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4 December 2017
Marijuana Grower / Distributor Sentenced to over 12 Years in Federal PrisonRead the Press Release
MARQUETTE, MICHIGAN —Spencer Troy Ward, age 56, formerly of Bruce Crossing, Michigan, was sentenced to 151 months (12 years, 7 months) in prison for his involvement in a marijuana production and distribution conspiracy that Ward led in Ontonagon, Iron and Marquette Counties in the Upper Peninsula of Michigan, announced U.S. Attorney Andrew Birge.
U.S. District Judge Paul Maloney also ordered Ward to pay the government $475,254.30, which constituted the gross proceeds of his illegal sales of marijuana. In addition, the Judge ordered the forfeiture of Ward’s 80-acre farm, which Ward used to manufacture marijuana.
Ward came to the attention of a Special Agent from the Bureau of Indian Affairs (BIA) and detectives from the Upper Peninsula Substance Enforcement Team (UPSET) in 2014, after law enforcement officers from the Lac Vieux Desert (LVD) reservation near Watersmeet, MI reported that marijuana produced and sold by Ward was making its way onto the LVD reservation.
Investigators from BIA and UPSET discovered that Ward and his associates were growing marijuana at Ward’s farm and operating marijuana stores in Watersmeet, Iron River and Marquette. Ward also had plans to open another marijuana store in Houghton. BIA and UPSET executed search warrants at Ward’s farm and the stores in February 2016, and found a large-scale, sophisticated grow operation that contained 186 marijuana plants in various stages of growth, and more than 100 pounds of processed marijuana.
Luzerne County Man Sentenced to Five Years in Prison for Possession of Firearms in Furtherance of Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dennis Couvertier, age 45, of Luzerne Borough, Pennsylvania, was sentenced on December 1, 2017, by U.S. District Court Judge Malachy E. Mannion to serve five years in prison for possession of firearms in furtherance of drug trafficking activity.
According to United States Attorney David J. Freed, Couvertier previously entered a guilty plea to the charge before Judge Mannion in May 2017. The charge stems from an incident in June 2015, in which investigators arrested Couvertier after he made a sale of cocaine to another individual. Investigators then served a search warrant at Couvertier’s residence in Luzerne Borough and seized a .45 caliber semi-automatic Taurus pistol, a 9mm Smith and Wesson semi-automatic pistol, 43 rounds of ammunition, $2,916 in United States Currency, drug paraphernalia and drug packaging materials.
In addition to the sentence of imprisonment, Judge Mannion ordered that Couvertier be supervised by a probation officer for three years after his release from prison.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms and the Kingston Police Department. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Last of 13 Pleads Guilty to Alien SmugglingRead the Press Release
LAREDO, Texas – A 26-year-old El Cenizo man has entered a guilty plea for his role in a conspiracy to smuggle undocumented aliens, announced Acting U.S. Attorney Abe Martinez. Jose Francisco Morales Jr. is the last of 13 to be convicted in the conspiracy in which illegal aliens were smuggled past Border Patrol checkpoints between September 2015 and June 2017.
Previously pleading guilty were the leaders of the organization - Jose Andres Gongora Jr., 34, Sandra Nelly Chapa-Gongora, 33, and Carlos Enrique Reyna-Garcia, 29, all of Laredo.
Other members of the organization acted as scouts, transporters and stash house operators and had also previously pleaded guilty. Those included Jose Andres Alberto Gongora Sr., 46, Maria De Lourdes Gongora, 36, Mario Adalberto Ramirez, 34, Juan Antonio Luna, 47, all of El Cenizo; Jose Garcia III, 36, Abraham Garza, 24, and Guillermo Valdovinos-Rios, 55, all of Laredo; Luis Rodriguez Jr., 19, of Dallas; and Joseph Graves, 25, of Savannah, Georgia.
Members of the smuggling organization would drop undocumented aliens off in the brush and then guide them around Border Patrol checkpoints. They would then pick up the aliens once they passed the checkpoints and transport them further north.
“The dismantlement of the organization resulted from a joint investigation between the Joint Task Force – West (JTF-W) South Texas Campaign Joint Targeting Team, U.S. Marshals Service and state and local law enforcement partners,” said JTF-W STC Chief of Staff Robert Duff. “Enhanced collaborations have reinforced our commitment to pursue dangerous criminal organizations.”
U.S. Magistrate Judge Diana Song Quiroga accepted the plea today. Sentencing will be set for a later date before U.S. District Judge Marina Garcia Marmolejo. At that times, each defendant faces up to 10 years in federal prison and a possible $250,000 maximum.
Border Patrol and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney (AUSA) Alfredo De La Rosa and Special AUSA Andrew Hunt are prosecuting the case.
LaSalle County Physician Guilty of Illegally Dispensing Prescription MedicationsRead the Press Release
CHICAGO — A LaSalle County physician admitted in federal court today that he illegally dispensed prescription medications, including opioids, to patients in exchange for cash or sex.
In the summer of 2013 CONSTANTINO PERALES, M.D., illegally prescribed Oxycodone and Xanax to a co-defendant, ANDREW STRANDELL, knowing that Strandell would sell the pills on the black market, according to Perales’ plea agreement. Strandell would then pay Perales approximately $15-20 per pill for some of the pills that Strandell was able to sell, the plea agreement states.
Perales also admitted in the plea agreement that from 2011 to 2013 he illegally dispensed opioids and other controlled substances to three opioid-dependent patients in exchange for sex. Perales required the individuals to have sex with him in order to continue receiving the medications, the plea agreement states. Perales knew these patients were addicted to the pills, yet he dispensed the medications without performing a medical examination or ordering any diagnostic tests to manage their conditions, the plea agreement states.
Perales, 66, of Peru, Ill., pleaded guilty to conspiracy to possess a controlled substance with the intent to distribute. The conviction is punishable by a maximum sentence of 20 years in prison and a maximum fine of $1 million. U.S. District Judge Amy J. St. Eve set sentencing for March 22, 2018, at 10:15 a.m.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration. Substantial assistance was provided by the Peru, Ill., Police Department, and the LaSalle County State’s Attorney’s Office.
Perales’ Illinois medical license was suspended and he surrendered his DEA Registration Certificate after federal and local authorities executed a search warrant at his office in Peru, Ill., in August 2013.
Strandell, 36, of Sandwich, Ill., pleaded guilty earlier this year to the same conspiracy charge as Perales. The Court has not yet scheduled Strandell’s sentencing hearing.
The government is represented by Assistant U.S. Attorneys Katherine Sawyer and Kathryn Malizia.
Jefferson County woman sentenced for filing a false tax returnRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Ranson, West Virginia woman was sentenced today to five years probation and ordered to pay restitution in the amount of $11,963 for filing a false tax return, First Assistant United States Attorney Betsy Steinfeld Jividen announced.
Christina Jacobs, age 42, pled guilty to one count of “Filing a False Tax Return” in September 2017. Jacobs admitted to filing an Income Tax Return for her and her husband in 2012, willfully understating her income from 9 West Hair Studio by approximately $32,030.70, resulting in an unpaid tax due.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The Internal Revenue Service investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man sentenced for illegal firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Charles Town, West Virginia man was sentenced today to 12 months and one day incarceration for unlawful possession of a firearm, United States Attorney Bill Powell announced.
Darnell Antonio Gardner, age 38, pled guilty to one count of “Unlawful Possession of a Firearm” in August 2017. Gardner, having previously been convicted of a felony in Prince George’s County, Maryland, had a .40 caliber pistol in Jefferson County in June 2016.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Jefferson County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Harper’s Ferry, West Virginia man was sentenced today to 46 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Joshua Craig Grove, age 37, pled guilty to one count of “False Statement During the Purchase of a Firearm” in September 2017. The crime occurred on September 11, 2015 in Jefferson County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jacksonville Man Charged with Illegal Possession of A SilencerRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the arrest and filing of a criminal complaint charging Bernandino Gawala Bolatete (69, Jacksonville) with knowingly receiving and possessing a silencer not registered to him in the National Firearms Registration and Transfer Record. If convicted, he faces a maximum penalty of 10 years in federal prison.
According to the
criminal complaint , on November 27, 2017, Bolatete asked for assistance in purchasing a firearm silencer from an undercover detective from the Jacksonville Sheriff’s Office. Bolatete specified that, to avoid government scrutiny, he did not want any paperwork associated with the sale. On December 1, 2017, Bolatete took possession of a silencer after the undercover detective sold it to him for $100 and he was subsequently arrested.A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Florida Department of Law Enforcement. Substantial assistance was provided by the Office of the State Attorney for the Fourth Judicial Circuit. It will be prosecuted by Assistant United States Attorney Michael J. Coolican and Trial Attorney Maura White of the Civil Rights Division of the Department of Justice.
Illinois Man Sentenced to 46 MonthsRead the Press Release
HAMMOND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Arthur Lee Smith Jr., age 60, of Chicago, Illinois, was sentenced before Hammond Senior District Court Judge James T. Moody for filing false claims.
Smith was sentenced to forty-six (46) months imprisonment followed by two (2) years of supervised release. Smith will also have to pay restitution in the amount of $313,871.
According to documents in this case, the defendant pleaded guilty to filing fraudulent tax returns with the Internal Revenue Service on behalf of individuals who paid him to file their returns. Smith held himself out as a tax preparer, using the names “King Solomon” and “Buddy” in his capacity as a tax preparer. When preparing tax returns for clients, Smith sometimes fraudulently reported an overinflated salary and federal income tax withheld for his clients, and other times fraudulently reported unearned wages, unpaid federal income tax withheld, and/or false dependents. These fraudulent filings led to fraudulent refunds being issued to Smith’s clients.
This case was investigated by the Internal Revenue Service, Criminal Investigative Division. The case was handled by Assistant U.S. Attorney Maria Lerner.
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Georgia Man Sentenced in Connection to Fraud SchemeRead 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 Wilfredo Sanio, 53, of Georgia, who was convicted of misprision of a felony, was sentenced to two years probation and ordered to pay restitution totaling $147,004 by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that between May 2010 and May 2012, the defendant concealed the fraudulent activities of co-defendants Ann Nichols and Donnie Heilig. Heilig and Nichols, both of whom resided in the state of Oklahoma, utilized a business entity known as CED Computer Services (CED) fraudulently to obtain loans for clients in the form of equipment “leases.” Wilfredo Sanio operated a business in Georgia known as SCF Funding, which acted as a broker and brought clients to CED Computer Services.
Sanio knew that Heilig and Nichols falsely advised lease finance companies that CED was selling new equipment to clients and prepared fraudulent invoices for new equipment when, in fact, no equipment or inferior equipment was actually being provided. Upon receipt of the funding from the finance companies, defendant Nichols gave a commission to Heilig, herself, and Sanio, from the lease proceeds and sent the majority of the remaining proceeds to the client.
Ann Nichols and Donnie Heilig have been convicted of wire fraud. Helig was sentenced to eight months home confinement and Nichols is awaiting sentencing.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Georgia Man Indicted on Federal Charges, Accused of Using Forged Deeds to Steal HomesRead the Press Release
WASHINGTON – Robert McCloud, 37, most recently of Augusta, Ga., has been indicted for allegedly using forged deeds and fake driver’s licenses to defraud homeowners, buyers, and others in a real estate scam, announced U.S. Attorney Jessie K. Liu and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
McCloud was indicted earlier this year on federal offenses of conspiracy, wire fraud, and mail fraud, and a District of Columbia offense of uttering a forged instrument. The indictment also includes a forfeiture allegation seeking all proceeds that can be traced to the fraud scheme. He pled not guilty to the charges at his first appearance this afternoon in the U.S. District Court for the District of Columbia. He was ordered held pending a hearing set for Dec. 5, 2017.
According to the indictment, McCloud and other conspirators identified vacant or seemingly abandoned residential properties in the District of Columbia, and then prepared and filed forged deeds with the District of Columbia’s Recorder of Deeds transferring the properties into fictitious names. Next, they agreed to sell these properties to legitimate purchasers and arranged with unsuspecting title and escrow companies to finalize the sale and transfer ownership. When the conspirators were successful in finalizing the transactions and closing on the real estate sales, they shared the fraudulently-obtained sales proceeds amongst themselves.
The indictment lists two properties used in the scheme. According to the indictment, in April 2015, McCloud filed a forged Intra-Family deed with the District of Columbia’s Recorder of Deeds purporting to show that a home in the unit block of K Street NW was transferred from the true owners to a fictitious person. The deed contained the forged signatures of both owners. McCloud then allegedly appeared at the title and escrow company pretending to be owner in order to close the transaction, presenting a California driver’s license with his photograph but in the name of the fictitious person, signing the settlement documents and selling the property. The title and escrow company sent by wire transfer $195,527 to a bank account opened in the name of the fictitious person.
Likewise, according to the indictment, in May 2015, a conspirator arranged for a forged deed with respect to another home, in the 6400 block of 16th Street NW, to be filed with the Recorder of Deeds. In June 2015, McCloud allegedly appeared at the title and escrow company pretending to be that owner and using another fake California driver’s license with his photograph. He again signed the settlement documents in the fictitious name, the indictment alleges. The title and escrow company sent by wire transfer $384,955 to a bank account opened in the name of the fictitious person.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Liu and Assistant Director in Charge Vale commended the work performed by those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD). They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Stephanie Miller, former Paralegal Specialist Christopher Toms, and Paralegal Specialist Aisha Keys. Finally, they commended the work of Assistant U.S. Attorney Virginia Cheatham who is prosecuting the case.
Geauga County man guilty of possessing videos of children being raped and sexually assaultedRead the Press Release
A Geauga County man pleaded guilty to two counts related to possessing videos of children being raped and sexually assaulted, U.S. Attorney Justin E. Herdman said.
John S. Mobasseri, 39, of Novelty, is scheduled to be sentenced on March 19. He pleaded guilty to one count of distribution of images of minors engaged in sexually explicit conduct and one count of possession of child pornography.
Mobasseri earlier this year had two USB storage devices, 14 computer disks and a computer that contained images of real minors engaged in sexually explicit conduct. Mobasseri received and distributed images of minors engaged in sexually explicit conduct between 2009 and 2017, according to court documents.
The files include titles such as “10Yo Preteen Raped (Incest).mpeg” and images such as children being blindfolded and sexually assaulted, as well as children being bound and masked while being sexually assaulted, according to court documents.
This case is being prosecuted by Assistant U.S Attorney Michael A. Sullivan following an investigation by the Department of Homeland Security – Homeland Security Investigations and the Ohio Internet Crimes Against Children Task Force.
Fresno Woman Pleads Guilty to Mail Fraud and Identity Theft ChargesRead the Press Release
FRESNO, Calif. — Marci Jessie Ramirez, 46, of Fresno, pleaded guilty today to mail fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between July 2013 and October 2015, Ramirez misappropriated other peoples’ personal identifying information, which she acquired in some cases from client intake forms she accessed through her former employer, and used that information to fraudulently open bank accounts at federally insured financial institutions. Ramirez obtained and deposited counterfeit or altered checks into these bank accounts and ultimately withdrew cash or used funds from the deposits for personal purchases. Ramirez also illicitly used other peoples’ credit card information to purchase items for her personal benefit. For instance, according to Ramirez’s plea agreement, she purchased a $5,000 duo reverse transfer printer using one of her victim’s credit card account information.
This case is the product of an investigation by the Federal Bureau of Investigation and the Clovis Police Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Ramirez is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on March 5, 2018. Ramirez faces a maximum statutory penalty of 20 years in prison for mail fraud and an additional mandatory two-year term in prison for aggravated identity theft, and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Winnebago Tribal Chairman Sentenced for Theft from an Indian Gaming EstablishmentRead the Press Release
Acting United States Attorney Robert C. Stuart announced today that on December 4, 2017, Chief United States District Court Judge Laurie Smith Camp sentenced John Blackhawk, age 63, of Winnebago, Nebraska for his conviction for theft from an Indian gaming establishment. Blackhawk was sentenced to five years of probation and 150 hours of community service. He was further ordered to pay restitution in the amount of $36,000.
Blackhawk was a member of the tribal council of the Winnebago Tribe of Nebraska and served in an officer capacity as the council’s Chairman. Beginning in 2013 and continuing through September of 2014, Blackhawk began taking unauthorized disbursements from the WinnaVegas Casino and Resort in the total amount of $36,000. These disbursements were in the form of gift certificates which he did not pay for and deposits to a re-loadable debit card. The disbursements were in addition to the salary Blackhawk received from the Winnebago Tribe as a tribal council member. However, the disbursements were not paid through the payroll department of the Winnebago Tribe and were never authorized at a regular or special meeting of the tribal council. Further, the disbursements were concealed from the Winnebago Gaming Commission which oversaw the operations of the casino and was required to approve financial transactions of the casino.
This case was investigated by the Federal Bureau of Investigation.
Former U.S. Congresswoman Corrine Brown and Two Others Sentenced to Prison for Fraud Scheme Involving Bogus Non-Profit Scholarship CharityRead the Press Release
Former U.S. Congresswoman Corrine Brown was sentenced to five years in prison today in federal court in Jacksonville, Florida for her role in a conspiracy and fraud scheme involving a sham scholarship charity.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida, Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville, Florida Division and Chief Don Fort of the Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
“Corrine Brown abused her position as a Member of Congress by defrauding charitable donors who wanted to help underprivileged young men and women receive a quality education,” said Acting Assistant Attorney General Cronan. “Instead of helping those deserving students, Brown used the contributions she solicited to finance a personal slush fund to support her lavish lifestyle. The Criminal Division is committed to helping root out such fraud wherever we find it.”
“I am proud of the exceptional work of the special agents, analysts and support personnel who spent countless hours following the money trail in this case,” said Special Agent in Charge Spencer. “Their work is some of the most complex, tedious, and significant work we do for the American public. Rooting out public corruption is a priority for which the FBI will continue to dedicate the resources necessary to investigate, because the impact on everyday people is real. We thank our law enforcement partners at the Criminal Division’s Public Integrity Section, IRS-CI and U.S. Attorney’s Office for their efforts to hold Brown and her associates accountable for their inexcusable actions.”
“For years Corrine Brown banked on the slogan ‘Corrine Delivers’,” said Assistant Special Agent in Charge Shawn Batsch of IRS-CI. “In this case, that’s precisely what she did: she banked entirely on herself when she delivered charitable donations to her own pockets. Having built a lifelong reputation of helping others, she ultimately failed her constituents by fraudulently helping herself to contributions meant for underprivileged children. She also let them down by selfishly neglecting her duty to pay an honest tax.”
U.S. District Court Judge Timothy J. Corrigan sentenced Brown to serve 60 months in prison; Brown’s long-time Chief of Staff Elias “Ronnie” Simmons to serve 48 months in prison; and Carla Wiley, the president of the fraudulent charity, to serve 21 months in prison.
Brown, 71, of Jacksonville, was convicted by a federal jury on May 11, on 18 counts of an indictment charging her with participating in a mail and wire fraud conspiracy and scheme, concealing material facts on required financial disclosure forms, obstructing the due administration of the internal revenue laws and filing false tax returns.
Brown’s co-conspirators — Simmons, 51, of Laurel, Maryland and Wiley, 55, of Leesburg, Virginia — previously pleaded guilty to their roles in the education charity scheme on Feb. 8, and March 3, 2016, respectively. Brown and Wiley were ordered by Judge Corrigan to forfeit $654,292.39, and Simmons was ordered to forfeit $727,964.90. All three defendants were ordered to pay total restitution of $452,515.87 to victims of the fraud scheme. Brown was ordered to pay an additional $62,650.99 in restitution to the IRS, and Simmons was ordered to pay an additional $91,621.38 in restitution to the U.S. House of Representatives.
Evidence at trial showed that between late 2012 and early 2016, Brown, Simmons and Wiley participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which the defendants and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other charitable causes. Testimony by One Door donors established that Brown and her coconspirators solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives. Many of the donors were led to believe that One Door was a properly registered 501(c)(3) non-profit organization, when, in fact, it was not.
Contrary to Brown’s representations, Brown, Simmons, Wiley and others used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts, according to trial evidence. In one instance, Simmons deposited $2,100 of One Door funds into Brown’s personal bank account the same day that Brown paid $2,057 to the IRS for taxes she owed. In another instance, Brown and a close relative used the proceeds of a $3,000 One Door check referencing “children summer camps” in the memo line for their personal benefit. Likewise, trial evidence showed Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use.
Trial evidence also showed that more than $300,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a Beyoncé concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area. According to trial evidence, despite raising over $800,000 in donations, One Door was associated with only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.
Additionally, trial evidence established that Brown engaged in a scheme to conceal reportable income she received from One Door, and from other sources, on annual financial disclosure forms she was required to file with the U.S. House of Representatives. Evidence at trial further showed that Brown failed to report on her personal tax returns for tax years 2009 through 2014 income derived from over $160,000 in cash deposited into her bank accounts, and claimed false deductions for purported charitable donations to One Door, as well as to local churches and non-profit organizations in the Jacksonville area, that Brown never made.
As part of his earlier guilty plea, Simmons separately admitted that he misused his position as Brown’s chief of staff to obtain congressional employment for a close relative, who received over $735,000 in government salary payments between 2001 and early 2016 despite performing no known work for the U.S. House of Representatives. Between 2009 and late 2015, Simmons admitted that he diverted over $80,000 of the relative’s government salary for his personal benefit, including through transfers to his personal bank accounts, payments on his personal credit cards and loan payments on his boat.
The FBI and IRS-CI investigated the case. Former Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida prosecuted the case.
Former U.S. Congresswoman Corrine Brown and Conspirators Sentenced to Federal PrisonRead the Press Release
Jacksonville, FL – United States District Judge Timothy J. Corrigan today sentenced former U.S. Congresswoman Corrine Brown (71, Jacksonville) to 5 years in federal prison for her role in a conspiracy and fraud scheme involving a fraudulent scholarship charity. She also was ordered to serve 3 years of supervised release and to pay $515,166.86 in restitution to her victims, including $62,650.99 in tax restitution.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida, Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville, Florida, Division, and Chief Don Fort of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
On May 11, 2017, Brown was convicted by a federal jury on 18 counts of an indictment charging her with participating in a conspiracy involving a fraudulent education charity, concealing material facts in required financial disclosure forms, obstructing the due administration of internal revenue laws, and filing false tax returns. The jury also found her guilty of violating the Ethics in Government Act by concealing certain income in required annual financial disclosure forms she had submitted to the U.S. House of Representatives.
Brown’s co-conspirators, Elias “Ronnie” Simmons (51, Laurel, Maryland), Brown’s long-time Chief of Staff, and Carla Wiley (55, Leesburg, Virginia), the president of the fraudulent charity, previously pleaded guilty to their roles in the education charity scheme and were also sentenced today. Simmons was sentenced to 48 months in federal prison and 3 years of supervised release. Wiley was sentenced to 21 months' imprisonment. Simmons and Wiley were ordered to pay $544,137.25 and $452,515.87 in restitution, respectively.
Evidence at trial showed that between late 2012 and early 2016, Brown participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which the Brown, Simmons, Wiley, and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other charitable causes. Testimony by One Door donors showed that Brown and her coconspirators had solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives. Many of the donors were led to believe that One Door was a properly registered 501(c)(3) non-profit organization when, in fact, it was not.
Contrary to Brown’s representations, Brown, Simmons, Wiley, and others used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts, according to trial evidence. Likewise, trial evidence showed that Brown and Simmons had used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use.
Trial evidence also showed that more than $300,000 in One Door funds had been used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C. area. According to trial evidence, despite raising over $800,000 in donations, One Door granted only two scholarships totaling $1,200 to cover expenses related to attending a college or university.
Additionally, trial evidence demonstrated that Brown had failed to disclose, among other things, the reportable income she had received from One Door and had claimed deductions on her tax returns based on false statements that she had made certain donations to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.
The FBI and IRS-CI investigated the case. Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida and former Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section prosecuted the case.
Former GM of Local Car Dealership Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – William Cafarella was sentenced to 18 months in prison and ordered to repay $201,335.25 as a result of a fraud and kickback scheme he committed in 2011 through 2013 while General Manager of West County Honda in Ellisville, Missouri.
Cafarella admitted to holding himself out as the owner of the dealership and demanding cash kickbacks from vendors.
Cafarella, 43, of Davie, Florida, pled guilty in August to one felony count of wire fraud. He appeared to today for sentencing in front of U.S. District Judge Audrey G. Fleissig.
The case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Former Controller of Minnesota Metal Stamping Company Sentenced to 33 Months in Prison for Million Dollar Embezzlement SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of JOHN BURWOOD ROBINSON, 50, to 33 months in federal prison for stealing more than $1.1 million from his employer. ROBINSON, who was charged on July 26, 2017 with one count of mail fraud and one count of filing a false tax return, pleaded guilty on August 17, 2017, to both counts. He was sentenced on November 30, 2017, before Senior Judge Paul A. Magnuson in U.S. District Court in Saint Paul, Minn.
“This is an appropriate sentence for a defendant who abused his long-held position of trust by stealing more than a million dollars from his employer to fund his preoccupation with classic automobiles,” said Assistant U.S. Attorney Surya Saxena. “I am grateful for the combined efforts of the investigative agencies whose work brought this case to a successful conclusion.”
“IRS Criminal Investigation remains committed to uncovering financial fraud schemes,” stated Acting Special Agent in Charge Hubbard Burgess of the St. Paul Field Office IRS Criminal Investigation. “The recent 33-month sentencing of John Robinson shows that filing a filing false tax return will result in severe consequences.”
“Robinson was entrusted with managing the finances of the business that employed him, but instead he violated that trust by defrauding and stealing from the business,” said Minnesota Commerce Commissioner Jessica Looman. “This successful criminal investigation was the result of a coordinated effort by the Commerce Fraud Bureau with the Blaine Police and the IRS.”
According to the defendant’s guilty plea and documents filed in court, from 1991 through 2016, ROBINSON was employed by North Central Stamping & Manufacturing, Inc. (“NCSMI”), and in 2003, he became NCSMI’s controller. As the controller, ROBINSON managed NCSMI’s bank accounts, bookkeeping records, and financial reports.
According to the defendant’s guilty plea and documents filed in court, ROBINSON devised a fraud scheme to steal money that was paid to NCSMI by its clients. ROBINSON opened a bank account in the name of NCSMI without the company’s knowledge or authorization. ROBINSON then deposited payments made by NCSMI’s customers into the fraudulent bank account he had set up. ROBINSON used the money to pay for his own personal expenses, to fund his hobby of buying and restoring automobiles and automobile parts, and to pay for a storage facility to store the automobiles and parts. In total, ROBINSON stole approximately $1,200,000 from NCSMI.
According to the defendant’s guilty plea and documents filed in court, in addition to his theft, ROBINSON admitted to filing false tax returns by understating his total income for the calendar years 2009 through 2015, in order to lower his tax liability and to avoid detection of his fraud scheme. In total, ROBINSON caused a total tax loss of $291,757.31.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, the Minnesota Department of Commerce Fraud Bureau, and the Blaine Police Department.
Assistant U.S. Attorney Surya Saxena prosecuted the case.
Defendant Information:
JOHN BURWOOD ROBINSON, 50
Crystal, Minn.
Convicted:
- Mail fraud, 1 count
- Filing a false tax return, 1 count
Sentenced:
- 33 months in prison
- 3 years supervised release
- $624,132.99 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former CEO and CFO of Digital Sign Company Charged with Conspiracy to Commit Wire Fraud and Obstruction of the Securities and Exchange CommissionRead the Press Release
SAN FRANCISCO – Donald MacCord, formerly a resident Washington State, and Shannon Doyle, a resident of Maryland, were arrested today for their role in an alleged conspiracy and fraud scheme, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Securities and Exchange Commission-Inspector General Carl W. Hoecker. The United States Securities and Exchange Commission (“SEC”) filed a parallel civil action against MacCord and Doyle today in the Western District of Washington.
According to the indictment, from at least 2013 to 2017, MacCord and Doyle conspired in a scheme to defraud by making misrepresentations to raise money for Digi Outdoor Media, Inc. (“Digi”), and then by misappropriating that money from Digi through an entity called Signworks, LLC (“Signworks”). They then both concealed their misstatements and misappropriation in various ways, and obstructed the investigation of the Securities and Exchange Commission in San Francisco into their conduct.
According to the indictment unsealed today, MacCord and Doyle, both 50, were the CEO and CFO of Digi, respectively. Digi was, and is, in the business of obtaining leases for and installing digital advertising signs. MacCord and Doyle raised money for Digi in various ways, including by soliciting investments. They solicited investments both directly and through other entities and individuals, including an investment advisor firm registered with the SEC and the Financial Industry Regulatory Authority (“FINRA”). According to the indictment, MacCord and Doyle made various misrepresentations, both to the investment advisor firm and investors, including misrepresentations regarding the number of leases into which Digi had entered or had negotiated with landlords and was prepared to enter, about the number of sites “committed” for sign installation, and that the funds would be used to pay for the construction, installation, and maintenance of signs.
MacCord and Doyle then diverted Digi funds, including money raised from investors, to Signworks, concealing their diversion with fake invoices purporting to bill Digi for work done on non-existent sites. From Signworks, MacCord and Doyle misappropriated the funds to their own personal use.
As part of their conspiracy to defraud, MacCord and Doyle also lied in various other ways about the number of leases Digi had obtained. Specifically, MacCord and Doyle caused Digi to file a Form S-1 registration statement with the SEC to sell Digi shares publicly. The registration statement overstated the number of leases into which Digi had entered and the number of sign locations for which Digi had a right to install, and it failed to disclose MacCord’s and Doyle’s self-dealing with respect to Signworks. According to the indictment, MacCord and Doyle also misrepresented to a joint venture partner and to a public accounting firm that was auditing Digi’s financial statements in connection with the S-1 the number of leases and lease sites into which Digi had entered.
According to the indictment, MacCord and Doyle then concealed their conspiracy to defraud and obstructed the SEC’s investigation into it. MacCord shared falsely executed leases with several parties—the investment advisor firm, the joint venture partner, and the accounting firm. These leases contained the forged signatures of the purported counterparties, along with various other false statements. The day after Digi received a subpoena from the SEC, MacCord deleted some of these leases from a Dropbox folder shared with the investment advisor firm, and then produced a set of executed leases to the SEC. Both MacCord and Doyle then testified falsely, evasively, and non-responsively in proceedings of the SEC.
MacCord and Doyle were both charged with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and obstruction of official proceedings, in violation of 18 U.S.C. § 1512(c)(2). MacCord was also charged with false writings to a government agency, in violation of 18 U.S.C. § 1001(a)(3), and destruction, alteration, or falsification of records in violation of 18 U.S.C. § 1519.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum penalty for each count of conspiracy to commit wire fraud, obstruction of official proceedings, and destruction, alteration, or falsification of records in federal investigations is twenty years’ imprisonment and a $250,000 fine. The maximum penalty for each count of false writings to a government agency five years’ imprisonment and a $250,000 fine. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
MacCord surrendered to FBI custody today in Seattle, Washington, and Doyle surrendered to FBI custody today in Greenbelt, Maryland. Both made appearances in court and were released. Doyle is scheduled to appear on December 15, 2017, at 9:30 a.m., and MacCord on December 18, 2017, at 9:30 a.m., both in San Francisco, before U.S. Magistrate Judge Elizabeth D. Laporte, for arraignment.
Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with the assistance of Claudia Hyslop and Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the SEC-Office of the Inspector General.
Five St. Joseph Residents Indicted for $2.1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that five St. Joseph, Mo., residents have been indicted for their roles in a $2.1 million conspiracy to distribute methamphetamine.
James Patrick Pardee II, 27, Eleeseea Leann Crail, 25, Johnathan Scott Graf, 29, Michael Robert Ramsel, 26, and Adam Christopher Lowe, 38, all of St. Joseph, were charged in a three-count superseding indictment returned under seal by a federal grand jury in Kansas City, Mo., on Nov. 16, 2017. The indictment was unsealed and made public following the arrests and initial court appearances of Pardee and Ramsel, who remain in federal custody. The remaining defendants are currently in custody on unrelated state charges.
The indictment alleges that all five co-defendants participated in a conspiracy to distribute methamphetamine from Jan. 1, 2015, to Nov. 16, 2017. The indictment alleges the distribution of more than 99 kilograms of methamphetamine during the conspiracy. The five co-defendants are also charged together in one count of conspiracy to commit money laundering in connection with the drug-trafficking conspiracy.
In addition to the conspiracy counts, Pardee is charged with one count of possessing methamphetamine with the intent to distribute.
The indictment also contains a forfeiture allegation, which would require the five co-defendants to forfeit to the government any property obtained as a result of the drug-trafficking conspiracy, including a money judgment of $2.1 million. This represents the amount of money received in exchange for the unlawful distribution of methamphetamine, the indictment says, based on an approximate sale price of $600 per ounce and distribution of at least 3,500 ounces (approximately 99.2 kilograms) of methamphetamine.
According to an affidavit filed in support of the original criminal complaint, Plattsburg, Mo., police officers attempted to conduct a traffic stop for a lane violation on a black Audi A4 driven by Pardee on Sept. 23, 2017. Pardee fled from officers at speeds exceeding 100 miles per hour for approximately nine miles, the affidavit says, until his vehicle crashed into a guardrail. Pardee and a female passenger got out of the vehicle; Pardee was arrested and the female passenger escaped. Officers found a backpack inside the vehicle that contained numerous clear plastic baggies with a total of more than two kilograms of methamphetamine. Investigators later determined that he had recently sold approximately one kilogram of methamphetamine, the affidavit says.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Drug Enforcement Administration, the Plattsburg, Mo., Police Department; the Atchison County, Kan., Sheriff’s Department; the Buchanan County Drug Strike Force and Sheriff’s Department; the Jackson County Drug Task Force; the Clinton County, Mo., Sheriff’s Department; the Missouri State Highway Patrol; the Cass County, Mo., Sheriff’s Department; and the Clay County Drug Task Force.
Five Harrisburg Men Charged with Drug and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Colby Syhur Grant, age 23, William Chism, III, age 27, Richard Earl Davis, age 25, John R. Wilson, Jr., age 38, and Henry Ferrer, age 40, all of Harrisburg, Pennsylvania, were charged on November 29, 2017, in a thirty-one count superseding indictment with unlawful possession of firearms and drug distribution. The indictment was unsealed following the arrest of the defendants.
According to United States Attorney David J. Freed, the men are alleged to have engaged in a scheme between October 2016 and April 2017, to purchase firearms illegally by using a “straw purchaser,” alleged in the indictment to be Chism, to purchase firearms because they were prohibited from doing so. Grant is also charged with drug trafficking. Grant and Davis are also charged with possessing firearms in furtherance of drug trafficking. Davis is also charged with obstructing the investigation by causing the disposal of a firearm so law enforcement officers would not find it.
The charges stem from an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney James T. Clancy is prosecuting the case
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for possession of a firearm in furtherance of drug trafficking is life in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for possession with intent to distribute controlled substances is 20 years in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for making false statements to buy firearms is 10 years in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for obstruction of justice is 5 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Federal Law Enforcement Seizes Rifles, Shotguns and Ammunition from Melrose Park Home of Suspected Drug DealerRead the Press Release
CHICAGO — Federal authorities have seized rifles, shotguns and ammunition from the Melrose Park home of a man who allegedly brought a gun to a drug deal.
JOSE MENDOZA illegally sold four rifles and ten rounds of ammunition on Nov. 21, 2017, in a parking lot of a fitness center in Melrose Park, according to a criminal complaint and affidavit filed in federal court in Chicago. Unbeknownst to Mendoza, the buyer was an undercover law enforcement employee, the complaint states.
Mendoza and two co-defendants were arrested on Nov. 30, 2017, after they attempted to purchase two kilograms of cocaine from the undercover law enforcement employee in the parking lot of a home improvement store in Northlake, the complaint states. At the time of the attempted drug deal, Mendoza was carrying a handgun in his jacket pocket, according to the complaint. During a subsequent law enforcement search of Mendoza’s residence in Melrose Park, authorities discovered another handgun, two rifles, five shotguns, and ammunition, the complaint states.
The complaint charges Mendoza, 53, with possession of a firearm during a drug trafficking crime. He and the two co-defendants, MIGUEL PINEDA, 48, of River Grove, and ALEJANDRO SANDOVAL, 25, of Waukegan, are also charged with conspiracy to possess cocaine with the intent to distribute. Detention hearings for Pineda and Sandoval are scheduled for today before U.S. Magistrate Judge Susan E. Cox in Chicago. A detention hearing for Mendoza is set for Dec. 7, 2017, at 2:30 p.m. before Judge Cox.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Schiller Park Police Department and Elgin Police Department provided valuable assistance.
According to the complaint, the defendants attempted to purchase the cocaine for $57,000 in cash. The money was hidden in a trap compartment in the trunk of a BMW X6 driven by one of the defendants, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Possessing a firearm during a drug trafficking crime is punishable by a maximum sentence of life in prison. The drug charge is punishable by up to 40 years in prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Christine M. O’Neill.
Dunmore Man Charged with 14 Bank Robberies in Northeastern PennsylvaniaRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on November 30, 2017, William Fischer, age 45, of Dunmore, Pennsylvania, was charged in a criminal information with 14 bank robberies, and with brandishing firearms during the course of those bank robberies.
According to United States Attorney David J. Freed, the information alleges that Fischer robbed 14 banks located throughout northeastern Pennsylvania between December 1, 2015 and September 13, 2017. Fischer was apprehended shortly after the September 13, 2017, robbery by the Pennsylvania State Police. For 12 of the offenses, Fischer was charged with robbing the banks while armed. He also was charged with brandishing a firearm during a crime of violence. Fischer’s crime spree netted $203,779; law enforcement recovered $16,769 of the stolen funds.
The United States is seeking forfeiture of 14 handguns, rifles, shotguns, and assault rifles, assorted ammunition, and a ballistic vest seized during the investigation. The United States also is seeking forfeiture of a Scranton, Pennsylvania property.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and by numerous local law enforcement authorities throughout northeastern Pennsylvania. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the combined charges is life imprisonment, a term of supervised release following imprisonment, and a fine. The firearm charge carries a mandatory seven-year sentence that is to run consecutive to any sentence received for the bank robbery offenses. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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District Man Sentenced to Eight-Year Prison Term for Breaking into Numerous Downtown OfficesRead the Press Release
WASHINGTON – Phillip Lomax, 57, of Washington, D.C., has been sentenced to an eight-year prison term for a series of burglaries earlier this year at numerous office buildings in downtown Washington, U.S. Attorney Jessie K. Liu announced today.
Lomax pled guilty in September 2017, in the Superior Court of the District of Columbia, to eight counts of second-degree burglary. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of five to 10 years in prison. The Honorable Danya A. Dayson accepted the plea and sentenced Lomax accordingly on Dec. 1, 2017. Following his prison term, Lomax will be placed on three years of supervised release.
According to the government’s evidence, Lomax targeted an area of downtown known as the Golden Triangle Business Improvement District, a 43-block neighborhood that stretches from the White House to Dupont Circle. From January through May of 2017, Lomax broke into more than 20 commercial properties in various office buildings, often entering more than one suite within the same building. According to the government’s evidence, he broke doorways, doors, and locks to enter buildings and office spaces, disabled building security camera recording equipment, and took cash, cameras, computers, credit cards, and other items. The crimes typically took place during overnight hours and were discovered the following business day.
Lomax was arrested on May 19, 2017, following an investigation by the Metropolitan Police Department (MPD). He has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from MPD’s First and Second Police Districts. She also expressed appreciation for the assistance provided by the Golden Triangle Business Improvement District and Admiral Security Services. Finally, she acknowledged the efforts of Assistant U.S. Attorney Gregory Rosen, who investigated and prosecuted the case.
District Man Sentenced to 20 Years in Prison for Slaying of His 81-Year-Old MotherRead the Press Release
WASHINGTON – Derek Cook, 52, has been sentenced to 20 years in prison for killing his mother last summer at their apartment in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Cook pled guilty in September 2017, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 20 years in prison. The Honorable Zoe Bush accepted the plea and sentenced the defendant on Dec. 1, 2017. Upon completion of his prison term, Cook will be placed on five years of supervised release.
According to a proffer of facts submitted at the plea hearing, on the night of Aug. 12, 2017, Cook was having a conversation with his 81-year-old mother, Ann Alfredia Cook, in the bedroom of their apartment in the 5000 block of Fourth Street NE. Cook began to repeatedly strike his mother with a closed first, and she yelled for help. Cook also struck his mother repeatedly with a wooden stick and an iron, hitting her on various parts of her face and body. At the time of the beating, his mother was unarmed and in bed.
The Metropolitan Police Department (MPD) arrived at the apartment at about 10:45 p.m., and Cook let them into the apartment building. However, he would not let police into the apartment. To gain entry, the police had to ram down the apartment door. After doing so, police found Ms. Cook, who was severely injured. She was taken to a hospital, where she died later that night. Derek Cook was arrested and has remained in custody ever since.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of Assistant U.S Attorney Thomas N. Saunders, who investigated and prosecuted the matter.
Detroit Man Sentenced to a Year and a Day for Operating an Unlicensed Bitcoin BusinessRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Sal Mansy, 41, of Detroit, Michigan, and TV TOYZ, LLC, a Michigan corporation, were sentenced today in U.S. District Court for operating an unlicensed money-service business. Mansy was sentenced to a year and a day in prison and three years of supervised release. TV TOYZ, LLC was sentenced to three years of probation. The defendants were also ordered to forfeit about $118,000 worth of cash and bitcoin. Guilty pleas were entered on May 17, 2017.
According to court documents, between August 2013 and June 2015, Mansy bought and sold about $2.4 million worth of the virtual currency “Bitcoin” online for profit. Mansy funneled his Bitcoin transactions through the business bank account of TV TOYZ, a corporation he owned and operated. Mansy engaged in these Bitcoin transactions without registering his money-service business with FinCEN (the Financial Crimes Enforcement Network, a branch of the U.S. Treasury Department). It is against federal law for a money-service business to exchange or transfer Bitcoin without registering. Mansy was aware that he was required to register with FinCEN. A year-long investigation into Mansy’s activities culminated in June 2015 with a search of his Detroit residence and the seizure of about $118,000 worth of cash and bitcoin.
The investigation was conducted by the Portland, Maine and Detroit, Michigan offices of U.S. Immigration & Customs Enforcement’s Homeland Security Investigations; and the Saco Police Department.
Dallas-Based Physician-Owned Hospital to Pay $7.5 Million to Settle Allegations of Paying Kickbacks to Physicians in Exchange for Surgical ReferralsRead the Press Release
WASHINGTON – Pine Creek Medical Center LLC (“Pine Creek”), a physician-owned hospital serving the Dallas/Fort Worth area, has agreed to pay $7.5 million to resolve claims that it violated the False Claims Act by paying physicians kickbacks in the form of marketing services in exchange for surgical referrals, the Department of Justice announced today.
“Health care providers that attempt to profit from illegal kickbacks will be held accountable,” said Principal Deputy Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “Improper financial incentives can distort medical decision making and drive up healthcare costs for federal health care programs and their beneficiaries.”
The government alleged that, between 2009 and 2014, Pine Creek engaged in an illegal kickback scheme whereby the hospital would pay for marketing and/or advertising services on physicians’ behalf and, in return, the physicians would refer their patients, including Medicare and TRICARE beneficiaries, to Pine Creek. Among other things, Pine Creek allegedly paid for advertisements on behalf of the physicians in a number of local and regional publications. Pine Creek also allegedly paid for radio and television advertising, pay-per-click advertising campaigns, billboards, website upgrades, brochures, and business cards, as well as other forms of marketing to induce physicians to refer patients to Pine Creek for medical services.
“The United States Attorney’s Office, in coordination with our partners at Main Justice and HHS-OIG, have and will continue to aggressively pursue those that violate the Anti-Kickback Statute, regardless of the nature or form that the kickback takes,” said Erin Nealy Cox, the U.S. Attorney for the Northern District of Texas. “We must hold individuals and entities responsible for improperly furthering their financial interests at the expense of the federal health care programs.”
As part of the settlement, Pine Creek has agreed to enter into a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG), which obligates the defendants to undertake substantial internal compliance reforms for the next five years.
“Hospitals that try to boost their profits by paying kickbacks to physicians will instead pay for their improper conduct,” said Special Agent in Charge C.J. Porter, Department of Health and Human Services, Office of Inspector General’s Dallas Region. “We will continue to investigate such illegal business arrangements that undermine impartial medical judgment.”
The settlement resolves allegations originally brought in a lawsuit filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers, Suzanne Scott and Savannah Sogar, former employees of Pine Creek’s marketing department, will receive $1,125,000.
The government’s intervention in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The case was handled by the U.S. Attorney’s Office for the Northern District of Texas and the Justice Department’s Civil Division, with assistance from the Federal Bureau of Investigation, and in coordination with the U.S. Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Suzanne Scott, et al. v. Pine Creek Medical Center, LLC, Case No. 3:14-cv-3065 (N.D. Tex.). The claims settled by this agreement are allegations only; there has been no determination of liability.
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Dallas Man Sentenced to 96 Months in Federal Prison for Firearm and Drug OffensesRead the Press Release
DALLAS — A 37-year-old man from Dallas, Laroy Damont Johnson, was sentenced today before U.S. District Judge Sam A. Lindsay to serve a total of 96 months in federal prison for drug and firearm offenses, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
In August 2017, Johnson was convicted of one count of possession with intent to distribute a controlled substance, namely, heroin, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of being a felon in possession of a firearm. Johnson has been in custody since the time of his arrest in June 2016.
According to evidence presented at trial, Johnson was staying at a hotel room in Dallas that he used to sell heroin. Law enforcement searched the room and found Johnson sitting on the couch next to three cell phones and nearly $5,000 cash; distribution quantities of heroin in the fridge; a table covered in what appeared to be heroin residue, along with Xanax pills in a plastic baggie, cocaine, a digital scale, and a razor blade; and a loaded firearm wedged between the mattress and the box spring of the bed. The government presented additional evidence suggesting that Johnson had been staying in the room for several days distributing drugs.
The Drug Enforcement Administration and the Irving Police Department investigated. Assistant U.S. Attorneys Andrew Wirmani and Jamie L. Hoxie prosecuted the case.
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Charleston drug dealer pleads guilty to federal heroin chargeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal heroin crime, announced United States Attorney Carol Casto. Christopher Rush, 32, entered his guilty plea to distribution of heroin.
Rush admitted that on May 10, 2017, he sold heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team. The drug deal took place in Charleston. He also admitted that he sold heroin, fentanyl, and methamphetamine to the same confidential informant on three other occasions. Officers executed a search warrant at Rush’s residence in Charleston on May 31, 2017, and found in excess of 100 grams of methamphetamine. Rush additionally took responsibility for all the drug trafficking activity charged in the indictment.
Rush faces up to 20 years in federal prison when he is sentenced on March 14, 2018.
The case against Rush was investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorneys Haley Bunn and Timothy D. Boggess are in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Chapel Hill Man Sentenced to Federal Prison for Defrauding UNC Newman Center Catholic Student Parish to Fund Lavish LifestyleRead the Press Release
GREENSBORO, N.C. – A Chapel Hill man was recently sentenced to 57 months in federal prison on charges of bank fraud, access device fraud, and aggravated identity theft, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.
Brian Lee CANSLER, 27, of Chapel Hill, North Carolina, was sentenced on November 27, 2017, by the Honorable Catherine C. Eagles, United States District Judge for the Middle District of North Carolina. CANSLER previously pleaded guilty to charges relating to his tenure as Financial Director of the UNC Newman Center Catholic Student Parish, a Catholic student ministry and parish located at the University of North Carolina at Chapel Hill. The UNC Student Parish ministers to both the UNC student body and the Chapel Hill community. CANSLER worked for the UNC Student Parish in various roles from February 2014 to July of 2016. From September 2014 to his termination, CANSLER served as Financial Director of the UNC Student Parish. CANSLER pleaded guilty to bank fraud in violation of Title 18, United States Code, Section 1344(2) for counterfeiting UNC Student Parish checks, aggravated identity theft in violation of Title 28, United States Code, Section 1028A for forging the signature of the then Pastor of the parish on counterfeit checks and to access device fraud in violation of Title 18, United States Code, Section 1029(a)(2) for misuse of the UNC Student Parish Bank of America card issued to him for use for parish business.
CANSLER exploited his position as finance director to defraud the UNC Parish. First, he fraudulently obtained approximately $8,000 by making two parish checks payable to himself in the amounts of $4,500 and $3,500. CANSLER forged the signature of then serving pastor onto both fraudulent checks and presented them for payment from the UNC Parish’s account at PNC Bank.
Second, CANSLER fraudulently misused a Bank of America card and a PNC Bank credit card issued to the UNC Student Parish for official parish use. CANSLER was authorized to use these credit cards only for parish expenses such as liturgical and office supplies. However, from October 2014 to July 2016, CANSLER made over $146,000 in unauthorized purchases with the credit cards and paid the bill with UNC Student Parish funds. These purchases included fine dining, clothing, computer products and travel. CANSLER used UNC Parish credit cards to pay for trips to London, Brussels, and Disney World and to Las Vegas to see Celine Dion in concert. CANSLER or his girlfriend posted photos from these parish-funded trips on Facebook. CANSLER used his position as Finance Director at the Student Parish to pay for these charges with Parish funds.
In addition to a 57-month term of imprisonment, Judge Eagles sentenced CANSLER to five years of supervised release and ordered him to pay over $171,000 in restitution.
The United States Postal Inspection Service and the United States Department of Treasury Officer of Inspector General Task Force participated in the investigation. Assistant United States Attorney Frank Joseph Chut, Jr. prosecuted the case.
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Canadian Man Sentenced to 46 Months for International Travel to Have Sex with a MinorRead the Press Release
PHOENIX – Today, Dilbagh Singh, 57, of Ontario, Canada, was sentenced by U.S. District Judge Steven P. Logan to 46 months of incarceration. Singh had previously pleaded guilty to international travel with intent to engage in illicit sexual conduct.
Court documents show that in January 2017, Singh began an online relationship with an individual he believed to be a 15-year old girl. Over the course of nearly four months, Singh told the girl that he wanted to engage in various sex acts with her. In May 2017, Singh travelled from Canada to Flagstaff, Ariz., to meet with the girl in person and to have sex with her.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by Homeland Security Investigations. The prosecution was handled by Robert I. Brooks, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8108-PCT-SPL
RELEASE NUMBER: 2017-118_ Singh
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Buffalo Man Sentenced on Drug and Gun 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 Anthony McCutcheon, 51, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of crack cocaine and possession of a firearm in furtherance of drug trafficking, was sentenced to 132 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between June 2013 and February 25, 2014, the defendant conspired with others to distribute crack cocaine in the Buffalo area. McCutcheon supplied cocaine to co-defendants Troy Cooley, Andre Owens, Morrell Buster, and William Jefferson. During the execution of a search warrant at the defendant’s East Amherst Street residence, law enforcement officers recovered cocaine, crack cocaine, baggies and scales. Officers also recovered a loaded 9mm semi-automatic handgun.
McCutcheon was charged along with Cooley, Owens, Buster, Jefferson, Deandre Sparks, Markiel Hall, Alicia Maghett, and Carmella Rivera. All nine defendants have been convicted.
Today’s sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and the Lackawanna Police Department, under the direction of Chief James Michel.
Bristol Woman Sentenced to 5 Years in Federal Prison for Participating in IRS Impersonation ScamRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NANCY J. FRYE, 51, of Bristol, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by three years of supervised release, for her involvement in an IRS impersonation scam that defrauded hundreds of victims in the United States and Canada.
An IRS impersonation scam is operated by individuals who falsely represent themselves as employees of the IRS to obtain money from victims. Typically, those executing the fraudulent scheme make unsolicited telephone calls to people and tell them that they are IRS agents or officers calling on behalf of the IRS. During the calls, the impersonator tells the call recipient that the recipient has an outstanding debt with the IRS that must be paid immediately. The impersonator then threatens persons with either arrest or a lawsuit if they do not immediately settle the bogus IRS debt. Victims are instructed to wire money to individuals they believe are employees of the IRS in order to avoid the threatened action.
According to court documents and statements made in court, in October 2015, FRYE received phone calls and text messages from individuals who successfully recruited her to pick up money that was wired through MoneyGram and Western Union and to deposit the money into specific bank accounts. FRYE, in turn, recruited Douglas Martin and others to assist her in picking up wired funds from locations in central Connecticut. FRYE then deposited the money that she collected into the bank accounts.
Between October 2015 and June 2016, FRYE, and others working at her direction, received approximately $588,000 in wired funds from approximately 574 victims.Judge Bryant ordered FRYE to pay restitution in the amount of $585,321.
FRYE and Martin were arrested on September 15, 2016.
On June 12, 2017, FRYE pleaded guilty to one count of conspiracy to commit wire fraud.
Martin pleaded guilty to the same charge and, on November 2, 2017, was sentenced to 41 months of imprisonment.
Judge Bryant ordered FRYE, who is released on bond, to report to prison on January 8, 2018.
Since October 2013, TIGTA has received reports of more than 2.1 million impersonation related calls with more than 12,400 victims reporting losses of approximately $62 million.
This matter is being investigated by the Treasury Inspector General for Tax Administration (TIGTA) of the U.S. Department of the Treasury and U.S. Postal Inspection Service. The U.S. Attorney gratefully acknowledges the assistance provided by the Rocky Hill Police Department, Bristol Police Department, and New York State Department of Taxation and Finance.
The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
U.S. Attorney Durham stated that the investigation is ongoing and encouraged individuals who receive impersonation calls, including those who have been victimized by this scheme, to report the information at this link.
Berkeley County woman sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – An Inwood, West Virginia woman was sentenced today to five years probation for a firearms charge, United States Attorney Bill Powell announced.
Julie Elizabeth Lipscomb, age 36, pled guilty to one count of “False Statement During the Purchase of a Firearm” in September 2017. Lipscomb admitted to making a false statement when purchasing two firearms. The crime occurred in August 2015 in Jefferson County.
Special Assistant U.S. Attorney Lydia Lehman prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Bergen County, New Jersey, Man and Woman Charged with Bank RobberyRead the Press Release
NEWARK, N.J. – An Oradell, New Jersey, man and a Hasbrouck Heights, New Jersey, woman, were charged today for their alleged roles in a Bergen County bank robbery, Acting U.S. Attorney William E. Fitzpatrick announced.
Joel Robbins, 47, and Wanda Soel, 52, were arrested Dec. 3, 2017, and are scheduled to make their initial appearances today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. They are each charged by complaint with one count of bank robbery.According to documents filed in this case and statements made in court:
On Dec. 3, 2017, Robbins allegedly robbed the TD Bank in Mahwah, New Jersey. According to video surveillance and witness reports, Robbins walked into the bank wearing gray pants, a black jacket, sunglasses, a dark skull cap, and light-colored latex gloves. As he entered the bank, Robbins pulled a bandana over his face. Soel allegedly waited for Robbins in a Toyota Corolla parked outside the bank.
Robbins pulled a black handgun (later determined to be fake) from his waistband and pointed it at two bank tellers, who said Robbins demanded money from them and warned them not to “make me have to kill you.” The tellers complied and handed Robbins money. Robbins took the money and walked out of the bank, dropping several bills as he departed.
Robbins allegedly got into the passenger seat of the Corolla and Soel drove away. Nearby law enforcement officers, who had received a report of the bank robbery while it was in progress, pursued the Corolla. Soel drove into the parking lot of a nearby hotel, where she and Robbins tried to switch places so Robbins could drive. When Soel got out of the Corolla, she tripped and fell, and Robbins drove away without her. Law enforcement officers arrested Soel in the hotel parking lot.
Robbins drove out of the hotel parking lot but eventually hit a curb, blew a tire, and crashed. Law enforcement officers caught up to the Corolla and arrested Robbins. They recovered U.S. currency sticking out of Robbins’s pants and other cash bills strewn inside the Corolla, along with a fake black handgun. Officers also recovered sunglasses, a bandana, a dark knit cap, and latex gloves from the Corolla, resembling the items Robbins was seen wearing when he robbed the bank. Robbins was wearing a black jacket when he was arrested.
The count of bank robbery with which Robbins and Soel are charged carries a maximum punishment of 20 years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to the charge. He also thanked the Mahwah Township Police Department for its contribution to the case.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Austin Man Admits Role in $4.8 Million TRICARE Fraud ConspiracyRead the Press Release
DALLAS, Texas — Jody Sheffield, 44, of Austin, Texas, pleaded guilty today, before U.S. District Judge Sidney A. Fitzwater, to one count of conspiracy to commit health care fraud stemming from a scheme to defraud TRICARE through the submission of unnecessary toxicology and DNA cancer screening tests. The announcement was made today by Criminal Chief Chad Meacham of the Northern District of Texas.
Sheffield faces a maximum penalty of not more than five years in federal prison, a $250,000 fine, and may be ordered to pay restitution. Sheffield will remain on bond pending sentencing, which is scheduled for May 18, 2017.
According to the plea agreement factual resume filed in the case, , Sheffield was the operations manager for ADAR Group, LLC (ADAR Group), an outpatient toxicology testing facility. Erik Bugen owned and operated ADAR Group. Britt Hawrylak and Matthew Hawrylak were marketers for Xpress Laboratories, Inc. (Xpress Laboratories) and Progen Lab Systems, LLC (Progen Labs), and financiers of ADAR Group.
Starting in May 2015 and continuing through May 2016, ADAR Group collected urine and saliva samples from TRICARE, a healthcare program of the United States Department of Defense (DoD) Military Health System that provided coverage for DoD beneficiaries world-wide, including active duty service members, National Guard and Reserve members, retirees, their dependents, and survivors. The samples were sent to Xpress Laboratories and Progen Labs and billed to TRICARE and private insurance for unnecessary toxicology and DNA cancer screening tests.
Sheffield and Bugen induced TRICARE beneficiaries to provide urine and saliva samples with $50.00 Wal-Mart gift cards. Sheffield and his codefendants disguised the kickback payments as a food assistance program for low income soldiers. They also paid monthly fees to doctors to sign test forms. Ultimately, Bugen obtained signature stamps from the doctors and Sheffield and other ADAR Group employees stamped the testing order forms. Beneficiaries did not see these doctors prior to obtaining the testing, did not receive test results, and did not know the purpose of their samples.
As a result of the scheme, TRICARE was billed approximately $36 million for tests that were not needed, not legitimately prescribed, and which were the product of kickbacks. For these claims, TRICARE paid approximately $4.8 million.
The Defense Criminal Investigative Service, Veteran’s Affairs- Office of Inspector General, and Federal Bureau of Investigation, are investigating. Assistant U.S. Attorney Adrienne Frazior is prosecuting.
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Attorney Sentenced to 2 Years in Prison for Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DONALD J. McCARTHY, 67, of East Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for tax evasion.
According to court documents and statements made in court, for the tax years 1997 through 1999, 2001, 2003, and 2008 through 2011, McCARTHY, an attorney, filed federal personal income tax returns, but failed to pay the outstanding tax balances due and owing for those years, or failed to pay interest and penalties that had accrued on outstanding amounts. In addition, for the tax years 2012 through 2014, McCARTHY did not file personal income tax returns at all, and failed to pay taxes that were due and owing, as well as interest and penalties that had accrued on outstanding amounts.
The investigation revealed that McCARTHY attempted to evade the payment of income taxes by depositing his payroll checks into his personal bank account and then, shortly thereafter, withdrawing a substantial portion of the monies in cash and bank checks.
By June 2015, when he learned of the criminal investigation being conducted by the Internal Revenue Service, McCARTHY owed $1,437,037 in back taxes, interest and penalties. McCARTHY’s restitution to the IRS now totals $1,522,734.
On September 11, 2017, McCARTHY pleaded guilty to one count of tax evasion.
McCARTHY, who is released on a $50,000 bond, was ordered to report to prison on January 31, 2018.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Albuquerque Woman Pleads Guilty to Federal Drug Trafficking and Mail Theft ChargesRead the Press Release
ALBUQUERQUE – JoAnn Bell, 37, of Albuquerque, N.M., pled guilty today in federal court to drug trafficking and theft of mail charges under a plea agreement with the U.S. Attorney’s Office that recommends a five year term of imprisonment.
Bell and co-defendant Nathan Berke, 37, also of Albuquerque, were indicted on May 24, 2017. The 14-count indictment charges Bell and Berke with conspiracy to possess methamphetamine with intent to distribute, possession of methamphetamine with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime and possession of stolen mail on July 28, 2016, in Bernalillo County, N.M. Bell was charged individually with being a felon in possession of a firearm on July 28, 2016, in Bernalillo County. Berke was charged individually with possession of methamphetamine with intent to distribute on Aug. 9, 2016, in San Juan County, N.M.; being a felon in possession of a firearm on July 28, 2016, in Bernalillo County; possession of stolen mail on Aug. 9, 2016, in San Juan County; and three counts of bank fraud and three counts of aggravated identity theft from July 23, 2016 through July 25, 2016, in New Mexico and Colorado.
During today’s proceedings, Bell pled guilty to conspiracy, possession of methamphetamine with intent to distribute and possession of stolen mail. In entering the guilty plea, Bell admitted that on July 28, 2016, she and another individual were in possession of approximately 100 grams of methamphetamine which they intended to distribute to others. Bell further admitted that on that same day, she was in possession of mail belonging to others that had been stolen from an authorized depository for United States mail.
Berke has entered a plea of not guilty to the charges against him and is pending trial. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
Bell was previously arrested in Sept. 2016, on a criminal complaint charging her with repeatedly stealing mail from U.S. Postal Service mail collection boxes located outside of U.S. Post Offices in Albuquerque by using a “fishing” device she fed into the mailbox to “fish” mail out. Bell was indicted in this case on Oct. 12, 2016, and was charged with stealing and receiving stolen mail on Sept. 18, 2016 in Bernalillo County. On March 30, 2017, Bell pled guilty to the indictment and admitted using a “fishing” device to pull mail out of USPS collection boxes on Sept. 17 and 18, 2016. The sentence imposed in this case will run concurrent to the five-year term of imprisonment Bell has agreed to in her guilty plea entered today.
This case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorneys Nicholas Jon Ganjei and Sean J. Sullivan.
Albuquerque Man Pleads Guilty to Federal Conspiracy and Bank Fraud Charges Arising Out of Mail Theft SchemeRead the Press Release
ALBUQUERQUE – Fernando Cairo-Rosell, 29, of Albuquerque, N.M., pled guilty today in federal court to conspiracy and bank fraud charges arising out of a scheme to steal mail from USPS collection boxes at U.S. Post Offices in the Albuquerque area in July and Aug. 2017.
U.S. Postal Inspectors arrested Cairo-Rosell and co-defendants Jorge R. Cabrera, 20, Hector Lau, 21, and Yarelys Marquez, 19, all of Albuquerque, on Aug. 30, 2017, based on criminal complaints charging them with theft of mail and bank fraud charges. The criminal complaint alleged that in July and Aug. 2017, mail collection boxes at USPS stations in Albuquerque repeatedly were broken into and mail was stolen. The U.S. Postal Inspection Service initiated an investigation into the scheme after receiving complaints that checks deposited in the mail collection boxes had been stolen, altered and deposited into accounts allegedly held by the defendants.
The four defendants were subsequently charged with conspiracy and nine counts of bank fraud in a ten-count indictment, which was filed on Sept. 21, 2017. According to the indictment, the four defendants participated in a conspiracy to commit bank fraud that began in July 2017 and continued until Aug. 2017, and operated in Bernalillo County, N.M. The indictment also charges the four defendants with committing bank fraud against four credit unions that maintain branches in Albuquerque. The indictment alleges that the defendants conspired to commit bank fraud by stealing checks that had been deposited in U.S. mail depositories, altering the checks, and attempting to pass the checks off as legitimate to banking institutions. The indictment alleges that as part of their bank fraud scheme, the defendants deposited checks, which had been altered to make them payable to members of their conspiracy and in amounts ranging from $500 to $4,754, into bank accounts held by members of the conspiracy.
During today’s proceedings, Cairo-Rosell pled guilty to conspiracy and five counts of bank fraud under a plea agreement with the U.S. Attorney’s Office. In entering the guilty plea, Cairo-Rosell admitted that from July 10, 2017 through Aug. 9, 2017, he conspired with others to deposit altered checks which Cairo-Rosell knew had been stolen from mailboxes throughout Albuquerque. Cairo-Rosell further admitted that on at least four occasions, he allowed his bank account at an Albuquerque-area credit union to be used to deposit checks in exchange for a portion of the check-cashing proceeds.
At sentencing, Cairo-Rosell faces a maximum penalty of 30 years in federal prison. A sentencing hearing has yet to be scheduled.
Cabrera, Lau and Marquez have entered pleas of not guilty to the charges against them and are pending trial. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley.
1 December 2017
York Man Sentenced to 15 Years’ Imprisonment for Federal Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney's Office for the Middle District of Pennsylvania announced today that on November 30, 2017, Senior District Court Judge Sylvia H. Rambo sentenced Quan Leroy Gross, age 46, of York, Pennsylvania, to 180 months’ imprisonment. Gross pleaded guilty to possessing a firearm as a convicted felon before Judge Rambo on July 18, 2017.
According to United States Attorney David J. Freed, law enforcement apprehended Gross when he possessed a loaded firearm in York City during a drug transaction. As a previously convicted felon, Gross is prohibited from possessing firearms.
Gross faced a mandatory minimum of fifteen years imprisonment and a statutory maximum of life imprisonment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant United States Attorney Meredith A. Taylor prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Woman Sentenced for Attempting to Steal over $200K in ChecksRead the Press Release
ALEXANDRIA, Va. – A Maryland woman was sentenced today to 20 months in prison for bank fraud.
According to court documents, Linette Jones, 29, impersonated identity theft victims, opened bank accounts in identity theft victims’ names, and attempted to deposit stolen checks in the fraudulently opened bank accounts. Then Jones attempted to withdraw funds after the stolen checks were cleared by commercial banks. In one instance in August 2016, Jones attempted to negotiate a stolen $230,000 treasury check while posing as an identity theft victim. In total, Jones attempted to steal more than $285,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Eric M. Thorson, Inspector General for the U.S. Department of Treasury, Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Daniel W. Lucas, Inspector General, District of Columbia, made the announcement after sentencing by U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys Nathaniel Smith III and Grace L. Hill prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-93.
Woman Pleads Guilty to Case Involving Guns Recovered at Homicide SceneRead the Press Release
ALEXANDRIA, Va. – An Alexandria woman who purchased eight firearms in 34 days, including two that were recovered at a homicide scene in Alexandria, pleaded guilty today to providing false statements to investigators.
According to court documents, Edna Aminata Conteh, 22, turned 21 years-old in May 2016. Between May 20 and June 23, 2016, Conteh purchased the following eight firearms:
Date, 2016
Type
Status
May 20
Kel-Tec, P11, 9mm pistol
Recovered during execution of a search warrant in on July 30, 2016
May 31
Walther, PPS, 9mm pistol
Recovered during traffic stop in Prince George’s County, Md., on Aug. 26, 2016
June 11
Taurus, 82, .38 Special revolver
Not recovered
June 13
Smith & Wesson, BG380, .380 pistol
Recovered at homicide scene in Alexandria
June 13
Smith & Wesson, M&P, .40 pistol
Not recovered
June 17
Walther, PK380, .380 pistol
Not recovered
June 18
Ruger, LC380, .380 pistol
Not recovered
June 23
Taurus, 85, .38 Special revolver
Recovered at homicide scene in Alexandria
During multiple interviews with ATF agents, Conteh made a number of materially false and misleading statements, including that all eight firearms were stolen from her vehicle. That statement was materially false and misleading because Conteh knew one of her friends (Individual 1) had accompanied her to at least one federal firearms licensee and sold the weapons to various individuals.
After the interview, agents learned that two of the firearms purchased by Conteh were recovered by the Alexandria Police Department (APD) at a homicide scene in north Old Town near the Braddock Road metro station. Agents later learned that law enforcement recovered two other firearms purchased by Conteh.
Conteh faces a maximum penalty of five years in prison on March 23, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Carina A. Cuellar is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-283.
Wilmerding Felon Charged with Illegally Possessing Revolver and FentanylRead the Press Release
PITTSBURGH - One Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal firearms and narcotics laws, Acting United States Attorney Soo C. Song announced today.
The two-count superseding indictment, returned yesterday, named Michael Dillon Burrows, age 31, as the sole defendant.
According to superseding indictment presented to the court, on September 8, 2016, Burrows possessed a Smith & Wesson 38 special, .38 caliber revolver. Burrows has previously been convicted of a felony and is prohibited from possessing a firearm. The superseding indictment further charges that on September 8, 2016, Burrows possessed with the intent to distribute a quantity of fentanyl.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Stephen S. Gilson is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Adams Township Police Department conducted the investigation leading to the superseding indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Virginia Man Sentenced to 15 Years in Prison for Sex Trafficking 15-Year-Old GirlRead the Press Release
A Triangle, Virginia man was sentenced today to 180 months in federal prison for multiple sex trafficking offenses.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office (WFO) made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Christian Don’Tae Hood, 25, was convicted by a federal jury in August 2017 of sex trafficking of a minor and conspiracy to commit sex trafficking of a minor. On the first day of trial, Hood’s co-defendant Abdul Bangura, 20, pleaded guilty to, among other offenses, sex trafficking of a minor and production of child pornography.
According to the evidence presented at trial and other court documents, Hood and Bangura met the 15-year-old victim while she was living with her aunt at the Econolodge in Dumfries, Virginia. The defendants, working together, recruited the minor into their prostitution scheme and began to advertise her on Backpage.com. The minor victim was transported to multiple motels throughout Northern Virginia, Washington, D.C. and Maryland for commercial sex acts. After customers paid money to sexually exploit the minor victim, the defendants collected a portion of the money. Defendant Bangura also produced a video of child pornography involving the minor victim.
The FBI WFO’s Child Exploitation and Human Trafficking Task Force, Prince William County Police and Washington D.C. Metropolitan Police investigated this case. Assistant U.S. Attorney Maureen Cain of the Eastern District of Virginia and Trial Attorney Kyle P. Reynolds of the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division are prosecuting the case.
Violent Crime Federal Prosecution UpdateRead the Press Release
St. Louis, MO – The United States Attorney’s Office will prosecute aggressively violent criminals and drug dealers. Federal prosecution is a powerful tool in the fight to reduce violent crime. Below is a list of defendants prosecuted federally in November:
Wilbert Anderson, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Chad Coffman, 36, was indicted by a federal grand jury on two felony counts of possessing with intent to distribute methamphetamine; one felony count of possessing one or more firearms in furtherance of a drug trafficking crime; and one felony count of felon in possession of a firearm.
Dedrick Conley, 26, East St. Louis, IL, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; possession with intent to district cocaine base; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Harold Hoskin, 25, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Domonique Israel, 24, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute cocaine, cocaine base, heroin, and marijuana; one felony count of possession of a firearm in furtherance of a drug trafficking crime; and one felony count of felon in possession of a firearm.
Joshua Jackson, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of one or more firearms.
Novelle Jackson, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Donovan Jacobs, 25, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Earl McNeal, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Willie Mitchell, 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Dwayne Ramsey, 37, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Forrest Smith, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Terrill Watt, 31, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Marvin Williams, 42, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of forcible assault with a firearm; one felony count of possession with intent to distribute marijuana; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Frank Hart, 44, Jennings, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of attempted carjacking by threat of force or violence; and one felony count of discharge of a firearm in furtherance of a crime of violence.
Kerry Caldwell, 53, St. Louis, was indicted by a federal grand jury on one felony count of carjacking, attempted carjacking; one felony count of brandishing a firearm in furtherance of a crime of violence; and one felony count of felon in possession of a firearm.
Juan Chase, 46, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm(s).
Sidney Johnson, 37, was indicted by a federal grand jury on one felony count of conspiracy to possess with the intent to distribute methamphetamine; one felony count of felon in possession of a firearm; and one felony count of making false statements to a dealer.
Jacqueline Scott, 32, was indicted by a federal grand jury on one felony count of conspiracy to possess with the intent to distribute methamphetamine; one felony count of felon in possession of a firearm; and one felony count of making false statements to a dealer.
Martavis Hines, 29, was indicted by a federal grand jury on one felony count of conspiracy to possess with the intent to distribute methamphetamine; one felony count of felon in possession of a firearm; and one felony count of making false statements to a dealer.
Lonzo Patrick, 53, St. Louis, was indicted by a federal grand jury on one felony count of armed robbery and one felony count of brandishing a firearm in furtherance of a crime of violence.
Keith West, 59, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jurmont Clark, 25, St. Louis, was indicted by a federal grand jury on one felony count of possession with the intent to distribute cocaine, cocaine base (crack), heroin, and marijuana (schedule I and II controlled substances); possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Melvin Cooper, 48, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Sylvester Ivory, 39, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Corey Norris, Jr., 18, St. Louis, was indicted by a federal grand jury on one felony count of possession with intent to distribute heroin; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Alex Wheelis, 26, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Joshua Brison, 23, was indicted by a federal grand jury on one felony count of felon in possession of a firearm and one count of possessing a firearm in furtherance of a drug trafficking crime.
Devoshia Gray, 19, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Taleb Jawher, 39, St. Louis, was indicted by a federal grand jury on one felony count of possession of a firearm by an illegal alien.
Keith Miles, 24, was indicted by a federal grand jury on one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute heroin; and one felony count of possessing a firearm in furtherance of a drug trafficking crime.
Carl Nettles, 55, Park Hills, was indicted by a federal grand jury on one felony count of conspiracy to distribute actual methamphetamine; one count of felon in possession of a firearm; and one count of possessing a firearm in furtherance of a drug trafficking crime.
Marquis Black, 30, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Arthur Jackson, 40, Florissant, pled guilty to on one felony count of felon in possession of a firearm and one felony count of possessing with intent to distribute heroin.
Kevin Bishop, 43, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Stacy L. Bonds, 54, pled guilty to one felony count of felon in possession of a firearm.
Majuan M. Bates, 40, Dallas, TX, pled guilty to one felony count of felon in possession of a firearm.
Michael Jackson, 33, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Eric Kellin, Jr., 31, Normandy, pled guilty to three felony counts of felon in possession of a firearm.
Christopher Dawkins, 34, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Joseph L. Miles, 31, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Demetrius Lewis, 28, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Devon Guice, 27, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Kerry L. Chau, 22, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
James Nunley, 34, Madison County, IL, pled guilty to one felony count of unlawful possession of a firearm by a felon.
Dwayne Bowden, 36, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Armond Calvin, 19, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Ronald A. Golden, Jr., 44, University City, pled guilty to one felony count of robbery of a federally insured institution and one felony count of possession of a firearm in furtherance of a crime of violence.
Alonzo Finger, 34, St. Louis, pled guilty to two felony counts of felon in possession of a firearm.
Arinthius Johnson, 43, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Terrance L. Thomas, 25, St. Louis, pled guilty to one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute heroin; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Deandriss Bowden, 22, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Demetrius A. Simmons, Sr., 34, St. Louis, was sentenced to 77 months in prison for one felony count of felon in possession of a firearm.
Steven Gaines, 26, was sentenced to 21 months in prison for one felony count of felon in possession of a firearm.
Donnell L. Jones, 25, St. Louis, was sentenced to 26 months in prison for one felony count of felon in possession of a firearm.
William A. Anthony, Jr., 42, was sentenced to 81 months in prison for one felony count of felon in possession of a firearm.
Antonio Strong, 31, St. Louis, was sentenced to 137 months in prison for one felony count of felon in possession of a firearm; one felony count of possession with intent to distribute heroin; and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Deshaun L. Ceruti, 42, St. Louis County, was sentenced to 80 months in prison for one felony count of felon in possession of a firearm.
Jevon Harris, 23, St. Louis, was sentenced to 18 months in prison for one felony count of felon in possession of a firearm.
Johnny White, 49, St. Louis, was sentenced to 60 months in prison for three felony counts of felon in possession of a firearm.
Hassan L. Johnson, 25, St. Louis, was sentenced to 120 months in prison on one felony count of felon in possession of a firearm.
Robert Neuman, 34, St. Louis, was sentenced to 30 months in prison for one felony count of felon in possession of a firearm.
Dennis Howard, 33, was sentenced to 60 months in prison for one felony count of felon in possession of a firearm.
Christopher Bell, 37, Sikeston, was sentenced to 27 months in prison for one felony count of felon in possession of a firearm.
Floyd Murray, 26, St. Louis, was sentenced to 46 months in prison for one felony count of felon in possession of a firearm.
Robert E. Davis, 29, St. Louis, was sentenced to 44 months in prison for one felony count of felon in possession of a firearm.
Carl L. Winston, 51, St. Louis, was sentenced to 18 months in prison for one felony count of felon in possession of a firearm.
Marquis Hoffman, 32, St. Louis, was sentenced to 41 months in prison for one felony count of felon in possession of a firearm.
Rico Jones, 43, St. Louis, was sentenced to 51 months in prison for one felony of felon in possession of firearm
Kelvin Miller, 37, St. Louis, was sentenced to 24 months in prison for one felony count of felon in possession of a firearm.
Winford Johnson, 33, Moscow Mills, was sentenced to 63 months in prison for one felony count of felon in possession of a firearm.
Jameel Ahman, 36, St. Louis, was sentenced to 120 months for one felony count of unlawful possession of a firearm by a felon.
Kendreal Graham, 51, Collinsville, IL, was sentenced to 155 months in prison for one felony count of brandishing a firearm in furtherance of a crime of violence and for kidnapping.
Michael Brooks, 34, Chesterfield, was sentenced to 12 months in prison for one felony count of felon in possession of a firearm.
William Newsome, 26, St. Louis, was sentenced to 12 months in prison for one felony count of felon in possession of a firearm.
Michael Hodge, 28, St. Louis, was sentenced to 36 months in prison for one felony count of felon in possession of a firearm.
James Bell, 29, St. Louis, was sentenced to 51 months in prison for one felony count of felon in possession of a firearm.
Justin Walker, 26, St. Louis, was sentenced to 12 months in prison for one felony count of felon in possession of a firearm.
Malcolm Johnson, 26, was sentenced to 126 months in prison for one felony count of possessing a firearm in furtherance of a crime of violence, resulting in murder.
Jesse Hampton, 26, was sentenced to 264 months in prison for one felony count of possessing a firearm in furtherance of a crime of violence, resulting in murder.
Vidor, TX, and Houston Area Pharmacists Sentenced to Federal Prison on Bribery and Tax Charges in Connection with Health Care Fraud SchemeRead the Press Release
In Austin today, a federal judge sentenced Brian David Haney, 38-year-old partial owner of Vidor Pharmacy and Kevin Michael Gray, 45-year-old operator of Family Pharmacy, Inc., in the Houston area, each to 28 months in federal prison for bribery and tax violations in connection with a health care fraud scheme announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Sam Sparks ordered that each defendant pay a $100,000 fine; pay $6,500 for the cost of prosecution; and, be placed on supervised release for a period of three years after completing his prison term. Judge Sparks also ordered that Haney pay $351,947 restitution to the IRS; Gray, $245,692 restitution to the IRS. Judge Sparks also ordered that both defendants pay, jointly and severally, $813,560.87 restitution to the U.S. Department of Labor.
On December 14, 2016, Haney pleaded guilty to a two-count Information charging him with willful offer and payment of illegal remuneration in relation to a federal health care program and one count of making and filing a false Income Tax return. On April 13, 2016, Gray pleaded guilty to the same charges.
By pleading guilty, the defendants admitted that for over a two-year period ending in January 2014, they paid kickbacks totaling $813,560.87 to Garry Wayne Craighead. Craighead, a chiropractor, organized and controlled multiple health care related entities, including eight clinics in Texas (Dallas, Fort Worth, Killeen, Austin, San Antonio, Corpus Christi, Weslaco, and Beaumont), that derived substantial revenue from the U.S. Department of Labor’s health care benefit programs. Haney and Gray paid Craighead cash for patient referrals of federally-insured employees in need of prescription services.
Both defendants also admitted to filing a false Income Tax return in which they substantially understated their total income, adjusted gross income and taxable income.
On December 4, 2015, Craighead pleaded guilty to one count of solicitation and receipt of illegal remunerations in federal health care programs and one count of engaging in monetary transactions in property derived from specified unlawful activity. On June 10, 2016, Craighead was sentenced to 14 years in federal prison and ordered to pay over $17 million restitution to the U.S. Department of Labor.
“Today’s sentencings of Brian Haney and Kevin Gray further shows that IRS Criminal Investigation is working vigorously to stop perpetrators who devise elaborate methods to conceal their fraudulent proceeds from health care fraud,” said Acting Special Agent in Charge Troy Caldron, San Antonio Field Office. “Money gained through illegal sources, such as healthcare fraud, is part of the untaxed, underground economy. This untaxed underground economy poses a threat to our voluntary tax compliance system and undermines the overall public confidence in our American system of taxation.”
“To ensure patient referrals of federally-insured employees in need of prescription services, pharmacists Brian Haney and Kevin Gray paid more than $800,000 in illegal kickbacks to Dr. Garry Craighead, who is currently serving a 14-year sentence on related charges. We will continue to work with our law enforcement partners to investigate medical providers who exploit injured American workers and defraud the Office of Workers’ Compensation Programs for their personal gain,” said Special Agent in Charge Steven Grell, U.S. Department of Labor, Office of Inspector General, Dallas Region.
“The sentences issued today should be an example to those healthcare providers engaging in illegal schemes that the government is vigilant and fraud committed against federal benefit programs is a serious offense that will not be tolerated,” said Special Agent in Charge Christopher Cave, U.S. Postal Service Office of Inspector General, Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners, will continue to vigorously investigate these types of cases in order to protect the Office of Workers’ Compensation Programs and United States Postal Service from further fraud and abuse.”
“We are very pleased with today’s announcement,” said Director Frank Robey, U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “This is a true testament to our continued commitment to work closely and seamlessly with our outstanding fellow law enforcement agencies to help bring those to justice who attempt to defraud the U.S. Government and U.S. Army.”
“The sentences handed down today should send a strong message to healthcare providers, and others who contemplate engaging in illegal kickback schemes, that they will be held accountable for their actions. The FBI will continue to work with our partners, to aggressively investigate and prosecute criminals who abuse the system for personal enrichment, at the expense of hard working U.S. taxpayers,” stated FBI Special Agent in Charge Christopher Combs, San Antonio Division.
The U.S. Postal Service Office of the Inspector General, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the U.S. Department of Labor Office of the Inspector General conducted this investigation. Assistant U.S. Attorneys James Blankinship and Mark Marshall are prosecuting this case for the government.
Two Miami-Dade County Residents Sentenced for Conspiring to Possess with Intent to Distribute HydromorphoneRead the Press Release
On November 28, 2017, Oreste Abreu, 50, of Hialeah, was sentenced to 51 months imprisonment, and Daniel Lezcano-Morejon, 39, of Hialeah, to 46 months imprisonment, for conspiring to possess with intent to distribute the opioid hydromorphone.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Abreu and Lezcano-Morejon previously pled guilty to conspiracy to possess with intent to distribute hydromorphone. Hydromorphone, sold under the brand name Diluadid, is an opioid that has contributed to the current crisis involving this class of drugs.
Between March 21, 2012 and August 16, 2012, DEA, in coordination with MDPD, conducted controlled purchases of hydromorphone pills from Abreu and Lezcano-Morejon. During this period, on various occasions, an undercover MDPD detective purchased hydromorphone pills from Abreu, typically at Abreu’s south Florida residence. Specifically, on March 21, 2012, the undercover officer purchased 100 pills from Abreu for $1,200; on April 18, 2012, the undercover officer purchased 200 pills from Abreu for $2,400; and on May 31, 2012, the undercover officer purchased 200 pills from Abreu for $2,600. On each of these occasions, Lezcano-Morejon supplied Abreu the hydromorphone pills. In addition, on July 6, 2012, the undercover officer purchased 100 hydromorphone pills from Abreu for $1,300 at a Wal-Mart parking lot in Hialeah; and on August 16, 2012, the undercover officer purchased 230 hydromorphone pills from Abreu for $3,000 at Abreu’s residence.
During that same time, law enforcement also intercepted Abreu’s phone conversations. The interceptions often involved Abreu requesting pills from either Lezcano-Morejon or other drug sources-of-supply for further illicit distribution.
Mr. Greenberg commended the investigative efforts of the DEA and MDPD. This case was prosecuted by Assistant U.S. Attorney Robert Brady.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Two Men Plead Sentenced in Connection to Methamphetamine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jared Mendez, 32, of Bradford, NY, who was convicted of theft of anhydrous ammonia with knowledge it would be used to manufacture methamphetamine, was sentenced to 46 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr. In addition, Terry Champion, who was convicted of possession of a listed chemical with knowledge it would be used to manufacture a controlled substance, was sentenced to 63 months in prison.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that between June 2012, and May 4, 2016, Mendez and Champion conspired with Scott Kennedy and others to manufacture and distribute methamphetamine.
During the course of the conspiracy, Scott Kennedy distributed large amounts of methamphetamine with and to people throughout the area of Schuyler, Chemung, and Steuben Counties in New York. During that time, Kennedy received the assistance of numerous co-conspirators who provided him with supplies with the intent that he would use those supplies to manufacture methamphetamine. Between July 2015 and October 2015, Jared Mendez stole anhydrous ammonia and sold it to Kennedy.
Between January 2016, and May 4, 2016, Terry Champion obtained quantities of pseudoephedrine and sold it to Scott Kennedy. In addition, on January 22, 2016, Champion possessed approximately 182 pseudoephedrine pills for the purpose of manufacturing methamphetamine.
Co-defendant Wendy Kennedy has been convicted and is awaiting sentencing. Charges are pending against co-defendant Quinton Harrison. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencings are the result of an investigation by the New York State Police, Special Investigations Unit, Rochester; the New York State Police, CNET Southern Tier, under the direction of Major Richard Allen; the Schuyler County Sheriff’s Department, under the direction of William Yessman; and the Schuyler County District Attorney’s Office, under the direction
Two Men Plead Guilty to Defrauding Investors of over $7 Million in Fuel Cell Company Investor Fraud SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that GEORGE DOUMANIS and EMANUEL PANTELAKIS, a/k/a “Manny,” each pled guilty today to defrauding investors in Terminus Energy, Inc., a publicly traded penny stock. DOUMANIS and PANTELAKIS each pled guilty to conspiracy to commit securities fraud before U.S. Magistrate Judge Debra Freeman. They will be sentenced before U.S. District Judge Andrew L. Carter on April 9, 2018.
Acting U.S. Attorney Joon H. Kim said: “Today, George Doumanis and Emanuel Pantelakis both admitted to operating an investment scheme by luring investors in a supposed fuel cell technology which they knew to be fictitious. In furtherance of their scheme, the two used misleading documents to dupe investors into contributing over $7 million into their phony penny stock – which they eventually used to pay their own personal expenses. This Office and our law enforcement partners will continue to keep a watchful eye on the investment markets and prosecute those who mislead the investing public.”
According to the allegations contained in the Indictment filed against DOUMANIS, PANTELAKIS and their co-conspirator, and statements made in related court filings and proceedings[1]:
From at least February 2008 until at least 2014, DOUMANIS and PANTELAKIS, along with their co-conspirator Danny Pratte, engaged in a scheme to defraud investors in the publicly traded company Terminus Energy, Inc. (“Terminus”), by inducing victims to invest in Terminus stock through material misrepresentations and omissions and by misappropriating investor funds for their own purposes.
Terminus was purportedly producing and marketing a commercially viable “fuel cell” as an alternative energy source. DOUMANIS, PANTELAKIS, and Pratte sold shares of Terminus to investors through private offerings. In connection with such sales, DOUMANIS, PANTELAKIS, and Pratte provided investors with private placement memorandums (“PPMs”) that contained materially false and misleading statements. For example, the PPMs falsely stated that (i) Terminus had completed its goal of developing a working fuel cell in mid-2008; (ii) Terminus would use specified investors’ funds to make payment on third-party development contracts designed to manufacture a working fuel cell; and (iii) Terminus would pay no more than 10 percent in sales commissions. In truth, and as DOUMANIS, PANTELAKIS, and Pratte well knew, (i) there was no working fuel cell; (ii) the third party contracts had been cancelled after Terminus failed to make payment to the third parties; and (iii) unregistered salesmen were receiving commissions far in excess of 10 percent. The PPMs also failed to accurately disclose the involvement of either DOUMANIS, who was barred from involvement in penny stocks as a result of a 2003 conviction for conspiracy to commit securities fraud, wire fraud, and mail fraud, or PANTELAKIS, who had been permanently barred by the Financial Industry Regulatory Authority (“FINRA”) following allegations that he had made fraudulent misrepresentations to customers in connection with the sale of securities. DOUMANIS, PANTELAKIS, and Pratte also caused similar misrepresentations to be made in business plans, executive summaries, and presentations shared with potential investors, as well as in publicly available press releases. Through these false and misleading statements, DOUMANIS, PANTELAKIS, and Pratte fraudulently induced investors to purchase nearly $8 million of Terminus stock.
Rather than use the investor money as promised, DOUMANIS, PANTELAKIS, and Pratte misappropriated the funds for their own use and for use by their co-conspirators. For example, DOUMANIS, entities affiliated with DOUMANIS, and certain of his family members received at least $570,000, including payments to personal credit cards and toward DOUMANIS’s residential mortgage. PANTELAKIS and certain of his family members received at least $420,000, including payments to personal credit cards and to pay for PANTELAKIS’s wife’s Mercedes-Benz. Pratte personally received approximately $1 million. In addition, the unregistered salespeople collectively received undisclosed commissions of more than $1.5 million.
* * *
GEORGE DOUMANIS, 59, and EMANUEL PANTELAKIS, a/k/a “Manny,” 42, each pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the Court.
Trial against defendant Danny Pratte is scheduled to commence on May 1, 2018, on charges of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire and mail fraud, and wire fraud. The allegations contained in the Indictment as to Pratte are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Kim praised the work of the Federal Bureau of Investigation, and thanked the SEC.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein and Christine Magdo are in charge of the prosecution.
[1] As for the defendant who has not pled guilty, Danny Pratte, the description of the charges set forth herein constitute only allegations.
Three Conspirators Sentenced to Federal Prison for Marijuana Trafficking and Money LaunderingRead the Press Release
PENSACOLA, FLORIDA – Three defendants were sentenced to federal prison after pleading guilty to conspiracy to distribute marijuana and conspiracy to commit money laundering. On November 8, 2017, Sanford Eugene Johnson III, 31, of Pensacola, was sentenced to 151 months in prison. Yesterday, William Brett Brownell, 26, of Milton, was sentenced to 70 months in prison, and his father, William Ezra Brownell, 60, of Mobile, Alabama, was sentenced to 20 months in prison. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between 2014 and 2017, Johnson and the Brownells, along with co-defendants Charles Zachariah Sindylek, Brandon Craig Remeyer, David DelGiacco, Andrew Paul Marcelonis, and Steven Ryan Michael Sholly, conspired to distribute more than 100 kilograms of marijuana. During the same time period, Johnson, the Brownells, Sindylek, Remeyer, DelGiacco, and Marcelonis conspired to launder the proceeds of their drug conspiracy through cash deposits and withdrawals at financial institutions for the purpose of promoting and concealing the drug conspiracy. More than $3.5 million in cash proceeds from the sale of marijuana was laundered during the time frame of the conspiracy.
The remaining defendants are awaiting sentencing on the following dates at the U.S. Courthouse in Pensacola:
- Remeyer: December 12, 2017, at 10:30 a.m. CST;
- Sindylek: December 19, 2017, at 10:30 a.m. CST;
- Marcelonis: December 19, 2017, at 2:30 p.m. CST;
- Sholly: January 16, 2018, at 10:30 a.m. CST; and
- DelGiacco: January 16, 2018, at 2:30 p.m. CST.
This case resulted from an investigation by the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pensacola Police Department, the Mobile Police Department, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Okaloosa County Sheriff’s Office, and the Gulf Breeze Police Department. Assistant United States Attorney Alicia H. Forbes is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.