charges. Skeets’ plea agreement recommends that he be sentenced to a prison term within the range of 15 to 21 months.
Skeets was arrested in Aug. 2017, on an indictment charging him with child abuse resulting in great bodily injury to a male victim and child abuse endangering a female victim. According to the indictment, the crimes took place on March 25, 2016, on the Navajo Indian Reservation in McKinley County, N.M.
During today’s proceedings, Skeets pled guilty to an information charging him with assault resulting in substantial bodily injury. In entering the guilty plea, Skeets admitted that on March 25, 2016, he assaulted a four-year-old child by pushing the child to the ground and yanking him back up by the arm, which fractured the child’s clavicle. Skeets acknowledged that at the time he assaulted the child, he was intoxicated. Skeets further admitted that, after assaulting the child, he continued yelling, causing his girlfriend to flee with the injured child and other children to a neighbor’s house in order to call police.
Skeets remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case.
Navajo Man from Hogback, N.M, Sentenced to Nine Years for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Gary Begay, 24, an enrolled member of the Navajo Nation who resides in Hogback, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 108 months in prison for his conviction on an assault charge. Begay will be on supervised release for three years after completing his prison sentence.
Begay was arrested in June 2016, on an indictment charging him with sexual assault and assault resulting in serious bodily injury. According to the indictment, Begay committed the crimes on March 14, 2015, on the Navajo Indian Reservation in San Juan County, N.M.
On Feb. 16, 2017, Begay pled guilty to Count 2 of the indictment charging him with assault resulting in serious bodily injury. In entering the guilty plea, Begay admitted assaulting the victim by striking the victim with his fists and a bottle, breaking the victim’s teeth and causing serious bodily injury to the victim.
This case was investigated by the Farmington office of the FBI, the Navajo Nation Department of Public Safety and the San Juan County Sheriff’s Office. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Milwaukee, Wisconsin Man Sentenced for VA FraudRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 28, 2017, Dean D. Young (age: 60) formerly of Green Bay, Wisconsin and currently living in Milwaukee, Wisconsin, was sentenced in Federal Court in Green Bay to 21 months in prison to be followed by 3 years supervised release and ordered to pay restitution in the amount of $201,521.41 after his guilty plea to wire fraud contrary to Title 18 United States Code Section 1343.
According to the plea agreement and other court documents, beginning in approximately November 2002, and continuing thereafter until at least September 2015, in the State and Eastern District of Wisconsin, Dean Young devised and carried out a scheme to defraud the United States Department of Veterans Affairs (VA) of pension and compensation benefits by means of materially false and fraudulent pretenses.
Young’s scheme was essentially to defraud the VA of compensation and pension benefits by providing materially false information to the VA, at its Regional Office in Milwaukee, Wisconsin, and elsewhere, concerning his physical and mental condition. In particular, Young provided materially false information to the VA, upon which the VA relied in awarding pension and compensation benefits that he was not entitled which totaled $201,521.41. One such claim stemmed from an August 30, 2013, VA doctor appointment during which Young claimed he required use of a wheelchair and that he could only walk a few steps due to extreme back pain. Following the appointment, the VA doctor observed Young walk across the VA parking lot without use of the wheelchair and with a normal gait. Young then folded up his wheelchair and placed it in his car. Further, law enforcement obtained video of Young that same day walking down the hallway of his apartment complex and standing in the elevator while carrying a box, all without the aid of a wheelchair or cane.
While handing down the sentence, Chief United States District Judge William C. Griesbach described the offense as a “massive and blatant fraud” that went on for many years. He also noted that it involved public funds intended for truly deserving veteran. Judge Griesbach added that the sentence imposed was also intended to serve as a deterrent for others thinking of committing VA fraud.
This case was investigated by the Veterans Administration Office of Inspector General. The case was prosecuted by Assistant United States Attorney William Roach.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Mexican National Indicted for Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Mexican national riding on a bus passing through Kansas City, Mo., was indicted by a federal grand jury today after law enforcement officers found 23 pounds of methamphetamine in his carry-on bags.
Luis Carlos Ballesteros-Duarte, 42, a citizen of Mexico, was charged with one count of possessing methamphetamine to distribute in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint filed against Ballesteros-Duarte on Nov. 13, 2017.
According to an affidavit filed in support of the original criminal complaint, a police department canine working at a local bus terminal gave a positive alert for the presence of narcotic odor on two duffel bags located in the passenger compartment of a bus traveling from Denver, Colo., to St. Louis, Mo. Officers questioned Ballesteros-Duarte, whom they observed was acting nervously, and learned that the duffel bags belonged to him.
Officers searched the duffel bags and found a total of 23 large bundles of methamphetamine wrapped in clear cellophane, the affidavit says, with a total weight of approximately 23 pounds.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department.
Medical Center Agrees to Settle ADA Claim with Individual Who Is DeafRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office announced a $121,000 settlement agreement under the Americans with Disabilities Act (ADA) with the Spotsylvania Regional Medical Center (SRMC), a wholly-owned, indirect subsidiary of HCA Holdings, Inc. located in Fredericksburg, in a case in which the hospital failed to furnish sign language interpreter services to an individual who is deaf during the provision of medical services to her and her mother.
The U.S. Attorney’s investigation began with a complaint from the public alleging that during nine hospitalizations, including one involving end of life events, SRMC failed to furnish sign language interpreter services for numerous consequential and complex interactions with the daughter of a gravely ill woman who was hospitalized at SRMC and, at times, relied upon family members and friends to facilitate communication. Additionally, the same individual alleges that she made three visits to SRMC’s Emergency Department as a patient and during those visits, SRMC failed to furnish her with a sign language interpreter. As a result, the deaf individual alleges that she often did not understand the care and medical decisions being considered for her mother’s or her own care.
“This case demonstrates this office’s unwavering commitment to protecting the rights of those who are deaf or hard of hearing and ensuring that they are able to communicate with health care professionals, especially when patients and their companions have critical interactions with medical providers,” said U.S. Attorney Dana J. Boente.
Under the settlement, SRMC will pay a total of $121,000.00 to the aggrieved individuals, including to the individual who is deaf and to her family members and friends for associational discrimination. The settlement agreement also requires SRMC to take remedial steps to bring itself into compliance with the ADA, including the appointment of an ADA Administrator who is familiar with the ADA’s requirements; providing ADA training to its staff; entering into contracts with sign language interpreting service providers; and adopting specific policies and procedures to ensure that auxiliary aids and services are provided promptly to individuals who are deaf or hard of hearing.
This matter was handled by Assistant U.S. Attorney Steven Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office.
This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against disabled individuals by health care providers, including hospitals. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department’s Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may be filed by email to [email protected].
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Mannford Man Sentenced for Possessing Child PornographyRead the Press Release
District Judge Gregory K. Frizzell sentenced Russell Martin Mounger, 47, of Mannford, Oklahoma to 70 months in prison for the crime of Possession of Child Pornography. Mounger must also pay $10,000 in restitution to the victim, and a special monetary assessment totaling $5,100. After release from prison, Mounger will be required to register as a sex offender and must serve 7 years on supervised release.
On February 13, 2017, the Manford Police Department executed a search warrant of Mounger’s home. During the search warrant officers found several explicit videos and still images depicting children under the age of 12 involved in sexually explicit conduct.
United States Attorney Shores stated, “We will aggressively prosecute those who exploit children and possess graphic sexual images of minors. These are some of the most important cases we prosecute because they involve some of the most vulnerable victims.”
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.”
Mannford Police Department and Homeland Security Investigations investigated the matter. First Assistant United States Attorney Clinton J. Johnson and Assistant United States Attorney Shannon Cozzoni prosecuted the case.
Man Indicted on Murder and Other Charges in Slaying of Corrina MehielRead the Press Release
WASHINGTON – El Hadji Toure, 29, formerly of Laurel, Md., was indicted today on murder and other charges stemming from the slaying last March of Corrina Mehiel, whose body was found in a rowhouse in Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Toure was indicted by a grand jury in the Superior Court of the District of Columbia on charges of first-degree murder while armed (premeditated and felony), with aggravating circumstances; first-degree sexual abuse while armed, also with aggravating circumstances; kidnapping while armed; first-degree burglary while armed; robbery while armed; first-degree theft; unauthorized use of a vehicle; credit card fraud, and first-degree identity theft.
Toure is to be arraigned on Dec. 14, 2017 at a hearing before the Honorable Lynn Leibovitz. He faces a maximum of life in prison.
According to the government’s evidence, on March 21, 2017, at approximately 4:34 p.m., officers with the Metropolitan Police Department (MPD) found Ms. Mehiel’s body in a rowhouse in the 600 block of 14th Street NE. Ms. Mehiel’s body, which had been bound, showed multiple stab wounds to her neck and side. Ms. Mehiel, 34, of Burnsville, N.C., had been staying at the rowhouse while in Washington as a visiting artist.
Toure is accused of breaking into Ms. Mehiel’s apartment on March 20, 2017, kidnapping and sexually assaulting her, stabbing her, and stealing her belongings, including her car and her debit card. Toure is accused of using her debit card to withdraw cash at several ATMs in nearby Maryland and Virginia from March 20 through March 24, 2017.
Toure was arrested on March 27, 2017, in Northeast Washington, and has been in custody ever since.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Liu commended the work of those investigating the case from the Metropolitan Police Department (MPD). She also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences and Signature Science LLC. She acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Clark; Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialist Alesha Matthews Yette, and Investigative Analyst Zachary McMenamin. Finally, she commended the work of Assistant U.S. Attorney Jeffrey Nestler, who is investigating and prosecuting the case.
Majority Shareholder of Sham Company Sentenced to Five Years’ Imprisonment for Defrauding Investors in Penny Stock SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, George Trevor Porrata was sentenced to five years’ imprisonment for conspiring to commit securities fraud. The Court also ordered $1,046,385.50 in restitution to victims and $400,000 in forfeiture. According to court filings and facts presented during his guilty plea proceeding, Porrata led a scheme to induce people to invest in Halberd Corporation, a publicly traded corporation whose shares traded on the over-the-counter exchange under the ticker symbol HALB. The proceeding took place before United States Chief District Judge Dora L. Irizarry.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
According to public filings, from March 2010 to September 2013, Porrata directed press releases to be issued with false information to induce people to invest in Halberd, a company that purportedly produced aerial drones but, in fact, existed primarily on paper. Among other things, Porrata caused press releases to be issued about Halberd opening a sales and marketing office, owning a mass production facility and submitting a bid for a government contract. Contrary to these representations, this information was false and it caused unsuspecting victims to invest in Halberd and also caused the company’s stock price to be artificially inflated. Porrata and his co-conspirators sold their own shares of the company at the inflated price and caused investor losses of more than $1 million.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Sylvia Shweder and Matthew Amatruda are in charge of the prosecution. Assistant United States Attorney Karin Orenstein is in charge of the forfeiture.
The Defendant:
GEORGE TREVOR PORRATA
Age: 46
Residence: West New York, New JerseyE.D.N.Y. Docket No. 16-CR-93 (DLI)
Macon Methamphetamine Dealer Sentenced to Twenty Years in PrisonRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Joshua Mullis, age 39, of Macon, was sentenced to serve twenty (20) years in federal prison for conspiracy to possess with intent to distribute methamphetamine. The sentence was handed down on Monday, December 4, 2017, by the Honorable Leslie J. Abrams, United States District Judge in Macon.
There is no parole in the federal system.
Mr. Mullis entered a plea of guilty on May 25, 2017, and admitted to conspiring with others to possess with the intent to distribute methamphetamine during the period from June, 2014 through May, 2016. According to the plea agreement, law enforcement began receiving information in January, 2015 that Mr. Mullis and his brother, Jeremy Mullis, were obtaining methamphetamine from a group in East Point, Georgia.
Mr. Mullis was introduced to his East Point suppliers following a prior incarceration and began obtaining methamphetamine from them around August 2014. Mr. Mullis, or someone on his or his brother’s behalf, thereafter made frequent trips to East Point, Georgia to meet with the East Point source to obtain methamphetamine. Mr. Mullis and his brother obtained varying quantities of methamphetamine ranging from one-quarter pound to one pound at a time. The methamphetamine would then be brought back to the Middle District of Georgia for distribution.
Of the thirteen defendants charged in this conspiracy, in addition to Mr. Mullis, eight defendants have been convicted to date, seven of whom have received sentences of up to 144 months, based upon their prior convictions and varying levels of involvement in the drug distribution ring. Sentencing for the eighth co-defendant is scheduled for January. Charges are still pending against the four defendants, some of whom are at large.
“Methamphetamine is one of the most common drugs of abuse in the Middle District of Georgia and one that has terrible effects on its users. Once again the great cooperation between the federal, state and local law enforcement agencies in Middle Georgia has resulted in shutting down a major organization distributing this poison in our community,” said United States Attorney Peeler.
The case was investigated by the Drug Enforcement Administration and Georgia Bureau of Investigation with the assistance of Peach County Sheriff’s Office, Bibb County Sheriff’s Office, and other local law enforcement agencies. Assistant United States Attorney Beth Howard prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 621-2603.
Los Angeles, California Man Sentenced to 120 Months for Cocaine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Gustavo Romero, age 21, of Los Angeles, California, was sentenced to 120 months imprisonment, and 5 years of supervised release for Possession With Intent To Distribute Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The Indictment alleged that on or about March 21, 2017, in the Eastern District of Oklahoma, the defendant, Gustavo Romero, did knowingly and intentionally possess with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “The transport and distribution of illegal drugs is an integral part of the drug cartels’ business operations. Attacking the distribution channels, as the Oklahoma Highway Patrol and DEA did in this case, is a critical component of the cooperative efforts by federal, state, local and tribal law enforcement agencies to disrupt and dismantle major drug organizations which plague our nation. I commend the OHP and DEA for their thorough, professional investigation which allowed this office to prosecute Romero for his unlawful acts committed in the Eastern District of Oklahoma.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Timothy Hammer represented the United States.
Lebanon County Man Sentenced to 15 Years’ Imprisonment for Production of Child Pornography and Coercing and Enticing A Minor to Engage in Sexual ActivityRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kerry Edward Tropasso, age 36, formerly of Lebanon County, Pennsylvania, was sentenced on December 5, 2017, to 15 years’ imprisonment followed by 15 years’ supervised release by United States District Court Judge William W. Caldwell for production of child pornography and coercing and enticing a minor to engage in sexual activity.
According to United States Attorney David J. Freed, Tropasso was involved in an online relationship with a minor where he video recorded the minor engaged in sexually explicit conduct and then uploaded digital images to a commercial printing service. Tropasso also possessed thousands of images and hundreds of videos of suspected or previously identified child pornography, depicting children in chains being raped by adults. The images included children as young as five years old.
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.”
This case was investigated jointly by the United States Postal Inspection Service and the Pennsylvania State Police, with assistance by the Lancaster County District Attorney’s Office. Assistant United States Attorney Daryl Bloom prosecuted the case.
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Laguna Pueblo Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Waylon D. Victorino, 25, an enrolled member and resident of Laguna Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to 15 months in prison for his assault conviction. Victorino will be on supervised release for three years after completing his prison sentence.
Victorino was arrested in Dec. 2016, on a criminal complaint charging him with assaulting a man and woman from Laguna Pueblo resulting in serious bodily injury. According to the complaint, Victorino first assaulted the female victim causing swelling and bruising on her right eye, bruising on her arms and a visible bite mark on the victim’s right wrist. The complaint further alleges that the male victim attempted to intervene between the Victorino and the female victim, at which point, Victorino began hitting the male victim in the face resulting in the male victim losing consciousness.
Victorino subsequently was indicted on Jan. 24, 2017, and was charged with assaulting a man and woman resulting in serious bodily injury on Dec. 11, 2016, on the Laguna Pueblo in Cibola County, N.M.
On March 16, 2017, Victorino pled guilty to one count of assault resulting in serious bodily injury and admitted that on Dec. 11, 2016, he assaulted a male victim resulting in serious bodily injury. In his plea agreement, Victorino admitted that he was assaulting a female victim when a male victim attempted to help her. Victorino admitted that he responded by hitting, punching and kicking the male victim. Victorino further admitted that as the result of the assault, the male victim required medical attention, suffered bruising, and one of his eyes was blind and swollen shut for a week.
This case was investigated by the Laguna/Acoma Agency of the BIA Office of Justice Services and the Pueblo of Laguna Tribal Police Department. Special Assistant U.S. Attorney Lucy Solimon prosecuted the case pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Kernersville Man Sentenced to Federal Prison for Bank FraudRead the Press Release
GREENSBORO, N.C. – A Kernersville man was recently sentenced to 70 months in federal prison after pleading guilty to bank fraud, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.
Kevin Lee MYERS, Jr., 33, of Kernersville, North Carolina, was sentenced on December 4, 2017, by the Honorable Loretta C. Biggs, United States District Judge for the Middle District of North Carolina. MYERS pleaded guilty in March 2017 to two counts of bank fraud in violation of Title 18, United States Code, Section 1344(2). One count to which MYERS pleaded guilty alleged he misrepresented himself to Ally Bank as an agent of Myers Enterprises, Inc., a corporation to which he in fact had no relationship, in an application for credit in order to purchase a Dodge Ram Truck valued at over $45,000. The other count to which MYERS pleaded guilty alleged he misrepresented himself to the First National Bank of Omaha using the information of another person in order to acquire services valued at $46,256.30.
In addition to a 70-month term of imprisonment, Judge Biggs sentenced MYERS to five years of supervised release and ordered him to pay over $150,000 in restitution.
The United States Department of Treasury Office of Inspector General Financial Crimes Task Force, the Randolph County Sheriff’s Office, the Durham Police Department, and the Forsyth County Sheriff’s Office participated in the investigation. Assistant United States Attorney Anand Ramaswamy prosecuted the case.
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KC Man Pleads Guilty to Contraband Smuggling at Jackson County Detention CenterRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to smuggle contraband cell phones and other items to inmates at the Jackson County Detention Center.
Marion Lorenzo Byers, also known as “Cuddy,” 36, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to the charge contained in a July 18, 2017, federal indictment.
Byers admitted that he conspired with others – including a corrections officer and an inmate at the Jackson County Detention Center – to smuggle contraband to inmates between May 2 and June 26, 2017. Byers also admitted that he delivered contraband to a co-conspirator, who in turn delivered the contraband to a corrections officer at the detention center, who was to deliver the contraband to an inmate.
By pleading guilty today, Byers acknowledged that this federal conviction provides a sufficient basis to revoke his current probation in an unrelated state case. The government will seek to have whatever sentence is imposed in this case run consecutive to whatever revocation sentence may be imposed in state court.
Under federal statutes, Byers is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.The Travel Act
The Travel Act makes it a crime to use a facility of interstate commerce (such as telephone calls) with the intent to further unlawful activity. The Travel Act’s definition of “unlawful activity” includes bribery in violation of the laws of a state. Missouri state law makes it a crime for a public servant to solicit or accept a bribe in return for violating a known legal duty. This crime is known under Missouri state law as acceding to corruption, and it is a companion or sister statute to the Missouri state statute that makes it a crime for someone to bribe a public servant. These two Missouri state statutes criminalize bribery conduct involving a public servant, both for the person paying the bribe and for the public servant taking the bribe.
Byers admitted today that he conspired to violate the Travel Act by using a facility of interstate commerce (a telephone) to facilitate the promotion of an unlawful activity, that is, acceding to corruption.
This case is being prosecuted by Deputy U.S. Attorney Gene Porter and Assistant U.S. Attorney Brent Venneman. It was investigated by the FBI and the Jackson County, Mo., Sheriff’s Department with assistance from the Missouri Department of Corrections, the Kansas City, Mo., Police Department and the Jackson County Detention Center.
KC Man Pleads Guilty to Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to robbing Arvest Bank, after which he changed his appearance by getting his hair and beard shaved off at a nearby barber shop.
Joshua Aaron Hoover, 34, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to the charge contained in a March 7, 2017, federal indictment.
By pleading guilty today, Hoover admitted that he stole $5,800 from Arvest Bank, 8959 E. 40 Hwy., Kansas City, Mo., on Feb. 22, 2017.
According to court documents, Hoover approached a teller at the bank and twice demanded, “Give me $5,800 or I’ll shoot you in the face.” Hoover instructed her to place the money in an envelope, then fled from the bank on foot.
Hoover then ran to nearby Stadium Cuts, 3300 S. Blue Ridge Cut Off, Independence, Mo. A barber told police that Hoover was out of breath when he came into the business; Hoover told the barber he just ran from work and wanted to get a haircut during his lunch hour. Hoover had most of his hair and his beard cut off, then bought a hat for $20 and changed clothes in the business’s bathroom. Hoover later told investigators that he stopped an unknown person in the area of the barber shop and requested a ride to an area near his house; Hoover said he grabbed an unknown number of $100 bills from the proceeds of the bank robbery and gave them to the driver.
The FBI disseminated surveillance photographs of the bank robbery to local media outlets and almost immediately began receiving tips from both the public and law enforcement that identified the bank robber as Hoover. Hoover was located at Ameristar Casino, where he was preparing to attend a poker tournament, and he was arrested. Hoover had in his possession $2,115 in cash, $2,000 in poker chips, a $1,000 gaming voucher and a preferred member players card. Hoover told police officers he was afraid the serial numbers on the bills could be tracked and decided to exchange the money at the casino to receive clean bills that were not directly related to the bank robbery.
Under federal statutes, Hoover is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Jury Finds Washington County Felon Guilty of Heroin TraffickingRead the Press Release
PITTSBURGH - A federal jury of 12 citizens from throughout the Western District of Pennsylvania unanimously found Maurice “Reese” Frezzell guilty of selling heroin, Acting United States Attorney Soo C. Song announced today.
Maurice Frezzell, 34, of Monessen, Pennsylvania, was tried before United States District Judge Arthur J. Schwab in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Ross E. Lenhardt, a federal prosecutor in the Violent Crime Section of the Office of the United States Attorney, the evidence presented at trial established that the Drug Enforcement Administration (DEA) has joined forces with many local and state law enforcement agencies in order to investigate allegations of heroin and opioid trafficking. These officers learned that Frezzell was selling heroin in the greater Washington County area and developed a Confidential Source to buy heroin directly from Frezzell on November 19, 2015.
After the verdict, Judge Schwab was informed that Frezzell has 15 separate convictions that include a prior federal drug dealing conviction and two other state drug dealing convictions. Frezzell’s criminal career began at the age of 12 with a sexual assault and has included two assaults on law enforcement and the illegal possession of a handgun with an obliterated serial number. Court records show that Frezzell is currently being supervised by the United States Probation Office after serving a previous federal prison sentence of 80 months and that Frezzell has additional drug charges pending as a result of a recent federal search warrant that revealed multiple different drugs in his residence.
Judge Schwab scheduled sentencing on this conviction for April 17, 2018 at 9:00 a.m. The law provides for a total sentence of 30 years in prison, a fine of up to $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based on the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court ordered that Deputy United States Marshals return the defendant to a federal holding facility. The defendant has also been ordered to remain incarcerated pending a violation hearing for committing his new drug crimes while he was on federal supervision.
A group of law enforcement officers from the DEA, the Monessen Police Department, the Canonsburg Police Department, the Pennsylvania Office of the Attorney General, the Pennsylvania State Police, the Washington County District Attorney’s Office, the Washington County Sheriff’s Office and the IRS conducted the investigation that led to the arrest and conviction of Frezzell.
Jury Convicts Mexican National of Cocaine TraffickingRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Mexican national, stopped en route from Arizona to Ohio, has been convicted at trial of possessing at least five kilograms of cocaine with the intent to distribute.
Adriana Gutierrez-Ramirez, also known as Adriana Peralta, 43, a citizen of Mexico residing in Phoenix, Ariz., was found guilty on Tuesday, Dec. 5, 2017, of the charge contained in an Oct. 18, 2017, superseding indictment.
Co-defendant Luis J. Duarte,59, a citizen of Mexico residing in Phoenix, Ariz., pleaded guilty on Aug. 31, 2017, to possessing cocaine with the intent to distribute. Duarte was driving a 2016 Ford F350 cargo utility truck, with Gutierrez-Ramirez in the passenger seat, when they were stopped by a state trooper on I-44 in Strafford, Mo., on Feb. 25, 2017. Duarte had rented the truck in Phoenix two days earlier for a one-way trip.When the trooper searched the vehicle, he found a kilogram-sized package of cocaine inside a cardboard box containing clothing in the cargo area of the truck and placed Duarte and Gutierrez-Ramirez under arrest. Four more kilogram-sized packages of cocaine were found during a search of the vehicle after it was transported to headquarters.
Duarte admitted that he was solicited by an unidentified person to drive the truck to Ohio. That person gave Duarte $1,500 to rent the truck and for expenses during the trip. Duarte told investigators he was unsure how much he was being paid for the trip but expected to receive payment when he reached the destination. When Duarte picked up the truck, Gutierrez-Ramirez – whom he had never met – was already sitting inside.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for about 21 minutes before returning a guilty verdict to U.S. District Judge M. Douglas Harpool, ending a trial that began Monday, Dec. 4, 2017.
Under federal statutes, Gutierrez-Ramirez is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Missouri State Highway Patrol.
Individual Charged for Several Robberies, Including One Resulting in the Death of Two Innocent BystandersRead the Press Release
SAN JUAN, Puerto Rico – Today, a federal grand jury in the District of Puerto Rico returned a five-count indictment against Benjamin Melendez-Rivera charging him with conspiracy to interfere with commerce by robbery and possession and brandishing of a firearm in furtherance of a crime of violence, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
According to the indictment, on March 20, 2017, Melendez-Rivera, along with other co-conspirators, traveled to a Banco Popular branch in Morovis, Puerto Rico to commit a robbery. On that same date, one of the co-conspirators brandished a firearm at an armed courier employed by Econo Supermarket, and took approximately $3,000 in U.S. currency from him.
The indictment further alleges that on March 23, 2017, Melendez-Rivera traveled to a Banco Popular branch in Añasco, Puerto Rico to conduct surveillance in preparation for a robbery. On March 30, 2017, Melendez-Rivera also traveled to the Banco Popular branch in Añasco, Puerto Rico to commit a robbery. Once near the vicinity of the Banco Popular branch, Melendez-Rivera took a photograph of the location with his cellular phone. During the commission of the robbery in Añasco, two co-conspirators brandished firearms at a Ranger American armed courier. The co-conspirators discharged their firearms, killing two innocent bystanders and wounding the Ranger American armed courier, from whom they stole approximately $16,900 in U.S. currency.
Assistant U.S. Attorney Alexander Alum is in charge of the prosecution of the case. If convicted the defendant faces a maximum sentence of life imprisonment. Indictments contain only charges and are not evidence of guilt. The defendant is presumed to be innocent unless and until the charges are proven beyond a reasonable doubt.
Helena Woman Steals Millions of USDA Funds Intended for Children, Sent to Prison for More Than 12 YearsRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, Dax Roberson, Special Agent in Charge, Southwest Region of the United States Department of Agriculture—Office of Inspector General, Tracey D. Montaño, Special Agent in Charge, Internal Revenue Service–Criminal Investigations (IRS-CI), and Diane Upchurch, Special Agent in Charge, Little Rock Field Office for the Federal Bureau of Investigation (FBI), announced Wednesday that United States District Court Judge James M. Moody Jr., sentenced Jacqueline Mills, 42, of Helena, to prison for her role in a multi-million dollar scheme to steal money intended for feeding children in low income areas.
Judge Moody sentenced Mills on Wednesday to 150 months’ imprisonment followed by three years of supervised release. She was also ordered to pay $3,014,276.87 in restitution and to forfeit a number of properties. A jury convicted Mills on 39 different counts, including wire fraud, conspiracy to commit wire fraud, bribery, and money laundering following an eight-day trial in April.
Anthony Waits, who was Mills’ co-defendant in trial, was sentenced on October 18, 2017, to 175 months’ imprisonment and ordered to pay $3,316,280.85 in restitution.
“Mills and Waits stole millions of dollars intended for disadvantaged and hungry children in one of the most egregious examples of fraud this office has prosecuted,” Hiland said. “The significant sentence each received properly reflects the heinous nature of their crime—preying on the most vulnerable members of our society. Since early 2014, this office has vigorously investigated the massive fraud uncovered in this critical feeding program, and we will continue to do so. When criminals steal from children, it’s this office’s stated intention to ensure that they spend significant time in prison.”
The United States Department of Agriculture (USDA) feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs, and they are reimbursed for the eligible meals they serve.
“The Office of Inspector General will pursue justice to the fullest extent of the law when it concerns conduct that impacts the integrity of nutrition programs for needy children,” Special Agent in Charge Roberson said.
As proven in trial, Mills, who said she operated 34 feeding sites, submitted inflated numbers of meals purportedly served from her sites. In some cases, no meals were served at all. Co-conspirators Tonique Hatton and Gladys Waits—who worked for DHS and have already pleaded guilty and been sentenced to prison—assisted Mills in her deception. Hatton and Waits were responsible for approving Mills’ programs at various times. Mills also made bribe payments to Hatton and Waits to provide protection from DHS scrutiny. Hatton and Waits were among more than 50 witnesses who testified during the trial.
Mills was among those who testified, as well. The jury rejected Mills’ testimony that the payments made to Hatton and Waits were merely gifts—including a $5,000 housewarming gift to Hatton—or reimbursements.
The USDA paid Mills more than $3 million on her inflated claims, which included several locations where meals were never served. The jury also found that property seized from Mills during the investigation was proceeds of the offense and should be forfeited. This property includes real estate, four vehicles, and more than $490,000 seized from multiple bank accounts.
“Today’s sentencing of Mills marks the continued commitment of the FBI and our partners to aggressively pursue individuals who violate the public’s trust and hold them accountable for their self-serving acts,” Special Agent in Charge Upchurch said. “Stealing millions of dollars intended to feed hungry children is blatantly wrong. I appreciate the stalwart efforts of the United States Department of Agriculture, IRS, FBI, and the U.S. Attorney’s Office for the Eastern District of Arkansas.”
Mills is the 13th defendant to be sentenced for their involvement in a scheme to fraudulently obtain USDA program funds intended to feed children in low income areas. Other defendants sentenced include: Anthony Waits; Kattie Jordan (63 months’ imprisonment on March 15, 2016); Reuben Nims (21 months’ imprisonment on November 2, 2016); Hatton (108 months’ imprisonment on January 4, 2017); James Franklin (24 months’ imprisonment on January 10, 2017); Maria Nelson (30 months’ imprisonment on January 31, 2017); Michael Lee (30 months’ imprisonment on May 1, 2017); Christopher Nichols (three years’ probation on May 16, 2017); Gladys Waits (108 months’ imprisonment on July 17, 2017); Alexis Young (18 months’ imprisonment on August 18, 2017); Erica Warren (18 months’ imprisonment on August 18, 2017); and, Francine Leon (34 months’ imprisonment on September 21, 2017).
Waymon Weeams and Dorothy Harper have pleaded guilty to conspiring to defraud USDA feeding programs. Elbert Harris has pleaded guilty to wire fraud in relation to the same feeding programs. All three are awaiting sentencing.
In this investigation law enforcement has uncovered more than $13 million in fraud related to these USDA Arkansas feeding programs.
“IRS-Criminal Investigation is committed to aggressively pursuing individuals who engage in corruption at the expense of hardworking Americans taxpayers,” Special Agent in Charge Montaño said. “Ms. Mills not only bribed DHS employees to receive government contracts to feed disadvantaged children, she then used those funds to line her own pockets. Today’s sentence demonstrates the government’s determination to ensure that individuals attempting to defraud the government will be held accountable. We are proud to have worked with our law enforcement partners to bring this case to a successful resolution.”
Although everyone initially charged in this scheme has now been convicted, the investigation is still ongoing, and continues to be conducted by the USDA–Office of Inspector General, IRS–Criminal Investigations, and FBI. The case is being prosecuted by Assistant United States Attorneys Jana Harris, Allison W. Bragg, and Cameron C. McCree.
If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
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Grand Jury Indicts Texas Nightclub Magnate, Two Former Dallas Police Officers and Others on Structuring and Drug ChargesRead the Press Release
DALLAS — A federal grand jury in Dallas has indicted eleven defendants, including Alfredo Navarro Hinojosa, 57, of Dallas, Texas, on felony charges stemming from their involvement in laundering money and the distribution of cocaine at several North Texas nightclubs, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
The indictment supersedes an earlier indictment returned in the case. Eight defendants were charged in that indictment with various felony drug offenses. Four of those defendants have pleaded guilty, three remain fugitives and one is awaiting trial.
The thirty-three count superseding indictment returned yesterday charges Hinojosa, along with, Miguel Casas, 47, of Dallas; Martin Salvador Rodriguez, aka “Chava,” 55, of Dallas; Humberto Baltazar Novoa, 39, of Dallas; Eddie Villarreal, 48, of Carrollton, Texas; Craig Woods, 60, of Dallas; Eloy Alvarado Montantes, aka “Don Loy,” 36, of Grand Prairie, Texas; Jose Omar Santoyo Salas, aka “Omar Salas,” 32, of Arlington, Texas; Erick Johan Lopez Cuellar, aka “Erick Lopez,” 30, of Fort Worth; Raul Nunez, aka “Junior,” 25, of Grand Prairie, Texas; and Cesar Mendez, 27, of Dallas.
According to the superseding indictment, between 2014 and 2016 Hinojosa owned over forty nightclubs – including the Far West nightclub (Dallas), the OK Corral nightclub (Fort Worth), the OK Corral nightclub (Dallas), and the Medusa nightclub (Dallas) – and other businesses in Texas and elsewhere that brought in approximately $107 million in revenue. Hinojosa’s businesses dealt in large volumes of cash, which Hinojosa used as a means for hiding the true nature of certain cash deposits by using shell companies, making unusual deposits and transfers, and transporting cash from location to location. Hinojosa and Novoa also engaged in business transactions with bands who traveled back and forth to Mexico. These transactions included attempts to launder money for at least one band or for entities that were using the band.
In an effort to promote and guarantee profits at his nightclubs, including the Dallas OK Corral nightclub, Dallas Far West nightclub, and Fort Worth OK Corral nightclub, Hinojosa and his mangers – including Casas and Rodriguez – openly allowed cocaine to be sold to nightclub patrons. Certain selected dealers were permitted to sell approximately 100-200 baggies of cocaine each weekend at the nightclubs, resulting in multiple kilograms of cocaine being sold through the clubs for hundreds of thousands of dollars. The superseding indictment includes nineteen counts against Hinojosa, Casas, and Rodriguez for managing a drug premises at three of the nightclubs noted above.
Villarreal and Woods were both officers of the Dallas Police Department between September 1994 and October 2015, and October 5, 1981, and March 4, 2017 respectively. During portion of these time frames, both Villarreal and Woods also worked as security consultants or guards for Hinojosa. According to the superseding indictment, both Villarreal and Woods improperly used their positions as Dallas Police Officers to benefit Hinojosa.
Novoa, who worked with Hinojosa and as a band promoter, was charged with conspiracy to structure transactions to evade reporting requirements and making a false statement in an immigration document. The superseding indictment alleges that the remaining defendants – Montantes, Salas, Cuellar, Nunez, and Mendez – were connected to and involved in drug distribution.
The superseding indictment includes references to recordings taken in Hinojosa’s headquarters, in which he discusses laundering funds and cleaning money.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
Following the return of the superseding indictment, the parties filed executed plea documents for Hinojosa, Villarreal and Woods. According to the documents, Hinojosa has agreed to plead guilty to a conspiracy to manage a drug premises and conspiracy to structure transactions to evade reporting requirements. Per his plea agreement, Hinojosa has agreed to forfeit $200,000, a Ferrari F355, a Land Rover Range Rover, a Hummer H2, a Mercedes-Benz, and a Gillig Motorhome.
Both Villarreal and Woods have each agreed to plead guilty to a single count of making a false statement to the FBI.
The case is being investigated by the Federal Bureau of Investigation, the Dallas Police Department, Internal Revenue Service, Texas Attorney General’s Office, and the Texas Alcoholic Beverage Commission. Assistant U.S. Attorneys P.J. Meitl, Errin Martin, John DelaGarza, and Jamie Hoxie are in charge of the prosecution.
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Fugitive Lawyer Facing 12 Year Sentence in $550 Million Social Security Fraud Scheme Captured and Arraigned on Multiple Escape ChargesRead the Press Release
A former Social Security disability lawyer who was apprehended abroad and returned to the United States was arraigned today on charges stemming from his escape from home confinement and his failure to appear for sentencing following his March 2017 guilty plea in a social security disability benefits fraud scheme. He immediately began serving the previously imposed 12-year prison sentence, which was ordered in his absence in June 2017.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky Field Division and Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division made the announcement.
Eric Christopher Conn, 57, of Pikeville, Kentucky, and his alleged accomplice, Curtis Lee Wyatt, were charged in connection with Conn’s escape in a seven-count indictment returned on Sept. 6, 2017, in the Eastern District of Kentucky in Lexington. Conn entered pleas of not guilty. Both he and Wyatt are scheduled to proceed to trial on Feb. 12, 2018.
The indictment charges Conn and Wyatt with one count each of conspiracy to escape and one count each of conspiracy relating to Conn’s failure to appear for his sentencing. Conn is also charged with one count of escape and one count of failing to appear. The indictment alleges that Conn, while on home confinement after pleading guilty to two federal offenses but before being sentenced, escaped from custody by severing an electronic monitoring device from his ankle during a court-approved visit to Lexington on June 2, 2017, and fled to the Mexican border. According to the indictment, Conn ultimately failed to appear for his sentencing hearing on July 14, 2017.
Conn was also charged last year, along with a former Social Security administrative law judge and a former clinical psychologist, in an 18-count indictment charging conspiracy, mail and wire fraud, false statements, money laundering and other related offenses in connection with a $550 million Social Security disability fraud scheme. The indictment alleges that from October 2004 to Feb. 13, 2012, Conn and others conspired to defraud the government by, among other things, submitting false and fraudulent medical documentation to the SSA in order to have the SSA pay claimants’ retroactive disability benefits, continue to pay claimants’ disability benefits in the future, award Medicare and Medicaid benefits to claimants and pay Conn’s attorney fees. According to the indictment, the conspirators intended that the SSA disburse more than $550 million in disability benefits in more than 2,000 cases to claimants in Kentucky and elsewhere, irrespective of the claimants’ actual entitlement to benefits.
The former Social Security administrative law judge named in that indictment, David Black Daugherty, pleaded guilty in May 2017 to a two-count information charging him with receiving illegal gratuities, and was sentenced on Aug. 25, 2017, to four years in prison. The former clinical psychologist, Alfred Bradley Adkins, was found guilty following a six-day trial in June 2017 of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud and one count of making false statements, and was sentenced on Sept. 22, 2017, to 25 years in prison.
Conn previously pleaded guilty on March 24, 2017, to a two-count information charging him with theft of government money and paying illegal gratuities, and was sentenced in absentia on July 14, 2017, to 12 years in prison on those charges. Although Conn began serving his 12-year sentence, he remains charged under the original indictment.
On Saturday, Dec. 2, 2017, Conn was taken into custody without incident in La Ceiba, Honduras with assistance from the Agencia Tecnica de Investigaciones Criminales de Honduras (ATIC) and the FBI’s Legal Attaché in San Salvador. Since Conn’s escape, the FBI has worked diligently with U.S. Probation, the U.S. Marshals Service, U.S. Customs and Border Protection, the SSA-OIG, the Kentucky State Police, Lexington Police, Pikeville Police, University of Kentucky Police, and the Luna County (New Mexico) Sheriff’s Office to locate and apprehend him. The Criminal Division’s Office of International Affairs provided valuable assistance to the investigation of Conn’s escape.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and SSA-OIG investigated the case. Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorney Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
Four Executives of Bay Area Semiconductor Equipment Manufacturer Charged in Alleged Conspiracy to Steal Technology and Related CrimesRead the Press Release
SAN FRANCISCO – Liang Chen, Donald Olgado, Wei-Yung Hsu, and Robert Ewald were charged for their respective roles in an alleged scheme to steal trade secrets from a Bay Area semiconductor chip equipment manufacturer, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The charges were issued in an indictment handed down on November 30, 2017, by a federal grand jury.
According to the indictment, the defendants were employed at a Silicon Valley-based semiconductor manufacturer as follows: Chen, 52, of Saratoga, Calif., was a corporate vice president and general manager of the alternative energy products division; Olgado, 54, of Palo Alto, was a managing director of engineering within the product business group; Hsu, 57, of San Jose, was a vice president and general manager within the semiconductor LED division; and Ewald, 60, of Aptos, was a director of the energy and environmental systems within the alternative energy products division. The indictment alleges that in September of 2012, while the defendants were still employed by the semiconductor equipment manufacturer, they conspired to steal their employer’s trade secrets and use them in a competing company to be based in the United States and the People’s Republic of China.
According to the indictment, the technology at issue was developed by the semiconductor equipment manufacturer through years of research and testing, and through millions of dollars in investment. The technology related to the high-volume manufacturing of semiconductor wafers to be used in lighting and electronic devices, such as flat screen televisions and smart phones. The indictment explains that the production of the wafers is highly sophisticated and must occur under “clean room” conditions by a fully automated process controlled by computers. The defendants allegedly downloaded information relating to this technology from their employer’s confidential internal engineering database, including over 16,000 drawings; shared plans in multiple emails describing their plans to use the technology in a new startup company; and attempted to recruit investors in order to fund the new startup which would operate in the United States and China. In sum, each defendant was charged with one count of conspiracy to commit theft of trade secrets, in violation of 18 U.S.C. § 1832(a)(5), and eleven counts of possessing stolen trade secrets, in violation of 18 U.S.C. § 1832(a)(3) & 2.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum sentence for a violation of 18 U.S.C. § 1832(a)(5) is 10 years’ imprisonment and a $250,000 fine. The maximum sentence for a violation of 18 U.S.C. §§ 1832(a)(3) & 2 is 10 years’ imprisonment and a $250,000 fine.
Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendants are scheduled to be arraigned on the indictment on December 15, 2017, before the Honorable Susan van Keulen, United States Magistrate Judge.
Assistant United States Attorney Susan Knight is prosecuting this case with assistance from Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Fort Smith, Arkansas Man Sentenced to 36 Months Probation for Interstate Transportation of Stolen PropertyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Thomas Charles Bardrick, age 21, of Fort Smith, Arkansas, was sentenced to 3 years probation for Interstate Transportation Of Stolen Property, in violation of Title 18, United States Code, Sections 2314 and 2.
The Indictment alleged that on or about April 15, 2015, in the Eastern District of Oklahoma, the defendant, Thomas Charles Bardrick, did unlawfully transport in interstate commerce stolen goods, wares and merchandise, that is, six (6) zero turn mowers, of the value of $5,000.00 or more knowing the same to have been stolen.
The charge arose from an investigation by the Oklahoma State Bureau of Investigation, Sallisaw Police Department, the Sequoyah County Sheriff’s Office, the Fort Smith Police Department, the Sabastian County Sherriff’s Office, the Poteau Police Department, and the District 27 Drug Task Force.
United States Attorney Brian J. Kuester said “This investigation and prosecution is a great example of the results that occur when citizens freely share information they believe to be suspicious and multiple law enforcement agencies from different jurisdictions work together. Investigators from each jurisdiction that assisted in this case played a critical role in the thorough, professional investigation that allowed this office to prosecute Bardrick. I commend the officers for their work and those citizens that provided information that lead to Bardrick’s arrest.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.
Former Owners of Sleep Study Clinics in Northern Virginia and Maryland Charged with Health Care Fraud and Tax EvasionRead the Press Release
An indictment was unsealed today charging two individuals with leading a multi-million dollar health care fraud and tax evasion scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente for the Eastern District of Virginia; Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office; Special Agent in Charge Kimberly Lappin , of Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office; Special Agent in Charge Robert E. Craig for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; Special Agent in Charge Nicholas DiGiulio of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) and Acting Inspector General Norbert E. Vint for the Office of Personnel Management (OPM) made the announcement after the indictment was unsealed.
Young Yi, 44, a citizen of South Korea, and Dannie Ahn, 43, of Centreville, Virginia, were charged in an indictment filed in the Eastern District of Virginia with one count of conspiracy to commit health care fraud and wire fraud, six counts of health care fraud, and one count of conspiracy to defraud the United States. Yi was also charged with one count of filing a false tax return.
As set forth in the indictment, from at least 2005 through 2014, Yi owned, operated and controlled various corporations, to include 1st Class Sleep Diagnostic Center and 1st Class Medical, which provided sleep studies and sleep-related treatment at clinics located throughout Northern Virginia and Maryland. Ahn helped control, manage and oversee Yi’s various corporations.
According to allegations in the indictment, Yi and Ahn directed a scheme that caused approximately $200 million in health insurance claims to be submitted for reimbursement that were, in part, based on false statements to health care benefit programs. In particular, the indictment alleges that Yi and Ahn fraudulently incentivized individuals to undergo repeat and medically unnecessary sleep studies, falsified insurance claims, and used the identities of physicians without their authorization to bill health care benefit programs for sleep studies.
The indictment alleges that Yi and Ahn similarly caused the creation of various shell companies to acquire, hold and move proceeds derived from the scheme. Yi and Ahn then used the proceeds to purchase expensive vehicles, luxury clothing, exotic vacations and exclusive real estate, including but not limited to, luxury condominiums in Hawaii and Chicago, and a tract of land in the Hidden Springs neighborhood of Great Falls, Virginia, in order to construct “Le Chateau de Lumiere,” a multi-million dollar and approximately 25,000-square-foot home modeled after the Palace of Versailles.
The indictment further alleges that Yi and Ahn falsified the financial books and records of 1st Class Sleep Diagnostic Center by misclassifying various personal expenses as business expenses in order to reduce taxable income. According to the allegations, Yi and Ahn then provided the falsified records to an independent tax preparer, who in turn relied on those records to prepare and file corporate and individual tax returns.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI’s Washington Field Office and the IRS-Criminal Investigation’s Washington Field Office. Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine Wong of the Eastern District of Virginia are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Former Lackawanna County Prison Contract Employee Charged with Providing and Attempting to Provide Drugs and Contraband to InmatesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jerry Defazio, age 39, of Archbald, Pennsylvania, was charged in a criminal information with providing and attempting to provide contraband, including illegal drugs, to inmates at the Lackawanna County Prison.
According to United States Attorney David J. Freed, the information alleges that Defazio provided and attempted to provide oxycodone, suboxone, and tobacco to inmates at the prison between November 2015 and April 2016. The information states that at the time of the criminal conduct, Defazio was a prison contract employee.
The charge stems from an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and 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 is 20 years’ 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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Former Connecticut Resident Pleads Guilty to Illegally Transporting Protected WildlifeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WILLIAM CARL BARTLETT, 65, of Eastpoint, Florida, formerly of Cheshire, Connecticut, pleaded guilty today before U.S. Magistrate Judge William I. Garfinkel in Bridgeport to two counts of illegally transporting protected wildlife.
According to court documents and statements made in court, BARTLETT is a snake and reptile collector. In July 2012, BARTLETT shipped via overnight mail courier 10 Outer Banks kingsnakes from Connecticut to an individual in Emporium, Pennsylvania. Prior to that date, BARTLETT collected a male and female kingsnake from the Outer Banks in violation of North Carolina law. In North Carolina, the Outer Banks kingsnake is designated as a species of special concern. BARTLETT then bred the snakes in Connecticut.
Between April 29 and May 13, 2015, BARTLETT transported five Coastal Plain milk snakes from the Chesapeake Forest and the Pocomoke River State Forest in Worcester County, Maryland, to his home in Connecticut. The snakes were collected in violation of Maryland law.
Judge Garfinkel scheduled sentencing for February 28, 2018, at which time BARTLETT faces a maximum term of imprisonment of two years and a fine of up to $20,000. BARTLETT is released on bond pending sentencing.
This matter is being investigated by the U.S. Fish and Wildlife Service’s Office of Law Enforcement and Division of Refuge Law Enforcement, and the Maryland Natural Resources Police. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Fifth Baltimore City Police Officer Pleads Guilty to Federal Racketeering ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4811
Baltimore, Maryland – Sergeant Thomas Allers, age 49, of Linthicum Heights, Maryland pleaded guilty today to charges of racketeering conspiracy and racketeering offenses, including nine robberies.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, Allers stole money from victims, swore out false affidavits and submitted false official incident reports. Sergeant Allers joined the Baltimore Police Department (BPD) on July 22, 1996. He became the officer-in-charge of the Gun Trace Task Force (GTTF), a specialized unit created to investigate firearms crimes, on or about July 25, 2013.
Allers admits that he participated in nine robberies and was armed with his BPD service firearm during the commission of the robberies. In some cases, there was no evidence of criminal conduct by the victims; Allers stole money that had been earned lawfully. The amounts stolen ranged from $700 to $66,000.
For example, on or about April 3, 2015, Allers and coconspirators executed a search warrant at a residence in Baltimore City and discovered approximately $6,000 in the home. This money was a combination of money that the homeowners had made buying and selling used cars and a tax refund the wife had received. Allers and his coconspirators took approximately $5,700 of the $6,000, and then filed a false incident report stating that only $233 had been seized.
In another incident, on or about March 2, 2016, Allers and his co-conspirators executed a search warrant at a residence in Baltimore City. The resident of the home had $200 in her purse, which her daughter had received the previous day during her birthday party, $900 to pay her rent for that month, $300 to pay down the amount of money she owed Baltimore Gas & Electric for utilities and $8,000 which were the proceeds of drug sales. Allers approved the false report that stated that only $1,624 had been seized from home, when in fact, he had stolen more than $7,000.
In another incident, on or about April 28, 2016, Allers and coconspirators arrested an individual who resided at a residence, then robbed the occupants of the residence of over $10,000. Allers approved a false incident report which failed to report that any money had been taken from the residence, when in fact he and his coconspirators stole more than $10,000. Following this robbery, one of the residents was shot and killed because he could not repay a drug-related debt.
According to the plea agreement, Allers prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents. The false reports concealed the fact that the officers had stolen money from individuals.
In total, Allers has admitted to stealing over $90,000.00.
Allers faces a maximum sentence of 20 years in prison. United States District Judge Catherine C. Blake has scheduled sentencing for February 23, 2018 at 11 a.m. Allers remains detained.
Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Acting U.S. Attorney Schenning also thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Felon in Possession Sentenced to 120 Months ImprisonmentRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that Ravon Pitts, age 29, from Milledgeville, Georgia, was sentenced to 120 months in prison on December 1, 2017, for possession of a firearm by a convicted felon. The sentence was imposed by the Honorable Marc T. Treadwell, United States District Judge, in Macon, Georgia.
There is no parole in the federal system.
Mr. Pitts pled guilty to this charge on August 31, 2017. In his plea agreement, Mr. Pitts admitted that on February 3, 2016, police officers and probation officers went to his residence in Milledgeville in order to execute a search warrant. The officers seized a set of digital scales, marijuana, a Kevlar ballistic vest, a black ski mask and a loaded .40 caliber Ruger semi-automatic pistol. The serial number on the pistol had been partially scratched off, but was legible. It was determined that the Ruger had been reported stolen.
At the time of this offense Mr. Pitts had three prior felony drug convictions in the Superior Court of Baldwin County occurring in 2009, 2010, and 2015, respectively.
“No convicted felon can legally possess a firearm. As a professional drug dealer, Ravon Pitts received the maximum sentence for this offense. As it did here, my office will prosecute all cases involving the illegal possession of firearms to the fullest extent possible. I commend the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for its fine work in this case," said U.S. Attorney Peeler.
This case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Kimberly S. Easterling prosecuted the case for the Government.
Questions regarding this case should be addressed to Pamela Lightsey, United States Attorney’s Office, at 478-621-2603 or [email protected]
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.—United States Attorney R. Trent Shores announced today the results of the December 2017 Federal Grand Jury.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Pedro Aguirre. Drug Conspiracy. Aguirre, 24, of Tulsa, is charged with conspiracy to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. If convicted, he faces the statutory maximum penalty of life in prison and a $10,000,000 fine. In addition, he faces a criminal forfeiture money judgment representing proceeds of the drug conspiracy. The Drug Enforcement Administration is the investigating agency.
Jose Luis Almanza-Rodriguez. Reentry of Removed Alien. Almanza-Rodriguez, 45, of Broken Arrow, is charged with having returned to the United States unlawfully after being deported in July 2015 from Hidalgo, Texas. If convicted, he faces the statutory maximum penalty of 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Laura Mae Campbell. Conspiracy, Drug Conspiracy and Use of a Communication Facility in Committing, Causing and Facilitating the Commission of a Drug Trafficking Felony. Campbell, 47, of Claremore, is charged with conspiracy to possess with intent to distribute and to distribute marijuana. If convicted, she faces the statutory maximum penalty of 5 years in prison and a $250,000 fine for the conspiracy charges; and a statutory maximum penalty of 4 years in prison and a $250,000 fine for use of a communication facility in committing a drug trafficking felony.
Jose Gomez-Abreu. Reentry of Removed Alien. Gomez-Abreu, 52, of Tulsa, is charged with having returned to the United States unlawfully after being deported in March 2012 from Calexico, California. If convicted, he faces the statutory maximum penalty of 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Gloria Gonzalez. Drug Conspiracy. Gonzalez, 20, of Tulsa, is charged with conspiracy to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. If convicted, she faces the statutory maximum penalty of life in prison and a $10,000,000 fine. The Drug Enforcement Administration is the investigating agency.
Nathan Ross Livengood. Possession With Intent to Distribute Methamphetamine,
Possession with Intent to Distribute Marijuana, Possession of Firearms in Furtherance of a Drug Trafficking Crime, and Possession of Firearms by an Unlawful User of a Controlled Substance. Livengood, 23, of Tulsa, is charged with possession with intent to distribute methamphetamine and marijuana, and possession of firearms in furtherance of a drug trafficking crime by an unlawful user of a controlled substance. If convicted, he faces the statutory maximum penalty of 40 years in prison and a $5,000,000 fine for possession with intent to distribution methamphetamine, the statutory maximum of 5 years in prison and a $250,000 fine for possession with intent to distribute marijuana, the statutory maximum of life in prison and a $250,000 fine for possession of firearms in furtherance of a drug trafficking crime, and the statutory maximum of 10 years in prison and a $250,000 fine for possession of firearms by an unlawful user of a controlled substance. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Clifford Wayne Lucas. Drug Conspiracy. Lucas, 37, of Tulsa, is charged with conspiracy to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. If convicted, he faces the statutory maximum penalty of life in prison and a $10,000,000 fine. The Drug Enforcement Administration is the investigating agency.
Anthony Ronnie Martinez. Conspiracy, Felon in Possession of Firearms and Ammunition, Steal and Unlawfully Carry Away Firearms from a Licensed Dealer, Possess, Receive, Conceal, Store, Barter, Sell, and Dispose of Stolen Firearms and Ammunition. Martinez, 44, of Tulsa, is charged with conspiracy to steal and unlawfully carry away firearms from a licensed dealer and to possess, receive, conceal, store, barter, sell, and dispose of stolen firearms and ammunition. If convicted, he faces the statutory maximum penalty of 5 years in prison and a $250,000 fine for conspiracy, the statutory maximum penalty of 10 years in prison and a $250,000 fine for felon in possession of firearms and ammunition, the statutory maximum penalty of 10 years in prison and a $250,000 fine for stealing and unlawfully carrying away firearms from a licensed dealer, and the statutory maximum penalty of 10 years in prison and a $250,000 fine for possessing, receiving, concealing, storing, bartering, selling, and disposing of stolen firearms and ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Edd Tawon Payne and Emmanuel Peter Britto. Conspiracy and Bank Robbery. Payne, 33, and Britto, 44, residences unknown, are charged with conspiracy to commit bank robbery and bank robbery. If convicted, they face the statutory maximum penalty of 25 years in prison and a $250,000 fine for the conspiracy and the statutory maximum penalty of 5 years in prison and a $250,000 fine for the bank robbery. The Federal Bureau of Investigation and the Tulsa Police Department are the investigating agencies.
Victor Alan Siegrist. Bank Larceny. Siegrist, 54, of Vinita, is charged with bank larceny. If convicted, he faces the statutory maximum penalty of 10 years in prison and a $250,000 fine. The Federal Bureau of Investigation and the Tulsa Police Department are the investigating agencies.
Aaron Robert Still. Possession of Marijuana With Intent to Distribute, Possession of Firearms in Furtherance of a Drug Trafficking Crime, and Receipt of a Firearm by a Person Under Indictment. Still, 20, of Tulsa, is charged with possession of marijuana with intent to distribute, possession of firearms in furtherance of a drug trafficking crime, and receipt of a firearm by a person under indictment. If convicted, he faces the statutory maximum penalty of 5 years in prison and a $250,000 fine for possession of marijuana with intent to distribute, the statutory minimum penalty of 5 years in prison and a $250,000 fine for possession of firearms in furtherance of a drug trafficking crime, and the statutory maximum penalty of 5 years in prison and a $250,000 fine for receipt of a firearm by a person under indictment. In addition, he faces forfeiture of drug proceeds, seized currency, firearms and ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Fayette County brothers plead guilty for roles in drug trafficking conspiracyRead the Press Release
BECKLEY, W.Va. – Two Fayette County men pleaded guilty today for their roles in a drug trafficking conspiracy, announced United States Attorney Carol Casto. Cheyenne Fragale, 30, of Boomer, and his brother Macon Fragale, 34, also of Boomer, entered their guilty pleas to conspiracy to distribute and to possess with intent to distribute more than 500 grams of methamphetamine, a quantity of oxycodone, and a quantity of heroin. Both face a mandatory minimum of 10 years in federal prison.
Cheyenne and Macon Fragale admitted that between May 2017 and June 28, 2017, they took part in a drug trafficking conspiracy with multiple participants. They also admitted that during the course of the conspiracy, they distributed over 2,000 thirty mg tablets of oxycodone and over 500 grams of methamphetamine, as well as heroin. They additionally admitted that they sold the drugs in and around Fayette County. On June 28, 2017, law enforcement executed search warrants at several locations associated with the conspiracy. During the execution of the search warrants, officers seized over 300 grams of crystal methamphetamine, as well as heroin, fentanyl, and over $29,000 in cash. The methamphetamine was later laboratory tested and confirmed to be 94% pure. Cheyenne Fragale additionally admitted that the cash was proceeds from drug dealing. As part of their plea agreements, Cheyenne and Macon Fragale both admitted to all the drug trafficking activity charged in the indictment.
Cheyenne and Macon Fragale each face at least 10 years and up to life in federal prison when they are sentenced on March 14, 2018.
This prosecution was made possible through the cooperative efforts of several investigating agencies. The investigation was led by the Federal Bureau of Investigation and the Raleigh County Drug and Violent Crime Task Force. The Drug Enforcement Administration, the Beckley Police Department, the Raleigh County Sheriff’s Department, the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service provided assistance throughout the investigation. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Fairfield Man Sentenced to Time Served for Illegally Possessing Firearms and AmmunitionRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Steven Lemieux, 54, of Fairfield, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to time served (over six months) for illegally possessing firearms and ammunition. He was also fined $5,000. Lemieux was convicted on June 15, 2017 following a two-day jury trial. He has been in federal custody since May 14, 2017.
Court records and trial evidence revealed that in December 2016, Lemieux possessed seven firearms and 784 rounds of ammunition. He was prohibited from possessing firearms and ammunition due to a 2006 federal felony conviction for providing false information to a federal firearm licensee.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Fairfield Police Department.
Executive of Yacht Sharing Club Charged with Operating Investment Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that on November 30, a federal grand jury in New Haven returned a five-count indictment charging ANDREW DEME, 51, of Fort Lauderdale, Florida, with conspiracy and fraud offenses related to an investment fraud scheme.
DEME was arrested yesterday in Florida and is released on a $100,000 bond pending his arraignment in Connecticut.
As alleged in the indictment, DEME was the President and sole Director of Waters Club Worldwide, Inc. (“WCW”). In November 2016, WCW completed a merger with Petrus Resources Corporation and the merged company subsequently changed its name to Waters Club Holdings, Inc. (“Waters Club”). DEME became President, Chief Executive Office and Chief Financial Officer of Waters Club. According to a Waters Club document used to solicit investors and business partners, Waters Club sought to “introduce a revolutionary Sharing Economy model to yachting” by “form[ing] a membership-based Club with a fleet of yachts strategically located in the world’s leading cruising regions that members can share and use interchangeably for their yachting vacations.”
The indictment alleges that DEME and others solicited prospective investors in Connecticut and across the U.S. by representing that investors’ would be used to develop the business, and fund the operations, of WCW and Waters Club; that DEME’s co-conspirators were not receiving compensation for recruiting investors, or were exclusively compensated with stock in lieu of commissions or other payments, and that WCW and Waters Club were in sound financial condition. In addition, in December 2016, DEME filed a Notice of Exempt Offering of Securities (“Form D”) with the U.S. Securities and Exchange Commission in which DEME represented that no sales commissions or finders’ fees were being paid to any person in connection with the sale of Waters Club stock.
The indictment alleges that, in fact, WCW and Waters Club were not in sound financial condition, and a substantial portion of investors’ money was not used to develop the business of WCW and Waters Club. Approximately half of all money paid by investors for shares of WCW and Waters Club was misappropriated for the personal use of DEME and his co-conspirators, and DEME’s co-conspirators were compensated with sales commissions, and not stock, for recruiting investors.
The indictment charges DEME with one count of conspiracy to commit mail and wire fraud, two counts of wire fraud, and two counts of mail fraud. Each charge carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Ecuadoran Citizen Sentenced for Illegal Re-entry into the United StatesRead the Press Release
ALBANY, NEW YORK – Jose Alberto Villa Pilamunga, age 28, and a citizen of Ecuador, was sentenced today to time served (27 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Villa Pilamunga admitted that he is a citizen of Ecuador, and that he illegally returned to the United States after he was removed to Ecuador on July 15, 2011.
On November 9, 2017, ICE Officers arrested Villa Pilamunga in Cobleskill, New York.
Following the sentencing, Villa Pilamunga was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant United States Attorney Edward P. Grogan
East Chicago Man SentencedRead the Press Release
HAMMOND –United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Jeffery Sims, 58, of East Chicago, IN, was sentenced on December 5, 2017 by District Court Judge James T. Moody for possession with intent to distribute crack and possession of a firearm in furtherance of a drug trafficking crime.
Sims was sentenced to 106 months imprisonment which consisted of consecutive sentences of 46 months for Possession with intent to distribute crack cocaine and 60 months for the possession of a firearm in furtherance of a drug trafficking crime. Sims was also sentenced to 2 years of supervised release.
According to documents filed in this case, the DEA intercepted texts and calls between Sims and his supplier during an investigation into a drug trafficking organization operating out of East Chicago. Utilizing code language, Sims would order crack cocaine from his supplier on a regular basis for delivery to customers on behalf of the drug trafficking organization. Law enforcement approached Sims after one of the communications with his supplier and arrested him after finding him in possession of crack cocaine and a firearm.
This case was investigated by the Drug Enforcement Administration in cooperation with the East Chicago Police Department. This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Dentist Pleads Guilty to $783,000 Overbilling SchemeRead the Press Release
RICHMOND, Va. – A Glen Allen dentist pleaded guilty today to a four-year healthcare fraud scheme in which she fraudulently obtained more than $783,000 from Medicaid and four dental insurers.
According to court documents, Maryam E. Zarei, 47, was the owner and operator of Atlee Station Family Dentistry, a general dentistry practice located in Mechanicsville. Zarei controlled the submission of claims to insurance companies for reimbursement, and from 2013 to 2016, defrauded Medicaid, Delta Dental, AETNA, Met Life, and U.S. Healthcare of approximately $783,000. The scheme involved three parts: 1) Zarei fraudulently billed Medicaid and the insurers for services never rendered, including a variety of purported services when Zarei was in fact out of the country; 2) Zarei billed the insurers for services using inappropriate billing codes that resulted in higher bills than were justified by the actual service performed, includeding, for example, upcoding of preventive resins to costlier resin-based composites, and upcoding routine extractions to surgical extractions; and 3) Zarei billed insurance companies for services performed after termination of the patients’ insurance coverage and then backdated the claims documents to make it appear that the services had occurred when the insurance policies were in effect.
Zarei pleaded guilty to one count of healthcare fraud and faces a maximum penalty of 10 years in prison when sentenced on March 16, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, and Adam Lee, Special Agent in Charge of the FBI’s Richmond Division, made the announcement after U.S. District Judge Henry E. Hudson accepted the plea. Assistant U.S. Attorney David T. Maguire and Special Assistant U.S. Attorney David W. Tooker 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. 3:17-cr-157.
Dallas Man Sentenced to 140 Months in Federal Prison for Drug and Firearm OffensesRead the Press Release
DALLAS — Eric Barrientos, 34, of Dallas, Texas, was sentenced yesterday by U.S. District Judge Ed Kinkeade to 140 months in federal prison, following his guilty plea in April 2017 to one count of possession with intent to distribute a controlled substance and one count of possession of a firearm in furtherance of a drug trafficking offense, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Barrientos has been in custody since the time of his arrest in July 2016.
According to the plea agreement factual resume filed in the case, on November 3, 2015, federal agents, after making several controlled purchases of narcotics from Barrientos, executed a federal search warrant at his residence. Law enforcement seized ten firearms and distribution quantities of methamphetamine ice, black tar heroin, and marijuana.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Andrew Wirmani was in charge of the prosecution.
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Corpus Christi Man Sent to Prison on Child Pornography ChargeRead the Press Release
CORPUS CHRISTI, Texas – A 46-year-old local man has been sentenced to prison for his conviction of distribution of child pornography, announced Acting U.S. Attorney Abe Martinez. Ronald Eugene Lowrey Jr. pleaded guilty July 6, 2017.
Today, U.S. District Judge Nelva Gonzalez Ramos handed Lowrey a sentence of 90 months in federal prison. In handing down the sentence, Judge Ramos took into consideration the total number of images and videos of child pornography found in both Lowrey’s computer and external hard drive device. Additionally, the court considered Lowrey’s lack of criminal history and his compliance while out on bond pending sentencing. Lowrey will serve five years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet and Lowrey will also be ordered to register as a sex offender.
Lowrey came to the attention of law enforcement when the Texas Attorney General’s Office conducted an investigation into a peer-to-peer file sharing network in 2014. Through that investigation, authorities identified a specific computer with suspected child pornography. Authorities later downloaded a total of eight such files that were being distributed via that device. The computer was later linked to Lowrey in Corpus Christi.
Law enforcement executed a search warrant at his residence, at which time he admitted to using the file sharing program and to viewing child pornography. A forensic examination of the items seized during execution of the search warrant revealed approximately 37 images and 246 videos of child pornography, including those that authorities had previously downloaded.
Lowrey was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Texas Attorney General’s Office, Corpus Christi Police Department’s Internet Crimes Against Children Task Force and the FBI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Elsa Salinas, 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."
Chief Accounting Officer Sentenced to Prison for Embezzling from West View Savings BankRead the Press Release
PITTSBURGH – A resident of Butler, Pennsylvania, has been sentenced in federal court to six months of imprisonment followed by three years of supervised release on a conviction of embezzling from a federally insured bank, Acting United States Attorney Soo C. Song announced today.
United States District Judge Cathy Bissoon imposed the sentence on Keith A. Simpson, 60, of Butler, Pennsylvania.
According to information presented to the court, from around April 2014 until around April 2016, while serving as Chief Accounting Officer of West View Savings Bank, Simpson embezzled approximately $41,806.90 from his employer.
Assistant United States Attorneys David Lew and Lee J. Karl prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Deposit Insurance Corporation, Office of Inspector General for the investigation leading to the successful prosecution of Simpson.