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Wednesday 18 October 2017
Las Cruces Man Pleads Guilty to Unlawfully Possessing Firearm While Being Subject to a Protective OrderRead the Press Release
ALBUQUERQUE – Joseph Torrez, 31, of Las Cruces, N.M., pled guilty yesterday afternoon in federal court to violating federal firearms laws by unlawfully possessing a firearm and ammunition while being subject to a protective order. Torrez’s plea agreement recommends a sentence within the range of 15 to 18 months in prison followed by a term of supervised release to be determined by the court.
Torrez was arrested on June 1, 2017, on a criminal complaint charging him with violating the federal firearms laws on Feb. 7, 2017, in Dona Ana County, N.M. According to the criminal complaint, on Feb. 11, 2017, a fugitive investigator of the New Mexico Division of Adult Probation and Parole (NMDAPP) observed Torrez carry a gun case containing a rifle into a gun shop in Las Cruces. Based on that information, an officer of the NMDAPP obtained a state arrest warrant for Torrez, who was prohibited from possessing firearms as a condition of the probationary term he was serving as the result of a misdemeanor conviction for aggravated assault. On Feb. 13, 2017, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) assisted the NMDAPP in arresting Torrez and executing a probationary inspection at Torrez’s residence. During the search, the agents and officers seized a shotgun and boxes of ammunition.
During yesterday’s proceedings, Torrez pled guilty to a felony information charging him with possession of a firearm while under a court order of protection. In entering the guilty plea, Torrez admitted that on Feb. 7, 2017, he possessed an AR-15 rifle and numerous rounds of ammunition. Torrez further admitted that on Feb. 7, 2017, he was subject to a protective order placed against him on June 8, 2012 that expires on June 8, 2026, and prohibits Torrez from possessing firearms or ammunition. A sentencing hearing has yet to be scheduled.
The case against Torrez was investigated by the Las Cruces office of ATF and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Laguna Pueblo Man Pleads Guilty to Federal Statutory Rape ChargeRead the Press Release
ALBUQUERQUE – Quentin DeLoris, 23, an enrolled member of the Laguna Pueblo who resides in Mesita Laguna, N.M., pled guilty today in federal court in Albuquerque, N.M., to a statutory rape charge. Under the terms of his plea agreement, DeLoris will be sentenced to 15 months in federal prison followed by a term of supervised release to be determined by the court. DeLoris will also be required to register as a sex offender.
During today’s proceedings, DeLoris pled guilty to a felony information charging him with committing statutory rape on Dec. 25, 2016, on the Pueblo of Laguna in Cibola County, N.M. In entering the guilty plea, DeLoris admitted that on Dec. 25, 2016, he engaged in a sexual act with the victim who was between the age of 12 and 16 years. DeLoris’s sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA Office of Justice Services. Special Assistant U.S. Attorney Lucy B. Solimon is prosecuting the case pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Judge Sentences Pittsburgh Man to 5 Years in Prison for Heroin Distribution SchemeRead the Press Release
PITTSBURGH – Christopher Bradley-Bey was sentenced to 60 months in federal prison for conspiring to distribute at least 100 grams of heroin, Acting United States Attorney Soo C. Song announced today.
Bradley-Bey, age 24, formerly of Pittsburgh, Pennsylvania, was sentenced by United States District Court Judge Nora Barry Fischer. Judge Fischer ordered that Bradley-Bey serve four years of supervised release after he is released from prison. Bey’s sentencing guideline range for the heroin trafficking conviction was increased for his possession of a dangerous weapon.
Assistant United States Attorneys Rachael L. Dizard and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security/Homeland Security Investigations, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Judge Sentences Former Pittsburgh Man to 10 Years in Prison for Heroin Trafficking ConspiracyRead the Press Release
PITTSBURGH – Holman Brown was sentenced to 120 months in federal prison for conspiring to distribute at least one kilogram of heroin, Acting United States Attorney Soo C. Song announced today.
Brown, age 26, formerly of Pittsburgh, Pennsylvania, was sentenced by United States District Court Judge Nora Barry Fischer. Judge Fischer ordered that Brown serve five years of supervised release after he is released from prison. Brown’s sentencing guideline range for the heroin trafficking conviction was increased for possession of a dangerous weapon, for maintaining a premises for the purpose of distributing a controlled substance, for management or supervision of criminal activity that involved five or more participants, and for his use of violence or credible threat to use violence.
Assistant United States Attorneys Rachael L. Dizard and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security/Homeland Security Investigations, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Jacksonville Businessman Pleads Guilty to FraudRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Ashish Bahl (52, Jacksonville), who also resides in Atlanta, Georgia, today pleaded guilty to conspiracy to commit mail and wire fraud. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Bahl engaged in fraudulent business activities related to the SunTrust Bank building located near the Jacksonville Landing. From September 2005 to March 2015, the ownership of the building was structured as a business condominium governed by certain charter documents. In 2009, Parador Partners, LLC, which included Bahl as an owner, purchased a majority interest in the building. Parador owned approximately 73% of the office condos in the building, and carried an even greater share of the operating expenses. The condominium owners were members of an association called The River Watch at City Centre Condominium Association, Inc. Based upon Parador’s majority ownership of the building, Bahl controlled the board of directors for the association and was associated with the management company for the building.
Bahl significantly inflated special assessments for various building expenses and intentionally led the other condo owners to believe that the invoices they were presented were correct and accurate, when in fact, they were inflated. Bahl, with the assistance of others, made agreements with contractors to submit inflated invoices for various special assessment maintenance issues, which were paid by the condo association. Then, as part of an agreement with the contractor, the majority of the invoiced amount was provided as a “kick-back” to another one of Bahl’s companies, Dellwood Associates.
In addition to defrauding condo owners, Bahl also used River Watch’s bank account for personal expenses, including replacing an air conditioner ($5,457) in his Atlanta home, and remodeling his children’s bedroom ($7,150).
The total amount Bahl received as a result of the fraud was $135,396.06
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Special Assistant United States Attorney Mark B. Devereaux and Assistant United States Attorney Jason P. Mehta.
Isleta Pueblo Man Sentenced to Seven Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Juan Larry Lujan, 63, a member and resident of Isleta Pueblo, N.M., was sentenced today in federal court in Santa Fe, N.M., to 84 months in prison for his conviction on an abusive sexual contact charge. Lujan will be on supervised release for five years after completing his prison sentence and also will be required to register as a sex offender.
Lujan was arrested in Feb. 2016, on an indictment charging with sexually abusing a child under the age of 12 on the Pueblo of Isleta in Valencia County, N.M.
On Nov. 16, 2016, Lujan pled guilty to a felony information charging him with abusive sexual contact. In entering the guilty plea, Lujan admitted sexually abusing a child under the age of 12 between Nov. 2011 and Nov. 2013.
This case was investigated by the Albuquerque office of the FBI. The case was prosecuted by Assistant U.S. Attorney Joseph Spindle as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
Iowa Sex Offender Indicted for Attempting to Produce Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Ames, Iowa sex offender was indicted by a federal grand jury today on child sexual exploitation charges.
John Jordan Lundberg, 30, of Ames, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Lundberg on Friday, Oct. 13, 2017.
Lundberg was convicted on Sept. 15, 2017 for enticement of a minor for indecent purposes. Lundberg, who was granted a deferred judgment and placed on probation for three years, was arrested on Oct. 10, 2016 at the Meskwaki Bingo Casino during an undercover operation when he responded to a Craigslist advertisement and arranged a sexual encounter with a (fictitious) 15-year-old female.
The federal indictment alleges that Lundberg attempted to produce child pornography on Sept. 25, 2017. The indictment also charges Lundberg with transferring obscene material to a person who he believed was under the age of 16 on Sept. 25, 2017.
According to an affidavit filed in support of the original criminal complaint, Lundberg responded to an online advertisement that was posted by an undercover Boone County Sheriff’s Department detective in an effort to seek out potential sexual predators. The undercover officer posed as a mother offering her 13-year-old daughter for sex. The undercover officer also posed as the 13-year-old daughter, the affidavit says, and Lundberg communicated with the “daughter” via text message. Lundberg allegedly sent the “daughter” sexually explicit photos and video of himself and of others. Lundberg allegedly encouraged the “daughter” to send him nude photos of herself.
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 Ashley S. Turner. It was investigated by the Boone County, Mo., Sheriff’s Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Houston Man Guilty of Drug Trafficking in East TexasRead the Press Release
BEAUMONT, Texas – A 35-year-old Houston man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jeffrey Clive Arnold pleaded guilty to conspiracy to possess with intent to distribute methamphetamine today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, in August 2015, law enforcement officers investigating suspected drug trafficking of methamphetamine through Southeast Texas. Surveillance revealed Arnold was supplying large quantities of methamphetamine to others for distribution. Arnold was stopped leaving a Houston residence and found to be in possession of drugs and cash. A backpack with over $39,000 in cash was located at the Houston residence and it was determined to belong to Arnold. Arnold was indicted by a federal grand jury on Feb. 1, 2017.
Under federal statutes, Arnold faces a minimum of 10 years and up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Hanover Man Sentenced for Witness TamperingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on October 17, 2017, U.S. District Court Chief Judge Christopher C. Conner sentenced David K. Shaqfeh, age 49, of Hanover, Pennsylvania, to two years’ probation, five months’ home confinement, and a $55,000 fine for witness tampering.
According to United States Attorney Bruce D. Brandler, Shaqfeh solicited and encouraged an unidentified witness to give a false statement about supplemental rent payments Shaqfeh received during 2014 and 2015, for a U.S. Department of Housing and Urban Development (HUD) subsidized rental property in Levittown, Pennsylvania, to investigators from the HUD Office of Inspector General.
Shaqfeh also agreed to pay $171,831 to settle a False Claims Act violation. In the agreement, the United States alleged that Shaqfeh participated as a landlord in the Housing Choice Voucher Program (HCVP) and solicited and received unauthorized side payments from a HCVP participant over and above the authorized rent. HCVP is a program whereby the HUD provides rental subsidies for eligible low-income tenants who locate acceptable rental units on the private market.
The settlement agreement resolved allegations that Shaqfeh submitted a request for tenancy approval to HUD for a HCVP tenant, which was not approved because the rent exceeded the maximum initial rent burden under HUD guidelines. Thereafter, Shaqfeh submitted another request for tenancy approval to HUD for the same HCVP participant with a lower rent amount, which was approved by HUD. However, Shaqfeh continued to collect additional side payments from the HCVP participant to make up for the lower lease amount. HUD’s payments to Shaqfeh were contingent upon his certification that he would only charge the amount of rent approved by HUD and not receive additional rent payments from the HCVP participant. Additionally, HUD would not have paid Shaqfeh on two other HUD contracts had it known he was charging an HCVP participant additional rent on another HUD contract. Shaqfeh has paid $171,831 to resolve allegations that he violated the False Claims Act.
The case was investigated by the U.S. Department of Housing and Urban Development’s, Office of Inspector General. Assistant United States Attorneys Kim Douglas Daniel and Melissa Swauger prosecuted the case.
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Guilford Man Sentenced to More Than 8 Years in Prison for Role in Fraudulent Oxycodone Prescription SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that BRIAN PAGE, 43, of Guilford, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 97 months of imprisonment, followed by four years of supervised release, for his role in a scheme to distribute oxycodone that was obtained through fraudulent prescriptions.
According to court documents and statements made in court, in 2012, members of the Drug Enforcement Administration’s New Haven Tactical Diversion Squad began an investigation into a drug trafficking organization that manufactured fraudulent prescriptions for oxycodone and distributed the drug in the greater New Haven area. The investigation revealed that David Thompson, also known as “Super Dave,” headed the organization that obtained the personal identifying information of medical practitioners and used the information to create fraudulent prescriptions. Organization members also purchased legitimate prescriptions for oxycodone from individuals. The organization then used individuals, or “runners,” to fill the fraudulent prescriptions at pharmacies throughout Connecticut. Once a runner provided his or her personal information to a member of the organization, the runner’s information was kept on file and used to create other fraudulent prescriptions.
Thompson recruited PAGE into the conspiracy, and PAGE soon played a critical role in the scheme by using a software program on his computer to print prescriptions that appeared to be real. Once he began manufacturing prescriptions himself, PAGE recruited his own network of runners to fill them.
The investigation revealed that, between 2013 and 2015, the organization stole the personal identifying information of more than 50 doctors and medical professionals and fraudulently obtained more than 80,000 oxycodone pills. Investigators identified more than 800 fraudulent prescriptions passed by members of the organization using more than 270 different “patient” names.
Nearly all of the runners employed by the conspiracy held state-sponsored medical insurance, so the costs of the prescriptions were billed to Medicaid. Members of the drug trafficking organization then sold the oxycodone for $20 to $30 per 30 milligram pill.
Twelve individuals were charged and convicted as a result of the investigation.
On April 14, 2015, PAGE pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone.
Thompson pleaded guilty to the same charge and, on July 11, 2017, was sentenced to 14 years of imprisonment.
The DEA Tactical Diversion Squad includes members from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. This case is being prosecuted by Assistant U.S. Attorneys Amy C. Brown and Robert M. Spector.
Great Falls Man Sentenced to Prison for Possession of Child PornographyRead the Press Release
GREAT FALLS-- A Great Falls, Montana man was sentenced today for possession of child pornography. United States District Judge Brian M. Morris sentenced Manuel David Orozco, 42, to 120 months in prison, 10 years of supervised release, and a $5,100 special assessment. When he was arrested, Orozco was a Tier I sex offender, because he had been convicted of sex offenses against children in the state of Oregon.
The charge against Orozco was the result of an investigation by the Department of Homeland Security, the Intermountain West Regional Computer Forensic Laboratory Computer Analysis Response Team, the Great Falls Police Department, Cascade County, and the Internet Crimes Against Children Task Force. Assistant United States Attorney Tom Bartleson prosecuted the case.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
Galveston Resident Convicted of Two Child Pornography ChargesRead the Press Release
HOUSTON – A 26-year-old man from Galveston County has entered a guilty plea to receipt and possession of child pornography, announced Acting U.S. Attorney Abe Martinez.
Lavelas Luckey first came to the attention of law enforcement after multiple images of child pornography were found associated with his online account. Authorities later conducted a search of Luckey’s residence which eventually led to the discovery of 107 videos and 638 images of child pornography.
Luckey admitted ownership of the child pornography as well as the online account he used to obtain it.
During the plea hearing today, Luckey admitted to using peer-to-peer software to search for, download and obtain child pornography. He also admitted to distributing the child pornography through his online account.
Sentencing has been set for Dec. 29, 2017, before U.S. District Judge George C. Hanks. At that time Luckey faces a minimum of five and up to 20 years imprisonment for receipt of child pornography and up to 10 years for possession of child pornography. Each count also carries a possible $250,000 maximum fine.
The Pearland Police Department and the FBI conducted the investigation.
Assistant U.S. Attorney Julie N. Searle is prosecuting the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Fugitive Lawyer and Accomplice Indicted for EscapeRead the Press Release
A former eastern Kentucky social security disability lawyer and an accomplice were charged in a federal indictment with various offenses related to the lawyer’s escape from home confinement and his failure to appear for sentencing.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Amy S. Hess of the FBI Louisville, Kentucky Field Division and Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division made the announcement.
Eric Christopher Conn, 56, of Pikeville, Kentucky, the former disability lawyer, and Curtis Wyatt, 47, of Raccoon, Kentucky, his alleged accomplice, were charged in a seven-count indictment returned on Sept. 6, in the Eastern District of Kentucky in Lexington. The indictment was unsealed prior to Wyatt’s initial appearance and arraignment today before U.S. Magistrate Judge Robert E. Wier of the Eastern District of Kentucky. Wyatt entered pleas of not guilty and was released on bond pending his trial, which is scheduled for Dec. 18, before U.S. District Judge Danny C. Reeves. Conn remains a fugitive.
The indictment charges Conn and Wyatt with one count of conspiracy to escape and one count of conspiracy to fail to appear for sentencing. Conn is also charged with one count of escape and one count of failing to appear. Wyatt is also charged with one count each of assisting in Conn’s escape, aiding and abetting Conn’s failure to appear, and making a false statement to the FBI.
The indictment alleges that Conn, while on home confinement, escaped from custody by severing an electronic monitoring device from his ankle during a court-approved visit to Lexington on June 2, and fled to the Mexican border in a vehicle delivered to him by Wyatt a day earlier. The indictment further alleges that Wyatt, at Conn’s direction and prior to Conn’s escape, crossed into Mexico at two different pedestrian checkpoints to assess security procedures for individuals exiting the United States in an effort to aid Conn in escaping prior to Conn’s sentencing hearing. According to the indictment, Conn ultimately failed to appear for his sentencing hearing on July 14.
Conn was indicted last year, along with a former Social Security administrative law judge and a clinical psychologist, in an 18-count indictment charging conspiracy, mail and wire fraud, false statements, money laundering and other related offenses in connection with a $600 million social security disability fraud scheme. Conn previously pleaded guilty on March 24, to a two-count information charging him with theft of government money and paying illegal gratuities, and was sentenced in absentia on July 14, to 12 years in prison on those charges. Conn remains charged under the original indictment.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI is offering a reward of up to $20,000 for information leading to the arrest of Eric Christopher Conn. Anyone with information relating to Conn’s whereabouts should contact their local FBI office or the nearest American Embassy or Consulate.
The SSA-OIG and FBI investigated the case. Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorney Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
Fourth Texas Man Pleads Guilty to Hate Crime for Assault Based on Victim’s Sexual OrientationRead the Press Release
Anthony Shelton, 19, pleaded guilty yesterday to assaulting a man because of the victim’s sexual orientation, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division announced.
According to the plea agreement, Shelton admitted that he and Nigel Garrett used Grindr, a social media dating platform for gay men, to arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted the victim, and made derogatory statements to the victim for being gay. The defendants brandished a firearm during the home invasion, and they stole the victim’s property, including his motor vehicle.
A federal grand jury previously had returned an eighteen-count superseding indictment, against Shelton and three other men, that included charges for hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes.The indictment also charged the defendants with conspiring to cause bodily injury because of the victims’ sexual orientation during four home invasions in Plano, Frisco, and Aubrey, Texas, from January 17 to February 7, 2017. Nigel Garrett, Chancler Encalade, and Cameron Ajiduah subsequently pleaded guilty to hate crime charges from this indictment, and all three await sentencing.
“Hate crimes are violent crimes that attack the fundamental principles of the United States to be free from fear of violence because of your sexual orientation, gender identity, race, color, religion, or national origin,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to aggressively investigate and prosecute hate crimes.”
"Crimes of violence are an investigative priority for the U.S. Attorney's Office," said Acting U.S. Attorney Brit Featherston. "An assault perpetrated because of one's race, ethnicity, religion, nationality, sexual orientation, or among other prohibited factors, is an attack on American values. We will leave no stone un-turned to prosecute hate crimes."
Shelton faces a maximum statutory penalty of life in prison and a $250,000 fine for his guilty plea to the hate crime charge. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The investigation is being conducted by the ATF, the Plano Police Department, and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
Four People Charged in Mortgage Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A real estate investor, a builder, a mortgage loan officer, and a real estate settlement attorney were arrested today and charged with using “straw buyers” to fraudulently obtain mortgage loans from a bank, Acting U.S. Attorney William E. Fitzpatrick announced.
Victor Santos, a/k/a “Vitor Santos,” 57, of Wachtung, New Jersey; Arsenio Santos, a/k/a “Gaspar Santos,” 50, of Warren, New Jersey; Fausto Simoes, 64, of Millington, New Jersey; and, Raquel Casalinho, 37, of Union, New Jersey, are charged by complaint with one count each of conspiracy to commit bank fraud. They are expected to appear at 2 p.m. today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint:
From September 2007 through November 2008, Victor Santos, a real estate investor; Arsenio Santos, a builder and Victor’s cousin; Casalinho, a junior home mortgage consultant at the victim bank and Victor’s niece; and Simoes, a real estate settlement attorney, and others allegedly conspired to fraudulently obtain mortgage loans with a total value of more than $5 million.
Victor Santos, Arsenio Santos, and their conspirators allegedly recruited straw buyers to purchase properties in Newark and obtained their identifying information, including Social Security cards and drivers’ licenses. A “straw buyer” was an individual who purchased a property for another in order to conceal the identity of the actual purchaser, usually in exchange for a fee.
In exchange for the use of the straw buyers’ identity and credit history, Victor Santos, Arsenio Santos, and others allegedly agreed to pay each of the straw buyers a fee of approximately $5,000, provide the straw buyer’s down payment and cash required for closing, secure tenants to lease the purchased property and make the mortgage payments on each of the fraudulently obtained mortgages. These secret agreements were not disclosed to the bank.
In accordance with Victor Santos’ instructions, the straw buyers’ information was provided to Casalinho and was used to prepare fraudulent mortgage loan applications that contained a variety of false statements, including the identity of the actual buyer. For the two representative schemes highlighted in the complaint, Casalinho, Victor Santos, Arsenio Santos, and their conspirators prepared and submitted mortgage applications containing false information to the bank and obtained loans totaling more than $900,000. The conspirators allegedly arranged transactions for the Newark properties whereby the straw buyers would nominally purchase the properties for far more than the sellers had agreed to sell them, and the conspirators kept the difference between the contract price and the amounts the sellers received.
Simoes was the closing attorney on approximately 10 of the fraudulent transactions and signed and certified as true the final settlement statements. These statements falsely stated that the cash required for closing for each transaction came from the straw buyer. In fact, Victor Santos and his conspirators provided those funds to Simoes and the funds were deposited into Simoes’ attorney trust account. For certain transactions, a shell company – whose bank account was controlled by Victor Santos and a conspirator and to which funds from fraudulently obtained mortgage loans were disbursed – was the source of the cashier’s checks given to Simoes to fund the buyer’s cash required at closing. For other transactions, down payments came from an account owned and controlled by Arsenio Santos and Victor Santos, the proceeds of the mortgage loan itself after funding or closing, or from the proceeds of a previously obtained fraudulent loan.
The conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross gain to the defendants or twice the gross loss to others whichever is greater.
Acting U.S. Attorney Fitzpatrick credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher of the Newark office, with the investigation leading to today’s charges.
The government is represented by Special Assistant U.S. Attorneys Kevin DiGregory and Charlie Divine and Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office’s Economic 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.
Fort Worth Man Admits to Child Sex TraffickingRead the Press Release
DALLAS — Marquist Fulcher, aka “Keezie,” 28, of Fort Worth, Texas, pleaded guilty yesterday before U.S. Magistrate Judge Renee Harris Toliver, to one count of conspiracy to commit child sex trafficking, announced U.S. Attorney John Parker of the Northern District of Texas.
Fulcher faces a maximum penalty of up to life in prison and a $250,000 fine. Fulcher will remain in custody pending sentencing which is set for January 31, 2018.
In May 2017 a federal grand jury in Dallas returned an indictment charging Fulcher along with Chapoleon Fischer, aka “Kidd,” 28, Shatara Armstrong, 31, Marcus Speed, 26, and Tiffany Gideon, 22 with conspiracy to engage in child sex trafficking.
According to plea documents filed in Fulcher’s case, in early 2015, Fulcher began acting as a pimp over Gideon, and eventually several other young girls and women. Specifically, between 2015 and October l, 2016, he facilitated the commercial sex acts of thirteen-year-old Jane Doe 1, seventeen-year-old Jane Doe 2 and seventeen-year-old Jane Doe 4, among others. In late 2015, Armstrong began assisting Fulcher in his prostitution enterprise. Fulcher and Armstrong rented rooms at various hotels for Jane Doe 1, Jane Doe 2 and Jane Doe 4, and others, to use to engage in commercial sex acts. Both Fulcher and Armstrong knew these girls were underage because they told them. Fulcher and Armstrong also created and posted advertisements on the commercial sex website Backpage.com for the girls and women, who in turn gave the proceeds from their commercial sex acts to Fulcher.
Fulcher also worked with other pimps, including Speed and Fischer, as part of a sex trafficking enterprise. The organization recruited victims in various ways, including finding them on the internet. Members of the group would trade girls amongst themselves as well. The pimps in this organization, including Fulcher, used violence and threats of violence as a means to control the victims.
The Fort Worth Police Department and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Trafficking Taskforce, investigated the case. Assistant U.S. Attorneys Cara Foos Pierce, Myria Boehm and P.J. Meitl are prosecuting.
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Former Tribal Executive Sentenced to Federal Prison for EmbezzlementRead the Press Release
United States Attorney Randolph J. Seiler announced today that a former executive board member of the Big Coulee District of the Sisseton-Wahpeton Oyate Tribe was sentenced in federal court on October 13, 2017 to 3 months of imprisonment. Ann German, 59, of Peever, was also ordered to pay restitution in the amount of $11,475, and to serve three years of supervised release after serving her prison sentence.
According to court documents, from approximately June 2010 through March 2013, German and her co-defendants conspired to embezzle, steal, and knowingly convert to their own use funds from the Big Coulee District of the Sisseton-Wahpeton Oyate Tribe, an Indian tribal organization. The Big Coulee District is a political subdivision of the Tribe. German was an employee of the District, and her co-defendants were all elected executive board members of the District at the time.
During the conspiracy, they stole a total of $81,542.50 from the District. German received $11,475 of the stolen funds and used the funds for her own purposes.
The investigation was conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Tribal Executive Sentenced to Federal Prison for EmbezzlementRead the Press Release
United States Attorney Randolph J. Seiler announced today that a former executive board member of the Old Agency District of the Sisseton-Wahpeton Oyate Tribe was sentenced in federal court to 6 months of imprisonment. Leslie Barse, Sr., 74, of Peever, South Dakota, was also ordered to pay restitution in the amount of $147,312, and to serve three years of supervised release after serving his prison sentence.
According to court documents, beginning on or about January 20, 2011, and continuing through March 9, 2013, in the District of South Dakota and elsewhere, Leslie Barse, Sr. formed an agreement with others to embezzle, steal, and knowingly convert to their own use, funds from the Old Agency District of the Sisseton Wahpeton Oyate Tribe (“Tribe”), an Indian tribal organization. Barse joined the agreement knowing its illegal purpose. The Old Agency District (“District”) is a subdivision of the Tribe.
Barse, among others, were elected executive board members of the District. During the relevant time period, the District's executive board members were entitled to receive a monthly stipend for their service. From approximately January 2011 through March 2013, Barse and others stole money from the District by writing checks to themselves for payroll, stipends, assistance, travel, and other miscellaneous reasons. Barse and his co-defendants stole a total of $360,499 from the District. The Defendant received $147,312 of the stolen funds and used the funds for his own purposes.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Cornell Student Pleads Guilty to Loan FraudRead the Press Release
SYRACUSE, NEW YORK – Cavya Chandra, 26, of Carmel, Indiana, pled guilty today in federal court in Syracuse to one count of student loan fraud, announced Acting United States Attorney Grant C. Jaquith and Debbi Mayer, Assistant Special Agent in Charge, U.S. Department of Education-Office of Inspector General (ED OIG), Northeastern Regional Office.
As part of her guilty plea, Chandra admitted that between 2008 and 2014 she obtained admission to, and attended, three universities—Carnegie Mellon University in Pittsburgh, Pennsylvania, Cornell University in Ithaca, New York, and Indiana University-Purdue University Indianapolis (“IUPUI”)—by forging various documents, including academic transcripts and letters of recommendation. The charge to which Chandra pled guilty relates to her fraudulent acceptance of federal student loan money while attending Cornell, but her written plea agreement lays out Chandra’s broader pattern of defrauding several universities.
As part of her guilty plea, Chandra admitted that in 2008 she was denied admission to the freshman class at Cornell University, after which she applied to Carnegie Mellon University. In making that application, Chandra submitted a forged letter of recommendation from a high school teacher. Unaware of this forgery, Carnegie Mellon accepted Chandra’s application and admitted her as a student in the fall of 2009.
In February 2010, during her second semester at Carnegie Mellon, Chandra applied for admission to Cornell as a transfer student. In her transfer application, Chandra submitted a forged transcript to Cornell showing, falsely, that she had received a perfect 4.0 Qualified Point Average (“QPA”) during the fall 2009 semester at Carnegie Mellon. In reality, Chandra had actually received a much lower QPA of 2.79 that semester. Chandra also submitted to Cornell a forged transcript that falsely inflated her high school grades as well as another forged letter of recommendation from a high school teacher.
Unaware of Chandra’s fraud, Cornell admitted Chandra as a transfer student starting in the fall 2010 semester. While enrolled at Cornell, Chandra ultimately received more than $130,000.00 in financial aid, much of which was federal direct student loan money provided by the United States Department of Education. Cornell also provided tens of thousands of dollars in grant assistance to Chandra during her time as a student at Cornell.
In 2013, while still enrolled at Cornell, Chandra began the process of applying for medical school through the American Medical College Application Service (“AMCAS”). As part of her medical school application, Chandra submitted forged transcripts from Carnegie Mellon and from Cornell.
AMCAS reported to Cornell that it suspected Chandra had submitted a fraudulent transcript, and Cornell launched an internal investigation, during which it uncovered Chandra’s previous admissions fraud. When confronted by a university official, Chandra admitted that she had falsified information in her transfer application, and Cornell expelled Chandra in November 2013.
Following her expulsion from Cornell, Chandra applied for admission as a transfer student to Indiana University-Purdue University Indianapolis (IUPUI). In doing so, Chandra again submitted forged copies of her Carnegie Mellon and Cornell transcripts, both of which contained falsely inflated grades. IUPUI admitted Chandra as a transfer student and gave her credit for a number of classes that she did not actually take or pass at Cornell. IUPUI conferred a bachelor’s degree on Chandra in 2015. When Chandra’s fraud came to light the following year, IUPUI rescinded Chandra’s degree.
The charge filed against Chandra carries a maximum sentence of one year in prison, a fine of up to $100,000, and a term of supervised release of up to one year. Chandra will be sentenced at a date not yet scheduled by United States Magistrate Judge David E. Peebles. Judge Peebles will formulate a sentence based on the particular statute Chandra is charged with violating, the U.S. Sentencing Guidelines, and other factors. In this case, however, Chandra and the United States have agreed in their plea agreement to recommend that Judge Peebles impose a sentence of 5 years of Probation during which Chandra would be required to disclose her plea agreement and criminal conviction to any and all universities she attends while on probation, to disclose to her probation officer any new applications for financial aid, and to abide by an existing repayment agreement with Cornell University requiring her to pay Cornell an outstanding financial aid balance of $70,145.81. The parties have also agreed to recommend that Chandra pay a fine of $1,000 as part of her sentence.
This case was investigated by the U.S. Department of Education-Office of Inspector General with assistance from Cornell University, and was prosecuted by Assistant U.S. Attorney Michael F. Perry.
Former Bookkeeper Indicted for Stealing Monies through Fraudulent Means and Impersonation of a Federal OfficerRead the Press Release
Jackson, TN – Krystle Sheals, 32, of Marion, Arkansas, has been indicted on federal charges of devising a scheme to defraud and obtain money and funds through false pretenses and the impersonation of a Special Agent with the Federal Bureau of Investigation. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the indictment today.
Sheals, a former bookkeeper with Nichols Fire and Security (NFS) in Memphis, Tennessee, is charged with using her access to her employer’s bank accounts to pay personal bills and expenses, including personal credit card payments, personal utility payments, car payments, school loan payments, and mortgage payments. While using NFS funds, Sheals is also charged with the purchase of an automobile, which she then gave to an individual in Henry County, Tennessee, and opening a retirement 401K account. The funds stolen amount to approximately $327,000.
Sheals is additionally charged with falsely assuming and pretending to be an officer and employee of the United States, namely a Special Agent of the Federal Bureau of Investigation (FBI). Sheals falsely stated to others that she was a federal agent; wore and possessed clothing, articles and insignia of the FBI; possessed and presented documents, business cards and identification purporting to be an FBI agent; and conducted interviews while falsely purporting to be an FBI employee.
A federal grand jury in Jackson, Tennessee returned an eleven-count indictment against Sheals on October 16, 2017, but the indictment remained under seal until Sheal’s initial court appearance. Agents with the Federal Bureau of Investigation arrested Sheals on October 17, 2017, in Shelby County, Tennessee.
If convicted, Sheals faces up the twenty years imprisonment on the wire fraud charges and up to three years imprisonment on the impersonation charges, in addition to up to three years supervised release and a $250,000 fine.
This case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew J. Wilson is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Florida Airplane Broker Convicted of Tax and Wire FraudRead the Press Release
A federal jury sitting in Miami, Florida, convicted a resident of Pompano Beach, Florida, of filing fraudulent tax returns, wire fraud and filing false monthly reports with the U.S. Probation Office, announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to evidence presented at trial, Timothy J. Beverley, 61, worked as an airplane broker at Majestic Jet Inc., a company in Pompano Beach that provided aircraft charters. From 2010 through 2013, Beverley stole more than $1.5 million from Majestic Jet by directing airplane escrow agents to wire funds from the sale of planes to nominee bank accounts that Beverley controlled. Beverley also stole funds directly from Majestic’s business bank accounts and used the money to pay for personal expenses including his boat and rent. Beverley did not report this income on his 2010 through 2013 personal tax returns. While working at Majestic Jet, Beverley was on supervised release stemming from his federal conviction for money laundering in January 2004. As a condition of his supervised release, Beverley was required to file monthly reports with the U.S. Probation Office that listed his net earnings from employment. Between November 2009 through October 2012, Beverley did not disclose the money he stole from Majestic Jet on his filed reports.
Sentencing is scheduled for Jan. 5, 2018 before U.S. District Court Judge Beth Bloom. Beverley faces a statutory maximum sentence of 20 years in prison for the wire fraud counts, three years in prison for each count of filing fraudulent returns and five years in prison for making false statements. Beverley also faces a period of supervised release, restitution, forfeiture, and monetary penalties.
Acting U.S. Attorney Greenberg and Deputy Assistant Attorney General Goldberg thanked special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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
Felon Charged with Illegal Gun Possession, Distributing Heroin and FentanylRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearms laws, Acting United States Attorney Soo C. Song announced today.
The six-count Indictment, returned on October 17, named Nigel Macaya Broadus a/k/a Nigel Washington a/k/a “Little Nige”, age 21, of Wilkinsburg, PA, as the sole defendant.
According to the Indictment, on April 30, 2015, May 4, 2015, and June 3, 2015, Broadus possessed with intent to distribute and distributed heroin. The Indictment further alleges that on April 25, 2017, Broadus possessed with intent to distribute fentanyl. The Indictment also alleges that Broadus was involved in a heroin and fentanyl dealing conspiracy from February 2017 through April 25, 2017. Lastly, the Indictment alleges that on April 25, 2017, Broadus possessed a 9 mm caliber semi-automatic Ruger pistol bearing serial number 33483389 and 9 mm ammunition after having been convicted of crimes punishable by more than one year in prison. Those cases include two (2) convictions for Illegal Possession of a Firearm.
The law provides for a maximum of 110 years imprisonment, a fine of up to $5,250,000, and at least 3 years of supervised release. 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 Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) conducted the investigation leading to the Indictment in this case with valuable assistance from the Wilkinsburg Police Department, the Monroeville Police Department and the Pennsylvania Office of the Attorney General.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal jury finds St. Albans man guilty of gun crimeRead the Press Release
CHARLESTON, W.Va. – A federal jury sitting in Charleston returned a guilty verdict yesterday in the trial of a St. Albans man for being a felon in possession of a firearm, announced United States Attorney Carol Casto. Cleveland McDowell Meador, IV, 43, was convicted following a one-day jury trial.
Witnesses for the United States testified that on May 10, 2017, Meador gave permission to officers with the St. Albans Police Department to search his home on Bard Avenue in St. Albans. During the search, an officer discovered a Hi-Point, Model C9, 9mm pistol in an air register vent in the ceiling of Meador’s home. After Meador’s arrest, law enforcement read him his Miranda rights and in a recorded interview, Meador admitted that he put the gun in the air register vent, that he was a convicted felon, and that he knew that he was not supposed to have a gun. Meador was prohibited from possessing any firearm under federal law because of a 2016 felony conviction in Kanawha County Circuit Court for third offense driving while license revoked for driving under the influence.
Meador faces up to 10 years in federal prison when he is sentenced on January 17, 2018.
The St. Albans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorneys Eric Bacaj and Clint Carte are in charge of the prosecution and tried the case before a federal jury. United States District Judge Joseph R. Goodwin presided over the trial.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Federal Prisoner Pleads Guilty to Mailing Threatening Letter to the PresidentRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces that Richard Jeremy Ware (42, Ocala) today pleaded guilty to a one-count indictment charging him with making threats against the President of the United States. Ware faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to court documents, on March 27, 2017, while an inmate at a federal prison in Sumter County, Ware wrote a letter in which he threatened to murder the President of the United States upon his upcoming release from custody. He added, “I assure you that I am serious[!]” After completing the letter, Ware submitted it for delivery by the Postal Service. When a corrections officer subsequently discovered the letter, he confronted Ware about the threat. Ware confirmed that he had written the letter and that it belonged to him.
This case was investigated by the U.S. Secret Service and the Federal Bureau of Prisons. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Farmington Woman Pleads Guilty to an Illegal Gambling OperationRead the Press Release
St. Louis, MO – Carol Jean Hazer, 60, of Farmington, pled guilty to running an illegal gambling business and filing false tax returns that failed to list her income from the gambling business. She appeared today before U.S. District Judge Henry Autrey and set her sentencing for January 17, 2018.
According to her plea agreement, Hazer organized and ran an illegal high stakes sports betting operation, in part by utilizing internet websites. She admitted to engaging in money laundering and unlawful monetary transactions, including the purchase of a house and a vehicle using the proceeds of their crimes. Hazer also filed false tax returns trying to conceal the income from the illegal gambling business. The gambling business accrued nearly $500,000 in revenue during its operation.
Hazer now faces up to 20 years in prison and/fines up to $500,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Gwen Carroll is handling the case for the U.S. Attorney’s Office.
Eleven Men Charged in $1 Million Cross-Country Scheme to Defraud National Cellular ProviderRead the Press Release
NEWARK, N.J. – Eleven men in New York, Connecticut, North Carolina and Florida were charged today for their roles in a scheme that used stolen identities to order smartphones and other electronic goods and then paid drivers with a parcel delivery company to divert those goods to members of the conspiracy, Acting U.S. Attorney William E. Fitzpatrick announced.
Eight defendants were arrested this morning. Arrantes Garrincha Green, a/k/a “Don Gucci,” a/k/a “Gucci,” 39, of Margate, Florida, and Helton Arando Mallette, 27, of Miami, Florida, will appear this afternoon before U.S. Magistrate Judge Edwin G. Torres in Miami federal court. Omar Kimani Forsythe, a/k/a “Biggs,” 26, and Elvis Anthony Prehay, 43, both of Tamarac, Florida, will appear before Judge Torres tomorrow.
Sheldon Andre Wellington, a/k/a “Shellinz,” 35, of Rockville Center, New York, and Kindley Michel, 36, of Spring Valley, New York, will appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
Troy Linton Cooper, 35, of East Hartford, Connecticut, will appear this afternoon before U.S. Magistrate Judge Robert Richardson in Hartford federal court. Dashawn Brown, 25, of Raleigh, North Carolina, will appear this afternoon before U.S. Magistrate Judge James E. Gates in Raleigh federal court.
Andre Donovan Duffas, 27, of Plantation, Florida, Jermaine Wilson, a/k/a “Budds,” 32, of Nanuet, New York, and Oneil Gentles, a/k/a “Daffy,” 40, of Bronx, New York, remain at large.
All 11 defendants are charged by indictment with one count of wire fraud conspiracy and one count of conspiracy to transport stolen goods in interstate commerce. Green is also charged with one count of aggravated identity theft.
According to the indictment:
From June 2015 through June 2017, the defendants and others, led by Green, allegedly conspired to steal electronic equipment, including new smartphones, from a national cellular service provider.
Members of the conspiracy used stolen personal identifiers and debit and credit card information to place orders with the victim company. Many of the orders were allegedly made using two cellular phones associated with Green.
Afterwards, members of the conspiracy, including Green, Duffas, Mallette, Prehay, Wellington, and Wilson, transmitted anticipated delivery dates and locations of the fraudulently-ordered products to other conspirators who were employed as drivers with a major parcel delivery company. These drivers, including Brown, Cooper and Michel, were paid to divert the products mid-delivery to other members of the conspiracy, including Duffas, Forsythe, Gentles, Mallette, Prehay, Wellington, and Wilson.
Proceeds generated through the scheme were shared by wire transfer or depositing the funds in designated bank accounts.
The scheme compromised the identities of hundreds of residents in multiple municipalities across multiple states, including Upper Saddle River, New Jersey, and caused losses in excess of $1 million to the victim company.
The count of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison. The count of conspiracy to commit interstate transportation of stolen property carries a maximum potential penalty of five years in prison. Both counts carry a potential fine of $250,000, or twice the gross gain or loss from the offense. The aggravated identity theft count carries a mandatory sentence of two years in prison, which must be served in addition to any sentence imposed.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked the Upper Saddle River Police Department, the Bergen County Prosecutor’s Office, the NYPD, the Westchester County District Attorney’s Office, the West Hartford Police Department and the Connecticut State’s Attorney’s Office, Hartford Judicial District, for their assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office General Crimes Unit in Newark.
Dr. Gary Marder Charged with Obstruction of a Federal Criminal Investigation and Health Care Fraud SchemeRead the Press Release
Gary L. Marder, D.O., 60, a physician residing in Palm Beach County and the owner and operator of the Allergy, Dermatology & Skin Cancer Centers in Port St. Lucie and Okeechobee, appeared in federal court for his initial appearance on an Information, which charges Dr. Marder with obstruction of a criminal health care investigation and health care fraud.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, Patrick L. Fletcher, Special Agent in Charge, U.S. Railroad Retirement Board, Inspector General (RRB-OIG), and Scott Rezendes, Special Agent in Charge, United States Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.
According to the Information, Dr. Marder is charged with obstructing the investigation of federal health care fraud by delivering falsified and altered patient files that had been subpoenaed by a federal grand jury and delivered to a Special Agent of the Federal Bureau of Investigation. Dr. Marder is also charged with having submitted approximately $350,000 in false claims for the services of a medical physicist to health care benefits programs.
If convicted, Dr. Marder faces a possible maximum statutory sentence of five years’ imprisonment for obstruction of a criminal health care investigation; and, ten years’ imprisonment for health care fraud.
At Dr. Marder’s initial appearance the Magistrate Judge released Dr. Marder on bond. The Magistrate Judge set a $1 million personal surety bond co-signed by Dr. Marder’s wife, surrender of Dr. Marder’s passport, and other standard conditions.
Mr. Greenberg commended the investigative efforts of the FBI, HHS-OIG, DCIS, RRB-OIG and OPM-OIG. This case is being prosecuted by Assistant U.S. Attorney Ellen L. Cohen.
An information is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
Doctor Charged in Compounding Pharmacy Fraud SchemeRead the Press Release
Hattiesburg, Miss – A Biloxi-based physician was charged today for his role in a multi-million dollar scheme to defraud TRICARE, the health care benefit program serving our nation’s military, veterans, and their respective family members.
U.S. Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, and IRS-Criminal Investigation Special Agent in Charge Jerome McDuffie made the announcement.
Albert Diaz,M.D., of Ocean Springs, Mississippi, was charged today in a sixteen-count indictment in the Southern District of Mississippi, and is scheduled to make his initial appearance before U.S. Magistrate Judge John Gargiulo on October 31, 2017, at 2:30 p.m. The indictment charges Diaz with one count of conspiracy to commit health care fraud and wire fraud; four counts of wire fraud; one count of conspiracy to distribute and dispense a controlled substance; four counts of distributing and dispensing of a controlled substance; one count of conspiracy to falsify records in a federal investigation; and, five counts of falsification of records in a federal investigation.
The indictment alleges that Diaz participated in a scheme to defraud TRICARE by prescribing medically unnecessary compounded medications, some of which included Ketamine, a controlled substance, to individuals without first examining the individuals for the purpose of having a Hattiesburg-based compounding pharmacy dispense these medically unnecessary compounded medications, and to have TRICARE reimburse the compounding pharmacy for dispensing the medications. According to the indictment, between October 2014 and December 2015, TRICARE reimbursed the pharmacy more than $2.3 million for the medications prescribed by Diaz. Additionally, the indictment alleges that in response to an audit conducted by TRICARE of these prescriptions signed by Diaz, Diaz submitted falsified patient records indicating that he had examined these individuals prior to prescribing these compounded medications.
This indictment has been designated as a related prosecution to two cases charged earlier this year in the Southern District of Mississippi. Jason May, the pharmacist-in-charge of Advantage Pharmacy, pled guilty on July 25, 2017, to conspiracy to commit health care fraud and money laundering regarding a scheme to defraud health care benefit programs, including TRICARE, of more than $190 million. Gerald Schaar, a marketer, pled guilty on July 25, 2017, to conspiracy to commit health care fraud regarding a scheme to defraud TRICARE of more than $2.3 million.
If convicted of all counts, Diaz faces 305 years in jail and fines up to $7.5 million.
The case is being handled by the United States Attorney’s Office for the Southern District of Mississippi and the Fraud Section of the Criminal Division of the United States Department of Justice. The case is being investigated by the Federal Bureau of Investigation, Internal Revenue
Service Criminal Investigations, Department of Defense Criminal Investigative Service, and other government agencies.
The public is reminded that an indictment is merely an allegation and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Hattiesburg, Miss – A Biloxi-based physician was charged today for his role in a multi-million dollar scheme to defraud TRICARE, the health care benefit program serving our nation’s military, veterans, and their respective family members.
U.S. Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, and IRS-Criminal Investigation Special Agent in Charge Jerome McDuffie made the announcement.
Albert Diaz,M.D., of Ocean Springs, Mississippi, was charged today in a sixteen-count indictment in the Southern District of Mississippi, and is scheduled to make his initial appearance before U.S. Magistrate Judge John Gargiulo on October 31, 2017, at 2:30 p.m. The indictment charges Diaz with one count of conspiracy to commit health care fraud and wire fraud; four counts of wire fraud; one count of conspiracy to distribute and dispense a controlled substance; four counts of distributing and dispensing of a controlled substance; one count of conspiracy to falsify records in a federal investigation; and, five counts of falsification of records in a federal investigation.
The indictment alleges that Diaz participated in a scheme to defraud TRICARE by prescribing medically unnecessary compounded medications, some of which included Ketamine, a controlled substance, to individuals without first examining the individuals for the purpose of having a Hattiesburg-based compounding pharmacy dispense these medically unnecessary compounded medications, and to have TRICARE reimburse the compounding pharmacy for dispensing the medications. According to the indictment, between October 2014 and December 2015, TRICARE reimbursed the pharmacy more than $2.3 million for the medications prescribed by Diaz. Additionally, the indictment alleges that in response to an audit conducted by TRICARE of these prescriptions signed by Diaz, Diaz submitted falsified patient records indicating that he had examined these individuals prior to prescribing these compounded medications.
This indictment has been designated as a related prosecution to two cases charged earlier this year in the Southern District of Mississippi. Jason May, the pharmacist-in-charge of Advantage Pharmacy, pled guilty on July 25, 2017, to conspiracy to commit health care fraud and money laundering regarding a scheme to defraud health care benefit programs, including TRICARE, of more than $190 million. Gerald Schaar, a marketer, pled guilty on July 25, 2017, to conspiracy to commit health care fraud regarding a scheme to defraud TRICARE of more than $2.3 million.
If convicted of all counts, Diaz faces 305 years in jail and fines up to $7.5 million.
The case is being handled by the United States Attorney’s Office for the Southern District of Mississippi and the Fraud Section of the Criminal Division of the United States Department of Justice. The case is being investigated by the Federal Bureau of Investigation, Internal Revenue
Service Criminal Investigations, Department of Defense Criminal Investigative Service, and other government agencies.
The public is reminded that an indictment is merely an allegation and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Complaint Filed Seeking A Civil Injunction Against Group Calling Itself the Uinta Valley Shoshone TribeRead the Press Release
SALT LAKE CITY -- The U.S. Attorney’s Office in Salt Lake City filed a civil complaint Wednesday morning against a group that calls itself the “Uinta Valley Shoshone Tribe (UVST)” and three of its officers seeking an injunction to stop what the United States believes to be wire fraud.
The law allows the United States to seek a civil injunction to stop wire fraud while it is conducting further investigations. The United States seeks to enjoin the defendants from selling hunting and fishing licenses that purportedly give hunters and anglers the right to hunt and fish on the Uintah and Ouray Reservation. The Ute Tribe is the only tribal entity authorized to issue hunting and fishing licenses within the reservation. The Uinta Valley Shoshone Tribe is not recognized by the United States and has no legal authority over the lands or resources within the Uintah and Ouray Reservation.
Named in the complaint against the UVST are Dora Van, chairwoman; Ramona Harris, director; and Leo LeBaron, wildlife director; and others who are working in active concert with the defendants to issue and use hunting and fishing licenses on Ute Tribal land over which the UVST has no jurisdiction. The Ute Tribe has not delegated any of its authority over fish and wildlife to the defendants in the case.
According to the complaint, in late September 2016, Ute Fish and Wildlife officers and Utah Division of Wildlife Resources officers began receiving information regarding the UVST selling hunting and fishing licenses for their purported members’ use in taking wildlife from Ute Tribal Trust Lands of the Uintah and Ouray Reservation. UVST sells these licenses for $25, the complaint alleges. On the license application form, the defendants list a website and an email address for the UVST, and falsely state that the UVST is “a Federal Corporation d/b/a the ‘Ute Indian Tribe” of the Uinta and Ouray Reservations, Utah.” Some of those who have obtained licenses from UVST have used them to take deer, elk, and fish from the Ute Tribal Lands. The defendants have erected “No Trespass” signs on Ute Tribal Trust Lands and, according to the complaint, informed those who buy licenses that the Ute Tribal Trust Lands actually belong to the UVST and no entity can prevent licensees from hunting or fishing on those lands.
The civil action filed today asks the federal court to declare that the defendants have engaged in wire fraud by selling the licenses, preliminarily and permanently enjoin the defendants from selling or issuing hunting and fishing licenses, declare that the UVST hunting and fishing licenses that have been issued are null and void, preliminarily and permanently enjoin the use of licenses that have been issued, and award any other relief that the Court deems appropriate.
CodeSmart Holdings, Inc. CEO and Attorney Plead Guilty to Participating in a $86 Million Market Manipulation SchemeRead the Press Release
Earlier today, Ira Shapiro, the former Chief Executive Officer of CodeSmart Holdings, Inc. (“CodeSmart”), a publicly-traded company, and Darren Ofsink, a Manhattan attorney and founder of Ofsink LLC, pleaded guilty to one count of conspiracy to commit securities fraud for their participation in a $86 million market manipulation scheme involving CodeSmart, which traded under the ticker symbol ITEN. The plea was entered before United States District Judge Eric N. Vitaliano at the federal courthouse in Brooklyn.
The guilty pleas were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to court filings, in early May 2013, the defendants, along with their charged co-conspirators, engineered a reverse merger of CodeSmart, a private company, with a public shell company. After gaining control of CodeSmart’s three million purportedly unrestricted shares, the co-conspirators on two occasions fraudulently inflated CodeSmart’s share price and trading volume and then sold their shares at a profit when the price reached desirable levels — a scheme commonly referred to as a “pump and dump.” The first pump and dump occurred between approximately May 13, 2013 and August 21, 2013. During this period, the co-conspirators manipulated CodeSmart’s stock price by raising it from $1.77 to a high of $6.94, before causing it to drop to $2.19. The second pump and dump occurred between approximately August 21, 2013 and September 20, 2013. During this period, the defendants and their co-conspirators manipulated CodeSmart’s stock price by raising it from $2.19 to a high of $4.60, before causing it drop to $2.13.
CodeSmart’s market capitalization at its highest closing price of $6.94 per share on July 12, 2013 was $86,347,800. However, that same day, CodeSmart filed with the U.S. Securities and Exchange Commission an amended Form 10-K, in which it listed only $6,000 in total assets, $7,600 in revenue, and a net loss of $103,141. By December 30, 2013, CodeSmart’s stock was trading at $0.66 per share, and on July 9, 2014, its stock closed at $0.01 per share.
When sentenced, Shapiro and Ofsink each face up to five years in prison, a fine and the forfeiture of criminal proceeds. They will also be required to make full restitution to their victims.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Shannon C. Jones, Patrick T. Hein, and Mark Bini are in charge of the prosecution with assistance provided by Assistant United States Attorney Claire Kedeshian of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendants:
IRA SHAPIRO
Age: 56
Residence: Congers, New YorkDARREN OFSINK
Age: 48
Residence: Merrick, New YorkE.D.N.Y. Docket No. 14-CR-399 (S-1) (ENV)
Clairton Woman Admits Passing Counterfeit Money in Western PennsylvaniaRead the Press Release
PITTSBURGH – A resident of Clairton, Pennsylvania, pleaded guilty in federal court to charges of conspiracy and passing and uttering counterfeit money, Acting United States Attorney Soo C. Song announced today.
Seleste M. Foster, 25, of Clairton, PA pleaded guilty to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that between May 16, 2015 to June 12, 2015, Foster conspired and passed counterfeit $100, $50, and $20 FRNs throughout the Western District of Pennsylvania.
Judge Fischer scheduled sentencing for February 16, 2018 at 9 a.m. The law provides for a total sentence of 45 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Foster.
Citizen of the Dominican Republic Sentenced to Prison for Illegally Reentering U.S. after DeportationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LUIS MANUEL RODRIGUEZ BURGOS, 36, a citizen of the Dominican Republic, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 15 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, RODRIGUEZ BURGOS was admitted to the U.S. as a lawful permanent resident in 1995. In September 2005, RODRIGUEZ BURGOS was convicted in Arizona of attempted transportation of narcotic drugs for sale and was sentenced to more than three years of imprisonment. The offense involved 10 kilograms of cocaine and more than 170 grams of heroin concealed within a hidden compartment in the vehicle in which RODRIGUEZ BURGOS was travelling. In August 2006, he was deported from the U.S. to the Dominican Republic.
In August 2012, local law enforcement arrested RODRIGUEZ BURGOS in New York City for driving under the influence, and subsequently alerted federal immigration authorities. In October 2012, RODRIGUEZ BURGOS was again removed to the Dominican Republic.
RODRIGUEZ BURGOS illegally reentered the U.S. in late 2012. On October 27, 2015, he was arrested by the Connecticut Statewide Narcotics Task Force in Bridgeport for distributing heroin, cocaine and methamphetamine. At the time of his arrest, RODRIGUEZ BURGOS possessed a fraudulent Puerto Rico driver’s license, in the name of another individual, which he had purchased for $100.
RODRIGUEZ BURGOS has pleaded guilty in state court to drug sale and conspiracy offenses and is scheduled to be sentenced on October 20 to an agreed upon sentence of seven years of incarceration, with a mandatory minimum of five years, to be followed by five years of special parole.
Judge Underhill imposed the federal sentence to run concurrently with RODRIGUEZ BURGOS’ state sentence.
On July 26, 2017, RODRIGUEZ BURGOS pleaded guilty in federal court to one count of illegal reentry of a removed alien.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chiropractor Pleads Guilty and Sentenced for Making False Claims to MedicareRead the Press Release
James Briggs, 46, of Brentwood, Missouri, pled guilty to an information charging one-count of Making a False Claim against the United States. Sentencing was held immediately after the plea hearing in the United States District Court for the Southern District of Illinois, Don Boyce, United States Attorney for the Southern District of Illinois, announced today. The Court sentenced Briggs to six months of home confinement, five years of probation, a $100 special assessment, a $10,000 fine, and $8,221.30 in restitution.
During his plea hearing, Briggs, a chiropractic physician licensed in Illinois, who operated clinics in Jerseyville and Wood River, admitted that he submitted a false claim for an ankle orthotic to Medicare on October 4, 2013. Briggs agreed to pay mandatory restitution to Medicare for all ankle orthotic claims totaling $5,338.25. Briggs also agreed to pay voluntary restitution to other health care benefit plans including Blue Cross Blue Shield of Illinois, Blue Cross Blue Shield of Missouri, and United Healthcare for all ankle orthotic claims totaling $2,883.05.
The Southern Illinois Health Care Fraud Task Force conducted the investigation with active participation by the U.S. Department of Health and Human Services - Office of Inspector General; the U.S. Postal Inspection Service; the U.S. Office of Personnel Management, Office of the Inspector General; the United States Postal Service Office of Inspector General; the U.S.
Department of Labor – Office of Inspector General – Office of Labor Racketeering and Fraud Investigations; the U.S. Department of Labor Employee Benefits Security Administration; the Federal Bureau of Investigation; the Internal Revenue Service; the U.S. Defense Criminal Investigative Service; the U.S. Railroad Retirement Board, Office of Inspector General; and the National Insurance Crime Bureau. Assistant United States Attorneys Michael J. Quinley and Ranley R. Killian prosecuted the case.
Charleston man sentenced to federal prison for failing to register as a sex offenderRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to two years in federal prison for failing to register as a sex offender, announced United States Attorney Carol Casto. Hershel Vanhoose, 43, was also ordered to serve 10 years of federal supervised release following the completion of his prison sentence.
Vanhoose admitted that from early 2016 until his arrest on February 12, 2017, he failed to register as a sex offender as required by the Sex Offender Registration and Notification Act. On February 12, 2017, Vanhoose was arrested by the Charleston Police Department on an outstanding warrant for failure to update his registration in Ohio. Vanhoose was required to register as a sex offender because of a 2003 Ohio conviction for gross sexual imposition involving a minor.
The Charleston Police Department, the United States Marshals Service, and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. Chief United States District Judge Thomas E. Johnston imposed the sentence.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Charleston man pleads guilty to illegally possessing sawed-off shotgunRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal gun crime, announced United States Attorney Carol Casto. Joe Orville Fooce, III, 44, entered his guilty plea to possession of a shotgun with a barrel length less than 18 inches and an overall length less than 26 inches not registered to him in the National Firearms Registration and Transfer Record.
In July 2016, South Charleston police officers found Fooce unresponsive at an intersection. After Fooce was transported by medics, officers discovered the sawed-off shotgun in his backpack. Fooce admitted that he knew the firearm had been modified from its original length.
Fooce faces up to 10 years in federal prison when he is sentenced on January 17, 2018.
The South Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. The plea hearing was held before Chief United States District Judge Thomas E. Johnston.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Charleston man pleads guilty for stealing items from the University of Charleston and selling themRead the Press Release
CHARLESTON, W.Va. – A Charleston man caught stealing items from the campus of the University of Charleston and selling them on Amazon pleaded guilty today, announced United States Attorney Carol Casto. Adam St. Clair, 30, entered his guilty plea to mail fraud.
Between the summer of 2014 and approximately the fall of 2015, St. Clair secretly entered locked offices and rooms in buildings on the campus of the University of Charleston without permission or authority. He then stole textbooks and other items from inside those offices. St. Clair maintained an account with Amazon to offer textbooks, electronic equipment, and other goods he had stolen from the University of Charleston campus for sale over the internet. St. Clair had a page on Amazon’s website that he named “Robin Hood Literature.” As a seller of merchandise on Amazon, St. Clair certified that he had the legal right to sell the items advertised on his site. When someone would order a textbook from the site, St. Clair mailed the order to the customer. On one occasion in August of 2015, an employee of the University of Charleston ordered and received a textbook that had been stolen from her. St. Clair received over $6,000 for selling the stolen merchandise, and, as part of his plea agreement, agreed to pay $6,271 in restitution.
St. Clair faces up to 20 years in federal prison and a $250,000 fine when he is sentenced on January 10, 2018.
The Federal Bureau of Investigation, the United States Postal Inspection Service, and the University of Charleston Department of Public Safety conducted the investigation. Assistant United States Attorney R. Gregory McVey is handling the prosecution. United States District Judge Joseph R. Goodwin presided over the plea hearing.
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Carlsbad Felon Pleads Guilty to Federal Kidnapping and Firearms ChargesRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge John J. Durastanti of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Kent Waller of the Carlsbad Police Department (CPD) announced that Richard Fierro, 43, of Carlsbad, N.M., pleaded guilty yesterday afternoon in federal court in Las Cruces, N.M., to kidnapping and firearms charges. Fierro’s plea agreement recommends a sentence of 15 years in prison followed by a term of supervised release to be determined by the court.
Fierro is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Fierro was arrested in Nov. 2016, on a criminal complaint charging him violating the federal firearms laws on Oct. 28, 2016, in Eddy County, N.M. According to the complaint, Fierro forced two children into his vehicle at gunpoint, crashed the vehicle, and attempted to flee the scene before being arrested by CPD officers. Officers found a firearm, ammunition, and marijuana in Fierro’s vehicle during a search incident to arrest. During a subsequent search of Fierro’s residence pursuant to a search warrant, officers seized ammunition, suspected quantities of cocaine and heroin, and drug paraphernalia.
Fierro was indicted on Feb. 15, 2017, and was charged with kidnapping two victims and with being a felon in possession of a firearm and ammunition on Oct. 28, 2016, in Eddy County. According to the indictment, Fierro was prohibited from possessing firearms or ammunition because he previously had been convicted on cocaine trafficking, aggravated battery, possession of a firearm by a felon, and possession of cocaine base with intent to distribute.
During yesterday’s proceedings, Fierro pled guilty to the indictment. In entering the guilty plea, Fierro admitted that on Oct. 28, 2016, he forced the two juvenile victims into his vehicle based on his mistaken belief that he needed to kidnap them to protect his daughter from harm. Fierro further admitted kidnapping the two victims he drove around Carlsbad until he crashed into another vehicle and fled the scene. Fierro acknowledged possessing a firearm and ammunition during the kidnapping although he was prohibited from possessing firearms and ammunition due to his status as a convicted felon. Fierro remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Carlsbad Police Department. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
Car Salesman Sentenced on Drug and Money Laundering ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Richard Pham, 42, of Myrtle Beach, South Carolina, was sentenced last week in federal court on charges involving his illegal attempt to possess with intent to distribute two kilograms of cocaine and his participation in a money laundering scheme involving his car business. Court documents reflect that Pham was laundering money represented to be drug proceeds in new car purchases in Mobile, using undercover Homeland Security agents as nominees for the transactions. Pham’s business, Pham & Associates, would provide cash for the new car purchases, which were conducted in Mobile by undercover agents in their undercover names. Pham would then re-title the vehicles to himself, his business, or another entity, all in connection with a plan to sell the vehicles overseas as “used cars.” As a result of the undercover contacts with the federal agents, Pham introduced them to a co-conspirator in the car business, Nghia Le, who was also in the business of growing and distributing marijuana. During the investigation, Pham arranged to purchase two kilograms of cocaine through the undercover agents. He also made arrangements for others to distribute the drugs in South Carolina. Pham pled guilty to both charges in March of 2017.
United States District Court Judge William H. Steele sentenced Pham to 48 months of imprisonment, to be followed by a four-year term of supervised release. The judge ordered that sentences on the two charges be served concurrently. Pham will undergo treatment for drug abuse while in prison and as a condition of his supervised release. No fine was imposed, but the judge ordered that Pham pay $200 in special mandatory assessments. The judge also ordered the forfeiture of property used to facilitate the illegal activities for which Pham was convicted.
The case was investigated by the Alabama Law Enforcement Agency, the Department of Homeland Security Investigations, the Mobile County Sheriff’s Office, and the Myrtle Beach Police Department. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Camp Verde Man Sentenced to Prison for Abusive Sexual Contact of a MinorRead the Press Release
PHOENIX – On Monday, Rowan James Kickinghorse Rhodes, 25, of Camp Verde, Ariz., was sentenced by U.S. District Judge David G. Campbell to 13 months’ imprisonment, to be followed by eight years of supervised release with sex offender conditions. Rhodes had previously pleaded guilty to abusive sexual contact with a minor. At the time he committed the offense, Rhodes was on supervised release for a previous conviction for assault with a dangerous weapon. Judge Campbell revoked Rhodes’s supervised release and sentenced him to nine months’ imprisonment, to run concurrently with the newly imposed prison term.
In December 2016, Rhodes, an enrolled member of the Yavapai-Apache Nation, intentionally touched the minor victim, also an enrolled member. The abuse occurred within the boundaries of the Yavapai-Apache Nation Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai-Apache Nation Police Department. The prosecution was handled by Assistant U.S. Attorney Christina Covault, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8061-DGC/ CR-13-8055-DGC
RELEASE NUMBER: 2017-101_Rhodes
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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California Man Sentenced to over 11 Years in Prison for Drug Conspiracy and Distribution of MethamphetamineRead the Press Release
RENO, Nev. – A Rosemeade, California man was sentenced Tuesday to 135 months in prison for his involvement in a drug conspiracy to distribute methamphetamine in four states, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Martin Cisneros, aka “Moose,” 46, pleaded guilty to one count of conspiracy to possess with intent to distribute and one count to distribute at least 50 grams of actual methamphetamine. United States District Judge Larry R. Hicks presided over the sentencing hearing.
According to evidence presented in connection to his plea and sentencing, Cisneros supplied at least 12 pounds and up to 42 pounds of methamphetamine as part of a drug conspiracy in central California, Colorado, Hawaii, and Nevada. On May 2, 2014, in Whittier, Calif., Cisneros supplied methamphetamine to his co-conspirators, seven pounds of which went to Reno, Nev., where it was seized in its sale to an undercover agent for $102,000.
The investigation was conducted by the DEA and Assistant U.S. Attorney James E. Keller prosecuted the case.
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Bridgeport Man Pleads Guilty to Possessing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOVANNI REYES, 23, of Bridgeport, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of possession with intent to distribute heroin.
According to court documents and statements made in court, in late 2016, Bridgeport Police made three controlled purchases of heroin from REYES. On December 8, 2016, investigators conducted a court-authorized search of REYES’s Voight Avenue residence and seized more than 120 folds of heroin and a loaded 9mm handgun. The firearm had been reported stolen.
Judge Meyer scheduled sentencing for January 12, 2018, at which time REYES faces a maximum term of imprisonment of 20 years.
REYES has been detained since his federal arrest on January 25, 2017.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. REYES attended a call-in in 2015, and declined Project Longevity services that were offered to him.
This matter has been investigated by the Bridgeport Police Department, Connecticut State Police, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Vanessa Richards.
Arkansas Man Sentenced for Bomb Threats at Cedar County CourthouseRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Arkansas man was sentenced in federal court today for making bomb threats to the Cedar County Courthouse in an effort to cancel his own court hearing that he feared would send him to jail.
Phillip Ray Robison, Jr., 36, of Hartford, Arkansas, was sentenced by U.S. District Judge M. Douglas Harpool to two years and six months in federal prison without parole. The court ordered this federal sentence to be served consecutively to Robison’s sentence in a Cedar County, Mo., case.
On May 25, 2017, Robison pleaded guilty to one count of maliciously conveying false information related to explosive materials. Robison admitted that he made three separate bomb threats on two occasions in January 2016, each of which caused the evacuation of the Cedar County Courthouse in Stockton, Mo.
Robison called the court clerk for the Cedar County Courthouse on Jan. 11, 2016. Robison stated, “You better tell Judge Bickel to clear the courthouse cuz a bomb is going off at 2:30.” Law enforcement cleared everyone and searched the courthouse for the presence of an explosive or bomb. Law enforcement did not locate an explosive device in the courthouse, the building was reopened to the public, and the court docket was resumed.
Robison then called the clerk’s office a second time and said, “you screwed up,” indicating that law enforcement had missed the bomb during their original search. Once again the courthouse was closed and another search was conducted. Law enforcement again failed to find an explosive device during this second search. Due to the late hour, the remainder of the court docket was cancelled and rescheduled for a later date.
On the day of the bomb threat, a court bailiff observed Robison at the courthouse. The bailiff thought that Robison seemed nervous. Robison had been scheduled to appear in Judge Bickel’s court for a probation violation hearing following his prior conviction for distribution of illegal narcotics. Robison was concerned that he was going to be sent to the Missouri Department of Corrections for a 120-day sentence.
On Jan. 25, 2016, Robison called another bomb threat into the Cedar County Courthouse. The court was cleared and searched by law enforcement officers. No explosive device was located. When the court reopened to the public, Robison was first in line. Deputies who were aware of the circumstances of the first bomb threat recognized Robison.
Deputies asked Robison to step out of line to speak with them. Robison agreed to be interviewed and was taken to the sheriff’s office. Robison admitted that he had made both of the January 2016 bomb threats because he wanted his court hearing to be cancelled. Robison believed that if his hearing was held, the court would return him to jail, and he wanted to avoid returning to jail. Robison also told deputies that there were never any bombs.
According to court documents, Robison also had been scheduled to be in court on Dec. 14, 2015, but his hearing was postponed because he had a medical emergency and was transported to the hospital by ambulance. On that day, Robison’s vital signs were normal, but he advised medical personnel that he wanted to be transported to the hospital.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Cedar County, Mo., Sheriff’s Department and the FBI.
Alien Indicted on Illegal Reentry ChargeRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging OSCAR YOVANI SEVILLA SANTOS-CRUZ, age 42, of Honduras, with Illegal Reentry of a Deported Alien.
SANTOS-CRUZ, found in Wake County, is alleged to have been previously deported subsequent to a felony conviction (theft by shoplifting). Therefore, if convicted, he would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charge and allegation contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
ICE’s Enforcement Removal Operations are investigating the case.
Agents Seize 11 Kilos of Fentanyl, Meth and Heroin and Arrest Drug Distributor as He Returns to U.S.Read the Press Release
Late yesterday law enforcement agents at the Nogales, Arizona border crossing from Mexico to the United States arrested a California man linked to one of the largest fentanyl seizures in the Pacific Northwest, announced U.S. Attorney Annette L. Hayes. DANIEL GUERRERO, 28, of Palmdale, California, was identified as a source for Mexican cartel connected fentanyl, heroin and methamphetamine in late July 2017. GUERRERO entered into a drug deal with a person working with law enforcement that resulted in the seizure in August 2017 of 11 kilos of fentanyl, one kilo of heroin, and 12 pounds of methamphetamine. The drugs were seized from a mini-van parked at an apartment complex in Puyallup, Washington.
“As the Deputy Attorney General announced this week, black market fentanyl is a serious and growing health threat across this country,” said U.S. Attorney Annette L. Hayes. “This seizure of more than 11 kilos of fentanyl took millions of doses of a very dangerous drug off the streets and out of our western Washington communities. I commend law enforcement for their good work and for continuing to prioritize those who bring this poison into our communities.”
“Twenty four pounds of fentanyl hitting the streets of Tacoma and Seattle would have been my worst nightmare,” said DEA Special Agent in Charge Keith Weis. “The size of this shipment is extremely alarming because of the potential number of lethal doses and the deadly consequences it could have for those afflicted by opioid dependency.”
According to records filed in the case, GUERRERO was planning on selling the seized drugs for $350,000. GUERRERO left the California licensed mini-van at a Puyallup apartment and used a rental car to take his family to eastern Washington. Law enforcement seized the drugs and mini-van. GUERRERO quickly left Washington State for California and then traveled on to Mexico.
GUERRERO was charged by criminal complaint and when he attempted to return to the United States at Nogales, he was arrested on the warrant. He made his initial appearance today in Arizona and the criminal complaint was unsealed.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the U.S. Drug Enforcement Administration (DEA) Tacoma Resident Office, along with the Tahoma Narcotics Enforcement Team (TNET), which consists of the Washington Department of Corrections, Auburn Police Department, Bonney Lake Police Department Lakewood Police Department, Tacoma Police Department, Puyallup Police Department, and the Pierce County Sheriff's Office. The case was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA) and National Guard.
The case is being prosecuted by Assistant United States Attorney Marci L. Ellsworth.
A Berkeley County woman admits to her role in a heroin distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Hedgesville, West Virginia woman has admitted to her role in a heroin distribution operation, United States Attorney William J. Powell announced.
Donna Miller, age 28, pled guilty to one count of “Aiding and Abetting with the Intent to Distribute Heroin.” Miller admitted to aiding others in distributing heroin in Berkeley County and Baltimore, Maryland in June 2016.
Miller faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the cases on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, investigated
U.S. Magistrate Judge Robert W. Trumble presided.
Tuesday 17 October 2017
Wexford Man Sentenced to 10 Years in Prison for Conspiring to Traffic a Minor for SexRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania has been sentenced in federal court to 10 years imprisonment, followed by 20 years supervised release, on a charge of conspiracy to commit sex trafficking of children, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Daniel Teed, age 56, of Wexford, PA.
According to information presented to the court, the court was advised that from June 2015 to June 2016, in the Western District of Pennsylvania, Daniel Teed and another person knowingly entered into an agreement to conspire to recruit for sex trafficking a female minor who had not attained the age of 18 years.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation, the City of Pittsburgh Police Department, and the Allegheny District Attorney’s Office for conducting the investigation leading to the successful prosecution of Daniel Teed.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Waterloo Man Pleads Guilty to Unlawful Possession of Firearm and AmmunitionRead the Press Release
Wayne J. Jones, II, 38, from Waterloo, Iowa, has pleaded guilty to one count of unlawful possession of a firearm and ammunition as a convicted felon and unlawful drug user. Jones entered his plea of guilty yesterday in United States District Court in Cedar Rapids.
The one-count indictment filed on August 9, 2017, alleges that, on or about April 12, 2017, Jones possessed a 9mm handgun, several rounds of hollow point ammunition, and several rounds of 20-gauge shotgun ammunition. At the plea hearing yesterday, Jones admitted those items were seized from his apartment and possession pursuant to a federal search warrant. Jones also admitted he had a prior felony conviction and was an unlawful user of marijuana.
Jones faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and 3 years of supervised release following any imprisonment.
Jones is currently in the custody of the United States Marshals. A sentencing date has not yet been set.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02058-LRR.
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Virginia Beach Business Owner Pleads Guilty to $3.9 Million FraudRead the Press Release
NEWPORT NEWS, Va. – A Virginia Beach man pleaded guilty today to money laundering in connection with a fraud scheme that resulted in a loss of at least $3.9 million.
According to the statement of facts filed with the plea agreement, Edward Zinner, 58, operated Ocean Equity, a collection of businesses that engaged in credit card processing and merchant cash advances. In operating Ocean Equity, Zinner and others acting on his behalf, provided false representations to private investors/lenders to obtain over $4.5 million in funds.
In addition to the $4.5 million from private investors/lenders, Zinner obtained six business loans for Ocean Equity in the amount of $3 million. In obtaining these loans, Zinner falsely represented that the loans would not be used for personal, family, or household purposes. However, Zinner spent large amounts of company money on personal expenditures, including, travel, vehicle expenses, gambling, day-trading, mortgage payments, renovations to his personal residence, medical bills, personal credit cards, a rock band, and other expenditures. From 2011 to 2016, approximately $2 million was transferred from the Ocean Equity accounts to Zinner’s personal accounts.
Zinner closed down Ocean Equity in early 2016, and at the time he still owed at least $3.9 million in business loans and loans from private investors/lenders.
Zinner faces a maximum penalty of 10 years in prison when sentenced on Feb. 6, 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 Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after Senior U.S. District Judge Henry C. Morgan, Jr., accepted the plea. Assistant U.S. Attorney Brian J. Samuels and Special Assistant U.S. Attorney Bethany J. Lipman are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-3.
United States Attorney Minkler briefs military community at Camp AtterburyRead the Press Release
Discussed civil laws that protect the rights of military personnel
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler and his staff recently visited with members of the military community at Camp Atterbury to discuss their legal rights while serving our country.
“Military personnel deserve the chance to serve their country without needless distractions and unnecessary stressors,” said Minkler. “While they serve our country, it is our job to protect their rights against unscrupulous housing and financial practices, to protect their right to civilian employment after military service and to fight against those who would violate those rights.”
Minkler discussed three federal civil rights statutes–the Uniformed Services Employment and Reemployment Rights Act, Servicemembers Civil Relief Act and the Uniformed and Overseas Citizens Absentee Voting Act. Each statute protects service members from financial burden, employment discrimination and voting violations while they are in military service.
Minkler was joined at Atterbury by Tanya Kirwan and Andrew Braniff who currently serve as Assistant Directors of the Justice Department’s Servicemembers and Veterans Initiative (SVI). SVI coordinates with DOJ components and federal agencies to build comprehensive legal support and protection network focused on service members, veterans and their families.
According to Assistant United States Attorney Kelly Rota, the Southern District of Indiana’s lead attorney on civil rights issues, over 900,000 Hoosier Guard and Reservists have served since September 11, 2001, and protecting their rights is a top civil rights goal of the US Attorney’s Office.
More information about legal protections available to service members can be found at www.servicemembers.gov.
U.S. Files Lawsuit Against Husband-And-Wife Owners of Suburban Health Care Company for Allegedly Defrauding Medicare out of Millions of DollarsRead the Press Release
CHICAGO — The United States today filed a civil lawsuit against the husband-and-wife owners of a suburban Chicago health care company for allegedly falsely billing Medicare for millions of dollars in unnecessary or nonexistent services.
The complaint alleges that GATEWAY HEALTH SYSTEMS INC. and its owners, AJIBOLA AYENI and JOY H. TURNER-AYENI, violated the federal False Claims Act by seeking and receiving Medicare payments for home health services purportedly rendered to homebound individuals who were not actually in need of such services. The suit also alleges that DOCS AT THE DOOR P.C., a home-visiting physician company owned by Ajibola Ayeni, falsely certified the non-homebound individuals as in need of home-health services, and fraudulently “upcoded” home physician visits to the second highest billing level in order to increase compensation from Medicare.
The government’s complaint was filed today in U.S. District Court in Chicago. The government is intervening in a lawsuit that a private citizen initially filed under seal in 2013 pursuant to the qui tam, or whistleblower, provisions of the False Claims Act.
The government’s complaint was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; John P. Selleck, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General.
Ajibola Ayeni, 58, of Flossmoor, also faces separate criminal charges relating to his conduct while operating Docs at the Door. An eleven-count indictment returned earlier this year alleges that Ajibola Ayeni committed health care fraud from 2011 to 2015. Ayeni has pleaded not guilty to the criminal charges, and a trial date in federal court in Chicago has not yet been set.
According to the government’s suit, Docs at the Door and Gateway each claimed and were paid millions of dollars for services purportedly provided to Medicare beneficiaries. At the direction of the Ayenis, the companies created false documentation to cover up the fact they were claiming services not rendered, as well as services that were not medically necessary because the beneficiaries were not confined to the home, the suit states. The Ayenis’ fraud scheme netted them millions of dollars in federal health care funds to which they were not entitled, the suit states.
In addition to the alleged fraud scheme, the government’s suit contends that the Ayenis attempted to conceal certain assets from the government after learning of the investigation. In the summer of 2016, the Ayenis transferred several of their properties into trusts, the suit states. The transfers involved apartments in the Oakland and Edgewater neighborhoods of Chicago, a residence in Flossmoor, and two properties in Frankfort, according to the suit. The Ayenis “either intentionally transferred the properties to avoid paying a judgment to the United States for their fraud, or at a minimum, knew that they had incurred debts that they would not be able to pay,” the suit states. The suit asks the Court to void the property transfers on the basis of fraud.
The False Claims Act permits private individuals to sue for false claims on behalf of the government and to share in any recovery. The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover three times damages plus civil penalties ranging from $5,500 to $11,000 for each false claim submitted by the defendants.
The public is reminded that civil allegations are accusations only, and there has been no determination of liability. The government is represented in the civil case by Assistant U.S. Attorney Sarah J. North.
The public is reminded that the criminal charges against Ajibola Ayeni are not evidence of guilt. He is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. The government is represented in the criminal case by Assistant U.S. Attorney Stephen Chahn Lee.