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5 December 2017
Holland Couple Sentenced in Connection with Fraudulent Receipt of over $1,000,000 in Veterans Benefits and Postal Workers CompensationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Richard Klaffka, 59, and his wife, Cathleen Klaffka, 62, both of Holland, NY, who were convicted in connection with Richard Klaffka’s receipt of over $1,000,000 in benefits from the Department of Veterans Affairs (VA) and the Department of Labor under false pretenses, were sentenced by U.S. District Judge Richard J. Arcara. Richard Klaffka was convicted of wire fraud and sentenced to 32 months in prison. Cathleen Klaffka was convicted of misprision of a felony and sentenced to three years probation. The couple was also ordered to pay restitution totaling $1,237,427; $922,137 to the VA and $315,290 to the Department of Labor.
Assistant U.S. Attorney Paul E. Bonanno, who handled the case, stated that in 2006, Richard Klaffka told the VA that, due to an injury connected with his military service in 1978, he was disabled, confined to a wheelchair and unable to engage in daily activities like walking, driving, and dressing himself. To promote the fraud, Cathleen Klaffka pushed Richard Klaffka in a wheelchair when at the VA hospital in order to support Richard’s false claim regarding his mobility limitations. In fact, both knew that Richard Klaffka was able to walk without assistance and regularly engaged in extensive physical activities including hiking, riding a bike, and pitching iron horseshoes.
Similarly, in order to get workers compensation benefits from his employment with the United States Postal Service, the defendant falsely claimed that his mobility was limited due to a work injury and that he was only able to walk with the assistance of a cane. All told, the Klaffka’s received $1,237,427 in government benefits to which they were not entitled. The investigation was triggered by an anonymous call to a fraud hotline."Services and programs offered by federal agencies such as the VA and the Department of Labor are designed to assist those who are most in need,” said U.S. Attorney Kennedy. “When defendants like the Klaffka’s try to game the system, they victimize those who are truly deserving and in need. With today's prison sentence, Mr. Klaffka will finally be able to experience firsthand what it means to suffer a true limitation to one's mobility.”
“The Department of Veterans Affairs pays disability compensation to eligible veterans who suffer from an injury or disease stemming from their military service,” said VA OIG Special Agent-in-Charge Donna Neves. “The defendants in this $1.2 million scheme defrauded, not only their fellow veterans, but the American taxpayer.”
“Klaffka lied regarding the extent of his injury and physical limitations in order to fraudulently receive government benefits that he was not entitled to. The U.S. Department of Labor, Office of Inspector General will continue to work with our law enforcement partners to ensure the integrity of the Federal Workers Compensation Program and pursue criminal charges against those who seek to fraudulently benefit from the Federal Employee Compensation Act," said Michael C. Mikulka, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, New York Region.
U.S. Postal Service Office of Inspector General Acting Special Agent-in-Charge Kenneth M. Cleevely stated: “The U.S. Postal Service spends nearly $3 billion per year in workers compensation costs, most of which goes to deserving postal employees with legitimate injuries suffered on the job. However, a few of them choose to take advantage of the system and defraud the government of hundreds of thousands of dollars. Special agents with the U.S. Postal Service Office of Inspector General will diligently investigate and bring to justice with our law enforcement partners individuals who cheat the system, and take money they don’t deserve. This sentence should also serve as a deterrent to other postal employees who may be thinking of committing workers compensation fraud; you may end up behind bars and out of a job. To report crimes committed by postal employees, including workers compensation fraud, contact USPS OIG special agents at www.uspsoig.gov or 888-USPS-OIG.”
The sentencings are the result of an investigation on the part of Special Agents of the United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Donna L. Neves; the Department of Veterans Affairs Police Department, under the direction of Chief Jeremy Novak; U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Michael C. Mikulka, Special Agent-in-Charge of the New York Region; and the United States Postal Service, Office of Inspector General, under the direction of Kenneth M. Cleevely, Acting Special Agent-in-Charge, Eastern Area Field Office.
Greenville Man Sentenced for Federal Firearm & Obstruction of Justice ChargesRead the Press Release
GREENVILLE – The 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 RICKY JAY BALL, 40, of Greenville to 96 months of imprisonment followed by 3 years of supervised release.
BALL was named in a 4-count Superseding Indictment filed on August 8, 2017. On September 11, 2017, BALL subsequently pled guilty to one-count of Possession of a Firearm and Ammunition by a Felon, two-counts of Obstruction of Justice, and one-count of Altering a Military Discharge Certificate.
On November 12, 2015, BALL received a two-year probationary sentence in the Eastern District of Virginia, following his misdemeanor convictions for Violation of Defense Property Security
Regulations and Possession of False Identification for his conduct in impersonating a United States Navy SEAL. On August 5, 2016, BALL’S supervision was transferred to the Eastern District of North Carolina. The Federal Bureau of Investigation (FBI) initiated an investigation in May 2015, upon receiving information from the Greenville Police Department (GPD) that BALL claimed to work for the North Carolina State Bureau of Investigation (NCSBI). Specifically, BALL told an intern with the Greenville Fire Department (GFD) that he was in court often due to his job, and he obtained warrants on individuals for committing crimes as part of his job responsibilities. BALL also told the intern he could get her parking tickets dismissed; however, the intern became suspicious when she received a late notice in the mail for unpaid parking tickets.
As early as November 17, 2015, BALL’S name appeared in police reports with the GPD as a loss prevention officer (LPO) for Sears in Greenville. During that time, BALL established a working relationship with members of the GPD and Pitt County Sheriff’s Office (PCSO), and BALL had asked several police officers if they wanted to shoot firearms with him on the firing range. Specifically, a detective with the PCSO observed BALL in possession of a pistol on April 28, 2016, while BALL was employed at Sears. The detective documented his observations after discovering BALL was a convicted felon. A subsequent interview with BALL’S store manager at Sears also revealed the store manager observed BALL in possession of a badge and firearm during BALL’S employment at Sears. Consequently, on May 28, 2016, the GPD arrested BALL for Impersonating a Law Enforcement Officer.
During a search of BALL’S residence, the PCSO seized a 9mm pistol, four pistol magazines, and numerous rounds of ammunition from BALL’S bedroom closet. Law enforcement later learned the
firearm was purchased by a man in Asheville, North Carolina. On June 30, 2016, the seller was interviewed by investigators and stated he sold the firearm to an individual who identified himself as Ricky Bennett, an alias of BALL. He stated he exchanged firearms with BALL (a/k/a Bennett), trading the recovered Springfield 9mm handgun with magazines for a Sig 9mm elite handgun. He noted BALL showed him his military identification, and BALL asserted to have trained with the U.S. Navy SEALS. On June 6, 2016, the GPD arrested BALL for Possession of a Firearm by a Felon at his residence in Greenville.
On May 17, 2017, a Probation Violation Hearing was held in the United States Magistrate Court in New Bern, North Carolina to revoke BALL’s federal probation based on his conduct of possessing a firearm as a felon and impersonating law enforcement. During that hearing, BALL submitted numerous false and fabricated documents to the Court. Those documents included fraudulent letters from his employer, community-services providers, and medical providers. Additionally, BALL altered a Military Discharge Certificate, DD-214, and changed his separation from the United States Marine Corps from “involuntary” to “medical.”
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The Federal Bureau of Investigation, Greenville Police Department, Pitt County Sheriff’s Office and the Naval Criminal Investigative Service conducted the criminal investigation of this case. Assistant United States Attorney Peggah B. Wilson handled the prosecution of this case for the government.
Four Sentenced in Fort Campbell Army Equipment ConspiracyRead the Press Release
Four of the seven defendants charged in a conspiracy to steal and sell U.S. Army equipment were sentenced today in U.S. District Court, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
John Roberts, 27, of Clarksville, Tenn., was sentenced today by visiting U.S. District Judge Hugh Lawson, from the Middle District of Georgia, to serve 15 years in prison. Roberts was found guilty by a federal jury on August 31, 2017, of conspiracy to steal U.S. Army property and selling that stolen property, 10 counts of wire fraud, and two counts of violating the Arms Export Control Act. Judge Lawson also ordered Roberts to pay $4.2 million in restitution to the U.S. Army.
During the trial, the evidence proved that Roberts conspired with U.S. Army soldiers who stole U.S. Army equipment, often after hours, from the U.S. Army installation at Fort Campbell. Roberts then purchased the equipment from the soldiers, in cash only deals and often in dark parking lots. Roberts then resold this military grade equipment via eBay. Roberts knew that some of the soldiers that he was purchasing the stolen equipment from had financial problems or serious drug addictions.
The U.S. Army equipment listed for sale on eBay included sniper telescopes and other sniper rifle accessories; parts for the M249 machine gun (including barrel assemblies, trigger groups, rail adapter kits, magazine buttstocks, mounts, and heat shields); sights for the M203 grenade launcher; “red dot” sights for the M2 and M4 assault rifles; flight helmets; communications headsets; and medical supplies. Certain equipment sold on eBay was advertised as “Army Special Forces,” “USGI” (U.S. Government Issued), and “New in Package.”
The evidence at trial also proved that Roberts illegally exported certain restricted U.S. Army equipment, including night vision helmet mounts. Roberts sold U.S. Army equipment to eBay customers around the world, including customers in Russia, China, Thailand, Japan, the Netherlands, Australia, India, Germany, and Mexico.
Three other defendants previously pleaded guilty and were also sentenced today, including:
- Alexander Hollibaugh, formerly of Fort Campbell, Kentucky, who pleaded guilty to conspiracy to steal and sell U.S. Army property, was sentenced to time served and placed on probation;
- U.S. Army Specialist Dustin Nelson, 23 of Northville, New York, who pleaded guilty to conspiracy to steal and sell U.S. Army property, was sentenced to three years’ probation; and
- Aaron Warner, of Fort Campbell, Kentucky, who pleaded guilty to conspiracy to steal and sell U.S. Army property, was also placed on three years’ probation.
The four remaining defendants have also pleaded guilty and are scheduled to be sentenced on January 8, 2018. They are Michael Barlow and Jonathan Wolford, both of Clarksville, Tenn., Kyle Heade, of Fort Campbell, Kentucky and Cory Wilson, of Gonzalez, Louisiana. Each faces up to five years in prison and a fine of up to $250,000 on the conspiracy charge. Wilson faces up to 20 years for each count of wire fraud and violating the Arms Export Control Act. In addition, Barlow faces up to 10 years in prison on the theft charge. The defendants also face forfeiture of the proceeds of their crimes.
This case was investigated by the Department of Homeland Security and U.S. Army Criminal Investigation Command. Assistant United States Attorneys Thomas J. Jaworski and Courtney L. Coker prosecuted the case.
Former Procurement Officer at Federally Funded Nuclear Research and Development Facility Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
A former procurement officer employed at Sandia Corporation, the prime operator of a federally funded nuclear research and development facility, pleaded guilty today to charges of wire fraud and money laundering for orchestrating a scheme to obtain approximately $2.3 million in federal funds through fraudulent means and for laundering fraudulently obtained proceeds through her father’s companies.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.
Carla Sena, 55, of Santa Rosa, New Mexico, pleaded guilty to one count of wire fraud and one count of money laundering before U.S. District Chief Judge M. Christina Armijo in the District of New Mexico. Sentencing will be scheduled at a later date before Judge Armijo.
According to the plea documents, Sena’s employer, Sandia Corporation, managed and operated Sandia National Laboratories (SNL), a nuclear research and development facility owned by the federal government under sponsorship of the U.S. Department of Energy (DOE). In late 2010, Sena managed the bidding process for the award of a multi-million-dollar contract for moving services at SNL. Sena admitted that, in anticipation of the bidding process for this contract, she created the company, New Mexico Express Movers LLC (Movers LLC), to which she awarded the multi-million-dollar contract. Sena prepared a bid on Movers LLC’s behalf containing fraudulent misrepresentations, and submitted the bid under the name of an individual who had no knowledge of Movers LLC to conceal her involvement. Sena also admitted that she used her position of trust to access inside information and competing bidders’ documents that she leveraged to ensure award of the contract to Movers LLC.
As a direct result of Sena’s fraudulent scheme, Movers LLC received approximately $2.3 million in federal funds between May 2011 and April 2016. Sena also admitted that, between October 2011 and April 2015, she transferred via negotiated checks at least $643,000 of the fraudulently obtained proceeds to legitimate businesses owned by her father with the intent to conceal the source and control of those funds and her subsequent personal gain from the proceeds.
The DOE Office of Inspector General investigated the case. Trial Attorneys Victor R. Salgado and Rebecca Moses of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former Mobile Man Sentenced to Life in Prison for Child Sex CrimesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Myron Gerald “Ty” Stevens, 43, formerly of Mobile and Thomasville, Alabama, was sentenced to life in prison for sexual exploitation of children. The sentence was imposed by United States District Judge William H. Steele. In the event Stevens is ever released, he would be supervised by the United States Probation Office for the rest of his life, and required to register as a sex offender in any jurisdiction in which he lives, works, or is a student.
Stevens pled guilty in April, 2017 to two counts of production of child pornography; transporting a minor across state lines with the intent to engage in criminal sexual activity; receipt and distribution of child pornography; and possession of child pornography.
According to court records of Stevens’s plea, the investigation began in March of 2014, when law enforcement agents downloaded images of child pornography from a computer connected to the internet. Agents traced the location of the computer to a residence in Thomasville, and obtained a search warrant in August of 2014. Computer equipment and media storage devices were seized pursuant to the warrant, and an on-scene review of the data revealed a video of Stevens performing oral sex on a boy. Investigators learned that Stevens was on the way back from a trip to Florida with the boy. Agents immediately obtained an arrest warrant for Stevens, and he was arrested in transit from Florida.
In a videotaped statement, Stevens admitted to agents that he had sexually abused the 14-year old boy between 25 and 50 times over the previous two years, beginning when the boy was 12. Stevens also confessed that he had recorded some of the abuse and that he was addicted to child pornography that he downloaded and distributed on the internet. Stevens told investigators that the last time he had abused the boy was the previous night in Florida. The victim identified himself in sanitized photos and confirmed Stevens’s abuse of him for the past two years. He also identified a second boy in other videos Stevens took of the boy in Stevens’s apartment. Forensic analysis of the media recovered in the search revealed at least 1,877 images and 597 videos depicting child pornography.
The investigation was conducted by the Alabama Law Enforcement Agency with the assistance of the Thomasville Police Department and the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant United States Attorneys Sean P. Costello and Maria E. Murphy.
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 and for information about internet safety education, visit www.usdoj.gov/psc.
Former Frederick Business Owner Charged in $50 Million Bank FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury has charged Mark Ian Gaver, age 56, of Bonita Springs, Florida, with eight counts of bank fraud and two counts of money laundering arising from an alleged scheme to obtain $50 million in bank financing for his company using false and fraudulent financial statements, balance sheets, and certifications of outstanding accounts receivables. The indictment was returned today, although Gaver was previously arrested on a criminal complaint when he entered the United States from Canada on November 15th.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation (FBI), Baltimore Field Office; and Special Agent in Charge Steven Perez, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), Northeast Region.
According to the ten-count indictment, in 1998 Gaver formed Gaver Technologies, Inc. (GTI,) an information technology company based in Frederick, Maryland. Between November 2008 and April 2016, Gaver allegedly submitted materially false financial documents to Santander Bank (Santander), including fraudulent audit reports and contract status reports, in order to obtain successive extensions and increases in lines of credit from Santander for GTI. Based upon the false documentation allegedly submitted by Gaver, Santander ultimately extended $50 million in financing to GTI. The indictment further charges that Gaver diverted a large portion of these fraudulently obtained funds to his own personal use.
According to the indictment, Santander initially approved an $18.5 million line of credit for GTI in August 2009. This line of credit was subsequently increased eight separate times between March 2010 and March 2016, successively growing from $18.5 million to a final total of $50 million. In connection with each request by Gaver for an increase in GTI’s credit line, Santander required GTI to submit specific documentation disclosing its financial performance and condition. The required documentation included audited annual financial statements, quarterly balance sheets, monthly borrowing base certificates, and monthly accounts receivable aging reports. The monthly borrowing base certificates required Gaver to certify the amount of GTI's outstanding accounts receivable, and were used by Santander to establish a maximum borrowing amount for GTI. Under the terms of GTI's line of credit agreement with Santander, GTI was only allowed to borrow up to 75% - 80% of the total amount of GTI's outstanding accounts receivable, and the funds loaned by Santander were only to be used for business purposes by GTI.
According to the indictment, Gaver also submitted Quarter Contract Status Reports to Santander between August 2009 and December 2016 which falsely represented that GTI had secured contracts with federal government agencies such as the Bureau of Alcohol, Tobacco and Firearms (ATF), the Environmental Protection Agency (EPA), the United States Air Force (USAF), the National Aeronautics and Space Administration (NASA), and the Department of Labor (DOL), or that overstated the amount of GTI’s ongoing contracts with various federal government agencies.
Gaver did use funds loaned by Santander to GTI for legitimate business purposes, but he also diverted substantial amounts of the loan proceeds to his own personal use. For example, Gaver used loan proceeds to pay $779,000 for the rental of private planes that he used for non-business purposes, as well as to pay for personal pleasure trips to St. Maarten, France, Germany, Mexico, Jamaica, and the Bahamas, as well as to purchase vacation homes, including a home in Bonita Springs, Florida that cost $2.275 million. Gaver also used loan proceeds to purchase a 2012 Maserati Gran Turismo; a 2011 Mercedes Benz SL Class Roadster; and a private membership at an exclusive golf club located in Naples, Florida that cost $300,000.
Gaver faces a maximum possible sentence of up to 30 years in prison for each of the eight bank fraud counts, as well as 10 years in prison on each of the two money laundering charges, and post-incarceration terms of supervised release for five years and three years respectively. Gaver had his initial appearance at U.S. District Court in Baltimore at 12:30 p.m. today, and a hearing to determine whether he will be released pending trial is scheduled for 2:00 p.m. on Wednesday, December 6th.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI and the FHFA-OIG for their work on the investigation. Mr. Schenning also thanked Assistant U.S. Attorneys Rachel M. Yasser and Jefferson M. Gray, who are prosecuting the case.
Former Felon Sentenced to 10 Years in Prison for Illegal Possession of FirearmsRead the Press Release
LAS VEGAS, Nev. – A former felon who was convicted for federal firearms violations was sentenced today to 120 months in prison, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Tajh Dion Weatherspoon, 28, was found guilty in May of one count of felon in possession of a firearm and he pleaded guilty to a second count of felon in possession of a firearm. Weatherspoon had two prior felony convictions, including attempted burglary and felon in possession of a firearm. In addition to the term of imprisonment, United States District Judge Howard D. McKibben imposed a three year term of supervised release.
According to the superseding indictment, Weatherspoon was in possession of a Glock 19 handgun on June 15, 2016, and a Glock 21 handgun on Dec. 22, 2016. The Court severed the two counts and ordered that the trials proceed one after the other, beginning May 15, 2017. After the jury convicted Weatherspoon of possessing the Glock 19 handgun, he declined to proceed to trial on the count charging possession of the Glock 21 handgun and instead pleaded guilty without the benefit of a plea agreement.
The case was investigated by the FBI, ATF, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department. The case was prosecuted by Assistant U.S. Attorneys Tony Lopez and Patrick Burns.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Former Broadview Heights man sentenced to nearly six years in prison for defrauding Cuyahoga Heights School District out of $2.6 millionRead the Press Release
A former Broadview Heights man was sentenced to nearly six years in prison for his role in a scheme to defraud the Cuyahoga Heights School District out of millions of dollars, law enforcement officials said.
David Donadeo, 43, (formerly known as Donald A. Rupp) was sentenced to 70 months in federal prison and ordered to pay approximately $2.6 million in restitution.
Donadeo and others established and owned shell vendor companies that were used to defraud the school district. Joseph Palazzo worked as Cuyahoga Heights School District’s information technology director. Palazzo was responsible for managing the District’s IT Department, which included purchasing hardware and software and making other IT expenditures to benefit the District and its students, according to court documents.
Palazzo, Donadeo, and others devised a scheme to divert millions of dollars of school district funds to their own personal use. Overall, the school district sustained a loss of approximately $3.3 million.
This scheme involved Palazzo submitting to the school distict false invoices that purported to be for IT-related goods and services purchased from legitimate companies by the school district’s IT department. Palazzo represented that the invoices he submitted were legitimate, and he approved the false invoices himself or forged the signature of another in the approval section, according to court documents.
The companies named on the invoices did not supply such goods to or perform such services for the District and were nothing more than shell companies set up by Donadeo and others to perpetrate the fraud scheme. The invoices listed services that were never performed, fictitious software and hardware, adn software and hardware never received or already purchased by the school district from another source, according to court documents.
Relying on these invoices, the school district issued checks to these shell vendor corporations, two of which Donadeo operated. Donadeo, and the other shell vendor corporation owner kept approximately half of the stolen money themselves and funneled the remainder of the money back to Palazzo for his personal use, according to court documents.
According to court documents, Donadeo fled the country with his family shortly after learning authorities were were pursuing a criminal investigation and had executed search warrants. The case was indicted in 2013, but Donadeo remained at large until May 2017, when Spain extradited Donadeo and returned him to the U.S. to face prosecution.
“This defendant set up sham corporations that he used to steal millions of dollars from the students and taxpayers of Cuyahoga Heights,” said U.S. Attorney Justin E. Herdman.
“David Donadeo will be in prison for more than five years for his involvement in a scheme laced with a web of financial lies, but the harm caused to the students and citizens of Cuyahoga Heights may last a lifetime,” said Ryan L. Korner, Special Agent in Charged, IRS Criminal Investigation, Cincinnati Field Office.
“David Donadeo stole from the citizens and students of Cuyahoga Heights and then avoided the consequences of his actions for years,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The investigators are to be commended for uncovering this enormous fraud.”
Joseph Palazzo was sentenced to 11 years in prison for his role in the conspiracy. His brother, Dominic Palazzo, was sentenced to 30 months in prison. Dennis Boyles was sentenced to more than two years in prison for his role in the conspiracy.
This case was investigated by the Internal Revenue Service -- Criminal Investigation and the Federal Bureau of Investigation, with the assistance of the State of Ohio Auditor’s Office, the Cuyahoga County Sheriff’s Office and the United States Postal Inspection Service.
The case was prosecuted by Assistant United States Attorney Rebecca Lutzko and Assistant United States Attorney James L. Morford.
Former Attorney Sentenced for Mail FraudRead the Press Release
HAMMOND –United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Robert E. Stochel, age 64, of Crown Point, Indiana was sentenced before District Court Senior Judge James T. Moody for mail fraud.
Stochel was sentenced to 24 months imprisonment and ordered to pay restitution in the amount of $229,091.97.
According to documents filed in this case, Stochel, a local attorney, and former Tip Top Supermarket receiver was convicted on a charge of mail fraud relating to a scheme he operated from 2001 to June 2012 against the Tip Top Receivership estate. In his capacity as receiver, Stochel stole hundreds of thousands of dollars from the receivership and then attempted to hide that theft from not only the court that appointed him receiver but also from the receivership’s beneficiaries. Stochel was convicted after a 3-day jury trial in May of 2017.
“Attorneys are entrusted with a great deal of power and authority to act on behalf of and in the best interests of their clients,” said US Attorney Kirsch. “Those who do not, but instead engage in criminal conduct, will be prosecuted to the fullest extent of the law.”
This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorneys Diane Berkowitz, Alexandra McTague and Maria Lerner.
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Five Defendants Arrested in Bottle-Return BustRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Leon Hayward, Acting Director of the New York Field Office of U.S. Customs and Border Protection (“CBP”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced that ELDAR RAKHAMIMOV, NASIM RAKHAMIMOV, VLADIMIR ZABRODIN, RUSLAN KADIROV, and JOSEPH FINNERAN were taken into federal custody today for participating in a scheme to defraud beverage bottling companies and the State of New York. The defendants were presented this afternoon before U.S. Magistrate Judge James L. Cott.
According to the allegations in the Complaint filed today in Manhattan federal court:[1]
From September 2016 to December 4, 2017, ELDAR RAKHAMIMOV, NASIM RAKHAMIMOV, ZABRODIN, KADIROV, and FINNERAN conspired to defraud bottling companies and the State of New York through a scheme involving recyclable containers.
The defendants’ scheme exploited recycling incentives created by New York State’s Returnable Container Act (the “RCA”). The RCA created a $.05 deposit on bottled soft drinks, beer, and water sold in New York State to promote the recycling of bottles and cans by bottlers, beverage distributors, and container redemption centers. Under the RCA, the first bottler, distributor, or dealer to collect the required deposits on beverage containers is required to reimburse the $.05 deposit to redeeming individuals or entities and to pay a handling fee of $.035 per empty beverage container redeemed by redemption centers.
ELDAR RAKHAMIMOV and NASIM RAKHAMIMOV managed a bottle collection company (“Company-1”) that focused on aggregating recyclable containers and delivering them, in exchange for payment, to redemption centers in the New York City area. ELDAR RAKHAMIMOV and NASIM RAKHAMIMOV, along with ZABRODIN, KADIROV, and FINNERAN, worked together to falsely inflate the number of bottles delivered by Company-1 to induce redemption centers to overpay bottle deposits and handling fees to Company-1.
Using an assortment of deceptive techniques, ranging from doctored invoices to “redeeming” the same bottles twice to impermissibly collecting bottles from New Jersey to paying (or receiving) kickbacks, the defendants extracted hundreds of thousands of dollars from victim companies – and, ultimately, the State of New York.
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ELDAR RAKHAMIMOV, 46, of Brooklyn, New York, NASIM RAKHAMIMOV, 46, of Brooklyn, New York, ZABRODIN, 32, of Staten Island, New York, KADIROV, 32, of Brooklyn, New York, and FINNERAN, 64, of Bay Shore, New York, are each charged with one count of conspiring to commit mail and wire fraud, which carries a maximum penalty of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Kim praised the outstanding work of the FBI, the CBP, and the NYPD for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Andrew C. Adams, Frank J. Balsamello, and Andrew Thomas are in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Fayetteville Man Sentenced for Possession of a Firearm by a FelonRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge James C. Dever, III sentenced DASHAWN JEWELIN MCCALL, 24, of Sanford to 57 months of imprisonment followed by 3 years of supervised release.
MCCALL was named in a 1-count Indictment filed on March 28, 2017. On August 21, 2017, MCCALL subsequently pled guilty to one-count of Felon in Possession of a Firearm.
On December 13, 2016, officers from the Fayetteville Police Department were conducting surveillance on a vehicle belonging to MCCALL due to outstanding warrants for MCCALLS’s arrest. Officers observed MCCALL exit a nearby store with his girlfriend and enter the vehicle. Officers approached the vehicle and placed MCCALL under arrest. A .40 caliber handgun, loaded with fourteen rounds of ammunition, was found tucked into MCCALL’S waistband underneath his shirt. MCCALL admitted to possessing the firearm. Based on the investigation, MCCALL possessed a firearm on December 13, 2016, subsequent to sustaining a conviction for Assault with a Deadly Weapon on a Government Official, a felony that is classified by the federal sentencing guidelines as a “crime of violence.” MCCALL provided a written acceptance of responsibility statement to the United States Probation Office acknowledging the conduct outlined in the Indictment.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the criminal investigation of this case. Assistant United States Attorney James J. Kurosad handled the prosecution of this case for the government.
Eagle Butte Woman Sentenced for Possession of MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman charged with Possession of a Controlled Substance pled guilty and was sentenced on November 27, 2017, by U.S. Magistrate Judge Mark A. Moreno.
Shawnda Cyrene Dupris, age 31, was sentenced to 18 months of probation, a fine of $1,000 and a special assessment to the Federal Crime Victims fund in the amount of $25.
On September 16, 2016, law enforcement executed a search warrant on the Eagle Butte apartment leased by Shawnda Dupris, and in which Dupris and Wacey James Long resided. During the execution of the search warrant, law enforcement found and seized a Savage Arms, Springfield model 67H, 12 gauge shotgun, bearing no serial number, and drug paraphernalia testing positive for methamphetamine. Dupris admitted to possessing methamphetamine on that date, but denied owning the firearm or knowing it was in her apartment.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case
Dupris was released on conditions following sentencing. Wacey James Long was convicted and sentenced on August 21, 2017, to 25 months in custody for the firearms violation.
Drug Trafficker Sentenced in Brooklyn Federal Court to 10 ½ Years’ Imprisonment for Distributing FentanylRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Edward Carrillo, also known as “Super Ed,” was sentenced by United States District Judge Brian M. Cogan to 10 ½ years’ imprisonment for conspiring to distribute fentanyl, to be followed by a term of four years’ supervised release. The fentanyl the defendant distributed was linked to the overdose death of a young mother in West Virginia in April 2015. The judge also ordered forfeiture in the amount of $150,000.
Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“The defendant peddled fentanyl from New York City to West Virginia with callous disregard for the human consequences of this dangerous drug,” stated Acting United States Attorney Rohde. “Carrillo’s sentence should serve as a message that fentanyl dealers who promote and profit from this deadly epidemic will be held accountable for their crimes.”
“What started as a local investigation targeting a crack cocaine distribution organization turned into a murder mystery upon the death of a young pregnant mother in West Virginia,” DEA Special Agent in Charge James Hunt stated. “Fentanyl doesn’t discriminate against users, nor do drug dealers whose only concern is profit. Law Enforcement will continue to identify dealers and traffickers responsible for fueling opioid abuse and the rising number of fentanyl-related overdoses.”
According to the Centers for Disease Control and Prevention and the Department of Justice, drug overdoses have become the leading cause of death for Americans under the age of 50. Between 2012 and 2015, fentanyl overdose deaths in West Virginia increased by more than 20 percent, according to the DEA. The recent rise in overdose deaths has been driven in large part by fentanyl—a drug that has been described as 50 to 100 times more potent than morphine. Opioids have been a particular problem in West Virginia where the defendant and his co-conspirators trafficked substantial amounts of fentanyl. One of those deaths was a young mother, whom Carrillo and his co-conspirators believed they killed with their fentanyl pills. Upon learning of the young mother’s death, Carrillo’s co-conspirator was intercepted over a judicially authorized wiretap stating, “the girl went out.” When Carrillo asked what the co-conspirator meant by “went out,” the co-conspirator left no ambiguity that a young woman had died: “Went out! OD, OD,” with ‘OD’ referring to a drug overdose.
According to the government’s sentencing memorandum, in addition to his involvement in the fentanyl conspiracy, the defendant supplied a significant amount of the cocaine that was converted to crack and sold in the Queensbridge community. He also agreed to commit an armed robbery of an individual believed to be traveling with $110,000. When Carrillo was arrested in December 2016, law enforcement officers recovered a loaded gun at his apartment, which he used as a grow house for marihuana.
On November 16, 2017, co-defendant Terrell Carmichael was sentenced to 51 months’ imprisonment for conspiring to distribute crack-cocaine. The other defendants are awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Andrey Spektor and Lindsay K. Gerdes are in charge of the prosecution.
The Defendants:
LASHAWN BALANCE, also known as “Flip”
Age: 41
Princeton, West VirginiaTERRELL CARMICHAEL, also known as “Rell”
Age: 31
Long Island City, New YorkEDWARD CARRILLO, also known as “Super Ed”
Age: 43
Manhattan, New YorkDARRYL KNOWLES
Age: 29
Bronx, New YorkJOHNNIE MONROE, also known as “Nut”
Age: 46
Brooklyn, New YorkKYLE WILLIAMS, also known as “Sleepy”
Age: 31
Long Island City, New YorkMICHAEL YOUNG, also known as “Littles”
Age: 32
Long Island City, New YorkE.D.N.Y. Docket No. 16-CR-617 (BMC)
Dominican National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – Felipe Rodolfo Baez-Romero, 46, pleaded guilty today in federal court in Boston to one count of illegal reentry of a deported alien. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Feb. 8, 2018.
On Sept, 29, 2017, law enforcement in Boston encountered Baez-Romero and determined that he was unlawfully present in the United States. Baez-Romero was previously deported on May 7, 2013.
The charge provides for a sentence of no greater than two years in prison, one year of supervised released and a fine of up to $250,000. Baez-Romero will face deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
Columbus, Ohio man indicted on failure to update sex offender registryRead the Press Release
WHEELING, WEST VIRGINIA – Christopher D. Barker, of Columbus, Ohio, was indicted by a federal grand jury in Wheeling on a failure to update a sex offender registration charge, United States Attorney Bill Powell announced.
Barker, also known as Christopher D. Cooper, age 29, was indicted on one count of “Failure to Update Registration as a Sex Offender - SORNA.” Barker, having previously been convicted as a sex offender, is accused changing addresses without updating his sex offender registration. The crime is alleged to have occurred from August to October 2017 in Ohio County, West Virginia and elsewhere.
Barker faces up to ten years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The United States Marshal Service is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Clearfield Man Sentenced for Possession of MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Clearfield, South Dakota, man charged with Possession of a Controlled Substance pled guilty and was sentenced on November 27, 2017, by U.S. Magistrate Judge Mark A. Moreno.
Cory Scott Fischer, age 45, was sentenced to 10 months in custody, followed by 1 year of supervised release, a fine of $1,000 and a special assessment to the Federal Crime Victims fund in the amount of $25.
During the late night hours of November 10, 2016, and into the early morning hours of November 11, 2016, Rosebud Sioux Tribe Law Enforcement Officers responded to a call involving the defendant at the Rosebud Casino. Inside Fischer’s vehicle, officers found a baggie containing methamphetamine belonging to Fischer that weighed 18.92 grams. Fischer admitted that the methamphetamine, a Schedule II controlled substance, was his.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Fischer was ordered to self-surrender to the custody of the U.S. Marshal’s Service or the U.S. Bureau of Prisons on January 2, 2018, to serve his sentence.
Cheswick Man Sentenced to Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 57 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.
Senior United States District Judge Donetta W. Ambrose imposed the sentenced yesterday on Michael Allen Sanders, age 56, of Cheswick, Pennsylvania.
According to information presented to the court, on June 25, 2015, Sanders 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 Jessica Lieber Smolar 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 Sanders.
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.
Brawley Man Sentenced for Stealing More Than $250,000 from Local FarmRead the Press Release
Assistant U.S. Attorney Christine M. Ro (619)546-7937
NEWS RELEASE SUMMARY – December 4, 2017
SAN DIEGO - Former bookkeeper Claude Theodore Riley was sentenced in federal court today to 24 months in prison for embezzling from his former employer and failing to pay taxes on the stolen funds. He was also ordered to pay $273,000 in restitution to the employer and $75,000 to the Internal Revenue Service.
Riley pleaded guilty in September to wire fraud and making a false tax return in a five-year scheme in which he stole stealing from his employer, an Imperial Valley farm. Riley stole approximately $272,984.00 from his employer, filed fraudulent tax returns, and failed to file required employment tax returns resulting in a $1.5-million-dollar tax lien against the farm.
Riley served as the farm’s bookkeeper from 2010 to 2015, overseeing the farm’s entire annual budget. As the bookkeeper, Riley had access to the farm’s bank accounts, paychecks, and bookkeeping records. Riley forged certain IRS documents to hide his embezzlement from the employer. For his scheme, Riley made 148 transactions out of the employer’s bank account, fictitiously entered various vendors to be paid into the bookkeeping records, and generated checks made payable to himself.
“His employer trusted Riley to safeguard the fruits of their labor, but he diverted hundreds of thousands of those hard-earned dollars into his own pocket,” said U.S. Attorney Adam Braverman. “Today, the defendant pays the price for his deception.”
“Mr. Riley took advantage of the trust of his employer for his own benefit,” said FBI Special Agent in Charge Eric S. Birnbaum. “Today, justice is served for this Imperial Valley farm family. This case is an excellent example to illustrate how the FBI works to uncover fraud schemes that have a significant impact on the Valley's hard-working farming industry.”
The farming industry is an important source of Imperial Valley’s economy and producer of agriculture for the nation. Imperial Valley is one of California’s top producers of agriculture, which generates income for local families in the Southern District of California.
DEFENDANT Criminal Case No. 17CR2721-BAS
Claude Theodore Riley Age: 56 Brawley, California
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 20 years’ imprisonment and $250,000 fine
Filing a False Tax Return – Title 26, U.S.C., Section 7206(1)
Maximum penalty: 3 years’ imprisonment and $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation, Imperial County Resident Agency
Internal Revenue Service, Criminal Investigation
Brawley Police Department
Bluefield felon pleads guilty to federal gun crimeRead the Press Release
BLUEFIELD, W.Va. – A Bluefield man pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Cory Lee Callen, 27, entered his guilt plea to possession of a firearm by a convicted felon.
In late March 2017, Callen’s former fiancé obtained a domestic violence protective order against him. On March 29, 2017, officers with the Bluefield Police Department escorted her to the Washington Street apartment in Bluefield that she formerly shared with Callen to collect her personal belongings. While there, officers located three loaded firearms in a safe in Callen’s bedroom, along with a variety of ammunition. The guns law enforcement discovered were a CBC, Mossberg International, Model 715T, .22 caliber rifle, a Marlin, Model 782, .22 caliber rifle, and a Zijang, Model Catamount Fury, 12 gauge shotgun. Callen was prohibited from possessing any firearms under federal law because of two felony convictions in 2012 in Mercer County Circuit Court, one for first degree robbery and one for wanton endangerment.
Callen faces up to 10 years in federal prison when he is sentenced on April 17, 2018.
The Bluefield Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney R. Gregory McVey is handling the prosecution. Senior United States District Judge David A. Faber presided over the plea hearing.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Anderson Tax Preparer Guilty of FraudRead the Press Release
Columbia, South Carolina –------- United States Attorney, Beth Drake, announced today that Shirley Carson, age 49, of Anderson, South Carolina, pled guilty as charged to a twenty count Indictment charging her with filing false income tax returns with the Internal Revenue Service. The plea was accepted by United States District Court Judge Bruce H. Hendricks sitting in Greenville, South Carolina. Judge Hendricks will sentence Carson at a later date.
The facts presented at the guilty plea established that Carson operated a small business doing income tax returns out of her home in the Anderson area. Carson developed a reputation as being able to obtain significant tax refunds for lower income clients. For tax years 2012 and 2013, Carson prepared the 19 fraudulent returns which comprise Counts 2-20 of the Indictment. In these returns Carson was able to generate large refunds by falsely stating that the taxpayers had dependents who did not exist and medical or mortgage expense which had not been paid. Additionally, as charged in Count One of the Indictment, Carson filed a false return for herself in which she used counterfeit W-2 forms to make it appear that she had paid taxes through withholdings which she had not, which caused a refund to which she was not entitled.
United States Attorney Drake stated that the case was investigated by agents of the Criminal Investigative Division of the Internal Revenue Service and prosecuted by Assistant United State Attorney David C. Stephens of the Greenville office.
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Additional Corruption Charges Filed Against Bucks County Public OfficalsRead the Press Release
John I. Waltman, 59, of Trevose, Pennsylvania, Robert P. Hoopes, 70, of Doylestown, Pennsylvania, and Bernard T. Rafferty, 62, of Langhorne, Pennsylvania, were charged in a second superseding indictment[1] with one count of conspiracy to commit money laundering, three counts of money laundering, one count of honest services wire fraud, three counts of honest services mail fraud, and one count of Hobbs Act extortion under color of official right, announced United States Attorney Louis D. Lappen.
Moreover, the second superseding indictment added further corruption charges against Waltman and Hoopes. Specifically, Waltman was charged with five additional counts of Hobbs Act extortion under color of official right, three counts of Travel Act bribery, and two counts of wire fraud. Hoopes was charged with three additional counts of Hobbs Act extortion under color of official right, three counts of Travel Act bribery, and two counts of wire fraud.
Hoopes was also charged with one count of witness tampering. Kevin M. Biederman, 34, was also charged with one count of conspiracy to commit money laundering, three counts of money laundering, and one count of bank bribery.
From October 2010 to December 2016, Waltman was a Magisterial District Judge in Bucks County, Pennsylvania. From February 2016 to December 2016, Hoopes was the Director of Public Safety in Lower Southampton Township, Pennsylvania. In this position, Hoopes had authority over all police, fire, and emergency operations in the township. Hoopes previously operated a legal practice in Doylestown, Pennsylvania. From 1998 to December 2016, Rafferty was a Deputy Constable in Bucks County. Rafferty controlled Raff’s Consulting LLC, a corporation registered with the Pennsylvania Department of State on May 30, 2011. From 2012 to March 2016, Biederman was a business development manager at Philadelphia Federal Credit Union (“PFCU”).
The second superseding indictment alleges that, from 2014 to 2016, Waltman and Hoopes solicited, extorted, and attempted to extort bribes and kickbacks from numerous businesses in exchange for Waltman’s and Hoopes’ influence over Lower Southampton Township’s Board of Supervisors, Solicitor, officers, and employees. In one such alleged scheme, Waltman and Hoopes solicited bribe payments from the salesman of an outdoor advertising company in exchange for offering their influence to reduce lease payments from the company to Lower Southampton Township.
Moreover, in November 2016, Waltman, Hoopes, and Rafferty allegedly accepted a bribe of $1,000, as well as the promise of other fees, in exchange for Waltman, Hoopes, and Rafferty to use their positions as public officials to “fix” a traffic case before Waltman in Bucks County Magisterial District Court. In January 2017, Hoopes allegedly tried to influence a witness to falsely testify before the federal grand jury regarding the disposition of this $1,000 bribe.
In addition, from June 2015 to November 2016, Waltman, Hoopes, Rafferty, and Biedmeran allegedly conspired to launder funds represented to be proceeds from health care fraud, illegal drug trafficking, and bank fraud. From June 2016 to August 2016, Waltman, Hoopes, Rafferty, and Biederman allegedly laundered $400,000 in cash, represented to be proceeds from health care fraud and illegal drug trafficking, and took money laundering fees totaling $80,000 in cash.
Further, in June 2015, Biederman, who was then a PFCU employee, allegedly solicited and accepted a bribe of $1,600 in exchange for agreeing to influence PFCU’s approval of a loan.
If convicted, Waltman faces a maximum possible sentence of 335 years in prison, three years of supervised release, a $4.75 million fine, and a $1,900 special assessment.
If convicted, Hoopes faces a maximum possible sentence of 315 years in prison, three years of supervised release, a $4.5 million fine, and a $1,800 special assessment.
If convicted, Rafferty faces a maximum possible sentence of 180 years in prison, three years of supervised release, a $2.25 million fine, and a $900 special assessment.
If convicted, Biederman faces a maximum possible sentence of 110 years in prison, five years of supervised release, a $2 million fine, and a $500 special assessment.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Vineet Gauri.
[1] An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Active-Duty U.S. Navy Commander Sentenced for Conspiring with Foreign Defense Contractor to Defraud the U.S. NavyRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – December 1, 2017
SAN DIEGO – U.S. Navy commander Bobby Pitts was sentenced today to 18 months in prison, a $15,000 fine and $7,500 in restitution for conspiring to impede the Navy’s investigation of Singapore-based defense contractor Leonard Glenn Francis.
Pitts, 48, of Chesapeake, Va., pleaded guilty to one count of conspiracy to defraud the United States, admitting that he conspired to protect Francis, owner and chief executive of Glenn Defense Marine Asia (GDMA) from allegations of wrongdoing.
Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving “scores” of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and gifts – from cash, prostitutes and luxury travel to Cuban cigars, Kobe beef and Spanish suckling pigs.
In pronouncing sentence today, U.S. District Judge Janis L. Sammartino told the defendant that in committing his crime, Pitts “betrayed the Navy and betrayed the Country.”
According to admissions made as part of his plea agreement, from August 2009 to May 2011, Pitts served as the Officer in Charge of the U.S. Navy’s Fleet Industrial Supply Command (FISC) in Singapore. As part of his duties, Pitts was responsible for overseeing the legal and ethical execution of the U.S. Navy’s ship husbanding contracts in the Pacific, including those held by Francis.
In 2009 and 2010, Pitts learned that Naval Criminal Investigative Service and several civilian employees of the U.S. Navy were investigating whether Francis was over-billing the U.S. Navy on ship husbanding contracts. In fact, Pitts had access to internal U.S. Navy documents pertaining to investigative steps that the U.S. Navy was considering and admitted that he shared this information with Francis, with the intent to impede and obstruct the U.S. Navy’s oversight of its contracts with GDMA.
On Nov. 23, 2010, for example, Pitts forwarded to a representative of GDMA an internal U.S. Navy email discussing FISC’s intention to contact officials with the Royal Thai Navy to determine whether GDMA had been billing the U.S. Navy for force protection services in fact provided by the Thai government.
“Pitts deliberately and methodically undermined government operations and in doing so, diverted his allegiance from his country and colleagues to a foreign defense contractor, and for that, he is paying a high price,” said U.S. Attorney Adam Braverman.
So far, 19 of 28 defendants charged in the U.S. Navy bribery and fraud scandal have pleaded guilty.
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Fraud Section of the Justice Department’s Criminal Division.
DEFENDANT Case Number: 16-CR-1207
Commander Bobby Pitts Age 48 Chesapeake, Virginia
SUMMARY OF CHARGES
Conspiracy to Defraud the United States, in violation of 18 U.S.C. § 371
Maximum Penalty: Five years in prison, a $250,000 fine or twice the gross gain or loss from the offense, whichever is greater
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
4 December 2017
Wheeling man sentenced for cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – A Wheeling, West Virginia man was sentenced today to 32 months incarceration for cocaine distribution, United States Attorney Bill Powell announced.
Sylvester “Sly” Walker, age 24, pled guilty to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location” in August 2017. He admitted to distributing cocaine near Luau Manor in Ohio County on January 25, 2017.
Assistant U.S. Attorney Randolph J. Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Webster Man Arrested and Charged with Possession of Child PornographyRead the Press Release
BOSTON - William Shenette, 31, was arrested on Friday, Dec. 1, 2017, and charged in federal court in Worcester with possession of child pornography.
On Dec. 1, 2017, a search warrant was executed at Shenette’s residence in Webster where videos containing prepubescent children engaged in sexually explicit conduct, including oral and anal sex with adults, were discovered on a tablet that belonged to Shenette.
The charge provides for a sentence of no greater than 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Karin M. Bell of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Waterloo Man Sentenced to 41 Months in Federal Prison for Stealing a GunRead the Press Release
A man who stole a gun from a licensed Waterloo firearms dealer was sentenced on November 30, 2017, to more than three years in federal prison.
Sahjit Mcyle Philips, age 19, from Waterloo, Iowa, received the prison term after a June 1, 2017, guilty plea to theft of a firearm from a licensed firearms dealer.
In a plea agreement, Phillips admitted going to Levi Brothers Jewelers in Waterloo while the store was open. When an employee who was assisting him stepped away, Phillips stole a .45 caliber firearm. Phillips ran from the store with the gun. He then went to and entered an apartment without knowing who lived there. Phillips took a cell phone from the resident and hid the gun in a closet. Law enforcement arrested Phillips a short time later near the apartment and recovered the gun.
Phillips was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Phillips was sentenced to 41 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Phillips currently has charges pending in Black Hawk County for intimidation with a dangerous weapon, willful injury-causing bodily injury, and carrying weapons relating to an incident on March 7, 2017. In those charges, Phillips is alleged to have pulled a firearm from his waistband and fired multiple shots at another individual, hitting him in the buttocks. As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Federal Bureau of Investigation, Waterloo Police Department, Black Hawk County Sheriff’s Office, and ATF.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02001-01.
Follow us on Twitter @USAO_NDIA.
U.S. Attorney’s Office Reaches Agreement with the Michigan State Court Administrative Office and Michigan Supreme Court to Ensure Effective Communication in the Michigan CourtsRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached an agreement with the Michigan State Court Administrative Office and Michigan Supreme Court (Michigan Courts) to resolve several effective communication complaints made under the Americans with Disabilities Act (“ADA”) against various courts, Acting U.S. Attorney Daniel L. Lemisch announced today.
The complainants, who are Deaf, alleged that the courts failed to provide them with an American Sign Language (ASL) interpreter when they tried to access a variety of court services including meetings with Friend of the Court employees, video arraignments, appearing before a judge in a civil case, and observing a child’s court case. Without access to interpreters, the complainants were unable to effectively participate in or understand the court proceedings.
The ADA requires that public entities provide effective communication to all individuals with disabilities who seek to participate in or benefit from their services, programs or activities. “Effective communication” means that communication with persons who are deaf or hard of hearing should be as effective as communication with others. Public entities must provide auxiliary aids and services, including qualified and certified ASL interpreters, at no cost, and give primary consideration to the preferences of the individual with a disability when determining what aids and services to provide in order to achieve effective communication.
In a Letter of Resolution, the Michigan Courts agreed to ensure that there is an ADA plan in place at each court, and that each court will have a designated ADA coordinator. The courts will provide, at no charge, appropriate auxiliary aids and services necessary to afford people with disabilities an equal opportunity to participate in and enjoy the benefits of court services, activities and programs, and will not require individuals to bring someone with them to interpret or facilitate communication. They will prominently post signs informing people of the availability of interpreters and other auxiliary aids and services, and will provide training to judges and court personnel about their obligations under the ADA. In addition, some of the complainants will receive a modest amount of compensatory damages.
“Everyone, regardless of disability, has the right to equal access to our courts,” said Lemisch. “Whether you are meeting with court staff, watching a family member’s court case, or appearing before a judge, if you have a disability, the ADA requires that the court provide you with the tools to understand the proceedings and communicate effectively with court personnel. I applaud the Michigan Courts for taking steps to ensure that people who are Deaf, DeafBlind or Hard of Hearing will be able to fully access our courts and the services that they provide.”
Those interested in finding out more about this resolution or the obligations of public entities under the ADA may call the U.S. Attorney’s Office Civil Rights Hotline at 313-226-9151, or send an email to [email protected].
Information is also available at the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or at www.ada.gov.
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Tuba City Man Sentenced to Prison for Involuntary ManslaughterRead the Press Release
PHOENIX – Today, Brennan Lee Sumatzkuku, 23, of Tuba City, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 36 months in federal prison, followed by three years of supervised release. Sumatzkuku had previously pleaded guilty to one count of involuntary manslaughter.
On Jan. 22, 2017, Sumatzkuku, an enrolled member of the Hopi Nation, was driving a vehicle with two passengers on the Navajo Nation reservation. In dark and snowy conditions, Sumatzkuku, whose blood alcohol content was later determined to be .188, drove at a high rate of speed and lost control of the vehicle, causing all three occupants to be ejected. One victim, 29, an enrolled member of the Hopi Nation, was pronounced dead at the scene, and another victim, 20, also an enrolled member of the Hopi Nation, was seriously injured.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Criminal Investigations. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-1824-PCT-DLR
RELEASE NUMBER: 2017-119_ Sumatzkuku
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Trucker Sent to Prison for Trafficking 33 Kilograms of CocaineRead the Press Release
CORPUS CHRISTI, Texas – A 46-year-old Edinburg man has learned his fate following his involvement in a conspiracy to possess with the intent to distribute cocaine, announced Acting U.S. Attorney Abe Martinez. Hugo Morales pleaded guilty Aug. 3, 2017, admitting he conspired with others to distribute 33 kilograms of cocaine.
Today, Senior U.S. District Judge Janis Graham Jack handed Morales a 70-month sentence to be immediately followed by five years of supervised release.
On Feb. 11, 2017, authorities conducted a roadside inspection of the tractor-trailer Morales was driving. At that time, more than 33 kilograms of cocaine was found hidden inside tarps strapped on his flatbed trailer.
As part of his plea, Morales also agreed to the forfeiture of five vehicles including a Hummer H2, a Chevrolet Corvette, a Chevrolet Camaro and a Harley Davidson Motorcycle as well as cash and jewelry.
Morales was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigations with assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Texas Resident Pleads Guilty to Providing Material Support to ISISRead the Press Release
Asher Abid Khan, 23, of Spring, Texas, pleaded guilty today to providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Abe Martinez and Special Agent in Charge Perrye K. Turner of the FBI’s Houston field office made the announcement.
The investigation began in 2014 when Khan and his friend, who was living in South Texas, devised a plan to travel to Turkey and then to Syria for the purpose of fighting on behalf of ISIS. Khan had been living with a relative in Australia. Prior to leaving for Turkey from there, Khan told Mohamed Zuhbi, a Turkish-based foreign terrorist fighter facilitator, that he wanted to join ISIS.
Khan provided instructions to his friend on travel and how to reach him once Khan arrived in Turkey. During this part of the planning phase, it was Khan - not his friend - who was in touch with Zuhbi. On Feb. 24, 2014, Khan and his friend met in Istanbul, Turkey. At that time, Khan gave his South Texas friend money, knowing he intended to travel to Syria and join and fight with ISIS.
Khan then departed from the Istanbul Airport in Turkey and returned to the United States after his family tricked him into coming home to Houston because of an alleged hospitalization of his mother.
As soon as Khan returned to the U.S., he contacted Zuhbi with the purpose of introducing him to his friend so he could enter Syria and join ISIS as a fighter with Zuhbi’s help. Khan then provided to his friend a Turkish cell phone number for reaching Zuhbi. The following day, Khan’s friend sent an electronic message to Khan indicating he had “been delivered :),” by Zuhbi, but that he was not with ISIS yet. Over the next few months, the friend attended fighter training camps and stayed in touch with Zuhbi and Khan. During that time, Khan offered his friend money and instructed him to try to get to ISIS.
On Aug. 11, 2014, the friend finally made it to ISIS with Khan and Zuhbi’s assistance. After September 2014, he had ceased all forms of communications. On Dec. 25, 2014, the friend’s mother received an electronic message explaining that her son had died while fighting.
Zuhbi is still at large and is believed to be residing in either Turkey or Syria. There are pending criminal charges in the Southern District of Texas against Zubhi. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
U.S. District Judge Lynn N. Hughes accepted the guilty plea today and has set sentencing for March 5, 2018 at 1:30 p.m. At that time, Khan faces up to 15 years in federal prison and a maximum fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The FBI’s Joint Terrorism Task Force conducted the investigations. Assistant U.S. Attorneys Carolyn Ferko, Alamdar Hamdani and Steve Mellin of the Southern District of Texas are prosecuting the case with the assistance of the Counterterrorism Section of the Justice Department’s National Security Division.
Texas Resident Convicted of Providing Material Support to ISISRead the Press Release
HOUSTON – Asher Abid Khan, 23, of Spring, pleaded guilty today to providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General for National Security Dana J. Boente and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
“We aggressively investigate and prosecute persons who provide material support to terrorist organization like ISIS,” said Martinez. “Khan provided ISIS a battlefield soldier to further the terrorist organization’s violent agenda. Khan’s guilty plea is indicative of the priority this office has placed on those who would give aid and comfort to terrorists operating in the United States and abroad. ”
The investigation began in 2014 when Khan and his friend, who was living in South Texas, devised a plan to travel to Turkey and then to Syria for the purpose of fighting on behalf of ISIS. Khan had been living with a relative in Australia. Prior to leaving for Turkey from there, Khan told Mohamed Zuhbi, a Turkish-based foreign terrorist fighter facilitator, that he wanted to join ISIS.
Khan provided instructions to his friend on travel and how to reach him once Khan arrived in Turkey. During this part of the planning phase, it was Khan - not his friend - who was in touch with Zuhbi. On Feb. 24, 2014, Khan and his friend met in Istanbul, Turkey. At that time, Khan gave his South Texas friend money, knowing he intended to travel to Syria and join and fight with ISIS.
Khan then departed from the Istanbul Airport in Turkey and returned to the United States after his family tricked him into coming home to Houston because of an alleged hospitalization of his mother.
As soon as Khan returned to the U.S., he contacted Zuhbi with the purpose of introducing him to his friend so he could enter Syria and join ISIS as a fighter with Zuhbi’s help. Khan then provided to his friend a Turkish cell phone number for reaching Zuhbi. The following day, Khan’s friend sent an electronic message to Khan indicating he had “been delivered :),” by Zuhbi, but that he was not with ISIS yet. Over the next few months, the friend attended fighter training camps and stayed in touch with Zuhbi and Khan. During that time, Khan offered his friend money and instructed him to try to get to ISIS.
On Aug. 11, 2014, the friend finally made it to ISIS with Khan and Zuhbi’s assistance. After September 2014, he had ceased all forms of communications. On Dec. 25, 2014, the friend’s mother received an electronic message explaining that her son had died while fighting.
Zuhbi is still at large and is believed to be residing in either Turkey or Syria. There are pending criminal charges in the Southern District of Texas against Zubhi. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
U.S. District Judge Lynn N. Hughes accepted the guilty plea today and has sentencing for March 5, 2018, at 1:30pm. At that time, Khan faces up to 15 years in federal prison and a maximum fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The FBI’s Joint Terrorism Task Force conducted the investigations. Assistant U.S. Attorneys Carolyn Ferko, Alamdar Hamdani and Steve Mellin of the Southern District of Texas are prosecuting the case along with the Counterterrorism Section of the Justice Department’s National Security Division.
Suburban Man Convicted in Second Federal CaseRead the Press Release
HOUSTON – A 54-year-old Kingwood man has entered a guilty plea to failing to appear in federal court for his conviction related to a Houston-area mortgage fraud scheme, announced Acting U.S. Attorney Abe Martinez.
Oscar Cantalicio Ortiz was previously convicted of conspiring to commit bank, mail and wire fraud. He had been permitted to remain on bond pending his sentencing, but was ordered to wear a GPS monitoring device secured around his leg as a condition of his release. On April 21, 2017, the device was cut off and left on the side of the road in southwest Houston. His vehicle was later found abandoned in a parking lot in the same area of town.
On April 24, 2017, Ortiz was set to appear before U.S. District Judge Kenneth M. Hoyt for sentencing in the mortgage fraud scheme. He failed show for that hearing.
On Aug. 23, 2017, he turned himself in to the U.S. Embassy in Mexico City, Mexico. Ortiz told the FBI at the Embassy that he was a fugitive from the United States and had decided to flee because he wanted more time to work on a project. He was flown back to Houston the following day.
Upon his arrival, agents noted that Ortiz had changed his appearance by growing facial hair and dying it and his hair red. Ortiz admitted he had purchased a second car to replace the one he abandoned and drove across the border into Mexico where he stayed until his arrest.
While a fugitive, Judge Hoyt imposed a 262-month term of imprisonment for the conspiracy charge in absentia.
He is set for sentencing on the failure to appear charge Feb. 12, 2018. At that time, he faces another possible 10 years in prison. He will remain in prison pending that hearing.
The FBI conducted the investigation of both cases. Assistant U.S. Attorney Melissa Annis is prosecuting the cases.
Statement of U.S. Attorney Annette L. Hayes on Seattle Police Department Chief Kathleen O’TooleRead the Press Release
Kathleen O’Toole has been a true partner in progress on police reform and a leader in advancing innovative approaches to public safety in Seattle, and by her example, around the country. I am grateful for her professionalism, wisdom, and friendship.
Under her leadership, the Seattle Police Department transformed how it served the City of Seattle by implementing new policies, training and accountability around uses of force, crisis intervention, and biased policing. Chief O’Toole guided the department during this transformational period, set clear expectations and high standards for every officer, and built strong relationships with the many communities and neighborhoods that the Department serves. She also demonstrated clearly that civil rights reform goes hand-in-hand with increased public and officer safety.
The hallmark of reform is that it must be bigger than any one person or leader. As we made clear in our most recent filing with the Court, under Chief O’Toole’s leadership, we believe that SPD has come into compliance with the first phase of the consent decree and has the systems and structures in place to continue its reform efforts. I look forward to working with Interim Chief Carmen Best to continue pushing reform forward and keeping the people of Seattle safe.
Stamford Man Sentenced to More Than 5 Years in Prison for Selling Crack in Connecticut and Heroin in VermontRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that WAYNE ALEXANDER, also known as “Uncle Easy” and “Bones,” 52, of Stamford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 64 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine and heroin.
According to court documents and statements made in court, between February 2015 and April 2015, law enforcement officers made three controlled purchases of crack cocaine, totaling approximately 130 grams, from ALEXANDER.
ALEXANDER was arrested on a federal criminal complaint on May 11, 2015, and was released on bond. On April 4, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack cocaine”).
On May 11, 2016, a federal grand jury in Vermont returned an indictment charging ALEXANDER with one count of distributing heroin on April 2, 2016. The case was transferred to the District of Connecticut for further prosecution and, on April 18, 2017, ALEXANDER pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
ALEXANDER has been detained since May 11, 2016.
The Connecticut case was investigated by the FBI’s Bridgeport Safe Streets Task Force, Drug Enforcement Administration, Bridgeport Police Department and Stamford Police Department, and the Vermont case was investigated by the Vermont Drug Task Force.
This matter was prosecuted by Assistant U.S. Attorney Douglas P. Morabito of the District of Connecticut and Assistant U.S. Attorney Christina E. Nolan of the District of Vermont.
South Bend Man SentencedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Tyrone Miller, age 31, of South Bend, Indiana, was sentenced before South Bend District Court Judge Robert L. Miller, Jr. for possessing a firearm by a convicted felon.
Miller was sentenced to eighty-seven (87) months imprisonment followed by two (2) years of supervised release.
According to documents in this case, a jury convicted Miller of felon in possession of a firearm on July 18, 2017. During the early morning hours of February 11, 2017, two police officers were dispatched to the scene of a car crashed into a pole at an intersection in South Bend. Mr. Miller was in the driver’s seat, alone and apparently uninjured. At the accident scene, one of the police officers began a pat-down. Midway during the pat-down—and before the officer was able to pat down the front waist of Mr. Miller—Mr. Miller struggled and tried to pull away from the officer. With the help of the second officer, Mr. Miller was immobilized and placed in the back of a patrol vehicle, without his pat-down having been completed. Mr. Miller was then brought to the St. Joseph County Jail for booking. At the jail, when the officers opened the back door of the patrol vehicle in order to get Mr. Miller out of the vehicle, the officers found a handgun on the floor of the vehicle where Mr. Miller’s feet had been.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms and the South Bend Police Department. The case was handled by Assistant U.S. Attorney Luke Reilander.
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Shreveport man sentenced to 46 months in prison for stealing 44 firearmsRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Shreveport man was sentenced last week to 46 months in prison for stealing 44 firearms from a Princeton gun shop.
Ryan P. Hiroms, 26, of Shreveport, was sentenced Friday by U.S. District Judge Elizabeth E. Foote on one count of theft of a firearm from a federal firearms licensee. He was also sentenced to three years of supervised release and was ordered to pay $27,723.61 restitution. According to the August 7, 2017 guilty plea, law enforcement agents responded to a call on November 30, 2016 of a burglary at a gun shop in Princeton, La. Someone had broken into the building and stolen 44 firearms. Employees reported that two men had entered the business the day before and were looking at the firearms that were later stolen, and employees said the two men were also acting suspicious. A customer identified Hiroms as one of the two men who had entered the business. Agents also used video footage and fingerprints from one of the handguns Hiroms examined that day to identify him. Agents arrested Hiroms on December 2, 2016. They found a firearm in his vehicle that matched one that was stolen, and he was wearing attire similar to that seen in the business’s video footage. He later admitted to breaking into the gun shop and stealing the firearms.
The ATF needs help locating the remaining firearms stolen as well as other suspects in the case. If you have any information, call the ATF’s Shreveport Field Office at (318) 424-6850.
The ATF and the Bossier Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Schuele Boys Gang Member Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Demario James, 35, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine, was sentenced to time served (over 40 months) by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that between June 2013 and July 2014, James conspired with co-defendant Michael Robertson and other Schuele Boys associates and gang members to distribute cocaine in the City of Buffalo. The defendant purchased cocaine from Michael Robertson and then broke down the cocaine for distribution to customers.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana.
James is one of 28 Schuele Boys Gang members, associates and other individuals arrested in this case. To date, 27 of the defendants have been convicted.
Today’s sentencing the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen.Saipan Restaurant Distributes $40,000 in Back Pay to U.S. Workers Under Justice Department SettlementRead the Press Release
The Justice Department announced today that J.E.T. Holding Co. Inc. (JET) has paid $40,000 to nine U.S. citizens pursuant to a settlement with the department. The payments, which JET distributed last week, are part of a Jan. 17, 2017, settlement that resolved claims that JET discriminated against U.S. workers in favor of temporary foreign visa workers, in violation of the Immigration and Nationality Act (INA).
In its investigation leading up to the settlement, the department found that from approximately January to June 2016, JET, which operates a restaurant in Saipan, routinely refused to hire qualified U.S. citizens and other work-authorized individuals, including lawful permanent residents, for dishwasher positions because of their citizenship status. Instead, JET preferred to fill the positions with temporary foreign visa workers, according to the department’s investigation. Under the INA, employers cannot prefer to hire temporary foreign visa workers over available and qualified U.S. workers based on citizenship status. Individuals born in Saipan are U.S. citizens and its population includes work-authorized lawful permanent residents, asylees and refugees.
After the investigation was resolved through a settlement, the department’s Civil Rights Division and the United States Attorney Office for the District of Guam collaborated to identify individuals affected by the alleged discrimination. The department determined that nine U.S. citizens were eligible to receive back pay, and the payments JET distributed to them last week exhausted the $40,000 back pay fund established under the agreement.
“We are pleased that U.S. workers received back pay to compensate them for the discrimination they faced, and that JET has worked to improve its hiring practices,” said John M. Gore, Acting Assistant Attorney General of the Civil Rights Division. “The Justice Department is committed to holding employers accountable when they place U.S. workers in a second class status.”
The division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The law prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation; and intimidation.
In February 2017, IER launched its Protecting U.S. Workers Initiative, an initiative aimed at targeting, investigating, and bringing enforcement actions against companies that discriminate against U.S. workers in favor of foreign visa workers. IER filed the first suit as part of the Initiative in October against a Loveland, Colorado, company for allegedly discriminating against U.S. workers.
To learn more about the protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit IER’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral, should contact the worker hotline above for assistance.
Saipan Restaurant Distributes $40,000 in Back Pay to U.S. Workers Under Justice Department SettlementRead the Press Release
WASHINGTON – The Justice Department announced today that J.E.T. Holding Co. Inc. (JET) has paid $40,000 to nine U.S. citizens pursuant to a settlement with the department. The payments, which JET distributed last week, are part of a Jan. 17, 2017, settlement that resolved claims that JET discriminated against U.S. workers in favor of temporary foreign visa workers, in violation of the Immigration and Nationality Act (INA).
In its investigation leading up to the settlement, the department found that from approximately January to June 2016, JET, which operates a restaurant in Saipan, routinely refused to hire qualified U.S. citizens and other work-authorized individuals, including lawful permanent residents, for dishwasher positions because of their citizenship status. Instead, JET preferred to fill the positions with temporary foreign visa workers, according to the department’s investigation. Under the INA, employers cannot prefer to hire temporary foreign visa workers over available and qualified U.S. workers based on citizenship status. Individuals born in Saipan are U.S. citizens and its population includes work-authorized lawful permanent residents, asylees and refugees.
After the investigation was resolved through a settlement, the department’s Civil Rights Division and the United States Attorney Office for the District of Guam collaborated to identify individuals affected by the alleged discrimination. The department determined that nine U.S. citizens were eligible to receive back pay, and the payments JET distributed to them last week exhausted the $40,000 back pay fund established under the agreement.
“We are pleased that U.S. workers received back pay to compensate them for the discrimination they faced, and that JET has worked to improve its hiring practices,” said John M. Gore, Acting Assistant Attorney General of the Civil Rights Division. “The Justice Department is committed to holding employers accountable when they place U.S. workers in a second class status.”
The division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The law prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation; and intimidation.
In February 2017, IER launched its Protecting U.S. Workers Initiative, an initiative aimed at targeting, investigating, and bringing enforcement actions against companies that discriminate against U.S. workers in favor of foreign visa workers. IER filed the first suit as part of the Initiative in October against a Loveland, Colorado, company for allegedly discriminating against U.S. workers.
To learn more about the protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit IER’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral, should contact the worker hotline above for assistance.
Public Corruption Charges Brought Against Additional Defendants in Ongoing Investigation into Fraudulent California Commercial Driver’s LicensesRead the Press Release
SACRAMENTO, Calif. — Three indictments have been unsealed, charging several DMV employees and others for their roles in a conspiracy to sell California Class A commercial driver’s licenses (CDL) to unqualified drivers, U.S. Attorney Phillip A. Talbert announced. These indictments are related to three earlier indictments stemming from the same investigation.
U.S. v. Jagpal Singh, et al., 2:17-cr-210 MCE
On November 16, 2017, five Southern California residents were charged in a 43-count indictment. According to court documents, Jagpal “Paul” Singh, 59; Jagdish Singh, 55; Tajinder Singh, 34; and Parminder Singh, 27, allegedly paid bribes to DMV employees to access and alter records in the DMV’s database in Sacramento. Records were allegedly altered to show that applicants for CDLs had passed the required tests when, in truth, they had not done so, and in some cases had not even taken the tests. In so doing, this caused the DMV to issue permits and completed CDLs despite the applicants not having taken or passed those tests. Jagdish Singh and Tajinder Singh are also alleged to have conspired with co‑defendant Shawana Denise Harris, 47, who worked at the Rancho Cucamonga DMV Office, paying her to get commercial permits for applicants without them having to take or pass the written CDL test. On November 2, 2017, Kari Scattaglia and Lisa Terraciano pleaded guilty for their roles in the conspiracy. (case number 2:17-cr-187 GEB).
United States v. Mahboob, 2:17-cr-213 TLN
On November 16, 2017, Rahim Mahboob, 66, of Los Angeles, was charged in a 13-count indictment alleging that he conspired with Terraciano, paying her to alter DMV records to incorrectly indicate that applicants had passed written exams for CDLs when, in fact, they had not taken or passed those exams. These fraudulent entries in the DMV’s database caused the DMV to issue permits and ultimately CDLs to Mahboob’s clients.
United States v. Lima, et al., 2:17-cr-212 JAM
On November 16, 2017, two Stockton residents were charged in an 11-count indictment. According to court documents, Ruvila “Ruby” Lima, 49, and Poya “Sameer” Khanjan, 26, conspired with Juan Arturo Arroyo Gomez and Donald E. Freeman Jr. (charged in case number 2:17-cr-207 MCE) to acquire commercial driving permits for individuals who had not taken or passed the written exam. Freeman, a DMV employee in the Tracy DMV office, allegedly accessed the DMV database without authorization to alter DMV records to fraudulently show that the tests were passed. Freeman and Arroyo are scheduled to appear on December 13, 2017 for initial appearance and waiver of indictment, and to plead guilty to the information charging them with conspiracy to commit bribery, identity fraud, and unauthorized access to a computer, on December 14, 2017 at 10:00 a.m. before the Honorable Morrison C. England, Jr.
Additionally, on November 17, 2017, Aaron Gilliam, 50, of Los Angeles, pleaded guilty to conspiring to commit bribery, identity fraud, and unauthorized access of a computer (case number 2:17-cr-200 GEB). According to court documents, Gilliam was a DMV employee at the North Hollywood Office and accepted bribes in exchange for altering DMV records to provide permits for commercial driver’s licenses for applicants who had not taken or passed the necessary examinations.
The indictments are part of a series of ongoing investigations by the California Department of Motor Vehicles, Office of Internal Affairs, the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), and the Department of Transportation, Office of Inspector General. Assistant U.S. Attorneys Todd A. Pickles and Rosanne L. Rust are prosecuting the cases.
If convicted, the defendants each faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges as to the defendants who have not pleaded guilty are only allegations; these defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Owner of New York Tax Preparation Firm Pleads Guilty to Preparing Fraudulent Tax ReturnsRead the Press Release
A Brooklyn, New York, resident pleaded guilty today to aiding and assisting in the preparation of a fraudulent tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Bridget Rohde for the Eastern District of New York.
According to documents and information provided to the court, Maria Munoz, 45, owned and operated a Brooklyn-based tax preparation business called Munoz Multiservices Corporation. From 2010 through 2012, Munoz prepared fraudulent income tax returns for clients that included inflated or fictitious deductions for gifts to charity, unreimbursed employee expenses, personal property taxes and other expenses. Munoz agreed that she caused a tax loss of $136,789.
Sentencing is scheduled for April 26, 2018 before U.S. District Court Judge Kiyo A. Matsumoto. Munoz faces a statutory maximum sentence of three years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Rhode thanked special agents of the Internal Revenue Service Criminal Investigation, who conducted the investigation, and Assistant Chief Jorge Almonte and Trial Attorney Carl F. Brooker of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Owner of Michigan Home Health Agency Convicted in $1.6 Million Healthcare Fraud SchemeRead the Press Release
A federal jury found a Detroit home health agency owner guilty today for her role in a scheme involving approximately $1.6 million in fraudulent Medicare claims for home health services that were procured through the payment of kickbacks, and that were medically unnecessary and not provided.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Editha Manzano, 69, of Troy, Michigan, was convicted of one count of conspiracy to commit health care and wire fraud, one count of conspiracy to pay and receive kickbacks in connection with Medicare beneficiaries, and one count of health care fraud following a seven-day trial. Sentencing has been scheduled for April 19, 2018, before U.S. District Judge Gershwin Drain of the Eastern District of Michigan, who presided over the trial.
According to evidence presented at trial, from 2013 to 2016, Manzano and her co-conspirators engaged in a scheme to defraud Medicare of approximately $1.6 million in fraudulent claims for home health care services in connection with Anointed Care Services, a Detroit area home health care agency (Anointed). The evidence showed that Manzano paid illegal kickbacks for patients to sign up for home health care with Anointed. The evidence further showed that Manzano conspired with physicians to admit patients for home health care with Anointed when they did not qualify for such services. To make it appear that these patients did qualify, Manzano and her co-conspirators falsified medical records and signed false documents purporting to show that patients admitted to Anointed’s home health program satisfied Medicare’s requirements for admission, the evidence showed.
Five defendants were charged in this matter. Liberty Jaramillo, 67, of Troy, Michigan, pleaded guilty in June 2017 and is awaiting sentencing. Dr. Roberto Quizon, 71, of Bloomfield Hills, Michigan, pleaded guilty in June of 2017 and is awaiting sentencing. In addition, Dr. Victoria Gallardo-Navarra, 74, of Bloomfield Hills, Michigan was acquitted after trial and Juan Yrorita, RN, 63, of Sterling Heights, Michigan, pleaded guilty during trial and is awaiting sentencing.
This case was investigated by the Office of Inspector General of the U.S. Department of Health and Human Services and the FBI. Trial Attorneys Jacob Foster and Rebecca Szucs of the Criminal Division’s Fraud Section 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.
No. 3 Defendant in RICO Indictment Targeting Northeast L.A. Gang Coalition Overseen by Mexican Mafia Admits Guilt to Federal ChargesRead the Press Release
LOS ANGELES – A Northeast Los Angeles gang member who was one of the top figures in a conspiracy that united three rival gangs under the authority of a Mexican Mafia member pleaded guilty today to federal charges and admitted being an active narcotics trafficker who worked to further the goals of the criminal enterprise.
Jonathan Zepeda, 28, a resident of Elysian Valley and a longtime member of the Frogtown gang, admitted in court today that he distributed methamphetamine and collected “taxes” from other narcotics dealers who were allowed to sell drugs in areas controlled by the coalition of three gangs.
Jonathan Zepeda pleaded guilty to conspiring to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act, conspiracy to traffic methamphetamine, carrying a firearm in relation to a drug-trafficking crime, and being a felon in possession of firearms and ammunition.
As a result of today’s guilty pleas, Jonathan Zepeda will face a mandatory minimum sentence of 15 years in federal prison – and a potential sentence of life without parole – when he is sentenced by United States District Judge Philip S. Gutierrez on March 5.
Jonathan Zepeda’s brother – Santos Zepeda, a senior member of the Frogtown gang who helped manage the street gang coalition – pleaded guilty in August to conspiring to violate RICO and conspiring to traffic methamphetamine.
The Zepedas were among 22 defendants named in a 2015 federal racketeering indictment that outlined how Mexican Mafia member Arnold Gonzales ordered the unification of three street gangs that were traditional rivals. The “peace treaty” imposed by Gonzales in 2010 brought together the Frogtown, Toonerville and Rascals gangs, which worked together to control the narcotics trade and other illegal activities in an area that ran along the Los Angeles River from Elysian Park nearly to Burbank.
Because he was incarcerated in Pelican Bay State Prison after being convicted of murder, Gonzales appointed another Frogtown gang member, Jorge Grey, to be his emissary on the streets, according to the RICO indictment. Santos Zepeda served as Grey’s top lieutenant, provided narcotics to the racketeering enterprise, and coordinated the collection of “taxes” imposed on street-level drug dealers.
After Gonzales took control of the three gangs, he exercised his authority through Grey and criminal associates that included Santos Zepeda, according to the indictment. The organization generated revenue through extortion, specifically the imposition of taxes on the gangs and others who distributed narcotics in the territory controlled by the criminal enterprise. Members of the racketeering conspiracy allegedly implemented Gonzales’ orders, imposed discipline on those who attempted to violate the orders or contest the power of the enterprise, and collected firearms that were used to enforce their authority. When he pleaded guilty today, Jonathan Zepeda admitted possessing a number of firearms, including a machine gun.
The RICO indictment details numerous transactions involving narcotics and firearms, and also contains charges related to two shootings allegedly committed against individuals who defied the rules imposed by Gonzales and his associates.
The indictment targeting the Arnold Gonzales Organization is the result of Operation “Gig ‘em,” an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Violent Crime Impact Team; the California Department of Corrections and Rehabilitation, Office of Correctional Safety, Special Service Unit; the Glendale Police Department; and the Los Angeles Police Department.
Out of the 22 defendants named in the indictment, 13 have pleaded guilty. The remaining nine defendants, including Grey, are scheduled to go on trial on March 6.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
This case is being prosecuted by Assistant United States Attorneys Carol Alexis Chen and Alexander B. Schwab of the Organized Crime Drug Enforcement Task Force.
Nine More Individuals Sentenced in Multi-State Methamphetamine Trafficking ConspiracyRead the Press Release
Nine more individuals have been sentenced to federal prison for their role in a multi-state methamphetamine trafficking conspiracy, including seven from Middle Tennessee and two from California, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
During the past week, the following individuals were sentenced by Chief U.S. District Court Judge Waverly D. Crenshaw, Jr:
- Sabrina Boblett, 49, of Castalian Springs, Tenn., was sentenced to 84 months in prison;
- Frank Bishop, 41, of Nashville, Tenn., was sentenced to 100 months in prison;
- Jason Johnston, 49, of Lebanon, Tenn., was sentenced to 84 months in prison;
- Gary Lester, 42, of Lebanon, Tenn., was sentenced to 108 months in prison;
- George Marsh, 52, of Lebanon, Tenn. was sentenced to 106 months in prison;
- Brenda McGinnis, 49, of Bakersfield, Calif., was sentenced to 150 months in prison;
- Herbert McGinnis, 49, of Bakersfield, Calif., was sentenced to 150 months in prison;
- Matthew Peeden, 30, of Lebanon, Tenn., was sentenced to 120 months in prison;
- Robert Pelletier, 34, of Lebanon, Tenn., was sentenced to 120 months in prison.
Brian Randall, 51, of Castalian Springs, Tenn., was previously sentenced in February 2017 to 24 years in prison.
According to court documents, between February 2015 and July 2016, Herbert and Brenda McGinnis shipped numerous kilograms of methamphetamine from California to the home of Jason Johnston in Lebanon, Tenn., and to Brian Randall’s home in Castalian Springs, Tenn., through FedEx and the U.S. Postal Service. Randall then mailed cash payments back to California and sold the methamphetamine to mid-level and street-level dealers in middle Tennessee for resale. During this investigation, agents seized over $60,000 in cash, numerous firearms, seven cars, two boats and approximately 5 kilograms of methamphetamine from members of the conspiracy.
This case was investigated by the Federal Bureau of Investigation; the United States Postal Inspection Service; the Tennessee Bureau of Investigation; the Lebanon Police Department; the Metro-Nashville Police Department; and the 15th Judicial District Drug Task Force. The case was prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah.
New Haven Man Admits to Role in Armed Robbery of Hamden Video Game StoreRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RASHON GRAY, also known as “Loke,” 24, of New Haven, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to a federal robbery charge stemming from the armed robbery of a Hamden store in April 2016.
According to court documents and statements made in court, at approximately 4:22 p.m. on April 27, 2016, two men and two women, who had their head and faces partially concealed, entered the Game X Change in Hamden. One of the men pulled out a gun and ordered the store’s three employees to get down on the ground. The man with the gun put his foot on an employee’s back and pressed the gun against the employee’s head and neck, threatening to kill the employee if he did not give him money and the keys to the display case. The employee complied and the four suspects took several items, including cell phones, an iPad, an iPod, “Beats” headphones, and a cash box that contained $830. The four ran out of the store to a waiting car.
Investigators subsequently identified GRAY as the individual who brandished the firearm and threatened the store employee.
GRAY was on state probation at the time of the offense. On May 6, 2016, police and probation officers found him in possession of a cell phone that had been taken during the robbery and his probation was revoked.
GRAY has been detained in federal custody since his arrest on July 21, 2017.
GRAY pleaded guilty to one count of Hobbs Act Robbery, an offense that carries a maximum term of imprisonment of 20 years. Judge Arterton scheduled sentencing for February 26, 2018.
Four other individuals have been charged and convicted as a result of this investigation.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hamden Police Department, with the assistance of the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Mexican National Sentenced for Possession with Intent to Distribute MarijuanaRead the Press Release
CORPUS CHRISTI, Texas – A 30-year-old citizen and national of Mexico has been ordered to federal prison for Marijuana trafficking, announced Acting U.S. Attorney Abe Martinez. Ismael Padron-Garcia pleaded guilty Aug. 3, 2017.
Today, U.S. District Judge Janis Graham Jack sentenced Padron to a total of 24 months imprisonment. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
On May 15, 2017, law enforcement learned of suspected illegal aliens on a train stopped approximately two miles north of the Refugio county line on Highway 77. Authorities responded to the scene and witnessed Padron-Garcia jump off of a gondola car. He was apprehended shortly thereafter in a nearby cornfield.
Inside of the train, they discovered several bundles later confirmed to contain marijuana, totaling 205.66 kilograms. The investigation later linked Padron to the bundles.
Padron-Garcia has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol, Drug Enforcement Administration, the Union Pacific Railroad Police and the Refugio County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Amanda L. Gould is prosecuting the case.
Mexican National Pleads Guilty to Importing MethRead the Press Release
LAREDO, Texas – A Mexican man has pleaded guilty to a conspiracy charge for his role in importing methamphetamine into the United States, announced Acting U.S. Attorney Abe Martinez.
On Oct. 8, 2017, Omar Martinez-Cervantes, 34, arrived at the Lincoln Juarez Bridge port of entry in Laredo driving a Chevrolet Cruze. At that time, he claimed to be driving to Houston to visit his family. However, agents soon discovered 20.48 kilograms of methamphetamine within the rocker panels of his vehicle. He initially claimed to have no knowledge of the drugs, however he later stated to agents that he thought he knew who may have put the drugs in the car.
At today’s hearing, he admitted he knowingly imported the methamphetamine into the United States.
Sentencing will be set at a later date before U.S. District Judge Diana Saldana. At that time, Hernandez faces a mandatory minimum of 10 years in federal prison and a possible $10 million fine. He will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.
Mexican National Pleads Guilty in Deadly Transporting CaseRead the Press Release
LAREDO, Texas – A Mexican man has pleaded guilty to a conspiracy charge for his role in an alien transporting event which resulted in the deaths in three persons, announced Acting U.S. Attorney Abe Martinez.
Omar Gonzalez-Herrera, 25, of Nuevo Laredo, Mexico, admitted during this re-arraignment today that he was hoping to be paid $1,500 in exchange for guiding a group of 14 persons across the Rio Grande River and into the United States.
Gonzalez-Herrera was originally arrested Aug. 2, 2017, upon the filing of a criminal complaint. On that date, Border Patrol (BP) agents in Laredo encountered footprints near the riverbanks of the Rio Grande River. After following the foot signs, agents encountered a group of 14 people who were all undocumented aliens.
The investigation led to the discovery that three people were swept away by the river current and ultimately died. One of the victims was a five-year-old boy.
Sentencing will be set at a later date before U.S. District Judge Diana Saldana. At that time, Gonzalez-Herrera faces up to life in federal prison and a possible $250,000 fine. He will remain in custody pending sentencing.
BP and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Christopher A. dos Santos is prosecuting the case.
Mexican Citizen Sentenced to 66 Months in Federal Prison for Entering the U.S. After Previous RemovalRead the Press Release
DALLAS — Ignacio Arellano-Banuelos, 36, a citizen of Mexico, appeared this morning before U.S. District Judge David C. Godbey and was sentenced to 66 months in federal prison for reentering the United States illegally, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
Arellano-Banuelos was convicted in April 2017, following a two-day trial, of one count of illegal reentry following deportation. He has been in custody since his arrest in June 2016 and will be deported after serving his sentence.
According to evidence presented at trial, on May 8, 2015 Arellano-Banuelos was found in the United States after having been deported and removed on September 10, 2009, without receiving consent from the United States Attorney General or the Secretary of the Department of Homeland Security to reapply for admission since the time of the previous deportation and removal.
U.S. Immigrations and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO) investigated the case. Assistant U.S. Attorney Shane Read and Special Assistant U.S. Attorney Lynn Javier prosecuted.
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Media AdvisoryRead the Press Release
There will be an Investiture Ceremony for United States Attorney Peter E. Deegan, Jr. on Friday, December 8, 2017, at 3:00 p.m. The ceremony will be held in Courtroom 1 of the federal courthouse located at 111 Seventh Avenue SE, Cedar Rapids, Iowa.
Credentialed members of the press are invited to use camera equipment during the ceremony. Use of camera equipment is otherwise prohibited in the federal courthouse.
Follow us on Twitter @USAO_NDIA.
Massachusetts Man Sentenced to 12 Years in Prison for Drug TraffickingRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that, Rafael Delacruz, a/k/a “Simba,” 55, previously of Lawrence, Massachusetts, was sentenced on Friday to serve twelve years in federal prison for selling heroin and fentanyl in southern New Hampshire.
According to court documents and statements made in court, Delacruz sold heroin and fentanyl in hand-to-hand exchanges with cooperating individuals inside a retail store in Plaistow, New Hampshire on July 8, October 20, and November 19, 2015. Delacruz also admitted to selling fentanyl to a cooperating individual on June 22, 2016, inside a retail store in Epping, New Hampshire. Each of the transactions was surveilled and recorded by law enforcement officers and, in at least one instance, on a store’s security surveillance video.
Delacruz pleaded guilty on August 18, 2017, to three counts of distributing a controlled substance. After his release from prison, Delacruz will be required to serve a six-year term of supervised release.
“Those who come to New Hampshire to distribute deadly drugs will be identified and prosecuted,” said Acting U.S. Attorney Farley. “Federal, state, and local law enforcement officers are working hard each day to stop the flow of fentanyl, heroin, and other drugs from coming into the Granite State. I salute the teamwork of the officers who assisted in this investigation. Thanks to their efforts, this drug trafficker will no longer be damaging our community.”
“Opioid abuse is at epidemic levels across New England and those suffering from opioid addiction need access to treatment and recovery,” said DEA Special Agent in Charge Michael J. Ferguson. “But those responsible for distributing lethal drugs like heroin and fentanyl to the citizens of New Hampshire need to be held accountable for their actions. DEA is committed to aggressively pursuing Drug Trafficking Organizations or individuals who are coming from out of state to distribute these poisons in order to profit and destroy people’s lives. In response to the ongoing opioid epidemic DEA and its local, state and federal partners are committed to bringing to justice anyone who distributes these drugs.”
This matter was investigated by the Portsmouth (N.H.) Tactical Diversion Squad of the U.S. Drug Enforcement Administration and the Berwick (Maine) Police Department with the help of the York (Maine) and Ogunquit (Maine) police departments. The case was prosecuted by Assistant U.S. Attorney Bill Morse.
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