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16 November 2017
U.S. Attorney Mountcastle Delivers Remarks to Ethics Committee of Virginia State BarRead the Press Release
Roanoke, VIRGINIA – United States Attorney for the Western District of Virginia Rick A. Mountcastle, Assistant United States Attorney and Professional Responsibility Officer Michael Moore from the Eastern District of Virginia, and a delegation from the Virginia Association of Commonwealth’s Attorneys, consisting of Greensville County/City of Emporia Commonwealth’s Attorney Patricia T. Watson, Virginia Beach Commonwealth’s Attorney Colin Stolle, Arlington County/City of Falls Church Commonwealth’s Attorney Theophani K. Stamos, and Suffolk City Commonwealth’s Attorney C. Phillips Ferguson appeared before the ethics committee of the Virginia State Bar this morning to deliver remarks in opposition of the proposed VSB Legal Ethics Opinion 1888 [VSB LEO 1888].
U.S. Attorney Mountcastle’s remarks as prepared for delivery:
Good morning ladies and gentlemen. My name is Rick Mountcastle and I’m the United States Attorney for the Western District of Virginia. I’m here with my colleague from the United States Attorney’s Office for the Eastern District of Virginia Assistant United States Attorney and Professional Responsibility Officer Mike Moore. It’s my privilege to address you this morning on behalf of the United States Department of Justice and the two United States Attorney’s Office’s in Virginia about proposed Legal Ethics Opinion 1888.
After a careful review of the hypothetical facts, the analysis, and the proposed Opinion, as well as the applicable legal authorities, we respectfully request that you withdraw the proposed Opinion for the reasons set forth in our November 2, 2017 letter, as well as the many other reasons articulated by the Virginia Association of Commonwealth’s Attorneys and others. I don’t want to repeat our written comments and I’m certain the Bar will give those comments careful consideration.
I do want to emphasize a couple of points this morning. First, the Department of Justice and the United States Attorney’s Offices take very seriously the requirement that our prosecutors comply with their discovery and disclosure obligations. We expend considerable resources to ensure compliance with the Department’s mandate that we make broad disclosures of potentially exculpatory and impeaching material as required by the statutes, rules, and case law. Further, we agree that prosecutors must not willfully and intentionally attempt to conceal exculpatory and impeaching evidence by hiding it within voluminous materials.
The proposed Opinion, however, does not provide clear guidance about this requirement but, instead, creates confusion. As discussed in our written comments, the underlying hypothetical facts are so oversimplified that the proposed Opinion will apply to virtually none of the cases actually handled by federal and state prosecutors on a daily basis. Every case will be different because every one of them will have more factual context than the facts set forth in the proposed Opinion. We’ve listed some of the important factual context at page two of our letter and I’d like to add another very important factor to that list: the tone of voice and inflexion of the defendant and the victim during the phone call. As described in our letter, the factual context of each case is critical to a determination of whether a piece of evidence like the nine-word phone call “tends to negate guilt” as opposed to being inculpatory or merely ambiguous; it’s critical to a determination of whether the prosecutor “knows” that it “tends to negate guilt” when an equally fair reading based on all of the facts is that it’s inculpatory or ambiguous, and only defense counsel knows what material falls within the defense theory of the case; and it’s critical to a determination of whether producing it as a part of 200 hours of calls constitutes knowing and intentional concealment when the law only requires disclosure and the defendant knows about it or it’s readily identifiable from an index.
The substantial disparity between the hypothetical facts underlying the proposed Opinion, and the facts of the cases we actually prosecute will inevitably create the type of confusion described in our comments and in the comments of the Commonwealth’s Attorneys. In our view, the proposed Opinion provides no meaningful guidance to the prosecutor because every case he or she prosecutes will be significantly different from the bare bones facts of the hypothetical. At the same time, it’s likely that defense counsel, in zealously representing their clients, will argue that the proposed Opinion should apply to cases that have no factual similarity. As a result, the proposed Opinion, while providing no meaningful guidance, will simply cause collateral litigation distracting the courts and litigants from administering justice in criminal cases.
For these reasons and the other reasons stated in our letter, we respectfully request that the proposed Opinion be withdrawn. Thank you for this morning’s opportunity to provide additional comment.
End of Prepared Remarks
In addition to the remarks delivered this morning, the United States Attorneys and the Virginia Association of Commonwealth’s Attorneys previously sent the ethics committee letters objecting to VSB LEO 1888.
lettertovsb.pdf vacaletter.pdfU.S. Attorney Jeff Jensen Announces Reginald Harris as the Executive Assistant U.S. AttorneyRead the Press Release
U.S. Attorney Jeff Jensen has announced the promotion of Reginald “Reggie” Harris to be the Executive Assistant U.S. Attorney for the Eastern District of Missouri. Mr. Harris has been a federal prosecutor in St. Louis since 2002. This role will oversee focus on Project Safe Neighborhoods, an opioid initiative, and civil rights investigations.
Mr. Harris is a native of St. Louis, Missouri. He grew up in the north St. Louis neighborhoods of Walnut Park and North Pointe. Mr. Harris attended high school in the Lindbergh School District in South St. Louis County, through the Voluntary Interdistrict Desegregation Program. He received his undergraduate degree in Business Administration at the University of Iowa. Mr. Harris is a 1997 graduate of the University of Iowa College of Law. Before joining the U.S. Attorney’s Office in 2002, Mr. Harris was in private practice as an Associate at the St. Louis law firm of Thompson Coburn LLP, where he practiced in the litigation department. “Harris is uniquely qualified to oversee these most important challenges facing our region and I am honored to work by his side,” said Jeff Jensen, United States Attorney.
Two men sentenced for thefts targeting Southwire Copper Company in Carrollton, GeorgiaRead the Press Release
ROME, Ga. - Yosvani Castillo and Rodolfo Arteaga Oliva have been sentenced after pleading guilty to hijacking truckloads of valuable copper wire and other copper products. The Southwire Copper Company, based in Carrollton, Georgia, was one of the pair's primary targets.
“Interstate cargo theft is an extremely serious offense that strains the local economy,” said U. S. Attorney Byung J. “BJay” Pak. “These thieves went out of their way to avoid detection and brazenly stole whole trucks filled with copper products. The financial impact not only affected customers all over the country who buy these products, but they impacted the employees and communities where these companies operate.”
“This conviction demonstrates the great work of law enforcement at all levels to investigate and prosecute major cargo theft affecting Georgia and our surrounding states. The GBI remains committed to working with our local and federal partners to address these types of crimes,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Pak, the charges, and other information presented in court: On several occasions, defendants Castillo and Oliva drove up from Miami to Carrollton, and conducted surveillance on tractor-trailers as they left the Southwire facility to deliver copper products to customers across the country. In addition to Southwire, the defendants also targeted truckloads leaving the Hussey Copper company in Pennsylvania.
The defendants followed the unsuspecting truck until the driver pulled over for a stop, often after hundreds of miles of driving. They would then steal the entire truck and trailer, sometimes transferring the copper into a different trailer they brought with them to avoid detection, and drove the load back to Miami where Castillo arranged to sell the copper for below-market value to a metal recycler.
After stealing the trucks, they removed Global Positioning System (“GPS”) trackers from the trucks and installed “jammers,” which are illegal signal-blocking devices that prevent any tracking of GPS devices or cellular phones. The victims, which include not only Southwire and Hussey, but also the transportation companies whose trucks were stolen, sustained over $1.3 million in losses.
Rodolfo Arteaga Oliva, 40, of Miami, Florida, was sentenced by Judge Harold Murphy to four years, nine months in prison, to be followed by three years of supervised release. Yosvani Castillo, 38, also of Miami, Florida, was sentenced on May 10, 2017 to five years, three months in prison to be followed by three years of supervised release. Oliva and Castillo were ordered to pay restitution, jointly and severally, in the amount of $1,107,575.58. Castillo is separately responsible for paying an additional $276,142.68 in restitution.
This case was investigated by the Georgia Bureau of Investigation, with substantial assistance provided by Miami-Dade Police Cargo Theft Task Force.
Assistant U.S. Attorney Lynsey M. Barron 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
Two men admit to illegal re-entry chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two men have admitted to illegal re-entry charges, United States Attorney Bill Powell announced.
Edi Alvarez-Sanchez, age 30, of Mexico, pled guilty to one count of “Reentry of Removed Alien.” Alvarez-Sanchez, having been removed from the United States once before, admitted to being in Berkeley County, West Virginia, without consent, in September 2017.
Oscar Ordaz-Rodriguez, age 38, of Mexico, pled guilty to one count of “Reentry of Removed Alien.” Ordaz-Rodriguez, having been removed from the United States three prior times, admitted to being in Berkeley County, West Virginia, without consent, in September 2017.
Each defendant faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the cases on behalf of the government. The Department of Homeland Security, Immigration and Customs Enforcement investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Two New Jersey Men Arrested for $30 Million Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A New Jersey attorney and another man were charged with running a large-scale mortgage fraud scheme that involved dozens of properties in Jersey City, Clifton, Union, and elsewhere in New Jersey and caused losses of more than $30 million, Acting U.S. Attorney William E. Fitzpatrick announced.
Christopher Goodson, 44, of Newark, and Anthony Garvin, 47, of Jersey City, New Jersey, are charged by complaint with one count of conspiracy to commit bank fraud. Both defendants were arrested this morning and are expected to appear this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the Complaint:
From January 2011 through August 2017, Goodson, Garvin, and others engaged in a short sale mortgage fraud conspiracy targeting various New Jersey properties with mortgages that were in default.
As part of the scheme, the conspirators arranged simultaneous fraudulent transactions on the same target property. In the first transaction, which involved the sale by the current owner, the conspirators convinced the financial institution holding the mortgage to accept the sale of the target property at a loss, usually to a buyer who was secretly a conspirator or an entity controlled by the conspiracy.
In the second transaction, the conspirators flipped the same target property from the first buyer to a second buyer, who typically obtained a mortgage from another financial institution using false loan applications, pay stubs, bank account statements and title reports provided by members of the conspiracy. As a result, the second transaction frequently closed for significantly more or even double the price of the first transaction.
Goodson, Garvin, and others allegedly rigged the short sale process at each step in order to maximize the difference in price between the two transactions and keep the victim financial institutions from detecting the fraud.
For instance, Goodson, an attorney, concealed the fact that he played multiple-roles in the short sale transactions, including allegedly generating false preapproval letters from a New Jersey corporation he owned that purported to be a short-term lending company operating out of California. These letters were used to deceive banks into believing that the purchaser – typically a conspirator or entity controlled by Goodson – had the credit necessary for the transaction. Goodson also negotiated the fraudulent short sales with the banks, generated phony deeds that backdated the closing date of the first transactions, and even served as the closing attorney during some of the short sales.
Garvin was a real estate agent and investor who allegedly coordinated fraudulent transactions as part of the scheme.
The conspirators disbursed the funds into various accounts they controlled to conceal their illegal activities and split the profits. In total, the conspiracy defrauded financial institutions out of more than approximately $30 million.
The conspiracy to commit bank fraud count is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph W. Cronin, and special agents of the Federal Housing Finance Agency (FHFA) – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark, with the investigation
The government is represented by Assistant U.S. Attorneys David Feder and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Men Charged with Theft of More than 70 Firearms from Gun StoresRead the Press Release
CINCINNATI – A federal grand jury has charged Ronquieze Head, 35, and Seronte Newby, 29, both of Cincinnati, with crimes related to theft from gun stores in Ohio and Kentucky in an indictment returned in Cincinnati.
Specifically, the defendants are each charged with one count of conspiracy to commit theft and two counts of theft from a federal firearms licensee. Head is also charged with one count of possession of a stolen firearm and possession of a firearm by a convicted felon.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the charges.
The indictment alleges that Head and Newby stole approximately 20 firearms from a gun store in Sharonville, Ohio on July 2. On July 8, it is further alleged that the defendants stole approximately 22 firearms from a gun store in Florence, Ky. Finally, according to the indictment, the pair stole approximately 32 weapons from a third gun store in Springboro, Ohio on July 16.
Conspiracy to commit theft, theft from a federal firearms licensee, possession of a firearm by a convicted felon and possession of a stolen firearm are each crimes punishable by up to 10 years in prison.
U.S. Attorney Glassman commended the investigation of this case by ATF and Sharonville, Florence, Springboro and Cincinnati police departments, as well as Assistant United States Attorney Megan Gaffney, who is prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
Anyone having information about these burglaries or the stolen firearms should contact ATF at 1-800-ATF-GUNS (800-283-4867). Individuals may also email [email protected], or contact ATF through its website at www.atf.gov/contact/atf-tips. Tips may also be submitted to ATF using the ReportIt® app, available on both Google Play and the Apple App Store, or by visiting www.reportit.com. Tipsters may remain anonymous.
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Two Men Charged with Distributing Heroin and Fentanyl in North ShoreRead the Press Release
BOSTON – Two men – one of whom remains a fugitive – were charged in federal court in Boston with distributing heroin and fentanyl.
Yeffry Reynoso, a/k/a Chris, 26, of Lynn, was charged with one count of conspiring to distribute at least 100 grams of heroin and at least 40 grams of fentanyl, and six counts of distribution of heroin and fentanyl. Reynoso was arrested on Nov. 15, 2017, and appeared in federal court in Boston for an initial appearance.
Francisco Tavarez, a/k/a Jose, 21, was charged with one count of conspiring to distribute heroin and fentanyl, and remains a fugitive.
According to court documents, the federal investigation into Reynoso’s drug activity was prompted by a fatal opioid overdose in Melrose in January 2017. The court documents allege that, until his arrest, Reynoso was a heroin and fentanyl supplier in the North Shore, and ran an active drug business that employed at least three runners, including Tavarez, to deliver drugs. It is alleged that Reynoso supplied the opioids that led to the fatal drug overdose in January and that he had supplied the victim with heroin/fentanyl on a regular basis for some period in 2016.
It is further alleged that law enforcement, working with a cooperating witness, made four controlled purchases of heroin and/or fentanyl from Reynoso during the spring of 2017, and Tavarez is purported to have delivered fentanyl to an undercover agent on one occasion in March.
Reynoso faces a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years of supervised release and a $5 million fine. Tavarez faces no greater than 20 years in prison, a minimum of three years of supervised release and a fine of $1 million. 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; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Melrose Police Chief Michael Lyle made the announcement today. Assistant U.S. Attorney Linda M. Ricci, Deputy Chief of Weinreb’s Narcotics and Money Laundering Unit, is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Twenty Men Face Federal Indictment for Attempted Online Enticement of A Minor Following A Joint Local, State and Federal Law Enforcement Operation in Columbus, GeorgiaRead the Press Release
United States Attorney G. F. Peterman, III, announced that a Federal Grand Jury returned indictments in the Columbus Division of the United States District Court for the Middle District of Georgia today charging twenty defendants with Attempted Online Enticement of a Minor, in violation of Title 18, United States Code, Section 2422(b). This charge carries a ten-year mandatory minimum sentence, and a maximum term of life in prison, a $250,000 fine, or both, up to a lifetime term of supervised release, and mandatory sex offender registration.
The federal indictments stem from arrests made over this past weekend during “Operation Hidden Guardian,” a proactive, online undercover investigation centered in Columbus, Georgia, which was coordinated by the Georgia Internet Crimes Against Children Task Force (ICAC), the Georgia Bureau of Investigation’s Child Exploitation and Computer Crimes Unit, the Columbus Police Department, the Muscogee County Sheriff’s Office, the District Attorney’s Office for the Chattahoochee Judicial Circuit, and the United States Attorney’s Office for the Middle District of Georgia.
Along with those agencies who participated in the planning and coordination of the operation, twelve additional law enforcement agencies participated in “Operation Hidden Guardian” as members of the Georgia ICAC Task Force. These agencies were: Federal Bureau of Investigation – Columbus Resident Agency; the United States Secret Service; Athens-Clarke County Police Department; Floyd County Police Department; Forsyth County Sheriff’s Office; Hall County Sheriff’s Office; Georgia Information Sharing and Analysis Center (GISAC); Glynn County Police Department; LaGrange Police Department; Marietta Police Department; Polk County Police Department; and the Tallapoosa Police Department.
The following individuals were indicted today:
Reginald Kiiani Crowell, 36, Pittsview, Alabama;
Jonathan David Jenkins, 23, Columbus, Georgia;
Brian A Corcoran, 42, Columbus, Georgia;
Ji Won Kim, 26, Atlanta, Georgia;
Derrick Lamart Smalls, 38, Phenix City, Alabama;
Robert Alan Moore, 31, Ledonia, Alabama;
Collis Dwight Eaton, 48, Midway, Alabama;
Kenneth Jordan, 29, Columbus, Georgia;
Edwin Nieves, 55, Columbus, Georgia;
Ke Song, 24, Auburn, Alabama;
Christopher McGowan, 32, Mechanicsburg, Pennsylvania;
Jarrod R. Long, 27, Columbus, Georgia;
Jimmy Cobb, 35, Columbus, Georgia;
Uthemes Taylor, 30, Columbus, Georgia;
Michael Andrew Everett, 22, Columbus, Georgia;
Harold Bates, 35, Selma, Alabama;
Dereck C. Weldon, 30, Columbus, Georgia;
Gary D. Whitfield, 28, Columbus, Georgia;
William Pruitt, 48, Franklin, North Carolina; and
Eric K. Menefee, 50, Opelika, Alabama.
An indictment is only an allegation of criminal conduct. Each person is presumed innocent until and unless he is proven guilty in a court of law. Assistant United States Attorneys Danial Bennett, Crawford Seals, and Mel Hyde are prosecuting the cases for the Government.
Tickfaw Man Indicted for Possession of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that VERNON SWEENEY, JR., age 52, of Tickfaw, Louisiana, was indicted today for possession of child pornography.
On October 12, 2017, law enforcement officers with the Louisiana State Police and the U.S. Department of Homeland Security, Homeland Security Investigations, arrested SWEENEY during the execution of a state search warrant at his Tickfaw home after finding that SWEENEY was in possession of several items, including a laptop computer, thumb drives, and cellular phones that contained images depicting the sexual victimization of prepubescent children.
Court records also revealed that SWEENEY was previously convicted in Tangipahoa Parish Criminal District Court for pornography involving juveniles on August 1, 2012.
Acting U. S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Due to his prior conviction, if convicted, SWEENEY faces a mandatory minimum penalty of ten years imprisonment up to twenty years, followed by up to a life term of supervised release, and a $250,000 fine.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Acting U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations and the Louisiana State Police in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Three Individuals Indicted on Carjacking and Murder ChargesRead the Press Release
St. Louis, MO – Floyd Barber, 22, Jherrica Dixon, 23, and Kurt Wallace, 25, each of Saint Louis, were indicted in a ten-count federal indictment this afternoon.
The indictment alleges that, between August and October 2017, Barber, Dixon and Wallace participated in at least five armed carjackings. On September 16 and October 15, 2017, the carjacking victims were shot. On October 16, 2017, victim Jaz Granderson, a former Desmet Jesuit High School assistant football coach, was shot and killed.
“This is a series of vicious and senseless crimes. We just doubled the number of violent crime prosecutors in this office so people who commit carjackings and armed robberies in the City of St. Louis can expect very aggressive prosecution by this office and the Circuit Attorney’s Office,” said U.S. Attorney Jeff Jensen.
If the defendants are convicted, these charges carry a maximum penalty of death or life in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the St. Louis Metropolitan Police Department and United States Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the Saint Louis Circuit Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Three Alaska Residents Charged with Conspiracy to Smuggle Heroin into Goose Creek Correctional CenterRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a federal grand jury returned an indictment charging three individuals with conspiring to smuggle heroin into the State of Alaska Department of Corrections (DOC) Goose Creek Correctional Center (GCCC) for distribution to inmates in April 2016.
Spencer Daniel Johnson, 24, and Kalani Lemauga Maalona, 31, who were both inmates at GCCC at the time of the drug conspiracy, and Heaven Leigh Erick, 28, have been named in the indictment, which charges each of them with drug conspiracy. Johnson has also been charged with possession with the intent to distribute a controlled substance.
According to Assistant U.S. Attorney Andrea W. Hattan, who presented the case to the grand jury, the charges arise from the seizure of nearly 20 grams of heroin from Johnson on April 11, 2016, three days after the heroin was passed to Johnson at GCCC on April 8, 2016. Johnson, Maalona, and Erick are presently incarcerated on unrelated state charges.
The law provides for a maximum sentence of 20 years in prison and a fine of $1 million or both for the charges alleged in the indictment. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The Federal Bureau of Investigation (FBI) conducted the investigation, with assistance from DOC and the Alaska State Troopers Western Alaska Alcohol and Narcotics Team (WAANT), leading to the charges in this case.
Charges contained in the indictment are merely allegations, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Stockton Special Education Teacher Charged with Transporting 16-Year-Old Girl from Oregon to California to Engage in Criminal Sexual ConductRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Rodney Flucas, 49, of Stockton, charging him with transportation of a minor in interstate commerce with intent to engage in criminal sexual conduct, U.S. Attorney Phillip A. Talbert announced.
According to the indictment and a criminal complaint, Flucas is licensed in the states of Georgia, Oregon, and California to teach deaf and hard-of-hearing students. On March 22, 2017, his California license was suspended.
In 2014, Flucas moved himself and numerous family members from Georgia to Klamath Falls, Oregon. According to the criminal complaint, once in Oregon, Flucas allegedly began sexually abusing a 15-year-old minor. Eventually, in 2015, Flucas moved to Stockton, California, and took the then 16-year-old victim there too, and allegedly continued to sexually abuse her in California.
This case is the product of an investigation by the FBI, the Stockton Police Department and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorneys Nirav Desai and Jeremy Kelley are prosecuting the case.
If convicted, Flucas faces a statutory minimum sentence of 10 years to a maximum of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Statement of U.S. AttorneyRead the Press Release
BIRMINGHAM – U.S. Attorney Jay Town, in response to local and national media reports and inquiries regarding assertions that the U.S. attorney “has verified defamation cases” or confirmed any type of federal investigation against Alabama citizens accusing a candidate for U.S. Senate of certain behaviors, responds as follows:
“These assertions are patently absurd. My office has not received, nor would we have the legal basis to pursue, any such defamation cases.
Statement of Acting U.S. Attorney Joon H. Kim on the Hung Jury in United States V. Norman Seabrook and Murray HuberfeldRead the Press Release
“Unfortunately, the jury in the trial against Norman Seabrook and Murray Huberfeld was unable to reach a unanimous verdict. We look forward to a retrial where we will present again the powerful proof of how Seabrook allegedly sold his duty to safeguard correction officers’ retirement money to Murray Huberfeld in exchange for cash bribes. Although justice has been delayed, we expect it will ultimately prevail.”
Spring Man Hammered with 40-Year Sentence for Child Pornography ConvictionsRead the Press Release
HOUSTON – A 37-year-old man has been ordered to federal prison for 480 months following his convictions of production and possession of child pornography, announced Acting U.S. Attorney Abe Martinez. James Kelly Hilton, of Spring, pleaded guilty Aug. 14, 2017.
Today, U.S. District Judge Alfred H. Bennett imposed a 360-month sentence for the production charge as well as another 120 months for possessing child pornography. The sentences were ordered to run consecutively. Following completion of his 40-year prison term, he will be on supervised release for the rest of his life. The court further ordered Hilton to pay $62,500 in restitution to multiple victims.
In April 2017, the mother of a victim discovered an SD card with images of Hilton sexually violating her daughter. She traveled from Spring to Oklahoma where her family resided and reported the discovery to the local authorities. Hilton followed her there, where he was taken into custody.
A forensic examination of the SD card revealed 981 images and five videos of child pornography, including eight images and a video of the identified minor victim. Authorities also seized a cell phone upon his arrest and eventually discovered 444 images of child pornography, seven of which were of the same victim.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Sherri Zack is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Southern Oregon Men Sentenced for Immigration Fraud and Money LaunderingRead the Press Release
MEDFORD, Ore. – Today, U.S. District Court Judge Michael McShane sentenced Patrick Snyder, 41, of Grants Pass, Oregon, and Juvenal Vega Rodriguez, 54, of Medford, Oregon, for perpetrating a large-scale immigration fraud and money laundering violations—more than 90 immigrants were defrauded out of more than $600,000 between 2009 and 2012. Judge McShane sentenced Snyder to 75 months of imprisonment and ordered him to pay $637,190 in restitution. Likewise, he sentenced Vega to 41 months of imprisonment and ordered him to pay $150,000 in restitution. Previously, Snyder pleaded guilty to conspiracy to commit mail and wire fraud and money laundering, and Vega pleaded guilty to money laundering.
According to court documents, Snyder and Vega used Snyder’s business, Immigration Solutions, to solicit immigrants seeking legal status in the United States, falsely promising that they could obtain legal status for these individuals for a fee that ranged between $5,000 and $10,000. While Snyder and Vega lived in the Medford, Oregon, area, Vega, who immigrated from Mexico and became a U.S. Citizen the United States in 1990s, recruited individuals to use their alleged immigration services at various church and social gatherings throughout Oregon, specifically targeting Spanish-speaking immigrants. Snyder, found to be a leader and organizer of the scheme, admitted that he targeted his victims based on their race, national origin, and ethnicity.
As part of their scheme, as noted in court records, Snyder and Vega falsely told their victims that they were accredited representatives with United States Citizenship and Immigration Services, that Snyder was a lawyer, that Snyder had connections with immigration officials, that Snyder was an immigration agent, and that Snyder was a detective with the Federal Bureau of Investigation. When clients of their alleged immigration services questioned their work, Snyder and Vega threatened those clients with deportation and other consequences.
Billy J. Williams, United States Attorney for the District of Oregon, commented, “These defendants targeted an extremely vulnerable group of individuals based on their race, national origin, and ethnicity. They were the perfect victims—they were desperate and fearful, and these defendants exploited that desperation and fear for their own greedy desires. My office cannot and will not tolerate such conduct. In addition to the FBI, I would like to thank the Medford Police Department and the Jackson County District Attorney’s Office for their assistance with this important case.”
This case was investigated by the FBI, the Medford Police Department, and the Jackson County District Attorney’s Office and is being prosecuted by Assistant U.S. Attorney Scott E. Bradford.
Southbury Man Admits to Possessing and Detonating Pipe BombRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that BRIAN FLUMAN, 34, of Southbury, pleaded guilty yesterday in Hartford federal court to one count of possession of a destructive device by a convicted felon.
According to court documents and statements made in court, on April 15, 2017, FLUMAN detonated a pipe bomb, which he had built, in the vicinity of Upper Grassy Hill Road in Woodbury.
On June 8, investigators conducted a court-authorized search of FLUMAN’s Southbury residence and seized three pipes with end caps, Pyrodex, a fuse, an electric blasting cap, and a semi-automatic rifle.
FLUMAN’s criminal history includes state felony convictions for larceny, burglary and narcotics possession.
FLUMAN has been detained since his arrest on July 26. He is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on February 7, 2018, at which time he faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the Federal Bureau of Investigation, the Connecticut State Police and the Woodbury Resident Trooper’s Office. The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
Southampton Man Charged with Illegal Re-entry After DeportationRead the Press Release
Rogelio Bernal-Pastrana, of Southampton, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Louis D. Lappen. The indictment alleges that on or about March 10, 2017, Bernal-Pastrana, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about December 17, 2010 and November 17, 2016.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Six More Defendants Charged in International "Tech Support Scam"Read the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that federal fraud charges were filed this week against six additional individuals for their participation in an international "Tech Support Scam." In a Tech Support Scam, the scammer attempts to convince the victim that he or she has a serious computer problem, and then tries to sell the victim unnecessary products and services.
The federal indictments returned on November 14, 2017, allege that all six individuals worked at a business in Boynton Beach, FL, known as Client Care Experts, LLC ("Client Care"). Client Care was formerly known as First Choice Tech Support, LLC ("First Choice"), and was formerly located in Pompano Beach, FL. With the cases filed this week, the number of former Client Care employees who have been charged with federal fraud violations now stands at fourteen – charges against the previous eight defendants were filed this spring.
According to the indictments, the conspiracy and scheme to defraud operated from approximately November 12, 2013, through at least June 29, 2016. During this period, Client Care/First Choice victimized over 40,000 people and defrauded these individuals out of more than $25,000,000. The victims were located in all fifty of the United States, the District of Columbia,
Puerto Rico, several U.S. territories, all ten Canadian provinces, the United Kingdom, and several other foreign countries. At least fifty-seven victims of the scam were located in twenty-two counties within the Southern District of Illinois, with multiple victims in both St. Clair and Madison Counties.
According to the indictments, Client Care/First Choice purchased pop-up advertisements, which appeared without warning on the victims’ computer screens and locked up their browsers. These pop-ups falsely informed the victims that serious problems, such as viruses or malware, had been detected on their computers. The pop-ups also usually warned the victims that they were at serious risk of losing their data and informed them to call a toll-free number. When the victims called the numbers shown on their screens, they were connected to Client Care/First Choice salespersons.
The indictments further allege that the salespersons convinced the victims to allow them to have remote access to their computers. Once they accessed the victims’ computers, the indictments charge, the salespersons examined routine computer functions and processes and then tried to convince the victims that these functions and processes were evidence of problems. In addition, the salespersons also ran a system analyzer program on the victims’ computers. However, regardless of what this system analyzer showed, the salespersons allegedly still tried to convince the customers that their computers had serious problems. According to the indictment, the salespersons also concealed from the victims: (1) that they could make the pop-ups go away by unplugging or rebooting their computers; and (2) that Client Care/First Choice paid for the pop-up ads which had frozen their computer browsers.
The indictments allege that the salespersons usually charged the victims $250 for a computer system "tune up," and then also sold them an anti-virus protection software for $400. The salespersons worked on commission.
The six additional individuals charged this week are: Cory Steven Bachman, 25, of Boynton Beach, FL; Tatum Elyse Espenshade, 26, of West Palm Beach, FL; Robert Thomas McCart, 32, of Boynton Beach, FL; Timothy James Miller, II, 27, of Schwenksville, PA; Jonathan Matthew Richardson, 27, of Lake Worth, FL; and Grant Clark Wasik, 35, of Boynton Beach, FL. According to the indictments, Bachman, Espenshade, and Miller all worked as salespersons. With regard to Richardson and McCart, the indictments allege that they both worked as Team Leaders, supervising groups of salespersons. Wasik is alleged to have been the Vice President of Client Care/First Choice. Arraignment hearings for all six of these defendants will be conducted later this month and in early December.
The eight individuals who were previously charged are: Joseph Ralph Aievoli, IV, 25, of Boynton Beach, FL; Andrew Douglas Broad, 26, of Boynton Beach, FL; Ryan Stocker Carr, 23, of Mount Laurel, NJ; Joshua Dennis Cortez, 37, of Lake Worth, FL; Nicholas James Davidson, 26, of Boynton Beach, FL; Patrick M. Dougherty, 35, of Boynton Beach, FL; Eric M. Iannaccone, 32, of Monroe Township, NJ; and Anthony Vincent Ludena, 29, of Boca Raton, FL. The indictments allege that Aievoli, Davidson, Dougherty, and Ludena worked as salespersons for Client Care/First Choice. It is alleged that both Broad and Cortez held the position of Director of Recruiting and Training. Carr is charged with working as a Team Leader. Iannaccone is alleged to have been the company’s Sales Manager.
Aievoli, Broad, Carr, Davidson, Dougherty, Iannaccone, and Ludena have all pled guilty and are awaiting sentencing. Cortez’s trial date has been set for January 23, 2017. Trial dates for Bachman, Espenshade, McCart, Miller, Richardson, and Wasik will be set in the near future.
All fourteen of the defendants are charged with conspiracy to commit wire fraud. Under the SCAMS Act, because it is alleged that the crimes took place in connection with telemarketing, and victimized ten or more persons over the age of 55, the maximum penalty is 30 years of imprisonment. The defendants can also be ordered to serve up to five years of supervised release
after any term of imprisonment, can be fined up to $250,000, and can be ordered to pay restitution to the victims.
These cases are part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The cases are being prosecuted by Assistant United States Attorneys Scott A. Verseman, Ranley R. Killian, and Nathan D. Stump.
The Florida Attorney General’s Office is cooperating with the federal investigation. In addition, the Florida Attorney General’s Office brought a civil enforcement action against Client Care/First Choice for the purpose of ending the fraudulent activities at that business.
The Federal Trade Commission has also been working to shut down illegal tech support scams. For more information about the FTC’s "Operation Tech Trap," please go to https://www.ftc.gov/news-events/press-releases/2017/05/ftc-federal-state-international-partnersannounce-major-crackdown.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Sentencings for November 13 - November 15, 2017Read the Press Release
Kenneth Thomas Minow, 60, of Miles City, Montana, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 15, 2017, for conspiracy to distribute methamphetamine. Minow was arrested in Miles City, Montana. He received time served, to be followed by three years of supervised release, and was ordered to pay $500.00 in restitution and a $100.00 special assessment. This case was investigated by the Sheridan County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Jose Nain Sanchez-Aburto, 31, of Apizaco, Tlaxcala, Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 14, 2017, for illegal re-entry of a previously deported alien into the United States. Sanchez-Aburto was arrested in Teton County, Wyoming. He received time served, plus ten days, was order to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jose Roberto Maya-Tzompa, 26, of Mexico City, Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on November 13, 2017, for illegal re-entry of a previously deported alien into the United States. Maya-Tzompa was arrested in Teton County, Wyoming. He received time served, plus ten days, was order to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
David Michael Hogan, 64, of Chesapeake, Virginia, was sentenced by Federal District Court Judge Alan B. Johnson on November 13, 2017, for being a felon in possession of a firearm and for transportation of a stolen vehicle. Hogan received 60 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay $20,069.85 in restitution and a $200.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Second Florida Resident Sentenced for Using Fake Credit Cards at Western PA StoresRead the Press Release
PITTSBURGH - A resident of the state of Florida has been sentenced in federal court to three years probation, two months of which shall be served at a Community Corrections Center and four months of which shall be served on home detention, restitution in the amount of $14,992.96, jointly and severally with her co-defendant, Gean Carlos Del Valle-Barquin, on her conviction of conspiracy, Acting United States Attorney Soo C. Song announced today.
United States District Judge Cathy Bissoon imposed the sentence on Jeisy Camejo-Escandell, 31, of Miami, FL.
According to the information presented to the court, Camejo-Escandell and her conspirator Gean Carlos Del Valle-Barquin arrived in Pittsburgh on June 25, 2015 for the purpose of using counterfeit credit cards to make purchases of merchandise at the outlet stores in Washington and Grove City on June 26, 2015.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the Inspectors from the United States Postal Inspection Service along with agents from Homeland Security who, as part of the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Camejo-Escandell. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
San Diego Nursing Homes Owned by L.A.-Based Brius Management to Pay up to $6.9 Million to Resolve Kickback and Fraud AllegationsRead the Press Release
LOS ANGELES – Four San Diego-area nursing homes owned by Los Angeles-based Brius Management Co. have agreed to pay as much as $6.9 million to resolve civil allegations that their employees paid kickbacks for patient referrals and submitted fraudulent bills to government health care programs.
The settlement with the four nursing homes resolves an investigation into allegations that their employees paid kickbacks to discharge planners at Scripps Mercy Hospital San Diego to induce patient referrals to the nursing homes in violation of the federal Anti-Kickback Statute.
The investigation examined additional allegations made in a “whistleblower” lawsuit that the nursing homes submitted false claims to Medicare and Medi-Cal for services provided to patients referred from Scripps Mercy Hospital. Bills submitted for patients referred as a result of illegal kickbacks would constitute fraud against the United States and the State of California.
The four nursing homes involved in the settlement are: Point Loma Convalescent Hospital, Brighton Place – San Diego, Brighton Place – Spring Valley, and Amaya Springs Health Care Center in Spring Valley.
These same four nursing homes entered into Deferred Prosecution Agreements (DPAs) with the United States Attorney’s Office in San Diego in 2016. In the DPAs, the four entities admitted that nursing home employees conspired to pay kickbacks without the knowledge of Brius Management Co. The nursing homes admitted that their employees used corporate credit cards to pay for gift cards, massages, tickets to sporting events, and a cruise on the Inspiration Hornblower that were given to planners at Scripps Mercy Hospital as kickbacks.
“Kickbacks for patient referrals are illegal under federal law because of the corrupting influence on our nation’s healthcare system,” said Acting United States Attorney Sandra R. Brown. “This settlement demonstrates our resolve to combat fraud that compromises the care provided to patients served by a government healthcare plan. This case further shows the power of whistleblowers to shine a light on corrupt activities and obtain significant recoveries on behalf of United States taxpayers.”
The settlement calls for guaranteed payments of $1,785,967 to the United States, to be paid in three annual installments, and a $240,950 lump sum payment to the State of California. The nursing homes paid the first installment to the United States on November 6, and California received its payment on November 10.
The hospitals also agreed to pay up to $4.9 million to the United States if certain operational contingencies are met, making the total settlement worth up to $6,926,917.
The four nursing homes have also entered into Corporate Integrity Agreements with the Department of Health and Human Services.
“Skilled nursing facilities that pay kickbacks in order to boost profits will be held accountable for their improper conduct,” said Christian J. Schrank, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to crack down on kickback arrangements, which can corrupt medical decision-making and undermine the public’s trust in the health care system.”
Eric S. Birnbaum, Special Agent in Charge of the San Diego Division of the Federal Bureau of Investigation, stated, “The FBI will continue to bring our resources to bear in support of False Claims Act investigations to protect the integrity of the Medicare Trust Fund.”
The settlement resolves a lawsuit brought by a former employee of one of the nursing homes under the qui tam – or whistleblower – provisions of the federal and state False Claims Acts, which allow private citizens to file lawsuits on behalf of the United States and California and share in any recovery. The whistleblower, Viki Bell-Manako, will receive 20 percent of each settlement payment. Pursuant to the settlement, United States District Judge John F. Walter today dismissed the lawsuit, United States of America, State of California ex rel. Bell-Manako v. Brius Management Co., et al., CV11-2036-JFW.
The settlement with the four nursing homes was negotiated by the Civil Fraud Section of the United States Attorney’s Office following an investigation by the Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation.
Saint Louis Park Man Pleads Guilty to Impersonating an FBI OfficerRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of ARON AVRAM SHAMILOV, 24, for impersonating a federal officer. SHAMILOV, who was indicted on September 19, pleaded guilty on November 13, 2017, before United States District Judge Susan Richard Nelson in Saint Paul, Minn. A sentencing hearing is scheduled for March 16, 2018.
According to his guilty plea and documents filed in court, on March 29, 2017, SHAMILOV submitted to an apartment leasing office a letter purportedly authored by a Special Agent of the FBI in support of the defendant’s attempt to lease an apartment. The letter, which was intended to explain SHAMILOV’S low credit score, falsely stated that SHAMILOV was the victim of identity theft. The fabricated letter included the FBI seal and was purportedly authored by a Special Agent of the Minneapolis Division of the FBI, and falsely stated that the Special Agent had been assigned to investigate SHAMILOV’S identity theft case. On May 2, 2017, the property manager of the apartment complex contacted the FBI Minneapolis Division to verify the validity of the letter. After reviewing the letter, the FBI informed the property manager that the letter was not genuine.
This case is the result of an investigation conducted by the FBI.
Assistant United States Attorneys Charles J. Kovats and Timothy C. Rank are prosecuting the case.
Defendant Information:
ARON AVRAM SHAMILOV, 24
St. Louis Park, Minn.
Convicted:
- Impersonation of an Officer or Employee of the United States, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
- Impersonation of an Officer or Employee of the United States, 1 count
Quincy Man Sentenced for Possession of Child PornographyRead the Press Release
BOSTON – A Quincy man was sentenced today in federal court in Boston for possession of child pornography.
Nicholas Oslander, 68, was sentenced by U.S. District Court Judge William G. Young to 10 years in prison and five years of supervised release. In July 2017, Oslander pleaded guilty to one count of possession of child pornography.
Following an investigation into the online trade of child pornography through peer to peer networks, a federal search warrant was executed at Oslander’s home in Quincy on Dec. 30, 2016. Forensic analysis of digital devices seized during the search revealed hundreds of images of child pornography.
In 2000, Oslander pleaded guilty in federal court in Boston to possession of child pornography and was sentenced to 30 months in prison.
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 Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Prison Sentence for Man Convicted of Endangering Human Life by Manufacturing Hash OilRead the Press Release
MEDFORD, Ore. – On Thursday, November 16, 2017, United States District Judge Michael J. McShane sentenced Brian Keith Sunkenberg, 53, to 45 months in prison after he pleaded guilty to endangering human life by manufacturing marijuana in the form of hash oil. Judge McShane ordered Sunkenberg to pay $27,671 in restitution.
According to court documents, Sunkenberg conspired with others to manufacture hash oil at a trailer park in Grants Pass, Oregon. On February 14, 2016, Sunkenberg went to a convenience store and purchased multiple large cans of butane, a highly flammable liquid used to manufacture hash oil. Later that day, while two children and another adult were present inside Sunkenberg’s trailer, the butane ignited, causing a massive explosion and fire. The fire destroyed the trailer, damaged a neighbor’s trailer, and resulted in second and third degree burns to the two children and Sunkenberg. In the trailer, investigators found twenty six 300 ml canisters of butane and an additional ten empty canisters that had apparently exploded in the fire.
After the incident, Sunkenberg and two friends went to the hospital where one of the minors was undergoing treatment for their injuries. Sunkenberg confronted the parents visiting their child and threatened “consequences” if the minor talked to investigators.
DEA Special Agent in Charge Keith Weis said, “Justice has been served to this reckless individual whose selfish criminal actions put our citizens lives in jeopardy, to include almost killing innocent children.”
“This activity is not just illegal, it poses a significant danger to the community and in this case to the children and another adult nearby,” said US Attorney Billy J Williams. “The purchase of large quantities of canned butane should raise the alarm about the illicit manufacturing of butane hash oil. Despite recent Oregon laws increasing the penalties for persons causing explosions related to these illegal manufacturing activities, illegal hash oil production is on the rise with explosions this year resulting in the deaths of three people and severe injuries to others.”
This case was investigated by agents from the U.S. Drug Enforcement Administration (DEA) and the Grants Pass Department of Public Safety, and was prosecuted by Assistant U.S. Attorney William “Bud” Fitzgerald.
Phillips 66 Store Clerk Indicted on Gun ChargesRead the Press Release
St. Louis, MO – Taleb Jawher was charged today in an Indictment with being an illegal alien in possession of a firearm.
The charge results from events that occurred on September 26, 2017. Jawher, a clerk at the Phillips 66 store at 2800 N. Florissant, was involved in an altercation with a customer he wrongly suspected of shoplifting. Jawher retrieved a handgun and in a scuffle the customer was shot and killed. Jawher was previously charged by the St. Louis Circuit Attorney’s Office with first degree murder and armed criminal action due to the death of the customer.
Jawher, 39, of St. Louis, Missouri, was indicted by a federal grand jury today on one felony count of being an illegal alien possessing the firearm involved.
If convicted, Jawher faces up to 10 years imprisonment, a fine of $250,000 or both. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis Metropolitan Police Department and Immigration and Customs Enforcement. Assistant United States Attorney John Ware is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Palmer Man Pleads Guilty to Conspiring to Import Prescription Drugs from PakistanRead the Press Release
BOSTON – A Palmer man pleaded guilty today in federal court in Springfield to his role in a conspiracy to import prescription drugs from Pakistan.
Harry Aliengena, 64, pleaded guilty to one count of conspiracy to import controlled substances, two counts of felony introduction of misbranded drugs with intent to defraud or mislead, and one count of misdemeanor introduction of misbranded drugs. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Feb. 14, 2018.
Between July 2011 and June 2012, Aliengena, acting as a middle man between a Pakistani drug company and customers based in the United States, conspired to import prescription drugs from Pakistan into the United States and, on three occasions in February and April 2012, he distributed misbranded drugs to U.S. customers. Aliengena communicated regularly with the Pakistani company and ordered various drugs, including Ritalin, Percocet, Hydrocodone, Adderall, and Restoril - all of which are designated controlled substances in the United States - and then reshipped a portion of these drugs to customers in the United States on behalf of the Pakistani company in return for payments and discounts on drugs for his personal use.
The charge of conspiracy to import controlled substances provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The charge of introduction of misbranded drugs with intent to defraud or mislead provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. The charge of introduction of misbranded drugs provides for a sentence of no greater than one year in prison, one year of supervised release and a fine of $1,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla of Weinreb’s Springfield Office is prosecuting the case.
Owners of Miami Export Business Found Guilty of Operating an Unlicensed Money Transmitting Business and International Money LaunderingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that LUIS DIAZ JR. and LUIS JAVIER DIAZ were found guilty yesterday in Manhattan federal court of operating an unlicensed money transmitting business and international money laundering in connection with their transmission of over $100 million from foreign businesses into and through the United States financial system. DIAZ JR. was additionally convicted of conspiracies to operate an unlicensed money transmitting business and engage in international money laundering. DIAZ JR. and JAVIER DIAZ were convicted following a two-week trial before U.S. District Judge William H. Pauley III.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As a jury has now found, Luis Diaz Jr. and Luis Javier Diaz operated an illegal shadow bank outside the legitimate financial system to move more than $100 million into and through the United States. Financial institutions must serve as the first line of defense against money laundering and financial crime, and this Office is committed to rooting out those who evade these controls and serve as a back channel for dirty money.”
According to the Indictment, other filings in Manhattan federal court, and the evidence presented at trial:
THE ILLEGAL MONEY TRANSMITTING SCHEME
Between at least 2010 and 2016, LUIS DIAZ JR. and LUIS JAVIER DIAZ used Miami Equipment and Export Company (“Miami Equipment”), a company they owned in Doral, Florida, to effect the transmission of at least $100 million from entities outside the United States, mostly located in Venezuela, to bank accounts in the United States and elsewhere, in exchange for a fee. During this time, the Company was not registered with the state of Florida or the Financial Crimes Enforcement Network (FinCEN), a component of the United States Department of the Treasury, as required by both state and federal laws applicable to money transmitting businesses.
Utilizing unlicensed money transmitting businesses like Miami Equipment enables entities and individuals to move money into and through the U.S. financial system while avoiding licensed U.S. financial institutions, which monitor for suspicious activity and report it to U.S. authorities, including through suspicious activity reports, or SARs. Instead, by going through unlicensed entities like Miami Equipment, foreign businesses ensure that suspicious patterns of transmissions will not be detected and reported as potential money laundering activity or other financial crime.
THE DEFENDANTS ILLEGALY TRANSMITTED MONEY
ON BEHALF OF NUMEROUS FOREIGN ENTITIES
Through their unlicensed money transmitting business, LUIS DIAZ JR. and LUIS JAVIER DIAZ enabled a number of foreign businesses to move money into and around the United States. For instance, the defendants used Miami Equipment to transmit over $100 million into the United States on behalf of KCT, a large Venezuelan consortium of construction companies. After they received this money from the Venezuelan Company, the defendants received instructions about where to send the money as well as fake invoices and contracts purporting to set forth a valid business reason for these payments. In this manner, the defendants sent money on behalf of KCT to U.S. and foreign bank accounts of shell companies located around the world, Venezuelan government officials, KCT employees in Venezuela, and others who had no relationship with Miami Equipment. For all of these transmitting activities, the Company received over $1 million in fees from KCT. In addition to KCT, DIAZ JR. and JAVIER DIAZ used Miami Equipment to effect transfers into and around the United States on behalf of other companies, mainly located in Venezuela and other South American countries.
In connection with these transfers, LUIS DIAZ JR. and LUIS JAVIER DIAZ often maintained false invoices purporting to be from the recipients of the funds to make it appear as if the payments were for actual goods or services rendered to Miami Equipment when, in truth, the money was intended for beneficiaries in the United States and abroad with no business relationship to Miami Equipment. The invoices had the effect of insulating the transmissions from scrutiny by providing a pretextual explanation for the many millions of dollars’ worth of payments. Through this conduct, the defendants and Miami Equipment functioned as an unregulated financial institution allowing foreign entities to move funds into and through the U.S. without any scrutiny, including being subject to the filing of SARs that licensed transmitting businesses are required to file.
* * *
DIAZ JR., 75, and JAVIER DIAZ, 50, both of Doral, Florida, were each convicted of one count of operation of an unlicensed money transmitting business and one count of international money laundering, which carry maximum prison sentences of five years in prison and 20 years in prison, respectively. DIAZ JR. was also convicted of conspiracy to operate an unlicensed money transmitting business and conspiracy to commit international money laundering, which carry maximum prison sentences of five years in prison and 20 years in prison, respectively. DIAZ JR. and JAVIER DIAZ are scheduled to be sentenced by Judge Pauley on March 2, 2018, at 3:00 p.m.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of HSI, DEA, the Englewood, New Jersey, Police Department, and the Border Enforcement Security Task Force.
The case is being prosecuted by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Edward B. Diskant, Daniel M. Tracer, and Benet J. Kearney are in charge of the prosecution.
Owner of Defunct Food Distribution Business Sentenced to 3 Years in Prison for Defrauding Restaurant GroupsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on November 14, MARK BERLIN, 64, of Boca Raton, Florida, was sentenced by U.S. District Judge Stefan R. Underhill in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for defrauding three restaurant groups of millions of dollars.
According to court documents and statements made in court, BERLIN owned and operated Fairfield Food Services, LLC, a Bridgeport-based food distribution business that bought meat, fish and other foods from wholesale vendors and then sold the items to restaurants and retail food distributors (“retail victims”). On a routine basis, BERLIN met with representatives for the retail victims to pitch them specific sales opportunities. Between April 2012 and April 2015, BERLIN made various misrepresentations to secure the sales, including claiming that he had arrangements with wholesale suppliers to obtain “futures contracts” from the wholesalers, and that the retail victims could “lock in” low prices if they paid for products in advance with delivery at a later date. BERLIN regularly told the retail victims that he had a “great deal” on particular products and the customers had to pay him fast in order to obtain the deals. BERLIN provided the retail victims with “Bill and Hold” invoices purportedly reflecting specific monies to be paid to the wholesale suppliers for products at the prices indicated. The retail victims then paid the “Bill and Hold” invoices in full with an understanding that the products or the futures contracts for products were being purchased from the suppliers.
The investigation revealed that BERLIN did not have “locked in” prices or “futures contracts” with wholesale suppliers, and BERLIN frequently used retail victims’ payments simply to cover his business’s immediate cash flow needs. In fact, instead of paying wholesalers before products were delivered, BERLIN typically did not pay the wholesalers for 30 or 60 days after products were delivered.
By April 2015, BERLIN was unable to keep the scheme afloat and stopped providing products to the retail victims. Shortly thereafter, Fairfield Food Services declared bankruptcy and closed its business. The Fairfield Food Services’ bankruptcy filing lists a total of approximately $5.3 million owed to three restaurant groups that paid BERLIN in advance for products, and hundreds of thousands of dollars owed to wholesale suppliers for products for which Fairfield Food Services had already taken delivery.
BERLIN contends that not all of the approximately $5.3 million owed to his retail victims was obtained by fraud. The government’s position is that BERLIN obtained at least $3.9 million and as much as $5.3 million by fraud.
Judge Underhill ordered BERLIN to pay restitution in the total amount of $5.3 million
On May 31, 2017, BERLIN pleaded guilty to one count of wire fraud.
Judge Underhill ordered BERLIN, who is released on bond, to report to prison on June 8, 2018.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Osage Beach Woman Sentenced for Stolen Mail, Bank Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Osage Beach, Mo., woman was sentenced in federal court today for a scheme to use stolen mail and stolen identities to cash fraudulent checks at area banks.
Chrystal Lynn Bernstein, 27, of Osage Beach, was sentenced by U.S. District Judge Brian C. Wimes to three years in federal prison without parole. The court also ordered Bernstein to pay $13,101 in restitution to her victims.
On May 9, 2017, Bernstein pleaded guilty to one count of bank fraud and one count of aggravated identity theft. Bernstein admitted that she engaged in a scheme to obtain stolen mail (including checks), then use stolen identities to cash and deposit the checks at several banks in Boone and Camden Counties from December 2016 to Feb. 16, 2017.
Bernstein opened accounts at Central Bank of the Lake of the Ozarks and at Landmark Bank in the names of persons whose names and Social Security numbers she obtained without their permission or knowledge. Bernstein admitted she altered the payee on some of the stolen checks she obtained in order to cash them in the names of a mother and daughter in California whose identities she had stolen. She also admitted that she deposited a stolen check into a fraudulent bank account that was opened under another person’s name. Bernstein also passed a bad check for $826 at a Columbia, Mo., business using a stolen identity.
Bernstein was arrested during a traffic stop on Feb. 1, 2017, in Lake Ozark. She was in possession of a driver’s license, Social Security card and credit card bearing another person’s name. Bernstein was able to bond out and was released.
On Feb. 16, 2017, Bernstein attempted to cash a check at Central Bank. Bernstein was arrested as she returned to her residence, driving a vehicle with a reported stolen license plate. Law enforcement officers searched the vehicle and found checks and money orders in the trunk that had been stolen from two additional victims.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the U.S. Postal Inspection Service, the Columbia, Mo., Police Department, the Lake Ozark, Mo., Police Department, the Osage Beach, Mo., Police Department, the Camdenton, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
Ohio man sentenced for trafficking heroin and cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Daryl “Malik” Walter Hall, of Youngstown, Ohio, was sentenced today to 100 months incarceration for trafficking heroin and cocaine, United States Attorney Bill Powell announced.
Hall, age 31, pled guilty to one count of “Conspiracy to Distribute Heroin and Cocaine Base” in September 2017. The crime occurred between August 2016 to April 2017 in Hancock County.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Hancock/Brooke/Weirton Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick R. Stamp, Jr., presided.North Carolina Tax Return Preparer Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
A former Durham, North Carolina, tax return preparer was sentenced to 24 months in prison today for aiding and assisting in the preparation of fraudulent income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents filed with the court, Maria Streater worked for KEF Professional Tax Services, a tax preparation business located in Durham. From 2012 through 2014, Streater prepared fraudulent income tax returns for clients by creating false sources of income in order to maximize the earned income tax credit and obtain refunds to which her clients were not entitled. Streater agreed that she caused a tax loss of $274,090.
In addition to the term of prison imposed, U.S. District Court Judge Catherine C. Eagles ordered Streater to serve one year of supervised release and to pay $83,083 in restitution to the Internal Revenue Service (IRS).
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Anand Ramaswamy and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
North Carolina Tax Return Preparer Sentenced to Prison for Tax and Bankruptcy FraudRead the Press Release
A Greensboro, North Carolina, resident was sentenced today to 37 months in prison for corruptly endeavoring to obstruct the Internal Revenue Service (IRS), filing a fraudulent tax return, and bankruptcy fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents and information provided to the court, during 2008 and 2009, Hassie Demond Nowlin, aka Demond Nowlin and Brilliant Knowlin, 44, filed several fraudulent tax returns with the IRS that included fake income and withholding taxes and sought more than $750,000 in fraudulent refunds. Nowlin also filed documents with the Guilford County Register of Deeds purporting to renounce his United States citizenship and proclaiming to be a sovereign citizen. Between 2008 and 2010, the IRS assessed taxes, penalties and interest against Nowlin related to the fraudulent returns. After being notified of the assessments, Nowlin began concealing his assets and placing them in the names of nominee entities.
Nowlin also admitted that between 2011 and 2017, he earned hundreds of thousands of dollars operating a tax preparation business. Nowlin filed hundreds of tax returns for clients that claimed phony business and education expenses, sought refunds to which the clients were not entitled and did not identify him as the paid preparer. Nowlin caused the fees he earned to be deposited into nominee bank accounts that he controlled. Nowlin also admitted that he made false statements to IRS agents, including that he did not prepare tax returns for clients.
In addition to the tax-related charges, Nowlin also admitted to attempting to cheat his creditors by filing fraudulent personal bankruptcy petitions. Along with these petitions, Nowlin also submitted false financial statements on which he did not fully disclose his income and assets.
In addition to his term of imprisonment, U.S. District Court Judge Catherine C. Eagles ordered Nowlin to serve three years of supervised release and to pay restitution to the IRS in the amount of $188,001.89. Nowlin pleaded guilty in August to obstructing the internal revenue laws, filing a fraudulent tax return, and bankruptcy fraud.
Acting Deputy Assistant Attorney General Stuart M. Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Anand P. Ramaswamy of the Middle District of North Carolina, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
North Carolina Tax Return Preparer Sentenced to Prison for Tax and Bankruptcy FraudRead the Press Release
WASHINGTON – A Greensboro, North Carolina, resident was sentenced today to 37 months in prison for corruptly endeavoring to obstruct the Internal Revenue Service (IRS), filing a fraudulent tax return, and bankruptcy fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents and information provided to the court, during 2008 and 2009, Hassie Demond Nowlin, aka Demond Nowlin and Brilliant Knowlin, 44, filed several fraudulent tax returns with the IRS that included fake income and withholding taxes and sought more than $750,000 in fraudulent refunds. Nowlin also filed documents with the Guilford County Register of Deeds purporting to renounce his United States citizenship and proclaiming to be a sovereign citizen. Between 2008 and 2010, the IRS assessed taxes, penalties and interest against Nowlin related to the fraudulent returns. After being notified of the assessments, Nowlin began concealing his assets and placing them in the names of nominee entities.
Nowlin also admitted that between 2011 and 2017, he earned hundreds of thousands of dollars operating a tax preparation business. Nowlin filed hundreds of tax returns for clients that claimed phony business and education expenses, sought refunds to which the clients were not entitled and did not identify him as the paid preparer. Nowlin caused the fees he earned to be deposited into nominee bank accounts that he controlled. Nowlin also admitted that he made false statements to IRS agents, including that he did not prepare tax returns for clients.
In addition to the tax-related charges, Nowlin also admitted to attempting to cheat his creditors by filing fraudulent personal bankruptcy petitions. Along with these petitions, Nowlin also submitted false financial statements on which he did not fully disclose his income and assets.
In addition to his term of imprisonment, U.S. District Court Judge Catherine C. Eagles ordered Nowlin to serve three years of supervised release and to pay restitution to the IRS in the amount of $188,001.89. Nowlin pleaded guilty in August to obstructing the internal revenue laws, filing a fraudulent tax return, and bankruptcy fraud.
Acting Deputy Assistant Attorney General Stuart M. Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS Criminal Investigation, who conducted the
investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Anand P. Ramaswamy of the Middle District of North Carolina, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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North Carolina Tax Return Preparer Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
WASHINGTON – A former Durham, North Carolina, tax return preparer was sentenced to 24 months in prison today for aiding and assisting in the preparation of fraudulent income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents filed with the court, Maria Streater worked for KEF Professional Tax Services, a tax preparation business located in Durham. From 2012 through 2014, Streater prepared fraudulent income tax returns for clients by creating false sources of income in order to maximize the earned income tax credit and obtain refunds to which her clients were not entitled. Streater agreed that she caused a tax loss of $274,090.
In addition to the term of prison imposed, U.S. District Court Judge Catherine C. Eagles ordered Streater to serve one year of supervised release and to pay $83,083 in restitution to the Internal Revenue Service (IRS).
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Anand Ramaswamy and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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Nigerian Nationals Detained in Elaborate Bank Fraud, Counterfeit Passport SchemeRead the Press Release
PROVIDENCE, RI – Two Nigerian nationals have been detained in federal custody in Rhode Island on charges they allegedly participated in a large-scale counterfeit bank fraud and passport scheme, with an intended loss of more than $850,000.
Acting United States Attorney Stephen G. Dambruch and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations for New England, announced the arrest today of Olugboyega Akinloye Fasanya, 35, of Woonsocket, and Anthony Chidozie Ezike, 35, of Pawtucket, on a federal criminal complaint charging them with conspiracy to commit bank fraud and use of counterfeit passports. Fasanya and Ezike made initial appearances in U.S. District Court in Providence today and were ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond.
According to an affidavit in support of the criminal complaint, it is alleged that beginning in June 2015, Fasanya orchestrated a scheme that defrauded more than ten banks in Rhode Island, Massachusetts and elsewhere by acquiring and altering originally lawfully passed checks between commercial entities. The checks were altered to be made out to aliases used by Fasanya, Ezike and others, and deposited into bank accounts opened using the aliases. In many instances, the funds were removed from the accounts prior to the fraud being detected by the financial institutions.
It is also alleged that the scheme involved the sending of unauthorized wire transfers into accounts opened using the false identities, followed by rapid withdrawals. It is alleged that the defendants used counterfeit passports from Nigeria, Ghana and South Africa as forms of identification when opening various bank accounts used to execute the scheme.
According to the affidavit, it is alleged that participants in the scheme deposited fraudulent checks and wires totaling approximately $853,000 and successfully obtained approximately $368,000 through withdrawals and debit purchases.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney Lee H. Vilker.
The matter was investigated by Homeland Security Investigations with the assistance of U.S. Customs and Border Protection, and the Woonsocket, Pawtucket and Warwick Police Departments.
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New Orleans Man Sentenced in Cocaine and Firearm ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced yesterday’s sentencing of ANTONIO NEVEAUX, age 42, of New Orleans, following the August 2017 trial.
U.S. District Judge Susie Morgan sentenced NEVEAUX to 138 months imprisonment, followed by 4 years of supervised release.
On August 8, 2017, a federal jury found NEVEAUX guilty of conspiracy to distribute 28 grams or more of cocaine base, conspiracy to obstruct justice, possession with intent to distribute 28 grams or more of cocaine base, and possession of a firearm in furtherance of a drug-trafficking crime.
Co-defendant ANTHONY B. WASHINGTON pleaded guilty to conspiracy to obstruct an official proceeding and sentencing is scheduled for December 19, 2017. Co-defendant TERRANCE SMITH pleaded guilty to conspiracy to possess with intent to distribute crack cocaine and sentencing is scheduled for December 13, 2017.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosive and the Housing Authority of New Orleans Police Department in investigating this matter. Assistant U.S. Attorneys Michael McMahon, David Sinkman and Jeff Sandman were in charge of the prosecution.
New Orleans Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TIM NALL, age 62, of New Orleans, pled guilty today to a one-count Bill of Information charging him with receipt of images and videos depicting the sexual exploitation of children.
According to court documents, law enforcement officials executed a search warrant at NALL’s residence on July 25, 2017, during which time they seized numerous electronic items including one desktop computer and numerous loose storage media, such as CDs and DVDs which contained images and videos depicting the sexual victimization of children. A forensic examination of the device revealed that NALL used the devices to search for, download, and save images and videos of children younger than two-years old engaging in sexually explicit conduct. The forensic examination located approximately 2,080 images and 2 videos of prepubescent children engaging in sexually explicit on NALL’s digital devices.
NALL faces a mandatory minimum of five years imprisonment and a maximum term of imprisonment of 20 years, followed by up to a lifetime of supervised release, and a $250,000 fine per count. He can also be required to register as a sex offender. Sentencing before Judge Barbier has been scheduled for February 22, 2018.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 www.projectsafechildhood.gov.
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 prosecution.
New Orleans Man Charged with Production of Child PornographyRead the Press Release
Acting United States Attorney Duane A. Evans announced today that JON C. BALLAY, age 58, of New Orleans, was charged in a three-count Indictment with production of images and videos depicting the sexual exploitation of a fourteen-year-old girl.
If convicted, BALLAY faces a mandatory minimum term of imprisonment of 15 years and a maximum term of 30 years per count, followed by up to a lifetime of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 www.projectsafechildhood.gov.
Acting United States Attorney Evans reiterated that the Indictment 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 Federal Bureau of Investigation in investigating this matter, and specifically the FBI New Orleans Violent Crimes Against Children Task Force, which includes members of the Jefferson Parish Sheriff’s Office, the Kenner Police Department, and the Louisiana State Police. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
New Indictment in Federal RICO Case Targeting Crips Gang Adds Murder Charge Related to Previously Unsolved HomicideRead the Press Release
LOS ANGELES – A federal grand jury has returned a new indictment in a racketeering case targeting the Five Deuce Broadway Gangster Crips (BGC) street gang that adds a murder charge stemming from a previously unsolved 2012 homicide, Acting United States Attorney Sandra R. Brown announced today.
The “second superseding indictment” charges BGC member Joshua Perez, also known as “Tiny Ange,” in the murder of 37-year-old William Sherman, who was killed after BGC gangsters mistakenly identified him as being part of a group that were members of a rival gang.
The new indictment also alleges that co-defendant Marquis Shaw, also known as “T-Loon,” participated in the attack that resulted in Sherman’s murder. Shaw also faces charges previously filed in the BGC case that allege he committed a 2003 murder of a non-gang member outside of the House of Blues in West Hollywood.
Perez, 26, and Shaw, 43, allegedly are prominent members of a BGC clique known as the Gremlin Riderz, a violent enforcement arm that acts as the gang’s hit squad, which includes enforcing discipline among the gang’s members and carrying out acts of retaliation against rival gangs.
The new charges in the indictment accuse Perez of committing murder in aid of racketeering and using a firearm in relation to a crime of violence that caused death. Each of these offenses carries a mandatory sentence of life without parole in federal prison.
The indictment alleges that Sherman was murdered during a May 10, 2012 incident in which BGC members were retaliating against a rival gang for the murder of a BGC member. BGC members traveled in a multi-vehicle convoy to a party being held by the rival gang, and fired at least 40 shots into a group of men who were walking to the party. Sherman was killed and two others were injured in the shooting. The victims were not members of the rival gang targeted by BGC. Prior to the second superseding indictment, no one had been charged in the killing.
The second superseding indictment returned by a federal grand jury on November 9 charges Perez, Shaw and five other BGC members with participating in a conspiracy to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. Members of the conspiracy allegedly engaged in murders, robberies, witness and informant intimidation, and narcotics sales.
The new indictment is the latest development in a case originally filed in 2014 against 72 members and associates of the BGC, a violent and primarily African-American gang that controls parts of South Los Angeles and downtown Los Angeles. Out of the 72 defendants originally charged in a 213-page RICO indictment, 64 defendants have pleaded guilty and one was convicted at trial. Many of those convicted have received lengthy prison sentences – including the leader of the BGC, who was sentenced to nearly 22 years in federal prison – and those defendants have been banned from living in BGC territory after they complete their prison terms.
After the filing of the original indictment in this case, federal and local law enforcement authorities continued to investigate the BGC, which included reexamining the 2012 attack that led to Sherman’s murder and developing new witnesses to that incident.
The seven defendants named in the second superseding indictment – the only defendants remaining in the BGC case – are scheduled to go on trial on February 6, 2018 before United States District Judge S. James Otero. Perez and Shaw each face mandatory terms of life in prison if convicted of the murder charges alleged in the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The investigation into the BGC was conducted by agents and officers with the Federal Bureau of Investigation and the Los Angeles Police Department. Considerable assistance was provided during this investigation by the California Department of Corrections and Rehabilitation, the Torrance Police Department, the Buena Park Police Department, the El Segundo Police Department, the San Bernardino Police Department and the Los Angeles City Attorney’s Office.
This case is being prosecuted by Assistant United States Attorney Mack Jenkins, Chief of the Public Corruption and Civil Rights Section; Assistant United States Attorneys Max Shiner and Wilson Park of the Violent and Organized Crime Section; and Assistant United States Attorney Sheila Nagaraj of the Public Corruption and Civil Rights Section.
New Haven Man Pleads Guilty to Illegally Possessing Firearm, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEVEN SINGH, 39, of New Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of possession of a firearm by a previously convicted felon. SINGH also admitted to violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on June 14, 2017, the FBI executed a search warrant at SINGH’s resident on Hallock Street in New Haven and seized approximately five grams of crack cocaine, narcotics paraphernalia, and a Taurus 9mm semi-automatic pistol containing a magazine loaded with 10 rounds of ammunition.
SINGH has three prior federal convictions. In June 2011, he was sentenced in Bridgeport federal court to 24 months of imprisonment and five years of supervised release for distributing crack cocaine and, in July 2015, he was sentenced to 38 months of imprisonment and three years of supervised release for illegally possessing ammunition and violating the conditions of his supervised release imposed when he was sentenced in 2011. He was released from prison in March 2016.
SINGH has been detained since his arrest on June 14, 2017. When he is sentenced, SINGH faces a maximum term of imprisonment of 10 years for the firearm offense, and a maximum term of imprisonment of two years for violating his supervised release. A sentencing date has not been scheduled.
This matter is being investigated by the Federal Bureau of Investigation and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Nationwide Identity Theft and IRS Tax Fraud Scheme Results in Federal Prison SentenceRead the Press Release
EUGENE, Ore.—On Wednesday, November 15, 2017, United States District Court Judge Ann Aiken sentenced Lateef Aina Animawun, 37, a Nigerian citizen and recent resident of the Atlanta, Georgia area, to federal prison for 65 months for his role in committing conspiracy to commit mail and wire fraud, aggravated identity theft and mail and wire fraud. He was also ordered to pay $2,304,044.92 in restitution. Animawun will be subject to deportation upon completion of his prison sentence.
According to court documents, in May 2013, a Medford victim notified the IRS that false federal and Oregon state tax returns were filed electronically using her and her husband’s names. The returns included personally identifiable information (PII) including their social security numbers and dates of birth.
An IRS investigation led to search warrants of residences in Illinois, Maryland and Georgia and numerous email and instant messenger accounts used by the defendant and other co-conspirators to further their fraudulent scheme. Agents seized prepaid debit cards with fraudulent tax refunds still on them, approximately $79,000 worth of money orders, over $14,000 in cash and electronic devices. The IRS determined that the co-conspirators obtained the stolen PII of more than 250,000 victims. This included stolen identities from the database of an Oregon company purchased from sources in Vietnam by one of the co-conspirators. Additionally, the co-conspirators gained access to the IRS “Get Transcript” system where they obtained sensitive taxpayer information on their identity theft victims and used it to file fraudulent tax returns.
Agents found thousands of stolen identities in Animawun’s email accounts many of them originating from co-defendant Emmanuel Kazeem. Animawun directly accessed victim IRS taxpayer transcripts, he used prepaid debit cards set up with the stolen identities to file numerous fraudulent tax returns and wired fraudulent tax refunds to Nigeria.
Last August, a federal jury in Medford convicted Emmanuel Kazeem of 19 counts of mail and wire fraud, aggravated identity theft and conspiracy to commit mail and wire fraud. Based on evidence presented at the trial, Emmanuel Kazeem purchased over 91,000 of the stolen taxpayer identities from a Vietnamese hacker. These stolen identities originated from the Oregon Company database and most of them belonged to victims living in Oregon and Washington. His sentencing is currently set for March 22, 2018. The sentencing for Oluwamuyiwa Olawoye is scheduled for April 19, 2018 for his role in the offenses. Three other co-defendants, Oluwaseunara Osanyinbi, Oluwatobi Dehinbo and Michael Kazeem have been sentenced.
This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services, Office of Inspector General and the FBI. Investigative support was provided by the Treasury Inspector General for Tax Administration; the U.S. Postal Inspection Service; the U.S. Department of State; and, the U.S. Department of Homeland Security, Homeland Security Investigations and Enforcement and Removal Operations. Byron Chatfield and Gavin Bruce, Assistant United States Attorneys, are prosecuting the case for the District of Oregon.
Monroe County Man Sentenced to 17 ½ Years in Prison for Heroin and Sex TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose Velazquez, age 27, was sentenced to 17 ½ years in prison yesterday by U.S. District Court Judge Malachy E. Mannion, for participating in a heroin trafficking conspiracy that stretched from Stroudsburg to New York to the state of Maine, and forcing or coercing women into engage in prostitution in northeastern Pennsylvania.
According to United States Attorney Bruce D. Brandler, Velazquez, who used the street name “Sev,” previously pleaded guilty to conspiring with others to distribute more than 100 grams of heroin (which is approximately equivalent to 4000 retail bags of heroin) and to sex trafficking an adult female between 2012 and 2014, using force and coercion.
Velazquez was originally indicted along with six other people by a federal grand jury in September 2015. In October 2016, Velazquez was charged in a superseding indictment with drug trafficking and sex trafficking crimes.
Velazquez’s conviction and sentence resulted from an investigation into the activities of a street gang known as the Black P-Stones. The superseding indictment alleged that male gang members were “beaten-in” to the gang and female members were “sexed-in” to the gang. The superseding indictment further alleged that members of the Black P-Stones obtained heroin in New York and distributed the heroin in Stroudsburg and locations in the state of Maine. According to the superseding indictment, couriers were used to transport heroin from New York to Maine.
The superseding indictment further alleged that females were “sexed-in” to the gang by being forced to engage in sex with male gang members; recruited and coerced to engage in prostitution; advertised as adult escorts on a website; provided with heroin and other drugs; and placed in various are hotels/motels to work as prostitutes. Male gang members used threats, force, drugs, and intimidation to coerce females to engage in prostitution.
Judge Mannion also ordered the defendant to serve five years of supervised release following his prison sentence. Velazquez must also comply with sex offender registration and notification requirements.
The case was investigated by agents of the Federal Bureau of Investigation, members of the Pennsylvania State Police, Maine State Police, the Monroe County District Attorney’s Office, and local police in Monroe County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Mobile County Man Found Guilty of Possession of a Firearm After Being Convicted of FelonyRead the Press Release
The United States Attorney, Richard W. Moore, announces that David Tyler Nelson, a 22 year old, resident of Coden, Alabama was found guilty of possession of a firearm after conviction of a felony.
The evidence produced at trial showed that on May 13, 2017, Mobile County, Alabama deputies conducted a traffic stop of a GMC Arcadia that belonged to Nelson’s father. The vehicle was stopped because of an expired tag and turning without giving a signal. Nelson was observed in the front passenger seat sleeping with a hand gun protruding from his waistband. The firearm was immediately seized from Nelson’s person and determined to be a .25 caliber Beretta pistol. Deputies awakened Nelson. They asked why he had the firearm. Nelson responded, “I bought it for a couple bills and took it across the bay.” Nelson was then asked his name and he replied, “Tyler Perry,” and gave his dated of birth as “January 1, 1995”. A records check on the scene did not produce an identity or any information based on what Nelson provided. Inside the vehicle, deputies found a work ID for Nelson that had his picture and correct name. Deputies then confronted Nelson with the photo ID and he stated that his name was “David Tyler Nelson” and gave his true date of birth. A records check of the accurate information revealed that Nelson had been convicted of Unlawful Possession or Receipt of a Controlled Substance on June 30, 2016.
Mr. Nelson will be sentenced on February 21, 2018, before the Honorable Callie V. S. Granade.
The Federal Bureau of Investigation along with the Mobile County Sheriff’s Office investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutors assigned to the case was Assistant United States Attorneys, Erica Hilliard, Lawrence Bullard and Gina S. Vann.
Mississippi Skilled Nursing Facility, Related Companies, and Executives Agree to Pay $1.25 Million to Settle False Claims Act Allegations of Grossly Substandard Care to Facility ResidentsRead the Press Release
WASHINGTON – The Department of Justice announced today that Hyperion Foundation, a Georgia not-for-profit entity (Hyperion), Julie Mittleider, a resident of Georgia and Hyperion’s former President, AltaCare Corporation, a Georgia corporation engaged in nursing home management (AltaCare), Douglas Mittleider, AltaCare’s Chief Executive Officer, and related companies, Long Term Care Services Inc. and Sentry Healthcare Acquirors Inc., have agreed to pay the United States a total of $1.25 million to resolve allegations of false claims to Medicare and the Mississippi Medicaid program for providing grossly substandard care to residents at the Oxford Health and Rehabilitation nursing home in Lumberton, Mississippi, from late 2005 through mid-2012, when it was operated by AltaCare, under a contract with Hyperion.
“Residents of nursing homes are some of our most vulnerable citizens,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “Nursing home operators who bill Medicare and Medicaid for providing their residents with grossly deficient services will be held accountable.”
The government alleged that from October 2005 to May 2012, Hyperion made claims to Medicare and Medicaid for providing effectively worthless services to residents at the Lumberton, Mississippi facility, while the facility was managed by AltaCare. For example, the United States alleged that Hyperion failed to meet the nutritional needs of residents, failed to administer medications to residents as prescribed by their physicians, overmedicated residents, hired insufficient staff to care for them, and diverted Medicare and Medicaid funds to other entities affiliated with Douglas or Julie Mittleider, leaving the facility unable to pay for its basic operations, including food, heat, air conditioning, pest control, and cleaning. These failures, the United States alleged, caused the facility’s residents to suffer pressure ulcers, falls, dehydration, and malnutrition, among other physical, mental and emotional harms. As a result, Hyperion allegedly submitted false claims for grossly substandard care, and Douglas Mittleider, AltaCare and certain related companies allegedly caused such false claims.
“When operators of nursing homes harm our most vulnerable citizens and break the law by defrauding our government for grossly substandard or worthless services, we will bring to bear all the resources of the Federal Government in order to rectify these terrible actions,” said D. Michael Hurst, Jr., U.S. Attorney for the Southern District of Mississippi. “I commend our attorneys and investigators for resolving this travesty with one of the largest healthcare fraud settlements involving a single nursing home. We will continue the Department of Justice’s long-standing commitment to protecting the elderly.”
“It’s troubling when a nursing home company and its executives accept Medicare and Medicaid money to care for vulnerable nursing home residents and provide grossly deficient care, as alleged in this case,” said Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to hold nursing homes accountable to ensure residents receive quality healthcare and are provided safe living conditions.”
The settlement resolves allegations filed in a lawsuit by Academy Health Center Inc., the owner and landlord of the Lumberton, Mississippi skilled nursing facility. The lawsuit was filed under the qui tam provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims and share in any recovery. The False Claims Act authorizes the United States to intervene and take over primary responsibility for the action, as it did in this case. The amount to be recovered by the private whistleblower has not been determined.
The case is captioned United States ex rel. Academy Health Center, Inc. v. Hyperion Foundation, Inc., et al., 3:10-cv-552-CWR-LRA (S.D. Miss.). It was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Mississippi, and HHS-OIG. The claims settled by this agreement are allegations only, and there has been no determination of liability.
The government’s complaint in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
Mississippi Skilled Nursing Facility, Related Companies, and Executives Agree to Pay $1.25 Million to Settle False Claims Act Allegations of Grossly Substandard Care to Facility ResidentsRead the Press Release
The Department of Justice announced today that Hyperion Foundation, a Georgia not-for-profit entity (Hyperion), Julie Mittleider, a resident of Georgia and Hyperion’s former President, AltaCare Corporation, a Georgia corporation engaged in nursing home management (AltaCare), Douglas Mittleider, AltaCare’s Chief Executive Officer, and related companies, Long Term Care Services Inc. and Sentry Healthcare Acquirors Inc., have agreed to pay the United States a total of $1.25 million to resolve allegations of false claims to Medicare and the Mississippi Medicaid program for providing grossly substandard care to residents at the Oxford Health and Rehabilitation nursing home in Lumberton, Mississippi, from late 2005 through mid-2012, when it was operated by AltaCare, under a contract with Hyperion.
“Residents of nursing homes are some of our most vulnerable citizens,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “Nursing home operators who bill Medicare and Medicaid for providing their residents with grossly deficient services will be held accountable.”
The government alleged that from October 2005 to May 2012, Hyperion made claims to Medicare and Medicaid for providing effectively worthless services to residents at the Lumberton, Mississippi facility, while the facility was managed by AltaCare. For example, the United States alleged that Hyperion failed to meet the nutritional needs of residents, failed to administer medications to residents as prescribed by their physicians, overmedicated residents, hired insufficient staff to care for them, and diverted Medicare and Medicaid funds to other entities affiliated with Douglas or Julie Mittleider, leaving the facility unable to pay for its basic operations, including food, heat, air conditioning, pest control, and cleaning. These failures, the United States alleged, caused the facility’s residents to suffer pressure ulcers, falls, dehydration, and malnutrition, among other physical, mental and emotional harms. As a result, Hyperion allegedly submitted false claims for grossly substandard care, and Douglas Mittleider, AltaCare and certain related companies allegedly caused such false claims.
“When operators of nursing homes harm our most vulnerable citizens and break the law by defrauding our government for grossly substandard or worthless services, we will bring to bear all the resources of the Federal Government in order to rectify these terrible actions,” said D. Michael Hurst, Jr., U.S. Attorney for the Southern District of Mississippi. “I commend our attorneys and investigators for resolving this travesty with one of the largest healthcare fraud settlements involving a single nursing home. We will continue the Department of Justice’s long-standing commitment to protecting the elderly.”
“It’s troubling when a nursing home company and its executives accept Medicare and Medicaid money to care for vulnerable nursing home residents and provide grossly deficient care, as alleged in this case,” said Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to hold nursing homes accountable to ensure residents receive quality healthcare and are provided safe living conditions.”
The settlement resolves allegations filed in a lawsuit by Academy Health Center Inc., the owner and landlord of the Lumberton, Mississippi skilled nursing facility. The lawsuit was filed under the qui tam provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims and share in any recovery. The False Claims Act authorizes the United States to intervene and take over primary responsibility for the action, as it did in this case. The amount to be recovered by the private whistleblower has not been determined.
The case is captioned United States ex rel. Academy Health Center, Inc. v. Hyperion Foundation, Inc., et al., 3:10-cv-552-CWR-LRA (S.D. Miss.). It was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Mississippi, and HHS-OIG. The claims settled by this agreement are allegations only, and there has been no determination of liability.
The government’s complaint in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
Mexican National Charged with Illegal ReentryRead the Press Release
BOSTON – Carlos Lucera-Mejia, 28, was charged today in federal court in Boston with one count of unlawful reentry of a deported alien.
According to the indictment, law enforcement in Chelsea encountered Lucera-Mejia in October 2017 and determined him to be illegally present in the United States. Lucera-Mejia was previously deported in April 2016.
The charge provides for a sentence of no greater than two years in prison, one year of supervised released, and a fine of up to $250,000. Lucera-Mejia will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mexican Citizen Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Reynaldo Cristobal Jimenez Jimenez, age 25, and a citizen of Mexico, was sentenced today to time served (22 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Jimenez Jimenez admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on September 16, 2012.
On October 25, 2017, ICE Officers arrested Jimenez Jimenez in Queensbury, New York.
Following the sentencing, Jimenez Jimenez was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Malden Man Charged with Illegal Possession of a FirearmRead the Press Release
BOSTON – Trey Miller, 18, of Malden, was indicted today in federal court on charges of being a felon in possession of a weapon and ammunition.
According to the indictment, on Oct. 31, 2017, Miller, having previously been convicted of a felony, possessed a Smith & Wesson .45 caliber pistol and 10 rounds of .45 caliber ammunition.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $250,000. 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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Malden Police Chief Kevin Molis made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Local Tax Return Preparer Sent to Prison for Fraudulent Refund SchemeRead the Press Release
HOUSTON – A tax return preparer who operated a local business under various names has been ordered to federal prison for willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, announced acting U.S. Attorney Abe Martinez. Albert Bobby Daniels Jr. pleaded guilty Aug, 3, 2017.
Today, U.S. District Judge Alfred H. Bennett handed Daniels a 21-month sentence to be immediately followed by a year of supervised release. He was further ordered to pay $257,590 in restitution to the IRS.
According to the criminal information and plea agreement filed in the record of the case, Daniels was in the business of preparing income tax returns and operated that business under various names including Home Based Business Tax Services in Houston. Daniels admitted he willfully added numerous false deductions and credits to 45 client income tax returns without their knowledge in order to inflate refunds by approximately $257,590.
The sentencing hearing today revealed that his motive was to develop a reputation for getting large client refunds, which could generate more fees.
Daniels was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Austin office of IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.