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Tuesday 3 October 2017
Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Springfield to a federal immigration crime.
Reynaldo Rodriguez, 49, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 28, 2017.
Rodriguez was previously deported on June 14, 2007. In June 2017, law enforcement officers in Hampden County encountered Rodriguez and determined him to be illegally present in the United States.
Rodriguez faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000 and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Weinreb’s Springfield Branch Office is prosecuting the case.
Doctor Pleads Guilty to Health Care Fraud Conspiracy for Role in $19 Million Detroit Area Medicare Fraud SchemeRead the Press Release
A physician pleaded guilty today to conspiracy to commit health care fraud for his role in an approximately $19 million Medicare fraud scheme involving three Detroit area providers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office and Special Agent in Charge Manny Muriel of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
Abdul Haq, 72, of Ypsilanti, Michigan, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Denise Page Hood of the Eastern District of Michigan. Sentencing has been scheduled for May 29, 2018 before Judge Hood.
As part of his guilty plea, Haq admitted that he conspired with the owner of the Tri-County Network, Mashiyat Rashid, and his co-defendants and others to prescribe medically unnecessary controlled substances, including Oxycodone, Hydrocodone and Opana, to Medicare beneficiaries, many of whom were addicted to narcotics. He further admitted that in furtherance of the conspiracy, Rashid and others also directed physicians, including Haq and others, to require Medicare beneficiaries to undergo medically unnecessary facet joint injections if the beneficiary wished to obtain prescriptions for controlled substances.
In furtherance of the conspiracy, Haq and others referred Medicare beneficiaries to specific third party home health agencies, laboratories and diagnostic providers even though those referrals were medically unnecessary, he admitted. Haq also served as the straw owner of various pain clinics owned and/or controlled by Rashid, and submitted false and fraudulent enrollment materials to Medicare that failed to disclose the ownership interest of Rashid, as it was illegal for Rashid – a non-physician – to own medical clinics under Michigan law. In total, Haq admitted that he submitted or caused the submission of approximately $19,322,846.60 in false and fraudulent claims to Medicare.
Haq was charged along with Mashiyat Rashid, 37, of West Bloomfield, Michigan; Yasser Mozeb, 35, of Madison Heights, Michigan; Spilios Pappas, 61, of Monclova, Ohio; Joseph Betro, 57, of Novi, Michigan; Tariq Omar, 61, of West Bloomfield, Michigan; and Mohammed Zahoor, 51 of Novi, Michigan, in an indictment unsealed on July 6. Rashid, Mozeb, Pappas, Betro, Omar and Zahoor are awaiting trial.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, HHS-OIG and IRS-CI. Trial Attorney Jacob Foster of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Department of Justice Announces Tribes Selected for Expansion of Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
Department of Justice Tribal Access Program Will Continue to Improve the Exchange of Critical Data
The Department of Justice announced 15 additional American Indian tribes selected to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program to provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes.
These TAP deployments are part of the Justice Department’s Task Force on Crime Reduction and Public Safety, allowing tribes to more effectively serve and protect their communities by ensuring the exchange of critical data.
“The Tribal Access Program provides tribal governments access to federal crime information databases containing highly useful information, such as criminal background records, outstanding warrants, and domestic violence protection orders,” said Deputy Attorney General Rod Rosenstein. “When federal, state, and tribal governments share information, it makes communities and law enforcement officers safer. It helps solve crimes and protect people from being victimized.”
The TAP Team is pleased to announce that the following tribes have been selected for the next phase of TAP:
The Choctaw Nation of Oklahoma
Colorado River Indian Tribes of the Colorado River Indian Reservation, Arizona and California
Lummi Tribe of the Lummi Reservation (Washington)
Mashantucket Pequot Indian Tribe (Connecticut)
Mescalero Apache Tribe of the Mescalero Reservation, New Mexico
Pueblo of Acoma, New Mexico
Red Lake Band of Chippewa Indians, Minnesota
Sac and Fox Tribe of the Mississippi in Iowa
Yavapai-Apache Nation of the Camp Verde Indian Reservation, Arizona
Zuni Tribe of the Zuni Reservation, New Mexico
Kootenai Tribe of Idaho
Mississippi Band of Choctaw Indians (Mississippi)
Nez Perce Tribe (Idaho)
Passamaquoddy Tribe (Maine)
Round Valley Indian Tribes, Round Valley Reservation, California
TAP is primarily funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART) and the Office of Community Oriented Policing Services (COPS). TAP prioritized selection of tribes that had a tribal sex offender registry pursuant to the Adam Walsh Act and are currently unable to directly submit data to national crime information databases; and/or had a tribal law enforcement agency that will use TAP to access the National Criminal Information Center (NCIC), Next Generation Identification (NGI), and other national databases to both view and enter information.
TAP is currently deployed to 32 tribes with over 160 tribal criminal justice and civil agencies participating. The service provides software to enable tribes to access national crime information databases and/or a kiosk-workstation that provides the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification (NGI) for both criminal and civil purposes.
Success stories from the past two years include:
- Recovered safely a vulnerable adult kidnap victim and captured the alleged kidnapper through the use of the National Data Exchange (N-DEx).
- Identified a previously unknown active warrant issued by another jurisdiction, on a sex offender during the routine process of registering that offender
- Stopped a known drug user with mental problems, who was found incompetent to stand trial, from purchasing a weapon
- Prevented a person convicted of domestic violence from purchasing a firearm after the police department identified an imminent threat to former spouse
- Completed entry of information on all sex offenders on tribal registries into both NGI (with fingerprint, palm prints, mug shots) and NCIC’s National Sex Offender Registration (NSOR) file so sex offender status will be obvious to anyone running a subsequent NCIC check or fingerprint-based background check
TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA); have orders of protection enforced off-reservation; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.
TAP supports tribes in analyzing their needs for national crime information and includes appropriate solutions, including a-state-of-the-art biometric/biographic kiosk workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases, as well as the ability to access CJIS systems for criminal and civil purposes through the Department of Justice’s Criminal Justice Information Network. TAP, which is managed by the Department of Justice Chief Information Officer, provides specialized training and assistance for participating tribes, including computer-based training and on-site instruction, as well as a 24x7 Help Desk.
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribalConvicted Felon Sentenced to Ten Years in Federal Prison for Stealing Firearms from Cargo TrainRead the Press Release
CHICAGO — A federal judge today sentenced a convicted felon to ten years in prison for stealing hundreds of firearms from a cargo train on the South Side of Chicago and selling more than a dozen of them.
On April 12, 2015, ANDREW SHELTON and several acquaintances burglarized the cargo train while it was parked overnight in a railyard in Chicago’s Avalon Park neighborhood. The cargo train was en route from a Ruger factory in New Hampshire to Spokane, Wash. The thieves broke locks on a train car and walked off with approximately 111 firearms, with Shelton keeping 13 guns for himself. He quickly sold the 13 firearms on the black market.
To date, law enforcement has recovered 19 of the 111 stolen firearms at various locations and crime scenes in Chicago and the surrounding area.
Shelton, 43, of Riverdale, had previously been convicted of a felony and was not legally allowed to possess a firearm. He pleaded guilty earlier this year to one count of illegal possession of a firearm by a felon, and one count of possession of a stolen firearm. U.S. District Judge John J. Tharp Jr. imposed the 120-month sentence in federal court in Chicago.
The sentencing was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department and the Norfolk Southern Railroad Police Department provided valuable assistance.
“No efforts by law enforcement to stop the senseless killings in this city by keeping guns out of the hands of felons will be successful when there are individuals like the defendant and his codefendants who are willing to profit off of illegal arms trafficking in Chicago,” Assistant U.S. Attorneys Christopher V. Parente and Eric Pruitt argued in the government’s sentencing memorandum.
The investigation into the theft and trafficking of the firearms resulted in charges against eleven defendants, including Shelton. Ten have been convicted, while one defendant, DANDRE MOODY, is awaiting a jury trial on Dec. 11, 2017.
The ten convictions include FREDERICK LEWIS (scheduled to be sentenced by Judge Tharp on Oct. 5, 2017, at 2:00 p.m.); PATRICK EDWARDS (scheduled to be sentenced by Judge Tharp on Oct. 12, 2017, at 2:00 p.m.); TERRY WALKER (scheduled to be sentenced by Judge Tharp on Dec. 6, 2017, at 2:00 p.m.); WARREN GATES (sentenced to five years and three months in prison); NATHAN DRIGGERS (sentenced to eight years in prison); LORI SHELTON (sentenced to three years of probation); ELGIN LIPSCOMB (awaiting sentencing); MARCEL TURNER (awaiting sentencing); and ALEXANDER PEEBLES (awaiting sentencing).
Columbus, Ohio man indicted on bank robbery chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Columbus, Ohio man was indicted by a federal grand jury on bank robbery, Acting United States Attorney Betsy Steinfeld Jividen announced.
Abdou Seye, age 26, was indicted on one count of “Bank Robbery.” Seye is accused of robbing the Chase Bank in the Woodsdale section of Wheeling on March 21, 2017.
Assistant U.S. Attorney Randolph J. Bernard is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Wheeling Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Chinese Man Pleads Guilty to Illegally Shipping SnakesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Chaoyi Le, 28, of Shanghai, China, pleaded guilty to Lacey Act False Labeling before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Aaron J. Mango and Craig R. Gestring, who are handling the case, stated that on April 22, 2014, the defendant sent seven ball pythons from Amherst, NY, to Shanghai, China through the U.S. Mail using the fictitious name “Ben Fan.” Le submitted a form falsely declaring that the package contained “Belts, Candy and Chocolate” with a value of $80. At the time the package was shipped, the ball pythons had an approximate value of $3,300.
The package was recovered by the United States Fish and Wildlife Service (USFWS), and inspected on May 3, 2014. In addition to the seven live ball pythons, the package also contained cloth bags typically used to hold snakes, hand warmers which are typically used in shipping reptiles, and insulation material. Written on one of the cloth bags were trade names for ball pythons: “Enchi Ghost,” “Pastel Enchi Ghost,” and “Butter Enchi,” all common trade names for ball pythons color morphs. After discovering the pythons, the USFWS contracted with a wildlife expert to temporarily care for the pythons.
Le was stopped by Canadian border officials attempting to enter Canada on April 22, 2014, at which time three live albino western hog-nosed snakes were found hidden in his socks. The total value of the hog-nosed snakes was approximately $500.
The plea is the result of an investigation by the U.S. Fish and Wildlife Service, under the direction of Honora Gordon, Special Agent-in-Charge, Northeast Region; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division; and Investigators with Environment and Climate Change Canada, Wildlife Enforcement Division.
Sentencing is scheduled for October 30, 2017 at 10:00 a.m. before Judge Geraci.
Cedar Rapids Man Sentenced to More than Five Years in Prison for Illegally Possessing a GunRead the Press Release
A felon and drug user who possessed a stolen firearm was sentenced yesterday to more than five years in federal prison.
Derek Hines, age 33, from Cedar Rapids, Iowa, received the prison term after a guilty plea to possessing a firearm as a prohibited person. In a plea agreement, Hines, a convicted felon and user of marijuana and methamphetamine, admitted that he possessed a firearm in Cedar Rapids in January 2017. Cedar Rapids Police Department officers found Hines unconscious in the driver’s seat of a parked vehicle with a loaded handgun and drug paraphernalia. The gun had previously been reported stolen by its owner. In 2003, Hines was convicted in federal court of conspiracy to distribute and possess with intent to distribute cocaine base and marijuana.
Hines was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Hines was sentenced to 63 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Hines is being held in the United States Marshal’s custody until he can be transported to a federal prison to serve his sentence.
The case was prosecuted by Assistant United States Attorney Lyndie M. Freeman and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-20.
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Catholic Priest Sentenced to Prison for Tax Evasion and Bank FraudRead the Press Release
A priest for the Roman Catholic Diocese of San Jose was sentenced to 36 months in prison, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California.
According to documents and information provided to the court, from 2008 through 2011, Hien Minh Nguyen stole money that his parishioners donated to the Diocese of San Jose through cash and checks made as offerings during religious services. He deposited such checks into his personal bank account and used the funds for his benefit. He also wrote checks drawn on church business accounts to pay for personal expenses. Nguyen evaded paying income taxes on the money he stole, concealing his embezzlement from his return preparer. The court found that he embezzled $ 1,449,365 from the Catholic Church, and evaded $ 582,453 in individual income taxes that were due and owing to the Internal Revenue Service (IRS).
In addition to the term of prison imposed, U.S. District Court Judge Beth Labson Freeman ordered Nguyen to serve three years of supervised release and to pay a total of $1,883,883 in restitution, including $434,518 to the IRS. Nguyen previously pleaded guilty to tax evasion and was convicted of bank fraud following a bench trial.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch commended special agents of IRS Criminal Investigation, who conducted the investigation, and former Trial Attorney Gregory Bernstein of the Tax Division and Assistant U.S. Attorneys Michael Pitman and Thomas Moore, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Bulk Mail Firm Operator Sentenced to 2 Years in Federal Prison for Defrauding the USPS of Nearly $750KRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT KUSS, 55, of Cheshire, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 24 months of imprisonment, followed by three years of supervised release, for defrauding the U.S. Postal Service of nearly $750,000.
According to court documents and statements made in court, KUSS was the managing partner of Creative Marketing Group, LLC (“CMG”), a mail service provider in the business of sending bulk mailings. CMG has a Permit Imprint bulk mailing permit (“PI permit”) that allows the company to print postage indicia directly onto an envelope rather that affix a postage stamp or a meter impression to each piece of mail (the printed postage indicia tend to be pink printings on the upper right hand corner of an envelope).
Generally, a PI permit holder has an account from which the U.S. Postal Service (“USPS”) debits the appropriate postage charge for each bulk mailing. To utilize its PI permit, a mailer generally drops off its bulk mailing at the office that maintains its permit, known as a Business Mail Entry Unit (“BMEU”) – in this instance the Bristol (Conn.) Post Office. There, the mailing is examined and accepted by BMEU postal employees. The USPS then debits the mailer’s account the appropriate amount for postage.
To save money, a bulk mailer may also transport the bulk mailing itself to a destination USPS facility to obtain lower postage rates rather than simply deliver the bulk mailing to the appropriate BMEU. To do so, a mailer must bring both the bulk mailing and a form known as Postal Service Form 8125 (“PS 8125 Form”) to the BMEU for verification. Once verified, the BMEU personnel debit the mailer’s account and fill out the PS 8125 Form with information about the bulk mailing, including the mailer’s permit number, the total number of pieces of mail and the total mail weight. BMEU personnel also affix a USPS stamp to the form. The mailer then takes the bulk mailing and the PS 8125 Form to the destination USPS facility for delivery. A USPS employee at the destination facility reviews the bulk mailing and the form to ensure they match and for completeness before accepting the mailing and the PS 8125 Form.
Between approximately July 2014 and March 2016, KUSS brought bulk mailings to destination USPS facilities with fraudulent PS 8125 Forms. KUSS had filled out and stamped the forms to appear as though the bulk mailings had been brought to and verified by the BMEU in Bristol, and as though the USPS had appropriately debited his advanced deposit account. In fact, KUSS had not brought the bulk mailings to the BMEU, the BMEU had not verified the mailings, and the USPS had not debited his advanced deposit account.
KUSS delivered at least 125 bulk mailings to destination USPS facilities around the country pursuant to this scheme. As a result, he sent 3,260,183 pieces of mail without paying for postage, and the USPS lost $749,573.
Judge Chatigny ordered KUSS to pay full restitution to the USPS.
On December 12, 2016, KUSS pleaded guilty to one count of mail fraud.
KUSS, who is released on a $100,000 bond, was ordered to report to prison on November 8, 2017.
This matter was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and John H. Durham.
Buffalo Man Sentenced for His Role in Heroin Trafficking Conspiracy, Second Defendant Pleads Guilty in ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Maikel Gonzalez, 20, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and distribution of heroin, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara. In addition, Luis Montanez, 37, also of Buffalo, pleaded guilty to conspiracy to distribute 100 grams or more of heroin before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between January 2015 and September 28, 2015, Maikel Gonzalez conspired with others to distribute heroin on the West Side of Buffalo. The investigation utilized undercover purchases conducted by the New York State Police Community Narcotics Enforcement Team (CNET) and the Buffalo Police Department.
Gonzalez was a street-level distributors or “runner” in a heroin trafficking ring operated by Daniel Molina-Rios. The organization acquired heroin from the New York City area for distribution in Buffalo but also had an alternate heroin source locally.
Luis Montanez supplied the Molina-Rios drug trafficking organization with heroin for approximately three weeks when the original source of heroin supply was not satisfying its illegal drug-using customers. Montanez’s heroin supply was distributed to a wide network of illegal drug-using customers. The defendant also maintained a premise at 221 Gorton Street in Buffalo for distributing the heroin. A search of the residence on June 18, 2015 revealed a box of glassine bags for heroin distribution, two digital scales, and an individual health card in the name of Luis Montanez with heroin residue.
A total of 15 defendants have been indicted in connection with this case, 14 have been convicted. Charges are pending against the remaining defendant. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Luis Montanez is scheduled to be sentenced on January 16, 2018, at 11:00 a.m. before Judge Geraci.
Today’s sentencing and plea are is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Brunswick man sentenced to more than 11 years in prison for having 136,000 images and 1,000 videos of child sex abuseRead the Press Release
A Brunswick man was sentenced to more than 11 years in prison for having more than 100,000 images and 1,000 videos of child sex abuse, said U.S. Attorney Justin E. Herdman.
Scott M. Wroten, 54, was sentenced to 136 months in prison after previously pleading guilty to receiving and possessing visual depictions of minors engaged in sexually explicit conduct.
Wroten knowingly received approximately 136,000 computer files which contained visual depictions of real minors engaged in sexually explicit conduct, including sexual abuse and beastiality. These files were collected between 2011 and 2016, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the Cleveland office of the Department of Homeland Security, Homeland Security Investigations, the Ohio Internet Crimes Against Children Task Force, the Brunswick Police Department and the Wickliffe Police Department.
Alden Contractors and Two Owners to Pay More Than $3,000,000 to Settle False Claims Act AllegationsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, NY – Acting Assistant Attorney General Chad A. Readler and Acting U.S. Attorney James P. Kennedy, Jr. announced today that Zoladz Construction Company Inc. (ZCCI), Arsenal Contracting LLC (Arsenal), and Alliance Contracting LLC (Alliance), all of Alden, NY, along with two owners, John Zoladz of Darien, NY and David Lyons of Grand Island, NY, have agreed to pay the United States more than $3,000,000 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.”
“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 Kennedy. “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.”
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.
“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, Assistant U.S. Attorney Kathleen A. Lynch of 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.
Akron drug dealer pleads guilty to federal drug and gun crimeRead the Press Release
CHARLESTON, W.Va. – An Akron man pleaded guilty today to a federal drug crime and a federal gun crime, announced United States Attorney Carol Casto. Lonnie Brown, 46, entered his guilty plea to distribution of fentanyl. In a separate proceeding, Brown also pleaded guilty to being a felon in possession of a firearm.
On September 26, 2016, officers with the Charleston Police Department conducted a traffic stop on a Honda Accord in Charleston. Brown fled the vehicle on foot. During a search of the vehicle, officers located a Glock, Model 27, .40 caliber semi-automatic pistol in the floorboard where Brown had been sitting. Brown was prohibited from possessing any firearm under federal law because of a 2015 felony conviction in Montgomery County, Ohio, for possession of heroin.
On February 15, 2017, agents with the Metropolitan Drug Enforcement Network Team used a confidential informant to make a controlled drug buy from Brown. The drug deal occurred at 602 Randolph Street in Charleston, and the substance recovered by law enforcement from the confidential informant tested positive for fentanyl. As part of the plea agreement, Brown admitted to all the drug trafficking activity charged in the indictment, including that he distributed heroin and fentanyl in Charleston on three other occasions in 2016 and 2017.
Brown faces up to 20 years in federal prison for the drug charge and up to 10 years in federal prison for the gun charge when he is sentenced on January 11, 2018.
The Metropolitan Drug Enforcement Network Team, the Kanawha County Sheriff’s Department’s STOP Team, the Charleston Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigations. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution. The plea hearings were held before United States District Judge Joseph R. Goodwin.
The drug prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. The gun case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Acting Manhattan U.S. Attorney Announces Settlement of Civil Fraud Claims Against Garment Wholesaler in Scheme to Avoid Paying Customs DutiesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Leon Hayward, Acting Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), and Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that the United States has settled civil fraud claims brought under the False Claims Act against NOTATIONS, INC. (“NOTATIONS”), a garment wholesaler based in Warminster, Pennsylvania, with a showroom in Manhattan. As alleged in the Government’s complaint, NOTATIONS repeatedly ignored warning signs that its business partner, which imported garments from China, was engaged in a scheme to underpay customs duties owed on the imported garments it sold to NOTATIONS. Pursuant to the settlement, NOTATIONS admits and accepts responsibility for failing to act in response to indications of fraudulent conduct, agrees to pay $1 million in damages, and agrees to implement measures designed to prevent future fraud by NOTATIONS or its business partners. The stipulation of settlement was approved yesterday by United States District Judge Lewis A. Kaplan.
Acting U.S. Attorney Joon H. Kim said: “As this settlement makes evident, companies purchasing imported goods cannot turn a blind eye to fraud committed by their business partners. We will be vigilant in holding accountable all parties who engage in or contribute to fraudulent conduct.”
CBP Acting Director Leon Hayward said: “As global supply chains grow more complex, it is important for American businesses to know their suppliers and be confident of their integrity. The outcome of this case is a testament to the dedication of our partners in the United States Attorney’s Office, Homeland Security Investigations, and the men and women of CBP in enforcing our nation’s trade laws and holding accountable those perpetrating this type of fraud.”
HSI Special Agent in Charge Angel M. Melendez said: “Evading the payment of customs duties to increase profit is not a victimless crime; it has a negative effect on the U.S. economy and law-abiding importers. HSI special agents will continue to work diligently with the officers of CBP to locate these offenders and put an end to their fraudulent business practices.”
The Government’s complaint-in-intervention, filed last year, alleges that YINGSHUN GARMENTS, INC. (“YINGHSUN”), an importer of women’s apparel manufactured in China, and IMPORT GLOBAL DESIGNS INC. (“IMPORT GLOBAL”) and OLGREM LLC (“OLGREM”), successor entities to YINGSHUN, and MARIE ROGERS, an owner and/or officer of each entity, engaged in a double-invoice scheme whereby YINGSHUN (and later IMPORT GLOBAL and OLGREM) presented false and fraudulent invoices to CBP, showing prices for imported garments that were discounted by 75 percent or more, for the purpose of avoiding customs duties on the garments. NOTATIONS, which was YINGSHUN’s biggest customer, aided the fraudulent scheme by ignoring warning signs that YINGSHUN’s irregular business practices were highly suggestive of fraud.
As part of the settlement, NOTATIONS agreed to pay $1 million in damages. NOTATIONS also admits and accepts responsibility for its failure to take action in response to multiple warning signs that YINGSHUN, IMPORT GLOBAL, and OLGREM were undervaluing their imported goods and therefore paying less in import duties than they should have been paying. NOTATIONS also has agreed to implement a written compliance policy, which will include measures to educate its employees on identifying red flags for fraud in import transactions, to monitor the conduct of its business partners who act as importers of overseas goods, and to report all potentially fraudulent conduct to CBP.
This matter was initiated by a relator pursuant to the qui tam provisions of the False Claims Act, 31 U.S.C. § 3729 et seq. The Government’s claims against YINGSHUN, IMPORT GLOBAL, OLGREM, and MARIE ROGERS remain pending.
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Mr. Kim thanked CBP and HSI for their efforts and ongoing support and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Cristy Irvin Phillips is in charge of the case.
Monday 2 October 2017
Waterloo Straw Purchaser Sentenced to Two Years in Federal PrisonRead the Press Release
A woman who admitted buying multiple firearms for others, and lying on the acquisition forms, was sentenced today to two years in federal prison.
Myneisha Washington, age 26, from Waterloo, Iowa, received the prison term after a guilty plea to possessing a firearm as a prohibited person. In a plea agreement, Washington admitted that she purchased five handguns in late 2016. On the purchase forms, Washington indicated that she was the actual buyer of each firearm when, in fact, she was a straw purchaser for four of the firearms because she purchased them for others. Washington also lied about her address and her use of drugs. Evidence at today’s sentencing hearing showed that law enforcement has linked two of the guns purchased by Washington to multiple shootings in Waterloo.
Washington was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Washington was sentenced to 24 months’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
“Straw purchasers thwart the law to get guns into the hands of criminals,” said United States Attorney Peter Deegan. “This office is committed to enhancing public safety by bringing straw purchasers to justice."
After the hearing, Washington was taken into custody by the United States Marshals Service to serve her sentence.
The case was prosecuted by Assistant United States Attorney Ravi T. Narayan and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2010.
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Vancouver, Washington, Tax Return Preparer Pleads Guilty to Assisting in Filing False Tax DocumentsRead the Press Release
A Camas, Washington, tax preparer, who now lives in Vancouver, Washington, pleaded guilty today in U.S. District Court in Tacoma to assisting in filing false tax documents, announced U.S. Attorney Annette L. Hayes. PAULA ODIA, 43, prepared more than 50 fraudulent tax returns, resulting in a tax loss to the U.S. that the government estimates is between $250,000 and $550,000. Most of ODIA’s clients were unaware she had falsified their tax returns or that she directed a portion of their tax refund to her bank account or to accounts belonging to members of her family. U.S. District Judge Robert J. Bryan scheduled sentencing for January 5, 2018.
According to records filed in the case, between 2011 and 2016, ODIA prepared federal income taxes for customers from her Camas home. Clients would bring ODIA their records, and she would prepare and file their taxes. In 2011, ODIA began claiming illegitimate deductions and credits in her clients’ tax returns. These false deductions and credits reduced the clients’ tax obligations and increased the tax refund. ODIA then diverted a portion of that refund to bank accounts that she or members of her family controlled. When ODIA provided copies of the tax returns to clients, these copies did not reflect what ODIA actually filed with the IRS so that the clients would not see that some of the refund had been directed to ODIA’s accounts.
Assisting in filing false tax documents is punishable by up to three years in prison, one year of supervised release, and a $100,000 fine. As part of her plea agreement, ODIA has agreed to pay restitution to the U.S. for the tax loss determined by the court.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
U.S. Attorney’s Office and V.I. Attorney General’s Office Establish Task Force to Combat Disaster Fraud and Urge Public to Report Suspected FraudRead the Press Release
St. Thomas, USVI – The U.S. Attorney’s Office announces the formation of a task force comprised of local and federal agencies to combat illegal activity related to Hurricanes Irma and Maria. Acting U.S. Attorney Joycelyn Hewlett urges residents and businesses to immediately report suspected fraudulent activity related to recovery and clean-up operations, fake charities claiming to be providing relief for victims, individuals submitting false claims for disaster relief, and any other disaster fraud-related activity.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. In the wake of Hurricanes Harvey and Irma, the U.S. Department of Justice National Center for Disaster Fraud NCDF has already received more than 400 complaints. Examples of illegal activity being reported to the NCDF and law enforcement include:
• Impersonation of federal law enforcement officials;
• Identity theft;
• Fraudulent submission of claims to insurance companies and the federal government;
• Fraudulent activity related to solicitations for donations and charitable giving;
• Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
• Price gouging;
• Theft, looting, and other violent crime.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, 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]. The U.S. Attorney’s Office is unable to receive incoming calls at its usual telephone numbers at this time. Please use the following temporary number to call the St. Thomas or St. Croix office: (703) 285-0852.
“Unfortunately, criminals exploit disasters such as hurricanes for their own gain,” Hewlett said. “We will aggressively investigate and prosecute anyone who commits disaster fraud, so if you are aware of fraud, please call the National Disaster Fraud Hotline.”
“Whether it is price gouging on life sustaining commodities, fraudulent activity involving government vendors, home contractors, or insurance fraud, the Attorney General’s Office stands ready to work with the U.S. Attorney’s Office and the other task force members to combat disaster fraud in the Territory,” said Virgin Islands Attorney General Claude Earl Walker.
The U.S. Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
Members of the public are reminded to apply a critical eye and do their due diligence before giving contributions to anyone soliciting donations on behalf of disaster victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Learn more about the NCDF at www.justice.gov/disaster-fraud. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Two Former Directors of Rosebud Tribal Ranch Appear in Federal Court on Embezzlement ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that two former directors of the Rosebud Sioux Tribe’s Tribal Ranch appeared in federal court on September 26, 2017, in Pierre, South Dakota, with one defendant pleading guilty at his initial appearance. Patricia Elaine Jones and Stormy Halligan, both former directors of the Rosebud Tribal Ranch, were separately charged with Embezzlement and Theft from an Indian Tribal Organization.
Patricia Elaine Jones, 65, of Rosebud, South Dakota, appeared in federal court on the indictment charging her with one count of embezzlement. The maximum term of imprisonment upon conviction is up to 5 years, a $250,000 fine, or both, a period of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the indictment filed against Jones, between April 1, 2015, and March 31, 2016, Jones willfully and knowingly embezzled, misapplied, and converted to her own use more than $1,000 of monies, funds, credits, goods, assets, and other property belonging to the Rosebud Sioux Tribe Tribal Ranch, an Indian Tribal Organization.
During his initial appearance, Stormy Halligan, 42, of Winner, South Dakota, entered his guilty plea before U.S. Magistrate Judge Mark A. Moreno. Halligan faces a maximum term of imprisonment of 1 year, a $100,000 fine, or both, a period of 1 year of supervised release, and a special assessment of $25 to the Federal Crime Victims Fund. Restitution will also be ordered.
According to Halligan’s plea agreement, between April 1, 2015, and March 31, 2016, he willfully and knowingly embezzled, misapplied, and converted to his own use monies, funds, credits, goods, assets, and other property belonging to the Rosebud Sioux Tribe Tribal Ranch, an Indian Tribal Organization. Halligan pleaded guilty to a federal misdemeanor and has agreed to pay restitution.
The investigation is being conducted by the Federal Bureau of Investigation and the Department of Interior, Office of Inspector General. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Two Delano Residents Plead Guilty in Unemployment Insurance SchemeRead the Press Release
FRESNO, Calif. —Raul Oropeza Lopez, 50, and Ana Maria Oropeza, 43, both of Delano, California, pleaded guilty today to mail fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, Raul Oropeza Lopez obtained social security numbers, names, and other personal identifying information of U.S. citizens and legal residents and then fraudulently used such information to provide undocumented workers with false identities required to work in the United States as farm laborers. Then, when the undocumented workers were laid off at the end of the growing season, Lopez and his wife filed fraudulent unemployment insurance claims in the names of the assumed identities, fraudulently relying on the work performed by the undocumented workers to claim unemployment insurance benefits for the Lopezes’ benefit. Over a period of six years, Lopez and his wife submitted more than 520 fraudulent unemployment insurance claims on behalf of over 70 individuals, collecting at least $1.3 million.
This case was the product of a joint investigation by the U.S. Department of Labor, Office of Inspector General; Homeland Security Investigations; Social Security Administration, Office of Inspector General; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Postal Inspection Service; and the California Employment Development Department, Criminal Investigations Division. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
The defendants are scheduled to be sentenced by Judge Lawrence J. O'Neill on January 29, 2018. Each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tax Preparer Guilty in SYAM Tax Service Scheme and Failing to Appear for TrialRead the Press Release
BEAUMONT, Texas – A 39-year-old Dallas tax preparer has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today. The defendant Shannon Tecoko Mays pleaded guilty to federal tax violations and failure to appear for his trial on that charge in early 2015. Mays entered his guilty plea to two felony indictments today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, an investigation began in August 2012 in response to numerous complaints to state and federal authorities from citizens in Port Arthur, Anahuac, Nacogdoches and Lufkin, Texas regarding income tax returns that were being fraudulently prepared on their behalf. During the investigation, it was discovered that Mays was operating numerous offices across the United States under the name “Syam Tax Services, L.L.C.” and “Baby Momma Tax.” Although the principal office was located in Dallas, Mays also operated or sought to operate satellite offices in numerous other locations, including Fort Worth, Houston, New Orleans, Memphis, Atlanta, Chicago and Los Angeles.
Mays was indicted in February 2014 and alleged to have targeted individuals who were generally exempt from having to file income tax returns because they would be less likely to discover a fraudulent tax return had been filed on their behalf. To further facilitate the scheme, Mays employed “recruiters,” paying them from $50-100 for every client they successfully brought into Syam Tax. In order to avoid detection, Mays altered the taxpayer’s address and phone numbers on the returns so that any phone calls or correspondence from the IRS would not reach the taxpayer. The scheme also used electronic deposits to ensure paper checks would not be mailed to the taxpayer. For the tax year 2011, Mays filed 4,226 tax returns claiming approximately $6,000,000 in refunds. A successful injunction suit brought by the Texas Attorney General’s Office – Consumer Protection Division in 2014 recovered approximately $1,282,000 from Syam Tax Service bank accounts which was returned to the U.S. Treasury. One recruiter form the Port Arthur area, Diana Broussard McCoy, pleaded guilty to the conspiracy charge in January 2015, and was sentenced to five years probation by Chief Judge Ron Clark. Another recruiter, Myra Jones, pleaded guilty in March, 2014, to Impersonating an Internal Revenue Service employee, and was also sentenced to probation by Chief Judge Ron Clark.
When trial was set for January 2015, Mays failed to appear for the final pretrial conference on January 8 and then failed to appear for trial on January 12. Mays was indicted by a federal grand jury for Obstruction of Justice the following month and he remained a fugitive until his capture by U.S. Marshals in Fort Worth in August 2017. At sentencing, Mays faces up to 20 years in federal prison on the wire fraud conspiracy and ten years on the Obstruction charge, of which the sentence for obstruction must run consecutive. A sentencing date before Chief Judge Ron Clark will be set after completion of a presentence report.
This case was investigated by Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation, the Port Arthur Police Department, the Texas Attorney General’s Office – Consumer Protection Division, and the Treasury Inspector General for Tax Administration. This case was prosecuted by Assistant U.S. Attorneys Robert L. Rawls and Chris Tortorice.
Syracuse Man Sentenced for Assault at Syracuse VA Medical CenterRead the Press Release
SYRACUSE, NEW YORK – Paul Lamont Richard, 40, of Syracuse, was sentenced today in federal court in Utica to a time-served (34-month) prison sentence, after previously pleading guilty to violently assaulting an employee at the Syracuse VA Medical Center in November 2014, announced Acting United States Attorney Grant C. Jaquith.
In pleading guilty to the assault charge earlier this year, Richard admitted that on November 17, 2014, he approached an employee in the transportation office at the Syracuse VA Medical Center and demanded a ride to Albany. When the employee informed Richard that there was no scheduled trip to Albany that day, Richard became angry and assaulted the employee. Specifically, Richard grabbed the victim by the neck, braced him against a bookshelf, dragged the victim across a desk, dropped him to the floor, and then kicked the victim in the face. This assault caused the victim to lose consciousness and to suffer a large contusion and several cuts on his face. The defendant was arrested almost immediately, and he has been incarcerated pending the outcome of the assault charge since November 17, 2014.
In federal court in Utica today, United States District Judge David N. Hurd sentenced Richard to a time-served sentence of 34 months’ imprisonment.
This case was investigated by the Department of Veterans Affairs Police, and it was prosecuted by Assistant U.S. Attorney Michael F. Perry.
Rutland Attorney John Canney III Sentenced for Filing False Tax ReturnsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that John R. Canney III, an attorney in Rutland, Vermont, was sentenced today in United States District Court in Burlington after convictions for filing false tax returns. Chief U.S. District Judge Christina Reiss sentenced Canney to seven months in prison, a $15,000 fine, and one year of supervised release. As part of his plea agreement with the government, Canney has agreed to cooperate with the Internal Revenue Service in the assessment of taxes due to the government.
On May 15, 2017, the United States filed a criminal information charging Canney with one count of filing a false individual income tax return for tax year 2011, and one count of filing a false corporate tax return for tax year 2011. Canney pled guilty to those charges on June 1, 2017.
Mr. Canney was the sole owner of John R. Canney III, P.C., a Rutland law firm. The firm had two principal bank accounts: an operating account and a client trust account, also known as an IOLTA account. Mr. Canney used the trust account to maintain client retainer fees and funds held in trust. Upon earning fees through legal services, rather than transferring his professional remuneration from the IOLTA account to the operating account where it would be subject to accounting oversight for tax purposes, Mr. Canney instead transferred this earned income from the client trust account to his personal bank account.
In preparation for filing both the corporation income tax return and his personal income tax return for tax year 2011, Mr. Canney provided his return preparer with documentation of transactions from the firm’s operating account, but not transactions from the client trust account. Because the return preparer used only operating account financial records to determine the firm’s net income, and because those records excluded the IOLTA diversions, the corporate tax return did not include the diverted funds as corporate gross receipts. Therefore, the gross receipts of the corporation for tax year 2011 were substantially higher than the gross receipts listed on the filed corporation income tax return. Likewise, the operating account financial records did not reflect the deposits from the IOLTA account into Mr. Canney’s personal bank account. Therefore, the personal tax returns that the preparer completed for Mr. Canney omitted the income derived from the IOLTA account. Consequently, the adjusted gross income for tax year 2011 was substantially higher than the adjusted gross income listed on the filed individual income tax return.
In addition to the above conduct related to his 2011 filings, Canney also failed to file accurate returns in 2010, 2012, and 2013 as a result of the diversion of income described above.
This case was investigated by the Internal Revenue Service. Canney is represented by Tristram J. Coffin of Downs Rachlin Martin PLLC in Burlington. The prosecutor is Assistant U.S. Attorney Kevin J. Doyle.
Parmelee Man Sentenced for Assault with a Dangerous Weapon and Felon in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Parmelee, South Dakota, man convicted of Assault With a Dangerous Weapon and Felon in Possession of a Firearm was sentenced on September 19, 2017, by U.S. District Judge Roberto A. Lange.
Keena Two Eagle, age 32, was sentenced to two terms of 54 months in prison, to be served concurrently, followed by 3 years of supervised release. He was also ordered to pay restitution in the amount of $2,040.24, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Two Eagle was indicted by a federal grand jury on March 15, 2017. He pled guilty on June 22, 2017.
The convictions stemmed from two separate incidents that occurred in 2016. On August 16, 2016, Two Eagle stabbed a woman multiple times with a kitchen knife at a house in Antelope, South Dakota, causing deep lacerations to her arms and face. Two Eagle fled the scene before police arrived. The woman was subsequently hospitalized and treated for her injuries.
On December 25, 2016, police responded to a report that the defendant was at a house in Parmelee brandishing a gun. Police responded to the scene and recovered from the defendant a 9mm handgun that had the serial number scratched off, along with multiple rounds of ammunition.
Two Eagle was convicted of Assault Resulting in Serious Bodily Injury in U.S. District Court in 2006, making it illegal for him to possess firearms. Two Eagle will forfeit ownership of the firearm seized on December 25, 2016, to the United States.
These cases were investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Two Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Palmer Man Sentenced to 20 Years in Prison for Role in Heroin Related DeathRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that a Palmer man was sentenced today in federal court for multiple drug offenses, including distributing heroin that resulted in the death of a young man who used the heroin.
Hiram Luis Ducasse, Jr., 27, of Palmer, was sentenced by U.S. District Judge Sharon L. Gleason to 20 years in prison, followed by six years of supervised release. Ducasse pleaded guilty on June 20, 2017, to conspiracy to distribute and possess with intent to distribute heroin, and possession of controlled substances with intent to distribute.
According to court documents, Ducasse distributed heroin to Michael Chalender, who subsequently died as a result of a heroin overdose. On Nov. 30, 2015, Ducasse agreed to meet Chalender at a Wasilla gas station, where Ducasse sold him a half gram of heroin for $100. The next morning, on Dec. 1, 2015, Chalender was found deceased in bed at his father’s house. The cause of death was determined to have been a heroin overdose. The investigation further revealed that, on Dec. 2, 2015, on a recorded telephone conversation, Ducasse admitted to having sold Chalender the heroin and denied altering it in any way, saying he “didn’t want anything to come back on me” and that he just gets his heroin from someone else, and gives it to his customers unchanged. Ducasse admitted to selling heroin, including the heroin that resulted in Chalender’s death.
During a search of Ducasse’s residence, law enforcement officers found distributable amounts of heroin, $8000, a firearm, and packaging materials that included small purple glassine baggies imprinted with black spiders, identical to the baggie that Ducasse sold to Chalender.
At the time of this offense, Ducasse was still on felony probation after having previously been convicted of a drug distribution felony in 2014 with the State of Alaska, in which he was caught distributing heroin at the same gas station in Wasilla.
The Drug Enforcement Administration (DEA) and the Alaska State Troopers Mat-Su Drug Enforcement Unit conducted the investigation leading to the successful prosecution in this case.
Owner-Operator of Burbank Clinic that Prescribed Unnecessary Services and Submitted Fraudulent Claims as Part of Scheme to Defraud Medicare Sentenced to 37 Months in Federal PrisonRead the Press Release
LOS ANGELES – The owner-operator of a Burbank medical clinic was sentenced today to 37 months in federal prison on federal healthcare fraud charges for participating in a scheme to defraud Medicare by prescribing unnecessary services and equipment, which often were not even provided.
Knarik Vardumyan, 53, of Burbank, who formerly owned and operated the medical clinic, was sentenced by United States District Judge Dale S. Fischer who also ordered Vardumyan to pay $1,711,789 in restitution to the Centers for Medicare & Medicaid Services.
Vardumyan pleaded guilty in April to two counts of federal healthcare fraud.
According to court documents, Vardumyan admitted that she knowingly and unlawfully participated in a scheme to defraud Medicare by billing Medicare for “medically unnecessary office visits and diagnostic tests,” and by arranging “for the issuance of . . . prescriptions and orders for medically unnecessary durable medical equipment” and “home health services.” Vardumyan further admitted, “many, if not all” of the people who visited her clinic “were brought . . . by co-schemers known as ‘marketers,’ who offered promises of free, medically unnecessary [equipment] or food” to those Medicare beneficiaries who were willing to attend Vardumyan’s clinic.
In documents filed in relation to today’s sentence, the government noted that Medicare paid $1,711,789 as a result of this fraudulent scheme, and that a 37-month term of imprisonment appropriately reflects the nature and circumstances of the offense, as well as the need for the sentence to “promote respect for the law and afford adequate deterrence against this kind of serious fraud against our healthcare system and the public fisc.”
The case against Vardumyan was investigated by the Federal Bureau of Investigation and Assistant United States Attorneys Kristen Williams, Cathy J. Ostiller, and Julian André of the Major Frauds Section and prosecuted by Assistant United States Attorney Adam P. Schleifer.
Owner of International Market in Erie Pleads Guilty to Food Stamp FraudRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of theft of government property, Acting United States Attorney Soo C. Song announced today.
Jasmin Omanovic, 37, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from October 2011 to February 2015, Omanovic, who was the owner and operator of International Market in Erie, committed food stamp fraud by exchanging food stamps for cash at fifty percent of face value. Omanovic also exchanged food stamps for ineligible items. He also allowed customers to pay off store debt with food stamps and he took customers’ EBT cards and used them at Walmart to restock his shelves.
Judge Cercone scheduled sentencing for February 26, 2018 at 3:00 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Omanovic on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Department of Agriculture, Office of Inspector General and the Erie Bureau of Police conducted the investigation that led to the prosecution of Omanovic.
Orange County Man Sentenced to over Eight Years for Taking $2.2 Million from Distressed Homeowners in Bogus Loan Modification SchemeRead the Press Release
SANTA ANA, California – An Orange County man was sentenced to 97 months in federal prison Friday for fraudulently taking $2.2 million from distressed homeowners based on false promises that he could help them avoid foreclosure by obtaining modifications to their mortgages.
Kevin Frank Rasher, 45, who has been in custody since his arrest at his Coto de Caza residence over a year ago, pled guilty to 12 counts of mail fraud in May. Rasher was sentenced by United States District Judge Josephine L. Staton who also ordered him to pay $2.24 million in restitution to his victims.
According to court documents, Rasher admitted that, between 2011 and March 2016, he falsely told distressed homeowners that he was an employee of the U.S. Department of Housing and Urban Development and/or an attorney, and that the homeowners had been approved for a reduced mortgage payment or interest rate. Rasher then instructed the homeowners to mail their mortgage payments to one of his businesses, claiming that he would forward the money to the homeowners’ mortgage lenders. Instead of forwarding the money to the mortgage lenders, Rasher deposited the money into his bank accounts and used it to pay his own personal expenses.
Rasher admitted that he fraudulently obtained approximately $2.24 million from more than 500 victims.
This case was investigated by the U.S. Department of Housing and Urban Development, Office of the Inspector General; the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); the United States Postal Inspection Service; the Federal Housing Finance Agency’s Office of the Inspector General; and the Federal Bureau of Investigation.
The case against Rasher was prosecuted by Assistant United States Attorneys Rosalind Wang and Robert J. Keenan of the Santa Ana Branch Office.
Oklahoma City Man Pleads Guilty to Making a Bomb Threat and Sending Child PornographyRead the Press Release
Oklahoma City, Oklahoma – ROBERT SHANE APGAR, 34, of Oklahoma City, has pled guilty to falsely and maliciously reporting that his estranged ex-wife intended to blow up the Grady County Courthouse, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma. Apgar has also entered a guilty plea to sending child pornography.
According to the first count of a four-count indictment returned by a federal grand jury on July 18, 2017, Apgar used the internet on December 1, 2015, to send false information about an attempt to bomb the Grady County Courthouse. An affidavit filed on May 2, 2017, explains that this threat was made anonymously to the FBI by email and triggered precautions at the Grady County Sheriff’s Office. The email stated that the bombing would be carried out by a person later identified as Apgar’s ex-wife, whom he had threatened before. On December 8, 2015, after further investigation, the FBI executed a search warrant at an Oklahoma City residence where Apgar was living with his mother.
The search yielded pornographic images of prepubescent children from October 2015. According to Count 2 of the indictment, Apgar attempted to persuade, induce, and entice a minor to engage in sexually explicit conduct for the purpose of transmitting video images of that conduct. According to Count 3, Apgar used a facility of interstate commerce to send images of a minor engaging in sexually explicit conduct. And according to Count 4, Apgar possessed images of that sort with intent to view them after they had been sent through a means of interstate commerce.
Today Apgar pled guilty to making a bomb threat, as alleged in Count 1, and sending child pornography, as alleged in Count 3. At sentencing, he could receive up to 10 years in prison and 3 years of supervised release on Count 1. On Count 3, he will receive no less than 5 and no more than 20 years in prison, followed by up to life on supervised release. He will remain in custody until sentencing, which will take place in approximately 90 days. Reference is made to court records for further information.
This case is the result of an investigation by the Federal Bureau of Investigation, with the assistance of the Grady County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Brandon Hale.
Navajo Man from Shiprock Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Lance Wilson, 30, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty today in federal court in Albuquerque, N.M., to an assault charge. Wilson’s plea agreement recommends a prison sentence within the range of 60 to 72 months followed by a term of supervised release to be determined by the court.
Wilson was arrested in Jan. 2017, on a criminal complaint charging him with assaulting a Navajo man by striking him in the head with a pair of wire cutters on the Navajo Indian Reservation in San Juan County, N.M.
Wilson subsequently was indicted on Jan. 24, 2017. The two-count indictment charged Wilson with assault with intent to commit murder and assault resulting in serious bodily injury. The indictment alleged that Wilson committed the crimes on Dec. 24, 2016, on the Navajo Indian Reservation in San Juan County.
During today’s proceedings, Wilson pled guilty to Count 2 of the indictment charging him with assault resulting in serious bodily injury. In entering the guilty plea, Wilson admitted that on Dec. 24, 2016, he struck the victim twice in the head with a cable-cutting tool because he was angry with the victim. Wilson further admitted that as the result of the assault, the victim required multiple surgeries including one to place a plate in his skull. Wilson acknowledged that, as the result of the assault, the victim suffered permanent injuries including memory loss and loss of speech, requires the use of a wheelchair, and resides in a health care facility.
Wilson remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
Mount Vernon Man Arrested for String of Livery Cab RobberiesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a complaint charging ALLANMON MAVUMKAL with a Hobbs Act robbery spree involving at least 10 livery cabs in the Bronx, Mt. Vernon, and Yonkers, during which MAVUMKAL robbed the cab drivers of cash, personal items, and their cabs at knife-point. MAVUMKAL surrendered on October 1, 2017, and will be presented today in Manhattan federal court before the Honorable Gabriel W. Gorenstein.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Allanmon Mavumkal preyed on innocent livery cab drivers who had the misfortune of responding to Mavumkal’s call for a ride. Protecting hardworking New Yorkers from acts of violence is always a priority of this Office.”
ATF Special Agent-in-Charge Ashan M. Benedict said: “Mavumkal is alleged to have engaged in a pattern of armed robberies and carjackings of taxi drivers, extending from the Bronx to Mount Vernon and Yonkers. Over the course of barely a month, he allegedly repeatedly preyed on hard working New Yorkers trying to do nothing more than to earn an honest living. Today’s charges send a clear message that we and our law enforcement partners stand at the ready to bring violent offenders to justice.”
NYPD Commissioner James P. O’Neill said: "This series of violent robberies ended thanks to the hard work of investigators who worked diligently until this individual was identified and taken into custody. The NYPD will continue to work with our law enforcement partners to protect communities and ensure that this individual is held accountable for his actions."
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
On September 21, 2017, MAVUMKAL hailed a livery cab in the Bronx, and directed the driver to a particular destination. After arriving at the drop-off location, MAVUMKAL threatened the driver with a large knife, which was captured on video from the cab, ordered the driver out of the cab, and then drove away in the cab. The investigation is continuing.
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MAVUMKAL, 30, of Mount Vernon, New York, is charged with one count of Hobbs Act robbery, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the ATF and the NYPD.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900, or [email protected]. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Justin V. Rodriguez is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
17-319 ###
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Miami County Man Sentenced for Bank RobberyRead the Press Release
KANSAS CITY, KAN. - A Miami County man was sentenced Monday to six months in federal prison for robbing a bank in Overland Park, U.S. Attorney Tom Beall said. In addition he will serve two years on supervised release to include six months home confinement.
Paul A Sundquist, 30, Louisburg, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on Sept. 19, 2016, he robbed the Stanley Bank, 7835 W.151st in Overland Park, Kan. Sundquist showed a clerk a note demanding money before receiving the cash and fleeing the bank. A bystander got a partial tag number on Sundquist’s pickup truck. Sundquist was monitoring police radio traffic on his cell phone. When he heard police had his tag number he called 911 and surrendered.
Beall commended the FBI, the Overland Park Police Department and Assistant U.S. Attorney Terra Morehead for their work on the case.
Massachusetts Man Sentenced to over Two Years for Fraud and Identity TheftRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Luis Medina, 49, of Lawrence, Massachusetts, was sentenced today in U.S. District Court by Judge George Z. Singal to 27 months in prison and two years of supervised release for submitting a false document to a government agency, social security fraud and aggravated identity theft.
According to court records, in August 2015, Medina, who was working for an asbestos abatement contractor, used a false name and social security number to gain access to the Portsmouth Naval Shipyard in Kittery. Based on the false information, Medina was cleared for access to the shipyard.
The case was investigated by the Naval Criminal Investigative Service; the New Hampshire State Police; and the Social Security Administration, Office of the Inspector General.
Maryland Pimp Sentenced to 20 Years in Prison for Illegal Firearms Possession and Enticing and Coercing Women to Travel to Engage in ProstitutionRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge George L. Russell III sentenced Jason David Young, a/k/a Bird, J Bird, and Chris, age 34, of New Carrollton, Maryland, to 20 years in prison, followed by five years of supervised release for illegal possession of firearms and for enticing and coercing women to travel across state lines to engage in prostitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Gary Gardner of the Howard County Police Department; Chief Henry P. Stawinksi III of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Howard County State’s Attorney Dario Broccolino; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, from September 2013 through October 2015, Young was a pimp and used physical, mental and emotional abuse and threats in order to cause women to engage in commercial sex acts for his financial benefit. Young admitted that he transported the women across state lines to engage in prostitution. In January 2015, Young drove two women to Tennessee to engage in commercial sex acts. Young rented hotel rooms and posted several online advertisements to recruit customers. Both women were arrested for prostitution following an undercover operation executed by the Knox County Sheriff’s Office.
On at least two occasions in 2014, Young was stopped by police and a gun was found in the car. On each occasion, the woman traveling with Young claimed that the gun was hers. One of the women later admitted to police that Young had given her the firearm, and that he routinely possessed firearms. She stated that Young had the women take responsibility for the firearms if discovered by police. One of the guns, a 9mm handgun recovered on December 15, 2014, was stolen.
On February 12, 2015, the Prince George’s County Police Department arrested Young for a parole violation. Young was outside of a local business that was owned by a friend. The owner consented to a search of the business and officers recovered a bag belonging to Young. The owner also told police that he had seen Young with firearms, and when the owner saw police outside the shop, he hid the firearms above the ceiling tiles so Young would not get in trouble. Investigators recovered the two .45 caliber handguns from the ceiling. Both handguns had been stolen.
Investigation showed that all three of the stolen handguns had been taken from a prostitution customer, a gun collector who kept a gun safe on the same floor of his house as the master bedroom. Young had gone to the house once with two of the women he trafficked, and the gun safe was not fully locked and closed. Women who worked for Young twice stole firearms from the customer and provided them to Young. A total of five firearms were stolen from the customer’s home.
Young took photos of the five firearms using his cell phone and sent them to other individuals. The photos of the guns were taken inside the apartment Young provided to the women. He controlled all of the women’s money and movements and threatened to beat them if they did not comply with his instructions. Young’s cell phone contained images of the injuries resulting from a severe beating he inflicted on one of the women. In addition, Young provided the women with narcotics and withheld narcotics from addicted women in order to exert control over them.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
Acting United States Attorney Stephen M. Schenning commended HSI-Baltimore, Howard County, Prince George’s County, and Montgomery County Police Departments, and the Howard County and Prince George’s County State’s Attorney’s Offices for their work in the investigation. Mr. Schenning recognized the U.S. Marshals Service, Knox County (TN) Sheriff’s Office, and Prince William County (VA) Police Department for their assistance, and thanked Assistant U.S. Attorneys Zachary A. Myers and Patricia C. McLane, who prosecuted the case.
Madison Man Sentenced on Possession of Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Madison, South Dakota, man convicted of Possession of Child Pornography was sentenced on September 25, 2017, by U.S. District Judge Karen E. Schreier.
Scott Roger Kraft, age 60, was sentenced to 140 months in custody, followed by 8 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Kraft was indicted for Possession of Child Pornography and Felon in Possession of Firearm and Ammunition by a federal grand jury on July 12, 2016. He pled guilty to Possession of Child Pornography on May 9, 2017.
On March 30, 2016, law enforcement searched Kraft’s home for child pornography. Kraft had been on parole supervision for a 2015 felony conviction for sexual exploitation of a minor in Lake County. Police found compact discs containing photos and videos of child pornography, along with a loaded handgun, in Kraft’s Madison home.
This case was investigated by the South Dakota Division of Criminal Investigation, the Bureau of Alcohol, Tobacco & Firearms, and the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Kraft was immediately turned over to the custody of the U.S. Marshals Service.
Louisville Felon Sentenced to 15 Years in Prison for Being an Armed Career Criminal, Possession of Controlled Substances and Possession of A FirearmRead the Press Release
Federal Prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the recent sentencing of a Louisville felon, as an Armed Career Criminal, in United States District Court, by District Judge Greg N. Stivers, to 180 months in prison, for possession of a firearm by a convicted felon and possession of controlled substance.
Tommy M. Slaughter, 26, was convicted by a federal jury in Louisville, on June 28, 2017, of felon in possession of a firearm, and two lesser counts of possession of controlled substances including heroin and cocaine.
According to information presented during the three-day trail, while patrolling Portland in West Louisville, Louisville Metro Police officers witnessed a hand to hand drug transaction. At the time police recovered drugs, more than $100, and a loaded handgun in defendant Slaughter’s pants pocket.
Slaughter has a lengthy arrest record in Jefferson County and the federal prosecution stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies to maximize penalties for the most violent offenders and to reduce violent crime in our community.
Slaughter’s juvenile convictions begin at age 9 and included violent criminal acts. Adult convictions included possession of loaded concealed firearms, possession of controlled substances, assaults in which he attempted to strangle one victim and stomped on the face of a second victim. Further, Slaughter has prior convictions in Jefferson County Circuit Court for Burglary 2d: that being a single count of Burglary 2d on December 24, 2009 and eight counts of Burglary 2d on May 17, 2010.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Louisville Felon Sentenced to 10 Years in Prison for Possession of A Firearm, Ammunition, and MethamphetamineRead the Press Release
Federal Prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman today announced the sentencing of a Louisville felon, in United States District Court, by Chief Judge Joseph H. McKinley Jr., to 120 months in prison, for possession of a firearm and ammunition by a convicted felon and possession of methamphetamine. There is no parole in the federal system.
Robert J. Vance, 29, was charged in a superseding indictment on May 2, 2017, and pleaded guilty to all three counts on June 23, 2017. The federal prosecution stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies to maximize penalties for the most violent offenders and to reduce violent crime in our community.
According to information presented in court, Louisville Metro Police (LMPD) officers were patrolling “hot spots” in high crime areas of Portland, located in west Louisville. Near midnight on December 17, 2017, the officers pulled into the intersection of 29th and Alford Streets and observed a gold van at one corner of the intersection with the passenger side door open, and defendant Vance was standing at the driver’s side door. When officers initiated their lights, Vance ran and tripped in an alley. A bag containing over 50 grams of pure meth was found several feet from where Vance landed, along with a liquor bag containing a Glock, Model 21, 45 caliber pistol. The officers located a shoulder holster in the Toyota SUV which contained an extra clip of ammunition for a .45 caliber Glock.
Vance was previously convicted of a Class D Felony on February 11, 2013, in Bullitt County Circuit Court, Shepherdsville, KY, in Case Number 12-CR-0073, of Assault Under Extreme Emotional Disturbance.
This case was prosecuted by Assistant United States Attorney Randy Ream and was investigated by the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Meth, Firearm, U.S. Currency found with Robert VanceLocal Man Sentenced to 105 Months in Federal Prison for Bank RobberyRead the Press Release
DALLAS — Tommy Nelson, Jr., 52, was sentenced today by U.S. District Judge David C. Godbey to 105 months in federal prison for the robbery of Shinhan Bank located in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Nelson pleaded guilty in April 2017 to one count of Bank Robbery. He has been in custody since his arrest in January 2017.
According to documents filed in the case, on January 17, 2017, Nelson grabbed a cash box from a team of bank employees while they restocked the drive thru ATM at Shinhan Bank. An armed security guard who was also present attempted to stop Nelson and the two began struggling. During the struggle Nelson attempted to take the security guard’s handgun. While fighting over the handgun the weapon fired one round striking Nelson in the finger. Once the officer was able to get control of his handgun he held Nelson at gunpoint until officers arrived.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Mark Penley was in charge of the prosecution.
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Lawrence Man Sentenced for Drug and Firearm OffensesRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for drug and firearm offenses.
Melvin Difo, 31, was sentenced by U.S. District Court Judge Douglas P. Woodlock to five years in prison and five years of supervised release. In June 2017, Difo pleaded guilty to one count of possession with intent to distribute cocaine, heroin, and oxycodone; one count of conspiracy to distribute and possess with intent to distribute oxycodone; and one count of possession of a firearm by a convicted felon.
In the fall of 2015, after federal investigators learned that Difo was receiving oxycodone for re-sale, they arranged to have sources make numerous controlled purchases of narcotics from Difo. In August 2016, two federal search warrants were executed, one at Difo’s home, where a firearm was seized, and one at Difo’s business, where approximately 40 grams of heroin, 100 grams of cocaine and 50 oxycodone pills were seized.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. The Massachusetts State Police and Lawrence Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Eric Rosen of Weinreb’s Criminal Division prosecuted the case.
Lawrence Man Sentenced for Trafficking Drugs, GunsRead the Press Release
KANSAS CITY, KAN. – A Lawrence man was sentenced Monday to 15 years for trafficking drugs and guns, U.S. Attorney Tom Beall said.
Petsamai Phommaseng, 36, Lawrence, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, he admitted he worked with co-defendant Damon Douglas Griffin and others to distribute methamphetamine in Douglas, Franklin and Anderson counties. Griffin, who was known by the street name Guido, provided methamphetamine to Phommaseng and other street dealers.
Phommaseng obtained methamphetamine from Griffin on credit and paid Griffin back after he sold the drugs. Phommaseng paid for the drugs in cash or gave Griffin firearms in payment.
Griffin was sentenced to 105 months in federal prison.
Beall commended the Kansas Bureau of Investigation, the Franklin County Drug Enforcement Unit and Assistant U.S. Attorney Sheri Catania for their work on the case.
Johnstown Bank Manager Sentenced to Prison for Stealing from Customer AccountsRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 20 months in prison, three years’ supervised release and ordered to pay restitution to First National Bank in the amount of $270,434.70, on her conviction of misapplication of funds by a bank employee, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Anna Wilson, 35, of Johnstown, Pa.
According to information presented to the court, from Nov. 15, 2015, to Aug. 15, 2016, Wilson, while employed as a branch manager at First National Bank in Johnstown, Pa, removed approximately $270,434.70 from customers’ accounts and thereafter converted those funds to her personal use.
Assistant U.S. Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
Ms. Song commended the United States Postal Inspection Service and the Social Security Administration, Office of Inspector General, for the investigation that led to the successful prosecution of Wilson.
Haitian National Sentenced to 4 Years in Prison for Role in Eastern Connecticut Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MACKENZY NOZE, 33, a citizen of Haiti last residing in Norwich, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 48 months of imprisonment for staging car accidents for the purpose of defrauding automobile insurance companies.
On June 15, 2017, a jury found NOZE guilty of one count of conspiracy to commit mail and wire fraud, five counts of wire fraud and three counts of mail fraud.
According to the evidence presented during the trial, between March 2011 and February 2014, NOZE and others conspired to stage numerous car crashes in eastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from approximately $10,000 to $30,000 per accident.
The evidence at trial indicated that NOZE participated in as many as 50 staged crashes, 11 of which were described in detail during the trial.
Judge Meyer ordered NOZE to pay restitution in the amount of $207,083.36.
NOZE was arrested on May 23, 2016, and is detained. He is a lawful permanent resident of the U.S. and faces immigration proceedings after he serves his sentence.
Six other individuals have been charged and convicted as a result of this investigation.
This matter has been investigated by the Federal Bureau of Investigation, the Norwich Police Department and the National Insurance Crime Bureau. The case is being prosecuted by Assistant U.S. Attorneys Avi Perry and Michael J. Gustafson.
Geary County Man Sentenced in Kidnapping, Death of Junction City WomanRead the Press Release
TOPEKA, KAN. – A Geary County man was sentenced Monday to 16 years in federal prison for taking part in the kidnapping of a Junction City woman who was killed during the abduction, Acting U.S. Attorney Tom Beall said.
Drexel A. Woody, 27, who lived on Fort Riley at the time of the crime, pleaded guilty to one count of kidnapping resulting in death. The body of Amanda Clemons, 24, of Junction City, was found in February 2014 in Geary County, Kan.
In Woody’s plea, he admitted that on Feb. 7, 2014, he and some of the co-defendants met the victim, who was a prostitute, at a hotel in Junction City and kidnapped her. The defendants beat the victim in retribution for comments she had made on social media. During the beating, the defendants demanded the victim pay $300. They took the victim to another hotel room in an unsuccessful attempt to get the money, after which they transported her to the Woody residence on Fort Riley.
While at the Woody residence, the defendants allowed the victim to call her young son and her mother. The victim’s mother realized the victim was in danger and called Junction City Police. When police called the victim’s number to check on her, and the defendants listened to the call on speakerphone. Fearing arrest, the defendant along with Anderson and Middleton took victim to a bridge in a remote part of Geary County, where Anderson and Middleton resumed the beating and attacked her with a knife. The victim broke free and jumped off the bridge, falling 15 feet and breaking her ankle. Anderson and Middleton found the victim in the snow and resumed the assault during which they cut her throat and killed her.
Co-defendants include:
Larry L. Anderson of Manhattan, Kan., who was sentenced to 336 months.
Marryssa M. Middleton of Fort Riley, Kan., who was sentenced to 336 months.
Shantrell D. Woody of Fort Riley, Kan., who is set for sentencing Nov. 20.
Christopher Pugh of Junction City, Kan., who is set for sentencing Oct. 10.
Beall commended the Junction City Police Department, the Grandview Plaza Police Department, the Geary County Sheriff’s Office, the Riley County Police Department, the Fort Riley Criminal Investigation Division, the FBI, Assistant U.S. Attorney Tony Mattivi, Assistant U.S. Attorney Jared Maag and Geary County Attorney Steven Opat for their work on the case.
Fort Defiance Family Sentenced to Prison for Health Care FraudRead the Press Release
PHOENIX – Last week, U.S. District Judge Steven Logan sentenced Vestah Tikium to 33 months in federal prison, followed by three years of supervised release. Tikium’s son, Terdell Dawes, was sentenced to 24 months in federal prison, while her other son, Terrell Dawes, was sentenced to 18 months in federal prison. Tikium and her sons also were ordered to pay more than $3 million in restitution. All three had previously pleaded guilty to conspiracy to commit health care fraud. All defendants are members of the Navajo Nation.
Tikium and her sons falsely billed Arizona’s Health Care Cost Containment System (AHCCCS) for tens of thousands of medical transports that never occurred, generating more than $3 million in fraudulent payments from AHCCCS. AHCCCS is Arizona’s Medicaid agency that offers health care programs to low-income Arizona residents. Tikium and her sons owned and operated Diné Transport, which purported to provide non-emergency medical transportation for AHCCCS recipients on the Navajo reservation. Approximately 95% of the claims submitted by Diné Transport between March 2013 and July 2013 were false.
“Health care fraud is a prevalent problem that causes higher health care costs and increased taxes for everyone,” stated Acting U.S. Attorney Elizabeth A. Strange. “Our office will continue to work with our law enforcement partners to target those who perpetuate health care fraud, and we will prosecute them to the full extent of the law.”
“The FBI views health care fraud as a serious crime problem,” said FBI Special Agent in Charge Michael DeLeon. “It degrades the integrity of our health care system and legitimate patient care. The sentences handed down on these individuals sends a clear message to those persons who are defrauding our health insurance programs. The FBI remains committed to investigating health care fraud and bringing these individuals to justice. The FBI will continue to work aggressively with our law enforcement partners to investigate those who violate the public trust by cheating the medical insurance system.”
In the last year, five other individuals have been convicted and sentenced for perpetrating similar frauds to falsely bill AHCCCS for non-emergency medical transports that purportedly occurred on the Navajo Reservation:
- In November 2016, Sylvia Begay was sentenced to 28 months in federal prison and ordered to pay more than $2.1 million in restitution (CR-15-08252);
- Also in November 2016, Virgil Begay was sentenced to 21 months in federal prison and ordered to pay more than $1.3 million in restitution (CR-15-08252);
- In March 2017, Natasha Begaye was sentenced to probation and ordered to pay approximately $380,000 in restitution (CR-15-08250);
- Also in March 2017, Cortasha Upshaw was sentenced to probation and ordered to pay approximately $245,000 in restitution (CR-15-08251); and
- In April 2017, Elseddig Musa was sentenced to 57 months in federal prison and ordered to pay more than $1.2 million in restitution (CR-15-01265).
The investigation in this case was conducted by the Federal Bureau of Investigation and AHCCCS Office of Inspector General. The Navajo Nation Police Department also assisted in the investigation. The prosecution was handled by Bridget Minder and Peter Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-08096
RELEASE NUMBER: 2017-095_Tikium
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Minich Electric Office Manager Admits Defrauding EmployerRead the Press Release
ERIE, Pa. - A resident of Bradford, Pennsylvania, pleaded guilty in federal court to a charge of mail fraud, Acting United States Attorney Soo C. Song announced today.
Tyler Little, 30, pleaded guilty to one count before United States District Judge Davie S. Cercone.
In connection with the guilty plea, the court was advised that Little was an office manager at Minich Electric in Bradford. From November 2012 to September 2015, he wrote numerous checks to himself from the Minich Electric business account, failed to deposit numerous cash payments made by customers and used the funds for his own personal use and used the business credit card without the owner’s knowledge or permission to purchase numerous items for himself resulting in a loss of approximately $77,516.81 to Minich Electric.
Judge Cercone scheduled sentencing for February 26, 2018 at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Little on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Little.
Former Easton Resident Pleads Guilty to Possessing Meth and XanaxRead the Press Release
The United States Attorney for the District of Connecticut announced that CAVAN DEVINE, 25, formerly of Easton, waived his right to be indicted and pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of possession of 50 grams or more of methamphetamine and a quantity of Xanax.
According to court documents and statements made in court, on December 4, 2016, Easton Police seized a bag belonging to DEVINE that contained approximately 744 grams of methamphetamine, 577 and one-half pills labeled “Xanax,” and drug paraphernalia. DEVINE was arrested the next day. A subsequent search of a hotel room rented by DEVINE revealed an additional quantity of methamphetamine, as well as items used to process, package and mail drugs. Investigators also seized a laptop computer.
The investigation established that DEVINE had obtained the methamphetamine and Xanax over the internet, which he was also using to distribute the drugs.
Judge Arterton scheduled sentencing for December 22, 2017, at which time DEVINE faces a maximum term of imprisonment of 40 years.
DEVINE is released on a $200,000 bond and residing at an inpatient drug treatment facility while awaiting sentencing.
This matter is being investigated by the Drug Enforcement Administration, U.S. Postal Inspection Service, Connecticut State Police and Easton Police Department. The case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Former Cross Lanes postal worker pleads guilty to stealing pain pills from the mailRead the Press Release
CHARLESTON, W.Va. – A former postal worker who stole oxycodone and hydrocodone pills from packages pleaded guilty today, announced United States Attorney Carol Casto. Brittany Harrison, 31, of Cross Lanes, entered her guilty plea to theft of mail by a postal employee.
Harrison was a federal postal support employee who worked in the Charleston Main Post Office as a mail processing clerk. Through working at that post office, Harrison learned to identify packages that contained oxycodone and hydrocodone pills. After identifying these packages, Harrison opened them and stole the pain pills inside. On April 8, 2016, she opened a package from the Department of Veterans Affairs Medical Center in Huntington that was to be delivered to a Charleston resident and stole oxycodone pills from the package. Harrison further admitted to stealing pills contained in at least six other packages, including 168 oxycodone pills on April 12, 2016, and another 168 oxycodone pills on April 13, 2016. On April 13, 2016, Harrison gave a statement to federal officers in which she admitted stealing the pain pills. Harrison is no longer an employee with the United States Postal Service.
Harrison faces up to five years in federal prison when she is sentenced on January 4, 2018.
The United States Postal Service, Office of Inspector General, and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Federal Jury Convicts Navajo Man from Gallup on First-Degree Murder and Witness Tampering ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Santa Fe, N.M., returned a verdict on Saturday afternoon (Sept. 30, 2017) finding Brian Tony guilty on first-degree murder and witness tampering charges after a five-day trial, announced Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Director Jesse Delmar of the Navajo Nation Division of Public Safety.
Tony, 46, an enrolled member of the Navajo Nation who resides in Gallup, N.M., was arrested on June 3, 2016, on a criminal complaint charging him with killing a man by stabbing him in the head and neck and hitting him with a hammer. According to the criminal complaint, Tony committed the murder on the Navajo Indian Reservation in McKinley County, N.M., on May 9, 2016. At the time, Tony was on supervised release for a prior conviction on a federal assault charge.
In June 2016, a federal grand jury indicted Tony on a second-degree murder charge. The indictment was superseded on Aug. 8, 2017. The superseding indictment charged Tony with first-degree murder and two counts of witness tampering. The superseding indictment charged Tony with murdering the victim deliberately and with premeditation by beating him with a hammer and rock and stabbing him with a knife on May 9, 2016, in McKinley County. It also charged Tony with engaging in witness tampering between May 2016 and Aug. 2017, in Santa Fe County, N.M.
Trial on the superseding indictment commenced on Sept. 25, 2017, and concluded the afternoon of Sept. 30, 2017 when the jury returned a guilty verdict on all three counts in the superseding indictment. The evidence at trial established that on the evening of May 8, 2016, Tony, who was accompanied by his brother and his girlfriend, drove to a residence in Gallup, and picked up the victim and the victim’s friend. While at the residence, Tony retrieved a hammer and placed it in his vehicle.
The victim’s friend testified that Tony drove the victim and the three others to a location called “Superman Canyon,” where Tony directed the victim to get out of the car and follow him to an area beyond the sight of those in the vehicle. Thereafter, the victim’s friend attempted to get out of the vehicle after hearing the victim yell, but Tony’s brother prevented him from doing so by threatening him with violence. The victim’s friend testified that Tony later returned to the vehicle covered in blood, without the victim, and with the victim’s knife sticking through his forearm.
While Tony and the victim were off on their own and out of the sight of the other three, the victim called “911,” and requested assistance. The jury heard the victim’s nearly ten minute call to “911,” during which the victim said that he was on foot in a ditch and was bleeding as the result of having been hit in the head with a hammer. The victim identified Tony as the person who hit him and described the vehicle in which they had traveled. The call ended with the victim saying, “Hurry, here he comes now! Hurry!” The following day, law enforcement authorities found the victim’s body in a ravine located by Rock Flats Road near Churchrock, N.M. A hammer was located in the ravine near the victim’s body and a large rock with bloodstains was next to the victim’s body. The victim was wearing an empty knife sheath on his belt. An autopsy revealed that the victim had been stabbed repeatedly in the head and neck and had blunt-force trauma wounds on his head.
The evidence at trial established that, following Tony’s arrest in June 2016, he was detained at the Santa Fe County Detention Center from which he placed more than 1,000 calls to friends and relatives. During these calls, which were recorded, Tony implored his friends and relatives to convince the victim’s friend to leave town and to prevent him from testifying. The jury heard a number of these calls and heard Tony as he attempted to intimidate, threaten and persuade his girlfriend from cooperating with law enforcement authorities.
Tony testified in his own defense and claimed that he acted in self-defense when he killed the victim.
The jury deliberated approximately 10 hours before returning the guilty verdict.
Tony has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Tony faces a statutory mandatory sentence of life imprisonment.
This case was investigated by the Albuquerque and Gallup offices of the FBI and the Navajo Nation Division of Public Safety.
Assistant U.S. Attorney’s Joseph M. Spindle and Nicholas J. Marshall are prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Federal Forfeiture of St. Albans Crack House Sought Pursuant to 2007 Plea AgreementRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that it has filed a Complaint seeking civil forfeiture of a residence in St. Albans related to drug trafficking activity that occurred in the house from 2004 through 2006. The underlying drug trafficking case involved the 2006-07 prosecution of Robin Keller, formerly of 25 Lower Gilman Street in St. Albans, Vermont. Keller was arrested in March 2006 and eventually pled guilty to conspiracy to distribute crack cocaine. As part of the plea agreement, reached in March 2007, Keller agreed to forfeiture of the 25 Lower Gilman Street property. The government agreed to postpone the forfeiture until Keller’s two minor children who resided in the home became adults. Both children have now reached the age of majority.
According to court records, Keller used a network of couriers to distribute over ten kilograms of crack cocaine in the St. Albans area from 2004 until March 2006, when she was arrested at the Back Street Bar in St. Albans. Keller purchased cocaine powder largely from a Holyoke, Massachusetts source and then cooked the powder into crack cocaine at the home on Lower Gilman Street in St. Albans, where she lived with her two young children. A March 2006 search of Keller’s home by the Vermont Drug Task Force resulted in the seizure and eventual forfeiture of over $170,000 in cash, much of it hidden in the floor joists of the house.
In July 2007, Judge William K. Sessions III sentenced Keller to 168 months in prison (later reduced to 140 months). Judge Sessions stated at the time that "countless people suffered as a result of the drugs" that Keller distributed and that Keller used "intimidation," including tire slashing to ensure payment for her drug sales. Judge Session also stated it was the "largest crack cocaine case" he had seen in federal court at that time.
This matter was investigated by the Vermont Drug Task Force of the Vermont State Police. The case is being prosecuted by Assistant U.S. Attorney Joseph Perella.
Executive Director of Tribal Investment Firm Sentenced to Federal Prison for FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that Tally Colombe, age 42, of Fort Thompson, South Dakota, was sentenced to federal prison for a term of 27 months and ordered to pay restitution in the amount of $39,997. Colombe appeared before U.S. District Judge Roberto A. Lange on September 19, 2017.
Colombe pleaded guilty to Wire Fraud and Program Fraud in June 2017.
According to plea documents filed with the Court, beginning on or about June 1, 2015, through and including October 1, 2016, in the District of South Dakota and elsewhere, Colombe, having devised a scheme and artifice to defraud by means of false and fraudulent pretenses, representations and promises, caused to be transmitted by means of electronic wire communications in interstate commerce, writings, signs, signals, pictures and sounds for the purpose of executing such scheme and artifice to defraud.
It was part of the scheme and artifice to defraud that Colombe, while serving as the Executive Director of Hunkpati Investments, used the business debit card to make personal purchases from several businesses, all without knowledge and authorization from Hunkpati Investments.
Beginning on or about June 1, 2015, through and including October 1, 2016, Colombe, as an agent of Hunkpati Investments, which was an organization and agency that received in each of the calendar years of 2015 and 2016 benefits in excess of $10,000 under a federal program involving a grant, contract, subsidy, loan, guarantee, insurance, and other form of federal assistance, did knowingly and intentionally embezzle, steal, obtain by fraud, and otherwise without authority knowingly convert to the use of persons other than the rightful owner, and intentionally misapply property worth at least $5,000 which was owned by and was under the care, custody and control of Hunkpati Investments.
Hunkpati Investments (Hunkpati), located in Fort Thompson, South Dakota, is a Native Community Development Financial Institution established to provide financial opportunities to stimulate economic development on the Crow Creek Sioux Reservation. Hunkpati services include a savings incentive program and lending for credit builder and small business loans. Hunkpati is funded by grants from the U.S. Department of Treasury, the U.S. Department of Agriculture, the U.S. Department of Health and Human Services, the Northwest Area Foundation, and several other small foundations. In 2015, Hunkpati received in excess of $30,000 in grants from federal agencies.
Hunkpati is governed by a Board of Directors (Board). Colombe served as an agent, that is, Executive Director, of Hunkpati from May of 2015, to approximately November of 2016, and reported to the Board. Prior to becoming the Executive Director, Colombe also served on the Board as a Board Member. As Executive Director, Colombe was responsible for advising the Board on the financial status of Hunkpati as well as maintaining compliance for Hunkpati’s spending pursuant to the federal grant requirements.
The unlawful purchases, and therefore the wire transfers, were made without authorization from the Board. Colombe did not disclose the purchases to the Board. Colombe and the United States agreed to an amount just under $40,000 as the restitution and loss amount.
The investigation is being conducted by the Federal Bureau of Investigation and the United States Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Eastern Kentucky Hospital System to Pay U.S. Government $150,000 to Settle Allegations that it Violated the Controlled Substances ActRead the Press Release
LEXINGTON, Ky. – Appalachian Regional Healthcare, Inc. (“ARH”) has agreed to pay the United States $150,000, to settle civil allegations that it unlawfully filled fraudulent prescriptions for stimulants and that it failed to make and maintain complete and accurate records of its controlled substances, in violation of the federal Controlled Substances Act.
The settlement resolves a civil lawsuit that was filed by the United States against ARH in May of 2016. In the lawsuit, the United States alleged that Harlan ARH Hospital Pharmacy knowingly filled fraudulent prescriptions for Schedule IV stimulants. Specifically, the United States alleged that ARH knew the prescriptions were fraudulent because ARH was aware that no doctor-patient relationship existed between the Harlan ARH Emergency Room physician, who was writing the prescriptions, and the ARH nurses and staff, who were filling the prescriptions at ARH pharmacies. The lawsuit further alleged that individuals in Harlan ARH’s management were made aware of the improper prescribing in 2010; yet, the Harlan ARH Hospital Pharmacy continued filling those prescriptions until 2014. The United States alleged that, as a result of these improperly filled prescriptions, ARH illegally dispensed thousands of stimulant pills to its employees and their family members.
The lawsuit further alleged that ARH failed to make and maintain complete and accurate records of its controlled substances at two other pharmacies, Hazard ARH Regional Medical Center Clinic Pharmacy and Middlesboro ARH Pharmacy, and that, because of that failure, Government auditors were prevented from being able to determine whether other controlled substances had been diverted for illegal use.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky and the Drug Enforcement Administration, Diversion Control Division jointly announced the settlement. The Diversion Control Division and the U.S. Attorney’s Office conducted the investigation of alleged violations. Assistant U.S. Attorneys Katherine Crytzer and Daniel Hancock represented the federal government in this case.