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1 December 2017
Texas Man Wanted by Federal Authorities Pleads Guilty to Credit Card FraudRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Jose Carlos Terra Izquierdo (23, Amarillo, TX) has pleaded guilty to credit card fraud. He faces an enhanced penalty of up to 20 years in federal prison and has agreed to forfeit his computer media and to pay restitution to his victims. A sentencing date has not yet been set.
According to court documents, in 2016, Izquierdo was convicted of credit card fraud in the District of Nebraska. He was scheduled to turn himself in and begin his prison sentence in March 2017, but instead traveled to Florida in violation of his conditions of release. Federal authorities in Nebraska subsequently issued a warrant for his arrest. On March 2, 2017, Izquierdo was pulled over in Columbia County by the Florida Highway Patrol for an expired Texas tag. During a subsequent search of the vehicle, troopers located a credit card reader and stolen credit card information belonging to more than 50 victims. He faces the enhanced penalty as a result of his prior fraud conviction.
This case was investigated by the Florida Highway Patrol and the U.S. Secret Service - Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Stamford Man Charged with Federal Offenses in Connection with Securities Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that on November 20, a federal grand jury in New Haven returned a 39-count superseding indictment charging THOMAS J. CONNERTON, 65, of Stamford, with various offenses stemming from an investment scheme that defrauded individuals of more than $2 million.
On March 7, 2017, the grand jury returned an indictment charging CONNERTON with fraud and money laundering offenses stemming from the scheme. The superseding indictment charges CONNERTON with an additional count of tax evasion.
As alleged in the superseding indictment, CONNERTON was the founder, president, and CEO of Safety Technologies, LLC (“Safety Tech”), a Connecticut company that had its principal place of business at various times in Simsbury, Madison, Westport and Stamford. Safety Tech was founded in 2006, purportedly for the purpose of developing and commercializing what was represented to be a highly durable puncture and cut resistant material that was to be used in the surgical glove market and other related markets. Safety Tech has not yet obtained any patents from the U.S. Patent and Trademark Office, and CONNERTON did not register Safety Tech’s securities with the U.S. Securities and Exchange Commission (“SEC”).
The indictment alleges that, beginning in approximately June 2009, CONNERTON induced victim-investors to provide him funds and to purchase Safety Tech securities by falsely representing that the valuation of Safety Tech was realistically in the tens or hundreds of millions of dollars, that a lucrative deal to sell or license his glove technology was imminent, and that he would use their funds for research and development, product testing, and to bring the product to market. CONNERTON offered his investors small amounts of equity in Safety Tech through “Subscription Agreements” or investments contracts through which he sold what he described as “Units.”
It is alleged that CONNERTON made numerous other false representations to victim-investors, including stating in September 2015, “I will go on the record to state that there is not a single investor that will lose one dollar invested in Safety Technologies.”
The indictment alleges that even though CONNERTON represented to victim-investors and potential victim-investors that the funds they invested would be used to fund research and development, for product testing, for business expenses and for legal fees, he used invested funds to pay personal expenses including, on two separate occasions, to purchase diamond engagement rings from Tiffany & Co. CONNERTON also used funds to repay loans to an earlier investor.
Through this scheme, it is alleged that CONNERTON defrauded more than 50 victim-investors of more than $2 million.
The indictment further alleges that CONNERTON engaged in monetary transactions in an attempt to conceal from the FBI and the SEC the nature and source of funds received by Safety Tech from the sale of Safety Tech securities. CONNERTON negotiated checks and purchased bank checks in order to move the fraudulent proceeds from one account to another.
Finally, the indictment alleges that CONNERTON willfully failed to pay $271,375 in federal income taxes between 2004 and 2015.
The indictment charges CONNERTON with 12 counts of wire fraud, one count of mail fraud and 18 counts of securities fraud, offenses that carry a maximum term of imprisonment of 20 years on each count. The indictment also charges CONNERTON with six counts of money laundering, an offense that carries a maximum term of imprisonment of 10 years on each count, one count of money laundering conspiracy, an offense that carries a maximum term of imprisonment of 20 years, and one count of tax evasion, an offense that carries a maximum term of imprisonment of five years.
CONNERTON has been detained since his arrest on March 9, 2017. A trial in this matter is scheduled for May 9, 2018, before U.S. District Judge Stefan R. Underhill in Bridgeport.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Citizens with information that may be helpful to this ongoing investigation, or who believe they have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Six Men Sentenced for Dog Fighting and Narcotics ChargesRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that United States District Judge Terrence W. Boyle sentenced six North Carolina men this week for engaging in illegal dog fighting and selling narcotics in the Onslow County area.
The following individuals and their sentences are listed below.
- Leo Junior Chadwick, 64 of Hubert (60 Months imprisonment and 3 years supervised release & $25,000 fine)
- Aaron Richardson, a/k/a “Jit”, 42 of Jacksonville (96 months imprisonment and 3 years supervised release & $25,000 fine)
- Cedric Gerard Cook, 39 of Fayetteville (45 months imprisonment and 3 years supervised release, $5,000 fine)
- James David Martin, 39 of Maple Hill (4 years probation, including 6 months of home confinement)
- James Leslie Golden, III, 47 of Ayden (4 years probation and 100 hours of community service)
- William Jay Farrior, a/k/a “Bo”, 37 of Maple Hill (48 months imprisonment and 5 years supervised release)
Chadwick, Cook, and Martin pled guilty to Conspiracy to Violate the Animal Welfare Act. The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive or transport dogs intended for use in dog fighting. Richardson pled guilty to possessing and transporting dogs for dog fights. Golden pled guilty to a misdemeanor charge for attending a dog fight. Farrior pled guilty to a Criminal Information charging a Conspiracy to Distribute Cocaine Base (or “crack”) and Cocaine.
In October 2015, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Jacksonville Police Department, and the Onslow County Sheriff’s Department initiated an investigation related to dog fighting and drug trafficking in Eastern North Carolina. Utilizing multiple confidential sources of information (CSIs), law enforcement infiltrated a group of individuals engaging in dog fighting in Onslow and Cumberland Counties. These individuals purchased, bred, sold, and trained American Pit Bull Terriers (APBTs) for the purpose of having the dogs participate in illegal dog fights for wagering, sport, and entertainment.
Between December 2015 and March 2016, law enforcement utilized a confidential informant to meet up with the individuals and attend four dog fights with them. The fights lasted between 51 minutes and 1 hour and 47 minutes. On at least two of the occasions, the losing dog died after the conclusion of the fights. One of the fights was a “champion fight,” meaning that the participants fought dogs who were vying for a third win. As much as $100,000 was wagered on that fight alone.
The investigation revealed that Chadwick had been involved in raising and training dogs for the past 35 years. Evidence taken from Cook’s Facebook account showed that he had admitted to fighting dogs since he was 14 or 15 years old. Martin hosted one of the fights on his property, while Golden attended two of the fights.
Upon the arrests of the defendants in December 2016, search warrants were executed on four properties suspected of containing dogs and dog fighting paraphernalia. In that process, approximately 156 dogs were seized, including some that were pregnant at the time. On Chadwick’s property in Hubert, NC, investigators located and seized 33 pit bull type dogs. Many of the dogs were found outside in makeshift wooden boxes or plastic barrels, chained to the ground with heavy chains and collars. This is a typical configuration for rural dog fighting yards, though it means that the dogs are largely ignored, fed sporadically, and kept apart from each other. Other dogs were found inside Chadwick’s residence, in small wire crates. Some of the crates were riddled with filthy newspaper and covered in animal feces. Investigators also found substantial dog fighting paraphernalia on the property, including weighted collars and heavy chains used to condition dogs, break sticks with dried blood that are used to pry apart dogs jaws during fights, and a treadmill specially adapted to run dogs for long periods of time.
The dogs seized from Chadwick’s property were in terrible shape, exhibiting scars and healing wounds from fights. Nearly all of them were extremely low weight and suffering from easily preventable and treatable diseases. One dog that weighed 31.4 lbs. at the time of intake was found tethered to a chain weighing 34 lbs., meaning it was bearing upwards of 108% of its body weight around its neck.
On Cook’s property in Fayetteville, NC, investigators seized 23 pit bull type dogs. During the search of the property, investigators also located numerous break sticks used to pry apart dogs’ jaws during fights, some with gouge marks and dried blood; two slat (wooden) treadmills and a carpet treadmill, commonly used to train dogs for fighting by latching them to tight collar affixed to the structure and having them run for extended periods of time; weighted collars and heavy chains; and numerous registration certificates and pedigrees for dogs, including ones with marks showing “Gr.Ch.” for “Grand Champions” (5-time winners), “Ch.” for “Champions” (3-time winners).
Cook’s dogs were also found in very poor condition, exhibiting scars and healing wounds consistent with organized dog fighting. A few dogs had dental fractures with exposed pulp, which causes severe pain. One dog was missing a full portion of its cheek, which is a common wound obtained during fights when one dog’s tooth punctures the other’s cheek. Another dog had a puncture wound that was “oozing red purulent material” and healing scabs through his nose and right hock. The dogs also showed aggression during behavioral tests, often attacking the stuffed toy dog.
On Richardson’s property in Jacksonville, NC, investigators seized 32 pit bull type dogs. Many of the dogs were found outside in makeshift wooden boxes or plastic barrels, chained to the ground with heavy chains and collars. One litter of new puppies and their mother were found inside the residence, in a small wire crate that was filthy with feces and roundworms and had no water or food within the enclosure. During the search of the property, investigators located several “training chains” that weighed as much as 70 lbs.; a wooden slat treadmill used to condition dogs for fighting; numerous heavy collars, chains, and break sticks; and medical supplies, including syringes and some marked as “For Veterinary Use Only.”
The dogs found on Richardson’s property also exhibited scarring and healing wounds consistent with organized dog fighting. One dog was just 6-12 months old and found tethered outside in an area of dirt with standing water with no food observable. Despite its young age, the dog exhibited multiple healing wounds on its head and front legs indicative of its use in dog fights. Another dog was missing its right hind leg and exhibited scarring on his head and remaining leg. The dog also had severe gum recession and worn teeth.
The ASPCA® (American Society for the Prevention of Cruelty to Animals®) was requested by authorities to take custody of and provide daily care for the dogs seized during the arrests at a temporary shelter in an undisclosed location. The ASPCA also provided assistance with evidence collection, conducting forensic medical and behavioral examinations of the dogs seized in the case, and identifying dogs that were suitable for placement.
“Dog fighting is a brutal act of cruelty that represents the ultimate betrayal of the human-animal bond and results in a life of unimaginable pain and suffering for the victims,” said Stacy Wolf, senior vice president of the ASPCA Anti-Cruelty Group. “We are grateful to be in a position where we can collaborate with law enforcement agencies to pursue these types of cases and bring this despicable blood sport to an end.”
Chief Michael G. Yaniero, Director of Public Safety for the City of Jacksonville, stated, “These animals live in cruel conditions. Our Community will not tolerate those who abuse animals. These are not victimless crimes.”
The remaining two defendants are scheduled to be sentenced on December 22, 2017.
The case was investigated by the Federal Bureau of Investigation (FBI), Jacksonville Police Department, and Onslow County Sheriff’s Office. Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Wilmington Police Department, New Hanover County Sheriff’s Office, North Carolina State Highway Patrol, North Carolina State Bureau of Investigation, the United States Department of Agriculture - OIG, the United States Marshal’s Service, and the Cumberland County Sheriff’s Office. Assistant United States Attorney Laura Howard prosecuted the case for the government.
Scranton Man Sentenced to 58 Months’ Imprisonment for Sex TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mark Matis, age 29, of Scranton, Pennsylvania, was sentenced on November 30, 2017, by Senior U.S. District Court Judge James M. Munley to 58 months’ imprisonment for his role in the sex trafficking of a minor in early 2014.
According to United States Attorney David J. Freed, Matis previously pleaded guilty to assisting Sean Cantelmo and others in transporting and maintaining a minor for the purpose of having the minor engage in prostitution during February through May 2014.
The sex trafficking activity involved placing photographs of the minor along with ads in the adult “escort” section of a website; renting motel rooms in Lackawanna and Luzerne Counties where the prostitution activities occurred; providing drugs to the minor; purchasing and providing condoms for the minor to use during commercial sex acts; and serving as security or “bodyguards” at the motels where the commercial sex acts took place.
The court noted that Matis played a minor role in the offense for only a brief time period.
Matis was indicted by a federal grand jury in April 2015, as a result of an investigation by Homeland Security Investigations and the Pennsylvania State Police. Four persons were charged in connection with the investigation. Sean Cantelmo previously pleaded guilty and was sentenced to 151 months in prison. Jimmy Cantelmo also pleaded guilty and was sentenced to 10 years in prison. Justin Strait pleaded guilty and was sentenced to 72 months in prison.
Judge Munley also ordered Matis to serve five years on supervised release following his prison sentence. Matis must also comply with the requirements of the Sex Offender Registration and Notification Act.
“Sex trafficking is a deplorable crime, especially when it involves underage victims,” said Marlon V. Miller, special agent in charge of HSI Philadelphia. "Homeland Security Investigations will continue to work with our federal, state and local law enforcement partners to aggressively investigate and arrest individuals that prey on the most vulnerable in our community, our children.”
Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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School Counselor Sentenced to Two Years in Prison for Defrauding North Carolina MedicaidRead the Press Release
ASHEVILLE, N.C. – Joseph Frank Korzelius, 47, of Tryon, N.C. was sentenced yesterday to 24 months in prison for fraudulently billing Medicaid for more than $450,000 in false claims for mental and behavioral health services he did not provide, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Martin Reidinger ordered Korzelius to serve three years of supervised release and to pay $436,229.08 as restitution to Vaya Health, the administrator of Medicaid funds in Western North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by North Carolina Attorney General Josh Stein.
According to court documents and the sentencing hearing, from October 2013 to November 2016, Korzelius, a licensed professional counselor and a Medicaid-approved provider of mental and behavioral health services, owned and operated Western Carolina Counseling Services, located in Tryon. Korzelius was also employed as a school guidance counselor at Tryon Elementary School in Polk County. According to court records, Korzelius identified students and their siblings from his work at Tryon Elementary and used those potential beneficiaries’ information to access these individuals’ personal information. The defendant then used that information to create and submit billings for individual psychotherapy services when, in fact, no such services were provided.
Court documents show that Korzelius had minimal documentation to support his billings for services he fraudulently represented that he provided. Further, many recipients who Korzelius billed for indicated they never sought or received services from either Korzelius or Western Carolina Counseling Services. Filed court documents show that Korzelius controlled the bank accounts where the Medicaid approved reimbursements were deposited. During the course of his scheme, Korzelius submitted over $450,000 in false claims and received $436,229.08 in reimbursements for those fraudulent claims.
Korzelius pleaded guilty to one count of health care fraud. He will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence, upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the North Carolina Department of Justice, Medicaid Investigations Division (MID), and was prosecuted in the Western District of North Carolina by Special Assistant United States Attorney Timothy Rodgers through the MID’s participation in the Western District’s joint Health Care Task Force. The Task Force is a multi-agency team of federal and state investigators, working in conjunction with Civil and Criminal Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system and reducing the potential for health care fraud in the future. The Task Force builds upon existing partnerships between agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Savannah Man Sentenced to Twenty Years for Sex Trafficking ChildrenRead the Press Release
Savannah, GA – Timothy Dequon Lewis, 34, was sentenced yesterday by United States District Court Judge William T. Moore, Jr. to 240 months in federal prison for his role in sex trafficking eight minor children between the ages of 13 and 17.
Lewis was convicted of 19 felony counts by a federal trial jury in March 2017. According to evidence presented at that trial, the Federal Bureau of Investigation (“FBI”) received a lead in October 2015 from the National Center for Missing and Exploited Children (“NCMEC”) that a thirteen-year-old child had run away and was missing.
A telephone analysis conducted by NCMEC of telephone numbers previously associated with the missing child revealed various online escort advertisements with images that appeared to depict the missing child. The FBI’s investigation led agents to the Gateway Hotel on Abercorn Street in Savannah, Georgia, where Lewis was staying. At the hotel, FBI located and rescued three children, including the missing thirteen-year-old. The FBI arrested Lewis at the hotel, and agents ultimately located five additional minors victimized by Lewis.
Lewis created and posted online prostitution advertisements for all eight of his minor victims. He transported these children to his customers and profited from the commercial sex acts they performed. Lewis employed coercion and physical abuse to compel some of his victims to engage in this activity.
United States Attorney Bobby L. Christine said, “Lewis turned our most precious and most vulnerable citizens into property and sold them over and over again to satisfy his own depravity and greed. I am proud of the swift, thorough, and professional work of our law enforcement partners and Assistant United States Attorneys Tania D. Groover and Carlton R. Bourne, who put Lewis behind bars where he belongs. As demonstrated by this case, predators like Lewis will be brought to justice. We will fight day and night to ensure the safety of our nation’s children.”
Anyone who suspects instances of child sexual exploitation is encouraged to call 1-800-843-5678, a hotline operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.
The investigation of this case was led by the FBI. Assistant United States Attorneys Tania D. Groover and Carlton R. Bourne prosecuted the case on behalf of the United States.
For any questions, please contact Appellate Chief R. Brian Tanner at (912) 652-4422.
Sarasota Physician Agrees to Pay $1.95 Million to Resolve False Claims Act Allegations Regarding Unnecessary UltrasoundsRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Dr. Arthur S. Portnow, the owner and operator of Arthur S. Portnow, P.A., d/b/a Apple Medical and Cardiovascular Group, d/b/a Apple Medical Group (collectively, Dr. Portnow) has agreed to pay $1.95 million to resolve allegations that he and his practice violated the False Claims Act by knowingly seeking reimbursement for medically unnecessary ultrasound tests that were performed on Medicare beneficiaries.
The government alleges that from August 2009 through August 2017, Dr. Portnow submitted fraudulent claims to Medicare for the evaluation and performance of medically unnecessary carotid ultrasounds, lower extremity arterial ultrasounds, abdominal aortic ultrasounds, renal and renal artery ultrasounds, and echocardiograms. The government also alleges that Dr. Portnow falsified patient records in an effort to justify those unnecessary ultrasounds. Dr. Portnow and his practice received hundreds of thousands of dollars as a result of this illicit testing.
“Fraudulently billing the government for medically unnecessary tests deprives federal health care programs, like Medicare, of valuable resources,” said Acting U.S. Attorney Muldrow. “This settlement is evidence that our office will continue to pursue those who seek to unlawfully exploit our nation’s federal health care programs at the expense of patients and the Federal Treasury."
“Physicians who seek to boost their profits by charging taxpayers and patients for medically unnecessary tests will be thoroughly investigated,” said Special Agent in Charge Shimon R. Richmond of the U.S. Health and Human Services, Office of the Inspector General. “Working in coordination with our law enforcement partners, we will continue to pursue health care professionals who threaten the integrity of Federal health care programs."
In addition to paying the $1.95 million, as part of the settlement, Dr. Portnow has also agreed to enter into an integrity agreement with the Inspector General of the U.S. Department of Health and Human Services.
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by a former employee (Kathleen Siwicki) of Dr. Portnow’s practice. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act that permits private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action. Ms. Siwicki will receive roughly $350,000 of the proceeds of the settlement with Dr. Portnow.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477). The case is captioned United States, et al. ex rel. Siwicki v. Arthur S. Portnow, M.D., et al., Case No. 8:15-cv-987-T-27MAP. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only and there has been no determination of liability.
This settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida and the HHS-OIG. It was handled by Assistant United States Attorney Christopher Tuite.
Ruston man sentenced to 24 months in prison for posting sexually explicit images onlineRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Ruston man was sentenced Thursday to 24 months in prison for cyberstalking a woman and posting nude pictures of her on various websites.
Wesley Ballew, 39, of Ruston, La., was sentenced by U.S. District Judge Dee D. Drell to one count of cyberstalking. He was also sentenced to three years of supervised release and ordered to pay $7,500 restitution. According to the July 19, 2017 guilty plea, Ballew ended a relationship with a woman in 2009. He later posted nude pictures and identifying information of the woman to websites and social media sites. Ballew posted the pictures multiple times over the course of several years with the intent to harass and cause emotional distress. He also caused financial stress as the woman spent more than $7,500 in an attempt to remove the postings from online sites.
The FBI conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Russian cyber-criminal sentenced to 14 years in prison for role in massive online identity theft and bank fraud conspiracyRead the Press Release
ATLANTA – Russian cyber-criminal Roman Valeryevich Seleznev has been sentenced to 14 years in prison for his role in a $50 million cyberfraud ring and for defrauding banks of $9 million through a hacking scheme.
“Cybercriminals have victimized our citizens from half-way around the world,” said U.S. Attorney Byung J. “BJay” Pak. “As Seleznev learned, this office has committed resources designed to target cyber-crime and we will pursue these criminals no matter where they reside. The safety of our citizens is our priority, and we are committed to ending the damage they cause.”
“Modern-day hackers can often be considered project managers who oversee complex criminal schemes, and offer their services for hire to other cyber criminals. Additionally, they rarely limit themselves to a single victim or to a single criminal scheme. Seleznev was involved in at least three schemes, one of which was a scheme targeting an Atlanta-based company that resulted in the highly coordinated withdrawal of millions of dollars from ATMs throughout the world in under twelve hours. Seleznev's multiple sentences ensure he will no longer be a threat to American financial institutions and citizens for quite some time, and act as a strong deterrent to other cyber criminals offering their services for hire,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“The Secret Service worked closely with our law enforcement partners to share information and resources that ultimately brought Seleznev and his conspirators to justice,” said Kenneth Cronin, Special Agent in Charge, U.S. Secret Service, Atlanta Field Office. “Our longstanding role in transnational cyber investigations and network intrusions was crucial in combatting this complex hacking ring. This sentence illustrates that there is no such thing as anonymity for those engaging in fraudulent schemes and cyber-criminals will not go unpunished.”
According to U.S. Attorney Pak, the charges and other information presented in court: Seleznev, in connection with his guilty plea in the Northern District of Georgia case, admitted that he acted as a “casher” who worked with hackers to coordinate a scheme to defraud an Atlanta-based company that processed credit and debit card transactions on behalf of financial institutions. Seleznev admitted that pursuant to the scheme, in November 2008, hackers infiltrated the company’s computer systems and accessed 45.5 million debit card numbers, certain of which they used to fraudulently withdraw over $9.4 million from 2,100 ATMs in 280 cities around the world in less than 12 hours.
To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cashout, including Russian nationals Viktor Pleschuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukranian nationals Vladimir Valeyrich Tailar and Evgeny Levitskyy; Nigerian national Ezenwa Chukukere; American national Sonya Martin; and Vladislav Horohorin, who is a citizen of Russia, Israel, and Ukraine.
In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization in January 2009. According to Seleznev’s admissions in his plea agreement, Carder.su was an Internet-based, international criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications and committed identity theft, bank fraud and computer crimes. Seleznev admitted that the group tried to protect the anonymity and the security of the enterprise from both rival organizations and law enforcement. For example, members communicated through various secure and encrypted forums, such as chatrooms, private messaging systems, encrypted email, proxies and encrypted virtual private networks. Gaining membership in the group required the recommendation of two current members in good standing.
Seleznev further admitted that he sold compromised credit card account data and other personal identifying information to fellow Carder.su members. The defendant sold members such a large volume of product that he created an automated website, which he advertised on the Carder.su organization’s websites. His automated website allowed members to log into and purchase stolen credit card account data. The defendant’s website had a simple interface that allowed members to search for the particular type of credit card information they wanted to buy, add the number of accounts they wished to purchase to their “shopping cart” and upon check out, download the purchased credit card information. Payment of funds was automatically deducted from an established account funded through L.R., an online digital currency payment system.
Seleznev further admitted that he sold each account number for approximately $20. The Carder.su organization’s criminal activities resulted in loss to its victims of at least $50,983,166.35.
Roman Valeryevich Seleznev aka Track2, Bulba and Ncux, 33, was sentenced by U.S. District Judge Steve C. Jones of the Northern District of Georgia to serve 14 years in prison for one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and to 14 years in prison for one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia, with sentences to run concurrent to one another. In both cases, Seleznev was ordered three years of supervised release to run concurrently. He was also ordered restitution in the amount of $50,893,166.35 in the Nevada case and $2,178,349 in the Georgia case. Seleznev pleaded guilty to the charges on Sept. 7.
Seleznev is also a defendant in a wire fraud and computer hacking case brought by the Department of Justice in the U.S. District Court for the Western District of Washington. On Aug. 25, 2016, a federal jury convicted Seleznev of 38 counts related to his role in a scheme to hack into point-of-sale computers to steal and sell credit card numbers to the criminal underworld. On April 21, 2017, Seleznev was sentenced to 27 years in prison for those crimes, which will run concurrent to his sentences.
The cases were investigated by the FBI, HSI, and the U.S. Secret Service.
The Northern District of Georgia case was prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia. The Nevada case was prosecuted by Trial Attorney Catherine K. Dick of the DOJ Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Podiatrists Plead Guilty to FraudRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that William Danzeisen (60, Ponte Vedra Beach), a licensed podiatrist, and Sachin Brahmbhatt (37, Jacksonville), an unlicensed podiatrist, have pleaded guilty to theft of government property. Each faces a maximum penalty of 10 years in federal prison. The sentencing hearings have been set for January 30, 2018.
According to the plea agreement, Danzeisen and Brahmbhatt owned and operated Nourish Foot Care, a medical spa and mobile podiatric service that provided podiatry services to residents of long-term care facilities across northeast Florida. They defrauded Medicare by billing for medical services not rendered by a licensed podiatrist. Since Brahmbhatt was an unlicensed podiatrist, he was unable to bill Medicare. Danzeisen billed Medicare representing that he had performed podiatry care when the care had been provided by Brahmbhatt. Since 2015, $121,537.50 in false and fraudulent claims were submitted to Medicare.
This case was investigated by U.S. Health and Human Services – Office of Inspector General. It was prosecuted by Assistant United States Attorney Jay Taylor.
Plummer Man Sent to Prison on Federal Child Pornography ChargeRead the Press Release
COEUR D'ALENE – Scott Allen Reed, 67, of Plummer, was sentenced yesterday in federal court to 70 months in prison followed by ten years of supervised release for possession of child pornography, U.S. Attorney Bart M. Davis announced. Reed pleaded guilty to that charge on June 28, 2017.
According to the plea agreement, personnel working for the Nez Perce tribe found two bins of computer drives and computer storage media abandoned outside a building. While reviewing the items to identify the owner, the personnel saw child pornography. The items were turned over to the FBI.
A forensic examiner reviewed the items. The examiner found 260 images and 6 videos of minors engaged in sexually explicit conduct as well as hundreds of child erotica images. The examiner also determined that Reed was the owner of the items. The FBI later interviewed Reed, who admitted downloading images of “young girls.”
The child pornography images were sent to National Center for Mission and Exploited Children (NCMEC). NCMEC determined that the images included identified minors from California, Belgium and Ukraine.
Senior U.S. District Judge Edward J. Lodge ordered Reed to forfeit the computers, hard drives and CD’s found in the bins. He also ordered Reed to register as a sex offender following his prison sentence. Judge Lodge ordered Reed to pay $5,000 to a human trafficking fund.
This case was investigated by the Federal Bureau of Investigation, a member of the Idaho Internet Crimes Against Children Task Force. This task force is a coalition of federal, state, and local law enforcement agencies who investigate and prosecute individuals who use the internet to criminally exploit children.
The case was brought as a 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.”
Pittsburgh Woman Charged with Defrauding Social SecurityRead the Press Release
PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges relating to Social Security fraud, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned yesterday, named Jennifer Neal, age 39, of Pittsburgh, as the sole defendant.
According to the Indictment, on or about July 29, 2013, Neal knowingly and willfully made two false statements material to her right to receive Supplemental Security Income benefits, by falsely stating that two minor children had lived with her from July 1, 2012 to June 30, 2013. Additionally, between March 2012 and February 2017, Neal received and converted approximately $66,804.85 in Supplemental Security Income benefits to which she knew she was not entitled.
The law provides for a maximum total sentence of 20 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Adam N. Hallowell is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Pleads Guilty to Distributing FentanylRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty yesterday in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
Jacob Palaski, 27, of Pittsburgh, Pennsylvania, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on or about July 9, 2016, Palaski distributed and possessed with intent to distribute a quantity of a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance.
Judge Conti scheduled sentencing for March 23, 2018. The law provides for a total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Katherine A. King is prosecuting this case on behalf of the government.
The Peters Township Police Department and the Drug Enforcement Administration conducted the investigation that led to the prosecution of Jacob Palaski.
Pittsburgh Man Charged in Two Local RobberiesRead the Press Release
PITTSBURGH - One resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of bank robbery and Hobbs Act robbery, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned on Nov. 30, named Lamont Gates, 64, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on or about October 5, 2017, Gates robbed the Dollar General store located at 700 Penn Avenue, Wilkinsburg, PA 15221. The indictment further alleges that on or about October 12, 2017, Gates robbed PNC Bank, located at 701 Penn Avenue, Wilkinsburg, PA 15221. PNC Bank is insured by the Federal Deposit Insurance Corporation.
The law provides for a maximum total sentence at each count of up to 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Wilkinsburg Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacy Owner Pleads Guilty in Connection with Health Insurance Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The 45-year-old owner of Penitas Family Pharmacy has pleaded guilty in connection with a scheme to defraud Blue Cross Blue Shield of Texas, announced Acting U.S. Attorney Abe Martinez. Omar Espericueta, of Palmhurst, pleaded guilty today, joining co-defendant Oscar Elizondo, 47, of Pharr, who pleaded guilty on Wednesday.
Both men conspired to submit more than $1.7 million in fraudulent claims through Penitas Family Pharmacy aka Riverside Pharmacy to Blue Cross Blue Shield of Texas for expensive pain patches and scar creams.
Espericueta employed marketers, such as Elizondo, to target employees of entities throughout the Rio Grande Valley with health insurance through Blue Cross and other private insurance carriers. The marketers solicited employees with meals, drinks and promises of “free” prescription pain patches and scar creams in order to obtain their health insurance information. The co-conspirators then used the insurance information, along with fraudulent prescriptions, to submit hundreds of fraudulent and medically unnecessary claims to Blue Cross. Other employees saw a doctor, but it was a doctor with whom Espericueta had made arrangements to sign fraudulent prescriptions. Espericueta admitted to providing the doctor with prescription pain medication as well as cash “loans” that the doctor never repaid.
Employees were never told that Espericueta’s Pharmacy planned to use their health insurance information to bill Blue Cross for several thousand dollars worth of prescriptions for each employee, many of whom stated they did not want or need the patches or creams. In many instances, Espericueta’s Pharmacy billed Blue Cross for prescriptions that were never delivered to employees, including multiple refills that were never requested.
Both men face up to 10 years in federal prison and a $250,000 maximum fine. Sentencing has been set for Feb. 7, 2018, before U.S. District Judge Randy Crane.
The FBI, Mission Police Department, Texas Department of Insurance – Fraud Unit and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
Pennsylvania Man Sentenced for Operating Bi-Coastal Marijuana Distribution RingRead the Press Release
BOSTON – A Pennsylvania man was sentenced today in federal court in Boston in connection with a large-scale marijuana distribution and money laundering ring operating between California and the East Coast.
Ratanack Oung, a/k/a Yoshi, 32, of Allentown, Penn., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to four years in prison and three years of supervised release. In April 2017, Oung pleaded guilty to one count of conspiracy to distribute marijuana and one count of conspiracy to launder monetary instruments. In September 2016, Oung was indicted on these charges and arrested with co-conspirator Virayuth Chau, 40, of Temecula, Calif., who pleaded guilty in March 2017.
Beginning around January 2014, Chau and Oung shipped large quantities of marijuana from California to the East Coast of the United States. When payment for the marijuana was due, Oung collected drug proceeds from co-conspirators and deposited the cash (typically in an amount under $10,000) into one of many “feeder” accounts in banks on the East Coast, including in Massachusetts. The “feeder” accounts were maintained in the names of businesses or individuals associated with Chau in order to disguise the nature and ownership of the drug proceeds flowing into the accounts. Once the money was deposited, it was either withdrawn in cash in California or transferred into a “target” account, which was an account controlled by Chau and then withdrawn. In total, the operation distributed between 1,000 to 3,000 kilograms of marijuana and laundered approximately $6,135,035 in drug proceeds.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The DEA, Los Angeles Division, Riverside County (California) Sheriff’s Department and Murrieta (California) Police Department also assisted with the investigation. Assistant U.S. Attorney Eric Rosen of Weinreb’s Criminal Division prosecuted the case.
Parrish Man Sentenced to Prison for Retaliating Against A Federal Judge by Attempting to File A False LienRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Wayne St. Aubyn Smith (50, Parrish), a/k/a Wayne Smith El-Bey, to 3 years and 10 months in federal prison for attempting to file a false lien against a federal judge. A federal jury found him guilty on July 19, 2017.
According to testimony and evidence presented at trial, in May 2015, Smith filed a lawsuit against several New Jersey officials in U.S. District Court in New Jersey, claiming that his constitutional rights had been violated. However, Smith failed to pay the fee required to file a lawsuit in federal court. United States District Judge Jose L. Linares was assigned to the case. Judge Linares issued an order instructing Smith on how to file for indigent status to waive his filing fee and dismissed the lawsuit without prejudice. After several rounds of filings claiming that Judge Linares was violating his constitutional rights, Judge Linares denied Smith’s motion to proceed in forma pauperis.
On December 21, 2016, Smith attempted to record three separate liens against several individuals at the Manatee County Clerk’s Office. One of the documents claimed that Judge Linares owed Smith $750,000 for violating his constitutional rights. Furthermore, Smith claimed an interest in all of Judge Linares’s real and personal property and his checking and savings accounts up to the amount of $750,000. The other two documents were liens totaling more than $1 million against the State of Florida and several New Jersey government officials. The clerk’s office refused to record the documents.
This case was investigated by the Federal Bureau of Investigation and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Shauna S. Hale and Michael Gordon.
Okawville Man Sentenced to 5 Years in Prison for Receipt of Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Casey A. Koepke, 26, of Okawville, Illinois, was sentenced Thursday, November 30, 2017, in the United States District Court for the Southern District of Illinois to 60 months in federal prison, 5 years of supervised release, and was ordered to pay a $500 fine for receipt of child pornography. Koepke will also have to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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."
The investigation was conducted by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Laura V. Reppert.
Norwich Man Sentenced to 4 Years in Prison for Distributing Heroin, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that CHRISTIAN CABA, 32, of Norwich, was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 48 months of imprisonment, followed by four years of supervised release, for distributing heroin and for violating the conditions of his supervised release that followed a prior federal conviction for distribution heroin.
According to court documents and statements made in court, on June 8, 2015, CABA was sentenced in federal court to 24 months of imprisonment and four years of supervised release for distributing heroin in southeastern Connecticut. He was released from custody in February 2016.
In July and August 2016, the Connecticut State Police Statewide Narcotics Task Force East made two controlled purchases of heroin from CABA. CABA was arrested on November 1, 2016, as he exited a unit at a storage facility in Groton. At the time of his arrest, CABA possessed a quantity of heroin on his person, and a search of the storage unit revealed quantities of heroin and cocaine, as well as items used to process and package narcotics for street sale. In total, CABA possessed approximately 40 grams of heroin and 30 grams of cocaine.
CABA has been detained since his arrest. On September 7, 2017, he pleaded guilty to one count of possession with intent to distribute heroin, and admitted to violating his federal supervised release.
Chief Judge Hall sentenced CABA to 30 months of imprisonment for distributing heroin, and a consecutive 18 months of imprisonment for violating the conditions of his supervised release.
This case was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
North Carolina Defense Contractor Sentenced for $15 Million FraudRead the Press Release
NORFOLK, Va. – A Fayetteville defense contractor was sentenced today to five years in prison for his role in multiple conspiracies to overbill the federal government by more than $15 million on government contracts.
According to court documents, Philip A. Mearing, 48, is the owner of Global Services Corporation (Global). In 2004, Mearing, along with a co-conspirators Kenneth Bricker and Ken Deines, entered into an agreement whereby fraudulent payments were made by Global to Bricker’s two straw corporations, Tempo and BPM, regarding hundreds of invoices for work and services on behalf of Global that were never performed by Tempo and BPM. As part of their agreement with Global, Bricker, with the consent of Mearing, normally retained five percent of the fraudulent payments made by Global to Tempo and BPM. Shortly thereafter, Bricker transferred the remaining 95 percent of these fraudulent payments to Mearing and to DeShas, an Ohio LLC controlled by Mearing. From 2004 to 2014, Bricker received approximately $13.6 million in fraudulent payments from Global, retained approximately $558,000 for his personal use, and subsequently issued checks totaling approximately $13 million to DeShas or to Mearing.
In a separate conspiracy to defraud the government, Mearing, Deines, and William Hutsenpiller, the former Comptroller for Norfolk Ship Support Activity (NSSA), knowingly and willfully conspired to submit false claims to the government via false and/or fictitious invoices that resulted in a loss of approximately $1.8 million.
During the sentencing hearing today, the Court found that the loss to the government was over $15 million. A hearing to determine forfeiture and restitution will be held on December 12.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, and Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorneys Alan M. Salsbury and Stephen W. Haynie prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-94.
New Orleans Man Pleads Guilty to Murder of a Federal Witness,Read the Press Release
Acting U.S. Attorney Duane A. Evans announced that GREGORY DENSON, age 54, of New Orleans, pled guilty today to an eight-count Superseding Bill of Information charging him with murder of a federal witness, Hobbs Act conspiracy, multiple Hobbs Act robberies, and obstruction of official proceedings.
According to court records, DENSON was charged along with eight (8) co-conspirators with numerous violations relating to their participation in a home invasion ring. All other defendants have pled guilty. The defendants committed home invasions of known drug dealers and, through force and intimidation, including the use of firearms, robbed numerous drug dealers of their drug trafficking proceeds, including cash and property acquired with the drug cash. Additionally, DENSON murdered a witness, Ellery Boyd, to prevent Boyd from reporting those robberies and other crimes to law enforcement. DENSON, and his co-conspirators, further obstructed the investigation of the murder by disposing of Boyd’s body.
DENSON faces a maximum term of life imprisonment, as well as a fine of $250,000, and five (5) years of supervised release following any term of imprisonment. U.S. District Carl J. Barbier set sentencing for March 8, 2017.
Acting U.S. Attorney Evans praised the work of the FBI New Orleans Field Office’s Violent Crime Task Force and the New Orleans Police Department. Assistant United States Attorneys Michael M. Simpson, Gregory M. Kennedy, and James S. C. Baehr are in charge of the prosecution.
New Castle Man Charged in Six Area Bank and Convenience Store RobberiesRead the Press Release
PITTSBUGRH - One resident of New Castle, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating the federal robbery laws, Acting United States Attorney Soo C. Song announced today.
The six-count indictment, returned on Nov. 30, named Eric Barbati, age 32, as the sole defendant.
According to the indictment, on August 26, 2017, Eric Barbati robbed the BFS Foods Convenience Store, located at 1509 Wilmington Road, New Castle, PA 16105, of $292.00. Barbati then robbed 2 other convenience stores, the Red Apple Convenience Store (on August 31, 2017), located at 1010 Wilmington Avenue, New Castle, PA 16101, of $242.00; and the Market 24 Convenience Store (on September 4, 2017 and again on September 17, 2017), located at 719 W. Washington Street, New Castle, PA 16101, of $170.00 and $117.00. On September 5, 2017, Barbati also robbed the PNC Bank, located at 2470 E. State Street, Hermitage, PA 16148, of $2,702.00, and on September 11, 2017, he robbed the Huntington Bank, located at 108 S. Market Street , New Castle, PA 16142, of $1,641.00.
Barbati faces a total maximum sentence of not more than 20 years in prison, a fine of not more than $250,000, or both at each count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Hermitage Police Department, the New Wilmington Borough Police Department, the New Castle Police Department, and the Neshannock Township Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Navajo Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Alrenzon Yazzie, 20, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., pled guilty today in federal court in Albuquerque, N.M., to an involuntary manslaughter charge.
Yazzie was arrested in Sept. 2017, on a criminal complaint charging him with killing a Navajo woman on Sept. 3, 2017, on the Navajo Indian Reservation in San Juan County, N.M. According to the complaint, Yazzie killed the victim by running her over with a vehicle. At the time Yazzie ran over the victim, Yazzie was driving under the influence of alcohol.
During today’s proceedings, Yazzie pled guilty to a felony information charging him with involuntary manslaughter and admitted killing the victim by striking her with his vehicle while driving recklessly while under the influence of alcohol. Yazzie acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.
At sentencing, Yazzie faces a maximum statutory penalty of eight years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
Modesto Torrez Sentenced to Two Life Terms for His Role in Drug Conspiracy and MurderRead the Press Release
FARGO – United States Attorney Christopher C. Myers announces that on December 1, 2017, MODESTO TORREZ, age 35, of Angus, MN, was sentenced by Eighth Circuit Judge, sitting by designation, Ralph R. Erickson, to serve life imprisonment for his conviction of conspiracy to distribute controlled substances and a consecutive life term for murder in furtherance of a drug trafficking conspiracy. Torrez was found guilty by a trial jury in October of this year for conspiracy to distribute methamphetamine, obstruction of justice and for his role murder of Austin B. Forsman at the Flying J Truck Stop on March 11, 2016. Torrez was further ordered to forfeit $12,620, which was seized during the investigation.
Law enforcement’s investigation into the murder of Austin Forsman at the Flying J Truck Stop in Grand Forks, ND, in the early morning hours of March 11, 2016, resulted in the indictment of thirteen conspirators in connection with a methamphetamine ring in the Grand Forks area. Torrez, together with Krystal Lynn Feist, were charged with the murder of Forsman, as well as the drug trafficking conspiracy. Torrez was found guilty of being the leader of the conspiracy to traffic methamphetamine in the area, as well as for ordering the murder of Austin Forsman and obstructing justice. Krystal Feist had previously pled guilty for her role in the murder and drug trafficking conspiracy.
This case was investigated by the Grand Forks Police Department, Grand Forks Narcotics Task Force, North Dakota Bureau of Criminal Investigation, and the Department of Homeland Security – Homeland Security Investigations.
This case was prosecuted by U.S. Attorney Christopher C. Myers, Assistant U.S. Attorney Jake Rodenbiker, and Special Assistant U.S. Attorney Jeremy Ensrud.
http://www.usdoj.gov/usao/nd
Missouri Man Sentenced to 120 Months in Federal Prison for Attempting to Possess Contraband in PrisonRead the Press Release
A Missouri man was sentenced to federal prison today for his role in overseeing an operation in which methamphetamine was smuggled into the Federal Correctional Institution in Greenville, Illinois, and distributed to inmates.
United States Attorney Donald S. Boyce announced the sentence for the Southern District of Illinois. Defendant James Leroy Gary, 43, was sentenced to 120 months in prison, three years of supervised release, a $500 fine, and a $100 special assessment.
Facts presented in court showed that in 2014 Gary was an inmate at FCI Greenville in Bond County, Illinois. While an inmate, Gary used contacts outside of prison including his co-defendant, Candace Weakley, to smuggle methamphetamine into FCI Greenville. Gary then oversaw the distribution of the methamphetamine to other inmates within the prison.
Last year, co-defendant, Candace Weakley, was sentenced to prison for 70 months for her role in the offense.
The investigation was conducted by the Bureau of Prison Staff at FCI Greenville and by the Federal Bureau of Investigation.
Missoula Man Sentenced to Prison on Methamphetamine ChargesRead the Press Release
MISSOULA - Yancy Lee McCrea, 31 of Missoula, was sentenced today to 132 months in prison followed by five years of supervised release after pleading guilty to possession with intent to distribute methamphetamine. United States District Judge Dana L. Christensen handed down the sentence.
On June 3, 3016, law enforcement officers found Yancy McCrea, a Montana State fugitive, in his vehicle. They searched the car and seized approximately 95.9 grams of pure methamphetamine, two handguns, four magazines, 112 rounds of ammunition, and $3,350 in cash. McCrea pleaded guilty to possession with intent to distribute methamphetamine in August of this year.
The case was prosecuted by Assistant U.S. Attorney Tara Elliott and investigated by the Northwest Drug Task Force and the United States Marshals Service.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
Minden man pleads guilty to possessing a revolver after being convicted of a felonyRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a man from Minden pleaded guilty to possessing a revolver.
Jeremy Moro, 40, of Minden, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote on one count of possession of a firearm by a convicted felon. According to the guilty plea, the Minden Police Department arrested Moro while investigating a domestic abuse issue on September 8, 2016. After responding to the complaint, police found Moro laying on his couch with a Taurus Model: The Judge 45 caliber five shot revolver in the waistband of his pants. He was previously convicted of a felony for his role in a cross-burning in October 2008 in Louisiana.
Moro faces up to 10 years in prison, three years of supervised release, forfeiture of the seized firearm and a $250,000 fine. The court set a sentencing date of March 1, 2018.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF, FBI, Webster Parish Coroner’s Office and Minden Police Department conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick is prosecuting the case.
Milwaukee Man Sentenced to 16 years in Prison for Armed Carjacking Near Wick FieldRead the Press Release
United States Attorney Gregory J. Haanstad has announced that yesterday, Broderick A. Moore (age 25) was sentenced to 16 years in prison, followed by 5 years of supervised release, for his involvement in an armed carjacking. In July 2017, a federal jury found Mr. Moore guilty of carjacking and brandishing a firearm during a crime of violence.
The evidence presented at trial showed that on July 16, 2015, at about 10:20 a.m., Mr. Moore carjacked a 73 year-old woman, across the street from Wick Field, in Milwaukee. The evidence established that Mr. Moore pointed a loaded gun at the victim’s head, threatened to shoot her, and demanded the keys to her Toyota Avalon. Mr. Moore’s co-defendant, Robert Ellis, orchestrated the sale of the car immediately after the carjacking. Robert Ellis and co-defendant Sean Harvey then drove to the victim’s home and stole her Honda Accord.
Mr. Moore’s co-defendants, Robert A. Ellis and Sean Harvey pled guilty to aiding and abetting Mr. Moore in the carjacking. Mr. Ellis was sentenced to 11 years and 8 months in prison, followed by 5 years of supervised release. Mr. Harvey was sentenced to 4 years in prison, followed by 5 years of supervised release.
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. The case was prosecuted by Assistant United States Attorneys Margaret B. Honrath and Laura S. Kwaterski.
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Maryland Man Pleads Guilty to Willful Retention of National Defense InformationRead the Press Release
Nghia Hoang Pho, 67, of Ellicott City, Maryland, pleaded guilty today to willful retention of national defense information.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Stephen M. Schenning for the District of Maryland and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office made the announcement.
According to his plea agreement, beginning in April 2006, Pho was employed as a Tailored Access Operations (TAO) developer for the National Security Agency (NSA). The NSA's TAO involved operations and intelligence collection to gather data from target or foreign automated information systems or networks and also involved actions taken to prevent, detect, and respond to unauthorized activity within Department of Defense information systems and computer networks, for the United States and its allies.
In connection with his employment, Pho held various security clearances and had access to national defense and classified information. Pho also worked on highly classified, specialized projects. According to the plea agreement, beginning in 2010 and continuing through March 2015, Pho removed and retained U.S. government documents and writings that contained national defense information, including information classified as Top Secret and Sensitive Compartmented Information. This material was in both hard copy and digital form, and was retained in Pho’s residence in Maryland.
U.S District Judge George L. Russell has scheduled sentencing for April 6, 2018 at 10 a.m.
Pho faces a maximum sentence of 10 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Boente and Acting U.S. Attorney Stephen M. Schenning commended the FBI and the NSA for their work in the investigation. This case is being prosecuted by national security prosecutors in the District of Maryland and the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.
Man Sentenced to 20 Years for Conspiring to Distribute HeroinRead the Press Release
RICHMOND, Va. – A Chester man was sentenced today to 20 years in prison for conspiring to distribute heroin.
Fereris Jamison, 40, pleaded guilty on August 29. According to court documents, Jamison acknowledged responsibility for distributing at least one kilogram of heroin and at least 500 grams of cocaine during the conspiracy. A 30-year old Hopewell woman overdosed and died in September 2015 after Jamison sold her heroin. The Court noted that Jamison qualified under the federal guidelines as a career offender and was responsible for the victim’s death. The Court then ordered Jamison to pay restitution to the family of the victim in the amount of approximately $10,000, and ordered forfeiture in the amount of $91,000, which was for the proceeds of his drug trafficking activity.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Alfred Durham, Chief of Richmond Police, and Colonel John F. Keohane, Chief of Hopewell Police Department, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Lunch Special. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-91.
Local Dermatologist Pays $850,000 to Settle False Claims Act AllegationsRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced that Skin Care Doctors, P.A. and its founder and CEO, Michael J. Ebertz, M.D. have agreed to pay $850,000 to the United States to resolve allegations of false claims submitted for certain dermatology procedures in violation of the False Claims Act (“FCA”).
Assistant U.S. Attorney Ann Bildtsen said, “Medicare is a public trust. This resolution against both the company and its CEO safeguards that trust and restores needed funds to Medicare. This Office is committed to taking necessary actions to rectify inflated billing to federal programs.”
The United States contended that between January 2008 and December 2015, Skin Care Doctors, P.A. ("SCD") and Michael J. Ebertz, M.D. (“Ebertz”) submitted false claims for payment to the Medicare Program. The billing in question spanned four different areas, including billing Medicare for free samples of a phototherapy drug and upcoding office visits, lesion removal procedures, and phototherapy services. As outlined in the settlement agreement, Ebertz and SCD will pay to the United States a settlement amount of $850,000.
The settlement resolves a civil lawsuit brought by a whistleblower, a doctor who formerly worked with Ebertz, under the qui tam provisions of the False Claims Act. The False Claims Act allows private parties to bring suit on behalf of the government for false claims and to share in any recovery. Such whistleblowers bring fraud schemes to light that might otherwise go undetected.
The case was handled by the Civil Frauds Unit of the U.S. Attorney’s Office for the District of Minnesota, with assistance from the Office of Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation.
The case is United States of America and the State of Minnesota ex rel. Jeff Samuelson, M.D. v. Skin Care Doctors, P.A., and Michael J. Ebertz, M.D., 15-cv-3132 (SRN/BRT). The settlement resolved false claims allegations prior to any determination of liability.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Littlefield Man Sentenced to 135 Months in Federal Prison for Enticing a 16-Year-Old Girl to Engage in Sexual ActivityRead the Press Release
LUBBOCK, Texas — A Littlefield, Texas, resident, Luis Zubia, 36, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to 135 months in federal prison, following his guilty plea in September 2017 to an indictment charging one count of enticement of a minor, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
According to the plea agreement factual resume filed in the case, from February 2017 until April 2017, Zubia had text conversations that were sexual in nature with “Jane Doe,” a 16-year-old female. Zubia asked “Doe” to send him sexually explicit photos and videos of herself and eventually talked about meeting up with “Doe.”
Zubia asked for, and was provided, “Doe’s” address, along with the name of her school. On March 7, 2017, Zubia sent a text to “Doe,” stating his desire to meet up and to engage in sexual intercourse with her.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood leverages federal, state and local resources to better investigate, apprehend and prosecute individuals who sexually exploit children. Project Safe Childhood also prioritizes identifying and rescuing victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Littlefield Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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Leesburg Men Convicted in Armed Carjacking CaseRead the Press Release
Ocala, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Avery Leanard Tumer (23, Leesburg) guilty of carjacking, conspiracy to commit carjacking, brandishing a firearm in furtherance of a crime of violence, and possessing a firearm as a convicted felon. He faces a maximum penalty of 37 years in federal prison, including a 7-year minimum mandatory penalty for brandishing the firearm. In a separate trial, the same jury previously found Timotheus Gersom Reed (30, Leesburg) guilty of conspiracy to commit carjacking and brandishing a firearm in furtherance of a crime of violence. He faces a maximum sentence of 12 years’ imprisonment, including a 7-year minimum mandatory penalty. The sentencing hearings are scheduled for February 21, 2017.
According to evidence presented during the trials, on the evening of December 23, 2016, Tumer and Reed, along with co-defendants Jonathan Kyle Lanier and Amy Denise Scott, conspired to rob an individual of his money, other personal items, and his car by arranging a meeting at a remote location between the victim and Scott. The victim believed he was going to the meet the woman only; however, shortly after he arrived, Lanier, Tumer, and Reed pulled the victim from his car and stole his wallet and other personal property. During the robbery, the three men wore masks and pointed firearms at the victim; Turner later pistol-whipped the victim and took his car while Scott left in her car with Reed and Lanier.
Later that evening, Tumer and Scott were arrested by the Lake County Sheriff’s Office after the victim’s car was located outside an apartment where the two had stayed together. Inside the apartment, deputies found the victim’s identification, cell phones, and debit card. Multiple firearms were recovered from the attic, where Tumer had been hiding.
On November 15, 2017, a separate federal jury found Lanier (24, Leesburg) guilty of carjacking, conspiracy to commit carjacking, brandishing a firearm in furtherance of a crime of violence, and possessing a firearm as a convicted felon.
He faces up to 37 years in federal prison, including a 7-year minimum mandatory penalty. A sentencing date has not yet been set.
On May 9, 2017, Scott (32, Leesburg) pleaded guilty to conspiracy to commit carjacking. She faces a maximum penalty of five years in federal prison; her sentencing hearing is set for December 15, 2017.
This case was investigated by the Federal Bureau of Investigation (Daytona Beach Office), the Lake County Sheriff’s Office, and the Leesburg Police Department. It is being prosecuted by Assistant United States Attorney Dale Campion.
Lawyer Sentenced for Distributing Videos of Child Sexual AbuseRead the Press Release
ALEXANDRIA, Va. – A Washington D.C., lawyer was sentenced today to five years in prison for distributing videos of child sexual abuse.
According to court documents, Jason Mark Sims, 36, replied to an advertisement placed by an undercover FBI agent. Sims and the undercover agent discussed meeting so that Sims could sexually abuse the undercover agent’s purported 10-year-old daughter. Although Sims ultimately declined to meet the undercover in person, he did provide the undercover with links to videos depicting the sexual abuse of girls as young as 4 years-old.
In addition to his prison sentence, the Court imposed the special condition that Sims write an article for publication about his crime in an effort to achieve general deterrence. The Court also ordered Sims to register as a sex offender, serve 10 years of supervised release, and be subject to computer monitoring.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys Laura Fong and Kellen S. Dwyer prosecuted the case.
This case is 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 and click on the tab “resources” for more information about Internet safety education.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-191.
Justice Department Seeks to Shut Down Florida Tax Return PreparersRead the Press Release
The United States filed two civil injunction suits seeking to bar three siblings who prepare tax returns and their businesses from owning, operating, or franchising a tax return preparation business and preparing tax returns for others, the Justice Department announced today. The United States filed one complaint against Herve Erilus of Cocoa, Florida, and his business, Herve Erilus LLC. The government filed a second complaint against Gerline Erilus of Orlando, Florida and her two businesses, Gerline Erilus LLC and Elite Multi-Services LLC, and St. Fonie Erilus of Apopka, Florida and her two businesses, St. Fonie Erilus LLC and The Diversified Finance Solutions LLC.
The complaints, both filed in United States District Court in Florida, also request that the court require the Eriluses and their businesses to disgorge ill-gotten fees that they obtained from the U.S. Treasury through the alleged false tax return preparation.
According to the complaints, the Eriluses and their tax preparation businesses prepare and file tax returns to falsely increase their customers’ refunds, and profit through exorbitant, often undisclosed fees—at the expense of their customers and the Treasury.
The complaints allege that the Eriluses engage in misconduct, including:
- Falsely claiming the Earned Income Tax Credit
- Claiming improper filing status (i.e. head of household for married individuals)
- Fabricating businesses and related business income and expenses
- Fabricating deductions
- Charging deceptive and unconscionable fees
According to the complaints, the Eriluses worked at LBS Tax Services, and their brother, Walner Gachette, through Loan Buy Sell Inc., is the former franchisor of LBS. Since September 2014, the United States has filed 17 lawsuits in Florida and North Carolina including a suit against Gachette and suits against dozens of alleged former LBS franchisees and managers, many of whom, according to the complaints, rebranded and continued to operate tax preparation businesses. Through these lawsuits, the United States has obtained numerous permanent injunctions and money judgments disgorging millions in ill-gotten tax preparation fees.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2017. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jamestown Men Arrested on Methamphetaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ernest Clayburn Cauley, Jr., 26, and Zackiel Leonard Fields, Jr., 22, both of Jamestown, NY, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison and a maximum of life in prison.Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that the Federal Bureau of Investigation and the Jamestown Metro Drug Task Force (JMDTF) have been investigating a suspected drug trafficking organization, primarily involving methamphetamine, in the Jamestown area. According to the complaint, the defendants, Cauley and Fields, are the main suppliers of methamphetamine to the organization.
In addition, defendant Fields was identified by the U.S. Postal Service as a person who had purchased thousands of dollars of postal money orders with cash at post offices in the Jamestown area. Lacking any apparent legitimate occupation or employment, the conduct by Fields and others of converting large sums of cash, as much as $500,000 or more, into postal money orders over the last 18 months, raised suspicions.
The defendants were arrested on November 6, 2017, following an alleged drug transaction during which Cauley and Field received a quantity of suspected methamphetamine. The defendants, driving in separate cars, were pulled over by police and arrested. Suspected methamphetamine was found in the car in which Fields was riding.
The defendants made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and are being held pending detention hearings scheduled for December 4, 2017.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Inland Empire Man Pleads Guilty to Distributing Analogue of Powerful Opioid Fentanyl that Resulted in Overdose DeathRead the Press Release
LOS ANGELES – A Riverside man who sold a powerful opioid very similar to fentanyl to a friend – who then suffered a fatal overdose from the narcotic – has pleaded guilty to federal drug trafficking offenses.
Adam Scott Caward, 33, pleaded guilty yesterday afternoon to two federal offenses – distribution of acetyl fentanyl resulting in death, and possession with the intent to distribute acetyl fentanyl.
The federal investigation into Caward began in June, when U.S. Customs and Border Protection intercepted a package sent to Caward from China. The shipment contained a compound known as 4-FIBF, which is an analogue of fentanyl – meaning that the narcotic is chemically similar to fentanyl and designed to cause an effect similar to the powerful synthetic opioid.
A subsequent investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Drug Enforcement Administration, in cooperation with the Riverside Police Department, led to the discovery of controlled substances at Caward’s Riverside home in July. The investigation linked Caward to other fentanyl analogues and synthetic opioids that he possessed nine months earlier at his then-residence in Chino Hills.
According to a plea agreement filed in United States District Court, Caward admitted exchanging a series of text messages with a friend on November 7 and 8, 2016, which culminated in Caward selling his friend a purple powder containing acetyl fentanyl. Within hours of purchasing the narcotic from Caward, the friend died of acute acetyl fentanyl intoxication.
On November 16, 2016, the Riverside Police Department executed a state court search warrant on Caward’s Chino Hills residence, where they found a number of controlled substances, including fentanyl analogues. Among the drugs that Caward possessed was approximately 19.5 grams of the same purple powder containing acetyl fentanyl that was sold to the friend.
Caward pleaded guilty yesterday before United States District Judge John A. Kronstadt, who scheduled a sentencing hearing on March 1.
As a result of his guilty pleas, and because the narcotics involved in the distribution offense resulted in death, Caward faces a mandatory minimum sentence of 20 years in federal prison, and a possible sentence of life without parole.
This case is being prosecuted by Assistant United States Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on November 30, 2017 and entering pleas of Not Guilty were:
- ROBERT CHARLES SCOTT, a 37-year-old resident of Billings, appeared on charges of felon in possession of a firearm, and possession of a firearm by a person under a domestic order. If convicted of the most serious charge contained in the indictment, SCOTT faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-134
Appearing before U.S. Magistrate Cavan in Billings on November 28, 2017 and entering pleas of Not Guilty were:
- CHRISTOPHER RICHARD MUNDT, a 27-year-old resident of Billings, appeared on charges of robbery affecting commerce. If convicted of the charge contained in the indictment, MUNDT faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings Police Department. PACER Case Reference. 17-132
- HEATHER LYNN STOUT, a 36-year-old resident of Billings, appeared on charges of felon in possession of a firearm, and possession of a stolen firearm. If convicted of the most serious charge contained in the indictment, STOUT faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Probation Office. PACER Case Reference. 17-137
Appearing before U.S. Magistrate Johnston in Great Falls on November 28, 2017 and entering pleas of Not Guilty were:
- RICHARD CEYNAR, a 34-year-old resident of Williston, North Dakota, appeared on charges of conspiracy to illegally hunt, kill, and traffic mountain lions, interstate transport and possession of illegally killed mountain lions and false labeling. If convicted of the most serious charges contained in the indictment, CEYNAR faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Fish and Wildlife Service. PACER Case Reference. 17-18
- ERNEST JABLONSKY, a 51-year-old resident of Plains, appeared on charges of conspiracy to illegally hunt, kill, and traffic mountain lions, illegal sale of outfitted mountain lion hunts, and false labeling. If convicted of the most serious charges contained in the indictment, JABLONSKY faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Fish and Wildlife Service. PACER Case Reference. 17-18
- MITCH THEULE, a 29-year-old resident of Townsend, appeared on charges of conspiracy to illegally hunt, kill, and traffic mountain lions, and illegal sale of outfitted mountain lion hunts. If convicted of the most serious charge contained in the indictment, THEULE faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Fish and Wildlife Service. PACER Case Reference. 17-18
- ANTONIO TODD TIGART, a 21-year-old resident of Great Falls, appeared on charges of prohibited person in possession of a firearm. If convicted of the charge contained in the indictment, TIGART faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department. PACER Case Reference. 17-75
Appearing before U.S. Magistrate Cavan in Billings on November 22, 2017 and entering pleas of Not Guilty were:
- LARRY DARNELL SIMS, a 44-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, SIMS faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-136
- ARSCENIO TONY NOT AFRAID, a 30-year-old resident of Hardin, appeared on charges of felon in possession of a firearm and ammunition, and possession of a unregistered firearm. If convicted of the most serious charge contained in the indictment, NOT AFRAID faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-109
Appearing before U.S. Magistrate Cavan in Billings on November 21, 2017 and entering pleas of Not Guilty were:
- CHRISTINA ANN JACKSON, a 42-year-old resident of Boise, Idaho, appeared on charges of transportation of a person with intent to engage in criminal sexual activity. If convicted of the charges contained in the indictment, JACKSON faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-117
- WHITEBIRD LIMPY, a 34-year-old resident of Lame Deer, appeared on charges of second degree murder. If convicted of the charge contained in the indictment, LIMPY faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Bureau of India Affairs. PACER Case Reference. 17-130
- DEREK DEXTER SHOULDERBLADE, a 23-year-old resident of Ashland, appeared on charges of second degree murder. If convicted of the charge contained in the indictment, SHOULDERBLADE faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-135
Appearing before U.S. Magistrate Johnston in Great Falls on November 14, 2017 and entering pleas of Not Guilty were:
- JAMES V. DAY, a 48-year-old resident of Thompson Falls, appeared on charges of conspiracy to illegally hunt, kill, and traffic mountain lions, and false labeling. If convicted of the most serious charges contained in the indictment, DAY faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Fish and Wildlife Service. PACER Case Reference. 17-18
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment: Veteran Charged in $40 Million Government Contract Fraud SchemeRead the Press Release
KANSAS CITY, KAN. –Joseph David Dial, Jr., 52, Belton, Mo., is charged in a federal indictment unsealed today with four counts of major program fraud against the United States and four counts of wire fraud, U.S. Attorney Tom Beall said. The indictment alleges during the period from in or about August 2008, to in or about September 2015, Dial unlawfully devised a scheme to defraud and to obtain money and property by means of material false and fraudulent pretenses, representations and promises, in order to obtain a $40 million Department of Defense contract.
The indictment alleges Dial unlawfully formed a pass-through business called United Medical Design Builders, LLC with another person. The company received a contract through the Service-Disabled Veteran-Owned Small Business program that was awarded by the U.S. Army Corps of Engineers for the design and construction of healthcare facilities at Langley AFB, Andrews AFB, Hanscom AFB, and McGuire AFB. The indictment alleges United Medical Design Builders, LLC was not a legitimate Service-Disabled Veteran-Owned Small Business and should not have obtained the contract.
If convicted, Dial faces up to 10 years in federal prison on each count of defrauding the government and up to 20 years on each count of wire fraud, as well as fines and forfeiture judgment representing the amount of proceeds obtained by committing the offenses set out in the indictment. Investigative agencies include the Small Business Administration - Officer of Inspector General, General Services Administration - Office of Inspector General, Defense Criminal Investigative Service and the Army CID Major Procurement Fraud Unit. Assistant U.S. Attorney Tris Hunt is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Houston Resident Sentenced to 262 Months in Federal Prison for Trafficking CocaineRead the Press Release
A Houston resident was sentenced to federal prison on Thursday, November 30, 2017, for his role in a drug trafficking conspiracy resulting in the seizure of $1.2 million dollars in cash, $72,000 in jewelry, and several kilos of cocaine.
United States Attorney Donald S. Boyce announced the sentence for the Southern District of Illinois. Defendant Jamie Ramon Green, 46, was sentenced to 262 months in prison, five years of supervised release, a $1000 fine, and a $100 special assessment.
An indictment filed on February 18, 2016, charged Green, and seven coconspirators, for participating in a scheme to distribute approximately 120 kilos of cocaine across the country, including into the Southern District of Illinois. In addition to the drug crimes, the indictment sought forfeiture of $1,212,934 in U.S. currency seized on December 2 and 3, 2015, along with jewelry appraised at $72,000.
Earlier this year, co-defendants Sammy Monroe, Rodney Smith, Dana Bell, Nahum Shibeshi, Astin Allison, and Terrance Miles, were sentenced to prison for 168 months, 147 months, 87 months, 48 months, 151 months, and 121 months respectively. The remaining co-defendant in this case, Victor Johnson, has pled guilty and is awaiting sentencing.
This investigation was conducted as part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative brings federal, state, and local law enforcement
agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. The investigation was conducted by agents from the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Honduran National Charged with Illegal Use of a Social Security NumberRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that EVER JIMINEZ-MENDOZA, age 33, a citizen of Honduras, was charged today in a one-count Indictment for illegal use of a Social Security number in violation of Title 42, United States Code, Section 408(a)(7)(B).
JIMINEZ-MENDOZA faces a maximum term of imprisonment of not more than five years, a maximum fine of $250,000, and a mandatory special assessment of $100.00. Additionally, JIMINEZ-MENDOZA is subject to up to three years of supervised release after imprisonment.
Acting U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilty of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran National Charged with Illegal Use of a Social Security NumberRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that NAHUM VERDE-ORTIZ, age 39, a citizen of Honduras, was charged today in a one-count Indictment for illegal use of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
VERDE-ORTIZ faces a maximum term of imprisonment of not more than five years, a maximum fine of $250,000, and a mandatory special assessment of $100. Additionally, VERDE-ORTIZ is subject to up to three years of supervised release after imprisonment.
Acting U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilty of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran National Charged with Illegal Use of a Social Security NumberRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOSE ALBERTO SANTOS-MONTALVAN, age 42, a citizen of Honduras, was charged today in a one-count Indictment for illegal use of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
SANTOS-MONTALVAN faces a maximum term of imprisonment of not more than five years, a maximum fine of $250,000, and a mandatory special assessment of $100. Additionally, SANTOS-MONTALVAN is subject to up to three years of supervised release after imprisonment.
Acting U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilty of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Henderson Man Sentenced to over Eight Years in Prison for Possession of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nevada man who pleaded guilty to possession of approximately 900 photos and videos of child pornography was sentenced Thursday by U.S. District Judge James C. Mahan to 97 months in prison and lifetime supervised release, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Brian Christopher Fisher, 43, pleaded guilty to one count of possession of child pornography. According to the plea agreement, during an online peer-to-peer child pornography investigation, law enforcement downloaded child pornography files from computers belonging to Fisher. Law enforcement officers then obtained and executed a search warrant for Fisher’s residence. Fisher admitted that he viewed, downloaded, and possessed approximately 732 photos and 169 videos of children performing sex acts with men and women, animals, and other juveniles.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI). Assistant U.S. Attorney Elham Roohani prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Former Wilkinsburg Man Charged with Robbing Two Banks and a Convenience StoreRead the Press Release
PITTSBURGH - One resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of bank robbery and Hobbs Act robbery, Acting United States Attorney Soo C. Song announced today.
The four-count indictment, returned yesterday, named Glenn Ford, age 58, formerly of Wilkinsburg, Pennsylvania, as the sole defendant.
According to the indictment, on or about September 15, 2017, and again on or about September 28, 2017, Ford robbed Huntington Bank, located at 650 Smithfield Street, Pittsburgh, PA 15222. The indictment also alleges that on or about September 20, 2017, Ford robbed Citizens Bank, located at 2801 East Carson Street, Pittsburgh, PA, 15203. Huntington Bank and Citizens Bank are each insured by the Federal Deposit Insurance Corporation. The indictment further alleges that on or about October 4, 2017, Ford robbed CoGo’s located at 2401 East Carson Street, Pittsburgh, PA, 15203.
The law provides for a maximum total sentence at each count of up to 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Union Officer Pleads Guilty to EmbezzlementRead the Press Release
BOSTON – The former Secretary-Treasurer of UNITE HERE Local 26 pleaded guilty today in federal court in Boston to embezzling over $100,000 from the organization.
Henry Clay Green Sr., 60, of Boston, pleaded guilty to one count of embezzlement from a labor union. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 13, 2018.
From May 19, 2011 to July 14, 2016, Green was Secretary-Treasurer of UNITE HERE Local 26, a labor union representing the hospitality industries in Massachusetts and Rhode Island. In that capacity, Green exercised control over various aspects of Local 26’s financial operations and used his position to embezzle $171,455 from the organization for his own use. When confronted by union officials, Green confessed.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain/loss, whichever is greater, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, Labor Racketeering and Fraud; Carol S. Hamilton, Acting Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; and Jonathan Russo, District Director of the U.S. Department of Labor, Office of Labor Management Standards, Boston District Office, made the announcement. Assistant U.S. Attorney Laura J. Kaplan of Weinreb’s Organized Crime and Gang Unit is prosecuting the case.
Former Teacher Sentenced to Nearly 8 Years in Prison for Sexually Assaulting Six StudentsRead the Press Release
WASHINGTON – Manuel Fernandez, 36, of Washington, D.C., was sentenced today to 7 years and 360 days in prison for sexually assaulting six of his students while working as a teacher at the Latin American Montessori Bilingual Charter School (L.A.M.B.), announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Fernandez pled guilty in June 2017, in the Superior Court for the District of Columbia to two charges of second-degree child sexual abuse, one charge of attempted second-degree child sexual abuse, and three charges of misdemeanor sexual abuse of a child. The plea, which was contingent upon the Court’s approval, called for a prison term of 1.5 to 8 years. The Honorable Judith Bartnoff accepted the plea and sentenced Fernandez accordingly. Following his prison term, Fernandez will be placed on 25 years of supervised release. Also, he will be required to register as a sex offender for the remainder of his life.
According to the plea documents, the incidents took place between 2014 and 2017 while Fernandez was a teacher at the school in Northwest Washington. In his guilty plea, Fernandez admitted to touching six students on their genitalia while they were in his classroom and in the school basement. He touched both male and female students, both under and over their clothing. The children ranged in age from 7 to 10 years old. Fernandez was placed on administrative leave after the incidents came to light and he was arrested on Feb. 24, 2017. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Tracy Owusu, Lezlie Richardson and Elsa Maltese, all of the Victim/Witness Assistance Unit, former Intern Emma McArthur, and Assistant U.S. Attorneys Jessi Camille Brooks and J. Matt Williams, who prosecuted the case.
Former NBA Player Pleads Guilty to False Tax Returns, Identity Theft Related to Charity Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a former professional basketball player and representative for the National Basketball Players Association (NBPA) has pleaded guilty in federal court to charges related to a charity fraud scheme.
Kermit Alan Washington, 66, of Las Vegas, Nev., pleaded guilty before U.S. District Judge Greg Kays on Thursday, Nov. 30, 2017, to two counts of making a false statement in a tax return and one count of aggravated identity theft.
Co-defendant Patricia Harris, 65, of Las Vegas, also pleaded guilty yesterday. Harris pleaded guilty to making false declarations before a grand jury.
Washington and Harris are among 11 defendants who have pleaded guilty in several cases related to the investigations of an international software piracy conspiracy and charity fraud scheme.
Washington agreed to refer professional athletes to attorney Ronald Jack Mix, 78, of San Diego, Calif., so that Mix could file workers’ compensation claims in the state of California on behalf of the athletes. Mix then agreed to make donations to Washington’s charity, The Sixth Man Foundation, doing business as Project Contact Africa.
Washington accepted approximately $155,000 in donations to his charity, which were actually illegal referral payments from Mix and his law firm. Washington diverted those funds from the charity’s bank account to pay himself or for personal spending. Washington admitted that he failed to account for this income to the charity on Project Contact Africa’s IRS filings during those years.
In a separate but related case, Mix pleaded guilty on May 23, 2016, to filing a false tax return. Mix admitted that he made donations ranging from $5,000 to $25,000 for referrals of athletes, some of whom lived in the Western District of Missouri. Mix then claimed those payments as charitable contributions on his individual tax returns from 2010 to 2013.
Washington also admitted that he accepted approximately $82,025 in contributions to his charity from Reza Davachi, 43, of Damascus, Md., and likewise diverted those funds from the charity’s bank account to pay himself or for personal spending.
In a separate but related case, Davachi pleaded guilty on Oct. 20, 2015, to his role in one of the largest software piracy schemes ever prosecuted by the U.S. Department of Justice. Investigators seized more than $20 million in assets from conspirators who are estimated to have sold in excess of $100 million worth of illicit, unauthorized and counterfeit software products to thousands of online customers.
Davachi admitted that he managed the on-line presence of the Project Contact Africa eBay/PayPal charity. Davachi actively used the Project Contact Africa charity’s eBay/PayPal account to sell unauthorized, illicit, and counterfeit software and software components through eBay, and used the charity’s PayPal account to facilitate payments for these software components. By using the charity’s account to sell his items through the eBay charity store, Davachi saved thousands of dollars per month that he would have otherwise had to pay eBay in the form of various fees. During this time, the Project Contact Africa eBay/PayPal account took in approximately $12 million in revenue, and eBay/PayPal sustained losses of approximately $908,231 due to the waived fees.
Customers of the Project Contact Africa eBay charity store were under the impression that “100 percent” of the proceeds of sales were intended to go to the charity when, in fact, only a portion of the proceeds actually went to the charity. The remainder went to Davachi and his company, Rez Candles, Inc. Davachi also admitted that he allowed numerous other individuals to use the Project Contact Africa eBay/PayPal charity store to sell their own items at a significantly reduced amount as compared to other for-profit sales methods on eBay, with the understanding that they would pay back to Davachi a portion of their savings.
By pleading guilty, Washington specifically admitted that he filed a materially false individual tax return on Feb. 18, 2014, and that he filed a materially false Form 990-EZ for his tax-exempt organization on Aug. 20, 2012. On this Form 990-EZ, Washington claimed that Project Contact Africa received $52,069 in income; in reality these charity accounts received approximately $114,774 in income, some of which Washington diverted to his personal accounts and used towards his personal spending.
Washington also admitted that used the name, personal address and business address of another person without lawful authority in numerous state and federal filings on behalf of the charity. The identity theft victim, identified in court documents as “T.G.”, was a resident of Oregon. Washington admitted that he used her identity information so that Project Contact Africa could maintain its active status within the state of Oregon, which enabled the charity to receive the charitable donations from Mix and permitted Davachi to maintain the charity store for his sales on eBay.
Harris admitted that, while under oath before a federal grand jury, she made materially false statements by denying that she played any role in creating and co-authoring false and fictitious board minutes for the Sixth Man Foundation d/b/a Project Contact Africa charity. Harris admitted that she created and co-authored false and fictitious board minutes for purported board of directors meetings in 2012, 2013, 2014 and 2015, which never actually occurred. The information and content contained within these falsified board minutes was relayed to Harris by Washington. She aided in the preparation and falsification of these minutes at Washington’s direction.
Under federal statutes, Washington is subject to a sentence of up to six years in federal prison without parole for the tax counts, plus a mandatory consecutive sentence of two years in federal prison without parole on the identity theft count. Harris is subject to a sentence of up to five years in federal prison without parole. By pleading guilty today, Washington acknowledged that the court may order restitution as related conduct in connection with his personal tax years 2010, 2011, 2012, and 2014, and for the tax years 2010, 2012, and 2013 for the tax returns filed for the Sixth Man Foundation, D/B/A Project Contact Africa.The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Daly and Curt Bohling and Assistant U.S. Attorney Ryan Raybould of the Middle District of Tennessee (formerly of the Department of Justice Tax Division). It was investigated by IRS-Criminal Investigation and Immigration and Customs Enforcement’s Homeland Security Investigations.
Former Judge Sentenced on Federal Contempt ChargeRead the Press Release
Abingdon, VIRGINIA – A former juvenile and domestic relations judge was sentenced this week to prison time on federal contempt of court charges related to his wife’s federal trial on public corruption charges, United States Attorney Rick A. Mountcastle announced.
Kurt Pomrenke, 64, of Bristol, Virginia, was sentenced this week to two months in prison and ordered to pay a fine of $1,000. He was previously found guilty of one count of contempt of court.
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Pomrenke, who was removed by the Virginia State Supreme Court from the bench in a ruling earlier this week, violated a federal judge’s order in regards to the disclosure of discovery materials associated with his wife’s public corruption trial. His wife, Stacey Pomrenke, was a former executive with BVU who was ultimately convicted of federal charges. An investigation into Kurt Pomrenke’s actions during his wife’s trial also proved that he contacted at least two witnesses in an attempt to influence their testimony. In one instance, Kurt Pomrenke included his business card identifying himself as a judge with a handwritten note that he mailed to the potential witness.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Former Bank Executive Charged for Role in $15 Million Bank Loan SchemeRead the Press Release
WASHINGTON – A former Kansas bank executive was charged in an indictment filed today for his participation in a bank fraud scheme to obtain a $15 million construction loan from 26 Kansas banks based on allegedly false information contained in the loan documents.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge David Anderson of the Federal Deposit Insurance Corporation Office of Inspector General’s (FDIC-OIG) Kansas City Regional Office, Special Agent in Charge Karl A. Stiften of the Internal Revenue Service Criminal Investigation’s (IRS-CI) St. Louis Field Office, Special Agent in Charge Darrin E. Jones of the FBI’s Kansas City Field Office and Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General’s (FHFA-OIG) Central Region Office made the announcement.
Troy A. Gregory, 50, of Lawrence, Kansas, was charged in an indictment filed in the District of Kansas with one count of conspiracy to commit bank fraud, four counts of bank fraud, and two counts of false statements.
According to the indictment, Gregory was a bank executive and loan officer who had made millions of dollars in loans to a group of borrowers who were struggling to make payments on the loans. The indictment alleges that beginning in approximately late 2007, Gregory began the process of making a $15.2 million construction loan to build an apartment complex to that same group of borrowers. The indictment further alleges that Gregory’s bank shared this loan with 25 other Kansas banks. Gregory allegedly made or caused others to make false statements to the banks about the strength of the borrowers, the debt status of the apartment property and the existence of approximately $1.7 million in certificates of deposit for collateral on the loan, all to get the loan approved. Instead of using the loan funds promised for building the apartments, Gregory allegedly immediately diverted over $1 million of the loan to pay for part of the certificates of deposit pledged as collateral, pay off debt on the apartment property and make payments on unrelated loans. Other Kansas banks that shared in this loan allegedly would not have participated in the loan without the false representations and promises.
The indictment alleges that the banks ultimately wrote off millions of dollars on the $15.2 million construction loan.
An indictment is merely an allegation and all defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The FDIC-OIG, IRS-CI, FBI and FHFA-OIG are investigating this matter. Trial Attorney Andrew R. Tyler and Senior Litigation Counsel David A. Bybee of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country, focusing on cases of national significance and international scope. Fraud Section prosecutors have vast experience in investigating and prosecuting securities and financial fraud, health care fraud and foreign corruption. The Section is routinely the national leader in large, sophisticated white collar investigations and prosecutions, frequently in partnership with U.S. Attorneys’ Offices and in coordination with foreign law enforcement agencies.