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Thursday 12 October 2017
Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Theodore Calhoun, 54, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, cocaine, was sentenced to 22 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Brendan T. Cullinane, who handed the case, stated that between January and February of 2015 in the Western District of New York, the defendant, on three different occasions, distributed one-ounce quantities of cocaine in exchange for $1,400 on each occasion.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Baton Rouge Man Pleads Guilty to Theft of Disaster Assistance FundsRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson, who also serves as the Acting Executive Director of the National Center for Disaster Fraud, announced today that COURTNEY D. HICKMAN, age 42, of Baton Rouge, Louisiana, pled guilty to theft of $26,362 in Federal Emergency Management Agency (FEMA) funds in relation to the 2016 Baton Rouge flooding.
Following the 2016 flooding that affected 12 parishes in south Louisiana, FEMA funds were available to people who had emergency needs for food, shelter, and clothing because of the flood. In order to qualify for assistance based on home ownership, an individual must have, among other things, resided in the home at the time of the storm.
HICKMAN entered a plea of guilty to theft of government funds. According to documents submitted to the Court, in August 2016, HICKMAN filed a fraudulent claim with FEMA seeking disaster assistance funds for a home in Baton Rouge that he claimed was his primary residence at the time of the storm. At the time of the storm, however, HICKMAN was residing elsewhere and was renting his home to a tenant for 4 months prior to and throughout the period of the August 2016 flooding.
Acting U.S. Attorney Amundson stated, “The federal government consistently comes to the aid of individuals affected by disaster, and with the intent to return these individuals to the lives they lived before being victimized by disasters. The federal government’s efforts, however, are at times hindered by the actions of fraudsters who seek to steal disaster assistance funds that are intended for true victims. The United States Attorney’s Office for the Middle District of Louisiana, together with the National Center for Disaster Fraud and our federal, state, and local law enforcement partners, will continue to identify and prosecute those individuals who seek to steal assistance funds and affect the ability of the federal government to assist those truly in need.”
Special Agent-in-Charge David Green, Houston Field Office, Department of Homeland Security Office of Inspector General stated, “The DHS OIG, with the help of the U.S. Attorney’s Office, will continue to hold these individuals accountable. Stealing from the U.S. taxpayer by filing fraudulent FEMA claims for disaster assistance will never be tolerated by our agency.”
Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the Department of Justice’s National Center for Disaster Fraud at http://www.justice.gov/disaster-fraud.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Department of Homeland Security, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Armed Drug Trafficker Ordered to Serve 15 Years in CustodyRead the Press Release
McALLEN, Texas – Another member of an armed crew involved in stealing 246 kilograms of marijuana has been ordered to prison, announced Acting U.S. Attorney Abe Martinez.
Mexican nationals Eduardo Rodriguez-Silva, 27, and Arturo Guadalupe Saldivar-Abrego, 30; Eliezer Jesus Vela, 39, of Pharr; and Luis Angel Gonzalez, 21, and Nery Gonzalez Jr., 29, both of Edinburg, pleaded guilty to one count of possession with intent to distribute a controlled substance. Rodriguez-Silva, Saldivar-Abrego, Gonzalez and Gonzalez Jr. also pleaded to conspiracy to carry and use a firearm during and in relation to a drug offense.
Today, U.S. District Judge Randy Crane ordered Rodriguez-Silva to serve 60 months imprisonment for the drug trafficking and a 120-term of imprisonment for the firearm charge. The sentences will run consecutively for a total of 15 years in federal prison. He is expected to face deportation proceedings following his release.
Judge Crane previously sentenced Gonzalez Jr. to 207 months in prison, while Gonzalez, Saldivar-Abrego and Vela were ordered to serve 180, 96 and 60 months, respectively. Vela, Gonzalez and Gonzalez Jr. will also serve four years of supervised release following completion of the prison terms. Not a U.S. citizen, Saldivar-Abrego is expected to face deportation proceedings following his release from prison.
On Oct. 9, 2015, a vehicle containing approximately 246 kilograms of marijuana was traveling on expressway 83. Rodriguez-Silva, Saldivar-Abrego, Gonzalez and Gonzalez Jr. soon approached in a second vehicle and fired gunshots at the load vehicle, forcing it to stop. They then transferred the marijuana into their vehicle. Following a pursuit, officers apprehended Saldivar-Abrego. Gonzalez and Gonzalez Jr. were arrested shortly thereafter. In March of 2017, Rodriguez-Silva was arrested. A subsequent investigation revealed Vela was the owner of the vehicle and that it was purchased knowing it was to be used to transport narcotics.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI and police departments in San Juan and Alamo. Assistant U.S. Attorney Rolando Cantu and Kristen Rees prosecuted the case.
Alleged Mafia Soldier Charged with Tax EvasionRead the Press Release
A four-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Salvatore Demeo, an alleged member of the Genovese organized crime family of La Cosa Nostra, with tax evasion and failure to file tax returns.
The charges were announced by William J. Muller, Executive Assistant United States Attorney for the Eastern District of New York, and James Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI).
As detailed in the indictment, in two separate real estate transactions in 2013 and 2014, Demeo sold his shares in valuable real estate in Downtown Brooklyn, earning him more than $2 million in capital gains. Rather than report this income, as he was required to do, Demeo took a series of measures designed to conceal the proceeds from the IRS. For example, he instructed his attorney to issue his shares to him in eight separate bank checks: three checks for the first transaction and five checks for the second transaction. In addition, even though Demeo had multiple bank accounts, he chose to not deposit the proceeds into them, and instead enlisted the assistance of others to help conceal the funds. First, he endorsed two checks, amounting to $1 million, to a plumbing business, despite the fact that he has no apparent ownership interest in it, or other business relationship with it. In addition, he endorsed another of the checks, in the amount of approximately $355,944, to an individual who operated an unlicensed check-cashing business, who then withdrew from the accounts approximately five cashier’s checks in smaller amounts, which were then cashed at licensed check-cashing establishments in exchange for a fee. As a result of Demeo’s fraud, Demeo avoided payment of federal taxes in excess of $365,000.
“Today’s arrest reflects our continued commitment to prosecuting alleged members of the mafia with every tool available to us,” stated Executive Assistant United States Attorney Muller. “Tax crimes like those charged in the indictment harm our government and every American citizen. Organized crime members are on notice that this Office and its law enforcement partners will hold them accountable for such economic crimes no less than for their traditional schemes and offenses.”
“Regardless of your occupation, we Americans all must file and pay our income taxes,” stated IRS-CI Special Agent-in-Charge Robnett. “The allegations of tax evasion spelled out in this indictment are what IRS Criminal Investigation Special Agents have been investigating for almost 100 years.”
The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Elizabeth Geddes is in charge of the prosecution.
The Defendant:
SALVATORE DEMEO
Age: 77
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-545 (KAM)
Albuquerque Felon Charged with Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Albert Pulido, 29, of Albuquerque, N.M., made his initial appearance today in federal court on a criminal complaint charging him with violating the federal firearms laws by unlawfully possessing a firearm and ammunition. Pulido remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for tomorrow.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested Pulido this morning on a criminal complaint charging him with unlawfully possessing a firearm and ammunition on Sept. 7, 2017, in Bernalillo County, N.M. The criminal complaint alleges that on that date, officers of the Albuquerque Police Department (APD) arrested Pulido on state charges after observing Pulido exit a vacant, yellow-tagged residence, that no was permitted to enter. During a search incident to arrest, the officers allegedly found that Pulido was in possession of a firearm and ammunition.
According to the criminal complaint, on Sept. 7, 2017, Pulido was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including convictions for receiving and transferring a stolen vehicle, residential burglary, possession of a controlled substance, embezzlement, and child abuse.
The related state charges against Pulido will be dismissed in favor of federal prosecution.
If convicted of the crime charged in the criminal complaint, Pulido faces a maximum penalty of ten years in federal prison. Charges in criminal complaints are mere accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of ATF and APD, with assistance from the 2nd Judicial District Attorney’s Office. Special Assistant U.S. Attorney Timothy Trembley is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Akron man sentenced to life in prison for shooting woman in the Cuyahoga Valley National ParkRead the Press Release
An Akron man was sentenced to life in prison for shooting a woman in the Cuyahoga Valley National Park last year, law enforcement officials said.
DeZay M. Ely, 28, was previously pleaded guilty to attempted murder, discharging a firearm during a crime of violence and being a felon in possession of ammunition.
Ely attempted to kill a woman on July 3, 2016, by shooting her in the head, according to court documents.
U.S. District Judge Benita Pearson sentenced Ely to 20 years in prison for attempted murder, to be followed by a consecutive sentence of life in prison for discharging a firearm during a crime of violence.
“This defendant took a firearm into a national park and tried to murder a young woman,” U.S. Attorney Justin E. Herdman said. “He left her with lifelong, serious injuries. Our community is a safer place with him behind bars.”
Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office, said: “Law enforcement is pleased that Dezay Ely will be spending the rest of his life in prison for the horrific crime he committed against an innocent victim. The collaboration between the FBI, the Cuyahoga Valley National Park Service, BCI and the public was invaluable to identifying and holding Ely accountable for this senseless crime.”
The case is being prosecuted by Assistant U.S. Attorneys Kelly L. Galvin and Linda Barr following an investigation by the FBI, the Cuyahoga Valley National Park Police and the Ohio Bureau of Criminal Investigation.
Airman Sentenced to 60 Months in Prison for Possessing Child PornographyRead the Press Release
WILMINGTON, Del. – Acting U.S. Attorney David C. Weiss of the District of Delaware announced today that Robert Z. Hollingsworth, 27, of Bryon, Illinois, was sentenced to 60 months in prison followed by 10 years of supervised release by U.S. District Judge Richard G. Andrews of the District of Delaware.
Hollingsworth, an Airman First Class stationed at the Dover Air Force Base, had collected more than 10,000 images and 3,000 videos of children engaging in sexually explicit conduct, including but not limited to sexual intercourse. More than 600 of those images depicted prepubescent children or children younger than 12 years of age. Of the one hundred sixty-two identified victims, sixteen came forward seeking restitution. The U.S. District Court awarded $48,000 in total restitution, for the known victims.
Acting U.S. Attorney David C. Weiss stated, "Our office will do whatever is necessary to protect the most vulnerable among us – our children – from the abhorrent shadow industry that produces, distributes, and collects child pornography and from those who lurk in its base marketplace."
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Graham Robinson of the District of Delaware prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 www.justice.gov/psc.
Wednesday 11 October 2017
Young San Benito Man Sent to Federal Prison for Producing Child PornographyRead the Press Release
BROWNSVILLE, Texas – A 27-year-old resident of San Benito has been ordered to federal prison following his conviction of sexual exploitation of a minor, otherwise known as production of child pornography, announced Acting U.S. Attorney Abe Martinez. Jonathan Rios aka Jonathan Rios Ventura was an assistant manager at a local restaurant prior to his arrest on July 26, 2016. He pleaded guilty Nov. 16, 2016.
Today, U.S. District Judge Andrew Hanen handed Rios a sentence of 235 months in federal prison. He was further ordered to serve 20 years on supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
At the time of his plea, the court heard that Rios persuaded or coerced a minor to engage in sexually explicit conduct. Specifically, he had sexual intercourse with a minor child under the age of six and filmed it with his cell phone.
Rios has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations, the Rio Grande Valley Child Exploitation Task Force and the San Benito Police Department conducted the investigation.
This case, prosecuted by Assistant U.S. Attorneys Jason Corley and Ana Cano, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Wilmington Man Sentenced to 132 Months for Heroin TraffickingRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr., announced that today in federal court, Chief United States District Judge James C. Dever III sentenced TACARLOS ANTIGO MILLER, 39, of Wilmington, NC to 132 months imprisonment, followed by 3 years of supervised release.
MILLER was found guilty after trial by jury in June 2016, of conspiracy to distribute and possess with the intent to distribute heroin and two (2) counts of distribution of heroin.
During the investigation, law enforcement used confidential informants (CIs) to make controlled purchases from MILLER. Based on these controlled purchases and information regarding heroin trafficking by MILLER from 2013, until his arrest in May 2015, the defendant is accountable for at least 100 grams of heroin. He also possessed a firearm in connection with his drug trafficking activities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wilmington Police Department, and the New Hanover County Sheriff’s Office. Assistant United States Attorney Lawrence J. Cameron represented the government.
Williamson County Man Sentenced on Methamphetamine OffensesRead the Press Release
On October 11, 2017, Ricky E. Shull, 51, Marion, was sentenced to federal prison for methamphetamine offenses, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Shull, who had previously pled guilty to a two-count indictment charging conspiracy to distribute methamphetamine and distribution of methamphetamine, was sentenced to 168 months of imprisonment, to be followed by 3 years of supervised release, and was fined $400.00. The indictment alleged that the offenses occurred between September 2016 and January 19, 2017, in Williamson County. Evidence at the plea and sentencing hearings established that Shull was involved with other persons in the distribution of ice in southern Illinois. Ice is methamphetamine which has a purity level of at least 80%. On January 19, 2017, Shull sold ice to a confidential source working for law enforcement. At sentencing, the district court found that Shull was responsible for the distribution of 436.45 grams of ice. Shull received an enhanced sentence based on his classification as a career offender.
The investigation was conducted by the Southern Illinois Enforcement Group and Drug Enforcement Administration. The Williamson County States Attorney’s Office also assisted in the investigation.
Washington Man Sentenced to Prison in Drug Trafficking CaseRead the Press Release
HELENA— A Kennewick, Washington man was sentenced today for conspiring to distribute methamphetamine. United States District Judge Sam E. Haddon sentenced Hector Ricardo Gonzalez, 30, to 260 months in prison, 5 years of supervised release, and a $100 surcharge. Gonzalez was part of a scheme by multiple conspirators to distribute very large amounts of methamphetamine through Deer Lodge, Montana each month between January 2016 and January 2017. Members of the conspiracy, including Gonzalez, possessed firearms in connection with the drug trafficking crimes they committed in Montana.
Other members of the conspiracy included Jeff Allen Trask, Chase Ryan Storlie, and Christian Jesus Ruiz. The court previously sentenced Trask to 54 months in prison and five years of supervised release for his role in the conspiracy. The two remaining members of the conspiracy, Storlie and Ruiz, face sentencing on January 3, 2018.
Gonzalez and Ruiz’s involvement in the conspiracy came to a sudden end on January 24, 2017, when the authorities arrested them in Mineral County, Montana, in possession of 20 pounds of methamphetamine. The methamphetamine was destined for Deer Lodge.
The charges against Gonzalez and his codefendants are the result of an investigation by the Montana Division of Criminal Investigations, the Missouri River Drug Task Force, the Helena Police Department, the Lewis and Clark County Sheriff’s Department, the Federal Bureau of Investigation, the Mineral County Sheriff’s Department, the Powell County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Montana Highway Patrol, and the Drug Enforcement Administration. Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Tom Bartleson prosecuted the case.
United States Attorney Kurt Alme explained, “This is an important step in the ongoing effort to stop the organized, unlawful distribution of controlled substances coming to Montana from other states and countries. The case is particularly important because the defendants possessed firearms in connection with drug trafficking, a prescription for violent crime of the sort the United States Department of Justice is committed to ridding from our communities. The Court’s sentence today sends the message that those who bring illegal drugs to Montana—particularly those who do so while armed—will be caught, prosecuted, and imprisoned.” Alme also praised the collaborative work of the law enforcement agencies and prosecutors in the case.
The U.S. Attorney’s Office is partnering with federal, state, local and tribal law enforcement to identify those responsible for significant violent crime in Montana. A centerpiece of this effort is Project Safe Neighborhoods, a recently reinvigorated Department of Justice program that has proven to be successful in reducing violent crime. Today’s sentencing is part of the Project Safe Neighborhoods program.
United States Attorney Announces Two Sentencings on Project Safe Neighborhood CasesRead the Press Release
R. Trent Shores, United States Attorney for the Northern District of Oklahoma, announced two sentencings on Project Safe Neighborhoods (PSN) cases. PSN is the Justice Department’s national initiative to reduce violent crime, particularly gun violence. It is a results-oriented, collaborative approach to public safety that utilizes law enforcement, community partnerships, and strategic enforcement to focus on the most violent criminals in the most violent areas within each district. “This office is committed to working with our law enforcement and community partners to prevent and deter violent offenders from possessing firearms in the Northern District of Oklahoma,” said United States Attorney Shores.
JERRY LEE NICHOLS
On October 10, 2017, Chief United States District Court Judge Gregory K. Frizzell sentenced Jerry Lee Nichols, 47, of Pryor, Oklahoma, to 52 months of imprisonment for the crime of Felon in Possession of a Firearm and Ammunition. On April 15, 2017, Mayes County Sheriff’s Deputies were searching for Nichols after his girlfriend reported him for domestic violence. Deputies tracked Nichols to a home in Locust Grove, Oklahoma, and found Nichols hiding underneath a pile of clothes inside a playpen. Deputies found a loaded derringer underneath Nichols and a shotgun hidden underneath a couch in the room within which Nichols was hiding. In addition to the term of imprisonment, Chief Judge Frizzell sentenced Nichols to 3 years of supervised release upon completion of imprisonment. Assistant United States Attorney Neal C. Hong prosecuted the case, which the Mayes County Sheriff’s Office investigated.
JESUS DELANO MENDOZA
On October 10, 2017, Chief United States District Court Judge Gregory K. Frizzell also sentenced Jesus Delano Mendoza, 34, of Phoenix, Arizona, to 114 months of imprisonment for Felon in Possession of a Firearm and Ammunition and Brandishing a Firearm During and in Relation to a Crime of Violence. On April 22, 2017, Mendoza robbed a convenience store in North Tulsa. Mendoza entered the store with a mask, brandished a firearm at the clerk, and took money and other items from the store. Five days later, the United States Marshal Service’s Violent Crimes Task Force tracked Mendoza to a home in Tulsa and apprehended him. During the arrest, Deputy Marshals found a loaded .22 caliber revolver in the area Mendoza was found. In addition to the term of imprisonment, Chief Judge Frizzell sentenced Mendoza to 5 years of supervised release upon completion of imprisonment. Assistant United States Attorney Neal C. Hong prosecuted the case. The Tulsa Police Department, the Tulsa County Sheriff’s Office, the United States Marshal Service’s Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives jointly investigated the case.
U.S. Border Patrol Intercepts Fifteen-Person Human Smuggling Attempt in Derby, Vermont; Honduras Man Charged with Transporting Illegal Aliens; Two Mexican Men Charged with Illegal Re-Entry After DeportationRead the Press Release
In a joint press release issued with the U.S. Border Patrol, the United States Attorney Office for the District of Vermont stated that it has charged three persons in connection with a fifteen-person human smuggling attempt in Derby, Vermont. Hector Ramon Perez-Alvarado, 25, a Honduras citizen, has been charged with transporting illegal aliens inside the United States. As part of the investigation, the U.S. Border Patrol took into custody a total of sixteen illegal aliens, including Hector Ramon Perez-Alvarado, the alleged driver, who is Honduran. Eleven of the other illegal aliens are Guatemalan citizens and four are Mexican citizens.
According to Court records, in addition to the smuggling charge against Hector Ramon Perez-Alvarado, two persons were charged with re-entering the United States after previously being removed. Specifically, the United States alleges that Noe Perez-Ramirez, 33, of Mexico, and Alberto Alvarado-Castro, 29, of Mexico both were removed from the United States on multiple prior occasions. In support of its motion for detention, the Government further alleged that Alvarado-Castro has multiple prior felony burglary convictions in the United States.
According to the Border Patrol Agent’s affidavit accompanying the Criminal Complaints, on the evening of October 7, 2017, the U.S. Border Patrol identified a Nissan van, with a license plate not affiliated with any state, making multiple trips from Beebe Road near the Canadian Border to the Four Seasons Motel in Derby, Vermont. Additional Border Patrol agents stationed in the vicinity spotted several male subjects on foot heading south from the border in the same area indicating a possible smuggling attempt.
Just after midnight on October 8, 2017, the Border Patrol pulled the van over in the motel parking lot and questioned the driver. According to the Border Patrol agent’s affidavit, the van was driven by defendant Hector Ramon Perez-Alvarado, who had no legal status in the United States. The van also contained six passengers, none of whom had legal status in the United States.
According to the Border Patrol agent’s affidavit, the van’s driver, defendant Hector Ramon Perez-Alvarado, gave the Border Patrol agents the key to his motel room at the Four Seasons and requested that the agents recover his personal items. When Border Patrol agents entered the motel room, they found nine additional persons, none of whom had legal status in the United States.
The complaints filed in this case are accusations only and the defendants are presumed innocent until and unless proven guilty. If Hector Ramon Perez-Alvarado is convicted of transporting illegal aliens, he faces a maximum sentence of five years, potentially for each alien transported, and a $250,000 fine, potentially for each person smuggled. If Noe Perez-Ramirez and Alberto Alvarado-Castro are convicted of re-entry after removal from the United States, they each face a maximum sentence of two years and a $250,000 fine. If convicted the actual sentences of the defendants will be advised by the Federal Sentencing Guidelines.
Hector Ramon Perez-Alvarado, Noe Perez-Ramirez and Alberto Alvarado-Castro all appeared in United States District Court in Burlington, Vermont on October 10, 2017, for an initial appearance. On the Government’s motion for pre-trial detention, Magistrate-Judge John M. Conroy ordered that all three be detained pending trial and remanded them into the custody of the U.S. Marshals Service.
This matter is being investigated by the United States Border Patrol and Homeland Security Investigations. “This case is an excellent example of the dedication and hard work put forth by Border Patrol agents to keep our country and communities safe,” said U.S. Border Patrol Swanton Sector Chief Patrol Agent John Pfeifer. “Our agents did an outstanding job thwarting this smuggling attempt.”
The Assistant U.S. Attorney prosecuting this matter is Joe Perella. Elizabeth Quinn, Esq., of the Federal Public Defender’s Office represents Perez-Alvarado. David Watts, Esq., of Burlington represents Alvarado-Castro. Robert Sussman, Esq., of Burlington represents Perez-Ramirez.
U.S. Attorney Reaches Settlement for False Claims Act Violations on Project Management Oversight ContractRead the Press Release
PHILADELPHIA – Louis D. Lappen, Acting United States Attorney for the Eastern District of Pennsylvania, announced today that the United States had reached a civil settlement with URS Corporation (“URS”) resolving civil claims concerning URS’ improperly billing under a Joint Venture Project Management Oversight Agreement (“PMO”) with Amtrak. To resolve the government’s civil claims against it, URS has agreed to pay the United States $900,000.00 pursuant to the settlement agreement.
URS and its joint venture partner performed project management functions on several Amtrak construction projects throughout the eastern United States. The PMO contract required that URS bill actual labor and overhead rates for the employees working the various projects. The United States contends that it has certain civil claims against URS arising from URS’ billing under the PMO contract during the period January 1, 2011 through December 31, 2014. This conduct included: a) continuing to bill overhead at a maximum rate listed in the Joint Venture PMO Contract without adjusting the overhead rate to actual costs incurred; and b) billing employees at home overhead rates although they were considered as field employees’ in URS’ general ledger.
The case arose when an audit of URS’ billing showed discrepancies. Amtrak and the Department of Transportation’s Offices of Inspector General investigated this case. For the United States Attorney’s Office for the Eastern District of Pennsylvania, Assistant United States Attorney Colin Cherico and Auditor Dawn Wiggins handled the investigation and settlement.
The claims resolved by this settlement agreement are allegations only and there has been no determination of liability.
Three Plead Guilty to Distributing Heroin and FentanylRead the Press Release
BOSTON – Two Dominican nationals and a Taunton woman pleaded guilty yesterday in federal court in Boston to their roles in a heroin and fentanyl trafficking organization that operated in Taunton and Boston.
Wilmi Hernandez-Diaz, 22, a Dominican national residing in Boston; Jancer Soto, 26, of Boston; and Stephanie O’Sullivan, 31, of Taunton, each pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl. In February 2017, Hernandez-Diaz, Soto, and O’Sullivan were arrested and charged along with 20 other co-defendants. U.S. District Court Judge Indira Talwani scheduled the sentencings for Soto and Hernandez-Diaz for Jan. 3, 2018, and Jan 11, 2018, respectively. U.S. District Court Judge Leo T Sorokin scheduled sentencing for O’Sullivan for Jan. 11, 2018.
From mid-2016 through February 2017, federal law enforcement investigated two drug trafficking organizations operating in Taunton and Boston led by Jose Antonio Lugo-Guerrero, 32, a Dominican national operating in Boston, and Fernando Hernandez, 42, a Dominican national residing in Providence, R.I. Hernandez allegedly ran a heroin and fentanyl trafficking organization in Taunton. The organization sold heroin and fentanyl to customers, including O’Sullivan, who re-distributed a portion of the drugs she obtained. It is alleged that Hernandez obtained drugs from a network of suppliers that included Lugo-Guerrero.
Lugo-Guerrero allegedly operated a drug trafficking organization in Fall River and Boston and was assisted by Hernandez-Diaz, Soto, and approximately six others. It is further alleged that Lugo-Guerrero and his associates obtained a significant quantity of illegal drugs by robbing other drug traffickers.
Hernandez and Lugo-Guerrero each pleaded not guilty and are awaiting trial.
The conspiracy charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Fall River Police Chief Daniel S. Racine; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Theodore B. Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The Woodlands Woman Convicted of Defrauding EmployerRead the Press Release
HOUSTON – A 52-year-old resident of The Woodlands has pleaded guilty to wire fraud, announced Acting U.S. Attorney Abe Martinez.
Kavita Nehendra Duvvuru was a former employee of Vinmar International Ltd. Today, she admitted that while employed there, she made unauthorized charges and cash advances for personal expenses on credit cards which were only to be used for Vinmar business expenses. Duvvuru further admitted she altered the credit card statement and provided false information to conceal her fraud from the company.
Duvvuru began employment with the Houston petrochemical distribution and marketing company Vinmar in 2004. Vinmar paid the balances on several credit cards issued in the name of Vinmar’s president and another officer of Vinmar on a monthly basis. These credit cards included an American Express Plum card and two MasterCards and were used to charge Vinmar’s business expenses. Duvvuru had credit cards issued in her name on those accounts as well, but was only authorized to charge Vinmar business expenses.
Beginning in or about 2010, Duvvuru began making unauthorized charges for personal expenses on the American Express Plum credit card. Eventually, these unauthorized personal charges reached between $10,000 and $20,000 per month. She also obtained unauthorized cash advances from the MasterCard credit cards, which she used for personal expenses including payment of her property taxes and college tuition payments for her children.
In late 2016, Duvvuru made $22,359.29 in unauthorized personal charges on the American Express Plum card. She later accessed the online statement, downloaded a copy and used a software program to alter it to conceal her unauthorized personal charges. She then added a falsified charge for the same amount and attributed it to a Vinmar vendor. She also created false entries to account for the charge it to make it appear to be a legitimate Vinmar business expense. She then submitted the falsified entries to Vinmar’s accounting department.
As a result of her scheme, Vinmar suffered a loss of at least $2.5 million.
U.S. District Judge Sim Lake accepted the guilty plea today and has set sentencing for Jan. 19, 2018. At that time, Duvvuru faces up to 20 years in federal prison and a possible $250,000 maximum fine. She was permitted to remain on bond pending that hearing. .
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Tennessee Woman Convicted of Stolen ID Refund FraudRead the Press Release
An Antioch, Tennessee, woman was convicted today by a federal jury sitting in Nashville, Tennessee, of eight counts each of wire fraud and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Donald Q. Cochran for the Middle District of Tennessee.
According to the indictment and evidence presented at trial, in January and February 2012, Monique Ellis, used stolen IDs, including those of prisoners held by the Alabama Department of Corrections, to file tax returns with the Internal Revenue Service (IRS) seeking fraudulent refunds. Ellis directed the fraudulently obtained refunds to bank accounts that she controlled, causing a tax loss of $121,851.10.
Sentencing is scheduled for Jan. 9, 2018 before U.S. District Court Judge Gershwin A. Drain. Ellis faces a statutory maximum sentence of 20 years in prison for each count of wire fraud and a mandatory two year sentence for each count of aggravated identity theft. She also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Cochran thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Henry Leventis, and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case.
St. Clair Shores Restaurant and Shopping Center Works with U.S. Attorney's Office to Improve Access for People with DisabilitiesRead the Press Release
The Red Olive Restaurant in St. Clair Shores and ANK Enterprises, Inc., the owner of the Harper/Little Mack Shopping Center, have taken steps to improve physical accessibility for individuals with disabilities, Acting U.S. Attorney Daniel L. Lemisch announced today.
This resolution concludes an investigation under the Americans with Disabilities Act, alleging that the restaurant was not accessible to individuals with disabilities. The complaint was filed by a restaurant patron who uses a wheelchair.
After discussions with the U.S. Attorney's Office, the Red Olive Restaurant made changes to the restaurant’s interior, improving accessibility for people with disabilities. The Red Olive Restaurant is located within the Harper/Little Mack Shopping Center in St. Clair Shores. The U.S. Attorney's Office also worked with the owner of the shopping center, ANK Enterprises, Inc., who renovated accessible parking spaces and a sidewalk curb cut as a part of this investigation.
“The Americans with Disabilities Act ensures that people who have disabilities have the same access to public accommodations as all other Americans,” said Lemisch. “This case is a reminder that businesses must comply with federal requirements that enable individuals with disabilities to fully participate in their communities.”
This resolution was reached under Title III of the ADA, which prohibits discrimination against individuals with disabilities by businesses that serve the public.
More information about the ADA is available at the Justice Department's toll free ADA Information line at (800) 514 0301 or (800) 514 0383 (TTY) and on the ADA website at www.ada.gov. ADA complaints may be emailed to [email protected] or by contacting the U.S. Attorney's Office’s civil rights hotline at (313) 226-9151.
South Florida Attorney Charged with Securities Fraud and Money Laundering in Relation to Fraudulent Sale of Shell Companies and Secretly Controlled StockRead the Press Release
A South Florida attorney was charged with securities fraud, wire fraud, and money laundering offenses in connection with a scheme to fraudulently register shell companies with the U.S. Securities and Exchange Commission (SEC), issue a class of unrestricted or “free-trading” shares in the companies that they secretly controlled, and sell the shares to the investing public at a profit. To date, nine defendants have been charged and convicted in connection with the ongoing prosecution of the Shell Factory Fraud investigation.
Randy A. Hummel, Executive Assistant United States Attorney, U.S. Attorney’s Office for the Southern District of Florida, and Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
James M. Schneider, 76, of Hillsboro Beach, Florida, was charged by indictment with one count of conspiracy to commit securities and wire fraud, in violation of Title 18, United States Code, Section 1349; five counts of securities fraud, in violation of Title 18, United States Code, Section 1348; six counts of wire fraud, in violation of Title 18, United States Code, Section 1343; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h), and twenty counts of money laundering, in violation of Title 18, United States Code, Section 1957. Schneider faces a maximum statutory sentence of twenty-five years for the securities fraud conspiracy count, twenty-five years each for the securities fraud counts, and ten years each for the conspiracy to commit money laundering and money laundering counts, as well as a fine up to $250,000 or double the proceeds as to each. The case is No. 17-20712-CR-FAM and is assigned to U.S. District Judge Federico A. Moreno in Miami.
In related cases, seven defendants have been charged to date: Daniel McKelvey, 49, of Foster City, California, and Jeffrey L. Lamson, 51, of El Dorado Hills, California, were charged in Case No. 16-20546-CR-RNS; Steven Sanders, 73, of Lake Worth, Florida, and Alvin S. Mirman, 78, of Sarasota, Florida, were charged in Case No. 16-20572-CR-CMA; Sheldon Rose, 77, of Sarasota, and Ian Kass, 45, of Ft. Lauderdale, in Case No. 16-20707-CR-JEM, and David Lubin, 52, of West Hempstead, New York, in Case No. 17-20508-CR-MGC. All seven of these defendants were convicted. Six of the seven have already been sentenced, and sentencing for Lubin is scheduled for November 2, 2017, before U.S. District Judge Marcia G. Cooke in Miami. In an additional related case, Myron Gushlak and Yelena Furman were also indicted on October 10, 2017, in Case No. 17-20713-CR-CMA.
According to the indictment, from approximately March 2008 through approximately May 2015, Schneider conspired with Sanders, McKelvey, Mirman, Lamson, Lubin and others in a scheme to fraudulently create shell companies and file documents with the SEC indicating that the companies were controlled by a nominee chief executive officer (CEO). The straw CEO would be listed as the owner of the control block of shares but in reality the companies were controlled by the principals. The control block of shares listed in the name of the officer were deemed restricted and could not be sold to the public. The principals would also list in SEC filings the a description of various shareholders to make it appear that these shares were owned by persons other than the conspirators. These shares would later become unrestricted, or “free trading” and secretly sold to shell buyers. Using false and fraudulent documentation describing the companies’ business purpose and share ownership, the principals would then obtain approval for the shares of the companies to be sold publicly over the counter. Thereafter, the principals would sell the companies to shell buyers who would secretly obtain both the control shares and the purported “free trading” shares without disclosure of this common control and simultaneous sale to the SEC or the investing public. This would allow the shell buyers to engage in stock manipulation or pump and dump schemes using the “free trading” shares.
Schneider, according to the indictment, was an attorney licensed to practice in Florida who authored false and fraudulent legal opinion letters indicating that shares of the companies were owned by persons who were not “affiliates,” when in truth and in fact the shares were owned and controlled by the conspirators. Schneider also created false billing records to make it appear like he was performing work for, and taking direction from, the straw CEOs. In reality, he took his direction from Sanders and McKelvey, who would keep their names off of documents. Schneider also performed so-called escrow services for the sale of the shell entities, including the illegal sale of the purported free trading shares, and wired more than $5.6 million in proceeds to bank accounts controlled by the conspirators. Schneider did this, according to the indictment, even though he had no authorization from the named shareholders or verification that the persons whose names were listed on the escrow agreements authorized or approved these transfers.
The SEC today announced a parallel civil enforcement action against Schneider.
Mr. Hummel commended the investigative efforts of the FBI’s Miami Field Office. Mr. Hummel also thanked the SEC’s Washington Home Office and Miami Regional Office for their assistance with the ongoing Shell Factory Fraud investigation. The SEC previously filed civil enforcement actions against McKelvey, Sanders, Mirman, Rose, Kass, Lamson, and Lubin. This matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Carolina Man Charged with Forcing Victim with Intellectual Disability to Work at RestaurantRead the Press Release
An indictment was unsealed today in the U.S. District Court for the District of South Carolina charging Bobby Paul Edwards, 52, of Conway, S.C., with one count of forced labor, announced Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division and U.S. Attorney Beth Drake of the District of South Carolina.
According to the indictment, over a five-year period, between September 2009 and October 2014, Edwards used force, threats of force, physical restraint, and coercion, among other means, to compel the victim, who has an intellectual disability, to work as the buffet cook of J&J Cafeteria in Conway, South Carolina. Edwards managed the restaurant at the time of the alleged incidents.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty. If convicted of forced labor, the defendant faces a maximum sentence of 20 years in prison, a $250,000 fine, and mandatory restitution.
The case is being investigated by FBI’s Myrtle Beach Resident Agency. It is being prosecuted by Special Litigation Counsel Jared Fishman and Trial Attorney Lindsey Roberson of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Alyssa Richardson of the District of South Carolina.
South Carolina Man Charged with Forcing Victim with Intellectual Disability to Work at RestaurantRead the Press Release
WASHINGTON – An indictment was unsealed today in the U.S. District Court for the District of South Carolina charging Bobby Paul Edwards, 52, of Conway, S.C., with one count of forced labor, announced Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division and U.S. Attorney Beth Drake of the District of South Carolina.
According to the indictment, over a five-year period, between September 2009 and October 2014, Edwards used force, threats of force, physical restraint, and coercion, among other means, to compel the victim, who has an intellectual disability, to work as the buffet cook of J&J Cafeteria in Conway, South Carolina. Edwards managed the restaurant at the time alleged incidents.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty. If convicted of forced labor, the defendant faces a maximum sentence of 20 years in prison, a $250,000 fine, and mandatory restitution.
The case is being investigated by FBI’s Myrtle Beach Resident Agency. It is being prosecuted by Special Litigation Counsel Jared Fishman and Trial Attorney Lindsey Roberson of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Alyssa Richardson of the District of South Carolina.
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Six Sentenced in Federal Upstate Methamphetamine ConspiracyRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that the following Cherokee County residents, all previously convicted on federal methamphetamine conspiracy charges, were sentenced in federal court to the following terms of imprisonment:
- Zactrick Michael Jefferies, age 29, sentenced to 236 months imprisonment
- James Lasamuel Humphries, age 24, sentenced to 30 months imprisonment
- Brianna Allison Jones, age 22, sentenced to 48 months imprisonment
- Katherine Elizabeth Williams, age 28, sentenced to 70 months imprisonment
- Crystal Dawn Osborne, age 38, sentenced to 27 months imprisonment
- Andrell Lopez, age 25, sentenced to 36 months imprisonment
Senior United States District Judge Henry M. Herlong, Jr., of Greenville imposed the sentences on October 10, 2017. Also charged in the conspiracy and awaiting sentencing are co-defendants Everette De’Angelo Dawkins and Richard Stewart Hawkins.
At an earlier guilty plea hearing, Assistant U. S. Attorney Jeanne Howard established that after his release from federal prison in February 2015, Everette De’Angelo Dawkins began conspiring with other codefendants to distribute up to 45 kilograms of methamphetamine in the upstate. A number of seizures of methamphetamine occurred during the time of the conspiracy including one in September, 2015, during which the Cherokee County Sheriff’s Office executed a search warrant and seized approximately 662 grams of methamphetamine from Zactrick Jefferies. Following a car stop in January 2016, the Cherokee County Sheriff’s Office seized 520 grams of methamphetamine from James Humphries. In December 2016, Zactrick Jefferies was arrested with another kilogram of methamphetamine. Andrell Lopez was arrested by the South Carolina Highway Patrol after a car stop where 583 grams of methamphetamine and 9 pounds of marijuana were seized.
The case was investigated by agents of the Department of Homeland Security, the Cherokee County Sheriff’s Office, the United States Marshal’s Service Task Force, the South Carolina Highway Patrol, SLED and the Spartanburg County Sheriff’s Office. Assistant United States Attorney Jeanne Howard of the Greenville office handled the case.
#####Seng Xiong Sentenced to 87 Months in Prison for Defrauding Members of the Hmong CommunityRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of SENG XIONG, 49, to 87 months in prison for operating an affinity scheme targeting members of the Hmong community. XIONG, who was found guilty on January 26, 2017, following an eight-day jury trial, was sentenced today before Judge Susan Richard Nelson in U.S. District Court in Saint Paul, Minn.
As proven at trial, from at least mid-2014 through approximately March 2016, XIONG conducted a fraud scheme through his organization “Hmong Tebchaws,” which translates to “Hmong Country,” in which members of the Hmong community were directed to deposit $3,000 to $5,000 into a bank account held in the name of SENG XIONG. In exchange for the payments, victims were promised 10 acres of land, a house, and many other benefits in a future country that would be established as a Hmong homeland somewhere in Southeast Asia.
As proven at trial, XIONG claimed to be working closely with the United States government and the United Nations to establish the new Hmong country somewhere in Southeast Asia. Through a series of YouTube videos and nationwide conference calls, XIONG promoted his scheme in the Hmong language, claiming that he was working with high-ranking officials who had “approved” or “authorized” his proposal and had arranged for land to be set aside for XIONG and his followers.
As proven at trial, XIONG offered several investment options that purported to represent varying levels of return that “founders” would be able to receive on their investment in the new country. Investments between $3,000 and $5,000 would guarantee the investor and his or her future generations, land, a house, free healthcare, free education, and government financial assistance for people over 65 years of age, as well as a return on that investment equal to a percentage of the income generated by the new Hmong country. Those who could not afford the $3,000 - $5,000 “founders” option could pay $20 per month, or $240 per year. This lesser investment would secure a spot in the new Hmong country along with some of the benefits.
This case was the result of an investigation conducted by the Saint Paul Police Department, United States Secret Service, Federal Bureau of Investigation, Minnesota Financial Crimes Task Force, and Appleton Police Department.
Special assistance was provided by the United States Attorney’s Offices for the Eastern District of California.
Assistant United States Attorneys Amber M. Brennan and Surya Saxena prosecuted this case.
Defendant Information:
SENG XIONG, 49
Maplewood, Minn.
Convicted:
- Wire fraud, 1 count
- Mail fraud, 1 count
Sentenced:- 87 months in prison
- Three years supervised release
- $1,226,466.00 in restitution to victims
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Selby Man Charged with Violating the Migratory Bird Treaty ActRead the Press Release
United States Attorney Randolph J. Seiler announced that a Selby, South Dakota, man, has been indicted by a federal grand jury for a violation of the Migratory Bird Treaty Act.
Steven Marin, age 46, d/b/a Mobridge Pawn, was indicted on September 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction for this misdemeanor offense is up to six months in custody and/or a $15,000 fine, and $10 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between June 11, 2014, and June 18, 2014, Marin, d/b/a Mobridge Pawn, possessed, offered for sale, sold, offer to barter, bartered, delivered for transportation, transported, and caused to be transported, a migratory bird and parts thereof of any such bird.
The charge is merely an accusation and Marin is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.
Marin was released on bond pending trial. A trial date has not been set.
Scranton Man Charged with Participating in A $3.5 Million Stolen Identity Refund Fraud ConspiracyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian Reyes, age 29, of Scranton, Pennsylvania, was charged in a criminal information with one count of conspiring to defraud the government with respect to tax claims.
According to United States Attorney Bruce D. Brandler, Reyes owned and operated Reyes Services LLC, a Scranton, Pennsylvania-based check cashing business. From January 2011 to June 2015, Reyes and his co-conspirators used stolen identities to prepare and file false federal income tax returns, unbeknownst to their victims. Reyes’s co-conspirators obtained the income tax refund checks from those fraudulent returns and provided them to Reyes, who cashed the fraudulently obtained checks at his business. Reyes kept a portion of each check cashed as compensation. The scheme netted at least $3,547,642 in false claims paid by the U.S. Treasury.
The government seized $48,933 during the course of the investigation. The government also filed a plea agreement with Reyes to the charges. Reyes was charged on August 9, 2016, and pleaded guilty on October 18, 2016, but the matter remained under seal until today. Reyes is scheduled to be sentenced on November 2, 2017.
The case was investigated by the Internal Revenue Service Criminal Investigations. Assistant United States Attorneys William Houser and Phillip J. Caraballo are prosecuting the case.
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 is five years of 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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San Jose Resident Sentenced to Three Years in Prison for Threatening IRS EmployeesRead the Press Release
SAN JOSE – Hung Ha was sentenced today to 36 months’ imprisonment for threatening IRS employees at the San Jose Taxpayer Assistance Center, announced United States Attorney Brian J. Stretch. The sentence was handed down by the Honorable Lucy Koh, U.S. District Judge, following a jury trial resulting in Ha’s conviction of the crime.
Ha, 41, of San Jose, was indicted by a federal grand jury on April 22, 2015. He was charged with threatening a federal official. Ha was convicted on July 17, 2017, by a jury after a four day trial. During the trial, evidence showed that Ha threatened to bomb the San Jose IRS Taxpayer Assistance Center. Specifically, Ha demanded a tax refund he believed he was owed and said that if the IRS refused to give him the refund, he would bomb the office. Ha was charged with two counts of threatening federal officials, in violation of 18 U.S.C. § 115(a)(1)(B). The jury convicted Ha of one count.
In addition to the prison term, Judge Koh sentenced the defendant to a three year period of supervised release. The defendant is in custody and will begin serving the sentence immediately.
Assistant U.S. Attorney Scott Simeon and Special Assistant U.S. Attorney Christopher Vieira prosecuted the case with the assistance of Mimi Lam and Ryka Barghi. The prosecution is the result of an investigation by the Treasury Inspector General for Tax Administration.
Russellville Operations Results in 44 Federal Defendants Charged with Multiple Drug and Gun Crimes (more than 25 pounds of methamphetamine, 69 firearms seized)Read the Press Release
RUSSELLVILLE—Cody Hiland, United States Attorney for the Eastern District of Arkansas, Anthony Lemons, Acting Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), William McCrary, Assistant Special Agent in Charge, New Orleans Field Division, Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF), and David Gibbons, Prosecuting Attorney for the Fifth Judicial District of Arkansas, announced today the unsealing of a federal indictment charging 44 defendants in a major operation aimed at disrupting drug and gun crime in Pope and Yell Counties. The indictment was returned by a federal grand jury on October 3, 2017, and was unsealed today following a coordinated roundup of the charged defendants.
In total, including defendants charged in state courts, law enforcement obtained arrest warrants for 70 defendants associated with the case, and arrested 27 individuals early Wednesday morning. Eighteen federal and two state defendants were already in custody. Twenty-three defendants, including 11 federal fugitives and 12 state fugitives, remain at large.
During Wednesday morning’s arrest operation law enforcement also seized 46 guns, bringing the total number of firearms seized in the investigation to 69.
“Targeting violent, armed drug dealers will be a priority for my office, as well as for all law enforcement agencies in central Arkansas,” Hiland said. “Law enforcement at all levels is committed to working together to help rid these communities of drugs and those who are responsible for their distribution. Today’s operation is a perfect example of that coordination. Our collective goal is to return these communities to their law-abiding citizens, and taking these criminals off the streets has made Pope and Yell Counties safer places to live and work. Today’s arrests are a victory against these dangerous criminals, but know that our commitment to finding and stopping gun and drug crime all across the Eastern District of Arkansas will continue long after today.”
During the nearly two-year coordinated federal and state investigation, law enforcement agents made 59 controlled purchases of methamphetamine, seizing more than 25 pounds of methamphetamine, as well as the 69 firearms and more than $70,000 in drug proceeds.
Among the 44 federal defendants are nine people who are avowed white supremacists, including eight members of the New Aryan Empire (NAE) and one member of the White Aryan Resistance (WAR). The NAE slogan is “To The Dirt,” which is in reference to the rule that members must remain in the NAE until they die. These groups are Arkansas white supremacist organizations, which began as prison gangs.
This Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, named “To The Dirt,” began in early 2016, when local law enforcement officials started investigating various crimes being committed by the NAE, including the distribution of methamphetamine. It soon became apparent that the methamphetamine trafficking in this area went far beyond only NAE members, and the Fifth Judicial District Drug Task Force enlisted the help of the DEA and ATF.
“The DEA is committed to working with our federal, state and local law enforcement partners to target all levels of drug trafficking organizations that are responsible for drug trafficking and related violence in our communities,” said Stephen G. Azzam, Special Agent in Charge of the DEA’s New Orleans Field Division, which includes the Eastern District of Arkansas. “Our neighborhoods deserve to exist without fear and intimidation inflicted by all violent drug gangs, including the New Aryan Empire. Today’s arrests should significantly impact the violent drug related activity that has wreaked havoc throughout the Eastern District of Arkansas.”
From January 2016 through October 2017 multiple agencies at the local, state, and federal level coordinated dozens of controlled purchases of methamphetamine from individuals associated with the NAE, as well as others distributing drugs in Russellville. While more than 25 pounds of methamphetamine were actually seized in Arkansas, the investigation revealed that hundreds of pounds of methamphetamine had been trafficked from California for distribution in central Arkansas in the course of this conspiracy. Arrest warrants have been issued for two of the main methamphetamine suppliers in California, who lived in Sacramento and Los Angeles and remain fugitives at this time.
Early Wednesday morning 200 law enforcement officers, including more than 150 tactical officers, helped execute the arrest warrants for those defendants in Arkansas in a targeted takedown that resulted in arrests on multiple charges, including conspiracy to possess with intent to distribute and to distribute meth, distribution of methamphetamine, use of a firearm in relation to a drug trafficking crime, and felon in possession of a firearm. Most of the defendants are residents of Pope County (see attachment for complete list of defendants and charges).
A majority of the 44 federal defendants are convicted felons, many with violent histories. Among the 69 guns seized include handguns, rifles, shotguns, and several high-capacity assault-style rifles.
“This almost two-year collaborative effort between ATF, DEA, U.S. Postal Inspectors, Pope County Sheriff’s Office, Arkansas State Police, Arkansas Highway Police, Russellville Police Department, 5th Judicial Drug Task Force, and other state and local law enforcement partners is a shining example of ATF’s commitment to reducing violence in our communities,” ATF Asst. Special Agent in Charge McCrary. “The armed drug trafficking conspiracy dismantled today was a plague on Russellville and the surrounding communities, and the prosecution and incarceration of its leaders and participants will make these communities safer.”
“The present operation is just the latest example of the long history of successful cooperation between federal agencies and the state, county, local, and DTF law enforcement personnel of the Fifth District,” said Fifth Judicial District Prosecuting Attorney David Gibbons said. “From the criminal histories of most of those arrested during this operation, it is clear that in some cases state prosecution alone does not have the resources or reach to eliminate those who make a living from drug distribution. This operation will subject those individuals who have made a career of criminal activity to federal prosecution and prison time. As a result, our communities should be safer, healthier, and more pleasant places in which to raise our families.”
In addition to the methamphetamine and firearms recovered, during the investigation agents with the U.S. Postal Inspection Service and the Conway Police Department seized approximately $65,000 from this drug trafficking organization, which conspirators attempted to ship through the U.S. mail from Arkansas to California for payment for methamphetamine. All told, agents seized more than $70,000 in drug proceeds, as well as a Porsche Carrera seized in California that was used to aid methamphetamine distribution in California.
Those arrested today will be arraigned in federal court in Little Rock before United States Magistrate Judge Patricia S. Harris beginning at 10 a.m. on Friday.
The investigation was conducted by DEA and ATF, in partnership with the Pope County Sheriff’s Office, Yell County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department, and United States Postal Inspection Service.
Wednesday’s arrest operation included the assistance of DEA, ATF, U.S. Postal Inspection Service, United States Marshal’s Service, Arkansas Highway Police, Arkansas National Guard Counter Drug Unit, Arkansas State Police, Arkansas Community Corrections, Pope County Sheriff’s Office, Yell County Sheriff’s Office, Fifth Judicial Drug Task Force, and the Russellville Police Department.
The case is being prosecuted by Assistant United States Attorneys, Liza Jane Brown and Kristin Bryant. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
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To The Dirt defendant listSTATUTORY SENTENCES
Conspiracy to possess with intent to distribute and to distribute more than 500 grams of methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Distribution of 50 grams or more of actual methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Distribution of 5 grams or more of actual methamphetamine is punishable by not less than 5 years, not more than 40 years’ incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Distribution of a mixture containing a detectable amount of methamphetamine is punishable by not more than 20 years’ incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession of a firearm by a felon is punishable by not more than 10 years’ incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Use of a firearm in relation to a drug-trafficking crime is punishable by not less than 5 years’ incarceration, not more than life, in the Bureau of Prisons, consecutive to any other conviction, with a possible fine of up to $250,000, and not more than 3 years supervised release.
“TO THE DIRT” FEDERAL FUGITIVE LIST1. TROY R. LOADHOLT, aka Tricky, 36, Russellville
2. APRIL M. TEETER, aka April Crain, 37, Russellville
3. BRITTANY FERGUSON, aka Brittany Gideon, 26, Russellville
4. RALPH A. ROSS, aka R.A., 53, Atkins
5. BRITANNY S. CONNER, 32, San Pedro, California
6. KATHRINE R. ROSS, aka Katie, 26, Russellville
7. CHRISTOPHER S. HELMS, 34, Dardanelle
8. PAULA S. ENOS, 44, Russellville
9. WESLEY W. PIERSON, 53, Charleston
10. JAMES NICHOLAS GEORGE, aka Nick, 37, Dardanelle
11. KEITH C. SAVAGE, aka K.C., 36, BellevilleRevere Man Sentenced for Multiple Bank RobberiesRead the Press Release
BOSTON – A Revere man was sentenced today in federal court in Boston for robbing 10 banks during a 19-day spree from late December 2016 to early January 2017.
Fred Mandracchia, 36, was sentenced by U.S. District Court Judge Allison D. Burroughs to 100 months in prison, three years of supervised release, and ordered to pay restitution of $16,695 to the banks he robbed. In July 2017, Mandracchia pleaded guilty to 10 counts of bank robbery
Following a Jan. 3, 2017, robbery of the Mechanics Cooperative Bank branch in Fall River, law enforcement identified Mandracchia as the individual responsible for that robbery. Based on similarities in the robberies and the physical description of the perpetrator, Mandracchia was suspected to have also been involved in nine other Boston-area bank robberies. Mandracchia was arrested in Chelsea on Jan. 7, 2017, and confessed to robbing the banks.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Police Departments of Fall River, Boston, Malden, and Chelsea assisted with the investigation. Assistant U.S. Attorney Kelly Begg Lawrence of Weinreb’s Major Crimes Unit prosecuted the case.
Registered Sex Offender Pleads Guilty to Child Pornography Charges on the Morning of TrialRead the Press Release
Acting U.S. Attorney Gregory G. Brooker today announced the guilty plea of DONALD THOMAS PERRIN, 57, a registered sex offender, to child pornography charges. PERRIN, who was charged in a criminal complaint on November 9, 2016, pleaded guilty yesterday morning before Judge Wilhelmina M. Wright, moments before his jury trial was set to begin in U.S. District Court in St. Paul, Minn.
“This defendant, a registered sex offender who repeatedly exploited minors, has admitted his guilt and will now face the consequences of his egregious crimes,” said Assistant U.S. Attorney Kate Buzicky. “I am grateful for the dedication and hard work put forth by the FBI and the Carver County Sheriff’s Office throughout the investigation process and in preparation for trial.”
According to his guilty plea and documents filed in court, in the summer of 2014, PERRIN, a registered sex offender, began engaging in sexually explicit online chats with a fifteen-year-old minor. In the fall of 2014, PERRIN was arrested and jailed at Carver County Jail following a violation of his sex offender registration requirement. After he was released from Carver County Jail, PERRIN continued his online communications with the minor and made screen captures of their video chat sessions depicting sexually explicit activity. On February 12, 2016, PERRIN was again arrested and jailed as a result of his non-compliance with his sex offender registration requirements. Following his arrest, law enforcement executed search warrants at PERRIN’S home and recovered several digital devices containing thousands of child pornography files. PERRIN was scheduled to begin trial on October 10, before U.S. District Judge Wilhelmina M. Wright in St. Paul, Minn.
This case was brought as part of Project Safe Childhood, a nationwide initiative, launched in May 2006, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. In addition, if you know of any child who may have been a victim of exploitation, please contact the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
This case is the result of an investigation conducted by the FBI and the Carver County Sheriff’s Office.
Assistant United States Attorneys Katherine T. Buzicky and Angela Munoz-Kaphing are prosecuting this case.
Defendant Information:
DONALD THOMAS PERRIN, 57
Sherburne County Jail
Convicted:
- Production of child pornography, 1 count
- Commission of a felony while being required to register as a sex offender, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Prison-Based Meth Distribution Ring DismantledRead the Press Release
G. F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces sentences imposed on 19 defendants since January of this year resulting from the dismantling of a drug ring distributing methamphetamine and other drugs and operated from within the prisons of the Georgia Department of Corrections. The following sentences, all of which were imposed by the Honorable Leslie J. Abrams, United States District Judge in Albany, Georgia, resulted from guilty pleas by each defendant for distribution and/or conspiracy to distribute methamphetamine in violation of federal law, except as specifically noted otherwise below, to-wit:
1) Curtis Wood, age 55, of Waycross, Georgia, was sentenced on March 16, 2017, to 120 months imprisonment;
2) Tiffany Leverette, age 33, of Nahunta, Georgia was sentenced on February 1, 2017, to 36 months imprisonment;
3) Austin Brown, age 43, of Rebecca, Georgia, was sentenced on March 16, 2017, to 120 months imprisonment;
4) Jamie Crews, age 42, of Okeechobee, Florida, was sentenced on December 14, 2016, to 200 months imprisonment;
5) Jacob Herrin, age 23, of Hoboken, Georgia, was sentenced February 1, 2017, to 48 months imprisonment;
6) Loretta Hunt, age 47, of Tifton, Georgia, was sentenced on August 29, 2017, to five years of probation for conspiracy to distribute marijuana;
7) Adam Arnold, age 40, of Charleston, West Virginia, was sentenced on August 29, 2017, to 80 months imprisonment;
8) Jimmy Waldrop, age 45, of Leesburg, Georgia, was sentenced on August 29, 2017, to 96 months imprisonment for illegal use of a communication facility to facilitate drug trafficking;
9) Tony Carrithers, age 47, of Tifton, Georgia, was sentenced on August 29, 2017, to 72 months imprisonment;
10) Jimmy Barrentine, age 55, of Tifton, Georgia, was sentenced on August 29, 2017, to 60 months imprisonment;
11) Jimmy Taylor, age 42, of Tifton, Georgia, was sentenced on August 29, 2017, to 180 months imprisonment;
12) Gaye Miles, age 46, of Tifton, Georgia, was sentenced on August 30, 2017, to 36 months imprisonment;
13) Tonya Harp, age 38, of Tifton, Georgia, was sentenced on August 30, 2017, to 60 months imprisonment;
14) Sarah Taylor, age 41, of Tifton, Georgia, was sentenced on August 30, 2017, to 18 months imprisonment;
14) Dexter Davis, age 53, of Enigma, Georgia, was sentenced on August 30, 2017, to 144 months imprisonment;
15) Dorian Holt, age 40, of Fairburn, Georgia, was sentenced on August 30, 2017, to 135 months imprisonment;
16) Leslie Howard, age 47, of Chula, Georgia was sentenced on August 30, 2017, to 120 months imprisonment;
17) Anthony Moore, age 30, of Hoboken, Georgia, was sentenced on August 30, 2017, to 210 months imprisonment;
18) Antron Miles, age 48, of Tifton, Georgia, was sentenced on October 10, 2017, to 360 months imprisonment (to begin in 2020 and run consecutive to his Tift county sentence); and
19) Rehjan Mujanovic, age 27, a citizen of Bosnia, residing in Gwinnett County, Georgia was sentenced on August 30, 2017, to 240 months imprisonment, with sentencing on separate charges in the State of Georgia to take place subsequently.
Co-defendant Bobby Grantham is awaiting sentencing.
Investigative efforts in this case revealed that several inmates in the custody of the Georgia Department of Corrections, including Antron Miles, Anthony Moore, and Rejhan Mujanovic had engaged in a conspiracy with one another and with other persons, who were not inmates, to acquire and distribute a variety of controlled substances such as methamphetamine, heroin, cocaine and marijuana. Miles, Moore and Mujanovic were able to engage in this criminal activity due to cell phones that had been smuggled into the Georgia Department of Corrections and to which they had access.
Based on an order authorizing a wiretap on the phone used by Miles, agents learned that Miles, a native of Tifton, Georgia, was obtaining controlled substances, primarily methamphetamine, but also marijuana, cocaine/cocaine base and heroin from persons associated with Mujanovic. Miles’ nephew, Dorian Holt, regularly met with the suppliers and transported the bulk quantity narcotics from the Atlanta area to the Tifton area. In some instances the controlled substances were shipped via United States Mail to Enigma, Georgia, where Loretta Hillman Hunt was the Relief Post Master. Ms. Hunt would divert the packages from the normal flow of mail and provide them to either Tonya Harp or Dexter Davis for distribution.
In Tifton, the drugs were warehoused and distributed by Leslie Howard, Tonya Harp and Sarah Frost Taylor assisted by Jimmy Taylor, Tony Carrithers and Dexter Davis. Anthony Moore routed customers such as Curtis Wood, Tiffany Leverette, Jacob Herrin and Jamie Crews from the Ware, Coffee and Brantley County areas through Miles to arrange meetings with Miles’ co-conspirators in Tifton. Jimmy Barrentine assisted in transporting the controlled substances to Wood on some occasions. Miles’ wife, Gaye, took control of the proceeds of the sales and assisted in acquiring supplies necessary for processing the methamphetamine. Other listed defendants, including Austin Brown, Adam Arnold and Jimmy Waldrop, were repeat customers who acquired regular multi-ounce quantities of methamphetamine and heroin for resale in Georgia and West Virginia.
The agents monitored the wiretap from May 22, 2015 to June 8, 2015. Before, during and after the conclusion of the wiretap, agents engaged in controlled purchases of controlled substances. They conducted surveillance and traffic stops based on the information obtained through the wire-tap. Additionally, they executed search warrants at many of the Tifton area storage locations.
As a result of these efforts, agents seized multiple kilograms of high purity methamphetamine, hundreds of grams of heroin and marijuana, along with small amounts of cocaine and prescription pills such as Oxycodone and Xanax. Agents also seized in excess of $30,000 in United States Currency.
“This prosecution is the result of an ongoing and unrelenting investigation by the federal, state and local agencies listed below as well as the dedicated prosecution team in the Albany Branch of this office,” said United States Attorney Peterman. “This effort has dismantled a major drug distribution network in Southwestern Georgia, an operation that had continued even from prison. It is an outstanding example of what a dedicated team of law enforcement professionals can accomplish when working together across jurisdictional lines.”
This case was investigated by the Drug Enforcement Administration Macon Division; GBI Sylvester, Ben Hill County Sheriff’s Office, Tift County Sheriff’s Office, and Mid South Narcotics Task Force. Assistant United States Attorney Leah E. McEwen prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Philadelphia Pair Charged in Drug Trafficking ConspiracyRead the Press Release
Herman Rosario, 34, of Philadelphia, Pennsylvania, and Yatska Melendez, 22, of Philadelphia, Pennsylvania, were charged today by Indictment[1] with one count of conspiring to distributed one kilogram or more of heroin, and 28 grams of more of crack cocaine, announced Acting United States Attorney Louis D. Lappen. Rosario was also charged with possessing with the intent to distribute one kilogram or more of heroin, and 28 grams of more of crack cocaine, possessing a firearm in furtherance of drug trafficking crime, and being a felon in possession of a firearm. On July 14, 2017, Rosario and Melendez were arrested in South Philadelphia after a month-long investigation by the Philadelphia Police Department. Rosario faces a maximum sentence of life in prison, mandatory minimum prison sentences of 10 and 5 years, a $20,500,000 fine, a lifetime of supervised release, and a $400 special assessment. Melendez faces a maximum sentence of life in prison, a mandatory minimum prison sentence of 10 years, a $10,000,000 fine, a lifetime of supervised release, and a $100 special assessment.
The case was investigated by the Drug Enforcement Administration and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Jason P. Bologna.
[1]An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced in Tax Refund Fraud SchemeRead the Press Release
Jose Perez, 52, of Philadelphia, PA was sentenced today after pleading guilty to one count of conspiracy to defraud the United States announced Acting United States Attorney Louis D. Lappen. Perez was sentenced to 51 months’ imprisonment and ordered to pay $814,981 in restitution.
Perez admitted that he participated in a scheme that defrauded the United States by filing false income tax returns using stolen identities of Puerto Rico residents. Perez collected the tax refund checks from addresses he and others controlled and then he gave the checks to another member of the scheme to be cashed. Between April 2009 and June 2009, Perez and others in the scheme cashed over $800,000 of fraudulently obtained United States Treasury tax refund checks.
The case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant United States Attorney David Ignall.
Pennsylvania Resident Sentenced for Making False StatementsRead the Press Release
CONCORD, N.H. – Ana Delarosa, 57, of Harrisburg, Pennsylvania was sentenced to serve three years of probation, including six months of home confinement, for submitting forged affidavits to the National Visa Center, announced Acting United States Attorney John J. Farley.
According to court documents and statements made in court, a limited number of family visas are issued by the U.S. Department of State to citizens of foreign countries. To obtain a family visa, a citizen or legal permanent resident of the United States (a “sponsor”) is required to submit an application for a family visa to the United States Citizenship and Immigration Service (“USCIS”). Citizens of foreign countries are not eligible for a family visa if they are likely to become public charges after they enter the United States. Therefore, under federal law, a sponsor is also required demonstrate his or her ability to provide financial support to the applicant by submitting a financial affidavit, copies of recent federal tax returns, and other personal financial records to the USCIS. All applications for family visas are processed at the National Visa Center (“NVC”) in Portsmouth, New Hampshire.
On June 26, 2017, Delarosa pled guilty to making false statements to a federal agency. In particular, she admitted that from August 2010 to April 2013, she knowingly caused ten financial affidavits containing forged signatures of alleged sponsors to be submitted to the NVC in support of applications for family visas for citizens of the Dominican Republic.
Delarosa was sentenced to three years of probation. As a special condition of her probation, she must serve six months in home confinement. She also was ordered to pay a $1,000 fine.
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The case was investigated by the U.S. Department of State’s Diplomatic Security Service and prosecuted by Assistant United States Attorney Robert Kinsella.
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Pakistani Woman Admits to Marriage Fraud SchemeRead the Press Release
DALLAS — Amna Cheema, 37, a Pakistani national, appeared before U.S. Magistrate Judge Renee Harris Toliver yesterday and pleaded guilty to one count of conspiracy to commit marriage fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Cheema will remain in custody pending sentencing which is set for January 22, 2018 Co-defendant Bilal Khaleeq, 47, is scheduled to begin trial on December 11, 2017 for his role in the conspiracy. If convicted, Khaleeq faces a maximum statutory penalty of five years in federal prison and a $250,000 fine.
According to plea documents filed in the case, in May 2015, Cheema engaged in discussions with Khaleeq and another individual at Khaleeq’s law office to discuss planning Cheema’s marriage to Person A in order for Cheema to obtain legal status in the United States. In exchange for agreeing to marry Cheema, Person A was paid $745 and promised more money after the immigration process was completed. On June 15, 2015, Cheema married Person A to establish eligibility for legal status in the United States.
Cheema, Person A and Khaleeq discussed the filing of the alien relative petition forms (I-130), the permanent residence applications (I-485), and additional evidence needed to ensure approval of those forms, including filing joint tax returns and placing articles of male clothing at Cheema’s house as further evidence of a valid marriage.
U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Special Assistant U.S. Attorney Lynn Javier is in charge of the prosecution.
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Omaha Man Sentenced for Drug Trafficking and Money LaunderingRead the Press Release
On October 10, 2017, Adalberto Martinez-Ramirez was sentenced by United States District Judge Robert F. Rossiter, Jr. Martinez-Ramirez previously had pled guilty to two counts of a Superseding Indictment: Count I, conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine; and Count X, conspiracy to commit money laundering. Martinez-Ramirez was sentenced to 324 months imprisonment on Count I and 240 months imprisonment on Count X. The sentences are to run concurrently.
This case was investigated by the Drug Enforcement Administration and the Nebraska State Patrol.
North Dakota Man Charged with Violations of the Lacey Act and Bald and Golden Eagle Protection ActRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mandan, North Dakota, man has been indicted by a federal grand jury for violations of the Lacey Act and Bald and Golden Eagle Protection Act.
Sheldon Tree Top, age 43, was indicted on August 22, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 2 years in custody and/or a $250,000 fine, 1 year of supervised release, and up to $150 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 7, 2014, and August 14, 2014, Tree Top knowingly transported, sold, received, acquired, and purchased bald eagle, golden eagle, and various species of hawks, when Tree Top should have known the protected birds were taken, possessed, transported, and sold in violation of, and in a manner unlawful under the laws and regulations of the United States.
The charges are merely accusations and Tree Top is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.
Tree Top was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
North Carolina Pharmacist Sentenced to Prison for Medicare and Medicaid FraudRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that yesterday in federal court, JUSTIN LAWRENCE DANIEL, 35, of Fayetteville, North Carolina, was sentenced to 12 months and a day in federal prison and 3 years of supervised release following his prior guilty plea to Health Care Fraud Conspiracy. DANIEL was also ordered to make restitution of $1,961,176.56 to the Medicare program and $479,923.50 to the North Carolina Medicaid program.
United States Attorney Robert J. Higdon, Jr. stated, “This was a case of a corrupt pharmacist who mixed and sold non-covered pain cremes to the public, but who billed federal taxpayers millions for expensive pain pills through the Medicare and Medicaid programs. I am happy to report not only that this pharmacist will be reporting to federal prison as punishment, but more importantly, that he has surrendered his pharmacy license and has already paid back $2 Million of the money he stole. Mr. Daniels will never again be in a position to defraud patients, or taxpayers, using his pharmacy license. I wish to congratulate our state and federal law enforcement partners on the outcome of this important conviction and sentencing.”
North Carolina Attorney General Josh Stein said, “Cheating Medicaid wastes tax dollars, and it’s unacceptable. My office will continue our work to protect taxpayers and hold the healthcare providers who commit fraud accountable.”
The Criminal Information to which DANIEL pleaded guilty, as well as information provided at the sentencing hearing, provided that between 2011 and 2015, DANIEL owned and operated Old Main Pharmacy, Inc. (“Old Main”) located in Pembroke and Rowland, North Carolina. During that time period, DANIEL directed his staff to fraudulently bill the Medicare program and the North Carolina Medicaid Program for Ketoprofen extended release capsules that his pharmacy did not use when creating a compounded pain-relief cream sold by Old Main.
In addition to being sentenced to federal prison and serving a term of supervised release, DANIEL surrendered his North Carolina pharmacist’s license. Prior to sentencing, DANIEL paid $2,000,000 to the court in anticipation of the sizable restitution judgment.
The investigation of this case was conducted by agents of the Medicaid Investigations Division of the North Carolina Attorney General’s Office; the United States Department of Health and Human Services Office of the Inspector General; with the assistance of the North Carolina Board of Pharmacy. The investigation and prosecution of this matter was handled in a partnership between the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. Special Assistant United States Attorney John Parris of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and Assistant United States Attorney William M. Gilmore of the Economic Crimes Division of the U.S. Attorney’s Office, each represented the United States.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS- TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
New York Man Sentenced to over Six Years’ Imprisonment for Role in Attempted Sex Trafficking of A MinorRead the Press Release
Pennsylvania announced that Adrian Smith, age 22, of New York City, was sentenced to 78 months’ imprisonment today by Senior U.S. District Court Judge Richard P. Conaboy, for his role in the attempted sex trafficking of a minor.
According to United States Attorney Bruce D. Brandler, Smith previously pleaded guilty to assisting others in maintaining and providing security for two minor females who were attempting to engage in commercial sex activities during August 2016, at a hotel in Scranton.
Smith was charged in a criminal information filed in October 2016.
Judge Conaboy also ordered Smith to serve five years on supervised release following his prison sentence. Smith must also register as a sex offender and comply with sex offender notification and registration requirements.
The case was investigated by the Federal Bureau of Investigation and Scranton Police. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Navajo Woman from Albuquerque Sentenced for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Kelly James, 35, an enrolled member of the Navajo Nation who resides in Albuquerque, N.M., was sentenced today in federal court to three years of probation for her conviction on a misdemeanor child abuse charge. In addition to the mandatory conditions of her probation, James will be required to complete substance abuse counseling, childcare classes and refrain from the use of alcohol.
James was arrested in May 2017, on an indictment charging her with engaging in child abuse by operating a motor vehicle recklessly on Dec. 8, 2016, on the Isleta Pueblo in Valencia County, N.M.
On June 13, 2017, James entered a guilty plea to the indictment. In entering the guilty plea, James admitted that on Dec. 8, 2016, she operated a motor vehicle recklessly within the Isleta Pueblo while under the influence of alcohol. James further admitted that her actions endangered the health and wellbeing of the child who was a passenger in the vehicle.
This case was investigated by the Isleta Pueblo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Elisa C. Dimas.
Navajo Man from Shiprock Sentenced to Six Years for Federal Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Zachariah Nez, 22, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Albuquerque, N.M., to six years in prison for his conviction on a voluntary manslaughter charge. Nez will be on supervised release for three years after completing his prison sentence.
Nez was arrested in Oct. 2016, on a criminal complaint charging him with killing a Navajo man on the Navajo Indian Reservation in San Juan County, N.M., on Oct. 17, 2016. According to the complaint, Nez killed the victim by striking him with a rock.
Nez was indicted on Nov. 1, 2016, and charged with second-degree murder on Oct. 17, 2016, in San Juan County.
On June 15, 2017, Nez pled guilty to a felony information charging him with voluntary manslaughter. In entering the guilty plea, Nez admitted that on Oct. 17, 2016, he killed the victim by striking him several times with a rock.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Joseph M. Spindle.
Monongalia County man admits to drug distribution chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Morgantown, West Virginia man has admitted to a drug distribution charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Codey Bonnette, age 25, pled guilty to one count of “Distribution of Oxycodone.” Bonnette admitted to selling oxycodone in Monongalia County in September 2015.
Bonnette faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Mon Metro Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mobridge Man and Woman Charged with Violations of the Migratory Bird Treaty ActRead the Press Release
United States Attorney Randolph J. Seiler announced that two Mobridge, South Dakota, residents, a man and a woman, have been indicted by a federal grand jury for a violation of the Migratory Bird Treaty Act.
Jeffrey Jensen, age 53, and Amanda Silbernagel, age 30, both d/b/a Jerry’s Pawn Shop, were indicted on September 12, 2017. They appeared before U.S. Magistrate Judge Mark A. Moreno on October 6, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction for this felony offense is up to two years in custody and/or a $250,000 fine, one year of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 19, 2014, and August 21, 2014, Jensen and Silbernagel, d/b/a Jerry’s Pawn Shop, knowingly offered for sale, sold, offer to barter, bartered, delivered for transportation, transported, and caused to be transported, a migratory bird and parts thereof of any such bird.
The charge is merely an accusation and Jensen and Silbernagel are presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorneys Meghan N. Dilges and Eric D. Kelderman are prosecuting the case.
Jensen and Silbernagel were released on bond pending trial. A trial date has not been set.
Mobile County Man Receives Mandatory Minimum Sentence for Gun Use in Furtherance of Drug CrimeRead the Press Release
The United States Attorney, Richard W. Moore, announces that Michael Fleming, Jr., a 40 year old, resident of Prichard, Alabama was sentenced today to 61 months incarceration followed by three years of supervised release.
A search warrant was executed at Fleming’s residence and seized from his bedroom was a loaded Jennings Arms .25 caliber semi-automatic handgun with two magazines and a loaded Remington 12 gauge semi-automatic shotgun. A search of the shed on his property uncovered a loaded Intratec 9mm with one additional loaded magazine, a loaded Maverick 12 gauge pump shot gun, a loaded Charter Arms .38 special revolver, a loaded .22 Magnum caliber revolver, three digital scales, a bottle of Inositol Powder (used as a cutting agent for the cocaine). Law enforcement officers also seized approximately 195.71 grams of powder cocaine, 27.09 grams of crack cocaine, and 923.67 grams of marijuana.
On June 23, 2017, Fleming pled guilty to possession of the firearms in furtherance of a drug trafficking crime and possession of marijuana with the intent to distribute.
Deputies with the Mobile County Sheriff’s office along with special agents of the Immigration and Customs Enforcement (ICE) arm of the Department of Homeland Security investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney, Gina S. Vann.
Mission Man Sentenced to Prison for CocaineRead the Press Release
McALLEN, Texas – A 25-year-old Mission man has received a 10-year prison sentence for transporting cocaine, announced Acting U.S. Attorney Abe Martinez. Mario Alberto Garrido pleaded guilty to possessing with the intent to distribute 23 kilograms of cocaine on Nov. 8, 2016.
Today, U.S. District Judge Ricardo H. Hinojosa sentenced Garrido to 120 months in prison to be immediately followed by five years of supervised release.
On June 2, 2016, authorities stopped Garrido for a traffic violation in Mission. A canine alerted to the presence of narcotics in the vehicle, at which time law enforcement discovered approximately 23 kilograms of cocaine in a hidden compartment in the trunk of the car he was driving.
Garrido admitted he had been involved in transporting and distributing cocaine since he was 12 years old.
Garrido has been and will remain in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Hidalgo County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Mission Man Sentenced to Prison for CocaineRead the Press Release
McALLEN, Texas – A 25-year-old Mission man has received a 10-year prison sentence for transporting cocaine, announced Acting U.S. Attorney Abe Martinez. Mario Alberto Garrido pleaded guilty to possessing with the intent to distribute 23 kilograms of cocaine on Nov. 8, 2016.
Today, U.S. District Judge Ricardo H. Hinojosa sentenced Garrido to 120 months in prison to be immediately followed by five years of supervised release.
On June 2, 2016, authorities stopped Garrido for a traffic violation in Mission. A canine alerted to the presence of narcotics in the vehicle, at which time law enforcement discovered approximately 23 kilograms of cocaine in a hidden compartment in the trunk of the car he was driving.
Garrido admitted he had been involved in transporting and distributing cocaine since he was 12 years old.
Garrido has been and will remain in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Hidalgo County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Mike Hurst Sworn in as U.S. Attorney for the Southern District of MississippiRead the Press Release
Jackson, Miss – On Tuesday, October 10, 2017, D. Michael Hurst, Jr. was sworn in as the United States Attorney for the Southern District of Mississippi by U.S. District Judge Daniel P. Jordan in Jackson, Mississippi. Hurst was nominated by President Donald J. Trump on June 29, 2017, and was unanimously confirmed by the Senate on October 3, 2017.
"I am honored and humbled by this opportunity to return to the U.S. Attorney’s Office to do the work of justice and serve the people of Mississippi. We have some of the hardest working, most caring people in this office, and I look forward to partnering with our state and local law enforcement to make sure people are protected, victims are served, and our communities are safer," said Hurst.
Hurst most recently served as the Director of the Mississippi Justice Institute ("MJI"), a division of the Mississippi Center for Public Policy. Before starting MJI, he was the Republican nominee for Mississippi Attorney General in 2015.
From 2006 until February 2015, Hurst served as an Assistant United States Attorney within the Criminal Division of the U.S. Attorney’s Office in Jackson, where he focused primarily on fighting public corruption. He received numerous awards from the Department of Justice, Homeland Security, and other federal law enforcement agencies.
Before going to work for the US Attorney’s Office, Hurst served on the staff of Congressman Chip Pickering in Washington, DC. Prior to that, he was Counsel to the U.S. House of Representatives Judiciary Committee, Constitution Subcommittee. He practiced law at Troutman Sanders in Washington, DC, after graduating from law school.
Hurst is originally from Hickory, Mississippi, and is a graduate of East Central Community College in Decatur, and Millsaps College in Jackson, as well as The George Washington University Law School in Washington, D.C. Hurst and his wife, Celeste, live in Sandhill, Mississippi, with their five children and Mike’s younger sister.
Mexican National Designated as Key Drug Trafficking Target Indicted on Federal Narcotics Charges Related to High Desert Meth LabRead the Press Release
RIVERSIDE, California – A Mexican national who was previously designated as an important target because of his links to international drug trafficking was indicted today by a federal grand jury on narcotics charges related to a meth lab in Hesperia where multiple pounds of methamphetamine were seized.
Adrian Ulises Garcia-Ruiz, 37, a native of Michoacán, Mexico, was named in a two-count indictment that alleges he supplied liquid methamphetamine that was turned into crystal meth at the San Bernardino County drug lab.
The indictment names a second defendant – Carlos Miguel Gallardo-Valdovinos, also a Mexican national – who allegedly converted the narcotics into crystalline form.
According to the indictment, Garcia-Ruiz coordinated shipments of liquid methamphetamine into the United States, where it was converted into crystalline form for distribution. Gallardo-Valdovinos allegedly purchased acetone which he used to convert the liquid methamphetamine into crystalline form at the Hesperia lab.
In May 2014, authorities executed a search warrant at the Hesperia drug lab, where they seized approximately six gallons of liquid methamphetamine, more than nine pounds of crystal methamphetamine and $60,000 in U.S. currency.
The indictment links Garcia-Ruiz to Gallardo-Valdovinos through a series of intercepted communications, some of which indicate that Gallardo-Valdovinos had received six gallons of methamphetamine prior to the seizure.
Garcia-Ruiz had been placed on the Consolidated Priority Organization Target (CPOT) List by the Organized Crime Drug Enforcement Task Force. The CPOT list targets those who participate in the “command and control” of the most prolific international drug trafficking and money laundering organizations.
Garcia-Ruiz was arrested at Dallas/Fort Worth International Airport on September 20, the day after prosecutors at the United States Attorney’s Office filed a criminal complaint against him. A federal Magistrate Judge in Dallas detained Garcia-Ruiz, and he currently is being transported to Southern California by the United States Marshals Service. Once Garcia-Ruiz arrives in Southern California, he will be arraigned on the indictment.
The indictment charges Garcia-Ruiz and Gallardo-Valdovinos with two counts: conspiracy to manufacture, possess with intent to distribute, and distribute methamphetamine; and possession with intent to distribute methamphetamine.
Each count carries a mandatory minimum penalty of 10 years in federal prison and a statutory maximum sentence of life.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Today’s indictment is the result of an ongoing investigation being conducted by the Drug Enforcement Administration.
This case is being prosecuted by Assistant United States Attorney Tritia L. Yuen and Special Assistant United States Attorney Paul Levers of the Riverside Branch Office.
Metro-Atlanta Chiropractors Charged with Healthcare Fraud SchemeRead the Press Release
ATLANTA – Dr. Allan Spagnardi and Dr. Stacy Spagnardi have been arraigned on conspiracy and fraud charges for using their chiropractic clinic to submit false claims to private insurance providers.
“These two chiropractors are alleged to have reported fake patient visits in order to enrich themselves through fraudulent insurance claims,” said U.S. Attorney Byung J. “BJay” Pak. “Fraudulent healthcare billing threatens the integrity of our healthcare system and is ultimately paid for by the taxpayers.”
“Healthcare providers need to think twice before trying to illegally maximize their profits at the expense of honest citizens,” said David J. LeValley, Special Agent in Charge of the Atlanta FBI. “Bringing this case to federal court is an example of our determination to protect those citizens and root out waste, fraud and abuse of our healthcare system.”
“Healthcare fraud has become a significant problem in the world today” said James Dorsey, Acting Special Agent in Charge for IRS Criminal Investigation. “The Spagnardis’ greed and want of a lavish lifestyle led them to commit healthcare fraud and we will continue to support investigative efforts to deter such actions.”
“I’m thankful for the action by the grand jury and for the work on this case by the U.S. Attorney’s office,” Georgia Insurance Commissioner Ralph Hudgens said. “Alleged actions by the Spagnardis hurt not only Georgia citizens, but citizens across the United States in the form of higher insurance premiums.”
According to U.S. Attorney Pak, the charges, and other information presented in court: Dr. Allan Spagnardi and Dr. Stacy Spagnardi operated a chiropractic clinic located in Marietta, Georgia. Over a period of at least three years, the Spagnardis allegedly submitted numerous fraudulent claims to private insurance providers for procedures that never took place.
The indictment alleges that after the Spagnardis obtained their patients’ personal identifying information, they continued to bill private insurance providers for services that were never actually rendered. On some occasions in which the Spagnardis claimed their clinic was treating patients, those patients were not even in the United States when those treatments were supposedly taking place. In one instance, the Spagnardis allegedly claimed that their clinic had 296 patient visits during a week that they were actually on a Royal Caribbean cruise vacation.
The Spagnardis are alleged to have claimed millions of dollars from private insurance providers. The indictment alleges that Stacy Spagnardi spent much of the fraud proceeds at casinos. Stacy Spagnardi is also alleged to have frequently made cash withdrawals under $10,000, with the purpose of evading banking reporting requirements. For his part, Allan Spagnardi allegedly used a portion of the fraud proceeds to purchase a BMW motorcycle and a 2015 BMW M4.
Allan Spagnardi, 38, and Stacy Spagnardi, 50, both of Atlanta, Georgia, were arraigned today before United States Magistrate Judge Alan J. Baverman.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation, Federal Bureau of Investigation, the Georgia Office of Commissioner of Insurance, and the Atlanta Police Department.
Assistant United States Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Manhattan U.S. Attorney Announces Charges Against Massachusetts Businessman for Money Laundering, Financial Support for Manhattan BrothelRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Charles Brandeis, the Special Agent in Charge of the New York Field Office of the U.S. Department of State's Diplomatic Security Service (“DSS”), and Philip Bartlett, the Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), announced charges today against a Massachusetts businessman, DAVID STASIOR, for providing financing and financial advice to an illegal brothel operating in Manhattan, and conspiring with the brothel owner to use the proceeds from the brothel to promote the brothel’s activities. STASIOR was arrested by agents from DSS, the USPIS, and the U.S. Attorney’s Office for the Southern District of New York this morning and will be presented in federal court in Massachusetts later today.
This case arises from a multiple-year-long investigation in which 17 additional individuals have previously been charged with conspiracy to commit money laundering and conspiracy to violate the Travel Act. The previously charged individuals have included the owners of a network of at least 10 brothels in Manhattan, and individuals who provided advertising services for these brothels. These brothels were independently owned but worked cooperatively, and employed prostitutes who typically came to the United States from South Korea pursuant to fraudulently obtained visas or visa waivers. STASIOR allegedly provided financing for one of these brothels, whose owner was previously charged and pled guilty to money laundering conspiracy.
Acting U.S. Attorney Joon H. Kim stated: “For years, the defendant allegedly helped launder the proceeds of an illegal brothel operation in Manhattan, providing start-up money, ongoing financial advice, and record-keeping services. As alleged, the defendant financially supported and profited from this business that exploited vulnerable women and laundered money.”
Special Agent in Charge Charles Brandeis stated: “DSS continues to disrupt and dismantle transnational criminal organizations seeking to profit from the entry and illicit activities of vulnerable foreign nationals. This investigation demonstrates the global reach of the Diplomatic Security Service.”
Inspector in Charge Philip R. Bartlett stated: “This arrest represents the continued effort of law enforcement to put a stop to illegal activity wherever it is found. Many claim prostitution is the oldest profession in the world. The anonymity of the internet was used to hide the identity of its operators, keeping law enforcement in the dark. As in this case, what is done in the dark will always be revealed in the light.”
According to the Complaint[1]:
Since 2012, DSS, USPIS, and the U.S. Attorney’s Office for the Southern District of New York have been investigating a group of brothels (the “Brothels”) operating in and around New York. Each of the Brothels was independently owned and operated, but the owners of the Brothels worked cooperatively through, among other things, the sharing of approved customer lists and information. STASIOR started out as a customer of the Brothels. In 2013, he provided a co-conspirator (“CC-1”)[2] with financing to open a brothel (the “Brothel”), while requiring the co-conspirator to make periodic payments from the Brothel’s proceeds in return for his investment.
The Brothel used a website to advertise the women prostituted in the Brothel, as well as an online aggregator of advertisements to advertise the Brothel. The management of online advertising and payment for this advertising was coordinated by the defendant and CC-1, among others. STASIOR sent multiple emails to CC-1 in which he provided business advice to the Brothel, including advice on how to use online advertising for the Brothel to increase the Brothel’s profits. STASIOR’s emails included spreadsheets that listed him as a “Partner” in the business and itemized the Brothel’s prostitution revenues and the various expenses involved in running the Brothel, including the cost of advertising. In these emails, STASIOR also itemized the payments made to him out of the Brothel’s proceeds, and stated that he was concerned about the Brothel’s profitability to ensure that CC-1 would be able to “pay back” the “debt” that had been incurred by his investment in the Brothel.
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STASIOR, 53, of Concord, Massachusetts, is charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and one count of conspiracy to violate the Travel Act, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
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
Mr. Kim praised the outstanding efforts of DSS, USPIS, and the criminal investigators working in the United States Attorney’s Office for the Southern District of New York. He added that the investigation is ongoing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Danielle R. Sassoon and Thane Rehn are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
[2] CC-1 has been separately charged in the Southern District of New York with money laundering conspiracy and Travel Act conspiracy, and has pleaded guilty to money laundering conspiracy.
Manhattan Tax Attorney Sentenced to Two Years in Prison for Participation in Multimillion-Dollar Tax Evasion Scheme and Lying to the IRSRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that HAROLD LEVINE, a Manhattan tax attorney, was sentenced today by U.S. District Judge Jed S. Rakoff to 24 months in prison for tax evasion and obstruction of the Internal Revenue Service (“IRS”), stemming from his scheme to siphon millions of dollars of tax shelter fee income from the law firm at which he worked and failing to report the diverted fees as income. LEVINE’s scheme also involved making false statements to IRS auditors, and urging a witness to provide false testimony to the same IRS auditors who were investigating LEVINE’s receipt of the fees.
Acting U.S. Attorney Joon H. Kim said: “Harold Levine stole first from his law firm partners and then from American taxpayers by filing tax returns that left out millions of dollars of income. As if tax evasion by a tax attorney were not bad enough, Levine tried to get out of it by lying to the IRS during an audit and urging a witness to give false testimony. Levine’s jail sentence should serve as a reminder that everyone – including tax lawyers – must be truthful in reporting their income, and deal honestly with, the tax authorities.”
According to the Indictment, LEVINE’s guilty plea, and statements made during the plea proceedings and other court proceedings:
Between 2004 and 2012, LEVINE, a tax attorney and former head of the tax department at a major Manhattan Law Firm (the “Law Firm”), schemed with co-defendant Ronald Katz, a certified public accountant, to obstruct and impede the due administration of the Internal Revenue laws by evading income taxes on millions of dollars of fee income generated from tax shelter and related transactions that LEVINE worked on while a partner of the Law Firm. Specifically, LEVINE failed to report approximately $3 million in income to the IRS on his personal tax returns during the period 2005-2011. Most of the fee income LEVINE failed to report was routed by him through a limited liability company LEVINE controlled, which was nominally owned by a family member.
As part of the scheme, for example, LEVINE caused tax shelter fees paid by a Law Firm client to be routed from the Law Firm’s escrow account to a partnership entity he co-owned with Katz and thereafter used those fees – totaling approximately $500,000 – to purchase a home in Levittown, on Long Island. LEVINE caused the home to be purchased as a residence for a Law Firm employee (the “Law Firm Employee”) with whom he then enjoyed a close personal relationship. Although LEVINE allowed the Law Firm Employee to reside in the Levittown house for over five years without paying rent, LEVINE and Katz prepared tax returns for the entity through which the home was purchased that claimed false deductions as a rental property.
In February 2013, LEVINE was questioned by IRS agents concerning his involvement in certain tax shelter transactions and the fees received by LEVINE from those transactions. During that questioning, LEVINE falsely told the IRS that the Law Firm Employee paid him $1,000 per month in rent while living in the Levittown home. In addition, when the Law Firm Employee was contacted by the IRS and summoned to appear for testimony, LEVINE urged the employee to falsely tell the IRS that she had paid $1,000 per month in rent to LEVINE.
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In imposing sentence today, Judge Rakoff said, “There was no one in the world who knew better that he was committing a crime than Harold Levine.”
In addition to the 24-month prison sentence, LEVINE, 59, of New York, New York, was sentenced to three years of supervised release, and ordered to pay restitution to the IRS in an amount to be determined at a hearing on November 13, 2017.
Co-defendant Ronald Katz, who also pled guilty in June 2017, is scheduled to be sentenced on November 13, 2017.
Mr. Kim thanked the IRS for its assistance in this investigation and praised the outstanding investigative work of both IRS-CI and IRS Civil – Large Business & International.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Special Assistant United States Attorney Stanley J. Okula and Assistant United States Attorney Daniel S. Noble are in charge of the prosecution.