Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 19 September 2017
Cambria County Woman Admits Stealing from MailboxesRead the Press Release
JOHNSTOWN, Pa. – A resident of Patton, Pa. pleaded guilty in federal court to a charge of theft of mail, Acting United States Attorney Soo C. Song announced today.
Jennifer R. Miller, 28, of Patton, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, in Dec. 2011 Miller stole various pieces of mail from mailboxes.
Judge Gibson scheduled sentencing for February 6, 2018, at 1:30 p.m. The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation that led to the prosecution of Miller.
Austin Man Admits to Child Pornography Charges Involving Two Minor Victims, One a Three-Year-Old ChildRead the Press Release
DALLAS, Texas — Javier Giovanni Araujo, 34, of Austin, Texas, appeared this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of conspiracy to produce child pornography and one count of transportation of child pornography, announced John Parker, United States Attorney for the Northern District of Texas.
Araujo faces a statutory penalty of not less than 15 years and not more than 30 years in federal prison, a $250,000 fine and a lifetime of supervised release for the conspiracy count and a statutory penalty of not less than 5 years and not more than 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release for the transportation count. Araujo has been in custody since his arrest in December 2016. A sentencing hearing has been set for January 10, 2018.
Co-defendant Garrett Alexander Mack, 29, of Dallas, Texas, also pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on November 29, 2017.
According to documents filed in the case, from September 26, 2016 through October 7, 2016, Araujo and Mack discussed sexually abusing children and exchanged photos and videos of child pornography. Araujo agreed with Mack to produce child pornography involving a three-year-old child to which Araujo had access. Araujo coerced the child into engaging in sexually explicit conduct and produced photos and videos of the conduct.
Araujo also coerced another minor child to engage in sexually explicit conduct with him, which he recorded and transmitted the video to Mack.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation, the Dallas Police Department, and the Austin Police Department investigated. Assistant U.S. Attorney Jamie L. Hoxie is in charge of the prosecution.
# # #
Asplundh Tree Expert Co. Charged with Recruiting, Hiring, and Employing Unauthorized AliensRead the Press Release
Asplundh Tree Expert, Co., one of the largest privately-held companies in the United States, was charged today by Information[1] with one count of unlawfully employing aliens, in connection with a scheme in which Asplundh accepted and received identification documents knowing those documents to be procured by fraud and illegally obtained, announced acting United States Attorney Louis D. Lappen. Asplundh, headquartered in Willow Grove, Pennsylvania, is an industry leader in tree trimming and brush clearance for power and gas lines. The information alleges that in or about 2010 to on or about December 2014, Asplundh managers, including a Vice-President and Sponsor, directed their personnel to accept false identification from prospective employees. The acceptance of these false documents facilitated the re-hiring of Asplundh employees who had been determined previously by Homeland Security Investigations to be aliens unauthorized to work in the United States.
Asplundh supervisors accepted identification documents, such as legal permanent resident cards (green cards), Social Security Cards, and drivers’ licenses as evidence of authorized status or employment in the United States, knowing that those identification documents were illegitimate. This facilitated the hiring and rehiring of workers that were not eligible to be employed in the United States. Asplundh management delegated the recruitment and hiring of employees to lower level supervisors and decentralized its hiring practices in order to facilitate the hiring of these ineligible workers.
Three individual Asplundh supervisors, including a Vice-President, have already entered pleas of guilty to felony counts of conspiracy to commit fraud and misuse visas and fraud and misuse of visas in connection with this case.
If convicted the defendant faces a maximum sentence of not more than five years’ probation, a fine, with a maximum of $3,000 for each unauthorized alien with respect to whom such violation occurs, and any applicable forfeiture.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Acting Manhattan U.S. Attorney Announces Award of $296 Million Judgment Against Allied Home Mortgage Entities for Civil Mortgage FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced the award of a judgment yesterday totaling $296,298,325 against the entities formerly known as ALLIED HOME MORTGAGE CAPITAL CORPORATION (“ALLIED CAPITAL”) and ALLIED HOME MORTGAGE CORPORATION (“ALLIED CORPORATION”) (collectively, “ALLIED”), and a judgment in the amount of $25,340,496 against ALLIED’s President and Chief Executive Officer JIM C. HODGE (“HODGE”), for over a decade of fraudulent misconduct while participating in the Federal Housing Administration (“FHA”) mortgage insurance program. In November 2016, after a five-week trial in Houston, Texas, a unanimous jury found that ALLIED and HODGE violated the False Claims Act (“FCA”) and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”), and caused over $92 million in damages to the United States. The judgment, ordered by the district court on September 14, 2017, trebles the jury’s $92 million FCA verdict and imposes additional statutory penalties under the FCA and FIRREA as determined by the Court in light of ALLIED and HODGE’s misconduct. The judgment was awarded by United States District Judge George C. Hanks Jr. of the Southern District of Texas, who presided over the trial.
Under the FCA, damages are subject to mandatory trebling. The FCA also provides for a per-violation penalty, which during the relevant time period was $5,500 to $11,000 for each violation, and FIRREA provides for a penalty of up to $1.1 million for each violation. In addition to trebling the $92 million damages determined by the jury, the Court imposed a penalty of $10,000 for each violation of the FCA found by the jury, for a total of $12,950,000 in FCA penalties, and the maximum $1.1 million penalty for each violation of FIRREA, for a total of $6.6 million in FIRREA penalties. Pursuant to the Court’s order, HODGE is liable for over $25 million in damages and penalties.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Jim Hodge and Allied defrauded a federal mortgage insurance program designed to help spread the dream of homeownership, and then lied about it repeatedly. A jury saw through their lies, and now the Court has imposed millions of dollars in additional penalties. This Office will continue to investigate and root out fraud in all of its forms.”
According to the evidence presented at trial, ALLIED and HODGE abused the FHA mortgage insurance program by falsely certifying that thousands of high risk, low quality loans were eligible for FHA insurance and then submitting insurance claims to FHA when any of those loans defaulted. Specifically, ALLIED CAPITAL, with the knowledge and approval of HODGE, originated FHA-insured loans from more than one hundred “shadow” branch offices without the authorization of the United States Department of Housing and Urban Development (“HUD”), in order to evade oversight and disguise default rates. In addition, ALLIED CORPORATION, as a participant in HUD’s Direct Endorsement Lender program, recklessly certified thousands of loans for FHA insurance that were in fact ineligible for insurance under HUD’s guidelines. Finally, ALLIED and HODGE operated a dysfunctional quality control department that was not only unqualified and understaffed but also, at HODGE’s direction, submitted falsified quality control reports to HUD auditors and falsely certified that Allied was in compliance with HUD quality control guidelines.
The United States filed a complaint-in-intervention in this lawsuit in November 2011. At that time, the action was pending as a qui tam whistleblower lawsuit in the United States District Court for the Southern District of New York. In September 2012, the action was transferred to the United States District Court for the Southern District of Texas. The jury returned its verdict in favor of the government on November 30, 2016.
* * *
Mr. Kim thanked the HUD Office of General Counsel and the HUD Office of the Inspector General for their extraordinary assistance with this case.
This case is being handled by the Civil Frauds Unit of the United States Attorney’s Office for the Southern District of New York. Assistant United States Attorneys Jeannette A. Vargas, Joseph N. Cordaro, Jean-David Barnea, Caleb Hayes-Deats, and Stephen Cha-Kim, who are designated as Special Assistant United States Attorneys for the Southern District of Texas for purposes of this matter, are in charge of the case.
Monday 18 September 2017
Zia Pueblo Man Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Dale Dominic Galvan, 40, an enrolled member of the Zia Pueblo, pled guilty today in federal court to a felony child abuse charge. Under the terms of his plea agreement, Galvan will be sentenced within the range of six to 24 months in federal prison.
Galvan was indicted on May 12, 2015, and was charged with abandonment or abuse of a child under the age of 18 on April 15, 2014, on the Santa Clara Pueblo in Rio Arriba County, N.M.
During today’s proceedings, Galvan pled guilty to a felony information charging him with child abuse. In entering the guilty plea, Galvan admitted that on April 15, 2014, he exposed a two-year-old child to inclement weather by leaving the child in a vehicle for at least 20 to 45 minutes on a cold night with a temperature of about 29 degrees Fahrenheit. The child was dressed only in a t-shirt, without a diaper, socks, or pants and was found to be cold and shivering. Galvan further admitted that his actions caused and permitted a substantial and unjustifiable risk of serious harm to the safety and health of the child. A sentencing hearing has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services, and the Santa Clara Pueblo Tribal Police Department. Special Assistant U.S. Attorney Lucy B. Solimon prosecuted the case.
Woman Enters Guilty Plea in Federal Court to Making False Statements Under Oath to Immigration OfficialsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Merav Hizmi, age 41, of Surfside Beach, SC, pled guilty in federal court in Florence to Making False Statements Under Oath to an Immigration Official, a violation of Title 18, United States Code, Section 1015(a). United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that Hizmi, an Israeli citizen who had married another Israeli citizen in 1996, came to the United States and, without having been divorced from her Israeli husband, married a United States citizen in 2003. During the process of attempting to change her immigration status based on her alleged marriage to the U. S. citizen, Hizmi was interviewed by an official of United States Citizenship and Immigration Services (USCIS). During the interview, Hizmi stated under oath that she was not and had never been married to anyone other than her United States citizen spouse, which statement she knew to be false.
Ms. Drake stated the maximum penalty the defendant can receive is imprisonment for 5 years and a fine of $250,000.
The case was investigated by agents of ICE-Homeland Security Investigations and the United States Citizenship and Immigration Services- Fraud Detection and National Security Directorate. Assistant United States Attorney A. Bradley Parham of the Florence office handled the case.
#####
Watervliet Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Francisco Rivera, age 37, of Watervliet, New York, pled guilty today to conspiring to distribute cocaine.
The announcement was made by Acting United States Attorney Grant C. Jaquith; Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division; and Acting Albany Police Chief Robert Sears.
As part of his guilty plea, Rivera admitted that he arranged for someone in Puerto Rico to mail him kilogram and half-kilogram quantities of cocaine that were hidden within everyday items such as scented candles and board game boxes. He arranged for cocaine shipments to be mailed to residential addresses in Albany, Rensselaer and Schenectady Counties where he would pick them up and then deliver them to his customers.
United States District Judge Mae A. D’Agostino is scheduled to sentence Rivera on January 16, 2018. He faces at least 10 years and up to life in prison, as well as post-imprisonment supervised release of at least 8 years and up to life. 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. Rivera has also agreed to forfeit $24,500 in cash drug proceeds seized from his Watervliet residence, as well as a 2011 BMW X-6 SUV that he used to transport cocaine.
This case was investigated by the USPIS and Albany Police Department, with assistance from Homeland Security Investigations and U.S. Customs and Border Protection, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Union County, New Jersey, Man Admits Distributing Sexually Explicit Images and Videos of ChildrenRead the Press Release
TRENTON, N.J. – A Union County, New Jersey, man today admitted he used his home computer to distribute sexually explicit videos and images of children, Acting U.S. Attorney William E. Fitzpatrick announced.
Thomas J. Leonard, 35, of Elizabeth, 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 distributing child pornography.
According to documents filed in this case and statements made in court:
Leonard used a file-sharing program to obtain and distribute over the Internet images and videos of children engaged in sexual acts.
The count to which Leonard pleaded guilty carries a statutory mandatory minimum term of five years in prison, a maximum of 20 years in prison, and a fine of up to $250,000. Sentencing is scheduled for Jan. 29, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea. He also thanked the Union County Prosecutor’s Office, the N.J. State Police, and the N.J. Regional Computer Forensics Laboratory, for their assistance.
The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Office in Trenton.
Anyone with information regarding possible victims of this activity is urged to contact the FBI in Newark: 973-792-3000.
Defense counsel: Rubin M. Sinins Esq., Springfield, New Jersey
Two Plead Guilty to Trafficking Fentanyl Laced HeroinRead the Press Release
PROVIDENCE – Agustin Acevedo, 50, and Dismery Uceta, 43, of Providence, pleaded guilty in federal court in Providence today to trafficking a kilogram of fentanyl laced heroin to Rhode Island from New York. Acevedo and Uceta were arrested in April 2016 as they drove to Rhode Island after picking up a kilogram of heroin in the Bronx.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Agustin Acevedo pleaded guilty to one count each of conspiracy to distribute and possess with the intent to distribute heroin, and possession with the intent to distribute 100 grams or more of heroin. Dismery Uceta pleaded guilty to one count each of conspiracy to possess with intent to distribute heroin and possession with intent to distribute heroin.
Acevedo and Uceta’s guilty pleas are announced by Acting United States Attorney Stephen G. Dambruch; Michael J. Ferguson, Special Agent in Charge of DEA, Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police, and Warwick Police Chief Colonel Stephen M. McCartney.
According to court documents and information presented to the court, in March 2016, as part of an ongoing DEA drug trafficking investigation, DEA agents and members of the Rhode Island DEA Drug Task Force determined that on April 29, 2016, Acevedo rented a vehicle in Rhode Island, and that he and Uceta drove to the Bronx, New York. They drove back to Rhode Island early the next day. As the vehicle was returning to Rhode Island, DEA agents, who were conducting surveillance of the vehicle, reported to Rhode Island State Police that the vehicle was traveling on Route 95 at speeds of approximately 80 mph. A Rhode Island State Trooper stopped the vehicle on Route 95 between exits 5 and 6 for speeding.
A speeding citation was issued to the driver, Agustin Acevedo. During the traffic stop, the trooper observed a brick-like object wrapped in a plastic bag in plain view in an open handbag on the floor of the vehicle. The occupants of the vehicle consented to a search of the vehicle and Uceta to a search of the handbag. A State Police K-9 gave a positive alert to the area near where the handbag was located. A field test of the brick-like object tested positive for heroin. Acevedo and Uceta were detained by DEA agents who also responded to the traffic stop.
On May 3, 2016, a Warwick Police Department Detective received the kilogram of suspected heroin for further analysis. He later identified the left index finger impression of Acevedo on the outer side of the kilogram wrapping. Forensic testing at the New England Regional Laboratory for DEA revealed that the kilogram of heroin was laced with fentanyl and dipyrone (an analgesic).
Acevedo and Uceta have been detained in federal custody since their arrest. They are scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on December 4, 2017.
At sentencing, Agustin Acevedo faces statutory sentences of 5 - 40 years imprisonment followed by 4 years to lifetime supervised release, and up to a $5,000,000 fine on each charge; Dismery Uceta, faces statutory sentences of up to 20 years imprisonment followed by at least 3 years supervised release, and a fine of up to $1,000,000 on each charge.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The Rhode Island DEA Drug Task Force is comprised of law enforcement personnel from the DEA, Rhode Island State Police, and the Providence, East Providence, Central Falls, Woonsocket, West Warwick, Cranston, Pawtucket, Newport, South Kingstown, and Warwick Police Departments.
###
Two Men Charged in Northern California in Alleged Multi-Million Dollar Investment Fraud and Tax Evasion SchemeRead the Press Release
Two men have been indicted by a federal grand jury in San Francisco on charges related to an investment fund scheme, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and the U.S. Attorney’s Office for the Northern District of California.
G. Steven Burrill is charged with wire fraud, investment adviser fraud, and tax evasion in connection with an alleged scheme to siphon money from an investment fund. Marc Howard Berger is charged with aiding and assisting in the preparation of tax returns in which Burrill failed to report income he received from the scheme.
According to the 34-count indictment, Burrill was the owner and CEO of Burrill & Company (B&C) and a number of related entities. Through the entities, Burrill allegedly managed investment funds, including Burrill Life Sciences Capital Fund III, L.P. (the “Fund”), an investment fund focused on the life sciences industry. The Fund was comprised of total committed capital of approximately $283 million, most of which, according to the indictment, was committed by limited partners. The indictment alleges that Burrill induced limited partners to contribute capital to the Fund with false and misleading letters. In addition, the indictment alleges Burrill caused the Fund to transfer millions of dollars in management fees to companies he controlled; the money was in excess of the management fees that were due and allowable under the agreements that governed the Fund. Further, the indictment alleges Burrill filed false and fraudulent U.S. Individual Income Tax Return, Forms 1040, which understated his income by excluding money Burrill transferred out of the Fund and into accounts he controlled.
Berger is alleged to have willfully assisted Burrill in preparing and presenting to the IRS three income tax returns in which Burrill understated his income.
In sum, Burrill is charged with 26 counts of wire fraud, one count of investment-adviser fraud, and one count of tax evasion. Additionally, Berger is charged with three counts of aiding and assisting in the preparation of a false tax return.
Berger was arrested this morning and made his initial appearance in federal court in San Francisco. Federal Magistrate Judge Sallie Kim arraigned Berger, who pleaded not guilty and has been released on bond. Berger’s next scheduled appearance is on Oct. 3 before the Honorable Richard Seeborg. Burrill is scheduled to make his initial appearance on Oct. 2.
If convicted, Burrill faces a statutory maximum sentence of 20 years in prison and a fine of $250,000 or twice the gross gain for each count of wire fraud; five years in prison and a fine of $250,000 for investment-adviser fraud, and five years in prison and a $250,000 fine for tax evasion. Berger faces a statutory maximum penalty of three years in prison, if convicted of aiding and assisting in the preparation of a false tax return. Additional terms of supervised release, fines, and restitution may also be imposed; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of the IRS Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney Robert Leach and Trial Attorney Lori Hendrickson of the Tax Division, who are prosecuting the case. The San Francisco Regional Office of the Securities and Exchange Commission provided assistance in this matter.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Two Marietta men sentenced to prison for gun, drug offensesRead the Press Release
ATLANTA - Kyle Matthew Nixon and Eric Eugene Gamez have been sentenced to prison for drug trafficking and gun offenses.
“These defendants were distributing cocaine and heroin while protecting their drug business with an arsenal of firearms,” said U. S. Attorney John Horn. “Their actions disregarded the safety of our community, but swift action by law enforcement kept them from causing further harm.”
“The success of this investigation is a result of the collaborative efforts of ATF and our local partners,” said ATF Special Agent in Charge Wayne Dixie. “ATF will continue to dedicate federal resources in conjunction with the crucial contributions of local agencies towards the eradication illegal drug and firearm activity.”
According to U.S. Attorney Horn, the charges and other information presented in court: On April 6, 2016, agents executed a search warrant at the residence of Kyle Nixon. Nixon and Eric Gamez attempted to flee from the house, but were quickly apprehended by law enforcement. Inside the house, Nixon and Gamez were cutting and packaging over 400 grams of cocaine and over 300 grams of heroin, which they intended to sell. Agents also seized over $13,000 in cash and 19 firearms, including an AK-47 rifle.
On July 20, 2017, Kyle Matthew Nixon, 26, of Marietta, Georgia, was sentenced to eight years in prison to be followed by five years of supervised release. Nixon was convicted on these charges on April 11, 2017, after he pleaded guilty.
On September 14, 2017, Eric Eugene Gamez, 27, also of Marietta, Georgia, was sentenced to nine years, nine months in prison to be followed by five years of supervised release. Gamez was convicted on these charges on February 28, 2017, after he pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marietta/Cobb/Smyrna Organized Crime Unit.
Assistant U.S. Attorney Jolee Porter 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.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Togolese National Charged with Identity and Mail FraudRead the Press Release
BOSTON - Roukayatou Damerogo, 32, a citizen of the Republic of Togo, residing in East Hartford, Conn., was arrested on Friday, Sept. 15, 2017, and charged in federal court in Boston with one count of identity theft and one count of mail fraud. U.S Magistrate Judge David H. Hennessy scheduled a detention and probable cause hearing for Monday, Oct. 2, 2017.
According to court documents, in August 2017, a Cape Cod resident contacted the United States Post Office to report overdue mail deliveries. Further inquiry showed that an unknown person had placed a “mail hold” on the customer’s residence. When the customer traveled to his USPS branch to remove the hold and to pick up his mail, he found a box addressed to him containing 10 new Fitbit Exercise Bands. The customer had previously been the victim of fraudulent credit card transactions and believed the Fitbit purchases stemmed from the compromised credit card.
On Aug. 16, 2017, an individual purporting to be the USPS customer called USPS inquiring about the package of Fitbits. USPS informed law enforcement and they coordinated a time for the package to be delivered to the fraudulent customer, later revealed to be Damerogo. Immediately after retrieving the package, law enforcement stopped Damerogo, questioned her, and placed her under arrest.
The charge of identity theft provides for a sentence of no greater than 20 in prison, three years of supervised release, and a fine of $250,000. The charge of mail fraud provides for a sentence of no greater than 15 years in prison, three years of supervised release, and a fine of up to $250,000. Damerogo, who is illegally present in the United States, will also be subject to deportation. 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; and Brewster Police Chief Richard Koch made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting this case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Men Enter Guilty Pleas in Federal Court on Conducting an Illegal Gambling Business ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Lawson Mangum, age 65, Anthony Todd, age 48, and Herbert Todd, age 49, all of Myrtle Beach, SC, pled guilty in federal court in Florence to Conducting an Illegal Gambling Business, a violation of Title 18, United States Code, Section 1955. United States District Judge Bryan Harwell, of Florence, accepted the pleas and will impose sentences after he has reviewed the presentence reports, which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that these defendants along with at least two other individuals were operating illegal gambling businesses in the Myrtle Beach area beginning as early as 2014. Mangum supplied the gambling machines to the Todd brothers who then installed the machines at their various gambling locations. The Todd brothers collected the gambling proceeds from the machines and split the proceeds with Mangum. During the execution of multiple search warrants, agents with the South Carolina Law Enforcement Division (SLED) and ICE-Homeland Security Investigations seized over 50 illegal gambling machines from businesses operated by this group of defendants. Ledgers seized during the search of one of these locations revealed that during January 2014 to August 2015, this gambling operation realized a profit of over $218,000.
Ms. Drake stated the maximum penalty the defendants can receive is imprisonment for 5 years and a fine of $250,000.
The case was investigated by agents of the South Carolina Law Enforcement Division and ICE-Homeland Security Investigations. Assistant United States Attorney A. Bradley Parham of the Florence office handled the case.
#####
Third Texas Man Pleads Guilty to Hate Crime for Assault Based on Victim’s Sexual OrientationRead the Press Release
Chancler Encalade, 20, pleaded guilty today to assaulting a man because of the victim’s sexual orientation, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division announced.
According to the plea agreement, Encalade admitted that he, Nigel Garrett, and Anthony Shelton used Grindr, a social media dating platform for gay men, to arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted the victim, and made derogatory statements to the victim for being gay. The defendants brandished a firearm during the home invasion, and they stole the victim’s property, including his motor vehicle.
A federal grand jury previously had returned an eighteen-count superseding indictment, against Encalade and three other men, which included charges for hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged the defendants with conspiring to cause bodily injury because of the victims’ sexual orientation during four home invasions in Plano, Frisco, and Aubrey, Texas, from January 17 to February 7, 2017. Nigel Garrett and Cameron Ajiduah subsequently pleaded guilty to hate crime charges from this indictment, and both await sentencing.
“The Justice Department will not tolerate hate crimes against any individual, for any reason, including sexual orientation,” said Acting Assistant Attorney General John Gore. “Hate crimes are violent crimes and they attack the fundamental principles of the United States. The Justice Department will continue to aggressively investigate and prosecute hate crimes.”
“Crimes of violence are an investigative priority for the U.S. Attorney’s Office,” said Acting U.S. Attorney Brit Featherston. “An assault perpetrated because of one’s race, ethnicity, religion, nationality, sexual orientation, or among other prohibited factors, is an attack on American values. We will leave no stone un-turned to prosecute hate crimes.”
Encalade faces a maximum statutory penalty of life in prison and a $250,000 fine for his guilty plea to the hate crime charge under federal statutes, the defendant faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
The investigation is being conducted by the ATF, the Plano Police Department, and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
Texas Man Sentenced to 2 Years in Federal Prison for Running Ponzi SchemeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885Greenbelt, Maryland – On September 13, 2017, U.S. District Judge Paula Xinis sentenced Sidney J. Charles, Jr., age 50, of Levelland, Texas, to two years in prison followed by three years of supervised release for wire fraud. The District Court also entered orders of forfeiture and restitution in the amount of $249,706.30.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the plea agreement, starting in or around August 2009, Charles founded The Borrowing Station, LLC (“The Borrowing Station”), a Nevada limited liability company with its principal place of business in Bowie, Maryland. From at least October 2009 through at least July 2011, Charles served as the president and chief executive officer of The Borrowing Station. Charles marketed The Borrowing Station as an established investment firm that offered significant returns on investments.
From at least October 2009 through at least July 2011, The Borrowing Station, acting through its officers, employees, and agents, including Charles, orchestrated and operated a scheme to solicit investors with false promises of high rates of guaranteed return on their investments. Charles, did not generate any material revenue for the investors, used funds from later investors to make payments to earlier investors, and used investor funds to enrich himself.
Between at least October 2009 through at least July 2011, in the District of Maryland and elsewhere, The Borrowing Station, through Charles and others, solicited and accepted more than $250,000 from at least 17 individuals and entities for the purpose of participating in a pooled investment vehicle that traded off-exchange leveraged or margined foreign currency contracts (“forex” or “foreign currency”). As part of the scheme to defraud, Charles solicited and accepted these monies for the ostensible purpose of participating in a pooled investment vehicle that traded off-exchange leveraged or margined forex. The subsequent loss of those funds resulted in substantial financial hardship to at least one of the investors.
Charles falsely advertised The Borrowing Station as an established, successful, and safe investment firm. The Borrowing Station website stated, for example, that The Borrowing Station “is an established company in the United States, specializing in Retirement and Education Savings.”
In addition, Charles solicited investors directly and through a website, www.earn25percent.com, a The Borrowing Station website, with false promises that investors could earn substantial investment returns such as 25% per year or 10% per month. Charles also falsely claimed that pool participant funds were guaranteed against trading losses.
The Borrowing Station did not make these returns or guarantee against trading losses, as Charles had falsely represented. Rather, Charles paid pool participants with other pool participants’ funds rather than from any funds generated by trading forex, and deposited only a portion of pool participant funds into actual trading accounts. Charles also hid trading losses from pool participants, including substantial losses resulting from unsuccessful forex trades. Charles used pool participant funds to pay for personal expenses, to make purported profit or commission payments to other pool participants, and to fund Borrowing Station’s operations.
In order to lull the participants, Charles and at least one other individual, both of whom were signatories on The Borrowing Station’s bank account, issued checks drawn on behalf of The Borrowing Station to pool participants that represented purported monthly returns or returns on investment. The amount of the funds that each check paid typically approximated the return of 10% per month that Charles, directly and through others, had promised pool participants. Charles issued these false profit checks and other materially false communications to pool participants in order to conceal the trading losses, the misappropriation of pool participant funds, and the fraudulent scheme.
Charles and others failed to disclose to pool participants and prospective pool participants that their claims of experience and success in trading forex were false and that there was no basis for their representations that pool participants could earn investment returns of 25% per year or 10% per month. Charles failed to disclose that he and others traded only a portion of pool participant funds. Charles failed to disclose to pool participants that Charles used pool participant funds for his personal expenses. In execution of the scheme to defraud, Charles used or caused to be used wire communications in interstate commerce.
Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Thomas M. Sullivan and Sujit Raman, who prosecuted the case.
Temple Hills Man Sentenced to 21 Months in Federal Prison for Stolen Identity Refund FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Timothy West, age 43, of Temple Hills, Maryland to 21 months in prison for mail fraud in connection with a stolen identity refund fraud scheme.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from approximately November 2011 through March 2013, Timothy West, along with others, engaged in a scheme to file fraudulent tax returns with the Internal Revenue Service (IRS) claiming refunds to which they were not entitled. On two separate occasions, West hired a tax return preparer in Temple Hills, Maryland, to prepare fraudulent returns falsely claiming, among other things, that two individuals were his dependents. As part of the scheme, West and others then used these false tax returns as templates to prepare and file hundreds of additional fraudulent tax returns with the IRS seeking more than $413,000 in refunds. West caused a tax loss of approximately $284,706 as a result of his actions as part of the scheme.
In addition to the term of prison imposed, U.S. District Judge Paul W. Grimm ordered West to serve three years of supervised release and to pay $284,706 in restitution to the IRS.
Acting U.S. Attorney Schenning and Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation and Treasury Office of Inspector General, who conducted the investigation, and Assistant U.S. Attorney Erin Pulice and Trial Attorneys William Guappone and Thomas F. Koelbl of the Tax Division, who prosecuted the case.
Salina Man Sentenced on Federal Child Porn ChargeRead the Press Release
WICHITA, KAN. – A Salina man was sentenced Monday to 108 months in federal prison for distributing child pornography on the internet, U.S. Attorney Tom Beall said.
Austin Wade Evans, 33, Salina, Kan., pleaded guilty to distributing and possessing child pornography. He admitted that on June 22, 2016, he used a Samsung TracFone to distribute child pornography over an internet file-sharing program. A detective with the Kansas Internet Crimes Against Children Task Force downloaded images from Evans’ phone.
On July 25, 2016, Evans gave his phone to investigators. Later, after child pornography charges were filed against him, Evans got another phone and distributed child pornography again.
After serving his sentence, Evans will be on supervised release for 15 years.
The Department of Homeland Security, Immigration and Customs Enforcement, and the Kansas Internet Crimes Against Child Task Force investigated. Assistant U.S. Attorney Jason Hart prosecuted.
Rutland Man Sentenced to 51 Months in Prison for Distribution of HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Mark Kriskov (a.k.a. “Johnny Est”), 55, of Rutland, Vermont, was sentenced by U.S. District Court Judge William K. Sessions, III, to a total of 51 months of imprisonment for distribution of heroin in the Rutland area. Judge Sessions gave Kriskov 13-months’ credit for time already spent in state custody on related state charges, thus Judge Sessions sentenced Kriskov to an additional 38-months of imprisonment to begin on September 19, 2017. Kriskov previously pled guilty to distribution of heroin. Judge Sessions also sentenced Kriskov to three years of supervised release by the United States Probation Office, which begins after Kriskov serves his term of imprisonment.
According to Court records, from late 2015 through July 2016, Kriskov sold over 50 grams of heroin, primarily out of his Maple Street, Rutland apartment, to Rutland area heroin addicts. In addition, according to the government’s allegations, Kriskov sold a stolen handgun to one of his drug customers. Kriskov is still facing multiple charges brought by the Rutland County State’s Attorney’s Office, including identity theft, possession of stolen property, unlawful possession of a firearm after a violent crime conviction, and DUI #4. Judge Sessions ordered that his federal sentence be concurrent to whatever sentence he receives, if convicted of any of these state charges.
While the government acknowledged that the defendant’s drug dealing was driven by his addiction, the government argued that the sentence imposed by Judge Sessions was warranted, given Kriskov’s egregious criminal history, which included a burglary conviction and multiple aggravated assault and DUI convictions. The government also argued that the defendant’s heroin dealing had a significant impact on the community and the defendant was likely to recidivate unless he was given a lengthy jail sentence.
This case was investigated by the Vermont State Police Drug Task Force, the Rutland City Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Joseph Perella is prosecuting this case on behalf of the United States. Kriskov is represented by Devin McLaughlin, Esq., of Middlebury, Vermont and Stephanie Greenlees, Esq., of Burlington, Vermont.
Rosebud Man Charged for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Phillip Little Hoop, age 35, was indicted on September 12, 2007. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 18, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Little Hoop was convicted of Sexual Abuse of a Minor in December 2008. As a result of this conviction, he is required to register as a sex offender. It is alleged that between April 7, 2017, and May 11, 2017, Little Hoop, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Little Hoop is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Little Hoop was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Registered Sex Offender Sentenced to 60 Years in Prison for Enticement and Sexual Exploitation of A MinorRead the Press Release
GRAND RAPIDS, MICHIGAN –Justin Michael Walling, 28, of Lowell, Michigan was ordered to spend 60 years in federal prison for sexual offenses against a minor, Acting U.S. Attorney Andrew Birge announced today. In addition to the prison term, U.S. District Judge Paul Maloney ordered lifetime supervision for Walling after his release.
Walling has a long history of criminal sexual misconduct. In 2004, he had a juvenile adjudication for first-degree criminal sexual misconduct. In 2007, he pleaded guilty to two counts of attempted third-degree criminal sexual conduct with two victims who were 13 years old. In 2008, he violated probation when he was found associating with a 15 year-old girl. When arrested for the probation violation, police discovered that Walling possessed pornographic images of a 16 year-old girl that he met online. That conduct resulted in a conviction for possession of child pornography. He was sentenced to prison and released in August 2014. As a result of these convictions, Walling was required to register as a sex offender.
In July 2015, using a pseudonym of "Justin Blade,"Walling befriended a thirteen-year-old girl on Facebook. She told him she was underaged. He sent her nude photographs of himself and asked her for sexually explicit photographs. At trial, the child explained that she was lonely and wanted a friend; she thought doing these things would make Walling her friend. As requested, she sent him pornographic images of herself. Twice he drove to her town to pick her up and take her back to his residence in Lowell, where they had sex.
Walling was charged with two counts of enticement of a minor, one count of sexual exploitation of a minor, one count of receipt of child pornography, and one count imposing additional penalties for committing the crimes while registered as a sex offender. He went to trial and was convicted of all counts on April 24, 2017.
Judge Maloney stated that the sentence imposed was necessary to protect the public because Walling is a predator who exploited a very vulnerable victim, who was under the age of consent. The Court emphasized that though it might be hard for the victim to put this behind her, "her voice has been heard."
"Today’s sentence effectively ends Justin Walling’s ability to sexually exploit children and underscores the commitment of the FBI, the West Michigan Based Child Exploitation Task Force (WEBCHEX) and the Ionia County Sheriff’s Office to protecting our vulnerable youth against sexual predators," said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI.
The FBI’s West Michigan Based Child Exploitation Task Force and the Ionia County Sheriff’s Office investigated the case. Assistant U.S. Attorney Alexis M. Sanford prosecuted and tried the case.
END
Preston County woman admits to oxycodone distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Kingwood, West Virginia woman pled guilty today to her role in an oxycodone distribution operation, Acting United States Attorney Betsy Steinfeld Jividen announced.
Carlee Cuppet, 25, pled guilty to one count of “Distribution of Oxycodone.” She admitted to selling oxycodone on September 9, 2015 in Monongalia County.
Cuppet faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Valley Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pittsburgh Man Sentenced to Prison for Conspiring to Distribute Heroin and CocaineRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 36 months imprisonment followed by three years supervised release on his conviction of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Marquette Williams, 39, of Pittsburgh, Pennsylvania.
According to information presented to the court, from January 2015 through May 2015 in the Western District of Pennsylvania and elsewhere, Williams conspired with others, both known and unknown, to distribute and possess with intent to distribute heroin, a Schedule I controlled substance. In addition, from April 2014 through February 2015, Williams conspired with others, both known and unknown, to distribute and possess with intent to distribute cocaine, a Schedule II controlled substance.
Assistant United States Attorney Katherine A. King prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) comprised of members drawn from the Drug Enforcement Administration, the Allegheny County Sheriff’s Department, the Baldwin Borough Police Department, the Duquesne Police Department, Homeland Security Investigations, the Munhall Police Department, the Pennsylvania State Police, the City of Pittsburgh Bureau of Police, the Scott Township Police Department, and the West Homestead Police Department, along with the City of New Kensington Police Department and the Pennsylvania Attorney General’s Office for the investigation leading to the successful prosecution of Marquette Williams. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pittsburgh Drug Dealer Caused Washington County DeathRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of dealing heroin and fentanyl, Acting United States Attorney Soo C. Song announced today.
Matthew David Adams, aka “Z”, age 28, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Washington County resident Jesse James King died of an overdose on April 19, 2016 and that the Washington County Coroner’s Office determined that he had a deadly amount of the synthetic opiate fentanyl in his system. Stamp bags marked “OMG” were located near the victim’s body. The victim’s phone ultimately led police to the seller of the “OMG” stamp bags, the defendant Matthew Adams. Police apprehended Adams with 47 stamp bags in his possession just two days after the death of Mr. King. The 17 bags stamped “OMG” were determined to contain fentanyl, while the other 30 bags marked “Gator” were found to contain heroin.
Chief Judge Conti scheduled sentencing for January 19, 2018 at 3:30 p.m. The law provides for a total sentence of up to 20 years in prison, a fine of up to $1,000,000, and up to a lifetime of supervision by federal Probation Officers. Adams, who was on probation as a result of a prior sentence from Allegheny County Court of Common Pleas Judge Joseph K. Williams, III for a previous heroin dealing conviction, is expected to receive a sentence of 8 years in federal prison, at least 4 years of supervision and restitution to the family of the victim. He will also face an additional potential sentence from Judge Williams for committing the offense while on county probation.
Pending sentencing, the court remanded the defendant back to the custody of the United States Marshal Service.
Assistant United States Attorneys Ross E. Lenhardt and Katie A. King of the Violent Crimes Section are prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration (DEA), the Washington County Drug Task Force, the Washington County Sheriff’s Office, the Washington County District Attorney’s Office, and numerous local police departments including the Canonsburg Police Department, Houston Borough Police Department, Stowe Township Police Department, Kennedy Township Police Department, as well as the Washington County Coroner’s Office, and the Allegheny County Medical Examiner’s Office, conducted the investigation that led to the prosecution of Matthew Adams.
Pine Ridge Woman Indicted for Assault with Intent to Commit MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, woman has been indicted by a federal grand jury for Assault with Intent to Commit Murder, Assault of a Federal Officer, Assault with a Dangerous Weapon, and Discharge of a Firearm during the Commission of a Crime of Violence.
Connie Wilson, age 54, was indicted on September 12, 2017. Wilson appeared before U.S. Magistrate Judge Daneta Wollmann on September 13, 2017, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Wilson assaulting two federal officers with a firearm in Oglala Lakota County on August 29, 2017.
The charges are merely accusations and Wilson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Wilson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for November 14, 2017.
Pharmacist and His Employee Convicted of over $30 Million Health Care Fraud Against Military Insurance ProgramRead the Press Release
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; John Khin, Special Agent in Charge, Department of Defense Criminal Investigative Service (DCIS), Southeast Field Office; Maximo Eamiguel, Special Agent in Charge, United States Postal Service, Office of Inspector General (USPS-OIG), Southern Area Field Office; James T. Wallis, Special Agent in Charge, U.S. Army Criminal Investigation Command, Southeast Fraud Field Office; Justin D. Green, Special Agent in Charge, U.S. Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office; and Scott Rezendes, Special Agent in Charge, United States Office of Personnel Management, Office of Inspector General (OPM-OIG), announced the conviction of Serge Francois and Patrick Tonge for their involvement in a conspiracy to commit health care fraud and pay kickbacks in connection with federal health care programs. The fraudulent scheme caused over $30 million in losses to the federal TRICARE program. TRICARE provides coverage for active duty military and their families, as well as retired veterans. In addition, the fraudulent scheme caused the Federal Employee Health Benefit Program (FEHBP) to sustain losses.
On September 5, 2017, after a one-month trial, a federal jury found Francois guilty of conspiracy to commit health care fraud, twelve counts of health care fraud, conspiracy to pay kickbacks in connection with a federal health care program, five counts of paying such kickbacks, and twelve counts of money laundering. In addition, Francois was found guilty of eight counts of introducing misbranded drugs into interstate commerce, four counts of making false statements related to health care matters, and one count of making a false statement on a DEA form. The jury found Tonge guilty of the same conspiracy charges, as well as eleven counts of health care fraud, three counts of paying kickbacks, and two counts of money laundering.
According to evidence presented at trial, Francois, a pharmacist, owned and operated Atlantic Pharmacy and Compounding, located in Pompano Beach, Florida. From there, Francois and his right-hand man at the pharmacy, Patrick Tonge, entered into a vast conspiracy with so-called marketers who paid physicians to write prescriptions for topical medications that cost up to $17,000 a bottle. As the pharmacist in charge, Francois was responsible for the compounded medications, which were made in-house by the pharmacy.
Francois, Tonge and their co-conspirators agreed to automatically refill the prescriptions, sending numerous refills to patients who did not request them or need them, while not charging a co-pay in hopes that the patients would not bother to return the medications. Francois and Tonge would pay the marketers out of the profit received for each prescription; and the marketers in turn would pay the physicians. Evidence further showed that a substantial portion of the scheme involved physicians never seeing or examining the purported patients. Rather, they used the patients’ personal identification information to write the prescriptions.
Testimony and other evidence at trial revealed that Francois and Tonge specifically targeted the TRICARE program. Through the conspiracy, Atlantic Pharmacy billed over $37 million to TRICARE and FEHBP, with TRICARE paying out over $30 million in false and fraudulent claims.
Evidence at trial showed that Francois used the fraud proceeds to buy a $3.6 million mansion that once belonged to Dwayne “the Rock” Johnson, along with a Ferrari, two Rolls Royces, and over $1 million in luxury automobiles.
In addition, trial evidence revealed the kickback conspiracy component of the fraud scheme. For example, the marketers told Francois and Tonge that if they did not get paid they could not pay the physicians, and thus the physicians would stop writing the prescriptions. Francois and Tonge continued to make payments and bill TRICARE up until May 2016, when TRICARE stopped covering the medications due to growing knowledge of similar fraud involving other compounding pharmacies. In total, seventeen individuals pled guilty or were convicted for their involvement with the fraudulent scheme or receipt of kickbacks.
“Serge Francois and Patrick Tonge have been held responsible for an egregious fraud scheme that unlawfully diverted over $30 million in federal health care monies that were set aside for the men and women in uniform who serve and protect our country,” stated Acting United States Attorney Benjamin G. Greenberg. “The U.S. Attorney’s Office and our law enforcement partners will continue to work tirelessly to identify for prosecution individuals, including healthcare providers, who carry out fraudulent schemes against TRICARE or other federal health care programs for their own personal financial benefit at a loss to the deserving beneficiaries.”
“The Defense Criminal Investigative Service is committed to protecting the integrity of the U.S. military health care program to provide top quality medical care to America’s Warfighters and their families, while ensuring that health care providers and facilities comply with Federal laws,” said John F. Khin, Special Agent in Charge, DCIS - Southeast Field Office. “Through joint investigations with our law enforcement partners, DCIS aggressively pursues criminal prosecutions and all available remedies to bring violators to justice. These guilty verdicts demonstrate the effectiveness of our investigative efforts.”
“The verdict reached in this case should be an example to those healthcare providers engaging in illegal schemes that the government is vigilant and these crimes will not be tolerated," said Special Agent in Charge Maximo Eamiguel, of the U.S. Postal Service Office of Inspector General Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners will continue to vigorously investigate these types of cases in order to protect federal benefit programs from fraud and abuse ensuring the safety of its beneficiaries.”
“The jury’s verdict should stand as a deterrent to those who would engage in fraud and corruption for personal gain, and is a testament to the thorough and professional effort of our investigative and prosecutorial team,” said Special Agent in Charge James T. Wallis, of the U.S. Army Criminal Investigation Command’s Southeast Fraud Field Office. “We will diligently continue our efforts to pursue those engaged in criminal activity that impacts the integrity of U.S. Government and Army programs and resources within our purview.”
“FDA is fully committed to the vigorous criminal investigation and prosecution of individuals who threaten the health and safety of American consumers by causing misbranded drugs to be distributed,” said Justin D. Green, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “Our office will continue to pursue and bring to justice those who place profits above the public health.”
“This conviction should act as a warning to those who believe they can defraud the government with impunity,” said Scott Rezendes, Special agent in Charge, OPM-OIG. “The OPM Office of the Inspector General is committed to holding such individuals accountable for their actions.”
Mr. Greenberg commended the investigative efforts of DCIS, USPIS-OIG, U.S. Army Criminal Investigation Command, FDA Office of Criminal Investigations and OPM-OIG. The case was prosecuted by Assistant United States Attorneys Daniel Bernstein and Franklin Monsour.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Peruvian National Sentenced in Manhattan Federal Court to 12 Years in Prison for Running Million-Dollar Ponzi SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that PEDRO JARAMILLO, a/k/a “Enrique Jaramillo,” was sentenced today to 12 years in prison for commodities fraud and wire fraud charges stemming from his scheme to defraud more than two dozen investors, including retirees, working professionals and manual laborers from Peru and countries in Latin America, of more than $1.2 million through a Ponzi-like scheme. Many of JARAMILLO’s victims, many of whom submitted letters to the Court or spoke at JARAMILLO’s sentencing, lost their life savings to JARAMILLO’s scheme, including their homes.
In imposing today’s sentence, Judge Laura Taylor Swain described JARAMMILLO’s conduct as “calculated and utterly despicable” and noted the “profoundly devastating impact” of the scheme on JARAMILLO’s victims.
JARAMILLO was arrested on December 2, 2016, and has remained detained since that date. On April 7, 2017, JARAMILLO pled guilty to commodities fraud and wire fraud charges before Judge Swain.
Acting U.S. Attorney Joon H. Kim said: “Pedro Jaramillo lured investors with a slick video pitch complete with iconic New York scenes and music. He purported to be ‘a proven winner’ who promised high returns but he was just a swindler, spending investors’ money on himself and to repay early investor redemptions. Many victims – including retirees, working professionals, and manual laborers – lost their life savings, and Jaramillo now faces the substantial term in prison his crime merits.”
According to the Complaint, the Indictment, and other statements made in open court:
Beginning in at least January 2014 through in or about December 2016, JARAMILLO solicited more than $1.2 million in investments from more than two dozen investors, primarily for the purported purpose of investing in commodity futures contracts, by falsely representing, orally and in writing, that investor monies would be invested in short-term commodities contracts with a guaranteed rate of return.
To help attract investors, JARAMILLO maintained an office on Wall Street (the “Wall Street Office”) where he met with prospective investors to tout his prior success and relationship with a prominent international bank (the “Global Investment Bank”). JARAMILLO also starred in a youtube.com video (the “Video”) set to the soundtrack of Frank Sinatra’s “New York, New York.” The Video featured a series of images of Wall Street, the New York Stock Exchange, and JARAMILLO in front of the Wall Street Office. In the video, JARAMILLO told prospective investors that he was a “proven winner” and “trusted partner” who would maintain individually managed and federally insured accounts for each client. JARAMILLO told prospective investors that these safeguards would ensure that prospective investors would “be protected against fraud and brokerage failure.”
In truth and in fact, JARAMILLO not only failed to create individual investment accounts, he failed to use investor funds to make any legitimate investments, instead diverting the majority of funds to his own use or to repay earlier investors whose redemption requests could not be forestalled. In total, JARAMILLO diverted more than $700,000 to his own use in the form of cash withdrawals and debit card purchases used to fund his lifestyle, including thousands of dollars on three vacations to Disney World for JARAMILLO, family, and guests.
To hide his misappropriations and continue to fund his personal lifestyle, JARAMILLO also used new investor funds to pay back other investors in a Ponzi-like fashion. In total, since January 2014, JARAMILLO distributed more than $200,000 back to investors from funds deposited by new investors. During that time, JARAMILLO also diverted more than $100,000 of investor funds out of bank accounts he controlled in the United States to foreign bank accounts, including in Peru where JARAMILLO is a citizen.
* * *
In addition to the 12-year prison sentence, JARAMILLO, 49, a Peruvian National who was residing in Queens, New York, before his arrest, was sentenced to 3 years of supervised release. The Court further ordered JARAMILLO to forfeit the proceeds of the scheme and to pay restitution in an amount to be determined.
Mr. Kim praised the work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrea M. Griswold is in charge of the prosecution.
Pawtucket Resident Admits to Trafficking Cocaine, Crack CocaineRead the Press Release
PROVIDENCE – General Jones, 31, of Pawtucket, pleaded guilty in federal court in Providence today to trafficking cocaine and crack cocaine, announced Acting United States Attorney Stephen G. Dambruch, Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF, and Pawtucket Police Chief Tina Goncalves.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Jones pleaded guilty to two counts of distribution of 28 grams or more of crack cocaine, and one count each of possession with the intent to distribute cocaine and possession with the intent to distribute 28 grams or more of crack cocaine.
At the time of his guilty plea, Jones admitted to the Court that on at least five occasions between October 17, 2016, and March 2, 2017, he sold between 30 and 49.95 grams of cocaine to an individual assisting the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and an ATF task force in an investigation of Jones’ drug trafficking activities. On at least three of those occasions, Jones sold the individual between 24.99 and 47.54 grams of crack cocaine.
According to information presented to the court, on March 9, 2017, ATF agents, members of the ATF task force and Pawtucket Police executed court authorized search warrants at two residences under the control of Jones in Pawtucket. At one location, used by Jones for his drug trafficking activity, law enforcement seized 368.39 grams of cocaine, 92.16 grams of crack cocaine and $13,020 in cash proceeds from the sale of cocaine and crack cocaine. At the second location law enforcement seized $8,000 in cash, proceeds from his drug trafficking activity. Law enforcement also seized $606 from Jones’ person, proceeds from the sale of cocaine and crack cocaine.
General Jones has been detained in federal custody since his arrest on March 9, 2017. He is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on December 4, 2017.
Distribution of 28 grams or more of crack cocaine and possession with the intent to distribute crack cocaine are punishable by statutory penalties of between 5- 40 years in federal prison to be followed by a minimum of 5 years supervised release. Possession with the intent to distribute cocaine is punishable by statutory penalties of up to 20 years in federal prison to be followed a minimum of 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The ATF task force is comprised of agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Rhode Island State Police, Rhode Island Department of Corrections Special Investigations Unit, and the Pawtucket and Providence Police Departments.
###
Optometrist Pleads Guilty to Health Care FraudRead the Press Release
PITTSBURGH – A resident of Hazelet, New Jersey, pleaded guilty in federal court to health care fraud, Acting United States Attorney Soo C. Song announced today.
Dr. Vincent J. Gamuzza, 31, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, Gamuzza, a doctor of optometry, admitted that he operated multiple vision centers in Pennsylvania, including Western Pennsylvania, and in New Jersey. Gamuzza further admitted that he was responsible for handling all billing to insurance companies, including Highmark Inc. and Davis Vision. As part of his plea, Gamuzza admitted that between in or around December 2015 and July 2016, he submitted fraudulent claims to Highmark Inc. for services that were never provided to patients. He also admitted that he impermissibly submitted claims for the same services to both Highmark, Inc. and Davis Vision.
Judge Bissoon scheduled sentencing for January 23, 2018, at 2:15 p.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Robert S. Cessar and Eric G. Olshan are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the United States Department of Health and Human Services – Office of Inspector General, and the Department of Defense – Office of Inspector General conducted the investigation of Gamuzza.
Operator of Real Estate Investment Scheme Pleads Guilty to Fraud ChargesRead the Press Release
CHARLOTTE, N.C. – Carl Lee Ferrell, 53, of Waxhaw, N.C. appeared in court today and admitted to running a real estate investment scheme that defrauded victims of over $400,000, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Ferrell pleaded guilty to one count of wire fraud before U.S. Magistrate Judge David C. Keesler.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina.
According to filed court documents, from 2012 to 2016, Ferrell executed a financial scheme involving fraudulent real estate investments, that defrauded victims of over $400,000. To induce victims to invest in his scheme, Ferrell falsely told victim-investors that he was the managing member and president and CEO of Wholesale Properties International, LLC (“Wholesale Properties”), purportedly a large international real estate investment company involved in multimillion dollar investment deals, with several locations in North Carolina, South Carolina, and Washington, D.C. In reality, Wholesale Properties was run by Ferrell, his girlfriend, and another individual, from a rented home in Waxhaw, and had never consummated a million-dollar deal.
Court records also show that, to further induce victims, Ferrell created a company webpage which contained numerous false and fraudulent representations regarding the nature and scope of Wholesale Properties’ business, and created false testimonials on the website, with the Better Business Bureau, and in emails. Filed court documents reflect that when victims began demanding their money back, Ferrell made various excuses, including that “the check was in the mail,” that Wholesale Properties had been sold to another company, and that “the accounting department only sends checks out in big batches.”
Instead of investing the victims’ money as promised, Ferrell often used it to pay for personal expenditures such as rent, food, and entertainment, to pay for properties other than those in the investment agreements with the victims, and to pay other victims in Ponzi fashion.
Ferrell was released on bond following his guilty plea. The charge carries a maximum prison term of 20 years and a $250,000 fine. A sentencing date for the defendant has not been set yet.
The investigation was led by the FBI. Assistant United States Attorneys Maria Vento and Dallas J. Kaplan, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.
Oklahoma City Man Pleads Guilty to Filing a False Tax Return After Diverting Hundreds of Thousands of Dollars of IncomeRead the Press Release
Oklahoma City, Oklahoma – FRANCIS MICHAEL BOSTICK, of Oklahoma City, pled guilty today to filing a false federal income tax return for 2012 that failed to report more than $325,000 of income, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On June 6, 2017, a federal grand jury returned an indictment charging Bostick with four counts of false statements on tax returns. The four counts related to tax years 2010, 2011, 2012, and 2013. According to the indictment, Bostick was the owner and operator of an oil field service company, Bostick Services Corporation. It was also alleged that Pioneer Trucking, one of Bostick Services Corporation’s customers, regularly purchased from Bostick’s company "tank bottoms," which are the heavier substances that settle at the bottom of wastewater tanks. Bostick was alleged to have directed Pioneer Trucking to pay for the tank bottoms by checks to Bostick individually, instead of to Bostick Services Corporation. He also allegedly asked Pioneer Trucking to split payments over approximately $9,000.00 into multiple checks, and then he cashed those checks instead of depositing them into any bank account. As a result, it was alleged, Bostick’s CPA was never given information on that additional income, and it was omitted from Bostick’s individual tax returns. The indictment alleged Bostick omitted over $250,000.00 in income in 2010, over $350,000.00 in income in 2011, over $325,000.00 in income in 2012, and over $275,000.00 in income in 2013.
At the plea hearing today before United States District Judge Vicki Miles-LaGrange, Bostick admitted he filed a false tax return for 2012, which claimed $1,506,305.00 in income, when he knew he had made at least an additional $325,000.00 that he had diverted by cashing personal checks from Pioneer Trucking. Bostick admitted he knew he needed to report his entire income, but he intentionally diverted funds and filed a false tax return that did not include his entire income. As part of his Plea Agreement, Bostick has agreed that the total tax loss to the Internal Revenue Service for his conduct is between $250,000.00 and $550,000.00. Bostick has also agreed to pay restitution to the Internal Revenue Service for all taxes due and owing for 2010, 2011, 2012, and 2013.
At sentencing, Bostick faces a maximum sentence of 3 years in prison, 1 year of supervised release, a fine of $250,000, and restitution to the IRS for all related fraudulent tax filings. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by IRS-Criminal Investigations and is being prosecuted by Assistant U.S. Attorney K. McKenzie Anderson.
North Texas Man and Woman Sentenced for Meth Soaked Greeting CardRead the Press Release
PLANO, Texas - A North Texas man and woman have been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Amanda Lynn Mollison, 29, of Allen, Texas, pleaded guilty on May 3, 2017 to providing contraband in prison. Justin Chadwick Brown, 39, of Grand Prairie, Texas, pleaded guilty on May 4, 2017, to possession of contraband in prison. Mollison and Brown were each sentenced to 51 months in federal prison last week by U.S. District Judge Marcia A. Crone.
According to information presented in court, on Oct. 11, 2016, Mollison sent Brown a greeting card soaked in methamphetamine through the mail to the Collin County Jail where Brown was incarcerated. Officials with the Collin County Sheriff’s Office tested the greeting card which tested positive for the presence of methamphetamine. Investigators then searched for phone calls between inmate Brown and Mollison that had been recorded. Investigators learned that between Sep. 30, 2016 and Oct. 5, 2016, Brown requested that Mollison send him the greeting card containing methamphetamine. Mollison and Brown were indicted by a federal grand jury on Feb. 9, 2017.
This case was investigated by the U.S. Postal Inspection Service and the Collin County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Tracey M. Batson.
Nigerian Man Sentenced for Illegal Re-entry into United StatesRead the Press Release
SYRACUSE, NEW YORK – Chukwudi Olisemeka, age 48, and a citizen of Nigeria, was sentenced today to 6 months in jail for 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 July 17, 2017 guilty plea, Olisemeka admitted that he was a citizen of Nigeria, and that he illegally returned to the United States following his June 19, 2008 removal to Nigeria. On May 7, 2017, Olisemeka was found by a Border Patrol agent in Massena, New York, on a bus destined for New York City.
Following his term of imprisonment, Olisemeka will be transferred to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Nicaraguan National Sentenced for Illegal Reentry after DeportationRead the Press Release
BOSTON – A Nicaraguan national, charged with illegally reentering the United States after deportation, pleaded guilty today and was sentenced in federal court in Boston.
Alberto Jose Mora-Hurtado, 43, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Nathaniel M. Gorton sentenced Mora-Hurtado to time served and one year of supervised release. Mora-Hurtado will be subject to deportation proceedings.
Law enforcement officers in Chelsea encountered Mora-Hurtado on July 24, 2017, and determined him to be illegally present in the United States. Mora-Hurtado was previously deported on Sept. 1, 2010.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
Navajo Man from Breadsprings, N.M., Pleads Guilty to Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – Brian Lee, 31, an enrolled member of the Navajo Nation who resides in Breadsprings, N.M., pled guilty today in federal court in Albuquerque, N.M., to child sexual abuse charges. Under the terms of his plea agreement, Lee will be sentenced to 15 years in federal prison followed by a term of supervised release to be determined by the court. Lee will also be required to register as a sex offender.
Lee was arrested on July 13, 2017, on a two-count indictment charging him with sexually abusing a child under the age of 12 on two separate occasions between July 2012 and July 2016, on the Navajo Indian Reservation in McKinley County, N.M.
During today’s proceedings, Lee pled guilty to a two-count felony information charging him with aggravated sexual abuse and sexual abuse. In entering the guilty plea, Lee admitted that between July 15, 2012 and July 15, 2016, he engaged in sexual acts with the victim on two separate and distinct occasions at his home in Breadsprings on the Navajo Indian Reservation. Lee further admitted that he likely was responsible for infecting the victim with a sexually transmitted disease. Lee remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI. Special Assistant U.S. Attorney Lucy B. Solimon is prosecuting this case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
NKC Woman Pleads Guilty to Embezzling $277,000 from Her EmployerRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a North Kansas City, Mo., woman pleaded guilty in federal court today to embezzling more than $277,000 from her former employer.
Tonya A. Topel, 40, of North Kansas City, Mo., waived her right to a grand jury and pleaded guilty before U.S. District Judge Gary A. Fenner to a federal information that charges her with wire fraud and aggravated identity theft.
Topel was a senior auditor at Construction Benefits Audit Corporation (CBAC), a Kansas City, Mo., non-profit corporation that conducts employer audits of union contracts for employers making payments into fringe benefit plans, and ensures fringe benefit payments are made correctly. Topel, who earned approximately $68,000 a year, managed audits and staff and presented ongoing audits. She handled expense payments and had sole access to CBAC’s QuickBooks.
By pleading guilty today, Topel admitted that she conducted four fraudulent embezzlement schemes while employed at CBAC. She began her first scheme, in which she created false invoices for toner cartridges, on Oct. 18, 2012, just a few months after she started working at CBAC. She then added three more fraud schemes, which continued until CBAC discovered her embezzlement and she resigned in May 2016.
Through her four fraud schemes, Topel embezzled a total of at least $277,681 from CBAC. The investigation to date has shown Topel’s spending of the embezzled funds included travel to Hawaii, Dallas, Boston, and the Bahamas; restaurants; entertainment, including golf, spas, tickets for the Kansas City Royals and Chiefs and Worlds of Fun; a 2014 Ford Mustang; and personal spending such as cash, clothing, dance classes, utility bills, jewelry, transfers to relatives, bank fees/NSF fees, iPads, groceries, and other living expenses.
In Topel’s first scheme to defraud CBAC, she created false invoices for toner cartridges and correspondingly altered CBAC American Express monthly statements to make it appear the toner invoices were being charged to CBAC’s American Express account. Topel submitted the invoices and altered American Express bills to CBAC. CBAC then paid for the false toner invoices to American Express. In reality, Topel made personal charges to the CBAC American Express card, which CBAC paid. Topel submitted her first false toner invoice on Oct. 18, 2012, and continued this scheme through May 2015, during which time she embezzled approximately $45,809.
In her second scheme to defraud CBAC, Topel falsely inflated her payroll checks and made payments to a false IRA plan (which was actually her own bank account). Topel began this scheme in March 2013 and continued it into 2016, during which time she embezzled approximately $24,777.
In her third scheme to defraud CBAC, Topel used a former vendor’s name to create a false email address, false street address, 72 false invoices, and false IRS forms. Topel created the false invoices in amounts ranging from $1,080 to $4,680, made payable to bank accounts controlled by her. Through this scheme, Topel embezzled approximately $188,599.
In her fourth scheme to defraud CBAC, Topel misused a company credit card by charging personal expenses, such as a vacation to the Bahamas, to the card beginning in 2016. Topel then paid the CBAC’s company credit card bill using CBAC’s bank account. Topel created at least five false paystubs in which she showed deductions from her paycheck in order to reimburse CBAC, however, she made no reimbursements for her use of the company credit card. Through this scheme, Topel embezzled approximately $19,780.
Under the terms of today’s plea agreement, Topel must pay a money judgment of at least $277,681 and forfeit to the government a 2014 Ford Mustang.
Under federal statutes, Topel is subject to a sentence of up to 20 years in federal prison without parole for wire fraud, plus a mandatory consecutive sentence of two years in federal prison without parole for aggravated identity theft. 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. Attorney Kathleen D. Mahoney. It was investigated by the FBI.
Myrtle Beach Man Sentenced on Illegal Re-entry ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Edgar Benjamin Lopez-Morales, age 29, from Myrtle Beach, was sentenced in federal court in Florence, South Carolina, for Illegal Re-Entry into the United States after Deportation, a violation of 8 U.S.C. § 1326(a)(2). United States District Judge Bryan Harwell, of Florence, sentenced Lopez-Morales to 15 months imprisonment.
Evidence presented at the change of plea hearing established that on February 26, 2017, ICE-Enforcement Removal Operations Officers in Charleston, SC, discovered Edger Benjamin Lopez-Morales, while he was in custody at the Horry County Detention Center on state charges. Immigration records revealed that Lopez-Morales was a native and citizen of Honduras who had previously been deported from the United States on multiple occasions. Lopez-Morales has never received permission to enter or remain in the U.S.
The case was investigated by the Horry County Police Department and agents of ICE-Enforcement Removal Operations. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
#####
Myrtle Beach Man Enters Guilty Plea to Illegal Re-entry ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Israel Mejia-Coyoy, age 33, from Myrtle Beach pled guilty in federal court in Florence, South Carolina, to Illegal Re-Entry into the United States after Deportation, a violation of 8 U.S.C. § 1326(a)(2). United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on May 29, 2017, ICE-Enforcement Removal Operations Officers in Charleston, SC, discovered Israel Mejia-Coyoy, while he was in custody at the Horry County Detention Center on state charges. Records checks revealed that Mejia-Coyoy was a native and citizen of Guatemala who had previously been deported from the United States. Mejia-Coyoy has never received permission to enter or remain in the U.S.
The case was investigated by the Horry County Police Department and agents of ICE-Enforcement Removal Operations. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
#####
Montgomery County Couple Sentenced in Bankruptcy Fraud ConspiracyRead the Press Release
HOUSTON, Texas - A Conroe, Texas couple has been sentenced for bankruptcy fraud conspiracy in the Southern District of Texas, announced Eastern District of Texas Acting U.S. Attorney Brit Featherston.
Richard Kent Harris, 74, and Darlene Ann Riley, 59, pleaded guilty on Mar. 8, 2017, to conspiracy to commit bankruptcy fraud. Harris was sentenced to 10 months in federal prison today by U.S. District Judge Kenneth M. Hoyt. Riley was sentenced to 12 months of home confinement.
According to information presented in court, on June 22, 2012, Richard Harris entered into a contract with a home builder to construct a custom home for Harris and his wife, Darlene Riley. In August 2012, Harris and Riley became embroiled in a dispute with the home builder over the design of their house and a lawsuit ensued. The lawsuit went to arbitration, where Harris and Riley were ordered to pay the home builder $54,686.55 in damages. Approximately two weeks later Harris and Riley consulted with a bankruptcy attorney.
Harris and Riley filed for divorce on Apr. 1, 2013, but continued to reside at the same address. In the months leading up to the divorce filing, Harris and Riley made substantial charges on their credit card, which was used for their mutual benefit. On Feb. 26, 2013, Riley withdrew $67,000 from the joint checking account she shared with Harris and deposited it into her own sole checking account.
Following Riley’s filing for divorce, a property settlement was entered into between Riley and Harris. All material assets of the marriage were awarded to Riley, which included a 2004 Jaguar XK8, a 2007 beachcomber boat, a utility trailer, all of their furnishings, 43 paintings, jewelry, 2012 federal income tax refund, and half of his net federal pension. On June 12, 2013, Harris also transferred his interest in their homestead by special warranty deed to Riley. The divorce was finalized on June 3, 2013.
On Oct. 15, 2013, Harris filed for Chapter 7 bankruptcy in the Southern District of Texas. Harris claimed debts totaling $173,305.19 to various banks, credit cards, the home builder and other unsecured creditors. Harris failed to disclose on his bankruptcy petition the transfer of his homestead interest to Riley, the vehicle transfers, the sale of a truck for $5,500, and the $67,000 withdrawal from his joint account with Riley. A review of Riley’s bank records found that the $67,000 she transfered into her solely owned bank account was spent on mortgage payments and other joint household expenses. Riley’s transfer of the $67,000 from the joint account with Harris was done to hide those assets from being used to repay Harris’s creditors in the Chapter 7 bankruptcy. Further, Harris filed the bankruptcy petition with knowledge that the transfer was not disclosed to his creditors in the bankruptcy petition, as is required by law.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Eastern District of Texas Assistant U.S. Attorneys Christopher T. Tortorice and Paul Hable.
Mexican National Sentenced for Illegal Re-entry ChargeRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Jose Alberto Nava-Reyes, age 35, from Guerrero, Mexico, was sentenced in federal court in Florence, South Carolina, for Illegal Reentry into the United States after Deportation, a violation of 8 U.S.C. § 1326(a). United States District Judge Bryan Harwell, of Florence, sentenced Nava-Reyes to 18 months imprisonment.
Evidence presented at the change of plea hearing established that on April 15, 2017, ICE-Enforcement Removal Operations Officers in Charleston, SC, discovered Nava-Reyes, while he was in custody at the J. Reuben Long Detention Center in Horry County on state charges. Immigration records revealed that Nava-Reyes was a native and citizen of Mexico who had previously been deported from the United States back to Mexico on multiple occasions. Nava-Reyes has never received permission to enter or remain in the U.S.
The case was investigated by the Horry County Police Department and agents of ICE-Enforcement Removal Operations. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
#####
Marshall County woman sentenced for cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – A Moundsville, West Virginia woman was sentenced today to 70 months incarceration for cocaine distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Sodonna M. Nuce, age 39, pled guilty to one count of “Distribution of Cocaine Base” in August 2017. She admitted to distributing cocaine in Marshall County on February 7, 2017.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Marshall County Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Man Sentenced to Prison in Maryland for Stolen Identity Refund FraudRead the Press Release
A 43-year-old man was sentenced in the District of Maryland to 21 months in prison for mail fraud in connection with a stolen identity refund fraud scheme, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Stephen M. Schenning for the District of Maryland.
According to documents filed with the court, from approximately November 2011 through March 2013, Timothy West, along with others, engaged in a scheme to file fraudulent tax returns with the Internal Revenue Service (IRS) claiming refunds to which they were not entitled. On two separate occasions, West hired a tax return preparer in Temple Hills, Maryland, to prepare fraudulent returns falsely claiming, among other things, that two individuals were his dependents. As part of the scheme, West and others then used these false tax returns as templates to prepare and file hundreds of additional fraudulent tax returns with the IRS seeking more than $413,000 in refunds. West caused a tax loss of approximately $284,706 as a result of his actions as part of the scheme.
In addition to the term of prison imposed, U.S. District Judge Paul W. Grimm ordered West to serve three years of supervised release and to pay $284,706 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schenning thanked special agents of IRS Criminal Investigation and Treasury Office of Inspector General, who conducted the investigation, and Assistant U.S. Attorney Erin Pulice and Trial Attorneys William Guappone and Thomas F. Koelbl of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Man Charged in Massive Tax Scheme That Stole the Identities of over 10,000 Victims, Sought over $10 Million in Fraudulent RefundsRead the Press Release
NEWARK, N.J. – A resident of Nigeria was indicted today for participating in a sophisticated business email scheme that sought millions of dollars from the U.S. Treasury and a separate conspiracy to possess counterfeit and unauthorized credit cards, Acting U.S. Attorney William E. Fitzpatrick announced.
Alade Qudus Badmus, 29, of Lagos, Nigeria, is charged with one count of wire fraud conspiracy, three counts of wire fraud, five counts of aggravated identity theft, and one count of conspiracy to commit access device fraud. He is currently at large.
According to documents filed in this case:
Badmus and his conspirators engaged in a business email compromise scheme in which they “spoofed,” or altered, the email header information of high-ranking corporate officers of numerous victim corporations, including Fortune 500, multinational, and publicly traded companies. Badmus and others then sent phishing emails with the spoofed headers to employees of the victim companies requesting W-2 forms containing the names, addresses, social security numbers, and other personally-identifying information (PII) of thousands of employees.
Tricked into thinking that the emails were legitimate, the victim company employees responded to the emails and sent the W-2 forms to Badmus and other conspirators. In total, Badmus and others obtained the PII of more than 10,000 employees.
Badmus and others used stolen PII to file thousands of fraudulent tax returns. To further facilitate the conspiracy, Badmus and others accessed the IRS’s “Get Transcript” system to obtain additional information on certain individuals. In total, Badmus and others sought more than $10.2 million in fraudulent tax refunds.
In addition, Badus also engaged in a separate conspiracy to possess with intent to defraud dozens of fraudulently-obtained credit cards, along with the PII for dozens of other individual victims.
Badmus faces a maximum potential penalty of 20 years in prison for the wire fraud conspiracy and wire fraud charges, 10 years in prison for the conspiracy to commit access device fraud charge, and 24-month consecutive sentences on each of the aggravated identity theft counts.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and 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 Osmar Benvenuto of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Mail Carrier Sentenced for Stealing Gift Cards from MailRead the Press Release
WICHITA, KAN. - A former mail carrier in Sheridan County was sentenced Monday to six months in prison for stealing mail he was supposed to deliver, U.S. Attorney Tom Beall said. The defendant was ordered to pay $4,000 in restitution.
James N. Stephenson, 25, formerly of Hoxie, Kan., and now living in Basehor, Kan., pleaded guilty to one count of mail theft. In his plea, he admitted the crime occurred while he was employed at the Post Office in Hoxie, Kan. He stole mail containing cash, gift cards and prepaid debit cards. He said he looked for birthday and anniversary cards that were likely to contain items of value.
After serving his sentence, Stephenson will spend two years on supervised release.
Beall commended the U.S. Postal Inspection Service - Office of Inspector General and Assistant U.S. Attorney Brent Anderson for their work on the case.
Long Island Man Sentenced to Two Years for Trafficking Rhinoceros HornsRead the Press Release
Fengyi Zhou, a resident of Syosset, New York, and the owner of a business specializing in Asian works of art, was sentenced today to two years of imprisonment for one count of information of wildlife trafficking in violation of the Lacey Act for illegally trafficking horns from endangered black rhinoceros, the Justice Department announced.
The sentence was announced by Acting Assistant Attorney General Jeffrey H. Wood of the Department of Justice’s Environment and Natural Resources Division and Greg Sheehan, Acting Director of the U.S. Fish and Wildlife Service (USFWS).
According to papers filed in federal court, Zhou admitted to purchasing as many as five uncarved rhinoceros horns from another Asian arts dealer in New York. Along with the horns, Zhou was given an “Endangered Species Bill of Sale,” from which Zhou was made aware that four of the horns were purchased in Texas and unlawfully transported to New York. Immediately after purchasing the rhinoceros horns, Zhou offered to sell and later sold the horns, to an associate who was a Chinese national residing in the People’s Republic of China for more than $130,000.
"Illegal trade in rhino horn and ivory undermines vital efforts to protect imperiled species and is a serious violation of U.S. and international laws,” said Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division. “The Justice Department will continue to prosecute those guilty of illegal wildlife trafficking.”
"Today's sentencing sends a strong message to those individuals who choose to exploit and illegally traffic black rhinos and other imperiled wildlife," said U.S. Fish and Wildlife Service Deputy Assistant Director for Law Enforcement Ed Grace. "We appreciate the efforts and dedication of all of our partners involved in this case and will continue to work with the Department of Justice and others to punish these criminals to the fullest extent of the law."
Zhou was identified as part of “Operation Crash,” a nationwide crackdown by federal, state and local law enforcement agencies against those who engage in illegal trafficking of rhinoceros horns. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. As of November 2015, Operation Crash has resulted in the prosecution and sentencing of nearly 32 subjects and recovery of approximately $5.6 million through forfeiture and restitution.
Since 1976, trade in rhinoceros horns has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 180 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. All species of rhinoceros are protected under the federal Endangered Species Act are protected under United States and international law.
The investigation was led by the Justice Department’s Environmental Crimes Section and the U.S. Fishery and Wildlife Service’s Office of Law Enforcement. The attorneys prosecuting the case were Lauren D. Steele and Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
Lewiston Man Sentenced to over 15 Years on Interstate Robbery and Gun ChargesRead the Press Release
Portland, Maine: Acting United States Richard W. Murphy announced that Victor Lara Jr, 33, of Lewiston, Maine was sentenced on Friday in U.S. District Court by Judge Jon D. Levy to 184 months in prison and five years of supervised release for interstate robbery conspiracy and using a firearm during a crime of violence. The defendant was convicted following a jury trial on September 12, 2016.
Court records and trial evidence revealed that on August 2, 2014, at about 11:00 p.m., the defendant, armed with a crowbar, and associates, armed with firearms, broke into a residence on the Garfield Road in Minot, Maine intending to steal drugs and money from its occupants. The defendant used the crowbar to repeatedly assault the occupants and encouraged his associates to shoot them.
The investigation was conducted by the Maine State Police; the Lewiston and Auburn Police Departments; the U.S. Drug Enforcement Administration; and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Lawrence Man Sentenced for Heroin DistributionRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for distributing heroin.
Jose Antonio Rosario, 40, was sentenced by U.S. District Court Judge Indira Talwani to 22 months in prison and three years of supervised release. In May 2017, Rosario pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute heroin and fentanyl.
From about April 2015 to March 2016, federal law enforcement investigated the drug distribution activities of Ramon Baez, a Dominican national based in Lawrence, and his associates. Rosario supplied Baez with approximately 100 grams of heroin, which Baez then repackaged for distribution.
On June 16, 2017, Baez was sentenced to 121 months in prison and five years of supervised release. He will be subject to deportation proceedings following the completion of his sentence.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Assistant U.S. Attorney Katherine Ferguson of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Las Cruces Man Facing Federal Charge for Using Interstate Communications to Threaten Las Cruces StudentsRead the Press Release
ALBUQUERQUE –Michael Anthony Estrada, 23, of Las Cruces, N.M., made his initial appearance today in federal court on a criminal complaint charging him with using interstate communications to threaten the lives and safety of children at a Las Cruces public elementary school. Estrada remains in custody pending a preliminary hearing and a detention hearing, both of which are currently scheduled for Sept. 21, 2017.
Estrada was arrested on Sept. 15, 2017, for allegedly using social media platforms to post threats to shoot children at a Las Cruces public elementary school. According to the complaint, the threats allegedly posted by Estrada led local schools in Las Cruces to shelter students in place and shut down operations until Estrada was apprehended.
If convicted of the charges in the criminal complaint, Estrada faces a statutory maximum penalty of five years in prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Las Cruces Police Department. Assistant U.S. Attorney Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Kentucky Man Pleads Guilty to Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kentucky man pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine after law enforcement officers in Lafayette County, Mo., found more than 4 kilograms of methamphetamine hidden in his vehicle.
Kenneth W. Dowell, 48, of Waynesburg, Ken., pleaded guilty before U.S. District Judge Brian C. Wimes to the charge contained in a June 10, 2015, federal indictment. Dowell remains in federal custody pending his sentencing hearing, which has not yet been scheduled.
Dowell was the passenger in a 2004 Toyota 4Runner stopped near the H Highway exit ramp on Interstate 70 by a Lafayette County sheriff’s deputy for traffic violations on May 19, 2015. The deputy noted that Dowell and the driver of the vehicle appeared to be nervous and provided conflicting information when questioned separately.
When the driver declined to consent to a search of the vehicle, the deputy requested that a K-9 officer from the Higginsville, Mo., police department respond to conduct a K-9 sniff of the exterior of the vehicle. The K-9 gave a positive alert, indicating the presence of a controlled substance. Officers examined a spare tire that was located under a blanket and found 10 gallon-sized plastic bags that contained a total of 4,458 grams of methamphetamine inside a blue bag in the tire. Officers also found 3.4 grams of methamphetamine in a cigarette box in Dowell’s jacket.
Officers located a rubber-banded bundle of $100 bills totaling $2,900 under the front passenger seat. Wilson also had $1,622 in his possession.
Under federal statutes, Dowell is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life 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. Attorney Alison D. Dunning. It was investigated by the Lafayette County, Mo., Sheriff’s Department and the Drug Enforcement Administration.
Justice Department Secures $907,000 from Citifinancial for Illegally Repossessing Active Duty Servicemembers’ VehiclesRead the Press Release
The Justice Department announced today that CitiFinancial Credit Company, as successor to CitiFinancial Auto Corporation, has agreed to pay $907,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing 164 cars owned by SCRA protected servicemembers without first obtaining the required court orders. During the investigation, the Department learned that CitiFinancial conducted repossessions without court orders even when CitiFinancial had evidence in its own records suggesting that a borrower could be a protected servicemember. In several cases, loan servicing notes indicated that CitiFinancial was informed that the borrower was in military service or had received orders to report for military service. CitiFinancial, nevertheless, continued repossession efforts and eventually succeeded in repossessing the servicemembers’ vehicles.
“Members of our armed forces make extraordinary sacrifices in order to protect and defend our nation, and they should be able to serve actively without fear that their legal rights will be violated,” said Associate Attorney General Rachel L. Brand. “This settlement provides financial relief and credit repair assistance to the servicemembers whose vehicles were repossessed by CitiFinancial. The enforcement of federal laws protecting current members of the Armed Services, veterans, and their families continues to be an important priority for this Department of Justice.”
“The men and women who serve in the armed forces deserve to have us protect their backs while they selflessly protect us,” said U.S. Attorney John Parker. “This conduct clearly fell short of that and I'm grateful we were able to repair some of that harm.”
This settlement resolves a suit filed by the department in the Northern District of Texas and covers vehicle repossessions that occurred between 2007 and 2010. CitiFinancial Auto Corporation originated and serviced these auto loans until 2010, when operations and assets were sold to Santander Consumer USA, Inc. In February 2015, the Department entered a settlement with Santander that provides servicemembers with more than $10.5 million in compensation for repossessions that violated the SCRA. As part of the investigation of Santander’s repossession practices, the Department learned that CitiFinancial sold Santander the right to collect debts owed by servicemembers after their cars had been repossessed by CitiFinancial in violation of the SCRA.
The SCRA protects servicemembers against certain civil proceedings, including vehicle repossessions, affecting their legal rights during active military service. The SCRA requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may then delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing vehicles owned by protected servicemembers, CitiFinancial prevented servicemembers from obtaining a court review of whether these repossessions should be delayed or adjusted to account for their military service.
This agreement further compensates servicemembers for their losses by requiring CitiFinancial to pay $5,000 to each impacted servicemember, in addition to the Santander settlement. CitiFinancial must also pay $10,000 to one affected servicemember who did not receive partial compensation through the Santander settlement. In addition, CitiFinancial will pay $500 per account to compensate borrowers for any lost equity, with interest, and must take steps to repair the credit of all affected servicemembers. An independent settlement administrator will contact servicemembers in the coming months to finalize individual settlements at no cost to the servicemembers.
The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the division has secured more than $450 million in monetary relief for servicemembers whose SCRA rights have been violated. The SCRA provides protections for active duty servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov. Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/content/locator.php.
Hyannis Man Sentenced for Drugs, Money Laundering, and Firearm OffensesRead the Press Release
BOSTON – A leader of the Cape Cod-based Nauti-Block gang was sentenced today in federal court in Boston for trafficking large quantities of heroin and cocaine, a firearm offense, and laundering approximately $200,000 in drug proceeds.
Christopher Wilkins, 29, of Hyannis, was sentenced by U.S. District Court Chief Judge Patti B. Saris to nine years in prison and four years of supervised release. In May 2017, Wilkins pleaded guilty to nine counts of possession of heroin with the intent to distribute and distribution of heroin; one count of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin; one count of conspiracy to distribute and possess with intent to distribute cocaine; one count of possession of cocaine with the intent to distribute; one count of conspiracy to possess a firearm in furtherance of a drug trafficking crime; and one count of conspiracy to launder monetary instruments.
Wilkins is one of three leaders of the Nauti-Block gang that operated on Cape Cod from approximately 2010 until early 2015. Wilkins, Denzel Chisholm, and Christian Chapman were responsible for multiple kilograms’ worth of heroin distributed on Cape Cod. Wilkins distributed heroin to other drug dealers and to heroin users on nearly a daily basis.
In addition, on March 7, 2016, Wilkins attempted to obtain a firearm from a co-defendant in exchange for 10 grams of heroin. The firearm was recovered before it could be passed to Wilkins. Wilkins also laundered over $200,000 in narcotics proceeds by depositing the drug money into bank accounts set up in his wife’s name, thereby concealing the origin and source of the funds.
On Sept. 15, 2017, Chisholm was sentenced to 342 months in prison; and on July 12, 2017, Chapman was sentenced to eight years in prison.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the cases.