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Friday 13 October 2017
Texas Money Launderer Sentenced to 40 Years in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday today sentenced Priscilla Ann Ellis (52, Killeen, Texas) to 40 years in federal prison for conspiracy to commit international money laundering and conspiracy to commit mail and wire fraud. As part of her sentence, the Court entered a money judgment in the amount of $9,288,241.36, and ordered the forfeiture of various assets, including Ellis’s bank accounts, properties, and a luxury vehicle. The Court also ordered Ellis to pay restitution to the victims of the offenses in the amount of $3,767,196.
A federal jury found Ellis guilty on October 21, 2016.
According to evidence presented at trial, Ellis, her attorney, Perry Don Cortese, and her daughter, Kenietta Rayshawn Johnson, were members of an international criminal organization that defrauded dozens of victims across the United States and then laundered the funds, much of which were sent overseas. The fraud schemes took several forms. Many victims were law firms solicited online to perform legal work, provided counterfeit cashier’s checks for deposit into the firms’ trust accounts, and then directed to wire money to third-party shell businesses controlled by the conspirators. Others were title companies defrauded in phony real estate transactions. Other victims were targeted and defrauded by fake suitors on dating websites. The conspiracy also employed hackers who compromised both individual and corporate e-mail accounts, ordering wire transfers from brokerage and business accounts to shell accounts controlled by conspirators.
Victims were instructed to wire money into funnel accounts held by conspirators, known as “money mules.” The funds were then quickly moved to other accounts in the United States and around the world before the victims could discover the fraud. Bank records presented at trial indicate that, from 2012 to 2015, several millions dollars’ worth of wires were received in such accounts to be laundered. Conspirators in Canada, Nigeria, South Korea, Senegal, and elsewhere helped coordinate the fraud and money laundering activity from abroad.
Ellis laundered several million dollars’ worth of fraud proceeds through her bank accounts and other accounts under her control. She also arranged for the creation of high-quality forgeries of checks and other documents. Cortese, a licensed attorney in Texas, worked for the conspirators by laundering victim money through his interest on lawyers trust accounts (“IOLTAs”). He also met with individuals in person to retrieve cash withdrawn from receiver accounts. Cortese recruited his paralegal and others to open such accounts to launder funds. The evidence further showed that Johnson, then a bank employee at Capital One, helped create counterfeit checks and monitor money flows between accounts controlled by conspirators.
On November 29, 2017, Ellis is scheduled to be sentenced in a related matter, in which a jury found her guilty of conspiracy to commit counterfeiting, using interstate commerce facilities in the commission of murder-for-hire, and retaliating against a witness.
This case was investigated by the Federal Bureau of Investigation, with assistance from various federal and local law enforcement partners throughout the country, including the United States Postal Inspection Service, and the Toronto Police Service in Ontario, Canada. The case was prosecuted by Assistant United States Attorneys Patrick Scruggs and Eric Gerard.
Tennessee Dentist Pleads Guilty to Tax EvasionRead the Press Release
Memphis, TN – A Shelby County, Tennessee dentist pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee.
According to documents and information provided to the court, Andrea M. Henry, 44, owned The Henry Polk Dental Group D.P.C. and The Smile Spa, LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008 and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.
Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation of the funds in the nominee’s bank account, and caused the nominee to purchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.
Sentencing is scheduled for January 12, 2018, before U.S. District Court Judge John T. Fowlkes Jr. Henry faces a statutory maximum sentence of five years in federal prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and United States Attorney D. Michael Dunavant, commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin, who are prosecuting the case.
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Tennessee Dentist Pleads Guilty to Tax EvasionRead the Press Release
A Shelby County, Tennessee, dentist pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Michael Dunavant for the Western District of Tennessee.
According to documents and information provided to the court, Andrea M. Henry, 44, owned The Henry Polk Dental Group D.P.C. and The Smile Spa LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008 and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.
Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation as to the source of the funds in the nominee’s bank account, and caused the nominee to repurchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.
Sentencing is scheduled for Jan. 12, 2018 before U.S. District Court Judge John T. Fowlkes Jr. Henry faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Statement by Annette L. Hayes, U.S. Attorney for Western WashingtonRead the Press Release
Today, the U.S. Department of Justice filed its response in support of the City of Seattle’s “Motion to Declare It in Full and Effective Compliance with the Consent Decree.” The United States concludes that the City has met its obligations under the first phase of the Consent Decree based on (1) the ten assessments conducted by the Monitor – assessments that covered all of the requirements of the Consent Decree – and (2) the Department of Justice’s own independent review of the City’s compliance. The Court’s continued oversight in phase two of this effort will ensure that the City continues to comply as required under the Decree.
The following is a statement from Annette L. Hayes, U.S. Attorney for the Western District of Washington:
“After much work over more than five years, the City of Seattle has reached a significant milestone in complying with the requirements of the Consent Decree. New policies, training, and systems of oversight and accountability have resulted in the Seattle Police Department (SPD) meeting its obligations under Phase I of the Consent Decree and thereby eliminating the pattern or practice of unconstitutional policing that led to our investigation and findings in 2011.
We have not come to this conclusion lightly. Career civil rights attorneys and police-practices experts have spent more than five years investigating SPD, overseeing the creation of new policies and training, and independently reviewing the relevant data and the results of assessments conducted by the Court-appointed Monitor that examined the implementation of the Consent Decree’s requirements.
We know that real reforms can’t just happen on paper. They must be carried out in practice. That is why Department of Justice civil rights attorneys and police reform experts, along with the Monitor, took a hard look at the way officers are using force on the street -- whether there is a real commitment to de-escalation, whether new approaches to crisis situations are resulting in better outcomes, and whether internal supervision and independent civilian-led accountability systems are sufficient to address any shortcomings
This conclusion does not mean the police department is perfect, nor does it end the hard work required under the Decree. There is more to do and issues that need to be addressed. Rather, this milestone represents the end of one chapter and the beginning of another. Under the terms of the Consent Decree, SPD is required to sustain compliance for at least two years before the Court, Monitor or the Department of Justice could agree that termination of the Decree is appropriate.
I appreciate the hard work and commitment of SPD’s officers and leadership, the elected officials who have made police reform a priority, and, of course, the strong support of – and demands from – the community and the ongoing engagement from the Community Police Commission. Continued engagement by all concerned in the next phase of the reform efforts and beyond will be critical to ensuring further progress under the Consent Decree.”
Statement of Acting U.S. Attorney Joon H. Kim on the Convictions of Scott Tucker and Timothy Muir for Unlawful Payday Lending EnterpriseRead the Press Release
Acting Manhattan U.S. Attorney Joon H. Kim stated: “As a unanimous jury found today, Scott Tucker and Timothy Muir targeted and exploited millions of struggling, everyday Americans by charging them illegally high interest rates on payday loans, as much as 700 percent. Tucker and Muir sought to get away with their crimes by claiming that this $3.5 billion business was actually owned and operated by Native American tribes. But that was a lie. The jury saw through Tucker and Muir’s lies and saw their business for what it was – an illegal and predatory scheme to take callous advantage of vulnerable workers living from paycheck to paycheck.”
South Bend/Mishawaka Men IndictedRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced the return of a seven-count indictment that alleges a heroin distribution conspiracy. Named in today’s indictment are:
- Corey Harris, age 22, of South Bend, Indiana
- Conspiracy to Distribute Heroin (Count 1)
- Distribution of Heroin (Count 3)
- Isaiah Whitmore, age 25, of South Bend, Indiana
- Conspiracy to Distribute Heroin (Count 1)
- Distribution of Heroin (Count 2)
- Reginald Blackburn, age 25, of Mishawaka, Indiana
- Conspiracy to Distribute Heroin (Count 1)
- Distribution of Heroin (Count 4)
- Ryan Williams, age 27, of South Bend, Indiana
- Conspiracy to Distribute Heroin (Count 1)
- Distribution of Heroin (County 5)
- Terron Taylor, age 22, of Mishawaka, Indiana
- Conspiracy to Distribute Heroin (Count 1)
- Distribution of Heroin (Count 6)
- Anthony Owens, age 30, of South Bend, Indiana
- Conspiracy to Distribute Heroin (Count 1)
- Distribution of Heroin (Count 7)
According to documents in this case, from March 2017 up to and including October 2017, the above individuals knowingly and intentionally conspired to distribute a Schedule I controlled substance, heroin, in excess of 1 kilogram.
Four of the individuals named in the indictment have been arrested. Law enforcement is currently seeking the whereabouts of Corey Harris and Terron Taylor. If you have any information as to the whereabouts of the above individuals please contact Michiana Crime Stoppers at 574-288-STOP.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Indiana State Police; the Mishawaka Police Department; St. Joseph County Drug Investigations Unit; the St. Joseph County Police Department; the St. Joseph County Prosecuting Attorney; and the United States Marshals Service. The above agencies were also supported by Project Disarm, a Bureau of Alcohol, Tobacco, Firearms and Explosives Task Force; the Drug Enforcement Administration Task Force; Elkhart Police ICE Unit; and the United States Marshals Service Fugitive Task Force. The case is being handled by Assistant U.S. Attorneys Joel Gabrielse and Molly Donnelly.
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- Corey Harris, age 22, of South Bend, Indiana
Six people indicted for illegally reentering the U.S.Read the Press Release
Six people were indicted for illegal reentry into the United States after being found in Ohio, said U.S. Attorney Justin E. Herdman.
Ignacio Mendoza-Arriaga, 31, a Mexican citizen, was found in Youngstown after being deported to Mexico in 2008 following a felony conviction.
Reinaldo Herrerra-Herrerra, 36, a Mexican citizen, was found in Youngstown after being deported to Mexico in 2011.
Christian Euceda-Lopez, a citizen of Honduras, was found in Ohio after being deported from the U.S., in 2012.
Jorge Manuel Ramos-Cruz, 49, a Mexican citizen, was found in Ohio after being deported four times in 2009 and 2010.
Wilson Antonio Miranda-Rivera, 36, a citizen of Honduras, was found in Ohio after being deported four times between 2002 and 2014.
Abelardo Beltran-Arriola, 31, a citizen of Mexico, was found in Ohio after twice being deported, in 2008 and 2011.
The Arriaga and Herrerra cases are being prosecuted by Assistant U.S. Attorney Karrie D. Howard following an investigation by the Youngstown Police Department and the U.S. Immigration and Custom Enforcement.
The Lopez case is being prosecuted by Assistant U.S. Attorney Michael J. Freeman following an investigation by U.S. Customs and Border Protection.
The Cruz case is being prosecuted by Assistant U.S. Attorney Bradley Beeson following an investigation by the U.S. Immigration and Custom Enforcement.
The Rivera case is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman following an investigation by U.S. Customs and Border Protection,
The Arriola case is being prosecuted by Assistant U.S. Attorney Thomas P. Weldon following an investigation by the U.S. Immigration and Custom Enforcement.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the 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.
An indictment is only a charge and 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.
Shelby Man Sentenced to 63 Months in Prison for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa - On October 11, 2017, United States District Court Judge Stephanie M. Rose sentenced Matthew P. Goodside, 32, of Shelby, Iowa, to 63 months in prison for possession of child pornography, announced United States Attorney Marc Krickbaum. Goodside was also ordered to serve ten years of supervised release following his imprisonment and comply with Sex Offender Registration and Notification Act requirements.
Federal and state authorities began investigating Goodside in July of 2014 regarding the suspected distribution of synthetic marijuana from his residence in Avoca, Iowa. During a search warrant that was conducted at the Avoca residence in January of 2015, several laptops and pieces of computer equipment were recovered. A later forensic examination of the computers revealed the presence of several images and videos reflecting child pornography that had been downloaded using a peer-to-peer file sharing program.
This matter was investigated by the Drug Enforcement Administration, the United States Postal Inspection Service, the Pottawattamie County Sheriff’s Office, the Douglas County Sheriff’s Office, the Avoca Police Department, and the Southwest Iowa Narcotics Taskforce. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Scott Tucker and Timothy Muir Convicted at Trial for $3.5 Billion Unlawful Internet Payday Lending EnterpriseRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that SCOTT TUCKER and TIMOTHY MUIR were convicted after a five-week jury trial on all fourteen counts against them, for operating a nationwide internet payday lending enterprise that systematically evaded state laws in order to charge illegal interest rates as high as 1000% on loans.
Acting Manhattan U.S. Attorney Joon H. Kim stated: “As a unanimous jury found today, Scott Tucker and Timothy Muir targeted and exploited millions of struggling, everyday Americans by charging them illegally high interest rates on payday loans, as much as 700 percent. Tucker and Muir sought to get away with their crimes by claiming that this $3.5 billion business was actually owned and operated by Native American tribes. But that was a lie. The jury saw through Tucker and Muir’s lies and saw their business for what it was – an illegal and predatory scheme to take callous advantage of vulnerable workers living from paycheck to paycheck.”
According to the allegations contained in the Superseding Indictment, and evidence presented at trial:
The Racketeering Influenced Corrupt Organizations (“RICO”) Crimes
From at least 1997 until 2013, TUCKER engaged in the business of making small, short-term, high-interest, unsecured loans, commonly referred to as “payday loans,” through the Internet. TUCKER’s lending enterprise, which had up to 1,500 employees based in Overland Park, Kansas, did business as Ameriloan, f/k/a Cash Advance; OneClickCash, f/k/a Preferred Cash Loans; United Cash Loans; US FastCash; 500 FastCash; Advantage Cash Services; and Star Cash Processing (the “Tucker Payday Lenders”). TUCKER, working with MUIR, the general counsel for TUCKER’s payday lending businesses since 2006, routinely charged interest rates of 600% or 700%, and sometimes higher than 1,000%. These loans were issued to more than 4.5 million working people in all fifty states, including more than 250,000 people in New York, many of whom were struggling to pay basic living expenses. Many of these loans were issued in states, including New York, with laws that expressly forbid lending at the exorbitant interest rates TUCKER charged. Evidence at trial established that TUCKER and MUIR were fully aware of the illegal nature of the loans charged and in fact prepared scripts to be used by call center employees to deal with complaints by customers that their loans were illegal.
Fraudulent Loan Disclosures
The Truth-in-Lending Act (“TILA”) is a federal statute intended to ensure that credit terms are disclosed to consumers in a clear and meaningful way, both to protect customers against inaccurate and unfair credit practices, and to enable them to compare credit terms readily and knowledgeably. Among other things, TILA and its implementing regulations require lenders, including payday lenders like the Tucker Payday Lenders, to accurately, clearly, and conspicuously disclose, before any credit is extended, the finance charge, the annual percentage rate, and the total of payments that reflect the legal obligation between the parties to the loan.
The Tucker Payday Lenders purported to inform prospective borrowers, in clear and simple terms, as required by TILA, of the cost of the loan (the “TILA Box”). For example, for a loan of $500, the TILA Box provided that the “finance charge – meaning the “dollar amount the credit will cost you” – would be $150, and that the “total of payments” would be $650. Thus, in substance, the TILA Box stated that a $500 loan to the customer would cost $650 to repay. While the amounts set forth in the Tucker Payday Lenders’ TILA Box varied according to the terms of particular customers’ loans, they reflected, in substance, that the borrower would pay $30 in interest for every $100 borrowed.
In fact, through at least 2012, TUCKER and MUIR structured the repayment schedule of the loans such that, on the borrower’s payday, the Tucker Payday Lenders automatically withdrew the entire interest payment due on the loan, but left the principal balance untouched so that, on the borrower’s next payday, the Tucker Payday Lenders could again automatically withdraw an amount equaling the entire interest payment due (and already paid) on the loan. With TUCKER and MUIR’s approval, the Tucker Payday Lenders proceeded automatically to withdraw such “finance charges” payday after payday (typically every two weeks), applying none of the money toward repayment of principal, until at least the fifth payday, when they began to withdraw an additional $50 per payday to apply to the principal balance of the loan. Even then, the Tucker Payday Lenders continued to assess and automatically withdraw the entire interest payment calculated on the remaining principal balance until the entire principal amount was repaid. Accordingly, as TUCKER and MUIR well knew, the Tucker Payday Lenders’ TILA box materially understated the amount the loan would cost, including the total of payments that would be taken from the borrower’s bank account. Specifically, for a customer who borrowed $500, contrary to the TILA Box disclosure stating that the total payment by the borrower would be $650, in fact, and as TUCKER and MUIR well knew, the finance charge was $1,425, for a total payment of $1,925 by the borrower.
The Sham Tribal Ownership of the Business
In response to complaints that the Tucker Payday Lenders were extending abusive loans in violation of their usury laws, several states began to investigate the Tucker Payday Lenders. To thwart these state actions, TUCKER devised a scheme to claim that his lending businesses were protected by sovereign immunity, a legal doctrine that, among other things, generally prevents states from enforcing their laws against Native American tribes. Beginning in 2003, TUCKER entered into agreements with several Native American tribes (the “Tribes”), including the Santee Sioux Tribe of Nebraska, the Miami Tribe of Oklahoma, and the Modoc Tribe of Oklahoma. The purpose of these agreements was to cause the Tribes to claim they owned and operated parts of TUCKER’s payday lending enterprise, so that when states sought to enforce laws prohibiting TUCKER’s loans, TUCKER’s lending businesses would claim to be protected by sovereign immunity. In return, the Tribes received payments from TUCKER, typically one percent of the revenues from the portion of TUCKER’s payday lending business that the Tribes purported to own.
In order to create the illusion that the Tribes owned and controlled TUCKER’s payday lending business, TUCKER and MUIR engaged in a series of lies and deceptions. Among other things:
- MUIR and other counsel for TUCKER prepared false factual declarations from tribal representatives that were submitted to state courts, falsely claiming, among other things, that tribal corporations substantively owned, controlled, and managed the portions of TUCKER’s business targeted by state enforcement actions.
- TUCKER opened bank accounts to operate and receive the profits of the payday lending enterprise, which were nominally held by tribally owned corporations, but which were, in fact, owned and controlled by TUCKER. TUCKER received over $380 million from these accounts on lavish personal expenses, some of which was spent on a fleet of Ferraris and Porsches, the expenses of a professional auto racing team, a private jet, a luxury home in Aspen, Colorado, and his personal taxes.
- Employees of TUCKER making payday loans over the phone told borrowers, using scripts directed and approved by TUCKER and MUIR, that they were operating in Oklahoma and Nebraska, where the Tribes were located, when in fact they were operating at TUCKER’s corporate headquarters in Kansas in order to deceive borrowers into believing that they were dealing with Native American tribes.
These deceptions succeeded for a time, and several state courts dismissed enforcement actions against TUCKER’s payday lending businesses based on claims that they were protected by sovereign immunity. In reality, the Tribes neither owned nor operated any part of TUCKER’s payday lending business. The Tribes made no payment to TUCKER to acquire the portions of the business they purported to own. TUCKER continued to operate his lending business from a corporate headquarters in Kansas, and TUCKER continued to reap the profits of the payday lending businesses, which generated over $3.5 billion in revenue from just 2008 to June 2013 – in substantial part by charging struggling borrowers high interest rates expressly forbidden by state laws.
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TUCKER, 55, and MUIR, 46, were convicted in all 14 counts in the Indictment, including one count of conspiring to commit racketeering through the collection of unlawful debt, three counts of participating in a racketeering enterprise through the collection of unlawful debt, one count of conspiring to commit wire fraud, one count of wire fraud, one count of conspiring to commit money laundering, two counts of money laundering, and five counts of violating TILA.
Mr. Kim praised the outstanding investigative work of the St. Louis Field Office of the IRS-CI. Mr. Kim also thanked the Criminal Investigators at the United States Attorney’s Office, the Federal Bureau of Investigation, and the Federal Trade Commission for their assistance with the case.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to:
http://www.usdoj.gov/usao/nys/victimwitness.html.
The prosecution is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Niketh Velamoor, Hagan Scotten, and Sagar Ravi are in charge of the prosecution.
Schenectady Man Sentenced for Firearm and Drug OffensesRead the Press Release
ALBANY, NEW YORK – Dujuan Pleasant, 35, of Schenectady, New York, was sentenced today to serve 120 months in prison for distributing crack cocaine and possessing a firearm in furtherance of a drug trafficking crime. U.S. District Judge Mae A. D’Agostino also ordered that Pleasant serve a four-year term of supervised release following his release from federal prison.
The announcement was made by Acting United States Attorney Grant C. Jaquith and James J. Hunt, Special Agent in Charge of the New York Field Division of the U.S. Drug Enforcement Administration (DEA).
Pleasant, who pled guilty in June 2017, admitted that he distributed over 100 grams of crack cocaine in 2016. He also admitted that he possessed an Arminius .22 caliber revolver, a Kel-Tec .32 caliber semi-automatic handgun, 33 rounds of ammunition, several digital scales, as well as cocaine and ecstasy at his residence. Pleasant admitted that he kept both firearms in his residence to protect his drugs and drug proceeds from third parties.
This case was investigated by the DEA and the Saratoga County Sheriff’s Department and was prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Salvadoran citizen charged with usurping identity of Puerto Rican manRead the Press Release
A federal grand jury returned a three-count indictment charging Jose E. Carrillo-Abrego, 33, a citizen of El Salvador, with usurping the identity of a Puerto Rican man to conceal his illegal presence in the United States, U.S. Attorney Justin E. Herdman said.
Assistant United States Attorneys Robert W. Kern and Elliot Morrison are prosecuting the case following an investigation by the United States Border Patrol.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the 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.
An indictment is only a charge and 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.
Salinas Residents and Others Charged in Drug Distribution Conspiracy and Related CrimesRead the Press Release
SAN JOSE- A federal grand jury indicted five individuals for their respective roles in an alleged conspiracy to engage in a methamphetamine trafficking network, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, and U.S. Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. A sixth defendant was named in the indictment and charged along with one of the conspirators with using a telephone to facilitate the sale of methamphetamine. The indictment was unsealed today.
The indictment alleges that between March 2017 and September 2017, the conspiracy involved an agreement to distribute and to possess with intent to distribute methamphetamine. In addition, some of the defendants were charged with related crimes, including possessing with intent to distribute methamphetamine, distributing methamphetamine, and use of a communication facility to commit a felony drug offense. The precise charges against each defendant, as well as their ages and places of residence, are set out in the chart below.
Defendant
Age/
Residence
Charges
Statute
OSCAR GONZALEZ QUEVEDO, a/k/a “Oscar Quevedo Gonzalez,” a/k/a “El Oso,”
34/Mexicali, Mexico
Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C. §§ 846
Distribution of 500 Grams or More of Methamphetamine (3 counts)
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
FRANCISCO PUGA CAMACHO, a/k/a “Francisco Puga Garcia,”
a/k/a/ “Frank Puga,”
48/Salinas, CA
Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C. §§ 846
Possession With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(iii)
Distribution of 500 Grams or More of Methamphetamine (3 counts)
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
Use of Communication Facility (Telephone) to Commit Felony Drug Offense
21 U.S.C. § 843(b)
HORACIO QUINTANA
22/Salinas, CA
Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C. §§ 846
Possession With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
Distribution of 500 Grams or More of Methamphetamine (2 counts)
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
JOEL QUINTANA MEDINA
25/Salinas, CA
Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C. §§ 846
Distribution of 500 Grams or More of Methamphetamine (2 counts)
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
JESUS BERNAL NUNEZ, a/k/a “Animal,” a/k/a “Jesse James,”
33/Salinas, CA
Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C. §§ 846
Distribution of 500 Grams or More of Methamphetamine
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
NESTOR TAVAREZ
50/Gonzalez, CA
Use of Communication Facility (Telephone) to Commit Felony Drug Offense
21 U.S.C. § 843(b)
The indictment was filed September 28, 2017, and describes four transactions in which two or more of the defendants are alleged to have possessed or distributed methamphetamine.
Each of the following defendants was arrested and appeared in court on October 12, 2017: Francisco Puga Camacho, Joel Quintana Medina, and Jesus Bernal Nunez Nestor Tavarez. The coordinated arrests and searches took place in Salinas, Greenfield, Castroville, and Gonzalaz. The defendants made their initial appearances before Magistrate Judge Nathanael M. Cousins on October 12, 2017. Quevedo, pictured below, remains a fugitive.
The case has been assigned to the Honorable Lucy H. Koh, United States District Judge, for Northern District of California.
In addition to the indictment, two criminal complaints were filed as a result of this investigation, and two additional defendants were arrested.
Alejandro Dominguez Hernandez was charged by complaint with distribution of a controlled substance in violation of 21 USC§ 841 (a)(1), (b)(1)(B). According to the affidavit supporting the complaint, Hernandez distributed approximately one pound of methamphetamine to a confidential source on October 5, 2017, in Salinas, California.
Ernesto Calderon Ramirez was charged by complaint with distribution of a controlled substance in violation of 21 USC§ 841 (a)(1), (b)(1)(B). According to the affidavit supporting the complaint, Ramirez attempted to dispose of quantities of methamphetamine and cocaine when agents executed a search warrant at a residence in Greenfield, California.
Indictments and Complaints merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum statutory penalties for the crimes of which the defendants have been accused are as follows:
CHARGE
STATUTE
MAXIMUM PENALTY
(per count)
Conspiracy to Possess With Intent to Distribute 500 Grams or More of Methamphetamine
21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)
Minimum 10 years imprisonment
Maximum lifetime imprisonment
Minimum 5 years supervised release following incarceration
Maximum lifetime supervised release
Maximum $10,000,000 fine
Possession With Intent to Distribute 500 Grams or More of A Mixture and Substance Containing Methamphetamine
21 U.S.C. §§ 841(a)(1) and (b)(1)(A)(viii)
Minimum 10 years imprisonment
Maximum lifetime imprisonment
Minimum 5 years supervised release following incarceration
Maximum lifetime supervised release
Maximum $10,000,000 fine
Distribution of 500 Grams or More of Methamphetamine
21 U.S.C.
§§ 841(a)(1) and (b)(1)(A)(viii)
Minimum 5 years imprisonment
Maximum 40 years
Minimum 4 years supervised release following incarceration
Maximum lifetime supervised release
Maximum $5,000,000 fine
Use of Communication Facility (Telephone) to Commit Felony Drug Offense
21 U.S.C. § 843(b)
Maximum 4 years imprisonment
Further, additional fines, forfeitures, and restitution may be ordered; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Jeffery Backhus is prosecuting the cases with assistance from Ryka Bargi. The prosecution is the result of an investigation by the FBI with assistance from the DEA (including the DEA San Jose Task Force Group and the DEA San Francisco Field Division SRT), the U.S. Marshal Service, the California Department of Corrections, the Unified Narcotic Enforcement Team, the Peninsula Regional Violence and Narcotic Team, the Santa Cruz County Anti-Crime Team, and the California Highway Patrol.
These cases are the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Reserve Men Plead Guilty to Gun and Drug Charges, and Retaliation Against a WitnessRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that GARRICK JONES, age 38, and RESHAD FRANK, age 39, both of Reserve, pled guilty yesterday to charges relating to narcotics trafficking, illegal possession of a firearm, and retaliation against a witness.
According to court documents, JONES conspired with others to distribute at least 28 grams of cocaine base (“crack”), and FRANK conspired to distribute a quantity of cocaine hydrochloride. For the drug charges, JONES faces a term of imprisonment of at least five and up to forty years, a fine of $5,000,000, and at least four years of supervised release following any term of imprisonment. FRANK faces a term of imprisonment of up to twenty years, a fine of $1,000,000, and at least three years of supervised release following any term of imprisonment.
JONES also pled guilty to retaliating against a witness for information provided to law enforcement relating to the commission of a federal offense. For that charge, JONES faces a term of imprisonment of up to twenty years, a fine of $250,000, and up to three years of supervised release following any term of imprisonment.
JONES, who was previously convicted of a felony, also pled guilty to illegal possession of a firearm by a felon. JONES possessed a Smith and Wesson .38 caliber pistol. For that charge, JONES faces a term of imprisonment of up to ten years, a fine of $250,000, and three years of supervised release following any term of imprisonment.
Judge Jane Triche Milazzo set sentencing for January 18 2018.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
Postal Service letter carrier and Euclid man indicted for receiving two kilograms of methamphetamineRead the Press Release
A U.S. Postal Service letter carrier and a Euclid man were indicted for a conspiracy in which they received more than two kilograms of methamphetamine from California, U.S. Attorney Justin Herdman said.
Marquacia Deshawn Morris, 26, of Woodmere, and Devon Williams, 23, of Euclid, were indicted on one count of conspiracy to possess with intent to distribute more than two kilograms of methamphetamine. Kevin Williams, also 23 and of Euclid, was indicted on one count of possession with intent to distribute heroin.
A package containing 2214 grams of methamphetamine was mailed from California to Beachwood on Sept. 7. Four days later, Morris, a U.S. Postal Service letter carrier, accepted the package and began her daily assigned mail route, according to the indictment.
She diverted from her daily mail route on Sept. 11 and travelled to 27020 Cedar Road in Beachwood, where she met Devon Williams. He accepted the package and transported it to 440 Richmond Park East in Richmond Heights, according to the indictment.
If convicted, the defendants’ sentences will be determined by the court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the 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.
This case was investigated by the U.S. Postal Service’s Office of Inspector General and the U.S. Postal Inspection Service, with assistance from the Willoughby Hills Police Department. It is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pocola Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that DUANE RAY BRYANT, age 31, of Pocola, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) & 841(b)(1)(C), punishable by not more than 20 years imprisonment, and up to a $1,000,000.00 fine or both.
The Indictment alleged that on or about January 29, 2017, within the Eastern District of Oklahoma, the defendant, DUANE RAY BRYANT, did knowingly and intentionally possess with the intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the Sallisaw Police Department and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney John David Luton represented the United States.
Pleasants County woman admits to charges involving the theft of social security benefitsRead the Press Release
CLARKSBURG, WEST VIRGINIA - A St. Marys, West Virginia woman has admitted to a theft charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Anne Louise Hall, age 57, pled guilty to one count of “Theft of Government Money.” Hall admitted to collecting social security benefits under false pretenses. The crime occurred from October 2006 to March 2017.
Hall faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Social Security Administration Office of Inspector General investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pensacola Man Sentenced to 10 Years in Federal Prison for Illegal Firearm Possession and Selling MethamphetamineRead the Press Release
PENSACOLA, FLORIDA – Anthony J. Fountain, 23, of Pensacola, was sentenced today to 10 years in federal prison after pleading guilty on July 20 to possession of a firearm by a convicted felon and two counts of distributing methamphetamine. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In May 2017, an undercover agent purchased approximately 57.3 grams of methamphetamine from Fountain for $1,800. Several days later, the agent purchased a firearm from Fountain, a previously convicted felon, for $150. The next day, the agent purchased approximately 70.3 grams of methamphetamine from Fountain for $2,350. Upon completion of the last methamphetamine transaction, law enforcement officers approached Fountain, who fled and began to throw potential evidence into Pensacola Bay. The discarded evidence was retrieved, and Fountain was arrrested.
This case resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Federal Bureau of Investigation; Customs and Border Protection; the Florida Department of Law Enforcement; the Escambia County Sheriff’s Office; the Pensacola Police Department; and the State Attorney’s Office for the First Judicial Circuit. Assistant United States Attorney David L. Goldberg prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
North Carolina Man Pleads Guilty to Fraud ChargesRead the Press Release
Harrisonburg, VIRGINIA – A North Carolina man, who previously lived in Frederick County, Virginia, pleaded guilty today to federal wire fraud conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Michael Dean Kent, a.k.a. “Michael Dean,” a.k.a. “Michael Scott,” age 57, most recently of Franklin County, North Carolina, and formerly of Frederick County, Virginia, waived his right to be indicted and pleaded guilty today to a one count Information charging him with conspiracy to commit wire fraud.
According to evidence presented at today’s hearing by Assistant United States Attorney Erin M. Kulpa, between 2014 and 2017, Kent and his co-conspirators targeted more than 500 victims across the United States who owned interests in timeshare properties and made false representations, by phone and by email, to convince the victims to sign property transfer contracts and to send currency under false pretenses to them, via mail.
During this time, Kent and his co-conspirators represented themselves to be employed at two different companies, The Holiday Property Group and Vacation Properties by Owner. Kent incorporated both entities, served as the principal of both, operated both and took significant steps to make both appear legitimate. Kent, and his coconspirators, established websites, paid for commercial post office boxes in various states, paid for memberships in business rating organizations such as the Better Business Bureau, applied for and received a federal tax identification number, and had corporate credit and debit cards in the names of the businesses.
After identifying timeshare owners (victims), Kent and his co-conspirators would introduce the victims to another coconspirator who posed as the “buyer” by assuming a false identity that included a different name and email address. The co-conspirator posing as the buyer communicated with the victim by phone and email would agree to purchase the victim’s property, often at the asking price, and would tell the victim they were going to use The Holiday Property Group/Vacation Properties by Owner [HPG/VPO] for the sale. The same “buyer” was in contact with multiple victims at one time.
Kent, and his co-conspirators, would then contact the victim to inform them they needed to send The Holiday Property Group/Vacation Properties by Owner money, typically between $500 and $1,500, to cover costs associated with the sale/transfer, such as “closing costs” or resort “transfer fee.” Kent represented that any fees would be held in escrow, and were refundable at any time. In fact, the fees received were not held in escrow, but instead were deposited into the accounts of HPG/VPO.
Throughout the course of this conspiracy, Kent and his coconspirators defrauded a total of over $550,000 from the victims he targeted. Kent usually immediately withdrew much of the money deposited from the victim payments to use for his own personal expenses, pay for expenses needed to continue the scheme, or to pay his coconspirators for their role in the criminal scheme.
The investigation of the case was conducted by the United States Postal Inspection Service, the Virginia Office of the Attorney General, and the Frederick County Sheriff’s Office. Assistant United States Attorney Erin M. Kulpa and Trial Attorney Andrew Tyler of the Department of Justice’s Fraud Section prosecuted the case for the United States.
Niceville Man Sentenced to More Than Eleven Years in Prison for Federal Firearms ChargesRead the Press Release
PENSACOLA, FLORIDA – Jeremy Langston Alford, 34, of Niceville, was sentenced yesterday to serve 135 months in prison after pleading guilty on July 31, 2017, to unlawfully possessing a firearm as a convicted felon, possessing stolen firearms, and theft of firearms from the premises of a federal firearms licensed dealer. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
On February 24, 2017, Okaloosa County Sheriff’s deputies discovered that Jim’s Guns and Supplies, a federal firearms licensed dealer in Niceville, had been burglarized and a number of firearms, ammunition, and other items had been stolen. Evidence recovered from the crime scene led officials to a shed belonging to Alford’s relative. Officials recovered 39 firearms and numerous rounds of ammunition from inside the shed and the residence. Further investigative efforts led to the recovery of more than 60 firearms, as well as numerous rounds of ammunition, and multiple pieces of tactical equipment, including a gas mask that were all stolen from Jim’s Guns and Supplies. On February 26, 2017, Alford was arrested and admitted to burglarizing Jim’s Guns and Supplies and stealing firearms, ammunition, and other items.
This case resulted from investigations by the Okaloosa County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant U.S. Attorney J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
New York Man Convicted of Armed Bank RobberyRead the Press Release
A man who robbed the Citizens State Bank in Hopkinton, Iowa, was convicted by a jury yesterday after a three-day trial in federal court in Cedar Rapids.
Daniel Louis Jackson, 27, from Younkers, New York, was convicted of armed bank robbery, conspiracy to commit armed bank robbery, aiding and abetting the use, carrying, and brandishing of a firearm during a crime of violence, and conspiracy to use, carry, and brandish a firearm during a crime of violence. The verdict was returned yesterday following about two hours of jury deliberations.
The evidence at trial showed that Jackson moved to Muscatine, Iowa, during the summer of 2016 along with his co-defendant, Jason Centeno. While in Iowa, Jackson and Centeno reach an agreement to rob the Citizens State Bank in Hopkinton, Iowa. Prior to the robbery, Jackson obtained a .38 caliber revolver from an individual in Detroit, Michigan. On the morning of October 21, 2016, Jackson and Centeno drove Jackson’s car from Muscatine to Hopkinton. Centeno entered the bank brandishing the firearm, while Jackson carried a knife. Both men jumped over the bank counter and demanded money from the two employees working at the time. While Centeno collected money from one teller, Jackson forced the other teller to place her hands behind her back and restrained her using zip ties. Jackson and Centeno had purchased the zip ties together the day before at the Wal-Mart in Muscatine.
During the robbery, a third bank employee entered the bank. Jackson also ordered him to place his hands behind his bank and secured his hands with zip ties. Jackson and Centeno left the bank, taking approximately $8,000, and then returned to Muscatine. Jackson and Centeno the fled from Iowa, first to Younkers, New York, and later to Florida where they were eventually arrested by the Volusia County Sheriff’s Office.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Jackson remains in custody of the United States Marshal pending sentencing. Jackson faces a mandatory minimum sentence of seven years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, $400 in special assessments, and 20 years of supervised release following any imprisonment.
On September 14, 2017, Centeno pled guilty to armed bank robbery and using, carrying, and brandishing a firearm during a crime of violence. Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Centeno remains in custody of the United States Marshal pending sentencing. Centeno faces a mandatory minimum sentence of seven years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, $200 in special assessments, and 10 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Lisa C. Williams and Jacob Schunk and was investigated by the Iowa Division of Criminal Investigation, the Federal Bureau of Investigation, the Delaware County Sheriff’s Office, the Muscatine County Sheriff’s Office, the Muscatine Police Department, the Manchester Police Department, the Yonkers Police Department, and the Volusia County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-cr-2057.
Follow us on Twitter @USAO_NDIA.
New Jersey Woman Guilty of Participating in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Briani Gomez, age 21, of New Jersey, pleaded guilty on October 12, 2017, before U.S. District Court Judge Malachy E. Mannion, to participating in a heroin trafficking conspiracy that stretched from Stroudsburg to New York to the state of Maine.
According to United States Attorney Bruce D. Brandler, Gomez admitted to transporting more than 100 grams of heroin (which is equivalent to more than 4,000 retail bags of heroin) to co-conspirators in Maine during 2012 through June 2014.
Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing for Gomez will be scheduled at a later date.
Gomez was indicted along with three other people by a federal grand jury in October 2016, as a result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, the Maine State Police, the Monroe County District Attorney’s Office, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa is prosecuting 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.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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National Children’s Advocacy Center in Huntsville Receives $2 Million in DOJ GrantsRead the Press Release
HUNTSVILLE – The Department of Justice has awarded grants totaling $2.1 million to the National Children’s Advocacy Center for the 2017 fiscal year, announced U.S. Attorney Jay E. Town and NCAC Executive Director Chris Newlin.
The Huntsville Center is receiving the funding through the Office of Juvenile Justice and Delinquency Prevention’s Victims of Child Abuse grant programs. Under the Training and Technical Assistance for Child Abuse Professionals program, the center received $900,000 to develop a training program for state and local professionals who shepherd child abuse victims through the judicial system. It also received a $1.2 million grant under the VOCA Act Regional Children’s Advocacy Centers Program to support the Southern Regional Children’s Advocacy Center, which provides training and technical assistance to state chapters, other children’s advocacy centers, and multidisciplinary teams in 16 states and the District of Columbia.
“I am so pleased to be able to announce that the Department of Justice has awarded grants totaling more than $2 million to the National Children’s Advocacy Center this year,” Town said. “This center is renowned for the training and support it provides the many professionals who work with child abuse victims and strive to improve the judicial system’s handling of their cases.”
“The NCAC is honored to be awarded these two grants, which will allow us to continue providing the highest quality child abuse training and technical resources for professionals working throughout the United States,” Newlin said. “The Department of Justice has continuously funded these two projects at the NCAC for more than 20 years. This is testament to the quality of training and technical assistance we have provided during that time, which also has seen the number of CACs in the United States increase to more than 900 in 2017, serving more than 300,000 children per year. At the same time, our nation has seen the sexual abuse of children decline by almost 50 percent! We are making progress, and the NCAC and this community have played a pivotal role in this regard.”
The Huntsville Center was the first child advocacy center in the country, and it continues to provide prevention and intervention services for child abuse in Huntsville and Madison County. It also houses the NCAC Training Center, the Southern Regional Children’s Advocacy Center, NCAC Virtual Training Center, and the Child Abuse Library Online – CALiO.
The purpose of the two grants is to develop and implement a model training and technical assistance program to improve the judicial system's handling of child abuse and neglect cases and enhance the expertise of child abuse professionals.
The program will provide training and support for multidisciplinary teams of child abuse professionals at the state and local levels, and will develop resources and publications designed to enhance the coordinated multidisciplinary response to child abuse.
The training by the National Children’s Advocacy Center will emphasize the implementation of developmentally appropriate, trauma-informed and evidence-based programs, policies and practices. Training will address topics including Forensic Interviews at Trial: Preparation and Presentation Training; Building Forensic Interviewing Skills Training; Conducting Child Abuse Investigations for Child Protective Services, and Law Enforcement Training for CPS Investigators and Law Enforcement Investigators.
The grants also will help the advocacy center provide scholarships for child abuse professionals to the International Symposium on Child Abuse and offer new, recorded online child-abuse response training sessions and provide new webinars on high-priority child-abuse response topics. The center will continue to provide archived webinars and online trainings. Through its technical assistance efforts, the NCAC will provide technical assistance via online Mentoring and Consultation Groups for Forensic Interviewers and online Consultation and Support Groups for Supervisors of Child Forensic Interviewers.
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Monongalia County woman admits to maintaining a drug houseRead the Press Release
CLARKSBURG, WEST VIRGINIA - A Morgantown, West Virginia woman has admitted to having a drug-involved premises, Acting United States Attorney Betsy Steinfeld Jividen announced.
Brianna Blackman, also known as “BB,” age 22, pled guilty to one count of “Maintaining a Drug-Involved Premises.” Blackman admitted to maintaining an apartment in Rhea Terrace in Fairmont in Marion County, West Virginia for the purpose of distributing oxycodone. The crime occurred from May until December 2016.
Blackman faces up to 20 years incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Milton Man Sentenced to 40 Years in Prison for Online Child Exploitation OffensesRead the Press Release
PENSACOLA, FLORIDA – Danny Ray Murphy, 37, of Milton, was sentenced today to 40 years in prison, after being convicted on June 14 of conspiracy, receipt of child pornography, and possession of child pornography involving a minor under age 12. As part of his sentence, Murphy will be required to register as a sex offender. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
During the trial, the jury reviewed three months of online communications between Murphy and a co-conspirator, including images and a video of the co-conspirator sexually assaulting a three-year old child. These communications along with forensic evidence from Murphy’s cellular telephone, revealed he was attempting to gain personal access to the three-year-old for the same purpose.
U.S. Attorney Canova said: “Children’s lives are easily influenced by their early experiences, and they trust adults to keep them safe. As such, it is especially horrific that this long-lasting harm was inflicted upon a vulnerable child. My office and our law enforcement partners are committed to pursuing these child predators to protect our communities and to rescue defenseless children.”
HSI Tampa Special Agent in Charge James C. Spero said: “HSI special agents will continue to investigate these crimes and ensure the criminals are brought to justice for preying on our kids.”
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Escambia County Sheriff’s Office, the Pensacola Police Department, the State Attorney’s Office for the 1st Judicial Circuit, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Michigan man sentenced for heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Julian Michael-Thomas “Cain” Johnson, of Detroit, Michigan, was sentenced today to 40 months incarceration for heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Thomas, age 22, pled guilty to one count of “Distribution of Heroin within 1,000 Feet of a Protected Location” in June 2017. The crime occurred November 2016 near West Virginia University in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.Mexican National Pleads Guilty to Aggravated Identity Theft and Passport Fraud ChargesRead the Press Release
ALBUQUERQUE – Juan Manuel Almanza-Martinez, 58, a Mexican national illegally residing in the United States, pled guilty yesterday in federal court in Las Cruces, N.M., to making false statements on a passport application and aggravated identity theft charges.
Almanza-Martinez was arrested on July 19, 2017, on a criminal complaint charging him with making a false statement in an application for a passport in Dona Ana County, N.M. An investigation into Almanza-Martinez was initiated in Feb. 2017, by the Las Cruces office of Homeland Security Investigations (HSI) after agents received information that Almanza-Martinez was illegally residing in Anthony, N.M. According to the complaint, the Social Security Administration (SSA) interviewed Almanza-Martinez in 2015, after he applied for Social Security benefits in El Paso, Tex., after learning that the Social Security number Almanza-Martinez provided had been reported stolen from the victim approximately 30 years earlier. The complaint further alleged that Almanza-Martinez fraudulently used the victim’s Social Security number to apply for replacement Social Security cards in Jan. 2008 and Sept. 2008; for a passport in Nov. 1999, March 2009, and Dec. 2009; and for unemployment benefits in July 2015.
Court filings reflect that Almanza-Martinez was previously deported from the United States in 1982, following a felony conviction for second-degree burglary in Colorado. They further reflect that in 1990, Almanza-Martinez admitted lying to the U.S. Immigration and Naturalization Service (USINS) in 1982, about his name and being a Mexican national, and provided the USINS with a false birth certificate from the State of California. Due to a lack of available information, the USINS was unable to verify Almanza-Martinez’s citizenship and no further action was taken against Almanza-Martinez at that time. On March 3, 2017, a certified copy of Almanza-Martinez’s Mexican birth certificate was provided to HSI confirming that Almanza-Martinez was born in Chihuahua, Mexico in 1959.
During yesterday’s proceedings, Almanza-Martinez pled guilty to a felony information charging him with making a false statement in an application for a passport on Dec. 10, 2009, and aggravated identity theft on July 18, 2017. According to the information, Almanza-Martinez committed the offenses in Dona Ana County. The guilty plea was entered without the benefit of a plea agreement.
At sentencing, Almanza-Martinez faces a maximum penalty of five years in federal prison on the false statement on an application for a passport charge. He also faces a mandatory minimum penalty of two years in federal prison on the aggravated identify theft charge which must be served consecutive to any other sentence imposed. A sentencing hearing has yet to be scheduled.
This case was investigated by the Diplomatic Security Service of the U.S. Department of State, Las Cruces office of HSI and the SSA Office of Inspector General. Assistant U.S. Attorneys John Balla and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Mexican Man Admits Illegal Transportation of Alien Within the United StatesRead the Press Release
ALBANY, NEW YORK – Wilder Arreola-Medel, 45, of Milwaukee, Wisconsin, pled guilty today to transporting an alien within the United States, announced Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
In pleading guilty, Arreola-Medel admitted that on September 17, 2017, while driving his car along the international border near Chateaugay, New York, he picked up a Mexican citizen who had just crossed the border illegally from Canada, and was driving her away from the border area when he was stopped and arrested by U.S. Border Patrol agents. Arreola-Medel admitted that he intended to transport the Mexican citizen to Milwaukee, Wisconsin.
As a result of his conviction, Arreola-Medel faces up to 5 years in prison and a fine of up to $250,000, and a term of post-imprisonment supervision of up to 3 years when he is sentenced by U.S. District Court Judge Mae A. D’Agostino on February 2, 2018. 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.
The smuggled alien, Judith Hernandez-Daniel of Mexico, pled guilty to Entering the United States Without Inspection by Immigration Authorities, and was sentenced to a 20-day period of imprisonment on October 3, 2017.
This case was investigated by the United States Border Patrol, Burke Station, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Maryland Real Estate Flipper Sentenced to Prison for Obstructing IRS and Failing to File Tax ReturnsRead the Press Release
A Maryland man who bought, improved and sold residential real estate was sentenced to 36 months in prison announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Stephen M. Schenning for the District of Maryland.
According to the indictment and evidence presented for sentencing, David J. Simard, 58, purchased and sold real estate in Maryland and the Washington, D.C. metropolitan area since the mid-1980s. In January 2008, Simard received notice that the Internal Revenue Service (IRS), in connection with an audit of his personal income taxes, had requested documents and information from third parties regarding his real estate transactions. Less than one month after receiving this notice, Simard created Pegasus Home Corporation and began buying and selling properties in its name instead of his own. From 2009 through 2010, Simard purchased and sold 96 properties in the name of Pegasus. Simard attempted to conceal his ownership and control of Pegasus by falsely representing that his relative was the owner. Simard had the same relative apply with the IRS for an employer identification number for Pegasus and used that number when buying and selling properties. This caused the IRS to receive information falsely indicating that the relative owned Pegasus. Simard also instructed the relative to open a bank account for Pegasus. Simard did not file timely personal tax returns for tax years 2009 and 2010, despite earning income requiring him to file. He also did not file timely corporate tax returns for Pegasus for the same years despite having an obligation to do so. Simard last filed a timely personal income tax return in 1995. The court found that Simard caused a tax loss of $1.5 million.
In addition to the term of prison imposed, U.S. District Judge Roger W. Titus ordered Simard to serve one year of supervised release and to pay a $10,000 fine. Simard previously pleaded guilty on July 10 to obstructing the lawful functions of the IRS and failing to file personal and corporate income tax returns.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schenning thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael C. Vasiliadis and Kenneth C. Vert of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Marrero Woman Sentenced to One Year Imprisonment for Healthcare FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MONICA SYLVEST, age 52, of Marrero, was sentenced today after previously pleading guilty to health care fraud.
U.S. District Judge Susie Morgan sentenced SYLVEST to serve one year and one day imprisonment, restitution in the amount of $536,724, and three years of supervised release.
According court documents, from August 2014 through September 2016, SYLVEST worked as a Practice Administrator for a local pediatric clinic. During her employment, SYLVEST embezzled and diverted to her personal use approximately $536,724 in medical reimbursements from the Medicaid program in connection with the delivery of and payment for health care benefits, items, and services paid to the clinic. As the Practice Administrator, SYLVEST utilized a business credit card issued by American Express and made over $536,000 in unauthorized charges to purchase several luxury items including a Harley Davidson motorcycle, custom diamond jewelry, and collectible artwork. SYLVEST then accessed her employer’s bank account containing the Medicaid reimbursements to make transfers and payments to cover the illegal purchases. SYLVEST disguised the payments made to American Express as “biologicals” or “vaccinations” in order to make it appear that the expenses were related to the normal operations of the clinic.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Office of Inspector General for the U.S. Department of Health and Human Services in investigating this matter. The prosecution of this case is being handled by Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Man Sentenced to 43 Months’ Imprisonment for Unlawful Gun PossessionRead the Press Release
A man who drove by a house in Waterloo, Iowa, and fired a gun twice at the detached garage was sentenced yesterday to more than three years in federal prison.
Dayton Jay Myers, age 21, from Waterloo, Iowa, received the prison term after a June 1, 2017, guilty plea to possession of a firearm by a drug user.
At the sentencing hearing, Myers admitted that he drove to the Waterloo residence on the night of January 3, 2017, to send a message to a person who was threatening him after a failed drug deal. Myers drove up and down the street beside the house before firing a stolen handgun twice at the detached garage, striking the garage and a parked vehicle. At the time he fired the gun, Myers was under the influence of alcohol and marijuana.
Myers was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Myers was sentenced to 43 months’ imprisonment and a special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Myers is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2018-LRR.
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Man Sentenced for Defrauding Woman of $377,000Read the Press Release
NORFOLK, Va. – A Winchester man was sentenced today to nearly 6 years in prison for defrauding a woman of approximately $377,000 based on false statements that included a fraudulent inducement of marriage.
Harry Randall Withers, Jr., 38, pleaded guilty to wire fraud and engaging in monetary transactions in criminally derived property on June 27. According to court documents, Withers made a series of false representations to a woman to induce her to lend him approximately $377,000. Withers told the woman he was the owner of a wine and cheese bar and that his employees had embezzled from him, when in fact he was the manager of the bar and had embezzled from the actual owner. Wither also told the woman he was a member of an affluent family that had founded Union Camp Corporation, a pulp and paper company that was later acquired by International Paper; that his grandmother had died and left him a large inheritance that he would use to repay a loan; and that the IRS had frozen his bank accounts. He made the further false representation that if they were married, it would solve tax and legal issues that were preventing him from accessing his money and that he would then be able to repay her. In reliance on these misrepresentations, the woman married Withers and lent him the money, which he used for his own benefit with no intention of repaying her. Withers wrote a series of checks that purported to be in partial repayment of the money the woman had lent him, but they were written on funds that had insufficient funds or were closed. He also forged the woman’s signature on checks written on her account that he made payable to himself.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-166.
Justice Department Settles Immigration-Related Discrimination Claim Against Florida RestaurantRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with Ark Rustic Inn LLC d/b/a Rustic Inn Crabhouse (Rustic Inn), a restaurant located in Fort Lauderdale, Florida. The agreement resolves the department’s investigation into whether Rustic Inn discriminated against work-authorized immigrants when verifying their employment authorization, in violation of the Immigration and Nationality Act (INA).
The department’s investigation revealed that Rustic Inn routinely requested that work-authorized non-U.S. citizens present specific documents, such as Permanent Resident Cards or Employment Authorization Documents, to verify their citizenship status information, but did not subject U.S. citizens to such verification. The anti-discrimination provision of the INA prohibits employers from subjecting employees to different or unnecessary documentary demands based on employees’ citizenship, immigration status or national origin.
Under the settlement, Rustic Inn will pay a civil penalty to the United States, train its staff, post notices informing workers about their rights under the INA’s anti-discrimination provision, and be subject to departmental monitoring for three years.
“Employers, large and small, must be aware of their legal obligations to avoid imposing barriers to employment based on citizenship status or national origin,” said Acting Assistant Attorney General John M. Gore of the Civil Rights Division. “We commend Rustic Inn for its cooperation throughout this investigation and its commitment to ensure compliance with the law.”
The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship/immigration status or national origin, or discrimination based on their citizenship/immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Jennings man pleads guilty to posting nude photos online of female victimRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Jennings man pleaded guilty Wednesday to posting nude photos online and threatening to post more photos of a female victim.
Christopher Redeaux, 21, of Jennings, La., pleaded guilty before U.S. District Judge Jay C. Zainey to one count of interstate transmission of extortionate communication. According to the guilty plea, Redeaux obtained nude pictures of a woman with whom he had a relationship. After their relationship ended, he threatened to publish the pictures on the internet if the woman did not provide more. After obtaining additional pictures, Redeaux posted some of the photos to Facebook using a fictitious account. He sent a friend request to the victim and her friends. The victim later encountered Redeaux at school, and he invited her to his dorm room where she rejected his sexual advances. Days later, Redeaux began to harass her through an online account and telephone calls. During their last conversation, he ended it by saying “Yup sending your pics.” The victim filed a complaint with McNeese State University Police on December 2, 2015. Redeaux was arrested on several state charges including cyberstalking, sexual battery and cyberbullying. Redeaux’s cell phone was searched and a folder containing the nude photos of the victim were found.
Redeaux faces up to two years prison, one year of supervised release and a $250,000 fine. The court set a December 6, 2017 sentencing date.
The FBI, McNeese State University police and the Greater Houston Regional Computer Forensics Laboratory conducted the investigation. Assistant U.S. Attorneys Jamilla A. Bynog and T. Forrest Phillips are prosecuting the case.
Jacksonville Cardiovascular Practice Agrees to Pay More Than $440,000 to Resolve False Claims Act Allegations for Failing to Reimburse Government Health Care ProgramsRead the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that First Coast Cardiovascular Institute, P.A. (“FCCI”) has agreed to pay $448,821.58 to resolve allegations that it violated the False Claims Act by knowingly delaying repayment of more than $175,000 in overpayments owed to Medicare, Medicaid, TRICARE, and the Department of Veterans Affairs.
Specifically, the government alleges that FCCI accrued credit balances or overpayments owed to federal health care programs. These credit balances often occur in a medical practice, for example, when two insurers share responsibility for a payment and one pays too much. In 2009, amendments to the False Claims Act made it a violation to knowingly fail to pay back an obligation owed to the United States and its federal health care programs. Despite repeated warnings, FCCI failed to pay back the money it owed to Medicare, Medicaid, TRICARE, and the VA until being notified that the Department of Justice had opened an investigation into their failure to repay the government.
“When FCCI learned that it had received over $175,000 in potential overpayments to federal health care programs in 2016, it had a legal obligation to return those funds within 60 days,” stated Acting U.S. Attorney Stephen Muldrow. “Instead, they delayed repayment, ultimately retaining thousands of dollars to which they were not entitled. This settlement should send a message that we will aggressively pursue those who seek to unjustly profit from our nation’s federal health care programs.”
“This settlement is the result of successful inter-agency cooperation, resulting in the return of overpayments owed back to the government,” stated Special Agent in Charge Monty Stokes from the Office of Inspector General, U.S. Department of Veterans Affairs. “This settlement will hopefully be a deterrent for others who consider similar practices.”
“Failing to return Medicare overpayments is unacceptable and diverts critical tax dollars from their intended purpose,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General. “The OIG, along with our law enforcement partners, will hold health care companies accountable who knowingly hold onto Medicare funds to which they are not entitled.”
“This settlement demonstrates the ongoing commitment of the Defense Criminal Investigative Service to protect the integrity of the U.S. military health care program, known as TRICARE,” said Special Agent in Charge John F. Khin, Southeast Field Office. Through joint investigations with our investigative partners, DCIS aggressively pursues all remedies against medical providers who fail to deal honestly with the Department of Defense, to preserve our tax dollars where they are needed most.”
The settlement concludes a lawsuit originally filed by a former employee of FCCI, Douglas Malie, in the United States District Court for the Middle District of Florida. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Mr. Malie will receive roughly $90,000 of the proceeds from the settlement with FCCI.
The government’s action in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, the State of Florida, the Defense Criminal Investigative Service, the Department of Veterans Affairs, and the U.S. Department of Health and Human Services – Office of Inspector General. It was handled by Assistant U.S. Attorney Shea Gibbons.
The case is captioned United States and the State of Florida ex rel. Malie v. First Coast Cardiovascular Institute, P.A., et al., Case No. 3:16-cv-10548-J-34MCR. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Honduran National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Honduran national was indicted yesterday in federal court in Boston on a federal immigration charge.
William Maradiaga-Oseguera, 32, was indicted on one count of unlawful reentry of a deported alien.
According to court documents, on Aug. 29, 2017, law enforcement officers in Boston encountered Maradiaga-Oseguera and determined him to be illegally present in the United States. Maradiaga-Oseguera was previously deported on March 27, 2009; March 17, 2012; July 9, 2012; and Nov. 13, 2013.
Maradiaga-Oseguera faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Honduran National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Honduran national was indicted yesterday in federal court in Boston on a federal immigration charge.
Alan Fernando Dominguez Banegas, 24, was indicted on one count of unlawful reentry of a deported alien.
According to court documents, on Sept. 22, 2017, law enforcement officers in Framingham encountered Dominguez Banegas and determined him to be illegally present in the United States. Dominguez Banegas was previously deported on May 30, 2014.
Dominguez Banegas faces a sentence of no greater than two years in prison, one year of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hartford Man Pleads Guilty to Federal Charge Stemming from Threats against JudgeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DUSAN MLADEN, also known as David Mladen, 62, of Hartford, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of making a false statement to a federal law enforcement agent investigating threats against a U.S. Bankruptcy Court Judge.
According to court documents and statements made in court, MLADEN was a litigant in a proceeding pending before the U.S. Bankruptcy Court in the District of Connecticut, captioned In re: Eternal Enterprise, Inc. MLADEN formerly owned Eternal Enterprise, Inc., which owns several residential apartment properties in Hartford, and he has continued to be active in the management and decision making for the company.
On July 5, 2017, the judge presiding over the Eternal Enterprise matter discovered in the mailbox of her residence an anonymous handwritten note containing the phrases “BACK OFF,” “YOU ARE OVERSTEPPING AUTHORITY” and “JUST WARNING FOR NOW.”
On July 10, the judge received a phone call that had been placed to her home phone number. During the call, the caller stated that he had visited the judge’s house last week and “I left a message for you.” He said that he wanted her to file an order tomorrow “extending the deadline to September 30,” and “then maybe everything will be ok.” Although the caller refused to identify himself, the judge recognized the voice as MLADEN’s. The U.S. Marshals Service subsequently confirmed that the cell phone used to make the call was at a location in the vicinity of MLADEN’s residence, and that it had been purchased by MLADEN under a fictitious name.
On July 11, deputy U.S. Marshals interviewed MLADEN at his residence. During the conversation, MLADEN denied having gone to the judge’s house the previous week and having called the judge on July 10, and he stated that he did not have the judge’s phone number. Each of these statements was false. Pursuant to a court-authorized search of MLADEN’s car, the U.S. Marshals discovered that the judge’s home address was programmed into the defendant’s GPS unit.
MLADEN has been detained since his arrest on July 11.
Judge Meyer scheduled sentencing for January 15, 2018, at which time MLADEN faces a maximum term of imprisonment of five years.
This matter is being investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney William J. Nardini.
Harrison County man admits to maintaining a drug houseRead the Press Release
CLARKSBURG, WEST VIRGINIA - A Clarksburg, West Virginia man has admitted to having a drug-involved premises, Acting United States Attorney Betsy Steinfeld Jividen announced.
Eric K. Malcomb, age 36, pled guilty to one count of “Maintaining a Drug-Involved Premises.” Malcomb admitted to maintaining a house on Penn Street in Clarksburg for the purpose of distributing heroin in July 2015.
Malcomb faces up to 20 years incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Greater Harrison Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan Man Arrested in Guilderland, NY Sentenced for Illegal Re-entry into the United StatesRead the Press Release
ALBANY, NEW YORK – Diego Efrain Ceto De Leon, 24, of Guatemala, was sentenced today to time served (27 days), for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), Field Office Director Thomas E. Feeley, Buffalo, New York Field Office.
As part of his guilty plea, Ceto De Leon admitted that he was an alien, a citizen of Guatemala, and that he illegally returned to the United States after he was removed to Guatemala on July 29, 2014.
On September 16, 2017, Ceto De Leon was encountered and arrested by ICE officers in Guilderland, New York. A fingerprint check of Ceto De Leon resulted in the discovery of the prior removal.
Following the sentencing, Ceto De Leon was remanded to the custody of the Department of Homeland Security, which will place him into removal proceedings.
The case was investigated by United States Immigration and Customs Enforcement, Albany, NY, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Groton Man Sentenced to Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DONALD HUGHES, 42, of Groton, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 12 months of imprisonment, followed by three years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, an investigation by the FBI Northern Connecticut Safe Streets Task Force, Norwich Police Department, Waterford Police Department and Groton Town Police revealed that in the summer of 2016, Paul Mott, of Groton, conspired with others to obtain and distribute cocaine. Mott regularly took orders for cocaine from HUGHES and other co-conspirators and then drove to his supplier in the Bronx, New York, to obtain the drug. When he returned to Connecticut, Mott provided the cocaine to HUGHES and others for further distribution. Some of Mott’s narcotics trafficking activity occurred his restaurant, Caribbean American Kitchen to Go, located on Truman Street in New London.
HUGHES and Mott were arrested on August 8, 2016. On that date, a search of HUGHES possessed 319 grams of cocaine.
On May 9, 2017, HUGHES pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine.
Mott also pleaded guilty and, on September 5, 2017, was sentenced to 60 months of imprisonment. He also was ordered to forfeit a 2013 Toyota 4Runner and approximately $3,494 that was seized from him at the time of his arrest.
Three other individuals were charged and convicted as a result of this investigation.
This case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Glenville Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Glenn Mears, 44, of Glenville, New York, pled guilty today to one count of distributing and ten counts of possessing child pornography, announced Acting United States Attorney Grant C. Jaquith and Special Agent in Charge Kevin Kelly, Department of Homeland Security, Homeland Security Investigations (HSI).
As part of his guilty plea, Mears admitted to distributing child pornography using the Internet-based messaging application, “Kik,” and to possessing images and videos of child pornography on ten compact discs. Mears also admitted that he possessed child pornography involving prepubescent children and children under 12 years of age.
Sentencing is scheduled for February 12, 2018, in Albany, New York.
Mears, who is detained pending sentencing, faces at least 5 years and up to 20 years in prison on the distribution of child pornography count, and faces a total of 160 years imprisonment on the possession counts. Mears will receive a term of post-release supervision of at least 5 years and up to life, and a fine of up to $250,000 on each count. 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.
This case was investigated by HSI and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Garland Man Sentenced to 60 Months in Federal Prison for Stealing over 2,000 Individuals’ IdentificationRead the Press Release
DALLAS — Alan Okpechi, 30, of Garland, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 60 months in federal prison for identify theft, announced U.S. Attorney John Parker of the Northern District of Texas.
Okpechi pleaded guilty to one count of conspiracy to commit access device fraud and has been in custody since his arrest in July 2016.
Krisstopher Segura-Jatip and Morgen Nelson also pleaded guilty to their role in the conspiracy and were sentenced to 57 months and 24 months in federal prison, respectively.
According to plea documents filed in the case, beginning in April 2015 and continuing through July 13, 2016, Okpechi and his coconspirators purchased the identification of individuals, including names, social security numbers, driver's license numbers, and credit card numbers, through websites. Okpechi used the stolen and unauthorized identification to create false identification documents, including false Texas temporary driver's licenses, bearing the photos of Okpechi and his codefendants. The stolen identification was also used to make fraudulent, unauthorized purchases with credit and/or debit card accounts. Okpechi used an algorithm and an application on Nelson’s phone in order to generate credit card numbers that corresponded with and accessed open accounts to which Okpechi did not have authorization to access. Okpechi and other coconspirators obtained blank plastic cards or altered debit, credit, and gift cards, for the purpose of recoding the cards with unauthorized credit card information. The credit cards were used on several occasions to reserve hotel rooms, including entire floors of hotels, and to rent vehicles.
Over the course of the conspiracy, Okpechi had possessed over 2,000 accounts belonging to other individuals.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Jamie L. Hoxie prosecuted.
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Gaming Center Owner Sentenced for Obstructing Justice in ISIS CaseRead the Press Release
ALEXANDRIA, Va. – An owner of a Fairfax gaming center was sentenced to prison today for obstructing justice and making false statements involving international terrorism.
Michael Queen, 28, of Woodbridge, was sentenced to 2 years in prison. According to court documents, Queen and Soufian Amri, 32, of Falls Church, lied to FBI agents to prevent them from learning about and investigating their friend Haris Qamar’s attempt to travel to join the Islamic State of Iraq and al-Sham (ISIS). Queen and Amri knew that Qamar had attempted to travel overseas to join ISIS in 2014, yet they lied to and misled the FBI by saying that the only person they knew who might travel to join ISIS was a “tall, thin, Indian” individual. Queen later told Qamar that Queen and Amri gave the FBI the name of a Hindu individual as someone who might support ISIS. Queen told Qamar, “I’m never going to throw a Muslim underneath the bus to try to do the right thing.”
Qamar was sentenced to 8 1/2 years in prison on February 17 for attempting to provide material support to ISIS. Amri is scheduled to be sentenced on October 27.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Gordon D. Kromberg and Colleen E. Garcia prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-50.
Four Akron men indicted for distributing methamphetamineRead the Press Release
Four Akron men were indicted in federal court for their roles in a conspiracy to distribute methamphetamine, law enforcement officals said.
Named in the five-count indictment are: Michael E. Davis, 47; James E. Sanders, 50; Christopher J. Proctor, 50, and Rashaad M. Thomas, 40. All four are charged with conspiracy to possess with intent to distribute more than 500 grams of methamphetamine and possession with the intent to distribute more than 500 grams of methamphetamine.
Thomas was charged with an additional count of possession with the intent to distribute more than 500 grams of methamphetamine. Davis and Sanders were also charged with being a felons in possession of a firearm and ammunition.
The investigation was conducted by members of the Akron/Summit County HIDTA Initiative, which includes the Drug Enforcement Administration, Akron Police Department, Ohio State Highway Patrol, Summit County Sheriff’s Office, Summit County Drug Unit, Springfield Township Police Department, Copley Township Police Department, New Franklin Township Police Department, Stow Police Department, Barberton Police Department, Tallmadge Police Department, University of Akron Police Department, Reminderville Police Department, Silver Lake Police Department, Cuyahoga Falls Police Department, and Summit County Prosecutor’s Office.
The case is being prosecuted by Assistant U.S. Attorney Teresa Riley.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and 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.
Founder and Ceo of Wright Time Capital Group Pleads Guilty to Commodities FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MICHAEL S. WRIGHT pled guilty today before U.S. District Judge Paul A. Engelmayer to commodities fraud in connection with WRIGHT’s operation of an investment fund, Wright Time Capital Group (“WTCG”). WRIGHT induced victims to invest in his fund by misrepresenting the historical trading performance of WTCG, and, after obtaining investor funds, misappropriated a large portion of them for his personal use and benefit. Additionally, after losing most of the funds he actually invested in unsuccessful forex trades, WRIGHT hid those losses from investors by issuing fake account statements and began operating WTCG as a Ponzi scheme, obtaining funds from new investors and using those funds to make payments to earlier investors who were demanding the return of their investments.
Acting U.S. Attorney Joon H. Kim said: “Michael Wright used WTCG as his personal piggy bank, issuing fraudulent account statements that covered up the losses WTCG incurred, and ultimately operating WTCG as a Ponzi scheme. Thanks to the dedicated work of the FBI, Wright will now be held to account for his fraudulent scheme.”
According to the Complaint, the Indictment, and other statements made in open court:
WRIGHT started WTCG in January 2011, and ultimately obtained more than $400,000 in investments from victims (the “Victims”). In his pitch to potential investors, WRIGHT misrepresented WTCG’s investment performance, falsely claiming that he had achieved double-digit gains through forex trading in WTCG’s first six months of existence. In fact, from the outset of WTCG, WRIGHT earned little to no money through his forex trading, and WRIGHT repeatedly falsified account statements to the Victims. Additionally, after obtaining Victim funds, WRIGHT did initially purchase some forex trades on their behalf, but then began to steal their money, using investor funds to pay for personal expenses, including hotel stays, travel, and tattoos.
Eventually, WRIGHT operated WTCG as a Ponzi scheme, soliciting funds from new investors in order to use their funds to make payments to other Victims who were demanding the return of their investments.
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WRIGHT, 30, of Rockville Centre, New York, pled guilty to one count of commodities fraud, which carries a maximum sentence of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the Judge.
WRIGHT is scheduled to be sentenced by Judge Engelmayer on January 25, 2018, at 10:00 a.m.
Mr. Kim praised the efforts of the FBI in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Jacob Warren is in charge of the prosecution.
Fort Worth Man Arrested on $25 Million Health Care Fraud SchemeRead the Press Release
FORT WORTH, Texas — A Fort Worth, Texas, man, David Williams, 54, was arrested yesterday by special agents with the Federal Bureau of Investigation on a federal complaint charging him with engaging in a scheme to defraud insurance companies by submitting over $25 million in false and fraudulent claims for medical services. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Williams made his initial appearance yesterday before U.S. Magistrate Judge Jeffrey L. Cureton and will remain on bond pending further court hearings.
According to the criminal complaint affidavit, between November 2012 through August 2017, Williams advertised on his website, getfitwithdave.com that he offered in-home fitness training and therapy through his company, “Kinesiology Specialists.” Williams identified himself as “Dr. Dave” and stated that he served clients in most of Texas, Las Vegas, Denver, Tucson, Seattle, and Orlando. Through his website, Williams told potential clients that he was accepting most health care insurance coverage plans.
In order to bill insurance companies for his services, Williams registered as a health care provider with the Centers for Medicare and Medicaid Services. In completing the application, Williams falsely certified that he was a health care provider. Williams enrolled as a health care provider at least nineteen times under different names or variations of his name and his company names and falsely certified that he was a health care provider in each application. Williams would then bill the insurance companies as if he were a medical physician and as if he had provided care requiring medical decision making of high complexity when Williams actually provided fitness and exercise training to his clients.
According to the criminal complaint affidavit, Williams recruited potential clients through the use of flyers, the internet, and word-of-mouth. Once recruited, Williams would typically meet with or speak with the new client over the phone and review their health history and goals for their planned fitness training. Williams would then typically assign a personal trainer to that individual. The personal trainer typically met with the client between one and three times a week for approximately one hour and provided fitness training. Williams would then bill insurance companies for each training session using inaccurate codes and on certain occasions, billed for services that neither he nor his staff, ever provided.
Between November 2012 through August 2017, Williams was paid in excess of $3.9 million in relation to his fraudulent billing of United HealthCare Services, Inc., Aetna, Inc., and Cigna.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the charged offense is 10 years in federal prison and a $250,000 fine.
The investigation is being conducted by the FBI. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Former Soldier Who Molested Two Young Children while Residing on Military Base Sentenced to 17+ Years in PrisonRead the Press Release
A former Army soldier was sentenced today in U.S. District Court in Tacoma to 210 months in prison and lifetime supervised release for aggravated sexual abuse of a minor, announced U.S. Attorney Annette L. Hayes. WIMIBALDO EVER CEDENO, 55, was arrested in Tacoma in September 2015, following a domestic violence assault at his home. The investigation revealed that CEDENO had sexually molested two children between 2002 and 2006, while CEDENO resided on military bases, including the Fort Lewis Military installation (now Joint Base Lewis-McChord or JBLM). The victims were between the ages of seven and twelve-years-old. At the sentencing hearing U.S. District Judge Robert J. Bryan said, “I need to protect the public. . . . These were very serious ongoing long-term offenses.”
According to records filed in the case, CEDENO molested and raped his young victims while threatening them with loss of their home and financial support if they reported the abuse. The abuse occurred when other adults were not present in the home. CEDENO left the military in 2011 and resided in Tacoma. The abuse was ultimately disclosed to the Tacoma Police and U.S. Military investigators after CEDENO was arrested for shoving his wife during an argument. The victims worked with law enforcement, obtaining recorded statements from CEDENO admitting he sexually molested them.
CEDENO pleaded guilty in May 2017. These crimes are being prosecuted in federal court because they occurred on a military base in an area of exclusive federal jurisdiction.
The case was investigated by the FBI, the U .S. Army Criminal Investigation Division (Army-CID), and the Tacoma Police Department. The case was prosecuted by Assistant United States Attorney Grady Leupold who serves as the Military Liaison for the U.S. Attorney’s Office.
Former Settlement Agent Convicted of Mortgage Fraud and Tax EvasionRead the Press Release
NEWARK, N.J. – A former settlement agent from Wyckoff, New Jersey, was convicted at trial today on charges related to the refinancing of properties in Bergen and Morris Counties, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Mark Andreotti, 46, was found guilty on all six counts of an indictment charging him with bank fraud, conspiracy to commit bank fraud, tax evasion, and failure to file tax returns. He was convicted following a two-week trial before U.S. District Judge Susan D. Wigenton in Newark federal court. The jury deliberated one and a half hours before returning its verdict.
According to documents filed in this case and the evidence at trial:
In January 2010, Andreotti submitted a loan application to a bank requesting $625,000 to refinance the mortgage on his house in Wyckoff. Andreotti, who owned and operated Metropolitan Title and Abstract (Metropolitan), used Metropolitan as the settlement agent on the transaction. After the bank transferred the $625,000 for the refinance to Metropolitan’s escrow account, Andreotti spent the money on personal expenses instead of paying off the first mortgage on the house.
In April 2011, Andreotti conspired with another individual who worked as a real estate attorney to obtain $480,000 by claiming that the money would be used to refinance the mortgage on the attorney’s house in Montville, New Jersey. After the bank transferred the money for the refinance to Metropolitan’s escrow account, Andreotti kept $110,000 for himself before transferring the remaining funds to the other conspirator.
In 2010, the IRS initiated collection actions against Andreotti for unpaid personal income taxes. Despite numerous liens and levies and having five rental income properties in addition to his primary residence, Andreotti continued to evade his taxes. He also failed to file tax returns for the tax years 2010 and 2011.
The bank fraud counts are each punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The tax evasion count is punishable by a maximum potential penalty of five years in prison and a $100,000 fine. The counts of failure to file tax returns are each punishable by a maximum potential penalty of one year in prison and a $25,000 fine. Sentencing is scheduled for Jan. 23, 2018.
Acting U.S. Attorney William E. Fitzpatrick credited special agents of the Federal Housing Finance Agency – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark; special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark; and investigators with the U.S. Attorney’s Office, with the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorney Shana Chen in Newark and Special Assistant U.S. Attorney Charlie Divine of the Federal Housing and Finance Agency – Office of Inspector General.Defense counsel: John P. McGovern Esq. and Christopher Dunn Esq., of Newark.
Former Postal Employee Sentenced for Stealing Items from the MailRead the Press Release
Roanoke, VIRGINIA – A former employee of the United States Postal Service was sentenced yesterday in federal court for stealing items from the mail, including cash, Acting United States Attorney Rick A. Mountcastle announced.
Michelle Spinner, 56, of Big Island, Virginia, was sentenced yesterday to a period of probation of two years and ordered to pay $2,603 in restitution. Spinner previously pleaded guilty to a one count Information charging her with theft of mail matter by an officer or employee of the United States Postal Service.
According to evidence presented at previous hearings by Assistant United States Attorney Charlene R. Day, Spinner worked as a mail-processing clerk at the Roanoke Processing and Distribution Center. She began working for the USPS in 2005.
In January 2015, The United States Postal Service- Office of the Inspector General began an investigation into the handling of mail at the processing and distribution center after receiving complaints from customers about mail being “rifled.”
During the course of the investigation, video cameras captured Spinner working on a flat sorter on several occasions. While working on the flat sorter, Spinner could be seen pausing on certain pieces of mail and spending an extended period with her hands deep in a container. On occasion, video captured Spinner opening mail, removing cash and placing the cash in her pocket.
In all, Spinner stole a total of $2,603 in cash from mail at the processing center.
The investigation of the case was conducted by the United States Postal Service-Office of the Inspector General. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Former Nurse Convicted of Wire Fraud and Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – After a three-day trial, Tangela Lawson-Brown, 41, of Midway, Florida, was convicted yesterday of wire fraud, theft of government funds, possession of unauthorized access devices, and aggravated identity theft. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between October 2011 and December 2012, Lawson-Brown worked as a nurse at a Tallahassee nursing home. In January 2013, the Tallahassee Police Department seized items from Lawson-Brown’s vehicle after the arrest of her husband. These items included a notebook containing the personally identifiable information (“PII”) of more than 150 people, including 26 patients at the nursing home where Lawson-Brown was previously employed.
Subsequent investigation by the Internal Revenue Service revealed that fraudulent 2011 income tax returns were filed using the PII of 105 persons listed in the notebook, including 24 of the nursing home patients. Over one million dollars in fraudulent claims were filed as part of the scheme. While the IRS detected many of the fraudulent returns, refunds totaling approximately $141,790 were disbursed.
During the trial, the government presented evidence that tax fraud proceeds were deposited into multiple bank accounts controlled by Lawson-Brown and that the fraud proceeds were used to pay Lawson-Brown’s mortgage, car repairs, and other personal expenses. Many of the identity theft victims were elderly patients in Lawson-Brown’s care. In several instances, fraudulent returns were filed within days of the patients arriving at the nursing home.
The sentencing hearing is scheduled for January 4, 2018, at 1:30 p.m. at the United States Courthouse in Tallahassee. Lawson-Brown faces a maximum of 20 years in prison for each of the wire fraud counts, a maximum of 10 years in prison for each of the theft of government funds and possession of unauthorized access devices counts, and a consecutive 2 year sentence for aggravated identity theft.
U.S. Attorney Canova said: “This case illustrates the vulnerability of elderly and disabled persons. Relatives and other caregivers should be alert to unauthorized tax returns, bank accounts, credit cards, and financial transactions, and should immediately report identity theft crimes to law enforcement agencies.”
This case resulted from an investigation by the Internal Revenue Service-Criminal Investigation, the United States Secret Service, and the Tallahassee Police Department. Assistant United States Attorney Michael T. Simpson prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.