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3 November 2017
Huntington man pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who received a shipment of heroin in the mail in December 2016 pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. David Lee Zirkle, 36, entered his guilty plea to possession with the intent to distribute heroin.
On December 9, 2016, officers were notified that a package suspected of containing controlled substances was scheduled for delivery to a residence at 2422 Collis Avenue in Huntington. A West Virginia State Police K-9 officer gave a positive indication that the package contained drugs, and a search warrant was obtained for the package. Law enforcement found approximately 30 grams of heroin inside the package. Investigators then removed the heroin, replaced it with a representative quantity of heroin, and then conducted a delivery of the package utilizing an undercover postal inspector. Zirkle accepted delivery and took possession of the package at the Collis Avenue address. A search warrant was then executed at that residence, and upon entry, officers located Zirkle with the envelope containing the sample of drugs in his hand. Officers also discovered digital scales and cash in the residence.
Zirkle faces up to 20 years in federal prison when he is sentenced on February 5, 2018.
The United States Postal Inspection Service and the West Virginia State Police Bureau of Criminal Investigations, Ona Division, conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Honduran National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Honduran national charged with a federal immigration crime pleaded guilty and was sentenced today in federal court in Boston.
Yener Jacobo Sabillon-Thompson, 32, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Denise J. Casper sentenced Sabillon-Thompson to time served (approximately seven months) and one year of supervised release. Sabillon-Thompson will be subject to deportation proceedings.
In September 2017, Sabillon-Thompson was encountered by law enforcement officers in Boston and determined to be illegally present in the United States. Sabillon-Thompson was previously deported four times.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
Hershey Man Pleads Guilty to Bankruptcy FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Jay Jackson, age 57, of Hershey, Pennsylvania pleaded guilty today before U.S. Magistrate Judge Martin C. Carlson to bankruptcy fraud related charges.
According to United States Attorney Bruce D. Brandler, Jackson was charged in an indictment in February 2017 with 12 counts of wire fraud, five counts of bankruptcy fraud, nine counts of false bankruptcy declarations, and two counts of aggravated identity theft. Jackson pleaded guilty to all 28 counts of the indictment.
Jackson admitted he defrauded his creditors, the Bankruptcy Court for the Middle District of PA, and his wife, by filing seven Chapter 13 and 11 bankruptcy petitions, five of which were filed under Jackson’s name and two of which were filed under his wife’s name without her knowledge. The petitions contained false information regarding Jackson’s income, assets, and employment, and were filed in order to postpone multiple Sheriff’s sales of his Hershey residence.
Jackson filed the last two petitions on June 3, 2015, and January 19, 2017, under his wife’s name without her knowledge after the Bankruptcy Court barred Jackson from filing any further petitions for two years on May 28, 2015.
The case was investigated by the Harrisburg Offices of the Internal Revenue Service, Criminal Investigation Division and the Federal Bureau of Investigation. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Wire fraud is punishable by up to 20 years’ imprisonment. Bankruptcy fraud and false statements in Bankruptcy matters both carry a five-year statutory maximum. Aggravated identity theft carries a mandatory two-year consecutive sentence.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrison County woman admits to methamphetamine chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Crystal Michelle Haggarty, 34, of Bridgeport, West Virginia, admitted to her role in a methamphetamine distribution operation, United States Attorney William J. Powell announced.
Haggarty pled guilty to one count of “Distribution of Methamphetamine.” She admitted to distributing crystal meth in May 2017 in Harrison County.
Haggarty faces up to 20 years and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department are investigating.
U.S. Magistrate Judge Michael John Aloi presided.
Gardner Men Arrested on Federal Firearms ChargesRead the Press Release
BOSTON – Two Gardner men were arrested today and charged in federal court in Worcester with firearms offenses.
Travis Miller, 29, and Edwin Labaw, 33, were each charged with one count of being a felon in possession of firearms. Miller and Labaw appeared before Magistrate Judge David H. Hennessy this afternoon.
According to the charging document, Miller had indicated to a government cooperating source that he had access to, and could sell, firearms, silencers and pipe bombs. In September 2017, Miller sent Facebook messages to the cooperating source regarding the potential sale of a double-barrel 12-gauge shotgun and a 9mm rifle, as well as ammunition for the shotgun. On Sept. 19, 2017, Miller and Labaw met with the cooperating source and an undercover agent in Gardner and sold them a double-barrel 12-gauge shotgun, a 9mm Kel-Tech Sub 2000 rifle, and 11 rounds of 12-gauge shotgun ammunition for $1,200.
It is further alleged that Miller subsequently communicated with the cooperating source on Facebook regarding the potential sale of an AK-47 style rifle. On Sept. 27, 2017, the cooperating source and an undercover agent met Miller, Labaw, and a third individual in Fitchburg to purchase a 7.62x39mm caliber SKS rifle, along with ammunition and magazines, for $1,800.
According to court documents, both Miller and Labaw each have prior felony convictions and are therefore prohibited from possessing firearms.
Each defendant faces a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. This case was investigated with assistance from the Massachusetts State Police and the Worcester, Gardner, and Fitchburg Police Departments. Assistant U.S. Attorney Bill Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Franklin LSD Dealer Sentenced to Six Years in PrisonRead the Press Release
NORFOLK, Va. – A Franklin man was sentenced today to 76 months in prison for possession with intent to distribute lysergic acid diethylamide (LSD) and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, Taylor Beale, 23, sold LSD to an undercover Franklin Police detective on three occasions in September 2016. Beale brought a handgun to one of these drug deals and showed it to the undercover Franklin detective. On a fourth occasion in September 2016, Beale was also stopped by Virginia State Police Meherrin Drug Task Force Officers and found to be in possession of twenty dosage units of LSD and a handgun. When Beale was arrested, he admitted that he had previously robbed another LSD dealer at gunpoint. In addition to the 76 month sentence, the court also ordered the forfeiture of Beale’s car, and two guns Beale brought to LSD deals.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, Phillip M. Hardison, Chief of the Franklin Police Department, and Colonel W. Steven Flaherty, Superintendent of the Virginia State Police, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Kevin Hudson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-100.
Former U.S. Postal Service Employee Charged with EmbezzlementRead the Press Release
BOSTON – A former U.S. Postal Service (USPS) employee was arrested today and charged in connection with embezzling over $22,000.
Dennis Reis, 37, of Taunton, was charged in an indictment with one count of embezzlement and theft of public money, property or records. Reis will appear in federal court in Boston this afternoon.
According to the indictment, Reis was employed by the USPS since approximately 2000, and was the Lead Sales & Service Associate at the East Taunton Post Office since 2014. In that capacity, Reis sold stamps to customers and maintained accountability for the funds and stamp stock. From January 2015 to March 2017, Reis engaged in a scheme to embezzle funds by voiding cash transaction sales of stamps so that the system did not account for the cash paid by customers. Reis then entered a “no sale” transaction into the system, causing the cash drawer to open and taking the cash paid by customers for his own use. Through this scheme, Reis embezzled at least $22,773 from the USPS.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Eileen Neff, Special Agent in Charge of the United States Postal Service, Office of Inspector General, Northeast Area Office, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Weinreb’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Fergus Falls High School Teacher Sentenced to 60 Months in Prison for Distributing Child PornographyRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of JOSHUA NOBLE, 39, to 60 months in federal prison for distributing child pornography through online chatrooms. NOBLE was charged by felony information on April 17, 2017, and pleaded guilty on June 29, 2017, to one count of distribution of child pornography. NOBLE was sentenced yesterday before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, NOBLE was a substitute teacher in Fergus Falls, Minn. for approximately 15 years. On March 4, 2016, undercover law enforcement officers observed NOBLE using an internet-based messaging service called Chatstep.com to obtain and distribute images depicting the sexual abuse of children. Noble possessed at least 244 such images, including depictions of prepubescent children under 12 years of age and infants and toddlers.
This case resulted from an investigation conducted by Homeland Security Investigations-Grand Forks and Washington, D.C.
Assistant U.S. Attorney Miranda E. Dugi prosecuted the case.
This case is part of Project Safe Childhood (PSC), 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals resources to locate, apprehend, and prosecute individuals who sexually exploit children while identifying and rescuing victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
Defendant Information:
JOSHUA NOBLE, 39
Fergus Falls, Minn.
Convicted:
- Distribution of child pornography, 1 count
Sentenced:- 60 months in prison
- 10 year term of supervised release
- $26,000 in restitution
- $5,000 special assessment paid to the Domestic Trafficking Victims Fund
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United States Attorney’s Office, District of Minnesota: (612) 664-5600Former FAA Aviation Safety Inspector and Owners of Miami Aviation Repair Company Charged in Bribery SchemeRead the Press Release
A former FAA Aviation Safety Inspector and the co-owner of a South Florida aviation repair company, AVCOM Avionics and Instruments Inc., were charged with various offenses in connection with bribery scheme during 2010-2013. To date, the other co-owner of AVCOM Avionics and Instruments Inc. has also been convicted and sentenced in connection with the ongoing investigation.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Marlies T. Gonzalez, Regional Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General (DOT-OIG), and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Patricia Suarez, a/k/a “Patricia Bailly,” a/k/a “Patricia Del Castillo,” 49, of Coral Gables, was charged by indictment with one count of conspiracy to commit bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1)(C) and (b)(2)(C), and fifteen counts of bribery, in violation of Title 18, United States Code, Section 201(b)(1)(C). If convicted, Patricia Suarez faces a maximum statutory sentence of five years’ imprisonment for the conspiracy count and fifteen years’ imprisonment each for the bribery counts, as well as a fine up to $250,000 or triple the bribery proceeds.
Manuel R. Fernandez, 40, of Miami, was charged by indictment with one count of conspiracy to commit bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1)(C) and (b)(2)(C); fifteen counts of bribery, in violation of Title 18, United States Code, Section 201(b)(2)(C); one count of providing false statements to a federal agency, in violation Title 18, United States Code, Section 1001(a)(2); two counts of wire fraud, in violation Title 18, United States Code, Section 1343; and two counts of aggravated identity theft, in violation Title 18, United States Code, Section 1028A. If convicted, Fernandez faces a maximum statutory sentence of five years’ imprisonment for the conspiracy count, fifteen years’ imprisonment each for the bribery counts, five years’ imprisonment for the false statements count, twenty years’ imprisonment for each wire fraud count, and a two-year consecutive mandatory minimum sentence for the aggravated identity theft counts, as well as a fine up to $250,000 or triple the bribery proceeds.
Rolando Suarez, 56, of Coral Gables, pled guilty to conspiracy to commit bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1)(C). Rolando Suarez was sentenced to 24 months’ imprisonment and a $20,000 fine. Rolando Suarez also agreed to pay approximately $711,940 in joint and several restitution in relation to the bribery scheme.
Acting U.S. Attorney Benjamin G. Greenberg stated, “The Suarez’s, through their company, paid tens of thousands of dollars in bribes to Fernandez, an FAA Aviation Inspector, for the sake of minimizing the cost of doing business, gaining inside information on its competitors, and maximizing profits. This indictment represents our joint efforts to ensure that businesses compete on a level playing field, without improper outside influences or the payment or receipt of bribes.”
“This investigation of alleged bribery demonstrates that those entrusted with ensuring the safety our aviation system are held to the highest standards of integrity in the roles for which they are employed,” said Marlies T. Gonzalez, Regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General (DOT OIG). “The Department of Transportation has made safety and accountability a top priority. Working with our law enforcement and prosecutorial partners, we will continue our vigorous efforts to prevent, detect and prosecute fraud schemes that compromise the safety of the traveling public.”
“When those entrusted with aviation system safety put self-interest and personal enrichment ahead of their obligation, they breach the public's trust,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “We encourage anyone who may have information about corruption to come forward and report it. This information is vital to our work. The South Florida community can be assured that public corruption will remain a top priority for the FBI.”
According to the indictment, from 2010 through June 28, 2013, Fernandez served as a FAA Aviation Safety Inspector with the FAA South Florida Flight Standards District Office (“FSDO”). Patricia Suarez and Rolando Suarez were the co-owners, officers, and directors of AVCOM, a Miami aviation repair company, which was subject to the jurisdiction and official responsibility of the FAA South FSDO.
Patricia Suarez and Rolando Suarez corruptly provided thousands of dollars in cash, income, credit cards, vacation cruises, airline tickets, and other things of value to Fernandez, in exchange for Fernandez violating his lawful and official duties as an FAA Aviation Safety Inspector. In violation of his lawful and official duties, Fernandez provided AVCOM with improperly obtained aviation repair manuals, which saved AVCOM vast sums of money. Fernandez assisted AVCOM in altering and erasing language, warnings, and advisories from the manuals that indicated confidential, proprietary, copyrighted, and trade secret material. Fernandez also provided AVCOM with notice and warnings as to FAA inspections and investigations regarding AVCOM and its competitors, disclosed to AVCOM sensitive and confidential information regarding AVCOM’s competitors, and concealed and failed to report AVCOM legal, regulatory, and policy violations to the FAA.
In addition to cash payments, in order to funnel additional money to Fernandez, Patricia Suarez and Rolando Suarez submitted documents to AVCOM’s payroll provider establishing Fernandez’s relative as a no-show employee. In turn, Fernandez’s relative promptly provided these AVCOM funds directly to him. Patricia Suarez and Rolando Suarez also issued various company checks made out directly to Fernandez.
According to the indictment, Fernandez also provided materially false statements to the FAA and DOT in order to hide his AVCOM activities. Additionally, Fernandez electronically submitted fraudulent sick leave requests to the FAA, including utilizing a forged and fictitious doctor’s note.
Mr. Greenberg commended the investigative efforts of the DOT-OIG and the FBI Miami Area Corruption Task Force in this matter. This case is being prosecuted by Assistant U.S. Attorney Sean T. McLaughlin.
An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Compton Deputy Treasurer Sentenced to 78 months for Embezzlement of over $3.7 Million in City FundsRead the Press Release
SANTA ANA, California – The former deputy treasurer for the City of Compton was sentenced to six and a half years in federal prison on charges stemming from his embezzlement of more than $3.7 million of city funds over the course of six years.
Salvador Galvan, 47, of La Mirada, was sentenced by United States District Judge Josephine L. Staton, on one count of theft from an organization receiving federal funds.
According to court documents, when Galvan entered his guilty plea in July, 2017, he admitted that he stole $3,721,924 from the City of Compton from May 2010 through December 2016.
Galvan, who worked as the Deputy Treasurer in the Compton Treasurer’s Office for more than 20 years, was responsible for tallying the cash received by the city as payment for parking tickets, business licenses and other fees. After the cash was counted, Galvan prepared the money for deposit into a city bank account.
According to court records, Galvan skimmed cash from the daily receipts on numerous occasions, sometimes taking as much as $8,000 per day.
Galvan has agreed to forfeit to the government the remaining proceeds of his embezzlement, which includes cash and cars purchased with the stolen money. He was further ordered to pay restitution to the City of Compton of $3,721,924.
In conjunction with Galvan’s guilty plea, his wife – Rosa Maria Galvan – was also sentenced today on federal money laundering charges related to the embezzled funds. She was sentenced to three years’ probation, 12 months of home detention and 800 hours of community service. Rosa Galvan is jointly liable for the $3,721,924 in restitution.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Daniel O’Brien, Deputy Chief of the Public Corruption and Civil Rights Section, and Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section.
Former CFO of Insurance Brokerage Company Guilty of Embezzling $2 Million over A Two Year Period and Tax EvasionRead the Press Release
Money supported a family owned business, personal expenses and gambling activity
LOUISVILLE, Ky. – The former Chief Financial Officer of Market Finders Insurance Corporation, pleaded guilty in United States District Court yesterday afternoon, before Magistrate Judge Dave Whalin, to tax evasion and embezzling nearly $2,000,000 during a two year period announced United States Attorney Russell M. Coleman.
Sylvia Rebecca Smith, 63, of Louisville, was charged by Information with one count of wire fraud for devising an embezzlement scheme to obtain money from her employer, Market Finders Insurance Corporation (“Market Finders”) and then diverting those funds to PBS Insurance Underwriting Corporation, and two counts of failing to report embezzled funds as income on her tax returns. At the time, Smith was the bookkeeper for PBS Insurance and her husband was the sole owner.
According to the plea agreement, Smith admitted that from July of 2013 through April of 2015, while employed as CFO of Market Finders, she generated fraudulent loan checks from her employer and diverted it into the bank account of PBS.
Specifically, during the relevant time period, the defendant devised a scheme to embezzle funds from Market Finders and Market Finders Insurance Premium Budget Corp. (“Market Finders Premium Budget”), a subsidiary of Market Finders, by creating fraudulent insurance financing contracts between Market Finders Premium Budget and existing insurance clients of PBS Insurance without the knowledge of those existing clients. Smith admitted to manipulating the records so that her theft of funds would not be detected by her employer.
Smith admitted that she and her husband used a portion of the fraudulent loan proceeds to fund her husband’s business and to pay for personal expenses for herself and her husband and to pay for gambling activity.
Further, Smith used a portion of the proceeds to make payments on the previous loans she had falsely created from Market Finders Premium Budget. When the scheme was discovered by Market Finders and brought to an end, Smith had not repaid approximately $674,093.
Additionally, Smith admitted to failing to report approximately $258,504 in embezzled funds as income for tax year 2013 and omitted approximately $514,696 in embezzled funds as income for tax year 2014 on Form 1040 of the U.S. Individual Income Tax Return.
At sentencing, Smith agreed to pay $674,093 restitution and could be sentenced to no more than 26 years in prison. Smith was released from federal custody on a $25,000 bond and is scheduled for sentencing before Chief Judge Joseph H. McKinley, Jr. on February 5th, in Louisville.
This case is being prosecuted by Assistant United States Attorney Stephanie Zimdahl and is being investigated by the Louisville Metro Police Department, the Internal Revenue Service, and the Federal Bureau of Investigation.
smith_sylvia_information_11_3_17.pdfFormer CEO of Arthrocare Corporation Sentenced to 20 Years in Prison for Role in $750 Million Securities Fraud SchemeRead the Press Release
The former chief executive officer of ArthroCare Corporation, a publicly traded medical device company based in Austin, Texas, was sentenced today to 240 months in prison for his role in orchestrating a fraud scheme that resulted in shareholder losses of over $750 million.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field office made the announcement.
Michael Baker, 58, of Austin, Texas, was sentenced by U.S. District Judge Sam Sparks of the Western District of Texas, who also ordered Baker five years of supervised release following his prison sentence and to pay a fine in the amount of $1 million and to forfeit $13.7 million. At the sentencing hearing, the Court found that investors lost more than $750 million as a result of the fraud scheme. On Aug. 18, after a two-week re-trial, Baker was convicted of one count of conspiracy to commit wire fraud and securities fraud, seven counts of wire fraud, two counts of securities fraud and two counts of making false statements.
Evidence at trial showed that, beginning in 2005 and continuing until 2009, Baker, along with his co-conspirators, masterminded and executed a scheme to artificially inflate sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors. Baker, along with his co-conspirators, determined the type and amount of product to be shipped to distributors based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders. Baker and others then caused ArthroCare to “park” millions of dollars’ worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare reported these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.
The trial evidence further showed that ArthroCare’s distributors agreed to accept shipment of millions of dollars of products in exchange for special conditions, including substantial, upfront cash commissions, extended payment terms and the ability to return products, allowing ArthroCare to falsely inflate revenue by tens of millions of dollars. In the case of ArthroCare’s largest distributor, DiscoCare, Baker caused ArthroCare to acquire DiscoCare specifically to conceal from the investing public the nature and financial significance of ArthroCare’s relationship with DiscoCare. In addition to falsely inflating ArthroCare’s revenue, Baker lied when he was deposed by the U.S. Securities and Exchange Commission in November 2009 about ArthroCare’s relationship with DiscoCare, the evidence showed.
Baker’s earlier conviction was overturned by the U.S. Court of Appeals for the Fifth Circuit, resulting in the retrial. The sentence imposed on Baker today of 20 years imprisonment is identical to the sentence he received after his first trial.
Co-conspirators David Applegate and John Raffle, both former senior vice presidents of ArthroCare, pleaded guilty to multiple felonies in 2013 in connection with their participation in the scheme. Co-conspirator Michael Gluk, former chief financial officer of ArthroCare, pleaded guilty to conspiracy to commit wire and securities fraud on June 14, in connection with his participation in the scheme.
On Aug. 29, 2014, Raffle was sentenced to 80 months in prison. On Aug. 29, 2014, Applegate was sentenced to 60 months in prison. Gluk’s sentencing is scheduled for Jan. 5, 2018.
This case was investigated by the FBI’s San Antonio Field Office. The case is being prosecuted by Securities and Financial Fraud Unit Chief Benjamin D. Singer, Assistant Chief Henry P. Van Dyck and Trial Attorney Caitlin Cottingham of the Criminal Division’s Fraud Section.
Five Charged in Alleged Opioid Prescription, Healthcare Fraud SchemeRead the Press Release
PROVIDENCE – Five individuals have been charged by way of federal criminal complaints filed in U.S. District Court in Providence for their alleged participation in a conspiracy to create fraudulent prescriptions for opioid pills and, at times, unlawfully pay for the prescriptions with the use of medical insurance. It is alleged that often times the pills were distributed to others in return for cash payments.
Acting United States Attorney Stephen G. Dambruch and Jeffrey Ebersole Resident Agent in Charge, Food and Drug Administration Office of Criminal Investigations (FDA-OCI) announced the filing of criminal complaints charging Robert Rose, 51, David Rose, 58, and Tammy Bonham, 53, of Providence, Victoria Coccia-Rose, 28, of Pawtucket, and Michael Slonski, 47 of Johnston, with conspiracy to unlawfully acquire or obtain possession of a controlled substance by fraud, to distribute a controlled substance, to commit healthcare fraud and to commit aggravated identity theft.
Acting United States Attorney Stephen G. Dambruch said, “Earlier this week this office announced the arrest of more than two-dozen people who allegedly contributed to the addiction epidemic that is sweeping through Rhode Island by allegedly distributing hundreds of kilograms of fentanyl and cocaine. The arrests announced today highlight yet another scheme to profit from the addiction epidemic. Law enforcement on every level will continue to work together to identify, investigate, arrest and prosecute these traffickers and schemers.”
“Opioid addiction and the resulting overdoses and deaths are an enormous national crisis,” said Jeffrey J. Ebersole, Special Agent in Charge, FDA Office of Criminal Investigations’ New York Field Office. “Our office will continue to pursue and bring to justice those who distribute illegally obtained opioids from outside the legitimate supply chain and make them available to U.S. consumers.”
According to court documents, it is alleged that an investigation by members of the Rhode Island FDA-OIC task force determined that participants of the scheme manufactured fraudulent prescriptions utilizing the identities, Drug Enforcement Administration (DEA) identification numbers and signatures of medical practitioners without their consent. Prescriptions for varying amounts of oxycodone pills were written and presented to pharmacies by some members of the conspiracy and others working at the direction of the conspirators. It is alleged that the scheme often times included the fraudulent use of medical insurance to pay pharmacies for the illicit prescriptions. Most of the oxycodone pills gained with the use of fraudulent prescriptions were sold to others for distribution.
According to court documents, it is alleged that as part of the scheme, the alleged leader of the conspiracy, Robert Rose, paid for individuals’ identities, health care insurance information, and for various prescribing medical practitioners’ names and DEA numbers. Rose provided that information to another member of the conspiracy, along with special paper necessary to produce the fraudulent prescriptions. At times, it is alleged, Robert Rose ran the conspiracy while incarcerated at the Adult Correctional Institution.
Robert Rose made an initial appearance in U.S. District Court in Providence on Thursday and was released on unsecured bond. David Rose, Tammy Bonham and Michael Slonski made initial appearances in U.S. District Court on October 17, 2017, and were released on unsecured bond. Victoria Coccia-Rose made an initial appearance in U.S. District Court on October 18, 2017, and was released on unsecured bond.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the Rhode Island Food and Drug Administration-Office of Criminal Investigations task force, with the assistance of Social Security Administration, Office of Inspector General.
The Rhode Island Food and Drug Administration-Office of Criminal Investigations task force consists of investigators from FDA-OCI, Rhode Island State Police, East Providence Police, North Providence Police, Westerly Police, Drug Enforcement Administration, U.S. Postal Inspection Service and Homeland Security Investigations.
Additionally, Acting United States Attorney Stephen G. Dambruch and Jeffrey Ebersole, Resident Agent in Charge of FDA-OCI, thank the Office of Program Integrity, Executive Office of Rhode Island Health and Human Services for their assistance during this investigation.
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Federal Inmate Pleads Guilty to Escape ChargeRead the Press Release
CONCORD, N.H. – Eric Judkins, 34, formerly of Nashua, pleaded guilty in federal court to an escape charge, announced Acting United States Attorney John J. Farley.
According to court documents and statements made in court, Judkins received a 210-month federal prison sentence in 2000 for a bank robbery he committed in New Hampshire. While serving the sentence in a federal prison in Pennsylvania, Judkins pleaded guilty to assaulting an inmate and received an additional 27-month prison sentence.
On June 13, 2017, Judkins was transferred from a federal prison in Kentucky to the Hampshire House Residential Reentry Center in Manchester, with an expected release date of April 8, 2018. With permission from the Hampshire House staff, Judkins left the facility on August 28, 2017, and was required to return before 4:30 p.m. He failed to return as required. On August 31, 2017, Judkins was arrested by Deputy United States Marshals and local law enforcement officers in Howard, Pennsylvania.
Judkins will be sentenced on February 13, 2018.
The case was investigated by the United States Marshals Service and is being prosecuted by Assistant U.S. Attorney Robert M. Kinsella.
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ECI Correctional Officer Sentenced to 46 Months in Federal Prison for Racketeering ConspiracyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District James K. Bredar has sentenced Xavier Holden, age 28, of Salisbury, Maryland to 46 months in prison followed by 3 years of supervised release for his role in a racketeering conspiracy. Holden is one 80 defendants who were charged in two separate indictments for a racketeering conspiracy operating at the Eastern Correctional Institution in Westover, Maryland. The indictments charge 18 correctional officers (COs), 35 inmates and 27 outside “facilitators,” for their roles in the conspiracy, which involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison.
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; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
As of today’s sentencing, 66 of the 80 defendants originally indicted have pled guilty, including 12 of the 18 correctional officers who were charged. Chief Judge Bredar has sentenced all defendants who have appeared before him to date to a term of imprisonment, including the following inmates and facilitators. Today’s sentencing is the first sentencing of a correctional officer:
Inmates:
Shawn Benbow: 46 months
Joseph Branch: 42 months
Jamar Hutt: 41 months
Samuel Johnson: 29 months
Mark Lance: 27 months
Michael Page: 46 months
Kevin Stanley: 27 months
Kevin Thompson: 57 months
Ramel Chase: 33 months
Stewart Gough: 50 months
Deven Matos: 41 months
Facilitators:
Reggie Fosque: 24 months
Markayla Reynolds: 1 year + 1 day
Keisha Barksdale: 1 year + 1 day
Antoine Gray: 24 months
Elvia Hall: 21 months
Marcus Lisbon: 65 months
Rose Thomas: 21 months
Holden joined the Maryland Department of Public Safety and Correctional Services on October 22, 2012 and was assigned to Housing Unit 1.
COs have a duty to further the legitimate purposes of ECI by ensuring that inmates follow the rules enacted for their health and safety and the health and safety of prison employees and the larger community, including, most importantly, the prohibition of criminal activity while incarcerated. The Defendant abused his position of trust as sworn officer of DPSCS by engaging in illegal activities for the purposes of enriching himself.
As a CO, Holden received annual training in ethics and professionalism. COs were taught that: Inappropriate relationships with inmates can include bribery, conflicts of interest, solicitation and acceptance of gifts, the offering of gifts, favors and services to inmates, ex-inmates, relatives of inmates, improper contact or failure to report contact with inmates, ex-inmates, relatives or friends and the appearance of inappropriate relationships.
According to the Correctional Officer’s Handbook: “The illegal possession and/or use of any controlled substance and/or controlled paraphernalia while on or off duty is strictly prohibited. . . . An employee may not possess or convey contraband into an institution or onto institutional property.”
Holden smuggled contraband into ECI in exchange for bribes from inmates. Holden delivered tobacco and K2 two times a week between August 2014 and June 2015 to co-defendant Samuel Johnson and another inmate associated with Johnson. Holden also smuggled contraband into ECI in exchange for bribes from inmate and co-defendant Ramel Chase.
Acting United States Attorney Stephen M. Schenning commended the FBI, U.S. Postal Inspection Service, Department of Public Safety and Correctional Services, the Baltimore Police Department and Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who prosecuted the case.
Dominican National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Worcester to a federal immigration charge.
Wellington Eustate, 35, pleaded guilty to one count of unlawful reentry of a deported alien before U.S. District Court Judge Timothy S. Hillman. Sentencing is scheduled for Jan 25, 2018.
In October 2016, Eustate was encountered by law enforcement officers in Holden who determined that he was illegally present in the United States. Eustate was previously deported on Nov. 5, 2013.
Eustate faces a sentence of no greater than 10 years in prison, up to three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
Dominican National Pleads Guilty to Heroin and Fentanyl ConspiracyRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to his role in a heroin and fentanyl trafficking organization that operated in Taunton and Boston.
Ernesto Jossiel Paredes-Lugo, also known as Juan Morales-Ortiz, 28, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl. In February 2017, Morales-Ortiz was arrested and charged along with 22 other co-defendants. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 25, 2018.
From mid-2016 through February 2017, federal law enforcement investigated two drug trafficking organizations operating in Taunton and Boston led by Jose Antonio Lugo-Guerrero, 32, a Dominican national, and Fernando Hernandez, 42, a Dominican national residing in Providence, R.I. Hernandez allegedly ran a heroin and fentanyl trafficking organization in Taunton. The organization sold heroin and fentanyl to customers who re-distributed a portion of the drugs they obtained. It is alleged that Hernandez obtained drugs from a network of suppliers that included Lugo-Guerrero.
Lugo-Guerrero allegedly operated a drug trafficking organization in Fall River and Boston, assisted by others, including Paredes-Lugo, who sold to numerous customers. It is further alleged that Lugo-Guerrero and his associates obtained a significant quantity of illegal drugs by robbing other drug traffickers.
The conspiracy charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Fall River Police Chief Daniel S. Racine; New Bedford Police Chief Joseph C. Cordeiro; Taunton Police Chief Edward James Walsh; Boston Police Commissioner William B. Evans; and Bristol Country District Attorney Thomas M. Quinn made the announcement today. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dominican National Charged with Illegal ReentryRead the Press Release
BOSTON – Jonathan Julian Garcia, 38, a Dominican national residing in Roxbury, was charged yesterday in federal court in Boston with one count of illegal reentry of a deported alien.
According to the indictment, Garcia was previously deported on Feb. 3, 2015. In October 2017, law enforcement encountered Garcia in Westwood and determined him to be illegally present in the United States.
Garcia faces a sentence of no greater than 20 in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the court documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
District Man Sentenced to 7 1/2-Year Prison Term for Robbing Woman at Bus Stop in Southeast WashingtonRead the Press Release
WASHINGTON – Anthony Thomas, also known as Anthony Jones, 23, of Washington, D.C., was sentenced today to a 90-month prison term for robbing a woman at gunpoint this year, in broad daylight, at a bus stop in Southeast Washington, U.S. Attorney Jessie K. Liu announced.
Thomas was found guilty by a jury in July 2017 of charges of armed robbery and possession of a firearm during a crime of violence. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Danya A. Dayson. Following his prison term, he will be placed on three years of supervised release. He also was ordered to pay $200 in restitution to the victim.
According to the government’s evidence, on March 13, 2017, at approximately 2:10 p.m., the victim was waiting for her bus in the 2100 block of Alabama Avenue SE, when Thomas and two other assailants approached her. As a Metro bus pulled up to the stop, Thomas stepped between the victim and the bus, showed her the handle of a gun tucked into his waistband, and told her she was not getting on board. At first, the victim thought Thomas was joking and tried to get around him by pushing past him. Thomas then threatened to shoot the victim. He and his accomplices took the victim’s iPhone, cash, wallet, and other personal effects, before fleeing in a gray Chevy Monte Carlo. Thomas was arrested later that day.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD) and the Metro Transit Police Department. She also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle, Victim/Witness Advocate Diana Lim, and Victim/Witness Security Specialist Debra Cannon. Finally, she commended the work of Assistant U.S. Attorneys Natasha Smalky and Kaitlin Vaillancourt, who investigated and prosecuted the case.
District Man Sentenced to 5 1/2-Year Prison Term for Kidnapping and Sexually Assaulting StrangerRead the Press Release
WASHINGTON – Saul Castillo, 20, of Washington, D.C., was sentenced today to 66 months in prison for kidnapping and sexually abusing an intoxicated stranger in the stairwell of his apartment building in Northwest Washington, announced U.S. Attorney Jessie K. Liu.
Castillo pled guilty in August 2017, in the Superior Court of the District of Columbia, to charges of kidnapping and second-degree sexual abuse. He was sentenced by the Honorable Judith Bartnoff. After his prison term, Castillo will be subject to deportation proceedings, lifetime registration as a sex offender, and five years of supervised release.
According to the government’s evidence, Castillo found the victim in the early morning hours of May 7, 2017 on a sidewalk near Lafayette Square in downtown Washington. She was extremely intoxicated, unable to walk, and told Castillo that she wanted to go to her home. Castillo hailed a passing taxi and brought her back to his apartment building in the 1700 block of Seventh Street NW.
Once inside, the victim refused to enter Castillo’s fourth-floor apartment and repeated that she wanted to go home. On multiple occasions, she fell and laid down on the hallway floor due to her intoxication. She tried to push Castillo away and return to the elevator to leave the building, but Castillo blocked her and pulled her back toward his apartment. Because of the commotion this was causing in the hallway, Castillo lifted her and carried her to the fourth- floor staircase, where Castillo sexually assaulted her. His conduct inside the building was captured on building surveillance cameras, and Castillo was arrested on May 12, 2017.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department (MPD). She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Juanita Harris and Paralegal Specialist Tiffany Jones. Finally, she commended the work of Assistant U.S. Attorneys Marisa West and J. Matt Williams, who investigated and prosecuted the case.
District Man Sentenced to 12-Year Prison Term for Shooting Man in Northwest WashingtonRead the Press Release
WASHINGTON – Dominic Leatherwood, 25, of Washington, D.C., was sentenced today to 12 years in prison on charges stemming from an attempted murder in Northwest Washington in March 2016, announced U.S. Attorney Jessie K. Liu.
Leatherwood pled guilty in May 2017, in the Superior Court of the District of Columbia, to charges of assault with intent to kill while armed and possession of a firearm during a crime of violence. He was sentenced by the Honorable Judge Zoe Bush. Following his prison term, Leatherwood will be placed on five years of supervised release.
According to the government’s evidence, the victim’s girlfriend shared two children in common with the defendant. At approximately 12:15 a.m. on March 4, 2016, the victim was giving his girlfriend a ride from work, and was going to drop his girlfriend off near Leatherwood’s home. Leatherwood had been in communication with her, and arranged for her to be dropped off by the victim near the intersection of Georgia Avenue NW and Crittenden Street NW. When the two arrived at the intersection, Leatherwood, who was armed with a firearm, approached the car and fired four shots at the victim, who was in the driver’s seat. One of these shots struck the victim in the abdomen, and the victim later underwent surgery because of his injuries. Leatherwood was arrested on March 5, 2016 and has been in custody ever since.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences.
She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists D’Yvonne Key, Tiffany Jones, Donville Drummond, and Debra McPherson; Christina Principe, Lu Lan, LaJune Thames, and Katina Adams-Washington, all of the Victim/Witness Assistance Unit; Litigation Technology Specialist Anisha Bhatia; and Criminal Investigators Christopher Brophy, Tommy Miller, and John Marsh.
Finally, she commended the work of Assistant U.S. Attorneys Michael Romano and Luke Jones, who investigated and prosecuted the case.
District Man Pleads Guilty to Killing Man in Southeast WashingtonRead the Press Release
WASHINGTON – Malik Hough, 22, of Washington, D.C., pled guilty today to charges stemming from the broad daylight killing of a man last December in Southeast Washington, and, in a separate case, to a drug charge, U.S. Attorney Jessie K. Liu announced.
Hough pled guilty in the Superior Court of the District of Columbia, to second-degree murder while armed and possession with intent to distribute a controlled substance while armed with a firearm. The plea agreement, which is contingent upon the Court’s approval, calls for an agreed-upon sentence between 17 and 29 years in prison, to be followed by five years of supervised release. The Honorable Judith Bartnoff scheduled sentencing for Jan. 3, 2018.
According to the government’s evidence, on Nov. 19, 2016, at approximately 8:20 p.m., Hough took off in unprovoked flight, on foot, from several officers with the Metropolitan Police Department (MPD) near the 900 block of Varney Street SE. The officers apprehended him in the rear alley of the 900 block of Varney Street SE a few minutes later. Officers canvassed the area and found two items on the ground nearby: a 9mm firearm, loaded with a single round, and a 9mm magazine loaded with 11 rounds of ammunition. DNA testing on the firearm showed that Hough’s DNA was on the firearm. Officers also recovered from Hough’s person on the scene numerous, empty, small baggies. A subsequent search at the Seventh District Station, and testing by the U.S. Drug Enforcement Administration, revealed that Hough had 6.8 grams of cocaine on him as well. During his plea, Hough acknowledged possessing the firearm, the empty zips, and the cocaine at the same time, and admitted that he intended to distribute the cocaine.
After being arrested for those offenses on Nov. 19, 2016, and charged by the U.S. Attorney’s Office, Hough was released by the Court on Nov. 23, 2016, with conditions including that he wear a GPS tracking anklet and not possess any firearms.
The murder took place roughly a month later. At approximately 1:20 p.m. on Dec. 27, 2016, Herbert Dowtin, 22, was walking in the 800 block of Xenia Street SE. Hough, who knew Mr. Dowtin and had previously argued with him, walked up behind Mr. Dowtin and fired 10 shots at him, hitting him eight times. These gunshot wounds caused the death of Mr. Dowtin later that day. Hough then fled, discarding the 9mm firearm under some black fabric fencing approximately two blocks away. The firearm was recovered with the assistance of a gun dog and later was ballistically matched to the shell casings found at the scene. DNA testing on the firearm showed that the defendant was one of the people whose DNA was on the firearm. Hough was wearing his pretrial GPS anklet at the time of the murder, but later cut that anklet off in an attempt to evade prosecution. Hough was arrested on Jan. 6, 2017, and has been in custody ever since.
During his plea, Hough acknowledged that Mr. Dowtin was unarmed when he shot him and that Hough was not acting in self-defense.
In announcing the plea, U.S. Attorney Liu commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, the Seventh Police District of the Metropolitan Police Department, and the Drug Enforcement Administration. She also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Allen and Witness Security Specialist Debra Cannon of the Victim/Witness Assistance Unit; Paralegal Specialist Stephanie Siegerist; and former Intern Julia Banegas. Finally, she commended the efforts of Assistant U.S. Attorneys Christopher Bruckmann and Marybeth Manfreda, who investigated and prosecuted the cases.
Dallas Area Woman Indicted by Federal Grand Jury for Influencing a Juror in her Brother’s Trial in San AntonioRead the Press Release
Julieta Boone-Tellez, age 43, of Richland Hills, TX, is charged by federal grand jury indictment with allegedly influencing a San Antonio federal juror during the trial of her brother that resulted in a mistrial announced United States Attorney Richard L. Durbin, Jr., and United States Marshal David Sligh.
On September 18, 2017, before Chief United States District Judge Orlando L. Garcia in San Antonio, jury selection and trial began for Romeo Boone-Escorcia in criminal docket number SA-17-CR-352. Boone-Escorcia, a Mexican National, was charged by federal grand jury indictment with one count of illegal re-entry into the United States after having been previously deported.
The indictment (SA-17-CR-816) alleges that on September 19, 2017, Boone-Tellez made contact with a trial juror and showed that juror a photograph depicting her brother. Subsequently, Judge Garcia declared a mistrial. Judge Garcia scheduled the retrial for November 6, 2017, however, Boone-Escorcia entered a guilty plea yesterday to the illegal re-entry charge and was sentenced to time served (approx. 6 ½ months). Boone-Escorcia now faces formal deportation proceedings.
Boone-Tellez, who was arrested in the Northern District of Texas on October 13, 2017, is currently on bond. Her arraignment is scheduled for 1:30pm on November 13, 2017, in San Antonio before United States Magistrate Judge Henry J. Bemporad. Upon conviction of the influencing charge, Boone-Tellez faces up to ten years in federal prison.
The United States Marshals Service investigated this case. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
DTO Leader Sentenced to 121 Months in Federal PrisonRead the Press Release
LUBBOCK, Texas — This morning, Senior U.S. District Judge Sam R. Cummings sentenced Leopoldo Herrera-Gandara, aka “Polo,” 33 of Arch, New Mexico to 121 months in federal prison, following his guilty plea in August 2017 to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Herrera-Gandara and six defendants of a drug trafficking organization (DTO), mostly from the Lubbock, Texas, area, were arrested in May 2017 in a joint operation led by the Texas Department of Public Safety, the Drug Enforcement Administration, the Levelland, Texas Police Department, the Cochran County Sheriff’s Office, Homeland Security Investigations, Immigration and Customs Enforcement, U.S. Customs and Border Protection, as well as the New Mexico State Police Tactical Team, Roosevelt County, New Mexico Sheriff’s Office, and the Region V Metro Drug Task Force, based in New Mexico.
Of the seven defendants who were indicted, five have been convicted and sentenced. The charges were dismissed against one of the defendants following a plea of guilty to related state charges and the remaining defendant. Arcadio Ornelas, Jr., aka “Junior,” 36, of Morton, Texas, is scheduled to begin trial on December 4, 2017.
Johnathan Navarrette Garza, aka “Johnny,” 27, of Morton, Texas, was sentenced to 135 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine.
Jorge Andres Nunez-Saenz, aka “Tucan,” 51, of Levelland, Texas, was sentenced to 97 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine.
Raul Jose Hernandez, aka “RJ,” 35, of Morton, Texas, was sentenced to 96 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute five grams or more of methamphetamine.
Nancy Cecilia Martinez, 37, of Levelland, Texas, was sentenced to 87 months in federal prison. She pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine.
Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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Colombian National Pleads Guilty to Conspiracy to Bribe a Federal Agent to Dismiss Indictment Against Colombian Narcotics KingpinRead the Press Release
A Colombian national pleaded guilty today in connection with his role in a bribery scheme that resulted in the dismissal of a drug trafficking indictment filed against a Colombia-based cocaine trafficker from the Cali Cartel, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
According to admissions in the plea agreement, Juan Carlos Velasco Cano, 49, acted as an intermediary between U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations Special Agent Christopher V. Ciccione II, 52, of Phoenixville, Pennsylvania, and Colombian national Jose Bayron Piedrahita Ceballos, 58, to use Ciccione’s official position to cause a drug trafficking indictment against Piedrahita to be dismissed and to obtain official authorization for Piedrahita to enter the United States.
Velasco admitted that Piedrahita gave Ciccione approximately $20,000 in cash, dinner, drinks and prostitution during an extended hotel stay in Bogota, Colombia in exchange for Ciccione using his official position to obtain the dismissal of the indictment against Piedrahita. In furtherance of the scheme, Velasco arranged for a meeting of the conspirators in Bogota, Colombia; facilitated communications between Piedrahita and Ciccione; and received confidential law enforcement information from Ciccione about himself and others, including the names of a confidential source and cooperating witnesses.
Velasco will be sentenced on Jan. 17, 2018 before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida. Ciccione is pending trial and Piedrahita is currently incarcerated in the Republic of Colombia.The U.S. Department of the Treasury’s Office of Foreign Assets Control designated Piedrahita as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act on May 3, 2016.
ICE’s Office of Professional Responsibility, Department of Homeland Security’s Office of Inspector General and the FBI investigated the case. The Criminal Division’s Office of International Affairs, the Office of the Judicial Attaché in Colombia and the Drug Enforcement Administration provided valuable assistance to the investigation. The Colombian Attorney General’s Office also provided invaluable support. Trial Attorneys Luke Cass and Jennifer A. Clarke of the Criminal Division’s Public Integrity Section are prosecuting the case.Chicago Man Sentenced to 30 MonthsRead the Press Release
HAMMOND – The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Paul Fowlkes, 23, of Chicago, Illinois, was sentenced on November 2, 2017 by District Court Judge Joseph Van Bokkelen to 30 months imprisonment to be followed by two years of supervised release for providing false information to a Federal Firearms Licensee in acquiring firearms.
According to Court filings, the Defendant purchased over 25 firearms during a one year period between March of 2016 and March of 2017 utilizing a false home address on required forms to acquire firearms from Federally Licensed Firearms Distributors within the Northern District of Indiana. Fowlkes received a sentencing enhancement for trafficking in firearms due to the determination that at least eight of the firearms purchased by him in Indiana were later recovered by law enforcement in the possession of other persons, including juveniles and convicted felons, in Indiana, Illinois and Ohio.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the Indianapolis and Chicago Police Departments. This case was prosecuted by Assistant United States Attorney Thomas McGrath.
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Chicago Man Sentenced for Prostituting MinorRead the Press Release
NORFOLK, Va. – A Chicago man was sentenced today to four years in prison for conspiring to prostitute a 17 year-old in the Tidewater region.
According to court documents and evidence presented at sentencing, in February 2017, Juan Hollis, 23, started prostituting a 19 year-old in the Tidewater area. Soon after, the pair recruited a 17 year-old that the 19 year-old knew previously. Hollis would post the minor’s image on the Internet and advertise for prostitution clients for the minor. An undercover operation by the Norfolk Police Department targeting commercial sex discovered the minor. Hollis previously pleaded guilty to conspiracy to sex traffick a child.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-62.
Buffalo Men Sentenced in Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Daniel Molina Rios a/k/a Ponce, 43, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and distribution of 100 grams or more of heroin, was sentenced to 201 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr. In addition, Jose Andujar, 40, of Buffalo, NY, was sentenced to 188 months in prison for his role in the conspiracy.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between March 2014 and June 2015, the defendants conspired with Orlando Rios, Luis Montanez, and others to distribute heroin on the West Side of Buffalo. Rios headed and Andujar managed a wide-scale drug trafficking organization providing day-to-day supervision to several street-level dealers who used a series of cellular telephones to conduct daily heroin sales.
During the conspiracy, the defendants made at least six trips to the New York City area to purchase large quantities of heroin from a source of supply. They purchased at least 300 grams of heroin on each trip. In addition, during the conspiracy, the Buffalo Police Department and New York State Police conducted 66 undercover heroin purchases from individuals subordinate to Rios in the organization.
Rios exercised ultimate decision making authority and had complete authority over five or more other participants, including at least 10 drug “runners” who were responsible for coordinating sales for incoming customers and who contacted the drug trafficking organization on a “runner” phone each day. The defendant also maintained a premise at 74 Fillmore Avenue in Buffalo for distributing heroin. A search of that residence on June 18, 2015, recovered six cell phones, packaging materials for heroin, and $14,293.00, in U.S. currency representing the proceeds from heroin distribution.
Andujar, who maintained a premise at 620 Grant Street, Rear Lower in Buffalo for distributing heroin, also exercised decision-making authority over participants in the drug trafficking conspiracy. A search of that residence on June 18, 2015, recovered heroin, drug ledgers, and six cellular phones.
A total of 14 defendants have been indicted in connection with this case, eight have been convicted. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencings are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Boynton Beach Man Sentenced to 20 Years for Sex Trafficking of a Minor and Producing Child PornographyRead the Press Release
A Boynton Beach resident was sentenced to 20 years in prison, followed by lifetime of supervised release for sex trafficking of a minor and producing child pornography.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Jeffrey S. Katz, Chief, Boynton Beach Police Department (BBPD), made the announcement.
Marco Vinicio Orrego, 31, of Boynton Beach, Florida, previously pled guilty to committing sex trafficking of a minor, in violation of Title 18, United States Code, Section 1591(a), and production of child pornography, in violation of Title 18, United States Code, Section 2251(a) and (e) (Case No. 17-CR-80097-Middlebrooks).
According to court records, from May 3 through May 5, 2017, Orrego prostituted a sixteen-year-old girl using Backpage.com. He provided her with transportation and a hotel for these illicit activities, taking all of the proceeds for himself. Additionally, Orrego had sex with the minor during that same period and created videos of the sexual abuse.
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 the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Greenberg commended the investigation efforts of ICE-HSI and the Boynton Beach Police Department. This case is being prosecuted by Assistant United States Attorney Gregory Schiller.
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.
2017 Strom Thurmond Awards for Excellence in Law Enforcement AnnouncedRead the Press Release
COLUMBIA, SOUTH CAROLINA –The United States Attorney’s Office’s Law Enforcement Coordinating Committee, along with the South Carolina Law Enforcement Officers’ Association (SCLEOA) and the Strom Thurmond Foundation, hosted the annual Strom Thurmond Awards for Excellence in Law Enforcement Luncheon today at the Fort Jackson Officers' Club, Fort Jackson, South Carolina. Approximately 150 state, local and federal law enforcement officials from across the state attended the awards luncheon.
The following South Carolina law enforcement officers received the 2017 awards: City – Chief George D. Brothers, Edisto Beach Police Department
County – Sheriff Phillip E. Thompson, Horry County Sheriff’s Office
Federal – Special Agent Barry A. Wilson, U. S. Drug Enforcement Administration
State – Major C. Todd Hughey, SLED
The Strom Thurmond Awards for Excellence in Law Enforcement were established by Senator Strom Thurmond in 1983 to recognize law enforcement officers whose performances demonstrate the highest ideals of excellence in professional law enforcement. An annual award is given in each of four categories: (1) City Officer; (2) County Officer; (3) State Officer; and (4) Federal Officer. An awards committee composed of representatives from the U.S. Attorney's Office, the Strom Thurmond Foundation, the Federal Bureau of Investigation, and the South Carolina Law Enforcement Division, along with a police chief and sheriff who have received the award selected the recipients from nominations received from across the state.
United States Attorney Beth Drake stated, "It is indeed an honor to recognize these four outstanding officers. They each exemplify the best in law enforcement, serving their agencies, this state, and our nation with distinction, integrity, and character--making tremendous personal sacrifices to ensure just enforcement.”
City Recipient
George D. Brothers
Chief
Edisto Beach Police Department
Chief George Brothers graduated from T. L. Hanna High School in Anderson, SC. He obtained his Bachelor’s Degree from Central Wesleyan College in Human Resource Management. Chief Brothers received his Master’s Degree in Criminal Justice from the University of
South Carolina.
Chief Brothers began his law enforcement career in 1980 as a Reserve Officer for the City of Anderson, SC. When he relocated to Charleston County, he began their Reserve Officer Program in 1983. He served in this capacity for approximately three years. Chief Brothers then volunteered as a Reserve Officer for the Lexington County Sheriff’s Department in 1987. It was there he decided to commit to law enforcement in a full-time capacity and was hired as a Deputy Sheriff in 1990. Chief Brothers graduated from the S.C. Criminal Justice Academy as the winner of the J.P Strom Award in 1991. He advanced through the ranks at the Lexington County Sheriff’s Department from a deputy to a DARE Officer and then as a Juvenile Investigator. He was promoted to Deputy Regional Commander at the rank of Lieutenant. He served as Captain of Headquarters Region and eventually was promoted to Major of the Department.
Chief Brothers retired from the Lexington County Sheriff’s Department in 2011 and moved to the private sector. Chief Brothers returned to law enforcement in 2013 as an officer with the Edisto Beach Police Department and was promoted to Assistant Chief in 2014. He was selected as Chief of Police in 2015.
Chief Brothers has been married for 39 years to his wife, Jackie, who also retired from law enforcement. He enjoys spending time with his family enjoying the beach and traveling.
County Recipient
Phillip E. Thompson
Sheriff
Horry County Sheriff’s Office
Sheriff Phillip E. Thompson is a 39-year veteran of law enforcement. He gained his law enforcement experience with both the Myrtle Beach and Horry County Police Departments before being elected Sheriff of Horry County in January 2001. He is currently serving his fifth term as Sheriff.
Sheriff Thompson has served as the Chairman of the 15th Judicial Circuit Drug Enforcement Unit since its conception in 2006. Sheriff Thompson’s commitment to assisting others lead to the creation of the only incarcerated drug treatment program for inmates in South Carolina, which is a model for incarceration treatment programs in the Southeast. The success of the program resulted in a three-year partnership with the South Carolina Department of Corrections in providing a reentry treatment program for inmates reentering in to society. As a result, Sheriff Thompson was awarded the Young Offender Parole and Reentry Services Judge Bill Byars Community Partner Award in Law Enforcement by Governor Nikki Haley in May of 2016. In July of 2017, Sheriff Thompson was awarded Sheriff of the Year by the South Carolina Sheriff’s Association.
Sheriff Thompson has been married to his wife, Cherry, over 48-years and they have three sons, three daughters-in-law and six grandchildren. Sheriff Thompson is a member of First United Methodist Church of Conway.
Federal Recipient
Barry A. Wilson
Special Agent
U. S. Drug Enforcement Administration
Special Agent Barry Wilson has worked in law enforcement for more than 24 years. He worked with the Anderson County Sheriff’s Office and the Greenville City Police Department before joining the DEA in 1997. He was initially assigned to the DEA Miami Field Division where he worked in a HIDTA Task Force for four years. In 2001, he was transferred to the Florence, SC DEA Office and subsequently transferred to the Columbia, SC District Office in 2005.
Special Agent Wilson has been a valuable contributor to the SC OCDETF Program and has worked on several high level Title III wiretap/drug trafficking investigations. He has been the Case Agent for numerous OCDETF Investigations including the 2010 OCDETF Case of the Year for the District of SC–Operation Bitter Orange. This investigation, and the follow-up OCDETF Investigation, Orange Collision, resulted in the arrest of more than 130 defendants, the seizure of 60 kilograms of cocaine and nearly two million dollars in assets. Special Agent Wilson has built strong relationships with other law enforcement agencies and has assisted on several FBI led OCDETF investigations as well. In 2016, he initiated OCDETF Operation Diga No Mas targeting a large-scale heroin group in Orangeburg, SC. In 2017, he began an assignment with the DEA Tactical Diversion Group (TDS) and initiated an investigation of a Beaufort, SC, based pill press group that was responsible for the nationwide distribution of clandestinely manufactured Schedule II and Schedule IV controlled substances and laundered in excess of eight million dollars using virtual currency. The TDS recently dismantled this operation and thus far, over 50,000 pills and over a million dollars in assets have been seized.
Special Agent Wilson is a graduate of the University of SC, is married and has two daughters. He is a DEA Firearms Instructor and has instructed other law enforcement officers on Title III investigations and critical incident response. Special Agent Wilson serves as DEA's Domestic Cannabis Eradication Coordinator for SC and works with SLED and other law enforcement agencies implementing this program. He is a DEA Purple Heart recipient resulting from a gunshot wound he received during the execution of a search warrant in Orangeburg in 2014.
State Recipient
C. Todd Hughey
Major
SC Law Enforcement Division
Major Todd Hughey currently serves as the Laboratory Director in the Forensic Services Division of the South Carolina Law Enforcement Division (SLED). Major Hughey received his Bachelor of Science in Chemistry in 1986 from Wofford College and his Ph.D. in Pharmacology from the University of South Carolina in 1992. He performed post-doctoral work at Duke University Medical Center from 1992-1995.
Major Hughey began his career at SLED in 1996 in the Toxicology Department and has served in various departments throughout his 21 years, ultimately rising to the rank of Major. Major Hughey has demonstrated a passion for forensic science throughout his career. He has held himself and his staff to the highest ethical standards, which has resulted in the advancement of Forensic Services provided to the criminal justice system and citizens of South Carolina. Under the guidance of Major Hughey, the state forensic laboratory has advanced its capabilities through the use of advanced technology and innovative techniques. Some of these include: new technology in Toxicology to assist with detection of novel designer drugs; new technology in Drug Analysis to allow for quantitation of THC in hemp, food and oil products; new technology in crime scene for 3D imaging of scenes; new sampling and analysis techniques of DNA evidence for improved sensitivity and discrimination. The SLED Forensic Services Laboratory achieved International Accreditation through the American Society of Crime Laboratory Directors, Laboratory Accreditation Board (ASCLD/LAB-International) in 2014 under Major Hughey’s guidance. Major Hughey is recognized nationally as a leader in the field of forensic science. He serves on numerous national boards and champions ethical, transparent, and unbiased work.
Major Todd Hughey is the unique combination of scientist and law enforcement officer and blends these two fields in a unique way to best serve the citizens of South Carolina. He has provided excellent leadership for the SLED Forensic Services Laboratory through his example of integrity, ethics and pursuit of truth through science. Major Hughey and his wife April have two children. He is an active member and Deacon of Fellowship Baptist Church in Lexington. He is an avid hiker and nature photographer and also enjoys mountain biking and being outdoors#####
2 November 2017
Vail, Iowa Woman Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced November 2, 2017, to 3 ½ years in federal prison.
Treshina Salazar, 31, from Vail, Iowa, received the prison term after a May 10, 2017, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Salazar admitted her involvement in a conspiracy that distributed at least 500 grams of actual (pure) methamphetamine throughout the Crawford and Sac County, Iowa area from 2012 through July 2016. In July 2016 law enforcement traffic stopped Salazar and seized one ounce of methamphetamine from the center console. Salazar admitted she served as a “middle-person,” collecting money and delivering sizable amounts of methamphetamine for a number of large-scale methamphetamine traffickers.
Salazar was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Salazar was sentenced to 42 months’ imprisonment. A special assessment of $100 was imposed. She must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system. Salazar is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Department of Narcotics Enforcement, Sac County Sheriff’s Office, Crawford County Sheriff’s Office, and Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-4103.
Follow us on Twitter @USAO_NDIA.
Tyler County man sentenced for illegal possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Jamie Villono, of Sistersville, West Virginia, was sentenced today to 46 months incarceration for illegally possessing firearms, United States Attorney William J. Powell announced.
Villono, age 36, pled guilty to one count of “Felon in Possession of a Firearm” in August 2017. Villono, having previously been convicted of breaking and entering in Tyler County Circuit Court, admitting to having in his possession a 30-30 caliber rifle, a.22 caliber rifle, a.22-250 caliber rifle, and a .223 caliber rifle. The crime occurred in October 2016 in Tyler County.
Villono was also ordered to pay $2,310 in restitution.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tyler County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.Two West Virginia women admit to their roles in an oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Monongalia County woman and a Harrison County woman admitted to their roles in distributing oxycodone, United States Attorney William J. Powell announced.
Ariel Blosser, of Morgantown, age 28, pled guilty to “Distribution of Oxycodone.” Blosser admitted to selling oxycodone in February 2016 in Monongalia County.
Brandy Miller, of Salem, age 28, pled guilty to “Unlawful Use of Communication Facility.” Miller admitted to using a phone to assist others in distributing oxycodone in March 2017 in Monongalia County.
Blosser faces up to 20 years incarceration and a fine of up to $1,000,000. Miller faces up to four years incarceration and a fine of up to $250,0000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.Two Defendants Convicted at Trial in Connection with Fatal 2012 Home Invasion RobberyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that GIBRON LOPEZ and JUDIE OLIVERA were convicted in Manhattan federal court yesterday of Hobbs Act robbery and Hobbs Act robbery conspiracy charges stemming from their commission of a May 2012 home invasion robbery of victim Miles Klein, which resulted in Klein’s death. LOPEZ and OLIVERA were convicted after a one-and-a-half week trial before U.S. District Judge Katherine Polk Failla.
According to the Indictment, other filings in Manhattan federal court, and the evidence admitted at trial:
In May 2012, OLIVERA, who had a preexisting relationship with Klein, set up a home invasion robbery, which targeted Klein’s drugs and drug proceeds. OLIVERA recruited LOPEZ and another man to commit the robbery. On May 15, 2012, OLIVERA gained access to Klein’s apartment in the Bronx, and LOPEZ and the other man, armed with a wrench and a rubber mallet, respectively, followed her there. LOPEZ and the other man struggled with Klein at the door, striking him in the head repeatedly with the wrench and the mallet, binding his eyes and mouth with duct tape, and gagging him. During the assault, OLIVERA stole a safe containing cash, among other items, from Klein’s apartment. LOPEZ and the other man then dragged Klein’s body to the bathroom, where they left him. They discarded the murder weapons and their bloody clothes in a sewer, and later split the proceeds of the robbery. Police responded to the scene on May 16, 2012, after receiving a 911 call from concerned family members. Klein was ultimately pronounced dead as a result of blunt force trauma to his head and obstruction of his airway.
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LOPEZ, 37 and OLIVERA, 39, both of the Bronx, were each convicted of one count of Hobbs Act robbery, which carries a maximum sentence of 20 years in prison, and one count of Hobbs Act robbery conspiracy, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), the Strategic Pattern Armed Robbery Technical Apprehension (“SPARTA”) Task Force, and the New York City Police Department (“NYPD”).
The prosecution of this case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Gina M. Castellano, Christopher J. DiMase, and Justina L. Geraci are in charge of the prosecution.
Two Californians Sentenced for Conspiracy to Commit Health Care FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that GEOFFREY RICKETTS, age 48, and SAMUEL KIM, age 42, both of Porter Ranch, California, were sentenced today after previously pleading guilty to conspiracy to commit health care fraud.
U.S. District Judge Eldon E. Fallon sentenced GEOFFREY RICKETTS to to 46 months imprisonment. SAMUEL KIM was sentenced to 25 months imprisonment. In addition, GEOFFREY RICKETTS and SAMUEL KIM owe restitution in the amount of $1,338,210 and $988,593 respectively.
GEOFFREY RICKETTS, SAMUEL KIM, along with co-defendants MARLA RICKETTS and SUNYUP KIM were indicted on June 11, 2015, for their direction of a $38 million fraud scheme centering around the distribution of "talking glucose meters" that were not medically needed and were often not even requested. The defendants operated Care Concepts, LLC, which was based in Metairie and Choice Home Medical Equipment and Supplies (Choice), which was based in Chatsworth, California. According to court documents, the defendants paid kickbacks to workers at call centers in California and South Carolina, from which operators would cold-call Medicare recipients to convince them to accept talking glucose meters and related supplies. From 2007 through 2015, the defendants caused thousands of claims to be submitted to Medicare through Care Concepts and Choice, virtually all of which were fraudulent.
MARLA RICKETTS pleaded guilty on January 5, 2017, to conspiracy to commit health care fraud and was sentenced to five years of probation and ordered to pay $39,880.46 in restitution.
SUNYUP KIM pleaded guilty on September 7, 2017, to conspiracy to commit health care fraud and was sentenced to twelve months and one day imprisonment, followed by two years of supervised release. Additionally, KIM was ordered to pay $93,927 in restitution.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Office of Inspector General for the United States Department of Health and Human Services for investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan and Jordan Ginsberg were in charge of the prosecution.
Three Ghanian Defendants Convicted of A $1.4 Million Conspiracy to Commit Bank and Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal jury has convicted Mohammed “Kofi” Kwaning, age 36, of Laurel, Mark Dennis, age 30, of Laurel, and Charles Mensah, age 30, of the Bronx, New York, of conspiracy to commit bank and wire fraud, as well as bank and wire fraud, and aggravated identity theft for a scheme to defraud in 2014 which attempted to steal nearly $1.4 million in funds from the personal, retirement, and business accounts of various victims. All three are lawful permanent residents of the United States and citizens of Ghana.
The verdict was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement - Homeland Security Investigations, Baltimore Office; and Police Chief Terrence B. Sheridan of the Baltimore County Police.
According to evidence at presented at the 10 day trial, in 2014, Mohammed Kwaning acquired account information from the individual victims, to include the investment account management firms listed in the Superseding Indictment, as well as forged checks containing bank account information of both individual and corporate victims from across the United States.
Issah Mohammed then recruited individuals, to include Mark Dennis, Charles Mensah, Sandra Badu, Abayomi Davies, and Francis “Pino” Fosu, who registered corporate shell entities with the state of Maryland. The individuals Issah Mohammed recruited then set up bank accounts at multiple banking institutions in the names of these shell entities. Mohammed Kwaning then either directed that the funds from the compromised accounts be wired into those bank accounts or provided altered or fabricated checks from compromised accounts to Issah Mohammed, who then provided the checks to Mark Dennis, Charles Mensah, Sandra Badu, Abayomi Davies, and Francis “Pino” Fosu, to be deposited into those bank accounts. After doing so, those same individuals would attempt to withdraw as much of the stolen funds before the banks discovered that the source of the funds were compromised accounts.
Some of the accounts were compromised by individuals who called into investment firms pretending to be the actual account holders, and then eventually providing enough correct answers in order to reset the password for the account. Individuals also hacked the emails of victims and, posing as the account holders, requested funds be wired from their retirement accounts to the bank accounts of the shell corporations controlled by the conspirators. The loss attempted over the course of nine months was over $1.3 million; the conspirators were able to withdraw over $229,000 of stolen funds, which they then split amongst themselves.
Sentencing for Kwaning is set for February 16, 2018. Sentencing for Mensah and Dennis is set for January 19, 2018. All three defendants are detained pending sentencing. Issah Mohammed, Sandra Badu, Abayomi Davies, and Francis “Pino” Fosu had all previously pled guilty. Their sentencing hearings are to be scheduled.
Acting United States Attorney Stephen M. Schenning commended HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul E. Budlow and Judson T. Mihok, who prosecuted this case.
Store Owner Who Cashed Fraudulent Checks Sentenced to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ASAFAK B. BHURA, 51, of Manchester, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 10 months of imprisonment, followed by one year of supervised release, for attempting to obstruct federal tax laws. Judge Bryant also ordered BHURA to pay a $30,000 fine.
According to court documents and statements made in court, BHURA owned and operated Nafisa, LLC, and later BAB Enterprise, LLC, a convenience store located in Middletown. The store was registered with the U.S. Department of Treasury Financial Crimes Enforcement Network (FinCEN) as a money service business that sold money wire services and money orders to the public for fees. The store was never licensed by the State of Connecticut to be a check cashier, which would permit the store to cash checks for a fee greater than 50 cents per check.
In April 2010, in response to an Internal Revenue Service Bank Secrecy Act (“BSA”) Compliance Audit, BHURA adopted an anti-money laundering (“AML”) program and check cashing policies and procedures for his store. The procedures listed the acceptable forms of identification of those seeking to cash a check and required the collection and verification of the customer’s information, including addresses, home telephone number and place of employment, along with a copy or scan of the cashed checks.
From March 2012 to June 2012, BHURA accepted and cashed 126 U.S. Treasury tax refund checks totaling $787,187.17 for an individual. BHURA did not properly identify the individual and the checks were not made payable to that individual. In addition, he deposited the checks into his personal bank accounts rather than the store’s business operating accounts.
BHURA purposefully did not comply with his store’s AML program and check cashing policies and procedures. Based on prior IRS BSA Compliance examinations of the store, BHURA knew the IRS BSA Compliance auditor reviewing the store’s money service business activities and business bank accounts would detect the cashed U.S. Treasury checks if they were deposited into the store’s business accounts.
The federal tax refund checks BHURA cashed were payable to payees residing in Connecticut, New York and New Jersey. The investigation revealed that the checks were federal tax refund checks that others fraudulently obtained through the filing of federal income tax returns containing stolen or fraudulently obtained personal identifying information.
For his services, BHURA received and kept a five percent fee for cashing the 126 checks, which amounted to $39,359. BHURA has paid restitution in that amount to the IRS.
On May 10, 2017, BHURA pleaded guilty to attempting to interfere with the administration of Internal Revenue laws.
BHURA, who is released on a $50,000 bond, was ordered to report to prison on December 27, 2017.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
South Bend Woman Convicted During 4-Day Jury TrialRead the Press Release
SOUTH BEND - The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II, announced that Sharon Ramos, age 56, of South Bend, Indiana was convicted of ten counts of making false entries in government records, two counts of conversion of government money, and one count of wire fraud, after a four-day jury trial before District Court Judge Jon E. DeGuilio.
According to documents filed in this case, from approximately January 2008 and continuing until in and around December 2013 Ramos devised a scheme to defraud the Social Security Administration by means of materially false and fraudulent pretenses, representations and promises. Ramos, an employee of the Social Security Administration made numerous false and fictitious representations in Supplemental Security Income (SSI) accounts of numerous SSI claimants. These improper entries in the accounts resulted in numerous SSI claimants obtaining payments they were not entitled to receive. As a result, Ramos fraudulently converted money belonging to the Social Security Administration.
United States Attorney Kirsch said, “When a public employee misuses her position to break the law and violate the public trust, we will hold the employee accountable for her actions by prosecution. This case is an example of the outstanding work done by the Social Security Administration, Office of Inspector General to root out fraud and corruption, and in this case, to hold Ms. Ramos accountable for her conduct.”
This case was the result of an investigation by the Social Security Administration, Office of Inspector General. This case was prosecuted by Assistant United States Attorneys Luke N. Reilander and Frank E. Schaffer.
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Smith County Man Sentenced for Importing Anabolic SteroidsRead the Press Release
TYLER, Texas – A 45-year-old Tyler man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Stacey Godsey pleaded guilty on July 5, 2017 to conspiracy to import anabolic steroids and was sentenced to 24 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, from 2014 to 2016, Godsey and Joseph Shay Burton, 39, also of Tyler, purchased anabolic steroids through the internet from suppliers located in China. The steroids were shipped to the United States where Godsey and Burton converted them from powder to liquid dosage units in the kitchen and garage of Godsey's residence. Once converted into liquid dosage units, the steroids were sold and distributed to steroid users in Tyler, Texas and elsewhere. In the spring of 2016, law enforcement officers searched residences belonging to Godsey and Burton. More than 60,000 dosage units of anabolic steroids were found at Godsey's residence. More than 6,000 dosage units were found at Burton's residence.
Burton also pleaded guilty in July 2017 and is awaiting sentencing.
This casewas investigated by the Drug Enforcement Administration, the Tyler Police Department, and the Smith County Sheriff's Office and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Sioux City Woman Sentenced for Meth PossessionRead the Press Release
A woman who possessed methamphetamine was sentenced November 2, 2017, to more than three years in federal prison.
Nicole Maxine Ramirez, 30, from Sioux City, Iowa, received the prison term after a July 18, 2017, guilty plea to possession with intent to distribute methamphetamine.
At the guilty plea, Ramirez admitted she possessed more than 27 grams of pure methamphetamine. On October 12, 2016, law enforcement conducted a traffic stop of Ramirez’s vehicle on Interstate 29 near Sioux City. Officers searched the vehicle and located 37.6 grams of methamphetamine mixture. Ramirez admitted she had purchased the methamphetamine and intended to sell the methamphetamine to other person(s).
Ramirez was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Ramirez was sentenced to 43 months’ imprisonment. A special assessment of $100 was imposed. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Ramirez is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Mikala M. Steenholdt and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-4026. Follow us on Twitter @USAO_NDIA.
Seven Members of Drug Trafficking Organization Plead Guilty to Distributing over 100,000 Oxycodone PillsRead the Press Release
Memphis, TN – Seven members of a drug trafficking organization have pleaded guilty to distributing Oxycodone. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the guilty pleas today.
According to the indictment, on or about 2012 through March 2, 2017, Courtney M. Jones’ drug trafficking organization distributed a continuous supply of Oxycodone pills to customers of his organization. Jones and other co-conspirators organized and managed the delivery of various quantities of Oxycodone from Las Vegas, Nevada, into the Western District of Tennessee. The other defendants include Loren N. Bryant; Toresha D. Douglas; Charlotte M. Goldsmith; Magon O. Hall; Gabriel Rounds and Demarious E. Tuggle.
On May 9, 2013, Las Vegas Postal Inspectors began an investigation into packages suspected of containing Oxycodone pills. The U.S. Postal Inspection Service (USPIS) identified phone numbers, surveillance images, vehicle registrations and other information connecting Gabriel Rounds and Magon Hall sending packages to various addresses and recipients through Express Mail envelopes.
On March 2, 2017, an undercover Postal Inspector delivered an Express Mail package to Jones’ apartment. The surveillance team observed Jones meet the mail carrier and accept the package. A search warrant was executed, and approximately 700 oxycodone pills and $53,325 in cash was recovered, as well as a fully loaded Glock 9mm pistol, 6.1 grams of marijuana found inside of a wooden box and 3.3 grams of marijuana inside a plastic bag in a kitchen cabinet. Jones was a convicted felon at the time of the incident.
The investigation further revealed that the defendants would deposit or withdraw cash from Wells Fargo Bank, Bank of America, In Touch Credit Union and MoneyGram as payment for the shipments.
The defendants are scheduled to be sentenced by U.S. District Judge Sheryl H. Lipman as follows: Courtney M. Jones on January 12, 2018; Toresha D. Douglas on January 18, 2018; Megan O. Hall on January 19, 2018; Gabriel Rounds and Demarious E. Tuggle on January 25, 2018; Loren N. Bryant and Charlotte M. Goldsmith on February 2, 2018. The maximum penalty is not more than 20 years imprisonment and $500,000 fine and 5 years supervised release to begin after incarceration.
The United States Postal Inspection Service and Shelby County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Jerry Kitchen and Michelle Parks are prosecuting the case on the government’s behalf.
Sentencings for October 27, 2017Read the Press Release
Roman Daniel Vanberkom, 31, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 27, 2017, for being a felon and unlawful user of a controlled substance in possession of firearms. Vanberkom was arrested in Gillette, Wyoming. He received 43 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Campbell County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Scranton Man Sentenced to 70 Months’ Imprisonment for $3.5 Million Tax Fraud SchemeRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge Richard P. Conaboy sentenced Brian Reyes, age 30, of Scranton, Pennsylvania, to 70 months’ imprisonment for participating in a stolen identity tax refund fraud conspiracy. Reyes pleaded guilty on October 18, 2016, pursuant to a one-count information that charged him with conspiring to defraud the United States with respect to fraudulent tax claims.
According to United States Attorney Bruce D. Brandler, Reyes owned and operated Reyes Services LLC, a Scranton, Pennsylvania-based check cashing business. From January 2011 to June 2015, Reyes and his co-conspirators used stolen identities to prepare and file false federal income tax returns, unbeknownst to their victims. Reyes’s co-conspirators obtained the refund checks from those fraudulent returns and provided them to Reyes, who cashed the checks at his business. Reyes kept a portion of each check cashed. The scheme netted $3,655,368 in false claims paid by the U.S. Treasury.
The government seized $48,933 during the course of the investigation. As part of the sentence, Judge Conaboy imposed a restitution obligation on Reyes for the remaining balance of $3,606,435.
The case was investigated by the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorneys William Houser and Phillip J. Caraballo prosecuted the case.
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Sacramento Resident Sentenced to 3 Years in Prison for Fraud Scheme and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Raleigh Rana Figueras, 36, of Sacramento, was sentenced today by U.S. District Judge Morrison C. England Jr. for his role in a fraud and identity theft scheme, U.S. Attorney Phillip A. Talbert announced.
On February 9, 2017, Figueras pleaded guilty to bank fraud, aggravated identity theft, possession of stolen U.S. mail, and unlawful possession of five or more identification documents.
On March 16, 2017, Judge England sentenced Figueras’ estranged spouse, Michele Reyes Serrano, 35, also of Sacramento, to five years and 11 months in prison for bank fraud, aggravated identity theft, and possession of stolen U.S. mail.
According to court documents, between June 2015 and January 2016, Figueras, Serrano, and others obtained victim identities and financial information from stolen mail and other stolen property. They obtained personal and financial information and used it to pose as the identity theft victims and use their stolen bank accounts, access device numbers, and altered checks to get money, goods and services from banks and merchants. Figueras created counterfeit driver’s licenses on his computer. Surveillance cameras caught the defendants cashing checks or making purchases at Sacramento-area Target and Wal‑Mart stores.
This case was the product of an investigation by the U.S. Postal Inspection Service with the assistance of the Sacramento County Sheriff’s Department and the Sacramento County Probation Department. Assistant U.S. Attorneys Michelle Rodriguez and Rosanne L. Rust prosecuted the case.
The Postal Inspection Service conducted these investigations with assistance of its Narcotic and Economic Crimes Investigations Task Force (NECI). NECI is a partnership between local and federal law enforcement to combat theft and unlawful use of the U.S. Mail. The Placer County District Attorney’s Office and Sutter County Sheriff’s Office have each dedicated law enforcement personnel to the task force.
Sacramento Man Sentenced to over 17 Years in Prison for Running Methamphetamine Ring Involving a Pipe Bomb and WeaponsRead the Press Release
SACRAMENTO, Calif. — Emilio Marquez Barba, 39, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to 17 and a half years in prison for conspiring to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Barba was the leader and organizer of an attempted deal to sell 15 pounds worth of methamphetamine for $210,000 to undercover agents. When agents executed a search warrant on Barba’s residence, they found additional methamphetamine, cocaine packaged for distribution, marijuana, and a pipe bomb. Other weapons were found in connection with the co-conspirators. On July 20, 2017, Barba pleaded guilty to conspiring to distribute methamphetamine.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Mountain and Valley Marijuana Investigation Team (MAVMIT). Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.
Barba’s three co-defendants pleaded guilty in this case. Gabriel Vargas-Guerrero was sentenced to seven years in prison, Mario Lopez-Ayala was sentenced to five years and three months in prison, and Jose Jaime Diaz is set for sentencing on December 7, 2017, at 9:30 a.m.
Rochester Man Sentenced to 20 Years in Jail for Sex TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Thaddeus Grice, 38, of Rochester, NY, who was convicted of sex trafficking of a minor, was sentenced to 240 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that in November, 2013, the defendant recruited a 16 year-old minor victim to engage in commercial sex acts and used Backpage.com for advertisement purposes. Between November and December 2013, Grice rented rooms at hotels in Henrietta and Rochester, NY, for the minor victim to meet with customers.
During that same time period, the defendant also coerced an adult victim to engage in commercial sex acts. Grice met the adult victim, a self-described heroin addict, in Rochester and used heroin to coerce the victim to work for him as a prostitute. Again, the defendant placed ads for the adult victim on Backpage.com and would rent hotel rooms at various locations for the adult victim to with clients and engage in commercial sex acts. On at least one occasion, Grice threatened the adult victim with use of force and on at least one other occasion, hit the adult victim when she wanted to stop prostituting for him.
“Today’s significant sentence demonstrates this Office’s commitment to protecting the victims of human trafficking, especially where, as here, such victims are, as a result of their age or addiction, among the most vulnerable among us,” said Acting U.S. Attorney James P. Kennedy, Jr. “We will continue to do all that we can to remove from our society those who perceive frailty in the human condition as something to be exploited in order to make money.”
"This sentence ensures that this predator will no longer be a threat to the young people in our community," said Special Agent-in-Charge Kevin Kelly of HSI Buffalo. "HSI will continue to work with our partners to bring sex traffickers to justice, while ensuring the survivors get the support they need to rebuild their lives."
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.Restaurant Owner Sentenced for Multiple Fraud SchemesRead the Press Release
BOSTON – A restaurant owner was sentenced yesterday in federal court in Boston for committing tax and insurance fraud involving 11 Boston-area restaurants and for committing visa and immigration fraud.
Hazrat Khalid Khan, 58, a Pakistani national residing in Middletown, N.Y., was sentenced to 30 months in prison, one year of supervised release, and will be subject to deportation proceedings upon completion of his sentence. Khan was also ordered to pay restitution of $2,343,155 to the Internal Revenue Service (IRS) and $27,863 to two insurance companies he defrauded.
In April 2017, Khan pleaded guilty to conspiring to defraud the IRS, failing to collect and pay over taxes, committing mail fraud, making false statements on a naturalization application and committing visa fraud. The sentence resolves two cases in the District of Massachusetts and one brought in the Southern District of New York. The whereabouts of two of Khan’s co-defendants, Khursed Iqbal and Rahman Zeb, also Pakistani nationals, remains unknown.
Khan was the partial owner of 11 fried chicken takeout restaurants in greater Boston, including Roxbury, Chelsea and Mattapan. As part of a tax fraud scheme that ran for years, Khan and his co-conspirators—generally the managers of these restaurants—defrauded the government and avoided paying payroll and income taxes owed by the stores. They paid their employees in cash and provided tax preparers with false information about the restaurants’ payroll and income, thereby causing the tax preparers to file false tax returns.
Federal law requires employers to withhold payroll taxes, which includes Social Security and Medicare taxes, and then pay them over to the IRS. To avoid paying taxes, Khan and several co-conspirators falsely reported to the IRS the number of employees at their stores, some of whom were undocumented workers, and the wages they paid them. They also failed to file W-2s showing wages paid to employees and falsely described on tax returns their sales, total income, compensation of officers, salaries and wages, and taxable income. Khan and his co-conspirators also failed to withhold payroll taxes and pay them over to the IRS, resulting in approximately $2.3 million in unpaid federal payroll and income taxes over a five-year period.
Khan also underreported payroll to the workers’ compensation insurance providers for the 11 restaurants he and his co-conspirators controlled, thereby defrauding insurers. Lastly, Khan repeatedly made false statements to obtain immigration benefits. Specifically, on two occasions – first in connection with obtaining legal permanent resident status and again when applying to naturalize as a U.S. citizen – Khan falsely denied that he had previously been arrested or convicted of a crime, when, in fact, Khan had been previously convicted in federal court of alien smuggling.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement. The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau. Assistant U.S. Attorneys John A. Capin and Brian A. Pérez-Daple of Weinreb’s Criminal Division prosecuted the case.
Rapid City Man Sentenced on Methamphetamine ChargesRead the Press Release
South Dakota, man convicted of Possession With Intent to Distribute a Controlled Substance was sentenced on October 30, 2017, by U.S. District Judge Roberto A. Lange.
Thomas Gary Thompson, age 28, was sentenced to 235 months in custody, followed by 6 years of supervised release, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Thompson was indicted by a federal grand jury on April 4, 2017. He pled guilty on August 14, 2017.
On March 22, 2017, Thompson was the driver of a vehicle, which crashed east of White River, South Dakota. Thompson fled from the vehicle on foot carrying four bundles wrapped in cellophane. Thompson was eventually apprehended by law enforcement. The four bundles, tested by the Drug Enforcement Administration’s laboratory, contained approximately four pounds of pure methamphetamine.
This case was investigated by the Mellette County Sheriff’s Office, South Dakota Department of Criminal Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Thompson was immediately turned over to the custody of the U.S. Marshals Service.
Pueblo Police Department and Southern Colorado Safe Streets Task Force Announce the Arrest of Five Individuals and the Seizure of Historic Amounts of Heroin in Southern ColoradoRead the Press Release
DENVER – The Pueblo Police Department, the Colorado U.S. Attorney’s Office, and the FBI Denver Division, all parts of the Southern Colorado Safe Streets Task Force, announced the seizure of historic amounts of heroin from two residences and a business located in Pueblo, Colorado. Following the seizure, the U.S. Attorney’s Office obtained grand jury indictments charging five individuals with distribution of drug charges. Four of the five defendants were also charged with federal firearms violations. All five defendants are in federal custody with charges pending and have made initial appearances.
The criminal investigation began in Pueblo in December 2016, when the Southern Colorado Safe Streets Task Force began investigating criminal activity associated with several street gangs operating in the Pueblo area. As a part of that investigation federal agents and state and local law enforcement, including the Pueblo Police Department, executed search warrants on three locations. Two were residences in Pueblo, with the third a Pueblo business called “Get Your Fix Automotive”. Seized from the three locations were approximately:
- 28 kilograms of heroin
- 2.5 pounds of methamphetamine
- 50 grams of cocaine
- 35 firearms, including several stolen weapons, and a machine gun
- $540,000 in cash
Those indicted include:
- Daniel Vasquez, of Pueblo, charged with Possession with Intent to Distribute heroin and Felon in Possession of a firearm.
- Roger Bujanda, of Pueblo, charged with Possession with Intent to Distribute heroin and Felon in Possession of a firearm.
- Jesus Mercado Valdez, of Pueblo, charged with Possession with Intent to Distribute heroin and Felon in Possession of a firearm.
- Gage Rael, of Pueblo, charged with Possession with Intent to Distribute heroin and Felon in Possession of a firearm.
- Leonard Aragon, of Pueblo, charged with two counts of Possession with Intent to Distribute heroin.
The heroin alone is worth approximately $8,000,000. If cut for sale, it could provide up to 40,000 user doses. One house alone yielded over $300,000 in cash and a substantial amount of the heroin seized, in addition to the many assault weapons hidden throughout. The heroin was distributed on the streets of Pueblo, as opposed to being stored for distribution in other cities.
Sentences regarding heroin distribution depend on the weight of the drugs seized or trafficked. Possession with Intent to Distribute a kilogram or more of heroin carries a penalty of not less than 10 years, and not more than life in federal prison, as well as a fine of up to $250,000. Possession with intent to distribute a lower amount of heroin carries a penalty of not less than 5 years, and up to 40 years in prison. Also, being a felon in possession of a firearm carries a penalty of not more than 10 years in federal prison, and up to a $250,000 fine.
“This series of cases reflects forensic partnership policing at its best,” said Acting U.S. Attorney Bob Troyer. “Dangerous individuals and their poison and weaponry are now gone. With minimal disruption, Pueblo is a safer place.”
“Solid relationships between law enforcement and prosecutorial offices at all levels, Federal, State and Local, creates an effective tool for dealing with violent crime,” said Pueblo Police Chief Troy Davenport. “FBI Safe Streets is a great example of those relationships and the kind of effort that our citizens deserve. Our community is much safer today because of this relationship and cooperative effort. The Pueblo Police Department is a proud participant.”
"The outcome of this case is indicative of the success that can be attained when agencies combine resources to dismantle drug trafficking organizations," said FBI Special Agent in Charge Calvin Shivers. "Crimes of this nature destroy our neighborhoods and the futures of our children. We are confident this case will send a message to those contemplating trafficking heroin and other dangerous illegal narcotics they will be aggressively investigated and prosecuted to the full extent of the law. The FBI will continue to work with our law enforcement partners and prosecutors to attack the heroin epidemic and remove violent criminals from our neighborhoods."
These prosecutions were coordinated with Jeff Chostner and the 10th Judicial District Attorney’s Office. This investigation was handled by the Pueblo Police Department, as part of the FBI Southern Colorado Safe Streets Task Force, which includes the Pueblo County Sheriff’s Office, the Canon City Police Department, the Fountain Police Department, the Colorado Springs Police Department, the El Paso County Sheriff’s Office, the state Department of Corrections Office of Inspector General, the state Department of Corrections Office of Parole, the Department of Homeland Security’s U.S. Immigration and Customs Enforcement, the Colorado Bureau of Investigation (CBI), the Department of Homeland Security (HSI), the IRS CI, and Air Force Office of Special Investigations.
The defendants are being prosecuted by Assistant U.S. Attorney Beth Gibson.
The charges are allegations, and the defendants are presumed innocent unless and until proven guilty
Postal Employee Charged with Opening MailRead the Press Release
PITTSBURGH – A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of Opening of Mail by Postal Employee, Acting United States Attorney Soo C. Song announced today.
The two-count indictment named Ronald Wojcik, 38, of Tarentum, PA, as the sole defendant.
According to the indictment presented to the court, on March 3, 2017, Wojcik unlawfully opened two articles of mail that had been entrusted to him as an employee of the United States Postal Service.
The law provides for a maximum total sentence of 10 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Postal Service-Office of Inspector General 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.