Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
31 October 2017
District Court Enters Permanent Injunction Against Philips North America and Two Executives to Limit Distribution of Adulterated External DefibrillatorsRead the Press Release
A federal court enjoined Philips North America LLC (Philips) and two of the company’s executives from distributing certain medical devices, including some of the company’s external defibrillators, until the company takes remedial steps, the Department of Justice announced today.
The U.S. District Court for the District of Massachusetts entered a consent decree of permanent injunction against Philips, headquartered in Andover, Massachusetts, and two of the company’s executives, Carla Kriwet and Ojas Buch. Ms. Kriwet is the business group leader for the Patient Care and Monitoring Solutions (PCMS) business group within Philips. Mr. Buch is Vice President, Head of Quality and Regulatory for the PCMS business group. With limited exceptions, the consent decree permanently enjoins the defendants from distributing certain medical devices until remedial steps are undertaken.
“The Department of Justice is committed to protecting consumers and patients by ensuring that medical device manufacturers comply with the law,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When a company fails to comply with legally required manufacturing standards, patients may be put at risk. The Department of Justice is committed to working with FDA to prevent these violations.”
The Department filed a complaint in the District of Massachusetts on Oct. 11, at the request of the U.S. Food and Drug Administration (FDA). As alleged in the complaint, FDA inspected Philips’ Bothell, Washington, facility in 2015. The inspection revealed that company had failed to establish and maintain adequate procedures for implementing corrective and preventive action as required by federal regulation. Specifically, the complaint alleged that while Philips initiated corrective and preventive action in response to complaints involving certain resistor failures during the use of the HeartStart HS1 and FRx defibrillators, Philips’ corrective actions did not fully address the problem with the devices in the field and Philips continued to receive complaints about the failure.
The complaint also alleged that another 2015 inspection by FDA at Philips’ Andover, Massachusetts, facility revealed the company’s failure to establish and maintain adequate procedures for implementing corrective and preventive action in connection with the company’s Q-CPR meter (a device that provides feedback on chest compressions during cardiopulmonary resuscitation), and for design verification in connection with a change to a battery used in the Heartstart MRx defibrillator.
The permanent injunction enjoins defendants, with limited exceptions, from manufacturing or distributing certain Emergency Care & Resuscitation devices until it can demonstrate that it has undertaken required remedial measures. The injunction also orders Philips to issue notifications with respect to its Q-CPR meters, and external defibrillators manufactured with a specific resistor. For the external defibrillators covered by the notice and still under warranty, Philips will provide a refurbished exchange unit at no cost; if the device is no longer under warranty, customers may be eligible for a trade-in rebate. Furthermore, the injunction requires Philips to take specific steps with respect to the company’s other PCMS business units at its Andover and Bothell facilities. Those steps include hiring an expert consultant to inspect these business units to ensure, among other things, that the methods and controls used to manufacture and distribute Philips’ PCMS devices comply with the federal Food, Drug, and Cosmetic Act and its implementing regulations.
“Manufacturing medical devices in violation of current good manufacturing practice is conduct that cannot be tolerated. This decree ensures that Philips will reform its practices and comply with the law,” said Acting U.S. Attorney William D. Weinreb, District of Massachusetts.
“AEDs are life-saving tools and are designed to be used by the general public or professionals in an emergency,” said Melinda Plaisier, FDA Associate Commissioner for Regulatory Affairs. “People rely on these devices to work when needed. By not adequately addressing corrective and preventative actions with their AEDs in a timely manner, Philips distributed adulterated products that put people at risk.”
The government is represented by Trial Attorney Alexander Sverdlov of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney George Henderson of the U.S. Attorney’s Office for the District of Massachusetts, with the assistance of Associate Chief Counsel Jennifer Kang of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Massachusetts, visit its website at https://www.justice.gov/usao-ma.
Des Moines Man Sentenced to 40 Months in Prison for Possession of Child PornographyRead the Press Release
DES MOINES, Iowa – On October 23, 2017, Chief United States District Court Judge A. Jarvey sentenced Carlton Wayne Jones, 39, of Des Moines, Iowa, to 40 months in prison for possession of child pornography, announced United States Attorney Marc Krickbaum. Jones was also ordered to serve 20 years of supervised release following imprisonment and to pay $100 to the Crime Victims’ Fund.
Jones pled guilty to the charge. As part of his plea, Jones admitted he knowingly possessed numerous computer files that contained visual depictions between January 31, 2016, and approximately February 4, 2016. He also knew that the visual depictions were of minors, including prepubescent minors, engaging in sexually explicit conduct; and, the computer files containing the visual depictions were produced using materials that had been mailed, shipped, and transported in interstate or foreign commerce. Jones possessed these visual depictions in the Southern District of Iowa.
This matter was investigated by the Iowa Department of Public Safety’s Division of Criminal Investigations and its Internet Crimes Against Children Task Force, and the Federal Bureau of Investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the 24-hour Iowa Sexual Abuse Hotline at 1-800-284-7821.
The National Center for Missing and Exploited Children (NCMEC) also operates a Cyber Tip line at www.cybertipline.com that allows parents and children to report child pornography and other incidents of sexual exploitation of children by submitting an online form. The NCMEC also maintains a 24-hour hotline at 1-800-THE-LOST, and a website at www.missingkids.com.
Complaints received by the NCMEC that indicate a violation of federal law are referred to the FBI for appropriate action. The FBI can also accept tips at 1800-CALL FBI.
-END-
Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Defendants Sentenced for Capturing and Restraining Endangered Key DeerRead the Press Release
Two South Florida residents who captured and restrained three Florida Key deer on Big Pine Key were sentenced today in federal court in Key West for violations of the Endangered Species Act, Title 16, United States Code, Sections 1538(a)(1(B), 1540(b)(1) and Title 18, United States Code, Section 2.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service, Office of Law Enforcement, Miami Field Office, and Major Alfredo Escanio, Regional Commander, Florida Fish & Wildlife Conservation Commission, Southeast Region Bravo, made the announcement.
The defendants, Erik Damas Acosta, 18, of Miami Gardens, and Tumani A. Younge, 23, of Tamarac, previously pled guilty for their involvement in the July 2, 2017 incident on Big Pine Key in Monroe County, Florida. United States District Judge Jose E. Martinez sentenced Acosta to a total term of one year in jail on the counts of conviction, followed by two years of supervised release, and ordered him to perform 200 hours of community service. Younge was sentenced to time already served, placed on 180 days of home confinement subject to electronic monitoring, given a term of supervised release of two years, and ordered to perform 200 hours of community service. The Court further found that neither defendant could pay a criminal fine.
According to court records, including a Joint Factual Statement signed by the defendants, they used food to lure the three deer to them and then captured the deer. The defendants trussed up the deer and then placed them in their vehicle. They further admitted that their actions resulted in injury to an adult male Key deer. That animal, which suffered a fractured leg among other injuries, had to be euthanized by authorities.
After departing the Big Pine Key area in their car, southbound on the Overseas Highway, the defendants were stopped as a result of a traffic infraction and the three deer found in the vehicle – the adult male in the trunk, and a juvenile male along with a doe, confined in the back seat of the car.
The Endangered Species Act (“ESA”), Title 16, United States Code, Sections 1531 et seq., was enacted by Congress to conserve endangered and threatened species and the ecosystems upon which they depend. The term “endangered species” means any species, or part thereof, which is in danger of extinction throughout all or a significant portion of its range. Title 16, United States Code, Section 1532(6). The Florida Key deer (Odocoileus virginianus clavium), is included within the list of designated endangered species, set forth in Title 50, Code of Federal Regulations, Section 17.21(c)(1).
Mr. Greenberg commended the investigative efforts the U.S. Fish & Wildlife Service, Florida Fish & Wildlife Conservation Commission, Monroe County Sherriff’s Department, National Fish & Wildlife Service Forensics Laboratory in Ashland, Oregon, and the Monroe County State’s Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
Defendant had Court-Appointed Attorney While Buying a $76,000 CarRead the Press Release
WICHITA, KAN. - A federal judge Tuesday ordered a Wichita man to pay the government back for his court-appointed attorney, U.S. Attorney Tom Beall said.
Antoine Beasley was sentenced earlier this month to 63 months in federal prison on gun and drug charges. After his indictment in April 2014, Beasley declared himself indigent and he was assigned a court-appointed attorney.
After sentencing, the court learned that while the case was pending Beasley purchased a $76,715 2015 Audi A7 3.0T Quattro. On his credit application, he said he had a monthly income of $10,000, not counting his wife’s income. Beasley made payments by going to Dillions with cash and buying money orders made out to his lender.
On Tuesday, U.S. District Judge J. Thomas Marten ordered Beasley to pay $34,640 to the federal treasury – the amount Beasley paid on the Audi.
Beall commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Michelle Jacobs for their work on the case.
Colorado Man Pleads Guilty to Robbing the Same Bank TwiceRead the Press Release
Montgomery, Alabama – Richard Allen Evans (50), of Arvada, Colorado, pled guilty on Friday, October 27, 2017, to bank robbery, announced Louis V. Franklin, Sr., United States Attorney for the Middle District of Alabama.
On the morning of June 14, 2017, Evans entered the BBVA Compass Bank located at 3508 Eastdale Circle, in Montgomery, Alabama. He approached a bank teller and repeatedly demanded that she turn over all of the money in her bank drawer. The teller complied out of fear for her life and gave Evans more than $1,900 in cash from the drawer. Evans then fled the scene and drove to Florida where he was arrested the following day.
Court records show that this was not the first time Evans has robbed the BBVA Compass Bank on Eastdale Circle. Approximately ten years ago, Evans was convicted of robbing the same bank on October 18, 2006. Evans was sentenced to over ten years of incarceration for that and six other bank robberies. He was still on supervised release for those prior convictions at the time he committed the June 14th bank robbery.
Evans will be sentenced in the next few months and is facing up to twenty years in federal prison for the new bank robbery, as well as two additional years for violating his supervised release.
U.S. Attorney Franklin would like to thank the Federal Bureau of Investigation (FBI) and the Montgomery Police Department (MPD) for investigating this case. The Suwanee County Sheriff’s Office (Florida) and the U.S. Marshals Service assisted with this investigation. This case is being prosecuted by Assistant United States Attorney Bradley Bodiford.
Choctaw Woman Found Guilty of Assault with a Deadly WeaponRead the Press Release
Jackson, Miss – Ida Mae Sam, 56, a member of the Mississippi Band of Choctaw Indians, was found guilty in U.S. District Court today on two counts of assault with a deadly weapon in the Pearl River Community of the Choctaw Indian reservation, announced U.S. Attorney Mike Hurst and FBI Special Agent in Charge Christopher Freeze.
A jury returned the guilty verdict against Sam for assaulting another Choctaw member with a deadly weapon (a knife) on April 25, 2015, causing three separate stab wounds to the right forearm of the victim.
Sam will be sentenced by U.S. District Judge David C. Bramlette, III, on January 9, 2017, at 10:00 a.m. and faces a maximum penalty of twenty years in federal prison and a $500,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. It was prosecuted by Assistant United States Attorneys Erin Chalk and Keesha Middleton.
Child Porn Investigation Led from Germany to KansasRead the Press Release
KANSAS CITY, KAN. - A Kansas man was sentenced to federal prison Tuesday as a result of a child pornography investigation that began in Germany, U.S. Attorney Tom Beall said.
Noah T. Martin, 31, Lawrence, Kan., was sentenced to 97 months in federal prison. He pleaded guilty to two counts of possession and distribution of child pornography.
The investigation began when Baden-Wurttemberg Police compiled a list that included 155 users in the United States who used a peer-to-peer network to download a video of a 5- to 7-year-old girl being sexually abused. Homeland Security Investigations used the information to track follow a trail to Martin’s residence in Lawrence. Investigators found 1,560 images and 202 videos containing child pornography on Martin’s computer.
Beall commended the German police, Homeland Security Investigations and Assistant U.S. Attorney Kim Flannigan for their work on the case.
California Woman Charged with Defrauding the United StatesRead the Press Release
Mary Craig Williams, 71, of Fresno, California was charged today by Indictment with major fraud against the United States announced Acting United States Attorney Louis D. Lappen. According to the charges, Williams requested payments under a government contract for costs that Williams’s company had not actually incurred.
If convicted the defendant faces a maximum possible sentence of 10 years’ imprisonment, a 3 year period of supervised release, a $5,000,000 fine, and a $100 special assessment.
The case was investigated by the Department of Veterans Affairs--Office of the Inspector General and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Joan E. Burnes.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
California Man Sentenced to Ten Years for Violating Federal Firearms and Drug Trafficking Laws in New MexicoRead the Press Release
ALBUQUERQUE – Miguel Angel Arias, 26, of Oxnard, Calif., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison for violating the federal firearms and drug trafficking laws. Arias will be on supervised release for five years after completing his prison sentence.
Arias and co-defendant Marco Antonio Valero, 54, also of Oxnard, Calif., were arrested in Jan. 2017, and were charged by criminal complaint with methamphetamine trafficking and federal firearms offenses on Jan. 26, 2017, in Hidalgo County, N.M. According to the criminal complaint, Special Agents of Homeland Security Investigations and officers of the Lordsburg Police Department arrested Arias and Valero after finding eight bundles of methamphetamine weighing approximately 4.2 kilograms (9.26 pounds) and a firearm and ammunition in the defendants’ vehicle during a traffic stop in Lordsburg, N.M.
Arias and Valero subsequently were charged on April 19, 2017, in a five-count indictment with participating in a methamphetamine trafficking conspiracy between Jan. 21, 2017 and Jan. 27, 2017. The indictment also charged Arias with possessing methamphetamine with intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm and ammunition, and Valero with possessing methamphetamine with intent to distribute. At the time, Arias was prohibited from possessing firearms or ammunition because he previously had been convicted on a marijuana trafficking charge.
On June 30, 2017, Arias pled guilty to conspiracy, possession of methamphetamine with intent to distribute, and being a felon in possession of a firearm. In entering the guilty plea, Arias admitted that on Jan. 26, 2017, law enforcement officers found methamphetamine concealed in his vehicle when he was stopped in Lordsburg for speeding and following too closely. Arias also admitted possessing a handgun, which was located under the driver seat of his vehicle, despite the fact that he was prohibited from possessing firearms or ammunition because of his previous felony conviction.
On June 7, 2017, Valero pled guilty to possessing methamphetamine with intent to distribute, and admitted possessing the methamphetamine, which was concealed in the vehicle in which he was a passenger on Jan. 26, 2017. Valero was sentenced on Oct. 24, 2017, to 63 months in prison followed by three years of supervised release.
This case was investigated by Homeland Security Investigations and the Lordsburg Police Department, and was prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Buffalo Woman Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jennifer Courton, 30, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and to distribute fentanyl, before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between July 2013 and May 2015, Brandon Coburn, a licensed nurse practitioner who was legally authorized to prescribe controlled substances, provided fraudulent prescriptions for fentanyl, oxycodone, oxymorphone, and amphetamine to nine co-defendants, including Courton. Those prescriptions were not used for legitimate medical purposes and instead were filled by the co-defendants and sold on the street in the Buffalo area. In addition to filling the illegal prescriptions, Courton also recruited other co-defendants to fill prescriptions written by Coburn. In addition, some of the sales of the illegal narcotics were made from Courton’s Vermont Street residence in Buffalo.
To date, nine defendants charged in this investigation have been convicted. Charges are pending against Calvin Elston. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division.
Courton is scheduled to be sentenced on February 21, 2018, at 1:00 p.m. before Judge Arcara.
Broussard man sentenced to 12.5 years in prison for receiving child pornographyRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Broussard man was sentenced Monday to 150 months in prison for receiving child pornography using his computer.
Frederic Woodruff French, 70, of Broussard, La., was sentenced by U.S. District Judge Dee D. Drell on one count of receiving child pornography. He was also sentenced to five years of supervised release and must register as a sex offender. According to the June 28, 2017 guilty plea, French dropped off his laptop on August 14, 2014 to a computer repair technician to transfer data to a new computer. While transferring the data, the technician noticed images of child pornography on the computer. The technician called law enforcement agents who examined the laptop and found the images. They also found online chat logs where French discussed paying a woman in the Philippines to produce images of child pornography using her young prepubescent children. Based upon the on-line chats between French and the woman, French agreed to send money to the woman in return for her taking sexually explicit images of her children and sending them to French. He also discussed traveling to the Philippines to engage in sexual acts with the young children.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Homeland Security Investigations and the Lafayette Police Department conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
Boise Man Sentenced to 15 Years in Prison for Receipt of Child PornographyRead the Press Release
BOISE – Travis L. Spradlin, 38, of Boise was sentenced yesterday in United States District Court to 180 months in prison followed by 8 years of supervised release for receipt of child pornography, U.S. Attorney Bart M. Davis announced.
According to the plea agreement, in September 2015, agents with Homeland Security Investigations (HSI) received information that an individual using a Yahoo account from a residence in Boise had sent and received images of child pornography via e-mail, and had accessed a Russian photo-sharing website to obtain child pornography. HSI agents served a search warrant at the residence, where Spradlin lived. They seized a cell phone, a computer, and an external hard drive, all belonging to Spradlin.
A certified forensic examiner with HSI examined the electronic devices, and discovered over 6,000 images and 200 videos containing child pornography. The National Center for Missing and Exploited Children (NCMEC) subsequently identified 1,759 images and 70 videos as containing identifiable victims of sexual abuse, including victims from at least 150 known series of child pornography. The images included prepubescent minors and depictions of sadistic and masochistic conduct.
The examination of Spradlin’s cell phone also revealed evidence that he had communicated with at least two minor females from other states, and requested sexually explicit images from them. Agents discovered Spradlin received 274 images and 29 videos from one of the minors that depicted the minor engaged in sexually explicit conduct.
Chief U.S. District Judge B. Lynn Winmill also ordered Spradlin to forfeit the computer and electronic storage devices used in the commission of the charged offense, and to pay restitution to victims depicted in the images he possessed. Judge Winmill ordered the restitution amount to be determined at later date. As a result of his conviction, Spradlin will be required to register as a sex offender.
“Predators who view pornographic images of children fuel the disturbing actions of like-minded criminals who create the illegal content. Both rob the innocence of their victims and leave permanent scars that can never be entirely healed,” said Brad Bench, special agent in charge of Homeland Security Investigations (HSI) Seattle. “This sentence is a testament to the dedication of the HSI special agents and our law enforcement partners who work tirelessly to bring these pedophiles out of the shadows to ensure they receive the judgment they deserve.”
The case was investigated by Homeland Security Investigations. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Armed Robber Sentenced to 33 Years in PrisonRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 33 years in prison for conspiring to rob five Tidewater businesses at gun-point.
Olandjuwan Beale, 21, pleaded guilty to conspiracy to interfere with commerce by robbery, and two counts of possession, use and brandishing a firearm in crime of violence on August 3. According to court documents, Beale and two co-defendants planned and executed five commercial robberies in Newport News and Hampton, using firearms in each, over a 10-hour period on March 6, robbing a Newport News 7-Eleven, 1st Stop Mart, Luckie’s Convenience Store and Mary’s Deli and Convenience Store, as well as a 1st Stop Mart in Hampton. In each robbery, Beale approached the clerks and ordered them to provide cash. By the last robbery in Hampton, Beale also robbed customers in the store. Beale was arrested after a concerned citizen photographed the license plate of the vehicle the men used to flee the final robbery and forwarded the information to the Hampton Police Division.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Thomas L. Chittum, III, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Terry L. Sult, Chief of Hampton Police Division, and Michael C. Grinstead, Acting Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-50.
Aggravated Felon Pleads Guilty to Reentering the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Davor Goncin, 69, of Croatia, pleaded guilty to attempting to reenter the United States after a conviction for an aggravated felony, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that on July 9, 2017, the defendant attempted to cross into the United States from Canada at the Rainbow Bridge. Standard database checks revealed that Goncin was an aggravated felon. In March 2013, the defendant was convicted of grand larceny in New York County and sentenced to 3-6 years in prison. After serving his sentence, the defendant was deported from the United States and banned for life.
The plea is the result of an investigation by United States Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for February 16, 2018, at 1:00 p.m. before Judge Arcara.
48th Defendant Sentenced on Federal Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 80 of the 103 defendants charged as the result of this investigation have entered guilty pleas and 48 of them have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Today, Margarito Ruiz, 36, was sentenced in federal court to 120 months in prison followed by four years of supervised release for distributing methamphetamine.
Ruiz was arrested in Jan. 2017, on an indictment charging him with distributing methamphetamine on May 23, 2016, and with being a felon in possession of a firearm on May 25, 2016. In May 2016, Ruiz was prohibited from possessing firearms or ammunition because of his prior felony convictions for possession of a controlled substance and shoplifting. According to the indictment, Ruiz committed the offenses in Bernalillo County, N.M. On July 6, 2017, Ruiz pled guilty to a methamphetamine trafficking charge, and admitted that on May 23, 2016, he distributed approximately two ounces of methamphetamine to an undercover law enforcement agent.
Twenty of the defendants charged as the result of the ATF investigation have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. Two defendants are fugitives and the charges against two defendants have been dismissed.
This case was investigated by the Albuquerque office of ATF and was prosecuted by Assistant U.S. Attorney Eva Fontanez.
10th Street Gang Member Sentenced to Life in Prison for Murder, Racketeering and Narcotics TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—Acting U.S. James P. Kennedy, Jr. announced today that Matthew Smith, 31, of Buffalo, NY, who was convicted following a seven week jury trial of Racketeering Influenced Corrupt Organizations conspiracy, Murder in Aid of Racketeering and related offenses, was sentenced to life in prison plus five years by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Joseph M. Tripi, who handled the prosecution of the case, stated that the defendant was a member of the 10th Street Gang which was responsible for multiple acts of violence and the trafficking of various controlled substances on Buffalo’s West Side. Specifically, Smith, directly or by helping his fellow gang members, participated in the murders of Brandon McDonald and Darinell Young and the attempted murders of six others.
“Today’s sentence should send a message to those who view violence, drug dealing, and gang membership as the way to a better life,” said Acting U.S. Attorney Kennedy. “That message—as we have witnessed first-hand on Buffalo’s West Side—is that a better life does indeed lay ahead for the law-abiding people who will remain in your community after you are arrested, tried, convicted, and permanently removed from it. I commend AUSA Tripi and the rest of his dedicated team who worked tirelessly for years to bring this highly impactful and successful prosecution. As a result of it, both the decent and law-abiding citizens of our City as well as the defendant will have the opportunity to live out their lives in precisely the type of community that each deserves.”
The defendant was a member of the 10th Street Gang between 2000 and 2012 and participated in other acts of violence including assault, drug distribution and possession of firearms. Smith is one of 44 10th Street Gang members and associates charged and convicted in this case.
Today’s sentencing is the culmination of an investigation on the part of Special Agents of the FBI Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; the New York State Police, under the direction of Major Edward Kennedy; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Ashan Benedict, New York Field Division.
30 October 2017
Wilkes-Barre Couple Charged with Bank Fraud and Mail TheftRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Mejia, age 20, and Niskauri DeJesus-Toribio, age 19, both of Wilkes-Barre, Pennsylvania, were indicted by a federal grand jury for conspiring to commit bank fraud and mail theft. The indictment was returned on August 29, 2017, but remained under seal until the defendants were apprehended on October 18, 2017.
According to United States Attorney Bruce D. Brandler, the indictment charges Mejia, and DeJesus-Toribio with conspiring to commit bank fraud between May 11, 2017 and August 23, 2017. The indictment also charges both defendants with mail theft on June 29, 2017. Mejia and DeJesus-Toribio allegedly stole mail from public receptacles in the Luzerne County and Carbon County, Pennsylvania regions, and deposited checks found in the stolen mail into bank accounts under their control. The defendants subsequently withdrew the stolen funds in cash.
The case was investigated by the United States Postal Inspection Service. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the most serious charges are up to 30 years of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Wichita Man Sentenced for Trafficking of 17-Year-Old for SexRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Monday to 187 months in federal prison for trafficking a 17-year-old girl for sex, U.S. Attorney Tom Beall said.
John H. Dickerson, 35, Wichita, Kan., pleaded guilty in August to one count of the sex trafficking of a minor and one count of unlawful possession of a firearm following a felony conviction.
A criminal complaint filed last year in U.S. District Court in Wichita said the case grew out of a human-trafficking enforcement operation conducted by the FBI and the Wichita Police Department. A Wichita police detective answered an advertisement on an adult services Web site. He arranged to meet a sex worker at a hotel in Wichita and to pay $200 for an hour of sex.
Dickerson dropped off a 17-year-old girl at the detective’s room. The girl and Dickerson were taken into custody. Investigators learned that that Dickerson had been paid several times to take the girl to meet customers.
Beall commended the Wichita Police Department, the FBI, the Internet Crimes Against Children Task Force and Assistant U.S. Attorney Jason Hart for their work on the case.
Virginia Man Pleads Guilty to Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Martin, 58, of Virginia Beach, Virginia, pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years and a $250,000 fine.
Assistant U.S. Attorneys MaryEllen Kresse and Elizabeth R. Moellering, who are handling the case, stated that in March 2013, the defendant, operating as Capital Source Lending, LLC, agreed to work with co-defendant Christopher Venti, operating as Viewpoint Solutions Group and Secured Strategies LLC, on a fraudulent investment scheme involving multiple victims.
Victims who were interested in obtaining funding were solicited by Christopher Venti, and others. The solicitations involved false promises of, among other things, access to “blocked” bank accounts that purportedly contained the funds victims sought. Victims were required to make advance payments into escrow in order to establish the “blocked” bank accounts in their names. Victims were falsely and fraudulently told that the “blocked” bank accounts would contain 10 times the amount of funds placed in escrow, and would be accessible to the victims in approximately 30 days. The advance payments were to be released from escrow by the victim upon the victim’s confirmation that the “blocked” bank account had been established in the victim’s name.
Victims were given letters on bank letterhead that purported to confirm the existence of the “blocked” bank accounts. In reality, the defendant Martin, Venti, and others knew that the bank letters were fraudulent, and that the confirmation process established in the escrow agreements signed by the victims, was fraudulent. Pre-arranged numbers victims were instructed to call directed them to others involved in the scheme who falsely represented to victims that they worked at the respective bank and that they could confirm the existence of the claimed “blocked” bank account.
Defendant Martin and Venti attempted to obtain $1,240,000 from six individuals, two of whom sent the defendant and Venti a total of $300,000. Martin also admitted his involvement in two other fraudulent schemes, both involving false representations that Martin could obtain funding for the victims through the alleged “monetizing” of a bank instrument. None of the defendant’s victims received the funds promised by the defendant.
Christopher Venti has been convicted for his involvement in this and other investment fraud schemes and is awaiting sentencing.
Today’s plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for February 27, 2018, at 4:00 p.m., before Judge Wolford.Utah Financial Advisor Pleads Guilty to Tax Evasion, Securities Fraud and Wire FraudRead the Press Release
SALT LAKE CITY – A St. George, Utah, financial advisor pleaded guilty Monday afternoon to his role in selling fraudulent tax-avoidance and investment strategies to his clients, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to documents and information provided to the court, Henry Brock, pleaded guilty to tax evasion, securities fraud and wire fraud. Brock founded a financial services company in 2009 and served as the president from 2009 through 2017. As President, he marketed and sold a fraudulent tax scheme, called “IRA Exit Strategy,” to potential investors. Brock promised investors that he could provide a way for them to avoid paying taxes on IRA withdrawals, which would otherwise be subject to Internal Revenue Service (IRS) penalties and taxes. To implement his scheme, Brock caused his business to issue tax forms to his clients falsely representing that they were investors in his business who incurred losses, which served to offset the clients’ tax liabilities. As a result, Brock caused clients to file fraudulent income tax returns claiming a total of approximately $3.8 million in bogus business losses and resulting in a tax loss of over $1.1 million.
During this period, Brock fraudulently raised more than $10.8 million in investments by making false representations to investors regarding the “IRA Exit Strategy,” the financial condition of his company and other matters. On at least one occasion, Brock also transferred $196,323 of a client’s investment funds and used the money for his own personal and business expenses.
Sentencing is scheduled for March 5, 2018, before U.S. District Court Judge Ted Stewart. Brock faces a statutory maximum sentence of five years in prison for tax evasion, 20 years in prison for securities fraud and 20 years in prison for wire fraud. He also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation and the Utah Division of Securities, who conducted the investigation, and AUSA Trina Higgins and Trial Attorney Matthew Hoffman of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Utah Financial Advisor Pleads Guilty to Tax Evasion, Securities Fraud and Wire FraudRead the Press Release
A St. George, Utah, financial advisor pleaded guilty today to his role in selling fraudulent tax-avoidance and investment strategies to his clients, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.
According to documents and information provided to the court, Henry Brock, pleaded guilty to tax evasion, securities fraud and wire fraud. Brock founded a financial services company in 2009 and served as the president from 2009 through 2017. As President, he marketed and sold a fraudulent tax scheme, called “IRA Exit Strategy,” to potential investors. Brock promised investors that he could provide a way for them to avoid paying taxes on IRA withdrawals, which would otherwise be subject to Internal Revenue Service (IRS) penalties and taxes. To implement his scheme, Brock caused his business to issue tax forms to his clients falsely representing that they were investors in his business who incurred losses, which served to offset the clients’ tax liabilities. As a result, Brock caused clients to file fraudulent income tax returns claiming a total of approximately $3.8 million in bogus business losses and resulting in a tax loss of over $1.1 million.
During this period, Brock fraudulently raised over $10.8 million in investments by making false representations to investors regarding the “IRA Exit Strategy,” the financial condition of his company and other matters. On at least one occasion, Brock also transferred $196,323 of a client’s investment funds and used the money for his own personal and business expenses.
Sentencing is scheduled for March 5, 2018 before U.S. District Court Judge Ted Stewart. Brock faces a statutory maximum sentence of five years in prison for tax evasion, 20 years in prison for securities fraud and 20 years in prison for wire fraud. He also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation and the Utah Division of Securities, who conducted the investigation, and AUSA Trina Higgins and Trial Attorney Matthew Hoffman of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Two Wooster men indicted for selling heroin and cocaine that resulted in fatal overdoseRead the Press Release
Two Wooster men were indicted for distributing heroin and cocaine that resulted in the fatal overdose of a Wayne County woman, law enforcement officials said.
Jamie Curtis, 36, and Theodore Alleman, 28, were both indicted on one count of distribution of heroin and cocaine. The charge carries a potential sentencing enhancement because the drugs they distributed resulted in a death.
Curtis is also charged with being a felon in possession of a firearm. Curtis had a Witness 9 mm firearm with an obliterated serial number, and ammunition, despite a prior felony conviction for drug trafficking in Wayne County Common Pleas Court.
Curtis sold heroin and cocaine to Alleman from June 2016 through January 2017, according to the indictment.
Alleman, on Nov. 12, 2016, contacted a Wayne County woman identified in the indictment as H.C. H.C. was a recovering drug addict. Alleman repeatedly attempted to persuade H.C. to inject heroin with him, but she refused, according to the indictment.
Alleman purchased drinks for H.C. throughout the evening at a local pub and continued to ask her to inject heroin with him. In the early morning hours of Nov. 13, H.C. agreed. Alleman went to an ATM to get money and texted Curtis “I need a g” (gram of heroin), according to the indictment.
A friend identified in the indictment as G.C. fought with Alleman and H.C. about getting heroin. C.G. was forcefully removed from the vehicle. Alleman and H.C. met with Curtis and purchased heroin and cocaine, according to the indictment.
On Nov. 13, Alleman prepared a mixture of heroin and cocaine that he and H.C. injected. H.C. then overdosed and died, according to the indictment.
“These men sold drugs that directly resulted in the death of a young woman,” Herdman said. “We will continue to seek long prison sentences for drug dealers who kill and injure our friends and neighbors.”
DEA Special Agent in Charge Timothy J. Plancon said: “Identifying and bringing to justice the individuals that distribute drugs that lead to overdose death is a top priority of DEA. Today’s charges send the message to all drug dealers that they will be held accountable for bringing that poison into the community, and their deadly results.”
“The continued collaborative efforts of the Medway Drug Task Force and the Cleveland DEA to investigate these opiate overdoses, truly sends a message to our community that people will be held accountable,” said MEDWAY Director Don Hall.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is prosecuted by Assistant U.S. Attorney Teresa Riley following an investigation by the DEA, ATF, MEDWAY Drug Enforcement Agency, Wooster Police Department, Wayne County Sheriff's Office, Wayne County Coroner's Office and Ohio BCI.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tonawanda Man Charged with Distribution and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Randy Rance, 56, of Tonawanda, NY, was arrested and charged by criminal complaint with distribution and possession of child pornography. The charges carry a minimum penalty of five years in prison, a maximum of 20 years and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that according to the complaint, in December 2016, the defendant distributed child pornography to an undercover investigator. In January 2017, the Town of Tonawanda Police Department seized Rance’s computer. Forensic examination determined that the defendant was in possession of hundreds of thousands of images of child pornography, some of which depicted prepubescent children less than 12 years of age.
The criminal complaint is the result of an investigation by the Town of Tonawanda Police Department under the direction of Chief Jerome Uschold, and the Federal Bureau of Investigation under the direction of Special Agent-in-Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Third Man Pleads Guilty in Fraud Scheme Targeting Buick DealershipRead the Press Release
ERIE, Pa. - A resident of Fairview, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, Acting United States Attorney Soo C. Song announced today.
Adam James Weaver, 41, of Fairview, Pennsylvania, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from in and around May 2015, to in and around March 2016, Weaver and two-defendants engaged in a scheme to defraud auto loans providers by utilizing two straw purchasers to buy vehicles in their own names from Rick Weaver Buick GMC. The three facilitated the scheme by falsifying the loan applications to make the straw purchasers appear more credit worthy and by not revealing that the straw purchasers were buying multiple vehicles at the same time. The value of many of the vehicles was also inflated to increase the funds received by the co-conspirators.
Judge Cercone scheduled sentencing for April 19, 2018 at 12:45 p.m. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Weaver on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Erie Police Department conducted the investigation that led to the prosecution of Weaver.
Texas Man Charged with Armed Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Justin Wade Lynch, age 44, of Texas, was indicted on October 24, 2017, by a federal grand jury for armed bank robbery. The case was unsealed on October 27, 2017.
According to United States Attorney Bruce D. Brandler, Lynch is charged with the October 30, 2012, robbery of Penn Security Bank & Trust in Peckville, Lackawanna County, Pennsylvania. The indictment alleges Lynch brandished a firearm during the robbery, and stole $12,470.
The case is being investigated by the Blakely Police Department, the Pennsylvania State Police, and the Federal Bureau of Investigation. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Criminal Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 25 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Tazewell Woman Sentenced on Federal Firearms ChargesRead the Press Release
Abingdon, VIRGINIA – A Tazewell woman, who illegally purchased and provided firearms to her son was sentenced last week in the United States District Court for the Western District of Virginia in Abingdon for a pair of federal charges, Acting United States Rick A. Mountcastle announced.
Glenna Elswick, 50, was sentenced last Friday to six months in prison. Previously, Elswick pleaded guilty to one count of making a false statement in connection with the acquisition of a firearm from a licensed dealer and one count of providing a firearm to a prohibited person.
According to evidence presented at a previous hearing by Assistant United States Attorney Zachary T. Lee, between October 2016 and February 2017, Elswick purchased at least seven firearms for her son, Matthew Elswick, who is prohibited from owning firearms due to his status as a previously convicted felon. In the process of purchasing the firearms, Elswick made false statements on ATF forms stating she was buying the firearms for her own use. The firearms included semi-automatic pistols and AR style semi-automatic rifles. Matthew Elswick’s previous convictions included burglary and arson and evidence at the sentencing demonstrated he had a long history of violence and involuntary commitments for mental health issues. Matthew Elswick was ultimately arrested with some of the firearms purchased by Glenna Elswick following an armed standoff with deputies of the Tazewell County Sheriff’s Office.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tazewell County Sheriff’s Office. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Tax Attorney for Ex-NFL Player Antrel Rolle Charged with Obstructing the IRS and Filing False Documents Without His Client’s KnowledgeRead the Press Release
LOS ANGELES – A tax attorney who represented retired professional football player Antrel Rolle surrendered this morning to federal authorities after being charged with fraudulently claiming refunds for Rolle, stealing those refunds, and then filing false documents with the Internal Revenue Service to cover up his scheme.
Hiram M. Martin, 69, a resident of the Northern California city of Fair Oaks, is scheduled to be arraigned this afternoon in United States District Court.
A federal grand jury returned an indictment on September 20 that charges Martin with attempting to obstruct and impede the administration of internal revenue laws and three counts of aiding and assisting in the preparation and presentation of false documents.
The indictment alleges that Martin submitted tax returns for Rolle that falsely claimed millions of dollars of charitable deductions and business expenses. As a result of these deductions, the IRS issued tax refunds of $322,008 for the 2005 tax year and $901,472 for the 2006 tax year. Martin allegedly directed the IRS to deposit the refunds into bank accounts he controlled or to mail the refunds to his address. He then used the money for his own personal benefit, according to the indictment.
After the IRS began auditing Rolle’s 2005 and 2006 tax returns, Martin submitted false documents to the IRS to conceal his fraud. For example, the indictment alleges that Martin sent the IRS false letters purporting to support the fraudulent deductions, and then, after the IRS rejected the deductions, petitions challenging the IRS’s assessments. Rolle’s signature was forged on some of the documents Martin used in the scheme.
Martin eventually agreed – without Rolle’s knowledge – to a judgment that imposed almost a $2 million tax liability against Rolle, according to the indictment. When Rolle learned of the judgment, he hired a new attorney, who was able to have the judgment set aside in 2015 because of Martin’s fraud on the Tax Court.
The indictment alleges that Martin acted without the knowledge, consent or authority of Rolle, who hired Martin when he was a 23-year-old rookie in the National Football League. Martin allegedly provided Rolle with a fabricated set of 2005 and 2006 tax returns that did not claim any refund – tax returns that were different from the returns that Martin actually filed with the IRS in Rolle’s name.
Martin is also accused of taking steps to ensure the IRS could not contact Rolle directly. For example, Martin allegedly provided the IRS with his own address and claimed it was Rolle’s address.
When the media reported in January 2010 that the IRS had issued tax liabilities against Rolle, Martin lied to Rolle and his family, falsely representing to them that the article was untrue, according to the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If Martin were to be convicted of the four counts in the indictment, he would face a statutory maximum sentence of 18 years in federal prison.
The case is being prosecuted by Assistant United States Attorney Ranee Katzenstein, the Chief Assistant for Trials, Integrity and Professionalism, and Assistant United States Attorney Alex Wyman of the General Crimes Section.
Taft Drug Trafficker Pleads Guilty to Drug ConspiracyRead the Press Release
FRESNO, Calif. —Mario Alvarez-Muniz, 49, a citizen of Mexico and former resident of Taft, entered a guilty plea today to conspiring to distribute and possess with intent to distribute heroin, cocaine, and methamphetamine, United States Attorney Phillip A. Talbert announced.
According to court documents, in December 2016, Alvarez-Muniz delivered two pounds of methamphetamine during an undercover operation, but subsequently left the United States for Mexico. He returned to the United States and in May of 2017, orchestrated a shipment of six kilograms of heroin and eleven kilograms of cocaine from Bakersfield to Chicago. The drugs were intercepted by law enforcement and the defendant was ultimately arrested.
Alvarez-Muniz was previously detained as a flight risk and danger to the community and is scheduled for sentencing on January 22, 2018. Alvarez-Muniz faces a mandatory minimum statutory penalty of 10 years in prison and a maximum penalty of life in prison, along with a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Darrell Leon Jennings, 49, a codefendant in the case, is currently a fugitive.
This case was the product of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation by the U.S. Drug Enforcement Administration, California Highway Patrol, Bakersfield Police Department, and Kern County Probation Office. The OCDETF Program is the centerpiece of the United States Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and related criminal enterprises. Assistant United States Attorney Karen Escobar is prosecuting the case.
Rochester Man Pleads Guilty to Charge Involving Synthetic CannabinoidsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Mohammed Akram, 29, of Rochester, NY, pleaded guilty to two counts of misbranding food before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of six years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between November 2014 and April 2015, the defendant managed Best in the West, a convenience store located at 670 Jay Street in Rochester. On April 14, 2015, search warrants were executed at that location and at the apartment above the store, where Akram lived. Officers recovered $67,847 in United States currency and approximately 1,900 packets of suspected synthetic cannabinoids.
The defendant traveled to New York City to purchase and transport bulk quantities of 3-5 ounce packages containing green vegetable matter to Rochester. The packages were labeled “G-20,” “Bizarro,” “Mardi Gras,” “G10 Potporri,” “Mr. Happy,” “WTF,” “VooDoo,” “Remarkable Herbs,” “MR SIN,” “Scooby Snax,” and “Mad Hatter.” The green vegetable matter was laced with chemicals that were not authorized by law for human consumption. The defendant, who claimed the packages were potpourri, offered the various packages of green vegetable matter for retail sale in the convenience store knowing that customers intended to ingest the green vegetable matter.
The plea is the culmination of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, New York, New York Field Division, and the New York State Police, under the direction of Major Richard Allen.
Sentencing is scheduled for January 29, 2017, before Judge Wolford.
Pettus Man Pleads Guilty to Online Solicitation of MinorsRead the Press Release
CORPUS CHRISTI, Texas - A 55-year-old resident of Pettus has admitted he attempted to meet two underage boys for the purpose of sex, announced Acting U.S. Attorney Abe Martinez.
Darrell Freeze appeared before U.S. Magistrate Judge Jason B. Libby and entered a guilty plea to one count of online solicitation of a minor.
Freeze was communicating with a person he believed was the mother of two minor children - ages 14 and 11. He made arrangements to meet and engage in sexual contact with the minors, but was apprehended as he arrived at the designated meeting place. Freeze admitted to authorities that he had sent messages indicating his intention to engage in sexual acts with the children. He was also in possession of condoms and candy he brought for the children.
Sentencing has been set for Feb. 28, 2018, before U.S. District Judge Nelva Gonzales Ramos. At that time, Freeze faces a minimum of 10 years and up to life in federal prison. He will remain in custody pending his sentencing hearing.
The FBI, Immigration and Customs Enforcement’s Homeland Security Investigations, Corpus Christi Police Department—Internet Crimes Against Children Task Force and the Nueces County District Attorney’s Office conducted the investigation as part of Operation Hidden Predator.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Pain Management Physician Convicted on Charges of Accepting Kickbacks and Submitting Fraudulent Bills for Anesthesia ServicesRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Baltimore, Maryland – On October 27, 2017, following a thirteen-day trial, a federal jury convicted Atif Babar Malik, age 48, of Germantown, Maryland, on 26 felony counts arising from two criminal schemes that involved referring patients’ urine toxicology specimens to a New Jersey diagnostic testing lab in return for $1.376 million in kickbacks and fraudulently billing for anesthesia services provided in connection with spinal nerve block injections. Malik was convicted on one count of conspiracy to violate the federal Anti-Kickback Act and the Travel Act; 12 counts of violating the Anti-Kickback Act; three counts of violating the Travel Act; six counts of health care fraud; and three counts of making false entries in patients’ medical records.
Malik’s convictions were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Special Agent in Charge Drew Grimm of the Office of Personnel Management – Office of Inspector General.
Malik was one of six defendants who were charged in connection with the kickback or fraudulent billing schemes. His practice co-owner and co-defendant Sandeep Sherlekar, age 52, of Germantown, Maryland, was also charged with participating in the referrals-for-kickbacks conspiracy and the fraudulent anesthesia billing scheme, as well as with making false entries in patients’ medical records. Following the return of the original indictment in late June 2016, Sherlekar committed suicide shortly before his scheduled initial appearance and arraignment in early October 2016.
Konstantin Bas, age 41, of Brooklyn, New York, the former owner and Chief Executive Officer of a Linden, New Jersey-based diagnostic testing lab known as Accu Reference; Mubtagha Shah Syed, age 50, of Jersey City, New Jersey, who worked as a marketer for Accu Reference; and Vic Wadhwa, 39, of Frederick, Maryland, the Chief Financial Officer (CFO) of Malik’s and Sherlekar’s medical practice, all previously pled guilty to charges of conspiring to violate the Anti-Kickback Act or to an individual charge of violating the Anti-Kickback Act, and are currently awaiting sentencing. Muhammad Ahmad Khan, age 44, the Chief Administrative Officer of Drs. Malik’s and Sherlekar’s practice, who was also charged in connection with the kickbacks and Travel Act conspiracy, is a fugitive and is believed to be in Pakistan.
Dr. Malik is a physician trained in pain management and Dr. Sherlekar was trained in both pain management and in anesthesiology. The two merged their pain management practices in February 2009 to create Advanced Pain Management Services, LLC (APMS), which initially had three offices in Maryland and one in New Jersey, but that later expanded to as many as ten offices. In August 2010, APMS began doing business under the name of American Spine Center, LLC (APMS/ASC). Khan was the CEO of APMS/ASC and co-conspirator Vic Wadhwa was its CFO.
APMS/ASC physicians periodically required patients who were prescribed controlled substances as pain relief medications to submit urine specimens for testing as means of monitoring the levels of pain medication or other narcotics in their bodies. According to evidence presented at trial, in the late winter of 2011, Accu Reference’s marketing agent Mubtagha Syed proposed to Khan and Wadhwa that APMS/ASC discontinue using its current testing lab and start referring its patients’ urine toxicology specimens to Accu Reference in return for the payment of kickbacks. After Drs. Malik and Sherlekar approved the plan, which also came to include back braces from another Bas-controlled company, APMS/ASC began submitting all of its patients’ urine specimens to Accu Reference in April 2011.
Starting in the late spring of 2011 and continuing through the end of July 2012, APMS/ASC each month referred between 700 to as many as 1,300 patient urine specimens to Accu Reference for testing in return for the payment of kickbacks. Accu Reference submitted claims for performing diagnostic tests on these specimens to Medicare and various private insurers for reimbursement, receiving in return approximately $4.4 million in payments. After deducting its overhead expenses on the testing, Accu Reference split its profits 50/50 with Khan, Wadhwa, Sherlekar, and Malik. (Syed also received a share of Accu Reference’s profits.) From the time the kickback payments commenced in June 2011 until the end of the scheme in August 2012, Bas caused his companies to pay kickbacks totaling $1.376 million to Sherlekar, Malik, Khan and Wadhwa. Khan and Wadhwa deceived Drs. Sherlekar and Malik about the full amount of the kickback payments Accu Reference was paying, however, and thus were able to retain more than 60% of the kickback payments for themselves. Drs. Sherlekar and Malik each received approximately $240,000 in kickback funds before the scheme came to an end in the late summer of 2012.
Among the services APMS/ASC provided to its patients were diagnostic or therapeutic nerve blocks and injections in connection with spinal conditions, which were often provided in conjunction with anesthesia. If two physicians were present during a surgical procedure, with one performing the surgical procedure and the other administering the anesthesia, then the anesthesiologist could bill separately for the anesthesia service. However, if a single surgeon or anesthesiologist was alone in the procedure room and administered the anesthesia while also performing the surgical procedure, then the anesthesia service could not be billed as a separate charge, but was instead treated as included within the fee established for the surgical procedure.
According to evidence presented by the government at trial, during the period from January 2010 through the summer of 2012, it was relatively common for only one physician at APMS/ASC to both perform the spinal injection and administer the anesthesia. In a number of these cases, APMS/ASC then submitted bills to Medicare and private insurers using a billing code that represented that two separate physicians had respectively provided the nerve block and the anesthesia, and as a result received a higher level of reimbursement. For example, evidence presented by prosecutors demonstrated that on January 3, 2012, a date when Dr. Sherlekar alone provided both spinal injections and anesthesia to a large number of patients at APMS/ASC’s Frederick office, he advised Dr. Malik by text that “I am using your name today as surgeon as we have 34 procedures here [in Frederick] and 20 in Waldorf,” to which Malik responded “ok,” although he was seeing patients at his office in Hackettstown, New Jersey that day, more than 200 miles from Frederick.
In addition to the kickback-related and health care fraud and false medical records charges that were at issue in this trial, the Court has severed out for a separate trial another count of the indictment that charged Drs. Malik and Sherlekar with conspiring to defraud the IRS by not reporting as income cash payments received by APMS/ASC, and by filing false corporate tax returns that overstated the practice’s expenses and understated its revenues. This count is currently scheduled to go to trial in February 2018.
Malik faces potential maximum sentences of 10 years in prison for each of his six health care fraud convictions; five years in prison for conspiring to violate the Anti-Kickback Act and the Travel Act; five years in prison for each of the three Travel Act convictions and for the three counts of making false statements on patients’ medical records; and two years in prison for each of his 12 convictions on charges of soliciting and receiving health-care related kickbacks. His actual sentencing range will be calculated using the Federal Sentencing Guidelines, however, and the Court will have a wide range of discretion in imposing sentence.
Acting United States Attorney Stephen M. Schenning commended the FBI; the Department of Health and Human Services – Office of the Inspector General (HHS-OIG); the IRS - Criminal Investigation Division; and the Defense Criminal Investigative Service and the Office of Personnel Management – Office of the Inspector General (OPM-OIG) for their work on the investigation. Mr. Schenning also thanked Assistant U.S. Attorneys Jefferson M. Gray and Sean R. Delaney, who led the investigation and tried the case against Dr. Malik.
Owner of Pittsburgh-Area Steel Erection Company Pleads Guilty to Conspiracy to Defraud the United States of More than $1,000,000 in Bridge SubcontractsRead the Press Release
PITTSBURGH – A resident of Eighty-Four, Pennsylvania, pleaded guilty in federal court to conspiracy to defraud the United States, Acting United States Attorney Soo C. Song announced today.
Donald R. Taylor, 78, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Taylor, the owner of Century Steel Erectors Co. (CSE), admitted that he conspired with Watson L. Maloy, Jr. to use Maloy’s company, W.M.C.C. Inc. (WMCC), as a “front” company to illegally obtain federally funded subcontracts on Pennsylvania Department of Transportation (PennDOT) and Pennsylvania Turnpike Commission (PTC) bridge projects. As part of his guilty plea, Taylor further admitted that the United States Department of Transportation (USDOT), through the Federal Highway Administration, required PennDOT and the PTC to implement USDOT’s disadvantage business enterprise (DBE) program, which was designed, among other things, to promote participation of minority-owned small businesses in federally funded projects. Because CSE was not a certified DBE subcontractor, Taylor and Maloy agreed that they would use WMCC as a means to obtain DBE-eligible bridge subcontracts. Contrary to DBE requirements, however, Taylor admitted that CSE employees, acting at his direction, actually identified, bid, negotiated, and performed the work on DBE-eligible subcontracts. As a means to conceal CSE’s role in handling contracts awarded to WMCC, Taylor admitted that CSE employees used a WMCC email account and phone line, used magneticWMCC signs to cover the CSE logo on CSE vehicles at job sites, possessed WMCC business cards, and held themselves out as WMCC employees in dealings with general contractors and PennDOT and PTC officials. As a result, Taylor admitted that WMCC and CSE fraudulently obtained nine PennDOT subcontracts between approximately January 2012 and February 2014, resulting in payments to WMCC totaling approximately $1,065,000. In return, Taylor admitted that Maloy was paid a periodic “fee,” ranging from $2,000 to $10,000 during the conspiracy.
As part of his guilty plea, Taylor agreed to pay restitution in the amount of $85,221.21 to PennDOT.
Judge Fischer scheduled sentencing for March 9, 2018, at 9:00 a.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.
Maloy previously pleaded guilty to one count of conspiracy to defraud the United States on November 12, 2014, and his sentencing is currently scheduled for January 23, 2018 before Chief United States District Judge Joy Flowers Conti.
Assistant United States Attorneys Robert S. Cessar, Eric G. Olshan, and Christy Criswell Wiegand are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the United States Department of Transportation – Office of Inspector General conducted the investigation of Taylor and Maloy, with assistance from the Pennsylvania Turnpike Commission – Office of Inspector General.
Oakland Man Sentenced to Almost Twenty Years in Prison for Role in Conspiracy to Smuggle Drugs Around Airport SecurityRead the Press Release
OAKLAND – Jeremy Luckett was sentenced today to 235 months in prison for his role in a conspiracy to distribute, and to possess with the intent to distribute, methamphetamine, announced United States Attorney Brian J. Stretch; Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf; and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge, following a guilty plea in which Luckett admitted participating in an operation to smuggle methamphetamine, cocaine, and marijuana through the Oakland International Airport in violation of security requirements.
Luckett, 38, of Oakland, pleaded guilty on May 8, 2017, to one count of conspiring to distribute, and to possess with intent to distribute, fifty grams and more of actual methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(b)(1)(A)(viii). According to the plea agreement and the government’s sentencing memorandum, from at least January 2011, to April 28, 2014, Luckett was part of a conspiracy to smuggle narcotics through the Oakland airport by violating airport security measures to transport methamphetamine, cocaine, and marijuana to Hawaii. In order to carry out his scheme, the defendant conspired with a Southwest Airlines employee to smuggle the narcotics into the Oakland Airport around the Transportation Security Administration checkpoint where the drugs were eventually provided to couriers who transported the narcotics on outbound commercial flights from Oakland to Hawaii. Luckett recruited some of the couriers and typically paid them cash before and after their smuggling runs. Luckett also purchased or directed a co-conspirator to purchase the plane tickets and hotel accommodations used to carry out the conspiracy. The drug smuggling operation came to an end on April 28, 2014, when one of the couriers became intoxicated and was denied entry to her flight to Hawaii. The courier was subsequently arrested and the narcotics provided to her for transport were seized. The narcotics intended for distribution in Hawaii included packages that contained 1,741.7 grams of mixtures and substances containing 1,690.2 grams of actual (pure) methamphetamine as well as 998.6 grams of cocaine.
On August 11, 2016, Luckett was charged by a federal grand jury in a superseding indictment. Luckett was charged with one count of conspiracy to enter an airport area in violation of security requirements and to defraud the United States, in violation of 18 U.S.C. § 371; 33 counts of entering an airport area in violation of security requirements, in violation of 49 U.S.C. §§ 46314(a) and 46314(b)(2); one count of conspiracy to distribute, and to possess with intent to distribute, methamphetamine and cocaine, in violation of 21 U.S.C. § 846; one count of distribution and possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1); one count of distribution and possession with intent to distribute cocaine, in violation of 21 U.S.C. § 841(a)(1); and one count of money laundering with intent to promote drug trafficking, in violation of 18 U.S.C. § 1956(a)(1)(A)(i). Pursuant to his guilty plea, Luckett pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute methamphetamine. The remaining counts were dismissed.
In addition to the prison term, Judge Gilliam also sentenced the defendant to a five-year period of supervised release. The defendant, who is in custody, will begin serving the sentence immediately.
Luckett’s co-defendants, Damian Lewis, Christopher Cross, Anthony Turner, Ja’Del McField, Brianna Holloway, Laura Turner, and Katrice Day, pleaded guilty to their respective roles in the scheme. Of these co-defendants, all except for Katrice Day await sentencing. Judge Gilliam sentenced Katrice Day on July 31, 2017, to three years of probation.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Kathleen Turner and Vanessa Quant. The prosecution is the result of an investigation by the IRS-CI, the DEA, the FBI, and the Alameda County Sheriff’s Office. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Anyone wishing to report suspected public corruption is encouraged to contact the FBI public corruption hotline at 415-553-7400 ext. 5 or at [email protected].
Non-Indian Man Residing in Isleta Pueblo Pleads Guilty to Unlawfully Possessing FirearmRead the Press Release
ALBUQUERQUE – Edward A. Garcia, 51, a non-Indian man residing in Isleta Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to violating the federal firearms laws by unlawfully possessing a firearm.
The Isleta Pueblo Tribal Police Department arrested Garcia on a criminal complaint in July 2017, for assaulting an Isleta Pueblo woman by biting her and striking her on the face and threatening her with a sledgehammer. The complaint alleged that Garcia committed the assault in Isleta Pueblo in Bernalillo County, N.M.
Garcia subsequently was charged in a four-count indictment that was filed on July 27, 2017. The indictment charged Garcia with two assault offenses: assault of an intimate partner resulting in substantial bodily injury on June 6, 2017, and assault with a dangerous weapon, a sledgehammer, on June 7, 2017. It also charged Garcia with using a cellphone to engage in a course of conduct that caused substantial emotional distress to the victim and placing her in fear of death and serious bodily injury from June 7, 2017 through July 6, 2017, and with unlawfully possessing a firearm in July 2017. According to the indictment, Garcia was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of a controlled substance.
During today’s change of plea hearing, Garcia pled guilty to being a felon in possession of a firearm. In entering the guilty plea, Garcia admitted that on July 7, 2017, when he was arrested by law enforcement authorities, he was in possession of a handgun. Garcia admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
At sentencing, Garcia faces a maximum penalty of ten years in federal prison. Garcia remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Isleta Pueblo Tribal Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Multi-State Fentanyl, Cocaine Trafficking Organization ShutdownRead the Press Release
PROVIDENCE – Twenty-three individuals have been charged in federal court in Providence, two individuals have been charged in state courts in Connecticut and Massachusetts, and federal arrest warrants have been issued for several more individuals in connection with a series of wide-sweeping investigations that to date have resulted in the seizure of at least 45 kilograms of suspected fentanyl, cocaine and marijuana. It is believed that hundreds of kilograms of fentanyl and cocaine were moved through Rhode Island and Massachusetts by the drug trafficking organization targeted in these investigations.
The first strike by law enforcement occurred when members of law enforcement interrupted the delivery of a kilogram of suspected fentanyl on February 14, 2017, allegedly supplied by a Rhode Island man, earmarked for delivery in Bridgewater, Mass. That investigation expanded to encompass a series of investigations that, to date, has involved at least 36 federal, state and local law enforcement agencies in six states and in the Dominican Republic.
At a press conference today, Acting United States Attorney for the District of Rhode Island Stephen G. Dambruch, Resident Agent in Charge of the Providence office of the Drug Enforcement Administration Sam Masiello, and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police provided an overview of the investigations dubbed “Operation Panamera.”
During the course of the investigations, at least 23 kilograms of suspected fentanyl, 11kilograms of cocaine, 11 kilograms of marijuana and two kilograms of psilocybin mushrooms were seized. The seizures were made as the drugs moved through the U.S. Postal Service; during traffic stops, including a traffic stop in Fairfield, Conn., on September 30, 2017, where 5 kilograms of suspected fentanyl, ultimately headed to Rhode Island for distribution, were seized; and the execution of court authorized searches of residences, storage units and vehicles where, for example, 5 kilograms of suspected fentanyl were seized from a residence in Norton, Mass., on September 30, 2017.
Among the individuals arrested and detained in federal custody is Ramon Delossantos, 24, of Cumberland, R.I., a Dominican national identified in court papers as the alleged leader of the drug trafficking organization. It is alleged that Delossantos was the source of the kilogram of fentanyl seized on February 14, 2017, in Bridgewater, Mass. It is also alleged in court documents that at least 50 kilograms of fentanyl and cocaine were trafficked by Delossantos or by individuals associated with Delossantos. The investigation determined that Delossantos allegedly utilized multiple telephones to avoid law enforcement detection as he allegedly facilitated the distribution of narcotics in New England with the use of “runners.” It is alleged that the deliveries varied from small quantities for users to kilograms quantities at a time for large scale distributors. Delossantos’ alleged mode of transportation during the alleged drug trafficking operation was a 2010 Porche Panamera Turbo. Delossantos was arrested on October 2, 2017, and his Porche Panamera was seized by law enforcement.
According to court documents, Delossantos, who has strong ties to the Dominican Republic, was previously convicted in Massachusetts and Rhode Island state courts on drug trafficking and firearms charges. Most recently, Delossantos was convicted and sentenced to the Adult Correctional Institutions (ACI) in Rhode Island in December 2014 on firearms charges. An immigration detainer was lodged against Delossantos at that time by Immigration and Customs Enforcement. Delossantos was released from the ACI upon completion of his prison sentence in May 2016.
Also detained in federal custody are Rinaxo M. Rufino, 33, of Miramar, FL., and Gabriel Concepcion, 27, of Kissimmee, FL., on a federal indictment charging them with conspiracy to possess with the intent to distribute five kilograms or more of cocaine. They were arrested on August 26, 2017, and charged in connection with the seizure of more than 19 kilograms of cocaine shipped via the U.S. Postal Service from Puerto Rico to residences in Providence, Woonsocket and Central Falls. The packages were intercepted by U.S. Postal Inspectors. It is alleged in court documents that Rufino and Conception were associated with Delossantos.
“This cooperative effort is yet another example of the coordinated approach law enforcement employs to combat the scourge of illegal drug distribution, particularly the opioid epidemic that has hit RI and the entire country so hard during the last few years,” said Acting United States Attorney Stephen G. Dambruch. “Drug overdoses are now the leading cause of death for Americans under the age of 50. Unfortunately, Rhode Island has not been immune to this crisis. In 2016, 336 Rhode Islanders died from an overdose, with 195 of those deaths involving fentanyl. To put that number in perspective, we had 29 homicides and 53 traffic fatalities in Rhode Island during that same period. So, when someone says drug dealing is not a violent crime, think of those numbers.”
“DEA is committed to investigating and dismantling large scale poly drug trafficking organizations like this one operating in Rhode Island,” said DEA Special Agent in Charge Michael J. Ferguson. “The Delossantos drug trafficking operation was allegedly responsible for distributing multi-kilogram quantities of fentanyl, heroin, and cocaine throughout Rhode Island and Massachusetts. DEA and our law enforcement partners will aggressively pursue any group that distributes these poisons. This investigation demonstrates the strength of collaborative law enforcement and our strong partnership with the U.S. Attorney’s Office.”
Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police and Director of the Department of Public Safety, said, “Rhode Islanders – and everyone throughout New England -- should be proud of the teamwork that went into this operation. Working together, we arrested more than two-dozen people. We seized 47 kilos of fentanyl, cocaine, marijuana and other illegal narcotics worth millions of dollars. We also saved lives. We can’t begin to imagine how many people could have died if we didn’t get those deadly drugs off our streets.”
Defendants being prosecuted in U.S. District Court in Providence are being prosecuted by Assistant U.S. Attorneys Paul F. Daly, Jr., and William J. Ferland.
###
Moody Pill Mill Doctor Charged with Illegal PrescribingRead the Press Release
BIRMINGHAM – Federal prosecutors on Friday charged a Vestavia Hills physician with illegally prescribing controlled substances, including opioid painkillers, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
In a one-count information filed in U.S. District Court, the U.S. Attorney’s Office charged STEVEN BRUCE HEFTER, 60, with one count of conspiracy to dispense and distribute schedule II controlled substances, including oxycodone, methadone and hydrocodone, outside the scope of professional practice and not for a legitimate medical purpose between 2012 and December 2015. Hefter worked at a pain management clinic in Moody that closed after investigators began looking into the clinic’s prescribing practices.
In conjunction with the charge against Hefter, prosecutors also filed a plea agreement with him. The terms of the plea agreement were filed under seal; however, Hefter will be required to surrender his Alabama medical license, along with his state and federal DEA certificates to prescribe controlled substances. He will be prohibited from ever practicing medicine in the United States. A federal judge must accept the terms of the agreement before it is final.
“President Trump has declared the opioid crisis a national health emergency,” Town said. “Attorney General Sessions has already implemented programs to target this epidemic. Our collective efforts in the Northern District of Alabama are already getting results and the people of Alabama can count on many more.”
“Our agents will continue to work these cases tirelessly,” Hamilton said. “This opioid crisis is devastating to our community and our children.”
“Doctors must play a critical role in not only treating pain but also in combating America’s opioid epidemic,” said Assistant U.S. Attorney Mohammad Khatib. “Doctors prescribing opioids within the bounds of legitimate medicine are not the focus of the Department of Justice. We are, however, coming for those physicians and medical providers who abuse their positions and prescribing authority for no other purpose than greed,” he said. “Doctors who do so harm all Americans and represent the nadir of the medical profession.”
Hefter specialized as a cardiologist, not in pain management, but worked as a pain management physician for the clinic in Moody. The clinic held itself out as providing legitimate pain management services. In reality, the clinic was a pill mill churning out schedule II controlled substance pills mainly to make money. Hefter issued prescriptions through the clinic for schedule II controlled substances that were not medically necessary.
The DEA investigated the case, based partly on an investigation conducted by the Alabama Board of Medical Examiners. Khatib is prosecuting the case.
###
Milwaukee-Area Gas Station Owner Charged in Federal Court with Forced Labor Trafficking and Other CrimesRead the Press Release
United States Attorney Gregory J. Haanstad announced today that a federal grand jury has returned a three-count indictment charging the owner of several Milwaukee-area gas stations with labor-related crimes involving his business that occurred between 2009 and 2011. Harshinder Bhatia (age: 58), was charged with one count of harboring an alien for financial gain, one count of forced labor involving aggravated sexual abuse, and one count of document servitude. He was arraigned on these charges on October 24, 2017.
If convicted, Bhatia faces up to 5 years in prison on the charge of document servitude, up to 10 years in prison on the charge of alien harboring, and up to life in prison on the charge of forced labor. The indictment also notifies Bhatia of the government’s intention to seek forfeiture of a number of real properties used to facilitate these offenses or acquired as proceeds of these offenses.
According to the indictment, Bhatia obtained the labor and services of an Indian national female using force and threats of force, causing her to believe that if she did not perform such labor and services, she would suffer serious harm. The indictment charges that this crime involved aggravated sexual abuse and was furthered by Bhatia’s possession of the victim’s passport.
This matter is being investigated by members of the Federal Human Trafficking Task Force, including special agents and detectives representing Homeland Security Investigations, the Federal Bureau of Investigation, the Department of Labor, and the Milwaukee Police Department. The case is being prosecuted by Assistant United States Attorney Erica J. Lounsberry.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
# # # # #
McAlester Man Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that KELLY RAY POTTER JR, age 41, of McAlester, Oklahoma pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A), punishable by not less than 10 years imprisonment, and up to life imprisonment, and up to a $10,000,000.00 fine.
The Superseding Indictment alleged that beginning in or about July 2016 and continuing until on or about November 29, 2016, within the Eastern District of Oklahoma and elsewhere, the defendant, KELLY RAY POTTER JR., did knowingly and intentionally combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to distribute and possess with intent to distribute 50 grams or more of methamphetamine (actual).
The charges arose from a joint investigation entitled “Golden Pony” coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Bureau of Indian Affairs and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Timothy Hammer represented the United States.
Marty Man Sentenced to 135 Months in Federal Prison for Sexual Abuse Involving ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a Marty, South Dakota, man convicted of Sexual Abuse was sentenced on October 30, 2017, by U.S. District Judge Karen E. Schreier.
Burton Wayne Rainbow, Jr., age 35, was sentenced to 135 months in custody, followed by five years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
According to the court documents, in August of 2015 at Marty, South Dakota, Burton Wayne Rainbow, Jr., knowingly caused the victim to engage in a sexual act by placing the victim in fear. At the time of the sexual assault, the victim was 13 years old and the defendant was 32 years old.
The investigation is being conducted by the Federal Bureau of Investigation and the Yankton Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Rainbow was immediately turned over to the custody of the U.S. Marshal’s Service.
Libyan National Charged with Federal Offenses in 2012 Attack on U.S. Special Mission and Annex in BenghaziRead the Press Release
Mustafa al-Imam, a Libyan national approximately 46 years old, has been charged for his alleged participation in the Sept. 11, 2012, attack on the U.S. Special Mission and Annex in Benghazi, Libya, which resulted in the deaths of four Americans.
“The murder of four Americans in Benghazi on September 11, 2012 was a barbaric crime that shocked the American people. We will never forget those we lost – Tyrone Woods, Sean Smith, Glen Doherty and Ambassador Christopher Stevens – four brave Americans who gave their lives in service to our nation," said Attorney General Jeff Sessions. "We owe it to them and their families to bring their murderers to justice. Today the Department of Justice announces a major step forward in our ongoing investigation as Mustafa al-Imam is now in custody and will face justice in federal court for his role in the attack. I am grateful to the FBI, our partners in the intelligence community and the Department of Defense who made this apprehension possible. The United States will continue to investigate and identify all those who were involved in the attack – and we will hold them accountable for their crimes.”
“The apprehension of Mustafa al-Imam demonstrates our unwavering commitment to holding accountable all of those responsible for the murders of four brave Americans in a terrorist attack in Benghazi,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “Together with our law enforcement partners, we will do all that we can to pursue justice against those who commit terrorist acts against the United States, no matter how far we must go and how long it takes.”
Mustafa al-Imam is charged in a recently unsealed three-count criminal complaint. The complaint, which was filed under seal on May 19, 2015, in the U.S. District Court for the District of Columbia, charges al-Imam with:
- Killing a person in the course of an attack on a federal facility involving the use of a firearm and dangerous weapon and attempting and conspiring to do the same.
- Providing, attempting and conspiring to provide material support to terrorists resulting in death.
- Discharging, brandishing, using, carrying and possession of a firearm during and in relation to a crime of violence.
Al-Imam is in U.S. custody, and upon his arrival to the U.S. he will be presented before a federal judge in Washington, D.C.
Charges contained in criminal complaints are merely allegations that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s New York Field Office with substantial assistance from various other government agencies. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the National Security Division of the U.S. Department of Justice
Libyan National Charged with Federal Offenses in 2012 Attack on U.S. Special Mission and Annex in BenghaziRead the Press Release
WASHINGTON – Mustafa al-Imam, a Libyan national approximately 46 years old, has been charged for his alleged participation in the Sept. 11, 2012, attack on the U.S. Special Mission and Annex in Benghazi, Libya, which resulted in the deaths of four Americans.
“The murder of four Americans in Benghazi on September 11, 2012 was a barbaric crime that shocked the American people. We will never forget those we lost – Tyrone Woods, Sean Smith, Glen Doherty and Ambassador Christopher Stevens – four brave Americans who gave their lives in service to our nation," said Attorney General Jeff Sessions. "We owe it to them and their families to bring their murderers to justice,. Today the Department of Justice announces a major step forward in our ongoing investigation as Mustafa al-Imam is now in custody and will face justice in federal court for his role in the attack. I am grateful to the FBI, our partners in the intelligence community and the Department of Defense who made this apprehension possible. The United States will continue to investigate and identify all those who were involved in the attack – and we will hold them accountable for their crimes.”
“The apprehension of Mustafa al-Imam demonstrates our unwavering commitment to holding accountable all of those responsible for the murders of four brave Americans in a terrorist attack in Benghazi,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “Together with our law enforcement partners, we will do all that we can to pursue justice against those who commit terrorist acts against the United States, no matter how far we must go and how long it takes.”
Mustafa al-Imam is charged in a recently unsealed three-count criminal complaint. The complaint, which was filed under seal on May 19, 2015, in the U.S. District Court for the District of Columbia, charges al-Imam with:
- Killing a person in the course of an attack on a federal facility involving the use of a firearm and dangerous weapon and attempting and conspiring to do the same.
- Providing, attempting and conspiring to provide material support to terrorists resulting in death.
- Discharging, brandishing, using, carrying and possession of a firearm during and in relation to a crime of violence.
Al-Imam is in U.S. custody, and upon his arrival to the U.S. he will be presented before a federal judge in Washington, D.C.
Charges contained in criminal complaints are merely allegations that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s New York Field Office with substantial assistance from various other government agencies. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the National Security Division of the U.S. Department of Justice
- Killing a person in the course of an attack on a federal facility involving the use of a firearm and dangerous weapon and attempting and conspiring to do the same.
Leader of Check Fraud Scheme Sentenced to 4 Years in PrisonRead the Press Release
PROVIDENCE – Taquala Wigginton, 21, of Providence, was sentenced on Friday to 48 months in federal prison for leading a check fraud scheme that defrauded several local banks, and for violating the terms of supervised release in relation to a previous federal conviction and court-imposed sentence for conspiracy to commit bank fraud.
At sentencing, U.S. District Court Chief Judge William E. Smith imposed a sentence of 24 months in federal prison on Wigginton’s most recent conviction on a charge of conspiracy to commit bank fraud. Wigginton pleaded guilty on July 28, 2017. Additionally, Chief Judge William E. Smith imposed a consecutive sentence of 24 months in prison for violating the terms of supervised release in relation to January 2015 conviction and original sentence imposed for conspiracy to commit bank fraud.
Both the government and the defense recommended to the court a sentence of 48 months incarceration. The U.S. Sentencing Guideline imprisonment range in the most recent case is 27-33 months.
Wigginton’s sentence is announced by Acting United States Attorney Stephen G. Dambruch and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to court documents and information presented to the court, in the most recent case, from at least October 2015 to late February 2017, Wigginton led a conspiracy to defraud several banks through the use of fraudulent and stolen checks. The stolen and fraudulent checks were deposited into actual bank accounts, and then the funds withdrawn. As part of the scheme, Wigginton recruited individuals who surrendered control of their bank accounts and PIN numbers to her. At least seven bank account holders were identified.
According to information presented to the Court, in addition to actual bank account owners, Wigginton recruited others to participate in the scheme, including through postings on Facebook. Among those recruited to assist Wigginton was a juvenile who, by his account, executed at least 50 such transactions.
As part of the investigation into Wigginton’s criminal conduct, on February 21, 2017, Rhode Island State Police arrested Wigginton and performed a consensual search of her Providence apartment. State Police detectives seized, among other things, 335 blank checks from a Habitat for Humanity bank account; several blank checks that could be used to produce bank checks; debit cards and ATM cards, and personal identifying information belonging to several individuals.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
###
Leader of Drug Trafficking Organization Operating in New Jersey Extradited from the Dominican RepublicRead the Press Release
NEWARK, N.J. – A Dominican national was extradited to the United States over the weekend for his alleged role in a drug trafficking organization responsible for over 16 kilograms of heroin that were seized in New Jersey and New York, Acting U.S. Attorney William E. Fitzpatrick announced.
Wellington Luna De La Cruz, a/k/a “Orlando Luna Cruz,” a/k/a “Luis Echevarria,” a/k/a “El Mofle,” 40, is charged by indictment with one count of conspiracy to distribute more than one kilogram of heroin and one count of distribution and possession with intent to distribute more than one kilogram of heroin. De La Cruz appeared this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was detained.
According to documents filed in this and related cases:
Since January 2015, the Drug Enforcement Administration (DEA) has been investigating a drug trafficking organization (DTO) operating in New Jersey, the Dominican Republic, Mexico, and elsewhere. The investigation revealed that De La Cruz is an alleged narcotics trafficker and high-ranking member of the DTO.
The narcotics were generally imported from Mexico and transported via truck to the New Jersey and New York areas. De La Cruz allegedly instructed certain DTO members to receive the shipments, deliver payment to the truck drivers or other suppliers, and then distribute specified amounts of narcotics to other members of the DTO.
The DTO has been linked to several multiple-kilogram seizures of heroin, including two kilograms of heroin seized in New York in March 2015; four kilograms of heroin seized on Route 80 near Saddle Brook, New Jersey, in November 2015; and 10 kilograms of heroin seized in Elizabeth, New Jersey, in January 2017.
If convicted, De La Cruz faces a mandatory minimum sentence of 10 years imprisonment, a maximum sentence of life imprisonment, and a fine of $10 million per count.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Acting U.S. Attorney Fitzpatrick credited special agents with the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson, and officers with the N.J. State Police, Trafficking North Unit, under the direction of Col. Rick Fuentes, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the OCDETF/Narcotics 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.
Las Cruces Man Arrested on Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – John Bevel, 42, of Las Cruces, N.M., made his initial appearance today in federal court on a criminal complaint charging him with possessing child pornography. Bevel remains in federal custody pending a preliminary hearing and a detention hearing, which are scheduled for Nov. 2, 2017.
The criminal complaint alleges that Bevel possessed child pornography in Oct. 2017, in Dona Ana County, N.M. According to the complaint, Homeland Security Investigations and the Las Cruces Police Department initiated an investigation into Bevel in early Oct. 2017, when Dropbox Inc., an online storage account system, reported to the National Center for Missing and Exploited Children that Bevel’s account allegedly contained approximately 15 files containing child pornography. The complaint further alleges that Bevel’s smartphone contained hundreds of images of child pornography.
If convicted of possessing child pornography, Bevel faces a statutory maximum penalty of 20 years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of Homeland Security Investigations and the Las Cruces Police Department. Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the 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 information about Project Safe Childhood, please visit http://www.justice.gov/psc/. Individuals with information relating to suspected child predators and suspected child abuse are encouraged to contact the Children’s Advocacy Center at (575) 526-3437.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Lake Andes Man Charged with Sexual Abuse Offenses Involving Children Appears in Federal CourtRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lake Andes, South Dakota, man has been indicted by a federal grand jury for fourteen counts of sexual abuse offenses involving children.
Quentin Peter Bruguier, Jr., a/k/a “JB,” age 54, was indicted on October 11, 2017. He appeared before U.S. Magistrate Judge Veronica L. Duffy on October 19, 2017, and pled not guilty to the Indictment.
For the most serious offenses, the maximum penalty upon conviction is up to life imprisonment and/or a $250,000 fine, 5 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the Indictment, between 1989 and 2016, Bruguier engaged in sexual acts with children. The charges are merely accusations and Bruguier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Bruguier is currently detained. A trial date has been set for December 26, 2017.
Kansas Business Owner Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
A former resident of Overland Park, Kansas, pleaded guilty today to aiding and assisting in the preparation and presentation of false income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Thomas E. Beall for the District of Kansas.
According to documents filed with the court, Alfred Reece, 58, owned and operated a tax preparation business in Kansas City. From approximately 2013 through 2015, Reece prepared federal tax returns for individuals, claiming false business income and losses, medical and dental expense deductions, job-related expenses, charitable donations and other fraudulent items. Reece also concealed himself as the preparer on these fraudulent returns by falsely claiming that they were self-prepared. Reece admitted to causing a tax loss of between $550,000 and $1.5 million.
Sentencing is scheduled for Jan. 17, 2018 before U.S. District Court Judge Julie A. Robinson. Reece faces a statutory maximum sentence of three years in prison on each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Beall commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Scott C. Rask of the District of Kansas, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Kansas Business Owner Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
A former resident of Overland Park, Kansas, pleaded guilty today to aiding and assisting in the preparation and presentation of false income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Thomas E. Beall for the District of Kansas.
According to documents filed with the court, Alfred Reece, 58, owned and operated a tax preparation business in Kansas City. From approximately 2013 through 2015, Reece prepared federal tax returns for individuals, claiming false business income and losses, medical and dental expense deductions, job-related expenses, charitable donations and other fraudulent items. Reece also concealed himself as the preparer on these fraudulent returns by falsely claiming that they were self-prepared. Reece admitted to causing a tax loss of between $550,000 and $1.5 million.
Sentencing is scheduled for Jan. 17, 2018 before U.S. District Court Judge Julie A. Robinson. Reece faces a statutory maximum sentence of three years in prison on each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Beall commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Scott C. Rask of the District of Kansas, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Jury convicts former Cumming Police sergeant of accepting bribes and computer fraudRead the Press Release
ATLANTA – A federal jury in Atlanta convicted former Cumming Police Sergeant Nathan VanBuren of taking bribes in exchange for providing sensitive law enforcement information.
“VanBuren broke the very laws he swore to uphold and enforce,” said U.S. Attorney Byung J. “BJay” Pak. “Police officers are afforded respect, and are expected to model integrity and honesty. This former officer undermined the hard work of other officers who serve, as well as the community’s trust and respect for the police.”
“The FBI is charged with the unfortunate but necessary task of investigating police misconduct, to include corruption. That was the case with the allegations received involving then Cumming Police Sgt. VanBuren, which resulted in his federal indictment and today’s conviction via jury trial. The FBI continues to ask the public to do its part by reporting all allegations of public corruption, to include those involving law enforcement, to their nearest FBI field office for prompt action,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. States Attorney Pak, the charges, and other information presented in court: In July 2015, VanBuren, in his official capacity as a police officer, responded to a 911 call at a citizen’s home in Cumming, Georgia. The citizen was arrested. In July and August 2015, VanBuren and the citizen had additional communications. During those communications, VanBuren asked the citizen for a loan under the guise that his wages were being garnished and he had incurred financial debt due to his son’s medical and surgical expenses. In truth, VanBuren’s salary was not being garnished and his son was neither ill nor had surgery. The citizen felt threatened and reported VanBuren’s actions to the Forsyth County Sheriff’s Department and agreed to cooperate with law enforcement.
While cooperating with law enforcement, the citizen provided VanBuren $5000 in response to VanBuren’s repeated requests for money. During that meeting, the citizen asked whether VanBuren would search a sensitive police database to determine whether an individual was an undercover police officer. Ultimately, in exchange for $1000, VanBuren unlawfully accessed a law enforcement database and provided the results of that search to the citizen. VanBuren resigned before he was terminated by the Cumming Police Department.
A jury found Nathan VanBuren, 35, of Cumming, Georgia, guilty of honest services wire fraud and computer fraud. Sentencing for VanBuren has not yet been scheduled.
This case is jointly being investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation. The Cumming Police Department and Forsyth County Sheriff’s Office assisted with the investigation.
Assistant U.S. Attorney Jeffrey Brown is prosecuting the case.
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.
Judge Sentences Pittsburgh Heroin Dealer to 8 Years in Federal PrisonRead the Press Release
PITTSBURGH – Garriton Jones was sentenced to 96 months in federal prison for conspiring to distribute heroin, Acting United States Attorney Soo C. Song announced today.
Jones, 38, formerly of Pittsburgh, Pennsylvania, was sentenced by United States District Court Judge Nora Barry Fischer. Judge Fischer ordered that Jones serve three years of supervised release after he is released from prison.
Assistant United States Attorneys Rachael L. Dizard and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Immigration and Customs Enforcement/Homeland Security Investigations, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). 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.
Indictment Charges 8 Connecticut Residents with Cocaine Trafficking OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England and Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, today announced that, on October 18, 2017, a grand jury in New Haven returned seven-count indictment charging the following eight individuals with cocaine trafficking offenses:
LUIS CIRINO, a.k.a. “Gordo” and “G,” 40, of New Britain
MICHAEL RIVERA, 23, of New Britain
ANGEL SALINAS, a.k.a. “Chino,” 21, of Waterbury
JAVIER VASQUEZ, 46, of Willimantic
ANGEL CRUZ, 43, of New Britain
ALBA LORENGIE FILOMENO-GOMEZ, 22, of New London
JASMINE DELGADO, 27, of Middletown
OMAR RIVERA, a.k.a. “O,” 34, of New BritainThe indictment stems from an ongoing investigation headed by the DEA New Haven Task Force and the U.S. Postal Inspection Service that has included the use of court-authorized wiretaps and the seizure of more than 12 kilograms of cocaine. According to statements made in court, it is alleged that Luis Cirino, of New Britain, coordinated the shipment of multi-kilogram quantities of cocaine through the U.S. Mail from Puerto Rico to various locations in Connecticut. Cirino, who was assisted by individuals who received the cocaine on his behalf, then distributed the drug in Connecticut with the assistance of Michael Rivera, Angel Cruz and Omar Rivera, all of New Britain.
Cirino, Michael Rivera, Salinas, Cruz, Filomeno-Gomez and Delgado were arrested on October 25 and Vasquez was arrested on October 27.
Omar Rivera, who is charged in two pending, related indictments, has been detained since his arrest on July 26. It is alleged that Omar Rivera also received cocaine from Orlando Quiros, also known as “O” and “Gordo,” of Suffield, and supplied cocaine received from both Quiros and Cirino to Westley Northrup, also known as “Piff,” formerly of Meriden. Northrup operated a cocaine and crack cocaine trafficking ring while he was incarcerated in state custody. The two related indictments charge a total of 17 individuals.
Each of the defendants in the Cirino, et al, indictment are charged with conspiracy to distribute and to possess with intent to distribute cocaine. If convicted of this charge, based on their conduct and the quantity of cocaine involved in the conspiracy, Cirino, Michael Rivera and Salinas face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. Vasquez, Cruz, Filomeno-Gomez, Delgado and Rivera face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. Each defendant, with the exception of Salinas and Cruz, is also charged with one or more counts of possession, or attempted possession, with intent to distribute cocaine.
Cirino, who is on federal supervised release from a prior federal conviction in the District of Connecticut, faces an additional term of imprisonment if he is found to have violated the conditions of his supervised release.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the DEA New Haven Task Force, U.S. Postal Inspection Service and the Middletown and New Britain Police Departments. The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service. The U.S. Marshals Service, ATF, FBI and the Suffield, Bloomfield and Springfield (Mass.) Police Departments have assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.