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1 December 2017
Florida Man Pleads Guilty to Committing $3.3 Million Telemarketing Scam Targeting Elderly VictimsRead the Press Release
LAS VEGAS, Nev. – An Orlando, Florida resident pleaded guilty today for his role in a telemarketing scheme to defraud more than 1,000 victims, many of them elderly, of more than $3.3 million, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Daniel Martin Boyar, aka “Wolf,” 62, of Orlando, Fla., pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud; two counts of mail fraud; and two counts of wire fraud. United States District Judge James C. Mahan accepted his guilty plea. Sentencing is scheduled for May 22, 2018. The statutory maximum penalty is 20 years in prison and a $250,000 fine. In addition, Boyar faces restitution in an amount not to exceed $3.5 million to the victims.
According to admissions made in connection with his guilty plea, from October 2010 to April 2012, Boyar, the leader of the scheme, together with his co-conspirators devised and participated in a telemarketing scheme to cheat timeshare owners out of money by promising to sell their timeshares in return for the owners paying in advance a portion of the closing costs associated with the purported sales. There were no buyers. The timeshare sales were never arranged and never occurred. This is a criminal scheme commonly known as the “buyer’s pitch,” an advance-fee scam. The scam operated under numerous business names including Holiday Advertising, Professional Concepts LLC, TeleTeton Corporation, Redline Funding LLC, Great West Funding Incorporated, Equity Financial Services LLC, and First Capital Financial Services Corporation, moving their business front from state to state and changing the name approximately every 90 days. The conspirators also created websites with false and misleading information to include customer testimonials, company officers, and press releases. Boyar and his co-conspirators used wire communications and mail carrier services to carry out the scheme.
The case is being investigated by the FBI and the U.S. Postal Inspection Service. Assistant U.S. Attorney Dan Cowhig is prosecuting the case.
Consumers should use caution when previously unknown telemarketers offer unsolicited services. It is relatively easy for scam artists to create the appearance of legitimacy for a fraudulent business front by manipulating information available through the Internet. Fraudsters frequently are able to buy or steal information related to their intended victims that the victim believed was confidential, helping the fraudster trick the victim into believing the fraudster is part of a legitimate business.
For information about the Department of Justice’s elder justice initiative, visit http://www.usdoj.gov/elderjustice. The website is a “one-stop shop” for prosecutors, researchers, practitioners, victims and families looking for resources to identify, report and prosecute elder abuse and financial exploitation, including common fraud schemes perpetrated against seniors.
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Five Facing Federal Cocaine Trafficking Conspiracy ChargesRead the Press Release
PITTSBURGH – Five men have been indicted on charges of violating federal narcotics and firearms laws, Acting United States Attorney Soo C. Song announced today.
The indictment, returned on Nov. 30, charges Don Juan Mendoza, age 38, of Lawrenceville, Georgia; Jamie Lightfoot, Jr., age 25, of, Verona, Pennsylvania; Pedro Alejandro Blanco, age 39, of Jacksonville, Florida; Brian Powell, age 39, of Jacksonville, Florida; and Troy Rowe, age 28, of Columbia, South Carolina, with conspiring to possess with intent to distribute and distribute of five kilograms or more of cocaine and less than 50 kilograms of marijuana. Additionally, Mendoza, Blanco, Rowe, and Powell are charged with possession with the intent to distribute five kilograms or more of cocaine and less than 50 kilograms of marijuana. Mendoza and Blanco are also charged with possessing a firearm by a convicted felon. Finally, all of the defendants are charged with possessing firearms in furtherance of a drug trafficking crime.
According to the previously filed criminal complaint, the defendants were part of a large-scale drug trafficking scheme. Brian Powell, Troy Rowe and Pedro Blanco were involved in the transport of an RV, registered to Mendoza’s mother, containing drugs from the Los Angeles area to the Penn Hills residence of Jamie Lightfoot, Jr. Don Juan Mendoza also arrived at the Lightfoot residence about the same time as the RV containing the drugs.
According to the complaint, a search of the RV revealed approximately 52 kilograms of cocaine, approximately 85 pounds of marijuana, and two firearms. The cocaine and marijuana were secreted in a compartment underneath the bunk beds in the RV. The two firearms were found in the same compartment as some of the cocaine and marijuana. The complaint also alleges that hundreds of thousands of dollars were recovered during a search of Lightfoot, Jr.’s residence.
The law provides for a minimum sentence of 10 years in prison and up to life, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case. The Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the Indictment in this case.
Felon Charged with Violating of Federal Firearms LawsRead the Press Release
PITTSBURGH - One resident of Pittsburgh’s North Side has been indicted by a federal grand jury in Pittsburgh on two charges, both being federal firearm violations, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned on Nov. 29, named Gerald Wayne Underwood, age 36, as the sole defendant.
According to the indictment, on May 17, 2016, Gerald Wayne Underwood, a convicted felon, was in possession of a sawed-off shotgun, which was not registered in the National Firearms Registry to his name. Federal law prohibits possession of such firearms without registration, and federal law further prohibits an individual who has been convicted of a felony from possessing a firearm.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Stephen S. Gilson is prosecuting this case on behalf of the government. This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bureau of Pittsburgh 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.
Federal Indictment Charges Former Mayor of Markham with Pocketing Bribes While in Office in Exchange for Steering City Work to VendorsRead the Press Release
CHICAGO — The former mayor of south suburban Markham solicited and received bribes from vendors while in office in exchange for steering them city business, according to a 12-count indictment returned in federal court in Chicago.
The indictment accuses DAVID WEBB JR., who served as mayor of Markham from 2001 until earlier this year, of seeking and obtaining bribes from vendors in the construction and financial services industries. Three vendors provided a total of at least $300,000 in bribes to Webb in the form of cash payments, campaign contributions, purported donations to city programs, and checks made payable to shell companies operated by Webb and his relatives, the indictment states. As part of the bribery scheme, Webb allegedly used his influence as mayor to help the vendors maintain city business or procure new city contracts, including the renovation of a Markham park and the construction of a multi-million dollar senior living complex that would later be named in Webb’s honor.
The indictment was returned Thursday in federal court in Chicago. It charges Webb, 69, of Markham, with one count of honest services wire fraud and one count of willfully filing a false tax return. The indictment also charges an owner and an executive of two companies who allegedly paid bribes to Webb, as well as one of the companies itself. Arraignments in U.S. District Court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The U.S. Securities and Exchange Commission provided valuable assistance. The government is represented by Assistant U.S. Attorneys Steven Dollear and Georgia Alexakis.
The indictment describes instances in which Webb personally solicited bribes from companies doing business with the city. In 2008, Webb allegedly sought money from THOMAS SUMMERS, an owner of Alsterda Cartage and Construction Co., Inc., an Alsip-based sewer subcontractor. Over the next five years, Summers and Alsterda issued at least seven checks to Webb totaling approximately $174,000, according to the indictment. Webb directed Summers to make the checks payable to a Webb family member or one of the shell companies controlled by Webb and his family that performed no actual work, the indictment states. Summers also delivered cash bribes to Webb and contributed to mayoral campaign events, the indictment states.
In exchange for the bribes, Webb allegedly used his position as mayor to take official action benefitting Alsterda, including causing Alsterda to be assigned city projects. Summers, 65, of Homer Glen, is charged with one count of conspiracy to commit federal program bribery.
Webb also sought and received bribes from the general contractor on the senior center and park projects, the indictment states. In early 2012, Webb met with MICHAEL JARIGESE, the president of TOWER CONTRACTING LLC, and asked for $100,000, the indictment states. At the time, Tower was seeking to expand its portfolio of city business, which already included the nearly $15 million senior center. Jarigese later delivered two Tower-issued checks to Webb totaling $85,000, the indictment states. At Webb’s direction, Jarigese made the checks payable to one of the shell companies that Webb and his family controlled, which performed no actual work, and then fraudulently recorded them in Tower’s records as payment for contracting work and a donation to a Markham festival, the indictment states. The purported festival payment was described in the company’s records as “Tower giving back to the community,” the indictment states. Tower also contributed more than $150,000 to the mayor’s campaign and Markham events, the indictment states.
In exchange for the bribes, Webb allegedly used his position as mayor to take official action that benefited Tower, such as awarding it the $3.4 million Roesner Park project. Jarigese, 64, of Frankfort, and Tower, which is based in Mokena, are each charged with nine counts of honest services wire fraud and one count of federal program bribery.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of honest services wire fraud is punishable by up to 20 years in prison. The maximum sentence for federal program bribery is ten years. The conspiracy count is punishable by up to five years, while the tax count carries a maximum of three years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Ellicott City Man Pleads Guilty to Willful Retention of National Defense InformationRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – Nghia Hoang Pho, age 67, of Ellicott City, Maryland, pleaded guilty today to willful retention of national defense information.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Acting Assistant Attorney General for National Security Dana J. Boente; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
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 United States 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.
“The facts supporting this criminal charge and guilty plea display a total disregard of the defendant’s oath and promise to protect our nation’s national security. Such conduct cannot, and will not, be tolerated,” noted Acting United States Attorney Schenning.
"The FBI investigation revealed a flagrant violation of national security law by removal of classified information to a vulnerable setting. The U.S. government entrusts the most sensitive classified information to its security clearance holders, and in return, demands unyielding adherence to law, policy, and good sense to protect classified information by maintaining classified information in secured, approved government space. The scope of harm is not theoretical -- it denotes another attack on the bedrock secrecy and discipline required of USG security clearance holding professionals. The criminal acts described in the criminal information show a subject heedless of obligations to national security, a betrayal of the trust inherent in the security clearance he was granted, and provides clear notice that the FBI will vigorously investigate cases whenever a compromise of classified information arises,” said Special Agent in Charge Johnson.
Pho faces a maximum sentence of 10 years in prison, followed by three years of supervised release. 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. United States District Judge George L. Russell has scheduled sentencing for April 6, 2018 at 10 a.m.
Acting United States Attorney Schenning and Acting Assistant Attorney General Boente commended the FBI and the NSA for their work in the investigation. Mr. Schenning thanked his office’s national security prosecutors and attorneys from the Justice Department’s National Security Division, Counterintelligence and Export Control Section, all of whom are handling the prosecution.
El Salvadoran National Pleads Guilty to Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced today that JUAN CARLOS ACOSTA, also known as “Juan Carlos Acosta-Santos,” 32, a citizen of El Salvador last residing in Manchester, pleaded guilty yesterday before Chief U.S. District Judge Janet C. Hall in New Haven to one count of illegal reentry of a removed alien.
According to court documents and statements made in court, on September 27, 2006, ACOSTA was convicted in Manchester Superior Court of assault in the first degree and sentenced to one year of imprisonment, time served, and a one-day conditional discharge. On December 11, 2006, he was removed to El Salvador.
In February 2015, ACOSTA was arrested in East Hartford on charges of breach of peace in the second degree and interfering. On April 17, 2015, he was removed to El Salvador without a resolution on the state charges.
In December 2015, ACOSTA was found in the U.S. near Rio Grande Valley, Texas. On December 23, 2015, he was removed to El Salvador.
On February 12, 2017, the Connecticut State Police arrested ACOSTA for assault in the second degree with a weapon, and related misdemeanor offenses. He has been detained since arrest.
Chief Judge Hall scheduled sentencing for February 26, 2018, at which time ACOSTA faces a maximum term of imprisonment of 20 years.
The state charges against ACOSTA are pending in Rockville Superior Court.
This matter is being investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national charged with an immigration crime pleaded guilty and was sentenced in federal court in Boston yesterday.
Jose Mejia Ruiz, 40, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Douglas P. Woodlock sentenced Mejia Ruiz to four months in prison and three years of supervised release.
In 2009, Mejia Ruiz, using the alias, Thomas Montes, was convicted in federal court in New York of passport fraud. Upon completion of his sentence, Mejia Ruiz was placed into removal proceedings, and on Jan. 12, 2011, he was deported to the Dominican Republic.
In June 2017, Mejia Ruiz, using an alias of Carmelo Rosado, was arrested by law enforcement in Massachusetts and charged in state court with drug distribution.
On Oct. 3, 2017, while in custody on the state drug charge at Middlesex House of Correction, it was determined that Mejia Ruiz was unlawfully present in the United States.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Drug DistributionRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to distributing cocaine.
Elvin Radhames Soto, a/k/a Jimmy, a/k/a Jimmy Quinones, a/k/a Frank Norris Agusto, a/k/a Jorge Belnabel Santo, 38, pleaded guilty to conspiracy to distribute cocaine and heroin. U.S. District Court Senior Judge Rya W. Zobel scheduled sentencing for Jan. 23, 2018.
Soto and Ileana Valdez supplied hundreds of grams of heroin and cocaine a week to members of Boston’s largest and most influential city-wide gang, the Columbia Point Dawgs (CPD), also known on the street as “the Point,” with the help of several drug runners. Together, Soto and Valdez ran a round-the-clock drug delivery organization which used three drug stash houses and one money stash house.
Soto is the 47th of 51 defendants tied to the CPD to plead guilty. Valdez previously pleaded guilty and is awaiting sentencing.
Soto faces a minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $10 million. Soto will be deported upon completion of his sentence. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Suffolk County District Attorney Daniel F. Conley; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; Boston Police Commissioner William Evans; and Commissioner Thomas Turco of the Massachusetts Department of Correction, made the announcement.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Domestic Abuse and Drug Use Send Felon Back to PrisonRead the Press Release
PITTSBURGH - A resident of Wilmerding, Pennsylvania, was sentenced in federal court on November 28, 2017 to one year and one day in prison as a result of again violating his federal supervision, Acting United States Attorney Soo C. Song announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on defendant Ondaryle Smith, who was initially sentenced to 10 years in prison and 5 years of supervision for his federal drug conviction. Smith later served an additional sentence of 2 years in prison and 3 years of supervision in 2014 for other violations of his supervision.
According to information presented to the court, while serving his most recent supervision, the defendant tested positive for cocaine and marijuana use, and later assaulted his girlfriend.
Chief Judge Conti also imposed a new period of 24 months of supervision by the United States Probation Office, to begin after Smith completes his most recent jail sentence.
Assistant United States Attorney Ross E. Lenhardt of the Violent Crimes Section prosecuted this case on behalf of the government and played the 911 recording for the Court. There, the defendant’s girlfriend is in obvious distress and states that Smith choked her, kicked her in the ribs, and hit her in the face. The prosecution also presented the Court with a picture of the victim’s facial injuries.
Acting United States Attorney Song commended the Allegheny County Police Department for the investigation leading to the successful prosecution of Smith.
Doctor Indicted on Heath Care Fraud and Opioid Diversion ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Charles J. Gartland, D.O., age 59, of Cochranville, Pennsylvania, was indicted on November 29, 2017, by a federal grand jury on health care fraud and opioid diversion charges.
According to United States Attorney David J. Freed, the indictment alleges Gartland perpetrated a scheme to defraud two health care benefit programs, WellSpan Health of York, PA and Medicare, by writing 221 prescriptions between September 2014 and August 2017, for Hydrocodone, Oxycodone, Fentanyl, Morphine and other controlled substances. According to the indictment, the prescriptions were issued by Gartland under the names of three of his family members. Of the 221 prescriptions, 194 were for 17,187 Hydrocodone-Ibuprofen 7.5 -200 mg pills.
The indictment also alleges the prescriptions were never intended for the medical care or treatment of the family members, but instead were intended for Dr. Gartland’s personal use. As such, the prescriptions were outside the scope of professional medical practice and were not issued for a legitimate medical purpose.
According to the indictment, Gartland allegedly filled the prescriptions at four pharmacies in York, Chester and Lancaster Counties. It’s alleged that Gartland deceived the pharmacies into giving him the pills by making them believe they were intended for his family members. WellSpan and Medicare were allegedly defrauded when they paid claims submitted by the pharmacies for the prescriptions.
The indictment charges Gartland with 10 counts of health care fraud and 10 counts of obtaining controlled substances by deception.
Gartland surrendered to the U.S. Marshal Service yesterday and entered a not guilty plea before United States Magistrate Judge Martin C. Carlson. Judge Carlson ordered Gartland released pending trial under supervision by the U.S. Probation Office. Trial was scheduled for February 5, 2018, before United States District Court Judge Yvette Kane.
The matter is being investigated by the Harrisburg Offices of the Drug Enforcement Administration, the U.S. Department of Health and Human Services, Office of the Inspector General, and the Pennsylvania Department of State Bureau of Enforcement and Investigation. Assistant U.S. Attorney Kim Douglas Daniel is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Each count of Health Care Fraud is punishable by up to 10 years’ imprisonment and a $250,000 fine. Each count of Obtaining Possession of a Controlled Substance by Deception is punishable by up to four years’ imprisonment and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Dallas-Based Physician-Owned Hospital to Pay $7.5 Million to Settle Allegations of Paying Kickbacks to Physicians in Exchange for Surgical ReferralsRead the Press Release
Pine Creek Medical Center LLC (“Pine Creek”), a physician-owned hospital serving the Dallas/Fort Worth area, has agreed to pay $7.5 million to resolve claims that it violated the False Claims Act by paying physicians kickbacks in the form of marketing services in exchange for surgical referrals, the Department of Justice announced today.
“Health care providers that attempt to profit from illegal kickbacks will be held accountable,” said Principal Deputy Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “Improper financial incentives can distort medical decision making and drive up healthcare costs for federal health care programs and their beneficiaries.”
The government alleged that, between 2009 and 2014, Pine Creek engaged in an illegal kickback scheme whereby the hospital would pay for marketing and/or advertising services on physicians’ behalf and, in return, the physicians would refer their patients, including Medicare and TRICARE beneficiaries, to Pine Creek. Among other things, Pine Creek allegedly paid for advertisements on behalf of the physicians in a number of local and regional publications. Pine Creek also allegedly paid for radio and television advertising, pay-per-click advertising campaigns, billboards, website upgrades, brochures, and business cards, as well as other forms of marketing to induce physicians to refer patients to Pine Creek for medical services.
“The United States Attorney’s Office, in coordination with our partners at Main Justice and HHS-OIG, have and will continue to aggressively pursue those that violate the Anti-Kickback Statute, regardless of the nature or form that the kickback takes,” said Erin Nealy Cox, the U.S. Attorney for the Northern District of Texas. “We must hold individuals and entities responsible for improperly furthering their financial interests at the expense of the federal health care programs.”
As part of the settlement, Pine Creek has agreed to enter into a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG), which obligates the defendants to undertake substantial internal compliance reforms for the next five years.
“Hospitals that try to boost their profits by paying kickbacks to physicians will instead pay for their improper conduct,” said Special Agent in Charge C.J. Porter, Department of Health and Human Services, Office of Inspector General’s Dallas Region. “We will continue to investigate such illegal business arrangements that undermine impartial medical judgment.”
The settlement resolves allegations originally brought in a lawsuit filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers, Suzanne Scott and Savannah Sogar, former employees of Pine Creek’s marketing department, will receive $1,125,000.
The government’s intervention in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The case was handled by the U.S. Attorney’s Office for the Northern District of Texas and the Justice Department’s Civil Division, with assistance from the Federal Bureau of Investigation, and in coordination with the U.S. Department of Health and Human Services Office of Inspector General.
The lawsuit is captioned U.S. ex rel. Suzanne Scott, et al. v. Pine Creek Medical Center, LLC, Case No. 3:14-cv-3065 (N.D. Tex.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Commercial Construction Estimator Admits Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A South Jersey man today admitted defrauding New Jersey state health benefits programs and other insurers of $800,000 by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick and N.J. Attorney General Christopher S. Porrino announced.
Timothy Frazier, 42, a commercial construction estimator from Galloway, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Frazier served as a recruiter in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Frazier and others recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy, which were not medically necessary. Frazier secured insurance information from the individuals and passed it along to a conspirator, who had a doctor sign prescriptions without examining the individuals. The prescriptions were faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
The pharmacy then paid one of Frazier’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Frazier and other members of the conspiracy. Frazier paid recruiters under him and paid individuals with insurance coverage to reward them for obtaining prescriptions.
According to the information, the Pharmacy Benefits Administrator paid Compounding Pharmacy more than $50 million for compounded medications mailed to individuals in New Jersey. Frazier received $145,425 for his role in the scheme.
As part of the plea agreement, Frazier must forfeit $145,425 in criminal proceeds and pay restitution of at least $801,119.
The defendant faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 29, 2017.
Eleven other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, John Gaffney, Judd Holt, George Gavras, Richard Zappala, Michael Neopolitan, and Andrew Gerstel – have pleaded guilty from August through November 2017 and await sentencing.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Porrino and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel: Robert G. Stahl Esq., Westfield, New Jersey
Columbia County Felon Indicted on Gun ChargesRead the Press Release
ALBANY, NEW YORK – Christopher Mikelinich, age 52, of Ancram, New York, was arraigned today on an indictment charging him with possessing firearms as a felon.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Ashan M. Benedict, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The indictment charges Mikelinich with possessing a 12 gauge semi-automatic shotgun and a .22 caliber semi-automatic rifle after having been convicted of a felony offense. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Mikelinich was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and detained pending a trial before Senior United States District Judge Norman A. Mordue.
This case is being investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Chicago Resident Sentenced to 10 Years in Federal Prison for Conspiring to Manufacture Marijuana in Rockford WarehouseRead the Press Release
ROCKFORD — A Chicago man was sentenced today by U.S. District Judge Frederick J. Kapala for his role in a conspiracy to manufacture and distribute marijuana.
YOUSIF Y. PIRA, 65, was sentenced to ten years in federal prison, to be followed by five years of supervised release.
On July 13, 2017, following a four-day jury trial in federal court in Rockford, Pira was found guilty of conspiring to manufacture, possess and distribute 1,000 or more marijuana plants. According to the indictment and the evidence at trial, between Jan. 2, 2013, and Jan. 6, 2015, Pira conspired with JEREMIAH N. CLEMENT, 39, of Des Plaines, GEORGE H. BACUS, 54, of Niles, JUSTIN T. PAGLUSCH, 36, of Ingleside, SHLIMON SHIMON, 49, of Chicago, CASEY WILLIAMS, 30, of Great Falls, Mont., and DESTINY FREEMAN, 24, of Palmer, Alaska, to illegally grow, store and distribute marijuana in a warehouse at 1916 11th Street in Rockford. The warehouse was destroyed by a fire on Jan. 6, 2015. As part of the conspiracy, Pira purchased grow lights and other equipment and supplies for the illegal operation to grow marijauna in the warehouse and installed wiring for the lights used to grow marijuana.
Clement, Paglusch, Bacus, Williams, and Freeman previously pleaded guilty and admitted their roles in the conspiracy. Clement was sentenced on June 3, 2016, to ten years in prison, to be followed by five years of supervised release; Paglusch was sentenced on June 23, 2016, to ten years in prison, to be followed by five years of supervised release; Bacus was sentenced on Sept. 22, 2017, to 33 months in prison, to be followed by two years of supervised release; Williams was sentenced on Aug. 23, 2017, to 57 months in prison, to be followed by three years of supervised release; and Freeman was sentenced on Aug. 24, 2017, to 23 months in prison, to be followed by two years of supervised release. An arrest warrant was previously issued for Shimon, who is still at large.
Today's sentencing of Pira was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Derek Bergsten, Chief of the Rockford Fire Department; and Anthony Scarpelli, Chief of the Skokie Police Department. The Winnebago County Sheriff’s Department Narcotics Unit and Rockford Police Department Narcotics Unit assisted in the investigation.
The government is represented by Assistant U.S. Attorneys Joseph C. Pedersen and Margaret J. Schneider.
Carthage Man Sentenced to 40 years in Federal Prison for MurderRead the Press Release
Jackson, Miss - Christopher E. Lemon, age 37, of Carthage, was sentenced on Thursday by U.S. District Judge Carlton Reeves to a term of 480 months in federal prison for second degree murder, announced U.S. Attorney Mike Hurst, Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation, and Christopher Smith, Special Agent in Charge of the National Park Service- Investigative Services Branch.
On July 3, 2014, Lemon was riding in a car with a co-worker on the Natchez Trace Parkway in Leake County, Mississippi. Lemon had stolen a firearm from their employer’s store before getting into the vehicle with the victim. While inside the vehicle, Lemon shot the victim five times in the chest and leg, leaving her in the backseat of her vehicle. She was later found by a National Park Service ranger dead at the scene.
A federal grand jury indicted Lemon on September 20, 2016, charging him with Murder in the Second Degree, Felon in Possession of a Firearm, Possession of a Stolen Firearm, Stealing a Firearm and Use of a Firearm in Relation to a Crime of Violence. On September 6, 2017, Lemon appeared before U.S. District Judge Carlton Reeves and pled guilty to Murder in the Second Degree. This charge carries a penalty of any number of years and up to life in prison, 5 years of supervised release, and $250,000.00 fine.
Lemon’s sentenced of 480 months of imprisonment will be immediately followed by a 5 year term of supervised release. He was also ordered to pay restitution in the amount of $7,269.34 to the Office of Attorney General- Crime Victim Compensation Fund.
This case was investigated by the National Park Service, the Federal Bureau of Investigation, and the Leake County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Candace Mayberry and Mary Helen Wall.
Cambria County Man Distributed Heroin that Caused Overdose DeathRead the Press Release
PITTSBURGH - A resident of Northern Cambria, Pennsylvania, pleaded guilty yesterday in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
Brad Troup, 39, of Northern Cambria, Pennsylvania, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on January 13, 2016, Troup distributed and possessed with intent to distribute heroin. As a part of his guilty plea, Mr. Troup admitted that he caused the death of Jeremiah Huey, who had used heroin distributed by Troup.
Judge Conti scheduled sentencing for March 9, 2018. The law provides for a maximum sentence of up to 20 years in prison, a fine of $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 Drug Enforcement Administration, along with the Pennsylvania State Police, the Offices of the District Attorneys of Allegheny and Indiana Counties, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Brad Troup.
California Woman Pleads Guilty to Federal Drug Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Toniette Rochelle Doty, 47, of San Bernardino, Calif., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
The DEA arrested Doty in March 2017, after seizing approximately 1.10 kilograms (2.42 pounds) of marijuana and 0.9 kilograms (1.98 pounds) of methamphetamine from her during an interdiction investigation at the Greyhound Bus Station in Albuquerque. The marijuana and methamphetamine were contained in eight bundles inside of Doty’s luggage.
Doty subsequently was indicted on March 14, 2017, and was charged with possession of methamphetamine with intent to distribute on March 1, 2017, in Bernalillo County, N.M.
During today’s change of plea hearing, Doty pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute. In entering the guilty plea, Doty admitted that on March 1, 2017, she transported approximately 0.9 kilograms of methamphetamine from Los Angeles, Calif., to Albuquerque on the Greyhound Bus. Doty further admitted that she intended to give the methamphetamine to another individual when she reached her destination of Little Rock, Arkansas, for further distribution.
At sentencing, Doty faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
Buffalo Man Arrested on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Leon R. Williams, 38, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute heroin and cocaine, and possession of a firearm in furtherance of drug trafficking. The charges carry a maximum penalty of life in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that, according to the complaint, in September 2017, law enforcement officers began investigating the narcotics distributing activities of the defendant. Investigators received information that Williams was distributing heroin from his residence at 37 Texas Street in Buffalo. On November 29, 2017, officers observed the defendant leave his residence and get into his 2007 Audi Q7. Williams traveled north on Bailey Avenue and stopped at a dry cleaner. Upon exiting the business, the defendant was taken into custody.
Subsequently, officers executed a search warrant at 37 Texas Street and recovered multiple small bags containing an off-white substance and a brown powdery substance on the kitchen table. The bags were believed to contain suspected heroin and cocaine. Scales, razor blades and cutting agents were also located in the residence along with a Glock 22, .40 caliber firearm, and a .40 caliber magazine containing 10 rounds of ammunition was loaded inside the firearm. A second high-capacity magazine for a .40 caliber firearm was also seized together with a total of $73,743.00 in cash.
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on December 4, 2017.
The complaint is plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
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.
Brownstown Man Sentenced to 5 Years' Imprisonment for Unemployment Insurance FraudRead the Press Release
A Brownstown Township man was sentenced to 5 years in prison today after pleading guilty to defrauding the Michigan Unemployment Insurance Agency out of over $726,000, announced Acting United States Attorney Daniel L. Lemisch.
Lemisch was joined in the announcement by Special Agent in Charge James Vanderberg, Department of Labor - Office of Inspector General, Special Agent in Charge David P. Gelios, Federal Bureau of Investigation and Wanda M. Stokes, Director, Michigan Talent Investment Agency, Unemployment Insurance.
Byron Williams, 50, pleaded guilty in June before United States District Court Judge Sean F. Cox to wire fraud for his leadership in a sophisticated scheme utilizing five fictitious companies and more than 114 identities to defraud the Agency.
According to court records, between 2012 through 2016, Williams systematically obtained personal identification information for 114 individuals, and then used that information to submit fraudulent on-line claims for unemployment compensation benefits. Some of the identities were from individuals who participated in the scheme, and received a portion of the benefits from the fraudulent claims paid out on their behalf. Many of the identities utilized were stolen, leaving a large number of identity theft victims.
“Identity theft is a serious crime, often requiring victims to spend years restoring their credit. Today’s sentence recognizes not only that the defendant harmed individuals, he harmed the public by stealing nearly three quarters of million dollars intended to help the unemployed. Such conduct rightfully deserves the serious punishment handed down by the court today,” Lemisch said.
"Individuals who defraud the Federal-State Unemployment Insurance Program divert limited public funds meant for those legitimately in need of temporary economic support”, said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “Today, Mr. Williams was held to account for his fraud scheme which could have undermined the solvency of this important safety net for the unemployed.”
“This case shows our commitment to pursue all available avenues to stop this type of fraud,” stated Wanda M. Stokes, Director, Michigan Talent Investment Agency, Unemployment Insurance. “I want to commend all the agencies involved in this matter.”
The case was investigated by special agents of the Department of Labor, Office of Inspector General, the FBI with the assistance of the State of Michigan Unemployment Insurance Agency.
Bronx Defendant Found Guilty in Manhattan Federal Court of Sex Trafficking OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that a federal jury today found MARIA SOLY ALMONTE, a/k/a “Soly Almonte,” a/k/a “Soly La Fuerte,” a/k/a “SoSo,” a/k/a “SoSo Wavy,” a/k/a “Soly Montana,” guilty of sex trafficking of minors, sex trafficking conspiracy, and use of interstate commerce to promote illegal activity. ALMONTE was convicted following a two-week jury trial before U.S. District Judge Kimba M. Wood.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As a jury unanimously found, Maria Soly Almonte was the ringleader of a sex trafficking conspiracy that exploited children as young as 13. Her predatory conduct shocks the conscience. Protecting children is one of our most important missions, and I thank the FBI and the NYPD for their outstanding work to that end. Almonte now awaits sentencing for her heinous crimes.”
According to allegations contained in the Complaint, Indictment, and evidence presented during the trial in Manhattan federal court:
Since at least 2015, MARIA SOLY ALMONTE operated a brothel in New York City, which trafficked minors as young as 13 years old. The brothel operated at various locations throughout New York, including apartments in the Bronx and Harlem.
ALMONTE served as the brothel’s proprietor. The brothel’s sex workers were required to pay ALMONTE a fee for prostitution services they rendered at the brothel. The brothel advertised its services on the internet and communicated with clients by telephone. During the time period of the conspiracy, at least six minors provided prostitution services at one or more of the brothel’s locations.
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ALMONTE, 33, was convicted of one count of conspiring to commit sex trafficking, which carries a maximum sentence of life in prison; one count of sex trafficking a minor under the age of 14, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison; one count of sex trafficking a minor under the age of 18, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of using facilities of interstate commerce to promote illegal activity, which carries a maximum sentence of five years in prison; and one count of conspiring to use facilities of interstate commerce to promote illegal activity, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim thanked the FBI and NYPD for their outstanding investigative work in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Stephanie Lake and Alison Moe are in charge of the prosecution.
Bill Powell sworn in as United States Attorney for the Northern District of West VirginiaRead the Press Release
MARTINSBURG, WEST VIRGINIA – Bill Powell has taken the formal oath of office to become the United States Attorney for the Northern District of West Virginia in a special ceremony today in Martinsburg. U.S. Attorney Powell was nominated by President Donald Trump on August 3, 2017 and confirmed by the U.S. Senate on October 3, 2017. Chief U.S. District Judge Gina M. Groh administered the oath of office to U.S. Attorney Powell before family, friends and colleagues.
“I am humbled and honored to have been appointed and confirmed as the United States Attorney. I have a great team of lawyers and staff, and I look forward to working with all of them on the issues facing our district. I will work as hard as I can to justify the confidence placed in me,” said U.S. Attorney Powell.
The Investiture Ceremony, held at the W. Craig Broadwater Federal Building and United States Courthouse in Martinsburg, was attended by former United States Attorneys, Federal Judges, lawmakers, colleagues, staff, and Powell’s family and friends. Student representatives from Burke Street Elementary School in Martinsburg recited the Pledge of Allegiance, and were invited by U.S. Attorney Powell as honored guests. The ceremony was followed by a reception hosted by U.S. Attorney Powell’s family.
As U.S. Attorney, Powell is the top-ranking federal law enforcement official in the Northern District of West Virginia, which includes offices in Wheeling, Martinsburg, Clarksburg, and Elkins. He oversees a staff of 45 employees, including 21 attorneys and 24 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
U.S. Attorney Powell, a Martinsburg resident, was born in Manhasset, New York in 1960. He most recently served as the Chief Deputy Prosecuting Attorney in Jefferson County, West Virginia. He has also held positions as a member attorney at Jackson Kelly, PLLC, and an Assistant United States Attorney in the United States Attorney’s Office for the Southern District of West Virginia.
He received his J.D. in 1985 from the West Virginia University College of Law and his B.A. in 1982 from Salem College. He is a past president of the West Virginia Bar Association, past Member of the Board of Governors for the West Virginia State Bar, and has been active in numerous community and professional organizations.
He has been married to his wife, Sharon, for 31 years, and they have raised three boys.
Betty Miller Arrested for Possession of RicinRead the Press Release
The United States Attorney’s Office (USAO) and the Federal Bureau of Investigation (FBI) stated:
On November 30, 2017, the FBI arrested Betty Miller, age 70, on a federal criminal complaint charging her with unregistered possession of a select agent, ricin, on or about November 27, 2017. On December 1, Miller had her initial appearance in federal court in Burlington before The Honorable John M. Conroy, United States Magistrate Judge. At the hearing, Judge Conroy advised Miller of the charge against her and continued the matter until a probable cause and detention hearing scheduled for Wednesday, December 6, 2017, at 11:00 a.m. Ms. Miller will remain in custody until that time.
The case arises from an incident that occurred at the Wake Robin life care community in Shelburne, Vermont. On November 28, 2017, Vermont law enforcement, the FBI, and first responders reported to Wake Robin after learning of a potentially hazardous substance on the premises. Subsequent searches that day revealed a bottle labeled “ricin” in Miller’s residence. The Vermont Forensic Lab confirmed that the bottle contained ricin, a toxin regulated by the federal government due to the severe threat to public health it poses.Later in the evening of November 28, members of the FBI and the Vermont Department of Health (VDH) interviewed Miller at the UVM Medical Center. During the interview, Miller stated that she had an interest in plant-based poisons and had conducted internet research on how to make them. She stated that she manufactured ricin in the kitchen of her Wake Robin residence and, to test its potency, placed the ricin in the food or beverages of other residents.
On November 30, 2017, a team of FBI agents from across the Northeast completed searches of Wake Robin and Miller’s vehicle. The FBI personnel involved had specialized knowledge and training relating to hazardous material and weapons of mass destruction. The FBI has a Weapons of Mass Destruction Directorate (WMDD) that is focused on preventing WMDD incidents. The searches turned up no ricin or other hazardous material outside the confines of Miller’s residence. Inside Miller’s residence, the FBI located ricin, along with components from a number of plants, including apple, yew, cherry, castor and foxglove, which all can be used to produce toxins.The charge against Miller is an accusation only. She is presumed innocent unless and until proven guilty. If convicted, Miller could face up to five years in prison.
The USAO and FBI stressed that any threat posed by the substances in Miller’s apartment has been neutralized. There have been no fatalities. The Wake Robin community has cooperated with the FBI and state health officials to ensure all of its residents are safe.
United States Attorney Christina Nolan praised federal, state, and local law enforcement and first responders for their efficient, collaborative response to neutralize the threat and ensure the safety of the community. She specifically commended the FBI and its Joint Terrorism Task Force including representatives from U.S. Border Patrol and U.S. Customs and Border Protection. She further commended the Vermont State Police, the Shelburne Police Department, the Shelburne Fire Department, the Vermont National Guard 15th Civil Support Team, Vermont Hazardous Materials Response Team, the Vermont Department of Health, the University of Vermont Medical Center, the Center for Disease Control and Chittenden County State’s Attorney Sarah George, for coming together so swiftly and effectively to protect Vermonters. Ms. Nolan also thanked the FBI for its immediate deployment of substantial resources to Vermont.
First Assistant U.S. Attorney Eugenia A. P. Cowles is handling the prosecution of Miller on behalf of the USAO. Miller was represented for purpose of the initial appearance by David McColgin, Esq., of the Office of the Federal Public Defender.
Arizona Man Charged in Illegal Scheme to Import and Sell Prescription Drugs to US ConsumersRead the Press Release
PITTSBURGH - A resident of Scottsdale, Arizona was indicted by a federal grand jury in Pittsburgh on charges of conspiracy, charges of introduction into interstate commerce, with the intent to defraud, misbranded drugs, and two charges of mail fraud, Acting United States Attorney Soo C. Song announced today.
The four-count indictment, returned on Nov.28, named Keith Komar, 60, as the sole defendant.
According to the indictment presented to the court, the defendant participated in a conspiracy that involved the illegal importation of prescription drugs and the illegal sale of those drugs to consumers in the United States. The importation and sale of prescription medication is regulated by the Food and Drug Administration pursuant to the Federal Food, Drug and Cosmetic Act. Federal law and regulation require that certain drugs, particularly dangerous drugs, contain certain warnings and only be administered under a doctor's care pursuant to a doctor's prescription. A drug is considered "misbranded" if, for example, the drug is sold without a prescription, if it fails to include the approved warnings, if the drug was not approved by the FDA, or if the drug is manufactured in a facility not approved by the FDA.
Through various websites, Komar advertised for sale to consumers in the United States various dangerous drugs that were sold without a prescription, were not administrated under the care of a doctor, did not provide the appropriate warnings, and were not manufactured in facilities approved by the FDA. The website included a numerous misrepresentations about the drugs and the companies involved in the fraud. Some of these misbranded drugs were sent through the Postal Service to consumers, including consumers in the Western District of Pennsylvania, directly from India as arranged by Komar.
The law provides for amaximum total sentence of 48 years in prison, a fine of $1,000,000.00 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 Brendan T. Conway is prosecuting this case on behalf of the government.
The Food and Drug Administration - Office of Criminal Investigations, Immigration and Customs Enforcement/HomelandSecurity Investigations, Pennsylvania State Police and United States Postal Inspection Service 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.
Ann Arbor Man Pleads Guilty to Computer Intrusion CaseRead the Press Release
An Ann Arbor man pleaded guilty today to devising and executing a plan to access and cause damage to the Washtenaw County government computer system, announced Acting United States Attorney Daniel L. Lemisch.
Joining Lemisch in the announcement was David P. Gelios, Special Agent in Charge, Federal Bureau of Investigation and Sheriff Jerry Clayton, Washtenaw County Sheriff’s Office.
Konrads Voits, 27, pleaded guilty to damaging a protected computer before United States District Judge Robert H. Cleland. Voits is scheduled to be sentenced on April 5, 2018 at 1:30 pm in Port Huron. Voits remains in custody.
According to court records, Voits executed a classic “phishing” scheme – where Voits used both email and phone calls to Washtenaw County employees – to ultimately gain access to and control of the Washtenaw County computer network. Upon gaining access, Voits took the names, addresses, emails, and passwords of many former and present Washtenaw County employees. In addition, Voits accessed the Washtenaw County Jail records, altering the electronic records of at least one inmate in an effort to get that inmate released early. Thanks to a careful review by employees at Washtenaw County Jail, no inmates were released early. Washtenaw County spent thousands of dollars and numerous extra work hours responding to and investigating the breach, resulting in a loss of at least $235,488.
For damaging a protected computer, Voits is facing a maximum penalty under federal law of 10 years’ imprisonment and a $250,000 fine.
“Cyber intrusions affect individuals, businesses and governments. Computer hackers should realize that unlawfully entering another’s computer will result in a felony conviction and a prison sentence,” Lemisch said. “We applaud the dedication of so many hard-working law enforcement officers to take away this man’s ability to intrude into the computer systems of others.”
"The rigorous and technical investigative work undertaken in this case made today’s guilty plea possible and demonstrates the value of strong partnerships among Michigan law enforcement agencies in combatting and deterring cybercriminals", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI.
Sheriff Clayton stated, "Washtenaw County appreciates the collaborative efforts of our state and federal partners. This case serves as a warning and reminder to be vigilant and committed to achieving and maintaining the highest levels of CyberSecurity."
This investigation, which began in early 2017, was lead by the FBI’s Cyber Task Force in partnership with the Washtenaw County Sheriff’s Office and the Michigan State Police. The case is being prosecuted by Assistant U.S. Attorneys Patrick E. Corbett and Craig A. Weier.
30 November 2017
Willow Springs Man Indicted for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Willow Springs, Mo., man has been indicted by a federal grand jury for receiving and distributing child pornography.
Steven Edward Moffis, 31, of Willow Springs, was charged in an indictment returned by a federal grand jury on Nov. 14, 2017. The federal indictment replaces a criminal complaint that was filed against Moffis on Oct. 18, 2017. Moffis was arrested on Oct. 17, 2017, and remains in federal custody without bond.
The federal indictment alleges that Moffis received and distributed child pornography over the Internet from Feb. 14 through Oct. 12, 2017.
According to an affidavit filed in support of the original criminal complaint, a law enforcement officer identified Moffis’s computer on Sept. 20, 2017, while conducting an online child pornography investigation. Moffis’s computer allegedly shared 7,408 files of suspected child pornography on a peer-to-peer file-sharing network. The officer then learned that a detective in the Boone County, Mo., Sheriff’s Department had downloaded 690 suspected images of child pornography from Moffis’s computer.
On Oct. 6, 2017, law enforcement officers executed a search warrant at Moffis’s residence. According to the affidavit, investigators found one video and 41 images of child pornography on Moffis’s cell phone.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the West Plains, Mo., Police Department, the Willow Springs, Mo., Police Department, the Missouri State Highway Patrol and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Wilkes-Barre Man Sentenced for Heroin TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on November 29, 2017, United States District Court Judge Robert D. Mariani sentenced Nelson Soto, age 44, of Wilkes-Barre, Pennsylvania, to 10 months’ imprisonment for his role in a drug trafficking organization operating in Luzerne County.
According to United States Attorney David J. Freed, the charges stemmed from a conspiracy to distribute and possess with intent to distribute heroin, powder cocaine, and cocaine base, or “crack.” The organization was responsible for trafficking over 100 grams of heroin and 28 grams of crack. One hundred grams of heroin is the equivalent of approximately 4,000 individual doses of heroin. Soto plead guilty to a charge of conspiracy to distribute and possess with intent to distribute heroin pursuant to a plea agreement with the United States, and admitted that he was responsible for trafficking less than 10 grams of heroin.
This indictment was the result of a year-long investigation conducted by the U.S. Drug Enforcement Administration, Wilkes-Barre Police Department, and Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Wellford Woman Pleads Guilty to Forging PrescriptionsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Felicia L. Prysock, age 41, of Wellford, South Carolina, pled guilty to Aggravated Identity Theft, a violation of Title 18, United States Code, § 1028A; and, Obtaining a Controlled Substance by Fraud, a violation of Title 21, United States Code, § 843(a)(3). Chief Judge Terry L. Wooten presided at the hearing and will sentence Prysock on February 27, 2018.
Evidence presented at the change of plea established that Prysock filled ten different prescriptions forged in the names of her children and had Medicaid pay for them. The conduct occurred between July 2016 and April 2017. The investigation revealed that these prescriptions were for Schedule II opioids, such as oxycodone, hydrocodone, and Adderall.
U.S. Attorney Drake stated the statutorily mandated penalty faced by Prysock for a violation of Title 18, United States Code, § 1028A is imprisonment for two years, with a potential fine up to $250,000. The maximum penalty for a violation of Title 21, United States Code, § 843(a)(3) is four years in prison and a fine of $250,000.
The United States Department of Health and Human Services, Office of the Inspector General, along with the United States Drug Enforcement Administration, investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Uniontown Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - A resident of Uniontown, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotic laws, Acting United States Attorney Soo C. Song announced today.
Jamal Eddings, age 36, pleaded guilty to one count before United States District Judge David C. Cercone. In connection with the guilty plea, the court was advised that from January 2010 to June 2015, in the Western District of Pennsylvania and elsewhere, Eddings conspired with others to distribute and possess with intent to distribute at least 100 grams of cocaine.
Judge Cercone scheduled sentencing for April 19, 2018, at 11:00 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $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.
Acting United States Attorney Song commended the Federal Bureau of Investigation, which led the multi-agency investigation of this case. The investigation also included the Drug Enforcement Administration, the Fayette County Drug Task Force, the Pennsylvania Attorney General’s Office, the Pennsylvania State Police, and the United States Postal Inspection Service. Assistant United States Attorneys Heidi M. Grogan and Troy Rivetti prosecuted this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Attorney's Office Settles Fair Housing Act Lawsuit against Bridgeport Housing AuthorityRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced a settlement of a government lawsuit alleging that the Housing Authority for the City of Bridgeport, doing business as Park City Communities, (“HACB”), violated the Fair Housing Act by refusing to provide reasonable accommodations to a woman with disabilities who lives in one of the housing authority’s properties.
In November 2016, the U.S. Attorney’s Office filed a complaint in federal court alleging that HACB discriminated against the victim on the basis of disability, in violation of the Fair Housing Act. The U.S. Department of Housing and Urban Development (“HUD”) attempted to resolve the case with HACB before referring it the U.S. Department of Justice. The complaint alleges that, in July 2014, the victim submitted a reasonable accommodation request to HACB for a transfer out of her apartment because she experienced anxiety and depression due to a homicide that occurred in front of her home. In May 2016, a physician diagnosed the victim with Post Traumatic Stress Disorder. HACB denied the request after concluding that the request was “not reasonable.”
In January 2017, after the government filed the lawsuit, the victim was moved to another HACB property and HACB incurred all of the victim’s moving expenses.
Under this settlement, HACB will pay $10,000 to the victim. The settlement also requires HACB employees to undergo fair housing training, and HACB to provide periodic reports to the Justice Department.
“As this lawsuit demonstrates, we will vigorously pursue violations of the Fair Housing Act in Connecticut,” said U.S. Attorney Durham.
“Individuals with disabilities shouldn’t be denied the accommodations that allow them to fully enjoy their homes,” said Anna Maria Farias, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s settlement sends a clear message that HUD and the Department of Justice are fully committed to ensuring that housing providers, especially housing authorities, meet their obligation to comply with federal fair housing laws.”
In a related matter, on November 15, 2017, the U.S. Department of Justice filed a lawsuit against HACB alleging violations of Section 504 of the Rehabilitation Act, Title II of the Americans with Disabilities Act, and the Fair Housing Act. The lawsuit is pending.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Justice Department’s Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been discriminated against by the HACB can contact the Civil Rights Division at 1-800-896-7743, mailbox number 992, or by email at [email protected].
U.S. Attorney Announces New Grant to Expand Efforts to Combat Gun ViolenceRead the Press Release
U.S. Attorney Annette L. Hayes announced today the expansion of the Project Safe Neighborhood program in the Puget Sound region, with additional focus on crime gun intelligence in South King and Pierce Counties. The U.S. Department of Justice awarded $500,000 to the program which will enhance intelligence sharing between law enforcement agencies so that guns used in crimes can be linked, helping law enforcement build cases for prosecution.
“Forensic tools from ATF, and intelligence sharing between law enforcement agencies have been key to identifying felons with guns who need to be off the street,” said U.S. Attorney Annette L. Hayes. “In three of the cases we are highlighting today, the guns recovered have been tied to multiple shootings – in one case as many as 9 shots fired incidents in a short period of time. Combating gun violence is a top priority of the Justice Department and my office.”
The Project Safe Neighborhood grant provides funding for a Special Assistant United States Attorney to review every firearms case in King County to see if it is appropriate for federal prosecution. Grant money in 2017-2018 will provide for additional personnel to leverage the Gun Crime Intelligence Center to make connections between shooting incidents in south King and Pierce Counties. This information helps law enforcement identify, arrest and prosecute high-impact offenders.
“ATF is proud to partner with local law enforcement and the U.S. Attorney’s Office to bring the most advanced forensic science to the battle against gun crime,” said Darek Pleasants, Special Agent in Charge, ATF Seattle. “The National Integrated Ballistic Information Network (NIBIN) is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. Since the program’s inception in 1999 through 2016, NIBIN partners have captured approximately 2.8 million images of ballistic evidence and confirmed more than 74,000 NIBIN hits.”
Unveiled in May 2001, Project Safe Neighborhoods (PSN) is a comprehensive and strategic approach to gun law enforcement. PSN is a nationwide commitment to reduce gun crime in America by networking both new and existing local programs that target gun crime and then providing them with the resources and tools they need to succeed. Implementation at the local level has fostered close partnerships between federal, state and local prosecutors and law enforcement.
Two arrested and charged after ordering fentanyl from ChinaRead the Press Release
Two men were arrested and charged with attempted possession of fentanyl with intent to distribute, law enforcement officials said.
Michael B. Lawrence, 43, of Youngstown, and Dainon L. Jones, 37, of Girard, were arrested after accepting a package from China that they believed contained approximately 273 grams of methoxyacetyl fentanyl.
Homeland Security Investigations special agents became aware on Nov. 20 of a suspicious package shipped by Wei Zhu of Shanghai, China, to an Erik Fields at 731 Judson Ave. in Youngstown. Previous packages shipped by Zhu have contained large amounts fentanyl seized in Seattle, New York and Detroit, according to court documents.
The package shipped to Youngstown was labeled as containing “pants zipper”. Law enforcement examined the parcel a discovered a white powder consistent with fentanyl. A forensic test revealed the contents to be approximately 273 grams of methoxyacetyl fentanyl, according to court documents.
A search of law enforcement databases revealed no Erik Fields living at 731 Judson Ave. Undercover agents made a controlled delivery at 731 Judson Ave. on Nov. 29. Jones arrived at the address approximately two minutes later in a silver Mercedes, made contact with the resident, retrieved the package and drove away with it, according to court documents.
Jones drove to 3311 Idlewood in Youngstown, where he picked up Lawrence. They drove to a nearby gas station, where Lawrence exited the Mercedes with the package. He took a bus to downtown Youngstown, where Jones again picked him up in his Mercedes. They then drove together to 57 East Wilson in Girard and entered the front door, according to court documents.
Both Jones and Lawrence took off running as law enforcement approached the home in Girard. Both eventually were arrested, according to court documents.
“The amount of fentanyl these defendants are accused of bringing to downtown Youngstown from China could have killed hundreds of people,” said U.S. Attorney Justin E. Herdman. “Aggressive enforcement, combined with increased prevention and education efforts, is our best chance to turn the tide on this epidemic.”
“The opioid crisis touches almost every American community,” said Steve Francis, Special Agent in Charge of Homeland Security Investigations’ Detroit office. “HSI and our partners are proud to be at the tip of the spear, using our broad authorities to combat the groups and individuals allegedly involved in this deadly trade.”
This case was investigated by HSI, the U.S. Postal Inspection Service, U.S. Customs and Border Protection, the Mahoning Valley Law Enforcement Task Force, the TAG Drug Task Force and the DEA. The case is being prosecuted by Assistant U.S. Attorney David Toeper.
If convicted, the sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines, which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two South Florida Residents Sentenced to over 5 Years for Conspiring to Commit Wire FraudRead the Press Release
Joseph Hilton, a/k/a Joseph Yurkin, a/k/a Joseph Starr, 57, of Lake Worth, and Adam Forman, 48, of Coconut Creek, were sentenced today to 63 months imprisonment for conspiracy to commit wire fraud. The court also ordered Hilton to pay $1.4 million in restitution, and ordered forfeiture in the amount of $1.4 million and $600,000 against Hilton and Forman, respectively.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), and Tony Pustizzi, Chief, Coral Springs Police Department, made the announcement.
According to the allegations contained in the Information, from in or about September 2013, and continuing through in or around August 2016, Hilton and Forman operated a series of businesses purporting to be law firms, legal referral firms, or providers of support services to law firms (collectively, the “Foreclosure Firms”). Mortgage holders were contacted by the defendants and falsely told that the Foreclosure Firms could provide legal assistance with mortgage modifications and foreclosure defense.
The defendants represented, inter alia, that (i) the Foreclosure Firms were law firms comprised of licensed attorneys, (ii) the attorneys were experienced and highly skilled at halting the foreclosure process and enabling mortgage holders to stay in their homes, and (iii) the attorneys could reduce the principal and monthly payments on the mortgage holder’s loan.
Moreover, in order to disguise the Foreclosure Firms as law firms with licensed attorneys, Hilton and Forman hired attorneys for limited purposes, such as document review, without advising them of the false and fraudulent statements being made to the mortgage holders. Employees of the Foreclosure Firms created letters and legal pleadings using the attorneys’ names without the attorneys’ review, knowledge or consent. The total loss amount is approximately $2,000,000.
Mr. Greenberg commended the investigative efforts of USSS and the Coral Springs Police Department. This case is being prosecuted by Assistant United States Attorney Robert Juman.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Real Estate Investors Sentenced for Rigging Bids at Northern California Public Foreclosure AuctionsRead the Press Release
Two real estate investors were sentenced yesterday for their role in a conspiracy to rig bids at public foreclosure auctions in Northern California, the Department of Justice announced.
Gregory Casorso and Javier Sanchez were charged on Nov. 19, 2014, in an indictment returned by a federal grand jury in the Northern District of California. Casorso and Sanchez were convicted after trial on June 2, 2017, of conspiring to rig bids at foreclosure auctions in Alameda County, California. Sanchez was also convicted of bid rigging in Contra Costa County, California. Yesterday, Casorso was sentenced to serve 18 months in prison. In addition to his term of imprisonment, Casorso was ordered to pay a criminal fine of $20,000. Sanchez was sentenced to serve 21 months in prison. Sanchez was also ordered to pay a criminal fine of $88,140.
“The Division remains committed to seeking appropriate sentences, including prison terms and criminal fines, for individuals—like the real estate investors sentenced yesterday—who have been convicted of antitrust crimes that thwart free market competition,” said Assistant Attorney General Makan Delrahim of the Department of Justice Antitrust Division. “We offer our thanks to our law enforcement partners at the FBI for their valuable work on this investigation.”
The evidence at trial showed that Casorso and Sanchez conspired with others to rig bids for hundreds of properties sold at foreclosure auctions. The conspirators designated the winning bidders to obtain selected properties at the public auctions and negotiated payoffs among themselves in return for not competing with one another. They subsequently conducted private auctions among themselves at or near the courthouse steps where the public auctions were held, awarding the properties to the conspirators who submitted the highest bids in those private auctions.
When properties are sold at public auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with the remaining proceeds paid to the homeowner.
The sentence is a result of an ongoing investigation into bid rigging at public real estate foreclosure auctions in California’s San Francisco, San Mateo, Alameda, and Contra Costa counties, which is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Two Men Sentenced in Methamphetamine-Trafficking ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TRUNG PHAM, age 38, of Los Angeles, California, and TOMMY WELLS, age 40, of New Orleans, were sentenced yesterday after previously pleading guilty to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically PHAM pled guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine, and WELLS pled guilty to conspiring to distribute and possess with intent to distribute 50 grams or more of a mixture of methamphetamine.
U.S. District Judge Ivan L.R. Lemelle sentenced PHAM to 10 years’ incarceration, followed by 5 years of supervised release. WELLS was sentenced to 5 years’ incarceration, followed by 4 years of supervised release.
According to court documents, in 2016, PHAM was a California-based drug trafficker who was sending parcels of methamphetamine via common carriers to codefendant STEVEN LYONS in New Orleans. LYONS would then sell quantities of methamphetamine to WELLS and others, who would redistribute the methamphetamine in the New Orleans area. LYONS previously pled guilty to conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine and is scheduled to be sentenced on February 28, 2018.
Acting U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Amtrak Police, and St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
Two Boston Gang Members Plead Guilty to Cocaine Distribution ChargesRead the Press Release
BOSTON – Two members of the Orchard Park Trailblazers pleaded guilty on Tuesday, Nov. 28, 2017, in federal court in Boston to selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.
Lyndon Scott, a/k/a “Skizzy,” 27, of Boston, and Raul Williams, a/k/a “Boobie,” 26, of Boston, each pleaded guilty to one count of distribution of cocaine base within 1,000 feet of a school and are scheduled to be sentenced on Feb. 27, 2018.
On April 14, 2017, Scott sold cocaine base to a cooperating witness near an elementary school in Roxbury. On April 28, 2016, Williams sold cocaine base to a cooperating witness near another school in Roxbury.
Scott and Williams are two of 12 defendants arrested and charged in June 2017 following a nearly two-year investigation into the high concentration of crime in and around the Orchard Gardens Development, the largest publically funded housing development in Roxbury, which is also adjacent to Dudley Square and neighborhood schools. According to court documents, the crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers, who allegedly have active feuds with rival gangs throughout the city that have produced numerous crimes of violence.
The charge of distribution of a controlled substance within 1,000 feet of a school provides for a mandatory minimum sentence of one year and a maximum sentence of 40 years in prison, a minimum of six years and up to a lifetime of supervised release and a fine of up to $2 million. 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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today.
Tucson Man Returned to Prison for Failing to Complete Sex-Offender TreatmentRead the Press Release
TUCSON, Ariz. – Last month, Juan Valentino Coronado, 46, of Tucson, Ariz., and enrolled member of the Pascua Yaqui Tribe, was sentenced by U.S. District Judge James A. Soto to over 7 months in prison for failing to participate in sex-offender treatment, which he had been ordered to do as part of a previous conviction for sexually abusing a minor.
Coronado was originally convicted and sentenced on Oct. 24, 2014, for abusive sexual contact of a minor for an offense committed while he was on the Pascua Yaqui Reservation in 2013. His supervised release was first revoked in March 2015 because he had contact with a minor. He was imprisoned for an additional five months and, after serving that prison term, placed back on federal supervision. In February 2017, Coronado was charged with another violation, this time for unsatisfactory participation in sex offender treatment. He challenged those allegations, but after a two-day evidentiary hearing, both the federal magistrate judge and district judge found that Coronado had failed to complete his sex-offender treatment.
“Our compliments and thanks go to the U.S. Probation Department for closely monitoring the defendant after his release from prison,” stated First Assistant U.S. Attorney Elizabeth A. Strange. “It is not enough to simply punish, through a term of imprisonment, those who commit sexual crimes against minors. Sex-offender treatment is an important tool in ensuring that offenders don’t revert to their old ways, and our office will be vigilant in demanding that such offenders meet all of their court-ordered responsibilities even after they are released from prison.”
Upon release from prison, Coronado will be returned to federal supervised release, for the third time, for an additional 60 months. His special conditions once again include that he participate in and complete sex offender treatment.
The investigation in the underlying case was conducted by the Pascua Yaqui Police Department and the Federal Bureau of Investigation. The prosecution was handled by Micah Schmit, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBERS: CR-14-0350-TUC-JAS
RELEASE NUMBER: 2017-116_Coronado
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Togolese National Sentenced for Mail FraudRead the Press Release
BOSTON – A Togolese national charged with mail fraud pleaded guilty and was sentenced today in federal court in Boston.
Roukayatou Damerogo, 31, pleaded guilty to one count of theft of mail before U.S. District Court Judge Dennis F. Saylor IV, who then sentenced Damerogo to time served. Following the hearing, Damerogo was transferred into the custody of Immigration and Customs Enforcement and will be deported to Togo.
In August 2017, a Cape Cod resident contacted the United States Post Office (USPS) to report overdue mail deliveries. Further inquiry showed that an unknown person had placed a “mail hold” on the customer’s residence. When the customer traveled to his USPS branch to remove the hold and to pick up his mail, he found a box addressed to him containing 10 new Fitbit Exercise Bands. The customer had previously been the victim of fraudulent credit card transactions and believed the Fitbit purchases stemmed from the compromised credit card.
On Aug. 16, 2017, an individual purporting to be the USPS customer called USPS inquiring about the package of Fitbits. USPS informed law enforcement and they coordinated a time for the package to be delivered to the fraudulent customer, later revealed to be Damerogo. Immediately after retrieving the package, law enforcement stopped Damerogo, questioned her, and placed her under arrest.
Acting United States Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Cape & Islands District Attorney Michael O’Keefe; and Brewster Police Chief Richard J. Koch Jr. made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Three Men Sentenced in Connection with Plot to Kidnap and Murder Husband Who Refused to Grant His Wife A Religious DivorceRead the Press Release
Joon H. Kim, Acting United States Attorney for the Southern District of New York, announced that AHARON GOLDBERG, SHIMEN LIEBOWITZ, and BINYAMIN GOTTLIEB were sentenced today for their respective roles in devising and covering up a plot to kidnap and murder an individual in order to obtain a religious divorce for that individual’s wife. GOLDBERG pled guilty on September 28, 2017, to conspiring to commit kidnapping and murder for hire. LIEBOWITZ pled guilty on July 27, 2017, to conspiring to commit extortion. GOTTLIEB pled guilty on September 15, 2017, to helping to conceal the plot from law enforcement. U.S. District Judge Sidney H. Stein, who presided over today’s sentencings, sentenced GOLDBERG to three years in prison, LIEBOWITZ to two years in prison, and GOTTLIEB to one year’s probation.
Acting U.S. Attorney Joon H. Kim said: “The defendants were involved in a terrifying plot to kidnap, and ultimately to kill, their intended victim. Fortunately, the person they hired to carry out their crime alerted the FBI, and now the defendants have been held accountable for their crimes.”
According to the Complaints and statements made during court proceedings and in public filings:
According to Jewish religious law as observed in certain communities, in order to effect a divorce, a husband must provide his wife with a document known as a “get.” A woman whose husband will not consent to a divorce is known as an “agunah.” In the absence of the husband’s issuing a get, an agunah may be released from her marriage only through the husband’s death.
In or about July 2016, the defendants AHARON GOLDBERG and SHIMEN LIEBOWITZ began working to orchestrate the kidnapping of an individual who refused to grant a get to his wife (the “Intended Victim”). The purpose of the kidnapping was to imprison and torture the Intended Victim until he agreed to give his wife a get. BINYAMIN GOTTLIEB, an associate of GOLDBERG and LIEBOWITZ, placed them in touch with a private investigator (the “CS”), whom GOLDBERG and LIEBOWITZ solicited to personally carry out the kidnapping and torture in exchange for payment. Unbeknownst to GOLDBERG and LIEBOWITZ, however, the CS reported the plot to the Federal Bureau of Investigation and recorded several of his meetings with the defendants.
In July 2016, the CS met with GOLDBERG, in GOTTLIEB’s presence, to discuss the kidnapping plot. Although LIEBOWITZ was not present at the beginning of the meeting, he arrived and joined the conversation after several minutes. The CS made an audio recording of the meeting using a hidden recording device. During the meeting and after LIEBOWITZ arrived, the parties discussed, among other things, the logistics of the kidnapping plot, including the possibility of kidnapping the Intended Victim in the United States and holding him captive in a cage, or kidnapping him in Ukraine and transporting him to Israel. LIEBOWITZ also provided the CS with details to assist the CS in carrying out the kidnapping plot. During the meeting, GOLDBERG and LIEBOWITZ also agreed to advance the CS $25,000 to assist in efforts to plan the kidnapping. Within days of this initial meeting, an envelope containing approximately $25,000 cash was delivered to the CS.
On or about August 9, 2016, the CS met with LIEBOWITZ and GOLDBERG in Kiryas Joel, New York. During this meeting, the CS, GOLDBERG, and LIEBOWITZ discussed additional details of the kidnapping plan, including logistics and the cost associated with a plan to kidnap the Intended Victim overseas. This conversation was also recorded.
On August 12, 2016, the CS again met with LIEBOWITZ and GOLDBERG, at which time they provided the CS with an additional payment of over $20,000 for use in making arrangements for the kidnapping. In this meeting, which was also recorded, the CS, GOLDBERG and LIEBOWITZ further discussed their plan to kidnap the Intended Victim in the United States and to obtain the get from him in this country.
Subsequent to the August 12, 2016, meeting, the CS had additional conversations with GOLDBERG, in which GOLDBERG discussed his desire not merely to kidnap the Intended Victim, but also to kill him.
On August 25, 2016, the CS met LIEBOWITZ in Central Valley, New York. During the meeting, LIEBOWITZ paid the CS an additional sum of about $12,000 to carry out the kidnapping. Also during the meeting, the CS spoke by phone with GOLDBERG, who was still in Israel, about the kidnapping plan, which the CS and GOLDBERG referred to in code as a “wedding,” as well as GOLDBERG’s desire that the CS kill the Intended Victim. This conversation was also recorded.
On or about September 2, 2016, the CS had another recorded conversation with LIEBOWITZ, during which LIEBOWITZ indicated his understanding that the Intended Victim would be murdered as part of the plan.
Subsequently, on September 6, 2016, LIEBOWITZ and GOLDBERG again met with the CS. During that meeting, LIEBOWITZ and GOLDBERG paid the CS an additional $16,000. The CS led LIEBOWITZ and GOLDBERG to believe that the CS had captured the Intended Victim, had tortured the Intended Victim in order to force him to provide a get, and that the Intended Victim had so far refused to do so. The CS discussed options for what to do with the Intended Victim given his unwillingness to give the get. GOLDBERG replied by referencing his prior directive to the CS to kill the Intended Victim: “I’ve told you whatever I’ve told you, and I even got an okay from one of the rabbis. He [the Intended Victim] cannot slip out of your fingers.” LIEBOWITZ then interjected, “I’m on his side, whatever he says I’m with him.” GOLDBERG resolved that the only way forward was to put a bullet in the Intended Victim. LIEBOWITZ interjected that if LIEBOWITZ were to be killed, arrangements would have to be made to ensure that there was a witness who could verify that the Intended Victim was dead (and that the wife could remarry) without leading back to LIEBOWITZ and his co-conspirators. LIEBOWITZ later stated, “Somebody is going to need to tell a rabbi that I have saw” with respect to the death of the Intended Victim. GOLDBERG and the CS then discussed the possibility of burying the Intended Victim and seeing to it that his body was exhumed and identified using DNA. LIEBOWITZ interjected, “There is no way to put him out on the street somewhere?” The September 6 conversation ended with FBI agents arresting LIEBOWITZ and GOLDBERG.
On September 11, 2016, FBI agents interviewed GOTTLIEB about his knowledge of the plot. At that time, Gottlieb stated that he had no knowledge of any conversation where the plot was discussed, despite the fact that he had been present at the initial meeting between the CS, GOLDBERG, and LIEBOWITZ.
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In addition to their prison sentences, GOLDBERG, 56, of Bnei Brak, Israel, and LIEBOWITZ, 26, of Monroe, New York, were each sentenced to three years of supervised release. GOTTLIEB 34, is from Airmont, New York.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Police Department, working through the Joint Organized Crime Task Force.
This case is being handled by the Office’s Violent and Organized Crime Unit and Public Corruption Unit. Assistant United States Attorneys Scott Hartman and Paul M. Monteleoni are in charge of the prosecution.
Thirteen Defendants Charged in Manhattan Federal Court in Scheme to Take over Ride-Sharing Driver AccountsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and David E. Beach, Special Agent in Charge of the U.S. Secret Service, New York Field Office (“USSS”), announced charges today against 13 individuals in connection with a scheme to defraud drivers of two ride-sharing companies (“Company-1” and “Company-2”) by accessing those drivers’ accounts without authorization in order to divert driver funds to bank accounts controlled by the defendants and other members of the scheme (the “Scheme”). Through the course of the Scheme, the defendants compromised thousands of Company-1 and Company-2 driver accounts, and diverted millions of dollars from those accounts. Defendants LOUIS PINA, MALIK GRAY, GEORGE JOSEPH, AKEEM KRUBALLY, THERESA OUTERBRIDGE, DEVON WILLIAMS, HAKEEM BALDEO, QUINTEEN LYNCH, KHALID NAZZAL, FRANCISCO VIRUET, JOHNNY SERRANO, THALIA CAQUIAS, and TANESHA FORD were charged in two Complaints (the “Complaints”) unsealed today in Manhattan federal court. WILLIAMS, BALDEO, LYNCH, NAZZAL, VIRUET, CAQUIAS, and FORD were arrested today and presented this afternoon before U.S. Magistrate Judge Debra Freeman in Manhattan federal court.
Acting Manhattan U.S. Attorney Joon H. Kim said: “These 13 defendants allegedly developed a sophisticated scheme to swindle hard-working drivers out of their income. Through elaborate identity theft and phishing, the defendants allegedly diverted millions of dollars from company accounts to line their own pockets. Thanks to the skilled investigative work of the Criminal Investigators of the U.S. Attorney’s Office and the U.S. Secret Service, the defendants now will be held to account.”
David E. Beach, Special Agent in Charge of the USSS said: “The success in this case demonstrates the investigative capabilities of the United States Secret Service and the collaborative efforts of our law enforcement partners, specifically the U.S. Attorney’s Office Southern District of NY, Federal Bureau of Investigation’s Westchester County Safe Streets Task Force, and Westchester County District Attorney’s Office. The Secret Service will continue to develop innovative ways to protect the financial infrastructure of the United States and combat criminals who use emerging technologies to conduct business.”
According to allegations contained in the two Complaints[1]:
Overview of the Scheme
The charges in the Complaints result from a Scheme to defraud livery drivers and ride-sharing companies using mobile ride-sharing applications. The Scheme targeted drivers associated with Company-1 and Company-2. Scheme members called Company-1 and Company-2 drivers posing as Company-1 and Company-2 representatives, and deceived the drivers into providing unique personal identifiers and other information that was then used to obtain unauthorized access into the online Company-1 and Company-2 driver accounts. Once members of the Scheme logged into Company-1 and Company-2 driver accounts without authorization, they altered information in those compromised accounts and diverted driver funds to bank accounts they controlled.
Overview of the Company-1 Scheme
With respect to the Scheme involving Company-1, members of the Scheme ordered rides on the Company-1 mobile application (“App-1”), which provided Scheme members with the driver’s name, picture, and an anonymized phone number so that the rider could communicate with the driver. Scheme members canceled the rides shortly after receiving the driver’s anonymized phone number. The Scheme members then called the driver on the driver’s anonymized telephone number impersonating a representative from Company-1. During the call, the Scheme member would ask the driver for the driver’s true telephone number and, while remaining on the phone with the driver, the Scheme member would attempt to log into the driver’s Company-1 account. The driver then received a text message from Company-1 containing a unique code on the driver’s cellphone, and the Scheme member impersonating a Company-1 representative then requested that the driver provide this unique code to the Scheme member. In addition, during the call, Scheme members would request that the driver provide the driver’s license number.
Using the victim driver’s telephone number, driver’s license number, and the unique code, Scheme members thereafter logged into the victim driver’s Company-1 account through App-1 or the Company-1 web interface without the driver’s authorization. After Scheme members obtained unauthorized access to the victim driver’s account, they changed the bank account information associated with the account to a bank account that either they or another Scheme member controlled. Once the victim driver’s account had been compromised and the bank account information altered, funds that the victim driver earned from Company-1 were diverted to Scheme members’ bank accounts.
Overview of the Company-2 Scheme
With respect to the Scheme involving Company-2, members of the Scheme ordered rides on the Company-2 mobile application (“App-2”), which provided Scheme members with the driver’s name, picture, and an anonymized phone number so that the rider could communicate with the driver. Scheme members canceled the rides shortly after receiving the driver’s anonymized phone number. The Scheme members then called the driver on the driver’s anonymized telephone number impersonating a representative from Company-2. During the call, the Scheme member would ask the driver for the driver’s true telephone number. The Scheme member would then tell the victim driver that Company-2 would be sending the driver a link to a website that the driver must use to verify the driver’s information in order to obtain a bonus from Company-2.
Thereafter, the Scheme member sent the victim driver a link to a malicious website (the “Fraudulent Company-2 Website”), that was controlled by Scheme members. The Fraudulent Company-2 Website was designed to appear as if it were a website maintained by Company-2, and requested, among other information, the driver’s login credentials, including the driver’s phone number, email address, and unique Company-2 password. Once the victim driver had entered this information on the Fraudulent Company-2 Website, Scheme members used the driver’s login credentials to log into the driver’s account through App-2 or the Company-2 web interface without the driver’s authorization. Once Scheme members logged into the victim driver’s Company-2 account, Scheme members changed the bank account information associated with the account to a bank account that either they or another Scheme member controlled. Once the victim driver’s account had been compromised and the bank account information altered, funds that the victim driver earned from Company-2 were diverted to Scheme members’ bank accounts.
The Defendants' Participation in the Scheme
Through the course of the Scheme, the defendants compromised thousands of Company-1 and Company-2 driver accounts, and stole millions of dollars from Company-1 and Company-2 driver accounts. After receiving unauthorized transfers from Company-1 and Company-2, Scheme members withdrew the fraudulent proceeds from bank accounts, typically through large cash withdrawals or large purchases.
Scheme members played different, and, at times, multiple roles in the Scheme. “Recruiters” – including LOUIS PINA, MALIK GRAY, GEORGE JOSEPH, and DEVON WILLIAMS – used social media, including Snapchat, to bring new people into the Scheme and to coordinate the Scheme.
“Callers” – including LOUIS PINA, MALIK GRAY, GEORGE JOSEPH, DEVON WILLIAMS and HAKEEN BALDEO – made calls to drivers impersonating Company-1 and Company-2 representatives using either their personal phones or a service that allows users to mask the number they use to make phone calls to victim drivers, during which they tricked drivers into providing personal information to allow them to obtain unauthorized access to their driver accounts.
“Account Hackers” – including LOUIS PINA, AKEEM KRUBALLY, DEVON WILLIAMS, and JOHNNY SERRANO – logged into Company-1 and Company-2 driver accounts without authorization to change bank account information.
“Money Receivers” – including LOUIS PINA, MALIK GRAY, GEORGE JOSEPH, AKEEM KRUBALLY, THERESA OUTERBRIDGE, HAKEEM BALDEO, QUINTEEN LYNCH, KHALID NAZZAL, FRANCISCO VIRUET, JOHNNY SERRANO, THALIA CAQUIAS, and TANESHA FORD – received unauthorized transfers into their bank accounts from Company-1 and Company-2 as a result of the Scheme, and then withdrew large amounts of cash from those accounts shortly following these unauthorized transfers.
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PINA, 23, of Bronx, NY; GRAY, 21, of Mount Vernon, NY; JOSEPH, 22, of Mount Vernon, NY; KRUBALLY, 21, of Mount Vernon, NY; OUTERBRIDGE, 27, of Mount Vernon, NY; WILLIAMS, 22, of Mount Vernon, NY; BALDEO, 20, of Rye Brook, NY; LYNCH, 27, of Mount Vernon, NY; NAZZAL, 22, of Yonkers, NY; VIRUET, 19, of Bronx, NY; SERRANO, 25, of Bronx, NY; CAQUIAS, 20, of Bronx, NY; and FORD, 21, of Mount Vernon, NY, are each charged with one count of conspiring to commit wire fraud, which carries a maximum sentence of 20 years in prison, one count of conspiracy to commit access device fraud, which carries a maximum sentence of seven-and-a-half years in prison, and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison that must be imposed consecutively to any other sentence. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York and the USSS. Mr. Kim further thanked the Westchester County District Attorney’s Office for their assistance and cooperation throughout this investigation, and also thanked the FBI’s Westchester County Safe Streets Task Force for their assistance.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sheb Swett and Noah Solowiejczyk are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaints and the descriptions of the Complaints set forth below constitute only allegations and every fact described should be treated as an allegation.
Six Defendants in Vast Cocaine Conspiracy SentencedRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announced that six defendants in a far-reaching conspiracy to distribute cocaine were sentenced to Federal prison on Wednesday, November 29, 2017, by the Honorable Hugh Lawson, Senior United States District Judge in Valdosta.
Those individuals and their respective sentences include:
Ivan Starks, age 47 of Ocala, Florida- 188 months
Ozell Lane, Jr., age 39 of Adel, Georgia - 96 months
Marvin Dumas, age 52 of Tifton, Georgia- 78 months
Willis Lee Young, age 41 of Adel, Georgia- 57 months
Adrian Lloyd, age 42 of Tifton, Georgia- 57 months
Chris Waters, age 50 of Tifton, Georgia- 48 months.
There is no parole in the Federal system.
From January 1, 2013, through December 10, 2014, the defendants acquired kilogram quantities of cocaine ultimately distributed throughout Cook, Colquitt and Tift County, Georgia. Between August 29, 2014, and September 28, 2014, intercepted communications revealed the defendants along with other members of the conspiracy participated in the acquisition and further distribution of between 10 to 15 kilograms of cocaine per week. On September 25, 2014, a traffic stop of conspirators Jose Martinez, Jessica Tellez, and Juan Sanchez Hidalgo resulted in the seizure of $225,937 of drug money en route to Juan Pablo Cuevas. Search warrants executed that same date on residences of Maurice Todd Carter, James Waters, and other defendants resulted in the seizure of an additional approximately $50,000, 3 kilograms of cocaine and 11 firearms. The listed defendants are the latest to be sentenced in this far-reaching conspiracy. Twelve other defendants have already been sentenced for their role in the ongoing illegal drug enterprise.
“The outstanding cooperation between federal, state and local law enforcement in this investigation has brought about the dismantling of a very significant drug distribution enterprise, which was a major supplier of illicit drugs in the South Georgia area,” stated U.S. Attorney Charles E. Peeler. “The work of the investigators and prosecutors on this matter have made our communities in this area safer places to live.”
“Numerous communities in middle Georgia can sleep better tonight knowing that this far-reaching cocaine trafficking organization has been dismantled,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division. “This case demonstrates how DEA and its local, state and federal law enforcement partners form a united front to disrupt, dismantle and destroy drug trafficking organizations.”
“These convictions demonstrate the great work of law enforcement at all levels to investigate and prosecute the distribution of narcotics affecting Georgia and our surrounding states. The GBI remains committed to working with our local and federal partners in drug enforcement to address these types of crimes and make our communities safer,” commented Special Agent in Charge Kim Baker of the GBI Region 15 Field Office.
The case was investigated by the Drug Enforcement Administration, Georgia Bureau of Investigation, Mid-South Narcotics Task Force, and the Tift, Crisp, Cook, and Colquitt County Sheriff’s Offices. Assistant United States Attorney Julia Bowen is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-752-3511.
Sex Offender Sentenced to Federal Prison on Child Pornography ChargeRead the Press Release
PROVIDENCE – A registered sex offender previously convicted in Rhode Island state court of being in possession of child pornography was sentenced today to 10 years in federal prison for again being in possession of child pornography. He did so while on state probation for possessing child pornography.
Victor C. Radbill, 32, of Woonsocket, pleaded guilty in U.S. District Court on September 12, 2017, to a federal charge of possession of child pornography. Radbill admitted to the Court that he was the owner of a cell phone SD card containing child pornography found inside a dryer at a laundromat in October 2016.
At sentencing, U.S. District Court Judge John J. McConnell, Jr. also ordered Radbill to serve 5 years supervised release upon completion of his term of incarceration. The government recommended the court impose a sentence of 10 years in prison, the U.S. Sentencing Guideline sentence in this matter.
Radbill’s sentence is announced by Acting United States Attorney Stephen G. Dambruch, Lincoln Police Chief Brian W. Sullivan, and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to information presented to the Court, on October 22, 2016, a cell phone SD card was found inside a dryer at a Manville laundromat. An individual at the laundromat viewed the contents of the SD card and discovered images of child pornography and “selfies” of a person he recognized as a customer of the laundromat. A Lincoln Police Department detective who investigated the matter identified Radbill on a surveillance photograph taken inside the laundromat on the afternoon the SD card was discovered. The matter was referred to the Rhode Island State Police Internet Crimes Against Children (ICAC) task force.
A court authorized search of the SD card by detectives assigned to the ICAC task force revealed more than 500 images and 3 videos of child pornography. The forensic review of the SD card also revealed “selfies” of Radbill. The forensic examination revealed that the “selfies” of Radbill were taken on the same model cell phone Radbill admitted to owning.
Investigators determined that the images of child pornography were possessed by Radbill at the same time he was serving a state sentence of 5 years suspended with probation, having been convicted of possession of child pornography.
The case was prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Denise M. Barton.
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Several Philadelphia Men Charged with Distributing Heroin, Fentanyl, Cocaine, and Cocaine BaseRead the Press Release
Lesandro Perez (a/k/a “Toast”) 22; Joshua Brown (a/k/a “Jash”) 22; Hugh Wyatt (a/k/a “Hugh Pace”), 43; Jose Lopez (a/k/a “Los”, “Hos” and “Lil Hos”), 23; Dwayne Cooper (a/k/a “Bookie” and “Boop”) 26; Hasan Jones (a/k/a “Tiny”) 36; and Lavar Smith (a/k/a “Var”), 30, each of Philadelphia, PA were arrested today on charges of distributing heroin, fentanyl, cocaine, and cocaine base (“crack”) announced United States Attorney Louis D. Lappen. Lesandro Perez was also arrested on charges of being a felon in possession of firearms and possessing an unregistered firearm.
The defendants are named in three separate, related indictments filed November 14, 2017. The first indictment charges Lesandro Perez with the above-described firearms offenses. The second indictment charges Lesandro Perez, Joshua Brown, Dwayne Cooper, Hasan Jones, and Lavar Smith with one count each of distribution of more than 28 grams of cocaine base (“crack”) and aiding and abetting the distribution of more than 28 grams of cocaine base.
The third indictment contains nine counts charging Lesandro Perez with one count of distributing heroin and cocaine base, two counts of distributing heroin and fentanyl, one count of distributing cocaine and cocaine base, two counts of distributing heroin, three counts of distributing fentanyl, and aiding and abetting. This same indictment charges Hugh Wyatt with the same three counts of distributing and aiding and abetting the distribution of fentanyl. Jose Lopez is charged with two of these counts of distributing and aiding and abetting the distribution of fentanyl. Joshua Brown is charged with one count of distributing and aiding and abetting the distribution of fentanyl and with one count distribution of and aiding and abetting the distribution of heroin and cocaine base.
“The indictments unsealed today represent another example of our office’s commitment to prosecuting serious drug crime and fighting the opioid epidemic,” said United States Attorney Louis D. Lappen. “The defendants in these cases allegedly distributed fentanyl, heroin, cocaine, and cocaine base in our community – contributing to the cycle of overdoses, deaths, and devastation that destroy the lives of so many of our citizens. We remain focused on prosecuting illegal drug distribution and violent crime to help make our communities safer for everyone.”
“This investigation is an example of ATF’s dedication to working with our state, local and federal partners in identifying, targeting, and investigating violent criminals who are involved in selling narcotics and firearms who prey upon innocent citizens and lessen the quality of life in our neighborhoods,” said ATF Special Agent in Charge Donald Robinson. “Our neighborhoods deserve to exist without fear and intimidation inflicted by all violent drug gangs. We will continue to work with our partners to impact the violent drug related activity that has wreaked havoc throughout Philadelphia.”
If convicted of the charges in the first indictment, Perez faces a maximum 40 years’ imprisonment, 3 years’ supervised release, a $760,000 fine, and a $400 special assessment.
If convicted of the charges in the second indictment, Perez, Brown, Cooper, Jones, and Smith each face a mandatory minimum 5 years’ imprisonment, a maximum 40 years’ imprisonment, 3 years’ supervised release, a $5 million fine, and a $100 special assessment. Perez’s maximum sentence is in addition to the maximum sentence he faces on the first indictment.
If convicted of the charges in the third indictment, Jose Lopez and Joshua Brown face a maximum 40 years’ imprisonment, 3 years’ supervised release, a $2 million fine, and a $200 special assessment. Brown’s maximum sentence is in addition to the maximum sentence he faces on the second indictment.
If convicted, Hugh Wyatt faces a maximum 60 years’ imprisonment, 3 years’ supervised release, a $3 million fine, and a $300 special assessment.
If convicted of the charges in the third indictment, Lesandro Perez faces a maximum 180 years’ imprisonment, 3 years’ supervised release, a $9 million fine, and a $900 special assessment. These maximum terms are in addition to the maximum terms he faces on the first two indictments.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and is being prosecuted by Assistant United States Attorney Sarah T. Damiani.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Sentencings for November 27 - November 30, 2017Read the Press Release
Daniel Curtis Garner, 41, of Torrington, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 30, 2017, for possession of child pornography. Garner was arrested in Casper, Wyoming. He received time served, to be followed by 15 years of supervised release, and was ordered to pay a $5,000.00 fine and a $5,000.00 Justice for Victims of Trafficking Act assessment. This case was investigated by the Wyoming Division of Internet Crimes Against Children Task Force and the U.S. Department of Homeland Security.
Julio Garay-Gutierrez, 40, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 30, 2017, for being an illegal alien in possession of a firearm. Garay-Gutierrez was arrested in Cody, Wyoming. He received 24 months of imprisonment, to be followed by three years of supervised release, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Arvin Ignatius Felter, 26, of Riverton, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 30, 2017, for assault by strangulation. Felter was arrested in Arapaho, Wyoming. He received 24 months of imprisonment, to be followed by three years of supervised release, and was order to pay a $100.00 special assessment. This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
William Amadeo Salazar-Orellana, 33, of El Salvador, was sentenced by Federal District Court Judge Alan B. Johnson on November 27, 2017, for illegal re-entry of a previously deported alien into the United States. Salazar-Orellana was arrested in Natrona County, Wyoming. He received six months of imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Martin Hernandez, Jr., 32, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 27, 2017, for being a felon in possession of a firearm. Hernandez was arrested in Casper, Wyoming. He received 37 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Mills Police Department, the Natrona County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Taylor Jay Whiting, 26, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 27, 2017, for being a felon in possession of a firearm. He received 37 months imprisonment, to be served consecutive to his undischarged terms of state imprisonment from Natrona County District Court. Whiting will be placed on three years of supervised release upon release from custody and was ordered to a $100.00 special assessment. This case was investigated by the Casper Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Juan Carlos Correra-Ibarra, 28, of Durango, Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 27, 2017, for illegal re-entry of a previously deported alien into the United States. Correra-Ibarra was arrested in Natrona County, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jeremy Taylor Harding, 36, of Riverton, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on November 21, 2017, for being a felon in possession of a firearm. Harding was arrested in Riverton, Wyoming. He received 60 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Seiler Instrument to Pay $1.5 million in Forfeiture to the United StatesRead the Press Release
The United States Attorney’s Office in St. Louis has announced that Seiler Instrument & Manufacturing Company, Inc., a Kirkwood-based defense contractor, will pay the United States $1,500,000.00 in forfeiture based on the company’s use of optical materials imported from China in the weapons sights which the company manufactured under a series of contracts with the Department of Defense. The company admits that the parts were improperly certified as compliant with the Buy American Act. Seiler Instrument has agreed to make the payment pursuant to a pretrial diversion agreement in which it further agrees to enter a plea of guilty to a false statement charge in the event that the company does not meet the full terms of the agreement.
Seiler Instrument is a long-time defense contractor which specializes in the manufacture of fire control systems---sighting devices for weapons---that are used on all United States Military Howitzer and mortar systems. The pretrial diversion agreement was reached after an investigation into the company’s business practices with respect to the full range of import and export regulations governing the procurement of materials used to manufacture defense systems. These provisions include the Buy American Act and the International Traffic in Arms Regulations which place limitations on the export of restricted technical data used in the procurement and manufacturing process to countries such as China. The agreement reflects that Seiler Instrument took measures to fix the problems and has agreed to a compliance program to be monitored by the Department of Defense.
Seiler Instrument has made an initial payment of $500,000.00 as part of the agreement and will make additional payments of $500,000.00 in each of the next two years.
This case was investigated by the Defense Criminal Investigative Service (Department of Defense, Office of Inspector General), the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), the Army CID Major Procurement Fraud Unit and the U.S. Department of Commerce, Bureau of Industry and Security - Office of Export Enforcement, Chicago Field Office. The Defense Contract Management Agency also provided substantial assistance in this investigation.
Sedgwick County Man Pleads Guilty to Producing Child PornRead the Press Release
WICHITA, KAN. – A Sedgwick County man pleaded guilty Thursday to a federal charge of producing child pornography, U.S. Attorney Tom Beall said.
Ian Nathaniel Smith, 21, Viola, Kan., pleaded guilty to one count of producing child pornography. In his plea, he admitted he communicated over the internet with a 14-year-old victim in Indiana. On Skype, Smith urged the victim to live stream sex acts. Smith transported the minor to Ohio for the purpose of performing sexual activity. When Smith was arrested, investigators found pornographic images of the victim on Smith’s smartphone.
Sentencing is set for Feb. 16. He faces a penalty of not less than 15 years and not more than 30 years in federal prison and a fine up to $250,000.
Beall commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
SBM Offshore N.V. and US-Based Subsidiary Resolve Foreign Corrupt Practices Act Case Involving Bribes in Five CountriesRead the Press Release
HOUSTON – SBM Offshore N.V. (SBM), a Netherlands-based company specializing in the manufacture and design of offshore oil drilling equipment, and its wholly owned U.S. subsidiary, SBM Offshore USA Inc. (SBM USA), have agreed to resolve criminal charges and pay a criminal penalty of $238 million in connection with schemes involving the bribery of foreign officials in Brazil, Angola, Equatorial Guinea, Kazakhstan and Iraq in violation of the Foreign Corrupt Practices Act (FCPA). SBM USA pleaded guilty today in connection with the resolution.
Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Houston Field Office made the announcement.
“This corrupt scheme involved some of the highest-level executives within the company, spanned five countries, and lasted for more than a decade,” said Cronan. “The resolution announced today demonstrates the Criminal Division’s continuing commitment to work closely with our foreign partners to hold both companies and individuals accountable for their actions as we continue to level the playing field for ethical and honest businesses to compete in the marketplace.”
“Deterring corporate crime requires enforcing the law on multiple fronts,” said Martinez. “These cases involve both individual and corporate misconduct, which the guilty pleas reflect. We will continue to aggressively investigate and prosecute individuals and corporations who violate the FCPA and those who misuse our financial system to do so.”
“This case exemplifies how HSI works diligently with our foreign law enforcement partners to promote and protect international trade practices, ensuring a fair and equal playing field for U.S. companies and consumers,” said Dawson.
SBM entered into a deferred prosecution agreement in connection with a criminal information filed today in the Southern District of Texas charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. The case is assigned to U.S. District Judge David Hittner. In addition, SBM USA pleaded guilty and was sentenced by Judge Hittner on a one-count criminal information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to its agreement with the Department, SBM agreed to pay a total criminal penalty of $238 million to the United States, including a $500,000 criminal fine and $13.2 million in criminal forfeiture that SBM agreed to pay on behalf of SBM USA.
According to the companies’ admissions and court documents, beginning by at least 1996 and continuing until at least 2012, SBM conspired to violate the FCPA by paying more than $180 million in commissions to intermediaries, knowing that a portion of those commissions would be used to bribe foreign officials in Brazil, Angola, Equatorial Guinea, Kazakhstan and Iraq. SBM made these payments in order to influence those officials, for the purpose of securing improper advantages and obtaining or retaining business with state-owned oil companies in the five named countries. SBM acknowledged that it gained at least $2.8 billion from projects it obtained from these state-owned oil companies.
The Justice Department resolution follows guilty pleas by two former SBM executives. On Nov. 9, Anthony Mace, the former CEO of SBM and a former member of the board of directors of SBM USA, pleaded guilty to one count of conspiracy to violate the FCPA. On Nov. 6, Robert Zubiate, a former SBM USA executive, pleaded guilty to one count of conspiracy to violate the FCPA. Mace and Zubiate are awaiting sentencing.
In 2014, SBM settled with the Dutch Public Prosecutor’s Office (Openbaar Ministerie) over related conduct and paid the Netherlands a total $200 million in disgorged profits and a $40 million fine. SBM has paid a combined worldwide total in criminal penalties in excess of $475 million.
The Department reached this resolution based on a number of factors, including the fact that while SBM brought the conduct to the attention of the Criminal Division’s Fraud Section and Dutch authorities, it did not provide a complete disclosure for approximately one year; that SBM did cooperate with the Department’s investigation, including an accelerated investigation into bribery conduct related to Kazakhstan and Iraq; and that SBM has undertaken significant remedial measures, including terminating and demoting employees who were involved in the criminal conduct, terminating longstanding agency agreements and implementing a new and enhanced system of internal controls to address and mitigate corruption and compliance risks. Therefore, SBM was entitled to a 25 percent reduction off of the bottom of the U.S. Sentencing Guidelines range. In addition, the Department considered SBM’s inability to pay a fine.
In calculating its fine, the Department credited SBM’s payment of penalties to the Openbaar Ministerie and the payment of penalties likely to be paid to the Brazilian Ministério Público Federal (MPF).
The Department of Justice is grateful to Brazil’s MPF, the Netherlands’ Dutch Public Prosecutor’s Office (Openbaar Ministerie) and Switzerland’s Office of the Attorney General and Federal Office of Justice for providing substantial assistance in gathering evidence during this investigation.
ICE-HSI investigated the case. Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas and Trial Attorney Dennis R. Kihm and Assistant Chief Tarek Helou of the Fraud Section are prosecuting the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter. The FBI’s International Corruption Squad and the IRS - Criminal Investigation assisted with portions of the investigation of this case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Russian Cyber-Criminal Sentenced to 14 Years in Prison for Role in Organized Cybercrime Ring Responsible for $50 Million in Online Identity Theft and $9 Million Bank Fraud ConspiracyRead the Press Release
A Russian cyber-criminal was sentenced today 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.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Steven W. Myhre of the District of Nevada, U.S. Attorney Byung J. Pak of the Northern District of Georgia, Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), Special Agent in Charge Brian Spellacy of the U.S. Secret Service in Las Vegas, and FBI Special Agent in Charge David J. LeValley in Atlanta made the announcement.
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 168 months in prison for one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and to 168 months in prisonfor one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia, with the 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.
In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization, an identify theft and credit card fraud ring, 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 $50,893,166.35.
In connection with his guilty plea in the Northern District of Georgia case, Seleznev 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.
Fifty-five individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 33 individuals have been convicted and the rest are either fugitives or are pending trial.
The cases were investigated by HSI, the U.S. Secret Service, and FBI. The Nevada case was prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada. The Northern District of Georgia case was prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.
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, Seleznev was sentenced to 27 years in prison for those crimes, which will run concurrent to his sentences today.
Russian Cyber-Criminal Sentenced to 14 Years in Prison for Role in Organized Cybercrime Ring Responsible for $50 Million in Online Identity Theft and $9 Million Bank Fraud ConspiracyRead the Press Release
LAS VEGAS, Nev. - A Russian cyber-criminal was sentenced today 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.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Steven W. Myhre of the District of Nevada, U.S. Attorney Byung J. Pak of the Northern District of Georgia, Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI), Special Agent in Charge Brian Spellacy of the U.S. Secret Service in Las Vegas, and FBI Special Agent in Charge David J. LeValley in Atlanta made the announcement.
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 168 months in prison for one count of participation in a racketeering enterprise pursuant to an indictment returned in the District of Nevada, and to 168 months in prison for one count of conspiracy to commit bank fraud pursuant to an indictment returned in the Northern District of Georgia, with the 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.
In connection with his guilty plea in the Nevada case, Seleznev admitted that he became associated with the Carder.su organization, an identity theft and credit card fraud ring, 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 $50,893,166.35.
In connection with his guilty plea in the Northern District of Georgia case, Seleznev 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.
Fifty-five individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 33 individuals have been convicted and the rest are either fugitives or are pending trial.
The cases were investigated by HSI, the U.S. Secret Service, and FBI. The Nevada case was prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kimberly M. Frayn of the District of Nevada. The Northern District of Georgia case was prosecuted by Assistant U.S. Attorney Kamal Ghali of the Northern District of Georgia.
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, Seleznev was sentenced to 27 years in prison for those crimes, which will run concurrent to his sentences today.
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Rochester Couple Charged with Fraud and Money LaunderingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Anjaneyulu Katam and Mahalakshmi Cheruvu, of Rochester, NY, were arrested and charged by criminal complaint with visa fraud, money laundering, false statements, and conspiracy to defraud the United States. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that according to the complaint, between 2011 and 2016, Katam and Cheruvu ran businesses in which they falsified immigration documents for Indian nationals to enter the U.S. and work in tech industries involving computer programming. The husband and wife manipulated the H-1B visa program, which allows U.S. employers temporarily to employ foreign workers in specialty occupations. The complaint states that Katam and Cheruvu falsified visa applications, work experience documents and work contracts, which they then submitted to the U.S. Department of Labor, Department of Homeland Security, and Department of State, in order to secure H-1B visas for Indian nationals. Their efforts resulted in the unlawful entry and employment of several Indian nationals within the United States.
The defendants made an initial appearance before U.S. Magistrate Judge Jonathan Feldman and were released on conditions.
The criminal complaint is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Michael C. Mikulka, Special Agent-in-Charge of the New York
Region, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Department of State’s Diplomatic Security Service, under the direction of the Special Agent-in-Charge of the New York Field Office, Charles Brandeis.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.
Recording Artist and Performer DMX Pleads Guilty in Manhattan Federal Court to Tax Fraud ViolationRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and James D. Robnett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that EARL SIMMONS, an internationally known recording artist, performer, and actor known professionally as “DMX” and “X,” pled guilty today in Manhattan federal court to one count of tax fraud for evading the payment of income taxes in the period from 2010 through 2016. In total, during that time period, SIMMONS engaged in a scheme to conceal millions of dollars of income from the IRS and to avoid paying $1.7 million of tax liabilities. SIMMONS pled guilty before U.S. District Judge Jed S. Rakoff.
Acting U.S. Attorney Joon H. Kim said: “Today, Earl Simmons, the actor, producer and recording artist known as DMX, admitted to systematically cheating on his taxes. By insisting to be paid in cash whenever possible and having royalty payments diverted to the accounts of financial surrogates, Simmons concealed hundreds of thousands of dollars of income from the IRS. Today, Simmons made a choice between ‘Right or Wrong,’ and did the right thing, admitting his guilt, and agreeing to pay his tax liabilities. No matter who you are or whatever fame you may have achieved, the law applies equally to all, and no one is exempt from the shared obligation to pay our taxes.”
IRS-CI Special Agent in Charge James D. Robnett said: “Mr. Simmons skirted his responsibilities when he chose to ignore his duty to pay his taxes. We should not forget that the ultimate victims in tax fraud cases are the honest US taxpayers who file and pay their taxes. This guilty plea shows that IRS-Criminal Investigation is working to ensure all taxpayers file and pay their fair share.”
According to the Indictment and statements made at today’s plea proceeding:
SIMMONS, known professionally as “DMX” or “X,” worked as a recording artist, performer, and actor. Beginning in 1997, SIMMONS released a series of hip-hop albums that sold millions of records. Many of his albums went platinum and occupied the top positions on musical charts. During his career, SIMMONS has performed at venues across the United States and around the world, and has acted in motion pictures.
As a result of the income SIMMONS earned from sources including musical recordings and performances, from 2002 through 2005 he incurred federal income tax liabilities of approximately $1.7 million. Those liabilities went unpaid, and in 2005, the IRS began efforts to collect SIMMONS’s unpaid tax liabilities.
During the period from 2010 through 2015, SIMMONS earned over $2.3 million, but SIMMONS did not file personal income tax returns during that time period. Instead, he orchestrated a scheme to evade payment of his outstanding tax liabilities, largely by maintaining a cash lifestyle, avoiding the use of a personal bank account, and using the bank accounts of nominees, including his business managers, to pay personal expenses. For example, SIMMONS received hundreds of thousands of dollars of royalty income from his music recordings. SIMMONS caused that income to be deposited into the bank accounts of his managers, who then disbursed it to him in cash or used it to pay his personal expenses. SIMMONS also participated in the “Celebrity Couples Therapy” television show in 2011 and 2012 and was paid $125,000 for his participation. When taxes were withheld from the check for the first installment of that fee by the producer, SIMMONS refused to tape the remainder of the television show until the check was reissued without withholding taxes.
SIMMONS took other steps to conceal his income from the IRS and others, including by filing a false affidavit in U.S. Bankruptcy Court that listed his income as “unknown” for 2011 and 2012, and as $10,000 for 2013. In fact, SIMMONS received hundreds of thousands of dollars of income in each of those years.
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SIMMONS, 46, of Yonkers, New York, faces a maximum sentence of five years in prison. As part of his plea agreement, SIMMONS is also required to pay restitution to the IRS. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. SIMMONS is scheduled to be sentenced by Judge Rakoff on March 29, 2018, at 4:00 P.M.
Mr. Kim praised the work of the Internal Revenue Service, Criminal Investigation.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Richard Cooper is in charge of the prosecution.