Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
17 October 2017
Jury Convicts Former New York Resident of Making Death ThreatsRead the Press Release
SAN FRANCISCO – A federal jury convicted Jorge Cornejo of making threats by phone and text message, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The guilty verdict was issued late yesterday following a week-long trial before the Honorable Charles R. Breyer, U.S. District Judge.
According to the evidence presented at trial, Cornejo, 41, formerly of New York, was confronted for various misrepresentations he made about his connection to San Francisco and New York night clubs. After being confronted, Cornejo made a series of threats to individuals located in the Northern District of California. Cornejo communicated his threats from Las Vegas, Nevada. Cornejo also used a cellular telephone to send a number of threatening text messages to nightclub owners in San Francisco and New York on May 10, 2017.
A federal grand jury issued a superseding indictment on August 3, 2017, charging the defendant with two counts of making interstate threats to injure, in violation of 18 U.S.C. § 875(c). Pursuant to yesterday’s verdict, Cornejo has been found guilty of both counts.
Judge Breyer scheduled a hearing for sentencing for January 16, 2018. The maximum statutory penalty for each count of violating 18 U.S.C. § 875 (c) is five years in prison and a fine of $250,000. In addition, the court could impose a term of supervised release, however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case was tried by Assistant United States Attorneys Meredith Osborn and Shailika Shah Kotiya, with assistance from Alycee Lane. The prosecution is the result of an investigation by the FBI.
Illegal Alien from Mexico Sentenced to Prison after Returning to the United States Following DeportationRead the Press Release
A Mexican man who had previously been deported following a federal conviction for illegally reentering the United States was sentenced today to 11 months in federal prison.
Ranulfo Juarez-Hernandez, age 39, a citizen of Mexico who had been living in Independence, Iowa, received the prison term after a June 29, 2017, guilty plea to one count of illegal reentry of a removed alien after a felony conviction.
At the guilty plea, Juarez-Hernandez admitted he illegally reentered the United States without permission after having been deported from the United States in May 2014 and September 2015. Prior to his deportation, Juarez-Hernandez was convicted in August 2015 in the United States District Court for the Northern District of Iowa on one count of illegally reentering the United States following deportation, a felony offense. Juarez-Hernandez had also been convicted of operating a motor vehicle while intoxicated in both Washington County, Iowa, in 2006 and in Grundy County, Iowa, in 2016; and domestic abuse assault in Linn County, Iowa, in 2013. Juarez-Hernandez most recently came to the attention of immigration officials in May 2017 following his arrest for operating a motor vehicle while intoxicated in Buchanan County, Iowa.
Juarez-Hernandez was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Juarez-Hernandez was sentenced to 11 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Juarez-Hernandez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2029.
Follow us on Twitter @USAO_NDIA.
Illegal Alien Sentenced to Prison for Unlawful Possession of A FirearmRead the Press Release
CHARLOTTE, N.C. – Adolbo Albarran-Flores, 43, of Charlotte, was sentenced today by U.S. District Judge Robert J. Conrad, Jr. to 36 months in prison and two years of supervised release, for unlawful possession of a firearm by an alien, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
According to court documents, evidence submitted during Albarran-Flores’s trial, and today’s sentencing hearing, on or about October 12, 2016, a work crew from the defendant’s company “A+ Rooter” was performing plumbing work afterhours at the Azteca Restaurant, located on Woodlawn Road in Charlotte. According to trial evidence, a surveillance video from the restaurant showed Albarran-Flores firing a handgun, allegedly, to scare off a person the defendant claimed was trying to break into one of his company’s work vans. According to court records, when a CMPD officer in a marked car responded to the shots, Albarran-Flores raised his arm towards the officer and pointed a gun. The officer then fired a shot in the defendant’s direction. Court records show that Albarran-Flores pretended to be shot before throwing the weapon in a bush beside the restaurant. Law enforcement later recovered the firearm, a Smith & Wesson, Model M&P 9, 9mm, and eight shell casings consistent with the handgun. A native and citizen of Mexico, Albarran-Flores was convicted at trial on June 8, 2017.
In imposing the sentence, Judge Conrad found that Albrarran-Flores, knowing a person was a law enforcement officer, assaulted such officer during the course of the offense in a manner that created a substantial risk of serious bodily injury.
Albarran-Flores is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole. The defendant will also be subject to deportation proceedings upon the completion of his federal sentence.
ICE-HSI led the investigation assisted by CMPD. Assistant United States Attorney Kenneth Smith, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Houston Federal Court Shuts Down Tax Return PreparerRead the Press Release
On Oct. 16, a federal court in Houston, Texas, permanently enjoined Felisha Gibson and Ms. Lesa’s Tax Service LLC from preparing federal tax returns for others, the Justice Department announced today. Gibson agreed to a civil injunction order entered against her that requires her and Ms. Lesa’s Tax Service LLC to cease preparing tax returns for others. The injunction also requires Gibson to produce a list of her customers to the United States.
According to the government’s complaint, Gibson, through her business located in Houston, Texas, routinely prepared federal tax returns for customers that reported false, improper, or inflated expense deductions and business income, as well as false claims for education tax credits and improper dependents. For example, the complaint alleges that a customer reported that Gibson fabricated a business with income and expenses for tax years 2013 and 2014, and falsely claimed an education credit in her tax returns even though the customer never attended college.
Return preparer fraud is one of the Internal Revenue Service (IRS)’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Hebbronville Man Sentenced for Smuggling DrugsRead the Press Release
LAREDO, Texas – A 47-year-old resident of Hebbronville has been ordered to federal prison following his conviction of conspiracy and possession with the intent to distribute more than 50 kilograms of marijuana, announced Acting U.S. Attorney Abe Martinez. Eden Alan Martinez pleaded guilty Jan. 23, 2017.
Today, U.S. District Judge Marina Garcia-Marmolejo ordered sentenced Eden Martinez to 40 months to be immediately followed by three years of supervised release.
On Nov. 7, 2016, Eden Martinez took part in a conspiracy to smuggle marijuana by attempting to circumvent the Highway 16 Border Patrol Checkpoint near Hebbronville. He was driving a 2008 blue Chevrolet Silverado pick-up truck in which authorities found 111.5 kilograms of marijuana in the engine compartment, front bumper and rear quarter panels.
Eden Martinez has been in custody since his arrest on Nov. 7, 2016, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and the Border Patrol conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Groton Woman Sentenced to 4 Years in Prison for Sex Trafficking and Heroin Distribution Offenses Related to OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ADELE BOUTHILLIER, 43, of Groton, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 48 months of imprisonment, followed by five years of supervised release, for sex trafficking of a minor and heroin distribution offenses.
The matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose. The victim, a 17-year-old female, was administered two doses of Narcan (Naloxone), which were deemed unsuccessful, before she was transported to the hospital and died later that morning.
The investigation revealed that Ramon Gomez, also known as “B.I.,” brought the victim to the motel to engage in prostitution, and the victim stayed in a room there with BOUTHILLIER. Both Gomez and BOUTHILLIER, who was engaged in prostitution and worked with Gomez, knew that the victim was under the age of 18. On the morning of May 28, 2016, BOUTHILLIER purchased a quantity of heroin from Gomez and gave it to the victim, who snorted it. At approximately 10:00 p.m. that day, BOUTHILLIER awoke to find the victim to be unresponsive. BOUTHILLIER waited approximately four hours before calling 911.
BOUTHILLIER was arrested on June 8, 2016. On March 30, 2017, she pleaded guilty to one count of conspiracy to commit sex trafficking of a minor and one count of possession with intent to distribute heroin.
Gomez pleaded guilty on November 17, 2016, and awaits sentencing. He has been detained since his arrest on June 1, 2016.
On September 20, 2017, Nestor Santana, also known as “Beans,” of New London, pleaded guilty to a heroin distribution offense stemming from this investigation. Santana supplied Gomez with the heroin that subsequently caused the death of the victim. He also is detained and awaits sentencing
This investigation has been conducted by the Drug Enforcement Administration, Homeland Security Investigations, the Town of Groton Police Department and the Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Grant Funds AwardedRead the Press Release
MACON: United States Attorney G. F. “Pete” Peterman, III and Bibb County Sheriff David Davis announced today that the Department of Justice, Office of Justice Programs has awarded grant funds to the Middle District of Georgia Project Safe Neighborhoods Task Force to implement a violent gang and gun crime reduction initiative.
Project Safe Neighborhoods is designed to create safer neighborhoods through a sustained effort based on the cooperation of local, state and federal agencies engaged in a unified approach led by the U.S. Attorney in each district. The FY 2017 Project Safe Neighborhoods Violent Gang and Gun Crime Reduction Program will provide $200,000 in grant funds to be used to (1) increase the Bibb County Sheriff’s Office Crime Laboratory’s capability to conduct ballistics analysis using latest IBIS BrassTrRAX technology; (2) conduct an in-depth scholarly review and data-driven analysis of the local gun and gang crime problem by Middle Georgia State University’s Center for Academic Research and Education; (3) increase federal prosecution of violent gun and gang crime offenders using comprehensive Assistant United States Attorney led-cases and Bureau of Alcohol, Tobacco, Firearms and Explosives led-NIBIN hits review; and (4) streamline directed patrol, field interrogation and jail outreach for gun and gang crime deterrence, using “Smart Suite” researcher-practitioner fellowship.
Partners in the initiative include Bibb County Sheriff’s Office, U.S. Attorney’s Office, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Federal Bureau of Investigation, U.S. Internal Revenue Service – Criminal Investigation, U.S. Immigration and Customs Enforcement, and Georgia Department of Community Supervision. Middle Georgia State University submitted the application, prepared by the Bibb County Sheriff’s Office, for and on behalf of the agencies and will serve as the Fiscal Agent and Research Partner for the initiative.
“This grant is extremely helpful in the fight against crime for two reasons,” said United States Attorney “Pete” Peterman. “First, it brings federal, state and local law enforcement together and blends their resources, as can be seen by all the agencies involved. Secondly, by tracing all the various crimes in which a particular firearm has been used, we are likely to identify more perpetrators and solve more investigations than otherwise could be done without this additional resource.”
Sheriff David Davis said, “This federal initiative will greatly enhance the Bibb County Sheriff’s Office investigative and crime lab capabilities in concert with the ATF for the Middle District of Georgia region, by providing the latest IBIS BRASSTRAX ballistics analysis technology, training, and making entries into the National Integrated Ballistics Information Network (NIBIN). This capability will enable us to identify firearms that may have been used in multiple instances of violence in our area. Having this information will help to ensure that evildoers are held accountable for all of their misdeeds.”
For more information, contact Pamela Lightsey, Law Enforcement Coordinator, at 478-621-2603 or at [email protected].
Grand Jury Indicts Dallas Man on Multiple Charges of Child ExploitationRead the Press Release
BROWNSVILLE, Texas – A federal grand jury in Brownsville has indicted a 64-year-old man for child exploitation crimes that allegedly occurred in Honduras, Mexico and Texas, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned a 12-count superseding indictment against Donald Frederic Bollinger, of Dallas, today. He was previously indicted Sept. 19, 2017, and has been in custody since his arrest shortly thereafter. He is expected to make his initial appearance before U.S. Magistrate Judge Morgan on the new charges on Oct. 26, 2017.
The charges include allegations that Bollinger engaged in illicit sexual activity in a foreign place (Honduras and Mexico), travelled to a foreign place with intent to engage in criminal sexual activity, conspired to transport a minor across international boundaries with intent to engage in criminal sexual activity, failed to register as a sex offender, conspired to engage in alien smuggling and committed a felony involving a minor while being registered as a sex offender.
The indictment alleges that between February 2012 and March 2014, Bollinger travelled from Dallas to Honduras to engage in illicit sexual conduct with boys under the age of 18. Thereafter, Bollinger allegedly conspired to have an individual under the age of 18 transported to the United States with the intent to engage in criminal sexual activity. During this time period, Bollinger also allegedly travelled to Honduras by aircraft and used a cell phone to entice or coerce an individual he believed was 15 years old to engage in sexual activity, according to the charges. Bollinger allegedly travelled through South Texas to Mexico to engage in illicit sexual conduct between March and April 2016. Bollinger, a registered sex offender, also failed to update his sex offender registration when he travelled to Mexico in March 2016, according to the indictment.
Bollinger faces a minimum of 10 years and up to life imprisonment for conspiring to transport a minor across international borders with intent to engage in criminal sexual activity and enticement of a minor to engage in criminal sexual activity. For each of the five counts of engaging in illicit sexual conduct in foreign places and one count of traveling with intent to engage in criminal sexual activity Bollinger faces up to 30 years in prison. He also faces up to 20 years in prison for enticement of a minor to travel to engage in illicit sexual activity.
Bollinger also faces penalties for engaging in alien smuggling and for failing to update his sex offender registration status before traveling internationally. These charges include sentences of up to 10 years for failure to register and for conspiring to smuggle undocumented aliens into the United States as well as a five- year sentence for encouraging an undocumented alien to enter the United States illegally. In addition, Bollinger faces another mandatory minimum of 10 years in addition to any other sentence imposed for committing the crimes while a registered sex offender.
Each charge also carries a possible $250,000 maximum fine upon each conviction.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - Rio Grande Valley Child Exploitation Task Force conducted the investigation with the assistance of HSI - Dallas division.
Assistant U.S. Attorneys Ana Cano and Jason Corley are 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."
Government Contractor Sentenced to One Month in Federal Prison for Making False ClaimsRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland –United States District Judge Marvin J. Garbis sentenced Shawn Penn, age 42, of Pasadena, Maryland, to one month in prison, followed by five months of home confinement and three years of supervised release for causing more than $40,000 in false claims to be submitted to the government. Penn falsely represented to her employer that she was working as a security guard at a government facility, when she was actually elsewhere. In addition, Judge Garbis ordered Penn pay restitution in the amount of $30,000.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
According to the plea agreement, Penn worked full-time, during regular business hours, as an active duty U.S. Army Intelligence Officer at Fort Meade, Maryland. In addition, Penn worked as a contract employee performing security guard services for the U.S. Department of Defense in Anne Arundel County, Maryland.
Penn performed her security guard services for a sensitive compartmented information facility (SCIF), which required that she hold a Top Secret-Sensitive Compartmented Information security clearance, possess a gun permit, and carry a government issued duty cell phone while on duty. Penn’s work locations had surveillance cameras that monitored her workstation area, and areas inside and outside the building. Penn’s duties included reviewing computer monitors with live video from security cameras, checking for alarms, monitoring the temperature in the facility and performing exterior security sweeps.
According to court documents, from September 2015 to August 2016, Penn regularly abandoned her workstation and falsely represented to her employer that she had been working as a security guard when she was actually elsewhere. According to the statement of facts supporting the plea agreement, Penn’s false claims regarding her security work hours caused the government to pay more than $40,000 to her employers to which they and Penn were not entitled.
In addition, on October 6, 2016, Penn falsely stated to investigators from the Defense Criminal Investigative Service that she had not abandoned her security guard duties until January 2016, when in fact, she had been abandoning her duties since at least September 2015. Penn falsely claimed that she “sat in her car,” was “across the street,” or “drove around the parking lot,” during her guard shifts, when Penn knew she was elsewhere during those shifts.
Acting United States Attorney Stephen M. Schenning commended the DCIS for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the case.
Forney Man Sentenced to 151 Months in Federal Prison for Drug OffenseRead the Press Release
DALLAS — Nicholas Kyle Driggers, 31, of Forney, Texas, was sentenced today by U.S. District Judge Sam A. Lindsay to a 151 months in federal prison following his guilty plea in June 2017 to one count of possession of a controlled substance with intent to distribute, announced U.S. Attorney John Parker of the Northern District of Texas.
Driggers has been in custody since the time of his arrest in March 2017.
According to documents filed in the case, on March 2, 2017, Addison Police Department performed a computer check of a vehicle and discovered that the registered owner, Driggers, had an active warrant for a parole violation. After arresting Driggers officers examined the vehicle and observed a strong and distinct odor of marijuana coming from inside of the vehicle. In plain view, the officer observed a partially smoked marijuana cigarette and other drug paraphernalia. A search of the vehicle revealed two bags containing over 450 grams of methamphetamine, two handguns, Xanax pills, marijuana, drug paraphernalia and $2,229.00 in cash.
The Texas Department of Public Safety, Addison, Texas Police Department, and the Carrolton Police Department investigated the case. Assistant U.S. Attorney George Leal prosecuted.
# # #
Former Spring Hill Police Officer Pleads Guilty to Federal Civil Rights ViolationRead the Press Release
Former Spring Hill Police Officer Christopher Patrick Odom, 27, of Spring Hill, Tennessee, pleaded guilty today in U.S. District Court to one count of deprivation of rights under color of law for engaging in unwanted sexual contact with a female motorist while on duty as a police officer, announced Donald Q. Cochran, U.S. Attorney for the Middle District of Tennessee.
“This office will never tolerate such an abuse of power by a public servant.” Said U.S. Attorney Cochran. “The few who choose to dishonor their badge and violate their oath will be held accountable for their actions. I commend the Tennessee Bureau of Investigation for initiating a swift and thorough investigation which ultimately led to this defendant pleading guilty.”
According to the indictment and statements made during the plea hearing, Odom initiated a traffic stop on the female victim during the late evening hours of June 25, 2016. Upon approaching the victim’s car, Odom ordered her to write her name and phone number or date of birth on a piece of paper. Thereafter, Odom ordered the victim out of her car and brought her to the side of his patrol car. He then tried to kiss the victim and put his hands down her pants. He then grabbed the victim’s hand and placed it on his penis. Odom also lied to the victim about his name before finally allowing her leave the scene.
Odom previously pleaded guilty to state charges of sexual battery and official misconduct regarding other female motorists in Maury County and is facing similar state charges in Williamson County.
Odom faces up to one year in prison and a $100,000 fine. He will be sentenced by United States District Judge Aleta Trauger on March 9, 2018. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the Tennessee Bureau of Investigation in consultation with the Department of Justice Civil Rights Division. Assistant United States Attorneys Henry Leventis and Sara Beth Myers are prosecuting the case.
Former San Bernardino County Income Tax Preparer Sentenced to Eight Months in Federal Prison for Filing Fraudulent ReturnsRead the Press Release
RIVERSIDE, California – A San Bernardino County man who prepared and filed fraudulent tax returns for both his clients and himself that claimed false business losses has been sentenced to serve eight months in federal prison.
Mervyn Gucilatar, 46, of Yucaipa, was sentenced yesterday afternoon by United States District Judge Jesus G. Bernal. In addition to the prison term, Judge Bernal ordered Gucilatar to pay $573,440 in restitution to the Internal Revenue Service.
Gucilatar, who operated his tax preparation business under the name JM Tax Solutions, pleaded guilty in February to one count of aiding and assisting in the preparation of a false tax return and one count of making and subscribing to a false tax return.
According to the plea agreement filed in the case, while working with another unidentified return preparer, Gucilatar prepared fraudulent tax returns that claimed false partnership losses to which his clients were not entitled. The false partnership losses related to a limited liability corporation that was created with no legitimate purpose.
The fraudulent tax returns included personal expenses and fictitious expenses for the partnerships that had no business purpose other than to create a loss. The false losses to the partnerships were passed through to the personal tax returns of Gucilatar’s clients, thereby reducing their income tax liability.
Gucilatar prepared at least 35 sets of fraudulent partnership and individual income tax returns on behalf of clients resulting in a total tax loss of $678,873 for the 2012 tax year.
Prior to working with the unidentified return preparer, Gucilatar was his client. Using the other return preparer, Gucilatar filed amended 2009, 2010 and 2011 tax returns that used the same LLC scheme and claimed false partnership losses. Gucilatar also filed a fraudulent 2012 tax return using the LLC scheme on his own behalf, which created an additional tax loss. The total tax loss associated with the 2009-2012 returns filed in the name of Gucilatar and his wife is $95,882.
In the plea agreement, Gucilatar agreed to the entry of a civil injunction, which will bar him for life from aiding in the preparation of tax returns for anyone other than himself and his wife. He will also be barred from representing other individuals before the IRS.
This case is the product of an investigation by IRS Criminal Investigation.
The case was prosecuted by Assistant United States Attorney Sean D. Peterson of the Riverside Branch Office.
Former Postal Supervisor Admits Theft of Government PropertyRead the Press Release
CAMDEN, N.J. – A Delran, New Jersey, man who worked for the U.S. Postal Service (USPS) today admitted to stealing postal service funds, Acting U.S. Attorney William E. Fitzpatrick announced.
Amar D. Patel, 36, pleaded guilty before U.S. District Noel L. Hillman in Camden federal court to an information charging him with one count of embezzling, stealing, purloining, and knowingly converting to his own use USPS funds in excess of $1,000.
According to documents filed in this case and statements made in court:
In July 2016, the U.S. Postal Service Office of Inspector General started investigating shortages in cash deposits reported by the Riverside, New Jersey, Delanco, New Jersey, and Delran post offices. Patel – who was a supervisor at those three offices – had access to deposit bags containing cash acquired during retail operations.
Agents installed covert surveillance cameras inside the Riverside post office. On Jan. 14, 2017, one of the surveillance cameras captured images of Patel tearing open a sealed deposit bag, removing cash deposits, and placing the funds into his pocket. According to U.S. Postal Service financial records and bank deposit records, the Riverside office’s deposit was short $1,650 on Jan. 14, 2017.
As part of his plea, Patel admitted stealing a total of $15,700 in U.S. Postal Service funds on 12 separate occasions from Feb. 20, 2016, through Jan. 14, 2017.
The count to which Patel pleaded guilty is punishable by a maximum of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 26, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Postal Service Office of Inspector General, under the direction of Executive Special Agent in Charge Monica Weyler of the Eastern Area Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Former Oil Services Company Employee Convicted for Embezzling $1.8 Million from CompanyRead the Press Release
HOUSTON – A 54-year-old resident of Pasadena has entered a plea of guilty to wire fraud, announced Acting U.S. Attorney Abe Martinez. Darla Kay Beede admitted she embezzled $1.8 million during her longtime employment with Chevron Phillips Chemical Company.
Beede was issued company credit cards via Case Bank on behalf of several managers, but used those cards for her own personal benefit. She used the company cards to purchase pre-paid debit/gift cards and copper wire. In order to mask her unlawful expenditures, she would falsify receipts from vendors, changing the item descriptions to reflect something other her unlawful purchases. Additionally, Beede would forge the expense account statements and authorization signatures in order to conceal her unlawful spending. She also provided fictitious receipts from various vendors to accounts payable at the company for spending justification.
As a result of her scheme, the company suffered a loss of $1.8 million.
Sentencing has been set before Chief U.S. District Judge Lee Rosenthal for Feb. 6, 2018. At that time, Beede faces up to 20 years in prison as well as a possible $250,000 maximum fine.
She was permitted to remain on bond pending that hearing.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
Former CFO Sentenced for Role in Department of Defense Fraud, Filing False Tax Returns on Behalf of IbisTekRead the Press Release
PITTSBURGH – A resident of Wexford, PA, has been sentenced in federal court to three years probation, six months home detention, 150 hours community service and a $15,000 fine, on charges of major fraud against the U.S. Department of Defense and filing false tax returns on behalf of Ibis Tek, LLC, for 2009 and 2010, Acting United States Attorney Soo C. Song announced today.
Judge Schwab imposed these sentences on Harry H. Kramer, 52, of Wexford, Pennsylvania.
According to the information presented to the court, Kramer was the Chief Financial Officer of Ibis Tek. Ibis Tek is a Butler, PA company previously owned 50/50 by brothers Thomas and John Buckner. Ibis Tek’s main office was located at 912 Pittsburgh Street, Butler, Pennsylvania 16002, and it had an office at Ibis Tek Victory Road facility, 220 South Noah Drive, Saxonburg, PA 16056. Ibis Tek manufactured both military and commercial products but specialized in the development of transparent armor and accessory products for tactical and military combat vehicles. Ibis Tek itself was not charged with any violations.
One of the primary sources of business for Ibis Tek was contracts and subcontracts for TACOM. TACOM is a Department of Defense agency in Warren, Michigan, was responsible for letting and overseeing contracts on behalf of the U.S. Department of Defense, including contracts concerning High Mobility Multipurpose Wheeled Vehicle (hereinafter Humvees). Ibis Tek had a subcontract to produce Vehicle Emergency Escape Window (VEE Window) Kits for Humvees. The Buckners and Kramer inflated Ibis Tek’s costs to manufacture the VEE Window kits by creating Alloy America, LLC, (Alloy) a company that was co-located at Ibis Tek that the Buckners controlled, by using Alloy to purchase the frames in China for $20 per frame, and by using false invoices from Alloy to make it appear that Ibis Tek paid $70 per frame. In addition, the Buckners sold scrap aluminum collected in the manufacturing process but Kramer and the Buckners failed to credit that money to TACOM. The losses to TACOM were $6,085,709, of which $367,356 is associated with Kramer’s specific conduct.
The income tax evasion charges against Kramer and the Buckner brothers arose from not reporting the cash from sales of scrap aluminum, and for taking unallowable business deductions described below. The criminal losses from these false returns was $423,473.
The contract fraud violations described above formed the basis for False Claims Act charges against the Buckner brothers brought by the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office. Attorneys on both sides agreed on a civil settlement of $12,171,580.00. On Friday, October 6, 2017, the Buckners made the final payment to the Department of the Treasury on their civil settlement.
There is one more related defendant who is awaiting sentencing on November 6, 2017. David S. Buckner, of Warren, Michigan, (no relation to Thomas or John Buckner) pleaded guilty to a one count information charging him with impeding the IRS by acting as a financial intermediary who received and then paid out money from Ibis Tek, LLC to Anthony Shaw, for the purpose of concealing that the monies were income of Shaw.
Anthony A. Shaw, 55, of Rochester Hills, Michigan, pleaded guilty to a five-count information. Shaw, formerly a civilian employee at TACOM, was a Deputy Project Manager responsible for directing development of and managing government contracts for combat vehicle systems such as Humvees. Shaw was charged in Counts One and Two with demanding and receiving a total of $1,055,500 of illegal gratuities paid by checks, cash and wire transfers by Thomas Buckner to and through David Buckner’s company, D & B Cycle Parts and Accessories, for Shaw’s benefit. Counts Three and Four charged Shaw with income tax evasion for 2009 and 2010 for not reporting the illegal gratuities. In Count Five Shaw was charged with making false statements when he denied that he had socialized with Thomas Buckner and John Buckner, and denied that he had traveled in a car, boat and an airplane owned by Thomas Buckner or John Buckner. Shaw was sentenced to 46 months of incarceration, a $100,000 fine, and restitution to the IRS of $325,800.
These cases were investigated by the Special Agents of the Department of Defense, Defense Criminal Investigative Service, the Internal Revenue Service, Criminal Investigation, and the U.S. Army Criminal Investigation Division.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the Special Agents of the Department of Defense, Defense Criminal Investigative Service, the Internal Revenue Service, Criminal Investigation, and the U.S. Army Criminal Investigation Division for the investigation leading to the successful prosecution of these defendants.
Foreign National Sentenced to 31 Months in Prison for Leadership Role in Human Smuggling ConspiracyRead the Press Release
A Pakistani citizen was sentenced today to 31 months in prison for his role in a scheme to smuggle undocumented migrants from Pakistan into the United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia and Special Agent in Charge Angel M. Melendez of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New York made the announcement.
Sharafat Ali Khan, 32, a Pakistani citizen and former resident of Brazil, pleaded guilty on April 12, to one count of conspiracy to smuggle undocumented migrants into the United States for profit before U.S. District Judge Reggie B. Walton of the District of Columbia. Khan was extradited to the United States from Qatar on July 13, 2016. Following his prison term, Khan will be deported back to Pakistan.
“Combatting human smuggling and illegal migration is one of the highest priorities of the Department of Justice, and we will continue to work with our domestic and international law enforcement partners to identify and disrupt smuggling networks operating across the globe,” said Acting Assistant Attorney General Blanco. “This prosecution should serve as an example that whether at home or abroad, smugglers who facilitate illegal migration into the United States will be brought to justice and held accountable.”
“Sharafat Khan was at the center of a vast human smuggling network that preyed on the desperation of foreign nationals hoping to get into the United States,” said U.S. Attorney Liu. “He was responsible for organizing, coordinating and controlling smugglers and lower-level associates of the operation. His actions put his clients – and the United States – at significant risk. His arrest, conviction and sentence should deter others from engaging in this rapacious, dangerous conduct.”
“Sharafat Khan organized an intricate network that was open to the highest bidder to transport undocumented migrants, regardless of who they were, from Pakistan and elsewhere through Brazil and Central America and then into the United States,” said Special Agent in Charge Melendez. “He has admitted that the journey included severe conditions that caused a considerable risk of serious bodily harm or death. Today’s sentencing highlights our relentless law enforcement efforts, both foreign and domestic, to track down organizations who make a profit from smuggling undocumented migrants through U.S. borders without prejudice and with a clear disregard for those who may end paying the final price.”
According to admissions in the plea agreement, between March 2014 and May 2016, Khan and other co-conspirators organized and arranged the unlawful smuggling of large numbers of undocumented migrants to the United States. For their smuggling operation, Khan admitted that he and his co-conspirators used a network of facilitators to transport undocumented migrants from Pakistan and elsewhere through Brazil and Central America and then into the United States by land, air or sea travel. Khan further admitted that he was responsible for managing safe houses for the migrants and arranging a network of associates in other countries to serve as escorts during different legs of the smuggling route. Khan also admitted that voyages included harsh conditions that caused a substantial risk of serious bodily injury or death – including lengthy foot hikes with little food and water through the Darien Gap, a dangerous tropical forest area in Panama. At sentencing, the court found that Khan was a primary organizer or leader of the conspiracy.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
HSI New York investigated this case with assistance from HSI Brazil, Mexico, Panama and Washington, D.C. field offices; the South Florida Joint Terrorism Task Force, FBI Miami Field Office; the Human Smuggling Cell; the U.S. Department of State’s Diplomatic Security Service in Brasilia, Brazil; the Brazilian Federal Police and the U.S. Customs and Border Protection’s National Targeting Center. The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition and foreign legal assistance requests. The Justice Department thanks the Government of Qatar for their assistance with the extradition in this case. Senior Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Ken Kohl and former Assistant U.S. Attorney Richard DiZinno of the District of Columbia prosecuted the case.
Foreign National Sentenced to 31 Months in Prison for Leadership Role in Human Smuggling ConspiracyRead the Press Release
WASHINGTON – A Pakistani citizen was sentenced today to 31 months in prison for his role in a scheme to smuggle undocumented migrants from Pakistan into the United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia and Special Agent in Charge Angel M. Melendez of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New York made the announcement.
Sharafat Ali Khan, 32, a Pakistani citizen and former resident of Brazil, pleaded guilty on April 12, to one count of conspiracy to smuggle undocumented migrants into the United States for profit before U.S. District Judge Reggie B. Walton of the District of Columbia. Khan was extradited to the United States from Qatar on July 13, 2016. Following his prison term, Khan will be deported back to Pakistan.
“Combatting human smuggling and illegal migration is one of the highest priorities of the Department of Justice, and we will continue to work with our domestic and international law enforcement partners to identify and disrupt smuggling networks operating across the globe,” said Acting Assistant Attorney General Blanco. “This prosecution should serve as an example that whether at home or abroad, smugglers who facilitate illegal migration into the United States will be brought to justice and held accountable.”
“Sharafat Khan was at the center of a vast human smuggling network that preyed on the desperation of foreign nationals hoping to get into the United States,” said U.S. Attorney Liu. “He was responsible for organizing, coordinating, and controlling smugglers and lower-level associates of the operation. His actions put his clients – and the United States – at significant risk. His arrest, conviction and sentence should deter others from engaging in this rapacious, dangerous conduct.”
“Sharafat Khan organized an intricate network that was open to the highest bidder to transport undocumented migrants, regardless of who they were, from Pakistan and elsewhere through Brazil and Central America and then into the United States,” said Special Agent in Charge Melendez. “He has admitted that the journey included severe conditions that caused a considerable risk of serious bodily harm or death. Today’s sentencing highlights our relentless law enforcement efforts, both foreign and domestic, to track down organizations who make a profit from smuggling undocumented migrants through U.S. borders without prejudice and with a clear disregard for those who may end paying the final price.”
According to admissions in the plea agreement, between March 2014 and May 2016, Khan and other co-conspirators organized and arranged the unlawful smuggling of large numbers of undocumented migrants to the United States. For their smuggling operation, Khan admitted that he and his co-conspirators used a network of facilitators to transport undocumented migrants from Pakistan and elsewhere through Brazil and Central America and then into the United States by land, air or sea travel. Khan further admitted that he was responsible for managing safe houses for the migrants and arranging a network of associates in other countries to serve as escorts during different legs of the smuggling route. Khan also admitted that voyages included harsh conditions that caused a substantial risk of serious bodily injury or death – including lengthy foot hikes with little food and water through the Darien Gap, a dangerous tropical forest area in Panama. At sentencing, the court found that Khan was a primary organizer or leader of the conspiracy.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
HSI New York investigated this case with assistance from HSI Brazil, Mexico, Panama and Washington, D.C. field offices; the South Florida Joint Terrorism Task Force, FBI Miami Field Office; the Human Smuggling Cell; the U.S. Department of State's Diplomatic Security Service in Brasilia, Brazil; the Brazilian Federal Police, and the U.S. Customs and Border Protection’s National Targeting Center. The Criminal Division’s Office of International Affairs provided significant support with the defendant’s extradition and foreign legal assistance requests. The Justice Department thanks the Government of Qatar for their assistance with the extradition in this case. Senior Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney Ken Kohl and former Assistant U.S. Attorney Richard DiZinno of the District of Columbia prosecuted the case.
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 Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
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.
Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg 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.
Firearms Crime ReportRead the Press Release
Ron Banks, 30, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Joshua Burton, 32, Arnold, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Darkel Martin, 31, East St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Jake Richardson, 24, St. Louis, was indicted by a federal grand jury on one felony count of felon in possession of a firearm.
Guy S. Long, 45, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
John Torregrossa, 29, St. Louis, pled guilty to one felony count of felon in possession of a firearm and one felony count of possession with intent to distribute heroin.
Cryland Robinson, 28, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
William Bowen, 38, St. Louis, pled guilty to one felony count of felon in possession of a firearm, one felony count of possession with intent to distribute methamphetamine and one felony count of possession of a firearm in furtherance of a drug trafficking crime.
Donald Dyson, 28, St. Louis, was sentenced to 60 months in prison to one felony count of possession of a firearm during commission of a crime of violence.
Devon Michael Branch, 24, St. Louis, was sentenced to 12months in prison for one felony count of felon in possession of a firearm.
Rodney Morgan, Jr., 37, St. Louis, was sentenced to 33 months in prison for one felony count of felon in possession of a firearm.
Ronald Houston, 39, was sentenced to 46 months in prison for one felony count of felon in possession of a firearm.
Leneko Waller, 23, St. Louis, was sentenced to 30 months in prison for one felony count of felon in possession of a firearm.
Antjuan D. Cannon, 35, St. Louis, was sentenced to 24 months in prison for one felony count of felon in possession of a firearm.
Nicholas W. Davis, 28, Hillsboro, was sentenced to 36 months in prison for one felony count of felon in possession of a firearm and distribution of a controlled substance.
Anthony Braziel, 38, St. Louis, was sentenced to 32 months in prison for one felony count of felon in possession of a firearm.
Trayondres Clark, 27, St. Louis, was sentenced to 27 months in prison for one felony count of felon in possession of a firearm.
Daren Hill, 33, St. Louis, was sentenced to 200 months in prison for one felony count of felon in possession of a firearm.
Jermain Morgan, 31, St. Louis, was sentenced to 24 months in prison for one felony count of felon in possession of a firearm.
Terry J. Williams, 20, St. Louis, was sentenced to 168 months in prison for one felony count of brandishing a firearm during commission of a federal crime of violence.
Larence Perry, 47, St. Louis, was sentenced to 33 months in prison for one felony count of felon in possession of a firearm.
Philip Roberts, 38, St. Louis, was sentenced to 24 months in prison for one felony count of felon in possession of a firearm.
Sylvester Clay, 44, St. Louis, was sentenced to 72 months in prison for one felony count of felon in possession of a firearm.
Fifth Member of “Manche Boy Mafia” Gang Sentenced to More Than Five Years in Credit Card Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Maurice Lewis (22, Tampa) to 5 years and 1 month in federal prison for conspiracy to commit credit card fraud and aggravated identity theft. He pleaded guilty to the charges on July 10, 2017.
According to court documents and statements made in open court, from at least January 2015, through November 2016, Lewis and other individuals affiliated in some way with the “Manche Boy Mafia” or “MBM” organization conspired to commit credit card fraud and identity theft in the Tampa Bay area. Investigators learned that these individuals had purchased stolen credit and debit card account numbers online from various websites, some of which used bitcoins as their currency. The conspirators purchased or stole reloadable gift cards and used a machine to emboss the stolen account numbers and their own names onto the front of these altered gift cards, thereby generating counterfeit credit cards. The conspirators then used these counterfeit cards at various retailers around the Tampa Bay area to purchase gift cards and electronics, which they either kept or sold for cash.
Investigators determined that these individuals had engaged in hundreds of successful transactions with counterfeit credit cards, and had possessed and used thousands of stolen account numbers from individuals across the United States. In total, Lewis was held responsible for more than $350,000 in intended or attempted purchases with counterfeit credit cards and stolen account information.
Lewis’ co-defendant, Demeko Wells, pleaded guilty to conspiracy and aggravated identity theft. He is scheduled to be sentenced on October 31, 2017.
In a related case, fellow MBM members (Brandon Lewis and Terrance Cobb) were each sentenced to 5 years and 1 month in federal prison; Dontae Williams was sentenced to 5 years and 10 months’ imprisonment; and Davon Smith was sentenced to 5 years and 5 months in federal prison - all for engaging in a conspiracy to commit credit card fraud, credit card fraud, and identity theft.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Federal Grand Jury IndictmentsRead the Press Release
Columbia, South Carolina----United States Attorney Beth Drake stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictment(s) against the following:
Newberry Man Indicted on Federal Firearm Charge. Maleik Houseal, age 22, of Newberry, was charged in a 1-count indictment with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). The charge carries a maximum of ten (1) years’ imprisonment, a fine of $250,000, and a term of supervised release of not more than three (3) years. The case was investigated by the Federal Bureau of Investigation and the Columbia Police Department and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.
The United States Attorney stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
West Columbia Man Indicted on Federal Drug and Weapon Charges. Bryshun Genard Furlow, age 34, of West Columbia, was charged in a 6-count superseding indictment with possession with intent to distribute and distribution of crack cocaine (3 counts), possession with intent to distribute cocaine and methamphetamine, using/possessing firearms during a drug trafficking crime, and being a felon in possession of firearms and ammunition, all in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Sections 922(g)(1) and 924(c). Each drug charges carries a maximum of thirty (30) years’ imprisonment with a fine of $2,000,000 and a term of supervised release of at least six (6) years. The felon in possession charge carries a maximum of ten (10) years’ imprisonment, a fine of $250,000 and a term of supervised release of not more than three (3) years. The use/possession of firearms during a drug trafficking crime carries a statutory mandatory minimum five (5) year imprisonment with a maximum of life, a fine of $250,000 and a term of supervised release of not more than three (3) years. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lexington County Sheriff’s Department and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.
The United States Attorney stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
Georgia Man Indicted for Bringing Bankruptcy Scheme to South Carolina. Nathaniel Florin Noble, a/k/a “Florin David Olaru,” age 50, was charged today in a three-count indictment with bankruptcy fraud, false bankruptcy declarations, and contempt of court, all in violation of Title 18, United States Code, Sections 152, 157, and 401. According to the indictment, Noble filed a 2017 bankruptcy petition, in which he made false representations. Noble’s bankruptcy petition also failed to comply with a previous order issued by the Northern District of Georgia Bankruptcy Court, in which the court ordered Noble not to file for bankruptcy for a five-year period.
If convicted of bankruptcy fraud, Noble faces a maximum sentence of five years and a fine of $250,000. The case was investigated by the Office of the United States Trustee and the Internal Revenue Service, and is assigned to Assistant United States Attorney Alyssa Leigh Richardson of the Columbia office for prosecution.
The United States Attorney stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
#####
FCI-Loretto Inmate Sentenced to Nine Additional Months in Prison for Possessing DrugsRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., pleaded guilty in federal court to a charge of possession of a prohibited object in prison, and was sentenced to nine months in prison, consecutive to the current sentence he is presently serving in federal prison, and three years’ supervised release, concurrent with his present sentence, Acting United States Attorney Soo C. Song announced today.
Edwin Manuel Guzman, 35, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on December 22, 2016, Guzman possessed a quantity of Buprenorphine.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Ms. Song commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Guzman.
Eight Men Arrested on Federal Child Sex Trafficking ChargesRead the Press Release
FORT WORTH, Texas — Eight men are in federal custody on sex trafficking of children charges outlined in a federal criminal complaint filed last week, announced U.S. Attorney John Parker of the Northern District of Texas.
The following individuals were charged and have made their initial appearances before U.S. Magistrate Judge Jeffrey L. Cureton. They have been remanded to custody pending additional court hearings.
Pierre Lagrone, aka “P” or “Pedro,” 33
Robert Roseberry, aka “King Rose,” 29
Herman Sanders, aka “Pooh,” 29
Reginald Smith, aka “Green Light,” 28
Demarcus Davis, aka “Zigg,” 25
Kentrell Davis, aka “Zeal,” 24
Cederrick Clarkson, aka “Ced” or “Spazz,” 25
Terroderick Watts, aka “Silk,” 27
According to the affidavit filed with the criminal complaint, in March of 2017, the Fort Worth Police Department’s VICE Unit conducted a recovery operation in response to a lead sent from the National Center for Missing and Exploited Children (NCMEC) in reference to a suspected victim of Child Sex Trafficking. Fort Worth VICE Unit located and utilized a Backpage.com ad containing photographs of a minor female, Jane Doe 1, that advertised commercial sex acts. As a result of the operation, Jane Doe 1 was recovered. Additionally, two other minor females, Jane Doe 2 and Jane Doe 3, were also located in a closet located in Jane Doe 1’s hotel room at the time she was recovered.
The three females, and others, were victims of a child sex trafficking organization. Lagrone, Roseberry, Sanders, Smith, D. Davis, K. Davis, Clarkson and Watts were members of that organization and recruited, advertised and sold several women, both adults and underage for the purpose of commercial sex. They frequently worked together as an organization by utilizing some of the same underage and adult female victims to engage in commercial sex acts, operating out of the same hotels while engaging in a commercial sex enterprise, transporting female victims for the purpose of commercial sex acts, utilizing and sharing cellphones that were used to post ads for commercial sex on Backpage.com, taking photographs of female victims either nude or in their underwear that were used in Backpage.com ads for commercial sex and obtaining hotel rooms that were used to engage in commercial sex activities. The defendants were also frequently violent if the females angered them or did not follow their directions.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense as charged is life in federal prison and a $250,000 fine.
The U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Federal Bureau of Investigation and the Fort Worth, Tyler and Arlington Police Departments are investigating. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
# # #
Doctor Admits Billing Medicare, Other Insurers $3 Million for Therapy Services Performed by Unqualified PersonnelRead the Press Release
NEWARK, N.J. – A doctor with offices in Paterson, New Jersey, Passaic, New Jersey, and Elizabeth, New Jersey, today admitted defrauding Medicare and private insurance companies out of $3 million by billing for more than 150,000 physical therapy sessions that were performed by unlicensed and unqualified personnel, Acting U.S. Attorney William Fitzpatrick announced.
Anthony J. Enrico, 60, of North Haledon, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of health care fraud.
According to the documents filed in the case and statements made in court:
From January 2007 through May 2016, Enrico billed Medicare and other health insurance providers for physical therapy services that he supposedly provided to his patients. In order for them to be reimbursable, Medicare and private insurers required that physical therapy services be performed only by individuals like Enrico who met certain criteria based on training and certifications.
Enrico admitted that on more than 150,000 occasions, those services were performed at his direction by individuals who lacked the necessary training and certifications, resulting in him fraudulently obtaining approximately $3 million from Medicare and private insurers.
Enrico faces a maximum potential penalty of 10 years in prison and a fine of up to twice the loss caused by the offense. As part of his plea agreement, Enrico must also pay restitution of $3 million. Sentencing is scheduled for Jan. 25, 2018.Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott Lampert, and the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Senior Litigation Counsel Joseph N. Minish of the U.S. Attorney’s Health Care and Government Fraud Unit and Assistant U.S. Attorney Elaine Lou of the U.S. Attorney’s Office Criminal Division.
The U.S. Attorney’s Office for the District of New Jersey reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.36 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
Defense counsel: Christopher D. Adams Esq., Holmdel, New JerseyDepartment of Justice Reminds the Public Disaster Fraud Is A Federal Crime and to Report ItRead the Press Release
LAS VEGAS, Nev. – The U.S. Attorney’s Office for the District of Nevada and the FBI’s Las Vegas Office remind the public to be aware of and report suspected fraudulent activity related to disaster assistance relief in the aftermath of a series of natural disasters in the United States and the recent tragedy in Las Vegas. Unfortunately, criminals may use tragic events to exploit individuals and communities for their own gain. Solicitations can originate from social media, e-mails, websites, door-to-door collections, mailings, telephone calls, and other similar methods.
The Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the Department of Justice’s National Center for Disaster Fraud at http://www.justice.gov/disaster-fraud.
###
Davenport Man Sentenced to 175 Months in Prison for Distributing Heroin and Possessing a FirearmRead the Press Release
DAVENPORT, Iowa – On October 16, 2017, United States District Court Judge Rebecca Goodgame Ebinger sentenced Anthony McKinley Harris, 27, of Davenport, Iowa, to 175 months in prison for conspiracy to distribute heroin and 120 months in prison for felon in possession of a firearm, announced United States Attorney Marc Krickbaum. McKinley was also ordered to serve three years of supervised release following his imprisonment and pay $100 to the Crime Victims’ Fund for both counts.
On March 27, 2017, McKinley pled guilty to the charges, which arose from an investigation of McKinley selling heroin. Beginning in February of 2016 and continuing until April 6, 2016, McKinley sold heroin to numerous individuals in the Davenport area, including a confidential informant working for law enforcement. In total, over 100 grams of heroin were attributed to McKinley. During that time period, law enforcement executed search warrants at McKinley’s residence and a hotel room where he was staying. Law enforcement seized numerous items, including over six grams of heroin, a loaded .380 semi-automatic Lorcin, and approximately $1,900. McKinley has a prior felony conviction for manufacturing/delivery of cocaine and six prior felony convictions for residential burglary.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by calling Kevin E. VanderSchel at 515-473-9300, or by emailing him at [email protected] (link sends e-mail).
Dallas Man Admits to Committing $50 Million TRICARE FraudRead the Press Release
DALLAS — Andrew Joseph Baumiller, 38, of Dallas, Texas, pleaded guilty today before U.S. Magistrate Judge David L. Horan to one count of conspiracy to commit health care fraud stemming from a scheme to defraud TRICARE, the health insurance program for members of the military and their families. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Baumiller faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine, and will be ordered to pay restitution. Baumiller will remain in custody pending sentencing, which is scheduled before Chief U.S. District Judge Barbara M.G. Lynn in February, 2018.
According to documents filed in the case, Baumiller admitted to conspiring with Richard Robert Cesario, John Paul Cooper, Dr. Walter Neil Simmons, Dr. William F. Elder-Quintana, Joe Larry Straw, Luis Rafael Rios, Michael John Kiselak, and others to defraud TRICARE out of more than $50 million from May 2014 through February 18, 2016, through a scheme involving compounded pain creams, scar creams, and vitamin supplements. Baumiller is the first defendant to plead guilty in this case. Cesario, Cooper, Simmons, Quintana, Straw, Rios, Kiselak, and four other defendants are scheduled for trial next year.
According to the superseding indictment filed October 4, 2016, Cesario and Cooper orchestrated a scheme through their marketing company, CCMGRX, LLC, to generate prescriptions by paying illegal kickbacks to TRICARE beneficiaries and prescribing doctors, and to receive illegal kickbacks in exchange for those prescriptions from four Texas-based compounding pharmacies: Trilogy Pharmacy (Trilogy) in Dallas, 360 Pharmacy Services in Webster, Dandy Drug in Burleson, and Alpha Pharmacy in Irving.
The superseding indictment alleges that the scheme caused TRICARE to suffer an actual loss of more than $100 million. In connection with his guilty plea, Baumiller, who served as the President of Trilogy and oversaw its day-to-day operations, admitted that TRICARE paid Trilogy more than $50 million that was tainted by the payment of illegal kickbacks.
The superseding indictment alleges that Cesario, Cooper, Straw, Rios, Kiselak and others disguised the illegal kickbacks they paid to TRICARE beneficiaries as “grants” for participating in a medical study they referred to as a TRICARE-approved “Patient Safety Initiative” or “PSI Study” designed to evaluate the safety and efficacy of compounded drugs. In reality, the PSI Study was not approved by TRICARE, was not overseen by a qualified physician or medical professional, had no control group, and was not designed to gather any useful scientific data relating to the safety and efficacy of any drug. In connection with his guilty plea, Baumiller admitted that he knew about the sham study but “pretended not to know the truth because CCMGRX was generating so much business and they were all making a lot of money.”
Baumiller further admitted that Trilogy paid Cesario, Cooper, Straw, Rios, Kiselak, and other CCMGRX marketing reps as W-2 employees of Trilogy “in order to give a false appearance of compliance with the statutory and regulatory bona fide employee safe harbor provisions of the Anti-Kickback Statute in order to defraud TRICARE and other federal health care programs.”
At times, according to the factual resume, Trilogy received prescriptions for patients who lived in states where Trilogy was not licensed to do business. Rather than refuse to fill these prescriptions, Baumiller and others shipped the prescriptions to a local courier, marketing rep, or relative, who in turn shipped the prescriptions to the patient. This enabled Trilogy to increase the number of claims it could submit to TRICARE and other federal health care programs.
The Federal Bureau of Investigation and Defense Criminal Investigative Service investigated the case. Assistant U.S. Attorneys Douglas Brasher and Paul Yanowitch are prosecuting.
# # #
Cumberland County Man Sentenced to over 17 Years’ Imprisonment for Receiving Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge William W. Caldwell sentenced John Alexander Driscoll, age 61, of Mechanicsburg, Pennsylvania, to 210 months’ imprisonment, followed by a 15-year term of supervised release for receiving and distributing images depicting the sexual exploitation of children.
According to United States Attorney Bruce D. Brandler, Driscoll received and distributed thousands of images depicting the sexual exploitation of children as young as eight-years-old. These images included the sadistic and masochistic abuse of children.
In 1988, Driscoll was convicted of receiving child pornography through the mail. As such, Driscoll was subject to enhanced penalties.
Judge Caldwell also ordered Driscoll to pay $25,314 in restitution, and to register as a sex offender.
This case was investigated by the United States Postal Inspection Service, and the Pennsylvania Office of the Attorney General. Assistant United States Attorney Daryl Bloom prosecuted the case.
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."
# # #
Convicted Fugitive Gets Significant Sentence After Re-captureRead the Press Release
LAREDO, Texas – A Laredo man has been sentenced to federal prison after being a fugitive from justice for more than 10 years, announced Acting U.S. Attorney Abe Martinez.
Luis Enrique Flores, 44, pleaded guilty May 6, 2005, admitting he possessed with intent to distribute more than four kilograms of methamphetamine.
In August 2005, Flores was released on bond but then failed to appear for his hearings or report to pretrial services. Flores remained a fugitive until his arrest on June 5, 2017. He pleaded guilty to a charge of failure to appear on July 31, 2017.
Today, U.S. District Judge Diana Saldana ordered he serve a total of 108 months in federal prison - 100 months for the drug conviction followed by a consecutive sentence of eight months imprisonment for the failure to appear. Flores will also serve a five-year-term of supervised release following completion of his sentence.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the original drug investigation. The U.S. Marshals Service and its Fugitive Task Force investigated the charges of failure to appear. Assistant U.S. Attorney José Angel Moreno is prosecuting the case.
Civilian Charged with Aggravated Sexual Abuse on Fort BraggRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that in federal court, before United States Magistrate Judge James E. Gates, DAMIN CHASE MARSHALL, of Fayetteville, North Carolina, was charged in a federal Criminal Complaint with one count of Aggravated Sexual Abuse by Force or Threat.
MARSHALL, a civilian, is alleged to have committed forcible rape against a female U.S. service member on the Fort Bragg Army Installation. The United States Attorney’s Office pursued this crime as part of its responsibility to prosecute crime within United States military premises.
The charge and allegations contained in the Criminal Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the United States Army Criminal Investigation Command.
Chinle Man Sentenced to Lengthy Prison Term for Abusive Sexual Contact of a ChildRead the Press Release
PHOENIX – Yesterday, Marcurio Carlisle Tsosie, 34, of Chinle, Ariz., was sentenced by U.S. District Judge John J. Tuchi to 18.5 years’ imprisonment, to be followed by lifetime supervised release with sex offender conditions. Tsosie had previously pleaded guilty to abusive sexual contact of a child.
In November of 2016, the nine year-old victim, a member of the Navajo Nation, reported Tsosie’s sexual abuse to the victim’s mother. Agents of the Federal Bureau of Investigation promptly began an investigation, which led to Tsosie’s arrest and prosecution. Tsosie is also a member of the Navajo Nation, and the abuse occurred within the Navajo Nation Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys William G. Voit and Sharon K. Sexton, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8045-JJT
RELEASE NUMBER: 2017-098_ Tsosie
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Chinese National and Eight Others Indicted in North Dakota in "Operation Denial"Read the Press Release
FARGO - US Attorney Christopher C. Myers, along with US Attorney Billy J. Williams, District of Oregon, announced on October 17, 2017, that Jian Zhang, 38, of China, was charged by an Indictment returned on September, 21, 2017, of the following offenses: (1) Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death; (2) Conspiracy to Import Controlled Substances and Controlled Substance Analogues into the United States Resulting in Serious Bodily Injury and Death; (3) Money Laundering Conspiracy to Conceal the Nature, Location, and Ownership of Proceeds of Specified Unlawful Activity; and (4) International Money Laundering Conspiracy; and (5) Continuing Criminal Enterprise.
The charges come as part of "Operation Denial," an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal drugs, and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington D.C. as part of "Operation Deadly Merchant." The investigation started in North Dakota on January 3, 2015, with the overdose death in Grand Forks of 18-year-old Bailey Henke. Additional defendants charged in this Indictment with drug trafficking conspiracy include:
1. Jason Joey Berry, 34, Quebec, Canada;
2. Anthony Santos Gomes, 33, Davie, Florida;
3. Elizabeth Ton, 26, Davie, Florida;
4. Xuan Cahn Nguyen, 38, Quebec Canada;
5. Marie Um, 37, Quebec Canada;
6. Vannek Um, 39, Quebec, Canada;
7. Linda Van, 25, Quebec, Canada; and
8. Darius Ghahary, 48, Ramsey, New Jersey.
Additional defendants charged in Federal court as a result of this investigation include:
District of North Dakota
1. Daniel Vivas Ceron, 36, Columbia – awaiting trial currently set for February 8, 2018.
2. Jameson Robert Sele, 20, Grand Forks, ND – Pled guilty to Conspiracy to Distribute Controlled Substances and was sentenced on 7/27/15 to 36 months’ in federal prison.
3. Ryan Jon Jensen, 20, Grand Forks, ND – Pled guilty on 2/27/15 to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; two Counts of Distribution of a Controlled Substance Resulting in Death; Distribution of a Controlled Substance Resulting in Serious Bodily Injury; and Money Laundering Conspiracy, and was sentenced on 2/2/2016 to 20 years in federal prison.
4. David Todd Noye Jr., 18, Grand Forks, ND – Pled guilty on 5/4/15 to Conspiracy to Distribute Controlled Substances and was sentenced on 1/25/2016 to serve 3 years and 3 months in federal prison.
5. Joshua Tyler Fulp, 20, Grand Forks, ND – Pled guilty on 6/23/15 to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death and was sentenced to 12 years in federal prison.
6. Kain Daniel Schwandt, 19, Grand Forks, ND - Pled guilty on 7/24/15 to Conspiracy to Distribute Controlled Substances and was sentenced on 1/25/2016 to serve 3 years and 6 months in federal prison.
7. Brandon Corde Hubbard, 40, Portland, OR - Indicted on charges of Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; Distribution of a Controlled Substance Resulting in Death; and Money Laundering Conspiracy and was sentenced on 07/13/2016 to serve life in federal prison.
8. Ronnie Lee Helms, 30, Acworth, GA - Indicted on charges of Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death. Jury trial is set for 3/7/2017.
9. Braden James Foley, 28, Olympia, WA - Pled guilty on 8/11/2016 to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance and was sentenced on 11/21/2016 to serve 30 months in federal prison.
District of Oregon
1. Channing Lacey, 30, Portland, Oregon - Plead guilty on 3/28/17 to one Count of Distribution of a Controlled Substance Resulting in Serious Bodily Injury to three individuals and one Count of Distribution of a Controlled Substance Resulting in Death and was sentenced to 135 months imprisonment.
2. Carissa Marie Laprall, 25, Portland, Oregon - Plead guilty on 3/28/17 to three Counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and is awaiting sentencing.
3. Steven Fairbanks Locke, 41, Portland, Oregon - Plead guilty on 6/14/17 to Use of a Communication Facility to Facilitate a Drug Offense and is awaiting sentencing.
These cases are being investigated by the Department of Homeland Security - Homeland Security Investigations; Drug Enforcement Administration; United States Postal Inspection Service; Grand Forks Narcotics Task Force; Royal Canadian Mounted Police; Portland, Oregon, Police Bureau – Drugs and Vice Division; Portland HIDTA Interdiction Task Force; Oregon State Police; and the Grand Forks Police Department. The principle mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations and those primarily responsible for the nation’s illegal drug supply.
United States Attorney Christopher C. Myers (North Dakota), Assistant U.S. Attorney Scott Kerin (Oregon), and Adrienne Rose of the Department of Justice - Narcotics and Dangerous Drugs Section, are prosecuting the cases.
## The Indictment in this case is not evidence of guilt. The defendants are presumed innocent unless or until proven guilty beyond a reasonable doubt at trial. ##
Chinese National Indicted for his Role in Distributing Fentanyl that resulted in four drug overdoses in OregonRead the Press Release
PORTLAND – Today in Washington D.C., Deputy Attorney General Rod Rosenstein, along with United States Attorney for the District of Oregon Billy J. Williams and United States Attorney for the District of North Dakota Christopher C. Myers, announced that Jian Zhang, 38, of China, has been indicted for a series of crimes related to his exportation of fentanyl from China into the United States. The indictment alleges that the fentanyl Zhang shipped from China resulted in multiple drug overdoses across the country, including four overdoses that occurred within the District of Oregon in 2015.
This prosecution is the result of a unique and joint investigation between two United States Attorney Offices and has led to multiple indictments in both districts. In the most recent North Dakota Indictment dated September 20, 2017, Zhang, along with five Canadian citizens, two residents of Florida, and a resident of New Jersey were charged, with among other things, of being involved in a criminal Conspiracy to Distribute Controlled Substances and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death.
"The illegal distribution of fentanyl and related opioids is a true national crisis that has left a trail of death and destruction across the country," stated U.S. Attorney Billy J. Williams. "This case highlights both the international scope of the problem and the willingness and ability of our two districts to work together to reach out across borders to shut down and prosecute these merchants of death – I am proud of the work our team has done."
The investigation started in North Dakota on January 3, 2015, with the fentanyl overdose death of an 18-year old individual in Grand Forks. Investigators subsequently identified the source of the fentanyl as a Darknet distributor operating out of Portland, Oregon. On January 22, 2015, in a coordinated law enforcement mission, a federal search warrant was executed on the fentanyl dealer’s residence in Southeast Portland and he was arrested. After making an initial appearance in Oregon, the dealer, Brandon Corde Hubbard, age 40, was indicted in North Dakota, where he was prosecuted and sentenced to serve life in federal prison.
As a result of this joint effort and prior to the most recent Indictment against Zhang and others, eight additional individuals were indicted in North Dakota and three defendants were indicted in Oregon. So far, 21 individuals from China, Canada, and the United States have been indicted on federal drug charges in both North Dakota and Oregon. The Oregon defendants are:
1. Channing Lacey, 30, Portland, Oregon - Pled guilty on 3/28/17 to one count of Distribution of a Controlled Substance Resulting in Serious Bodily Injury to three individuals and one count of Distribution of a Controlled Substance Resulting in Death. On 8/28/17 she was sentenced to 135 months imprisonment.
2. Carissa Marie Laprall, 25, Portland, Oregon - Pled guilty on 3/28/17 to three counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and is awaiting sentencing.
3. Steven Fairbanks Locke, 41, Portland, Oregon - Pled guilty on 6/14/17 to Use of a Communication Facility to Facilitate a Drug Offense and is awaiting sentencing.
All charges are part of "Operation Denial," an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal
drugs, and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington D.C. as part of
"Operation Deadly Merchant." The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations and those primarily responsible for the nation’s illegal drug supply. Prior to his indictment, Zhang was designated as an OCDETF Consolidated Priority Organization Target (CPOT), and is considered by the United States as one of the most significant drug trafficking threats in the world.
This case is being investigated by the Department of Homeland Security - Homeland Security Investigations; Drug Enforcement Administration; United States Postal Inspection Service; Grand Forks Narcotics Task Force; Royal Canadian Mounted Police; Portland Oregon Police Bureau – Drugs and Vice Division; Portland HIDTA Interdiction Task Force; Oregon State Police; Multnomah County Sheriff’s Office; and, the Grand Forks Police Department.
United States Attorney for the District of North Dakota Christopher C. Myers, Assistant U.S. Attorney for the District of Oregon Scott Kerin (who is also acting as a Special Assistant United States Attorney in North Dakota), and Adrienne Rose of the Department of Justice, Narcotics and Dangerous Drugs section, are jointly prosecuting the Zhang case in North Dakota.
## The Indictment in this case is not evidence of guilt. The defendants are presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
Charlotte Man Sentenced to More Than Five Years on Bank Conspiracy and Aggravated Identity Theft ChargesRead the Press Release
CHARLOTTE, N.C. – Kendell Rashad Bowden, 26, of Charlotte, was sentenced today by U.S. District Judge Robert J. Conrad, Jr. to 66 months in prison and three years of supervised release for bank fraud conspiracy and aggravated identity theft charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined making today’s announcement by David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS), Matthew Quinn, Acting Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
According to court documents and today’s sentencing hearing, between December 2015 and July 2016, Bowden defrauded individuals and financial institutions by using stolen personal identification information (PII) to obtain fraudulent credit card accounts at retails stores in Mecklenburg and Iredell counties. Bowden accessed and used, or attempted to access and use, the stolen identities of at least 10 individuals. Court records show that Bowden also used PII of one victim and a corresponding fake driver’s license, to obtain auto bank loans and to purchase two vehicles. In total, Bowden’s fraudulent conduct resulted in losses of more than $96,000.
According to court records, in February 2017, while he was on bond on the federal charges, Bowden used the PII of another victim to obtain a credit card in the victim’s name. Court records indicate that Bowden accidentally sent to his probation officer a text message, which contained the victim’s PII. Court records show that Bowden then called his probation officer and asked him to delete the text message, telling the probation officer that text was intended for Bowden’s sister.
Bowden is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Rose thanked USPIS, USSS and CMPD for their investigation, which are members of the Charlotte Financial Crimes Task Force (CFCTF). The task force was formed in early 2016 by the U.S. Postal Inspection Service and currently consists of over 25 local, state and federal law enforcement agencies located in the Western District of North Carolina. The goal of the taskforce is to focus on the identification and development of financial fraud investigations in the Charlotte area. Based on crime trends in the area, the task force began to focus its efforts on violent offenders with lengthy criminal histories who are committing fraud.
Assistant U.S. Attorney Kimlani M. Ford, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Centre Hall Man Charged with Scheme to Defraud His Former Employer of $218,000Read the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Patrick Henry Stewart, age 53, of Centre Hall, Pennsylvania, was charged on October 16, 2017, in a criminal information with making interstate wire transfers to defraud his former employer, Nittany Valley Paper Mills in Lewistown, Pennsylvania, of approximately $218,098.
According to United States Attorney Bruce D. Brandler, the information charges that, between June 2014 and March 2016, while employed as the vice president for operations, Stewart fraudulently charged personal goods and services on Nittany Paper Mills credit card accounts and transferred company funds to pay his personal credit card bills. The information alleges that Stewart also fraudulently transferred funds from the Nittany Paper Mills checking account to 529 education accounts for his children, and he arranged off-the books sales of inventory resulting in the direct deposit of funds into his personal accounts. The information also alleges that Stewart made fraudulent adjusting entries in the Nittany Paper Mills internal accounting system to conceal the wire fraud scheme.
Under the terms of a plea agreement filed with the information, Stewart has agreed to plead guilty to the wire fraud offense and pay restitution in an amount to be determined by the sentencing judge.
The matter was investigated by the Federal Bureau of Investigation. Prosecution of this matter has been assigned to Assistant U.S. Attorney George J. Rocktashel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Call to Action to Join National Day of Non-ViolenceRead the Press Release
I remember prosecuting a gun case not long after becoming a federal prosecutor in 2005 and thinking about how, at some point, the individual across the courtroom had decided that violence was the best way to settle a dispute. He illegally used a gun to address a personal problem, just like he had seen so many others around him do throughout his life.
It’s my job, as the chief federal law enforcement official for my district, to help decrease violent crime. We do that, in part, by vigorously prosecuting illegal, habitual gun possession and use to the fullest extent of the law. Removing people who cause violence from our streets makes everyone safer. I believe in that work, and I, along with my Assistant United States Attorneys, will continue to pursue that work wholeheartedly.
Facing an offender across a courtroom, however, means that we’ve already lost in so many ways.
It means the defendant’s community has already been terrorized by violence. It means the defendant has given up opportunities to thrive and to meet his potential in a productive way. It means families will be split apart as a loved one serves years—possibly the rest of his life—in federal prison.
Making our communities safe requires more than robust enforcement after crimes have already been committed. We must—as law enforcement officials and especially as members of the community—care about preventing and deterring violent crime as much as we care about reacting to it.
That is why I’m asking educators, parents, and, most importantly, students all over Southern Ohio to take a stand with me on October 18 against gun violence.
October 18 marks the 21st annual Day of National Concern about Young People and Gun Violence. Since 1996, more than 10 million students have signed a pledge committing to non-violence.
The pledge is pretty straightforward. Never use a gun to settle a dispute. Influence your friends to do the same.
Individual choices and actions, when multiplied by those of young people throughout our state and the nation, will make a difference. Together, by honoring this pledge, more young people can grow up in safety.
I don’t want to face any more young people in the courtroom who, at some point, decided that violence was the best way to handle a dispute and picked up a gun.
# # #
California Man Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A California man pleaded guilty today to drug trafficking charges related to his role in a conspiracy to distribute large quantities of crystal meth.
According to court documents, Shawn Yaeger, 45, of West Hollywood, led a conspiracy to distribute crystal methamphetamine in several states, including Virginia, New Jersey, California, and Florida. Yaeger admitted to receiving large-scale quantities of crystal methamphetamine through various parcel services and providing it to co-conspirators for re-distribution. Yaeger also admitted to obtaining stolen personal identifying information and credit card information, which he used to commit access device fraud and bank fraud. Specifically, Yaeger produced numerous counterfeit and unauthorized credit and debit cards, and used stolen or otherwise fraudulent identities to open bank accounts and acquire access to credit.
Yaeger pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine and faces a mandatory minimum of 10 years and maximum penalty of life in prison when sentenced on Jan. 26, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and M. Jay Farr, Arlington County Chief of Police, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Special Assistant U.S. Attorney David A. Peters and Assistant U.S. Attorney Colleen E. Garcia are prosecuting the case.
The case is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Four Horsemen. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-241.
C & G Savings Bank Employee Admits Stealing Funds from Customers’ AccountsRead the Press Release
JOHNSTOWN, Pa. - A resident of Ebensburg, Pa., pleaded guilty in federal court to a charge of misapplication of funds by a bank employee, Acting United States Attorney Soo C. Song announced today.
Tonya Wade, 43, of Ebensburg, Pa. pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from Sept. 17, 2012, to Aug. 29, 2013, Wade, while employed as a teller at C & G Savings Bank in Gallitzin, Pa, removed $20,950 from customers’ accounts and thereafter converted those funds to her personal use.
Judge Gibson scheduled sentencing for February 14, 2018, at 10:00 a.m. The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Wade.
Bridgeville Man Charged with Possession of Child PornographyRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on October 10 and unsealed today, named John Edward Desalome, age 29, of Bridgeville, Pennsylvania, as the sole defendant.
According to the Indictment, on November 23, 2016, Desalome possessed videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum sentence of 10 years imprisonment, a maximum term of supervised release of life, and a fine of $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.justice.gov/psc.
Bakersfield Man Sentenced to More Than Eleven Years in Prison for Child Pornography OffenseRead the Press Release
FRESNO, Calif. — Eliot Brown, 29, of Bakersfield, California, was sentenced yesterday to more than eleven years in prison for receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
Chief U.S. District Judge Lawrence J. O’Neill also imposed a term of supervised release of 15 years, during which Brown will be required to register as a sex offender and his access to the internet, computers, and children will be restricted.
According to court documents, between February 1, 2014, and October 7, 2015, he knowingly received more than 600 images of minors engaged in sexually explicit conduct, some of which depicted violence. On at least two occasions, Brown encouraged a minor to engage in sexually explicit conduct and transmit the images to him.
This case was the result of an investigation by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in Bakersfield, California and Fayetteville, Arkansas. Assistant U.S. Attorney David Gappa prosecuted the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Attorney General Sessions Announces Director of Asset Forfeiture AccountabilityRead the Press Release
Attorney General Sessions issued a memorandum to Deputy Attorney General Rod Rosenstein this week, directing him to hire a Director of Asset Forfeiture Accountability (“Director”). The Director will review and coordinate all aspects of the Department’s Asset Forfeiture Program, and work with appropriate Department of Justice components to ensure compliance, review complaints, and advance the integrity, efficiency, and effectiveness of the program.
About the memorandum, Attorney General Sessions made the following statement: “As our law enforcement partners will tell you and as President Trump knows well, asset forfeiture is a key tool that helps law enforcement defund organized crime, take back ill-gotten gains, and prevent new crimes from being committed, and it weakens the criminals and the cartels. Even more importantly, it helps return property to the victims of crime.“For this to be effective, however, we must start with strong leadership at the top, in conjunction with close coordination of forfeiture activities at all levels of the Department of Justice. That’s why, today, I have directed the hiring of a Director of Asset Forfeiture Accountability within the Office of the Deputy Attorney General.
“The Director will begin work immediately on priority initiatives and recommendations, including: modernization of the National Asset Forfeiture Strategic Plan, updating the Asset Forfeiture Program's policy guidance, and improving controls over use of program funds. I make this decision today because I believe it is important to have senior-level accountability in the Department of the day-to-day workings of the asset forfeiture program, as well as authority to coordinate with relevant components to make the necessary changes to the program to ensure it continues to operate in an accountable and responsible way."
Note: View the memorandum here.
16 October 2017
Youth Organizer Convicted of Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A teen mentor and founder of a nonprofit youth organization has been convicted of sexual exploitation of a child, otherwise known as production of child pornography, announced Acting U.S. Attorney Abe Martinez.
Kevin Ray McMillan, 37, of Corpus Christi, was a former teen mentor with the Boys and Girls Club of Corpus Christi and founder of Texas Youth Entrepreneurs - a nonprofit youth organization that mentors aspiring young future business owners. In May 2017, authorities learned McMillan had been sending sexually-explicit text messages via cellular telephone to a juvenile female. The investigation led to the discovery that McMillan had engaged in sexual activity with the young girl, which was photographed via cellular telephone. He was taken into custody as he was traveling to engage in sexual activity with a minor.
Senior U.S. District Judge John D. Rainey accepted the guilty plea today and set sentencing for Jan. 22, 2018. At that time, McMillan faces a minimum of 15 and up to 30 years in federal prison and a possible $250,00 maximum fine. Upon completion of any prison term imposed, McMillan also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
McMillan was arrested on federal charges in May 2017 and has been in custody since that time where he will remain pending his sentencing hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Williams County man indicted on heroin and firearms chargesRead the Press Release
A Williams County man was indicted on fireams and heroin charges, said U.S. Attorney Justin E. Herdman.
Zachary Thomas McCauley, 27, of Edgerton, was indicted on one count each of being felon in possession of a firearm, possession with intent to distribute heroin and possessing a firearm in furtherance of a drug trafficking offense.
McCauley possessed 61 grams of heroin and a Beretta 40-caliber pistol and a Walther 22-caliber pistol between March 29-31, 2017. McCauley has previous convictions for felonious assault and aggravated assault which preclude him from possessing a firearm, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Bureau of Alcohol, Tobacco, Firearms and Explosives in Toledo. The case is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wife of Former Mexican Official Convicted in Bank Fraud ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - The wife of the former Tabasco, Mexico, Secretary of Finance has been found guilty of conspiracy to commit bank fraud, announced Acting U.S. Attorney Abe Martinez. A federal jury in Corpus Christi returned its verdict late Friday against Silvia Beatriz Perez-Ceballos, 49, of Sugar Land, following 10 days of trial and approximately five hours of deliberation.
At trial, the government presented evidence that included several extremely complex money laundering transactions involving multiple fictitious U.S. and Mexican companies and more than $40 million in laundered funds. The jury heard that Perez-Ceballos made false statements and submitted falsified documents to J.P. Morgan Chase Bank official in an effort to move $2 million to an offshore account in Bermuda. Perez-Ceballos also attempted to hide several assets, including a high-end Sugar Land residence under the company name Phantom Investments International. The case involved real property purchases in all cash transactions in Los Angeles, California, New York, New York, Miami, Florida and Houston.
Perez-Ceballos faces up 30 years in federal prison and a possible $1 million maximum fine.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and has set sentencing for Dec. 15, 2017. Perez-Ceballos will remain in custody pending that hearing.
Also charged in relation to the conspiracy is her husband - Jose Manuel Saiz-Pineda, 49 - and his business associate Martin Alberto Medina-Sonda, 44. Saiz-Pineda was the Secretary of Finance of the Mexican State of Tabasco from 2007 to 2012, appointed to serve under former Governor Andres Granier Melo. Saiz-Pineda is currently in custody in Tabasco on related charges of illegal enrichment. Medina-Sonda is currently serving a prison term in Mexico. The charges against them in the United States are formal accusations of criminal conduct, not evidence. They are presumed innocent unless convicted through due process of law.
The Drug Enforcement Administration, IRS - Criminal Investigation, sheriff’s offices in Fort Bend and Harris Counties and the U.S. Marshals Service conducted the Organized Crime Drug Enforcement Task Force investigation.
Assistant U.S. Attorney Assistant United States Attorneys Julie K. Hampton and Jon Muschenheim are prosecuting the case.
Westwego Couple Charged with Drug Trafficking and Money Laundering OffensesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MICHAEL KWAN, age 33, and TRAM HOANG NGUYEN, age 31, both of Westwego, were charged last week in a four-count Indictment with violations of the Federal Controlled Substances Act and conspiracy to commit money laundering.
According to the Indictment, KWAN conspired to distribute more than 1000 kilograms of marijuana and possessed with intent to distribute a quantity of cocaine and steroids. KWAN and NGUYEN also are charged with having conspired to launder the drug trafficking proceeds.
If convicted on the marijuana conspiracy charge, KWAN faces a term of imprisonment of at least 10 years and up to life, a fine of up to $10,000,000, and at least five years of supervised release following any term of imprisonment. If convicted of possessing with intent to distribute a quantity of cocaine, KWAN faces a term of imprisonment of up to 20 years, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment. Additionally, if convicted of possessing with intent to distribute steroids, KWAN faces a term of imprisonment of up to 10 years, a fine of up to $500,000, and at least two years of supervised release following any term of imprisonment.
If convicted of conspiracy to commit money laundering, KWAN and NGUYEN both face terms of imprisonment of up to 20 years, fines of the greater of $500,000 or twice the value of the property involved in the illicit transactions, and up to five years of supervised release following any term of imprisonment.
Acting U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilt of each defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the Louisiana State Police in investigating this matter. Assistant United States Attorneys Nicholas D. Moses and Jeffrey Sandman are in charge of the prosecution.
Washington D.C. Man Sentenced to 14 Years in Federal Prison for Sex Trafficking of A MinorRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On October 13, 2017, United States District Judge Roger W. Titus sentenced Charleston Harris a/k/a “Giovanni,” a/k/a “Leon Baye,” age 38, of Maryland to 14 years in prison followed by a lifetime of supervised release for conspiracy to engage in sex trafficking of a minor.
In addition, as part of the terms of his plea agreement, Harris has agreed to a judicial order of removal to Liberia at the time of his release.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andrew W. Vale of the Federal Bureau of Investigation – Washington office, Chief Henry P. Stawinksi III of the Prince George’s County Police Department, and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to court documents, beginning in or about April 2012, and continuing through in or about June 2015, in the District of Maryland and elsewhere, Harris managed and directed a large-scale prostitution business. Harris, with the assistance of co-conspirator, Phoebe Omwega and others, managed as many as eighteen prostitutes at a time and directed prostitution activities in Maryland, Virginia, Georgia, and Florida.
In 2012, Harris recruited a 17-year-old female to engage in prostitution under his direction. Between at least October and December 2012, the underage victim engaged in commercial sex acts in Maryland, Florida, and elsewhere. As part of their prostitution business, Harris, Omwega, and others utilized the social networking website "backpage.com" to advertise prostitution services for each of the women Harris employed. Harris also used several email accounts to communicate and direct the women who worked for him.
At the direction of Harris, women working for Harris, including the underage victim, typically charged between $100 and $200 for sexual services. Harris collected the prostitution proceeds, managed day-to-day activities by informing the women of when and where to meet "clients," instructed the women which city to travel to in order to engage in prostitution, and made hotel arrangements for the women. Harris did not allow the women to retain any of the proceeds. The women were allowed to purchase food, clothing, and make other similar expenditures using their proceeds, and occasionally were required to track their spending and report it to Omwega.
Harris often recruited women to work for his organization by falsely stating that he and Omwega managed a modeling business in Atlanta, Georgia. Harris would confiscate the women’s clothes, cellphones, devices, keys to their vehicles, and identification documents, and would arrange for the women who worked for him to obtain false identification documents.
Harris indoctrinated new recruits into the organization by advising them of his rules. Principal among the rules was that the women were not allowed to speak with family members or law enforcement, often referred to as being "out of pocket." Harris also required the women to make a minimum of $1,000 per day and forced the women to continue to work if they failed to meet this quota. Harris enforced violations of the rules by threatening physical violence and, on occasion, physically assaulting the women who worked for him.
Acting United States Attorney Stephen M. Schenning commended the FBI, Prince George’s County Police Department, and the Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Erin B. Pulice, Ray D. McKenzie, and Daniel Gardner, who prosecuted the case.
Two Women Charged with Robbing Bergen County BankRead the Press Release
NEWARK, N.J. – Two women appeared in federal court today to face allegations that they robbed a Spencer Savings Bank in Garfield, New Jersey, at gunpoint, Acting U.S. Attorney William E. Fitzpatrick announced.
Swahilys Pedraza-Rodriguez, 19, of New Haven, Connecticut, and Melisa Aquino Arias, 23, of Passaic, New Jersey, are charged by complaint with one count of bank robbery. Both defendants made their initial appearances this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and were detained.
According to the complaint:
On Sept. 27, 2017, Pedraza-Rodriguez and Arias allegedly entered a Spencer Savings Bank in Garfield and asked a bank teller for information about opening a bank account. Soon after, Arias, who was wearing a blue hijab, took out a black handgun and demanded money, while Pedraza-Rodriguez stood guard by the bank manager. After a bank teller handed them some cash, the defendants left the bank, and employees immediately alerted the police. Law enforcement officers responded to the scene, but did not immediately locate the robbers.
On Oct 15, 2017, Pedraza-Rodriguez and Arias allegedly entered an NVE Bank in Teaneck, New Jersey. Arias wore an orange hijab and Pedraza-Rodriguez wore a black head covering. They approached a bank employee and requested information about opening a bank account. The employee recognized the women as the alleged perpetrators of the Garfield bank robbery. As the employee went to alert the police, the women left the bank. Pedraza-Rodriguez and Arias were apprehended soon after by law enforcement officers.
The bank robbery count carries a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Garfield Police Department, under the direction of Chief Raymond Kovach; the Teaneck Police Department, under the direction of Chief Glenn M. O'Reilly; and the Leonia police department, under the direction of Chief Thomas P. Rowe, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Pedraza-Rodriguez: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Arias: Julian Wilsey Esq., Livingston, New Jersey
Troy Man Pleads Guilty to Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Joshua Lozo, 36, of Troy, New York, pled guilty to one count of receiving child pornography and one count of possessing child pornography, announced Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany, New York Field Office of the Federal Bureau of Investigation.
As part of his guilty pleas, Lozo admitted that between approximately December 1, 2015 and December 14, 2016, he used the Internet and file sharing software to download child pornography videos and still images. A forensic examination of electronic items seized from Lozo’s residence identified approximately 25 child pornography videos and approximately 350 still images of child pornography.
As a result of his convictions, Lozo now faces a mandatory minimum sentence of five years imprisonment, a maximum term of twenty years imprisonment, a fine of up to $250,000.00, a term of supervised release of at least five years and up to life, and mandatory registration as a sex offender. 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. Sentencing is scheduled for February 6, 2019, 2018 before U.S. District Judge Mae A. D’Agostino.
This case is being investigated by the FBI and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Trafficker of Fentanyl, Heroin, and Methamphetamine on Dark Web Marketplace Alphabay Pleads Guilty to Drug Distribution ChargeRead the Press Release
FRESNO, Calif. — Emil Vladimirov Babadjov, 32, a Bulgarian and U.S. dual-national formerly residing in San Francisco, California, pleaded guilty today to distributing controlled substances, United States Attorney Phillip A. Talbert announced.
According to court documents, Babadjov, using the vendor names “Blime-Sub” and “BTH-Overdose,” was a large-scale heroin, fentanyl, and methamphetamine distributor on the dark web marketplace AlphaBay. The reverse order of the word “Blime” is “Emil B.” Dark web marketplaces are operated on computer networks designed to conceal the true Internet Protocol addresses of the computers accessing the network. Dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly in Bitcoin.
Babadjov accepted orders for heroin, fentanyl, and methamphetamines on AlphaBay, and then mailed the narcotics from a post office in San Francisco to customers throughout the United States. Babadjov received payment for the narcotics in Bitcoin. On October 20, 2016, law enforcement officers made an undercover purchase of heroin from “Blime-Sub,” which was delivered to a post office box in the Eastern District of California. The parcel contained a mixture of fentanyl and heroin. Law enforcement agents were able to identify Babadjov’s fingerprints on the parcel. U.S. Post Office records also revealed that Babadjov purchased the postage for the parcel mailed to law enforcement. In the plea agreement, Babadjov admitted to distributing approximately 1,141 grams of heroin, 66 grams of fentanyl, and 510 grams of methamphetamine on AlphaBay.
This case was a product of an investigation by the Drug Enforcement Administration (DEA), with assistance provided by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service, Criminal Investigation (IRS-CI), and the U.S. Postal Inspection Service (USPIS). Assistant United States Attorney Grant B. Rabenn is prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Babadjov is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O'Neill on January 16, 2018. Babadjov faces a maximum statutory penalty of 20 years in prison and a $1,000,000 fine. Any sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Three New York Doctors Sentenced to Prison for Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – Three doctors were each sentenced today to over two years in prison for taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
George Roussis, 45, and Nicholas Roussis, 49, both of Staten Island, New York, were sentenced to 37 and 24 months in prison, respectively. Ricky J. Sayegh, 45, of Scarsdale, New York, was sentenced to 30 months in prison. All three defendants previously pleaded guilty before U.S. District Judge Stanley R. Chesler to separate informations charging them with accepting bribes in violation of the Federal Travel Act. Judge Chesler imposed the sentences today in Newark federal court.
According to documents filed in these cases and statements made in court:
George Roussis, a pediatrician, and his brother, Nicholas Roussis, an obstetrician-gynecologist, both with practices in Staten Island, accepted cash payments totaling approximately $175,000 from BLS employees and associates between October 2010 and April 2013. In addition, at the request of the Roussis brothers, BLS paid for strip club trips, including paying women to perform lap dances and engage in sex acts with George and Nicholas Roussis. In exchange, George and Nicholas Roussis referred their patients’ blood specimens to BLS, generating more than $1,450,000 and $250,000 of lab business for BLS, respectively.
Sayegh, an internal medicine doctor practicing in Yonkers, New York, accepted cash bribes in return for referring blood specimens to BLS. From February 2010 through April 2013, Sayegh received bribes totaling approximately $400,000 from BLS employees and associates. Sayegh’s referrals generated more than $1.4 million in lab business for BLS.
The investigation has thus far resulted in 50 convictions – 36 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $13 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
In addition to the prison terms, Judge Chesler sentenced each defendant to a year of supervised release. He also ordered that George Roussis, Nicholas Roussis, and Sayegh pay fines of $7,500, $5,000, and $10,000, respectively.
Acting U.S. Attorney William E. Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph W. Cronin; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Senior Litigation Counsel Joseph N. Minish and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
The New Jersey U.S. Attorney’s Office reorganized its health care fraud practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.34 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel:
George Roussis: Peter Bennett Esq., Red Bank, New Jersey
Nicholas Roussis: Joseph R. Corozzo Esq., New York, New York
Sayegh: Michael Bachner Esq., New York