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Thursday 24 August 2017
Utica Man Arrested on Federal Child Exploitation ChargesRead the Press Release
SYRACUSE, NEW YORK – Shawn Bunnell, 34, of Utica was charged yesterday in United States District Court with sexual exploitation of a child, and the commission of a felony offense against a minor as a registered sex offender, announced Acting United States Attorney Grant C. Jaquith.
A criminal complaint filed yesterday accuses Bunnell of sexual exploitation of a child for producing lewd and lascivious images of a two-year old child, and uploading the images through Google. The investigation is ongoing, and the Oneida County Child Advocacy Center requests anyone who may have information to call 315-732-3990.
United States Magistrate Judge Thérèse Wiley Dancks ordered Bunnell detained without bail pending trial.
If convicted, Shawn Bunnell faces a mandatory minimum term of 25 years and a maximum sentence of 50 years in prison for the exploitation offense, and because he is accused of committing the offense as a person required to register as a sex offender, he faces an additional and mandatory consecutive term of 10 years in prison. He also faces a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the Oneida County Sheriff’s Office, Oneida County Child Advocacy Center, Whitesboro Police Department, Utica Police Department, New York State Police, and Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
U.S. Marshals Fugitive Task Force Arrests Two Convicted Sex OffendersRead the Press Release
BOISE – Yesterday, the United States Marshals Service (USMS) Fugitive Task Force arrested two convicted sex offenders on separate parole warrants, Acting U.S. Attorney Rafael Gonzalez announced. They were arrested together at a residence in Nampa, Idaho.
Corry Williams, 35 years of age, of South Carolina, was convicted in 2010 under the Uniform Code of Military Justice for rape of a child under 12 years, aggravated sexual assault of a child under 16 years and abusive sexual contact with a child under 16. The USMS arrested him on a federal parole warrant.
Dauna Miller, 42 years of age, of Idaho, was convicted in Canyon County in 2005 for lewd conduct with a minor child under 16. The USMS arrested her on an Idaho Parole Commission warrant.
The USMS had been looking for Williams since August 8, 2017. According to Idaho Parole Commission records, Miller also was wanted since August 8, 2017. The USMS believes the two traveled through multiple western states and attempted to cross the Canadian border before returning to Idaho.
The USMS Fugitive Task Force consists of deputy U.S. Marshals working hand-in-hand with deputies and officers from the Ada and Canyon County Sheriffs’ Offices, and the Boise City, Garden City and Nampa City Police Departments. The Task Force focuses on locating and arresting violent federal, state and local fugitives.
Two Ohio Businessmen Associated with Demolition Companies Pleaded Guilty to Tax ChargesRead the Press Release
Two former Cincinnati, Ohio residents pleaded guilty today to tax and structuring charges, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Vito Stramaglia, 49, owner of Vito Contracting Companies Inc., pleaded guilty to tax evasion and structuring cash transactions to avoid currency transactions reports. His associate, Hugo Oliver Morales-Santamaria, 31, pleaded guilty to structuring cash transactions to avoid currency transactions reports and conspiring to defraud the United States.
Since at least 2006, Stramaglia owned approximately 20 demolition businesses and other businesses, including the Ice Box, an ice cream dairy bar located in Cleves, Ohio, a car wash and an adult toy store and nightclub in Florida. Stramaglia had not filed an individual or corporate income tax return with the Internal Revenue Service (IRS) since 1992, until he learned of the IRS’s criminal investigation. Between 2008 and 2013, his demolition businesses earned over $12 million. Stramaglia admitted his failure to file returns and pay taxes during this period caused a loss to the U.S. Treasury of between $1 million and $2.5 million.
To hide his income from detection, Stramaglia placed his businesses in the names of nominees, to include Santamaria. Santamaria opened bank accounts in his name, while Stramaglia controlled the funds in the accounts. Both Stramaglia and Santamaria wrote, signed, and cashed numerous checks and made cash withdrawals in amounts less than $10,000 on consecutive days to evade bank-reporting requirements. In 2011 and 2012 alone, they engaged in cash transactions that exceeded $1.4 million. To further conceal his use of funds, Stramaglia also provided false social security numbers to banks and car dealers when forms were prepared and filed with the IRS reporting cash transactions in excess of $10,000 and provided false employer identification numbers to contractors with whom he did business. In all, Stramaglia used more than $3.4 million from his businesses to purchase in others’ names over 20 luxury vehicles and at least four residences.
Stramaglia and Santamaria also paid day laborers in cash and failed to withhold or report payroll taxes. Santamaria also admitted to paying himself a weekly salary from the demolition company bank accounts, and paying personal expenses including food, lodging, clothing, gym memberships, and tuition for private school out of the business bank accounts, all in an effort to avoid paying personal income taxes.
District Judge Timothy Black stated that sentencing would be scheduled in 70 days. Both Stramaglia and Santamaria face a statutory maximum sentence of five years in prison on each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Richard M. Rolwing of the Tax Division, who is prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Two More Defendants Sentenced for Conspiring to Manufacture Marijuana in Rockford WarehouseRead the Press Release
ROCKFORD — Two out-of-state residents were sentenced this week by U.S. District Judge Frederick J. Kapala for their roles in a conspiracy to manufacture and distribute marijuana.
DESTINY FREEMAN, 24, of Palmer, Alaska, was sentenced today to 23 months in federal prison, to be followed by two years of supervised release.
CASEY S. WILLIAMS, 30, of Great Falls, Montana, was sentenced Wednesday to 57 months in federal prison, to be followed by three years of supervised release.
The sentencings were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent in Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Derek Bergsten, Chief of the Rockford Fire Department; and Anthony Scarpelli, Chief of the Skokie Police Department. The Winnebago County Sheriff’s Department Narcotics Unit and the Rockford Police Department Narcotics Unit assisted in the investigation.
In 2016, Williams and Freeman pleaded guilty to conspiring with five other individuals to manufacture, possess and distribute marijuana plants. The superseding information alleged that between Jan. 2, 2013, and Jan. 6, 2015, the pair conspired to illegally grow and store marijuana in a warehouse at 1916 11th St. in Rockford. The warehouse was destroyed by fire on Jan. 6, 2015.
The five co-defendants are YOUSIF Y. PIRA, 64, of Chicago, JEREMIAH N. CLEMENT, 39, formerly of Des Plaines, GEORGE H. BACUS, 53, of Niles, JUSTIN T. PAGLUSCH, 36, of Ingleside, and SHLIMON SHIMON, 49, of Chicago.
According to Williams’ and Freeman’s written plea agreements, in August 2014 Williams’ former employer, Jeremiah N. Clement, asked Williams to travel to Rockford to assist Clement with cleaning out a building and some irrigation construction inside a building in Rockford. At the time, Williams was living in Montana and dating Freeman. Clement recruited Williams to join the conspiracy, and Williams in turn recruited Freeman. Williams and Freeman lived in the warehouse while they assisted in the marijuana-growing operation by watering and caring for the marijuana crop and later assisting in harvesting and processing the marijuana.
In July 2017, following a four-day jury trial in U.S. District Court in Rockford, Pira was found guilty of conspiring to manufacture, possess and distribute 1,000 or more marijuana plants. Pira is scheduled to be sentenced on Oct. 17, 2017, at 2:30 p.m.
Bacus pleaded guilty on July 6, 2016, and is scheduled to be sentenced on Sept. 22, 2017, at 2:30 p.m.
Clement pleaded guilty and was sentenced to ten years’ imprisonment on June 3, 2016.
Paglusch pleaded guilty and was sentenced to ten years’ imprisonment on June 23, 2016.
An arrest warrant has been issued for Shimon, who is still at large.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Two Men Sentenced in Methamphetamine ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JEREME VAUGHN, age 37, of Shreveport, and MELVIN STEEN, age 35, of Slidell, were sentenced yesterday after having previously pled guilty to one count of conspiring to distribute and to possess with intent to distribute methamphetamine.
U.S. District Judge Sarah S. Vance sentenced VAUGHN to 33 months of incarceration, to be followed by 3 years of supervised release. STEEN was sentenced to 57 months of incarceration, to be followed by 3 years of supervised release.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration (DEA), the Louisiana State Police (LSP), and the U.S. Marshals Service (USMS) in investigating this matter. Assistant United States Attorney Brandon S. Long was in charge of the prosecution.
Two Men Plead Guilty in Methamphetamine-Trafficking ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TRUNG PHAM, age 38, of Los Angeles, California, and TOMMY WELLS, age 40, of New Orleans, pled guilty today to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically, PHAM pled guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine, and WELLS pled guilty to conspiring to distribute and possess with intent to distribute 50 grams or more of a mixture of methamphetamine.
According to court documents, in 2016, PHAM was a California-based drug trafficker who was sending parcels of methamphetamine via common carriers to codefendant STEVEN LYONS in New Orleans. LYONS would then sell quantities of methamphetamine to WELLS and others, who would redistribute the methamphetamine in the New Orleans area. LYONS previously pled guilty to conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine and is scheduled to be sentenced on November 1, 2017.
For his role in the conspiracy, PHAM faces a mandatory minimum sentence of 10 years in prison and a maximum life sentence, a fine of up to $10,000,000 and at least five years of supervised release. WELLS faces a mandatory minimum sentence of 5 years in prison, a maximum sentence of 40 years in prison, a fine of up to $5,000,000, and at least four years of supervised release. U.S. District Judge Ivan L.R. Lemelle set sentencing for PHAM and WELLS on November 15, 2017.
Acting U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Drug Enforcement Administration - New Orleans Division Office, and the New Orleans Police Department, in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
Two Local Men Plead Guilty to a Drug-Related HomicideRead the Press Release
St. Louis, MO – Jessie Hampton, 26; and Malcom Johnson, 26, both of St. Louis City, pled guilty to one felony count of possessing a firearm in furtherance of a crime of violence, resulting in murder. Hampton appeared today before United States District Judge E. Richard Webber. Johnson pled guilty on August 11, 2017. The sentencings have been set for November 8, 2017.
According to court documents, during 2012, Hampton and Johnson were engaged in drug trafficking. In the early morning hours of July 15, 2012, Hampton, Johnson and two others robbed Scipio Vaughn. During the course of the robbery, Hampton shot and killed Vaughn.
Possession of a firearm in furtherance of a drug trafficking crime, resulting in murder carries a penalty of life in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department. Assistant United States Attorney John Bird is handling the case for the U.S. Attorney’s Office.
Two International Bank Managers Charged in Libor Interest Rate Manipulation SchemeRead the Press Release
Two French bank managers were indicted today for participating in a scheme to transmit false and misleading information related to the London Interbank Offered Rate (LIBOR), a global benchmark interest rate to which trillions of dollars of financial transactions are tied.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York and Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office made the announcement.
“The allegations in today’s indictment suggest complete and total disregard for the integrity of the financial markets and for innocent consumers and everyday people whose personal finances hinge on the interest rates they pay on various loans,” said Acting Assistant Attorney General Blanco. “Cases like this demonstrate the crucial role of the Department in protecting people and their hard earned money, securing our financial markets for economic growth and prosperity, and for fighting white collar crime to protect our nation from bad actors, wherever they may reside.”
“The integrity of our global financial markets relies upon each of its participants providing complete and accurate information,” said Acting U.S. Attorney Rohde. “As alleged, the defendants acted in contravention of this principle and the laws designed to uphold it by causing their employer, Société Générale, to submit falsified USD LIBOR rates, which in turn effected financial transactions across markets worldwide. We will continue to vigorously root out and prosecute such crimes.”
“Fraudulently manipulating the LIBOR and deceiving the financial market to affect world-wide financial transactions have far reaching consequences, and such criminal activity will not be tolerated,” said Assistant Director in Charge Vale. “Today’s indictment should stand as a warning that the FBI remains committed to holding those accountable who flout the law in their attempts to take advantage of international financial markets. The FBI Washington Field Office has dedicated significant time and resources, to include the expertise of special agents, forensic accountants, and analysts, to investigating these complex financial schemes, and I want to thank the tireless investigative team as well as our colleagues at the Department of Justice Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York for their hard work.”
Danielle Sindzingre, 54, and Muriel Bescond, 49, both of France, were charged in the Eastern District of New York with one count of conspiring to transmit false reports concerning market information that tends to affect a commodity and four counts of transmitting such false reports. Sindzingre and Bescond were, respectively, the Global Head of Treasury and the Head Treasury Paris at French financial institution Société Générale, S.A.
According to the indictment, LIBOR was a benchmark interest rate that was calculated for various currencies and maturities. The U.S. Dollar LIBOR was constructed by compiling submissions from leading banks around the world (“contributor panel banks”), excluding the four highest and lowest submissions, and averaging the remainder to obtain each day’s LIBOR “fix.” Each contributor panel bank was required under the rules of the British Bankers’ Association (BBA) to submit the rate at which it believed it would be charged if it sought offers to borrow money from other banks in the London interbank market. LIBOR was used to price futures contracts, interest rate swaps and other financial products worldwide. It was also used to calculate some consumer interest rates, including certain home mortgage and credit card interest rates. In February 2009, Société Générale joined the contributor panel for U.S. Dollar LIBOR.
As alleged in the indictment, between approximately May 2010 and approximately October 2011, Sindzingre and Bescond knowingly instructed their subordinate employees at Société Générale’s Paris treasury desk to submit inaccurately low LIBOR contributions in an effort to make it appear that Société Générale was able to borrow money at more favorable rates than it actually was. This was allegedly done with knowledge that the true rates at which Société Générale was borrowing money were higher than the rates it was submitting as part of the LIBOR calculation. On numerous occasions, the false information submitted at the direction of Sindzingre and Bescond altered the day’s final U.S. Dollar LIBOR calculation, thus affecting all financial transactions tied to U.S. Dollar LIBOR on that day, the indictment alleges. Among the allegedly affected financial products were Eurodollar futures, a commodity that was traded on the Chicago Mercantile Exchange. In total, it is estimated that the defendants’ misconduct caused over $170 million in harm to the global financial markets, according to the indictment.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI is investigating this matter. Assistant Chief Carol Sipperly and Trial Attorneys Gary A. Winters and Timothy A. Duree of the Fraud Section of the Justice Department’s Criminal Division, and Assistant U.S. Attorney Matthew Amatruda of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
Two International Bank Managers Charged in Interest Rate Manipulation SchemeRead the Press Release
BROOKLYN, N.Y. – Two French bank managers were indicted today for participating in a scheme to transmit false and misleading information related to the London Interbank Offered Rate (LIBOR), a global benchmark interest rate to which trillions of dollars of financial transactions are tied.
Acting United States Attorney Bridget M. Rohde of the Eastern District of New York, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, and Assistant Director-in-Charge Andrew Vale of the Federal Bureau of Investigation’s (FBI) Washington Field Office made the announcement.
“The integrity of our global financial markets relies upon each of its participants providing complete and accurate information,” stated Acting United States Attorney Rohde. “As alleged, the defendants acted in contravention of this principle and the laws designed to uphold it by causing their employer, Société Générale, to submit falsified USD LIBOR rates, which in turn effected financial transactions across markets worldwide. We will continue to vigorously root out and prosecute such crimes.”"The allegations in today’s indictment suggest complete and total disregard for the integrity of the financial markets and for innocent consumers and everyday people whose personal finances hinge on the interest rates they pay on various loans,” said Acting Assistant Attorney General Blanco. “Cases like this demonstrate the crucial role of the Department in protecting people and their hard earned money, securing our financial markets for economic growth and prosperity, and for fighting white collar crime to protect our nation from bad actors, wherever they may reside.”
“Fraudulently manipulating the LIBOR and deceiving the financial market to affect world-wide financial transactions have far reaching consequences, and such criminal activity will not be tolerated,” said Assistant Director in Charge Vale. “Today’s indictment should stand as a warning that the FBI remains committed to holding those accountable who flout the law in their attempts to take advantage of international financial markets. The FBI Washington Field Office has dedicated significant time and resources, to include the expertise of special agents, forensic accountants and analysts, to investigating these complex financial schemes, and I want to thank the tireless investigative team as well as our colleagues at the Department of Justice Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York for their hard work.”
Danielle Sindzingre, and Muriel Bescond, both of France, were charged in the Eastern District of New York with one count of conspiring to transmit false reports concerning market information that tends to affect a commodity and four counts of transmitting such false reports. Sindzingre and Bescond were, respectively, the global head of treasury and the head of the Paris treasury desk at French financial institution Société Générale, S.A.
According to the indictment, LIBOR was a benchmark interest rate that was calculated for various currencies and maturities. The U.S. Dollar LIBOR was constructed by compiling submissions from leading banks around the world (“contributor panel banks”), excluding the four highest and lowest submissions, and averaging the remainder to obtain each day’s LIBOR “fix.” Each contributor panel bank was required under the rules of the British Bankers’ Association (BBA) to submit the rate at which it believed it would be charged if it sought offers to borrow money from other banks in the London interbank market. LIBOR was used to price futures contracts, interest rate swaps and other financial products worldwide. It was also used to calculate some consumer interest rates, like certain home mortgage and credit card interest rates. In February 2009, Société Générale joined the contributor panel for U.S. Dollar LIBOR.
As alleged in the indictment, between approximately May 2010 and approximately October 2011, Sindzingre and Bescond knowingly instructed their subordinate employees at Société Générale’s Paris treasury desk to submit inaccurately low LIBOR contributions in an effort to make it appear that Société Générale was able to borrow money at more favorable rates than it actually was. This was allegedly done with knowledge that the true rates at which Société Générale was borrowing money were higher than the rates it was submitting as part of the LIBOR calculation. On numerous occasions, the false information submitted at the direction of Sindzingre and Bescond altered the day’s final U.S. Dollar LIBOR calculation, thus affecting all financial transactions tied to U.S. Dollar LIBOR on that day, the indictment alleges. Among the affected financial products were Eurodollar futures, a commodity that was traded on the Chicago Mercantile Exchange. In total, it is estimated that the defendants’ misconduct caused over $170 million in harm to the global financial markets, according to the indictment.
An indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.The FBI is investigating this matter. Assistant Chief Carol Sipperly and Trial Attorneys Gary A. Winters and Timothy A. Duree of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Amatruda of the United States Attorney’s Office for the Eastern District of New York are prosecuting the case.
The Defendants:
DANIELLE SINDZINGRE
Age: 54
Country: FranceMURIEL BESCOND
Age: 49
Country: France
E.D.N.Y. Docket No. 17-CR-464 (JS)Two Charged in Drug Distribution ConspiracyRead the Press Release
Concord, New Hampshire – Acting United States Attorney John J. Farley announced that Lindsey Parziale-McDonald, 28, and Larry Delgado, 29, both of Manchester, New Hampshire, were arrested on charges that they participated in a conspiracy to distribute fentanyl in violation of federal law.
According to the criminal complaint, an undercover law enforcement officer purchased a controlled substance from Delgado and Parziale-McDonald on four separate occasions between July 26, 2017 and August 7, 2017. Each time, the undercover officer entered a vehicle driven by Delgado or McDonald and exchanged money for drugs while inside the car. Laboratory analysis confirmed that the drug involved in two of the transactions was fentanyl. Laboratory analysis is pending with respect to the other transactions. On two occasions, Parziale-McDonald’s two-year-old son was also present in the vehicle.
Chief Enoch “Nick” Willard is “extremely proud of the dedication and hard work by all involved, especially the undercover detective who worked this case.” Chief Willard also wanted to reiterate the fact that the “Manchester Police Department will continue its efforts to combat the drug epidemic plaguing New Hampshire by working with all state, local and federal law enforcement agencies.”
The charge carries a maximum term of imprisonment of twenty years and a fine of up to $1,000,000. Actual sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
Farley stressed that a complaint is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by the Manchester Police Department and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
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Transportation Services Provider and Its Principal Agree to Settle False Claims Act AllegationsRead the Press Release
Nashville based Employment & Assessment Solutions, Inc. (“EASI”), and its principal, Chris Manus, have agreed to pay $550,000 to settle allegations that they violated the False Claims Act, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee. The alleged conduct involved the submission of false claims for payment to TennCare, Tennessee’s Medicaid Program, for the provision of transportation services to TennCare beneficiaries. Mr. Manus and EASI have each also agreed to a nine-year exclusion from Medicaid, Medicare, and all Federal Health Care programs.
“Enforcement of the False Claims Act is a priority of the Department of Justice and this Office,” said Acting U.S. Attorney Jack Smith. “The already overburdened Medicaid Program simply cannot withstand making payments for services that were never rendered. Anytime we discover violations of the False Claims Act, where corporations are seeking to enrich themselves through dishonest methods, we will seek the appropriate remedy for the offending corporation and its principals.”
The settlement resolves allegations by the United States and State of Tennessee that EASI and Manus, caused the submission of false claims to TennCare for transportation services which were never provided, including claims for patients who were actually incarcerated or hospitalized at the time of the purported transport. The alleged conduct occurred between January 2, 2010, and April 30, 2014.
Under the terms of the settlement, the United States will receive $302,775 and the State of Tennessee will receive $247,225.
"This company allegedly billed TennCare for ghost transports where the program was paying for an empty seat as if it contained a patient," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. "This is the most egregious type of False Claims Act violation - where no service was actually provided and the company got paid for doing nothing."
“The public rightfully expects funds to go to those patients who need these services,” said TBI Director Mark Gwyn. “We are fortunate to have a strong relationship with our federal and state law enforcement partners in continuing to pursue allegations of false claims.”
“Pursuing violations of the False Claims Act protects Tennessee tax dollars and sends a strong message to individuals attempting to take advantage of the system,” Attorney General Herbert H. Slatery III said. “Our office will continue to work with our state and federal partners to combat healthcare fraud.”
This matter was investigated by the Tennessee Bureau of Investigation, Department of Health and Human Services Office of Inspector General, Tennessee Attorney General’s Office, and the United States Attorney’s Office for the Middle District of Tennessee. The United States is represented by Assistant U.S. Attorney Sarah K. Bogni. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Texas Man Sentenced to Prison for Federal Cocaine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Mario Moreno, Jr., 35, of El Paso, Tex., was sentenced today in federal court in Las Cruces, N.M., to 36 months in prison for his conviction on a cocaine trafficking charge. Moreno will be on supervised release for three years after completing his prison sentence.
Moreno and his six co-defendants, Jesus Armendariz, 33, of Anthony, N.M., Erubiel Esquivel, 30, of Kansas City, Kan., Abdon Armendariz, 45, of Canutillo, Texas, Rafael Portillo, 27, a Mexican national, and Luis Daniel Villegas, 32, of Las Cruces, N.M., were charged with cocaine trafficking offenses in a three-count indictment filed on July 20, 2016. The indictment charged all six co-defendants with conspiring to distribute cocaine between Oct. 27, 2015 and Nov. 26, 2015. It also charged Jesus Armendariz and Villegas in individual counts with possessing cocaine with intent to distribute. According to the indictment, the defendants committed the crimes in Dona Ana County, N.M.
On Feb. 8, 2017, Moreno pled guilty to Count 1 of the indictment charging him with participating in a cocaine trafficking conspiracy. In entering the guilty plea, Moreno admitted that from Oct. 27, 2015 to Nov. 26, 2015, he conspired with his co-defendants to distribute cocaine in Dona Ana County. Moreno further admitted that on Nov. 10, 2015 he negotiated the sale of one kilogram of cocaine and on Nov. 11, 2015, he sold one kilogram of cocaine for $22,000.
Two of Moreno’s co-defendants have entered guilty pleas: Armendariz-Ruiz pled guilty on June 7, 2017, and Villegas pled guilty on Feb. 17, 2017. Armendariz and Esquivel have entered pleas of not guilty to the indictment and are awaiting trial. Portillo has yet to be arrested and is considered a fugitive. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorneys Dustin Segovia and Terri Abernathy of the U.S. Attorney’s Las Cruces Branch Office.
Texas Man Charged with Online Enticement of a Minor and Traveling to Engage in Illicit Sexual Conduct with a Sacramento MinorRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Christopher L. Crawford, 36, of Houston, Texas, charging him with online enticement of a minor and traveling in interstate commerce to engage in illicit sexual conduct with minor, U.S. Attorney Phillip A. Talbert announced.
According to the indictment, between March 7, 2017, and April 21, 2017, Crawford enticed a minor online to engage in sexual activity, and between April 18, 2017, and April 21, 2017, Crawford traveled from Harris County in Texas to Sacramento County for the purpose of engaging in illicit sexual conduct with a minor.
This case is the product of an investigation by the Internet Against Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Rosanne Rust is prosecuting the case.
If convicted of the federal charges, Crawford faces a mandatory minimum of 10 years in prison and a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Steelton Man Convicted on Insurance and Social Security Fraud ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mohammed Rizk, age 53, Steelton, Pennsylvania, was convicted of fraudulently obtaining Social Security benefits and wire fraud. The jury returned a verdict of guilty after one and a half hours of deliberation following a four-day trial in Harrisburg before Chief United States District Court Judge Christopher C. Conner.
According to United States Attorney Bruce D. Brandler, Rizk obtained approximately $64,000 in benefits under the Social Security Administration’s Retirement, Survivors and Disability Insurance Program (RSDIP) between 2014 and 2015, by falsely representing that the minor children of his deceased spouse were living with him when in fact they were living elsewhere. Rizk, as representative payee, took the funds that the children were entitled to and converted them to his own use. Rizk was convicted of wire fraud for forging his minor daughter’s signature on insurance surrender documents, submitting the documents to Prudential insurance, and thereby fraudulently obtaining $57,982 in insurance proceeds left to the daughter by her deceased mother. Rizk thereby defrauded his two minor daughters out of approximately $122,000.
The government is also seeking forfeiture of the funds obtained through the fraud.
The case was investigated by the Social Security Administration’s Office of Inspector General and the Dauphin County District Attorney’s Office Criminal Investigation Division. Assistant United States Attorneys William A. Behe and Scott Ford prosecuted the case.
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 is 20 years imprisonment on the wire fraud charge and 10 years imprisonment on the theft and Social Security fraud charges, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Six Anchorage Residents Charged in a 29-Count Indictment with Conspiracy, Bank Fraud, Mail Theft, Aggravated Identity Theft, and Passing Counterfeit MoneyRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that six Anchorage residents were charged in a 29-count indictment alleging that the six conspired to obtain checks stolen from the mail and vehicle break-ins, and then they negotiated the stolen checks at different banks and stores in Anchorage.
Sara James, 30, Jonathan James, 34, David Gonzales, 36, Brandon Madrid, 28, Braden Asbury, 20, and Karri Embach, 34, all of Anchorage, were charged in a 29-count indictment that includes charges of conspiracy, bank fraud, possession of stolen mail, aggravated identity theft, and passing counterfeit money.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, from August 2016 to May 2017, Sara James and Jonathan James conspired together with Gonzales, Madrid, Asbury, and Embach to negotiate checks stolen from the mail and from vehicle break-ins that were falsely altered. Most of the stolen checks were falsely altered to make the payee a separate stolen identity that was used by the defendants to negotiate the stolen checks. The defendants negotiated the stolen and falsely altered checks at banks and stores throughout Anchorage. Sara James and Jonathan James also passed counterfeit money to make a purchase on Craig’s List.
Sara James and Jonathan James are scheduled to appear in court today on the charges, at 1:00 p.m. and 1:30 p.m., respectively. Gonzales, Madrid, Asbury and Embach remain fugitives at this time.
The law provides for a maximum sentence of 30 years in prison and a fine of $1 million or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Anchorage Police Department and the United States Postal Inspection Service conducted the investigation leading to the indictment in this case, with assistance from the Palmer Police Department, investigators from the State of Alaska Department of Revenue, and the Anchorage District Attorney’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Senior MARTA executive charged with a false invoice scam causing MARTA to pay $500,000 for work never performedRead the Press Release
ATLANTA - Joseph J. Erves, MARTA’s former Senior Director of Operations, has been charged with conducting a false invoice scheme that resulted in MARTA paying more than $500,000 for maintenance work that was never performed and for funneling most of the money back into his personal bank accounts.
“Erves was entrusted to safeguard the taxpayer funds used to run our public transportation authority, and instead he is charged with stealing a half million dollars to buy a Porsche and other high-end purchases. This is a classic case where a public official’s short-term gain in stealing from taxpayers comes crashing down and ends with criminal charges,” said U.S. Attorney John A. Horn.
“The federal investigation and resulting federal charges against Mr. Erves will hopefully send a message to others that such ill-conceived schemes to redirect corporate or public funds to their own accounts is a criminal act with tough consequences. The FBI would like to thank the MARTA Police and their investigators for their invaluable assistance in getting this matter advanced for prosecution,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: the Metropolitan Atlanta Rapid Transit Authority (“MARTA”) is the principal public transportation operator in the Atlanta metropolitan area, providing fixed rail and bus service to more than 500,000 passengers per weekday. Formed in 1965, MARTA is a multi-county governmental agency with a 2016 annual budget of more than $880 million.
From 1993 to 2017, Erves worked for MARTA, ultimately serving as its Senior Director of Operations. In that position, Erves oversaw the maintenance of all of MARTA’s buses and rail cars and had the authority to approve payments up to $10,000 to vendors for work performed on behalf of MARTA.
Beginning in or about 2010, Erves retained three different vendors purportedly to perform maintenance projects for MARTA, including repairing brake testing equipment and fixing various MARTA tools and equipment. From approximately June 2010 to December 2016, Erves had fake invoices prepared on behalf of the three vendors for more than 40 maintenance projects for which no work was performed.
Erves then used the false invoices as bases to authorize payments to the three vendors. In many cases, Erves personally approved payments to the vendors knowing that the vendors had not performed any work for MARTA.
After being paid, the three vendors funneled most of the money received from MARTA into Erves’s personal bank accounts. Subsequently, Erves used the money deposited into his accounts to pay personal expenses, such as multiple purchases at high-end department stores and the purchase of a Porsche 911. Based on Erves’s authority and representations, MARTA paid the three vendors more than $500,000 for maintenance projects where no worked was actually performed.
Erves, 52, of Lithonia, Georgia, has been charged in a criminal information with one count of Federal Program Theft. Erves is expected to plead guilty to the charge shortly after arraignment.
This case is being investigated by the Federal Bureau of Investigation and the MARTA Police Department.
Assistant U.S. Attorneys Jeffrey W. Davis and Alison Prout are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Repeat Tax Fraud Offender Returns to Prison for Thirty-Month SentenceRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced that U.S. District Judge Shelly D. Dick sentenced BELVIN F. TYSON, age 61, of Baton Rouge, Louisiana to serve thirty (30) months in federal prison following her conviction for tax fraud. TYSON was ordered to make restitution to the United States Treasury totaling $100,077 and pay a special assessment of $200. Finally, following her release from prison, TYSON will be required to serve a two-year term of supervised release.
On March 30, 2017, TYSON plead guilty to one count of impeding the due administration of the IRS laws, in violation of 26 U.S.C. § 7212, and one count of access device fraud, in violation of 18 U.S.C. § 1029(a)(3).
As TYSON, a professional tax preparer, admitted in court in connection with her guilty pleas last March, she fraudulently manipulated her clients’ Schedule A deductions and Schedule C income amounts, and added fraudulent dependents to their returns, in order to decrease their tax liability and increase their tax refunds.
To add the fraudulent dependents, TYSON obtained and then sold the personal identifiable information of other individuals to her clients, and then used the information in preparing her clients’ tax returns. TYSON’s fraudulent conduct in tax years 2011 and 2012 resulted in a loss of approximately $100,077 to the United States Treasury. At the time she committed this offense, she was still on federal supervised release for a prior federal tax crime, which she committed in 2009 and for which she was sentenced to serve ten (10) months in federal prison.
Acting U.S. Attorney Amundson stated, “We will continue to aggressively prosecute individuals who interfere with the Internal Revenue Service’s ability to collect taxes. It is critical to this nation that all citizens comply with our revenue laws. This defendant’s pattern of fraudulent conduct cannot be tolerated, and her stiff sentence in this case should send her and other fraudulent tax preparers a strong message. I appreciate the work and effort of the special agents and prosecutors in bringing this defendant to justice.”
Special Agent-in-Charge Jerome R. McDuffie stated, “To the repeat tax cheats, tax fraudsters, and individuals that willfully prepare fraudulent Federal Income Tax Returns for themselves or others, know this: the Special Agents of IRS-Criminal Investigation are watching and doing everything within the power of the law to protect the nation's taxpayers from those who would pilfer and steal from the U.S. Treasury. You can run, but you can't hide.”
This case was investigated by the Internal Revenue Service—Criminal Investigation Division (IRS-CI) and the United States Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Jessica M.P. Thornhill.
Real Estate Investor Sentenced in Mortgage Fraud SchemeRead the Press Release
Memphis, TN – A Memphis real estate investor has been sentenced to 30 months in federal prison for his role in a scheme to fraudulently obtain mortgage loans. Lawrence J. Laurenzi, Acting U.S. Attorney, announced the sentence today.
An indictment returned last September by a federal grand jury alleged Thomas L. Boyd, 44, the owner of Wonderful Properties, LLC, made false statements and presented false documents to Regions Bank, First Tennesse Bank, Bank of America and Oak Tree Funding on behalf of persons who were financing the purchase of properties from Boyd and Wonderful Properties.
Boyd pled guilty in May to a charge of bank fraud and admitted at his plea hearing to making false statements to Regions Bank in connection with a mortgage loan being made to an individual who was financing the purchase of a property from Boyd.
In imposing the sentence yesterday, U.S. District Judge Sheryl H. Lipman also ordered Boyd to pay total restitution in the amount of $383,375.43 and to serve a 3-year term of supervised release following his release from prison.
The case was investigated by the FBI; Federal Housing Finance Agency (FHFA) – OIG; Department of Housing and Urban Development (HUD); Postal Inspection Service and IRS. Assistant U.S. Attorneys Carroll L. Andre III and Lorraine Craig prosecuted this case on the government’s behalf.
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Pottawattamie County Men Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On August 23, 2017, Jeffrey W. Porterheather Jean Reekr, 41, and Gregory T. McCoy, 62, both from Council Bluffs, Iowa, were sentenced individually by Senior United States District Court Judge James E. Gritzner for conspiring to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel. Porter was sentenced to 120 months in prison and five years of supervised release following his imprisonment. McCoy was sentenced to 57 months in prison and to three years of supervised release following his imprisonment.
This case resulted from a large-scale law enforcement investigation of methamphetamine trafficking occurring in the Omaha-Council Bluffs metro area for approximately one year. Beginning at least as early as November of 2014, and continuing through September of 2015, these defendants conspired with other individuals who, as a group, distributed nearly 40 kilograms of methamphetamine in the Southern District of Iowa and elsewhere.
Last year, on June 27, 2016, a jury convicted co-defendants Jose Luis Tizoc and Manuel Espinoza at trial, finding them guilty of conspiracy to distribute methamphetamine and prohibited persons in possession of a firearm. Senior United States District Court Judge James E. Gritzner sentenced Jose Luis Tizoc to 300 months of in prison and five years of supervised release and Manuel Espinoza to 240 months of in prison and five years of supervised release.
Other defendants who pleaded guilty for conspiring to distribute methamphetamine and have been sentenced by Senior United States District Court Judge James E. Gritzner included the following:
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Richard Hull, Jr., 150 months of imprisonment, followed by five years of supervised release;
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Salvador Nunez Trejo, 120 months of imprisonment, followed by five years of supervised release;
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Jessica Moreno, 35 months of imprisonment, followed by three years of supervised release;
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Jaime Castillo Gomez, 168 months of imprisonment, followed by five years of supervised release;
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Kristopher Hatch, 151 months of imprisonment, followed by five years of supervised release;
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Jane Song, 60 months of imprisonment, followed by five years of supervised release;
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Grant M. Carman, 120 months of imprisonment, followed by five years of supervised release;
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Greg M. Price, 120 months of imprisonment, followed by five years of supervised release; and,
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Amelia J. Lesemann, 120 months of imprisonment, followed by five years of supervised release.
The Federal Bureau of Investigation’s Greater Omaha Safe Streets Task Force and Southwest Iowa Narcotics Enforcement Task Force conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
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Philadelphia Police Sergeant Charged with BriberyRead the Press Release
PHILADELPHIA – A federal indictment was unsealed yesterday charging Philadelphia Police Sergeant Brian Smith with two counts of bribery and two counts of making material false statements to the FBI, announced Acting United States Attorney Louis D. Lappen.
According to allegations contained in the indictment, the defendant accepted weekly bribe payments over the course of approximately 11 months in return for providing confidential law enforcement information on accident locations to certain tow truck drivers, in violation of the Police Department’s rotational tow policy. The policy was instituted in 2008 as a public safety and consumer protection measure, following a series of highly-publicized violent encounters between tow truck operators competing for highly lucrative towing work.
The charges of bribery concerning agencies receiving federal funds carry a maximum sentence of 10 years in prison and a $250,000 fine; the charges of making false statements carry a maximum sentence of 5 years in prison and a $250,000 fine.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Michelle L. Morgan of the U.S. Attorney’s Office for the Eastern District of Pennsylvania. The case is being investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Police Department Internal Affairs Division.
Philadelphia Man Charged with Hobbs Act RobberyRead the Press Release
Koren Jones, a/k/a “Kuron Jones”, 25, of Philadelphia, Pennsylvania was charged today by Indictment[1] with two counts of Hobbs Act robbery, one count of attempted Hobbs Act robbery, and three counts of using, carrying, and brandishing a firearm during a crime of violence, announced Acting United States Attorney Louis D. Lappen. The indictment specifically charges that the defendant Koren Jones committed a gun-point robbery of A & A grocery store, located at 2000 North Gratz Street, on November 4, 2016 and German grocery store, located at 2267 North 16th Street, on November 5, 2016. During the commission of robbery of the A & A grocery store, a customer was shot in the leg. During the commission of the robbery of the German grocery store, a shot was fired at the employee victim, but no injuries were sustained. Jones is also charged with attempted robbery of Fontain deli, located at 2027 North 16th street, on November 5, 2016. Additionally, Jones is charged with using and carrying a firearm during the robberies and attempted robbery charged in the indictment.
If convicted of all counts, Jones faces a maximum sentence of life imprisonment, with a mandatory 60-year minimum sentence, consecutive to any other sentence imposed, a $1,500,000 fine, and a $600 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorney Katherine Driscoll.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Petaluma Resident Sentenced to 3.5 Years in Prison for Role in Wire Fraud SchemeRead the Press Release
SAN JOSE – Robert Stephens was sentenced to 42 months in federal prison for conspiracy to commit wire fraud, wire fraud, and money laundering, announced United States Attorney Brian J. Stretch, Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf, and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down today by the Honorable Lucy H. Koh, U.S. District Judge, after Stephens pleaded guilty to the charges on June 15, 2016.
Stephens, is a 65 year-old resident of Petaluma, California. According to his guilty plea, since at least 2009 and continuing through December of 2015, he defrauded scores of victims of at least $5.6 million. Stephens admitted that along with his four co-defendants, Laurence Miles, 76, now living in Arizona, Shirley Molina, 70, of Hawthorne, Calif., Munsif Shirazi, 49, of Bell Canyon, Calif., and Rayan Lakshmanan, 48, of Davis, Calif., he told people that an heiress to a billion-dollar estate was very ill and was in need of medical attention. Stephens and his co-defendants convinced their victims that the heiress’s money was tied up in a secret probate case and that, in return for money to help pay for the heiress’s medical costs, Stephens and his accomplices would return to their victims $1,000 for every $1 they invested in the heiress’s estate. Stephens and his accomplices promised their victims that they would see the returns on their investments after the money was released from probate. In truth, there was no dying heiress with a large estate. Instead, Stephens and his codefendants used the victims’ money to support their own lifestyles. On December 3, 2015, a federal grand jury indicted Stephens and charged him with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; 22 counts of wire fraud, in violation of 18 U.S.C. § 1343; and 1 count of money laundering, in violation of 18 U.S.C. § 1957. Pursuant to his plea agreement, Stephens pleaded guilty to one count of each of the charges and the remaining charges were dismissed. Each of Stephens’s co-defendants has pleaded guilty to their respective roles in the conspiracy. Judge Koh sentenced Miles to 108 months in prison and sentenced Lakshmanan to 18 months in prison. Shirazi and Molina will be sentenced later this year.
In sentencing Stephens, Judge Koh found that he had been conducting the scheme since 2007. The Court concluded that Stephens and his co-defendants obtained almost $8 million dollars from the scheme and that Stephens was responsible for recruiting most of the victims.
In addition to the 42-month prison term, Judge Koh ordered Stephens to serve a three-year period of supervised release, to pay restitution in the amount of $7,901,081, and to pay a forfeiture money judgment of $5,628,765. Judge Koh ordered Stephens to begin serving his sentence October 20, 2017.
Assistant U.S. Attorneys Amber Rosen and Patrick Delahunty prosecuted the case with the assistance of Nina Williams and Susan Kreider. The prosecution is the result of an investigation by the FBI and IRS.
Perris Man Charged with Smuggling Tiger CubRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – August 24, 2017
SAN DIEGO – Luis Eudoro Valencia, of Perris, California, was charged yesterday with smuggling a Bengal tiger cub into the United States from Mexico.
According to the complaint, Valencia drove into the Otay Mesa Port of Entry with the tiger cub on the floor of the vehicle. It is alleged that Valencia failed to declare the tiger cub to Customs and Border Protection officers. The tiger cub was discovered in the secondary inspection area.
According to the complaint, the defendant stated that he had purchased the tiger for $300 from an individual he encountered walking a full-sized tiger on a leash in Tijuana. All species of tigers are listed as endangered under the Endangered Species Act, and are protected under Appendix I of the Convention on International Trade in Endangered Species. To legally import an endangered species into the United States requires a permit from the U.S. Fish & Wildlife Service, and the importation must be accompanied by a Declaration Form 3-177 filed with Fish & Wildlife. According to the complaint, the defendant lacked the required permit and did not file the required declaration.
The Bengal tiger (Panthera tigris tigris) is the most populous subspecies of tiger. The Bengal tiger is native to India, Bangladesh, Nepal and Bhutan. According to the World Tiger Recovery Project, there are only 2,500 wild specimens on earth and the population of Bengal tigers is decreasing.
Valencia was released on a $10,000 personal surety bond and ordered to appear for a preliminary hearing on September 5, 2017, at 1:30 pm before U.S. Magistrate Judge Bernard Skomal.
DEFENDANT Case No. 17-MJ-3013
Luis Eudoro Valencia Age: 18 Perris, California
SUMMARY OF CHARGES
Smuggling, 18 U.S.C. § 545
Maximum penalty: 20 years’ prison, fine of $250,000, or twice the gross gain or loss caused by the offense, restitution, forfeiture of proceeds generated from the, five years of supervised release.
Unlawful Importation of Wildlife, 16 U.S.C. §§1538(a)(1)(A) and 1540(b)
AGENCIES
U.S. Fish & Wildlife Service
Homeland Security Investigations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Pagans Associate Sentenced to 15 years in Prison for Prescription Pill MillRead the Press Release
PHILADELPHIA – Today, a federal judge sentenced Joseph Mehl, a/k/a “Joseph Montanero” to 180 months in prison for his role in a prescription pill mill that trafficked oxycodone and other dangerous and addictive opioids. In addition, the Honorable Nitza I. Quiñones Alejandro, United States District Judge, ordered the defendant to serve three years of supervised release upon release from prison, and pay a special assessment of $100, as well as entering a judgment of forfeiture.
On July 14, 2015, a grand jury in Philadelphia charged Mehl, along William O’Brien, a former doctor of osteopathic medicine, and members of the Pagans Motorcycle Club (“Pagans”), an outlaw biker gang known for violence and drug dealing, with conspiring to distribute controlled substances. Mehl was a long-time associate of the Pagans. Together with the Pagans, O’Brien operated a “pill mill” out of his medical offices. O’Brien wrote fraudulent prescriptions for oxycodone and other drugs, while the Pagans and their associates recruited “pseudo-patients” to buy the fraudulent prescriptions. O’Brien charged $250 cash for the first appointment to obtain prescriptions for controlled substances and $200 cash for each subsequent visit. Oxycodone (30 mg) was in high demand by drug dealers who could sell each pill on the street for as much as $25 to $30. O’Brien sold prescriptions for these dangerous and addictive drugs to hundreds of “pseudo-patients.” After filling the prescriptions, the Pagans resold the pills on the street. The investigation showed that from March 2012 to January 2015, more than 700,000 pills containing oxycodone and other Schedule II controlled substances were distributed by members of the conspiracy.
On October 5, 2016, O’Brien, who was convicted by a jury in summer 2016, was sentenced to 30 years in prison. Pagans members Joseph Mitchell and Patrick Treacy were sentenced to 9 nine years’ and 20 years’ imprisonment, respectively, for their roles in the conspiracy.
The case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration Office of Criminal Investigations, and the Department of Health and Human Services Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary Beth Leahy and David E. Troyer.
Norwalk Man Pleads Guilty to Heroin Distribution Charge Stemming from Bridgeport Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RICHARD PISKE, 34, of Norwalk, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of distribution of heroin.
This prosecution is part of 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, early in the morning of June 29, 2016, Bridgeport Police and emergency medical personnel responded to a report of an apparent overdose and found a 25-year-old female dead on a bedroom floor
The investigation revealed that, on June 28, 2016, the victim’s boyfriend purchased a quantity of heroin from PISKE. Later that day, the victim and her boyfriend ingested some of the heroin that had been purchased from PISKE.
The boyfriend reported that he passed out from the heroin that he had ingested and, when he awoke, his girlfriend was dead.
The Office of the Chief Medical Examiner has determined that the victim died from acute heroin, cocaine and alcohol intoxication.
PISKE was arrested on a criminal complaint on September 29, 2016.
PISKE is scheduled to be sentenced by U.S. District Judge Jeffrey Alker Meyer on November 15, 2017, at which time he faces a maximum term of imprisonment of 20 years. He is released on a $25,000 bond.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Bridgeport Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Michael E. Runowicz.
North Texas Woman Sent to Prison for Trafficking HeroinRead the Press Release
CORPUS CHRISTI, Texas – A 25-year-old woman has been ordered to prison for possession with intent to distribute heroin through the Sarita checkpoint, announced Acting U.S. Attorney Abe Martinez. Ma Dolores Martinez, of Hurst, pleaded guilty Nov. 29, 2016, to possession with intent to distribute 6.28 kilograms of heroin.
Today, U.S. District Judge Hilda G. Tagle ordered Martinez to serve 70 months in federal prison. The sentence will be immediately followed by five years of supervised release.
On Sept. 15, 2016, Martinez drove a vehicle into the primary inspection area of the Border Patrol (BP) checkpoint located near Sarita. During a search of her vehicle, agents discovered four bundles of heroin concealed within a new car battery located inside the trunk. The drugs had a gross weight of 6.28 kilograms.
Martinez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
Border Patrol and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Amanda L. Gould is prosecuting the case.
New Orleans Man Sentenced for Heroin Trafficking via MegabusRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that THOMAS GORDON, a/k/a “Ice,” age 33, of New Orleans, was sentenced today after previously pleading guilty to conspiring to distribute and possess with intent to distribute one kilogram or more of heroin.
U.S. District Judge Carl J. Barbier sentenced GORDON to 72 months imprisonment, along with five years of supervised release.
GORDON was one of eight defendants charged in a 21-count superseding indictment on September 18, 2015. According to court documents, this indictment sprung from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central City, New Orleans. The sources of heroin for this organization traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution in the New Orleans area.
The group’s two Houston-based heroin suppliers, defendants MARTHA QUINONES and KEVIN GONZALEZ, each pled guilty to conspiring to distribute and possess with intent to distribute one kilogram or more of heroin, and were sentenced to 120 months and 57 months imprisonment, respectively. Defendant DONALD EALY pled guilty to conspiring to distribute and possess with intent to distribute one kilogram or more of heroin, and was sentenced to 60 months imprisonment. Defendant REGINALD WASHINGTON pled guilty to conspiring to distribute and possess with intent to distribute 100 grams or more of heroin, and was sentenced to 120 months imprisonment. Defendants EARL BROWN and WILBERT CLARK pled guilty to conspiring to distribute and possess with intent to distribute a quantity of heroin, and were each sentenced to 30 months imprisonment. KENNETH HARRIS has pled guilty to conspiring to distribute and possess with intent to distribute one kilogram or more of heroin, and will be sentenced on November 30, 2017.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation New Orleans Gang Task Force (NOGTF), which includes FBI, the Saint Tammany Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. Assistant United States Attorney Brandon S. Long was responsible for the prosecution.
Mexican national pleads guilty to immigration crimeRead the Press Release
CHARLESTON, W.Va. – A Mexican national pleaded guilty today to an immigration crime, announced United States Attorney Carol Casto. Hermino Camacho-Diaz, 41, entered his guilty plea to illegally reentering the United States.
Camacho-Diaz admitted that he was not lawfully present in the United States when he was encountered by Department of Homeland Security agents on June 8, 2017. Camacho-Diaz was living in Nitro when Homeland Security Agents received a tip that he was present in the country unlawfully. Agents conducted surveillance, confirmed his identity, and placed him under arrest. Camacho-Diaz had previously been removed from the United States on three different occasions in 2010. On all three occasions, he was returned to his home country of Mexico. Camacho-Diaz then illegally reentered the United States. Camacho-Diaz had not formally applied for permission to legally reenter the United States, and was not otherwise in the United States by any legal process.
Camacho-Diaz faces up to two years in federal prison when he is sentenced on September 27, 2017. He is also subject to deportation proceedings at the conclusion of the criminal case.
The Department of Homeland Security conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
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Member of Trenton Drug Trafficking Organization Sentenced to Seven Years in PrisonRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 84 months in prison for his role in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding areas, Acting U.S. Attorney William E. Fitzpatrick announced.
Thomas Rogers, a/k/a “Herb,” a/k/a “T-Rod,” 23, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. As part of his guilty plea, Rogers admitted possessing at least one firearm during the conspiracy. Judge Wolfson imposed the sentence today in Trenton federal court.
In December 2016, Rogers and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader, Ishmael Abdullah. Since then, six of the 10 defendants, including Abdullah, have pleaded guilty.
According to documents filed in this case and statements made in court:
From June 2015 through December 2016, Rogers and others engaged in a drug trafficking organization that operated in the area of Spring and Passaic Streets in Trenton. Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that defendant Ishmael Abdullah was a leader of the Abdullah DTO and was responsible for obtaining significant quantities of heroin from multiple suppliers, including from defendants Jose Joaquin Torres-Mezquita and Ileana Sanchez. Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Rogers.
Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with their narcotics conspiracy, Rogers and other members of the Abdullah DTO maintained joint access to multiple firearms.
In addition to the prison term, Judge Wolfson sentenced Rogers to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Field Office, under the direction of Special Agent in Charge John B. Devito; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Debra Parker; officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Defense counsel: David R. Oakley Esq., Princeton
Maryland man admits to distributing heroinRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Gwynn Oak, Maryland man pled guilty today to heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Dennis Royster, age 41, pled guilty to one count of “Distribution of Heroin.” Royster admitted to distributing heroin in Berkeley County in August 2014.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney Carrie Lehman prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Marion Pair Sentenced on Methamphetamine ChargesRead the Press Release
Roanoke, VIRGINIA – A pair of Marion residents were sentenced today in the United States District Court for the Western District of Virginia in Roanoke on federal drug conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Charles J. Wojciechowicz, 33, of Marion, was sentenced today to 60 months in federal prison. Wojciechowicz previously pled guilty to one count of conspiracy to distribute a measurable quantity of a mixture containing methamphetamine.
In a separate hearing today in U.S. District Court in Roanoke, Danny Douglas Meadows Jr., 41, of Marion, was sentenced to 66 months in federal prison. Meadows also previously pled guilty to one count of conspiracy to distribute a measurable quantity of a mixture of methamphetamine.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Smyth County Sheriff’s Office and the Claytor Lake Drug Task Force. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Man Sentenced to over 11 Years in Prison for Coin and Jewelry Store Armed RobberyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 135 months in prison and five years of supervised release for robbing a coin and jewelry store while pointing a firearm at the elderly store owner and a customer, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Noah Patrick Fields, 23, pleaded guilty on May 17, 2017, to one count of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence. United States District Judge James C. Mahan presided over the sentencing hearing.
According to the plea agreement, Fields admitted that on Oct. 14, 2016, he and a co-conspirator robbed Fremont Coin Company, a coin and jewelry store at 3375 Glen Avenue in Las Vegas, at gunpoint. Fields admitted that he held the 90-year-old store owner and a customer at gunpoint while his co-conspirator stole $3,500 in cash and approximately $42,424 worth of valuable coins and silver and gold bullion from the front display case.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. Assistant U.S. Attorney Kilby Macfadden prosecuted the case.
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Man Sentenced to Life in Prison for Four Carjackings and MurderRead the Press Release
SAN JUAN, P.R. – U.S. District Court Senior Judge Daniel R. Domínguez sentenced Carmelo Velázquez-Aponte a.k.a. “Boty,” to two terms of life in prison for one carjacking and murder of Richardson Mieses-Pimentel, and a consecutive 130-year imprisonment term for the other three carjacking counts, carrying a firearm during and in relation to a crime of violence (carjacking), and possession of a stolen firearm, announced United States Attorney Rosa Emilia Rodríguez-Vélez.
On July 19, 2016, Velázquez-Aponte was found guilty by a jury of four counts of carjacking, one including the murder of Richardson Mieses-Pimentel, four counts of using and carrying a firearm during and in relation to a crime of violence, and two counts of possession of a stolen firearm.
During the 14-day trial, the government presented pictures and witness testimony that narrated the criminal incidents of carjacking and robbery that the defendant perpetrated against innocent victims. According to the testimony, on June 18, 2011, the defendant stole the licensed firearm belonging to Richardson Mieses-Pimental and his vehicle, and then executed him. After that event, Velázquez-Aponte committed other carjackings. During his attempt to escape his arrest on June 20, 2011, he also stole a police officer’s gun and shot a Police officer. The defendant also stole a police cruiser and engaged in two other shootouts with police officers, before he was arrested. The defendant fired the stolen weapons at the police officers.
“I hope that these life sentences help the victims to find closure and continue the healing process,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I commend the prosecution team, the FBI, the Carolina Municipal Police and the Puerto Rico Police Department for their excellent work in bringing this defendant to justice. We will continue to work diligently to prosecute violent criminals to the fullest extent of the law.”
The case was prosecuted by Assistant United States Attorney Edward Veronda.
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Lake County Indiana Sheriff Convicted After 14-Day TrialRead the Press Release
HAMMOND-Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that John Buncich, age 71, of Crown Point, Indiana was convicted of all 6 counts of the superseding indictment, after a 14-day jury trial before District Court Senior Judge James T. Moody.
John Buncich, Timothy Downs and William Szarmach were indicted in November 2016 on multiple federal charges. Buncich, the current Lake County Sheriff, served as sheriff from 1994-2002, and was re-elected in 2010 and again in 2014. Timothy Downs, formerly the Chief in the Lake County Sheriff’s Department, was the second person in command at that Department; Downs was appointed to that position by Buncich. William Szarmach owns and operates CSA Towing in Lake Station, Indiana.
Pursuant to a Lake County ordinance, the sheriff has exclusive authority to determine who would do vehicle towing as required by the sheriff’s department. From February 2014 continuing into October 2016, Buncich devised a scheme to deprive the citizens of Lake County of their right to the honest services of the sheriff’s office. The scheme was designed to enrich Buncich personally and his campaign committee, known as Buncich Boosters. The trial evidence established that a number of checks and cash payments, often collected by Downs, from Szarmach and Scott Jurgensen were exchanged for Buncich awarding them county towing business and towing in the City of Gary for ordinance violations. Mr. Jurgenson, a former Merrillville Police Officer, is the owner of Sampson Relocation and Towing. Mr. Jurgenson provided significant assistance to the United States during the course of this investigation.
The jury convicted Buncich of 5 counts of Honest Services Wire Fraud in connection with this scheme. The jury also convicted Buncich of a charged violation of the federal bribery statute in connection with corruptly soliciting, demanding, and receiving over $25,000 in cash and $7,000 in checks in exchange for favorable actions by Buncich regarding the towing contracts.
Both Szarmach and Downs, who both testified at trial, await sentencing on their guilty pleas to the following charges in the indictment: Timothy Downs entered a plea of guilty to one count of Honest Services Wire Fraud and; William Szarmach entered a plea of guilty to three counts of Honest Services Wire Fraud, Bribery and Failure to File a Tax Return.
Acting United States Attorney Clifford Johnson states that “The United States Attorney’s Office will continue to vigorously prosecute public officials who use their public office as means for personal enrichment. All citizens deserve public officials who work for the public interest and not their own interest.”
"Public officials who abuse their positions for personal financial gain at the expense of the taxpayers will not be tolerated. The FBI and our federal, state, and local partners will continue to aggressively pursue those across Indiana who corrupt their office for self-serving motives," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "Also instrumental in these investigations are the honest and patriotic citizens who come forward and assist in uncovering the truth as was the case in Lake County."
Gabriel Grchan, IRS Criminal Investigation Special Agent in Charge stated, "Taxpayers expect their elected officials to protect and improve their communities. Rather than serve his community Buncich abused his position and devised a pay-to-play towing scheme that benefited him and few others financially. Today's verdict reminds us that public corruption will not be tolerated and no one is above the law."
This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. This case was prosecuted by Assistant United States Attorneys Philip C. Benson and Maria N. Lerner.
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Jury Finds A Man Guilty of Conspiring to Distribute Methamphetamine in Tulsa and ElsewhereRead the Press Release
A jury found Juan Garcia, also known as "Shorty," guilty of Drug Conspiracy, announced Loretta F. Radford, Acting United States Attorney for the Northern District of Oklahoma. The jury determined that Garcia conspired with others to distribute methamphetamine in Tulsa, Oklahoma, and elsewhere. The jury also found the scope of the conspiracy involved at least 500 grams or more of methamphetamine.
On January 26, 2017, Tulsa Department Police (TPD) officers pulled over a Chevrolet truck in which Garcia was a passenger. The truck had been following a Chevrolet Cruze from Oklahoma City, which was transporting three pounds, or approximately 1400 grams, of methamphetamine. TPD officers pulled the Cruze over and found the methamphetamine. TPD officers seized a phone and $19,915 from Garcia's person. TPD officers also discovered three other cellphones in the Chevrolet truck.
TPD officers and agents with the Drug Enforcement Administration (DEA) arrested and interviewed co-conspirators, and extracted data from all of the cellphones seized in this case. From these interviews and data extractions, law enforcement learned that Garcia was the supplier of the three pounds of methamphetamine. Law enforcement also learned that Garcia had been supplying methamphetamine to the other co-conspirators at least as far back as November 2016.
Chief Judge Gregory K. Frizzell, of the United States District Court for the Northern District of Oklahoma, presided over the trial and will sentence Garcia on December 4, 2017. Garcia faces a mandatory minimum of 10 years imprisonment and a maximum of life imprisonment, a $10,000,000 fine, and at least 5 years supervised release following his release from imprisonment. Garcia also faces deportation to Mexico.
This case was investigated by the Tulsa Police Department's Special Investigations Division, the DEA, Oklahoma Highway Patrol, and Immigration and Customs Enforcement. This case was prosecuted by Assistant United States Attorney Neal C. Hong.
Judge Sentences Pittsburgh Heroin Dealer to 10 Years in PrisonRead the Press Release
PITTSBURGH– Cody Duncan was sentenced to 120 months in federal prison for conspiring to distribute at least 1 kilogram of heroin, Acting United States Attorney Soo C. Song announced today.
Duncan, age 26, formerly of Pittsburgh, Pennsylvania, was sentenced by United States District Court Judge Nora Barry Fischer. Judge Fischer ordered that Duncan serve five years of supervised release after he is released from prison. Duncan’s sentencing guideline range for the heroin trafficking conviction was increased as a result of his possession of a dangerous weapon.
Assistant United States Attorneys Rachael L. Dizard and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security/Homeland Security Investigations, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Jonestown and Lykens Men Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on August 9, 2017, Kerry L. Boltz, Sr., age 54, of Jonestown, Pennsylvania, and Chester L. Hubler, III, age 38, of Lykens, Pennsylvania, were indicted by a federal grand jury in a superseding indictment for multiple drug trafficking crimes. Boltz was also indicted on firearms charges. The case was unsealed on August 23, 2017.
According to United States Attorney Bruce D. Brandler, the superseding indictment alleges that Boltz and Hubler conspired to distribute five grams or more of methamphetamine between February 2017 and April 2017, and that the two distributed methamphetamine on multiple occasions during that time period. The superseding indictment also alleges that Boltz distributed heroin and fentanyl, unlawfully possessed firearms (Marlin Firearms Company 336CS 30-30 caliber rifle, a Mossberg Model 46M 22-caliber rifle, and Weatherly Orion 12-guage shotgun) as a previously convicted felon, and possessed a short-barreled shotgun (Remington Wingmaster Model 870 12-gauge shotgun) that was not properly registered.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorney Carlo D. Marchioli.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Jamestown Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Taylor Larson, 32, of Jamestown, NY, who was convicted of possession with intent to distribute 500 grams or more of cocaine, was sentenced to 120 months in prison by U.S. District Judge Lawrence J. Vilardo.Assistant U.S. Attorney Joel L. Violanti, who handled the case, stated that on May 19, 2015, the Jamestown Police Department and the Drug Enforcement Administration (DEA) executed a search warrant, which authorized the search of defendant’s residence on Keller Road in Ashville, NY and his 2005 gray Saab sedan and Jeep Liberty. During the search of the residence, officers found approximately 21 grams of cocaine in an upstairs bedroom, along with a roll of camouflage tape, baggies, and a scale. An additional 36 grams of cocaine was found inside the Saab, and approximately 286 grams of cocaine was found inside the Jeep.
Subsequently, officers searched a vacant apartment located immediately behind the defendant’s residence and recovered an additional 300 grams of cocaine. The cocaine was wrapped in the same camouflage duct tape that was found earlier in the defendant’s residence. Combined, over 500 grams of cocaine was seized from the defendant’s residence, Saab, Jeep, and back vacant apartment.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
Indiana Animal Control Officer Pleads Guilty to Interstate Diversion of Veterinary DrugsRead the Press Release
The Acting Superintendent of Animal Control and Parks for the city of Whiting, Indiana, pleaded guilty today to diverting prescription veterinary antibiotics that were the property of the city’s animal shelter, to a resident of Chicago whom he knew to be involved in dog fighting activities, announced Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division, Acting United States Attorney for the Northern District of Indiana Clifford D. Johnson, and USDA, OIG Special Agent-in-Charge Anthony V. Mohatt.
Martin Jakubowski, 48, of Whiting, Indiana, pleaded guilty today before Judge John E. Martin of the Northern District of Indiana to one count of violating the Federal Food, Drug, and Cosmetic Act by introducing a prescription veterinary drug into interstate commerce without the lawful written or oral order of a licensed veterinarian. Sentencing is set for November 17.
“This prosecution further demonstrates our commitment to end unlawful animal fighting and to bring to justice those who unlawfully participate in this criminality,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division.
“In partnership with the Department of Justice, animal fighting is an investigative priority for the USDA-OIG,” said OIG Special Agent-in-Charge Anthony V. Mohatt. “We will aggressively pursue and dedicate resources to assist in the criminal prosecution of those who participate in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms, and gambling.”
According to admissions made in connection with his guilty plea, Jakubowski oversaw the operation of the city of Whiting’s animal control program and animal shelter. While acting in that role, he gave prescription veterinary antibiotics to Pedro Cuellar to drug his dogs. Cuellar recently pleaded guilty to a federal dog fighting conspiracy charge in the District of New Jersey. The drugs had been purchased by the city animal shelter and were intended to treat two sick shelter cats.
Jakubowski also admitted that at various times between approximately 2011 and 2016, he housed dogs for Cuellar in buildings used by the animal shelter for periods of time extending from three days to more than a year. One of the dogs had scarring consistent with scars on dogs used in fights. Jakubowski also gave two pit bull-type dogs from the city’s animal shelter to Cuellar without standard adoption paperwork, knowing that Cuellar intended to transfer the dogs to other people. Jakubowski also admitted to his own prior involvement in a “roll” dog fight in 2004. A “roll” is a dog fight staged for the purpose of assessing the fighting characteristics of a dog or dogs, rather than for wagering purposes, and is generally stopped by the handlers before serious injuries result.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.” To date, 98 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government.
This part of Operation Grand Champion was investigated by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge Anthony Mohatt. The government is represented by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section, and Assistant U.S. Attorney Toi Denise Houston.
Illegal Alien Possessing Firearms Sentenced to Nearly Seven Years in Federal PrisonRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Honduran national to nearly seven years in prison for being in the United States illegally and possessing firearms, one that was used in a 2016 homicide at a Bessemer nightclub, announced U.S. Attorney Jay E. Town and U.S. Immigration and Customs Enforcement Special Agent in Charge Ray Parmer.
U.S. District Court Judge Virginia Emerson Hopkins sentenced WALTER ALONSO MARTINEZ-CHANDIAS, 27, to six years and nine months in prison on one count of possession of a firearm by an alien illegally in the U.S. Martinez-Chandias pled guilty to the charge in March.
Following an Oct. 23, 2016, homicide at a nightclub in Bessemer, Birmingham Police identified Martinez-Chandias as a suspect, according to his guilty plea. Birmingham officers arrested him following a traffic stop near his Bessemer residence when they saw an AR-style .223-caliber pistol on the front passenger seat next to Martinez-Chandias and a Taurus PT-111 Pro 9mm pistol on the driver’s seat next to his leg, according to the plea. Martinez-Chandias was the only person in the car.
He later admitted to detectives that he possessed the Taurus pistol in connection to the nightclub shooting, according to his plea. Immigration records confirmed that Martinez-Chandias was in the country illegally.
Martinez-Chandias faces state charges in connection to the Bessemer homicide. Judge Hopkins ordered that his federal prison sentence run concurrently with any sentence that might be imposed for the state crime.
ICE’s Homeland Security Investigations and the Birmingham Police Department investigated the case, which Assistant U.S. Attorney Austin Shutt prosecuted.
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Hobbs Man Pleads Guilty to Assaulting a Federal Law Enforcement OfficerRead the Press Release
ALBUQUERQUE – Felipe T. Castillo, 38, of Hobbs, N.M., pled guilty yesterday afternoon in federal court in Las Cruces, N.M., to assaulting a federal law enforcement officer under a plea agreement with the U.S. Attorney’s Office.
Castillo was arrested on June 13, 2017, on a criminal complaint charging him with being a felon in possession of a firearm. According to the complaint, Castillo pointed a firearm at a DEA Task Force Officer on May 31, 2017, in Lea County, N.M. The complaint further indicates that Castillo was on parole for a prior firearms offense when he assaulted the Task Force Officer by pointing a firearm at him. Court documents indicate that Castillo was previously convicted in Texas of engaging in organized criminal activity in 2000, and discharging a firearm in 2002.
During yesterday’s change of plea hearing, Castillo pled guilty to a felony information charging him with assault on a federal officer. In entering the guilty plea, Castillo admitted that on May 31, 2017, he pointed a firearm at a DEA Task Force Agent who was engaged in his official duties.
At sentencing, Castillo faces a maximum penalty of eight years in federal prison. Castillo remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and FBI and the Hobbs Police Department. Assistant U.S. Attorneys Terri J. Abernathy and Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Hearing Set for Brandon Michael Council in Federal CourtRead the Press Release
Columbia, South Carolina-------United States Attorney Beth Drake announced today that a hearing for Brandon Michael Council, age 32, of Wilson, North Carolina, has been set for Thursday afternoon, August 24, 2017, at 2:00 P.M. in the federal courthouse in Greenville, North Carolina, 216 S. Evans St.
Council has been charged in a criminal complaint with Armed Bank Robbery with a Deadly weapon Resulting in Death and with Use, Carry, and Possession of a Firearm in Furtherance of a Crime of Violence.
The case was investigated by Special Agents with the Federal Bureau of Investigation, Conway Police Department, South Carolina Law Enforcement Division, 15th Circuit Solicitor’s Office, South Carolina Highway Patrol, Horry County Police Department, Horry County Sheriff’s Office, Myrtle Beach Police Department, Wilson North Carolina Police Department, Greenville North Carolina Police Department, Bureau of Alcohol Tobacco and Firearms, and the United States Marshal’s Service.
The United States Attorney stated that all charges are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Haverhill Man Pleads Guilty to Bank RobberyRead the Press Release
BOSTON – A Haverhill man pleaded guilty today in U.S. District Court in Boston to robbing a branch of Santander Bank in Boston. At the time of his arrest, the defendant was on probation for a prior bank robbery conviction in federal court.
Gregory Carter, 58, pleaded guilty to one count of unarmed bank robbery. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Nov. 16, 2017. Carter was arrested and charged in May 2017.
On the morning of March 25, 2017, an individual entered a branch of the Santander Bank on Commonwealth Avenue in Boston and handed a teller a note indicating a robbery. The perpetrator stated that he had a gun and repeatedly gestured to his pocket. During the robbery, the perpetrator pulled down a facemask he was wearing and exposed his skin and a thin moustache. The teller handed the man $6,000 in cash, and the robber exited the bank.
Following the robbery, the teller gave the police a description of the robber, and officers reviewed images from exterior surveillance cameras, which revealed that the robber drove through the area in a black Ford Fusion sedan. Bank surveillance also recorded the robber returning to the sedan and driving away.
On March 28, 2017, an officer aware of the recent bank robbery observed a black Ford Fusion on Dudley Street in Boston. The driver, who matched the description of the robber, exited the vehicle and approached a branch of Bank of America. When a police cruiser stopped in front of the bank, the individual turned around and returned to his vehicle. The officer queried the vehicle’s registration number and learned that it belonged to Carter, and a criminal record check revealed that Carter was currently on probation for a prior bank robbery conviction in U.S. District Court.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. Sentences are imposed by a federal district court judge bases upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Somerville Police Chief David Fallon; Haverhill Police Chief Alan DeNaro; and Boston Police Commissioner William Evans, made the announcement today. The investigation was conducted with the assistance of the FBI’s Violent Crimes Task Force. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Hartford Man Sentenced to Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ERIC MUNOZ, 21, of Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 31 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, in 2014, the Drug Enforcement Administration’s Hartford Task Force received information that David Alvarado, also known as “Flaco,” was distributing heroin to street-level dealers and drug customers in the vicinity of his residence on Wethersfield Avenue in Hartford. Between August 2014 and May 2015, investigators made eight controlled purchases of heroin from Alvarado.
A wiretap investigation revealed that Alvarado was being supplied with heroin by MUNOZ and other individuals. At times, MUNOZ also obtained distribution quantities of heroin from Alvarado when Munoz’s sources were “dry.”
On May 26, 2015, investigators conducted a court-authorized search of Alvarado’s residence and seized raw heroin, bagged heroin, heroin stamps, digital scales, thousands of wax folds, and other items used to process and package heroin. Investigators also seized a 9mm Beretta pistol with a loaded magazine, and numerous rounds of ammunition.
On May 11, 2017, MUNOZ pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Greensboro Man Sentenced on Child Pornography ChargeRead the Press Release
GREENSBORO, N.C. – An individual who pleaded guilty to receipt of child pornography was sentenced today, announced Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina.
DANTRE DAVIS, 28, of Greensboro, North Carolina, pleaded guilty on June 5, 2017, to one count of receipt of child pornography occurring from February 2016 to April 2016. He was sentenced by United States District Judge Loretta C. Biggs to 72 months imprisonment followed by 15 years supervised release. DAVIS was also ordered to forfeit a laptop computer and two external storage drives containing child pornography.
Investigators searched DAVIS’ home on April 5, 2016, after observing child pornography being shared online from DAVIS’ IP address. They found thousands of images and videos of child pornography on the computer and storage devices in DAVIS’ home. At the time, Davis was a licensed physician assistant in North Carolina.
The investigation was led by the Guilford County Sheriff’s Office, a member of the North Carolina Internet Crimes Against Children (ICAC) Task Force.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Georgia Sex Offender Sentenced to 25 Years in Federal Prison for Sexual Exploitation of A Louisiana ChildRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced today that Chief U.S. District Court Judge Brian A. Jackson sentenced ERIK VINCENT CLARK, 27, of Chamblee, Georgia, to 300 months in federal prison for sexual exploitation of a minor. CLARK was ordered to serve a 10-year term of supervised release following his release from imprisonment. CLARK was also ordered to pay a $5,100 special assessment. At the conclusion of the sentencing, the Court ordered CLARK to begin serving his sentence immediately and remanded CLARK to the custody of the United States Marshal.
In 2012, CLARK pled guilty to two counts of sexual battery in the State of Georgia. Because of these prior convictions, CLARK was required to register as a sex offender.
On May 12, 2017, CLARK pleaded guilty to sexual exploitation of a minor, in violation of Title 18, United States Code, Section 2251(a) and (e). In connection with his guilty plea, CLARK admitted that, in September 2015, he became acquainted with Child Victim A, a minor child resident of Livingston Parish, Louisiana, through online gaming and social media. In his online chats with Child Victim A, CLARK falsely represented himself to be a 16-year-old boy. After a few days, CLARK obtained Child Victim A’s address and mailed new Xbox headphones to Child Victim A for his use. As their online chats progressed, CLARK asked Child Victim A to engage in sexually explicit conduct via live video chat. CLARK also expressed his intent to travel to Louisiana from Georgia to meet Child Victim A. On October 5, 2015, an investigator assumed Child Victim A’s online identity and sent a fake video file purportedly depicting sexually explicit conduct by Child Victim A to CLARK. Upon receipt, CLARK attempted to open the file and then asked the undercover investigator to send the video again.
Acting U.S. Attorney Amundson stated, “Thanks to the courage of the victim, and the coordinated action of state and federal law enforcement officers in Louisiana and Georgia, Erik Clark did not succeed in his ultimate goal. My office is committed to working with our law enforcement partners to identify and stop sexual predators. This case is a reminder to us all that technology that enhances our everyday lives, such as online gaming and social media, also allows sexual predators to target our children far too easily. More than ever, it is important for families to educate themselves about internet safety.”
“The conviction and sentencing of Erik Clark is a direct result of what can be accomplished when law enforcement agencies on the local, state, and federal levels work together,” said Louisiana Attorney General Jeff Landry. “My office will not rest in our efforts to find child predators and bring them to justice.”
“Identifying and arresting sexual predators remains a top priority for HSI,” said HSI Special Agent-in-Charge Raymond R. Parmer, Jr. “HSI will continue working with our law enforcement partners to arrest those that exploit our children.”
The U.S. Department of Homeland Security (HSI), Immigration and Customs Enforcement (ICE), and the Criminal Division of the Louisiana Attorney General’s Office conducted this joint investigation, with assistance from the DeKalb County (Georgia) Police Department, the Livingston Parish Sheriff’s Office, and the Sex Offender Unit of the Georgia Department of Community Supervision. Assistant U.S. Attorney Cam T. Le, who serves as the Project Safe Childhood Coordinator for the Middle District of Louisiana, prosecuted this matter.
These federal charges are part of Project Safe Childhood, a nationwide initiative by the U.S. 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.
Georgia Man Pleads Guilty to $258,000 Identity Theft, Tax Refund SchemeRead the Press Release
Georgia man pleaded guilty in federal court today to using dozens of stolen identities to file fraudulent tax returns seeking $258,063 in refunds.
Jalen Ortez Gude, 40, of Hillsboro, Ga., pleaded guilty before U.S. District Judge Stephen R. Bough to one count of wire fraud and one count of identity theft.
By pleading guilty today, Gude admitted that, between January 2014 and March 13, 2015, he used the stolen identity information of at least 46 victims (including their names, Social Security numbers, and dates of birth) to file fraudulent tax returns and receive tax refunds from both the federal government and the state of Missouri. According to court documents, those victims included residents of Cole County, Mo., whose stolen identity information had been released over the Internet.
The IRS stopped $94,592 in refunds from being processed; as a result, the aggregate amount of restitution due is approximately $163,470 to 10 of Gude’s victims.
Gude opened bank accounts in the names of his identity theft victims so that the IRS and the Missouri Department of Revenue would transfer the refunds to bank accounts he controlled. This process permitted Gude to remain anonymous and to conduct his scheme, in part, from outside Missouri. Gude also used the stolen identity information to submit fraudulent online credit applications at banks and credit card companies.
Under federal statutes, Gude is subject to a sentence of up to 20 years in federal prison without parole for wire fraud, plus a mandatory consecutive sentence of two years in federal prison without parole for identity theft. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the FBI, IRS-Criminal Investigation, the Missouri Department of Revenue – Compliance and Investigation Bureau and the Missouri Department of Revenue – Criminal Investigation Bureau.
Fort Hall Man Pleads Guilty to Assault with a Dangerous WeaponRead the Press Release
POCATELLO – Murray James Plentywounds, 30, of Fort Hall, Idaho, pleaded guilty today to assault with a dangerous weapon, Acting U.S. Attorney Rafael Gonzalez, announced. Plentywounds was indicted in February 2017 by a federal grand jury in Pocatello.
According to the plea agreement, on November 29, 2016, the Federal Bureau of Investigation was advised that a stabbing had occurred on the Fort Hall Indian Reservation. The female victim was in the Portneuf Medical Center in Pocatello. An FBI agent met her there. The agent found that the victim was being treated for a stab wound to her left shoulder. The victim stated that she had been with friends on the Fort Hall Indian Reservation when she got into a vehicle with another female driving and Plentywounds in the back seat. As they were driving around, Plentywounds became angry at the victim and punched her in the left shoulder. At that time, the victim saw that Plentywounds was holding a knife and she realized that her clothing was cut, she was bleeding and she had been stabbed. The victim was treated at the hospital and has since recovered from her injuries.
The charge of assault with a dangerous weapon is punishable by up to ten years in prison, a maximum fine of $250,000 and up to three years of supervised release.
Sentencing will be November 20, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Federal Bureau of Investigation and the Fort Hall Tribal Police.
Former UVA Football Player Convicted of $10 Million FraudRead the Press Release
RICHMOND, Va. – A federal jury convicted a former University of Virginia football player today of his role in a $10 million fraud scheme.
According to court records and evidence presented at trial, Merrill Robertson, Jr., 36, of Chesterfield, started Cavalier Union Investments, LLC, and Black Bull Wealth management, LLC, with co-conspirator Sherman Carl Vaughn. From 2009-2016, Robertson and Vaughn solicited individuals to invest money in private investment funds that they managed, as well as distinct investment opportunities that they proposed. Robertson identified potential investors through various contacts; including contacts he developed playing football at Fork Union Military Academy, the University of Virginia, and in the National Football League, while Vaughn focused on developing investment opportunities.
“Behind every lie is a choice,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Mr. Robertson lied to his friends and mentors, and many times had the opportunity to come clean and tell the truth. Instead, he chose to continue his lies and fraud, which had devastating effects on his victims. I applaud the terrific efforts of the trial team and our law enforcement partners in investigating and prosecuting this important case.”
Robertson and Vaughn led individuals to believe they were experienced investment advisors, and that they employed other experienced investment advisors to manage their investment funds. For example, Vaughn represented that he was a long-time investor and philanthropist with extensive experience in business and real estate. In fact, Vaughn filed for personal bankruptcy four times, including twice during the time he was soliciting investors for Cavalier.
“There are consequences for people's choices,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office. “Today Mr. Robertson was convicted for his scheme of manipulating friends and associates into trusting him with their savings and ultimately using it for his personal gain. I would like to commend the investigative team and the United States Attorney's Office for their dedication to bring justice to the victims associated with this case.”
As a result of this conspiracy, Robertson and Vaughn fraudulently obtained more than $10 million from over 50 investors, spending much of the money on their own personal living expenses, including mortgage and car payments, school tuitions, spa visits, restaurants, department stores, and vacations.
“The longevity and scope of Mr. Robertson’s scheme to defraud investors is simply astonishing,” said Kimberly Lappin, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Through the joint efforts of IRS Criminal Investigation and our law enforcement partners, Mr. Robertson has been brought to justice and convicted by a jury of his peers. Today’s verdict is a reminder that IRS-CI will remain vigilant in our investigation of these schemes in order to combat this type of criminal conduct.”
“This case is merely the latest in a long tradition of Postal Inspectors relentlessly pursuing anyone who misuses the nation's mail system to commit fraud and take advantage of the American public.” said Inspector in Charge Robert Wemyss. “I'm proud of the work done by all the agents involved in this investigation, and look forward to the continued efforts of the Richmond Securities Fraud Task Force.”
Robertson was convicted of mail fraud, bank fraud, and money laundering. He faces a maximum penalty of 330 years in prison when sentenced on December 6. 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, Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge John A. Gibney, Jr., accepted the verdict. Assistant U.S. Attorneys Katherine Lee Martin and Stephen E. Anthony are prosecuting the case.
The Virginia State Corporation Commission Division of Securities and Retail Franchising assisted with the investigation.
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. 3:16-cr-133.
Former Tribal Executives Sentenced for EmbezzlementRead the Press Release
United States Attorney Randolph J. Seiler announced that former executive board members of the Big Coulee District of the Sisseton-Wahpeton Oyate Tribe were sentenced in federal court on August 21, 2017.
Gerald German Jr., 46, of Peever, South Dakota, was sentenced to 3 months of imprisonment, ordered to pay restitution in the total amount of $79,960, and ordered to pay a fine in the amount of $5,000. German’s restitution amount includes $63,000 to the Sisseton-Wahpeton Oyate, which is from a separate case in which he was indicted. That case was dismissed pursuant to the plea agreement.
Gerald Heminger Jr., 58, of Sisseton, South Dakota, was sentenced to 3 months of imprisonment, ordered to pay restitution in the amount of $5,337.50, ordered to pay a fine in the amount of $2,000, and to serve 3 years of supervised release after serving his prison sentence.
Colette White, 57, of Peever, was sentenced to 3 years of probation, ordered to pay restitution in the amount of $5,160, and ordered to pay a fine in the amount of $3,000.
According to court documents, from approximately June 2010, through March 2013, each of the defendants conspired to embezzle, steal, and knowingly convert to their own use funds from the Big Coulee District of the Sisseton-Wahpeton Oyate Tribe, an Indian tribal organization. The Big Coulee District is a political subdivision of the Tribe. The defendants were all elected executive board members or employees of the District at the time.
During the conspiracy, they stole a total of $81,542.50 from the District. German Jr. received $16,960 of the stolen funds, Heminger Jr. received $5337.50 of the stolen funds, and White received $5,160 of the stolen funds. Each defendant used the funds for his or her own purposes.
The investigation was conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.