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Friday 18 August 2017
Sac City, Iowa Man Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced August 18, 2017, to more than six years in federal prison.
Matthew Wessels, 36, from Sac City, Iowa, received the prison term after a March 15, 2017, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Wessels admitted that beginning on or about 2014 and continuing through about February 2016, he conspired to distribute at least 500 grams of actual (pure) methamphetamine. On August 26 and 27, 2014, and July 21, 2015, law enforcement conducted controlled purchases of methamphetamine (1 gram each) from Wessels. On February 26 and May 17, 2017, law enforcement seized about 15 grams of methamphetamine from Wessels’ vehicle and residence respectively. Wessels also admitted to the weekly acquisition of ¼ to 1 ounce quantities of methamphetamine and redistributing of smaller quantities thereof to numerous customers throughout central Iowa.
Wessels was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Wessels was sentenced to 78 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system. Wessels is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Iowa Division of Narcotics Enforcement, Buena Vista County Sheriff’s Department, Sac County Sheriff’s Department, Sac City Police Department, and Iowa DCI Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-4082. Follow us on Twitter @USAO_NDIA.
Pittston Man Convicted for Heroin, Cocaine, and Crack Trafficking ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Evans Samuel Santos Diaz, age 26, formerly of Pittston, Pennsylvania, was convicted of participating in a drug trafficking conspiracy involving Jeffrey Guzman and others. The jury returned a verdict of guilty after three and a half hours of deliberation following a two-day trial in Scranton, before United States District Court Judge Malachy E. Mannion. The jury further found that the conspiracy involved heroin, cocaine, and cocaine base, or crack.
According to United States Attorney Bruce D. Brandler, this drug trafficking ring distributed more than 100 grams of heroin, cocaine, and crack cocaine. One hundred grams of heroin is equivalent to more than 4,000 individual doses of heroin. Santos Diaz was convicted as a result of a two months’ long investigation that included the use of a Title III wiretap to intercept telephone calls and text messages between the conspirators. Santos Diaz was the sixth and final individual charged in this conspiracy to be convicted.
The investigation was conducted by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Pennsylvania State Police, and the Scranton and Wilkes-Barre Police Departments. Assistant U.S. Attorneys Evan Gotlob and Sean Camoni prosecuted the case.
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.
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Perry County Business Owners Sentenced for Defrauding and Extorting Their CustomersRead the Press Release
LONDON, Ky. – A Perry County couple, who owned several trucking companies, have both been sentenced to 56 months’ imprisonment, for defrauding and extorting more than 65 of their customers.
On August 14, 2017, U.S. Circuit Judge Amul Thapar, sitting by designation in the U.S. District Court for the Eastern District of Kentucky, sentenced 50-year-old Elliot Campbell on his convictions for wire fraud, conspiracy to commit wire fraud and conspiracy to commit extortion. Judge Thapar previously sentenced Melinda Campbell, 41, Elliot Campbell’s wife, on May 24, 2017. Under federal law, both will have to serve at least 85 percent of their 56-month sentences. They have also been ordered to pay $137,210.87 in restitution to their victims.
Both were found guilty of the charges following a jury trial in March of 2016.
The evidence at trial established that, from 2010 until 2012, the Campbells operated trucking companies and contracted with shipping brokers throughout the country to transport cargo freight. According to evidence, the Campbells induced shipping brokers to enter into contracts with special conditions, such as date-specific deliveries using a team of drivers or “dedicated loads” that would transport only a single customer’s cargo freight on a truck. Once the defendants obtained the cargo freight, however, they intentionally failed to fulfill the specified delivery conditions in the contract and then held the cargo hostage, by demanding payment prior to delivery. In response to complaints from shipping brokers, the Campbells created new companies and used false names to disguise and continue their fraudulent scheme, which inflicted significant financial harm on their victims.
Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, Federal Bureau of Investigation; and Thomas J. Ullom, Regional Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General, jointly announced the sentences.
Peoria Woman Charged with Causing Fatal Fentanyl OverdoseRead the Press Release
PHOENIX – On Aug. 16, 2017, a Phoenix grand jury returned an indictment charging Fanny Madrigal-Lopez, 45, of Peoria, Ariz., with federal crimes related to fentanyl trafficking, including one count of distribution of fentanyl resulting in death—a crime that, under federal law, carries a mandatory-minimum sentence of 20 years in prison and a maximum sentence of life in prison. Madrigal-Lopez is currently being detained, pending a Detention Hearing scheduled for Aug. 24, 2017.
Specifically, it is alleged that, on Nov. 16, 2016, Madrigal-Lopez distributed fentanyl to a man who later died from ingesting it. It is further alleged that Madrigal-Lopez used her residence for the purpose of distributing fentanyl and oxycodone from the summer of 2016 through Nov. 16, 2016.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration with the assistance of the Internal Revenue Service-Criminal Investigation, the Maricopa County Sheriff’s Office, the Peoria Police Department, and the U.S. Department of Homeland Security, Homeland Security Investigations. The prosecution is being handled by Carolina Escalante Konti and D. J. Pashayan, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-17-01110-PHX-DLR
RELEASE NUMBER: 2017-077_Madrigal-Lopez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Pasco Woman Found Guilty of Tax Fraud and ObstructionRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Ingrid McBride Rich (New Port Richey, 52) guilty of presenting a false claim to an agency of the United States and obstructing and impeding the Internal Revenue Service in the collection of taxes. She faces a maximum penalty of five years in federal prison for the false claim charge and up three years in federal prison for the obstruction charge. Her sentencing hearing has been set for November 14, 2017.
Rich was indicted on December 13, 2013.
According to evidence presented at trial, in March 2009, Rich submitted a fraudulent tax return to the IRS for tax year 2008 that resulted in her obtaining a refund in the amount of $510,222. After obtaining the refund check, she deposited it into a new bank account, and then immediately began transferring the money into various accounts (in her name and in the name of entities she owned) using cashier’s checks and cash transfers to thwart the efforts of the IRS in recouping the funds. She also sent the IRS frivolous correspondence, including bogus money orders and tax documents, with the intent that such correspondence impede the IRS’s collection efforts. Due to Rich’s obstruction, the IRS was only able to recoup a nominal amount of the fraudulently obtained funds.
This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Rachel Jones and Adam Saltzman.
Operation “REAL-TIME”: Man Who Discharged a Firearm at Fountain Inn Plant in May Enters Guilty Plea in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that David Jerome Butler, age 43, of Simpsonville, pled guilty this week in federal court in Greenville to felon in possession of a firearm and ammunition. United States District Judge Bruce H. Hendricks accepted the plea and will impose sentence after United States Probation prepares a pre-sentence report. Butler faces a statutory maximum sentence of 10 years in federal prison.
Evidence presented at the change of plea hearing established that On May 5, 2017, at approximately 5:43 a.m., the Laurens County Sheriff’s Office (LCSO) received a call for service regarding an active shooter at Yanfeng Global Automotive Interiors in Fountain Inn, South Carolina. LCSO deputies and law enforcement officers from multiple agencies responded to the scene and successfully secured the premises. The alleged shooter, identified as David Jerome Butler, had already fled the scene and one victim was transported to the hospital with non-life threatening injuries.
Initial scene investigation, including victim and witness interviews, revealed that earlier in the morning while inside the building, Butler and a co-worker had gotten into an argument over a work situation that escalated into a physical confrontation. Butler then left the building and retrieved a handgun from his vehicle in the parking lot. Butler re-entered the building and confronted the co-worker on the plant floor. Butler pointed a Beretta 9mm pistol at the co-worker and fired a round that hit the floor and injured another worker. The co-worker, assisted by two other workers, fought Butler and took the gun away from him. Butler then fled the scene in his vehicle. ATF obtained a federal arrest warrant that same morning and arrested Butler upon his self-surrender to local authorities days later. He was detained upon his arrest and remains in custody. Butler, who is prohibited from possessing firearms or ammunition, faces a maximum of ten years in federal prison.
Butler’s case was expedited for federal prosecution pursuant to “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community. “Real Time” is a working collaboration between local, state, and federal law enforcement as well as state and federal prosecutors. Since August of 2015, the initiative has resulted in the expedited federal prosecution of over 120 defendants and seizure of over 160 firearms as well as assorted ammunition from prohibited persons in the upstate.
U.S. Attorney Beth Drake commended the partnership between local, state, and federal agencies that led to the Bureau of Alcohol, Tobacco and Firearms and the U.S. Attorney’s Office adopting the case. “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The Laurens County Sheriff’s Office and ATF investigated the case. First Assistant United States Attorney Lance Crick is prosecuting the case.
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Oklahoma Man Sentenced in Connection to A Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Donnie Heilig, 48, of Oklahoma City, OK, who was convicted of conspiracy to commit wire fraud, was sentenced to eight months home detention and three years probation by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $147,004 in restitution.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that Heilig and co-defendant Ann Nichols utilized a business entity known as CED Computer Services (CED) fraudulently to obtain loans for clients in the form of equipment “leases.” Another co-defendant, Wilfredo Sanio, operated a business in Georgia known as SCF Funding, which acted as a broker and brought clients to CED Computer Services.
Heilig and Nichols falsely advised lease finance companies that CED was selling new equipment to clients and prepared fraudulent invoices for new equipment when, in fact, no equipment or inferior equipment was actually being provided. Upon receipt of the funding from the finance companies, defendant Nichols gave a commission to Heilig, herself, and Sanio, from the lease proceeds and sent the majority of the remaining proceeds to the client.
Ann Nichols and Wilfredo Sanio have been convicted of wire fraud and are awaiting sentencing.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
No Charges to be Filed Against Officers Involved in ShootingRead the Press Release
Oklahoma Highway Patrol Trooper Jasmuel Ray Robertson and Blaine County Deputy Sheriff Monty Goodwin acted in self-defense when shooting Jonathan Richard Daukei, age 38, on July 19, 2017, in Blaine County, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
Daukei, a member of the Cheyenne & Arapaho Tribes, was shot after a vehicle pursuit ended on tribal land. Daukei survived the shooting and is facing a state felony charge for attempting to elude officers. "After a thorough review of the FBI’s investigation, I have determined the officers in this case reasonably believed Trooper Robertson was at risk of death or great bodily harm given Mr. Daukei’s reckless operation of his vehicle," said Yancey.
New London Man Sentenced to 70 Months in Prison for Trafficking Cocaine, Violating Supervised ReleaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FORREST HEMPSTEAD, 32, of New London, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 70 months of imprisonment, followed by four years of supervised release, for trafficking cocaine and violating the conditions of his supervised release from a prior federal conviction.
This matter stems from a long-term investigation headed by the Connecticut State Police Statewide Narcotics Task Force East and U.S. Drug Enforcement Administration into the large-scale distribution of narcotics in southeastern Connecticut. The investigation revealed that John “Soy” King, Sydney “Fatz” Jackson and others regularly acquired kilogram quantities of cocaine and heroin from sources in New York and transported the drugs to southeastern Connecticut. Much of the cocaine was converted to crack cocaine and the drugs were distributed through a network of dealers in Groton, Norwich, New London, Stonington, Westerly, R.I. and the surrounding area.
King used an apartment on East Main Street in Norwich to store, process and package narcotics for street sale. On April 28, 2015, law enforcement officers made entry into the apartment and seized approximately 150 grams of crack cocaine and approximately 80 grams of heroin. On April 30, 2015, officers searched a vehicle that was registered to King and was parked outside of the stash house and seized a kilogram of cocaine. The investigation revealed that the cocaine had been transported from New York to Connecticut on HEMPSTEAD’s behalf and HEMPSTEAD was its intended recipient.
On November 24, 2015, a federal grand jury in Hartford returned a 35-count superseding indictment charging HEMPSTEAD, King, Jackson and 10 other defendants with various narcotics trafficking and firearm offenses. In addition, approximately 20 individuals were prosecuted on related state charges.
HEMPSTEAD was arrested on December 9, 2015, and is detained. On February 21, 2017, he pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine.
HEMPSTEAD’s criminal history includes state drug and weapons convictions, and a 2011 federal conviction for distributing crack cocaine. HEMPSTEAD was released from federal prison in March 2014 and was serving a four-year term of supervised release while engaged in the criminal conduct in this case.
King and Jackson previously pleaded guilty and were each sentenced to 10 years of imprisonment.
This matter has been investigated by the Connecticut State Police Statewide Narcotics Task Force East, U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshals Service, Connecticut Department of Correction and Groton City, Groton Town, New London, Norwich and Waterford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Dave Vatti and Joseph Vizcarrondo, with the assistance of Senior Assistant State’s Attorneys Paul Narducci and David Smith of the State’s Attorney’s Office for the Judicial District of New London.
Monroe County Man Sentenced to 200 Months in Prison for Receiving Child Pornography of ToddlersRead the Press Release
COLUMBUS, Ohio – Brian P. Miller, 38, of Woodsfield, Ohio, was sentenced in U.S. District Court to 200 months in prison and 20 years of supervised release for receiving child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and members of the FBI’s Child Exploitation Task Force announced the sentence handed down yesterday by U.S. District Judge Michael H. Watson.
Miller pleaded guilty in November 2016, at which time he also admitted searching for, downloading and sharing hundreds of child pornography files between October 2014 and March 2016.
When law enforcement conducted a search warrant in March 2016 at Miller’s residence, a forensic examination of his computer revealed a video depicting the sexual abuse of a 12-month-old infant. Several other files that the defendant possessed showed a three-to-four-year-old girl being raped with a metal object.
“These files showed real children suffering real and horrendous abuse, and the defendant’s actions in downloading, viewing, and making the files available to others immeasurably exacerbated the psychological damage they have to endure,” U.S. Attorney Glassman said. “Downloading child pornography is not a victimless crime and will land you in federal prison.”
U.S. Attorney Glassman commended the cooperative investigation by the FBI’s Child Exploitation Task Force, as well as Assistant United States Attorney Heather A. Hill, who is representing the United States in this case.
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Mission Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Adrian William Fast Dog, age 37, was indicted on August 16, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 17, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum of at least 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 7, 2017, and August 4, 2017, Fast Dog, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update his registration.
The charge is merely an accusation and Fast Dog is presumed innocent until and unless proven guilty.
The nvestigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Fast Dog was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Methamphetamine drug trafficking organization dismantledRead the Press Release
Unprecedented seizure of over 66 pounds of methamphetamine confiscated, along with cocaine, heroin, fentanyl, marijuana and 17 firearms
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today the dismantling of a drug trafficking organization that brought unprecedented quantities of illegal drugs into the Indianapolis community. Ten defendants were charged by a grand jury sitting in Indianapolis with conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and cocaine.
“Drug trafficking organizations bring gun violence to our neighborhoods and take advantage of the addiction problem this community and our nation faces,” said Minkler. “This illegal activity will not be tolerated and those who deal drugs in Marion County will soon realize my commitment to help stop the flow of narcotics here. I want the Southern District of Indiana to be the most inhospitable place in the country to sell drugs.”
Those arrested include:
Brayan Quinonez, 23, Indianapolis
Nansi Juarez Robles, 42, Indianapolis
Lauro Parra, 41, Indianapolis
Dwayne Dodd, 40, Indianapolis
Ryan Baird, 33, Indianapolis
Charles Craft, 47, Indianapolis
Donald Bell, 38, Indianapolis
Cory Bailey, 40, Indianapolis
Curt Glass, 35, Fort Wayne
Michael Smith, 43, Indianapolis
According to the indictment, it is alleged that Quinonez was the source of supply for the drugs coming to Indianapolis. Quinonez shared a house in the 3100 Block of Ellen Drive with Juarez-Robles and her four children, where much of the redistribution of drugs took place. Quinonez, assisted on occasion by Juarez Robles, would front the drugs he received from the Southwest border to Parra and others who sold the drugs on consignment. Quinonez would receive his payment after the drugs were sold on the street. Parra, assisted by Ryan Baird, distributed cocaine to individuals such as Dwayne Dodd, and methamphetamine to individuals such as Charles Craft, Donald Bell, and Cory Bailey. Donald Bell, in turn, supplied individuals such as Curt Glass and Mike Smith.
During the investigation, law enforcement recovered over 66 pounds of methamphetamine, six pounds of cocaine, heroin, fentanyl, marijuana, $50,000 in cash and 17 firearms, some of which were assault-style weapons.
This case was investigated by the Federal Bureau of Investigation, the Indianapolis Metropolitan Police Department and the Marion County Sheriff’s Office.
"This illustrates the impact of law enforcement partnerships and how our combined resources can attack these criminal enterprises and remove dangerous offenders and the poison they peddle from the streets," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "No one in our community should have to live in fear of the activity in their neighborhoods from narcotics trafficking."
“Targeting illegal drug dealers will continue to be a collective focus of IMPD and our federal, state and local partners,” said Chief Bryan Roach. “These types of illegal drugs and the individuals who distribute them often degrade the quality of life for our community and bring with them unacceptable levels of violence.”
According to Assistant United States Attorneys Michelle P. Brady who is prosecuting this case for the government, all defendants face up to life in prison if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are considered innocent until proven otherwise in federal court.
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Man Sentenced to 180 Months in Prison for Drug Trafficking and Firearm’s ChargesRead the Press Release
DES MOINES, IA - On August 18, 2017, Derek Duane Mullennaxheather Jean Reekr, 46, of Prairie City, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 60 months in prison for distribution of methamphetamine and 120 months in prison for discharging a firearm in furtherance of a drug trafficking crime, announced United States Attorney Kevin E. VanderSchel. Mullennax will serve a total sentence of 180 months in prison.
On January 11, 2017, Mullennax pleaded guilty to distribution of methamphetamine between February and March of 2016 and discharging a firearm during his flight from law enforcement officers. The distribution charge stemmed from controlled purchases made from Mullennax in February of 2016. When law enforcement officers attempted to arrest Mullennax, he fled in his vehicle, leading officers on a chase through the Pleasant Hill and Colfax areas. Mullennax fired a Taurus 9mm pistol out the roof of his vehicle at an Iowa State Trooper during the chase. No injuries occurred during the chase.
The investigation was conducted by Mid-Iowa Narcotics Enforcement Task Force and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Iowa State Patrol, Jasper County Sheriff’s Office, Pleasant Hill Police Department, Prairie City Police Department, and other federal, state, and local agencies also provided significant assistance with 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].
MS-13 Case Fugitive ApprehendedRead the Press Release
COLUMBUS, Ohio – U.S. Attorney Benjamin C. Glassman announced that prior fugitive Jose Manuel Romero-Parada, 22, formerly of Indianapolis, Ind. and also known as Russo, was apprehended by the FBI at approximately 11:30am today in New Jersey.
Romero-Parada was one of 15 individuals recently indicted in the Southern District of Ohio for allegedly conspiring to extort and launder money in support of the transnational gang MS-13.
One of the 15 defendants charged, Nelson Alexander Flores, 46, also known as Mula, remains a fugitive.
Glassman commended the efforts of federal law enforcement and encouraged the continued support of the community in sharing information relevant to this case.
Individuals are asked to call the anonymous FBI hotline at 614-849-1765.
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Leaders of Staged Automobile Accident Fraud Conspiracy SentencedRead the Press Release
Florida Residents were Convicted by a Federal Jury in March of this Year
GRAND RAPIDS, MICHIGAN —Belkis Soca-Fernandez, 47, and David Sosa-Baladron, 42, of Tampa, Florida, were sentenced to prison in federal court yesterday. A federal jury convicted Soca-Fernandez and Sosa-Baladron in March of this year of health care fraud and conspiracy to commit mail fraud related to a staged automobile accident ring that operated in West Michigan from 2012 to 2015. United States District Judge Paul L. Maloney sentenced Soca-Fernandez to 135 months in prison and Sosa-Baladron to 120 months in prison. When imposing the sentence, Judge Maloney commented that the conduct of the defendants was "an attack on the no-fault automobile insurance system in the state of Michigan that is reliant upon the truth of the claims made." He further commented that the defendants’ scheme was a "brazen scheme of the first order." The court also ordered the defendants to pay restitution of $675,066.96 to the automobile insurance companies that were defrauded.
"This staged automobile accident ring operated a sophisticated fraud over several years in our community," stated Acting U.S. Attorney Andrew Byerly Birge. "The very significant sentences imposed by the court reflect the leadership roles played by Soca-Fernandez and Sosa-Baladron and the fact that they greatly profited from this fraud scheme at the expense of Michigan’s automobile insurance system. My office will continue to vigorously prosecute those who cheat our financial and insurance programs."
The staged automobile accident ring operated three therapy clinics, Revive Therapy Center and HH Rehab Center, in Wyoming, Michigan, and Renue Therapy Center in Lansing, Michigan, from April 2012 to May 2015. The ring recruited and paid cash to individuals to stage automobile accidents and obtain police reports so that insurance claims could be made with their automobile insurance companies. The managers of the clinics and others working with them then told the accident participants what symptoms to present to a physician affiliated with the ring so that she would sign a prescription for physical therapy. The accident participants would then seek unnecessary therapy treatment at the clinics. Typically, after a few therapy sessions, the accident participants would sign blank therapy treatment forms that would be signed by massage therapists to make it appear as if the accident participants were obtaining treatment when they truly were not. The therapy clinics then used the treatment forms to send false insurance claims through the United States mail to automobile insurance companies for therapy treatment that was either not necessary or not actually provided.
"Elaborate insurance fraud schemes like the one perpetrated in this case disrupt the economy and cause law-abiding citizens to pay more for their coverage," said HSI Special Agent in Charge Steve Francis. "HSI is committed to working with our law enforcement partners to bring down organized criminals that have no concern for the law or their affected victims."
"To those that conspire to defraud insurance companies in Michigan, the sentencing of these defendants in this complex staged auto accident scheme should clearly demonstrate that the FBI routinely tracks, identifies, and brings to justice criminals who engage in fraudulent conduct which drives up insurance rates and health care costs for everyone", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "Similarly, the successful collaboration among Homeland Security Investigations, the FBI and the U.S. Attorney's Office is the norm today as law enforcement at every level is more determined than ever to hold unethical individuals accountable for their illegal conduct."
Soca-Fernandez and Sosa-Baladron are the latest of eight individuals sentenced for their role in the staged automobile accident fraud conspiracy. Previously sentenced were:
• Antonio Ramon Martinez-Lopez, 35, Tampa, Florida, manager of Revive Therapy (87 months’ imprisonment)
• Gustavo Acuna-Rosa, 30, Versailles, Kentucky, manager of Renue Therapy (32 months’ imprisonment)
• Yoisler Herrera-Enriquez, 31, Wyoming, Michigan, manager and massage therapist, H&H Rehab (57 months’ imprisonment)
• Eduardo Pardo-Oiz, 35, Nashville, Tennessee, recruiter and accident participant (2 months’ imprisonment)
• Dolis Rojas-Lopez, 31, Wyoming, Michigan, recruiter and accident participant (3 years’ probation)
• Yosvany Gonzalez-Duran, 42, Lansing, Michigan, recruiter and accident participant (1 year probation)
The Department of Homeland Security, Homeland Security Investigations, and the Federal Bureau of Investigation, in Grand Rapids, Michigan, conducted the investigation of the case. Assistant United States Attorneys Ronald M. Stella and Timothy VerHey handled the prosecution and trial.
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Lawrence Man Pleads Guilty to Fentanyl and Heroin Trafficking ChargesRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Rafael Delacruz, a/k/a “Simba,” 55, of Lawrence, Massachusetts pleaded guilty in federal court to three drug distribution charges.
According to court documents and statements made in court, Delacruz sold heroin and fentanyl in hand-to-hand exchanges with cooperating individuals inside a retail store in Plaistow, New Hampshire on July 8, October 20, and November 19, 2015. Delacruz also admitted to selling fentanyl to a cooperating individual on June 22, 2016, inside a retail store in Epping. Each of the transactions was surveilled and recorded by law enforcement officers and, in at least one instance, captured on a store’s security surveillance video. At the time of his arrest on June 22, 2016, Delacruz possessed some of the currency he had received during their transaction earlier in the day. A later search of Delacruz’ residence in Lawrence uncovered $1,000 in cash and a stolen handgun.
Delacruz’s sentencing is scheduled for December 1, 2017. If the plea agreement is accepted by the Court, the defendant will be sentenced to serve 12 years in prison.
“The United States Attorney’s Office is committed to combatting the opioid crisis by using all available tools,” said Acting U.S. Attorney Farley. “We will work tirelessly alongside our law enforcement partners to identify and prosecute those who are responsible for bringing opioids into New Hampshire and attempting to profit from the sale of these deadly drugs. This case is yet another example of the cooperation between various law enforcement agencies who are working together to protect our community.”
“Opioid abuse is at epidemic levels across New England and those suffering from opioid addiction need access to treatment and recovery,” said DEA Special Agent in Charge Michael J. Ferguson. “But those responsible for distributing lethal drugs like heroin and fentanyl to the citizens of New Hampshire need to be held accountable for their actions. DEA is committed to aggressively pursue Drug Trafficking Organizations or individuals who are coming from out of state to distribute this poison in order to profit and destroy people’s lives. In response to the ongoing opioid epidemic DEA and its local, state and federal partners are committed to bringing to justice anyone who distributes these drugs.”
This matter was investigated by the Portsmouth (N.H.) Tactical Diversion Squad of the U.S. Drug Enforcement Administration and the Berwick (Maine) Police Department with the help of the York (Maine) and Ogunquit (Maine) police departments and the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Bill Morse.
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Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on August 17, 2017 and entering pleas of Not Guilty were:
- MICHAEL SHANE DILLER, a 23-year-old resident of Billings, appeared on charges of conspiracy to possess with the intent to distribute and to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, DILLER faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-91
Appearing before U.S. Magistrate Cavan in Billings on August 14, 2017 and entering pleas of Not Guilty were:
- TIMOTHY SCOTT BISHOP, a 44-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, BISHOP faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 17-88
- CRYSTAL DAWN SIMPSON, a 33-year-old resident of Grass Range, appeared on charges of conspiracy to manufacture methamphetamine. If convicted of the charge contained in the indictment, SIMPSON faces 20 years in prison, $1,000,000 in fines, and 4 years supervised release. The case was investigated by the Bureau of Land Management. PACER Case Reference. 17-97
Appearing before U.S. Magistrate Cavan in Billings on August 7, 2017 and entering pleas of Not Guilty were:
- AUTUMN FAITH CANNADAY, a 30-year-old resident of Wibaux, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, CANNADAY faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Montana Highway Patrol. PACER Case Reference. 17-38
- ANDREW MICHAEL GINN, a 37-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, GINN faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 17-94
Appearing before U.S. Magistrate Cavan in Billings on August 3, 2017 and entering pleas of Not Guilty were:
- ETHAN ROBERT CORD ESSER, a 25-year-old resident of Colstrip, appeared on charges of possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charge contained in the indictment, ESSER faces life in prison, $5,000,000 in fines, and 4 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 17-92
Appearing before U.S. Magistrate Johnston in Great Falls on August 3 27, 2017 and entering pleas of Not Guilty were:
- MICHELLE ANDRA JOYNER, a 45-year-old resident of Cascade, appeared on charges of sexual exploitation of a child, and receipt of child pornography. If convicted of the most serious charges contained in the indictment, JOYNER faces 30 years in prison, $250,000 in fines, and lifetime supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference. 17-57
- TIMOTHY ALLEN WEAVER, a 35-year-old resident of Cascade, appeared on charges of sexual exploitation of a child, and receipt of child pornography. If convicted of the most serious charges contained in the indictment, WEAVER faces 30 years in prison, $250,000 in fines, and lifetime supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference. 17-57
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
INTERPOL Washington, ICE seek public's help to identify unknown female suspect in child sex abuse and exploitation caseRead the Press Release
WASHINGTON – INTERPOL Washington, the U.S. National Central Bureau (USNCB), and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) are urging the public to help identify an unknown suspect wanted for questioning in an unsolved case of child sexual abuse and exploitation.
Investigators have been unable to identify the suspect using traditional investigative means and request the public’s assistance. All tips will remain confidential. Members of the public should not attempt to apprehend the suspect personally.
In addition to public appeals, investigators have been distributing the suspect’s photo to fellow law enforcement agencies, and to the National Center for Missing & Exploited Children, in a unified effort to identify the suspect and rescue the child.
At the request of ICE-HSI, INTERPOL Washington caused the issuance of an INTERPOL Blue Notice for the unidentified subject. Blue Notices are published by INTERPOL, the International Criminal Police Organization, for the purpose of tracing, locating, and seeking information on persons of interest in criminal investigations. They are disseminated to law enforcement officials in all 190 member countries of INTERPOL.
The suspect is being added to ICE's Operation Predator App, which allows users to receive alerts
about wanted predators, to share the information with friends via email and social media tools, and to provide information to ICE by calling or submitting an online tip.Anyone with information about this suspect is urged to contact the agency though the app; or by
calling the HSI Tip Line, which is staffed 24-hours a day at 1-866-347-2423 from the U.S. &
Canada, or 1-802-872-6199 from anywhere in the world, or by submitting an online tip form.
Individuals should not attempt to apprehend the suspect personally.The smartphone app is part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers.
For additional information about wanted suspected child predators, download ICE’s Operation Predator smartphone app or visit the online suspect alerts page.
Houston Home Health Agency Owner Sentenced to 480 Months in Prison for Conspiring to Defraud Medicare and Medicaid of More Than $17 MillionRead the Press Release
WASHINTON – The owner and operator of five Houston-area home health agencies was sentenced on Thursday to 480 months in prison for conspiring to defraud Medicare and the State of Texas’ Medicaid-funded Home and Community-Based Service (HCBS) and Primary Home Care (PHC) Programs of more than $17 million and launder the money that he stole from Medicare and Medicaid. The HCBS and PHC Programs provided qualified individuals with in-home attendant and community-based services that are known commonly as “provider attendant services” (PAS). This case marks the largest PAS fraud case charged in Texas history.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Dallas Regional Office, Special Agent in Charge D. Richard Goss of IRS Criminal Investigation’s (CI) Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Godwin Oriakhi, 61, of Houston, was sentenced by U.S. District Judge Sim Lake of the Southern District of Texas. In March 2017, Oriakhi pleaded guilty to two counts of conspiracy to commit health care fraud and one count of conspiracy to launder monetary instruments.
According to admissions made as part of Oriakhi’s plea, he, his co-defendant daughter and other members of his family owned and operated Aabraham Blessings LLC, Baptist Home Care Providers Inc., Community Wide Home Health Inc., Four Seasons Home Healthcare Inc. and Kis Med Concepts Inc., all of which were home health agencies in the Houston area. Oriakhi admitted that he, along with his daughter and other co-conspirators, obtained patients for his home health agencies by paying illegal kickback payments to patient recruiters and his office employees for hundreds of patient referrals. In his plea, Oriakhi also admitted that he, along with his daughter and co-conspirators, paid Medicare and Medicaid patients by cash, check, Western Union and Moneygram for receiving services from his family’s home health agencies in exchange for the ability to use the patients’ Medicare and Medicaid numbers to bill the programs for home healthcare and PAS services. Oriakhi admitted that he, his daughter and their co-conspirators also directly paid some of these patients for recruiting and referring other Medicare and Medicaid patients to his agencies. Additionally, Oriakhi admitted that he, his daughter and other co-conspirators paid physicians illegal kickbacks payments, which Oriakhi and his co-conspirators called “copayments,” for referring and certifying Medicare and Medicaid patients for home health and PAS services.
Oriakhi further admitted that each time he submitted a claim predicated on an illegal kickback payment he knew he was submitting a fraudulent claim to Medicare or Medicaid based on his false representations that the claim and the underlying transaction complied with the federal Anti-Kickback Statute and other state and federal laws. Oriakhi further admitted that he knew that Medicare and Medicaid would not otherwise pay for the fraudulent claims, according to his plea. In addition to the home health care and PAS services fraud scheme, Oriakhi admitted that he and his co-conspirators used the money fraudulently obtained from Medicare and Medicaid to make illegal kickback payments to patient recruiters, employees, physicians and patients to promote the Medicare home health and Medicaid PAS fraud conspiracies, and ensure their successful continuation.
In total, Oriakhi that he and his co-conspirators submitted approximately $17,819,456 in fraudulent home healthcare and PAS claims to Medicare and Medicaid and received approximately $16,198,600 on those claims.
To date, three others have pleaded guilty based on their roles in the fraudulent scheme at Oriakhi’s home healthcare agencies. Oriakhi’s daughter, Idia Oriakhi, and Charles Esechie, a registered nurse who was Baptist’s primary admissions nurse, each pleaded guilty to one count of conspiring with Oriakhi and others to commit health care fraud. Jermaine Doleman, a patient recruiter, pleaded guilty to conspiring with Oriakhi and others to commit health care fraud and launder money. Doleman was also charged in two other healthcare fraud cases. Esechie was also sentenced on August 17, to 60 months in prison. Idia Oriakhi and Jermaine Doleman are awaiting sentencing.
The case was investigated by the IRS-CI, FBI, HHS-OIG and MFCU under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Senior Trial Attorney Jonathan T. Baum and Trial Attorneys Aleza S. Remis and William S.W. Chang of the Fraud Section of the Justice Department’s Criminal Division.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Henderson Man Pleads Guilty to Selling Ammunition, Smoke Grenades and Equipment Stolen from U.S. MilitaryRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nev., man pleaded guilty today to selling military-issued ammunition, smoke grenades, and other equipment that was stolen from the U.S. Air Force, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Temogen Tran Noguni, 38, pleaded guilty to one count of unauthorized sale of property of the United States. United States District Chief Judge Gloria M. Navarro accepted the guilty plea and scheduled sentencing for Nov. 17, 2017. At the time of sentencing, Noguni faces a statutory maximum penalty of up to 10 years in prison and a $250,000 fine.
According to the plea agreement, Noguni met co-defendants Jonathan Joseph Owens and Daniel Schwartz through Vape and Shoot, a group that smoked vapors and shot firearms in the Las Vegas area. Owens, a Staff Sergeant in the U.S. Air Force, offered to provide Noguni and Schwartz with military ammunition for their use in shooting their personal firearms, which they accepted. Owens had stolen the ammunition from Nellis Air Force Base in Nevada. Owens then offered to sell Noguni ammunition along with smoke grenades, body armor plate carrier vests, and other stolen military equipment. Noguni and Owens met on 8-10 occasions for delivery of and payment for stolen military smoke grenades; military equipment including a red dot optical rifle scope; a set of night vision binoculars and goggles; military ammunition to include 9mm, 5.56x45mm, and .50 caliber cartridges; and other military equipment. The .50 caliber ammunition, which is not available for sale to the general public, is armor-piercing incendiary ammunition designed to pierce the shell of armored vehicles and explode inside. Many of the containers for the ammunition and grenades were designated with military unit markings from Nellis Air Force Base. Noguni then listed the stolen military ammunition, smoke grenades, and equipment for sale on the Internet and an undercover ATF agent purchased some of the stolen items.
Owens, 27, of North Las Vegas, pleaded guilty to theft of property of the United States and is scheduled to be sentenced on Sept. 29, 2017. Schwartz, 42, of Las Vegas, pleaded guilty to retaining stolen property of the United States and was sentenced to three years probation.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Air Force Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Jared L. Grimmer.
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Hartsville Man Sentenced to 60 Years in Prison for Production of Child PornographyRead the Press Release
Richard A. Souders, 41, of Hartsville, Tennessee, was sentenced today by visiting United States District Court Judge Marvin Aspen, to 60 years in prison for production of child pornography, transportation of child pornography, and receipt of child pornography, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
Souders was charged in a 12-count indictment in October 2014, after an undercover investigation revealed that Souders was trading child pornography with like-minded individuals. Investigators discovered that during a week in mid-June 2014, Souders had been taking care of a 17-month old girl and took sexually explicit images of her on four occasions. He communicated online with others, who also had a sexual interest in children, talking about his molestation of this baby in his care and sending sexually exploitive images of her. Additionally, he had a collection of over 100 images and videos of other children being sexually abused.
“The sentence imposed by the Court reflects the horrendous actions of the defendant and society’s need to punish the offender and insure that no other innocent children will become a victim of his perverted sexual desires,” said Acting U.S. Attorney Jack Smith.
Souders pleaded guilty to these charges in December 2015, admitting that he had recorded the sexually explicit images of a toddler, transported those images to others online, and collected images and videos depicting the sexual exploitation of young children.
This matter was investigated by the Federal Bureau of Investigation and the Dickson County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.
Former Union Boss of Operating Engineers Local 324 Pleads Guilty to ExtortionRead the Press Release
John Hamilton, the former top elected official of the 18,000 member Operating Engineers Local 324, International Union of Operating Engineers, pleaded guilty today to conspiring to commit extortion, Acting United States Attorney Daniel L. Lemisch announced.
Hamilton, 62, of Rivera Beach, Florida, admitted to conspiring to violate the Hobbs Act with at least two other former top Local 324 officials. Hamilton admitted forcing business agents and other employees of Local 324 to each pay kickbacks of over $5,000 from their salaries per year into what was called the “Team Hamilton Slate Fund.” Ostensibly, the slate fund was to be used for union election campaign expenses. However, Hamilton instead used a significant portion of the money that was forced from union business agents for his own personal benefit. Hamilton threatened union employees with termination if they complained about the payments to his slate fund. In fact, in 2010, Hamilton fired one business agent who had complained about the payments to Hamilton’s fund. Hamilton used some of the money that he extorted to pay for meals and liquor, as well as $5,000 to his daughter as a wedding present. After losing re-election in an August 2012 membership vote, Hamilton then proceeded to pocket for himself $71,000 from his slate fund, as well as distributing over $35,000 each to Steven Minella and David Hart, two other top Local 324 officials.
As part of his guilty plea, Hamilton agreed to pay $250,000 in restitution to the victims of his crime.
In 2015, Minella, the former Local 324 President, and Hart, the former Local 324 Financial Secretary, both pleaded guilty to felonies for helping to conceal Hamilton’s scheme. Both Minella and Hart are scheduled to be sentenced on October 10, 2017.
Local 324 represents heavy equipment and crane operators throughout Michigan. Hamilton served as the Business Manager of the union, its top elected official, from 2003 through 2012. The union is headquartered in Bloomfield Township, Michigan.
Lemisch was joined in the announcement by James Vanderberg, the Special Agent in Charge of the Department of Labor, Office of Investigations—Labor Racketeering and Fraud, Special Agent in Charge David P. Gelios of the Federal Bureau of Investigation’s Detroit Division, Ian Burg, District Director of the Department of Labor, Office of Labor Management Standards, Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service, Criminal Investigation, and L. Joe Rivers, Regional Director, Cincinnati Regional Office, Employee Benefits Security Administration.
“Union officials should be dedicated to promoting the best interests of their rank and file members, not their own personal enrichment,” Acting United States Attorney Lemisch said. “This prosecution demonstrates that union officials will be held to account if they abuse their positions of trust to force their employees, under threat of termination, to pay kickbacks to their union bosses.”
"John Hamilton was the top elected representative of more than 18,000 members of the International Union of Operating Engineers Local 324. Hamilton conspired to extort fellow union officers and members of $250,000, under the threat of being fired, and used much of the money to personally enrich himself. We will continue to work with our law enforcement partners to stop extortion plots that victimize American workers," stated James Vanderberg, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
"John Hamilton selfishly abused his position by extorting and bullying union members into contributing money for his own benefit, and, in the process, destroyed the trust of those he was elected to represent,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “The FBI is committed to fight all forms of corruption. As evidenced in this investigation, today' guilty plea demonstrates collaboration among law enforcement partners makes it far more likely that leaders in the labor union movement who illegally profit at the expense of their membership will be held to account for their crimes."
“Protecting financial integrity and combatting corruption in labor unions is a very high priority for OLMS,” said Ian Burg, Director of the Office of Labor-Management Standards (OLMS) Detroit-Milwaukee District Office. “This information and plea agreement send a clear message that OLMS will fully investigate and seek justice when anyone attempts to use their union position for personal financial gain.”
“This is yet another example of Union Officials abusing the power and responsibilities entrusted on them,” stated Manny Muriel, Special Agent in Charge of IRS Criminal Investigation Detroit Field Office. “John Hamilton acted no differently than a school yard bully, when he threatened the members of Local 324 with termination of their union jobs if they did not make weekly payments into the fund. The IRS and its partners will continue to work to protect the integrity of the unions.”
“This defendant abused his position for his own benefit and jeopardized the trust of many individual workers. EBSA is committed to holding employee benefit plan officials accountable for their actions,” stated L. Joe Rivers, Regional Director, Cincinnati Regional Office, Employee Benefits Security Administration.
Upon conviction for a violation of Title 18, United States Code, Section 371, conspiracy to interfere with commerce, Hamilton faces a maximum of five years in prison and a fine of up to $250,000.
The case was investigated by agents of the Department of Labor, Office of Investigations—Labor Racketeering and Fraud, the Office of Labor Management Standards, the Employee Benefits Security Administration, the Internal Revenue Service—Criminal Investigations, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys David A. Gardey and Dawn N. Ison.
Former UAW Official Charged in Scheme to Accept Illegal Payments from Fiat Chrysler AutomobilesRead the Press Release
A superseding information was filed in federal court charging the former Assistant Director of the UAW Chrysler Department with criminal violations of the Labor Management Relations Act, announced Acting U.S. Attorney Daniel L. Lemisch.
Joining in the announcement was James Vanderberg, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Ian Burg, District Director, U.S. Department of Labor – Office of Labor-Management Standards, David P. Gelios, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, and Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations,
Virdell King, 65, of Detroit, Michigan, was charged with taking part in a multiyear conspiracy for UAW officials to accept money and things of value from Fiat Chrysler Automobiles US (FCA) between 2011 and 2015.
According to court documents, Virdell King was one of the senior UAW officials responsible for negotiating and administering the national collective bargaining agreements with FCA on behalf of tens of thousands of UAW members. Virdell King was also a member of the UAW’s National Negotiating Committees in 2011 and 2015 that negotiated the collective bargaining agreements between the UAW and FCA.
The Superseding Information charges Virdell King with accepting thousands of dollars in designer shoes, clothing, jewelry, luggage and other personal items, all of which were purchased using credit cards issued through the UAW-Chrysler National Training Center. According to court documents, FCA Vice President Alphons Iacobelli told senior UAW officials that they could use their NTC credit cards to make personal purchases, stating “if you see something you want, feel free to buy it.”
Beyond the purchases for herself, the Superseding Information charges Virdell King with making over $40,000 of additional purchases between December of 2012 and August of 2015 at the direction and for the benefit of other senior UAW officials. Those additional purchases included a shotgun, golf equipment, luggage, concert tickets, theme park tickets and other personal items. All of the credit card purchases were paid for with funds provided by FCA.
“This alleged conspiracy among several union and corporate officials to abuse their positions for personal gains at the expense of hard-working Chrysler employees is highly alarming,” said Ian Burg, Director of the Office of Labor-Management Standards (OLMS) Detroit-Milwaukee District Office. “OLMS remains committed to fulfilling its mission of protecting the rights of union members and maintains a zero tolerance policy regarding financial misconduct by union officials. OLMS will continue to partner with other law enforcement agencies to investigate allegations of corruption by union officials whose members have placed their work lives in their trust.”
"Years of fraud and corruption within a select group of the FCA and UAW hierarchy continue to be eroded through the diligence and collaboration of law enforcement in the Detroit metropolitan area, said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. The superseding information against Virdell King highlights the FBI's commitment to end the abusive practice of using union training finances for personal gain. As evidenced, these efforts make it far more likely that leaders in the labor union movement who illegally profit at the expense of their membership will be held to account for their crimes."
Acting U.S. Attorney Lemisch commended the outstanding work of the US Department of Labor – Office of Inspector General and Office of Labor-Management Standards, the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigations for continuing to conduct a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
An information is only a charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Tribal Executive Sentenced to Federal Prison for EmbezzlementRead the Press Release
United States Attorney Randolph J. Seiler announced that a former executive board member of the Big Coulee District of the Sisseton-Wahpeton Oyate Tribe was sentenced in federal court on August 17, 2017, to 10 months of imprisonment. Carrie Godfrey, 52, of Sisseton, was also ordered to pay restitution in the amount of $31,640, to pay a fine in the amount of $3,000, and to serve three years of supervised release after serving her prison sentence.
According to court documents, from approximately June 2010 through March 2013, Godfrey and her co-defendants conspired to embezzle, steal, and knowingly convert to their own use funds from the Big Coulee District of the Sisseton-Wahpeton Oyate Tribe, an Indian tribal organization. The Big Coulee District is a political subdivision of the Tribe. Godfrey and her co-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. Godfrey received $31,640 of the stolen funds and used the funds for her own purposes.
The investigation was conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former Postal Employee Sentenced to 12 Months in Federal Prison for Workers' Compensation FraudRead the Press Release
DALLAS — Andria Victoria Booker, a/k/a Andria Victoria Crosby, 37, most recently from Charlottesville, North Carolina, was sentenced this morning before U.S. District Judge Sidney A. Fitzwater to serve 12 months in federal prison for making false statements to obtain federal employees’ compensation, announced U.S. Attorney John Parker of the Northern District of Texas.
Booker pleaded guilty in January 2017 to one count of false statement or fraud to obtain federal employees ‘compensation and agreed to pay $41,395 in restitution to the U.S. Department of Labor Office of Workers’ Compensation Programs (OWCP). Judge Fitzwater ordered Booker to report to the Bureau of Prisons on October 3, 2017.
“Federal benefits programs are enacted in order to protect government employees should they suffer legitimate work injuries. Unfortunately there are those who choose to take advantage of the system and file fraudulent claims,” said Special Agent in Charge Maximo Eamiguel, of the U.S. Postal Service Office of Inspector General Southern Area Field Office. “The sentence imposed today should be a testament to the USPS-OIG’s determination in investigating these cases and bringing these criminals to justice. Fraud against the Office of Workers’ Compensation Programs and the United States Postal Service will not be tolerated and we will use all resources necessary to complete these investigations.”
According to documents filed in her case, in March 2012, Booker claimed she was injured by a dog bite on her finger through a residential mail slot while she was working for the U.S. Postal Service. OWCP accepted her injury claim and began paying her disability benefits.
As part of the OWCP benefits program, a claimant must annually truthfully complete Form EN-1032 that requires a claimant to report employment, self-employment activities, volunteer activities, or any activities that may affect the claimant’s eligibility for payments. Form EN-1032 encompasses all activities for the 15-month period preceding the date of the claimant’s signature.
According to plea documents filed in her case, Booker admits that she did not immediately report to OWCP her employment or employment activity, and she concealed the fact that she was working when she signed and dated Form EN-1032 in September 2014. Booker admits that she worked as a personal trainer at I.T. Fitness in Grand Prairie, Texas, and elsewhere, including forming her own personal training business while she was receiving disability compensation benefits from the OWCP and had stated she did not work. Booker further admitted that she did not report any of her volunteer activities to the OWCP, as she was required to do, when she regularly volunteered for her son’s football program as team representative.
The case was investigated by the U.S. Postal Service Office of Inspector General. Special Assistant U.S. Attorney Jennifer Bray prosecuted.
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Former Police Officer Pleads Guilty to Trafficking Steroids, Money LaunderingRead the Press Release
PROVIDENCE – Evan Speck, 34, of Westerly, R.I., a former Charlestown, R.I., police officer, pleaded guilty in U.S. District Court in Providence today to charges that he trafficked steroids and laundered the proceeds from his sales.
Appearing before U.S. District Court Chief Judge William E. Smith, Speck pleaded guilty to an information charging him with possession with the intent to distribute steroids, distribution of a misbranded drug, and money laundering.
Speck’s guilty plea is announced by Acting United States Attorney Stephen G. Dambruch; Jeffrey Ebersole, Special Agent in Charge of the New York Field Office of the U.S. Food and Drug Administration Office of Criminal Investigations; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
According to information presented to the Court, on March 20, 2017, federal investigators executed a court-authorized search of Speck’s residence, and encountered items associated with the receipt, packaging and resale of steroids and other performance enhancing drugs. The residence also contained numerous labels containing the name under which he sold steroids, TabMan Pharmaceuticals.
Investigators also seized various false identification documents, ledgers, and cash. The ledgers show that from approximately June 2015 to the date of the search, Speck received $536,000 from the sale of steroids and other drugs. Investigators also seized two firearms from Speck’s residence, and a loaded firearm found stashed in his vehicle.
According to information presented to the Court, Speck had been ordering Testosterone Cipionate from China since at least the beginning of 2015, repackaging the drug and selling it to his customers. At no time either upon receipt by the defendant nor after repackaging it under the name “TabMan Pharmaceuticals” did the testosterone contain labeling specifying directions for its use.
Speck conducted his drug transactions through third party, member only, and web based steroid boards to connect with potential customers. He communicated with his customers, many of whom were professional and amateur bodybuilders, and distributors of raw products utilizing encrypted emails and varying email addresses. He utilized text message software that would eliminate texts after they were read.
To conceal the movement of funds, Speck utilized various money remittance services, utilizing false names to conceal his identity as both the sender and recipient of tainted funds. Speck, his customers and distributors of raw product, utilized regularly changing intermediary nominees, domestically and abroad, to receive money remittances.
The defendant also used crypto-cyber currency, Bitcoin, to conceal both the purchase and sales of products.
According to court documents, Speck will forfeit to the government the three firearms and a total of $17,954 in cash seized during the court authorized search of his home; and will, based on his narcotics trafficking, as charged in the information, forfeit a sum of money equal to the total value of forfeitable assets, in the amount of $536,000.
Additionally, the government and Speck have agreed that for the purpose of calculating the appropriate sentencing guideline range, the defendant possessed a dangerous weapon in connection with drug trafficking and the defendant distributed an anabolic steroid to an athlete.
Speck is scheduled to be sentenced on November 3, 2017 by U.S. District Court Chief Judge William E. Smith.
The case is being prosecuted by Assistant U.S. Attorneys Dulce Donovan and Mary E. Rogers, with the assistance of Assistant U.S. Attorney John P. McAdams.
The matter was investigated by the Rhode Island FDA Office of Criminal Investigations task force, IRS Criminal Investigation, U.S. Postal Inspection Service, and Homeland Security Investigations.
The Rhode Island FDA Office of Criminal Investigations task force is comprised of agents and officers from the FDA, IRS, DEA, HSI, Rhode Island State Police and the East Providence, North Providence and Westerly Police Departments.
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Former JBLM Soldier Sentenced to 20 Years in Prison for Raping Two-Year-Old ChildRead the Press Release
A former enlisted soldier at Joint Base Lewis McChord was sentenced today in U.S. District Court in Tacoma to 20 years in prison and lifetime supervised release for production of child pornography, announced U.S. Attorney Annette L. Hayes. LUIS ALBERTO MORALES, 42, was arrested in August 2016 after his estranged wife found images on his cell phone of MORALES raping a 2-year-old autistic child. At the sentencing hearing U.S. District Judge Robert J. Bryan ordered Morales to be on lifetime supervised release and register as a sex offender following his prison term.
“This is a horrific crime – words are inadequate to describe the harm done by this defendant,” said U.S. Attorney Annette L. Hayes. “I commend the dedicated law enforcement officers from the U.S. Army Criminal Investigation Command and the FBI who moved quickly to protect the victim and worked closely with our office to ensure the defendant was locked up and held to account.”
According to records filed in the case, MORALES’ estranged wife discovered videos showing the rape of the two-year-old and contacted Army Military Police. The rape occurred on JBLM giving federal authorities jurisdiction. MORALES was taken into federal custody August 9, 2016, and indicted for aggravated sexual abuse of a minor and production of child pornography. MORALES has been in federal custody since his arrest. In May 2017, MORALES pleaded guilty to production of child pornography which carries a mandatory minimum term of 15-years in prison.
The case was investigated by the U.S. Army Criminal Investigation Command (Army CID) and the FBI. The case is being prosecuted by Assistant United States Attorneys Grady Leupold and Matthew Hampton.
Former CEO of Summit Wealth Management sentenced to prison for orchestrating a multi-million dollar fraud schemeRead the Press Release
ATLANTA – Angelo Alleca, the former CEO of Atlanta, Georgia, based Summit Wealth Management, has been sentenced to eight years in federal prison for a multistate investment fraud scheme. The scheme victimized over 300 people who lost more than $24 million dollars.
“Alleca defrauded victims from across the country and, like many investment fraudsters, he preyed on seniors, retirees, and others simply looking for safe and secure returns,” said U.S. Attorney John Horn said. “Citizens should take careful steps to research and scrutinize any investment manager to whom they entrust their hard-earned money, and remember that if something does not seem right, they should ask questions.”
“There is a very real victimization felt by people who have entrusted their financial futures to the hands of someone who would uncaringly violate that trust,” said David J. LeValley, Special Agent in Charge of the FBI Atlanta Field Office. “In some cases people lose their entire life savings. Though they may never fully recover financially, hopefully the sentences handed down in this case and the restitution imposed will give the victims some solace for their losses.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: From on or about 2004 until 2012, Alleca acted as the President and Chief Executive Officer of Summit Wealth Management, an investment adviser headquartered in Atlanta. During that time, Alleca started several funds and falsely misrepresented that money would be invested in hedge funds and debt securities and managed by professional investment managers.
Instead of investing the money as advertised, Alleca lost a substantial portion of the funds through securities trading. Additionally, he improperly used the funds to operate Summit Wealth Management, make interest payments and redemptions to earlier investors, and to pay personal expenses. During the course of the scheme, fraudulent account statements were mailed to investors showing gains, when there was no money in the funds.
In 2007, Mark Morrow, a co-defendant in the case and Alleca’s former business partner, established Detroit Memorial Partners LLC, which sold promissory notes to acquire and manage cemeteries in Michigan.
Between 2007 and 2012, Morrow and Alleca marketed promissory notes in Detroit Memorial Partners to Summit Wealth clients in Atlanta and throughout the country. Detroit Memorial Partners’ offering documents contained material misrepresentations, including that the notes would be secured by real property when in fact no security interest was ever recorded with respect to the notes. Moreover, shortly after receiving the note proceeds, Alleca and Morrow diverted funds for improper purposes including, making interest payments and redemptions to investors in Summit Wealth Management funds and personal expenses. Because of their fraud schemes, over 300 investors lost over $24 million dollars invested in the Summit Funds and Detroit Memorial Partners LLC.
Angelo Alleca, 47, of Buffalo, New York, was sentenced by U.S. District Court Judge Leigh Martin May to eight years in federal prison and three years of supervised release and ordered to pay $24,382,487.66, in restitution. On May 26, 2016, Alleca pleaded guilty to one count of conspiracy to commit wire and mail fraud and one count of conspiracy to commit wire fraud.
On April 27, 2017, Mark Morrow, 56, of Cincinnati, Ohio, pleaded guilty to one count of conspiracy to commit wire fraud. His sentencing is scheduled for October 18, 2017 at 9:30 am, before U.S. District Court Judge Leigh Martin May.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Jeffrey Brown prosecuted 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.
Former CEO of Arthrocare Corporation Convicted for Orchestrating $750 Million Securities Fraud SchemeRead the Press Release
A federal jury today convicted the former chief executive officer of ArthroCare Corporation, a publicly traded medical device company based in Austin, Texas, for his role in orchestrating a fraud scheme that resulted in shareholder losses of over $750 million.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Richard L. Durbin, Jr. of the Western District of Texas and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field office made the announcement.
After a two-week trial, a jury in the Western District of Texas found the former CEO, Michael Baker, 58, of Austin, Texas, guilty of one count of conspiracy to commit wire fraud and securities fraud, seven counts of wire fraud, two counts of securities fraud and two counts of making false statements. Baker was charged in a superseding indictment unsealed on July 17, 2013.
Evidence at trial demonstrated that Baker, along with his co-conspirators, masterminded and executed a scheme to artificially inflate sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors beginning in 2005 and continuing until 2009. Co-conspirators David Applegate and John Raffle, both former senior vice presidents of ArthroCare, pleaded guilty to multiple felonies in 2013 in connection with their participation in the scheme. Co-conspirator Michael Gluk, former chief financial officer of ArthroCare, pleaded guilty to conspiracy to commit wire and securities fraud on June 14, in connection with his participation in the scheme.
The trial evidence showed that Baker, along with his co-conspirators, determined the type and amount of product to be shipped to distributors based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders. Baker and others then caused ArthroCare to “park” millions of dollars’ worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare then reported these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.
Evidence at trial further showed that ArthroCare’s distributors agreed to accept shipment of millions of dollars of products in exchange for special conditions, including substantial, upfront cash commissions, extended payment terms and the ability to return products, allowing ArthroCare to falsely inflate revenue by tens of millions of dollars. Baker and others used DiscoCare, a privately owned Delaware corporation, as one of the distributors to cover shortfalls in ArthroCare’s revenue. At Baker’s direction, ArthroCare shipped product to DiscoCare that far exceeded DiscoCare’s needs.
Baker and others lied to investors and analysts about ArthroCare’s relationships with its distributors, including DiscoCare; Baker caused ArthroCare to acquire DiscoCare specifically to conceal from the investing public, the nature and financial significance of ArthroCare’s relationship with DiscoCare, the evidence showed.
Evidence at trial also established that Baker lied when he was deposed by the U.S. Securities and Exchange Commission in November 2009 about ArthroCare’s relationship with DiscoCare.
Following today’s verdict, U.S. District Judge Sam Sparks of the Western District of Texas, who presided over the trial, remanded Baker into custody. A sentencing date for Baker has not yet been scheduled.
This case was investigated by the FBI’s San Antonio Field Office. The case is being prosecuted by the Fraud Section’s Securities and Financial Fraud Unit Chief Benjamin D. Singer, Assistant Chief Henry P. Van Dyck and Trial Attorney Caitlin Cottingham.
Former Attleboro Police Sergeant Pleads Guilty to Attempting to Receive Child PornographyRead the Press Release
PROVIDENCE –Richard F. Woodhead, 54, of South Attleboro, Mass., a former Attleboro police sergeant, pleaded guilty in U.S. District Court in Providence today to an information charging him with attempted receipt of child pornography, announced Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
Woodhead was arrested on April 6, 2017, by HSI agents and members of the ICAC task force.
According to information presented to the Court, between September 22, 2016, and January 19, 2017, Woodhead posted an online advertisement entitled, “Perv on your daughter – m4m.” In this advertisement, the defendant requested to see nude pictures of people’s daughters. Woodhead posted this advertisement online multiple times between September 2016 and January 2017.
In January 2017, a Rhode Island State Police detective assigned to the ICAC task force discovered the “Perv on your daughter” advertisement. The detective responded to the advertisement in an undercover capacity, and communicated with Woodhead via email. The detective pretended to be the guardian of a young child. During these conversations, Woodhead requested a photograph of the child and described in explicit terms the types of sexual relations he wanted to have with the child.
On January 26, 2017, Woodhead agreed to continue the conversations via telephone. An HSI agent, acting in an undercover capacity as the guardian, had three conversations with Woodhead, all of which were recorded by law enforcement. During these telephone calls, the agent and the defendant discussed meeting so that Woodhead might engage in sexual relations with the child. During these conversations, Woodhead asked the agent to send him naked pictures of the child so that he could become sexually aroused.
On April 6, 2017, ICAC task force members and HSI agents executed a court-authorized search warrant at the defendant’s residence in South Attleboro. During that search, behind a wall in a secret compartment of a closet off of the master bedroom, a state police detective located a thumb drive and four discs, along with nylons, two bottles of acetone, and a picture of a school-aged female. One disc contained a video, which depicted prepubescent boys masturbating and engaging in sexual acts. The thumb drive contained nude photographs of minor teenage girls engaged in the lascivious exhibition of the genitals.
U.S. District Court Chief Judge William E. Smith, who accepted Woodhead’s guilty plea, is scheduled to sentence Woodhead on November 3, 2017.
This case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
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Former Assistant Chief of Staff of the U.S. Navy’s Seventh Fleet Charged in Massive Navy Corruption Scandal; Pleads Guilty to Bribery ConspiracyRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – August 18, 2017
SAN DIEGO – U.S. Navy Captain Jesus Vasquez Cantu admitted in federal court today that he accepted bribes in the form of parties and prostitutes while sneaking proprietary information to foreign defense contractor Leonard Glenn Francis and his Singapore-based firm, Glenn Defense Marine Asia.
Twenty-eight individuals, including 21 current and former Navy officials and five civilian defendants, plus GDMA, the corporation, have been charged so far as part of the massive fraud and bribery investigation. Nineteen of these defendants have pleaded guilty. Nine defendants await trial.
Cantu, 59, of Silverdale, Washington, pleaded guilty to one count of conspiracy to commit bribery and is scheduled to be sentenced on November 9, 2017 before U.S. District Judge Janis L. Sammartino.
In his plea agreement, Cantu acknowledged that Francis took him and others out for drinks and dinners at posh restaurants, nightclubs and karaoke bars and paid for lavish hotel rooms and the services of prostitutes on numerous occasions in 2012 and 2013. Cantu admitted that he provided proprietary U.S. Navy information to Francis, and that he used his power and influence to help Francis and GDMA with their business.
“The number of U.S. Navy officials who participated in this conspiracy is astounding,” said Acting U.S. Attorney Alana W. Robinson. “Like so many others, this defendant sold out the Navy and his country for cocktails and karaoke. We are pressing forward in this investigation until we are certain that all involved have been held accountable.”
“The guilty plea of Jesus Cantu is another sad chapter in the largest fraud and corruption scandal in the U.S. Navy's history,” said Dermot O'Reilly, Deputy Inspector General for Investigations, Office of Inspector General, Department of Defense. “While the conduct of the vast majority of U.S. Navy personnel is beyond reproach, the unfortunate truth is that for years Leonard Francis and Glenn Defense Marine Asia, compromised the integrity of numerous members of the U.S. Navy. This investigation continues, and the Defense Criminal Investigative Service and its law enforcement partners will relentlessly pursue those individuals involved in this massive corruption scandal.”
NCIS Director Andrew Traver said of today’s events, “Captain Cantu, like others caught up in the GDMA scandal, dishonored his sworn oath of office. NCIS, in concert with our partner agencies, remains resolved to following the evidence wherever it may lead, to help hold accountable those who choose personal gratification over duty and professional responsibility.”
According to his plea agreement, Cantu served in the Navy until 2014. During the time he was accepting bribes from Francis in 2012 and 2013, Cantu was the deputy commander, Military Sealift Command (MSC) Far East in Singapore. He oversaw the MSC ships that provided logistical sustainment to Navy ships operating in the Seventh Fleet.
Cantu also admitted in his plea agreement that, in 2007, when he was the Assistant Chief of Staff for Logistics for the Commander of the U.S. Navy’s Seventh Fleet aboard the USS Blue Ridge, he and others participated in a bribery conspiracy with Francis. Cantu and other members of the conspiracy accepted more than $135,000 in meals, entertainment, travel and hotel expenses, and the services of prostitutes from Francis; in exchange, they worked together to help Francis as issues important to his business arose.
Cantu’s 2007 conduct described in the plea agreement is related to the March 2017 indictment of nine high-ranking Seventh Fleet U.S. Navy officers. Retired U.S. Navy Rear Admiral Bruce Loveless and others are accused of conspiring with Francis, trading military secrets and substantial influence for sex parties with prostitutes, extravagant dinners and luxury travel. The others include Captains David Newland, James Dolan, Donald Hornbeck and David Lausman; Colonel Enrico DeGuzman; Lt. Commander Stephen Shedd; Commander Mario Herrera and Chief Warrant Officer Robert Gorsuch. Their cases are pending.
The U.S. Navy’s Seventh Fleet represents a vital piece of the United States military’s projection of power as well as American foreign policy and national security. The largest numbered fleet in the U.S. Navy, the Seventh Fleet comprises 60-70 ships, 200-300 aircraft and approximately 40,000 Sailors and Marines. The Seventh Fleet is responsible for U.S. Navy ships and subordinate commands that operate in the Western Pacific throughout Southeast Asia, Pacific Islands, Australia, and Russia and the Indian Ocean territories, as well ships and personnel from other U.S. Navy Fleets that enter the Seventh Fleet’s area of responsibility. The USS Blue Ridge is the command ship of the Seventh Fleet and houses at-sea facilities for Seventh Fleet senior officials.
The other current or retired Navy officials charged so far in the fraud and bribery investigation are U.S. Navy Admiral Robert Gilbeau; Captain Michael Brooks; Captain Daniel Dusek; Commander Michael Misiewicz; Commander Jose Luis Sanchez; Commander Bobby Pitts; Commander David Kapaun; Lt. Commander Gentry Debord; Lt. Commander Todd Malaki; Petty Officer First Class Daniel Layug; NCIS Supervisory Special Agent John Beliveau; and Paul Simpkins, a former DoD civilian, who oversaw contracting in Singapore.
All have pleaded guilty. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine. On March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to pay $95,000 in restitution to the Navy. Beliveau was sentenced on October 14, 2016 to 12 years in prison and to pay $20 million in restitution; Simpkins was sentenced on December 2, 2016 to 72 months in prison and ordered to pay a fine of $50,000, to forfeit $450,000 of the proceeds of the criminal activity, and to pay $450,000 in restitution to the U.S. Navy; Gilbeau was sentenced on May 17 to 18 months in prison and ordered to pay a $100,000 fine and $50,000 in restitution to the Navy; and Brooks was sentenced on June 16 to 41 months in prison and ordered to pay a $41,000 fine and $31,000 in restitution to the Navy. Sanchez, Pitts and Kapaun await sentencing.
Also charged are five GDMA executives – Francis, Alex Wisidagama, Ed Aruffo, Neil Peterson and Linda Raja. All have pleaded guilty; Wisidagama was sentenced on March 18, 2016 to 63 months and $34.8 million in restitution to the Navy; Peterson and Raja were extradited from Singapore in 2016 and sentenced on August 11 to 70 months and 46 months in prison, respectively. Francis and Aruffo await sentencing.
Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 17CR2376-JLS
U.S. Navy Captain Jesus Vasquez Cantu Age 59 S ilverdale, Washington
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: 5 years in prison, a $250,000 fine,
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Florida Salesman Sentenced to Prison for Tax EvasionRead the Press Release
A Fort Lauderdale, Florida, resident was sentenced to 12 months and one day in prison for tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Thomas Daly, 53, evaded paying taxes on more than $1.5 million in income that he earned from 2002 to 2015. Except for the 2007 tax year, Daly has not filed an income tax return since 2002. He worked for a Fort Lauderdale company selling hurricane-resistant windows to residential homeowners in South Florida. In August 2009, the Internal Revenue Service (IRS) notified Daly of its intent to levy his wages because of his failure to pay taxes. To obstruct the IRS’s collection efforts, Daly established his own business, South Florida Home Marketing Inc. (SFHM), and changed his employment status from an employee to an independent contractor. Daly listed himself as the director of SFHM and opened a business bank account in its name. Due to Daly’s change in employment status, his employer paid SFHM directly and the IRS’s attempts to levy Daly’s wages were thwarted.
From approximately August 2009 through April 2017, Daly used SFHM’s bank account to pay for personal expenses, including rent, cigars, international travel, entertainment, his girlfriend’s cosmetic surgery, jewelry, and a boat. He also falsely classified numerous personal expenses as business expenses on the memo line of the checks drawn on the SFHM bank account. Daly admitted that he made these false entries with the intent to claim false business expense deductions and evade the assessment of his income taxes. Daly admitted that his actions caused a tax loss of more than $351,241.
In addition to the term of prison imposed, U.S. District Judge Kenneth A. Marra ordered Daly has been ordered to serve two years of supervised release and to pay $459,481.03 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr. and Michael C. Boteler of the Tax Division, who prosecuted the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Firefighter, Two Pharmaceutical Employees Admit Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Three men today admitted defrauding New Jersey state health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick and New Jersey Attorney General Christopher S. Porrino announced.
Michael Pepper, 45, an Atlantic City, New Jersey, firefighter from Northfield, New Jersey; Thomas Hodnett, 41, a pharmaceutical sales representative from Voorhees, New Jersey; and Steven Urbanski, 37, a pharmaceutical sales representative from Marlton, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to separate informations charging them with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Pepper, Hodnett, and Urbanski served as recruiters in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the informations as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
The conspirators recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Pepper, Hodnett, and Urbanski’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to other members of the conspiracy.
Once they had recruited an employee covered by the Pharmacy Benefits Administrator, Pepper, Hodnett, and Urbanski would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. They would select the compounded medications that paid the most without regard to their medical necessity.
Other conspirators would then get the prescriptions signed by doctors who never saw the patients and never evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
According to the informations, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey. Pepper received approximately $113,627.54 for his role in the scheme. Hodnett received approximately $269,966.08 for his role in the scheme. Urbanski received approximately $113,668.12 for his role in the scheme.
Each defendant faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for Pepper, Hodnett, and Urbanski is scheduled for Dec. 5, 2017.
As part of their plea agreements, Pepper must forfeit $113,627.54 in criminal proceeds and pay restitution of at least $719,481.65. Hodnett agreed to forfeit $269,966.08 and pay restitution of at least $1,497,541.44. Urbanski must forfeit $113,668.12 in criminal proceeds and pay restitution of at least $752,291.94.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the guilty pleas. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Porrino and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Defense counsel:
Pepper: Joseph A. Levin Esq., Atlantic City, New Jersey
Hodnett: James J. Leonard Jr. Esq., Atlantic City, New Jersey
Urbanski: Richard Sparaco Esq., Cherry Hill, New Jersey
Firearms Crime ReportRead the Press Release
Raymond Pargo, 37, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Roy White, 35, was indicted by a federal grand jury for possession with intent to distribute methamphetamine, felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.
Andre Meadows, 37, was indicted by a federal grand jury for felon in possession of a firearm.
Mark Richardson, Jr., 19, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Demetrius Richmond was indicted by a federal grand jury for possession with intent to distribute heroin, marijuana and cocaine base; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Lywayne Scott, 34, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Byron Mischeaux, 24, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Jermayne Welch, 37, St. Louis, MO, was indicted by a federal grand jury for felon in possession of a firearm.
Michael Thomas-Williams, 34, Hazelwood, MO, was indicted by a federal grand jury for possession with the intent to distribute cocaine, cocaine base, heroin and marijuana; possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm.
Marquis J. Hoffman, 32, pled guilty to one felony count of felon in possession of a firearm.
Christopher Bell, 36, pled guilty to one felony count of felon in possession of a firearm.
Malcolm Johnson, 26, pled guilty to one felony count of possession of a firearm in furtherance of a crime of violence, resulting in murder.
Michael Hodge, 27, St. Louis, pled guilty to felon in possession of a firearm.
Floyd Murray, 26, St. Louis, pled guilty to one felony count of felon in possession of a firearm and possess with the intent to distribute heroin.
Keonta C. Douglas, 19, Lebanon, IL, pled guilty to one felony count of carjacking and one felony count of possession of a firearm in furtherance
Dwayne Harris, 30, St. Louis, pled guilty to one felony count of felon in possession of a firearm.
Robert Neuman, 34, pled guilty to one felony count of felon in possession of a firearm.
Dennis Howard, 32, pled guilty to one felony count of felon in possession of a firearm.
Jacob A. Niebruegge, 19, pled guilty to one felony count of transferring a firearm, knowing that the firearm would be used in a crime of violence that is, armed robbery.
Michael T. Jones, 44, St. Louis, was sentenced to 33 months in prison for felon in possession of a firearm.
Khylon Hampton, 22, was sentenced to 155 months in prison for carjacking and brandishing a firearm in furtherance of a crime of violence.
Eddie Randolph, 35, was sentenced to 42 months in prison for felon in possession of a firearm.
Marquel Simmons, 26, St. Louis, was sentenced to 24 months in prison for felon in possession of a firearm.
Lamontae Oliver, 26, was sentenced to 60 months in prison for felon in possession of a firearm.
Kenneth Kulage, 31, St. Louis, was sentenced to 34 months in prison for felon in possession of a firearm.
Keenan McCaleb, 26, St. Louis, was sentenced to 49 months in prison for felon in possession of a firearm.
Dion T. Hampton, 33, St. Louis, was sentenced to 54 months in prison for felon in possession of a firearm.
Federal Jury Convicts California Man for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that yesterday, a federal jury convicted DAN PIZARRO, age 48, a resident of California, for his role in conspiring to distribute methamphetamine and heroin in the New Orleans area. Following a 4-day trial, the jury found PIZARRO guilty of the sole count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine and a quantity of heroin.
According to the evidence presented at trial, in June 2014, St. Bernard Parish Sheriff’s Office (SBSO) deputies investigating methamphetamine distribution in Arabi, Louisiana, arrested two men who were selling methamphetamine on West Judge Perez Drive. Through their investigation, deputies learned that their source of methamphetamine was a resident of California and that PIZARRO had introduced them to the source, thereby setting the conspiracy into motion.
Additional evidence presented at trial showed that even after leaving the New Orleans area, PIZARRO continued to direct and supervise the conspiracy. SBSO deputies coordinated with agents from the Drug Enforcement Administration (DEA) New Orleans Field Office, and between June 26th and 27th, 2014, federal agents and SBSO deputies intercepted four packages containing methamphetamine mailed through Federal Express to Arabi. In total, the four packages contained over one kilogram of methamphetamine. According to DEA laboratory analysts, the methamphetamine in all four packages had a purity level of over 99%, with one shipment testing as 100% pure methamphetamine.
PIZARRO faces a minimum sentence of ten years of imprisonment and a maximum of life imprisonment, a maximum $10,000,000 fine, and at least five years of supervised release. Sentencing before Judge Martin L.C. Feldman is scheduled for December 6, 2017.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration and St. Bernard Parish Sheriff’s Office, and he thanked the Los Angeles Police Department for their assistance in this investigation. Assistant United States Attorneys Shirin Hakimzadeh and Matthew Payne were responsible for the prosecution.
Durham Man Arrested in Raleigh Sentenced to 10 Years in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, John Stuart Bruce, announces that today in federal court, United States District Judge Louise W. Flanagan sentenced DWIGHT CHRISTOPHER BROWN, 33, of Durham, to 120 months in prison followed by 3 years of supervised release. On February 14, 2017, BROWN was found guilty by a jury of being a Felon in Possession of a Firearm.
At trial the evidence showed that on January 19, 2016, a woman contacted the Durham Police Department and reported that her vehicle was stolen. She told officers that she previously allowed her ex-boyfriend, DWIGHT CHRISTOPHER BROWN, to use her vehicle during their relationship. On January 4, 2016, BROWN was supposed to pick her up from work; however, he did not show, and he had not returned any of her phone calls or texts.
On March 3, 2016, officers with the Raleigh Police Department, attempted to conduct a traffic stop on BROWN, who was driving the stolen vehicle. BROWN slowed and sped up several times before slowing down to almost a stop. BROWN then jumped out of the vehicle and fled the scene as the vehicle continued to roll forward until a passenger, placed the vehicle in park. While pursuing BROWN, the officer observed him carrying a handgun. During the pursuit, another officer observed BROWN unsuccessfully attempt to load a round into the chamber of the pistol. BROWN then threw the pistol next to a Waffle House and continued to flee the scene. While in pursuit, BROWN ran across the road with oncoming traffic causing the officers to run parallel to BROWN until a break in traffic allowed them to cross safely. The pursuing officer yelled at BROWN to stop, after which BROWN laid down on the sidewalk. When additional law enforcement officers arrived, they placed BROWN into custody for possession of a stolen vehicle, possession of a stolen gun, possession of a firearm by felon, and resisting arrest.
Officers then retrieved a .40 caliber handgun that was reported stolen from the perimeter of the Waffle House and next to BROWN’s shoe that he lost during the foot chase. During a search of the vehicle, officers found multiple items that belonged to BROWN.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Raleigh Police Department. Assistant United States Attorneys Peggah B. Wilson and Jacob Pugh are handling the case on behalf of the government.
Doctor & Owner of Multiple Home Health Companies Sentenced in a nearly $60 Million Medicare Fraud SchemeRead the Press Release
DALLAS – Myrna S. Parcon, a/k/a “Merna Parcon,” 62, of Dallas and Ransome N. Etindi, 57, of Waxahachie, Texas, were sentenced yesterday by U.S. District Judge Jane Boyle for their role in a nearly $60 million Medicare fraud scheme, announced U.S. Attorney John Parker of the Northern District of Texas.
Parcon and Etindi each pleaded guilty to conspiracy to commit health care fraud. Judge Boyle sentenced Parcon to 120 months in prison and ordered her to pay $51,497,930.87 in restitution. Judge Boyle sentenced Etindi to 30 months in prison and ordered him to pay $18,309.171.21 in restitution. They are scheduled to surrender to the Bureau of Prisons on September 20, 2017.
Co-defendant Noble U. Ezukanma, 57, of Fort Worth, Texas, was convicted, following a five-day trial, in March 2017 of one count of conspiracy to commit health care fraud and six counts of health care fraud and is awaiting sentencing. Co-defendants Oliva A. Padilla, 57, of Garland, Texas and Ben P. Gaines, 55, of Plano, Texas, have pleaded guilty to their role in the scheme and are awaiting sentencing. Lita S. Dejesus, 70, of Allen, Texas, also pleaded guilty and was sentenced to 24 months in federal prison and ordered to pay $4,193,655.78 in restitution.
According to their pleas, Ezukanma, Parcon, and Dejesus owned/operated US Physician Home Visits (USPHV), a/k/a “Healthcare Liaison Professionals, Inc.” located on Viceroy Drive in Dallas. Parcon was the owner/manager and Ezukanma was a licensed medical doctor who had an ownership interest in USPHV. Both Ezukanma and Etindi provided their Medicare number to the company to use to submit Medicare claims. Dejesus served in various roles at USPHV, including overseeing Medicare billing.
Gaines formed A Good Homehealth (A Good), a/k/a “Be Good Healthcare, Inc.,” which was located in the same office as USPHV. Parcon, who owned and operated A Good, purchased the company through a “straw” buyer; both Gaines and Parcon concealed Parcon’s ownership. Parcon and Padilla formed Essence Home Health (Essence), a/k/a “Primary Angel, Inc.,” located on Midway Road in Addison, Texas. While the three companies appeared to be set up as three separate entities, the companies worked as one; the same employees often worked for all three companies and were often paid by all three companies.
According to the factual resumes for each defendant, from January 1, 2009 to approximately June 9, 2013, Ezukanma and Etindi certified 94% of the Medicare beneficiaries receiving home health services from A Good, and 65% of the Medicare beneficiaries receiving home health services from Essence. Had Medicare known of the true ownership and improper relationship between the three companies, Medicare would not have allowed these companies to enroll in the program and bill for services.
USPHV submitted billing under both Dr. Ezukanma’s and Dr. Etindi’s Medicare provider number, regardless of who actually performed the service. They billed at an alarming rate, generally billing for only the most comprehensive physician exam, and always adding a prolonged service code. USPHV submitted claims to Medicare for physician visits of 90 minutes or more, when most visits took only 15 to 20 minutes. Most all of USPHV patients came from home health companies soliciting certifications and recertifications for home health. More than 97% of USPHV Medicare patients received home health care, whether they needed it or not. The false certifications caused Medicare to pay more than $40 million for fraudulent home health services.
The case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, the FBI, the and the Texas Attorney General’s Medicaid Fraud Control Unit and were brought as part of the Medicare Fraud Strike.
Assistant U.S. Attorney Katherine Pfeifle prosecuted.
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District Woman Sentenced to Seven Years in Prison for Injuring Pedestrians and Ramming into CarsRead the Press Release
WASHINGTON – Donnie Bean, 49, of Washington, D.C., was sentenced today to seven years in prison on charges stemming from incidents over a 90-minute period in which she struck numerous cars and pedestrians, including a police vehicle, while driving under the influence of alcohol and cannabinoids in downtown Washington, U.S. Attorney Channing D. Phillips announced.
Under what is known as the Alford doctrine, Bean pled guilty in May 2017 in the Superior Court of the District of Columbia to three counts of assault with a dangerous weapon and one count of felony assault on a police officer. Under an Alford plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction.
The plea, which was subject to the Court’s approval, called for an agreed-upon sentence of five to seven years in prison. The Honorable Danya A. Dayson accepted the plea today and sentenced Bean accordingly. Following her prison term, Bean will be placed on three years of supervised release.
The plea involved a series of incidents that took place on Saturday, May 7, 2016, from approximately 5:45 p.m. until 6:30 p.m. According to the government’s evidence, Bean was under the influence of alcohol and cannabinoids, as well as suffering from unmedicated mental health conditions, that day when she drove a black Honda Civic in downtown Washington.
At approximately 6 p.m., according to the government’s evidence, she ran a red light at the intersection of Seventh Street and Florida Avenue NW. She struck a bicyclist and continued through the intersection, then striking and knocking to the ground a 9-year-old girl who was crossing the street with her family. The child was taken to a hospital with minor injuries.
At about 6:10 p.m., Bean nearly hit two other people who were in a crosswalk at Fifth and H Streets NW. After one of the pedestrians yelled at her, Bean replied with words to the effect of “You wanna make it real?” and made a U-turn and then drove back at them. They escaped harm by dodging behind a traffic signal pole.
Shortly thereafter, according to the government’s evidence, Bean rear-ended a car at Fifth Street and Massachusetts Avenue NW. The driver of that car got out of his vehicle, tapped on Bean’s window, and told her not to leave. Bean backed up and accelerated toward him, hitting him and flipping him over her car into the middle of Massachusetts Avenue NW. The man was treated on the scene by paramedics and later went to the hospital with minor injuries.
Bean continued to flee. Officers with the Metropolitan Police Department (MPD) saw Bean driving erratically and attempted to stop her. An officer, who was in full uniform and driving a marked police car, saw her in the 1200 block of V Street NW and attempted to stop her. She tried to leave the scene, rammed her vehicle into the police car, and fled westbound into the 1300 block of V Street NW. The officer pulled alongside Bean’s car, trying to stop her, and she rammed her car into the side of his police vehicle several times. He eventually was able to stop Bean. Several officers removed her from the vehicle and placed her in handcuffs.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Jennifer Clark and Diana Lim, and Assistant U.S. Attorneys Natasha Smalky, C.B. Buente, and Vanessa Goodwin, who investigated and prosecuted the case.
Convicted Domestic Abuser Charged for Illegal Possession of Firearms and AmmunitionRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a federal grand jury in Anchorage has returned an indictment charging Timmy Lloyd Inga, 55, of Anchorage, with being a prohibited person in possession of a firearm and ammunition. Inga was previously convicted of a misdemeanor domestic assault charge in 2015 and he is therefore prohibited under federal law from possessing a firearm or ammunition.
According to the indictment, on or about June 28, 2017, Inga was found to be in possession of two SKS type 7.62x39mm semi-automatic rifles as well as ammunition. If convicted, Inga faces a statutory maximum of ten years in prison.
According to the FBI, there were 42 domestic violence homicides in Alaska from 2003 to 2012. Of those homicides, 50 percent were committed with guns. Of the 103 female homicide victims in Alaska from 2003 to 2012, 27 were killed as a result of a domestic violence incident. Data gathered from the FBI’s Supplementary Homicide Report for 2014 indicates that 91 percent of female homicide victims from that year knew their assailant. Of those women, 40 percent were wives, girlfriends, ex-wives or common-law wives.
This indictment was the result of a close partnership between the Municipal Prosecutor’s Office, the U.S. Attorney’s Office, the Anchorage Police Department (APD), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). This case is being handled by Special Assistant U.S. Attorney James Stinson, who is an Anchorage municipal prosecutor. Since 2007, the Municipality of Anchorage has assigned prosecutors to the U.S. Attorney’s Office to work on cases that have direct impact on the safety of Anchorage residents, such as drugs, guns, and violent crime. The Municipal Prosecutor’s Office handled Inga’s underlying domestic violence case, and, upon learning of the firearm case, forwarded it to the U.S. Attorney’s Office for prosecution.
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.
Controller of Minnesota Metal Stamping Company Pleads Guilty to Million Dollar Embezzlement SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of JOHN BURWOOD ROBINSON, 50, for stealing more than $1.1 million from his employer. ROBINSON was charged by felony information July 26, 2017, with one count of mail fraud and one count of filing a false tax return. He pleaded guilty yesterday before Judge Paul A. Magnuson in U.S. District Court in Saint Paul, Minn. A sentencing date has not yet been determined.
According to the defendant’s guilty plea, from 1991 through 2016, ROBINSON was employed by North Central Stamping & Manufacturing, Inc. (“NCSM”), and in 2003, he became NCSM’s controller. As the controller, ROBINSON managed NCSM’s bank accounts, bookkeeping records, and financial reports.
According to the defendant’s guilty plea, ROBINSON devised a fraud scheme to steal money that was paid to NCSM by its clients. ROBINSON opened a bank account in the name of NCSM without the company’s knowledge or authorization. ROBINSON then deposited payments made by NCSM’s customers into the fraudulent bank account he had set up. ROBINSON used the money to pay for his own personal expenses, to fund his hobby of buying and restoring automobiles and automobile parts, and to pay for a storage facility to store the automobiles and parts. In total, ROBINSON stole approximately $1,163,366.97 from NCSM.
According to the defendant’s guilty plea, in addition to his theft, ROBINSON admitted to filing false tax returns by understating his total income for the calendar years 2009 through 2015, in order to lower his tax liability and to avoid detection of his fraud scheme. In total, ROBINSON caused a total tax loss of $291,757.31.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, the Minnesota Department of Commerce Fraud Bureau, and the Blaine Police Department.
This case is being prosecuted by Assistant United States Attorney Surya Saxena.
Defendant Information:
JOHN BURWOOD ROBINSON, 50
Crystal, Minn.
Convicted:
- Mail fraud, 1 count
- Filing a false tax return, 1 count
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Clinton Man Sentenced to 240 Months for Trafficking in “Ice” MethamphetamineRead the Press Release
DAVENPORT, IA – On August 17, 2017, John Allen Abbott, 50, of Clinton, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 240 months in prison for conspiracy to manufacture, distribute, and possess with intent to distribute 50 grams and more of actual methamphetamine and 500 grams and more of mixtures containing methamphetamine, announced United States Attorney Kevin E. VanderSchel. Abbott was ordered to serve five years of supervised release following his imprisonment and pay $100 to the Crime Victims’ Fund.
On May 25, 2016, Abbott was arrested after he and others arranged to have approximately two pounds of highly pure “ice” methamphetamine transported to Iowa from Nevada. On October 26, 2016, Abbott pleaded guilty and admitted that he and others traveled to Las Vegas, Nevada, on multiple occasions to obtain highly pure “ice” methamphetamine for distribution.
The case was investigated by U.S. Drug Enforcement Administration and Iowa Division of Narcotics Enforcement with assistance from Clinton Police Department, Clinton County Sheriff’s Office, Rock Island County Sheriff’s Office, and Camanche (Iowa) Police Department. 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].
Cheektowaga Man Pleads Guilty to Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Raymond Crum, 63, of Cheektowaga, NY, pleaded guilty to possession and receipt of child pornography before U.S. District Judge Lawrence J. Vilardo. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant victimized three underage females, a 12-year-old and two 15-year-olds, that he met online. Crum also communicated with the victims via text and telephone. The defendant and the victims engaged in sexually explicit communications and entered into a dominant/submissive relationship in which Crum was the dominant figure. During their communications, the victims sent the defendant sexually explicit images. Crum was aware that the victim were minors at the time he received the images.
On August 5, 2015, a search warrant was executed at the defendant’s residence in Buffalo. Officers seized two computers and a tablet. A forensic examination revealed child pornographic images and videos of the three minor victims and contained communications between the defendant and the victims. In total, Crum possessed approximately 97 images and 34 videos of child pornography.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in- Charge Kevin Kelly and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda. Assistance was also provided by the Bardstown, Kentucky Police Department.
Sentencing is scheduled for December 6, 2017, at 10:00 a.m. before Judge Vilardo.
Cass County Captain Honored for Leadership, Community ServiceRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that Capt. Denise Davidson of the Cass County, Mo., Sheriff’s Department has received the 2017 Enoch B. Morelock Award.
The Enoch B. Morelock Award is an annual recognition of outstanding moral character, service to law enforcement and service to the community. Davidson was honored on Thursday, Aug. 17, 2017, during the 15th Annual LECC Training Seminar in Springfield, Mo. The prestigious law enforcement award, presented annually by the U.S. Attorney’s Office Law Enforcement Coordinating Committee, is named in honor of Sullivan County Sheriff Enoch B. Morelock, who was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847.
Davidson has 29 years of law enforcement experience, 27 with her current agency. She was the first woman hired to work the road for her agency, noted Larson, and has been a mentor and inspiration to other women in law enforcement inside and out of her agency.
Davidson is a respected member and supervisor in her agency and the community. She has followed her mother’s example working with and supporting victims of domestic and sexual abuse at the women’s facility in her area, serving on the board for several years. She has served on the committee for Relay for Life, most recently as vice chair and chair. During her four-year leadership, they raised over $350,000. She has been an avid supporter and served on numerous committees within her school district.
Davidson has always had a passion for working with victims. As a young deputy, she was called in to assist with the interview of an abducted and sexually abused 19-year-old woman who had escaped her abusers. In 1990, new techniques of interviewing and dealing with victims of sexual assault were unfolding, and Davidson took the initiative to learn these techniques. The victim said of Davidson’s involvement: “The compassion and professionalism showed to me changed my life. The most important words that have ever been spoken to me were uttered by (Davis): ‘I believe you, this is not your fault.’ She allowed me to find justice, to heal and to work as a victim’s advocate to help future victims. Because of her, I was truly free to move out of victimization and into being a survivor. She’s a life changer.”
Enoch B. Morelock Award
Sullivan County Sheriff Enoch B. Morelock was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847. He was appointed the first sheriff of Sullivan County, Mo., in 1845. He was in office a little over two years, but he was known to be an honorable, hardworking man intent on protecting the residents of his community. Sheriff Morelock was shot and killed during a court‑ordered sale of the accused=s property. The accused killer, Patrick McIntry, was charged with 1st Degree Murder but was later acquitted. Within a year Mr. McIntry was found shot to death on the banks of a local river.
The annual Enoch B. Morelock Award recognizes individuals with outstanding moral character, service to law enforcement and to the community outside of law enforcement. Recipients may include officers from local police departments, sheriffs= offices, state agencies, or federal agencies as well as investigators from prosecutors= offices.
Career Bank Robber Sentenced to 151 Months in Federal PrisonRead the Press Release
KALAMAZOO, MICHIGAN — U.S. District Judge Paul L. Maloney sentenced Edward Lucas, 37, of South Haven, Michigan, to 151 months in federal prison, Acting U.S. Attorney Andrew Birge announced today. Judge Maloney also ordered Lucas to serve three years of supervised release following his release from prison and pay a special assessment of $100.
On August 18, 2016, Edward Lucas robbed the Independent Bank of Sand Lake, Michigan. Lucas handed a manila envelope to a teller with these words on it: "This is a Robbery. 100s, 50s, 20s. No die packs." The teller gave Lucas $5,550, and he fled in a silver Chevy Impala. Twenty minutes later, a Kent County Sheriff’s Officer observed Lucas in a vehicle matching the description from the robbery. The officer attempted to stop the Impala, but Lucas led the officer on a high-speed chase, with speeds exceeding 90 mph. During the chase, Lucas ran head-on into an oncoming vehicle, which caused his vehicle to flip and roll several times. Responding officers pulled Lucas from the burning vehicle. Officers extinguished the fire and in the vehicle found the demand note and $5,550 in cash. Lucas previously was convicted of committing two bank robberies in 1999.
Judge Maloney noted that Lucas seriously risked the lives of others in fleeing from the robbery. Judge Maloney also noted Lucas had a high risk of returning to bank robbery someday, given that he had two prior bank robbery convictions in Michigan state courts.
The Kent County Sheriff’s Office, Michigan State Police, and Federal Bureau of Investigation jointly investigated Lucas’s case. Assistant U.S. Attorney Davin M. Reust prosecuted it.
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Another Albuquerque Resident Pleads Guilty to Federal Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 71 of the 104 defendants charged as the result of this investigation have entered guilty pleas and 34 of them have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Today, Albuquerque resident, Alex Villarreal, 35, who was charged as the result of the investigation pled guilty in federal court to violating the federal firearms and drug trafficking laws.
Villarreal was arrested in July 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on May 23, 2016, and distributing methamphetamine on May 25, 2016. At the time, Villarreal was prohibited from possessing firearms or ammunition because he was previously convicted on larceny, conspiracy to commit larceny, possession of marijuana with intent to distribute, and aggravated assault. During today’s change of plea hearing, Villarreal pled guilty to the indictment and admitted selling four firearms to an undercover law enforcement agent on May 23, 2016, and 115 grams of methamphetamine to the agent on May 25, 2016. Villarreal acknowledged knowing that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon. Villarreal remains in custody pending a sentencing hearing, which has yet to be scheduled.
Thirty-three of the defendants who were charged as a result of the ATF investigation have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. The case against Villarreal is being prosecuted by Assistant U.S. Attorney Presiliano Torrez.
Alton Man Pleads Guilty to Possession with Intent to Distribute Cocaine and Crack CocaineRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Eric J. Hightower, 36, of Alton, IL, pleaded guilty on August 15, 2017 to a two-count indictment charging possession with intent to distribute crack cocaine in count one and possession with intent to distribute cocaine in count two.
On count one, Hightower faces up to 40 years of imprisonment and/or fine up to $5,000,000, four years of supervised release, and a $100 special assessment. On count two, Hightower faces up to 20 years of imprisonment and/or a fine up to $1,000,000, three years of supervised release, and a $100 special assessment. Sentencing is scheduled for December 15, 2017.
On August 20, September 5, and December 5, 2016, the Alton Police Department used a confidential informant to purchase user quantities of crack cocaine and cocaine from Hightower, at his residence.
On December 6, 2016, the Alton Police Department obtained a search warrant to search Hightower’s residence. Police seized 126 grams of cocaine and 58 grams of cocaine base, commonly called "crack." Hightower admitted the drugs found by the Alton Police Department were his and did not belong to anyone else. Hightower also admitted that the drugs found in his home were intended for distribution.
Albuquerque Woman Pleads Guilty to Federal Fraud, Identity Theft and Theft of Mail ChargesRead the Press Release
ALBUQUERQUE – Katie Carrillo, 26, of Albuquerque, N.M., pled guilty today in federal court to conspiracy, fraud, identify theft and theft of mail charges.
Carrillo and co-defendant, Ralph Eastman, 48, also of Albuquerque, were charged in a 16-count indictment on Aug. 23, 2016, with conspiracy, ten counts of bank fraud, three counts of aggravated identity theft, and two counts of theft of mail. According to the indictment, the defendants committed the offenses from Dec. 2015 through April 2016, in Bernalillo County, N.M., by stealing mail and packages from cluster mailboxes located in apartment complexes. The mail stolen included checkbooks, checks, ATM cards, PIN numbers and personal identifiers of victims, which the defendants allegedly used to commit further crimes.
During today’s proceedings, Carrillo pled guilty to conspiracy, two counts of bank fraud, two counts of aggravated identity theft and two counts of theft or receipt of stolen mail. Carrillo entered the guilty plea without the benefit of a plea agreement. At sentencing, Carrillo faces a maximum penalty of five years of imprisonment on the conspiracy and theft of mail charges, and a maximum penalty of 30 years on the bank fraud charges. She also faces a mandatory term of two years of imprisonment on the aggravated identity theft charge, which must be served consecutive to any other sentence imposed.
On Aug. 2, 2017, Eastman pled guilty to the charges against him in the indictment, namely, conspiracy, eight counts of bank fraud, and two counts of theft of mail. Eastman also pled guilty to a felony information charging him with aggravated identify theft. In entering the guilty plea, Eastman admitted that from Dec. 2015 through April 2016, he conspired with others to steal mail and packages for the purpose of obtaining financial information and forms of identification. Eastman also admitted that he and others altered checks and used them at local businesses in exchange for goods, services and online transactions. In addition, Eastman admitted that he and others used stolen identifications and personal information to facilitate fraudulent transactions. In his plea agreement, Eastman also acknowledged that he and others stole mail and packages from authorized depositories for the U.S. Postal Service through mailboxes located at an Albuquerque apartment complex on March 9, 2016 and March 12, 2016. Under the terms of his plea agreement, Eastman will be sentenced to 36 months and one day in prison followed by a term of supervised release to be determined by the court.
Sentencing hearings for Carrillo and Eastman have yet to be scheduled.
The U.S. Postal Service, the Albuquerque Police Department and the Sandoval County Sheriff’s Office investigated this case, which is being prosecuted by Assistant U.S. Attorneys Nicholas Jon Ganjei and Paul Mysliwiec.
3rd “Fast Cash Tax” Employee Pleads Guilty to Conspiring to Defraud IRSRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Ashley Walker, 33, of Rochester, NY, pleaded guilty to conspiring to defraud the Internal Revenue Service, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Jason Jimenez owned an income tax return preparation business known as Fast Cash Tax. Jimenez hired Walker and trained her to prepare false tax returns. From January 2012 to April 2014, when Walker withdrew from the conspiracy, Walker and other employees of Fast Cash Tax prepared false tax returns on behalf of numerous clients. The tax returns were falsified to increase the amount of the Earned Income Tax Credit claimed, which yielded larger refunds for the clients than they were entitled to receive. During the period of Walker’s participation, the conspiracy netted approximately $95,180 in fraudulently obtained refunds. Jason Jimenez has been convicted and is awaiting sentencing.
The plea is the result of an investigation by Special Agents with the Internal Revenue Service, under the direction of Special Agent-in-Charge James D. Robnett.
Sentencing is scheduled for December 11, 2017, at 2:00 p.m. before Judge Wolford.
Thursday 17 August 2017
Wooster woman indicted for having methamphetamine and a firearmRead the Press Release
A federal grand jury returned an indictment charging Samantha Foster, 30, of Wooster, with conspiracy to possess and distribute methamphetamine and possession of ammunition by a prohibited person.
Foster was arrested on two separate occasions, first by the Ohio State Patrol and then by Wayne County Sheriff’s Office for possession of methamphetamine, drug paraphernalia, and marijuana. Foster was also in possession of ammunition to a rifle on her second arrest.
The investigations were conducted by the Drug Enforcement Administration, the Medway Drug Enforcement Administration, the Ohio State Patrol and the Wayne County Sheriff’s Office.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant United States Attorney Teresa L. Riley.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wilson City Drug Trafficker Federally ChargedRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court, before United States Magistrate Judge James E. Gates, SHELTON JAMAAL JONES, of Wilson, North Carolina, was charged in a federal Criminal Complaint with one count of possession with intent to distribute heroin.
This investigation is part of the Strategic Heroin Initiative, initiated by the United States Attorney’s Office for the Eastern District of North Carolina in partnership with the Department of Justice's Organized Crime and Drug Enforcement Task Force (OCDETF).
The charge and allegations contained in the Criminal Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the DEA Raleigh Resident Office and the Wilson Police Department.