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Wednesday 4 October 2017
Illegal Alien Sentenced in Federal CourtRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Ramon Orlando Alvarenga-Rodriguez was sentenced, in federal court in Columbia, South Carolina, for Illegal Re-entry by a Previously Deported Alien, a violation of 8 U.S.C. § 1326. United States District Judge J. Michelle Childs sentenced Alvarenga-Rodriguez to 4 months imprisonment and a $100.00 special assessment.
Evidence presented at the change of plea hearing established that Alvarenga-Rodriguez is a citizen of Honduras and had previously been deported three times before illegally re-entering the United States again. He was arrested by a Kershaw County Deputy Sheriff for unrelated charges and Immigration and Custom Enforcement-Enforcement Removal Operations was notified.
This case was investigated by Immigration and Custom Enforcement-Enforcement Removal Operations and the Kershaw County Sherriff’s Office. Assistant United States Attorney William E. Day, II of the Columbia office prosecuted the case.
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Illegal Alien Sentenced for Re-entering the United States after Prior DeportationsRead the Press Release
Jackson, Miss. – Simon Parra-Avila, a/k/a Jose Simon Parra-Barragan, a/k/a Simon Parra-Barraga, 27, from Morton, Mississippi, and a citizen of Mexico, was sentenced on October 3, 2017, by Senior U.S. District Judge David C. Bramlette, III, to serve three months in federal prison followed by deportation for illegally entering the United States after having been previously deported by the United States to Mexico in 2008, 2010, and 2011, announced Acting U.S. Attorney Harold Brittain.
During each of his deportations to Mexico, Parra-Avila was warned that he must not return to the United States without proper legal authority. On April 12, 2017, in Morton, MS, federal agents found Parra-Avila, who had failed to obtain the permission of any U.S. authorities to enter the United States legally.
This case was prosecuted by Assistant United States Attorney Carla J. Clark and investigated by the Department of Homeland Security, Immigrations and Customs Enforcement, Office of Enforcement and Removal Operations.
Houma Man Pleads Guilty to Meth ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that BLAIR ANDERSON, age 42, of Houma, pled guilty today to an Indictment charging him with violations of the Federal Controlled Substances Act.
According to court documents, in January 2015, following a series of controlled narcotic purchases, ANDERSON was arrested at his home. Pursuant to a search warrant of ANDERSON’s home, agents found approximately 125 grams of methamphetamine, other controlled substances, and paraphernalia associated with drug use and distribution.
ANDERSON faces a minimum term of five years of imprisonment, a maximum fine of $5,000,000, at least four years of supervised release, and a mandatory $100 special assessment.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration, United States Postal Inspection Service, Louisiana State Police, and Houma Police Department in investigating this matter. Assistant U.S. Attorney James S. C. Baehr is in charge of the prosecution.
Honduran National Sentenced for Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MAURICIO RODRIGUEZ-BORJAS, age 38, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal re-entry of removed alien.
U.S. District Judge Sarah S. Vance sentenced RODRIGUEZ-BORJAS to time served and one year supervised release. RODRIGUEZ-BORJAS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to the court documents, on June 1, 2017, RODRIGUEZ-BORJAS, was found in the United States after having been deported previously on October 28, 2013.
Acting U.S. Attorney Evans praised the work of the Immigration and Customs Enforcement in investigating this matter.
Gun and Drug Trafficking Gang Members and Associates SentencedRead the Press Release
Three defendants associated with a Miami street gang “Boss Life” operating in Miami-Dade County, Florida were sentenced by United States District Judge Federico A. Moreno for their roles in the distribution of firearms and narcotics.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Rodolfo Llanes, Chief, Miami Police Department (MPD), and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Co-conspirators Juan Videa, 23, Darryl Marshall, 24, and Ronald Morrobel, 33, all of Miami, were sentenced following guilty pleas for their participation in the distribution of narcotics, which included crack cocaine and heroin, and firearms, which included high capacity firearms, a fully automatic rifle, a silencer, a one hundred round drum magazine, and firearms with obliterated serial numbers. Operation Northern Light Task Force, which conducted this investigation, also led to the disruption of a home invasion robbery planned by Videa and Morrobel.
Videa was sentenced to 132 months in prison, Marshall was sentenced to 108 months in prison, and Morrobel was sentenced to 210 months in prison.
The prosecution was part of Operation Northern Light, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Greenberg commended the collaborative investigative efforts of the Northern Light Task Force and its efforts to combat violent crime in Northern Miami-Dade County. This case was handled by Assistant United States Attorney Ignacio J. Vazquez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Grants Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Jeffrey Chavez, 32, of Grants, N.M., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. Under the terms of his plea agreement, Chavez will be sentenced within the range of 70 to 110 months in prison followed by a term of supervised release to be determined by the court.
Chavez was arrested on March 10, 2017, on an indictment charging him with distributing methamphetamine on June 11, 2015, in Cibola County, N.M. The indictment included forfeiture provisions requiring Chavez to forfeit $1,800 to the United States.
During today’s proceedings, Chavez pled guilty to a felony information charging him with distributing methamphetamine. In entering the guilty plea, Chavez admitted that on June 11, 2015, he sold approximately 82.8 grams of pure methamphetamine to an individual working with law enforcement in exchange for $1,800.
Chavez has been in custody since his arrest. He will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by Homeland Security Investigations and the DEA and is being prosecuted by Assistant U.S. Attorney Jennifer M. Rozzoni.
Four Area Hospitals to Pay Millions to Resolve Ambulance Swapping AllegationsRead the Press Release
HOUSTON – Four Houston-area hospitals have agreed to pay $8.6 million to settle allegations they received kickbacks from various ambulance companies in exchange for rights to the hospitals’ more lucrative Medicare and Medicaid transport referrals. The hospitals are all affiliated with Hospital Corporation of America (HCA), which is based in Nashville, Tennessee, and include Bayshore Medical Center, Clear Lake Regional Medical Center, West Houston Medical Center and East Houston Regional Medical Center.
Acting U.S. Attorney Abe Martinez made the announcement along with Chief Counsel Gregory Demske of the Department of Health and Human Services – Office of Inspector General (DHHS-OIG) and Special Agent in Charge CJ Porter of HHS-OIG, Office of Investigations.
“This settlement demonstrates our office’s commitment to combatting health care fraud,” said Martinez. “Ensuring the integrity of our federal health care programs is one of our highest priorities. We will continue to work to protect the public and hold accountable those who attempt to defraud the system.”
This is the second such announcement this office has made holding accountable medical institutions (hospitals and skilled nursing facilities) for these ambulance “swapping” arrangements. The first such settlement - announced in late 2015 and believed at the time to be the first in the nation of its kind - involved another defendant in this same investigation. Prior to these, virtually all cases focused on the actions of the ambulance companies, rather than the medical institutions they serve.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare and Medicaid. The settlement announced today resolves allegations that patients at the four hospitals received free or heavily discounted ambulance transports from various ambulance companies in exchange for the hospitals’ referral of other lucrative Medicare and Medicaid business to those same companies. If not for this kickback arrangement, the four hospitals would have been financially responsible for the patient transports at significantly higher rates.
“This settlement emphasizes that both sides of any arrangement where remuneration is paid in exchange for healthcare referrals are responsible for their improper actions – even entities that do not actually bill Medicare or Medicaid for the services,” said Demske. “Any company or individual receiving anything of value in exchange for referrals should understand that their actions may have serious legal and financial consequences.”
Medicaid is funded jointly by the states and the federal government. The State of Texas paid for some of the Medicaid claims at issue and will receive more than $300,000 of the settlement amount.
Three whistleblowers, known as “relators,” filed two lawsuits under the qui tam provision of the False Claims Act which permits private parties to file suit on behalf of the government and obtain a portion of the recovery. The relators’ claims are also resolved by this settlement.
Today’s resolution also marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team initiative which the Attorney General and the Secretary of Health and Human Services announced in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.
“This settlement serves as an important reminder to the provider community that arrangements that violate the Anti-Kickback Statute will not be tolerated and provides an outstanding example of how law enforcement is able to use investigative tools,” said Porter.
Among the tools instrumental to the settlement were those provided by HHS-OIG’s Chief Data Office, Consolidated Data Analysis Center (CDAC). CDAC provides HHS-OIG and its law enforcement partners with best practices, consultancy and skills development in data mining, predictive analytics and data management and modeling in support of fraud prevention and recovery.
The settlement was the result of a coordinated effort among U.S. Attorney’s Office, DHHS-OIG and the Texas Attorney General’s Office. Assistant U.S. Attorney Kenneth Shaitelman handled the case.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Former Vigo County sheriff’s deputy sentenced in federal court on fraud chargesRead the Press Release
Stole more than $80,000 from Vigo County taxpayers
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today the sentencing of a former Vigo County sheriff’s deputy for his role in a fraud scheme in which he stole more than $80,000 in Vigo County School Corporation (VCSC) money. Frank Shahadey, 61, Terre Haute, was sentenced to 16 months’ imprisonment by U.S. Chief District Judge Jane Magnus-Stinson after pleading guilty to wire fraud and theft of government funds.
“Public officials are supposed to serve the public, and not the other way around,” said Minkler. “When police officers believe they are above the law they were sworn to uphold, this office will hold them accountable.”
Shahadey was a Vigo County Sheriff’s deputy who also worked part time for the VCSC as a school security officer. From April 2014 through October 2016, Shahadey and a co-defendant instructed a Terre Haute area business to submit false and fraudulent invoices for work performed for the VCSC. He further directed an individual to falsify work estimates and invoices either by inflating the cost of the work, or by seeking payment for the work that was either not performed, or was done by another business.
As a result of Shahadey’s fraud scheme, Shahadey received kickbacks of more than $80,000.
This case was investigated by the Federal Bureau of Investigation.
“When a law enforcement officer chooses to violate their oath of office and commit crimes, their actions erode public trust and confidence and tarnish the entire community of dedicated public servants,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “This sentence highlights that the FBI considers public corruption a top criminal priority and our agents will continue to work diligently to pursue those whose greed outweighs their vow to serve and protect."
According to Assistant United States Attorney Tiffany J. Preston who prosecuted this case for the government, Shahadey must serve two years of supervised release following his sentence.
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Former Pharmacy Technician Indicted for Illegally Obtaining and Tampering with FentanylRead the Press Release
DES MOINES, Iowa – On October 4, 2017, Victor Van Cleave appeared for his arraignment on federal charges in U.S. District Court in Des Moines, Iowa, announced United States Attorney Marc Krickbaum. A federal grand jury has returned a two-count indictment against Van Cleave, charging him with tampering with consumer products, in violation of 18 U.S.C. § 1365(a)(4), and obtaining fentanyl by misrepresentation, fraud, deception, and subterfuge, in violation of 21 U.S.C. § 843(a)(3).
The investigation was conducted by the Drug Enforcement Administration and the Food and Drug Administration, Office of Criminal Investigations. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
The public is reminded that an indictment is merely an accusation, and individuals are presumed innocent unless and until proven guilty.
Former Government Employee Sentenced to 2 Years in Federal Prison for Theft of Government PropertyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge George J. Hazel sentenced Rodney Nelson, age 30, of Dunkirk, Maryland today to two years in prison, followed by three years of supervised release, for theft of government property. Judge Hazel deferred issuing a final order concerning restitution, but the parties’ plea agreement establishes that Nelson will have to pay back at least $311,874.84 to the Government.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Kim R. Lampkins of the Veterans Affairs Office of Inspector General, and Special Agent/Commander Adanto D’Amore of the Air Force Office of Inspector General.
According to his plea agreement, from October 2008 November 2013, Nelson worked as a civilian government pay technician with the 11th Comptroller Squadron at Joint Base Andrews. In this position, he was entrusted with access to civilian employees’ personally identifiable information, including social security numbers, dates of birth, and banking information. In November 2013, Nelson left his job at Joint Base Andrews (“Andrews”) and took a similar position at the Veterans Affairs Medical Center (“VAMC”).
While employed at both Andrews and the VAMC, Nelson abused his positions within the Government to access payroll records and alter personally identifiable information associated with certain current and former government employees, all in an illegal and covert scheme through which he diverted U.S. Government money into his personal bank accounts. Nelson attempted to make it appear as if the money in question was paid to those current and former government employees. During the scheme, Nelson stole approximately $311,874.84 through manipulating payroll records of at least 14 individuals.
For example, Nelson accessed one former Government employee’s banking information and replaced the existing bank account with one of his personal bank accounts. Nelson then improperly added over 2,000 hours of time to that victim’s payroll records (for work the victim never performed), resulting in the Government making substantial direct deposit payments into Nelson’s personal bank account.
Acting United States Attorney Stephen M. Schenning praised the Veterans Affairs Office of Inspector General and Air Force Office of Inspector General for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Michael Packard and David Salem who prosecuted the case.
Former Georgia Prison Guard Pleads Guilty to Sexual Assault of Female Inmates, Obstruction, and Maliciously Conveying False Information About ExplosivesRead the Press Release
Former Georgia prison guard Edgar Daniel Johnson, 51, pleaded guilty on Monday to sexually assaulting three female inmates at the Emanuel Women’s Facility in Swainsboro, Georgia, and to coercing the women to help him cover up the assaults. Johnson also pleaded guilty to making a bomb threat at Elba Island on a separate occasion, in May 2017. Johnson pleaded guilty in the Southern District of Georgia to three counts of willfully depriving the inmates of their Eighth Amendment rights under color of law, three counts of obstruction for coercing the women to cover up the assaults, and one count of maliciously conveying false information about explosive materials.
During the plea hearing, Johnson admitted that, between November 1, 2012, and September 30, 2013, while he was working as a Georgia Department of Corrections prison guard at the Emanuel Women’s Facility, he engaged in non-consensual vaginal intercourse on more than one occasion with female inmates S.A., M.A., and M.P. Johnson further admitted that each act of intercourse was against the inmate’s will and violated the inmate’s right under the Eighth Amendment of the U.S. Constitution to be free from cruel and unusual punishment, which includes the right to be free from unwanted sexual assaults. Johnson further admitted that he coerced each of the inmates to cover up the assaults after the fact to help him avoid detection by investigators. Johnson also admitted that on May 3, 2017, he used a cellular telephone to call Southside Fire Department in Chatham County, Georgia and falsely report a bomb threat at Elba Island.
“This defendant abused his legal authority to prey on vulnerable women who had been entrusted to his care. His actions undermine the rule of law and the well-being of our communities,” said John Gore, Acting Assistant Attorney General of the Civil Rights Division. “The Civil Rights Division of the Justice Department is committed to protecting the constitutional and civil rights of all individuals, and will hold law enforcement officers accountable to their oath to uphold the Constitution.”
“No one is above the law, and the criminal actions of this former prison guard compel a strong rebuke. Anyone who chooses to prey on others under color of official right should expect federal prosecution and jail,” said United States Attorney R. Brian Tanner.
This case was investigated by the FBI’s Augusta Resident Agency with assistance from the Georgia Department of Corrections and the District Attorney’s Office for Swainsboro, Georgia. The case is being prosecuted by Assistant U.S. Attorneys Tara Lyons and Matthew Josephson of the Southern District of Georgia and Trial Attorney Risa Berkower of the Civil Rights Division.
Former Buffalo School Teacher's Aide Sentenced to 12 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a former Buffalo, Mo., elementary school teacher’s assistant has been sentenced in federal court for receiving child pornography.
Dalton Cole Sherman, 20, of Buffalo, was sentenced by U.S. District Judge Beth Phillips on Tuesday, Oct. 3, 2017, to 12 years in federal prison without parole. The court also sentenced Sherman to a lifetime of supervised release following incarceration.
Sherman pleaded guilty on June 13, 2017, to receiving child pornography. He was a teacher’s assistant at the DA Mallory Elementary School in Buffalo at the time of the offense.
School officials contacted law enforcement officials on June 11, 2015, and reported that a pen camera had been located in a bathroom used by teachers and children. The pen camera was behind a standup mirror in the bathroom and had a light on the camera. Sherman, who had been going in and out of the bathroom for unknown reasons, was detained and transported to the Dallas County Sheriff’s Department for questioning.
Sherman admitted he placed the pen camera in the bathroom on top of some plastic totes and behind the mirror that morning. Sherman checked the camera two times, turning it off and on. Sherman also said he had used the camera before to capture high school girls on the school bus and school lobby. Sherman transferred the videos to his Nook tablet to watch them at home.
Law enforcement officers executed a search warrant at Sherman’s residence on June 18, 2015. Investigators found several videos on the pen camera that depict 5-to-6-year-old children using the toilet. Investigators also found 90 images of child pornography, which had been downloaded from the Internet, on Sherman’s Nook tablet.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Dallas County, Mo., Sheriff’s Department, the State Technical Assistance Team and the FBI.Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Five members of credit card theft ring plead guiltyRead the Press Release
ATLANTA – Treveyon Herring, one of five defendants charged with stealing credit cards from the baggage loading areas of Hartsfield-Jackson International Airport and a private mail sorting facility, has pleaded guilty to wire fraud conspiracy.
“Americans depend on the United States mail system to carry some of their most vital and sensitive correspondence, like the new credit cards in this case,” said U. S. Attorney John Horn. “By exploiting the airport’s baggage loading processes, these defendants were able to plunder mail bags and steal new credit cards on their way to customers across the country.”
“Postal Inspectors have a long and proud history of protecting the U.S. mail from criminal activity,” said David M. McGinnis, Inspector in Charge, Charlotte Division. “These defendants violated the trust bestowed upon them to handle mail and the law for their own personal gain. The U.S. Postal Inspection Service takes allegations of mail theft seriously and investigates these matters to ensure the integrity of the U.S. Postal Service.”
“Herring and his conspirators were creative in their scheme to steal victims’ credit cards and defraud them,” said Kenneth Cronin, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “The United States Secret Service will continue to collaborate with our law enforcement partners to arrest criminals who use their trustworthy positions to violate unsuspecting victims.”
According to U.S. Attorney Horn, the charges and other information presented in court: From December of 2015 until April of 2017, the defendants stole credit cards from the baggage loading areas of Hartsfield-Jackson International Airport and a private mail sorting facility. Cornelius Henderson, through his employment, had access to the airport’s baggage loading areas, where he stole mail that contained credit cards. Treveyon Herring worked at a private mail sorting facility where he also stole mail containing credit cards. LaSuhn Turner and Brandon Foster assisted in the scheme by obtaining cash from the stolen credit cards.
Turner used stolen credit cards at ATMs to obtain cash advances, while Foster, through his employment as a bank teller, executed fraudulent transactions at the bank when presented with stolen credit cards by other co-conspirators. Quentin Pickett was involved in almost every aspect of the scheme alleged in the indictment, interacting with co-conspirators who stole credit cards and those who were involved in extracting value from the stolen credit cards.
The stolen credit cards were shipped via the U.S. Postal Service to the rightful accountholders, who were located throughout the United States. In total, the scheme caused over $1.7M in fraud-related losses.
All five defendants were charged in a criminal indictment on May 23, 2017. Herring is the last of the five defendants to enter a guilty plea in the case. The other defendants are as follows:
- Quentin Pickett, 25, of Jonesboro, Georgia, pleaded guilty to wire fraud conspiracy and aggravated identity theft on September 25, 2017, and agreed to the entry of a restitution order in the amount of $1,759,301.14. Pickett is scheduled to be sentenced on January 10, 2018.
- Cornelius Henderson, 23, of Riverdale, Georgia, pleaded guilty to wire fraud conspiracy and aggravated identity theft on September 25, 2017, and agreed to the entry of a restitution order in the amount of $429,142.26. Henderson is scheduled to be sentenced on January 9, 2018.
- LaSuhn Turner, 25, of Stockbridge, Georgia, pleaded guilty to wire fraud conspiracy on August 30, 2017, and agreed to the entry of a restitution order in the amount of $70,483.05. Turner is scheduled to be sentenced on December 5, 2017.
- Brandon Foster, 24, of Stockbridge, Georgia, pleaded guilty to wire fraud conspiracy on August 24, 2017, and agreed to the entry of a restitution order in the amount of $14,831.00. Foster is scheduled to be sentenced on November 17, 2017.
Treveyon Herring, 22, of Forest Park, Georgia, is scheduled to be sentenced on January 10, 2018. As part of a plea agreement, Herring agreed to the entry of a restitution order in the amount of $1,341,778.96. All five defendants in this case are scheduled to be sentenced by U.S. District Judge Eleanor L. Ross.
This case is being investigated by the U.S. Postal Inspection Service and the U.S. Secret Service.
Assistant U.S. Attorney Samir Kaushal is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Jury Finds Bradenton Bail Bondsman Guilty of Theft of Government Property and Identity TheftRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found James J. Jean-Rene (53, Riverview) guilty of one count of conspiracy, seven counts of theft of government property, and seven counts of aggravated identity theft. He faces a maximum penalty of 5 years in federal prison for the conspiracy count, up to 10 years’ imprisonment on each property theft count, and up to 2 years in federal prison on each identity theft count. A sentencing date has not yet been set.
According to testimony presented at trial, Jean-Rene deposited more than 100 United States Treasury checks from tax refunds or veterans’ pension benefits into bank accounts for his bail bonds company, A United Bail Bonds. He falsely claimed that the checks were payments for bonds. In fact, Jean-Rene had purchased the checks from individuals who had either stolen the checks or had filed fraudulent tax returns and received the refund checks. Victims of the fraud included the elderly, veterans, and individuals with disabilities. During the course of the conspiracy, Jean-Rene stole more than $850,000.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Department of Veterans’ Affairs - Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Kristen A. Fiore and Cherie L. Krigsman.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that, a Federal Grand Jury in Columbia, South Carolina, returned Indictments against the following:
Five Men Indicted for Illegal Re-entry into the United States After Deportation. Severvo Gonzalez-Martinez, age 26, Alirio Ortiz-Castro, age 62, and Ulises Santos-Cruz, age 30, all of Columbia, South Carolina; Gilberto Antonio Moreno-Moreno, age 38, of Rock Hill, South Carolina; and Gabriel Rodriguez-Galindo, age 40, of Graniteville, South Carolina were charged with Illegal Re-entry into the United States After Deportation in violation of Title 8, United States Code, Section 1326 which carries a maximum penalty of a fine of $250,000 and/or ten years imprisonment. All of the cases were investigated by the Immigration and Custom Enforcement-Enforcement Removal Operations. These cases have been assigned to Assistant United States Attorney William E. Day, II of the Columbia office for prosecution.
Federal Grand Jury Indicts Lancaster County Man. Jimmy Allen Hunter, age 48, of Lancaster County, South Carolina was charged in a 1-count indictment. Hunter was charged with being a felon in possession of firearms and ammunition, a violation of Title 18, U. S. C. § 922(g)(1). The maximum penalty Hunter could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Lancaster County Sheriff's Office and is assigned to Assistant United States Attorney William K. Witherspoon of the Columbia office for prosecution.
Two Columbia Men Indicted on Firearm and Drug Charges. Robert Christopher McCoy, age 23, of Columbia, South Carolina and Terrone J. Anderson, age 20, of Columbia, South Carolina were charged in a 2-count indictment. Robert Christopher McCoy was charged with felon in possession of a firearm, a violation of Title 18, U. S. C. §922(g). Terrone J. Anderson was charged with possession with intent to distribute MDMA (Ecstacy), a violation of Title 21, U. S. C. §841. The maximum penalty McCoy could receive is 10 years imprisonment and a maximum fine of $250,000, and the maximum penalty Anderson could receive is 20 years imprisonment and a maximum fine of $1,000,000. The case was investigated by the Columbia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and is assigned to Assistant United States Attorney JD Rowell of the Columbia office for prosecution.
Lexington County Man Indicted on Federal Gun and Drug Charges. John Phillip Drawdy, age 38, of Gaston, South Carolina, was charged in a two-count indictment with one count of possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1), and one count of possession with the intent to distribute methamphetamine, a violation of Title 21, United States Code, Section 841(a)(1). Drawdy faces a mandatory minimum term of imprisonment of ten years. The maximum penalty Drawdy could face is imprisonment of life and a fine of $8,000,000. The case was investigated by the South Carolina Department of Probation, Parole and Pardon, the Lexington County Sheriff’s Office Narcotics Enforcement Team, and the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Nancy Wicker of the Columbia office.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Fayette Woman Pleads Guilty to Embezzlement of U.S. MailRead the Press Release
Jackson, Miss – Tammy Barnes, 49, of Fayette, Mississippi, pled guilty on October 3, 2017, before U.S. District Judge David C. Bramlette III, to embezzlement of U.S. mail, announced Acting U.S. Attorney Harold Brittain and Special Agent in Charge Maximo Eamiguel, U.S. Postal Service Office of Inspector General, Southern Area Field Office.
From March 13, through June 17, 2016, Barnes worked as a relief Highway Contract Route driver hired to transport mail from Jackson, Mississippi to local U.S. Post Offices in the Mississippi towns of Port Gibson, Lorman, Fayette, Union Church, Washington, and Natchez. Barnes admitted that, during that time, she unlawfully took packages from the U.S. mail stream that did not belong to her, keeping them at her residence and using the contents of those packages for her own use. The U.S. Postal Service Office of Inspector General (USPS-OIG) received approximately 112 complaints of non-receipt of packages from residents along the described rural route. Barnes also admitted that she embezzled stamp stock, pre-paid envelopes, and other postal products, valued at approximately $12,560, that she was supposed to deliver to the U.S. Post Offices on her route.
Barnes is currently released on bond and will be sentenced by Senior U.S. District Judge David C. Bramlette III on December 5, 2017, at 10:30 a.m. She faces a maximum sentence of 5 years in prison and a $250,000 fine.
"The overwhelming majority of postal employees work very conscientiously to move the nation's mail to its proper destination and it is a responsibility they take very seriously.
Unfortunately, a few abuse the public trust placed in them," said Special Agent in Charge Maximo Eamiguel, U.S. Postal Service Office of Inspector General, Southern Area Field Office. "Mail theft complaints will be vigorously investigated in order to ensure the protection of the U.S. Postal Service and its customers."
The prosecution of Barnes is being handled by Assistant United States Attorney Carla J. Clark and agents from the U.S. Postal Service, Office of Inspector General.
Eight Individuals Charged in Florida-based Firm Investment Fraud Scheme that Defrauded over 70 InvestorsRead the Press Release
A grand jury in Miami indicted eight individuals for their alleged participation in an investment fraud scheme that targeted investors throughout the Nation, defrauding them out of approximately $3 million. The main office operated out of Daytona Beach, Florida.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Rockey Hatfield, 61, of Safety Harbor, Florida, Steve Lovern, 62, of Atlanta, Georgia, Steve Bailen, 58, of North Miami, Wayne Scott Simpson, 47, of Pompano Beach, Donald Braxton, 66, of Hollywood, William Paul Hamilton, 57, of Miramar, Dennis Swerdlen, 63, of Boca Raton, and Paula Saccomanno, 60, of Boca Raton, were charged with conspiracy to commit mail fraud and wire fraud, and substantive mail fraud charges. Some of the defendants were also charged with substantive wire fraud counts.
The Indictment charges a conspiracy involving the sale of ownership units of patents, with a stock conversion option. According to the Indictment, from December 2012 to September 2017, the defendants solicited investors located throughout the United States to buy ownership units in patents developed by N1 Technologies Inc. and/or NanoSave Technologies Inc. (N1). The defendants claimed N1 researched, developed and obtained breakthrough nano-based technological patents. The sales employees in turn pitched ownership units of these patents to investors.
The materially false statements, including, but not limited to, that the patent unit and stock sales included no commissions or fees, that sale agents were compensated with stock, that investor funds would be used for N1’s company expenditures on things other than commissions or fees, that an investor was purchasing an ownership unit of a patent with a corresponding United States Patent Office number, and that investors would collect royalty payments based on N1’s patented products for the life of the patent.
In fact, approximately 90% of investor proceeds were used by the defendants as commissions, fees and means to facilitate the fraud; the defendants were paid substantial commissions, not with stock; N1 had not been issued any patents, despite statements to the contrary; and, no investor collected a royalty payment nor was any patent sold in order to obtain a royalty payment.
Mr. Greenberg commended the investigative efforts of the FBI. Mr. Greenberg also thanked the Securities and Exchange Commission’s Miami Regional Office for their assistance. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
Individuals who believe that they may be a victim in this case should contact the FBI at www.fbi.gov for more information.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault by Striking, Beating, and Wounding.
Sven Dyda, age 38, was indicted on September 19. 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 2, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $125 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on September 2, 2017, Dyda unlawfully assaulted two female victims, one with shod feet.
The charges are merely accusations and Dyda is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Dyda was released on bond pending trial, which has been set for November 14, 2017.
Department of Justice Awards over $18 Million to Oklahoma TribesRead the Press Release
The Department of Justice has awarded more than $18 million in grants to Oklahoma tribal governments to enhance public health and safety, announced Mark A. Yancey, U.S. Attorney for the Western District of Oklahoma; R. Trent Shores, U.S. Attorney for the Northern District of Oklahoma; and Brian J. Kuester, U.S. Attorney for the Eastern District of Oklahoma.
These grants are part of more than $100 million in grants to 125 American Indian tribes, Alaska Native villages, tribal consortia, and tribal designees, announced today by Associate Attorney General Rachel Brand. Many of these awards were made through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department developed CTAS through its Office of Community Oriented Policing Services, Office of Justice Programs and Office on Violence Against Women, and administered the first round of consolidated grants in September 2010.
CTAS grants are designed to enhance law enforcement practices, expand victim services, and sustain crime prevention and intervention efforts. Awards cover nine areas: public safety and community policing, justice systems planning, alcohol and substance abuse, corrections and correctional alternatives, children’s justice act partnerships, services for victims of crime, violence against women, juvenile justice, and tribal youth programs.
"Reducing violent gang and gun crimes in Indian Country is crucial to protecting citizens who live in and around tribal communities. The justice community must also look to help those with mental health and substance abuse issues to re-enter society as productive citizens. These Federal grant allocations will help to further those goals," said U.S. Attorney Shores of the Northern District of Oklahoma. U.S. Attorney Kuester of the Eastern District of Oklahoma said, "I am pleased and excited about DOJ’s awards to the tribal governments in Oklahoma. These grants will fund programs that will assist victims of crimes, reduce crime against women, and enhance the resources available for tribal governments to combat violent crime, increase public awareness, and provide prevention programs for youth. The U.S. Attorney’s Office looks forward to assisting in any way possible as these programs are implemented." U.S. Attorney Yancey of the Western District of Oklahoma said, "I join my fellow United States Attorneys in welcoming the federal law enforcement assistance to our Oklahoma tribes. I look forward to working with all tribes in the Western District to reduce crime and aid victims."
The Oklahoma CTAS recipients are:
Cherokee Nation (total: $3,087,900)
Public Safety and Community Policing: $565,241
Comprehensive Tribal Justice Systems Strategic Planning: $74,995
Justice Systems and Alcohol and Substance Abuse: $749,993
Violence Against Women Tribal Governments Program: $898,100
Comprehensive Tribal Victim Assistance Program: $449,925
Tribal Youth Program: $349,64Choctaw Nation of Oklahoma (total: $1,994,588)
Violence Against Women Tribal Governments Program: $897,851
Comprehensive Tribal Victim Assistance Program: $449,999
Juvenile Healing to Wellness Courts: $350,000
Tribal Youth Program: $296,738Citizen Potawatomi Nation (total: $1,098,106)
Justice Systems and Alcohol and Substance Abuse: $749,593
Tribal Youth Program: $348,513Comanche Nation (total: $749,348)
Justice Systems and Alcohol and Substance Abuse: $749,348
Delaware Tribe of Indians (total: $424,845)
Violence Against Women Tribal Governments Program: $424,845
Muscogee Creek Nation (total: $803,912)
Violence Against Women Tribal Governments Program: $803,912
Pawnee Nation (total: $700,000)
Violence Against Women Tribal Governments Program: $700,000
Ponca Tribe of Oklahoma (total: $1,800,000)
Corrections and Correctional Alternatives: $1,000,000
Comprehensive Tribal Victim Assistance Program: $450,000
Tribal Youth Program: $350,000Quapaw Tribe of Oklahoma (total: $4,590,422)
Public Safety and Community Policing: $232,929
Justice Systems and Alcohol and Substance Abuse: $446,714
Corrections and Correctional Alternatives: $3,910,779Seminole Nation of Oklahoma (total: $900,000)
Violence Against Women Tribal Governments Program: $900,000
Seneca Cayuga Nation (total: $825,000)
Violence Against Women Tribal Governments Program: $825,000
Wyandotte Nation (total: $200,189)
Public Safety and Community Policing: $200,189
In addition to CTAS grants, the Department awarded $889,975 to four Oklahoma tribes under the Adam Walsh Act Implementation grant program, part of the Office of Justice Program’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. These grant awards enable states, the District of Columbia, territories, and tribal jurisdictions to develop and enhance programs that implement the requirements of the federal Sex Offender Registration and Notification Act. Funding supports staff, information-sharing technology, infrastructure development, law enforcement training, and stakeholder collaboration.
The Oklahoma recipients of Adam Walsh Act Implementation grants are:
Caddo Nation: $200,000
Cheyenne and Arapaho Tribes: $400,000
Seneca Cayuga Nation: $198,181
United Keetoowah Band of Cherokee Indians: $91,794Finally, through the Office of Justice Programs, the University of Oklahoma Health Sciences Center will receive $1.5 million under the Office of Juvenile Justice and Delinquency Prevention’s Fiscal Year 2017 Tribal Youth Program Training and Technical Assistance grant. This program provides culturally-sensitive, trauma-informed and developmentally-appropriate training, support, resources, information, and related technical assistance to help tribes meet the needs of their youth.
The Department of Justice’s national press releases on these and related grants are available at https://www.justice.gov/opa/pr/justice-department-awards-more-130-million-improve-public-safety-address-violence-against.
College Park man sentenced to 20 years for child pornography crimesRead the Press Release
ATLANTA - Lionel Lewis Alls, Jr., has been sentenced to 20 years for distributing child pornography. In addition to sharing child pornography, Alls enticed minors as young as 8-years-old to send nude images and videos of themselves to him.
“Alls demonstrated in horrific ways how the Internet can be used by criminals to victimize our children,” said U. S. Attorney John Horn. “His manipulation of young girls to send nude photos and videos of themselves is one more example of just how far these criminals will go to satisfy their disgusting desires. Parents must be extremely vigilant with children when they venture online, especially when it involves their use of social media.”
“The internet is a very important and useful resource, but unfortunately can also be used for illegal activity in the darkest corners of our society, as criminals seek to prey on the most vulnerable of our population,” said David J. LeValley, Special Agent in Charge of the FBI’s Atlanta Field Office. “Alls actions are the worst of depravity and no sentence can lessen the harm he has caused to these young children. But at least he will no longer be able to pursue his egregious acts.”
According to U.S. Attorney Horn, the charges and other information presented in court: Alls used the Internet to access, download, and distribute child pornography. In one instance, he was aware another man was molesting a toddler in his care and encouraged that individual to share sexually explicit images of the child over the Internet. That defendant subsequently pled guilty to production of child pornography and was sentenced to 35 years imprisonment in the Western District of Virginia.
Alls continued his exploitation by seeking out girls as young as eight years old on websites such as YouTube and engaged in sexually explicit chats with the children. In multiple instances, he enticed young girls to send him sexually explicit images and videos of themselves over the Internet. Alls also shared images of his own genitals with the children.
Lionel Lewis Alls, Jr., 36, of College Park, Georgia, was sentenced to 20 years in prison to be followed by lifetime supervised release. Alls was convicted on these charges on June 28, 2017, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jolee Porter prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Choctaw Man Indicted for 2nd Degree MurderRead the Press Release
Jackson, Miss. – Stuart Brian Nickey, 33, a Choctaw Indian from the Bogue Homa Community of the Choctaw Indian Reservation in Jones County, has been charged in a federal indictment with 2nd degree murder, announced Acting U.S. Attorney Harold Brittain. The indictment alleges that, on or about July 1, 2017, Nickey murdered "C.S.", also a Choctaw Indian, by striking her in the head and face.
Nickey appeared before U.S. Magistrate Judge Michael T. Parker on October 3, 2017, for an initial appearance and arraignment. He was detained in federal custody until further order of the court. A jury trial is scheduled for November 21, 2017, before U.S. District Judge Keith Starrett in Hattiesburg, Mississippi.
The prosecution of Nickey is being handled by Assistant United States Attorney Carla J. Clark, and agents with the FBI and the Mississippi Band of Choctaw Indians Department of Public Safety.
The public is reminded that an indictment is merely an accusation and all defendants are presumed innocent until proven guilty in a court of law.
Child Pornography Producer Sentenced to 30 Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Wilfrido C. Baldera (39, Jacksonville) to 30 years in federal prison, followed by a lifetime term of supervised release, for producing child pornography.
Baldera pleaded guilty on September 5, 2017.
According to court documents, in March 2016, detectives from the St. Johns County Sheriff’s Office began investigating possible child exploitation offenses after they found tha the Internet Protocol (“IP”) address at Baldera’s residence had been a prolific sharer of child pornography. On March 5, 2016, a detective connected to Baldera’s computer via a file-sharing program and discovered that he was hosting more than 4,600 files of suspected child pornography.
On November 2, 2016, agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, working with the St. Johns County Sheriff’s Office, executed a search warrant at Baldera’s residence. During an interview, Baldera acknowledged viewing child pornography on his computer and downloading movies. He also acknowledged going to Walmart to look at girls between the ages of 8 and 16 who “put it out there” for sexual arousal before going home to his wife. He described it as being better than going to a strip club.
A forensic review of the electronic devices seized from Baldera’s residence revealed a video and photographs that Baldera had produced depicting the rape of a 10-year-old girl. Extracted embedded data from the video shows that it had been created on June 29, 2015, in Clearwater Beach. Baldera was vacationing with his family and the victim in Tampa and Clearwater during this timeframe.
"This predator thought he could hide behind online technology and harm children," said Special Agent in Charge of Tampa HSI James C. Spero. "Our HSI special agents worked hard with our local law enforcement partners to ensure he will be held accountable for his crimes."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the St. John’s Sheriff’s Office, the Clay County Sheriff’s Office and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another case 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 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.justice.gov/psc.
Bronx Man Charged in Manhattan Federal Court with Sex Trafficking of Minors and Other Related OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today that ADRIAN BROOKS, a/k/a “Abee,” was arrested for his alleged role as the leader of a sex trafficking and prostitution enterprise that exploited and abused women and minor girls. BROOKS was charged in an Indictment with sex trafficking of minors and sex trafficking by force, fraud, and coercion. BROOKS was also charged with the use of interstate facilities and interstate travel to promote a prostitution enterprise. BROOKS was arrested this morning and will be presented before U.S. Magistrate Judge Gorenstein in Manhattan federal court this afternoon. The case has been assigned to U.S. District Judge William H. Pauley.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Adrian Brooks used threats and violence to coerce underaged girls into performing sex acts for money, and then kept most of the money for himself. For his reprehensible alleged crimes, Brooks will now face federal sex trafficking charges. This Office remains committed to protecting vulnerable children from the sick world of commercial sex trafficking.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Brooks’s alleged acts are horrendous, preying on and exploiting minors. Cases like this are disgraceful examples of the worst in our society. Sadly, too often these types of crimes are unknown or ignored in our communities. The FBI simply won't tolerate this behavior. Our Child Exploitation and Human Trafficking Task Force will be relentless in pursuing those who target our youth. I encourage anyone with knowledge of trafficking activity to step forward to help us make a difference”
According to the allegations in the Indictment[1] filed in Manhattan federal court:
Since at least 2014, BROOKS directed and conducted a criminal sex trafficking and prostitution enterprise (the “Sex Trafficking Enterprise”) that recruited and exploited minor girls, and then forced them to engage in commercial sex acts for his own profit by, among other things, using an online classifieds website called Backpage.com (“Backpage”). BROOKS operated the Sex Trafficking Enterprise out of motels in the Bronx, New York, and Yonkers, New York, as well as on the streets of the Bronx.
To evade detection by law enforcement, the Sex Trafficking Enterprise’s advertisements often purported to be offering escorts. However, such advertisements often signaled that they were, in fact, offering individuals for commercial sex acts through a variety of cues, including pictures of partially-clothed women in sexually suggestive poses, and coded language indicating that the people being offered would perform sex acts in exchange for money.
The victims of BROOKS’s Sex Trafficking Enterprise were typically forced to engage in commercial sex acts with multiple customers in a single day. Customers typically paid for such commercial sex acts in cash. BROOKS kept most or all of the profits from his Sex Trafficking Enterprise.
BROOKS forced certain of his victims to take prescription pain relievers, to which they became addicted. In addition, BROOKS set rules for his victims, controlled their actions, and punished violations of his rules and disobedience through physical violence, among other things.
* * *
BROOKS is charged with one count of sex trafficking conspiracy, which carries a maximum sentence of life in prison; two counts of sex trafficking of a minor and by force, fraud, or coercion, each of which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison; and one count of use of interstate facilities and interstate travel to promote a prostitution enterprise, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any individuals who believe they have information concerning ADRIAN BROOKS, a/k/a “Abee,” that may be relevant to the investigation, or information regarding other sex trafficking crimes, should contact the FBI at (212) 384-1000 or https://tips.fbi.gov/, or the New York City Police Department at (646) 610-7272.
The investigation was conducted through the New York Child Exploitation and Human Trafficking Task Force, a joint task force between the FBI and NYPD to combat human trafficking. Mr. Kim praised the outstanding investigative work of the FBI and the NYPD. Mr. Kim also thanked the Port Authority of New York and New Jersey - Youth Services Unit and the New York City Administration for Children’s Services for their assistance during the investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Elizabeth Hanft, Sagar K. Ravi, and Alexandra N. Rothman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Baton Rouge Man Pleads Guilty to Theft of Disaster Assistance FundsRead the Press Release
Acting U.S. Attorney Corey Amundson, who also serves as the Acting Executive Director of the National Center for Disaster Fraud, announced today that Joe W. Jones, 65, of Baton Rouge, Louisiana, pleaded guilty to theft of $13,807 in Federal Emergency Management Agency (FEMA) funds in relation to the 2016 Baton Rouge flooding.
Following the 2016 flooding that affected 12 parishes in south Louisiana, FEMA funds were available to people who had emergency needs for food, shelter, and clothing because of the flood. In order to qualify for assistance based on home ownership, an individual must have, among other things, resided in the home at the time of the storm.
On Oct. 3, Jones entered a plea of guilty to theft of government funds. According to documents submitted to the court, in August 2016, Jones filed a fraudulent claim with FEMA seeking disaster assistance funds for a home in Baton Rouge that he claimed was his primary residence at the time of the storm. At the time of the storm, however, Jones was residing elsewhere and was renting his home to a tenant, whose own FEMA application as a renter was delayed because of Jones’ fraudulent claim.
Acting U.S. Attorney Amundson said, “Unfortunately, Louisiana is not only targeted by storms that cause extensive damage to lives and property, it is also targeted by fraudsters who seek to steal disaster assistance funds that are intended for true victims. The United States Attorney’s Office for the Middle District of Louisiana, together with the National Center for Disaster Fraud and our federal, state, and local law enforcement partners, will work tirelessly to catch individuals who submit fraudulent claims for disaster assistance and ensure that such assistance funds are available to individuals truly victimized by disasters.”
Special Agent in Charge David Green, Houston Field Office, Department of Homeland Security Office of Inspector General said, “We all suffer when federal assistance programs are undermined by fraud. This defendant’s conviction should send a clear message that our Department will not tolerate any type of fraudulent activity, and we will relentlessly pursue those responsible for criminal acts related to disaster assistance funds.”
Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the Department of Justice’s National Center for Disaster Fraud at http://www.justice.gov/disaster-fraud.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Department of Homeland Security, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Paul L. Pugliese.
Baton Rouge Man Pleads Guilty to Theft of Disaster Assistance FundsRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson, who also serves as the Acting Executive Director of the National Center for Disaster Fraud, announced today that JOE W. JONES, age 65, of Baton Rouge, Louisiana, pled guilty to theft of $13,807 in Federal Emergency Management Agency (FEMA) funds in relation to the 2016 Baton Rouge flooding.
Following the 2016 flooding that affected 12 parishes in south Louisiana, FEMA funds were available to people who had emergency needs for food, shelter, and clothing because of the flood. In order to qualify for assistance based on home ownership, an individual must have, among other things, resided in the home at the time of the storm.
On October 3, JONES entered a plea of guilty to theft of government funds. According to documents submitted to the court, in August 2016, JONES filed a fraudulent claim with FEMA seeking disaster assistance funds for a home in Baton Rouge that he claimed was his primary residence at the time of the storm. At the time of the storm, however, JONES was residing elsewhere and was renting his home to a tenant, whose own FEMA application as a renter was delayed because of JONES’ fraudulent claim.
Acting U.S. Attorney Amundson stated, “Unfortunately, Louisiana is not only targeted by storms that cause extensive damage to lives and property, it is also targeted by fraudsters who seek to steal disaster assistance funds that are intended for true victims. The United States Attorney’s Office for the Middle District of Louisiana, together with the National Center for Disaster Fraud and our federal, state, and local law enforcement partners, will work tirelessly to catch individuals who submit fraudulent claims for disaster assistance and ensure that such assistance funds are available to individuals truly victimized by disasters.”
Special Agent-in-Charge David Green, Houston Field Office, Department of Homeland Security Office of Inspector General stated, “We all suffer when federal assistance programs are undermined by fraud. This defendant’s conviction should send a clear message that our Department will not tolerate any type of fraudulent activity, and we will relentlessly pursue those responsible for criminal acts related to disaster assistance funds.”
Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the Department of Justice’s National Center for Disaster Fraud at http://www.justice.gov/disaster-fraud.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Department of Homeland Security, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Atlanta Tax Consultant Sentenced to 27 Months in Prison for Defrauding the Kentucky Department of Revenue and Signature HealthcareRead the Press Release
LOUISVILLE, Ky. – An Atlanta, Georgia tax consultant was sentenced in United States District Court this week, by Chief Judge Joseph H. McKinley, Jr., to 27 months in prison for committing mail fraud and money laundering associated with a scheme to defraud the Kentucky Department of Revenue and his client Signature Healthcare, announced United States Attorney Russell M. Coleman. There is no parole in the federal system.
Todd Griffin, 46, was a tax credit consultant for a company located in Atlanta, Georgia. Between April 2013 to June 2014, Griffin fraudulently obtained $499,320 in state tax credits for his client Signature Healthcare (SHC) from the Kentucky Department of Revenue (KDOR). In return for securing the fraudulent tax credits, SHC compensated Griffin with commissions totaling $46,155. Griffin admits that he attempted to conceal his fraud from SHC, to continue to receive their commission and business, by making payments totaling $242,939.92 to KDOR, from his employer’s bank account, using funds derived from the scheme.
Griffin submitted fraudulent documents to SHC to make it appear that the KDOR had approved certifications for eligibility for a tax credit program. Griffin then obtained state tax credits based on the fraudulent documents. The KDOR disallowed the credits and contacted Griffin, who had power of attorney for SHC and paid the disallowed tax credits in order to conceal the fraud from SHC.
According to the terms of his plea agreement, Griffin already paid restitution to SHC in the amount of $46,155 prior to sentencing. The amount constituted the commission Griffin received from SHC to apply for tax credits.
This case was prosecuted by Assistant United States Attorney Josh Judd and was investigated by the Kentucky Department of Revenue, Kentucky Attorney General’s Office, Internal Revenue Service, Postal Inspection Service, and the Federal Bureau of Investigation (FBI).
Albuquerque Man Charged with Bank RobberyRead the Press Release
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Herbert Boyd Smith, 50, of Albuquerque, with a bank robbery charge. During today’s proceedings, Smith was ordered detained pending trial.
The FBI and Bernalillo County Sheriff’s Office arrested Smith on Oct. 3, 2017, based on a criminal complaint charging him with robbing a bank in Bernalillo County, N.M. The complaint alleges that Smith robbed a Bank of the West branch located at 3733 Isleta Blvd., in Albuquerque on Oct. 2, 2017. According to the complaint, Smith robbed the bank by approaching a bank teller while holding a taped box and a handwritten note stating that the box was a bomb that would detonate if the teller did not comply with Smith’s demands for money.
If convicted, Smith faces a maximum penalty of 20 years in federal prison. Charges in criminal complaints are mere accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Administrative manager pleads guilty to making over $35,000 in personal charges on Covington Housing Authority credit cardRead the Press Release
ATLANTA – Erica L. Morris pleaded guilty to making more than $35,000 in personal purchases on a Covington Housing Authority credit card that had been issued to her for work-related purchases.
“By stealing more than $35,000, Morris betrayed the trust given to her by the Covington Housing Authority,” said U.S. Attorney John A. Horn. “Morris stole money that was supposed to be used to serve the low-income families of Covington and used the money to support her own lifestyle.”
Nadine E. Gurley, Special Agent in Charge for the U. S. Department of Housing and Urban Development, Office of Inspector General said, “HUD's Office of Inspector General is dedicated to protecting HUD from individuals seeking to defraud programs meant for America’s most vulnerable population. The guilty plea announced today is a reminder to citizens that we will aggressively investigate industry professionals who attempt to steal from our programs. The partnership between the U.S. Attorney’s Office and HUD’s Office of Inspector General, has helped demonstrate to taxpayers that those who seek to unlawfully profit by defrauding HUD programs will be vigorously prosecuted.”
According to U.S. Attorney Horn, the charges, and other information presented in court: The Covington Housing Authority (“CHA”) was established in 1965 and, according to its website, seeks to “provide decent, safe, and sanitary housing, in good repair, to low-income families at an affordable rent.”
From January 2006 to September 30, 2016, Morris worked for the CHA, ultimately serving as its Administrative Manager. In that position, Morris managed CHA’s accounting, bookkeeping, human resources, payroll accounts, payable and receivable accounts, service contracts, and maintained the office’s business records. As the Administrative Manager, the CHA issued Morris a merchant credit card to make work-related purchases.
From approximately June 2015 to May 2016, Morris made more than 60 unauthorized personal purchases on her merchant credit card, including buying thousands of dollars’ worth of Visa gift cards. In addition, Morris used her access to the CHA’s telephone account to purchase an iPhone 6 cellular telephone for a family member. Subsequently, Morris used the Visa gift cards to pay various personal living expenses, including paying her husband’s child support costs. In total, Morris unlawfully charged more than $35,000 to her CHA merchant credit card.
On September 13, 2017, Morris, 34, of Covington, Georgia, was charged via a criminal information with one count of Federal Program Theft.
The Department of Housing and Urban Development - Office of the Inspector General is investigating this case.
Assistant U.S. Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
2 New Haven Men Who Committed Gang-Related Murders Sentenced to Long Prison TermsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that two members of a violent New Haven street gang were sentenced today in New Haven federal court for committing gang-related murders and other criminal activity. Chief U.S. District Judge Janet C. Hall sentenced JEFFREY BENTON, also known as “Tall Man,” “Fresh,” and “JT,” 32, to 40 years of imprisonment and ROBERT SHORT, also known as “Santana,” 30, to 30 years of imprisonment.
According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of BENTON and others, transported the drugs to Bangor, Maine, and sold them in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members.
On March 17, 2017, BENTON pleaded guilty to one count of engaging in a pattern of racketeering activity, one count of money laundering and one count of conspiracy to distribute 280 grams or more of cocaine base (“crack”). In pleading guilty, he admitted his involvement in several acts of gang-related violence in New Haven, including the non-fatal shooting of an individual on February 23, 2011; the murder of Kevin Lee on April 20, 2011; the murder of Donell Allick on June 24, 2011; the murder of Darrick Cooper on September 19, 2011, and the murder of Donald Bolden on March 19, 2012. He also admitted his participation in the gang-related trafficking of crack cocaine in Connecticut and Maine, and the transferring drug proceeds from Maine to Connecticut by using Western Union.
On March 21, 2017, SHORT pleaded guilty to one count of causing a death through the use of a firearm during and in relation to a crime of violence. SHORT admitted that he was ordered by BENTON and other RSGB leaders to murder Darrick Cooper, who was a leader of a rival gang and seen as a threat. On September 19, 2011, SHORT lured Cooper to a location in Hamden and shot Cooper in the back of the head as Cooper walked up a staircase.
As a result of this investigation, 21 members and associates of the RSGB were convicted of federal charges in Connecticut and Maine. The investigation has resolved seven murder cases, four attempted murders and four armed robberies that occurred in 2011 and 2012.
“The Red Side Guerilla Brims, under the violent and brutal leadership of Jeffrey Benton, terrorized neighborhoods in New Haven in 2011 and 2012,” said U.S. Attorney Daly. “Benton and his RSGB cohorts, including Robert Short, were responsible for at least seven murders, multiple attempted murders, armed robberies, and drug and gun running between Connecticut and Maine. We hope that the lengthy prison terms imposed today bring a measure of solace to the families of the victims and the communities where these violent acts occurred. I thank our law enforcement partners, notably the ATF, New Haven Police Department and Hamden Police Department, for their tireless dedication to the cause of justice during this investigation, which has made New Haven a safer and more secure place to live. I also thank our counterparts in the Maine U.S. Attorney’s Office for their coordination in prosecuting a total of 21 individuals in this matter.”
“ATF’s primary mission is to combat violent gun crime committed by criminal organizations or individuals.” said Mickey Leadingham, Special Agent in Charge, ATF Boston Field Division. “Today’s sentencing is also another example of the importance of law enforcement partnerships and their effectiveness in protecting the citizens in our communities.”
BENTON has been in federal custody since May 17, 2012, and is currently serving a 108-month sentence for distributing heroin. Chief Judge Hall ordered BENTON to begin serving the 40-year sentence after he completes his previous sentence.
SHORT has been detained since September 20, 2011, when he was arrested on a state offense. Chief Judge Hall ordered that SHORT not receive federal credit for time served on his state sentence, which concluded in July 2017.
U.S. Attorney Daly noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert Spector, Peter Markle and Jocelyn Kaoutzanis. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
Tuesday 3 October 2017
York Gang Leader Sentenced to Life in PrisonRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the leader of a gang that has operated for a decade or more in the City of York was sentenced to life in prison for racketeering and drug distribution conspiracies.
According to United States Attorney Bruce D. Brandler, U.S. District Court Judge Yvette Kane imposed a sentence of life in prison on Rolando Cruz, Jr., a/k/a “Mico,” age 32, who was identified as a leader of the “Southside” street gang as well as a member of the Bloods. When imposing sentence, Judge Kane noted Cruz’s leadership in the gang that ravaged the community in York for over a decade, causing numerous deaths and many other victims.
At the sentencing, the government presented evidence that Cruz’s gang related activities continued from his jail cell while he awaited sentencing. The government asked for a life sentence and pointed to the evidence that Cruz continued to sell drugs and participate in violent retaliation while in prison. The government argued to court that it should have no confidence that Cruz will ever stop his violent, drug trafficking ways, as demonstrated by his ongoing criminal conduct. Judge Kane noted that there was mitigating evidence but, on balance, agreed that life in prison was the appropriate sentence.
In November 2015, a jury convicted Cruz of racketeering and drug trafficking conspiracies after a seven-week trial. It included over 100 witnesses called by the government, including York City Police officers and detectives, federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI and gang members who had previously pleaded guilty and featured the presentation of over 500 exhibits. Among the exhibits were videos of violent incidents involving the Southside Gang, drugs, cash and property seized by police and ATF agents as part of the investigation.
The jury convicted the other 11 men who went to trial with Cruz.
The gang, labeled by the government as a criminal enterprise, is known as Southside. It operated in southern York, centered in the area of Maple and Duke Streets. There was no formal structure but the participants included senior leaders, drug traffickers engaged in distribution and sales of narcotics, particularly crack cocaine, and “shooters,” individuals who committed acts of violence, including use of firearms on behalf of the gang and to protect its members from other gangs in York. Order was maintained through intimidation and threats and, in some cases, murder. The Southside Gang includes a group of violent drug traffickers, originally affiliated with the “Bloods,” primarily a New York-based national violent street gang.
Violence against a rival York gang, called “Parkway,” allegedly resulted in death or shootings of members of both gangs and innocent bystanders.
ATF, together with the York City Police Department and the York County District Attorney’s Office, began an intensive two-year investigation of Southside in 2012. It culminated in a September 2014 grand jury indictment of 21 individuals.
Eight of the indicted persons, including James Abney, a senior Southside leader, pleaded guilty to the racketeering conspiracy charge prior to the trial, as did seven other individuals included in the September 2014 indictment.
Many individual Southside gang members were investigated and previously prosecuted by York County law enforcement agencies on state charges. The federal prosecution aimed at dismantling the organization by exposing and attacking its continuity and leadership. The federal investigation of gang violence and drug dealing in York is continuing in full cooperation with local police and the York County District Attorney’s Office.
Overall, the jury found seven of the 12 men on trial guilty of racketeering conspiracy and conspiracy to distribute drugs, mainly cocaine base (crack) and cocaine, but including heroin in some instances. Two others were found not guilty of the racketeering charge but were found guilty of the drug distribution conspiracy count of the indictment. Three of the defendants were found not guilty of either of the conspiracy counts. The jury found all 12 defendants guilty of possession of illegal drugs with the intent to distribute. Two defendants were also charged and found guilty of, possession of firearms in furtherance of drug trafficking.
The principal defendants, specifically the most violent and those in leading roles, were found guilty of the racketeering conspiracy charges.
The individual defendants and the charges on which they were awaiting sentencing or were sentenced:
Marc Hernandez, a/k/a “Marky D,” age 32; racketeering conspiracy, drug trafficking conspiracy, drug possession with intent to deliver and possession of firearms in furtherance of drug trafficking (2 counts) is scheduled to be sentenced on October 25, 2017,
Douglas Kelly, a/k/a “Killer,” age 39; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Roscoe Villega, a/k/a “P Shawn,” age 43; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Tyree Eatmon, a/k/a “Ree,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Maurice Atkinson, a/k/a “Mo,” age 30; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Anthony Sistrunk, a/k/a “Kanye,” age 29; racketeering conspiracy, drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Eugene Rice, a/k/a “B Mor,” age 29; drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Angel Schueg, a/k/a “Pocko,” age 28; drug trafficking conspiracy, and drug possession with intent to deliver is awaiting sentencing,
Jalik Frederick, a/k/a “Murder Cat,” age 22; drug possession with intent to deliver was sentenced to 33 months in prison on June 5, 2017,
Brandon Orr, a/k/a “B Or,” age 23; drug possession with intent to deliver was sentenced to 34 months in prison on November 10, 2016,
Jabree Williams, a/k/a “Minute,” age 24; drug possession with intent to deliver was sentenced to 60 months in prison on May 15, 2017.
James Abney, a/k/a “Doocs,” age 31.
Malik Sturdivant, a/k/a “Base,” age 25.
Jahkeem Abney, a/k/a “Foo,” age 27.
Ronald Payton, a/k/a “Ron Ron,” age 25.
Cordaress Rogers, a/k/a “Tank,” age 31.
Marquis Williams, a/k/a “Quis,” age 29.
Jerrod Brown, a/k/a “Boogie,” age 28.
Quintez Hall, a/k/a “Q,” age 25.
Richard Nolden, a/k/a “Rich,” age 27.
The case included the participation and assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, West York Borough Police Department, Spring Garden Township Police Department, the York County Drug Task Force, the Federal Bureau of Investigation, and the U.S. Marshals Service. Assistant U.S. Attorneys Michael A. Consiglio, William Houser, and Joseph Terz prosecuted the case.
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Wisconsin Man Sentenced to 15 Years in Federal Prison for Sexual Exploitation of a MinorRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 2, 2017, Gene B. Schneider (age: 52) of Albany, Wisconsin, was sentenced by Chief District Judge William C. Griesbach to 15 years in federal prison for sexual exploitation of a minor in violation of Title 18, United States Code, Section 2251(a). Upon his release the defendant will be on federal supervised release for 8 years and will have to register as a sex offender in the jurisdiction in which he resides.
Schneider used his cellular telephone and social media platforms to exchange texts, instant messages, and sexually explicit images with underage girls located across Wisconsin, the United States, and Great Britain. Ultimately, he was arrested after arranging to meet whom he thought was a 13 year-old girl at a hotel in Antigo, Wisconsin. The “girl” was in fact a law enforcement officer with the Langlade County Sheriff’s Office. Schneider then led law enforcement on a high speed chase through Lincoln County and, eventually, crashed his vehicle in Marathon County.
In pronouncing sentence, Chief Judge Griesbach noted the serious nature of Schneider’s crime and the need to deter him and others from engaging in sexual communications with minors via the internet. The judge noted the graphic nature of the images Schneider received and sent to teenage girls and the need for substantial punishment.
The case was investigated by the Langlade County Sheriff’s Office, the Winnebago County Sheriff’s Office, the Green Lake County Sheriff’s Office, the Wisconsin Internet Crimes Against Children (ICAC) Task Force, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Wisconsin Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Baraboo, Wisconsin, man convicted of Failure to Register as a Sex Offender was sentenced on October 2, 2017, by U.S. District Judge Roberto A. Lange.
James Nault-Hart, age 29, was sentenced to 26 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Nault-Hart was indicted by a federal grand jury on December 14, 2016. He pled guilty on July 17, 2017.
The conviction stems from Nault-Hart failing to register as a sex offender as required by federal law between September 12, 2016, and October 5, 2016. Nault-Hart had previously been convicted of a sex offense in Sault County, Wisconsin. He absconded from parole supervision and came to South Dakota, where he failed to register as a sex offender.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Nault-Hart was immediately turned over to the custody of the U.S. Marshals Service.
Western Washington Tribes Obtain Significant Grant Funding for Services to Crime Victims and Enhanced Public SafetyRead the Press Release
Eleven Western Washington Tribes and one tribal coalition were awarded more than $8.9 million in federal grants to enhance public safety and assist victims of crime in tribal communities, announced U.S. Attorney Annette L. Hayes. These grants are part of more than $130 million in funding announced by the U.S. Department of Justice today.
“Our Tribal partners work diligently to create safe and just communities, and these grants support that mission,” said U.S. Attorney Annette L. Hayes. “Each of these Tribes submitted detailed proposals on how the available federal resources would be used in their communities. I commend each of the grant recipients for identifying ways in which federal funding can improve life in Indian Country and look forward to continuing to work in partnership with them to ensure justice is served.”
The eleven Tribes receiving grants include:
- $3.2 million to the Puyallup Tribe for a variety of criminal justice initiatives, including programs to combat violence against women and alcohol and substance abuse; programs for tribal youth and children services; and programs to fund community policing and correctional alternatives.
- $969,461 to the Port Gamble S’Klallam tribe for public safety, community policing, and justice systems and programs to combat alcohol and substance abuse.
- $621,458 to the Lower Elwha Klallam Tribe for public safely, community policing, and programs to combat violence against women.
- $560,680 to the Tulalip Tribes for justice systems and to combat alcohol and substance abuse.
- $555,848 to the Squaxin Island Tribe for public safety and community policing.
- $512,616 to the Makah Tribe for public safety and community policing.
- $495,000 to the Swinomish Indian Tribe for Domestic Violence programs.
- $350,000 to the Muckleshoot Indian Tribe for innovative juvenile court programs.
- $349,000 to the Quileute Tribe for tribal youth programs.
- $258,119 to the Skokomish Tribe for justice systems and programs to combat drug and alcohol abuse.
- $109,393 to the Hoh Tribe for justice systems and programs to combat drug and alcohol abuse.
In addition to the tribal grants, the Washington State Native American Coalition Against Domestic Violence was awarded $318,008 to reduce sexual assault on college campuses.
These grants are part of a nationwide program to support public safety in Tribal communities. More than $101 million was awarded to 125 American Indian tribes, Alaska Native villages, tribal consortia, and tribal designees through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a streamlined application for tribal-specific grant programs. Of the $101 million, $47.6 million comes from the Office of Justice Programs (OJP), $34.1 million from the Office on Violence Against Women (OVW), and $19.4 million from the Office of Community Oriented Policing Services (COPS).
The Justice Department’s Office on Violence Against Women (OVW) awarded 101 grants totaling $56.3 million to tribal governments and nonprofit entities to help respond to the crimes of domestic violence, sexual assault, dating violence, stalking, and sex trafficking in Indian country. Of the $56.3 million, $34.1 was awarded through the CTAS application process as noted above, and $22.1 million was awarded through other OVW grant programs and special initiatives.
CTAS grants are designed to enhance law enforcement practices, expand victim services, and sustain crime prevention and intervention efforts. Awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.
Western New York Contractors and Two Owners to Pay More Than $3 Million to Settle False Claims Act AllegationsRead the Press Release
Alden, New York-based contractors, Zoladz Construction Company Inc. (ZCCI), Arsenal Contracting LLC (Arsenal), and Alliance Contracting LLC (Alliance), along with two owners, John Zoladz of Darien, New York, and David Lyons of Grand Island, New York, have agreed to pay the United States more than $3 million to settle allegations that they violated the False Claims Act by improperly obtaining federal set-aside contracts designated for service-disabled veteran-owned (SDVO) small businesses, the Justice Department announced today.
“Contracts are set aside for service-disabled veteran-owned small businesses so to afford veterans with service-connected disabilities the opportunity to participate in federal contracting and gain valuable experience to help them compete for future economic opportunities,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Every time an ineligible contractor knowingly pursues and obtains such set-aside contracts, they are cheating American taxpayers at the expense of service-disabled veterans.”
To qualify as a SDVO small business, a service-disabled veteran must own and control the company. The United States alleged that Zoladz recruited a service-disabled veteran to serve as a figurehead for Arsenal, which purported to be a legitimate SDVO small business but which was, in fact, managed and controlled by Zoladz and Lyons, neither of whom is a service-disabled veteran. The United States alleged that Arsenal was a sham company that had scant employees of its own and instead relied on Alliance and ZCCI employees to function. After receiving numerous SDVO small business contracts, Arsenal is alleged to have subcontracted nearly all of the work under the contracts to Alliance, which was owned by Zoladz and Lyons, and ZCCI, which was owned by Zoladz. Neither Alliance nor ZCCI were eligible to participate in SDVO small business contracting programs. Zoladz and Lyons are alleged to have carried out their scheme by, among other things, making or causing false statements to be made to the U.S. Department of Veterans’ Affairs (VA) regarding Arsenal’s eligibility to participate in the SDVO small business contracting program and the company’s compliance with SDVO small business requirements.
“Detecting and discontinuing fraud, waste, and abuse committed by those who do business with the government remains a core function performed in this Office,” said Acting U.S. Attorney James P. Kennedy, Jr. for the Western District of New York. “That function, however, takes on additional significance when the target of the fraud is a program designed for the benefit of the heroes among us—our disabled veterans. Although this investigation did not uncover sufficient evidence to establish criminal liability by these entities and individuals, the multi-million dollar civil judgment ensures that those involved pay a heavy price for their decision to divert to themselves resources intended for the benefit of those who have made supreme sacrifices on behalf of all.”
“This settlement demonstrates the commitment of the Department of Veterans Affairs, Office of Inspector General, the Department of Justice, and other law enforcement agencies to aggressively pursue individuals and companies that misrepresent themselves as service-disabled veteran-owned small businesses and deny legitimate disabled veterans the opportunity to obtain VA set-aside contracts,” said Inspector General, Michael J. Missal of U.S. Department of Veterans Affairs, Office of Inspector General (OIG). “The VA OIG will continue to work diligently to protect the integrity of this important program, which is designed to aid disabled veterans. I also want to thank the U.S. Attorney’s Office and our law enforcement partners in this effort.”
“The contracting companies and principals allowed greed to corrupt a federal process intended to benefit service-disabled, veteran-owned small businesses,” said Special Agent in Charge Adam S. Cohen of FBI Buffalo Field Office. “The FBI and our partners will continue to identify and investigate companies and individuals who target these types of programs for personal gain.”
The settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The civil lawsuit was filed in the Western District of New York and is captioned United States ex rel. Western New York Foundation for Fair Contracting, Inc. v. Arsenal Contracting, LLC, et al., Case No. 11-CV-0821(S) (W.D.N.Y.). As part of today’s resolution, the whistleblower will receive $450,000.
“This case is yet another example of the tremendous results achieved through the joint efforts of the Small Business Administration (SBA), the Department of Justice, and partner agencies to uncover and forcefully respond to fraud in Federal Government contracting programs, such as the Service Disabled Veteran-Owned Program in this case,” said Christopher M. Pilkerton, General Counsel of the SBA. “Identifying and aggressively pursuing instances of civil fraud by participants in these procurement programs is one of SBA’s top priorities.”
“Providing false statements to gain access to federal contracts set aside for service-disabled veterans denies the government opportunities to meet its abiding commitment to our nation’s veterans,” said Acting SBA Inspector General Hannibal “Mike” Ware. “The SBA’s Office of the Inspector General is committed to bringing those that lie to gain access to SBA’s preferential contracting programs to justice. I want to thank the Department of Justice for its leadership and dedication to serving justice.”
“There is an obvious need and reason for service-disabled, veteran-owned small businesses in the government contracting process,” said Director Frank Robey of the Army Criminal Investigation Command (CID), Major Procurement Fraud Unit. “Special Agents from Army CID will continue to work closely with our law enforcement partners to make every contribution possible to bring persons to justice who violate that process.”
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of New York, the FBI, the VA’s Office of Inspector General, the SBA’s Office of Inspector General, and Army CID.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Vale Man Indicted for Filing a False ClaimRead the Press Release
United States Attorney Randolph J. Seiler announced that a Vale, South Dakota, man was charged in federal district court with False Claim.
Dale Knutson, age 57, was charged on September 19, 2017. He appeared before U.S. Magistrate Judge Daneta Wollmann on September 29, 2017, and pleaded not guilty to the charge.
The maximum penalty upon conviction is 5 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Knutson knowingly filing a false claim with the Farm Service Agency in May 2014. The charge is merely an accusation and Knutson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Department of Agriculture, Office of Inspector General. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Knutson was released pending trial. A trial date has not been set.
United States Files Enforcement Action Against California Company and Company’s Owner to Prevent Distribution of Adulterated Seafood ProductsRead the Press Release
The United States filed a civil complaint against Michel Cordon Bleu Inc. of Los Angeles, California, and its owner and President Michel G. Blanchet to prevent the distribution of adulterated seafood products in violation of federal law, the Department of Justice announced today.
Michel Cordon Bleu Inc. (Michel Cordon Bleu) prepares, processes, packs, holds, and distributes vacuum-packed, ready-to-eat cold and hot smoked fish and fishery products. The complaint, filed in the U.S. District Court for the Central District of California, alleges that Michel Cordon Bleu and Michel G. Blanchet adulterated seafood products by preparing, packing, or holding them under insanitary conditions whereby the seafood may have become contaminated with filth or may have been rendered injurious to health.
The Department filed the complaint at the request of the U.S. Food and Drug Administration (FDA).
“The Department of Justice is committed to ensuring that seafood processors comply with laws designed to protect consumers,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work aggressively with the FDA to ensure that consumers are protected from potentially unsafe food.”
According to the complaint, FDA inspected Michel Cordon Bleu’s facility on numerous occasions, including two times in 2016. The complaint alleges that defendants failed to comply with the seafood Hazard Analysis and Critical Control Point (HACCP) regulations by, among other deficiencies, failing to adequately control the risk of Listeria monocytogenes (L. mono) and Clostridium botulinum (C bot.) toxin formation in their vacuum-packed fish or fishery products.
The seafood HACCP regulations require every fish and fishery product processor to conduct, or have conducted for it, a hazard analysis to determine whether there are food safety hazards that are reasonably likely to occur during the processing of each kind of fish or fishery product that it processes.
According to the complaint, FDA’s analysis of environmental samples collected during its January-February 2016 inspection revealed the presence of L. mono contamination in multiple locations throughout the Michel Cordon Bleu facility. The complaint also alleges that FDA’s analysis of environmental samples collected during its subsequent inspection in July-August 2016 also revealed the presence of L. mono contamination in multiple locations throughout the company’s facility.
According to the complaint, FDA noted deficiencies at each of its two 2016 inspections at the Michel Cordon Bleu facility. As alleged in the complaint, FDA noted that defendants failed to manufacture, package and store foods under conditions and controls necessary to minimize the potential for growth of microorganisms and contamination; failed to monitor sanitation conditions and practices with sufficient frequency to assure conformance with current good manufacturing practices; and failed to take corrective action that ensured affected product was not entered into commerce and the cause of the deviation was corrected.
“When we find contaminants that can harm public health at a food manufacturing facility, we must take action to protect consumers,” said FDA Associate Commissioner for Regulatory Affairs, Melinda K. Plaisier. “When necessary, we will seek legal action to ensure that manufacturers take steps to comply with food safety laws and regulations.”
The government is represented by Trial Attorney Monica Groat of the Civil Division’s Consumer Protection Branch, with the assistance of the U.S. Attorney’s Office for the Central District of California and the Associate Chief Counsel for Enforcement Roselle Oberstein of the FDA, Office of General Counsel, Department of Health and Human Services.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
U.S. Postal Service Manager Sentenced to More Than Eight Years for Directing a Federal Corruption and Drug Distribution SchemeRead the Press Release
A former U.S. Postal Service (USPS) station manager was sentenced on Oct. 2, to 97 months in prison for his role directing a bribery and drug scheme in which USPS workers delivered hundreds of pounds of marijuana to individuals in the District of Columbia in exchange for cash bribes. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement.
Deenvaughn Rowe, 48, of Odenton, Maryland, was sentenced by U.S. District Judge Tanya S. Chutkan. In addition to the term of prison imposed, U.S. District Court Judge Chutkan ordered Rowe to serve four years of supervised release and to forfeit $64,000. During the sentencing Judge Chutkan told Rowe, who had immigrated to the United States from Jamaica, “What you have done has betrayed all this country has given you.” Last month, Judge Chutkan sentenced two of Rowe’s co-conspirators, Kendra Brantley, 32, and Alicia Norman, 39, both of Washington, D.C., to 46 months and 18 months in prison respectively, for using their positions as letter carriers to deliver boxes of marijuana.
According to the evidence presented at trial, Rowe, the then-acting manager of the River Terrace Carrier Annex, used his USPS computer to track packages containing marijuana mailed from the Western United States to the Lamond-Riggs Post Office in Washington, D.C. The packages were typically addressed to fictitious individuals or non-existent addresses. The evidence at trial revealed that once the packages arrived at Lamond-Riggs, Rowe coordinated the delivery of the packages with Lamond-Riggs Letter Carriers Brantley and Norman, among others, by cell phone and text message. Brantley and Norman then delivered the boxes of marijuana on the street to men in expensive cars in exchange for cash bribes.
This case was investigated by the USPS Office of the Inspector General’s Capital Metro Field Office and the Postal Inspection Service’s Washington Division. Trial Attorneys Mark J. Cipolletti, Shamiso Maswoswe, Molly Gaston and Nicholas Connor of the Criminal Division’s Public Integrity Section prosecuted the case.
U.S. Attorney Charges Alabama Deer Breeder for Illegal Transportation of Whitetail DeerRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office for the Northern District of Alabama today charged a licensed Alabama deer breeder and his associate for illegally transporting captive-bred and raised whitetail deer from a facility in Indiana to his deer breeder facility in Alabama. U.S. Attorney Jay E. Town and Alabama’s Wildlife and Freshwater Fisheries Division Chief of Enforcement Michael Weathers announced the charge.
Prosecutors filed a one-count information charging LEWIS H. SKINNER, 56, and his associate FRANKLIN BANKS LODEN, 56, both of Northport, with knowingly transporting and receiving whitetail deer in interstate commerce. The defendants should have known that the wildlife was possessed and transported in violation of the laws and regulations of the State of Alabama and the federal Lacey Act, according to the charge.
In conjunction with the information, prosecutors also filed a plea agreement with Skinner and Loden in the U.S. District Court. According to the plea agreement, Skinner owned and controlled all activities occurring on Skinner Farms, a private deer breeding business in Sumter County, Ala. Skinner had obtained a deer breeder permit from the State of Alabama and knew that Alabama is a “closed border” state that prohibits importing deer.
According to the plea agreement, Skinner surrendered his Alabama Game Breeders License and agreed not to participate in the commercial deer breeder industry in the future. Skinner also agreed to pay a $100,000 fine, which shall be directed to the Lacey Act Reward Fund, and $650,000 in restitution to the State of Alabama.
In November 2016, according to the plea agreement, Skinner arranged for Loden to move six captive-bred whitetail deer covertly from Indiana to Skinner Farms in Alabama. Law enforcement stopped Loden and seized the deer in Tuscaloosa, Ala. Investigators determined that some of these illegally transported deer were lacking the required identification for the Chronic Wasting Disease Herd Certification Program. The deer in question, fawns from a previously certified herd, rendered the farm and other deer disqualified from the program because of the lack of identification. The required identification is usually in the form of a numbered ear tag or tattoo.
CWD affects the central nervous system of deer species, including whitetail deer. The disease attacks the brain of an infected animal causing it to become emaciated, display abnormal behavior, lose bodily functions, and die. CWD is infectious, communicable and 100 percent fatal.
“The illegal transport of deer from outside the State of Alabama by a licensed deer breeder motivated solely by profit places our entire whitetail deer herd at risk of this fatal disease,” Weathers said. “The charge and plea agreement in this case are evidence of the Wildlife and Freshwater Fisheries Division’s steadfast dedication to protecting the wildlife resources of the State of Alabama,” he said.
As noted in the plea agreement, Skinner is submitting all captive whitetail deer held in his deer breeder facility to be tested for the presence of CWD.
The Alabama Department of Conservation and Natural Resource’s Wildlife and Freshwater Fisheries Division investigated the case in cooperation with the U.S. Fish and Wildlife Service Office of Law Enforcement. Assistant U.S. Attorney Henry Cornelius is prosecuting the case.
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Two of Three Defendants Sentenced in Gun Burglary CaseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Chief United States District Judge Kristi K. DuBose sentenced Jabriel Bell and Fortune Hoppins to 46 months and 57 months of prison, respectively, in a gun burglary case. The judge ordered that Bell, 25, and Hoppins, 35, face credit restrictions and pay restitution totaling $22,737. The judge also ordered that each defendant pay a $100 special assessment and undergo three years of supervised release after completing their prison term.
In the early morning hours of May 10, 2017, Bell, Hoppins, and Stanley Young stole approximately fifty firearms from Safford Tire and Hardware, a licensed firearms dealer in Safford, Alabama. The store’s video surveillance system captured the burglary. Law enforcement officials soon identified Bell, Hoppins, and Young as suspects and found several discarded clothing items near the store. On May 11, 2017, law enforcement officials located Bell, who admitted post-Miranda to burglarizing the store with Hoppins and Young. Bell helped officials find twenty-three firearms he left in a bag in the woods near Safford Tire. That same day, law enforcement officials found Hoppins, a convicted felon, in Marion Junction, Alabama in possession of one of the stolen guns. Officials later located Stanley Young, a convicted felon, in the state of New York.
In late May 2017, a federal grand jury for the Southern District of Alabama returned a four-count indictment against Bell, Hoppins, and Young. On July 19, 2017, Bell pleaded guilty to stealing firearms from a licensed firearms business, and Hoppins pleaded guilty to being a felon in possession of firearms. On September 19, 2017, Young pleaded guilty to being a felon in possession of firearms. His sentencing is scheduled for December 22, 2017.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Dallas County Sheriff’s Office, and the Fourth Judicial Drug Task Force in Selma, Alabama investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Two Wheeling men indicted on firearm chargesRead the Press Release
WHEELING, WEST VIRGINIA – Two Wheeling, West Virginia men were indicted by a federal grand jury of unlawful possession on a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Eban Joseph Keith Beyah, age 45, was indicted on one count of “Unlawful Possession of a Firearm.” Beyah, having previously been convicted of burglary and several drug-related charges in Commons Pleas Court in Cuyahoga County, Ohio, is accused of possessing a 9mm pistol in Ohio County on June 2017.
Charles C. Ansley, Jr., age 37, was indicted on one count of “Unlawful Possession of a Firearm.” Ansley, having previously been convicted of burglary in Commons Pleas Court in Lucas County, Ohio, is accused of possessing a .22 caliber revolver in Ohio County on August 2017.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting both cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department are investigating both cases.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Virginia companies and three individuals indicted on cigarette smuggling chargesRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging three individuals and two Virginia-based companies with unlawful cigarette smuggling, Assistant United States Attorney, Criminal Chief Randolph J. Bernard announced today.
Reba Marcelle Myers, age 60, of Clearbrook, Virginia; Lisa Renee Lindquist, age 52, of Winchester, Virginia; John Barrett Fairchild, age 40, of East Islip, New York; Demcorp. Inc. of Clearbrook, Virginia: and Welltown Group of Winchester, Virginia, are alleged to have conspired to profit from the unlawful sale of contraband cigarettes. The indictment charges that the defendants transported large quantities of cigarettes across state lines for redistribution and sale. The cigarettes were acquired in Virginia, where the tax rate for cigarettes is one of the lowest in the nation, and sold in other states, including New York, which has one of the nation’s highest tax rates. The cigarettes were possessed and transported in West Virginia.
Tobacco retailer Dollar Stretcher, of Winchester, Virginia, which was owned by Demcorp. Inc., owned and operated by Myers, and Welltown Group, owned and operated by Lindquist, was responsible for the acquisition of the contraband. Myers and Demcorp. Inc., along with Lindquist and Welltown Group, are alleged to have purchased millions of dollars worth of cigarettes from various wholesalers in the region, primarily with cash, before reselling them to out of state smugglers for a profit.Each of the five defendants is charged with one count of “Conspiracy to Evade Tobacco Taxes.” Myers, Lindquist, and Fairchild are further charged with one count of “Contraband Cigarettes Trafficking Act.” Each of the defendants faces up to five years in prison and a fine of up to $250,000 on each count. 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 defendants.
Assistant U.S. Attorney Michael D. Stein is prosecuting the case on behalf of the government. The Internal Revenue Service Criminal Investigation, Homeland Security Investigations, the Alcohol and Tobacco Tax and Trade Bureau, and the Frederick County, Virginia Sheriff’s Office led the inquiry.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Police Officers Admit Schemes Involving Jersey City Off-Duty Work AssignmentsRead the Press Release
NEWARK, N.J. – Two Jersey City police officers today admitted fraudulently collecting income for off-duty work they never performed, Acting U.S. Attorney William E. Fitzpatrick announced.
Ehab Abdelaziz, 38, of Clifton, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit bribery. Andrea Fahrenholz, 38, of Clifton, pleaded guilty before Judge Vazquez to a separate information charging her with one count of conspiracy to commit fraud.
According to documents filed in this case and statements made in court:
Private contractors and utility companies sometimes needed the services of off-duty Jersey City police officers for certain projects, including work in Jersey City that could obstruct the flow of traffic. Abdelaziz and Fahrenholz were Jersey City police officers who were eligible to perform off-duty work.
From December 2015 through June 2016, Abdelaziz engaged in a conspiracy in which he made a total of $11,825 in bribe payments to another Jersey City officer who was authorized to assign off-duty work, in exchange for that officer’s official assistance in submitting phony vouchers to Jersey City indicating that Abdelaziz had completed certain off-duty assignments. As a result, Abdelaziz was compensated for work he never performed.
From March 2014 through May 2016, Fahrenholz conspired with a Jersey City officer who was authorized to assign off-duty work. The officer – with Fahrenholz’s knowledge and consent – submitted phony vouchers to Jersey City indicating that Fahrenholz had completed certain off-duty assignments. As a result, Fahrenholz was compensated for work she never performed.
Both officers face a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offenses. Pursuant to their plea agreements, Abdelaziz and Fahrenholz must forfeit $22,449 and $116,346, respectively.
Sentencing for Abdelaziz and Fahrenholz is set for Jan. 3, 2018 and Jan. 25, 2018, respectively.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy A. Gallagher in Newark, with the investigation.
The Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Abdelaziz: Anthony J. Iacullo Esq., Nutley, New Jersey
Fahrenholz: Aidan P. O’Connor Esq., Hackensack, New Jersey
Tidewater Cocaine Dealer Sentenced to 32 Years in PrisonRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 32 years in prison for conspiring to deal more than five kilograms of cocaine and discharging a firearm during the commission of a drug trafficking felony.
Andre Monroe, 33, pleaded guilty on June 12. According to court documents, for over two years Monroe and his co-conspirators trafficked and distributed over 12 kilograms of cocaine from Maryland and North Carolina into the Tidewater area for distribution. In June 2016, while distributing cocaine, Monroe struck a drug purchaser in the face with a loaded Glock pistol. As the victim ran Monroe shot the victim in the leg, fracturing the victim’s femur.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
This case was investigated by the HSI’s High Intensity Drug Trafficking Area (HIDTA) Task Force with the assistance of officers from the Hampton Police Division. Special Assistant U.S. Attorneys Amy E. Cross and Francesca Liquori prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-11.
Three New York Men Charges in Bank Fraud SchemeRead the Press Release
JOHNSTOWN, Pa. – Three New York residents were indicted by a federal grand jury in Johnstown on charges of conspiracy, identity theft and false statements to a bank, Acting United States Attorney Soo C. Song announced today.
The three-count indictment named as defendants Anthony T. Sass, 26, of New York, NY; Nathaniel C. Graham, 25, of Bronx, NY; and Jacob Gunther, 41, Brooklyn, NY.
According to the indictment presented to the court, from Mar. 21 to Mar. 28, 2017, Sass, Graham and Gunther conspired to commit bank fraud; on Mar. 22, 2017, Sass and Gunther committed aggravated identity theft; and on Mar. 25, 2017, Sass and Gunther made false statements to a bank in connection with a loan application.
The law provides for a maximum total sentence for each Anthony T. Sass and Jacob Gunther of 62 years in prison, a fine of $2,250,000, or both, and for Nathaniel C. Graham of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney John J. Valkovci, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Sass, Graham and Gunther.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
The U.S. Attorney’s Office is now able to receive calls via its usual telephone number on St. Thomas: (340) 774-5757Read the Press Release
The U.S. Attorney’s Office is now able to receive calls via its usual telephone number on St. Thomas: (340) 774-5757. Until further notice, please use this number to call the St. Croix office as well.
Syracuse Area Medical Practice to Pay Nearly $2 Million to Resolve False Claims Act ExposureRead the Press Release
SYRACUSE, NEW YORK – New York Anesthesiology Medical Specialties, P.C. d/b/a New York Spine and Wellness Center (New York Spine & Wellness) agreed today to pay $1,941,850.29 to resolve claims that it improperly billed for moderate sedation services, announced Acting United States Attorney Grant C. Jaquith and New York State Attorney General Eric T. Schneiderman.
New York Spine & Wellness is a medical practice focusing on pain management, and spine and back procedures, with locations in the Syracuse, New York area. During certain procedures, New York Spine & Wellness physicians placed patients under moderate sedation. Moderate sedation produces a state where the patient retains the ability to respond to verbal direction and remains capable of maintaining their airway without assistance. Generally, the administration of moderate sedation reduces pain and anxiety in patients who undergo therapeutic and diagnostic procedures by reducing their perception of pain and/or fear.
The American Medical Association released guidance on the billing requirements for moderate sedation services in October 2011 to clarify that the service is billable only when the physician spends at least 16 minutes face-to-face with the patient. The Medicare Administrative Contractor for New York that processes providers’ claims confirmed the 16-minute rule in February 2012 in an explanatory article released to its listserv and also maintained on its website for a period of approximately one year. New York Spine & Wellness routinely billed for moderate sedation services when its physicians spent less than the required 16 minutes with the patient. These moderate sedation claims were submitted in connection with claims for underlying therapeutic and/or diagnostic services for which New York Spine & Wellness also billed and was paid. Although New York Spine & Wellness utilized the services of an independent billing company, New York Spine & Wellness retained the contractual obligation to code its services accurately.
In or about January 2015, a private insurance company rejected two of New York Spine & Wellness’s claims for moderate sedation services because, as described by New York Spine & Wellness’s billing company, the “Medicare 16 minute span rule to bill [the] code” was not satisfied. In mid-June 2015, the same private insurance company performed an audit and rejected New York Spine & Wellness’s claims for moderate sedation services where the documentation did not support that the procedure lasted more than 16 minutes. The billing company advised New York Spine & Wellness to review the audit findings concerning moderate sedation services. New York Spine & Wellness continued to bill for moderate sedation services after mid-June 2015 without the required 16 minutes of face-to-face time. The improper billing stopped after New York Spine & Wellness was contacted by the United States Attorney’s Office for the Northern District of New York in connection with this investigation.
Acting United States Attorney Grant C. Jaquith said: “We remain committed to holding healthcare providers to account when they submit false claims. Providers should have policies and procedures in place to ensure that they are familiar with applicable billing requirements before submitting claims. Although New York Spine & Wellness is being held responsible for its conduct, we appreciate that it resolved this matter outside litigation and worked cooperatively through the investigation.”
“New York Spine and Wellness Center, like all health care providers, must be held to a high standard of ethical behavior,” said Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (“HHS-OIG”). “HHS-OIG will continue to ensure that providers that bill federal health care programs do so in an honest manner.”
“Today’s agreement represents a win for New Yorkers, ensuring that over $660,000 will be returned to the New York Medicaid Program and that the provider does not improperly bill Medicaid for this service in the future,” said Attorney General Schneiderman. “I’m proud of the federal and state collaboration involved in this investigation as we work to protect New York’s taxpayers, and appreciate the provider’s cooperation.”
The investigation and settlement were the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, the Defense Criminal Investigative Service, the Department of Health and Human Services Office of Inspector General, and the New York State Attorney General’s Office. The United States was represented by Assistant U.S. Attorney Michael D. Gadarian, and the State of New York was represented by Special Assistant Attorney General Paul R. Berry.
Substitute Teacher Pleads Guilty to Receiving Child PornographyRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of receipt of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
Nicholas James Gaworski, age 26, of Clinton, Pennsylvania, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, in December 2016, Gaworski, a substitute teacher, received videos and images containing material depicting the sexual exploitation of minors.
Judge Schwab scheduled sentencing for February 7, 2018 at 9 a.m. the law provides for a maximum total sentence of 30 years in prison, a fine of $500,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and the Allegheny County Police Department conducted the investigation that led to the prosecution of Gaworski.
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.justice.gov/psc.
Steubenville, Ohio man indicted on firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Steubenville, Ohio man was indicted by a federal grand jury of unlawful possession on a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Thomas Bennett, age 41, was indicted on one count of “Unlawful Possession of a Firearm.” Bennet, having previously been convicted of drug possession in Commons Pleas Court in Jefferson County, Ohio in 2017, is accused of possessing a 9mm pistol in Ohio County on August 12, 2017.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department are investigating.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Second Young Melph Mafia Gang Member Sentenced to Life in Prison Following Convictions on Rico, Gun, Drug, and Murder ChargesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JAWAN FORTIA, a/k/a “Tittie” and “Wine,” age 24, of New Orleans, was sentenced today after having previously been found guilty of violating the Racketeer Influenced Corrupt Organization Act “RICO” as well as drug conspiracy, firearms conspiracy, and murder charges. U.S. District Judge Kurt D. Engelhardt sentenced FORTIA to serve life in prison.
In June of 2017, FORTIA, DEDRICK KEELEN, LIONEL ALLEN, BRYAN SCOTT and DELWIN MCLAREN were convicted following a 7-day trial. According to evidence presented at trial, FORTIA was a member of the “Young Melph Mafia” gang, also referred to as “YMM.” The YMM gang was initially formed in or about 2005 and continued to exist through 2014. During the course of the federal investigation into the gang, agents learned that the defendants controlled an area of Central City New Orleans along Martin Luther King Boulevard near the former Melpomene Housing Development. The gang, which started when the members were in their early teens, participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court in 2014. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
The jury found FORTIA guilty of conspiracy to commit RICO violations, conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine and a quantity of marijuana, conspiracy to possess firearms during and in relation to crimes of violence and drug trafficking crimes, assault with a dangerous weapon and one murder. Specifically, FORTIA was convicted of participating in the drive-by shooting death of Vennie “Funk” Smith that occurred on April 22, 2012, on Martin Luther King Boulevard.
FORTIA was one of eleven defendants originally charged in August of 2014 in a superseding indictment involving gun and drug conspiracies. Five YMM defendants pled guilty to the conspiracy charges and were sentenced. JACOBI “CO” BOYD was sentenced to 480 months of incarceration; ALFRED “AL” COBBINS was sentenced to 252 months of incarceration; SHAWN “GUNNER” GRACIN was sentenced to 270 months of incarceration; RUBEN “RUE” GEIGER was sentenced to 220 months of incarceration; DARIUS “D-MAN” WILLIAMS was sentenced to 156 months of incarceration; and DEONTRE “SOULJA” HILLS was sentenced to 96 months of incarceration. In August of 2015, federal RICO and murder charges were added against the remaining defendants in a second superseding indictment. JEFFREY WILSON pled guilty to only drug charges and was sentenced to 180 months of incarceration. DEDRICK KEELEN was sentenced to life plus 10 years last week after being convicted of multiple counts at trial. LIONEL ALLEN, BRYAN SCOTT, and DELWIN MCLAREN, who went to trial with FORTIA, are awaiting sentencing.
“The life sentence that was handed down today is another victory in the battle against violent crime for ATF, our law enforcement partners, and more importantly, the citizens of New Orleans,” said ATF Special Agent in Charge Dana Nichols.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Edward Rivera, Nolan Paige, and Nicholas Moses were in charge of the prosecution.
Scottsdale Resident Sentenced to 24 Months for Investment FraudRead the Press Release
PHOENIX – Yesterday, Bart James Ellis, 44, of Scottsdale, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 24 months in prison and ordered to pay more than $900,000 in restitution. Ellis had previously pleaded guilty to money laundering.
“Investment fraud is especially problematic when criminals target retirees. The United States Attorney’s Office takes this kind of criminal conduct very seriously and will continue to aggressively prosecute financial frauds,” stated Acting U.S. Attorney Elizabeth A. Strange.
“The defendant misled his clients and stole their hard earned money,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr. “IRS-CI will continue to protect the public by investigating individuals who defraud their investor clients.”
From 2012 through 2015, Ellis, a former financial advisor, solicited more than $1.1 million from former clients, several of whom were elderly, by claiming that the funds would be used to purchase low-risk investments, but instead he used approximately $400,000 on personal expenses and lost approximately $700,000 on risky stock trades in his online brokerage account. Ellis also attempted to conceal his fraudulent scheme by falsifying investment statements.
The investigation of this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by Mark S. Kokanovich, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00299-DLR
RELEASE NUMBER: 2017-096_Ellis
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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