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Tuesday 19 September 2017
Pennsylvania Company to Pay $3.5 Million to Resolve Allegations It Caused Fire at FAA FacilityRead the Press Release
NEWARK, N.J. – A Pennsylvania company doing business in New Jersey will pay $3.5 million to resolve allegations that it caused a fire at the Federal Aviation Administration’s William J. Hughes Technical Center in Atlantic City, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
EDA Contractors Inc. (EDA), a corporation headquartered in Bensalem, Pennsylvania, received a government contract in March 2012 to perform roofing work at the FAA Technical Center and began work in May 2012. Part of the contract involved the replacement of a roof at Building 300 of the FAA Technical Center. On June 22, 2012, approximately half an hour after EDA’s workers finished work for the day, a fire engulfed the rooftop of Building 300, causing extensive damage.
The consent judgment agreed to by the United States and EDA and entered by the court resolves allegations that the negligence of EDA’s employees was the proximate cause of the fire.
Acting U.S. Attorney Fitzpatrick credited the Legal Office of the FAA Technical Center, under the direction of Diane Cherinchak Loughrin, and Senior Attorney William Sheehan and Program Analyst Brenda Martello, for their support in gathering information and providing substantial assistance during the litigation and settlement negotiations.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division in Newark.
Defense counsel: Floyd Cottrell Esq., Newark
Owner of Durable Medical Equipment Company Pleads Guilty to Health Care FraudRead the Press Release
WASHINGTON – Emeka H. Chijioke, 40, formerly of Atlanta, Ga., and Nigeria, pled guilty today to a federal charge of health care fraud stemming from a scheme in which he defrauded the District of Columbia’s Medicaid program out of more than $500,000.
The guilty plea was announced by U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
Chijioke pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Chijioke faces a likely range of 24 to 30 months in prison and a fine of up to $95,000. The plea agreement calls for Chijioke to pay $552,343 in restitution to the D.C. Medicaid program and an identical amount in a forfeiture money judgment. The Honorable Senior Judge Paul L. Friedman scheduled sentencing for Dec. 13, 2017.
Chijioke was arrested in December 2016 in Germany and extradited to the United States in April 2017 to face charges in an indictment returned in the District of Columbia.
According to a statement of offense submitted to the Court, Chijioke was the majority owner, registered agent, and chief executive officer of Mead Medical Group, LLC, a durable medical equipment company organized in Maryland. Mead Medical provided medical equipment supplies, including incontinence supplies and garments, to District of Columbia Medicaid recipients.
Beginning in 2007 and continuing through 2012, Chijioke engaged in a scheme to defraud D.C. Medicaid by billing for incontinence supplies that were not provided, as detailed in the statement of offense. Chijioke instructed his office staff to complete doctor prescriptions calling for beneficiaries to receive the maximum amount of incontinence supplies allowed by D.C. Medicaid. At the same time, he had his office staff contact the Medicaid recipients to determine from them the actual amount of incontinence supplies they needed, and to provide them with those supplies. Chijioke hired a billing company to submit claims to the Medicaid contractor as if the maximum amount of supplies were provided to the recipients rather than the actual amount supplied. By arranging for the maximum amount of incontinence supplies to be billed, rather than the amount actually provided, Chijioke obtained approximately $580,000 that he was not entitled to receive from Medicaid.
During the investigation, $28,600 in funds generated through the scheme was administratively forfeited.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Special Agent in Charge DiGiulio expressed appreciation for the work performed by Special Agents from the FBI and HHS OIG. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section; former Assistant U.S. Attorney Lionel André; Paralegal Specialists Christopher Toms and Jessica Mundi; former Paralegal Specialists Corinne Kleinman and Kaitlyn Kruger, and Litigation Technology Specialist Claudia Gutierrez. Finally, they commended the work of Assistant U.S. Attorneys Virginia Cheatham and Kondi Kleinman, of the Fraud and Public Corruption Section, who are prosecuting the case.
Nightclub owner and long-time fugitive sentenced to 11 years of federal prison for drug traffickingRead the Press Release
ATLANTA – Christopher Dixon, a/k/a “Yardman,” a fugitive from justice for almost six years, has been sentenced to prison for trafficking over 1,000 pounds of marijuana and approximately 25,000 pills of MDMA (ecstasy) and BZP (a drug similar to ecstasy). Dixon was involved with a drug organization that distributed over 1 million pills of MDMA and BZP.
“Dixon, and the drug organization that he worked with, distributed a staggering amount of drugs in this District,” said U.S. Attorney John A. Horn. “Fortunately, after years on the lam, Dixon has been brought to justice, and will serve his sentence like the other defendants in this case.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated of the sentencing, “This high-level poly-drug trafficker was “collared” because of the great working relationship that DEA has with its federal, state and local counterparts and the United States Attorney’s Office. Mr. Dixon eluded justice for several years, but his days on the run came to an abrupt end when he was ultimately captured. He will now spend well-deserved time in prison for the crimes he committed and his apprehension makes our communities a safer place today.”
According to U.S. Attorney Horn, the charges and other information presented in court: From late-2009 to late-2010, several state, federal, and international agencies conducted an investigation of an Atlanta drug trafficking organization that used corrupt law enforcement officers to further its illegal activities. Ultimately, the investigation resulted in the arrest, indictment, and conviction of more than 15 defendants, including Dixon.
For his part, Dixon executed countless drug transactions and supervised several lower-level drug traffickers, while simultaneously running Club Xpose (a nightclub in DeKalb County). In total, Dixon distributed approximately 25,000 pills of MDMA and BZP and 1,000 pounds of marijuana. In particular, on June 21, 2010, based on wiretapped calls and a covert surveillance operation, law enforcement officers caught Dixon in a stolen car with approximately 4,000 pills of MDMA and BZP and loaded handgun. During the course of the conspiracy, Dixon used former-DeKalb County Police Officer Donald Bristol to obtain sensitive law enforcement information. Bristol was previously sentenced to a year and a day in prison for his conduct.
On December 15, 2010, law enforcement officers executed a series of coordinated arrests. As part of the take-down, agents attempted to arrest Dixon and also had him contacted via telephone. Nevertheless, Dixon failed to turn himself in and remained a fugitive from justice for almost six years. In November 2016, Dixon was arrested on obstruction and marijuana trafficking charges in Franklin County, Georgia.
Christopher Dixon, 44, formerly of DeKalb County, Georgia, has been sentenced to 11 years in prison to be followed by five years of supervised release. Dixon pleaded guilty to a conspiratorial drug trafficking charge on June 16, 2017.
This case was investigated by the Drug Enforcement Administration; Immigration Customs Enforcement (ICE); ICE - Office of Professional Responsibility; ICE - Office of Inspector General; ICE - Homeland Security Investigations; Jamaican Constabulary Force - Anti-Corruption Branch; DeKalb County Police Department; Internal Revenue Service - Criminal Investigation; Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Delta Airlines Corporate Security.
Assistant U.S. Attorneys Jeffrey W. Davis, L. Skye Davis, and Dahil Goss prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
New York Man Sentenced to Two Years in Prison in International $200 Million Credit Card Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 24 months in prison for his role in one of the largest credit card fraud schemes ever charged by the Justice Department, Acting U.S. Attorney William E. Fitzpatrick announced.
Raghbir Singh, 61, of Hicksville, New York, previously pleaded guilty before U.S. Magistrate Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to commit bank fraud. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Singh was originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; finally, run up large loans.
The scope of the criminal fraud enterprise required the defendants and their conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Singh admitted he helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. He also admitted he knew the cards would be used fraudulently at businesses.
In addition to the prison terms, Judge Arleo sentenced Singh to three years of supervised release and fined him $1,000.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s sentencings. He also thanked postal inspectors, under the direction of Postal Inspector in Charge James V. Buthorn, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt. He also thanked the U.S. Social Security Administration for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit in Newark.
This case was brought in coordination with the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: David E. Levine Esq., Brooklyn, New York
Montgomery County Man Sentenced to 39 Months in Federal Prison for Fraud Schemes with Victim Losses Totaling over $490,000Read the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Se Chang Moon, a/k/a Warren Moon, age 50, formerly of Montgomery County, Maryland, to 39 months in prison, followed by five years of supervised release, for bank fraud and aggravated identity theft, arising from schemes in which the defendant told victims that he would help them to refinance loans on their respective homes.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); and Chief J. Thomas Manger of the Montgomery County Police Department.
According to court documents, Moon represented to victims that he was a loan officer and that he would help them obtain financing on their respective homes. Moon requested and obtained over 30 different payments from Victim A totaling over $300,000 for this purpose. Victim A transferred money to Moon believing that Moon was using the money to refinance the loan on Victim A’s home. Moon provided Victim A with phony documents relating to the purported refinance, including fraudulent “pre-approval letters.” Instead, Moon kept the money that Victim A paid to Moon for Moon’s personal use.
With respect to Victims B, C and E, after obtaining the victims’ personal information, purportedly to obtain refinancing, Moon used the victims’ personal information without their knowledge or permission, to obtain loans in their names. Moon then directed the loan proceeds into bank accounts controlled by Moon.
United States District Judge Paul W. Grimm also ordered Moon to pay restitution in the amount of $652,542.07 and entered an order of forfeiture in the amount of $499,937.07.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 United States attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the FHFA-OIG and the Montgomery County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Erin Pulice, who prosecuted the case.
Monongalia County man indicted on campaign fraud chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Morgantown, West Virginia man was indicted by a federal grand jury on charges related to campaign fraud, Acting United States Attorney Betsy Steinfeld Jividen announced.
James L. Laurita, Jr., age 57, was indicted on one count of “Scheme to Cause False Statements to Federal Election Commission,” two counts of “Causing Contributions in the Name of Another,” two counts of “Causing Excessive Contributions ,” and two counts of “Causing False Statement to Federal Election Commission.” Laurita, former president and CEO of Mepco, LLC, of Morgantown, is accused of devising a scheme to unlawfully use employees of Mepco, LLC and their spouses to make campaign contributions to several federal campaigns with company funds. The crimes are alleged to have occurred from March 2010 to July 2013 in Northern District of West Virginia and elsewhere.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The Federal Bureau of Investigation is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Monmouth County, New Jersey, Man Admits Trying to Sell Employer’s ‘As Seen on TV’ Trade Secrets to CompetitionRead the Press Release
TRENTON, N.J. – A former employee of a New York company that invests in, imports and distributes “As Seen On TV” products today admitted trying to sell trade secrets to one of the company’s competitors, Acting U.S. Attorney William E. Fitzpatrick announced.
Ralph Mandil, 38, of West Long Branch, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
The products sold by Mandil’s employer, identified in the information as “Victim Company 1,” included electrical and non-electrical appliances, beauty and personal care, pet care, fitness, auto and outdoor products that are frequently marketed via television ads and are commonly sold at large retailers such as Walmart.
From August 2016 through October 2016, Mandil communicated and met with people he believed were representatives of a New Jersey-based competitor of Victim Company 1. These individuals were actually government agents outfitted with audio and video recording devices.
Mandil offered to provide the agents with information belonging to Victim Company 1, in addition to providing them with access to Victim Company 1’s “drop box,” or cloud storage account, in exchange for money. Mandil also provided the government agents with samples of the merchandise he could steal from Victim Company 1.
The wire fraud count to which Mandil pleaded guilty carries a maximum potential penalty of 20 years in prison. Sentencing is scheduled for Jan. 22, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Zach Intrater, Deputy Chief of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Justin Walder Esq. and Aidan O’Connor Esq., Hackensack, New Jersey.
Mexican Citizen Pleads Guilty to Illegal Re-EntryRead the Press Release
PLATTSBURGH, NEW YORK – Raul Meza, age 48, and a citizen of Mexico, pled guilty today to illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Meza admitted that on August 18, 2017, a Border Patrol agent found him walking down a road in Champlain, New York, about 250 yards south of the border between the United States and Canada. Meza had already been twice removed from the United States to Mexico, first in 2001 and again in 2010. He did not have authorization to return.
Senior United States District Judge Norman A. Mordue is scheduled to sentence Meza on December 18, 2017. Meza faces up to 2 years in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Border Patrol and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Mexican Businessman Pleads Guilty to Orchestrating $20 Million Tax Fraud Against the Government of MexicoRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that CARLOS DJEMAL NEHMAD pled guilty to wire fraud in connection with a scheme to fraudulently obtain over $20 million in tax refunds from the government of Mexico by creating the appearance of legitimate business activity through the transfer of over $100 million through dozens of shell companies in the United States and Mexico. DJEMAL’s plea was entered earlier today in Manhattan federal court before U.S. District Judge Alvin K. Hellerstein.
Acting U.S. Attorney Joon H. Kim said: “As the defendant admitted today, he led an international scheme that used dozens of shell companies in the United States to defraud the Mexican government of millions of dollars. We are committed to holding accountable those who use the United States financial system to perpetrate fraud.”
According to the allegations contained in the Indictment to which DJEMAL pled guilty, statements made during the plea and other court proceedings, and other documents in the public record:
Beginning in June 2011 through May 2016, DJEMAL orchestrated a scheme to defraud the Mexican government of tax revenue relating to Mexico’s value added tax (“VAT”). The Mexican government imposes VAT on goods sold from one Mexican company to another; however, when certain goods (such as cellular phones) are exported from Mexico, the previously paid VAT is refunded to the exporter. DJEMAL created companies in Mexico and recruited individuals in the United States to create and control dozens of companies in the United States (“Front Companies”) purportedly doing business as importers and exporters of cellular phones in order for DJEMAL to fraudulently obtain VAT refunds from the Mexican government.
In order to carry out the scheme, DJEMAL caused Front Companies in Mexico to purchase outdated cellular phones from other companies seeking to sell outdated inventory. DJEMAL then caused these phones to be exported to Front Companies in the United States owned and operated by others he recruited to the scheme. During the export process, DJEMAL obtained fraudulent invoices and created export documents that falsely inflated the value of the phones being exported, thereby enabling him to fraudulently seek inflated VAT refunds from the Mexican tax authority.
Once the phones were shipped to the United States, they were transferred to one or more Front Companies in the United States only to be shipped back to a different Front Company in Mexico. Through this process, the phones were shipped repeatedly in a circular fashion between Front Companies controlled by DJEMAL and his co-conspirators in Mexico and the United States, enabling DJEMAL to obtain multiple fraudulent VAT refunds for the same phones.
In order to create the appearance of legitimate cell phone sales, each transfer of phones was generally accompanied by a transfer of funds to and from accounts held in the name of the relevant Front Companies. As part of the scheme, each co-conspirator who controlled a Front Company receiving funds as part of the scheme retained approximately 1 percent for his participation in the scheme.
Between approximately June 2011 to approximately May 2016, DJEMAL and his co-conspirators moved more than $100 million dollars through dozens of accounts maintained by Front Companies in this fashion, including through accounts maintained at a financial institution in the Southern District of New York, in order to obtain over $20 million in VAT refunds from the Mexican government.
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DJEMAL, 56, of Mexico City, pled guilty to one count of wire fraud. DJEMAL faces a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for January 19, 2018, before Judge Hellerstein. As part of his plea, DJEMAL agreed to forfeit cash, artwork, and his shareholding in Investabank, a Mexican bank in which DJEMAL was part owner.
Co-defendants Max Fraenkel and Daniel Blitzer previously pled guilty to wire fraud and money laundering and are cooperating with the government. The cases of co-defendants Braulio Lopez and Roberto Moreno remain ongoing.
Mr. Kim praised the outstanding work of the Internal Revenue Service, Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, the Mexican Tax Administration Service, and the Mexican Secretary of Finance and Public Credit for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Daniel M. Tracer and Kiersten A. Fletcher are in charge of the case.
Metairie Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that BRIAN LISTER, age 31, of Metairie, pled guilty today to a one-count Indictment charging him with receipt of images and videos depicting the sexual exploitation of children.
According to court documents, Special Agents with the Federal Bureau of Investigation executed a search warrant at LISTER’s residence on July 23, 2015, after obtaining information that LISTER had repeatedly accessed a website dedicated to the advertisement and distribution of child pornography. During the search, the FBI seized numerous electronic items including one laptop computer and one external digital storage device that contained images and videos of child pornography. A forensic examination of the device revealed that LISTER used the devices to search for, download, and save images and videos of children as young as approximately two years old engaging in sexually explicit conduct. LISTER obtained most, if not all, of the images and videos via a peer-to-peer file sharing program. The forensic examination located approximately 1,148 images and one video of prepubescent children engaging in sexually explicit conduct on LISTER’s electronic devices.
LISTER faces a mandatory minimum term of imprisonment of five years and a maximum of 20 years, followed by up to a lifetime of supervised release and a $250,000 fine. He can also be required to register as a sex offender. U.S. District Judge Jane Triche Milazzo set sentencing for December 21, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Madisonville Resident Sentenced to over Twelve Years in Prison for Distributing and Possessing Child PornographyRead the Press Release
KNOXVILLE, Tenn.- On September 19, 2017, Neal Allen Holland, 28, of Madisonville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 151 months in federal prison for distributing child pornography. Following his release from prison, Holland will be supervised by the U.S. Probation Office for 15 years and required to register with the sex offender registry in any state in which he resides, works, or attends school.
Holland pleaded guilty in October 2016 to federal charges stemming from his use of an Internet chatroom and an online cloud storage account to make child pornography available for downloading by others via the Internet. A search of his residence resulted in the seizure of evidence confirming that he had been distributing child pornography that he had accessed, downloaded, and stored on his computer.
This investigation was conducted by the U.S. Department of Homeland Security with substantial assistance from the Monroe County Sheriff’s Office and Madisonville Police Department. Assistant U.S. Attorney Matthew Morris represented the United States.
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, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Leader and Founder of Yellow Tape Money Gang in Newburgh Convicted in White Plains Federal Court of Racketeering, Attempted Murder, and Narcotics OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that TYRIN GAYLE, 24, was convicted today of racketeering, attempted murder, narcotics, and witness tampering charges, all in connection with his leadership of the Yellow Tape Money Gang in the City of Newburgh, New York. The jury convicted GAYLE on all seven counts in the controlling indictment following a two-week trial before U.S. District Judge Cathy Seibel.
Acting Manhattan U.S. Attorney Joon H. Kim stated: “Gang leader Tyrin Gayle chose the name Yellow Tape Money Gang to glamorize the yellow tape surrounding the scenes of the gang’s many shootings and the money the gang raked in selling crack cocaine and heroin. As the jury found today, during his leadership of that gang, Gayle not only engaged in ruthless violence, shooting an innocent bystander in the stomach, but also used minors to sell drugs and carry the gang’s guns. With today’s verdict, Gayle has been held to account for his vicious crimes.”
According to court papers and evidence admitted at trial:
From 2015 to May 2016, TYRIN GAYLE led the Yellow Tape Money Gang, called “YTMG” for short, in the City of Newburgh. Members of YTMG engaged in, among other things, shootings, crack cocaine distribution, and heroin distribution. The gang’s adult members, including GAYLE, regularly used minors to sell their drugs, carry their guns, and commit their shootings. During that same period, YTMG, whose territory centered around the intersection of William Street and Hasbrouck Street, engaged in a violent rivalry with another Newburgh street gang, known as Southside, whose territory centered around the intersection of South Street and Chambers Street. On December 11, 2015, GAYLE and two other YTMG members drove to the intersection of South Street and Liberty Street, where they opened fire on Southside gang members in broad daylight. At least one Southside member returned fire, causing the YTMG car to crash into a tree. On February 21, 2016, in retaliation for a shooting of one YTMG member, GAYLE and others drove to the intersection of South Street and Chambers Street. When GAYLE was unable to locate any Southside gang members in the area, he and his fellow gang members instead took aim at an innocent bystander who happened to be in Southside territory at the time. During the ensuing drive-by shooting, that innocent bystander was shot in the abdomen.
For these and related activities, GAYLE was convicted of one count of racketeering conspiracy involving more than 280 grams of crack cocaine, which carries a maximum sentence of life; one count of attempted murder in aid of racketeering, which carries a maximum sentence of 10 years; one count of assault and attempted murder in aid of racketeering, which carries a maximum sentence of 20 years; one count of conspiracy to distribute more than 280 grams of crack cocaine, which carries a mandatory minimum sentence of 10 years and a maximum sentence of life; one count of using a minor in drug operations, which carries a maximum sentence of life; one count of possessing, brandishing, and discharging a firearm in furtherance of racketeering and narcotics conspiracies, which carries a mandatory minimum sentence of 10 years, to be served consecutively to any other sentence, and a maximum sentence of life; and attempted witness tampering, which carries a maximum sentence of 20 years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
GAYLE is scheduled to be sentenced on January 16, 2018, before Judge Seibel.
Acting U.S. Attorney Kim praised the FBI, the ATF, the City of Newburgh Police Department, and the Town of Newburgh Police Department for their outstanding work in this investigation. He also thanked the Orange County Sheriff’s Office, the Town of New Windsor Police Department, the New York State Police, and the Orange County District Attorney’s Office for their invaluable assistance with this case.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Maurene Comey, Jacqueline Kelly, and Lauren Schorr are in charge of the prosecution.
Kyle Man Found Guilty of ArsonRead the Press Release
United States Attorney Randolph J. Seiler announced that Danny Ferguson, age 42, of Kyle, South Dakota, was found guilty of Arson following a federal trial in Rapid City, South Dakota.
The charge carries a maximum penalty of up to life in custody and/or a $250,000 fine, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established that Ferguson used a gasoline and diesel soaked blanket to set fire to an occupied trailer house near Kyle in April 2015.
This case was investigated by the Federal Bureau of Investigation, the Oglala Sioux Tribe Department of Public Safety, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Megan Poppen prosecuted the case.
A sentencing date was set for February 23, 2018. Ferguson was remanded to the custody of the U.S. Marshals Service pending sentencing.
Justice Dept. Settles Discrimination Lawsuit Against State of RI and Dept. of CorrectionsRead the Press Release
WASHINGTON – The Justice Department announced today that it has reached a settlement agreement with the State of Rhode Island (the State or Rhode Island) and the Rhode Island Department of Corrections (RIDOC) to resolve its lawsuit alleging that the defendants engaged in a pattern or practice of employment discrimination against African American and Hispanic applicants for entry-level correctional officer positions in violation of Title VII of the Civil Rights Act of 1964 (Title VII). Title VII is a federal law that prohibits employment discrimination on the basis of race, color, sex, national origin or religion.
In a joint motion filed yesterday in the U.S. District Court for the District of Rhode Island, the Justice Department and Rhode Island asked the court for provisional approval and entry of the settlement agreement. Under the agreement, the State will adopt and use Title VII-compliant selection device(s) to hire entry-level correctional officers. The settlement agreement further provides for the priority hire of 18 eligible African American claimants and 19 eligible Hispanic claimants who were screened out of the hiring process by the employment tests challenged by the United States. All eligible claimants for priority hire relief must meet the employer’s otherwise lawful hiring criteria. The settlement further provides for an interim hiring process to address the State’s immediate operational needs as well as a monetary relief fund of $450,000 to compensate eligible claimants who were affected by the practices challenged by the United States. The settlement agreement is subject to court approval and the parties have requested, jointly, that the court schedule a fairness hearing so that those persons affected by the settlement agreement are afforded an opportunity to comment on its terms.
The proposed settlement agreement, if approved by the court, will resolve the Title VII complaint filed by the Justice Department on February 10, 2014. In its complaint, the Justice Department alleged that RIDOC’s use of written and video examinations as part of its multi-step selection process unnecessarily screened out African American and Hispanic applicants from further consideration in the hiring process resulting in a disparate impact against these applicants without the requisite showing that the employment practice is job-related and consistent with business necessity.
“This Settlement Agreement is the product of negotiations between the United States and the State of Rhode Island and has resulted in the expansion of equal employment opportunities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department is committed to enforcing Title VII to remove unlawful discriminatory barriers.”
The case was brought by Trial Attorneys David Reese, Kunti D. Salazar and Emily Given of the Civil Rights Division’s Employment Litigation Section. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
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Justice Department Settles Employment Discrimination Lawsuit against the State of Rhode Island and the Rhode Island Department of CorrectionsRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with the State of Rhode Island (the State or Rhode Island) and the Rhode Island Department of Corrections (RIDOC) to resolve its lawsuit alleging that the defendants engaged in a pattern or practice of employment discrimination against African American and Hispanic applicants for entry-level correctional officer positions in violation of Title VII of the Civil Rights Act of 1964 (Title VII). Title VII is a federal law that prohibits employment discrimination on the basis of race, color, sex, national origin or religion.
In a joint motion filed yesterday in the U.S. District Court for the District of Rhode Island, the Justice Department and Rhode Island asked the court for provisional approval and entry of the settlement agreement. Under the agreement, the State will adopt and use Title VII-compliant selection device(s) to hire entry-level correctional officers. The settlement agreement further provides for the priority hire of eighteen (18) eligible African American claimants and nineteen (19) eligible Hispanic claimants who were screened out of the hiring process by the employment tests challenged by the United States. All eligible claimants for priority hire relief must meet the employer’s otherwise lawful hiring criteria. The settlement further provides for an interim hiring process to address the State’s immediate operational needs as well as a monetary relief fund of $450,000 to compensate eligible claimants who were affected by the practices challenged by the United States. The settlement agreement is subject to court approval and the parties have requested, jointly, that the court schedule a fairness hearing so that those persons affected by the settlement agreement are afforded an opportunity to comment on its terms.
The proposed settlement agreement, if approved by the court, will resolve the Title VII complaint filed by the Justice Department on February 10, 2014. In its complaint, the Justice Department alleged that RIDOC’s use of written and video examinations as part of its multi-step selection process unnecessarily screened out African American and Hispanic applicants from further consideration in the hiring process resulting in a disparate impact against these applicants without the requisite showing that the employment practice is job-related and consistent with business necessity.
“This Settlement Agreement is the product of negotiations between the United States and the State of Rhode Island and has resulted in the expansion of equal employment opportunities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department is committed to enforcing Title VII to remove unlawful discriminatory barriers.”
The case was brought by Trial Attorneys David Reese, Kunti D. Salazar and Emily Given of the Civil Rights Division’s Employment Litigation Section. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Jury Convicts Rochester Man of Sex Trafficking Minors and AdultsRead 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 a federal jury convicted Stephen Jones, 30, of Rochester, NY, of conspiring to recruit underage girls to commit commercial sex acts, and sex trafficking of minors and adults by force, fraud or coercion. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life.
Assistant U.S. Attorneys Melissa M. Marangola and Craig R. Gestring, who together handled the trial of the case, stated that between 2011 and June 2014, the defendant conspired with others, including Kasandra Weeks and Christian Nartey, to target and manipulate seven minor victims and two adult victims, many of whom were at-risk and vulnerable, to engage in prostitution activities. While some victims were located through social media accounts, Jones went to the Department of Social Services or women shelters and waited until girls appearing young in age came outside. Victims were promised quick money and drugs, and on other occasions, threatened with violence.
Jones and his co-conspirators posted daily advertisements using fake photos for the victims on backpage.com. One advertisement read: “ITS KRISTEN AND ASHLEY!! Ur 2 favorite young GODDESS up all day READY2play!! :-) CALL NOW!! Victims were taken from the Rochester area to Buffalo, Syracuse, Albany, Utica, and New Jersey in order to engage in prostitution activities and avoid detection by law enforcement. To keep control over the victims, Jones and the others kept the money victims earned from prostitution activities, as many as 10 clients a day, and limited the victims’ communications with family and friends.
With his conviction, Jones joins Kasandra Weeks and Christian Nartey, who were previously convicted, as they await sentencing for their involvement in this sex trafficking ring.
The verdict is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; Immigration and Customs Enforcement, Homeland Security Investigations, of under the direction of Special Agent-in-Charge Kevin Kelly; and the Rochester Police Department, under the direction of Chief Michael Ciminelli.Sentencing for Jones is scheduled for December 5, 2017, at 3:00 p.m., before U.S. District Judge David G. Larimer who presided over the trial of the case.
Johnstown Felon Sentenced for Illegally Possessing RifleRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court in Johnstown to twelve months, plus one day, to be served concurrently with sentence he is presently serving in Clearfield County, and three years’ supervised release, on his conviction of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Eric P. Williams, 36, of Johnstown, Pa.
According to information presented to the court, on December 8, 2015, Williams, who had been convicted in 2001 in Clearfield County, Pennsylvania, of the felony offense of robbery, which is a crime punishable by imprisonment for a term exceeding one year, did possess in and affecting interstate commerce a Stevens, Model 350, 12 gauge shotgun, and a Mossberg, Model 715T, .22 LR caliber, semi-automatic rifle. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Ms. Song commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation that led to the successful prosecution of Williams.
According to Ms. Song, Williams was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Jacksonville Man Guilty of Downloading Sexual Abuse Videos and Images Using the “Dark Web”Read the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Jason Dean Barnes (41, Jacksonville) has been found guilty of receiving child sexual abuse images and videos over the Internet using a “dark web” application following a bench trial. He faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison. A sentencing date has been set for December 18, 2017.
According to court documents, FBI agents began an online undercover investigation to identify individuals who were using a particular anonymizing website on the “dark web” to access and receive images and videos depicting child pornography. In February 2015, FBI agents apprehended the administrator of this website and seized it from its web-hosting facility. Agents identified Barnes after he had accessed child pornography on the website on February 28 and March 3, 2015.
On July 29, 2015, FBI agents executed a search warrant at Barnes’s residence. During an interview, Barnes admitted to searching for, downloading, and viewing child pornography using the website, and that he had struggled with this addiction for a number of years. A forensic examination of Barnes’s laptop computer revealed that it contained at least 500 videos and at least 5,000 images depicting child pornography, including several videos that Barnes had downloaded earlier that same morning.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Indictment Unsealed for Conspiracy to Commit Bank Robbery, Bank Robbery, and Brandishing a FirearmRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that AARON RUDOLPH, age 25, and JOHN RUDOLPH, age 42, both of New Orleans, were charged with conspiracy to commit bank robbery, bank robbery, and brandishing a firearm in furtherance of a crime of violence.
According to the Indictment, on or about August 15, 2017, AARON and JOHN RUDOLPH entered the First Bank and Trust located at 1320 South Morrison Boulevard, in Hammond. The defendants then robbed the bank of approximately $10,490.96 of United States currency, while brandishing a firearm, in violation of Title 18, United States Code, Section 371, Title 18 United States Code 2113(a) and (d), and Title 18 United States Code, Section 924(c)(1)(A)(ii).
Acting U.S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
If convicted of conspiracy to commit bank robbery, AARON and JOHN RUDOLPH each face a maximum term of imprisonment of five years, a fine of $250,000, three years of supervised release after imprisonment, and a $100 special assessment. As to the bank robbery charge, each defendant faces a maximum term of imprisonment of 25 years, a fine of $250,000, five years of supervised release after imprisonment, and a $100 special assessment. For brandishing a firearm in furtherance of a crime of violence, each defendant faces a minimum term of imprisonment of seven years and a maximum term of life, a fine of $250,000, five years supervised release after imprisonment, and a $100 special assessment.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Maria M. Carboni is in charge of the prosecution.
Illegal Alien from Mexico Sentenced to Prison after Returning to the United States Following Two DeportationsRead the Press Release
A Mexican man who had previously been deported twice was sentenced on September 18, 2017, to 21 months in federal prison.
Abundio Garcia-Gonzalez, age 48, a citizen of Mexico who had been living in Iowa City, Iowa, received the prison term after a June 20, 2017, guilty plea to one count of illegal reentry of a removed alien after an aggravated felony conviction.
At the guilty plea, Garcia-Gonzalez admitted he illegally reentered the United States without permission after having been deported from the United States in 1997 and 2006. Garcia-Gonzalez, using various aliases, was also given voluntary returns to Mexico five additional times between 1993 and 1998. Garcia-Gonzalez, using an alias, was previously convicted in California in 1991 of the felony offense of selling cocaine. In 1996, Garcia-Gonzalez, using an alias, was convicted of the felony offenses of possession of cocaine and escape while felony charges are pending. Garcia-Gonzalez was also convicted in Indiana in 2002 of aggravated battery.
Garcia-Gonzalez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Garcia-Gonzalez was sentenced to 21 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Garcia-Gonzalez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-0033.
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Illegal Alien from Guatemala Sentenced to Prison after Returning to the United States Following DeportationRead the Press Release
A Guatemalan man who had previously been deported following a federal conviction for unlawfully using identification documents was sentenced on September 18, 2017, to two years in federal prison.
Luis Eduardo Toj-Gomez, age 25, a citizen of Guatemala who had been living in Postville, Iowa, received the prison term after a June 2, 2017, guilty plea to one count of illegal reentry of a removed alien after a felony conviction.
At the guilty plea, Toj-Gomez admitted he illegally reentered the United States without permission after having been deported from the United States in November 2015. Prior to his deportation, Toj-Gomez was convicted in July 2015 in the United States District Court for the Northern District of Iowa on two counts of unlawful use of identification documents, felony offenses. Toj-Gomez had also been convicted of assault causing bodily injury in Allamakee County, Iowa, and operating while under the influence of alcohol in Fayette County, Iowa.
Toj-Gomez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Toj-Gomez was sentenced to 24 months’ imprisonment. This sentence consisted of a 10-month sentence for violating the conditions of supervised release on the 2015 unlawful use of identification documents conviction and a 14-month sentence on the 2017 illegal reentry conviction. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Toj-Gomez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1013.
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IT Contractor Convicted of Wire Fraud for Defacing Website of Arizona CompanyRead the Press Release
PHOENIX – Tavis Tso, 40, of Tempe, Ariz., a member of the Navajo Nation, was sentenced yesterday by U.S. District Judge David G. Campbell to four years of federal probation. Tso was also ordered to pay $9,145 in restitution to the victim of his crime. Tso had previously pleaded guilty to one count of wire fraud.
According to documents filed in this case and statements made in court, Tso provided information technology (“IT”) services for a company located in Phoenix, Ariz. Tso subsequently used the company’s account information to make changes to the company’s website. These changes prevented the company’s employees from using their email accounts and redirected the company’s homepage to a blank page. Tso then offered to return everything to normal for $10,000. When the company refused to pay the requested amount, Tso redirected the company’s homepage to a pornographic website. Visitors to the company’s website were redirected to the pornographic website for several days before the website was returned to normal.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Matthew Binford and James R. Knapp, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-1502-PHX-DGC
RELEASE NUMBER: 2017-089_Tso
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Health Care Business Owners Plead Guilty to Fraud and Tax Charges on Eve of TrialRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty pleas of three defendants for their involvement in a years-long, multi-million dollar heath care fraud and tax conspiracy. THURLEE BELFREY, 52, ROYLEE BELFREY, 52, and LANORE BELFREY, 42, pleaded guilty on September 14, 2017, before Senior U.S. District Judge Ann D. Montgomery in Minneapolis, Minn. THURLEE BELFREY pleaded guilty to conspiracy to defraud the federal-state Medicaid program and failing to pay over taxes withheld from employees’ pay. ROYLEE BELFREY pleaded guilty to two counts of failure to pay over taxes withheld from employees’ pay. LANORE BELFREY pleaded guilty to conspiring to evade personal income taxes.
Assistant U.S. Attorney Robert Lewis said, “This is another example of the close cooperation between the State of Minnesota and federal agents in exposing and bringing to justice those who commit fraud. Specifically, the efforts of the Medicaid Fraud Control Unit of the Minnesota Attorney General’s Office led to Thurlee Belfrey’s initial exclusion from the Medicaid and Medicare programs. And, thereafter federal and state law enforcement uncovered his concealed, continuing and illegal involvement in Model Health Care, the crux of this fraud.”
According to the defendants’ guilty pleas and the indictment in the case, brothers THURLEE and ROYLEE BELFREY ran multiple health care businesses that received funds from the Medicaid and Medicare programs funded by the federal government and the State of Minnesota. In 2003, following an investigation by the Minnesota Attorney General’s Office into Royal Health Care, a business they started together in the 1990s, THURLEE BELFREY was convicted of felony theft by false representation. Based on his conviction, in 2004 the Minnesota Department of Human Services (DHS) and the United States Department of Health and Human Services (DHHS) excluded THURLEE BELFREY indefinitely from participating in state and federal health care programs, with no right to seek reinstatement for up to 20 years.
Despite this, and as he admitted in his guilty plea, THURLEE BELFREY conspired with his wife LANORE BELFREY to incorporate a new health care company, Model Health Care (Model), to continue the business operations and conceal THURLEE BELFREY’S involvement therein. To do this, and part of the scheme, LANORE BELFREY was named the owner of Model and intentionally failed to disclose THURLEE BELFREY’S involvement in managing the business. Despite being excluded, THURLEE BELFREY continued to manage Model. Government payment records show Model received more than $10,000,000 from Medicaid that would not have been paid but for the fraudulent misrepresentations made about THURLEE BELFREY’S lack of involvement in the businesses. According to the investigation, THURLEE and LANORE BELFREY received millions of dollars from Model during the scheme.
While THURLEE BELFREY ran Model, ROYLEE BELFREY operated several health care businesses as well. According to the defendants’ guilty pleas, between 2007 and 2013, THURLEE and ROYLEE BELFREY deducted and collected money from their employees’ wages, ostensibly for the payment of federal payroll taxes and Federal Insurance Contribution Act (FICA) taxes. However, they intentionally failed to pay the withheld taxes over to the IRS over the course of many years and, instead, used the money for other purposes, including attempts to develop a reality show based on their lives, high-end housing, a Caribbean cruise, luxury retail purchases, and thousands of dollars in cash withdrawals. In total, THURLEE and ROYLEE BELFREY admitted deducting and unlawfully using for their own benefit more than $3,960,000 in withheld taxes between 2007 and 2014.
This case is the result of an investigation conducted by the Minnesota Attorney General’s Office, the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation, and the Office of the Inspector General, United States Department of Health and Human Services.
This case is being prosecuted by Assistant U.S. Attorneys Robert Lewis and David Maria.
Defendant Information:
THURLEE BELFREY, 52
Saint Paul, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
- Failure truthfully to account for and pay over withheld taxes, 1 count
ROYLEE BELFREY, 52
Saint Paul, Minn.
Convicted:- Failure truthfully to account for and pay over withheld taxes, 2 counts
LANORE BELFREY, 42
Minnetonka, Minn.
Convicted:- Conspiracy to defraud the United States, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Hazleton Man Pleads Guilty to Making Straw Purchases of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Amaury Guzman-Escobar, age 31, of Hazleton, pleaded guilty on September 15, 2017, before United States District Court Judge Malachy E. Mannion, to the charge of conspiracy to make false statements to a federally licensed firearms dealer.
According to United States Attorney Bruce D. Brandler, Guzman-Escobar admitted that he and another individual, Crystal Muentes, age 34, of Scranton, provided false information regarding the purchase of two firearms from Dave’s Gun Shop, in Drums, Luzerne County, on June 1, 2016 and June 17, 2016, and the purchase of a firearm from Ed’s Sports Shop in Tamaqua, Schuylkill County, on June 17, 2016. Two of the firearms purchased by Guzman-Escobar and Muentes were later recovered in the mail by Postal Inspectors in Puerto Rico.
Crystal Muentes previously entered a guilty plea before Judge Mannion on September 8, 2017. She is awaiting sentencing.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Postal Inspection Service. Members of the Scranton Police Department also participated in the investigation. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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.
A sentencing date for Guzman-Escobar has not yet been scheduled.
The maximum penalty under federal law for these offenses is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. 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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Harpswell Man Pleads Guilty to Theft of Firearms from a Licensed Firearms DealerRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Hyunkook Korsiak, 36, of Harpswell, Maine pled guilty today in U.S. District Court to theft of firearms from a federally licensed firearms dealer.
According to court records, on January 3, 2017, the defendant stole firearms from C&R Trading Post. The theft was discovered by Brunswick Police Department who responded to a burglar alarm, found a broken window near the building’s entrance, and used a police K9 to locate several firearms, a sledgehammer and drops of blood on snow in nearby woods. The blood was later determined to be the defendant’s. In April 2017, the defendant admitted to stealing the firearms.
Korsiak faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Sagadahoc County Sheriff’s Office; the Brunswick Police Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Garland Woman Admits Role in Health Care Fraud ConspiracyRead the Press Release
DALLAS, Texas — Latecia P. Hill, 51, of Garland, Texas, pleaded guilty today, before U.S. Magistrate Judge Paul D. Stickney, to one count of conspiracy to commit health care fraud stemming from a scheme to defraud Medicare through the submission of false claims for hearing related services. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Hill faces a maximum penalty not to exceed 5 years in federal prison, a $250,000 fine, and may be ordered to pay restitution. Hill will remain on bond pending sentencing.
Latecia Hill’s mother, Pearle L. Madere, 72, pleaded guilty to her role in the conspiracy last month and is awaiting sentencing. Harlan R. Hill, 53, Latecia Hill’s husband, is awaiting trial.
According to documents filed in the case, Harlan Hill owned and operated Total Senior Ear Care (TSEC); Latecia Hill served as its administrator; and Pearle Madere ran day-to-day operations. TSEC, whose offices were located in Dallas, provided hearing-related services to Medicare beneficiaries living in nursing homes. TSEC physicians and medical assistants would go to a facility and would routinely see as many as 100 patients in a day, often spending less than 5 minutes with each patient. These contracted physicians and medical assistants would do a complete “sweep” of the facility and see every patient available, regardless of the need for hearing-related services. Many of the patients were unresponsive and had no way to communicate whether they wanted the service or not. These hearing services were then fraudulently billed to Medicare for reimbursement. This fraudulent business, created by Harlan and Latecia Hill and Pearle Madere caused Medicare to pay TSEC more than $5.1 million for services never rendered or necessary.
The FBI, the U.S. Department of Health and Human Services – Office of Inspector General, and the Texas Attorney General’s Medicaid Fraud Control Unit investigated this case as part of the Medicare Fraud Strike. Assistant U.S. Attorney Katherine Pfeifle is prosecuting.
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Former Santa Fe Engineer Sentenced to Federal Prison for Obstructing IRS and Filing False Tax ReturnsRead the Press Release
ALBUQUERQUE – Darryl J. Gutierrez, 62, of Santa Fe, N.M., was sentenced today in federal court to 33 months in prison followed by one year of supervised release for violating the federal tax laws by obstructing and impeding the administration of the internal revenue laws and filing false tax returns. Gutierrez was also ordered to pay $174,196 in restitution to the Internal Revenue Service (IRS), a $15,000 fine and a $1,100 special penalty assessment.
Gutierrez was indicted on Nov. 5, 2015, and was charged with one count of obstructing and impeding the due administration of the internal revenue laws and ten counts of making and subscribing false tax returns.
Gutierrez proceeded to trial on the eleven-count indictment on March 27, 2017, and concluded March 30, 2017, when the jury returned a guilty verdict on all eleven counts of the indictment. During the trial, the jury learned that Gutierrez was an electrical engineer who worked at Los Alamos National Laboratory for almost 30 years, earning an annual salary ranging from $80,000 to $115,000 in tax years 2000 to 2009. The evidence at trial also established that Gutierrez, after years of regularly filing timely income tax returns with the IRS, stopped complying with the federal tax laws and began engaging in a pattern of obstructive conduct to prevent the IRS from assessing and collecting his taxes.
The evidence at trial showed that Gutierrez’s obstructive tactics included sending frivolous correspondence to the IRS, and, submitting, under penalty of perjury, false tax information to his employer and to the IRS. For instance, the evidence showed that Gutierrez submitted, under penalty of perjury, false withholdings information (Forms W-4) to his employer and false statements of his wages on his personal income tax returns (Forms 1040) filed with the IRS. The evidence further showed that between Nov. 2010 and Jan. 2011, Gutierrez filed ten false federal income tax returns for tax years 2000 to 2009 seeking a refund when in fact Gutierrez owed the IRS approximately $125,000.
This case was investigated by the Albuquerque office of IRS Criminal Investigation, and was prosecuted by Assistant U.S. Attorneys Margaret Vierbuchen and Holland S. Kastrin.
Former Investment Adviser Pleads Guilty to $6 Million FraudRead the Press Release
NORFOLK, Va. – A former investment adviser in Chesapeake pleaded guilty yesterday to one count of investment adviser fraud and one count of conducting unlawful monetary transactions.
According to the statement of facts filed with the plea agreement, Roger Odell Hudspeth II, 48, was an investment adviser and sole owner of Dominion Investment Advisors, LLC. Hudspeth, along with other associates, sold fraudulent, unregistered securities to his clients. Hudspeth performed inadequate due diligence into the fraudulent investment offerings and concealed that the offerings were created, offered, and controlled by his associate, who previously had been banned by the Financial Industry Regulatory Authority (“FINRA”) for fraudulent activities.
As part of the scheme, Hudspeth and others held social security maximization seminars to obtain clients who were often in or near retirement. Hudspeth steered investors to investment offerings that were highly speculative, illiquid, and high risk by making material misrepresentations and omissions. Hudspeth’s clients lost over $6,000,000 as a result of the securities fraud scheme, and Hudspeth received over $700,000 in ill-gotten gains, including $20,000 that he used to put a down payment on a Range Rover.
In early 2016, the Virginia State Corporation Commission entered a judgment order against Hudspeth revoking his licenses, permanently closing Dominion Investment Advisors, LLC, and prohibiting Hudspeth from engaging in any investment advisory activities in the future.
Hudspeth faces a maximum penalty of 15 years in prison when sentenced on January 22, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorneys Melissa E. O’Boyle and Elizabeth M. Yusi are prosecuting 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-122.
Former Huntley Resident Indicted on Bankruptcy Fraud ChargesRead the Press Release
ROCKFORD — A former Huntley man was indicted today by a federal grand jury on charges of bankruptcy fraud.
TRACY L. SUNDERLAGE, 71, was charged with one count of making false statements in a bankruptcy case and one count of making false statements under oath in a bankruptcy proceeding.
As alleged in the indictment, Sunderlage filed a Chapter 11 Bankruptcy Petition on Aug. 12, 2011. On Aug. 30, 2011, Sunderlage filed various bankruptcy schedules and a Statement of Financial Affairs, both signed under penalty of perjury. According to the indictment, Sunderlage made false statements on his Statement of Financial Affairs, concealing fraudulent transfers of 100,000 shares of Gulf Keystone Petroleum Ltd. and approximately $63,242 and $109,493 to a relative, and concealing his receipt of $241,000 of income from the sale of ownership interest in Gulf Keystone Petroleum, his receipt of $25,000 of income from the sale of ownership interests in other companies, his personal property interests in various financial accounts, and his 2002 Jaguar vehicle.
It is further alleged in the indictment that on May 14, 2012, Sunderlage falsely testified under oath at a meeting of creditors, fraudulently concealing assets from the bankruptcy trustee, creditors, and the United States Trustee, including complete information on a transfer of $63,242 Sunderlage made to a relative.
Each charge in this case carries a maximum potential penalty of up to five years in prison, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000 or twice the gross gain or gross loss resulting from that offense, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-In-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; Jeffrey A. Monhart, Director for the Chicago Region of the U.S. Department of Labor - Employee Benefits Security Administration; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Former CFO of International Public Relations Firm Charged in Multi-Million Dollar Embezzlement SchemeRead the Press Release
BOSTON – The former chief financial officer of an international marketing and public relations firm was charged today with embezzling over $3 million from the company.
Edward J. Abell III, 44, of Gloucester, was charged with wire fraud and money laundering and is scheduled to make an initial appearance in federal court before U.S. Chief Magistrate Judge David H. Hennessy on Sept. 21, 2017.
According to court documents unsealed today, Abell served as Vice President of Finance and later Chief Financial Officer of a global integrated marketing agency based in Boston. In that capacity, Abell oversaw all aspects of the company’s finances and controlled all corporate bank accounts. It is alleged that between 2006 and his departure in 2016, Abell embezzled over $3.6 million from his employer by writing company checks to Pinehurst Tax Associates – a firm Abell owned. However, Pinehurst allegedly did not provide any services to Abell’s employer. Rather, it is alleged that Abell used Pinehurst as a shell company through which he channeled embezzled funds to personal bank accounts.
In order to avoid detection, Abell allegedly created fake profiles for Pinehurst within his employer’s internal vendor database and attributed all the fraudulent payments to Pinehurst as “Professional Services” in the financial accounting system. Abell also allegedly filed false personal tax returns with the IRS, which failed to report the millions he obtained through Pinehurst.
In addition to the criminal complaint, the United States obtained seizure warrants for several of Abell’s assets allegedly acquired with fraudulent proceeds. As part of the operation, federal agents seized a 2015 Porsche Macan S, a 2015 Ford F-350 Super Duty, and an E*TRADE brokerage account all owned by Abell or held in his name.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. The charge of money laundering provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the value of the criminally derived property. 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; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Weinreb’s Economic Crimes Unit, is prosecuting the case.
The charges contained in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Bank Employee Charged in White Plains Federal Court with Participating in Violent Bank Robbery in October 2013Read the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Charles Gardner, the Commissioner of the Yonkers Police Department (“Yonkers PD”), announced today the unsealing of a Superseding Indictment charging VIRGINIA BLANCO with participating in the robbery of a Wells Fargo Bank branch in Yonkers, New York, in October 2013, and with aiding and abetting the discharge of a firearm in furtherance of the robbery. BLANCO was arrested this morning and presented before U.S. Magistrate Judge Judith C. McCarthy.
Acting U.S. Attorney Joon H. Kim said: “As alleged, while working as a teller, Virginia Blanco secretly conspired to rob the bank. While not present for the actual robbery, Blanco allegedly played a key role, providing her co-conspirators with inside information to assist them. During the robbery, an alleged co-conspirator discharged two gunshots and the robbers made off with more than $300,000 in cash. Thanks to the tireless efforts of the FBI and the Yonkers Police Department, Virginia Blanco will now face justice.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Whatever motivated the suspect in this case to allegedly provide information to robbers so they could rob the bank she worked in, she now faces the prospect of a federal prison term. It was only luck that no one was injured or killed during this robbery. No amount of money can possibly be worth losing your freedom, because you won’t get away with it. The FBI Westchester Safe Streets Task Force isn’t going to stop looking for the money, and tracking down those responsible.”
According to the allegations in the Superseding Indictment[1], a Complaint previously filed against a co-defendant, and other statements in the public record:
In or about October 2013, BLANCO was working as a teller at a Wells Fargo Bank branch located at 500 Odell Avenue in Yonkers, New York (the “Wells Fargo Branch”). She conspired with co-defendant Giovanni Marte to rob the Wells Fargo Branch and provided critical information to Marte that allowed him and his co-conspirators to carry out the robbery successfully. The robbery took place on or about October 29, 2013. On that date, at approximately 3:17 p.m., Marte and three co-conspirators arrived at the Wells Fargo Branch. One co-conspirator remained in the car while Marte and two co-conspirators entered the bank. Marte and another robber each brandished a firearm and the third robber brandished a wood saw. During the robbery, Marte fired two shots but did not hit anyone. He accessed the vault, filled a bag with approximately $303,500 in cash, and fled the Wells Fargo Branch with the other robbers.
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The Superseding Indictment charges VIRGINIA BLANCO, age 28, of Yonkers, New York, with conspiring to rob the Wells Fargo Branch in or about October 2013, robbing and aiding and abetting the robbery of the Wells Fargo Branch on or about October 29, 2013, and aiding and abetting the carrying and discharging of a firearm in furtherance of a violent crime. The maximum and mandatory minimum sentences are as follows: a maximum of five years in prison on Count One (conspiracy); a maximum of 20 years on Count Two (bank robbery); and a maximum of life in prison, with a mandatory minimum of 10 years, on Count Three (firearm offense).
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI’s Westchester County Safe Streets Task Force, which comprises agents and detectives of the FBI, United States Probation, the City of Yonkers Police Department, the City of Peekskill Police Department, the City of Mount Vernon Police Department, the New York City Police Department, the Westchester County Police, and the Westchester County District Attorney’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Douglas Zolkind is in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the descriptions of the Superseding Indictment set forth below, are only allegations, and every fact described should be treated as an allegation.
Former Attorney Sentenced to More Than 3 Years in Prison for Defrauding Investors of More Than $1 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that BRANDON LISI was sentenced today to 38 months in prison for his role in a scheme to defraud at least four individual investors in real estate transactions of more than $1 million. LISI pled guilty to conspiracy to commit wire fraud on April 3, 2017, for his role in the fraud. LISI entered the guilty plea before U.S. District Judge Katherine Polk Failla, who imposed today’s sentence.
Acting U.S. Attorney Joon H. Kim said: “As he previously admitted, Brandon Lisi, a former attorney, misled clients into investing over $1 million in real estate properties. These investments yielded no profit for investors, because Lisi and his co-defendant simply pocketed the funds. Now Brandon Lisi faces time in federal prison for his fraud.”
FBI Assistant Director William F. Sweeney Jr. said: “Financial crimes have the potential to turn lives upside down and inside out. The victims in this case deserve to see justice served. As evidenced by today’s sentence, they will. May this be a reminder to others that this type of behavior won’t go unpunished.”
According to documents filed in this case and statements made in related court proceedings:
LISI, a former attorney, and his co-conspirator, a practicing attorney, built relationships of trust with victim investors and then induced those investors to put money into fraudulent business deals. Through the course of the scheme, LISI and his co-conspirator made false representations and failed to disclose material information to investors, all in an effort to induce them to hand their money over to invest in these purported deals. LISI further caused another individual, acting at his direction, to make false statements in bankruptcy court in an effort to forestall foreclosure on one of the properties LISI had obtained. Although LISI promised his victims large returns on their investments, he and his co‑conspirator used the invested funds for personal use, through substantial cash withdrawals, payments to relatives, and transfers to pay off personal debts.
Ultimately, the victims of this scheme lost nearly all of the money they had invested, which was more than $1 million in total.
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In addition to the prison term, LISI, 43, of Melville, New York, was sentenced to three years of supervised release, and ordered to forfeit $1,438,358 and to pay $1,438,358 in restitution.
Mr. Kim praised and thanked the Federal Bureau of Investigation for their outstanding investigative work.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to http://www.usdoj.gov/usao/nys/victimwitness.html.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Katherine Reilly, Noah Solowiejczyk, and Michael Lockard are in charge of the prosecution.
Fitchburg Man Sentenced for Dealing Heroin and CocaineRead the Press Release
BOSTON – A Fitchburg man was sentenced today in federal court in Worcester for his role in a drug trafficking conspiracy.
Elvis Genao, 28, was sentenced by U.S. District Court Judge Timothy S. Hillman to 37 months in prison and three years of supervised release. In May 2017, Genao and four co-defendants pleaded guilty to conspiracy to distribute heroin and cocaine in Worcester County.
In the late summer of 2014, federal agents began investigating the narcotics trafficking activities of Osvaldo Vasquez and his associates, Genao, Jose Federico Vasquez, Felix Melendez, and Hugo Santana-Dones. Between November 2014 and July 2015, with the help of a cooperating witness, agents made numerous recorded purchases of heroin - sometimes laced with fentanyl - from members of the conspiracy, seizing over 400 grams of heroin as a result.
During the controlled purchases, Genao was recorded distributing over 100 grams of heroin to a cooperating source in July 2015. Genao was also captured on wire intercepts between April and July of 2015 discussing the delivery and sale of additional narcotics.
Santana-Dones was sentenced on Sept. 6, 2017, to 80 months in prison and will be subject to deportation hearings upon completion of his sentence; Federico Vasquez was sentenced yesterday to five years in prison and will be subject to deportation hearings upon completion of his sentence. Osvaldo Vasquez and Melendez are scheduled to be sentenced on Nov. 3, 2017, and Oct. 25, 2017, respectively.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Fitchburg Police Chief Ernest F. Martineau; and Leominster Interim Police Chief Michael Goldman made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office is prosecuting the cases.
Federal Jury Convicts Dripping Springs Man of Making Threats to Kill Individuals on Fort HoodRead the Press Release
In Waco today, a federal jury convicted a Dripping Springs man for allegedly making threats to kill individuals on Fort Hood in back in February announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
Jurors found 29-year-old Thomas Anthony Chestnut, Jr., guilty of one count of threatening to assault or murder a uniformed service member and one count of interstate communications with threat to injure. Chestnut, who has remained in federal custody since being arrested by FBI agents on February 24, 2017, faces up to ten years in federal prison on the threaten-to-assault charge and up to five years in federal prison on the threatening- communications charge. Sentencing is scheduled for December 1, 2017, before U.S. District Judge Robert Pitman in Waco.
Testimony during the two-day trial revealed that on February 22, 2017, Chestnut made verbal threats when he called and spoke with a sergeant at the US Army 1st Calvary Division at Fort Hood. Chestnut threatened to go to Fort Hood, kill the sergeant, take hostages, start a mass killing spree and then kill himself if he was not allowed to speak with someone of rank. Chestnut then spoke with a major and advised that he was a former soldier wrongly accused of a crime and eventually released from prison in 2016. Chestnut further advised if he was unable to speak with a U.S. Army III Corps Commander or a Sergeant Major regarding back pay, or did not receive the money he believed was owed to him, that he planned to shoot soldiers on Fort Hood.
“Threats of this nature are taken seriously,” stated United States Attorney Richard L. Durbin, Jr.
The FBI together with the U.S. Army Military Police Investigations at Fort Hood and the Hays County Sheriff’s Office conducted this investigation. Special Assistant U.S. Attorney/Active Duty U.S. Army Major Benjamin Hogan and Assistant U.S. Attorney Chris Blanton are prosecuting this case on behalf of the government.
Federal Inmate Indicted for Assault on Correctional Officer and Possession of ContrabandRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Shawn Hill, age 34, formerly of Connecticut and currently a federal inmate at the United States Penitentiary at Canaan, Waymart, Pennsylvania, was indicted by a federal grand jury for assaulting a federal correctional officer and for possession of contraband in prison.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Hill assaulted a correctional officer and possessed contraband on June 30, 2017. The charges stem from an incident in which Hill allegedly possessed a sharpened piece of metal commonly known as a “shank.” After the weapon was confiscated, Hill allegedly engaged in a physical altercation with a correctional officer.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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.
The maximum penalty which can be imposed under federal law is eight years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. 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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Federal Inmate Charged with Assault on Correctional OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Orlando Hernandez, age 32, a prisoner at United States Penitentiary, Canaan, Pennsylvania, was indicted by a federal grand jury for assaulting a federal correctional officer.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Hernandez kicked and “head-butted” a correctional officer on January 27, 2017.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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.
The maximum penalty which can be imposed under federal law is 8 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. 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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Easthampton Man Sentenced to over 11 Years in Prison for Distributing Child PornographyRead the Press Release
BOSTON – An Easthampton man was sentenced today in federal court in Springfield on nine counts of child pornography offenses.
James J. Smith, 38, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 138 months in prison and 10 years of supervised release. In February 2017, Smith pleaded guilty to six counts of distribution of child pornography, one count of transportation of child pornography, one count of receipt of child pornography, and one count of possession of child pornography.
In January 2015, during a search of Smith’s home, law enforcement seized Smith’s cell phone, which contained approximately 110 images of child pornography, including images of a known eight-year-old girl. Smith also emailed and engaged in Craigslist correspondence with multiple people in which they discussed the sexual abuse of children. Smith offered to distribute, and did distribute, child pornography involving children aged 10 and younger with online associates. Smith also offered to receive, and did receive, child pornography from an individual online.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Northampton Police Chief Jody Kasper; and Easthampton Police Chief Robert Alberti made the announcement today. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Branch Office prosecuted the case.
Dominican National Sentenced for Tax Refund Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for participating in a stolen identity refund fraud scheme that filed fraudulent federal income tax returns claiming hundreds of thousands of dollars in refunds.
Junior Alberto Lopez, 32, a Dominican national residing in Dorchester, was sentenced by U.S. District Court Judge Leo T. Sorokin to 30 months in prison, three years of supervised release, and ordered to pay restitution of $242,000. Lopez will be subject to deportation proceedings upon completion of his sentence. In June 2017, Lopez pleaded guilty to one count of false claims conspiracy, three counts of access device fraud, and one count of aggravated identity theft. Lopez was originally arrested in April 2015, but fled to the Dominican Republic shortly after his release on bail. Lopez was re-arrested in the Dominican Republic in December 2016 and extradited to the United States in March 2017.
Between May 2011 and February 2013, Lopez and at least two co-conspirators unlawfully obtained the names, addresses and dates of birth of more than 700 residents of Puerto Rico and elsewhere. They created and filed false income tax returns for 2010, 2011, and 2012, claiming refunds on behalf of those identity fraud victims. Lopez and his co-conspirators directed the IRS to issue tax refund checks and to deposit tax refunds onto prepaid debit cards, which were delivered to addresses in Boston and elsewhere that the conspiracy controlled. Lopez and his co-conspirators cashed and redistributed the checks and debit cards.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The Department of Justice’s Office of International Affairs provided assistance in securing Lopez’s extradition to the United States. Assistant U.S. Attorney Seth Kosto of Weinreb’s Criminal Division prosecuted the case.
Dominican National Sentenced for Dealing Heroin and CocaineRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Worcester for his role in a drug trafficking conspiracy.
Jose Federico Vasquez, 55, was sentenced by U.S. District Court Judge Timothy S. Hillman to five years in prison and four years of supervised release and will face deportation proceedings upon completion of his sentence. In May 2017, Federico Vasquez and four co-defendants pleaded guilty to conspiracy to distribute heroin and cocaine in Worcester County.
In the late summer of 2014, federal agents began investigating the narcotics trafficking activities of Osvaldo Vasquez and his associates, Federico Vasquez, Felix Melendez, Elvis Genao, and Hugo Santana-Dones. Between November 2014 and July 2015, with the help of a cooperating witness, agents made numerous recorded purchases of heroin - sometimes laced with fentanyl - from members of the conspiracy, seizing over 400 grams of heroin as a result.
During a court-authorized wiretap, Vasquez and his co-defendants were heard discussing the purchase and sale of multiple kilograms of narcotics and demonstrated an awareness of the potential deadly consequences of the narcotics they were distributing. On May 7, 2015, Osvaldo Vasquez, Melendez, and Federico Vasquez were intercepted discussing how the high number of heroin overdose deaths occurring at the time were cutting into their sales.
In August 2015, federal agents executed a search warrant at the conspirators’ homes. At Osvaldo Vasquez’s home in Worcester, agents found 679 grams of heroin and 723 grams of cocaine, as well as a Taurus PT .380 semi-automatic handgun. The phone that was the subject of the wiretap, cutting tools, and over $7,000 in cash were also recovered in the home. At the residence of Santana-Dones in Leominster, 224 grams of heroin, 110 grams of cocaine, and 8.9 grams of cocaine base (crack cocaine), along with cutting tools, a hydraulic kilogram press, over $1,300 in cash, and two phones that had been intercepted on the wiretap were recovered. At the residence of Melendez, who was on parole for state firearm and narcotics charges at the time, 3.1 grams of cocaine, a digital scale, over $1,000 in cash, and a phone that had been intercepted on the wiretap were recovered. At the residence of Federico Vasquez in Providence, agents found 3.4 grams of cocaine.
Santana-Dones was sentenced on Sept. 6, 2017, to 80 months in prison and will be subject to deportation hearings upon completion of his sentence; Osvaldo Vasquez, Melendez, and Genao are scheduled to be sentenced on Nov. 13, 2017, Oct. 25, 2017, and Sept. 19, 2017, respectively.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Fitchburg Police Chief Ernest F. Martineau; and Leominster Interim Police Chief Michael Goldman, made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office is prosecuting the cases.
Derry Man Pleads Guilty to Trafficking CocaineRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Edwin Ruiz, 30, of Derry, New Hampshire, pleaded guilty in federal court today to one count of possession with intent to distribute over 500 grams of cocaine.
Information based on court filings and statements made in court established that on December 1, 2016, Ruiz was driving a vehicle that was stopped by the Manchester Police Department. A search of the car resulted in the seizure of $8,264 and 799.8 grams of cocaine.
The defendant’s plea agreement includes a binding stipulated sentence of 90 months’ imprisonment. A sentencing hearing has been scheduled for January 2, 2018.
“The United States Attorney’s Office is committed to working with our law enforcement partners to identify and prosecute those who are distributing drugs in our community,” said Acting U.S. Attorney Farley. “I commend the work of the law enforcement officers in this case. Their efforts led to the seizure of this cocaine before it could be distributed.”
The case was investigated by the Manchester Police Department and the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
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Department of Justice Settles Employment Discrimination Claim on Behalf of U.S. Army ReservistRead the Press Release
The United States Department of Justice has resolved a claim that the Duval County Sheriff’s Department violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by terminating U.S. Army Reservist Jonathan J. Melendez (Melendez) on two occasions and retaliating against him after he pursed his claims in violation of USERRA, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Attorney General John Gore of the Department of Justice’s Civil Rights Division. The United States Attorney’s Office for the Southern District of Texas represents U.S. Army Specialist Jonathan J. Melendez in this matter and the parties have reached a settlement resolving all of his claims.
“The legal rights of members of our armed forces, who sacrifice their lives every day defending our nation and its freedoms, must be respected,” said Acting Assistant Attorney General John Gore. “This settlement sends a strong message that the Department of Justice is steadfast in its efforts to protect the rights of our servicemembers, their families, and all veterans of the United States.”
“Members of our armed service’s reserve forces make many sacrifices, including spending months or years away from their jobs and families,” said Acting U.S. Attorney Abe Martinez. “When they are deployed in the service of our country, their employment rights must be protected. They are entitled to retain their civilian employment and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations. My office and the Department of Justice are committed to ensuring that individuals do not lose their rights while they are protecting ours.”
Specialist Melendez was hired as a Deputy Sheriff on March 14, 2014, by the Duval County Sheriff’s Department. On October 8, 2015, Melendez enlisted in the U.S. Army Reserves. Martinez alleged that Duval County discriminated against him in violation of USERRA on four occasions. These occasions include Melendez’s termination from the Sheriff’s Department on January 1, 2016 while he was on leave for active military duty, his belated rehire upon his return from military duty in April 2016, and his termination again in October 2016 after he continued to pursue a USERRA lost wages claim against his former employer.
Congress enacted USERRA for three stated purposes: (1) to encourage non-career service in the uniformed services by reducing employment disadvantages; (2) to minimize the disruption to the lives of persons performing military service, their employers, and others by providing for the prompt reemployment of such persons upon their completion of such service; and (3) to prohibit discrimination against persons because of their service in the uniformed services or if they pursue a claim under USERRA.
Under the terms of the settlement, Duval County has agreed to compensate Melendez for his lost wages and benefits, and pay him liquidated damages.
This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service. The U.S. Attorney’s Office for the Southern District of Texas and the Employment Litigation Section of the Department of Justice’s Civil Rights Division handled this case and continue to work with the DOL to protect the jobs and benefits of all military service members.
Assistant U.S. Attorney Keith Edward Wyatt and Paralegal Specialist Raymond Babauta of the SDTX are handling the investigation along with Assistant Director Andrew Braniff of the Service Members and Veterans Initiative, and Alicia Johnson, Employment Litigation Section, Civil Rights Division, of the U.S. Department of Justice.
Department of Justice Settles Employment Discrimination Claim on Behalf of U.S. Army ReservistRead the Press Release
CORPUS CHRISTI, Texas - The United States Department of Justice has resolved a claim that the Duval County Sheriff’s Department violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by terminating U.S. Army Reservist Jonathan J. Melendez on two occasions and retaliating against him after he pursed his claims in violation of USERRA, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Attorney General John Gore of the Department of Justice’s Civil Rights Division. The United States Attorney’s Office for the Southern District of Texas represents Melendez in this matter and the parties have reached a settlement resolving all of his claims.
“Members of our armed service’s reserve forces make many sacrifices, including spending months or years away from their jobs and families,” said Martinez. “When they are deployed in the service of our country, their employment rights must be protected. They are entitled to retain their civilian employment and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations. My office and the Department of Justice are committed to ensuring that individuals do not lose their rights while they are protecting ours.”
“The legal rights of members of our armed forces, who sacrifice their lives every day defending our nation and its freedoms, must be respected,” said Gore. “This settlement sends a strong message that the Department of Justice is steadfast in its efforts to protect the rights of our servicemembers, their families and all veterans of the United States.”
Specialist Melendez was hired as a Deputy Sheriff on March 14, 2014, by the Duval County Sheriff’s Department. On Oct. 8, 2015, Melendez enlisted in the U.S. Army Reserves. Martinez alleged that Duval County discriminated against him in violation of USERRA on four occasions. These occasions include Melendez’s termination from the Sheriff’s Department on Jan. 1, 2016, while he was on leave for active military duty, his belated rehire upon his return from military duty in April 2016 and his termination again in October 2016 after he continued to pursue a USERRA lost wages claim against his former employer.
Congress enacted USERRA to encourage non-career service in the uniformed services by reducing employment disadvantages; to minimize the disruption to the lives of persons performing military service, their employers and others by providing for the prompt reemployment of such persons upon their completion of such service; and to prohibit discrimination against persons because of their service in the uniformed services or if they pursue a claim under USERRA.
Under the terms of the settlement, Duval County has agreed to compensate Melendez for his lost wages and benefits and pay him liquidated damages.
The U.S. Department of Labor (DOL) referred the matter following an investigation by their Veterans’ Employment and Training Service. The U.S. Attorney’s Office for the Southern District of Texas (SDTX) and the Employment Litigation Section of the Department of Justice’s Civil Rights Division are handling the case and work collaboratively with the DOL to protect the jobs and benefits of military service members.
Assistant U.S. Attorney Keith Edward Wyatt and Paralegal Specialist Raymond Babauta of the SDTX are handling the investigation along with Assistant Director Andrew Braniff of the Service Members and Veterans Initiative and Alicia Johnson of the Civil Rights Division’s Employment Litigation Section.
Corpus Christi Man Charged with Sex Trafficking of a ChildRead the Press Release
CORPUS CHRISTI, Texas - A 24-year-old Corpus Christi man has been charged with the attempted sex trafficking of a 14-year-old girl, announced Acting U.S. Attorney Abe Martinez.
A federal criminal complaint was filed yesterday against Marcus Anthony Tunchez. He was previously in custody on an unrelated firearms charge and is expected to make his initial appearance before U.S. Magistrate Judge B. Janice Ellington at 2:00 p.m. today on the new charges.
Tunchez was allegedly communicating with a person for the purpose of sex trafficking a child he believed was a 14-year-old girl. According to the charges, Tunchez expected to meet the child and transport her to a hotel where she would engage in a commercial sex act. Tunchez was taken into custody as he arrived at the designated meeting place.
If convicted, Tunchez faces a minimum of 10 years and up to life in federal prison and a possible $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Drug Enforcement Administration conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law
Convicted Felon Charged with Illegal Gun PossessionRead the Press Release
PHILADELPHIA – Tyrone Phillips, 46, of Philadelphia, was charged today by indictment[1] with possession of a firearm by a convicted felon, announced acting United States Attorney Louis D. Lappen. According to the indictment, on June 14, 2017, Phillips was in possession of a Ruger, Model P97DC, .45 caliber semi-automatic handgun, serial number 66346075, which was loaded with seven live rounds of .45 caliber ammunition.
If convicted, Phillips faces a maximum of 10-years’ imprisonment, up to three-years of supervised release, a fine of $250,000, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney José R. Arteaga.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Confidence Man Pleads Guilty in Fraud and Identity Theft SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that JOHN EDWARD TAYLOR, a/k/a “Jay Taylor,” a/k/a “Josie Reeser,” pled guilty before U.S. District Judge Laura Taylor Swain to wire fraud and sending threatening communications, in connection with his seven-year scheme to defraud multiple victims into providing their personal identifying information, which Taylor then used to make hundreds of thousands of dollars in unauthorized purchases.
Acting U.S. Attorney Joon H. Kim said: “John Edward Taylor’s online dating profile read like a dream – a millionaire businessman looking for love. But in reality, Taylor was using dating websites not to search for a girlfriend but for his next victim. Taylor promised business opportunities and romantic relationships just to steal his victims’ identities and loot their bank accounts, and then threatened those who discovered what he was doing. Now Taylor is facing time in federal prison for his fraudulent ways.”
According to the allegations in the Complaint, the Indictment, and statements made at related court proceedings:
JOHN EDWARD TAYLOR, a/k/a “Jay Taylor,” a/k/a “Josie Reeser,” stole, or attempted to steal, money, credit, and personal information from more than a dozen women (the “Victims”) in cities across the country, including New York City, Chicago, Atlanta, and Philadelphia.
TAYLOR contacted Victims using online matchmaking and networking websites, such as Match.com, eHarmony, Craigslist, and Seeking Arrangement. TAYLOR typically introduced himself as “Jay” and often falsely described himself as a wealthy businessman with oil and land interests in North Dakota. To some Victims, TAYLOR feigned interest in hiring the Victims to work on a new business TAYLOR purported to be creating. To other Victims, TAYLOR expressed an interest in a romantic and personal relationship. To most Victims, TAYLOR purported to be interested in both a personal and a professional relationship.
Using a variety of false pretenses, TAYLOR obtained the Victims’ personal identifying information, often including birthdates, addresses, and bank and credit account numbers. TAYLOR used the Victims’ personal identifying information to purchase goods, transfer funds, and open new accounts – all without authorization. In certain circumstances, TAYLOR opened accounts without the Victims’ knowledge. In other circumstances, TAYLOR opened accounts that he assured Victims were business accounts, but were, in fact, personal accounts in the Victims’ names, over which TAYLOR maintained exclusive control.
Often within a matter of months, Victims would discover thousands of dollars in unauthorized charges and transfers in their existing accounts, receive bills for accounts they had never created, or learn their existing accounts had been closed due to delinquency.
Independent of each other, multiple Victims confronted TAYLOR about his activities. To some, TAYLOR responded with insults. To others, TAYLOR responded with promises to repay the losses – and on at least one occasion attempted to repay one Victim with funds unlawfully obtained from another Victim. On multiple occasions, TAYLOR threatened to transmit sexually explicit images of the Victims – which he had obtained as part of his purported romantic relationships with them – to the Victims’ employers if the Victims tried to collect their debts.
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TAYLOR, 47, pled guilty to one count of wire fraud, which carries a maximum sentence of 30 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense, and one count of sending threatening interstate communications, which carries a maximum sentence of two years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. Taylor is scheduled to be sentenced by Judge Swain on January 4, 2018.
Mr. Kim praised the outstanding work of the Federal Bureau of Investigation for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Jonathan Rebold and Andrew Thomas are in charge of the case
Company Fined $500,000 for OSHA Violation That Caused Worker's Death at KC JobsiteRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Pacific, Mo., company was sentenced in federal court today for violating an OSHA regulation and causing the death of a Raymore, Mo., ironworker.
U.S. Chief District Judge Greg Kays ordered DNRB, Inc., to pay a fine of $500,000, the maximum penalty for the offense. The court ordered DNRB to pay quarterly installments of $25,000 over a period of five years.
DNRB was found guilty following a bench trial that concluded on Aug. 17, 2016. The court order setting out the findings of fact and conclusions of law was issued on Friday, Jan. 20, 2017.
In July 2014, DNRB – doing business as Fastrack Erectors – was a subcontractor in the construction of a 300,000-square-foot distribution warehouse located in Kansas City, Mo. Fastrack is an American Institute of Steel Construction-certified steel erection company that specializes in structural steel, miscellaneous steel, pre-engineered metal buildings, ornamental metal handrail, and precast installation. Fastrack supplied on-site supervisors (who are based in the St. Louis, Mo., area) while the ironworkers were hired from the union local in Kansas City, Mo.
On July 24, 2014, two Fastrack ironworker employees were receiving a bundle of roof decking sheet metal and setting it on top of the building’s bar joists. The employees’ task required them to guide the decking bundle to land it. Each decking bundle was 26 feet long by 36 inches wide. The employees accessed the top of the building from a scissor lift and walked approximately 15 feet along a joist without wearing any fall protection. They walked on trusses that were nine inches wide, or bar joists which were five inches wide. Other ironworkers secured the decking to the trusses with screws and welds. These workers did not use fall protection.
Eric Roach, 22, one of the employees landing the decking, fell approximately 30 feet to the ground and was transported to a local hospital where he died the following day.
Fastrack was a subcontractor to ARCO National Construction-KC, Inc. According to court documents, the contract between ARCO and Fastrack required that Fastrack “personnel who are working or present at heights in excess of 6 feet shall be provided, by (Fastrack) adequate fall protection.” Fastrack failed to enforce the use of fall protection.
No fall protection equipment was provided by the company. Both working foremen on the site were told, or questioned, about the lack of fall protection equipment and were in a position to personally observe employees failing to use fall protection equipment. At least one of the foremen was working on the decking in the immediate area of the employees; he failed to wear fall protection himself and failed to enforce the use of fall protection by the employees.
Federal statutes require that each employee engaged in a steel erection activity who is on a walking/working surface with an unprotected side or edge more than 15 feet above a lower level shall be protected from fall hazards by guardrail systems, safety net systems, personal fall arrest systems, positioning device systems or fall restraint systems.
DNRB voluntarily dissolved as a Missouri corporation on Jan. 15, 2016.
This case was prosecuted by Assistant U.S. Attorneys Paul S. Becker and Stacey Perkins Rock, and Special Assistant U.S. Attorneys Evert Van Wijk and Rachel Parsons, both of the Department of Labor – Office of Solicitor. It was investigated by the Occupational Safety and Health Administration.
Chinese National Sentenced for Fraudulently Obtaining a Student VisaRead the Press Release
BOSTON - A Chinese national charged with defrauding the Department of Homeland Security (DHS) in its administration of the Student and Exchange Visitor Program pleaded guilty and was sentenced today in federal court in Boston.
Yue Wang, 25, a Chinese national residing in Malden, pleaded guilty to one count of conspiracy to defraud the United States. U.S. District Court Judge Rya W. Zobel sentenced Wang to time-served and ordered her immediately removed from the United States to the People’s Republic of China.
On May 24, 2016, working off a tip, a law enforcement officer interviewed Wang about her experience taking the Test of English as a Foreign Language (TOEFL) exam. Wang admitted to taking the test on at least three occasions on behalf of registered test takers. To take the exam, Wang received Chinese passports through the mail or in person and used the passports as identification to take the exam as if she were the person represented in the passports. Wang received nearly $7,000 to take TOEFL exams on behalf of three registered test takers. These co-conspirators then used those fraudulently obtained scores to gain admission to United States colleges, which made them eligible to receive F-1 non-immigrant student visas to enter the country and remain for the duration of their studies.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and William B. Gannon, Special Agent in Charge of the U.S. State Department's Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit prosecuted the case.
Chinese National Pleads Guilty to Software Piracy SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Chinese national pleaded guilty in federal court today to his role in an international, multi-million dollar software piracy scheme.
Wen Tao Liu, also known as Orland Liu, 37, a citizen of the People’s Republic of China, pleaded guilty before U.S. Chief District Judge Greg Kays to one count of conspiracy and one count of trafficking in counterfeit labels. Liu was arrested on June 15, 2016, at Dallas Fort Worth International airport on an American Airlines flight during his return flight to China, and remains in federal custody.
Investigators have seized more than $20 million in assets from defendants in several separate but related cases, who are estimated to have sold in excess of $100 million worth of illicit, unauthorized and counterfeit software products to thousands of online customers.
Liu, doing business as Haitu International Group Co. Limited (an entity based in Hong Kong), participated in a conspiracy with Casey Lee Ross of Kansas City, Mo. (doing business as Software Slashers), David Reece of Fort Lauderdale, Fla., and others from March 10, 2010, to Feb. 2, 2015, to commit the offenses of unauthorized solicitation of access devices, trafficking in counterfeit goods and smuggling goods into the United States.
Liu obtained and sold counterfeit, illicit, and/or unauthorized Microsoft software, software products and related components, including unauthorized product key codes and counterfeit product key cards, causing the Microsoft Corporation millions of dollars in losses. (Product key codes are used to obtain full access to unlocked, licensed versions of various copyrighted software programs.)
At the time of his arrest, Liu possessed approximately 318,213 unauthorized Microsoft product key codes, which he had obtained from illicit sources and sold to others. Those product key codes, worth approximately $250 each, constitutes a loss of approximately $79,553,250 to Microsoft.
Liu also admitted that he sold 500 counterfeit Microsoft Office “Lenovo” product key cards to an undercover law enforcement agent for $35,000.
Liu is the eighth defendant to plead guilty in the software piracy scheme. The investigation began when federal agents in Kansas City, Mo., learned in 2013 that Ross had purchased (and redistributed) tens of thousands of illegitimate and unauthorized Microsoft product key codes and counterfeit product key cards from sources in China.
Ross pleaded guilty and has been sentenced in a separate but related case. Ross admitted that he distributed tens of thousands of these illegitimate and unauthorized product key codes and counterfeit Microsoft product key cards to co-conspirators in the United States, who in turn sold the product key codes and counterfeit product key cards through their respective Web sites as well as on e-commerce sites such as eBay or Amazon.
Reece pleaded guilty and awaits sentencing in a separate but related case. Reece admitted that he received approximately $2.5 million worth of illicit software key cards. Reece then resold them to other illicit software suppliers and customers. Liu admitted today that he sent approximately 20 shipments of contraband to Reece between Sept. 21, 2013, and March 14, 2015, with each shipment containing approximately 500 Microsoft Office “Lenovo” product key cards, for a total of approximately 10,000 contraband items. At an estimated loss of $250 per item, this constitutes a total loss of approximately $2.5 million.
Under federal statutes, Liu is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick D. Daly and Curt Bohling. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Children’s Singer/Songwriter Charged with Receipt and Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A music teacher and singer/songwriter who performs for children at synagogues, Jewish community centers, camps and conventions nationwide was arrested and charged today with receiving and distributing images of child sexual abuse, Acting U.S. Attorney William E. Fitzpatrick announced.
Eric S. Komar, 46, of Hillsborough, New Jersey, was arrested by special agents of the FBI Child Exploitation Task Force. He is charged by complaint with one count of receiving and distributing child pornography. Komar made his initial appearance today before U.S. Magistrate Court Judge James B. Clark III in Newark federal court and was remanded without bail.
According to documents filed in this case and statements made in court:
Komar used a peer-to-peer file-sharing program to obtain and distribute images and videos that including images of prepubescent children being sexually abused.
Anyone with information regarding possible victims of this activity is urged to contact the FBI in Newark at 973-792-3000.
The count with which Komar is charged carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; members of the Somerset County Prosecutor’s Office, under the direction of Somerset County Prosecutor Michael H. Robertson and County Chief of Detectives John W. Fodor; the Hillsborough Township Police Department, under the direction of Chief Darren Powell, and the N.J. Regional Computer Forensics Laboratory, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Leticia Vandehaar of the U.S. Attorney’s Office Criminal Division in Newark.
Chicago Man Facing Federal Drug Charge After Agents Seize More Than 50 Kilograms of Heroin and Cocaine from South Side AtticRead the Press Release
CHICAGO — A Chicago man has been charged with a federal drug violation after agents seized more than 50 kilograms of heroin and cocaine from his attic apartment on the South Side.
MARCELINO NUNEZ-HURTADO, 47, is charged with possession of a controlled substance with the intent to distribute. On Aug. 22, 2017, agents searched an attic apartment Nunez-Hurtado rented in Chicago’s Gage Park neighborhood and discovered tools used to measure and package narcotics, according to a criminal complaint and affidavit filed in federal court in Chicago. After noticing a screwdriver on the floor just inside the attic door, agents discovered an access panel above the landing of the stairs leading to the attic, the complaint states. The panel led to a compartment where agents discovered numerous rectangular bricks of heroin weighing more than 41 kilograms, and multiple bricks of cocaine weighing more than nine kilograms, the complaint states.
Nunez-Hurtado was arrested on Sept. 13, 2017. A detention hearing is scheduled for Sept. 26, 2017, at 2:30 p.m., before U.S. Magistrate Judge Michael T. Mason in Chicago.
The complaint was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago.
According to the complaint, ICE uncovered the alleged drug trafficking through the use of a confidential informant and extensive surveillance. The informant provided information in July that Nunez-Hurtado was involved in drug trafficking activities throughout the Chicago area, the complaint states. Hours before the attic search, agents observed Nunez-Hurtado hand suspected cocaine to an individual sitting in the passenger seat of a Cadillac Escalade parked in an alley behind the Gage Park residence, the complaint states.
The drug charge carries a maximum sentence of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Rebekah Holman.