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Tuesday 10 October 2017
Detroit man sentenced to 10 years in federal prison for heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced to 10 years in federal prison today for a drug crime, announced United States Attorney Carol Casto. James Otis Daniels, 43, previously pleaded guilty to possession with intent to distribute heroin.
On March 10, 2016, the Huntington FBI Drug Task Force conducted a search at 1830 10th Avenue in Huntington, where Daniels was living with his codefendant, Thomas Nelson. During the search, agents seized a total of over 80 grams of heroin, including over 75 grams located inside a safe in Daniels’ bedroom, along with four digital scales. Agents also seized over $7,300 in cash, over $3,700 of which was located inside the safe in the bedroom. Agents additionally seized a .45 caliber Taurus pistol from Daniels’ bedroom that had previously been reported stolen from a firearms dealer in Barboursville.
Nelson previously pled guilty to a federal gun crime, and was sentenced to five years in federal prison.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney R. Gregory McVey is in charge of the prosecution. United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Decatur CountyMan Sentenced to 17 Years ImprisonmentRead the Press Release
Jackson, TN – A local man has been sentenced to 17 years’ imprisonment for conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, the FBI and other federal, state and local agencies conducted a year-long investigation into Franklin Shane Rushing, 46 of Decaturville, TN, and other co-conspirators who were distributing actual methamphetamine (methamphetamine with 80% or higher purity) in the Western District of Tennessee. The FBI received information that Rushing was a major distributor of ICE in Decatur County, Tennessee.
On December 9, 2015, a source purchased one ounce of meth from Rushing for $1,100. The DEA lab confirmed the drug amount to be 29.8 grams of 98.7% pure meth. Later that same day, Rushing sold another 28.2 grams of 99.6% pure meth. In February 2016, Rushing purchased one pound of ICE for $13,000 from his supplier. Law enforcement recovered another 4.5 ounces of ICE sold by Rushing. In March 2016, a traffic stop was conducted before Rushing could meet with his supplier to make arrangements for more narcotics. Seized from Rushing at that time was $9,086, as well as a loaded .40 caliber pistol in a holster. Law enforcement conducted a search warrant on Rushing’s home the same day as the traffic stop. 48 additional firearms were confiscated, along with digital scales, baggies, a small amount of meth and a drug notebook. During a 4-month period, 2.5 kilos of ICE was attributed to Rushing through this investigation.
On October 5, 2017, U.S. District Judge J. Daniel Breen sentenced Rushing to 144 months’ imprisonment for the drug conspiracy. He will serve 60 months consecutively on the firearms offense and 5 years supervised release following his incarceration.
The case was investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Tennessee Bureau of Investigation; 24th Judicial Drug Task Force; Decatur County Sheriff’s Department; Henderson County Sheriff’s Department; Lexington Police Department and as part of the FBI Safe Streets Task Force; Dyersburg Police Department and Jackson Police Department.
Assistant U.S. Attorney Beth C. Boswell prosecuted this case on the government’s behalf.
Construction Company Owners Sentenced to Federal Prison for Paying over $1 Million in Bribes for City of Atlanta ContractsRead the Press Release
ATLANTA - Elvin R. Mitchell, Jr. and Charles P. Richards, Jr. have been sentenced to federal prison for conspiring to pay over $1 million in bribe payments in exchange for receiving lucrative contracts with the City of Atlanta.
“The citizens of Atlanta rightfully expect that government contracts will go to the most qualified bidder and trust that the contracting process will be transparent and fair,” said U. S. Attorney Byung J. “BJay” Pak. “When contractors like Mitchell and Richards pay bribes to get public work, the public’s confidence in the process is undermined and the price of that corruption is borne by the taxpayers.”
“Today’s sentencing hearings in federal court are a direct result of a thorough public corruption investigation consisting of many long hours of work by both federal investigators and their prosecutors,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office. “While it is important that both E.R Mitchell and C.P. Richards, Jr. are held accountable for their criminal conduct, the FBI feels that it is also important for others, either public officials or those attempting to illegally influence them, to take note of the harsh consequences of such actions.”
“IRS Criminal Investigation is committed to investigating individuals who think that they can get a competitive advantage by cheating the system by paying bribes to get government contracts,” said James Dorsey, Acting Special Agent in Charge, Atlanta Field Office. “Today’s sentencings should act as a deterrence to those who think that they can continue to pay bribes in order to get work.”
According to United States Attorney Pak, the charges, and other information presented in court: Elvin R. Mitchell, Jr. serves as the owner and operator of E.R. Mitchell Company, Cascade Building System, LLC., E.R. Mitchell Group, Inc. and EC & WT Construction Company, Inc., d/b/a E.R. Mitchell Construction Co. Richards serves as the owner and/or principal of the construction companies C.P. Richards Construction Co., Inc., and C.P. Richards & Associates, Inc.
In an effort to obtain construction-related contracts with the City of Atlanta, Georgia, Mitchell and Richards conspired to pay and paid an individual to obtain government contracts. From approximately 2010 to August 2015, Mitchell paid over $1,000,000 and Richards paid over $185,000 to an individual in exchange for City of Atlanta contracts, believing that some of the money would be paid to city officials who exercised influence over the contracting process.
Mitchell also laundered the money received from the City of Atlanta by attempting to conceal the source of the money and by attempting to evade federal currency transaction reporting requirements by withdrawing cash in amounts under $10,000.
Mitchell, 63, of Atlanta, has been sentenced to 5 years in prison, 3 years of supervised release, and was ordered to pay $1,120,535 in restitution. On January 25, 2017, Mitchell pleaded guilty to conspiratorial bribery and money laundering.
Richards, 65, of Tucker, Ga., has been sentenced to 2 years and 3 months in prison, 3 years of supervised release, and was ordered to pay $193,000 in restitution. On February 16, 2017, Richards pleaded guilty to conspiratorial bribery
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated this case.
First Assistant United States Attorney Kurt R. Erskine and Assistant United States Attorney Jeffrey W. Davis prosecuted 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.
Cody Hiland Takes Office as United States Attorney for the Eastern District of ArkansasRead the Press Release
LITTLE ROCK—Cody Hiland has taken the oath of office to become the United States Attorney for the Eastern District of Arkansas. Mr. Hiland was nominated by President Donald Trump on June 29, 2017, and confirmed by the U.S. Senate on September 28, 2017. He took the oath of office today at 1:30 p.m. from United States District Court Judge J. Leon Holmes, and began work immediately after the ceremony.
"It is both an honor and a privilege to be chosen to serve as the United States Attorney, and I am eager to begin leading the important work of this office," Mr. Hiland said. "I also look forward to working with the dedicated public servants in our office, our exceptional law enforcement partners on the federal, state, and local levels, and the community. At a time when we are seeing the national crime rate continue to rise, myself and everyone in this office is committed to ensuring safer communities for the citizens of the Eastern District."
As U.S. Attorney, Mr. Hiland is the top-ranking federal law enforcement official in the Eastern District of Arkansas, which includes five divisions and 41 counties within Arkansas, with its primary office in Little Rock. He oversees a staff of 59 employees, including 28 attorneys and 31 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Mr. Hiland, 45, a Conway native, has lived in Arkansas his entire life. He received his J.D. from the William H. Bowen School of Law in Little Rock and his undergraduate degree from the University of Central Arkansas. Prior to assuming his current role, Mr. Hiland was elected prosecuting attorney for the 20th Judicial District of Arkansas in 2010, and re-elected in 2014.
Before beginning a career in law enforcement Mr. Hiland was a partner at Hiland, Thomas & Cox, PLLC; a staff attorney and rural and community liaison for the Arkansas Public Service Commission; the program director for the Arkansas Transitional Employment Board; and a legislative liaison and aide to Gov. Mike Huckabee.
Mr. Hiland will continue to live in Conway with his wife, Jana, and their four children, Claire, Caity, John Reagan, and Ethan.
Mr. Hiland succeeds Patrick C. Harris, who had served as acting U.S. Attorney since Christopher Thyer’s resignation on March 13, 2017.
Clayton Business Owner Pleads Guilty to Employment Tax FraudRead the Press Release
OAKLAND – Restaurant owner Akbar Dawood Arghandiwal pleaded guilty today in federal court to willful failure to account for and pay federal employment taxes announced United States Attorney Brian J. Stretch, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The plea was accepted by the Honorable Jeffery S. White, U.S. District Judge.
In pleading guilty, Arghandiwal, 46, of Clayton, Calif., admitted that from 2008 through 2012, he owned restaurants in Clayton, Lafayette, and Danville. Arghandiwal acknowledged that between January 2010 and December 2012, he knew he was required to withhold federal employment taxes from the wages of his employees, but instead paid those employees in cash and failed to pay employment taxes on those wages. He intentionally did not provide his accountant with complete and accurate information about the wages of his employees in order to conceal such wages and pay less in employment taxes. In total, Arghandiwal failed to pay $90,648 in employment taxes to the Internal Revenue Service. On September 13, 2017, Arghandiwal was charged by information with twelve counts of willful failure to account for and pay over employment taxes, in violation of 26 U.S.C. § 7202. Under the plea agreement, Arghandiwal pleaded guilty to a single count and the remaining counts will be dismissed.
Arghandiwal is currently free on bond. Judge White has scheduled Arghandiwal’s sentencing for January 16, 2018. The maximum statutory penalty for a violation of 26 U.S.C. § 7202 is five years in prison and a fine of $250,000. Additional periods of supervised release, fines, and restitution also may be imposed, however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Jose A. Olivera is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Child Pornographer Sentenced to More Than 10 Years ImprisonmentRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that U.S. District Court Judge John W. DeGravelles sentenced Justin Landry, age 36, of Central, Louisiana, to 128 months in federal prison as a result of his conviction for distribution of child pornography. The Court further sentenced Landry to ten years of supervised release following his term of imprisonment.
On March 30, 2017, Landry pled guilty to distributing and possessing child pornography. As part of his sentence, the Court also ordered Landry to pay restitution to a child portrayed in the child pornography.
Acting United States Attorney Corey Amundson stated, “Protecting our children is one of society’s most important responsibilities. Stopping the distribution of child pornography goes directly toward fulfilling that responsibility. Distributing child pornography proliferates images often depicting horrific child sexual abuse and rape, thus feeding the market and re-victimizing those children who suffered through the abuse. If basic human decency will not deter this conduct, we hope that severe prison sentences will.”
Raymond R. Parmer, Jr., Special Agent in Charge of the New Orleans Field Office of Immigration and Customs Enforcement, stated, “Stopping the distribution of images of the sexual exploitation of children is an important role HSI has in protecting the victims. The coordination with our law enforcement partners remains a priority to bring those that prey on our children to justice.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Department of Homeland Security, Homeland Security Investigations, the Louisiana Attorney General’s Office – Cyber Crime Unit, and the Ascension Parish Sheriff’s Office.
This matter is being prosecuted by Assistant U.S. Attorney Ryan R. Crosswell.
Chief Executive Officer of Armored Vehicle Company Convicted of Defrauding the United StatesRead the Press Release
A federal jury convicted the owner and chief executive officer of an armored vehicle company for his role in a scheme to provide the U.S. Department of Defense with armored gun trucks that did not meet ballistic and blast protection requirements set out in the company’s contracts with the United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Rick A. Mountcastle of the Western District of Virginia; Special Agent in Charge Adam S. Lee of the FBI’s Richmond, Virginia Field Office and Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement.
William Whyte, 72, of King City, Ontario, the owner and CEO of Armet Armored Vehicles of Danville, Virginia, was found guilty after a two-week trial of three counts of major fraud against the United States, three counts of wire fraud and three counts of criminal false claims. Whyte was charged by an indictment in July 2012. Following the verdict, Senior U.S. District Judge Jackson L. Kiser of the Western District of Virginia, who presided over the trial, remanded Whyte into custody pending a full bond hearing. A sentencing date has not yet been scheduled.
Evidence at trial demonstrated that Whyte executed a scheme to defraud the United States by providing armored gun trucks that were deliberately underarmored. According to the trial evidence, Armet contracted to provide armored gun trucks for use by the United States and its allies as part of the efforts to rebuild Iraq in 2005. Despite providing armored gun trucks that did not meet contractual specifications, Whyte and his employees represented that the armored gun trucks were adequately armored in accordance with the contract, the evidence showed. Armet was paid over $2 million over the course of the scheme, including an $824,000 advance payment that the United States made after Whyte personally promised the United States that he would use the money in furtherance of the contract, the evidence showed.
The case was investigated by DCIS and the FBI. The case is being prosecuted by Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Heather Carlton of the Western District of Virginia.
Charleston man pleads guilty to receiving child pornographyRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a child pornography crime, announced United States Attorney Carol Casto. Jeffrey Scott Beard, 37, entered his guilty plea to receiving child pornography.
Beard admitted that on October 23, 2016, he received images of prepubescent minors engaged in sex acts. The images were received on Beard’s computer and thumb drives located at his residence in Charleston. The investigation revealed that Beard was using a peer-to-peer file sharing program to download, receive, and distribute images and videos of child pornography. Beard further admitted to possessing over 600 images and videos of minors engaged in sex acts.
Beard faces at least five and up to 20 years in federal prison when he is sentenced on January 11, 2018. Upon his release from prison, he will be required to serve a term of supervised release of at least five years and up to life. He will also be required to register as a sex offender.
The FBI, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Burnham Man Pleads Guilty to Child Pornography ChargeRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that David L. Cook, 60, of Burnham, Maine, pleaded guilty today in U.S. District Court to using the internet to access and view child pornography. Cook was indicted in May 2017.
Court records reveal that in August 2016, the Maine State Police Computer Crimes Unit (MCCU) received a report from Microsoft that a user had uploaded an image of child pornography. Federal and state officers obtained a physical address for that user, executed a warrant at that address, and seized the defendant’s computer. The MCCU’s forensic examination of the computer revealed 30 images of child pornography and that the defendant searched the internet for child pornography on dozens of occasions between March and August, 2016.
Cook faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the MCCU and by Immigration and Customs Enforcement’s Homeland Security Investigations.
Brothers Sentenced to Prison for Defrauding U.S. Department of DefenseRead the Press Release
PITTSBURGH – Thomas G. Buckner, 66, of Gibsonia, Pa., and his brother, John. P. Buckner of Lyndora, Pa., have been sentenced in federal court to 30 months incarceration and a $500,000 fine, and 24 months incarceration and a $300,000 fine, respectively, on charges of major fraud against the U.S. Department of Defense and income tax evasion violations, United States Attorney Soo C. Song announced today.
According to the information presented to the court, the Buckner brothers were 50/50 owners of Ibis Tek, LLC. Ibis Tek’s main office was located at 912 Pittsburgh Street, in Butler, Pennsylvania, and it had an office at Ibis Tek Victory Road facility, 220 South Noah Drive, in Saxonburg, Pennsylvania. Ibis Tek manufactured both military and commercial products but specialized in the development of transparent armor and accessory products for tactical and military combat vehicles. Ibis Tek itself was not charged with any violations.
TACOM, located in Warren, Michigan, was responsible for letting and overseeing contracts on behalf of the U.S. Department of Defense, including contracts concerning High Mobility Multipurpose Wheeled Vehicle (Humvees). Ibis Tek had a subcontract to produce Vehicle Emergency Escape Window (VEE Window) Kits for Humvees. The Buckners inflated Ibis Tek’s costs to manufacture the VEE Window kits by creating Alloy America, LLC, (Alloy) a company that was co-located at Ibis Tek that the Buckners controlled, by using Alloy to purchase the frames in China for $20 per frame, and by using false invoices from Alloy to make it appear that Ibis Tek paid $70 per frame. In addition, the Buckners sold scrap aluminum collected in the manufacturing process but failed to credit that money to TACOM. The losses to TACOM were $6,085,709.
The income tax evasion charges against the Buckner brothers arose from not reporting the cash from sales of scrap aluminum, and for taking unallowable business deductions described below. Thomas Buckner repaid the I.R.S. more than $940,000 in restitution, penalties and interest; John Buckner repaid more than $980,000 in restitution, penalties and interest.
The contract fraud violations described above formed the basis for False Claims Act charges against the Buckner brothers brought by the Affirmative Civil Enforcement (ACE) Unit of the U.S. Attorney’s Office. Attorneys on both sides agreed on a civil settlement of $12,171,580.00. On Friday, October 6, 2017, the Buckner brothers made the final payment to the Department of the Treasury on their civil settlement.
Acting U.S. Attorney Song said, “The imposition of years of imprisonment, coupled with more than $2.7 million in restitution and fines, justly resolves the multi-year investigation into the $6 million fraudulent scheme of these defendants against the United States.”
There were three related guilty pleas entered in this investigation and each of these defendants is awaiting sentencing.
Harry H. Kramer, 52, of Wexford, Pennsylvania, pleaded guilty to one count of fraud for his role as CFO of Ibis Tek in the above described scheme against TACOM. Counts Two and Three charged him with filing false returns for Ibis Tek for 2009 and 2010.
David S. Buckner, of Warren, Michigan, (no relation to Thomas or John Buckner) pleaded guilty to a one-count Information charging him with impeding the IRS by acting as a financial intermediary who received and then paid out money from Ibis Tek, LLC to Anthony Shaw, for the purpose of concealing that the monies were income of Shaw.
Anthony A. Shaw, 55, of Rochester Hills, Michigan, pleaded guilty to a five-count Information. Shaw, formerly a civilian employee at TACOM, was a Deputy Project Manager responsible for directing development of and managing government contracts for combat vehicle systems such as Humvees. Shaw was charged in Counts One and Two with demanding and receiving a total of $1,055,500 of illegal gratuities paid by checks, cash and wire transfers by Thomas Buckner to and through David Buckner’s company, D & B Cycle Parts and Accessories, for Shaw’s benefit. Counts Three and Four charged Shaw with income tax evasion for 2009 and 2010 for not reporting the illegal gratuities. In Count Five Shaw was charged with making false statements when he denied that he had socialized with Thomas Buckner and John Buckner, and denied that he had traveled in a car, boat and an airplane owned by Thomas Buckner or John Buckner.
These cases were investigated by the Special Agents of the Department of Defense, Defense Criminal Investigative Service, the Internal Revenue Service, Criminal Investigation, and the U.S. Army Criminal Investigation Division.
"IRS-Criminal Investigation provides financial investigation expertise in our work with our law enforcement partners," said IRS Acting Special Agent in Charge Ed Wirth. "Pooling the skills of each agency makes a formidable team as we investigate allegations of wrong-doing. Today's sentences demonstrate our collective efforts to enforce the law and ensure public trust."
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the Special Agents of the Department of Defense, Defense Criminal Investigative Service, the Internal Revenue Service, Criminal Investigation, and the U.S. Army Criminal Investigation Division for the investigation leading to the successful prosecution of these defendants.
Bronx Man Sentenced in Manhattan Federal Court to over 12 Years in Prison for Trafficking Approximately 40,000 Oxycodone Pills and CocaineRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MARIO HERRERA, a/k/a “Mo,” was sentenced today to 151 months in prison for conspiring to distribute cocaine and oxycodone. HERRERA pled guilty to one count of narcotics conspiracy on June 2, 2017, before U.S. Magistrate Judge Barbara C. Moses. U.S. District Judge Loretta A. Preska imposed today’s sentence.
Acting U.S. Attorney Joon H. Kim said: “Mario Herrera led a massive drug trafficking organization that stole and forged prescriptions to illegally distribute an estimated 40,000 oxycodone pills. Herrera’s contribution to the ongoing opioid crisis has now earned him over 12 years in federal prison. We commend the hard work of the DEA and ATF on this important case.”
According to the Indictment and other documents filed in federal court, statements made at various proceedings in this case, and materials presented at the sentencing hearing:
From in or about late 2012 up to and including in or about December 2015, HERRERA was the leader of a drug trafficking organization (the “Herrera DTO”) that distributed large quantities of oxycodone and cocaine in the Bronx and elsewhere. As part of his plea, HERRERA admitted his involvement in the distribution of the equivalent of 40,000 oxycodone 30-milligram pills. In order to obtain the oxycodone that the Herrera DTO distributed, HERRERA, among other things, obtained stolen prescription pads, fabricated oxycodone prescriptions, and then pretended to be a doctor when called by pharmacies to verify the prescriptions. In addition, HERRERA purchased oxycodone from legitimate prescription holders and others in his community for redistribution. HERRERA also coordinated the procurement and distribution of cocaine. As part of this cocaine distribution, HERRERA traveled to Mexico, Texas, and elsewhere.
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In addition to the prison term, HERRERA, 32, of the Bronx, New York, was sentenced to seven years of supervised release.
Mr. Kim praised the outstanding investigative work of the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives in this investigation.
This prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Gina Castellano, Jordan Estes, and Jason A. Richman are in charge of the prosecution.
Andover Nanny Sentenced for Stealing More than $100,000Read the Press Release
BOSTON – An Andover woman was sentenced today in federal court in Boston for stealing more than $100,000 from her employer.
Stacy Fortunato, 36, was sentenced by U.S. Senior District Judge Mark L. Wolf to 15 months in prison, three years of supervised release, and ordered to pay restitution in the amount of $112,806. In June 2017, Fortunato pleaded guilty to one count of bank fraud and one count of wire fraud.
While employed as a nanny from November 2014 to February 2016, Fortunato’s employer provided her with a credit card to make purchases solely related to her work duties. Instead, Fortunato made unauthorized charges and cash withdrawals using the credit card on hundreds of occasions, totaling approximately $86,000. To conceal what she had done, Fortunato made unauthorized electronic payments from her employer’s bank account to her employer’s credit card account. Fortunato also wrote checks for her own personal benefit on her employer’s bank account, forging her employer’s signature to the checks before cashing them. In total, Fortunato defrauded her employer of about $113,000.
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. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit prosecuted the case.
ATF, U.S. Attorney's Office teams up with local law enforcement to take down crews breaking into gun storesRead the Press Release
DENVER – Two Denver men were arrested late September for the August 10, 2017 theft of firearms from the Cabela’s in Lone Tree, Colorado, Acting U.S. Attorney Bob Troyer and ATF Denver Division Special Agent in Charge Debora Livingston announced. A third man also charged with the Cabela’s theft is currently in state custody on unrelated charges. These arrests as well as many others are part of local law enforcement’s efforts, working with the ATF and the Colorado U.S. Attorney’s Office, to address multiple burglaries of gun stores throughout Colorado. To date, 10 individuals have been charged federally for theft of firearms from federal firearms licensees. Those cases are pending.
“These are not property crimes. These are life and death crimes. Stolen guns go straight into the hands of criminals, not hunters and target shooters,” said Acting U.S. Attorney Bob Troyer. “The people who bring this violence into our communities will be introduced to federal justice, up close and personal, for a long time.”
“Investigating these thefts is ATF’s top priority in Colorado,” said ATF Special Agent in Charge Debora Livingston. “We will be relentless. If someone is involved, we will find them. A potential ten-year prison sentence is a significant punishment for two minutes of crime.”
In 2017 alone, over 400 firearms have been stolen. Arrests for those thefts also have been made in connection with thefts from South Platte Tactical gun store in Adams County, Top Dollar Pawn Shop in El Paso County, Best Way Sales in Baca County, Shooter Ready in Jefferson County, Dragon Arms in El Paso County, and Parker Arms in Jefferson County. Those charged by indictment with thefts from those firearm licensees include:
Cabela’s
On August 10, 2017, Darnell Hudgens, age 2,3 of Denver, Colorado, Giavanni Edward Miles, age 21, residence unknown, and Kendall Crockett, age 23, of Denver, Colorado, with others, conspired to steal firearms from Cabela’s in Douglas County, City of Lone Tree. On August 21, 2017, those same defendants stole firearms from the Cabela’s in Thornton, Colorado. The defendants are charged by indictment with possessing stolen firearms, conspiracy to steal firearms from a federal firearm licensee, and disposal of the weapons.
South Platte Tactical
On January 8, 2017, Gaven Alfonso Orozco, age 20, of Adams County, Colorado, and Jordan Martinez, age 19, of Denver, Colorado, conspired to and stole firearms from the South Platte Tactical gun store in Adams County. The defendants broke into the store and removed the firearms. Those involved in the theft stole a vehicle, drove to the gun store location, stole the firearms, and fled. The indictment states that on January 13, 2017, Orozco possessed, concealed, stored and disposed of stolen firearms. The firearms were then distributed amongst members of the conspiracy. The defendants face charges including possession of stolen firearms, conspiracy to steal firearms, theft of firearms from a federal firearms licensee.
Top Dollar Pawn
On July 10, 2017, Adam Paul Mowery, age 41, of Colorado Springs, Colorado, stole firearms from Top Dollar Pawn Shop in El Paso County. He then possessed, concealed, stored and disposed of the stolen firearms. On July 25, 2017, Cole Truitt Anderson, age 26, of Florissant, Colorado, possessed, concealed, stored and disposed of stolen firearms. Anderson also possessed a stolen sawed-off shotgun. Both defendants face charges of possession of stolen firearms, possession of firearms by a prohibited person, possession of unregistered firearms.
Dragon Arms
On August 27, 2017, Jennifer Scoggin, Camron Specht, Ryan Sharpe, and Gian Carlos Vance, allegedly stole firearms from Dragon Arms in El Paso County, Colorado, where defendants stole multiple handguns, shotguns, and rifles. The defendants face theft of firearms from a federal firearms licensee.
Best Way Sales
On August 10, 2017, Calvin Terrell Stafford, age 23, of Warrensburg, Missouri, and Napoleon Williams, age 23, of St. Louis, Missouri, conspired to steal firearms from Best Way Sales, located in Baca County, in the city of Springfield, Colorado. They traveled from Missouri to Colorado, identified and cased Best Way Sales, and on August 11, 2017, broke into the store and stole firearms. They then drove the stolen firearms back to Missouri. The defendants face charges of conspiracy, theft of firearms from an federal firearms licensee, and possession of stolen firearms.
Shooter Ready
On November 10, 2016, Viet Trinh, age 18 of Thornton, Colorado, possessed, concealed, stored and disposed of stolen firearms. Trinh conspired with others to steal firearms from Shooter Ready gun store in Denver. After the weapons were stolen, they were distributed to members of the conspiracy. Trinh was the get-away-driver for the Shooter Ready burglary. On December 17, 2016, Trinh conspired with others to steal firearms from Parker Arms in Jefferson County, City of Wheat Ridge. He again was the get-away-driver. He faces possession of stolen firearms, conspiracy, and theft of firearms from a federal firearms licensee.
Aurora Police Department, Brighton Police Department, Castle Rock Police Department, Colorado Bureau of Investigation, Colorado Metro Auto Theft Task Force, Denver Police Department, Douglas County Sheriff’s Office, Edgewater Police Department, Jefferson County Sheriff’s Office, Lakewood Police Department, Littleton Police Department, Lone Tree Police Department, Parker Police Department, Thornton Police Department, Westminster Police Department, Wheat Ridge Police Department, Colorado Springs Police Department, El Paso County Sheriff’s Office, Springfield Police Department, and Baca County Sheriff’s Office have all assisted with gun store investigations.
The defendants are being prosecuted either by Assistant U.S. Attorney Colleen Covell and U.S. Attorney Timothy Edmonds.
The penalties for conviction for these crimes range from not more than 5 years in federal prison to not more than 10 years in federal prison per count. Defendants also face not more than a $250,000 fine.
In addition to those listed above, a number of individuals have been arrested and are being prosecuted by state authorities.
The charges contained in the indictments mentioned above are allegations, and the defendants are presumed innocent unless and until proven guilty.
Sunday 8 October 2017
Attorney General Sessions Statement on President Trump's Immigration Priorities AnnouncementRead the Press Release
Attorney General Jeff Sessions today issued the following statement on restoring the rule of law to a lawful immigration system:
“For decades the American people rightly have pleaded with their government for a lawful system of immigration. They have asked for secure borders and an immigration system that serves the national interest.
“Unfortunately, over the last several decades respect for the rule of law has broken down and immigration enforcement has been sacrificed for the sake of political expediency. This has made us less secure and it cannot stand.
“Now President Trump has put forth a series of proposals that will restore the rule of law to our immigration system, prioritize America's safety and security, and end the lawlessness.
"These are reasonable proposals that will build on the early success of President Trump's leadership. This plan will work. If followed it will produce an immigration system with integrity and one in which we can take pride. Perhaps the best result will be that unlawful attempts to enter will continue their dramatic decline.
“I applaud President Trump and urge Congress to listen to the American people and swiftly pass these commonsense proposals into law. The Department of Justice stands ready to continue making our neighborhoods and communities safe and secure again.”
Saturday 7 October 2017
Missouri Man Sentenced to 180 Months ImprisonmentRead the Press Release
FORT WAYNE – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that, Timothy Gilmore, age 37, of Doniphan, Missouri, was sentenced, before United States District Court Chief Judge Theresa Springmann after being convicted of using a computer to entice of a minor to engage in sexually explicit conduct.
Gilmore was sentenced to 180 months imprisonment and 5 years of supervised release.
According to documents filed in this case, between January 8, 2016 and April 18, 2016, Gilmore began communicating with a 16 year old juvenile from Fort Wayne, Indiana, over social media. The communications transitioned into telephone communications. During the course of the communications, Gilmore solicited and enticed the juvenile to engage in sexually explicit conduct and to produce videos and still images of said conduct and to transmit the videos and images to him via the internet. Gilmore then reposted the transmitted images on his on-line blog.
This case was the result of an investigation by the Federal Bureau of Investigation and the Fort Wayne Police Department and was handled by Assistant United States Attorney Stacey R. Speith.
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Friday 6 October 2017
Zia Pueblo Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Terrence Shije, 37, an enrolled member and resident of Zia Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to a domestic assault by a habitual offender charge.
Shije was arrested on June 2, 2017, on a criminal complaint charging him with domestic assault of an intimate partner by a habitual offender on May 16, 2017. According to the complaint, Shije caused the victim to suffer bruising and swelling to her face.
Shije was indicted on June 28, 2017, and was charged with assault of an intimate partner resulting in substantial bodily injury and domestic assault by a habitual offender. According to the indictment, Shije committed the crime on May 16, 2017, on Zia Pueblo in Sandoval County, N.M. Shije was charged as a habitual offender based on his two prior domestic violence convictions in the Pueblo of Zia Tribal Court in June 2015 and Aug. 2016.
During today’s proceedings, Shije pled guilty to Count 2 of the indictment charging him with domestic assault by a habitual offender. In entering the guilty plea, Shije admitted that on May 16, 2017, he assaulted the victim by slapping her face and punching her eye because he did not want her to leave the residence. Shije further admitted that as the result of the assault, the victim, who was then pregnant, suffered swelling, bumps and bruising near her eye and eye socket. Shije also admitted that he previously had been convicted on battery on a household member charges in Zia Tribal Court in June 2015 and Aug. 2016.
At sentencing, Shije faces a maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA, Office of Justice Services. The case is being prosecuted by Special Assistant U.S. Attorney Lucy B. Solimon pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Winner Man Charged with Felon in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Winner, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Anthony Ray Martinez, Jr., age 36, was indicted on September 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 25, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 1, 2015, Martinez, having previously been convicted of a felony, did knowingly possess a firearm.
The charge is merely an accusation and Martinez is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson is prosecuting the case.
Martinez was released on bond pending trial. A trial date has not been set.
Wilmington Man Sentenced to Incarceration for Role in Straw Purchasing HandgunsRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced that Aleem Shabazz, age 27, of Wilmington, Delaware, was sentenced this week by U.S. District Court Chief Judge Leonard P. Stark to 47 months incarceration. On February 4, 2016, after a four-day jury trial, Shabazz was found guilty of Being a Felon in Possession of a Firearm and two counts of Making False Statements to a Firearms Dealer.
According to evidence presented at trial and statements made in documents filed in court, in January of 2015, Shabazz, a five-time felon, induced his girlfriend to straw purchase two semi-automatic pistols for him. The firearms were straw purchased when the girlfriend represented to Cabela’s, a licensed firearms dealer, that she was the actual purchaser. In fact, she knew Shabazz was the actual purchaser. Shabazz directed his girlfriend which guns to purchase and gave her the money to pay for them. Police recovered one of the pistols, with an obliterated serial number.
Following the sentencing, Acting U.S. Attorney Weiss stated, “This sentence should serve as a deterrent for any felons who would attempt to obtain firearms by straw purchase, or otherwise. All parties to an illegal firearms transaction should be on notice that they will be prosecuted to the fullest extent of the law.”
Daniel L. Board, Jr., Special Agent in Charge of the Baltimore Office of the Bureau of Alcohol, Tobacco and Firearms said, “ATF will continue to work with our law enforcement and industry partners to stem the flow of firearms from legal commerce into the hands of convicted felons, violent criminal organizations or any person who has an intent to negatively impact the safety of our communities and neighborhoods."
This case was investigated by special agents of the ATF-Wilmington Office and prosecuted by Assistant U.S. Attorneys Whitney Cloud and Edmond Falgowski.
Wife of Former Representative Pleads guilty to Paying Kickbacks to Former Corrections CommissionerRead the Press Release
Jackson, Miss – Teresa Malone, 56, of Carthage, Mississippi, entered a plea of guilty to paying kickbacks to former Mississippi Department of Corrections Commissioner (MDOC) Christopher B. Epps in exchange for receiving a consulting agreement involving the MDOC and its operations, announced Acting United States Attorney Harold Brittain and FBI Special Agent in Charge Christopher Freeze.
During her guilty plea, Malone admitted to receiving $225,000.00 from a consulting agreement with an out of state contractor arranged by former MDOC Commissioner Chris Epps. Malone received $5,000.00 a month out of which she paid Epps varying amounts of $1,000.00 to $1,750.00 per month. The scheme lasted from October of 2010 through July of 2014.
Malone will be sentenced on January 10, 2018, by United States District Judge Henry T. Wingate. She faces a maximum penalty of 10 years in prison and a $250,000.00 fine.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Criminal Chief Darren LaMarca, Assistant United States Attorney Patrick A. Lemon, and financial analyst Kim Mitchell.
Virginia Man Pleads Guilty to 2009 Murder of Pamela Butler in Northwest WashingtonRead the Press Release
WASHINGTON – Jose Rodriguez-Cruz, 52, of Arlington, Va., pled guilty today to a charge of second-degree murder for the 2009 strangulation murder of his girlfriend, Pamela Butler, at her home in Northwest Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Rodriguez-Cruz has been in custody since his arrest on April 8, 2017. His guilty plea, which was contingent upon the Court’s approval, called for an agreed-upon 12-year prison sentence, to be followed by five years of supervised release. The guilty plea also requires Rodriguez-Cruz to provide law enforcement with the location of Ms. Butler’s body, which was never found. The Honorable Hiram E. Puig-Lugo accepted the plea today and sentenced the defendant accordingly.
If Rodriguez-Cruz refuses to assist law enforcement in locating Ms. Butler’s body, or if he misleads police or otherwise does not make his best efforts to provide the location, the plea agreement is to be declared null and void, and he will face the original charge in the case of first-degree premeditated murder.
According to a proffer of facts submitted at the plea hearing, Rodriguez-Cruz and Ms. Butler, 47, were involved in a romantic relationship. On Feb. 13, 2009, at approximately 8:20 p.m., Rodriguez-Cruz entered Ms. Butler’s home in the 5800 block of Fourth Street NW. He turned off her home security alarm system. A few hours after entering the house, while in the basement area, he and Ms. Butler had an argument concerning the defendant’s job and financial status, which Ms. Butler believed he was not doing enough to improve or elevate.
During the argument, Rodriguez-Cruz punched Ms. Butler in the face with his fist. She then fell to the floor. At that point, as stated in the proffer, Rodriguez-Crus straddled Ms. Butler’s body and strangled her with his hands around her neck, until she died from asphyxia.
Later that night and early the following morning, Rodriguez-Cruz turned off the outside motion sensor lights of Ms. Butler’s home security system. He then carried Ms. Butler’s body to the first floor area and lowered her body out of a window, the proffer states. He then carried the body to his car, which was parked on nearby Oglethorpe Street NW. Next he removed several objects from Ms. Butler’s home. Then, he drove away and disposed of the body.
Over the next two days, according to the proffer, Rodriguez-Cruz came to Ms. Butler’s home and continued to take items out of the house. On Feb. 16, 2009, he disposed of Ms. Butler’s cellphone in an effort to avoid detection for this crime.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of the officers, detectives and other personnel who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Thomas A. Gillice, Paralegal Specialist Alesha Matthews-Yette, and Intelligence Analyst Zachary McMenamin. Finally, they commended the work of Assistant U.S. Attorneys Deborah Sines and Glenn Kirschner, who investigated and prosecuted the case.
U.S. Attorney’s Office Prosecuting County’s First Carfentanil, 4ANPP CasesRead the Press Release
SAN DIEGO – The U.S. Attorney’s office is prosecuting the first local case involving the seizure of carfentanil, the relatively new synthetic opioid that is 100 times stronger than Fentanyl and 10,000 times more potent than morphine.
The defendant, Sky Gornik, is accused of trafficking in carfentanil, fentanyl, ketamine and other drugs through the U.S. Mail over a period of several years.
During a search of Gornik’s house in Clairemont, federal agents and local police found a wide variety of drugs, including a small baggie containing 1.77 grams of carfentanil - which experts say equates to about 86,000 fatal doses.
Agents also seized gel tablets containing fentanyl and methamphetamine. Agents learned that Gornik ordered these fentanyl gel tablets (approximately 600 units per week over the past two years) over the dark web from a dealer in Oklahoma. The Oklahoma dealer purchased the fentanyl directly from China.
Federal agents seized $1.2 million in digital currency in that case.
The U.S. Attorney’s Office is also prosecuting its first case involving the fentanyl precursor chemical known as “4ANPP.” This is the primary ingredient for manufacturing fentanyl. The 4ANPP precursor was mailed from China directly to locations in San Ysidro. Traffickers typically take the product from the U.S. into Mexico, where fentanyl is manufactured. Once the traffickers manufacture the fentanyl with the 4ANPP, they attempt to smuggle the fentanyl back into the United States.
In the precursor case, a former Border Patrol agent, Cesar Daleo, was arrested and charged with drug crimes after he went to a post office box in San Ysidro to pick up a package containing 4ANPP. But unbeknownst to the defendant, authorities were on to him. Customs and Border Protection agents at Los Angeles International Airport had intercepted the original package, which originated in China and was bound for San Ysidro. Homeland Security Investigations agents then replaced the 4ANPP with a harmless substance and waited for someone to pick it up.
Daleo was arrested soon after he picked up the package. According to charging documents, Daleo had picked up packages at the same location 13 previous times in the last year.
One kilogram of precursor 4ANPP was seized that day, but that amount could make approximately 25 kilograms of fentanyl in the possession of Mexican Drug Trafficking Organizations’ production labs.
DEFENDANT Case Number 17cr2796
Sky Justin Gornik Age: 37 San Diego
SUMMARY OF CHARGES
Conspiracy to distribute fentanyl, in violation of 21 U.S.C. 841(a)(1), 846
Maximum Penalty: 20 years in custody; 3 years of supervised release; $250,000 fine; $100 special assessment
Possession with intent to distribute carfentanil, in violation of 21 U.S.C. 841(a)(1)
Maximum Penalty: 20 years in custody; 3 years of supervised release; $250,000 fine
Possession with intent to distribute ketamine, in violation of 21 U.S.C. 841(a)(1)
Maximum Penalty: 20 years in custody; 3 years of supervised release; $250,000 fine
DEFENDANT Case Number
Cesar Daleo Age: 47 San Diego
SUMMARY OF CHARGES
Conspiracy to possess listed chemical (4ANPP) knowing or having reasonable cause to believe that the listed chemical would be used to manufacture a controlled substance, fentanyl, in violation of 21 U.S.C. 841 (c) (2) and 846.
Maximum Penalty: 20 years in custody; 3 years of supervised release; $250,000 fine
Attempted possession of listed chemical (4ANPP) knowing or having reasonable cause to believe that the listed chemical would be used to manufacture a controlled substance, fentanyl, in violation of 21 U.S.C. 841 (c) (2) and 846;
Maximum Penalty: 20 years in custody; 3 years of supervised release; $250,000 fine
AGENCIES
Homeland Security Investigations
United States Postal Inspectors
San Diego Police Department
Drug Enforcement Administration
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Sentenced to 11 and 7 Years in Federal Prison for $4.6 Million Internet Romance FraudRead the Press Release
Oklahoma City, Oklahoma – KEN EJIMOFOR EZEAH, 35, and AKUNNA BAIYINA EJIOFOR, 33, have been sentenced to 11 and 7 years in federal prison respectively for their roles in a fraudulent romance scheme involving victims throughout the United States, announced Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma.
On February 16, 2016, a grand jury indicted Ezeah and Ejiofor for conspiracy and wire fraud. According to the indictment, the scheme involved using false profiles to open accounts on online dating web sites and then courting victims by pretending to be successful financial advisors or affiliated with charitable causes. Over time, through supposedly romantic relationships, the defendants caused victims to share personal information about their finances and then encouraged victims to wire them money on the pretext of managing their investments. The conspirators actually kept the money for personal use. The two wire fraud counts concerned wire transfers from a victim in Oklahoma City that totaled more than $1 million. On June 22, 2016, a grand jury returned a superseding indictment that added one count of aggravated identity theft and 16 counts of wire fraud relating to additional victims.
Both Ezeah and Ejiofor were arrested in Houston, Texas, on January 27, 2016. Ezeah has been in federal custody since that time. He pled guilty to conspiracy on February 1, 2017. Ejiofor, who was released on bond after her arrest, exercised her right to a jury trial and was convicted on all counts on March 30, 2017. She has been in federal custody since her conviction.
Today United States District Court Judge Timothy D. DeGiusti sentenced Ezeah to 11 years in prison and three years of supervised release. Ezeah was also ordered to pay $4,678,302.79 in restitution to ten individual victims. At a separate sentencing on September 28, 2017, Ejiofor received 7 years in prison and three years of supervised release. She owes the same restitution to the same ten victims, jointly and severally with Ezeah. Reference is made to public filings for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Timothy W. Ogilvie.
Two Largo Ministers Plead Guilty to Illegal Reentry ChargesRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Anner Javier Maldonado-Reyes (39, Largo) and Maria Guadalupe Maldonado (38, Largo) have both pleaded guilty to illegal reentry into the United States. Each faces a maximum penalty of 20 years in federal prison. A sentencing date has not been set.
According to court records, Maldonado-Reyes and Maldonado have admitted to being citizens of Honduras, to illegally reentering the United States after prior deportations, and to having no legal status in the United States. Maldonado-Reyes was removed from the United States in February 1999 and in February 2008. His 1999 removal came after a conviction in Los Angeles County, California, for possession of cocaine base for sale.
Maria Guadalupe Maldonado was removed from the United States in October 1996, following a conviction in Los Angeles County for transportation/sale of a controlled substance.
Government records indicate that Anner and Maria Maldonado are the founders of, and employed as ministers in, the church Ministerio Internacional Jesucristo Es Mi Refugio, located at 1550 Belcher Road South in Largo.
This case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, with assistance from U.S. Citizenship and Immigration Services. It is being prosecuted by Assistant United States Attorney Frank Murray.
Third Man Sentenced on Dunbar Armored Truck RobberyRead the Press Release
St. Louis, MO – Jerry Bean was sentenced to 96 months in prison for the armed robbery of a Dunbar Armored truck.
On April 4, 2016, Jerry Bean, Charles Johnson and Shayne Kier Jones robbed Dunbar Armored Company shortly after a money pickup. The money was taken from a Dunbar Armored employee at gun point. Jones was employed by Dunbar, and his duty was to exit the armored truck to do the pickup and delivery of US currency. A second employee (CT) was assigned as the driver. At the end of the day’s route, CT was told by Jones that he, Jones would drive the armored truck back to Dunbar. Jones then decided to stop for gas. After getting the gas, Jones acted like he was lost and stopped the truck at Antelope and Switzer in the City of St. Louis. He got out of the truck and two individuals with guns rushed him and demanded the money in the truck. As threats of violence were being made, Jones began to throw the money bags out the back door to Johnson and Jerry Bean. CT said that there was a white Buick vehicle right next to the armored car. CT and Jones then drove the truck from the scene of the armed robbery.
On April 14th, the owner of the white vehicle, Jerry Bean, which was used in the robbery was interviewed and finally admitted his involvement in the robbery. He told law enforcement that Johnson contacted him with the concept of the robbery. Johnson told Bean that he had a cousin who worked for the armored truck company and would help in the robbery. Bean’s role was to be the driver of the getaway car, the white car. Johnson provided the Dunbar shirts used in the robbery, skull caps and sunglasses. On April 4th, Bean and Johnson drove to the site they had picked out for the robbery. Jones drove the armored truck to that location, got out of the truck which allowed Bean and Johnson to approach and demand money. Bean did not know that Jones was the inside employee until he saw him outside the truck. Bean realized that he had seen Jones as a customer at Bean’s work. Johnson also worked at the same place. After the robbery, Bean and Johnson drove the white car loaded with the stolen money to Bean’s residence where the money was transferred to another car. They then drove to Bean’s mother’s house and divided the stolen money into three shares. As Jones was still being interviewed by law enforcement, Johnson took two shares of the stolen money for himself and Jones.
Bean, 26, of St. Louis, pleaded guilty on July 6, 2017, to one felony count of conspiracy to interfere with commerce by threats of violence and on one felony count of possession and brandishing a firearm in furtherance of a crime. He appeared today for sentencing before United States District Judge Catherine D. Perry.
Johnson and Jones were both sentenced in April 2017 to 141 months each.
This case was investigated by the St. Louis Metropolitan Police Department and Federal Bureau of Investigation.
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Texas Woman Pleads Guilty to Interstate Travel for the Purpose of Engaging in Illicit Sexual Conduct with 15-year-old Franklinton MinorRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MARTHA OJEDA, age 41, of Pflugerville, Texas, pled guilty as charged yesterday to a one-count Bill of Information charging her with interstate travel with intent to engage in illicit sexual conduct.
According to the court documents, in late February 2017, OJEDA met the minor, a fifteen-year-old boy who resided in Franklinton, Louisiana, on a social networking website. From late February until early April, OJEDA and the minor engaged in sexually explicit correspondence, including simulating sexual intercourse and other sexual contact and plans to engage in sexual acts in the future, on numerous occasions. During the correspondence, OJEDA requested and received sexually explicit images and videos of the minor via a social media-based instant messaging application. In early April, OJEDA and the minor made plans for OJEDA to travel to Louisiana to pick up the minor and return to Texas together for the purpose of engaging in sex and spending the rest of their lives together. On about April 8, 2017, OJEDA traveled by commercial bus and then by taxi from Texas to the minor’s Franklinton home. OJEDA and the minor then travelled back to New Orleans, where they stayed in a hotel room together and engaged in sexual intercourse. On about April 9, 2017, OJEDA and the minor travelled via commercial bus from New Orleans to Houston for the purpose of engaging in living together in a romantic relationship. OJEDA and the minor then moved to Pflugerville, where they lived together until the minor was recovered by Special Agents with the Federal Bureau of Investigation on May 12, 2017.
OJEDA faces a maximum term of imprisonment of not more than 30 years followed by between 5 years and a lifetime of supervised release, and a $250,000 fine. OJEDA may also be required to register as a sex offender. U.S. District Judge Jane Triche Milazzo set sentencing for December 14, 2017.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Tampa Man Pleads Guilty to Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Antwan Miller (38, Tampa) has pleaded guilty to theft of government funds and aggravated identity theft. He faces a maximum penalty of 10 years in federal prison for the theft charge, and a mandatory two-year, consecutive term for the identity theft offense. A sentencing date has not yet been set.
According to facts presented at the plea hearing, between January 2012 and September 2014, Miller was involved in a scheme to file false and fraudulent income tax returns with the Internal Revenue Service (IRS) in order to generate the deposit of large refunds onto debit cards that he possessed and controlled. The investigation revealed that the IRS had received fraudulent tax returns in the names of victim-taxpayers that resulted in the delivery of almost $400,000 in fraudulent income tax refunds onto debit cards controlled by Miller and his co-conspirators. They then withdrew the money from ATMs and the Seminole Hard Rock Casino. Several of Miller’s co-conspirators have already pleaded guilty to similar charges and are awaiting sentencing.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation, with assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
St. Peters, Missouri, Woman Sentenced to 24 Months in Prison for Bank RobberyRead the Press Release
DAVENPORT, IA – On Friday, October 6, 2017, United States District Court Judge Rebecca Goodgame Ebinger sentenced Bridgette Durborow, 48, of St. Peters, Missouri, to 24 months in prison for Bank Robbery, announced United States Attorney Marc Krickbaum. Durborow was also ordered to serve three years of supervised release following her imprisonment and pay $100 to the Crime Victim’s Fund.
On June 8, 2017, Durborow pleaded guilty to the charges, which arose from an investigation of the robbery immediately after it occurred. Durborow admitted that she drove Peter Lundberg to the Bank of the West in Coralville, Iowa, on April 20, 2017. Durborow waited in the car while Lundberg robbed the bank, taking approximately $1,080. The two were apprehended a short time later traveling eastbound on Interstate 80 near Davenport. Durborow admitted that the two drove around other eastern Iowa cities, including Cedar Rapids, Marion, and Iowa City, looking for a bank to rob.
Peter Lundberg pleaded guilty on September 1, 2017. He will be sentenced on January 8, 2018, at 1:00pm.
This matter was investigated by the Coralville Police Department and the Federal Bureau of Investigations. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
St. Francis Man Found Not Guilty of Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man was acquitted of Aggravated Sexual Abuse of a Child as a result of a federal jury trial in Pierre, South Dakota, beginning on October 3, 2017, and concluding on October 4, 2017.
Jason Corey Poorman, age 41, was indicted by a federal grand jury on November 9, 2016.
The charge stemmed from an alleged incident that occurred in March 2004, in Parmelee, South Dakota.
The investigation was conducted by the Federal Bureau of Investigation. The U.S. Attorney’s Office prosecuted the case.
Slatington, PA Woman Charged with Bank Fraud and EmbezzlementRead the Press Release
Julie Ann Turk 46, of Slatington, Pennsylvania was charged in an indictment[1] unsealed this week with one count of bank fraud, one count of bank embezzlement, and three counts of money laundering, announced acting United States Attorney Louis D. Lappen. The indictment alleges that between January of 2009 and April of 2016, Turk, an employee of Allentown Federal Credit Union, defrauded the credit union and its customers out of approximately $641,637 and further conducted monetary transactions with the proceeds of the bank fraud and bank embezzlement in amounts greater than $10,000.
If convicted, the defendants face a maximum sentence of 90 years= imprisonment, a five-year term of supervised release, a $2,500,000 fine, and a $500 special assessment.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Retired Boston Police Detective Sentenced for His Role in an Investment Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy Jr. announced today that Daniel Rice, 53, of Stoughton, Massachusetts, who was convicted of wire fraud, was sentenced to three months home confinement, followed by two years supervised release, by U.S. Senior District Judge William M. Skretny.
Assistant U.S. Attorney Scott S. Allen Jr., who handled the case, stated that Rice, a retired City of Boston Police Detective, aided and abetted Michael Wilson, 30, formerly of Hamburg, NY, in defrauding investors by promising large returns on phantom investments through companies known as New Frontier.Rice pleaded guilty for his involvement in a deal brokered in January 2010, in which the defendant induced a Montana broker to wire $100,000 as part of a phony investment with Zodiak Capital, one of Wilson’s fraudulent New Frontier companies. Rice kept $40,000 before passing the remaining $60,000 on to a Wilson account at HSBC Bank in Buffalo.
In July 2010, Rice was involved in a second deal with Zodiak, and failed to tell the Montana broker about Zodiak’s connection to Wilson’s companies. As a result, on July 15 and 19, 2010, a total of $71,875 of a second investor’s money was wired into accounts in the Buffalo area controlled by Wilson. Such money was recovered after the government applied to have the receiving bank accounts frozen. The funds eventually were returned to the second investor, who lives in Utah.
In July of this year, Wilson was convicted of wire fraud for deals entered into by his fraudulent companies between 2008 and 2010. In sum, Wilson attempted to defraud investors out of more than $10,000,000 by creating several phantom investment companies known collectively as New Frontier, which included Zodiak, Carnic LLC, Phantom Holdings and others, all purportedly located at 6553 Boston State Road in Hamburg. Wilson thereafter induced individuals and companies to invest in financial instruments with complex sounding names such as leveraging agreements that promised high-yield earnings and returns in short periods of time.
Rather than investing clients’ money, however, Wilson spent it on a variety of personal items, including $2,500,000 as a down payment for Boston State Road properties, automobiles - including a Hummer, a Corvette, two Land Rovers, and a Mercedes ML 500, artwork, and other items. In January 2009, Wilson paid $1,800 to hire an actor from a talent agency to portray a person using the name of an alias (George Possiodis), which name and persona Wilson used during his scheme. Just prior to his indictment, Wilson fled to Canada and then Vietnam in order to evade law enforcement authorities. He was apprehended there and returned to the Western District of New York to face charges.
Wilson’s sentencing is scheduled for October 25, 2017, at 11 a.m. before Judge Skretny.
Rice’s sentence is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the Internal Revenue Service, Criminal Investigations Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office, and the Boston Police Department Anti-Corruption Division.
Real Estate Investor Pleads Guilty to Bid Rigging in Northern California Public Foreclosure AuctionsRead the Press Release
A real estate investor pleaded guilty for his role in a conspiracy to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Jim Appenrodt pleaded guilty to two counts of bid rigging in U.S. District Court for the Northern District of California in San Francisco. Appenrodt was charged in an indictment returned by a federal grand jury on October 22, 2014.
According to court documents, Appenrodt participated in a conspiracy to rig bids by agreeing to refrain from bidding against other coconspirators at public real estate foreclosure auctions in San Francisco County and San Mateo County from as early as August 2008 until January 2011.
“The Antitrust Division has prosecuted scores of real estate investors who, for their own benefit and profit, conspired to corrupt the bidding process at foreclosure auctions,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s guilty plea demonstrates the Division’s continued commitment to bringing to justice the individuals who committed these crimes.”
Today’s guilty plea is the result of the Department’s ongoing investigation into bid rigging at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, California. To date, 63 individuals have agreed to plead or have pleaded guilty.
These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco. Anyone with information concerning bid rigging or fraud related to real-estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Louis Andrew Rabbitt, Jr., age 37, was indicted on September 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 26, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Rabbitt was convicted of Sexual Abuse of a Minor in August 2001. As a result of this conviction, he is required to register as a sex offender. It is alleged that between July 24, 2017, and July 31, 2017, Rabbitt, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Rabbitt is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson is prosecuting the case.
Rabbitt was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rancher from Taos County Sentenced to Prison for Carjacking Utility Workers on His RanchRead the Press Release
ALBUQUERQUE – Richard Howieson, 56, of Costilla, N.M., was sentenced yesterday in Albuquerque, N.M., to a year and a day in prison for his conviction on a federal carjacking charge. Howieson will be on supervised release for two years after completing his prison sentence.
The FBI arrested Howieson on Oct. 11, 2016, on a three-count indictment charging him with carjacking, using and carrying a firearm during and in relation to a crime of violence, and being a felon in possession of a firearm. The indictment was superseded on Feb. 7, 2017, to charge Howieson with carjacking and with using and carrying a firearm in relation to a crime of violence. According to the indictment, Howieson committed these crimes on Feb. 19, 2013, in Taos County, N.M.
On April 17, 2017, Howieson pled guilty to a felony information charging him with carjacking on Feb. 19, 2013, pursuant to a plea agreement. According to the plea agreement, Howieson encountered two employees of a utility company just inside the fence line on his ranch. The utility workers were in their utility vehicle as Howieson drove up in his vehicle. As Howieson exited his vehicle with a loaded pistol in his pocket, one of the utility company employees exited his vehicle and explained that they were on Howieson’s property to install fiber optic cable and that the utility company had permission to cut Howieson’s lock to gain access to the ranch. Brandishing a loaded pistol, Howieson told the utility company employees to get off his property and to leave their utility vehicle. When the utility company employees refused to leave the ranch without their vehicle, Howieson told them they could get their vehicle back through the law and threatened to shoot them if they did not leave his ranch. The utility company employees then left the ranch. As they were walking away from the ranch, Howieson discharged the firearm in a different direction from where the utility company employees were located.
This case was investigated by the Santa Fe office of the FBI and the New Mexico State Police, and was prosecuted by Assistant U.S. Attorney George Kraehe.
Pine Bluff Man Pleads Guilty to Stealing More Than $1 Million in USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK— Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, announced today that Elbert Harris, 57, of Pine Bluff, pleaded guilty to an information charging him with wire fraud. Harris stole more than $1 million intended to feed children in low income areas.
Friday’s plea hearing took place before United States District Judge Kristine G. Baker, who will sentence Harris at a later date.
The United States Department of Agriculture (USDA) funds the Child and Adult Care Feeding Program, which includes an at-risk, after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding program, and they are reimbursed for the eligible meals they serve.
At Friday’s hearing, Harris admitted that between 2012 and 2015, he was a sponsor for the feeding program through “Greater Faith Ministries,” which had feeding locations in Pine Bluff, Altheimer, and Wabbaseka. Harris operated 14 feeding sites. He falsely claimed that he served up to 175 children at some of his feeding sites, greatly inflating the number of children who were actually served. Harris submitted approximately 44 claims. Because of the inflated claims, Harris received a total of approximately $1,390,961.05 from DHS.
Harris is the 14th person to plead guilty concerning the theft of USDA feeding program funds for children. In addition to those who have pleaded guilty, two defendants have been convicted at trial. Previous charges filed in this investigation detail fraud involving more than $10 million in USDA feeding program funds.
The statutory penalty for wire fraud is not more than 20 years’ imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, and Internal Revenue Service–Criminal Investigations. The case is being prosecuted by Assistant United States Attorneys Jana Harris, Allison W. Bragg and Cameron McCree.
If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
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Pierce County Woman Pleads Guilty to Bombing Car Belonging to Person she Considered a Police ‘Snitch’Read the Press Release
A Tacoma, Washington woman pleaded guilty today in U.S. District Court in Tacoma to unlawful possession of a destructive device, announced U.S. Attorney Annette L. Hayes. KENNI JO BENNETT, 41, of Tacoma, and an accomplice, placed the explosive device under a Kia Forte sedan parked outside a Tacoma home occupied by a family, including several children. The device exploded blasting a hole in the trunk area of the car, and scattering debris around the area, including the lawns of homes across the street. No one was injured. U.S. District Judge Ronald B. Leighton scheduled sentencing for January 5, 2018.
According to the plea agreement, between August and October 2016, BENNETT became convinced that the victim was providing information to law enforcement concerning her drug trafficking activities. BENNETT recruited an accomplice to help her blow up the victim’s car. BENNETT purchased an explosive device about the size of a soda can from someone she knew on the Puyallup Indian Reservation. In the early morning hours of October 13, 2016, BENNETT cruised the victim’s neighborhood and saw his car parked in the driveway of his home. She texted her accomplice, picked him up, and brought him back to the target vehicle. BENNETT used a lit cigarette to ignite the fuse of the device and instructed her accomplice where to place it. BENNETT used her smart phone to record the explosion. The two then left the area.
BENNETT was arrested by Tacoma Police and charged in state court in November 2016. In May 2017, she was charged federally and has remained in federal custody.
Unlawful possession of a destructive device is punishable by up to ten years in prison, three years of supervised release and a $10,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Tacoma Police Department. The case is being prosecuted by Assistant United States Attorney Erin H. Becker.
Pharmacy Robbery Defendant Pleads GuiltyRead the Press Release
DAYTON – Eric Lamont Bates, 20, of Indianapolis, pleaded guilty in U.S. District Court yesterday to one count of aiding and abetting the robbery of a pharmacy in Middletown, Ohio and possessing with the intent to distribute morphine and oxycodone.
Bates is one of 11 total defendants in three current federal pharmacy robbery indictments in Dayton. He faces up to 20 years imprisonment for each crime.
Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division and Middletown Police Chief Rodney Muterspaw announced the plea entered into today before U.S. District Judge Walter H. Rice.
In May, a federal grand jury returned indictments charging individuals with robbing two Middletown pharmacies and stealing prescription drugs including morphine, oxycodone and hydrocodone for the purpose of selling the drugs on the street.
The grand jury charged two Dayton men, Calvin Cavonte Tribble and Savon Anthony Davis, with attempted robbery of a pharmacy in Middletown on April 18, 2017 and robbing the pharmacy on April 19.
In a separate indictment, the grand jury alleged that two Indianapolis men, Bates and Yasar Jamal Burnett, conspired to rob another Middletown pharmacy of morphine and oxycodone on April 29, 2017. Burnett also recently pleaded guilty to the same charges as Bates.
In July, a 10-count superseding indictment added six defendants who also allegedly conspired to rob pharmacies between March and June 2017 in Fairfield, Middletown, Franklin, Hamilton, Westerville, Trotwood, Dayton, Oakwood, Kettering, Beavercreek, Moraine, Vandalia, Union Township and Cincinnati.
It was part of the alleged conspiracy that defendants would approach the pharmacy counter at CVS, Walgreens, Rite Aid and Best Pharmacy locations as if to turn in a prescription to be filled. In actuality, the slip of paper included a note that this was an armed robbery and the pharmacist would be harmed if they did not comply. The note demanded pharmacy employees to fill two bags with a list of controlled substances identified by name, amount and prescription dosage.
Those charged in the superseding indictment include Martez Henderson, Tiwonne Montgomery, Kenneth Evans, Jr., Brandon Freeman, David Harris and Jamar Warren.
In September, Jamie Deandre Williams was charged in a five-count indictment for allegedly robbing CVS pharmacies in Beavercreek, Sidney, Moraine, Cincinnati and Dayton between February and June 2017.
U.S. Attorney Glassman commended the cooperative investigation of this case by the Middletown Police and the FBI, as well as Assistant U.S. Attorneys Amy M. Smith and Brent Tabacchi, who are representing the United States in the case.
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Pharmaceutical Employee Admits Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A Montgomery County, Pennsylvania, man today admitted defrauding New Jersey state health benefits programs and other insurers out of millions of dollars by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick and New Jersey Attorney General Christopher S. Porrino announced.
Michael Neopolitan, 49, of Willow Grove, Pennsylvania, a pharmaceutical sales representative, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From January 2015 through April 2016, Neopolitan recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the informations as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Neopolitan and conspirators working under him recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Neopolitan’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Neopolitan and other members of the conspiracy.
Once he had recruited an employee covered by the Pharmacy Benefits Administrator, Neopolitan would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. He would select the compounded medications that paid the most without regard to their medical necessity.
Neopolitan would then get the prescriptions signed by doctors who never evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
According to the information, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey.
As part of his plea agreement, Neopolitan must forfeit $198,617.14 in criminal proceeds he received for his role in the scheme and pay restitution of at least $762,519.74.
Neopolitan faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 12, 2018.
Nine other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, John Gaffney, Judd Holt, George Gavras, and Richard Zappala – have pleaded guilty to their roles in the scheme and await sentencing.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to the guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Porrino and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel: Robert A. Weir Esq., Philadelphia, Pennsylvania
Pacific Western Bank Pays $1.75 Million to Resolve Firrea Allegations Relating to Kinde Durkee Embezzlement SchemeRead the Press Release
FRESNO, Calif. — Pacific Western Bank (“PacWest”) has paid $1.75 million to resolve allegations that First California Bank, which PacWest acquired in 2013, violated Section 951 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), codified at 12 U.S.C. § 1833a, by facilitating the embezzlement scheme of Kinde Durkee, United States Attorney Phillip A. Talbert announced.
Durkee, a former accountant for political campaigns and nonprofit organizations, controlled hundreds of client accounts held at First California. Over several years, Durkee siphoned millions of dollars from those client accounts to her own operating account at First California via unauthorized check transfers. Durkee pled guilty to federal mail fraud charges in March 2012.
The United States alleges that First California allowed Durkee to carry out her fraud scheme by ignoring obvious warning signs that Durkee was stealing from her clients and by failing to comply with the bank’s internal protocols and procedures designed to prevent and detect fraud. Given these failures by First California, Durkee’s fraud continued unabated for years and resulted in millions of dollars in losses to Durkee’s customers.
“People who commit white collar crimes such as embezzlement, fraud, and money laundering often use the banking system to facilitate their crimes,” U.S. Attorney Talbert said. “The Department of Justice will continue to hold accountable financial institutions that allow such conduct to occur by turning a blind eye to obvious criminal activity.”
“The FBI is committed to protecting the American people by investigating violations of law by all entities, including sophisticated financial institutions,” said Special Agent in Charge Sean Ragan of the FBI Sacramento field office. “One of the FBI's mission priorities is combatting major white-collar crime, and that includes the investigation of not only individuals engaged in fraud, but financial institutions that facilitate such activity.”
“Integrity is a cornerstone of the banking industry,” said Wade V. Walters, Special Agent in Charge, FDIC Office of Inspector General, Office of Investigations, San Francisco Region. “The Federal Deposit Insurance Corporation Office of Inspector General is committed to ensuring that individuals or entities seeking to undermine that integrity will be held accountable.”
This case was the product of an investigation by the Federal Bureau of Investigation and the FDIC Office of Inspector General. Assistant U.S. Attorney Vincente A. Tennerelli represented the United States in this matter.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The settled claims relate exclusively to conduct by First California prior to its acquisition by PacWest Bancorp in 2013.
Oilpro.Com Founder Sentenced to Prison for Hacking into Competitor’s Computer SystemRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that DAVID W. KENT, the founder of professional networking website Oilpro.com (“Oilpro”), was sentenced today in Manhattan federal court to one year and one day in prison for intentionally accessing a protected computer without authorization. The charge stemmed from KENT’s role in repeatedly hacking into a competitor’s database to steal customer information and attempting to sell Oilpro to the same company whose database KENT had hacked. Today’s sentence was imposed by U.S. District Judge Denise L. Cote.
Acting Manhattan U.S. Attorney Joon H. Kim said: “David Kent admitted to hacking into a competitor’s computer network and stealing client data to boost the value of Oilpro, a company he founded. Kent then attempted to sell Oilpro – a company he grew using the stolen information -- to the very company he had hacked. For his criminal attempts to gain an unfair business edge, Kent has now been sentenced to prison.”
In sentencing DAVID W. KENT, Judge Cote said: “This was a betrayal of trust, a breach of loyalty, and a level of deceit and dishonesty that was very sad and disappointing.”
According to the documents filed in this case and statements made in court proceedings:
In or about March 2000, KENT founded a website (“Website-1”) that provides, among other things, networking services to professionals working in the oil and gas industry. Website-1 allows its members to create profiles, which includes personal and professional information. As part of their profiles, members can also upload their resumes. The profiles are contained in a database maintained by Website-1 (the “Members Database”). Members are assigned login credentials (i.e., usernames and passwords) when they create their profiles. Members use these login credentials to access their profiles.
In or around August 2010, KENT sold Website-1 for approximately $51 million to a publicly traded company headquartered in New York, New York (“Company-1”). KENT entered into an employment agreement with Company-1 and agreed to continue to serve as the President of Website-1 after the acquisition. However, KENT left Website-1 in September 2011 and launched Oilpro in October 2013. Like Website-1, Oilpro provides networking services to professionals working in the oil and gas industry. Oilpro is headquartered in Houston, Texas.
Between October 2013 and February 2016, KENT conspired to access information belonging to Website-1 without authorization and to defraud Company-1. KENT accessed the Website-1 Members Database without authorization and stole customer information, including information from over 700,000 customer accounts. KENT then exploited this information by inviting Website-1’s members to join Oilpro. Similarly, one of Kent’s employees at Oilpro who previously worked for Website-1 (“CC-1”) accessed information in Website-1’s Google Analytics account without authorization and forwarded the information to KENT. In the meantime, KENT attempted to defraud Company-1 by misrepresenting during discussions about a potential acquisition of Oilpro by Company-1 that Oilpro had increased its membership through standard marketing methods.
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In addition to the prison term, KENT, 41, of Spring, Texas, was sentenced to three years of supervised release.
Mr. Kim praised and thanked the Federal Bureau of Investigation for their outstanding work. Mr. Kim also thanked the Office of International Affairs and the United Kingdom’s National Cyber Crime Unit (NCCU).
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Sidhardha Kamaraju and Andrew K. Chan are in charge of the prosecution.
New York Return Preparers Charged in Stolen Identity Tax Refund Fraud SchemesRead the Press Release
A federal grand jury in Brooklyn, New York, returned indictments this week separately charging two tax return preparation business owners with stolen identity tax refund fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Bridget M. Rohde for the Eastern District of New York.
The first indictment charges Hakeem Bamgbala, a Brooklyn resident and owner of Kaybamz Inc., a tax preparation business in Brooklyn; Afolabi Ajelero, a Queens resident; and Michael Campbell, a Brooklyn resident, with conspiring to commit aggravated identity theft and aggravated identity theft. Bamgbala and Ajelero also are charged with wire fraud.
The indictment alleges that Bamgbala and Ajelero used stolen IDs to file tax returns with the Internal Revenue Service (IRS) and obtain refunds to which they were not entitled. Bamgbala and Ajelero allegedly purchased tax refund products that allowed them to print client refund checks drawn on a bank account into which the IRS directly deposited the refunds. Bamgbala, Ajelero and Campbell allegedly conspired to deposit these checks into a second bank account and then withdrew the funds.
If convicted, Bamgbala, Ajelero and Campbell face a statutory maximum sentence of five years in prison on the conspiracy charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft counts. Bamgbala and Ajelero also face a statutory maximum sentence of 20 years in prison on each of the wire fraud counts. The three defendants also face a period of supervised release, restitution and monetary penalties.
The second indictment charges Oyeniyi Jaiyesimi, the owner of Pace Financial Services, a tax return preparation business located in Springfield Gardens, with wire fraud, aggravated identity theft and filing fraudulent tax returns. According to the indictment, Jaiyesimi used stolen IDs to file fraudulent tax returns with the IRS and obtain refunds to which he was not entitled. The indictment also alleges that Jaiyesimi filed tax returns for clients that used stolen IDs to fraudulently claim dependents and inflate deductions.
If convicted, Jaiyesimi faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, a mandatory minimum sentence of two years in prison for each count of aggravated identity theft and a statutory maximum sentence of three years in prison for each count of filing a fraudulent return. He also faces a period of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Rohde commended special agents of IRS Criminal Investigation, who conducted the investigations, and Trial Attorneys Mark McDonald and Eric Powers of the Tax Division, who are prosecuting these cases.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
New Orleans Couple Pleads Guilty to Making False Statements to a Federally Licensed Firearms DealerRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that BRANDON SMITH, age 29, and CHELSIE WILLIAMS, age 24, both of New Orleans, pled guilty yesterday to making false statements to a federally licensed firearms dealer and possession of a firearm by a convicted felon.
According to court documents, SMITH and WILLIAMS unlawfully possessed and made false statements concerning a rifle.
Both SMITH and WILLIAMS face a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment for each count. U.S. District Judge Carl J. Barbier set sentencing for January 11, 2018.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives for investigating this matter. Special Assistant U.S. Attorney J. Ryan McLaren is in charge of the prosecution.
Morrisville Man Pleads Guilty to Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK - Michael Caraher, age 27, of Morrisville, New York, pled guilty today to one count of distribution of child pornography, three counts of receipt of child pornography and four counts of possession of child pornography.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Caraher admitted to using a custom-built desktop computer to access child pornography-oriented Internet sites, including at least one on the anonymous “Tor” network, for the purpose of downloading child pornography. Caraher also admitted to using peer-to-peer file-sharing software on a laptop computer to download additional child pornography. Overall, Caraher downloaded and saved over 100 videos and almost one thousand images depicting child pornography. Caraher further admitted to using an instant messaging application on his smartphone to trade the child pornography he had downloaded with other users.
Sentencing is scheduled for February 16, 2018, in Syracuse, New York.
Caraher, who is detained in custody pending sentencing, faces a minimum term of imprisonment of five (5) years on the charges for distribution and receipt of child pornography. Caraher faces a maximum term of imprisonment of twenty (20) years on all eight counts. The Court is also required to impose a term of supervised release between five (5) years and life, and Caraher will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors
This case was investigated by the Albany Division of the FBI (Syracuse Resident Agency), and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Montville Man Sentenced to 34 Months in Prison for Distributing Heroin, Violating Supervised ReleaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MAASEIYAH WILLIAMS, JR., 22, of Montville, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 34 months of imprisonment, followed by three years of supervised release, for distributing heroin and for violating the conditions of his supervised release that followed a prior federal conviction.
According to court documents and statements made in court, on December 13, 2016, WILLIAMS began serving a three-year term of federal supervised release in connection with a conviction for possessing with intent to distribute crack cocaine. On April 21, 2017, Judge Bryant placed WILLIAMS on home detention with location monitoring, pending a full compliance review hearing, after the Norwich Police Department arrested WILLIAMS on motor vehicle and firearms-related charges on April 15.
On April 25 and again on May 13, WILLIAMS sold heroin to individuals at his Uncasville residence. On May 23, law enforcement officers executed a search warrant at WILLIAMS’s residence and seized 13 bags of heroin packaged for sale.
WILLIAMS has been detained since his federal arrest on May 23, 2017. On July 6, he pleaded guilty to one count of possession with intent to distribute heroin.
Judge Bryant sentenced WILLIAMS to 16 months of imprisonment for distributing heroin, and a consecutive 18 months of imprisonment for violating the conditions of his supervised release.
The state charges against WILLIAMS stemming from his April 15 arrest are pending.
This matter was investigated by the Federal Bureau of Investigation and the Norwich, Waterford, Montville and Groton Town Police Departments. The case was prosecuted by Assistant U.S. Attorneys Sarah P. Karwan and Anthony E. Kaplan.
Mobridge Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Rene DeLeon, Jr., age 41, 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 10 years in custody and/or a $250,000 fine, a mandatory minimum of 5 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between March 1, 2014, and April 14, 2014, as well as between October 1, 2015, and February 28, 2016, DeLeon, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction for sexual assault of a child, knowingly failed to register and update his registration.
The charges are merely accusations and DeLeon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
DeLeon was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mexican National Charged with Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that SALVADOR TENOCO-RODRIGUEZ, age 40, a citizen of Mexico, was charged yesterday in a one-count Bill of Information with illegal reentry of a removed alien after deportation, in violation of Title 8 U.S.C. Section 1326(a) and (b)(2).
According to the Bill of Information, TENOCO-RODRIGUEZ reentered the United States on or about August 29, 2017, after having been previously removed therefrom on or about October 27, 2006.
If convicted, TENOCO-RODRIGUEZ faces a maximum term of imprisonment of twenty years, a fine of up to $250,000, three years supervised release after imprisonment, and a $100 special assessment.
Acting U. S. Attorney Evans reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Methadone Clinic Pays Civil Penalty to Settle Alleged Controlled Substances Act ViolationsRead the Press Release
ATLANTA – MBA Wellness Centers, LLC, a methadone clinic located in Stockbridge, Georgia, has agreed to pay a civil settlement of $100,000 to resolve allegations that it violated the recordkeeping requirements of the Controlled Substances Act. MBA Wellness Centers, LLC, also has agreed to additional oversight from the DEA.
“Dispensing controlled substances without providing a valid prescription risks patient health and safety, and creates a risk that those substances will not be used for legitimate medical purposes,” said U.S. Attorney John Horn. “At a time when our district and the nation are facing a growing problem with the illegal diversion of controlled substances, our office is committed to enforcing the requirements of the Controlled Substances Act.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented, “MBA Wellness Centers, LLC spun a web of deception when it failed to maintain accurate recordkeeping of its inventory. Such careless behavior allows for substances to be diverted and sold on the black market with no true measure of accountability. This civil penalty is a proactive step that DEA Diversion and its federal, state and local partners can take to discourage other negligent Narcotic Treatment Programs from engaging in such behavior.”
The government alleges that MBA Wellness Centers, LLC, failed to keep accurate records of controlled substances and dispensed controlled substances to patients without a valid prescription from a physician. The claims settled are allegations only, and there has been no determination of liability.
Congress enacted the Controlled Substances Act, 21 U.S.C. §§ 801-904, to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications. Under the Controlled Substances Act, individuals and entities registered with the DEA are required to maintain complete and accurate records of all controlled substances and security systems so that no controlled substances are lost, stolen, or inappropriately dispensed. Violations of the recordkeeping requirements subject DEA registrants to civil monetary penalties of up to $14,502 for each violation. Dispensing a controlled substance without a valid prescription from a practitioner subjects DEA registrants to civil monetary penalties of up to $62,500 for each violation.
This case was investigated by Diversion Investigators from the Drug Enforcement Administration.
The civil settlement was reached by Assistant U.S. Attorneys David O’Neal and Lena Amanti.
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.
Mescalero Apache Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Russel Patrick Bearshield, 30, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty yesterday afternoon in federal court in Las Cruces, N.M., to an assault charge.
The BIA arrested Bearshield on June 23, 2017, on a criminal complaint charging him with assaulting a Mescalero Apache woman on Sept. 9, 2016, on the Mescalero Apache Indian Reservation in Otero County, N.M. According to the complaint, Bearshield assaulted the woman by throwing a television at her and punching, striking and kicking her in the face.
During yesterday’s proceedings, Bearshield pled guilty to a felony information charging him with assault resulting in serious bodily injury. In entering the guilty plea, Bearshield admitted that on Sept. 9, 2016, he assaulted the victim by punching her several times with a closed fist. Bearshield further admitted that as a result of the assault, the victim suffered a fractured orbital bone which required surgery.
At sentencing, Bearshield faces a statutory maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Member of Grape Street Crips Gang Admits Murder, Attempted Murder as Part of Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A high-ranking member of the New Jersey set of the Grape Street Crips today admitted his role in orchestrating a murder, participating in a separate attempted murder, and conspiring to distribute crack-cocaine, Acting U.S. Attorney William E. Fitzpatrick announced.
Rashan Washington a/k/a “Shoota,” 30, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to five counts of a sixth superseding indictment charging him with murder and attempted murder as part of a racketeering conspiracy, conspiracy to commit aggravated assault in aid of racketeering, conspiracy to possess a firearm, conspiracy to distribute 280 grams or more of crack-cocaine, and participating in a continuing criminal enterprise.
According to documents filed in this case and statements made in court:
Washington admitted that he orchestrated the murder of person identified as “Victim-5” in the indictment. On Nov. 12, 2013, Washington purposely left Victim-5 alone inside of a blue Jeep Cherokee knowing that another gang member intended to shoot and kill Victim-5. Washington admitted that, after he set up Victim-5 in the Jeep Cherokee, another gang member shot Victim-5 once in the head, killing him. Afterwards, Washington was promoted to the rank of “G,” of “Gangster,” within the N.J. Grape Street Crips.
As charged in the pending sixth superseding indictment, the gang’s leader, Corey Hamlet, a/k/a “C-Blaze,” 41, of Newark, ordered Victim-5’s murder. Hamlet and other gang members believed that Victim-5 had been disloyal by setting up a meeting at the Mall at Short Hills in Millburn, New Jersey, in an attempt to end a long-running feud between Hamlet and a person identified in the indictment as “Victim-1,” a rival.
After the Short Hills meeting, Hamlet used a social media account to post a report from the Essex County Prosecutor’s Office purportedly indicating that Victim-1 had provided a statement to law enforcement. Just three days after Hamlet’s social media post, gang members – acting on Hamlet’s orders – repeatedly shot and nearly killed Victim-1 and another individual identified in the indictment as “Victim-4,” a bystander who was inside Victim-1’s car. Following the attempted murder of Victim-1, Hamlet ordered Washington and another gang member to murder Victim-5.
Washington also admitted that on Oct. 7, 2013, he and other gang members sought to avenge the murder of a fellow gang member by individuals from a rival gang. Washington and others travelled to the area of Avon Avenue in Newark where one of Washington’s fellow gang members discharged 14 rounds in an attempt to shoot members of the rival gang. After returning to their staging area after the shooting, Washington fled law enforcement who attempted to arrest him and his fellow gang members.
Under the terms of the plea agreement, which has been accepted by the Court, Washington will be sentenced to 30 years in prison and 10 years of supervised release. Sentencing is scheduled for Feb. 2, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation. Acting U.S. Attorney Fitzpatrick also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry Kamar of the District of New Jersey’s Criminal Division, as well as Richard J. Ramsay of the Office’s Appeals Division in Newark.This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense Counsel: Pasquale F. Giannetta, Esq., Newark, New Jersey
Melrose Accounting Executive Pleads Guilty to Tax and Fraud ConspiracyRead the Press Release
BOSTON – The former principal of a Boston-area accounting firm pleaded guilty today in federal court in Boston to conspiring with the former president of a Gloucester seafood processing company and other executives to defraud the company and its majority shareholder, and to avoid paying taxes on the proceeds.
Michael Bruno, 62, of Melrose, pleaded guilty to conspiring to defraud the Internal Revenue Service and to commit wire fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 8, 2018.
Between approximately 1999 and 2015, Bruno, who also served as a member of the seafood processor’s board of directors, conspired with three executives of the company - its president, head of operations and a senior sales executive - to divert money from the company and its majority shareholder to the three executives. As part of the scheme, the conspirators caused the seafood professor to retain a temporary labor company, Continental Labor Team, purportedly to provide temporary workers for the seafood processor’s facility in Gloucester. In fact, however, Continental was controlled by the seafood processor’s president, and it was employees of the seafood processor who recruited the temporary workers, handled their employment applications and otherwise dealt with issues relating to their employment. Continental’s profits from the seafood processor - its sole customer - were deposited into accounts controlled by the seafood processor’s president and distributed by him to the other two executives, or to corporate entities they controlled, which performed no services in exchange for those payments.
Bruno, whose accounting firm prepared tax returns for the seafood processor, its president, and the corporate entities controlled by the other executives, also acknowledged conspiring with the executives to understate their income on federal tax returns.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of up to $250,000, or twice the gross gain or loss caused by the offense, and mandatory restitution. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Stephen E. Frank and Brian A. Pérez-Daple of Weinreb’s Criminal Division are prosecuting the case.
Massachusetts Man Arrested and Charged with Cyberstalking Former RoommateRead the Press Release
Boston - A Massachusetts man was arrested last night on charges that he conducted an extensive cyberstalking campaign against his former roommate, a 24-year-old Massachusetts woman, as well as her friends, family members, and other associates.
Ryan S. Lin, 24, of Newton, was charged with one count of cyberstalking and will appear in U.S. District Court in Boston later today for an initial appearance.
It is alleged that Lin engaged in an extensive, multi-faceted campaign of computer hacking and cyberstalking that began in April 2016 and continued until the date of his arrest, against a 24-year-old female victim, her family, friends and institutions associated with her. Lin, the victim’s former roommate, allegedly hacked into the victim’s online accounts and devices, stealing private photographs, personally identifiable information, and private diary entries that contained highly sensitive details about her medical, psychological and sexual history. It is alleged that Lin then distributed the victim’s private photographs and diary entries to hundreds of others.
Lin allegedly created and posted fraudulent online profiles in the victim’s name (with her photographs and home address) and solicited rape fantasies, including “gang bang” and other sexual activities, which in turn caused men to show up at her home. In addition, it is alleged that Lin falsely and repeatedly reported to law enforcement that there were bombs at the victim’s Waltham residence. Lin also allegedly created a false social media profile in the name of the victim’s roommate in Waltham and posted that he was going to “shoot up” a school in a nearby town. These threats were part of a larger pattern of threats to local schools and other institutions in her community.
“Mr. Lin allegedly carried out a relentless cyber stalking campaign against a young woman in a chilling effort to violate her privacy and threaten those around her,” said Acting United States Attorney William D. Weinreb. “While using anonymizing services and other online tools to avoid attribution, Mr. Lin harassed the victim, her family, friends, co-workers and roommates, and then targeted local schools and institutions in her community. Mr. Lin will now face the consequences of his crimes.”
“Those who think they can use the Internet to terrorize people and hide behind the anonymity of the net and outwit law enforcement should think again,” said Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division. “The Department of Justice will be relentless in its efforts to identify, arrest, prosecute, and punish the perpetrators of these horrendous acts and seek justice on behalf of their victims.”
“As alleged, Mr. Lin orchestrated an extensive, multi-faceted campaign of computer hacking and online harassment that caused a huge amount of angst, alarm, and unnecessary expenditure of limited law enforcement resources,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “This kind of behavior is not a prank, and it isn't harmless. He allegedly scared innocent people, and disrupted their daily lives, because he was blinded by his obsession. No one should feel unsafe in their own home, school, or workplace, and the FBI and our law enforcement partners hope today's arrest will deter others from engaging in similar criminal conduct.”
“I want to thank the Waltham Police Detectives and the FBI Investigators who worked so diligently to bring this party to justice,” said Waltham Police Chief Keith D. MacPherson. “I also want to thank the Superintendent and the Waltham School Department for their efforts working in conjunction with law enforcement. I also want to recognize the Waltham Police Department Safety Officer and the School Resource Officers for their hard work ensuring the safety of our school children and faculty. This has been a lengthy and complex investigation involving many agencies and remains ongoing. We appreciate the patience and understanding of those in our community who were affected by these criminal acts and thank those who have allowed us to work towards the best result possible in our attempts to put an end to these disruptions.”
The charging statute provides for a sentence of no greater than five years in prison and three years of supervised release. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Weinreb, Acting Assistant Attorney General Blanco, FBI SAC Shaw, and Waltham Police Chief MacPherson made the announcement today. The U.S. Attorney’s Office would also like to thank the Middlesex County District Attorney’s Office and Watertown, Newton and Wellesley Police Departments. Assistant U.S. Attorney Amy Harman Burkart of Weinreb’s Cybercrime Unit and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.