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18 October 2017
Nigerian Citizen Pleads Guilty to Theft of Government FundsRead the Press Release
St. Louis, MO – Olusola Luke, 38, a citizen of Nigeria and resident of Guatemala pleaded guilty to conspiracy to steal government funds and to commit identity theft today. Luke appeared before U.S. District Judge Henry E. Autrey who accepted his plea and deferred sentencing until January 17, 2018.
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Karl Stiften, Special Agent in Charge. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. The conviction of Mr. Luke should serve as a strong warning to those who are considering similar conduct.”
In his plea agreement, Luke admitted that he and others misused the identifiers of dozens of individuals to seek and obtain hundreds of thousands of dollars in government funds by filing false tax returns in the names of the identity theft victims. In all, the conspiracy obtained more than $734,000 in government funds. Luke also acknowledged his conviction may subject him to removal from the United States.
Luke was arrested as he entered the United States at Dulles International Airport late on the evening of April 6, 2017 and was taken into custody by the United States Marshals Service at that time and will remain in custody until sentencing.
The case was investigated by Internal Revenue Service Criminal Investigation as part of its Stolen Identity Refund Fraud (SIRF) Initiative which seeks to disrupt the multi-billion-dollar enterprise whereby Americans’ identities are compromised and used to defraud the government through the income tax system. The U.S. Marshals Service assisted with the apprehension of the Defendant.
New York Man Convicted of Being A Felon in Possession of A Firearm and AmmunitionRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tyrone Greene, age 43, formerly of New York City, was convicted on October 17, 2017, of being a felon in possession of a firearm and ammunition after a two-day jury trial held before U.S. District Court Judge A. Richard Caputo.
According to United States Attorney Bruce D. Brandler, on November 20, 2014, police officers in Hanover Township initiated a traffic stop of a vehicle in which Greene was a passenger. The vehicle was traveling at night without lights. The officers detected the odor of marijuana coming from the vehicle and located a bag of marijuana in Greene’s pocket. A subsequent search of Greene, a convicted felon, revealed that he was carrying a fully loaded Beretta pistol.
The investigation was conducted by the Hanover Township Police Department, the Pennsylvania State Police, and Federal Bureau of Investigation’s Safe Streets Task Force. Assistant United States Attorneys Robert J. O’Hara and Francis P. Sempa prosecuted 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.
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.
Tyrone Greene is facing a maximum possible penalty of 10 years’ imprisonment under federal law, 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.
A sentencing date has not yet been scheduled.
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New Orleans Man Indicted for Possessing Child PornographyRead the Press Release
Acting United States Attorney Duane A. Evans announced that DAMIAN BARBARITO ROMERO, age 37, of New Orleans, was arrested yesterday after previously being indicted for one-count of possession of images and videos depicting the sexual exploitation of children under the age of twelve years old.
If convicted, ROMERO faces a maximum term of imprisonment of 20 years, followed by up to a lifetime of supervised release, and a $250,000 fine. ROMERO can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Acting United States Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation Violent Crimes Against Children Task force, which includes members of the Kenner Police Department in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the investigation.
Nampa Woman Pleads Guilty to Mail TheftRead the Press Release
BOISE – Laura Alicia Cox, 56, of Nampa, Idaho, pleaded guilty yesterday to theft of mail matter by a postal employee, U.S. Attorney Bart M. Davis announced. Cox was indicted by a federal grand jury on August 8, 2017.
Cox worked as a clerk at the U.S. Post Office in Melba, Idaho. According to the plea agreement, in June 2017, a surveillance camera at the Melba post office captured Cox opening mail that did not belong to her and removing its contents. Cox then put the mail contents in her employee locker. The video camera was installed following numerous complaints from customers of the Melba post office who reported problems with their mail. Cox had been employed by the U.S. Postal Service since January 1, 2000.
Sentencing is set for January 4, 2018, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
This case was investigated by the U.S. Postal Service, Office of the Inspector General.
Muksedur Rahman, Md. Rafiqul Islam and David Trung Quoc Phan Guilty of Mail Fraud, Fraud in Foreign Labor Contracting, and Visa FraudRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants Muksedur Rahman, Mohammad Rafiqul Islam, and David Trung Quoc Phan were found guilty of two counts of Mail Fraud, three counts of Fraud in Foreign Labor Contracting, and one count of Visa Fraud, by a 12-person jury in the District Court of the Northern Mariana Islands.
The charges in the Indictment spring from a scheme to defraud Bangladeshi men by promising them good-paying jobs in the United States, as well as Green Cards. Each of the victims paid over $10,000.00, but when they arrived in Saipan in April of 2016, they were not given work as promised. Defendant Mohammad Rafiqul Islam, and unindicted co-conspirators in Bangladesh recruiting the men, collected large fees from them, and deposited them into the bank accounts of defendants’ family members in Bangladesh. Defendant Muksedur Rahman coordinated the recruitment and employment of the victims from Saipan. A necessary part of the scheme required the purported employer, Defendant David Trung Quoc Phan, to mail fraudulent applications to United States Citizenship and Immigration Services in order to obtain CNMI-only work authorization permits. The victims were also ‘coached’ to lie to U.S. Embassy personnel in Dhaka during their visa interviews; the Defendants told the victims not to admit they had paid any fees for their jobs, upon pain of losing all the money they had already paid.
Acting United States Attorney Anderson stated, “The CNMI has been plagued by illegal recruitment scams for more than 20 years. They are difficult cases to investigate and prosecute. Every CW-1 permit approved for a sham employer for a non-existent job represents one less nurse at the Commonwealth Health Center, one less power plant operator for the Commonwealth Utilities Commission, or one less worker for the CNMI economy. The United States Attorney’s Office will continue to pursue these cases at every opportunity.”
Part of the evidence in the case consisted of official bank records obtained from the Government of Bangladesh pursuant to a mutual legal assistance letter request (MLAT) prepared by the U.S. Department of Justice’s Office of International Affairs (OIA). The case against Defendant Rahman and his co-defendants is the first NMI District case in which foreign evidence has been obtained through the MLAT process.
Special Agents and Task Force Officers from the Department of Homeland Security, Homeland Security Investigations (HSI) conducted the investigation. Assistant United States Attorneys James Benedetto and Eric O’Malley prosecuted the case. Sentencing is set for March 9, 2018.
More Charges Against Springfield Man Who Managed Online Chat Group to Share Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that additional charges have been filed against a Springfield, Mo., man who managed an online chat group to share child pornography.
Anthony Cotter, 30, of Springfield, was charged in a two-count indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Cotter on Oct. 5, 2017, and includes an additional charge.
Today’s indictment alleges that Cotter used a minor, identified as Jane Doe #1, to produce child pornography from Jan. 1, 2015, to Oct. 5, 2017. The indictment also includes the original charge against Cotter of receiving and distributing child pornography over the Internet.
According to an affidavit filed in support of today’s criminal complaint, Cotter was a group administrator for a very active online chat group of 50 members who shared images and videos of child pornography with each other. Cotter also told investigators that he had been sexually abusing a minor female and taking photographs of her in various states of nudity.
The investigation began on March 9, 2017, when federal agents assisted the New York State Police with a child exploitation investigation that resulted in the arrest and prosecution of a member of Cotter’s chat group. Investigators reviewed communications that occurred in the group, including Cotter’s involvement as he monitored other users and warned them to follow the rules of the chat group. Cotter actively encouraged other users to post child pornography, the affidavit says, and posted several video files to the chat room himself.
According to the affidavit, members of the chat group were receiving and distributing videos and images of child pornography that depicted children from infants to approximately 12 years old. The images and videos depicted various types of sexual abuse to the children perpetrated by adult males and adult females; some of the images and videos depicted bondage and bestiality involving the sexual abuse of children under the age of 12.
Investigators also identified Cotter as the source of a Skype account that was being used to distribute images and videos of child pornography, the affidavit says. Multiple cyber tips related to the account were received from the National Center for Missing and Exploited Children.
Officers executed a search warrant at Cotter’s residence and arrested Cotter.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Monroe woman pleads guilty to stealing mailRead the Press Release
MONROE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a former Monroe post office employee pleaded guilty to stealing mail.
Tanasha Turner, 34, of Monroe, pleaded guilty before U.S. Magistrate Judge Karen L. Hayes to one count of theft of mail matter by a postal service employee. The plea will be final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, the postmaster from a Monroe post office reported losses of mail from the Monroe Main Post Office and the Northside Station. Law enforcement agents conducted a surveillance operation April 12, 2017 at the Northside Station and tracked Turner taking a letter containing $45. Agents conducted a traffic stop of her vehicle and found Turner in possession of the letter. She admitted to taking the letter and numerous other first class letters beginning in December 2016.
Turner faces up to five years in prison, three years of supervised release and a $250,000 fine. The court set a February 18, 2018 sentencing date.
The U.S. Postal Service-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick is prosecuting the case.
Mineral County man admits to distributing heroinRead the Press Release
MARTINSBURG, WEST VIRGINIA – Robert Lee Sutter, IV, of Keyser, West Virginia, admitted today in federal court to distributing heroin, United States Attorney William J. Powell announced.
Sutter, age 30, pled guilty to one count of “Conspiracy to Distribute Heroin.” Sutter admitted to conspiring with others to distributing heroin in Mineral County and elsewhere from November 2010 to September 2016.
Sutter faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski is prosecuting the case on behalf of the government. The Potomac Highlands Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Mexican National Pleads Guilty to Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOSE MANUEL MAZON-DE DIOS, age 32, a citizen of Mexico, pled guilty today to a one-count Indictment charging him with illegal reentry of a removed alien.
According to court documents, MAZON-DE DIOS, reentered the United States after he was previously deported on April 5, 2013.
If convicted, MASON-DE DIOS faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U.S. District Judge Kurt D. Engelhardt set sentencing for January 3, 2018.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
Mexican Man Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Dario Sanchez-Rosas, 55, of Yonkers, New York, pled guilty today to illegal re-entry into the United States, announced Acting United States Attorney Grant C. Jaquith and Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), Field Office Director Thomas E. Feeley, Buffalo, New York Field Office.
Sanchez-Rosas, a citizen of Mexico, was removed from the United States to Mexico on three separate occasions in 2001. On August 24, 2017, he was encountered and arrested by an ICE Officer in Guilderland, New York. A fingerprint check of Sanchez-Rosas resulted in the discovery of his prior immigration history and the defendant admitted that he returned to the United States without permission following the 2001 removals.
As a result of his conviction, Sanchez-Rosas faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Senior U.S. District Court Judge Norman A. Mordue on January 18, 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Immigration and Customs Enforcement, Albany, NY, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Massachusetts Man Convicted of Supporting ISIS and Conspiring to Murder U.S. CitizensRead the Press Release
Boston – An Everett man was convicted today by a federal jury of conspiring with others to provide material support to the Islamic State of Iraq and al-Sham (ISIS).
David Daoud Wright, a/k/a Dawud Sharif Abdul Khaliq, a/k/a Dawud Sharif Abdul Khaliq, 28, of Everett, Mass., was convicted of conspiracy to provide material support to ISIS, conspiracy to commit acts of terrorism transcending national boundaries, conspiracy to obstruct justice and obstruction of justice.
“Mr. Wright intended to wage war against the United States on behalf of ISIS,” said Acting United States Attorney William D. Weinreb. “Despite the fact that he was born and raised in Massachusetts, Mr. Wright swore allegiance to ISIS, a foreign terrorist organization, and plotted attacks that he hoped would cause more harm than the Boston Marathon Bombings. Today’s conviction ensures that Mr. Wright will never again endanger the lives of innocent Americans or recruit others on behalf of a violent enemy of this country. I commend the efforts of the law enforcement officers who investigated and halted Mr. Wright’s plans and the prosecutors who brought the case to a successful conclusion.”
“Mr. Wright conspired to provide material support to ISIS and plotted to kill innocent civilians on U.S. soil and to wage violence against our government on behalf of the foreign terrorist organization,” said Acting Assistant Attorney General Boente. “Mr. Wright will now be held accountable for his crimes. The National Security Division’s highest priority is counterterrorism, and we will remain vigilant in our efforts to disrupt potential attacks in the United States and to hold accountable those who seek to provide material support to foreign terrorist organizations. I want to thank the many agents, analysts, and prosecutors who are responsible for this result.”
“Today's verdict is a victory for America in its fight against terror,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “It reflects the true gravity of Mr. Wright's crimes, betraying his country, conspiring to support a terrorist organization dedicated to the murder of innocent people, and obstructing an investigation. Mr. Wright was a soldier of ISIS right here in Massachusetts and his plan to carry out terror attacks was a very real threat. This case is a testament to the tireless efforts of the FBI's Joint Terrorism Task Forces in Massachusetts and Rhode Island. The close coordination between federal, state, and local law enforcement agencies, combined with trusted international partnerships, led to the disruption of this plot. Every day, the Joint Terrorism Task Force strives for a perfect record, and we'd like to thank all of our partners for their dedication and hard work in bringing this case to its successful conclusion.”
In April 2016, Wright and co-defendant Nicholas Alexander Rovinski were indicted on charges that they conspired with each other and Usaamah Abdullah Rahim, 26, Wright’s uncle,
to provide material support to ISIS and commit acts of terrorism. Even after his arrest, while detained pending trial, Rovinski sought to continue their planned attacks and wrote letters to Wright from prison discussing ways to take down the U.S. government and decapitate non-believers.
In September 2016, Rovinski pleaded guilty to conspiring to provide material support to ISIS and conspiring to commit acts of terrorism transcending national boundaries.
Beginning in at least February 2015, Wright began discussing ISIS’ call to kill non-believers in the United States with Rahim and Rovinski. Wright created a “martyrdom” operation cell in Massachusetts. In April 2015, he created a Twitter page for the “Lions of America” and published a document entitled, Internal Conquest, on the internet. In this document, Wright called on the “Lions of Allah” to kill Americans. Wright also plotted with Rahim and Rovinski to behead U.S. citizens at the direction of ISIS, and identified Pamela Geller as the first beheading target. Rahim purchased three knives for this plot. In addition, Wright knew Rahim was communicating with an overseas ISIS contact, Junaid Hussain. Hussain, an ISIS member located in Syria, provided Rahim with an encrypted document regarding details about Ms. Geller. In August 2015, Hussain was killed in an airstrike in Raqqah, Syria.
In preparation for their attack, Wright conducted extensive research on weapons, knives, machetes, bombing making components, and methods to subdue their victims. Wright also conducted research on “how to start a secret militia in the United States.”
On June 2, 2015, Rahim was shot and killed after he attacked law enforcement officers in a Roslindale, Mass., parking lot. Two hours before Rahim attacked the police, Wright had encouraged and motivated Rahim to pursue martyrdom by attacking the “boys in blue.” Within minutes of learning of his Uncle’s death from a family member, Wright deleted data from his laptop computer by restoring it to factory settings and deleted call logs on his cellphone that showed that he had spoken to Rahim that morning.
The charge of conspiracy to provide material support provides for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $250,000. The charge of conspiracy to obstruct justice provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of obstruction of justice provides for a sentence of no greater than 20 years in prison, three years of supervised release and a $250,000 fine. The charge of conspiracy to commit acts of terrorism transcending national boundaries provides for a sentence of life in prison, a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Weinreb, Acting AAG Boente and FBI SAC Shaw made the announcement today. This investigation was conducted by the Boston Joint Terrorism Task Force (JTTF); the Boston Police Department; Massachusetts State Police; Everett Police Department; and Customs and Border Protection. The Suffolk District Attorney’s Office; Rhode Island State Police; Warwick, R.I. Police Department; and West Midlands Police, United Kingdom also provided valuable assistance.
The case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of the District of Massachusetts’s National Security Unit and Trial Attorney Gregory R. Gonzalez of the National Security Division’s Counterterrorism Section.
Massachusetts Man Convicted of Supporting ISIS and Conspiring to Murder U.S. CitizensRead the Press Release
David Daoud Wright, aka Dawud Sharif Abdul Khaliq, aka Dawud Sharif Abdul Khaliq, 28, of Everett, Massachusetts, was convicted of conspiracy to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization; conspiracy to commit acts of terrorism transcending national boundaries; conspiracy to obstruct justice; and obstruction of justice.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney William D. Weinreb for the District of Massachusetts and Special Agent in Charge (SAC) Harold H. Shaw of the FBI’s Boston Field Division made the announcement today.
“Mr. Wright conspired to provide material support to ISIS and plotted to kill innocent civilians on U.S. soil and to wage violence against our government on behalf of the foreign terrorist organization,” said Acting Assistant Attorney General Boente. “Mr. Wright will now be held accountable for his crimes. The National Security Division’s highest priority is counterterrorism, and we will remain vigilant in our efforts to disrupt potential attacks in the United States and to hold accountable those who seek to provide material support to foreign terrorist organizations. I want to thank the many agents, analysts and prosecutors who are responsible for this result.”
“Mr. Wright intended to wage war against the United States on behalf of ISIS,” said Acting U.S. Attorney Weinreb. “Despite the fact that he was born and raised in Massachusetts, Mr. Wright swore allegiance to ISIS, a foreign terrorist organization, and plotted attacks that he hoped would cause more harm than the Boston Marathon Bombings. Today’s conviction ensures that Mr. Wright will never again endanger the lives of innocent Americans or recruit others on behalf of a violent enemy of this country. I commend the efforts of the law enforcement officers who investigated and halted Mr. Wright’s plans and the prosecutors who brought the case to a successful conclusion.”
“Today's verdict is a victory for America in its fight against terror. It reflects the true gravity of Mr. Wright's crimes, betraying his country, conspiring to support a terrorist organization dedicated to the murder of innocent people, and obstructing an investigation,” said SAC Shaw. “Mr. Wright was a soldier of ISIS right here in Massachusetts and his plan to carry out terror attacks was a very real threat. This case is a testament to the tireless efforts of the FBI's Joint Terrorism Task Forces in Massachusetts and Rhode Island. The close coordination between federal, state, and local law enforcement agencies, combined with trusted international partnerships, led to the disruption of this plot. Every day, the Joint Terrorism Task Force strives for a perfect record, and we'd like to thank all of our partners for their dedication and hard work they put in to bring this case to its successful conclusion."
In April 2016, Wright and co-defendant Nicholas Alexander Rovinski were indicted on charges that they conspired with each other and Usaamah Abdullah Rahim, 26, Wright’s uncle, to provide material support to ISIS and commit acts of terrorism. In September 2016, Rovinski pleaded guilty to conspiring to provide material support to ISIS and conspiring to commit acts of terrorism transcending national boundaries.
Beginning in at least February 2015, Wright began discussing ISIS’ call to kill non-believers in the United States with Rahim and Rovinski. They began plotting and recruiting members for their “martyrdom” operation. In March 2015, Wright drafted organizational documents for a “Martyrdom Operations Cell” and conducted internet search queries about firearms, the effectiveness of tranquilizers on human subjects and the establishment of secret militias in the United States. Simultaneously, Rahim was communicating with an ISIS member overseas, Junaid Hussain. In August 2015, Hussain was killed in an airstrike in Raqqah, Syria.
Beginning in or about May 2015, Hussain communicated directly with Rahim. Rahim in turn communicated Hussain’s instructions to Wright, with regard to the murder of an individual residing in New York. Wright, Rovinski and Rahim conspired to commit attacks and kill persons inside the United States on behalf of ISIS. In preparation for their attack, Rovinski conducted research on weapons that could be used to behead their victims. While detained pending trial, Rovinski sought to continue their planned attacks and wrote letters to Wright from prison discussing ways to take down the U.S. government and decapitate non-believers.
On June 2, 2015, Rahim was shot and killed after he attacked law enforcement officers in a Roslindale, Massachusetts, parking lot. Within minutes of learning this from a family member, Wright deleted data from his laptop computer by restoring it to factory settings and deleting call logs on his cellphone that showed he had spoken to Rahim that morning.
The charge of conspiracy to provide material support carries a maximum sentence of 20 years in prison, a lifetime term of supervised release and a fine of $250,000. The charge of conspiracy to obstruct justice carries a maximum sentence of five years in prison, three years of supervised release and a fine of $250,000. The charge of obstruction of justice carries a maximum sentence of 20 years in prison, three years of supervised release and a $250,000 fine. The charge of conspiracy to commit acts of terrorism transcending national boundaries carries a maximum sentence of life in prison, a lifetime term of supervised release and a fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors.
This investigation was conducted by the Boston Joint Terrorism Task Force (JTTF); the Boston Police Department; Massachusetts State Police; Everett Police Department; and Customs and Border Protection.
The case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of the District of Massachusetts’s National Security Unit and Trial Attorney Gregory R. Gonzalez of the National Security Division’s Counterterrorism Section.
Maryland Man Found Guilty of Murder and Other Charges in 2011 Killing of Government WitnessRead the Press Release
WASHINGTON – Stanley Moghalu, 30, of Bowie, Md., was found guilty by a jury today of first-degree murder while armed with aggravating circumstances, assault with intent to kill, conspiracy, obstruction of justice, and other charges in an attack that killed one man, who was a government witness, and wounded another man in Northeast Washington.
The verdict was announced by U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Moghalu was found guilty following a trial in the Superior Court of the District of Columbia. The Honorable José M. López scheduled sentencing for Jan. 26, 2018. Moghalu faces a potential sentence of life in prison without parole.
According to the government’s evidence, on Nov. 14, 2011, shortly after 5 p.m., Moghalu and an accomplice ambushed Ronald D. Smith and Charles Harrison at the intersection of 21st and M Streets, NE. Mr. Smith, 27, was killed in the attack. Mr. Harrison was shot nine times, losing the use of his right arm, but survived his injuries.
An investigation determined that Mr. Smith was killed because he was a government witness in an investigation into the May 2011 murder of Ervin L. Griffin in the 1200 block of 18th Street NE. One defendant, David Warren, now 31, and formerly of Washington, D.C., was later found guilty of first-degree murder while armed and other charges in Mr. Griffin’s slaying and sentenced to 36 years in prison.
In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department (MPD). They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Laura R. Bach; Lead Paralegal Specialist Meridith McGarrity; Paralegal Specialist Stephanie Gilbert; Intelligence Analyst Zachary McMenamin; Litigation Technology Specialist Leif Hickling, and Victim/Witness Advocate Marcia Rinker. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Glenn Kirschner and Gilead Light, who investigated and prosecuted the case.
Local Woman Sentenced on Gun and Drug ChargesRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Candice Maxwell, 29, of Mobile, was sentenced last week in federal court on charges involving her illegal possession of firearms and her possession with intent to distribute 30 grams of methamphetamine. Court documents reflect that Maxwell, an admitted drug user, was found in possession of several firearms during the search of her apartment in Saraland in 2016. In June of 2016, she was arrested on state gun-related charges, and corrections officers at the jail found that she had methamphetamine concealed in her clothing at that time. Maxwell pled guilty to both federal charges in November of 2016.
United States District Court Judge Callie V. S. Granade sentenced Maxwell to 30 months of imprisonment, followed by a four-year term of supervised release. The judge ordered that sentences on the two charges be served concurrently. Maxwell will undergo treatment for drug abuse while in prison and as a condition of her supervised release. No fine was imposed, but the judge ordered that Maxwell pay mandatory $200 special assessments.
The case was investigated by the Department of Homeland Security Investigations and the Mobile County Sheriff’s Office. Assistant United States Attorney Gloria Bedwell prosecuted it in the United States Attorney’s Office.
Liberian National Found Guilty of Immigration Fraud and PerjuryRead the Press Release
PHILADELPHIA –Mohammed Jabbateh, a/k/a “Jungle Jabbah,”51, a citizen of Liberia residing in East Lansdowne, PA, was found guilty of two counts of fraud in immigration documents and two counts of perjury, announced Acting United States Attorney Louis D. Lappen and Special Agent-in-Charge Marlon Miller, Homeland Security Investigations. In December of 1998, when making application for asylum and later for permanent legal residency, the defendant was not truthful about his activities during Liberia’s first civil war while he was a member of the United Liberation Movement of Liberia for Democracy (ULIMO) and later ULIMO-K, rebel groups that battled for control of Liberia. Jabbateh was a battalion commander in ULIMO and ULIMO-K.
In January of 1999, during the asylum seeking process, Jabbateh was interviewed by a United States asylum officer for purposes of determining whether his application should be granted. To this end, he jury heard evidence that Jabbateh falsely responded "no" to the following two queries: 1) "[H]ave you ever committed a crime?"; and 2) "[H]ave you ever harmed anyone else?" On or about December 23, 1999, Jabbateh, largely based upon his answers to these and other questions posed on his Form I-589 asylum application and his answers to questions posed during his asylum application interview, received asylum.
Later, when Jabbateh applied for legal permanent residency by filing a Form I-485 with United States immigration authorities, he falsely responded "No" to the following two questions:
“Have you ever engaged in genocide, or otherwise ordered, incited, assisted or otherwise participated in the killing of any person because of race, religion, nationality, ethnic origin or political opinion?” and
“Are you under a final order of civil penalty for violating section 274C of the Immigration and Nationality Act for use of fraudulent documents or have you, by fraud or willful misrepresentation of a material fact, ever sought to procure, procured, or procured, a visa, other documentation, or entry into the U.S. or any immigration benefit?”
The jury found that the defendant knew his answers to these two questions were false in that he had ordered, incited, assisted, and otherwise participated in the killing of any person because of religion, nationality, ethnic origin, and political opinion; and knew that he had procured asylum in the United States by fraud and willful misrepresentation of material fact.
During the course of two weeks of testimony from over two dozen witnesses that included 17 Liberian victims and eyewitnesses, the jury heard evidence that Jabbateh, as a ULIMO commander from approximately 1992 through 1995, either personally committed, or ordered ULIMO fighters under his command to commit the following nonexclusive list of acts: 1) the murder of civilian noncombatants; 2) the sexual enslavement of women; 3) the public raping of women; 4) the maiming of civilian noncombatants; 5) the torturing of civilian noncombatants 6) the enslavement of civilian noncombatants; 7) the conscription of child soldiers; 8) the execution of prisoners of war; 9) the desecration and mutilation of corpses and ritual consumption of human flesh, including human hearts; and 10) the killing persons because of race, religion, nationality, ethnic origin or political opinion.
“Jabbateh sought to escape to the United States and start anew, where he lied about his extensive and horrific criminal background on federal immigration forms and to the faces of U.S. immigration officers,” said Acting United States Attorney Louis D. Lappen. “Jabbateh committed atrocities in Liberia that ravaged communities in ways that will be felt for generations. This office has rarely if ever seen such an abuse of our immigration process, and we are incredibly proud of the efforts of law enforcement and the victim witnesses who helped bring this man to justice. We thank the jury for its just and proper verdict of guilty on all counts.”
"The United States will not be a safe haven for human rights violators and war criminals,” said Marlon Miller, special agent in charge of HSI’s Philadelphia office. “Today’s verdict will help bring justice to the victims of Mr. Jabbateh's atrocities, for having survived the suffering he inflicted during the Liberian Civil War. HSI will continue to use every tool at our disposal to ensure that those who have committed such acts abroad never evade justice and accountability for their crimes by hiding among their victims in the United States.”
At sentencing, Jabbateh faces a maximum possible sentence of 30 years in prison, a possible fine, a $400 special assessment, and a period of supervised release.
The case was investigated by U.S. Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr. and Nelson S.T. Thayer, Jr.
Leading Electrolytic Capacitor Manufacturer Indicted for Price FixingRead the Press Release
A federal grand jury returned an indictment against an electrolytic capacitor manufacturer for participating in a conspiracy to fix prices for electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.
The indictment, filed in the U.S. District Court for the Northern District of California in San Francisco, charges that Nippon Chemi-Con Corporation, based in Japan, conspired to suppress and eliminate competition for electrolytic capacitors from as early as September 1997 until January 2014. Three current Nippon Chemi-Con executives, and one former Nippon Chemi-Con executive, were previously indicted for their participation in the conspiracy: Takuro Isawa, Takeshi Matsuzaka, Yasutoshi Ohno, and Kaname Takahashi.
“Today’s indictment affirms the Antitrust Division’s commitment to holding companies accountable for conspiring to cheat American consumers,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Division will prosecute companies—no matter where they are located—that violate U.S. antitrust laws.”
According to the one-count felony charge, Nippon Chemi-Con carried out the conspiracy by agreeing with co-conspirators to fix prices of electrolytic capacitors during meetings and other communications. Capacitors were then sold in accordance with these agreements. As part of the conspiracy, Nippon Chemi-Con and its co-conspirators took steps to conceal the conspiracy, including the use of code names and providing misleading justifications for prices and bids submitted to customers in order to cover up their collusive conduct.
As a result of the government’s ongoing investigation, eight companies and ten individuals have been charged with participating in a conspiracy to fix prices of electrolytic capacitors. Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engines and airbag systems, home appliances, and office equipment.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Today’s charge results from ongoing federal antitrust investigations being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry. Anyone with information related to the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit https://www.justice.gov/atr/report-violations, or call the FBI tip line at 415-553-7400.
Leaders of Multi-State Drug Distribution Ring Convicted Following Ten-Day Jury TrialRead the Press Release
Three key players in a drug distribution ring that operated over a large swath of Washington State were found guilty this week following a ten day jury trial, announced U.S. Attorney Annette L. Hayes. Fourteen other co-conspirators charged in the case pleaded guilty in the months following their arrests in November 2016. The drug ring distributed heroin, methamphetamine and cocaine in King, Snohomish, Skagit and Whatcom Counties. The conspirators operated stash houses on Camano Island and in Mount Vernon, as well as in Yakima and Franklin Counties. They had drug connections in Nevada and California. The jury deliberated about five hours before returning a guilty verdict. U.S. District Judge James L. Robart scheduled sentencing for January 16, 2018.
The defendants convicted at trial of participating in the drug conspiracy are BALTAZAR REYES-GARCIA 45, of Camano Island, WA, HECTOR CONTRERAS-IBARRA, 33 of Pasco, WA, and ANGEL SERRANO-CARRENO, 30, of Mt. Vernon, WA. All three men were convicted of conspiracy to distribute controlled substances and various specific counts of drug distribution. SERRANO-CARRENO was also convicted of possession of heroin with intent to distribute and illegal possession of ammunition. Due to the amount of drugs involved in the conspiracy, the defendants face mandatory minimum ten year sentences.
As court records and evidence admitted at trial demonstrate, law enforcement investigated the drug ring in late 2015, and early 2016, utilizing pole cameras, confidential sources, wiretaps and undercover officers to document the drug distribution activity, and identify the leaders of the ring. In November 2016, law enforcement served search warrants on more than two dozen locations seizing two kilos of cocaine, more than $180,000 cash, and more than 20 firearms – including a loaded AK47. Those totals were in addition to the seizures made during the investigation: eight kilos of methamphetamine, two kilos of cocaine, nearly a kilo of heroin, and more than $117,000 in cash.
The investigation was named “Operation Car Wash” as some of the conspirators would meet up to conduct their deals at a Mount Vernon car wash.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by: the Drug Enforcement Administration (DEA) in conjunction with the FBI, Whatcom Gang & Drug Task Force and Skagit County Inter-Agency Drug Task Force. The investigation was supported by: the Auburn Police Department, Snohomish County Sheriff’s Office, Snohomish County Regional Drug & Gang Task Force, Mt. Vernon Police Department, Washington State Patrol, Whatcom County Sheriff’s Office, Skagit County Sheriff’s Office, Everett Police Department and Seattle Police Department. Additional assistance was provided by HSI; CBP, and Royal Canadian Mounted Police.
The case is being prosecuted by Assistant United States Attorneys Kate Vaughan and Steven Masada.
Law Enforcement and Community Members United Against Hate and Intolerance at A Special Event Held at California State University, SacramentoRead the Press Release
Sacramento, Calif. — On Tuesday, approximately 300 students and community members gathered to watch a movie telling the story of one of the deadliest hate crimes in recent U.S. history. The screening, which was held at the Harper Alumni Center on the Sacramento State University campus, was followed by a discussion between representatives from law enforcement agencies and community leaders, U.S. Attorney Phillip A. Talbert announced.
The acclaimed film, “Waking in Oak Creek,” tells the empowering story of how the community of Oak Creek, Wisconsin, responded when six worshipers at a Sikh Temple were killed by a white supremacist during prayer services in 2012. The entire community and law enforcement worked together to overcome tragedy and stand up to hate.
U.S. Attorney Talbert stated: “In the aftermath of the deadly attack on the Sikh Gurdwara in Oak Creek, Wisconsin, the entire community rallied together to turn tragedy into an opportunity to unite against hate. The community found positive and inclusive ways to commemorate the victims, which included Sikh worshippers as well as law enforcement officers, and to raise awareness about hate crimes, particularly those directed at Sikhs. I am proud that my office could host a screening of the film that documents that community’s inspiring response to hate and facilitate a discussion about how our community can work together to prevent these crimes from happening in our district.”
The U.S. Attorney’s Office organized this event in partnership with the FBI; the Sacramento Sikh and Muslim Communities; Sikh Temple Sacramento; the Tarbiya Institute; the Interfaith Council of Greater Sacramento; United Sikhs; Sacramento State University, including the College of Health and Human Services, College of Social Sciences and Interdisciplinary Studies, Division of Criminal Justice, Department of Sociology, and the University Police Department; Sacramento Police Department; Sacramento County Sheriff’s Office; and the Sacramento County District Attorney’s Office.
After the screening of the 33-minute film, U.S. Attorney Talbert moderated a panel discussion where law enforcement officials and Sikh and Muslim community leaders offered their perspectives on identifying opportunities and strategies to collaborate in the fight against hate. The panel members were FBI Assistant Special Agent in Charge Susan Ferensic, Sikh Community leader and filmmaker AJ Singh, Imam and Founder of the Tarbiya Institute Dr. Mohamed Abdul-Azeez, Sacramento Police Chief Daniel Hahn, Sacramento County Sheriff Scott Jones, and Sacramento County District Attorney Anne Marie Schubert.
The panel discussion was followed by a lively and collaborative question and answer session that gave attendees the opportunity to engage with panelists and have their voices heard on this important issue.
Earlier, U.S. Attorney Talbert hosted similar screening of the film and panel discussions with local community and law enforcement leaders at California State University, Bakersfield and California State University, Fresno.
“Waking in Oak Creek” was produced in conjunction with the U.S. Department of Justice Community Oriented Policing Services (COPS) Office as part of the Not In Our Town: Working Together for Safe, Inclusive Communities Initiative.
Las Cruces Man Pleads Guilty to Unlawfully Possessing Firearm While Being Subject to a Protective OrderRead the Press Release
ALBUQUERQUE – Joseph Torrez, 31, of Las Cruces, N.M., pled guilty yesterday afternoon in federal court to violating federal firearms laws by unlawfully possessing a firearm and ammunition while being subject to a protective order. Torrez’s plea agreement recommends a sentence within the range of 15 to 18 months in prison followed by a term of supervised release to be determined by the court.
Torrez was arrested on June 1, 2017, on a criminal complaint charging him with violating the federal firearms laws on Feb. 7, 2017, in Dona Ana County, N.M. According to the criminal complaint, on Feb. 11, 2017, a fugitive investigator of the New Mexico Division of Adult Probation and Parole (NMDAPP) observed Torrez carry a gun case containing a rifle into a gun shop in Las Cruces. Based on that information, an officer of the NMDAPP obtained a state arrest warrant for Torrez, who was prohibited from possessing firearms as a condition of the probationary term he was serving as the result of a misdemeanor conviction for aggravated assault. On Feb. 13, 2017, Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) assisted the NMDAPP in arresting Torrez and executing a probationary inspection at Torrez’s residence. During the search, the agents and officers seized a shotgun and boxes of ammunition.
During yesterday’s proceedings, Torrez pled guilty to a felony information charging him with possession of a firearm while under a court order of protection. In entering the guilty plea, Torrez admitted that on Feb. 7, 2017, he possessed an AR-15 rifle and numerous rounds of ammunition. Torrez further admitted that on Feb. 7, 2017, he was subject to a protective order placed against him on June 8, 2012 that expires on June 8, 2026, and prohibits Torrez from possessing firearms or ammunition. A sentencing hearing has yet to be scheduled.
The case against Torrez was investigated by the Las Cruces office of ATF and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Laguna Pueblo Man Pleads Guilty to Federal Statutory Rape ChargeRead the Press Release
ALBUQUERQUE – Quentin DeLoris, 23, an enrolled member of the Laguna Pueblo who resides in Mesita Laguna, N.M., pled guilty today in federal court in Albuquerque, N.M., to a statutory rape charge. Under the terms of his plea agreement, DeLoris will be sentenced to 15 months in federal prison followed by a term of supervised release to be determined by the court. DeLoris will also be required to register as a sex offender.
During today’s proceedings, DeLoris pled guilty to a felony information charging him with committing statutory rape on Dec. 25, 2016, on the Pueblo of Laguna in Cibola County, N.M. In entering the guilty plea, DeLoris admitted that on Dec. 25, 2016, he engaged in a sexual act with the victim who was between the age of 12 and 16 years. DeLoris’s sentencing hearing has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA Office of Justice Services. Special Assistant U.S. Attorney Lucy B. Solimon 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.
Judge Sentences Pittsburgh Man to 5 Years in Prison for Heroin Distribution SchemeRead the Press Release
PITTSBURGH – Christopher Bradley-Bey was sentenced to 60 months in federal prison for conspiring to distribute at least 100 grams of heroin, Acting United States Attorney Soo C. Song announced today.
Bradley-Bey, age 24, formerly of Pittsburgh, Pennsylvania, was sentenced by United States District Court Judge Nora Barry Fischer. Judge Fischer ordered that Bradley-Bey serve four years of supervised release after he is released from prison. Bey’s sentencing guideline range for the heroin trafficking conviction was increased for his possession of a dangerous weapon.
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 Department of Homeland Security/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.
Judge Sentences Former Pittsburgh Man to 10 Years in Prison for Heroin Trafficking ConspiracyRead the Press Release
PITTSBURGH – Holman Brown was sentenced to 120 months in federal prison for conspiring to distribute at least one kilogram of heroin, Acting United States Attorney Soo C. Song announced today.
Brown, age 26, formerly of Pittsburgh, Pennsylvania, was sentenced by United States District Court Judge Nora Barry Fischer. Judge Fischer ordered that Brown serve five years of supervised release after he is released from prison. Brown’s sentencing guideline range for the heroin trafficking conviction was increased for possession of a dangerous weapon, for maintaining a premises for the purpose of distributing a controlled substance, for management or supervision of criminal activity that involved five or more participants, and for his use of violence or credible threat to use violence.
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 Department of Homeland Security/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.
Jacksonville Businessman Pleads Guilty to FraudRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Ashish Bahl (52, Jacksonville), who also resides in Atlanta, Georgia, today pleaded guilty to conspiracy to commit mail and wire fraud. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Bahl engaged in fraudulent business activities related to the SunTrust Bank building located near the Jacksonville Landing. From September 2005 to March 2015, the ownership of the building was structured as a business condominium governed by certain charter documents. In 2009, Parador Partners, LLC, which included Bahl as an owner, purchased a majority interest in the building. Parador owned approximately 73% of the office condos in the building, and carried an even greater share of the operating expenses. The condominium owners were members of an association called The River Watch at City Centre Condominium Association, Inc. Based upon Parador’s majority ownership of the building, Bahl controlled the board of directors for the association and was associated with the management company for the building.
Bahl significantly inflated special assessments for various building expenses and intentionally led the other condo owners to believe that the invoices they were presented were correct and accurate, when in fact, they were inflated. Bahl, with the assistance of others, made agreements with contractors to submit inflated invoices for various special assessment maintenance issues, which were paid by the condo association. Then, as part of an agreement with the contractor, the majority of the invoiced amount was provided as a “kick-back” to another one of Bahl’s companies, Dellwood Associates.
In addition to defrauding condo owners, Bahl also used River Watch’s bank account for personal expenses, including replacing an air conditioner ($5,457) in his Atlanta home, and remodeling his children’s bedroom ($7,150).
The total amount Bahl received as a result of the fraud was $135,396.06
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Special Assistant United States Attorney Mark B. Devereaux and Assistant United States Attorney Jason P. Mehta.
Isleta Pueblo Man Sentenced to Seven Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Juan Larry Lujan, 63, a member and resident of Isleta Pueblo, N.M., was sentenced today in federal court in Santa Fe, N.M., to 84 months in prison for his conviction on an abusive sexual contact charge. Lujan will be on supervised release for five years after completing his prison sentence and also will be required to register as a sex offender.
Lujan was arrested in Feb. 2016, on an indictment charging with sexually abusing a child under the age of 12 on the Pueblo of Isleta in Valencia County, N.M.
On Nov. 16, 2016, Lujan pled guilty to a felony information charging him with abusive sexual contact. In entering the guilty plea, Lujan admitted sexually abusing a child under the age of 12 between Nov. 2011 and Nov. 2013.
This case was investigated by the Albuquerque office of the FBI. The case was prosecuted by Assistant U.S. Attorney Joseph Spindle as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Iowa Sex Offender Indicted for Attempting to Produce Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Ames, Iowa sex offender was indicted by a federal grand jury today on child sexual exploitation charges.
John Jordan Lundberg, 30, of Ames, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Lundberg on Friday, Oct. 13, 2017.
Lundberg was convicted on Sept. 15, 2017 for enticement of a minor for indecent purposes. Lundberg, who was granted a deferred judgment and placed on probation for three years, was arrested on Oct. 10, 2016 at the Meskwaki Bingo Casino during an undercover operation when he responded to a Craigslist advertisement and arranged a sexual encounter with a (fictitious) 15-year-old female.
The federal indictment alleges that Lundberg attempted to produce child pornography on Sept. 25, 2017. The indictment also charges Lundberg with transferring obscene material to a person who he believed was under the age of 16 on Sept. 25, 2017.
According to an affidavit filed in support of the original criminal complaint, Lundberg responded to an online advertisement that was posted by an undercover Boone County Sheriff’s Department detective in an effort to seek out potential sexual predators. The undercover officer posed as a mother offering her 13-year-old daughter for sex. The undercover officer also posed as the 13-year-old daughter, the affidavit says, and Lundberg communicated with the “daughter” via text message. Lundberg allegedly sent the “daughter” sexually explicit photos and video of himself and of others. Lundberg allegedly encouraged the “daughter” to send him nude photos of herself.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Boone County, Mo., Sheriff’s Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Houston Man Guilty of Drug Trafficking in East TexasRead the Press Release
BEAUMONT, Texas – A 35-year-old Houston man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jeffrey Clive Arnold pleaded guilty to conspiracy to possess with intent to distribute methamphetamine today before U.S. Magistrate Judge Keith Giblin.
According to information presented in court, in August 2015, law enforcement officers investigating suspected drug trafficking of methamphetamine through Southeast Texas. Surveillance revealed Arnold was supplying large quantities of methamphetamine to others for distribution. Arnold was stopped leaving a Houston residence and found to be in possession of drugs and cash. A backpack with over $39,000 in cash was located at the Houston residence and it was determined to belong to Arnold. Arnold was indicted by a federal grand jury on Feb. 1, 2017.
Under federal statutes, Arnold faces a minimum of 10 years and up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Hanover Man Sentenced for Witness TamperingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on October 17, 2017, U.S. District Court Chief Judge Christopher C. Conner sentenced David K. Shaqfeh, age 49, of Hanover, Pennsylvania, to two years’ probation, five months’ home confinement, and a $55,000 fine for witness tampering.
According to United States Attorney Bruce D. Brandler, Shaqfeh solicited and encouraged an unidentified witness to give a false statement about supplemental rent payments Shaqfeh received during 2014 and 2015, for a U.S. Department of Housing and Urban Development (HUD) subsidized rental property in Levittown, Pennsylvania, to investigators from the HUD Office of Inspector General.
Shaqfeh also agreed to pay $171,831 to settle a False Claims Act violation. In the agreement, the United States alleged that Shaqfeh participated as a landlord in the Housing Choice Voucher Program (HCVP) and solicited and received unauthorized side payments from a HCVP participant over and above the authorized rent. HCVP is a program whereby the HUD provides rental subsidies for eligible low-income tenants who locate acceptable rental units on the private market.
The settlement agreement resolved allegations that Shaqfeh submitted a request for tenancy approval to HUD for a HCVP tenant, which was not approved because the rent exceeded the maximum initial rent burden under HUD guidelines. Thereafter, Shaqfeh submitted another request for tenancy approval to HUD for the same HCVP participant with a lower rent amount, which was approved by HUD. However, Shaqfeh continued to collect additional side payments from the HCVP participant to make up for the lower lease amount. HUD’s payments to Shaqfeh were contingent upon his certification that he would only charge the amount of rent approved by HUD and not receive additional rent payments from the HCVP participant. Additionally, HUD would not have paid Shaqfeh on two other HUD contracts had it known he was charging an HCVP participant additional rent on another HUD contract. Shaqfeh has paid $171,831 to resolve allegations that he violated the False Claims Act.
The case was investigated by the U.S. Department of Housing and Urban Development’s, Office of Inspector General. Assistant United States Attorneys Kim Douglas Daniel and Melissa Swauger prosecuted the case.
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Guilford Man Sentenced to More Than 8 Years in Prison for Role in Fraudulent Oxycodone Prescription SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that BRIAN PAGE, 43, of Guilford, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 97 months of imprisonment, followed by four years of supervised release, for his role in a scheme to distribute oxycodone that was obtained through fraudulent prescriptions.
According to court documents and statements made in court, in 2012, members of the Drug Enforcement Administration’s New Haven Tactical Diversion Squad began an investigation into a drug trafficking organization that manufactured fraudulent prescriptions for oxycodone and distributed the drug in the greater New Haven area. The investigation revealed that David Thompson, also known as “Super Dave,” headed the organization that obtained the personal identifying information of medical practitioners and used the information to create fraudulent prescriptions. Organization members also purchased legitimate prescriptions for oxycodone from individuals. The organization then used individuals, or “runners,” to fill the fraudulent prescriptions at pharmacies throughout Connecticut. Once a runner provided his or her personal information to a member of the organization, the runner’s information was kept on file and used to create other fraudulent prescriptions.
Thompson recruited PAGE into the conspiracy, and PAGE soon played a critical role in the scheme by using a software program on his computer to print prescriptions that appeared to be real. Once he began manufacturing prescriptions himself, PAGE recruited his own network of runners to fill them.
The investigation revealed that, between 2013 and 2015, the organization stole the personal identifying information of more than 50 doctors and medical professionals and fraudulently obtained more than 80,000 oxycodone pills. Investigators identified more than 800 fraudulent prescriptions passed by members of the organization using more than 270 different “patient” names.
Nearly all of the runners employed by the conspiracy held state-sponsored medical insurance, so the costs of the prescriptions were billed to Medicaid. Members of the drug trafficking organization then sold the oxycodone for $20 to $30 per 30 milligram pill.
Twelve individuals were charged and convicted as a result of the investigation.
On April 14, 2015, PAGE pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone.
Thompson pleaded guilty to the same charge and, on July 11, 2017, was sentenced to 14 years of imprisonment.
The DEA Tactical Diversion Squad includes members from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. This case is being prosecuted by Assistant U.S. Attorneys Amy C. Brown and Robert M. Spector.
Great Falls Man Sentenced to Prison for Possession of Child PornographyRead the Press Release
GREAT FALLS-- A Great Falls, Montana man was sentenced today for possession of child pornography. United States District Judge Brian M. Morris sentenced Manuel David Orozco, 42, to 120 months in prison, 10 years of supervised release, and a $5,100 special assessment. When he was arrested, Orozco was a Tier I sex offender, because he had been convicted of sex offenses against children in the state of Oregon.
The charge against Orozco was the result of an investigation by the Department of Homeland Security, the Intermountain West Regional Computer Forensic Laboratory Computer Analysis Response Team, the Great Falls Police Department, Cascade County, and the Internet Crimes Against Children Task Force. Assistant United States Attorney Tom Bartleson prosecuted the case.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
Galveston Resident Convicted of Two Child Pornography ChargesRead the Press Release
HOUSTON – A 26-year-old man from Galveston County has entered a guilty plea to receipt and possession of child pornography, announced Acting U.S. Attorney Abe Martinez.
Lavelas Luckey first came to the attention of law enforcement after multiple images of child pornography were found associated with his online account. Authorities later conducted a search of Luckey’s residence which eventually led to the discovery of 107 videos and 638 images of child pornography.
Luckey admitted ownership of the child pornography as well as the online account he used to obtain it.
During the plea hearing today, Luckey admitted to using peer-to-peer software to search for, download and obtain child pornography. He also admitted to distributing the child pornography through his online account.
Sentencing has been set for Dec. 29, 2017, before U.S. District Judge George C. Hanks. At that time Luckey faces a minimum of five and up to 20 years imprisonment for receipt of child pornography and up to 10 years for possession of child pornography. Each count also carries a possible $250,000 maximum fine.
The Pearland Police Department and the FBI conducted the investigation.
Assistant U.S. Attorney Julie N. Searle 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."
Fugitive Lawyer and Accomplice Indicted for EscapeRead the Press Release
A former eastern Kentucky social security disability lawyer and an accomplice were charged in a federal indictment with various offenses related to the lawyer’s escape from home confinement and his failure to appear for sentencing.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Amy S. Hess of the FBI Louisville, Kentucky Field Division and Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division made the announcement.
Eric Christopher Conn, 56, of Pikeville, Kentucky, the former disability lawyer, and Curtis Wyatt, 47, of Raccoon, Kentucky, his alleged accomplice, were charged in a seven-count indictment returned on Sept. 6, in the Eastern District of Kentucky in Lexington. The indictment was unsealed prior to Wyatt’s initial appearance and arraignment today before U.S. Magistrate Judge Robert E. Wier of the Eastern District of Kentucky. Wyatt entered pleas of not guilty and was released on bond pending his trial, which is scheduled for Dec. 18, before U.S. District Judge Danny C. Reeves. Conn remains a fugitive.
The indictment charges Conn and Wyatt with one count of conspiracy to escape and one count of conspiracy to fail to appear for sentencing. Conn is also charged with one count of escape and one count of failing to appear. Wyatt is also charged with one count each of assisting in Conn’s escape, aiding and abetting Conn’s failure to appear, and making a false statement to the FBI.
The indictment alleges that Conn, while on home confinement, escaped from custody by severing an electronic monitoring device from his ankle during a court-approved visit to Lexington on June 2, and fled to the Mexican border in a vehicle delivered to him by Wyatt a day earlier. The indictment further alleges that Wyatt, at Conn’s direction and prior to Conn’s escape, crossed into Mexico at two different pedestrian checkpoints to assess security procedures for individuals exiting the United States in an effort to aid Conn in escaping prior to Conn’s sentencing hearing. According to the indictment, Conn ultimately failed to appear for his sentencing hearing on July 14.
Conn was indicted last year, along with a former Social Security administrative law judge and a clinical psychologist, in an 18-count indictment charging conspiracy, mail and wire fraud, false statements, money laundering and other related offenses in connection with a $600 million social security disability fraud scheme. Conn previously pleaded guilty on March 24, to a two-count information charging him with theft of government money and paying illegal gratuities, and was sentenced in absentia on July 14, to 12 years in prison on those charges. Conn remains charged under the original indictment.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI is offering a reward of up to $20,000 for information leading to the arrest of Eric Christopher Conn. Anyone with information relating to Conn’s whereabouts should contact their local FBI office or the nearest American Embassy or Consulate.
The SSA-OIG and FBI investigated the case. Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorney Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
Fourth Texas Man Pleads Guilty to Hate Crime for Assault Based on Victim’s Sexual OrientationRead the Press Release
Anthony Shelton, 19, pleaded guilty yesterday to assaulting a man because of the victim’s sexual orientation, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division announced.
According to the plea agreement, Shelton admitted that he and Nigel Garrett used Grindr, a social media dating platform for gay men, to arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted the victim, and made derogatory statements to the victim for being gay. The defendants brandished a firearm during the home invasion, and they stole the victim’s property, including his motor vehicle.
A federal grand jury previously had returned an eighteen-count superseding indictment, against Shelton and three other men, that included charges for hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes.The indictment also charged the defendants with conspiring to cause bodily injury because of the victims’ sexual orientation during four home invasions in Plano, Frisco, and Aubrey, Texas, from January 17 to February 7, 2017. Nigel Garrett, Chancler Encalade, and Cameron Ajiduah subsequently pleaded guilty to hate crime charges from this indictment, and all three await sentencing.
“Hate crimes are violent crimes that attack the fundamental principles of the United States to be free from fear of violence because of your sexual orientation, gender identity, race, color, religion, or national origin,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to aggressively investigate and prosecute hate crimes.”
"Crimes of violence are an investigative priority for the U.S. Attorney's Office," said Acting U.S. Attorney Brit Featherston. "An assault perpetrated because of one's race, ethnicity, religion, nationality, sexual orientation, or among other prohibited factors, is an attack on American values. We will leave no stone un-turned to prosecute hate crimes."
Shelton faces a maximum statutory penalty of life in prison and a $250,000 fine for his guilty plea to the hate crime charge. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The investigation is being conducted by the ATF, the Plano Police Department, and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
Four People Charged in Mortgage Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A real estate investor, a builder, a mortgage loan officer, and a real estate settlement attorney were arrested today and charged with using “straw buyers” to fraudulently obtain mortgage loans from a bank, Acting U.S. Attorney William E. Fitzpatrick announced.
Victor Santos, a/k/a “Vitor Santos,” 57, of Wachtung, New Jersey; Arsenio Santos, a/k/a “Gaspar Santos,” 50, of Warren, New Jersey; Fausto Simoes, 64, of Millington, New Jersey; and, Raquel Casalinho, 37, of Union, New Jersey, are charged by complaint with one count each of conspiracy to commit bank fraud. They are expected to appear at 2 p.m. today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint:
From September 2007 through November 2008, Victor Santos, a real estate investor; Arsenio Santos, a builder and Victor’s cousin; Casalinho, a junior home mortgage consultant at the victim bank and Victor’s niece; and Simoes, a real estate settlement attorney, and others allegedly conspired to fraudulently obtain mortgage loans with a total value of more than $5 million.
Victor Santos, Arsenio Santos, and their conspirators allegedly recruited straw buyers to purchase properties in Newark and obtained their identifying information, including Social Security cards and drivers’ licenses. A “straw buyer” was an individual who purchased a property for another in order to conceal the identity of the actual purchaser, usually in exchange for a fee.
In exchange for the use of the straw buyers’ identity and credit history, Victor Santos, Arsenio Santos, and others allegedly agreed to pay each of the straw buyers a fee of approximately $5,000, provide the straw buyer’s down payment and cash required for closing, secure tenants to lease the purchased property and make the mortgage payments on each of the fraudulently obtained mortgages. These secret agreements were not disclosed to the bank.
In accordance with Victor Santos’ instructions, the straw buyers’ information was provided to Casalinho and was used to prepare fraudulent mortgage loan applications that contained a variety of false statements, including the identity of the actual buyer. For the two representative schemes highlighted in the complaint, Casalinho, Victor Santos, Arsenio Santos, and their conspirators prepared and submitted mortgage applications containing false information to the bank and obtained loans totaling more than $900,000. The conspirators allegedly arranged transactions for the Newark properties whereby the straw buyers would nominally purchase the properties for far more than the sellers had agreed to sell them, and the conspirators kept the difference between the contract price and the amounts the sellers received.
Simoes was the closing attorney on approximately 10 of the fraudulent transactions and signed and certified as true the final settlement statements. These statements falsely stated that the cash required for closing for each transaction came from the straw buyer. In fact, Victor Santos and his conspirators provided those funds to Simoes and the funds were deposited into Simoes’ attorney trust account. For certain transactions, a shell company – whose bank account was controlled by Victor Santos and a conspirator and to which funds from fraudulently obtained mortgage loans were disbursed – was the source of the cashier’s checks given to Simoes to fund the buyer’s cash required at closing. For other transactions, down payments came from an account owned and controlled by Arsenio Santos and Victor Santos, the proceeds of the mortgage loan itself after funding or closing, or from the proceeds of a previously obtained fraudulent loan.
The conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross gain to the defendants or twice the gross loss to others whichever is greater.
Acting U.S. Attorney Fitzpatrick credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher of the Newark office, with the investigation leading to today’s charges.
The government is represented by Special Assistant U.S. Attorneys Kevin DiGregory and Charlie Divine and Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Fort Worth Man Admits to Child Sex TraffickingRead the Press Release
DALLAS — Marquist Fulcher, aka “Keezie,” 28, of Fort Worth, Texas, pleaded guilty yesterday before U.S. Magistrate Judge Renee Harris Toliver, to one count of conspiracy to commit child sex trafficking, announced U.S. Attorney John Parker of the Northern District of Texas.
Fulcher faces a maximum penalty of up to life in prison and a $250,000 fine. Fulcher will remain in custody pending sentencing which is set for January 31, 2018.
In May 2017 a federal grand jury in Dallas returned an indictment charging Fulcher along with Chapoleon Fischer, aka “Kidd,” 28, Shatara Armstrong, 31, Marcus Speed, 26, and Tiffany Gideon, 22 with conspiracy to engage in child sex trafficking.
According to plea documents filed in Fulcher’s case, in early 2015, Fulcher began acting as a pimp over Gideon, and eventually several other young girls and women. Specifically, between 2015 and October l, 2016, he facilitated the commercial sex acts of thirteen-year-old Jane Doe 1, seventeen-year-old Jane Doe 2 and seventeen-year-old Jane Doe 4, among others. In late 2015, Armstrong began assisting Fulcher in his prostitution enterprise. Fulcher and Armstrong rented rooms at various hotels for Jane Doe 1, Jane Doe 2 and Jane Doe 4, and others, to use to engage in commercial sex acts. Both Fulcher and Armstrong knew these girls were underage because they told them. Fulcher and Armstrong also created and posted advertisements on the commercial sex website Backpage.com for the girls and women, who in turn gave the proceeds from their commercial sex acts to Fulcher.
Fulcher also worked with other pimps, including Speed and Fischer, as part of a sex trafficking enterprise. The organization recruited victims in various ways, including finding them on the internet. Members of the group would trade girls amongst themselves as well. The pimps in this organization, including Fulcher, used violence and threats of violence as a means to control the victims.
The Fort Worth Police Department and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Trafficking Taskforce, investigated the case. Assistant U.S. Attorneys Cara Foos Pierce, Myria Boehm and P.J. Meitl are prosecuting.
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Former Tribal Executive Sentenced to Federal Prison for EmbezzlementRead the Press Release
United States Attorney Randolph J. Seiler announced today that a former executive board member of the Big Coulee District of the Sisseton-Wahpeton Oyate Tribe was sentenced in federal court on October 13, 2017 to 3 months of imprisonment. Ann German, 59, of Peever, was also ordered to pay restitution in the amount of $11,475, and to serve three years of supervised release after serving her prison sentence.
According to court documents, from approximately June 2010 through March 2013, German and her co-defendants conspired to embezzle, steal, and knowingly convert to their own use funds from the Big Coulee District of the Sisseton-Wahpeton Oyate Tribe, an Indian tribal organization. The Big Coulee District is a political subdivision of the Tribe. German was an employee of the District, and her co-defendants were all elected executive board members of the District at the time.
During the conspiracy, they stole a total of $81,542.50 from the District. German received $11,475 of the stolen funds and used the funds for her own purposes.
The investigation was conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Tribal Executive Sentenced to Federal Prison for EmbezzlementRead the Press Release
United States Attorney Randolph J. Seiler announced today that a former executive board member of the Old Agency District of the Sisseton-Wahpeton Oyate Tribe was sentenced in federal court to 6 months of imprisonment. Leslie Barse, Sr., 74, of Peever, South Dakota, was also ordered to pay restitution in the amount of $147,312, and to serve three years of supervised release after serving his prison sentence.
According to court documents, beginning on or about January 20, 2011, and continuing through March 9, 2013, in the District of South Dakota and elsewhere, Leslie Barse, Sr. formed an agreement with others to embezzle, steal, and knowingly convert to their own use, funds from the Old Agency District of the Sisseton Wahpeton Oyate Tribe (“Tribe”), an Indian tribal organization. Barse joined the agreement knowing its illegal purpose. The Old Agency District (“District”) is a subdivision of the Tribe.
Barse, among others, were elected executive board members of the District. During the relevant time period, the District's executive board members were entitled to receive a monthly stipend for their service. From approximately January 2011 through March 2013, Barse and others stole money from the District by writing checks to themselves for payroll, stipends, assistance, travel, and other miscellaneous reasons. Barse and his co-defendants stole a total of $360,499 from the District. The Defendant received $147,312 of the stolen funds and used the funds for his own purposes.
The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Cornell Student Pleads Guilty to Loan FraudRead the Press Release
SYRACUSE, NEW YORK – Cavya Chandra, 26, of Carmel, Indiana, pled guilty today in federal court in Syracuse to one count of student loan fraud, announced Acting United States Attorney Grant C. Jaquith and Debbi Mayer, Assistant Special Agent in Charge, U.S. Department of Education-Office of Inspector General (ED OIG), Northeastern Regional Office.
As part of her guilty plea, Chandra admitted that between 2008 and 2014 she obtained admission to, and attended, three universities—Carnegie Mellon University in Pittsburgh, Pennsylvania, Cornell University in Ithaca, New York, and Indiana University-Purdue University Indianapolis (“IUPUI”)—by forging various documents, including academic transcripts and letters of recommendation. The charge to which Chandra pled guilty relates to her fraudulent acceptance of federal student loan money while attending Cornell, but her written plea agreement lays out Chandra’s broader pattern of defrauding several universities.
As part of her guilty plea, Chandra admitted that in 2008 she was denied admission to the freshman class at Cornell University, after which she applied to Carnegie Mellon University. In making that application, Chandra submitted a forged letter of recommendation from a high school teacher. Unaware of this forgery, Carnegie Mellon accepted Chandra’s application and admitted her as a student in the fall of 2009.
In February 2010, during her second semester at Carnegie Mellon, Chandra applied for admission to Cornell as a transfer student. In her transfer application, Chandra submitted a forged transcript to Cornell showing, falsely, that she had received a perfect 4.0 Qualified Point Average (“QPA”) during the fall 2009 semester at Carnegie Mellon. In reality, Chandra had actually received a much lower QPA of 2.79 that semester. Chandra also submitted to Cornell a forged transcript that falsely inflated her high school grades as well as another forged letter of recommendation from a high school teacher.
Unaware of Chandra’s fraud, Cornell admitted Chandra as a transfer student starting in the fall 2010 semester. While enrolled at Cornell, Chandra ultimately received more than $130,000.00 in financial aid, much of which was federal direct student loan money provided by the United States Department of Education. Cornell also provided tens of thousands of dollars in grant assistance to Chandra during her time as a student at Cornell.
In 2013, while still enrolled at Cornell, Chandra began the process of applying for medical school through the American Medical College Application Service (“AMCAS”). As part of her medical school application, Chandra submitted forged transcripts from Carnegie Mellon and from Cornell.
AMCAS reported to Cornell that it suspected Chandra had submitted a fraudulent transcript, and Cornell launched an internal investigation, during which it uncovered Chandra’s previous admissions fraud. When confronted by a university official, Chandra admitted that she had falsified information in her transfer application, and Cornell expelled Chandra in November 2013.
Following her expulsion from Cornell, Chandra applied for admission as a transfer student to Indiana University-Purdue University Indianapolis (IUPUI). In doing so, Chandra again submitted forged copies of her Carnegie Mellon and Cornell transcripts, both of which contained falsely inflated grades. IUPUI admitted Chandra as a transfer student and gave her credit for a number of classes that she did not actually take or pass at Cornell. IUPUI conferred a bachelor’s degree on Chandra in 2015. When Chandra’s fraud came to light the following year, IUPUI rescinded Chandra’s degree.
The charge filed against Chandra carries a maximum sentence of one year in prison, a fine of up to $100,000, and a term of supervised release of up to one year. Chandra will be sentenced at a date not yet scheduled by United States Magistrate Judge David E. Peebles. Judge Peebles will formulate a sentence based on the particular statute Chandra is charged with violating, the U.S. Sentencing Guidelines, and other factors. In this case, however, Chandra and the United States have agreed in their plea agreement to recommend that Judge Peebles impose a sentence of 5 years of Probation during which Chandra would be required to disclose her plea agreement and criminal conviction to any and all universities she attends while on probation, to disclose to her probation officer any new applications for financial aid, and to abide by an existing repayment agreement with Cornell University requiring her to pay Cornell an outstanding financial aid balance of $70,145.81. The parties have also agreed to recommend that Chandra pay a fine of $1,000 as part of her sentence.
This case was investigated by the U.S. Department of Education-Office of Inspector General with assistance from Cornell University, and was prosecuted by Assistant U.S. Attorney Michael F. Perry.
Former Bookkeeper Indicted for Stealing Monies through Fraudulent Means and Impersonation of a Federal OfficerRead the Press Release
Jackson, TN – Krystle Sheals, 32, of Marion, Arkansas, has been indicted on federal charges of devising a scheme to defraud and obtain money and funds through false pretenses and the impersonation of a Special Agent with the Federal Bureau of Investigation. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the indictment today.
Sheals, a former bookkeeper with Nichols Fire and Security (NFS) in Memphis, Tennessee, is charged with using her access to her employer’s bank accounts to pay personal bills and expenses, including personal credit card payments, personal utility payments, car payments, school loan payments, and mortgage payments. While using NFS funds, Sheals is also charged with the purchase of an automobile, which she then gave to an individual in Henry County, Tennessee, and opening a retirement 401K account. The funds stolen amount to approximately $327,000.
Sheals is additionally charged with falsely assuming and pretending to be an officer and employee of the United States, namely a Special Agent of the Federal Bureau of Investigation (FBI). Sheals falsely stated to others that she was a federal agent; wore and possessed clothing, articles and insignia of the FBI; possessed and presented documents, business cards and identification purporting to be an FBI agent; and conducted interviews while falsely purporting to be an FBI employee.
A federal grand jury in Jackson, Tennessee returned an eleven-count indictment against Sheals on October 16, 2017, but the indictment remained under seal until Sheal’s initial court appearance. Agents with the Federal Bureau of Investigation arrested Sheals on October 17, 2017, in Shelby County, Tennessee.
If convicted, Sheals faces up the twenty years imprisonment on the wire fraud charges and up to three years imprisonment on the impersonation charges, in addition to up to three years supervised release and a $250,000 fine.
This case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew J. Wilson is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Florida Airplane Broker Convicted of Tax and Wire FraudRead the Press Release
A federal jury sitting in Miami, Florida, convicted a resident of Pompano Beach, Florida, of filing fraudulent tax returns, wire fraud and filing false monthly reports with the U.S. Probation Office, announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to evidence presented at trial, Timothy J. Beverley, 61, worked as an airplane broker at Majestic Jet Inc., a company in Pompano Beach that provided aircraft charters. From 2010 through 2013, Beverley stole more than $1.5 million from Majestic Jet by directing airplane escrow agents to wire funds from the sale of planes to nominee bank accounts that Beverley controlled. Beverley also stole funds directly from Majestic’s business bank accounts and used the money to pay for personal expenses including his boat and rent. Beverley did not report this income on his 2010 through 2013 personal tax returns. While working at Majestic Jet, Beverley was on supervised release stemming from his federal conviction for money laundering in January 2004. As a condition of his supervised release, Beverley was required to file monthly reports with the U.S. Probation Office that listed his net earnings from employment. Between November 2009 through October 2012, Beverley did not disclose the money he stole from Majestic Jet on his filed reports.
Sentencing is scheduled for Jan. 5, 2018 before U.S. District Court Judge Beth Bloom. Beverley faces a statutory maximum sentence of 20 years in prison for the wire fraud counts, three years in prison for each count of filing fraudulent returns and five years in prison for making false statements. Beverley also faces a period of supervised release, restitution, forfeiture, and monetary penalties.
Acting U.S. Attorney Greenberg and Deputy Assistant Attorney General Goldberg thanked special agents of Internal Revenue Service Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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
Felon Charged with Illegal Gun Possession, Distributing Heroin and FentanylRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearms laws, Acting United States Attorney Soo C. Song announced today.
The six-count Indictment, returned on October 17, named Nigel Macaya Broadus a/k/a Nigel Washington a/k/a “Little Nige”, age 21, of Wilkinsburg, PA, as the sole defendant.
According to the Indictment, on April 30, 2015, May 4, 2015, and June 3, 2015, Broadus possessed with intent to distribute and distributed heroin. The Indictment further alleges that on April 25, 2017, Broadus possessed with intent to distribute fentanyl. The Indictment also alleges that Broadus was involved in a heroin and fentanyl dealing conspiracy from February 2017 through April 25, 2017. Lastly, the Indictment alleges that on April 25, 2017, Broadus possessed a 9 mm caliber semi-automatic Ruger pistol bearing serial number 33483389 and 9 mm ammunition after having been convicted of crimes punishable by more than one year in prison. Those cases include two (2) convictions for Illegal Possession of a Firearm.
The law provides for a maximum of 110 years imprisonment, a fine of up to $5,250,000, and at least 3 years of supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) conducted the investigation leading to the Indictment in this case with valuable assistance from the Wilkinsburg Police Department, the Monroeville Police Department and the Pennsylvania Office of the Attorney General.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal jury finds St. Albans man guilty of gun crimeRead the Press Release
CHARLESTON, W.Va. – A federal jury sitting in Charleston returned a guilty verdict yesterday in the trial of a St. Albans man for being a felon in possession of a firearm, announced United States Attorney Carol Casto. Cleveland McDowell Meador, IV, 43, was convicted following a one-day jury trial.
Witnesses for the United States testified that on May 10, 2017, Meador gave permission to officers with the St. Albans Police Department to search his home on Bard Avenue in St. Albans. During the search, an officer discovered a Hi-Point, Model C9, 9mm pistol in an air register vent in the ceiling of Meador’s home. After Meador’s arrest, law enforcement read him his Miranda rights and in a recorded interview, Meador admitted that he put the gun in the air register vent, that he was a convicted felon, and that he knew that he was not supposed to have a gun. Meador was prohibited from possessing any firearm under federal law because of a 2016 felony conviction in Kanawha County Circuit Court for third offense driving while license revoked for driving under the influence.
Meador faces up to 10 years in federal prison when he is sentenced on January 17, 2018.
The St. Albans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorneys Eric Bacaj and Clint Carte are in charge of the prosecution and tried the case before a federal jury. United States District Judge Joseph R. Goodwin presided over the trial.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Federal Prisoner Pleads Guilty to Mailing Threatening Letter to the PresidentRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces that Richard Jeremy Ware (42, Ocala) today pleaded guilty to a one-count indictment charging him with making threats against the President of the United States. Ware faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to court documents, on March 27, 2017, while an inmate at a federal prison in Sumter County, Ware wrote a letter in which he threatened to murder the President of the United States upon his upcoming release from custody. He added, “I assure you that I am serious[!]” After completing the letter, Ware submitted it for delivery by the Postal Service. When a corrections officer subsequently discovered the letter, he confronted Ware about the threat. Ware confirmed that he had written the letter and that it belonged to him.
This case was investigated by the U.S. Secret Service and the Federal Bureau of Prisons. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Farmington Woman Pleads Guilty to an Illegal Gambling OperationRead the Press Release
St. Louis, MO – Carol Jean Hazer, 60, of Farmington, pled guilty to running an illegal gambling business and filing false tax returns that failed to list her income from the gambling business. She appeared today before U.S. District Judge Henry Autrey and set her sentencing for January 17, 2018.
According to her plea agreement, Hazer organized and ran an illegal high stakes sports betting operation, in part by utilizing internet websites. She admitted to engaging in money laundering and unlawful monetary transactions, including the purchase of a house and a vehicle using the proceeds of their crimes. Hazer also filed false tax returns trying to conceal the income from the illegal gambling business. The gambling business accrued nearly $500,000 in revenue during its operation.
Hazer now faces up to 20 years in prison and/fines up to $500,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Gwen Carroll is handling the case for the U.S. Attorney’s Office.
Eleven Men Charged in $1 Million Cross-Country Scheme to Defraud National Cellular ProviderRead the Press Release
NEWARK, N.J. – Eleven men in New York, Connecticut, North Carolina and Florida were charged today for their roles in a scheme that used stolen identities to order smartphones and other electronic goods and then paid drivers with a parcel delivery company to divert those goods to members of the conspiracy, Acting U.S. Attorney William E. Fitzpatrick announced.
Eight defendants were arrested this morning. Arrantes Garrincha Green, a/k/a “Don Gucci,” a/k/a “Gucci,” 39, of Margate, Florida, and Helton Arando Mallette, 27, of Miami, Florida, will appear this afternoon before U.S. Magistrate Judge Edwin G. Torres in Miami federal court. Omar Kimani Forsythe, a/k/a “Biggs,” 26, and Elvis Anthony Prehay, 43, both of Tamarac, Florida, will appear before Judge Torres tomorrow.
Sheldon Andre Wellington, a/k/a “Shellinz,” 35, of Rockville Center, New York, and Kindley Michel, 36, of Spring Valley, New York, will appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
Troy Linton Cooper, 35, of East Hartford, Connecticut, will appear this afternoon before U.S. Magistrate Judge Robert Richardson in Hartford federal court. Dashawn Brown, 25, of Raleigh, North Carolina, will appear this afternoon before U.S. Magistrate Judge James E. Gates in Raleigh federal court.
Andre Donovan Duffas, 27, of Plantation, Florida, Jermaine Wilson, a/k/a “Budds,” 32, of Nanuet, New York, and Oneil Gentles, a/k/a “Daffy,” 40, of Bronx, New York, remain at large.
All 11 defendants are charged by indictment with one count of wire fraud conspiracy and one count of conspiracy to transport stolen goods in interstate commerce. Green is also charged with one count of aggravated identity theft.
According to the indictment:
From June 2015 through June 2017, the defendants and others, led by Green, allegedly conspired to steal electronic equipment, including new smartphones, from a national cellular service provider.
Members of the conspiracy used stolen personal identifiers and debit and credit card information to place orders with the victim company. Many of the orders were allegedly made using two cellular phones associated with Green.
Afterwards, members of the conspiracy, including Green, Duffas, Mallette, Prehay, Wellington, and Wilson, transmitted anticipated delivery dates and locations of the fraudulently-ordered products to other conspirators who were employed as drivers with a major parcel delivery company. These drivers, including Brown, Cooper and Michel, were paid to divert the products mid-delivery to other members of the conspiracy, including Duffas, Forsythe, Gentles, Mallette, Prehay, Wellington, and Wilson.
Proceeds generated through the scheme were shared by wire transfer or depositing the funds in designated bank accounts.
The scheme compromised the identities of hundreds of residents in multiple municipalities across multiple states, including Upper Saddle River, New Jersey, and caused losses in excess of $1 million to the victim company.
The count of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years in prison. The count of conspiracy to commit interstate transportation of stolen property carries a maximum potential penalty of five years in prison. Both counts carry a potential fine of $250,000, or twice the gross gain or loss from the offense. The aggravated identity theft count carries a mandatory sentence of two years in prison, which must be served in addition to any sentence imposed.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked the Upper Saddle River Police Department, the Bergen County Prosecutor’s Office, the NYPD, the Westchester County District Attorney’s Office, the West Hartford Police Department and the Connecticut State’s Attorney’s Office, Hartford Judicial District, for their assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office General Crimes Unit in Newark.
Dr. Gary Marder Charged with Obstruction of a Federal Criminal Investigation and Health Care Fraud SchemeRead the Press Release
Gary L. Marder, D.O., 60, a physician residing in Palm Beach County and the owner and operator of the Allergy, Dermatology & Skin Cancer Centers in Port St. Lucie and Okeechobee, appeared in federal court for his initial appearance on an Information, which charges Dr. Marder with obstruction of a criminal health care investigation and health care fraud.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Timothy R. Langan, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, Patrick L. Fletcher, Special Agent in Charge, U.S. Railroad Retirement Board, Inspector General (RRB-OIG), and Scott Rezendes, Special Agent in Charge, United States Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.
According to the Information, Dr. Marder is charged with obstructing the investigation of federal health care fraud by delivering falsified and altered patient files that had been subpoenaed by a federal grand jury and delivered to a Special Agent of the Federal Bureau of Investigation. Dr. Marder is also charged with having submitted approximately $350,000 in false claims for the services of a medical physicist to health care benefits programs.
If convicted, Dr. Marder faces a possible maximum statutory sentence of five years’ imprisonment for obstruction of a criminal health care investigation; and, ten years’ imprisonment for health care fraud.
At Dr. Marder’s initial appearance the Magistrate Judge released Dr. Marder on bond. The Magistrate Judge set a $1 million personal surety bond co-signed by Dr. Marder’s wife, surrender of Dr. Marder’s passport, and other standard conditions.
Mr. Greenberg commended the investigative efforts of the FBI, HHS-OIG, DCIS, RRB-OIG and OPM-OIG. This case is being prosecuted by Assistant U.S. Attorney Ellen L. Cohen.
An information is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Doctor Charged in Compounding Pharmacy Fraud SchemeRead the Press Release
Hattiesburg, Miss – A Biloxi-based physician was charged today for his role in a multi-million dollar scheme to defraud TRICARE, the health care benefit program serving our nation’s military, veterans, and their respective family members.
U.S. Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, and IRS-Criminal Investigation Special Agent in Charge Jerome McDuffie made the announcement.
Albert Diaz,M.D., of Ocean Springs, Mississippi, was charged today in a sixteen-count indictment in the Southern District of Mississippi, and is scheduled to make his initial appearance before U.S. Magistrate Judge John Gargiulo on October 31, 2017, at 2:30 p.m. The indictment charges Diaz with one count of conspiracy to commit health care fraud and wire fraud; four counts of wire fraud; one count of conspiracy to distribute and dispense a controlled substance; four counts of distributing and dispensing of a controlled substance; one count of conspiracy to falsify records in a federal investigation; and, five counts of falsification of records in a federal investigation.
The indictment alleges that Diaz participated in a scheme to defraud TRICARE by prescribing medically unnecessary compounded medications, some of which included Ketamine, a controlled substance, to individuals without first examining the individuals for the purpose of having a Hattiesburg-based compounding pharmacy dispense these medically unnecessary compounded medications, and to have TRICARE reimburse the compounding pharmacy for dispensing the medications. According to the indictment, between October 2014 and December 2015, TRICARE reimbursed the pharmacy more than $2.3 million for the medications prescribed by Diaz. Additionally, the indictment alleges that in response to an audit conducted by TRICARE of these prescriptions signed by Diaz, Diaz submitted falsified patient records indicating that he had examined these individuals prior to prescribing these compounded medications.
This indictment has been designated as a related prosecution to two cases charged earlier this year in the Southern District of Mississippi. Jason May, the pharmacist-in-charge of Advantage Pharmacy, pled guilty on July 25, 2017, to conspiracy to commit health care fraud and money laundering regarding a scheme to defraud health care benefit programs, including TRICARE, of more than $190 million. Gerald Schaar, a marketer, pled guilty on July 25, 2017, to conspiracy to commit health care fraud regarding a scheme to defraud TRICARE of more than $2.3 million.
If convicted of all counts, Diaz faces 305 years in jail and fines up to $7.5 million.
The case is being handled by the United States Attorney’s Office for the Southern District of Mississippi and the Fraud Section of the Criminal Division of the United States Department of Justice. The case is being investigated by the Federal Bureau of Investigation, Internal Revenue
Service Criminal Investigations, Department of Defense Criminal Investigative Service, and other government agencies.
The public is reminded that an indictment is merely an allegation and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Hattiesburg, Miss – A Biloxi-based physician was charged today for his role in a multi-million dollar scheme to defraud TRICARE, the health care benefit program serving our nation’s military, veterans, and their respective family members.
U.S. Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, and IRS-Criminal Investigation Special Agent in Charge Jerome McDuffie made the announcement.
Albert Diaz,M.D., of Ocean Springs, Mississippi, was charged today in a sixteen-count indictment in the Southern District of Mississippi, and is scheduled to make his initial appearance before U.S. Magistrate Judge John Gargiulo on October 31, 2017, at 2:30 p.m. The indictment charges Diaz with one count of conspiracy to commit health care fraud and wire fraud; four counts of wire fraud; one count of conspiracy to distribute and dispense a controlled substance; four counts of distributing and dispensing of a controlled substance; one count of conspiracy to falsify records in a federal investigation; and, five counts of falsification of records in a federal investigation.
The indictment alleges that Diaz participated in a scheme to defraud TRICARE by prescribing medically unnecessary compounded medications, some of which included Ketamine, a controlled substance, to individuals without first examining the individuals for the purpose of having a Hattiesburg-based compounding pharmacy dispense these medically unnecessary compounded medications, and to have TRICARE reimburse the compounding pharmacy for dispensing the medications. According to the indictment, between October 2014 and December 2015, TRICARE reimbursed the pharmacy more than $2.3 million for the medications prescribed by Diaz. Additionally, the indictment alleges that in response to an audit conducted by TRICARE of these prescriptions signed by Diaz, Diaz submitted falsified patient records indicating that he had examined these individuals prior to prescribing these compounded medications.
This indictment has been designated as a related prosecution to two cases charged earlier this year in the Southern District of Mississippi. Jason May, the pharmacist-in-charge of Advantage Pharmacy, pled guilty on July 25, 2017, to conspiracy to commit health care fraud and money laundering regarding a scheme to defraud health care benefit programs, including TRICARE, of more than $190 million. Gerald Schaar, a marketer, pled guilty on July 25, 2017, to conspiracy to commit health care fraud regarding a scheme to defraud TRICARE of more than $2.3 million.
If convicted of all counts, Diaz faces 305 years in jail and fines up to $7.5 million.
The case is being handled by the United States Attorney’s Office for the Southern District of Mississippi and the Fraud Section of the Criminal Division of the United States Department of Justice. The case is being investigated by the Federal Bureau of Investigation, Internal Revenue
Service Criminal Investigations, Department of Defense Criminal Investigative Service, and other government agencies.
The public is reminded that an indictment is merely an allegation and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Complaint Filed Seeking A Civil Injunction Against Group Calling Itself the Uinta Valley Shoshone TribeRead the Press Release
SALT LAKE CITY -- The U.S. Attorney’s Office in Salt Lake City filed a civil complaint Wednesday morning against a group that calls itself the “Uinta Valley Shoshone Tribe (UVST)” and three of its officers seeking an injunction to stop what the United States believes to be wire fraud.
The law allows the United States to seek a civil injunction to stop wire fraud while it is conducting further investigations. The United States seeks to enjoin the defendants from selling hunting and fishing licenses that purportedly give hunters and anglers the right to hunt and fish on the Uintah and Ouray Reservation. The Ute Tribe is the only tribal entity authorized to issue hunting and fishing licenses within the reservation. The Uinta Valley Shoshone Tribe is not recognized by the United States and has no legal authority over the lands or resources within the Uintah and Ouray Reservation.
Named in the complaint against the UVST are Dora Van, chairwoman; Ramona Harris, director; and Leo LeBaron, wildlife director; and others who are working in active concert with the defendants to issue and use hunting and fishing licenses on Ute Tribal land over which the UVST has no jurisdiction. The Ute Tribe has not delegated any of its authority over fish and wildlife to the defendants in the case.
According to the complaint, in late September 2016, Ute Fish and Wildlife officers and Utah Division of Wildlife Resources officers began receiving information regarding the UVST selling hunting and fishing licenses for their purported members’ use in taking wildlife from Ute Tribal Trust Lands of the Uintah and Ouray Reservation. UVST sells these licenses for $25, the complaint alleges. On the license application form, the defendants list a website and an email address for the UVST, and falsely state that the UVST is “a Federal Corporation d/b/a the ‘Ute Indian Tribe” of the Uinta and Ouray Reservations, Utah.” Some of those who have obtained licenses from UVST have used them to take deer, elk, and fish from the Ute Tribal Lands. The defendants have erected “No Trespass” signs on Ute Tribal Trust Lands and, according to the complaint, informed those who buy licenses that the Ute Tribal Trust Lands actually belong to the UVST and no entity can prevent licensees from hunting or fishing on those lands.
The civil action filed today asks the federal court to declare that the defendants have engaged in wire fraud by selling the licenses, preliminarily and permanently enjoin the defendants from selling or issuing hunting and fishing licenses, declare that the UVST hunting and fishing licenses that have been issued are null and void, preliminarily and permanently enjoin the use of licenses that have been issued, and award any other relief that the Court deems appropriate.
CodeSmart Holdings, Inc. CEO and Attorney Plead Guilty to Participating in a $86 Million Market Manipulation SchemeRead the Press Release
Earlier today, Ira Shapiro, the former Chief Executive Officer of CodeSmart Holdings, Inc. (“CodeSmart”), a publicly-traded company, and Darren Ofsink, a Manhattan attorney and founder of Ofsink LLC, pleaded guilty to one count of conspiracy to commit securities fraud for their participation in a $86 million market manipulation scheme involving CodeSmart, which traded under the ticker symbol ITEN. The plea was entered before United States District Judge Eric N. Vitaliano at the federal courthouse in Brooklyn.
The guilty pleas were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to court filings, in early May 2013, the defendants, along with their charged co-conspirators, engineered a reverse merger of CodeSmart, a private company, with a public shell company. After gaining control of CodeSmart’s three million purportedly unrestricted shares, the co-conspirators on two occasions fraudulently inflated CodeSmart’s share price and trading volume and then sold their shares at a profit when the price reached desirable levels — a scheme commonly referred to as a “pump and dump.” The first pump and dump occurred between approximately May 13, 2013 and August 21, 2013. During this period, the co-conspirators manipulated CodeSmart’s stock price by raising it from $1.77 to a high of $6.94, before causing it to drop to $2.19. The second pump and dump occurred between approximately August 21, 2013 and September 20, 2013. During this period, the defendants and their co-conspirators manipulated CodeSmart’s stock price by raising it from $2.19 to a high of $4.60, before causing it drop to $2.13.
CodeSmart’s market capitalization at its highest closing price of $6.94 per share on July 12, 2013 was $86,347,800. However, that same day, CodeSmart filed with the U.S. Securities and Exchange Commission an amended Form 10-K, in which it listed only $6,000 in total assets, $7,600 in revenue, and a net loss of $103,141. By December 30, 2013, CodeSmart’s stock was trading at $0.66 per share, and on July 9, 2014, its stock closed at $0.01 per share.
When sentenced, Shapiro and Ofsink each face up to five years in prison, a fine and the forfeiture of criminal proceeds. They will also be required to make full restitution to their victims.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Shannon C. Jones, Patrick T. Hein, and Mark Bini are in charge of the prosecution with assistance provided by Assistant United States Attorney Claire Kedeshian of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendants:
IRA SHAPIRO
Age: 56
Residence: Congers, New YorkDARREN OFSINK
Age: 48
Residence: Merrick, New YorkE.D.N.Y. Docket No. 14-CR-399 (S-1) (ENV)
Clairton Woman Admits Passing Counterfeit Money in Western PennsylvaniaRead the Press Release
PITTSBURGH – A resident of Clairton, Pennsylvania, pleaded guilty in federal court to charges of conspiracy and passing and uttering counterfeit money, Acting United States Attorney Soo C. Song announced today.
Seleste M. Foster, 25, of Clairton, PA pleaded guilty to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that between May 16, 2015 to June 12, 2015, Foster conspired and passed counterfeit $100, $50, and $20 FRNs throughout the Western District of Pennsylvania.
Judge Fischer scheduled sentencing for February 16, 2018 at 9 a.m. The law provides for a total sentence of 45 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Foster.
Citizen of the Dominican Republic Sentenced to Prison for Illegally Reentering U.S. after DeportationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LUIS MANUEL RODRIGUEZ BURGOS, 36, a citizen of the Dominican Republic, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 15 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, RODRIGUEZ BURGOS was admitted to the U.S. as a lawful permanent resident in 1995. In September 2005, RODRIGUEZ BURGOS was convicted in Arizona of attempted transportation of narcotic drugs for sale and was sentenced to more than three years of imprisonment. The offense involved 10 kilograms of cocaine and more than 170 grams of heroin concealed within a hidden compartment in the vehicle in which RODRIGUEZ BURGOS was travelling. In August 2006, he was deported from the U.S. to the Dominican Republic.
In August 2012, local law enforcement arrested RODRIGUEZ BURGOS in New York City for driving under the influence, and subsequently alerted federal immigration authorities. In October 2012, RODRIGUEZ BURGOS was again removed to the Dominican Republic.
RODRIGUEZ BURGOS illegally reentered the U.S. in late 2012. On October 27, 2015, he was arrested by the Connecticut Statewide Narcotics Task Force in Bridgeport for distributing heroin, cocaine and methamphetamine. At the time of his arrest, RODRIGUEZ BURGOS possessed a fraudulent Puerto Rico driver’s license, in the name of another individual, which he had purchased for $100.
RODRIGUEZ BURGOS has pleaded guilty in state court to drug sale and conspiracy offenses and is scheduled to be sentenced on October 20 to an agreed upon sentence of seven years of incarceration, with a mandatory minimum of five years, to be followed by five years of special parole.
Judge Underhill imposed the federal sentence to run concurrently with RODRIGUEZ BURGOS’ state sentence.
On July 26, 2017, RODRIGUEZ BURGOS pleaded guilty in federal court to one count of illegal reentry of a removed alien.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.