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9 November 2017
Eagle Butte Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 6, 2017, by U.S. District Judge Roberto A. Lange.
Braxtyn Melecca Jo Garreau, age 22, was sentenced to 57 months in custody, followed by 3 years of supervised release, a fine of $500, forfeiture of $206, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Garreau was indicted by a federal grand jury on April 12, 2017. She pled guilty on August 15, 2017.
Between January, 2014, and April 12, 2017, Garreau knowingly and intentionally conspired with others to distribute methamphetamine in the District of South Dakota.
Garreau received distributable quantities of methamphetamine and distributed some of the methamphetamine in South Dakota. The individuals who provided Garreau with the methamphetamine knew that she intended to engage in further distribution. Garreau admitted that it was reasonably foreseeable to her that more than 500 grams of methamphetamine would be distributed during the course of the conspiracy.
In addition to conspiring with others to distribute methamphetamine, Garreau was arrested on February 23, 2017, with 7.8 grams of methamphetamine, drug paraphernalia, and $206 in U.S. currency in her possession, which she admitted was proceeds from the sale of methamphetamine. That money was seized by law enforcement and forfeited.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Garreau was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for Assault ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Harm was sentenced on November 6, 2017, by U.S. District Judge Roberto A. Lange.
Kevin Yellow Earring, age 27, was sentenced to two terms of 60 months in prison, to be served concurrently, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Yellow Earring was indicted by a federal grand jury on April 12, 2017. He pled guilty on August 15, 2017.
The conviction stems from two separate incidents that occurred in 2017. On January 19, 2017, Yellow Earring assaulted a woman with a pocketknife at a house in Eagle Butte. The woman was taken to the hospital for treatment.
On February 11, 2017, Yellow Earring assaulted another woman, at an apartment in Eagle Butte, by hitting and kicking her with his shoes on. The assault resulted in two fractured ribs. The woman was taken to the hospital for treatment.
These cases were investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the cases.
Yellow Earring was immediately turned over to the custody of the U.S. Marshals Service.
Dubuque Man Sentenced to over Three Years’ Imprisonment for Unlawfully Possessing FirearmRead the Press Release
A man who shot his brother-in-law was sentenced yesterday to over three years in federal prison.
David M. Caldwell, age 27, from Chicago, Illinois, received the prison term after a July 6, 2017, guilty plea to possession of a firearm by a drug user.
In a plea agreement, Caldwell admitted that he traveled with his brother-in-law from Chicago to a party in Dubuque, Iowa, on February 2, 2017. Caldwell brought marijuana and ecstasy pills to the party. Early the next morning, Caldwell’s brother-in-law attempted to stop an intoxicated Caldwell from driving home, causing a fight. Caldwell retrieved a revolver from his car, shot his brother-in-law through the left thigh, and drove away. Police officers stopped Caldwell in Elizabeth, Illinois, where they found the revolver hidden under a fuse panel in his car.
Caldwell was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. At the sentencing hearing, Judge Reade noted the extreme dangerousness of Caldwell’s actions. Caldwell was sentenced to 37 months’ imprisonment and a special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Caldwell is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Dubuque Police Department, the Jo Daviess County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1016-LRR.
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Drug Trafficker who was Extradited from Mexico Pleads Guilty to Distributing more than 50 Kilos of MethamphetamineRead the Press Release
The leader of a dangerous drug distribution ring, who continued to run his drug operation after fleeing to Mexico, pleaded guilty today in U.S. District Court in Tacoma, announced U.S. Attorney Annette L. Hayes. As early as 2010, JESUS ENRIQUE PALOMERA, 38, conspired with others to distribute methamphetamine in the Tacoma area. PALOMERA not only sold drugs, he sold guns as well – arranging the sale of nine guns in one day to an undercover law enforcement agent. PALOMERA faces a mandatory minimum 10 years in prison and up to life in prison when he is sentenced by U.S. District Judge Robert J. Bryan on February 9, 2018.
According to records filed in the case, following the gun sales in November 2011, PALOMERA fled to Mexico after some of his coconspirators were arrested. PALOMERA continued to run his drug operation from across the border, sometimes communicating with customers in Pierce County via Facebook. PALOMERA continued to be involved in drug distribution in 2014 and 2015. In the plea agreement, PALOMERA admits that more than 50 kilos of methamphetamine were transported at his direction from Mexico and up through California and Oregon to Washington. Highlighting the danger of the meth ring, one of the co-conspirators is missing and presumed dead after a load was seized by law enforcement.
PALOMERA was taken into custody in Mexico in June 2015 and was extradited to the United States in July 2016.
PALOMERA’s coconspirator, James E. Roberts, was sentenced to ten years in prison in December 2015. Roberts owned an auto body shop in Lakewood, Washington that was central to the drug trafficking ring.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Lakewood Police Department, the Washington Department of Corrections, the Los Angeles Police Department, the Siskiyou County Drug Task Force, the California Highway Patrol, the Oregon State Police, and the FBI. The case is being prosecuted by Assistant United States Attorneys Michael Dion and Amy Jaquette.
Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Julio Ernesto Gomez, 46, a Dominican national residing in Boston, was sentenced by U.S. District Court Judge George A. O’Toole to eight months in prison, two years of supervised release, and will be subject to deportation. In August 2017, Gomez pleaded guilty to one count of unlawful reentry of a deported alien.
Gomez was deported in 2004 after a federal trial in Boston in which the jury convicted him of making false statements in a passport application and using a fraudulent Social Security number. He later reentered the United States.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit prosecuted the case.
Doctor Sentenced in Multi-Million Dollar Health Care Fraud and Money Laundering Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
A doctor was sentenced to 48 months in prison, to be followed by one year of supervised release, and was ordered to pay restitution of $2,198,520.37 for his participation in a multi-million dollar health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office; Jimmy Patronis, Florida Chief Financial Officer; William D. Snyder, Sheriff, Martin County Sheriff's Office; George L. Dorsett, Assistant Inspector General for Investigations, Amtrak Office of Inspector General; Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB); Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office (PBSO); Sarah J. Mooney, Chief, West Palm Beach Police Department; Jeffrey S. Goldman, Chief, Delray Beach Police Department; Pam Bondi, Florida Attorney General; and Scott Rezendes, Special Agent in Charge, Office of Personnel Management, Office of Inspector General (OPM-OIG); made the announcement.
Joaquin Mendez, 52, of Miramar, previously pled guilty to one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1347; all in violation of Title 18, United States Code, Section 1349.
Co-defendants Kenneth Chatman, Fransesia Davis, and Michael Bonds established sober homes which were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. To obtain residents for the sober homes, members of the conspiracy provided kickbacks and bribes, in the form of free or reduced rent and other benefits, to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, some of the defendants permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing.
The co-defendants referred the sober homes’ residents who had insurance to treatment centers that purportedly offered clinical treatment services for persons suffering from alcohol and drug addiction. Defendant Chatman hired doctors, including defendant Mendez, to serve as medical directors of his treatment centers. As medical director, Mendez was purportedly responsible for evaluating patients and prescribing medically necessary treatment and testing. Instead of Mendez using his medical expertise and his individual assessments of patients to decide what type of laboratory testing was needed by each patient, co-defendant Chatman dictated the type and frequency of different types of lab testing that would be performed based upon the kickbacks and bribes that he was receiving from different clinical laboratories. Mendez facilitated this testing by signing doctor’s orders for urine drug tests and certificates of medical necessity for saliva drug tests, although Mendez had never seen some of the patients. Mendez knew that insurance claims for the medically unnecessary tests that he prescribed would be submitted to the patients’ insurance companies. When he examined treatment center patients, Mendez billed those patients’ insurance plans using procedure codes that reflected more complex and lengthier examinations than Mendez actually performed.
Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Palm Beach County State Attorney's Office Sober Homes Task Force, Florida Division of Investigative and Forensic Services, Martin County Sheriff's Office, Amtrak-OIG, DOL-OIG, DOL-EBSA, National Insurance Crime Bureau, Palm Beach County Sheriff's Office, West Palm Beach Police Department, Delray Beach Police Department, Florida Attorney General Office of Statewide Prosecution, and OPM-OIG. The cases are being prosecuted by Assistant United States Attorney A. Marie Villafaña.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
District Woman Found Guilty of Felony Murder in Beating Death of Three-Year-Old SonRead the Press Release
WASHINGTON – Francis Lyles, 28, of Washington, D.C., was found guilty by a jury today of felony murder and first-degree cruelty to children in the beating death of her three-year-old son in June 2014, U.S. Attorney Jessie K. Liu announced.
Lyles was found guilty following a trial in the Superior Court of the District of Columbia. The felony murder charge carries an enhancement based on the victim’s age and the cruel, heinous nature of the crime. Lyles faces a maximum sentence of life in prison with no possibility of release. The Honorable Zoe Bush scheduled sentencing for Jan. 8, 2018.
According to the government’s evidence, on June 18, 2014, Lyles beat her three-year-old son, Xavier, for upsetting her newborn’s bouncer seat. On June 23, 2014, at about 8:30 p.m., Lyles became upset again with her son, who had been running through their apartment in Southeast Washington. She repeatedly beat him with her hands and/or fists, causing multiple bruises and a lacerated liver. She used so much force that the child’s kidney avulsed from the urethral casing. Xavier lost approximately one third of his blood from internal bleeding. He vomited and was left unattended without food, water or medical treatment for about 15 hours.
At about 11 a.m. on June 24, 2014, Lyles entered the child’s room and tried to wake him. He was not moving or breathing. Lyles first called her cousin and then called 911 for an ambulance. The District of Columbia Department of Fire and Emergency Medical Services came to the residence, and Xavier was pronounced dead in the ambulance. The District of Columbia’s Office of the Chief Medical Examiner determined that Xavier died from multiple blunt force injuries and the cause of death was homicide.
Initially, Lyles led law enforcement to believe that her boyfriend had beaten the child when she left Xavier in his care. The boyfriend lived with Lyles and her children in the apartment. For weeks, law enforcement followed her information and leads. As the investigation continued, however, the prosecution learned that, contrary to her statements, Lyles was responsible for the death of her son. Lyles’s cousin had an app which recorded all of their incoming and outgoing phone calls. Several calls were found in which the defendant admitted to having “whooped “her son on several occasions. According to the medical examiner’s office, the child had more than 70 injuries.
Lyles was arrested on Sept. 16, 2014, and has been in custody ever since.
In announcing the verdict, U.S. Attorney Liu expressed appreciation for the work the Metropolitan Police Department, U.S. Marshal’s Service, and the U.S. Secret Service. She also expressed appreciation for the assistance provided by the District of Columbia Office of the Medical Examiner and the District of Columbia Department of Forensic Sciences.
U.S. Attorney Liu acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Laura R. Bach, Michelle D. Jackson, Lindsey Merikas, Chrisellen Kolb, and John Mannarino; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Victim/Witness Advocates Marcia Rinker, Jennifer Clark, Karen Giannakoulias, and Tracy Owusu; Liaison and Operations Manager Linda McDonald; Supervisory Paralegal Specialist Sharon Newman; Paralegal Specialists Kelly Blakeney, Mia Beamon, Alesha Matthews, Meridith McGarrity, Stephanie Gilbert, and Lornce Applewhite; Criminal Investigators Durand Odom, Tommy Miller, John Marsh, Melissa Matthew, Nelson Rhone, Mark Crawford, Shannon Alexis, Sharon Johnson, and Zachary McMenamin, and Litigation Technology Specialists Anisha Bhatia, Paul Howell, Jeannie Latimore-Brown, Joshua Ellen, and Leif Hickling.
Finally, she expressed appreciation for the work of Assistant U.S. Attorney Cynthia G. Wright, who prosecuted the case.
Department of Justice Compensates Victims of Bernard Madoff Fraud Scheme with Funds Recovered Through Asset ForfeitureRead the Press Release
The Department of Justice today announced that on Nov. 9, the Madoff Victim Fund (MVF) began its initial distribution of $772.5 million in funds forfeited to the U.S. Government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme. These funds will be sent to 24,631 victims across the globe. This distribution represents the first in a series of payments that will eventually return over $4 billion to victims as compensation for losses they suffered from the collapse of the BLMIS. The MVF has received over 65,000 petitions from victims in 136 countries.
These payments mark the single largest distribution of forfeited funds in the history of the Department’s victim compensation program.
Deputy Attorney General Rod J. Rosenstein, Acting U.S. Attorney Joon H. Kim for the Southern District of New York and Assistant Director in Charge William F. Sweeney Jr., of the FBI’s New York Field Division made the announcement.
“Thanks to civil asset forfeiture, the Department of Justice is announcing today the record-setting distribution of restitution to victims of Bernard Madoff’s notorious investment fraud scheme,” said Deputy Attorney General Rosenstein. “We have recovered billions of dollars from third parties – not Mr. Madoff – and are now returning that money to tens of thousands of victims. This is the largest restoration of forfeited property in history.”
“Bernie Madoff committed one of history’s largest and most devastating frauds,” said Acting U.S. Attorney Kim. “This Office not only prosecuted Madoff himself and others who helped perpetrate his fraud, but has remained committed to recovering money for his victims. To date, this Office has recovered more than $9 billion for the innocent victims of Madoff’s fraud, and today’s distribution of $770 million, the single largest distribution of forfeited funds in the Department’s history is part of our ongoing commitment to not only prosecute criminals but also find relief for victims.”
“No amount of money in the world could ever reverse the catastrophic effects Madoff’s historic Ponzi scheme had on individuals and businesses alike,” Assistant Director in Charge Sweeney. “But now, nearly a decade after this crime was exposed, it is our hope that victims will finally be able to see the light at the end of a long, dark tunnel.”
For decades, Bernard L. Madoff used his position as Chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions from his clients. On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family and select members of his inner circle. On June 29, 2009, U.S. District Judge Denny Chin sentenced Madoff to 150 years in prison for running the largest fraudulent scheme in history. Judge Chin ordered Madoff to forfeit $170.799 billion as part of Madoff’s sentence.
Of the approximately $4.05 billion that will be made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor Jeffry Picower. An additional $1.7 billion was collected as part of a Deferred Prosecution Agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family, and from civil and criminal forfeiture actions against Bernard L. Madoff, Peter B. Madoff and their co-conspirators.
The MVF’s payouts would not have been possible without the extraordinary efforts of the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, the U.S. Attorney’s Office for the Southern District of New York, and the FBI in the prosecution of these crimes and the recovery of assets supporting the forfeiture in this case. The MVF is overseen by Richard Breeden, former Chairman of the U.S. Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings.
More information about MVF and its compensation to victims of BLMIS is available on the MVF website at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions. Further questions may be directed to the MVF at 866-624-3670 or [email protected].
Department of Justice Announces Significant Tool in Prosecuting Opioid Traffickers in Emergency Scheduling of All FentanylsRead the Press Release
The Department of Justice today announced that the Drug Enforcement Administration (DEA) intends to take immediate action against the flow of illicit fentanyl analogues into this country and the alarming increase in overdose deaths linked to synthetic opioids by scheduling all fentanyl-related substances on an emergency basis.
When the DEA’s order takes effect, anyone who possesses, imports, distributes, or manufactures any illicit fentanyl analogue will be subject to criminal prosecution in the same manner as for fentanyl and other controlled substances. The action announced today will make it easier for federal prosecutors and agents to prosecute traffickers of all forms of fentanyl-related substances.
“President Trump has made it a cornerstone of his presidency to combat the deadly drug crisis in America, and today the Department of Justice is taking an important step toward halting the rising death toll caused by illicit fentanyls in the United States,” said Attorney General Jeff Sessions. “By scheduling all fentanyls, we empower our law enforcement officers and prosecutors to take swift and necessary action against those spreading these deadly poisons. I also urge the many members of Congress who clearly share our concern and alarm over fentanyl’s role in our opioid overdose epidemic to do their part by permanently scheduling these lethal substances.”
The bulk of illicit fentanyls arrive in the United States through the mail or express shipping systems, or are imported into the United States across the southwest border. Overseas chemical manufacturers, aided by illicit domestic distributors, currently attempt to evade regulatory controls by creating structural variants of fentanyl that are not directly listed under the Controlled Substances Act (CSA). Without the action announced today, prosecutors must overcome cumbersome evidentiary hurdles to secure convictions of these traffickers under the Analogue Act.
The DEA’s action is a proactive approach to minimize the potential harm of these substances with no medical or industrial use and will facilitate criminal, civil, and administrative actions against anyone trafficking in fentanyl variants. The temporary scheduling will go into effect no earlier than 30 days after the DEA publishes its notice of intent and will last up to two years, with a possibility of a one-year extension if certain conditions are met.
“Today’s action represents just one step in the ongoing fight to battle the opioid epidemic,” said DEA Acting Administrator Robert W. Patterson. “DEA is committed to using all of its tools to aggressively fight and address the opioid crisis and growing fentanyl problem plaguing the United States.”
This action is the latest in a series of aggressive and innovative actions by Attorney General Jeff Sessions and the Department of Justice to stem the opioid epidemic through support to law enforcement and public health authorities.
Delaware Man Pleads Guilty to Producing Child PornographyRead the Press Release
A Dover, Delaware man pleaded guilty today to two counts of producing child pornography before U.S. District Court Judge Gregory M. Sleet, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney David C. Weiss of the District of Delaware.
According to admissions made as part of his guilty plea, on Dec. 16, 2015, Daniel Arthur Hill, 29, was arrested by the Delaware State Police Department for solicitation of a minor. Hill met a person online who he believed was a 14-year-old girl and with whom he arranged to engage in sexual intercourse. After his arrest, law enforcement officials executed a search warrant on Hill’s electronic devices and, on Aug. 8, 2016, Hill was indicted in the U.S. District Court for the District of Delaware for enticement of a minor and for possession, production, and distribution of child pornography.
The defendant is scheduled to be sentenced at 2 p.m. on Feb. 15, 2018.
The Delaware State Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case in cooperation with the Delaware Attorney General’s Office. This case is being prosecuted by Trial Attorney Kathryn C. Furtado of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Graham Robinson of the District of Delaware.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dallas Woman Sentenced for Role in Bank Fraud ConspiracyRead the Press Release
TYLER, Texas – A 44-year-old Dallas woman has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Rachelle Dashner pleaded guilty on May 18, 2017, to conspiracy to commit bank fraud and was sentenced to 21 months in federal prison today by U.S. District Judge Thad Heartfield. Dashner was also ordered to pay restitution in the amount of $7,691,106.50.
According to information presented in court, in the summer of 2013, Albert Davis, 56, formerly of Richardson, Texas, and David Tayce, 67, of Lucas, Texas, approached Community Trust Bank regarding financing for iHeart Care cardiovascular surgical centers that Davis planned to develop across North Texas. The plan, as outlined by Davis, was to open multiple iHeart cardiovascular surgical centers and team up with physicians at each location who would invest in the surgical centers and refer patients to the cardiovascular practices. Over the course of the next year, Davis, Tayce, and Dashner prepared loan documents related to various iHeart Care locations in Denton, Ennis, Mesquite, and Mansfield. Davis and Dashner identified numerous physicians as guarantors in the loan documents without the physicians’ knowledge and authorization. The loan documents were submitted to Community Trust Bank, and based upon various false and fraudulent representations, Community Trust Bank funded numerous loans to iHeart. In many instances, the iHeart facilities for which financing was obtained were never built or made operational. In total, Davis, Tayce, and Dashner submitted fraudulent loan documents to Community Trust Bank and secured five fraudulent loans totaling over $7,500,000.
Davis, Tayce, David Hernon, 56, of Fishers, Ind. (formerly of Richardson, Texas), and Richard Bryant, 41, and his wife, Christina Bryant, 41, both of Sachse, Texas, were charged in a related case in the Western District of Missouri for conspiring to commit wire fraud. From 2008 to 2015, Davis and his co-conspirators engaged in a scheme to use Cerner Corporation’s reputation and standing in the medical field to manipulate business transactions and court proceedings in their favor.
On Apr. 24, 2017, Davis, was sentenced by U.S. Chief District Judge Greg Kays in the Western District of Missouri to 12 years in federal prison. The court also ordered Davis to pay $19,151,555 in restitution to the victims of the fraud scheme.
On Apr. 25, 2017, Tayce, Hernon, Richard Bryant, and Christina Bryant were sentenced in separate appearances before Judge Kays. Tayce was sentenced to five years and six months in federal prison and ordered to pay $19,151,555 in restitution. Hernon was sentenced to four years and four months in federal prison and ordered to pay $6,487,224 in restitution. Richard and Christina Bryant were each sentenced to five years of probation and ordered to pay $8,079,197 in restitution.
In a related matter, in 2011, Davis, through his company, LBDS Holding Company, LLC, filed a civil trade secrets lawsuit against Korean-company ISOL Technology, Inc. (LBDS Holding Company, LLC v. ISOL Technology, Inc., et al., Case No. 6:11-CV-428) in the Eastern District of Texas. During the 2014 trial of the case, Davis and Hernon testified falsely about business dealings with Cerner Corporation and offered false exhibits to support LBDS’s claim of damages. At the conclusion of the trial, the jury awarded LBDS a verdict of $25 million. When the perjury was discovered, attorneys for ISOL filed an emergency motion for sanctions against LBDS. The district court vacated the verdict, dismissed LBDS’s case with prejudice, and awarded ISOL $738,706.47 in attorney’s fees.
In 2015, Davis and Hernon were charged in the Eastern District of Texas with making false declarations before court. Hernon pleaded guilty and was sentenced on June 13, 2017, to 15 months. Davis pleaded guilty on June 19, 2017, and awaits sentencing.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld, in cooperation with Assistant U.S. Attorney Matthew P. Wolesky of the Western District of Missouri and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas.
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Cuban man sentenced for role in fraudulent bank card conspiracyRead the Press Release
DALLAS — Roberto Carlos Puebla Saavedra, 32, originally from Cuba, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 60 months in federal prison and ordered to pay $408,596.46 in restitution for his role in a conspiracy involving fraudulent purchases in North Texas using counterfeit bank cards, announced U.S. Attorney John Parker of the Northern District of Texas.
Saavedra pleaded guilty in June 2017 to one count of conspiracy to produce, use, or traffic a counterfeit access device. He has been in custody since the time of his arrest in July 2016.
According to documents filed in the case, from at least August 2014 through July 2016, Saavedra, along with his co-defendants, obtained lists of credit and debit card numbers belonging to other individuals online. They used the card information to create counterfeit bank cards using devices to encode the cards with the fraudulently obtained account information. The defendants went to various retail stores and purchased prepaid gift cards and shopping cards with the counterfeit cards. The defendants then took those purchased prepaid gift cards and shopping cards to other stores and purchased items, including other gift cards, to further launder the illegally obtained money.
The scheme was discovered after an investigator from JPMorgan Chase observed a large volume of fraudulent transactions being made with unauthorized JPMorgan Chase debit card numbers at Walmart stores in the Dallas-Fort Worth metroplex area. JPMorgan Chase’s investigator worked with Walmart investigators to collect surveillance footage and conduct surveillance of the defendants engaging in the fraudulent transactions.
The case was investigated by the U.S. Secret Service and the Plano Police Department. Assistant U.S. Attorneys Jamie L. Hoxie and Shane Read prosecuted.
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Counsel to U.S. Attorney Receives Hollenbeck AwardRead the Press Release
NEWARK, N.J. – John M. Fietkiewicz, Counsel to the U.S. Attorney for the District of New Jersey, was honored today with the Charles J. Hollenbeck Award at the N.J. Commission on Professionalism in the Law awards luncheon in Somerset.
“John has served our office with distinction and professionalism for more than three decades,” Acting U.S. Attorney William E. Fitzpatrick said. “His role in overseeing the preparation of cases for trial has been invaluable in ensuring that when our Assistant U.S. Attorneys walk into court, they are completely prepared. He embodies the highest principles of what public service is all about.”
Fietkiewicz has held a variety of positions in the U.S. Attorney’s Office since starting in October 1985. Prior to becoming a member of the U.S. Attorney’s Front Office as Counsel to the U.S. Attorney in March 2013, he was the Chief Litigation Counsel for three years, a Senior Litigation Counsel in the Special Prosecutions Division for seven years, the Deputy Chief of the Fraud Division for 11 years, and an AUSA in the Fraud Division, Criminal Division, and Appeals Division for six years. Since 2005, he has been the Office’s Professional Responsibility Officer. He created the office’s Trial Supervision Program in 2010 and has run it ever since
Fietkiewicz received his J.D., cum laude, from the Fordham University School of Law, where he was Editor-in-Chief of the Fordham Law Review. He received his B.A., magna cum laude, from Montclair State College. Prior to coming to the U.S. Attorney’s Office, he clerked for the Honorable Gerard L. Goettel, United States District Judge, Southern District of New York, and he was associated with the New York law firm of Cahill Gordon & Reindel.
The Hollenbeck award is given annually to someone who is “licensed to practice law in the state of New Jersey; employed by a governmental agency at the federal, state, county or municipal level, or by a nonprofit organization that serves the needs of the legal community; and has served with diligence, competence and dedication to the profession.” The award is named for Charles Hollenbeck who dedicated a majority of his nearly four-decade career as an attorney to improving the quality of legal services throughout the state.
Corpus Christi Man Gets Nearly 15 Years in Synthetic Drugs CaseRead the Press Release
VICTORIA, Texas – A 37-year-old resident of Corpus Christi has received a 174-month sentence for possession with intent to distribute synthetic cannabinoids and illegally possessing a semi-automatic rifle, announced Acting U.S. Attorney Abe Martinez.
James Richard Santos Jr. pleaded guilty Sept. 21, 2106.
At a hearing in Victoria federal court yesterday afternoon, U.S. District Judge Joh D. Rainey ordered Santos to prison for 174 months for the drug charge and another 120 months for being a felon in possession of a firearm. The sentences will run concurrently. Following the more than 14-year sentence, he will be on supervised release for three years.
Santos was found to be the organizer of a synthetic cannabinoid organization. The investigation revealed Santos utilized storage facilities in Corpus Christi and Houston to store the synthetic cannabinoids and would transport and distribute them in South Texas.
Santos also has multiple prior convictions. As such, he is prohibited from possessing a firearm or ammunition per federal law. However, in the course of the investigation, authorities found a Sabra Defence Model XR15 semi-automatic rifle in his possession.
While in custody, Santos continued to provide direction to others, even giving instructions to conceal the charged firearm. Further, he used violence and intimidation to control other co-conspirators.
Two others were also charged in relation to the synthetic drug enterprise. They both previously entered pleas of guilty and have been sentenced for their roles in this offense.
Santos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau Alcohol Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Patti Hubert Booth prosecuted the case.
Convicted Sex Offender Pleads Guilty to Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas - A 31-year-old Corpus Christi man has admitted he possessed child pornography, announced Acting U.S. Attorney Abe Martinez.
Adam Thomas Simington appeared before U.S. Magistrate Judge Jason B. Libby today and entered a guilty plea to one count of possession of child pornography.
The court heard that Simington was previously convicted in the state of Oklahoma for possessing child pornography and was required to register as a sex offender. Law enforcement learned he was in possession of child pornography and seized several digital devices from Simington’s residence which resulted in the discovery of more than 900 images of child pornography.
Sentencing has been set for Feb. 28, 2018, before U.S. District Judge Nelva Gonzales Ramos. At that time, Simington faces a minimum of 10 and up to 20 years in federal prison. He was permitted to remain on bond pending his sentencing hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Convicted Felon Pleads Guilty to Possessing Firearm Discharged by Juvenile After Being Left UnattendedRead the Press Release
Anthony Patrick Sanders, 27, of Nashville, Tenn., pleaded guilty yesterday in U.S. District Court to being a convicted felon in possession of firearms, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
Sanders was charged in a criminal complaint on June 14, 2017, after the accidental shooting death of 7-year old Harmony Warfield on June 6, 2017. He was indicted by a federal grand jury on July 12, 2017.
“This is another tragic example of the unintended consequences that result when persons prohibited from carrying firearms choose to ignore the law,” said U.S. Attorney Cochran. “Due to the reckless actions of a convicted felon, an innocent child lost her life. This office and our law enforcement partners will continue to relentlessly pursue those individuals responsible for inflicting violence in our public housing communities and bring the appropriate federal charges and seek harsh prison sentences. There is no parole in the federal system.”
According to court documents, in June 2016 Sanders was released from prison after being convicted of kidnapping in 2008. In or around February 2017 Sanders began frequenting the J.C. Napier Housing Development in Nashville and regularly began selling heroin in the area. Sanders was known to regularly carry a firearm when he was selling heroin in the area and he frequently stayed at 767 Lewis St.
Sanders stayed at the Lewis St. apartment on the night of June 5, 2017. He awoke the following morning and went outside, leaving a loaded pistol within easy access of anyone inside the apartment. Shortly thereafter, a juvenile in the apartment picked up the firearm and discharged the weapon, striking Harmony Warfield in the head and killing her. Sanders then re-entered the apartment and found Harmony laying on the kitchen floor with a gunshot wound to the head. He then retrieved the firearm and fled the area. Court records indicate that three other children, ages 2, 11 and 14, were in the apartment when the incident occurred.
Sanders eventually fled to a community near Columbus, Ohio where he hid the firearm, which was later recovered by ATF agents. It was also determined that Sanders had taken this firearm from an individual in May 2017, after a fight in the Cayce Homes public housing development in Nashville.
The plea agreement calls for the Sanders to receive a 10 year prison sentence, if accepted by U.S. District Judge Aleta Trauger on March 2, 2018.
This case was investigated by the ATF and the Metropolitan Nashville Police Department-Youth Services Division. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
Connecticut Man Pleads Guilty to Participating in Conspiracy to Distribute Heroin and FentanylRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced today that Anthony Swift, 32, formerly of Hartford, Connecticut , pleaded guilty to participating in a conspiracy to distribute heroin and fentanyl.
Court documents and statements in court showed that on May 23, 2016, the New Hampshire State Police conducted a traffic stop of a vehicle traveling on Interstate 95. Swift was a passenger in the vehicle. A search of the vehicle resulted in the seizure of 14.46 grams of fentanyl and 120.4 grams of heroin from a duffel bag in the trunk of the vehicle. Swift acknowledged that the drugs had been purchased in Hartford, Connecticut for distribution in Presque Isle, Maine area.
The driver of the vehicle, Emily Bragdon, 20, of Presque Isle, Maine, is scheduled for trial on January 23, 2018.
Swift’s sentencing is scheduled for February 20, 2018.
“I commend the State Police for their work in preventing this substantial amount of drugs from being distributed,” said Acting U.S. Attorney Farley. “The U.S. Attorney’s Office continues to work closely with all of our law enforcement partners to stop the sales of heroin and fentanyl in New England.”
This investigation was conducted by the New Hampshire State Police. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Coeburn Doctor Pleads Guilty to Health Care Fraud, Distributing RitalinRead the Press Release
Abingdon, VIRGINIA – A Coeburn, Virginia doctor, who prescribed Ritalin and hydrocodone to an undercover investigator without a legitimate medical purpose, pleaded guilty today to federal health care fraud and drug distribution charges, Acting United States Attorney Rick A. Mountcastle and Virginia Attorney General Mark Herring announced.
Gurcharan Singh Kanwal, 78, of Wise, Va., pleaded guilty this afternoon to one count of health care fraud and one count of distributing Ritalin and hydrocodone. As part of his plea agreement, Kanwal has also agreed to surrender his medical license and never reapply for a medical license. In addition, he has agreed to pay $472,500 in restitution to the Virginia Medicaid program.
According to evidence presented at today’s guilty plea hearing by Special Assistant United States Attorney and Assistant Attorney General M. Suzanne Kerney-Quillen, between September 19, 2016 and February 22, 2017, the defendant knowingly distributed Ritalin and hydrocodone, without a legitimate medical purpose and beyond the bounds of medical practice to an undercover investigator. Kanwal also fraudulently billed Virginia Medicaid for services provided to the investigator, which were not medically necessary or not actually received.
An investigation into Kanwal and the Coeburn Medical Clinic began after agents received complaints that controlled substances were being diverted by employees and patients of Dr. Kanwal. Agents also learned that Kanwal was believed to prescribe controlled substances without a legitimate medical purpose and outside the course of his professional practice. During the summer of 2015, the Southwest Virginia Drug Task Force began an official investigation into Kanwal. During the course of the investigation, an undercover investigator visited Kanwal’s office as a patient and obtained prescriptions from Kanwal for Ritalin and hydrocodone, without a legitimate medical purpose and beyond the bounds of medical practice.
The investigation of the case was conducted by the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit and the Southwest Virginia Drug Task Force. Agencies that provided assistance during the execution of a search warrant in this case included the City of Norton Police Department, Big Stone Gap Police Department, Coeburn Police Department, Dickenson County Sheriff’s Office, Lee County Sheriff’s Office, Scott County Sheriff’s Office, Tazewell County Drug Task Force, Virginia Department of Alcoholic Beverage Control, Virginia State Police, Wise County Commonwealth’s Attorney’s Office, Wise County Sheriff’s Office, Wise Police Department, and the Drug Enforcement Administration. Special Assistant United States Attorney and Assistant Attorney General M. Suzanne Kerney-Quillen is prosecuting the case for the United States.
Cleveland man indicted for child pornography offensesRead the Press Release
A Cleveland man was charged with child pornography crimes, said U.S Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthiony.
Anthony Gore, 24, was indicted on one count of receipt of visual depictions of real minors engaged in sexually explicit conduct.
Gore received numbers computer files with contained visual depictions of real minors engaged in sexually explicit conduct. This took place between February and April 2017, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S Attorney Carol M. Skutnik following an investigation by Task Force Officer Joanna Nagy Unger, with the FBI Violent Crime/Child Exploitation Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cincinnati Man Sentenced for Promoting Child PornographyRead the Press Release
CINCINNATI –James Denney, 30, of Cincinnati, was sentenced in U.S. District Court to 36 months in prison for aiding and abetting another individual in accessing child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), announced the sentence handed down today by U.S. District Judge Susan J. Dlott.
Denney was charged by indictment in January for knowingly promoting a URL on the Dark Web containing child pornography.
According to investigators, Denney provided an undercover agent with web links to an online board featuring dozens of links to child pornography chat rooms, video/image board sites, as well as “community” support groups and online security advice for child pornographers.
Denney pleaded guilty in May. According to the Statement of Facts filed in support of his plea agreement, Denney used the Kik Messenger app to provide the undercover officer guidance on how to download and use a TOR web browser for the purpose of concealing online activities from law enforcement and others.
While communicating with the officer, Denney personally recommended sections of the online board including “Hurt Core” and “Toddler Videos.” Such images were of – among other things – toddlers and pre-teens being bound and raped by adults who represented themselves as parents of those children.
Denney was also sentenced today to eight years of supervised release, and he must also register as a sex offender and comply with state and federal laws regarding sex offenders.
U.S. Attorney Glassman commended the investigation of this case by HSI, and Assistant United States Attorney Karl P. Kadon, who is prosecuting the case.
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Church Point woman pleads guilty to drug, firearm chargesRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Church Point woman pleaded guilty Wednesday to methamphetamine and cocaine distribution in Acadia and Lafayette parishes and firearm possession.
Courtney Lynn Daigle, 41, of Church Point, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of conspiracy to distribute and possess with intent to distribute at least 500 grams of methamphetamine and 5 kilograms of cocaine, and one count of possession of a firearm and ammunition by a prohibited person. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, law enforcement agents identified Daigle as a supplier of methamphetamine while investigating drug distribution in Acadia and Lafayette parishes. Law enforcement executed a federal search warrant on February 3, 2017 at her residence in Church Point and a state search warrant at a related residence in Rayne, La. As a result, law enforcement recovered, a Smith and Wesson SD9VE 9 mm handgun, 60 rounds of 9 mm ammunition, and approximately 679.1 grams of methamphetamine, 873.1 grams of cocaine, 12.9 grams of cocaine base, 589. 4 grams of marijuana, 82 dosage units of LSD, 116 dosage units of alprazolam, 1.5 dosage units of hydrocodone, one 10 milliliter vial of testosterone cypionate, and one 10 milliliter vial of testosterone enanthate. Officers also recovered $5,000, digital scales, vacuum bags/sealer and narcotics packaging.
Daigle faces 10 years to life in prison, at least five years of supervised release, and a $10 million fine for the controlled substances count. She also faces up to 10 years in prison, three years of supervised release and a $250,000 fine for the firearms count. The court set sentencing for February 16, 2018.
The DEA, ATF, Louisiana State Police, Lafayette Metro Narcotics Task Force, Acadia Parish Sheriff’s Office and Eunice Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Burleson man sentenced on child pornography chargesRead the Press Release
DALLAS — Daryl Glenn Pawlak, 39, of Burleson, Texas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 210 months in federal prison, followed by a 15-year term of supervised release, for child pornography offenses. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
A federal jury convicted Pawlak of one count of receipt of child pornography and one count of access with intent to view material containing child pornography involving a prepubescent minor. Following the verdict, Judge Fitzwater remanded Pawlak into custody.
“Contrary to their innocent-sounding names, websites like Playpen facilitate the sexual victimization of children with ruthless efficiency,” said U.S. Attorney Parker. “Posts on these websites are frequently categorized within forums and sub-forums according to the child’s age, gender, and type of sexual abuse inflicted upon them. Targeting these websites and those who run and use them is a critical part of protecting and rescuing these children.”
This case arose from an FBI undercover operation involving an illegal member-only hidden-services website called Playpen. Playpen was dedicated to the advertisement and distribution of child pornography.
Pawlak was one of the individuals caught as a result of the FBI’s operation when he logged onto the website in March 2015 and clicked on a post, which caused a network investigative technique to be launched from the site onto his computer. Pawlak registered with the Playpen site in September 2014 and had spent approximately 14.6 hours logged into the website prior to the FBI’s two-week operation.
The FBI spoke with Pawlak as a part of its investigation. Pawlak confessed that he had been using his work computers to look at child pornography. He told the FBI that he began looking at child pornography sometime in 2012, he used the Tor network to find child pornography, and estimated that he had spent, on average, approximately half an hour a week seeking out child pornography. Pawlak told the FBI that he preferred child pornography that depicted girls between the ages of 7-11 years old.
As a result of the FBI’s operation, at least 350 U.S.-based individuals have been prosecuted nationwide. At least 55 American children who were subjected to sexual abuse have been successfully identified or rescued, including at least four in the North Texas area. In addition, internationally, at least 296 sexually abused children internationally have been successfully identified or rescued as a result of the operation. This case was prosecuted as a part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The FBI investigated this case. Assistant U.S. Attorneys Jamie L. Hoxie and Paul Yanowitch prosecuted.
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Bucks County Man Sentenced to 18 Months in Federal Prison for Filing False Tax Returns and Structuring Cash Deposits of Marijuana Sales ProceedsRead the Press Release
Bradley Mark Cohen, 61, of Ottsville, PA, with sentenced today to 18 months in prison, following his July 12, 2017 plea of guilty to four counts of filing false tax returns and three counts of structuring cash deposits to avoid a reporting requirement, announced Acting United States Attorney Louis D. Lappen. Cohen was also ordered to pay restitution of over $84,000 in back taxes to the IRS.
In connection with his guilty plea, Cohen admitted that between 2010 and 2014, he failed to report over $950,000 on his tax returns that he earned from his companies, Green Revolution, Inc. and Plug-In Manufacturing, which were involved in the business of selling “green” energy products, such as capacitors, to commercial and residential customers. Cohen admitted that instead of declaring this money as income, he used it to pay the majority of his personal living expenses, including his home mortgage, personal credit cards, golf club membership, and home improvements, and falsely treated these payments as business expenses that he falsely deducted from his income.
Cohen also admitted that between January 1, 2014, and September 18, 2015, he received cash from the illegal sale of marijuana that he had shipped to him from California, and that structured the deposit of over $143,000 of marijuana proceeds into his bank accounts in amounts less than $10,000 each deposit, in order to evade the banks’ currency transaction reporting requirements, of which Cohen was aware.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Beresford Man Sentenced on Possession of Child Pornography ChargeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Beresford, South Dakota, man convicted of Possession of Child Pornography was sentenced on Wednesday, November 8, 2017, by U.S. District Judge Karen E. Schrier.
Michael Jerry Harrison, age 28, was sentenced to 63 months in custody. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Harrison was indicted for distribution and receipt of child pornography by a federal grand jury on May 10, 2016. He pled guilty on March 31, 2017.
Between May 7 and July 15, 2015, Harrison used his cell phone to possess images and videos of child pornography. Using the app “KIK Messenger” Harrison downloaded files of child pornography into his Dropbox account on the internet. Some of the images included prepubescent minors. Authorities discovered Harrison’s involvement after they apprehended another individual in Arizona that Harrison had shared files with on KIK Messenger.
This case was investigated by the Department of Homeland Security and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Michael Jerry Harrison was immediately turned over to the custody of the U.S. Marshals Service.
Baltimore Man Pleads Guilty to Robbery with Member of the Baltimore Police Gun Trace Task ForceRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – David Kendall Rahim, age 41, of Baltimore, Maryland, pleaded guilty today to one count of robbery and one count of brandishing a firearm in furtherance of a crime of violence stemming from a 2014 robbery of a Baltimore city couple.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
Rahim’s cousin, Detective Jemell Lamar Rayam, a member of the Gun Trace Task Force (GTTF,) a division of the Baltimore Police Department, and Thomas Robert Finnegan, age 38, of Easton, Pennsylvania, were also charged in the robbery.
According to his plea agreement, on June 27, 2014, police officers with the Gun Trace Task Force, including Detective Rayam, executed a search and seizure warrant at a store that sold birdseed. No illegal contraband or firearms were found at the location. The storeowners, a married couple, had $20,000 in cash at the store that they intended to use to pay off tax liabilities they owed on two homes.
After the search, Rayam told Rahim and Finnegan about the money and agreed to rob the couple at their residence later that evening. Using a law enforcement database, the GTTF detective located the home address of the victims. The defendants surveilled the house then Rahim and Finnegan were given tactical gear by Detective Rayam to impersonate the police when conducting the home invasion. Rayam remained outside in the vehicle so that he could intercept any police officers who responded to the home invasion by telling them that he was a BPD officer. Finnegan and Rahim entered the residence and robbed the victims at gunpoint of the $20,000. During the robbery, Finnegan pointed a gun at one of the victims and said to “sit still and be patient,” while Rahim looked on. Rahim, Finnegan, and Rayam split the proceeds.
Rayam has also pleaded guilty. Sentencing dates for both defendants have not yet been set.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Baldwin County Man Receives 46 Month Sentence for Possession of a Firearm After Felony ConvictionRead the Press Release
The United States Attorney, Richard W. Moore, announces that Clifford Guerrero, a 39 year old, resident of Daphne, Alabama was sentenced today to 46 months incarceration followed by three years of supervised release.
On March 22, 2017, Fairhope, Alabama police officers conducted a traffic stop of Guerrero based on reckless driving. Just before Guerrero pulled over pursuant to the blue lights flashing, he threw a small quantity of methamphetamine out of the window of his vehicle. Upon stopping, Guerrero immediately exited his vehicle extremely agitated, yelling unintelligibly and waving his arms. He would not obey officer commands to “stop,” “relax,” “be still,” “close the door,” “calm down,” etc. Guerrero appeared to be attempting to reach into the vehicle even with the officer commanding him to “be still.” Due to his behavior, the officer drew his weapon and called for back-up. Within minutes, back-up arrived. Guerrero was placed in handcuffs for officer safety and was asked if any guns were in the vehicle. Guerrero responded, “I think there might be a gun in the car.” Officers then went to the vehicle, searched for and seized a Glock GMBH, 9mm pistol. A firearm holster was also seized from the floorboard of the front seat.
The Federal Bureau of Investigation along with the Fairhope, Alabama Police Department investigated the case and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case was Assistant United States Attorney, Gina S. Vann.
Arizona Man to Serve 11 Years in Prison, 30 Years Supervision for Possessing, Transporting Child Pornography Across State LinesRead the Press Release
Rock Island, Ill. – Joaquin Louis Cook, 36, of Mesa, Ariz., has been sentenced to 136 months (11 years, 4 months) in federal prison for transporting and possessing child pornography. Cook appeared yesterday before U.S. District Judge Sara Darrow in Rock Island. Upon release from prison, Judge Darrow ordered that Cook remain on supervised release for a 30-year term.
On June 14, 2017, Cook entered pleas of guilty for transporting printed child pornography images across state lines in September 2016, and for possessing additional images on Nov. 24, 2016. According to court documents, Cook traveled from Arizona to Illinois, and was living in Aledo, Ill., when he was arrested and charged on Feb. 2, 2017.
The case was prosecuted by Assistant U.S. Attorney Meredith DeCarlo. The charges were investigated by the U.S. Secret Service, the Moline Police Department, the Aledo Police Department, and the Mercer County Sheriff’s Office.
Arizona Man Charged with Coercing a Minor to have Sex, Travelling for Sex with a Minor and Receipt and Possession of Child PornographyRead the Press Release
PITTSBURGH - A former Arizona resident has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of coercion and enticement of a minor to engage in illegal sexual activity, travel with intent to engage in illicit sexual conduct, and receipt and possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
The five-count indictment, returned on November 8, named Alastair Lee Stewart, age 25, of Van Buren, Arkansas, as the sole defendant.
According to the indictment, from on or about November 15, 2016 to March 26, 2017, Stewart used facilities and means of interstate and foreign commerce, specifically the internet and a cellular phone, to knowingly persuade, induce, entice, and coerce minor, Minor A, to engage in sexual activity. Also, from March 15, 2017 to March 26, 2017, Stewart knowingly travelled in interstate commerce for the purpose of engaging in illicit sexual conduct with another person, Minor A. Further, on March 5, 2017 and March 22, 2017, Stewart knowingly received images containing material depicting the sexual exploitation of a minor. The indictment further alleges that on March 24, 2017, Stewart possessed images in computer graphic files, the production of which involved the use of a minor engaging in sexually explicit conduct.
The law provides for a maximum sentence of life imprisonment, a maximum term of supervised release of life, and a fine of $1,250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Alabama Resident Convicted in Stolen Identity Refund Fraud Schemes That Sought $26 MillionRead the Press Release
A Phenix City, Alabama resident was convicted today by a federal jury sitting in Montgomery, Alabama in two stolen identity refund fraud schemes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Louis V. Franklin, Sr. for the Middle District of Alabama.
William Anthony Gosha III, a/k/a Boo Boo, was convicted of one count of conspiracy, 22 counts of mail fraud, three counts of wire fraud, and 25 counts of aggravated identity theft.
According to the evidence presented at trial, between November 2010 and December 2013, Gosha ran a large-scale identity theft ring with his co-conspirators, Tracy Mitchell, Keshia Lanier, and Tamika Floyd, who were all previously convicted and sentenced to prison. Together they filed over 8,800 tax returns with the Internal Revenue Service (IRS) that sought more than $22 million in fraudulent refunds of which the IRS paid out approximately $9 million.
In November 2010, Gosha stole IDs of inmates from the Alabama Department of Corrections and provided the IDs to Lanier who used the information to seek fraudulent tax refunds. Gosha and Lanier agreed to split the proceeds. Gosha also stole employee records from a company previously located in Columbus, Georgia. In 2012, Lanier needed an additional source of stolen IDs and approached Floyd, who worked at two Alabama state agencies in Opelika, Alabama: the Department of Public Health and the Department of Human Resources. In both positions, Floyd had access to the personal identifying information of individuals, including teenagers. Lanier requested that Floyd primarily provide her with identities that belonged to sixteen and seventeen year-olds. Floyd agreed and provided thousands of names to Lanier and others at Lanier’s direction.
After receiving the additional stolen IDs, Gosha recruited Mitchell and her family to help file the fraudulent returns. Mitchell worked at a hospital located at Fort Benning, Georgia, where she had access to the personal identification information of military personnel, including soldiers who were deployed to Afghanistan. She stole soldiers’ IDs and used their information to file fraudulent returns.
In order to electronically file the fraudulent returns, Gosha, Lanier, and their co-conspirators applied for several Electronic Filing Identification Numbers (EFIN) with the IRS in the names of sham tax preparation businesses. Gosha, Lanier, and their co-conspirators then used these EFINs to file the returns and obtain tax refund related bank products from various financial institutions, which provided them with blank check stock. Gosha and his co-conspirators initially printed out the fraudulently obtained refund checks using the blank check stock.
However, the financial institutions halted Gosha’s and his co-conspirators’ ability to print checks, and as a result they recruited U.S. Postal employees who provided Gosha and others with addresses on their routes to which the fraudulent refund checks could be mailed. In exchange for cash, these postal employees collected the refund checks and provided them to Gosha, Lanier, Mitchell and others. Gosha also directed tax refunds to prepaid debit cards and had them sent to addresses he controlled. Gosha used the prepaid cards to withdraw the refunds.
In addition, between January 2010 and December 2013, Gosha participated in a separate stolen identity refund fraud scheme with Pamela Smith and others, in which Gosha sold the IDs that he had stolen from the Alabama Department of Corrections to Smith and others. Smith and others used the IDs to file returns that sought approximately $4.8 million in fraudulent refunds of which the IRS paid out approximately $1.85 million. Smith was previously convicted and sentenced to prison.
Chief U.S. District Court Judge Watkins did not set a date for sentencing. Gosha faces a statutory maximum sentence of 10 years in prison for the conspiracy to file false claims, a statutory maximum sentence of 20 years in prison for each count of wire and mail fraud and a mandatory minimum sentence of two years in prison for the aggravated identity theft. The defendant also faces a period of supervised release, restitution, forfeiture and monetary penalties. He was remanded into custody.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Franklin commended special agents of Internal Revenue Service Criminal Investigation and the U.S. Postal Inspection Service, who conducted the investigation, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Akron women indicted for defrauding Department of Education out of $1.8 million through financial aid schemeRead the Press Release
A 23-count indictment was filed charging three Akron women with defrauding the U.S. Department of Education out of $1.8 million through a scheme where they enrolled inmates and people whose identities they stole in an Arizona community college in order to obtain financial aid, law enforcement officials said.
Janice M. Shufford, 53, Bridgid D. Sommerville, 47, and Christine M. Robinson, 38, are charged with conspiracy to commit wire fraud and multiple counts of wire fraud and aggravated identity theft.
“These defendants lied on applications or used stolen identities to steal money that otherwise would have gone to deserving students,” U.S. Attorney Justin Herdman said. “Our office will continue to prosecute those who defraud the federal government.”
“These individuals engaged in fraud that resulted in over a million dollars lining their greedy pockets and not going to deserving, eligible students in need,” said FBI Special Agent in Charge Stephen D. Anthony. “The FBI will continue efforts to bring self-serving fraudsters to justice."
Financial aid is sometimes provided to eligible students by the U.S. Department of Education to help pay for college. This money can include living expenses, beyond the cost of tuition, that is sometimes disbursed via bank debit cards. In this case, those refunds were sent to addresses or bank accounts controlled by the defendants, according to the indictment.
The defendants conspired to obtain federal student financial aid money to which the recipients were neither eligible nor entitled. For example, people who are incarcerated, or have not received a high school diploma or GED are not entitled to receive federal financial aid, according to the indictment.
The defendants fraudulently enrolled hundreds of people at Maricopa Community College in Arizona between 2011 and 2015, according to the indictment.
As a result of the conspiracy, the Department of Education was defrauded and sustained a total loss of at least $1,826,064, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian McDonough following an investigation by Special Agents of the Department of Education, Office of Inspector General, and the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Acting Manhattan U.S. Attorney Announces Initial Distribution of More Than $770 Million to Victims of Madoff Ponzi SchemeRead the Press Release
Rod J. Rosenstein, the Deputy Attorney General, Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), announced today that the Madoff Victim Fund established by the Department of Justice began its initial distribution of $772.5 million in funds forfeited to the United States Government in connection with the Bernard L. Madoff Investment Securities LLC (“BLMIS”) fraud scheme. These funds will be sent to more than 24,000 victims worldwide, the first in a series of payments from the Madoff Victim Fund that will return to victims more than $4 billion in assets recovered as compensation for losses suffered by the collapse of BLMIS, following the largest fraud in history. Another $5 billion in assets recovered by the U.S. Attorney’s Office are being separately paid to Madoff victims through the BLMIS Customer Fund administered by the Securities Investor Protection Act Trustee.
Deputy Attorney General Rod J. Rosenstein said: “Thanks to civil asset forfeiture, the Department of Justice is announcing today the record-setting distribution of restitution to victims of Bernard Madoff’s notorious investment fraud scheme. We have recovered billions of dollars from third parties – not Mr. Madoff – and are now returning that money to tens of thousands of victims. This is the largest restoration of forfeited property in history.”
Acting Manhattan U.S. Attorney Joon H. Kim said: “Bernie Madoff committed one of history’s largest and most devastating frauds. This Office not only prosecuted Madoff himself and others who helped perpetrate his fraud, but has remained committed to recovering money for his victims. To date, this Office has recovered more than $9 billion for the innocent victims of Madoff’s fraud, and today’s distribution of $770 million, the single largest distribution of forfeited funds in the Department’s history, is part of our ongoing commitment to not only prosecute criminals but also find relief for victims.”
FBI Assistant Director William F. Sweeney Jr. said: “No amount of money in the world could ever reverse the catastrophic effects Madoff’s historic Ponzi scheme had on individuals and businesses alike. But now, nearly a decade after this crime was exposed, it is our hope that victims will finally be able to see the light at the end of a long, dark tunnel.”
Since the early 1970s, BERNARD L. MADOFF (“MADOFF”) used his position as Chairman of BLMIS, the investment advisory business he founded, to steal billions from his clients. On March 12, 2009, MADOFF pled guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family, and select members of his inner circle. On June 29, 2009, United States District Judge Denny Chin sentenced MADOFF to 150 years in prison for running the largest fraudulent scheme in history. Judge Chin ordered MADOFF to forfeit $170,799,000,000 as part of MADOFF’s sentence.
The Madoff Victim Fund is funded through recoveries by the U.S. Attorney’s Office in various criminal and civil forfeiture actions, and is overseen by Richard Breeden, the former Chairman of the United States Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings.
Of the approximately $4.05 billion that will be made available to victims through the Madoff Victim Fund, approximately $2.2 billion was collected as part of the civil forfeiture recovery from the estate of deceased MADOFF investor Jeffry Picower. An additional $1.7 billion was collected as part of a Deferred Prosecution Agreement with JPMorgan Chase Bank N.A. for MADOFF-related Bank Secrecy Act violations. Additional funds were collected through criminal and civil forfeiture actions against MADOFF and his co-conspirators, and certain MADOFF investors.
Mr. Kim praised the work of the FBI and the Madoff Victim Fund, and thanked the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division for their assistance.
For more information about the Madoff Victim Fund, compensation to victims of BLMIS, eligibility criteria, and payment information, please visit www.madoffvictimfund.com.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Jonathan Cohen, Louis A. Pellegrino, and Niketh Velamoor are in charge of the case.
8 November 2017
United States Attorney Announces Indictment for Heroin Distribution ConspiracyRead the Press Release
TULSA, Okla.— R. Trent Shores, United States Attorney for the Northern District of Oklahoma, announced that the Grand Jury handed down a “True Bill” and issued an Indictment against five defendants, charging them with eight counts to include heroin conspiracy, possession of heroin with intent to distribute and distribution of heroin. The defendants charged are: Martin Estaban-Flores, a/k/a “Martin Esteban Flores-Gamez”, age 27; Wilber Ramirez, a/k/a “Carlos Gonzales Rosales”, a/k/a “Tadeo”, age 27; Antonio Mauro Inda-Ibarra, a/k/a “Guillermo Samuel Inda-Perez”, a/k/a “Tono”, age 25; Richardo Desantiago Garcia, a/k/a “Eder Cervantes Garcia”, a/k/a “Jose Ramon Beltran Torres”, a/k/a “Sinaloa”, age 40; Angel Verdin Martinez, a/k/a “Gabino”, age 22.
The Indictment alleges that the five defendants are part of a heroin distribution network that mirrors the delivery systems of national pizza restaurants. According to the Indictment, Flores acted as the dispatcher, receiving calls from customers who placed orders for heroin. After receiving the orders, Flores then directed those customers to specific locations where delivery drivers, such as Inda-Ibarra, Inda-Perez and Martinez, met the customers. Upon meeting, the delivery drivers distributed to the customers balloons containing one gram of heroin at a cost of $100 per balloon. The turnaround time for one of these heroin sales was usually about 30 minutes. The Indictment further alleges that the defendants distributed quantities of heroin and used communication facilities (cellular telephones) to facilitate the sale of heroin.
On October 16, 2017, FBI Special Agents and Task Force Officers executed a federal search warrant for Room 217 of the Quality Inn at 10829 East 41st Street in Tulsa, Oklahoma. Law enforcement agents observed Flores and Ramirez enter the room and, utilizing a wiretapped phone, they overheard what sounded like the packaging of heroin. During the search, law enforcement agents seized approximately four kilograms of suspected heroin, over $1,200 in cash, eight cell phones, and assorted drug paraphernalia and processing equipment. Additionally, the Indictment alleges that both Inda-Ibarra and Inda-Perez sold quantities of heroin to an undercover officer while they acted as delivery drivers.
“Heroin and illegal opiate drugs are poisoning our local communities,” said United States Attorney Shores. “The four kilograms of heroin seized by law enforcement represented approximately 16,000 doses with an approximate street value of $400,000 to $500,000. The United States Attorney’s Office stands ready to work with federal, state, local, and tribal partners to aggressively prosecute those who would seek to profit from the trafficking of heroin.”
The Indictment is part of “Operation: Papa Juan’s”, an Organized Crime and Drug Enforcement Task Force (OCDETF) and High Intensity Drug Trafficking Area (HIDTA) investigation. The FBI, with the assistance of the Tulsa Police Department and the Broken Arrow Police Department, is the primary investigating agency, joined by the DEA HIDTA Task Force. Assistant United States Attorney Robert T. Raley is prosecuting the case on behalf of the United States.
THE RETURN OF AN INDICTMENT IS A METHOD OF INFORMING A DEFENDANT OF ALLEGED FEDERAL CRIMES WHICH MUST BE PROVEN IN A COURT OF LAW BEYOND A REASONABLE DOUBT TO OVERCOME A DEFENDANT’S PRESUMPTION OF INNOCENCE.
Two Washington County Men Plead Guilty to Unlawful Possession of FirearmsRead the Press Release
BOISE – Robby David Haley, 28, and Shawn Michael Hart, 28, both of Washington County, Idaho, pleaded guilty yesterday to unlawful possession of firearms, U.S. Attorney Bart M. Davis announced. Haley and Hart were indicted by a federal grand jury in Boise on April 11, 2017.
According to court proceedings, Haley and Hart admitted that they broke into a residence in Midvale, Idaho on February 18, 2017, and stole three firearms and other property valued at $21,299. Haley is prohibited from possessing firearms after he was convicted of burglary in Kootenai County, Idaho in 2010. Hart is prohibited from possessing firearms after he was convicted of misdemeanor domestic violence in the presence of a child in Washington County in 2016.
A charge of unlawful possession of firearms is punishable by up to ten years in prison, a maximum fine of $250,000, and a term of supervised release of three years.
Sentencings for Haley and Hart are set for January 30, 2018, before U.S. District Judge David C. Nye at the federal courthouse in Boise.
This case was investigated by the Washington County Sheriff’s Office, the Boise City Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Two New Jersey Men Admit Conspiracy to Distribute More Than 140 Kilograms of Heroin and CocaineRead the Press Release
One Defendant Also Pleads Guilty to Assaulting Federal Officers
TRENTON, N.J. – Two New Jersey men today admitted their roles in a conspiracy to distribute 140 kilograms of narcotics in New Jersey, Acting U.S. Attorney William Fitzpatrick announced.
Gemal Singleton, 27, of Edison, New Jersey, and Siddeeq Q. Williams, 39, of Cranford, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to separate informations charging them each with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin and five kilograms of cocaine. Williams also pleaded guilty to one count of assaulting federal officers.
According to the documents filed in this case and statements made in court:
Singleton, Williams, and others arranged for cocaine and heroin to be shipped to New Jersey via tractor trailer. On Aug. 27, 2017, the tractor trailer arrived in New Jersey and law enforcement conducted a vehicle stop after the driver committed several traffic violations. A subsequent search of the tractor-trailer recovered five large duffle bags containing a total of 56 kilograms of heroin and 85 kilograms of cocaine. Singleton and Williams admitted that they were supposed to meet the tractor-trailer to collect the narcotics for eventual distribution.
On Aug. 30, 2017, law enforcement went to speak with Singleton and Williams. Williams admitted that when two law enforcement officers operating an undercover vehicle attempted to pull him over, he sped away in a Honda Pilot. Williams also admitted that during the ensuing pursuit, he rammed the Pilot into the officers’ vehicle and drove away.
The drug conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The charge of assaulting a federal officer carries a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for Feb. 20, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.
Defense counsel:
Singleton: Robert DeGroot Esq., Newark
Williams: Jon Kearney Esq., Kearny, New Jersey
Two Illegal Aliens Sentenced to Prison for Selling Identification Documents and Aggravated Identity TheftRead the Press Release
Two illegal aliens who sold real identification documents belonging to United States citizens were each sentenced November 8, 2017, to over three and one-half years in federal prison.
Ari Hernandez-Chacon, age 47, a native and citizen of Mexico illegally residing in Columbus Junction, Iowa, received the prison term after a June 22, 2017 guilty plea to one count of possession with intent to transfer identification documents and one count of aggravated identity theft. In a plea agreement, Hernandez-Chacon admitted that on February 25, 2016, he sold three real Social Security cards and three real birth certificates to an undercover agent, knowing that the documents belonged to United States citizens. Hernandez-Chacon admitted that the identities sold were real and had no arrest records to avoid problems for the person using the stolen identities.
Magali Marroquin-Garcia, age 38, a native and citizen of Mexico illegally residing in Columbus Junction, Iowa, received the prison term after a June 22, 2017 guilty plea one count of possession with intent to transfer identification documents and one count of aggravated identity theft. In a plea agreement, Marroquin-Garcia admitted that on May 12, 2016, she sold three real Social Security cards and three real birth certificates to an undercover agent, knowing that the documents belonged to United States citizens.
Hernandez-Chacon and Marroquin-Garcia were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade.
Hernandez-Chacon was sentenced to 43 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term.
Marroquin-Garcia was sentenced to 43 months’ imprisonment. A special assessment of $200 was imposed. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hernandez-Chacon and Marroquin-Garcia are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Homeland Security Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-10.
Follow us on Twitter @USAO_NDIA.
Traverse City Physician Sentenced to Incarceration for Fraudulent PrescriptionsRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced that on Monday, November 6, 2017, Mark Edward Brewster, M.D., of Traverse City, Michigan, was sentenced to 10 months’ incarceration following his guilty plea to writing fraudulent prescriptions to obtain controlled substances. Brewster will also pay restitution to Blue Cross Blue Shield of Michigan, which paid for a number of Brewster’s fraudulent prescriptions. Brewster further surrendered his DEA registration to federal authorities as part of this investigation.
A federal investigation revealed that between 2006 and 2015, Brewster wrote over 150 fraudulent prescriptions in the names of seven different people in order to obtain quantities of Ritalin, a Schedule II controlled substance, that ultimately exceeded five times the maximumFDA-approved adult dosage. Brewster started issuing fraudulent prescriptions before he graduated from medical school, wrote fraudulent prescriptions while he was on state court probation for a domestic violence conviction, and continued writing fraudulent prescriptions after being fired by a northern Michigan hospital for his prescribing practices. When Brewster’s prescriptions to his girlfriend became the subject of a state licensing investigation in 2015, he assured state investigators that, going forward, there was "zero chance" he would write prescriptions for anyone other than his patients. Brewster continued writing fraudulent prescriptions the very next day and concealed those prescriptions by writing them in the names of his girlfriend’s minor children and others who were unknown to licensing investigators.
During his nearly decade-long prescription fraud, Brewster boasted, in text messages, that he was "[s]ticking it to the man" by having some of his fraudulent prescriptions paid for by other people’s private insurance. Brewster also falsified progress notes in a patient’s medical record to cover other fraudulent prescriptions.When he became aware of the federal investigation, Brewster instructed people not tell the DEA anything about his fraudulent prescriptions.
At sentencing, Judge Maloney described Brewster’s crime as "a product of the doctor’s arrogance" and noted that Brewster caused a number of otherwise law-abiding people to become involved in felonious conduct. The sentence, Judge Maloney said, should deter other health care professionals who might consider illegally abusing their prescribing authorities to obtain drugs for themselves or others.
In connection with this investigation, Brewster’s girlfriend, Nicole Aiello, R.N., also pled guilty to aiding and abetting Brewster in illegally obtaining controlled substances. Aiello will be sentenced on January 5, 2018. To date, the U.S. Attorney’s Office has further recovered $46,200.00 in civil penalties from other individuals who filled fraudulent prescriptions and returned controlled substances to Brewster.
"The U.S. Attorney’s Office will aggressively use all available criminal, civil, and administrative remedies when health care professionals abuse their licenses to illegally prescribe controlled substances for themselves or others," Acting U.S. Attorney Birge said. "The national epidemic of prescription drug abuse warrants the serious attention that we give this conduct."
This case was investigated by the U.S. Drug Enforcement Administration, Blue Cross Blue Shield of Michigan, and the U.S. Attorney’s Office. The case was prosecuted by Assistant U.S. Attorneys Adam B. Townshend and Raymond E. Beckering III.
END
Three Defendants Convicted on All Counts for Mortgage Fraud Scheme Involving 14 PropertiesRead the Press Release
THREE DEFENDANTS CONVICTED ON ALL COUNTS FOR MORTGAGE FRAUD SCHEME INVOLVING 14 PROPERTIES
SACRAMENTO, Calif. — A federal jury in Sacramento convicted three Northern California residents today of crimes relating to their involvement in a mortgage fraud scheme, U.S. Attorney Phillip A. Talbert announced.
After a seven-day trial, the jury found Surjit Singh, 71, of Dublin, and his son, Rajeshwar Singh, 43, of Pleasanton, each guilty of four counts of mail fraud, four counts of bank fraud, and four counts of false statements on loan and credit applications. Anita Sharma, 55, of Gilroy, was found guilty of two counts of mail fraud, two counts of bank fraud, and two counts of false statements on loan and credit applications.
“Today’s verdict is yet another step in the efforts taken by this office and our partners at the FBI to bring to account those whose fraudulent activities contributed to the financial decline which had such a tremendous impact on our communities,” said U.S. Attorney Talbert. “We are gratified by the verdict and thankful for the hard work and dedication of our investigative partners.”
“One of the FBI’s top priorities is to combat major white-collar crimes such as mortgage fraud,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Mortgage fraud has negatively impacted entire communities in our region by artificially influencing home values and threatening the investments of lawful buyers. To ensure a bright future for our region, identification and investigation of mortgage fraud schemes is imperative. We will continue to investigate such crimes to both deter would-be fraudsters from acting and ensure those who commit fraud face justice.”
According to court documents, in 2006 and 2007, Surjit Singh recruited individuals with good credit to act as straw buyers for residential properties owned by his family members and associates. Rajeshwar Singh, a licensed real estate agent, assisted in the scheme by submitting loan applications for the straw buyers. Anita Sharma, a dental assistant at the time, was one of the straw buyers. Because Sharma and the other straw buyers could not afford the homes based on their true incomes, the Singhs submitted fraudulent loan applications and supporting material to lending institutions that included false statements about the straw buyers’ income, employment, liabilities, and intent to occupy the homes as their primary residences.
At least 14 properties were involved in the scheme. Anita Sharma alone purchased five homes in San Jose, San Ramon, Elk Grove, Sacramento, and Modesto. Other straw buyers purchased or refinanced properties in Stockton, Modesto, Patterson, Lathrop and Tracy. All of these homes were ultimately either foreclosed upon or sold in a short sale where the bank lets homeowners sell their homes for less than is owed on the mortgage.
Sharma was paid for her involvement in the scheme. Rajeshwar Singh received financial benefits through broker commissions for the transactions and as the seller of seven of the properties. He also continued to occupy the San Ramon property at a time when Anita Sharma should have been living there. Surjit Singh benefitted through payments out of escrow directed to shell companies, such as SJR Investments and BK Investments, associated with his daughter and significant other, whose initials are SJR and BK respectively. These payments were purportedly for contracting services, which did not occur. He also benefitted through rental payments made to him and his significant other by the renters of the homes, as the straw buyers were not living in the homes. In addition, many of his family members received money by selling properties and had money directed to them out of escrow. According to court documents and evidence produced at trial, the defendants were responsible for the origination of more than $9.3 million in fraudulently procured residential mortgage loans.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Lee S. Bickley and Kelli L. Taylor are prosecuting the case.
The defendants are scheduled for sentencing on January 26, 2018. They face a maximum penalty of 30 years in prison and a $1 million 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. The court remanded Surjit Singh into custody.
Shelby County Woman Sentenced to 25 Months in Prison for Fraudulently Raising Money on False Cancer ClaimRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Shelby County woman to more than 25 months in prison for fraudulently soliciting more than $260,000 by falsely claiming she had terminal cancer, announced U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp Jr. and Alabama Attorney General Steve Marshall.
JENNIFER FLYNN CATALDO, 37, of Sterrett, pled guilty in August to one count of wire fraud and one count of bank fraud for using her claim of terminal cancer to get money from family and friends and to solicit donations through the online fund-raising site, GoFundMe.
U.S. District Court Judge Virginia Emerson Hopkins sentenced Cataldo to 25 months and 20 days in prison and ordered her to pay $79,629 in restitution to the victims of her fraud, and to forfeit that amount to the government as proceeds of illegal activity.
“This defendant’s conduct was reprehensible,” Town said. “For more than two years she engaged in an elaborate scheme that preyed upon the sympathy and generosity of her friends and family. Not only did she fake cancer to take their money, she used her minor child as part of her ruse and allowed the child to believe his mother was dying,” he said. “She has earned every nickel of her punishment.”
“Crimes like this make good people think twice before they are willing to be charitable, and Cataldo’s conduct could have a chilling effect on donations to legitimate accounts set up for people who are truly in need,” Sharp said. “It is hard to understand how anyone could ignore the anguish that their greed- or drug-fueled lie brought to their loved ones every single day.”
“This crime involved an act of calculated cruelty carried out over a prolonged time, causing terrible anguish and grief to the defendant’s family and friends, as well as her own young child, who were led to believe she was dying. She took heartless advantage of their love as well as the compassion of strangers who gave generously to meet what they believed was a desperate need,” Marshall said. “The fact that we now know that part of the money was going to fund illegal opioids is yet more evidence of how destructive these drugs can be. It is imperative that we confront such criminal activities and that the offenders are stopped and punished.”
Cataldo fraudulently collected a total of $264,163 in checks and cash deposited into her personal checking account, according her guilty plea. A government sentencing document states that throughout Cataldo’s scheme, she was spending part of the money she obtained fraudulently to pay for 30 to 40 non-prescribed Percocet, an opioid containing painkiller, per day.
Court documents, including Cataldo’s plea agreement, describe her fraudulent scheme as follows:
From 2014 to about May 2017, Cataldo misrepresented to friends and family that she had been diagnosed with terminal cancer. In person, online and via text messages, she solicited contributions from friends, family and others and received the more than $200,000 in donations for expenses including utilities and living, medical, insurance and funeral costs. In January 2016, Cataldo also created an account on the GoFundMe website titled, “Mom has Terminal Cancer Disney Trip,” with the stated goal of raising $4,000 to take her young child to visit Disney before she died. The account featured a photo of the child on the cover and a statement from Cataldo that she had “had cancer for two years and was just told it was inoperable! I would like to experience this with my [minor child] before I die within the year.” That account raised more than $10,000.
In September 2016, a friend who believed Cataldo was suffering from terminal cancer created a second GoFundMe account titled, “Jenny Flynn Cataldo Medical Care,” with a $20,000 fund-raising goal. The medical GoFundMe account featured a photo of Cataldo, her husband and their child. The accompanying story related that Cataldo had been battling cancer for three years, that it was no longer treatable and “the primary goal of medical care at this point is to give Jenny as much time as possible” with her husband and child.
Between September 2016 and May 2017, Cataldo repeatedly re-posted the medical GoFundMe account link to her Facebook page with messages thanking people for their contributions, giving false updates on her condition, and requesting more donations. The medical account raised more than $25,000. Cataldo withdrew $27,755 and deposited it into her personal banking account.
In addition to the two GoFundMe accounts, Cataldo solicited funds on Facebook, in person, and by phone, e-mail and text message to friends, family and organizations, including churches. Some of those individuals paid third-party vendors on Cataldo’s behalf.
The FBI and the Alabama Attorney General’s Office investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
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Seven Individuals Indicted in November Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the November 2017 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
RODNEY PHILLIP AIRD, age 50, of Seminole, Oklahoma
Possession With Intent To Distribute Methamphetamine
The Indictment alleges that on or about August 13, 2017, within the Eastern District of Oklahoma, the defendant, RODNEY PHILLIP AIRD, did knowingly and intentionally possess with the intent to distribute 5 grams or more of methamphetamine (actual), a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by no more than 40 years imprisonment, a fine up to $5,000,000.00 or both.
The charge arose from an investigation by the Seminole Nation Tribal Police, the Bureau of Indian Affairs, and the Drug Enforcement Administration.
Assistant United States Attorney John David Luton
KRISTI MICHELLE JUAREZ, age 32, of Sanger, Texas
Theft By Officers Or Employees Of An Indian Gaming Establishment
The Indictment alleges that on January 2, 2017, in the Eastern District of Oklahoma, KRISTI MICHELLE JUAREZ, defendant herein, while an employee of the Chickasaw Nation WinStar World Casino and Resort, did embezzle, abstract, purloin, willfully misapply, and take and carry away in excess of $1,000.00 of moneys belonging to the Chickasaw Nation WinStar World Casino and Resort, an Indian gaming establishment operated by the Chickasaw Nation, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission, in violation of Title 18, United States Code, Section 1168(b), punishable by up to 20 years imprisonment, a fine up to $1,000,000.00 or both.
The charge arose from an investigation by the Federal Bureau of Investigation, and the Bureau of Indian Affairs.
Assistant United States Attorney John David Luton
MANUEL EMILIO PAYANO, age 42, of Hazleton, Pennsylvania
ANGEL VEGA, age 43, of Philadelphia, Pennsylvania
Possession With Intent To Distribute Cocaine
The Indictment alleges that on or about October 16, 2017, within the Eastern District of Oklahoma, the defendants, MANUEL EMILIO PAYANO and ANGEL VEGA, did knowingly and intentionally possess with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2, punishable by not less than 10 years imprisonment, a fine up to $10,000,000.00 or both.
The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
Assistant United States Attorney Dean Burris
JUSTIMIANO PEREZ DIAZ, age 42, of Stigler, Oklahoma
Enticement Of A Minor Using The Internet
The Indictment alleges that from in or about September 2017, the exact date being unknown to the Grand Jury, until on or about October 16, 2017, in the Eastern District of Oklahoma, and elsewhere, the defendant, JUSTIMIANO PEREZ DIAZ, 42 years old, did use a facility and means of interstate commerce, the Internet, to attempt to knowingly persuade, induce, and entice an individual whom he believed was 13 years old, to engage in sexual activity for which a person can be criminally charged under Oklahoma State law, to wit: Title 21, Oklahoma Statute, Section 1123, Lewd or Indecent Proposals or Acts with a Child under 16, in violation of Title 18, United States Code, Section 2422(b), punishable by not less than 10 years imprisonment, a fine up to $250,000.00 or both.
The charge arose from an investigation by the Wagoner Police Department and the Federal Bureau of Investigation.
Assistant United States Attorney Edward Snow
DARRELL LEE McLEMORE, age 55, of Porum, Oklahoma
Concealment Of A Material Fact
False Statement (Two Counts)The Indictment alleges that from in or about October 2012 and continuing through in or about October 2017, within the Eastern District of Oklahoma and elsewhere, the ,defendant DARRELL LEE McLEMORE, in a matter within the jurisdiction of Social Security Administration, having knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Supplemental Security Income payments, concealed and failed to disclose such event with the intent to fraudulently secure payment when no payment was authorized. Specifically, defendant DARRELL LEE McLEMORE intentionally concealed that DARRELL LEE McLEMORE secured gainful employment and owned or acquired assets, which would disqualify him from eligibility for the payments, in order to receive and continue to receive Supplemental Security Income payments made by the Social Security Administration to him. By such action, defendant DARRELL LEE McLEMORE took approximately $48,075.00 in Social Security Supplemental Security Income payments to which he was not entitled, in violation of Title 42, United States Code, Section 1383a(a)(3), punishable by not more than 5 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about February 1, 2017, within the Eastern District of Oklahoma, the defendant, DARRELL LEE McLEMORE, did knowingly make or caused to be made any false statement or representation of a material fact to the Social Security Administration used to determine the right for any payment. Specifically, DARRELL LEE McLEMORE participated in a redetermination conference wherein DARRELL LEE McLEMORE stated that DARRELL LEE McLEMORE had not worked since the date of DARRELL LEE McLEMORE’s last eligibility determination, when, in fact, DARRELL LEE McLEMORE knew that he had been gainfully employed during the period, in violation of Title 42, United States Code, Section 1383a(a)(2). punishable by not more than 5 years imprisonment, a fine up to $250,000.00 or both.
The Indictment further alleges that on or about June 14, 2016, within the Eastern District of Oklahoma, the defendant, DARRELL LEE McLEMORE, did knowingly and willfully, make a materially false statement or representation, in a matter within the jurisdiction of the Social Security Administration of the United States, by submitting a Form SS-5 Application for a Social Security Card and stating to a Social Security Administration Service Representative that he had never applied for or been issued a Social Security Card, when, in fact, defendant, DARRELL LEE McLEMORE, knew that he had been assigned a Social Security Number and issued a Social Security Card on or about October 14, 1975, in violation of Title 18, United States Code, Section 1001, punishable by not more than 5 years imprisonment, a fine up to $250,000.00 or both.
The charges arose from an investigation by the Social Security Administration Office of Inspector General.
Assistant United States Attorney Rob Wallace
TIFFANY RHEA SPEARS, age 30, of Thackerville, Oklahoma
Bank Theft, Embezzlement And Misapplication
False Entry In The Books Of A Federally Insured Bank (Four Counts)
Bank FraudThe Indictment alleges that from on or about January 6, 2017, until on or about June 5, 2017, within the Eastern District of Oklahoma, defendant TIFFANY RHEA SPEARS, being an officer, director, agent, or employee of, or connected in a capacity with, Citizens Bank and Trust of Ardmore, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud the said Citizens Bank and Trust of Ardmore, Oklahoma, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys, funds, assets or securities entrusted to the custody or care of Citizens Bank and Trust of Ardmore, Oklahoma, in that the defendant made advances on certain customer loans and withdrew cash from the accounts of certain bank customers and misapplied, embezzled, abstracted and purloined the funds for her own use or benefit, in violation of Title 18, United States Code, Section 656, punishable by not more than 30 years imprisonment, a fine up to $1,000,000.00 or both.
The Indictment further alleges that from on or about January 6, 2017, until on or about June 5, 2017, within the Eastern District of Oklahoma, defendant TIFFANY RHEA SPEARS, with the intent to deceive an officer of Citizens Bank and Trust of Ardmore, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, knowingly made false entries in the books, reports, or statements of Citizens Bank and Trust of Ardmore, Oklahoma, as set forth in the table below, in that defendant created false transaction documents showing customers advancing monies on their loans and withdrawing cash from their accounts, when in truth and in fact, as the defendant well knew, the advances and withdrawals from customer accounts were by, and for the benefit of, the defendant, punishable by not more than 30 years imprisonment, a fine up to $1,000,000.00 or both.
The Indictment further alleges that from on or about January 6, 2017, until on or about June 5, 2017, within the Eastern District of Oklahoma, defendant, TIFFANY RHEA SPEARS, devised, executed, and attempted to execute a scheme and artifice to obtain moneys, funds, credits, assets, securities, or other property under the custody or control of Citizens Bank and Trust of Ardmore, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, by means of materially false and fraudulent pretenses, representations, and promises.
The charges arose from an investigation by the Federal Reserve Office of Inspector General.
Assistant United States Attorney Rob Wallace
Second Superseding Indictment Unsealed Charging St. Charles Parish Narcotics RingRead the Press Release
Acting U.S. Attorney Duane A. Evans, announces the arrest of LUIS J. COTTO, a/k/a “Luis Pereira,” age 31, of New York, following the unsealing of a Second Superseding Indictment charging an array of federal narcotics and firearm violations by members of a drug trafficking organization operating in south Louisiana.
The Second Superseding Indictment, which was returned by the grand jury on October 27, 2017, and unsealed today charges seven defendants with conspiring to distribute controlled dangerous substances in the parishes of St. Charles, St. John the Baptist, and elsewhere. As with the prior Indictment, this Second Superseding Indictment alleges that the conspirators included ANDRE STAGGERS, a/k/a “Dre,” age 43; COREY SESSION, age 43; GREGORY LONDON, JR., a/k/a “Lil Gregg,” age 41; TERRANCE ANDERSON, a/k/a “City,” age 35; KIRK BALLARD, age 36; and LEONARD MORRISON, a/k/a “Leonard London,” age 35.
This Second Superseding Indictment names COTTO as an additional co-conspirator. COTTO was arrested today at his residence in Utica, New York, pursuant to a federal arrest warrant issued after the Second Superseding Indictment was returned by the grand jury.
The Second Superseding Indictment also alleges that COTTO was responsible for more than one kilogram of heroin and five kilograms of cocaine through his own conduct and the reasonably foreseeable conduct of his co-conspirators. The Second Superseding Indictment asserts that, on or about August 7, 2016, COTTO transported more than $225,000 in cash in furtherance of the drug conspiracy.
According to the Second Superseding Indictment, these defendants conspired together from approximately January 2015 through August 2016 to distribute heroin, cocaine, and marijuana in the Eastern District of Louisiana and elsewhere. The scope of the conspiracy encompassed at least five kilograms or more of cocaine and one kilogram or more of heroin. During the course of this investigation, federal and state law enforcement officers seized various drugs, including cocaine, heroin, marijuana, and methamphetamine.
According to court documents, search warrants executed on February 25, 2016, at two residences used by COREY SESSION resulted in the seizure of two AK-style rifles, approximately $10,000 in cash, and a half kilogram of cocaine. A search warrant executed the same day at the residence of ANDRE STAGGERS resulted in the seizure of an AR-15 rifle, a half kilogram of heroin, and over $400,000 in cash.
If convicted for violating federal drug conspiracy laws, the defendants face the following penalties. STAGGERS, SESSION, LONDON Jr., ANDERSON, BALLARD, and COTTO each face a maximum of life imprisonment, a $10,000,000 fine, and at least five years of supervised release. MORRISON faces a maximum of 40 years imprisonment, a $5,000,000 fine, and at least four years of supervised release.
STAGGERS, SESSION, and MORRISON also are charged with federal firearms violations. STAGGERS is charged with possession of a firearm as a felon, for which he could receive up to ten years of imprisonment, a $250,000 fine, and up to three years of supervised release. SESSION and MORRISON are each charged with possession of a firearm as an armed career criminal, for which each could receive a minimum of fifteen years in prison and a maximum of life imprisonment, a $250,000.00 fine, and up to five years of supervised release. STAGGERS, SESSION, and MORRISON are also charged with possession of a firearm in furtherance of a drug trafficking crime, for which they each face a minimum of five years in prison consecutive to any other sentence, a $250,000 fine, and up to five years of supervised release.
Acting U.S. Attorney Evans reiterated that the Second Superseding Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This Second Superseding Indictment represents a coordinated effort of federal and state law enforcement authorities within the Drug Enforcement Administration’s Gulf Coast High Intensity Drug Trafficking Area (HIDTA) Program. The DEA’s HIDTA Group #11, operating out of the New Orleans Field Division, includes members of the Louisiana State Police, Jefferson Parish Sheriff’s Office, and other local agencies. Acting U.S. Evans thanked the Drug Enforcement Administration Syracuse Field Office and the Utica Police Department for their assistance in arresting COTTO.
The prosecution is being handled by Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Andre Gaudin, who is assigned from the Orleans Parish District Attorney’s Office to the DEA HIDTA Group.
San Juan County Woman Sentenced to Prison for Federal Health Care Fraud ConvictionRead the Press Release
ALBUQUERQUE – Rosita Toledo, 48, of Kirtland, N.M., was sentenced today in federal court in Albuquerque, N.M., for her healthcare fraud conviction. Toledo was sentenced to a 25-month term of imprisonment followed by three years of supervised release, during which she will be required to perform 40 hours of community service each year. Toledo also was ordered to pay, jointly with her co-defendant, $1,218,165.00 in restitution to the victim of their criminal conduct.
Toledo and co-defendant Cory Werito, 33, of Farmington, N.M., were charged in a ten-count indictment that was filed on June 15, 2016. The indictment included nine health care fraud charges against Toledo and Werito, and an aggravated currency structuring charge against Werito. The health care fraud charges arose out of the defendants’ roles in creating and operating a medical transportation company, CW Transport, a New Mexico company located in Farmington that provided non-emergency medical transportation to Arizona Medicaid recipients, funded by reimbursement payments from the Arizona Health Care Cost Containment System (AHCCCS), a healthcare benefit program. Over the course of two years between 2011 and 2013, CW Transport collected more than $1.9 million in Medicaid reimbursements from AHCCCS by submitting more than 18,000 claims for reimbursement, the vast majority of which were wholly or substantially false and fraudulent.
According to Count 10 of the indictment, the aggravated currency structuring charge, Werito conducted financial transactions involving the proceeds of the health care fraud in a manner that avoided the filing of Currency Transaction Reports (CTRs). CTRs are reports which must be filed by financial institutions on transactions involving more than $10,000 during any business day and are used by law enforcement authorities to uncover a broad range of illegal activities including money laundering. From Aug. 2011 to July 2013, Werito conducted at least 200 cash withdrawals, each for several thousands of dollars but less than $10,000 and totaling at least $800,000, to avoid the filing of CTRs.
The indictment included forfeiture provisions seeking an order requiring Toledo and Werito to forfeit to the United States at least $1,959,405, the proceeds allegedly derived from the health care fraud alleged in Counts 1 through 9 of the indictment.
On March 30, 2017, Toledo entered a guilty plea to Count 1 of the indictment, and admitted her role in the health care fraud scheme. In entering her guilty plea, Toledo admitted that between July 2011 and July 2013 and in her capacity as the primary claims processor for CW Transport, she submitted 18,765 fraudulent claims for reimbursement, which caused AHCCCS to pay CW Transport a total of $1,959,405.
On March 9, 2017, Werito pled guilty to Count 1 of the indictment, charging him with committing health care fraud. Werito admitted, as the sole owner of CW Transport, he submitted approximately 18,765 claims for reimbursement to AHCCCS between July 2011 and July 2013. Because the claims were grouped in 140 invoices, Werito received 140 payments from AHCCCS in an amount totaling $1,959,405. Werito admitted submitting the claims for reimbursement as part of a scheme to defraud AHCCCS because he either never provided or provided in a substantially different manner many of the services for which he sought and received reimbursement. On Sept. 6, 2017, Werito was sentenced to 30 months in prison followed by three years of supervised release, and was ordered to pay $1,218,165 in restitution to the victim of his criminal conduct.
The Albuquerque office of HSI investigated the case with assistance from the FBI, U.S. Marshals Service, San Juan County Sheriff’s Office, the Arizona Health Care Cost Containment System and New Mexico Office of the Attorney General. Assistant U.S. Attorney Jeremy Peña prosecuted the case.
Rochester Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. James P. Kennedy, Jr. announced today that Pablo Ulloa, 33, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute five grams or more of methamphetamine, was sentenced to 37 months in prison by Senior U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that the Drug Enforcement Administration received a tip regarding the drug trafficking activities of the defendant and his co-defendant Brian Donaldson. On October 27, 2016, Hamburg Police conducted surveillance at a local motel where the defendants were staying. At approximately 9:15 p.m., Donaldson left the motel and was subsequently pulled over in a traffic stop by Hamburg officers. A search of the vehicle recovered a small quantity of methamphetamine, and a lock box which contained a much larger quantity of methamphetamine. A search was then conducted of the motel room where Donaldson and Ulloa were staying. During that search, officers recovered more containers of methamphetamine, several cellular telephones, drug packaging materials, a scale, and pipes.
Donaldson was convicted and sentenced to 51 months in prison.
Today’s sentencing 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 and the Hamburg Police Department, under the direction of Chief Gregory Wickett.
Retired Navy Veteran Charged with Kidnapping Virginia Beach WomanRead the Press Release
NORFOLK, Va. – A retired Navy veteran was arrested today for the kidnapping of Ashanti M. Billie, a 19 year-old Virginia Beach woman.
According to court documents, Eric Brian Brown, 45, allegedly abducted Billie on September 18 as Billie arrived for work at a Blimpie’s restaurant on Joint Expeditionary Base Little Creek. On September 29, Billie’s body was found in a wooded area behind a church on Greir’s Grove Road in Charlotte, North Carolina, approximately 300 yards from Brown’s childhood home.
According to court documents, Brown, who spent 21 years in the navy, worked as a day laborer and participated in the construction of the Blimpie’s this past summer. Based on the investigation to date, agents believe that Brown is homeless and lives at random facilities and buildings on and off the naval bases. Billie’s coworkers reported that Brown would visit the Blimpie’s almost every day, and that he was seen so often in the neighboring buildings, such as a 24-hour laundromat directly next door, that they believed Brown worked there. Witnesses reported seeing Brown attempting to flirt with Billie on several occasions, and one witness recalled hearing a conversation where Brown made a crude sexual comment directly to Billie.
Video surveillance recorded Billie’s car enter the base at 4:58 a.m. on September 18, and circle the Blimpie’s at 5 a.m. The driver of the vehicle in both videos was a person wearing dark colored clothing, consistent with the clothing Billie was reportedly wearing. Video surveillance recorded a person in light colored clothing driving Billie’s car exit the base at approximately 5:33 a.m. At approximately 5:44 a.m., residential video surveillance recorded a person wearing light colored clothing driving a car consistent with Billie’s stop at a construction dumpster in Norfolk. A few hours later, construction workers found Billie’s cell phone in the dumpster.
According to court documents, Billie’s car was found in Norfolk on September 23. Inside of the car, agents recovered Billie’s pants, which contained dirt and debris, consistent with being removed while outside and on the ground. The undercarriage of the car also contained dirt and vegetative debris, consistent with being driven off-road. During interviews conducted on or about September 30, several witnesses described seeing a car like Billie’s during the week of September 18 parked at various locations in Charlotte neighborhoods near to where Billie’s body was found. The property on which the body was found is owned by and located next to the church where Brown attended vacation Bible school as a child.
A detailed review of Brown’s wireless internet usage data indicates that Brown used his mobile devices nearly every day from September 1 to September 29. The only day in that time period that there was no usage data is September 18, which is the day Billie went missing.
Further, the review of Brown’s wireless internet usage data indicates that he was on base from September 14 until late in the evening of September 17, which is when all usage data ceased until starting again on September 19. A review of security camera video from all of the gates on the base revealed no evidence of Brown ever leaving the base from September 14 through September 18. A records check of base entry logs indicate that Brown reentered Joint Expeditionary Base Little Creek on the afternoon of September 19.
A review of Brown’s phone’s web history indicates that when Brown first initiated web activity on September 19, he made numerous searches of Norfolk news to include “police looking for man,” “Norfolk police looking for man in connection with homicide,” “amber alert sept 2017,” “missing woman and baby,” and “missing woman and man.” Additionally, Brown searched for information on Charlotte news websites on September 21, which was eight days before the victim’s body was recovered by law enforcement. And on September 22, Brown entered searches for “JEB Little Creek Blimpies” and a search regarding parents of a missing college student.
During an interview with law enforcement on October 27, Brown told agents he was on Joint Expeditionary Base Little Creek on the evening of September 17, and that at one point he blacked out and had no recollection of what he did for several days after that. When discussing the abduction and murder of Billie, Brown confirmed that he could not remember if he did anything to Billie.
Billie’s body and clothing were processed for evidence and on two separate articles of clothing an unknown male DNA profile was identified. The first male DNA profile was obtained from a swab of the pocket openings of Billie’s hooded sweatshirt found on her body in Charlotte. This DNA profile was compared to a buccal swab of Brown. The male DNA profile from the hooded sweatshirt was consistent with the DNA profile of Brown, and the probability of this DNA profile belonging to any other person is 1 in 2.7 quadrillion. The second male DNA profile was obtained from a swab of the outside, back center torso area of Billie’s shirt, also found on her body in Charlotte. This DNA profile was also compared with a buccal swab of Brown. The male DNA profile from the shirt was consistent with the DNA profile of Brown, and the probability of this DNA profile belonging to any other person is 1 in 720 billion.
Brown has been charged with kidnapping and faces a maximum penalty of life in prison if convicted. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Martin Culbreath, Special Agent in Charge of the FBI’s Norfolk Field Office, John A. Strong, Special Agent in Charge of the FBI’s Charlotte Field Office, Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, Larry D. Boone, Chief of Norfolk Police, James A. Cervera, Chief of Virginia Beach Police, and Kerr Putney, Chief of Charlotte-Mecklenberg Police, made the announcement. Assistant U.S. Attorneys Kevin M. Comstock and Randy C. Stoker are prosecuting the case.
The U.S. Navy provided significant assistance with this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-mj-562.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Parking Lot Operator Arrested for Allegedly Failing to Pay Dept. of Veteran’s Affairs at least $11 Million while Paying Bribes to VA OfficialRead the Press Release
LOS ANGELES – The owner of a business that operated parking lots was arrested this morning after being charged with bilking the U.S. Department of Veteran’s Affairs out of more than $11 million that should have been paid in relation to a contract to operate parking facilities on the VA’s Los Angeles medical campuses.
Richard Scott, 58, the owner of Westside Services LLC (WSS), was arrested without incident this morning at his Santa Monica residence.
The arrest was made pursuant to a criminal complaint filed on November that charges Scott with major fraud against the United States. Scott is expected to make his first court appearance this afternoon in United States District Court in downtown Los Angeles.
An FBI agent described the fraud in a 103-page affidavit filed in support of the criminal complaint. As outlined in the affidavit, Scott obtained a contract to operate parking lots on the campuses of the VA Greater Los Angeles Healthcare System (VA GLAHS) and soon after began defrauding the VA by failing to properly report income and expenses. The vast majority of the activity authorized under the contract took place at the West Los Angeles VA Medical Center near Westwood.
For approximately the past 15 years, Scott has had a contract with the VA that required him to provide the VA with 60 percent of the gross revenues from the parking lots, according to the affidavit. In order to determine these amounts, Scott was required to submit annual reports detailing revenue generated by parking fees, as well as improvements and services his company provided that could be used to offset payments due to the VA.
The investigation determined that Scott maintained at least two sets of financial books, according to the affidavit. The numbers reported to the VA contained false revenue and expense statements, while a second set of books maintained by Scott’s bookkeeper/tax preparer contained the actual revenues and expenditures, except for unreported cash.
“The investigation has revealed that Scott underreported revenue to the VA by a minimum of $4,689,081 and over-reported expenses to the VA by a minimum of $8,219,762, which caused a direct loss to the VA of $11,397,779,” according to the affidavit. The court document notes that the amount of unreported revenue is likely greater because cash generated from parking during UCLA baseball games and other events – which potentially totals more than $1 million – also was not reported to the VA.
As part of the scheme to defraud the VA, Scott allegedly began bribing the VA contracting official responsible for overseeing the contract in 2003 and continued to bribe him on a regular basis until the official abruptly retired in 2014 after he was confronted by federal agents. According to the affidavit, Scott continued making payments to the retired VA official to continue the scheme and attempt to avoid termination of his parking contract.
As a result of the long-running scheme to defraud the VA, Scott amassed considerable wealth, including three $2.5 million condominiums in Santa Monica, numerous high-end collectible cars, a Cigarette Top Gun racing boat that is docked in Miami, and brokerage accounts, according to the affidavit. Between 2003 and 2016, Scott allegedly used WSS business bank accounts to pay for approximately $740,000 in travel, $413,000 in meals and entertainment, his salary of $3.1 million, and numerous personal expenses and owner’s draws. The affidavit states, “The travel and meal/entertainment expenses are especially suspicious because the business of WSS consisted of overseeing parking lots at the VA GLAHS, only two of which were regularly staffed, which did not require any travel beyond the few mile area” around the VA’s West Los Angeles campus.
This morning, pursuant to court orders, federal authorities are moving to seize Scott’s assets, including the racing boat and vehicles that include three Ferraris, a 1969 Corvette L88, two high-end Mercedes-Benzes and a Shelby Super Snake Mustang.
The former VA contracting official began cooperating with the federal investigation in May, according to the affidavit, which states that the retired VA official admitted he participated in the bribery scheme and knew Scott was underreporting revenue and inflating expenses reported to the VA. Furthermore, the former VA official said that Scott used proceeds from cash parking events to pay the official. During an interview earlier this year recounted in the affidavit, the former official said, “He [Scott] was definitely bribing me and I was definitely looking the other way.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If Scott were to be convicted of the charge of committing a major fraud against the United States, he would face a statutory maximum sentence of 10 years in federal prison.
The VA contract with WSS was terminated early this year after the VA settled a lawsuit that challenged the VA’s use of its West Los Angeles campus for any purposes not specifically related to the care and housing of veterans. However, pursuant to the agreement, WSS will continue to operate the parking lots until January.
The case against Scott is part of an ongoing investigation being conducted by the United States Department of Veterans Affairs, Office of Inspector General; the Federal Bureau of Investigation; and IRS Criminal Investigation.
The prosecution of Scott is being handled by Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section.
Panama City Man Sentenced to 144 Months in Prison for a Methamphetamine chargeRead the Press Release
PENSACOLA, FLORIDA – Joshua Ray Fountain, 40, of Panama City, Florida, was sentenced today to serve a total term of 144 months in prison after pleading guilty to possessing with intent to distribute over five grams of methamphetamine, and admitting to violating the terms of his federal supervised release by possessing the methamphetamine while on federal supervision. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Documents introduced at the time of the guilty plea reflect that Joshua Ray Fountain was serving a five-year term of federal supervised release following his 150-month term of incarceration in federal prison for the offense of possession with intent to distribute over fifty grams of methamphetamine. On May 2, 2017, while on federal supervised release for the previous federal drug violation, Walton County Sheriff’s Deputies and Drug Enforcement Administration officials found Fountain in possession of over 25 grams of methamphetamine.
The case resulted from an investigation by the Drug Enforcement Administration and the Walton County Sheriff’s Office. It was prosecuted by Assistant United States Attorney J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida . For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Owner of Defense Contracting Firm Sentenced to 5 Years in Prison for Paying Bribes to Civilian Employee at Aberdeen Proving GroundRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On November 7, 2017, United States District Judge Richard D. Bennett sentenced Rainier Ramos, age 50, of Bel Air, Maryland, to two years in prison, including a 12-month period of home confinement, followed by three years of supervised release for bribery in connection with his duties at the U.S. Army Public Health Command at Aberdeen Proving Ground. Judge Bennett also ordered Ramos to pay a money judgment of at least $33,000, and pay restitution in the full amount of the victim’s losses, $2,215,779.
Co-conspirator Bhupesh Wadhawan, age 40, of Ashburn, Virginia, previously pleaded guilty and was sentenced to five years in prison for his role in the conspiracy. Judge Bennett also ordered Wadhawan to pay $2,215,779 in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
Ramos was a civilian information technology professional at the U.S. Army Public Health Command at Aberdeen Proving Ground (APG). Co-conspirator Bhupesh Wadhawan was the owner and Chief Executive Officer (CEO) of Link Solutions, Inc. (“LSI”), an information technology company headquartered in McLean, Virginia.
Bhupesh Wadhawan, was the owner and Chief Executive Officer (CEO) of Link Solutions, Inc. (“LSI”) an information technology company headquartered in McLean, Virginia. The Defendant founded LSI in December 2006.
Beginning in September 2009, Ramos and Wadhawan engaged in a course of conduct that consisted of Wadhawan offering, promising and ultimately giving and Ramos soliciting and accepting a stream of benefits, worth approximately $33,000 in the form of meals and drinks, rounds of golf and tickets to sporting events, including courtside seats to Washington Wizards basketball games, football tickets and access to the LSI luxury suite for Washington Redskins football games at FedEx field, tickets to see the New Orleans Saints play at the Mercedes Benz Superdome in New Orleans, tickets to see the New Orleans Hornets basketball team in New Orleans, Louisiana, gift cards and other things of value in exchange for Ramos’s favorable treatment of Wadhawan’s business interests in contracting with the United States, as opportunities arose, in relation to contract number W81XWH-11-R-0348 in violation of Ramos’s lawful duty to the U.S. Army Public Health Command.
In early 2010, the Wadhawan expressed to Ramos his interest in a high value IT contract the award of which, as the Defendant knew, Ramos had the ability to influence. That contract, the Agency Information Technology Services Support (AITSS) contract, was held by CSC Corporation in Fall 2009 but was ultimately re-competed as contract number W81XWH-11-R-0348 (hereafter the “MEDCOM” contract) with a value of $10,000,000 in the base year and the option to extend for 4 more years, for a total value of more than $50,000,000.
In exchange for bribes from Wadhawan, Ramos sought contracting opportunities at APG in the spring and summer of 2010, that would allow LSI to develop a track record of performance, in order to increase the likelihood that the company would be awarded the MEDCOM contract when it was re-competed in 2011. Ramos admitted that he took the following actions in exchange for bribes: influenced the award of a contract to LSI to deploy and configure 70 desktop and laptop computers at APG; recommended that the MEDCOM contract be reserved for companies that were part of the U.S. Small Business Administration 8(a) program, - a significant benefit to LSI as a certified 8(a) business.
After the award of this contract, the Wadhawan advocated for and Ramos recommended that a portion of the AITSS contract that had previously been awarded to CSC Corporation be reserved for companies that were part of the U.S. Small Business Administration 8(a) program. LSI was a certified 8(a) company and, as a result, would be in an enhanced competitive position if the work that had previously been part of the CSC contract was restricted to 8(a) companies, which CSC was not. Ultimately, in exchange for things of value provided by Wadhawan, Ramos influenced the decision to restrict the MEDCOM contract to 8(a) companies, which was a significant benefit to LSI.
After the decision was made to restrict the former CSC contract to 8(a) entities. Ramos, in exchange for things of value provided by the Wadhawan, introduced Wadhawan to various potential teaming partners that Ramos and the Defendant believed would increase the likelihood that LSI would be awarded the MEDCOM contract.
Ramos also provided Wadhawan with the winning proposal of the previous contractor on the MEDCOM contract, including pricing data, which was sensitive, proprietary information; and helped write the Statement of Work for the MEDCOM contract to increase the likelihood that LSI would be awarded that contract.
Ramos also included in the Statement of Work for the MEDCOM contract two certifications that Ramos knew LSI had and, thus, increased the likelihood that LSI would be awarded the MEDCOM contract.
On or about November 2, 2010, a Manager of Client Services with the Washington Redskins sent another Redskins employee an email with the subject line, “Barry Kane will be in Bhupesh Wadhawan (Link Solution) suite for the Philadelphia game (see note).” The body of the email contained the following, “army-public health command….one of the customers which is $10 million a year annually to him the CIO is coming to the suite for the Philly game…” (emphasis added)
On May 20, 2010, in an email to Wadhawan, Ramos stated, “If there’s any way you can pull off a miracle and switch the 10 Eagles/Skins tickets you have already acquired for 10 Skins/Cowboys tickets, I’ll owe you some serious 8A business. . . . Thanks again for EVERYTHING.” (emphasis added)
In August 2011, the solicitation for the MEDCOM contract was issued, and Ramos was selected as the Chairman of the Source Selection Board. In early 2012, Ramos recommended that the contract be awarded to LSI.
After LSI was awarded the contract, Ramos approved invoices submitted by the Company under the contract. As of July 2016, LSI has been paid almost $37 million by the U.S. government for invoices submitted under the MEDCOM contract.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys= Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
Acting United States Attorney Stephen M. Schenning commended the FBI, Army CID, and DCIS for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Leo J. Wise, who prosecuted the case.
Oakland Man Pleads Guilty to Conspiracy to Alter U.S. Postal Money OrdersRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DARREN BRANDON WILLIAMS, age 29, of Oakland, California, pleaded guilty today to conspiracy to alter U.S. Postal money orders.
According to the court records, WILLIAMS conspired with others in the New Orleans area to buy U.S. Postal money orders in small amounts (typically $1.00). These money orders were sent out of state where they were altered to much higher amounts. WILLIAMS, working with other conspirators, then enlisted individuals to deposit the altered U.S. Postal money orders into local bank accounts. Once the money orders cleared, the funds were withdrawn and split by WILLIAMS and the conspirators.
WILLIAMS faces up to five years imprisonment, a fine of up to $250,000, up to three years of supervised release following any term of imprisonment, and $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for February 21, 2018.
Acting U. S. Attorney Evans praised the investigative work of the United States Postal Inspector Office for its handling of the matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
Nine Aliens Indicted on Illegal Reentry Charges, False Representation of a Social Security Account Number, and Aggravated Identity TheftRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging JOSE RAUDILIO ACOSTA-HERNANDEZ, age 28, of Honduras, SAUL CISNEROS-FRANCO, age 52, of Mexico, AGRIPINO CRISOSTOMO-LOPEZ, age 38, of Guatemala, JORGE GOMEZ-PEREZ, age 48, of Mexico, JOSE QUINVERO, age 36, of El Salvador, MARIO SANTANA, age 29, of Mexico, JOSE CARMEN SOTO, age 44, of Mexico, and VICTORIANO VALENZUELA-ROJAS, with Illegal Reentry of a Deported Alien.
Additionally, a federal grand jury in Raleigh has returned an indictment charging MARIA ASUNCION LUCAS-MENDEZ, age 31, of Guatemala, with False Representation of a Social Security Account Number, and Aggravated Identity Theft.
If convicted of Illegal Reentry of a Deported Alien, ACOSTA-HERNANDEZ, found in Robeson County, CRISOSTOMO-LOPEZ, found in Pitt County, GOMEZ-PEREZ, found in Pender County, QUINVERO, found in Wake County, SANTANA, found in Sampson County, SOTO, found in Harnett County, and VALENZUELA-ROJAS, found in Duplin County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
CISNEROS-FRANCO, found in Wilson County, is alleged to have been previously deported subsequent to aggravated felony convictions (trafficking in a controlled substance and illegal reentry of an aggravated felon). Therefore, if convicted, he would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of False Representation of a Social Security Account Number and Aggravated Identity Theft, LUCAS-MENDEZ, found in Wayne County, would face maximum penalties of seven years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations, and Homeland Security Investigations.
Niagara Falls Man Pleads Guilty to Heroin ChargeRead 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 Shaquan M. Shingledecker, 25, of Niagara Falls, NY, pleaded guilty to possession with intent to distribute heroin before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that on February 2, 2017, New York State Troopers attempted to conduct a traffic stop of the defendant for a missing front license plate. Shingledecker did not pull over, but instead lead police on a high-speed chase at over 95 miles per hour through commercial and residential sections of Niagara Falls. The defendant lost control of his vehicle and crashed into the side of a house located at the intersection of Girard Avenue and 75th Street in Niagara Falls.
At the accident scene, police found 95 glassine envelopes containing heroin, a loaded Ruger handgun with 10 rounds of ammunition, and $1,439.08 in United States currency in Shingledecker’s vehicle.
Today’s plea is the result of an investigation by the New York State Police, under the direction of Major Edward Kennedy; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; and the Niagara Falls Police Department, under the direction of Superintendent Bryan DalPorto.
Sentencing is scheduled for February 15, 2018, at 8:30 a.m. before Judge Wolford.
New York Doctor Sentenced to 33 Months in Prison for Role in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – An internal medicine doctor practicing in Staten Island, New York, was sentenced today to 33 months in prison for taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
Ahmed El Soury, 45, of Monmouth Junction, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to Count One of an indictment charging him with conspiracy to violate the Anti-Kickback Statute, the Federal Travel Act, and the honest services wire fraud statute. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
El Soury admitted accepting cash bribes in return for referring patient blood specimens to BLS. From March 2011 through April 2013, El Soury received bribes totaling more than $66,000 from BLS employees and associates. El Soury’s referrals generated approximately $650,000 in lab business for BLS.
The investigation has thus far resulted in 51 convictions – 37 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $13 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
In addition to the prison term, Judge Chesler sentenced El Soury to three years of supervised release and fined him $7,500.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph W. Cronin; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
The New Jersey U.S. Attorney’s Office reorganized its health care fraud practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.37 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Albert Dayan Esq., Kew Gardens, New York