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3 October 2017
Western Washington Tribes Obtain Significant Grant Funding for Services to Crime Victims and Enhanced Public SafetyRead the Press Release
Eleven Western Washington Tribes and one tribal coalition were awarded more than $8.9 million in federal grants to enhance public safety and assist victims of crime in tribal communities, announced U.S. Attorney Annette L. Hayes. These grants are part of more than $130 million in funding announced by the U.S. Department of Justice today.
“Our Tribal partners work diligently to create safe and just communities, and these grants support that mission,” said U.S. Attorney Annette L. Hayes. “Each of these Tribes submitted detailed proposals on how the available federal resources would be used in their communities. I commend each of the grant recipients for identifying ways in which federal funding can improve life in Indian Country and look forward to continuing to work in partnership with them to ensure justice is served.”
The eleven Tribes receiving grants include:
- $3.2 million to the Puyallup Tribe for a variety of criminal justice initiatives, including programs to combat violence against women and alcohol and substance abuse; programs for tribal youth and children services; and programs to fund community policing and correctional alternatives.
- $969,461 to the Port Gamble S’Klallam tribe for public safety, community policing, and justice systems and programs to combat alcohol and substance abuse.
- $621,458 to the Lower Elwha Klallam Tribe for public safely, community policing, and programs to combat violence against women.
- $560,680 to the Tulalip Tribes for justice systems and to combat alcohol and substance abuse.
- $555,848 to the Squaxin Island Tribe for public safety and community policing.
- $512,616 to the Makah Tribe for public safety and community policing.
- $495,000 to the Swinomish Indian Tribe for Domestic Violence programs.
- $350,000 to the Muckleshoot Indian Tribe for innovative juvenile court programs.
- $349,000 to the Quileute Tribe for tribal youth programs.
- $258,119 to the Skokomish Tribe for justice systems and programs to combat drug and alcohol abuse.
- $109,393 to the Hoh Tribe for justice systems and programs to combat drug and alcohol abuse.
In addition to the tribal grants, the Washington State Native American Coalition Against Domestic Violence was awarded $318,008 to reduce sexual assault on college campuses.
These grants are part of a nationwide program to support public safety in Tribal communities. More than $101 million was awarded to 125 American Indian tribes, Alaska Native villages, tribal consortia, and tribal designees through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a streamlined application for tribal-specific grant programs. Of the $101 million, $47.6 million comes from the Office of Justice Programs (OJP), $34.1 million from the Office on Violence Against Women (OVW), and $19.4 million from the Office of Community Oriented Policing Services (COPS).
The Justice Department’s Office on Violence Against Women (OVW) awarded 101 grants totaling $56.3 million to tribal governments and nonprofit entities to help respond to the crimes of domestic violence, sexual assault, dating violence, stalking, and sex trafficking in Indian country. Of the $56.3 million, $34.1 was awarded through the CTAS application process as noted above, and $22.1 million was awarded through other OVW grant programs and special initiatives.
CTAS grants are designed to enhance law enforcement practices, expand victim services, and sustain crime prevention and intervention efforts. Awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.
Western New York Contractors and Two Owners to Pay More Than $3 Million to Settle False Claims Act AllegationsRead the Press Release
Alden, New York-based contractors, Zoladz Construction Company Inc. (ZCCI), Arsenal Contracting LLC (Arsenal), and Alliance Contracting LLC (Alliance), along with two owners, John Zoladz of Darien, New York, and David Lyons of Grand Island, New York, have agreed to pay the United States more than $3 million to settle allegations that they violated the False Claims Act by improperly obtaining federal set-aside contracts designated for service-disabled veteran-owned (SDVO) small businesses, the Justice Department announced today.
“Contracts are set aside for service-disabled veteran-owned small businesses so to afford veterans with service-connected disabilities the opportunity to participate in federal contracting and gain valuable experience to help them compete for future economic opportunities,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Every time an ineligible contractor knowingly pursues and obtains such set-aside contracts, they are cheating American taxpayers at the expense of service-disabled veterans.”
To qualify as a SDVO small business, a service-disabled veteran must own and control the company. The United States alleged that Zoladz recruited a service-disabled veteran to serve as a figurehead for Arsenal, which purported to be a legitimate SDVO small business but which was, in fact, managed and controlled by Zoladz and Lyons, neither of whom is a service-disabled veteran. The United States alleged that Arsenal was a sham company that had scant employees of its own and instead relied on Alliance and ZCCI employees to function. After receiving numerous SDVO small business contracts, Arsenal is alleged to have subcontracted nearly all of the work under the contracts to Alliance, which was owned by Zoladz and Lyons, and ZCCI, which was owned by Zoladz. Neither Alliance nor ZCCI were eligible to participate in SDVO small business contracting programs. Zoladz and Lyons are alleged to have carried out their scheme by, among other things, making or causing false statements to be made to the U.S. Department of Veterans’ Affairs (VA) regarding Arsenal’s eligibility to participate in the SDVO small business contracting program and the company’s compliance with SDVO small business requirements.
“Detecting and discontinuing fraud, waste, and abuse committed by those who do business with the government remains a core function performed in this Office,” said Acting U.S. Attorney James P. Kennedy, Jr. for the Western District of New York. “That function, however, takes on additional significance when the target of the fraud is a program designed for the benefit of the heroes among us—our disabled veterans. Although this investigation did not uncover sufficient evidence to establish criminal liability by these entities and individuals, the multi-million dollar civil judgment ensures that those involved pay a heavy price for their decision to divert to themselves resources intended for the benefit of those who have made supreme sacrifices on behalf of all.”
“This settlement demonstrates the commitment of the Department of Veterans Affairs, Office of Inspector General, the Department of Justice, and other law enforcement agencies to aggressively pursue individuals and companies that misrepresent themselves as service-disabled veteran-owned small businesses and deny legitimate disabled veterans the opportunity to obtain VA set-aside contracts,” said Inspector General, Michael J. Missal of U.S. Department of Veterans Affairs, Office of Inspector General (OIG). “The VA OIG will continue to work diligently to protect the integrity of this important program, which is designed to aid disabled veterans. I also want to thank the U.S. Attorney’s Office and our law enforcement partners in this effort.”
“The contracting companies and principals allowed greed to corrupt a federal process intended to benefit service-disabled, veteran-owned small businesses,” said Special Agent in Charge Adam S. Cohen of FBI Buffalo Field Office. “The FBI and our partners will continue to identify and investigate companies and individuals who target these types of programs for personal gain.”
The settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The civil lawsuit was filed in the Western District of New York and is captioned United States ex rel. Western New York Foundation for Fair Contracting, Inc. v. Arsenal Contracting, LLC, et al., Case No. 11-CV-0821(S) (W.D.N.Y.). As part of today’s resolution, the whistleblower will receive $450,000.
“This case is yet another example of the tremendous results achieved through the joint efforts of the Small Business Administration (SBA), the Department of Justice, and partner agencies to uncover and forcefully respond to fraud in Federal Government contracting programs, such as the Service Disabled Veteran-Owned Program in this case,” said Christopher M. Pilkerton, General Counsel of the SBA. “Identifying and aggressively pursuing instances of civil fraud by participants in these procurement programs is one of SBA’s top priorities.”
“Providing false statements to gain access to federal contracts set aside for service-disabled veterans denies the government opportunities to meet its abiding commitment to our nation’s veterans,” said Acting SBA Inspector General Hannibal “Mike” Ware. “The SBA’s Office of the Inspector General is committed to bringing those that lie to gain access to SBA’s preferential contracting programs to justice. I want to thank the Department of Justice for its leadership and dedication to serving justice.”
“There is an obvious need and reason for service-disabled, veteran-owned small businesses in the government contracting process,” said Director Frank Robey of the Army Criminal Investigation Command (CID), Major Procurement Fraud Unit. “Special Agents from Army CID will continue to work closely with our law enforcement partners to make every contribution possible to bring persons to justice who violate that process.”
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of New York, the FBI, the VA’s Office of Inspector General, the SBA’s Office of Inspector General, and Army CID.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Vale Man Indicted for Filing a False ClaimRead the Press Release
United States Attorney Randolph J. Seiler announced that a Vale, South Dakota, man was charged in federal district court with False Claim.
Dale Knutson, age 57, was charged on September 19, 2017. He appeared before U.S. Magistrate Judge Daneta Wollmann on September 29, 2017, and pleaded not guilty to the charge.
The maximum penalty upon conviction is 5 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Knutson knowingly filing a false claim with the Farm Service Agency in May 2014. The charge is merely an accusation and Knutson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Department of Agriculture, Office of Inspector General. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Knutson was released pending trial. A trial date has not been set.
United States Files Enforcement Action Against California Company and Company’s Owner to Prevent Distribution of Adulterated Seafood ProductsRead the Press Release
The United States filed a civil complaint against Michel Cordon Bleu Inc. of Los Angeles, California, and its owner and President Michel G. Blanchet to prevent the distribution of adulterated seafood products in violation of federal law, the Department of Justice announced today.
Michel Cordon Bleu Inc. (Michel Cordon Bleu) prepares, processes, packs, holds, and distributes vacuum-packed, ready-to-eat cold and hot smoked fish and fishery products. The complaint, filed in the U.S. District Court for the Central District of California, alleges that Michel Cordon Bleu and Michel G. Blanchet adulterated seafood products by preparing, packing, or holding them under insanitary conditions whereby the seafood may have become contaminated with filth or may have been rendered injurious to health.
The Department filed the complaint at the request of the U.S. Food and Drug Administration (FDA).
“The Department of Justice is committed to ensuring that seafood processors comply with laws designed to protect consumers,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work aggressively with the FDA to ensure that consumers are protected from potentially unsafe food.”
According to the complaint, FDA inspected Michel Cordon Bleu’s facility on numerous occasions, including two times in 2016. The complaint alleges that defendants failed to comply with the seafood Hazard Analysis and Critical Control Point (HACCP) regulations by, among other deficiencies, failing to adequately control the risk of Listeria monocytogenes (L. mono) and Clostridium botulinum (C bot.) toxin formation in their vacuum-packed fish or fishery products.
The seafood HACCP regulations require every fish and fishery product processor to conduct, or have conducted for it, a hazard analysis to determine whether there are food safety hazards that are reasonably likely to occur during the processing of each kind of fish or fishery product that it processes.
According to the complaint, FDA’s analysis of environmental samples collected during its January-February 2016 inspection revealed the presence of L. mono contamination in multiple locations throughout the Michel Cordon Bleu facility. The complaint also alleges that FDA’s analysis of environmental samples collected during its subsequent inspection in July-August 2016 also revealed the presence of L. mono contamination in multiple locations throughout the company’s facility.
According to the complaint, FDA noted deficiencies at each of its two 2016 inspections at the Michel Cordon Bleu facility. As alleged in the complaint, FDA noted that defendants failed to manufacture, package and store foods under conditions and controls necessary to minimize the potential for growth of microorganisms and contamination; failed to monitor sanitation conditions and practices with sufficient frequency to assure conformance with current good manufacturing practices; and failed to take corrective action that ensured affected product was not entered into commerce and the cause of the deviation was corrected.
“When we find contaminants that can harm public health at a food manufacturing facility, we must take action to protect consumers,” said FDA Associate Commissioner for Regulatory Affairs, Melinda K. Plaisier. “When necessary, we will seek legal action to ensure that manufacturers take steps to comply with food safety laws and regulations.”
The government is represented by Trial Attorney Monica Groat of the Civil Division’s Consumer Protection Branch, with the assistance of the U.S. Attorney’s Office for the Central District of California and the Associate Chief Counsel for Enforcement Roselle Oberstein of the FDA, Office of General Counsel, Department of Health and Human Services.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
U.S. Postal Service Manager Sentenced to More Than Eight Years for Directing a Federal Corruption and Drug Distribution SchemeRead the Press Release
A former U.S. Postal Service (USPS) station manager was sentenced on Oct. 2, to 97 months in prison for his role directing a bribery and drug scheme in which USPS workers delivered hundreds of pounds of marijuana to individuals in the District of Columbia in exchange for cash bribes. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement.
Deenvaughn Rowe, 48, of Odenton, Maryland, was sentenced by U.S. District Judge Tanya S. Chutkan. In addition to the term of prison imposed, U.S. District Court Judge Chutkan ordered Rowe to serve four years of supervised release and to forfeit $64,000. During the sentencing Judge Chutkan told Rowe, who had immigrated to the United States from Jamaica, “What you have done has betrayed all this country has given you.” Last month, Judge Chutkan sentenced two of Rowe’s co-conspirators, Kendra Brantley, 32, and Alicia Norman, 39, both of Washington, D.C., to 46 months and 18 months in prison respectively, for using their positions as letter carriers to deliver boxes of marijuana.
According to the evidence presented at trial, Rowe, the then-acting manager of the River Terrace Carrier Annex, used his USPS computer to track packages containing marijuana mailed from the Western United States to the Lamond-Riggs Post Office in Washington, D.C. The packages were typically addressed to fictitious individuals or non-existent addresses. The evidence at trial revealed that once the packages arrived at Lamond-Riggs, Rowe coordinated the delivery of the packages with Lamond-Riggs Letter Carriers Brantley and Norman, among others, by cell phone and text message. Brantley and Norman then delivered the boxes of marijuana on the street to men in expensive cars in exchange for cash bribes.
This case was investigated by the USPS Office of the Inspector General’s Capital Metro Field Office and the Postal Inspection Service’s Washington Division. Trial Attorneys Mark J. Cipolletti, Shamiso Maswoswe, Molly Gaston and Nicholas Connor of the Criminal Division’s Public Integrity Section prosecuted the case.
U.S. Attorney Charges Alabama Deer Breeder for Illegal Transportation of Whitetail DeerRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office for the Northern District of Alabama today charged a licensed Alabama deer breeder and his associate for illegally transporting captive-bred and raised whitetail deer from a facility in Indiana to his deer breeder facility in Alabama. U.S. Attorney Jay E. Town and Alabama’s Wildlife and Freshwater Fisheries Division Chief of Enforcement Michael Weathers announced the charge.
Prosecutors filed a one-count information charging LEWIS H. SKINNER, 56, and his associate FRANKLIN BANKS LODEN, 56, both of Northport, with knowingly transporting and receiving whitetail deer in interstate commerce. The defendants should have known that the wildlife was possessed and transported in violation of the laws and regulations of the State of Alabama and the federal Lacey Act, according to the charge.
In conjunction with the information, prosecutors also filed a plea agreement with Skinner and Loden in the U.S. District Court. According to the plea agreement, Skinner owned and controlled all activities occurring on Skinner Farms, a private deer breeding business in Sumter County, Ala. Skinner had obtained a deer breeder permit from the State of Alabama and knew that Alabama is a “closed border” state that prohibits importing deer.
According to the plea agreement, Skinner surrendered his Alabama Game Breeders License and agreed not to participate in the commercial deer breeder industry in the future. Skinner also agreed to pay a $100,000 fine, which shall be directed to the Lacey Act Reward Fund, and $650,000 in restitution to the State of Alabama.
In November 2016, according to the plea agreement, Skinner arranged for Loden to move six captive-bred whitetail deer covertly from Indiana to Skinner Farms in Alabama. Law enforcement stopped Loden and seized the deer in Tuscaloosa, Ala. Investigators determined that some of these illegally transported deer were lacking the required identification for the Chronic Wasting Disease Herd Certification Program. The deer in question, fawns from a previously certified herd, rendered the farm and other deer disqualified from the program because of the lack of identification. The required identification is usually in the form of a numbered ear tag or tattoo.
CWD affects the central nervous system of deer species, including whitetail deer. The disease attacks the brain of an infected animal causing it to become emaciated, display abnormal behavior, lose bodily functions, and die. CWD is infectious, communicable and 100 percent fatal.
“The illegal transport of deer from outside the State of Alabama by a licensed deer breeder motivated solely by profit places our entire whitetail deer herd at risk of this fatal disease,” Weathers said. “The charge and plea agreement in this case are evidence of the Wildlife and Freshwater Fisheries Division’s steadfast dedication to protecting the wildlife resources of the State of Alabama,” he said.
As noted in the plea agreement, Skinner is submitting all captive whitetail deer held in his deer breeder facility to be tested for the presence of CWD.
The Alabama Department of Conservation and Natural Resource’s Wildlife and Freshwater Fisheries Division investigated the case in cooperation with the U.S. Fish and Wildlife Service Office of Law Enforcement. Assistant U.S. Attorney Henry Cornelius is prosecuting the case.
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Two of Three Defendants Sentenced in Gun Burglary CaseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Chief United States District Judge Kristi K. DuBose sentenced Jabriel Bell and Fortune Hoppins to 46 months and 57 months of prison, respectively, in a gun burglary case. The judge ordered that Bell, 25, and Hoppins, 35, face credit restrictions and pay restitution totaling $22,737. The judge also ordered that each defendant pay a $100 special assessment and undergo three years of supervised release after completing their prison term.
In the early morning hours of May 10, 2017, Bell, Hoppins, and Stanley Young stole approximately fifty firearms from Safford Tire and Hardware, a licensed firearms dealer in Safford, Alabama. The store’s video surveillance system captured the burglary. Law enforcement officials soon identified Bell, Hoppins, and Young as suspects and found several discarded clothing items near the store. On May 11, 2017, law enforcement officials located Bell, who admitted post-Miranda to burglarizing the store with Hoppins and Young. Bell helped officials find twenty-three firearms he left in a bag in the woods near Safford Tire. That same day, law enforcement officials found Hoppins, a convicted felon, in Marion Junction, Alabama in possession of one of the stolen guns. Officials later located Stanley Young, a convicted felon, in the state of New York.
In late May 2017, a federal grand jury for the Southern District of Alabama returned a four-count indictment against Bell, Hoppins, and Young. On July 19, 2017, Bell pleaded guilty to stealing firearms from a licensed firearms business, and Hoppins pleaded guilty to being a felon in possession of firearms. On September 19, 2017, Young pleaded guilty to being a felon in possession of firearms. His sentencing is scheduled for December 22, 2017.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Dallas County Sheriff’s Office, and the Fourth Judicial Drug Task Force in Selma, Alabama investigated the case. Assistant United States Attorney Sinan Kalayoglu prosecuted the case.
Two Wheeling men indicted on firearm chargesRead the Press Release
WHEELING, WEST VIRGINIA – Two Wheeling, West Virginia men were indicted by a federal grand jury of unlawful possession on a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Eban Joseph Keith Beyah, age 45, was indicted on one count of “Unlawful Possession of a Firearm.” Beyah, having previously been convicted of burglary and several drug-related charges in Commons Pleas Court in Cuyahoga County, Ohio, is accused of possessing a 9mm pistol in Ohio County on June 2017.
Charles C. Ansley, Jr., age 37, was indicted on one count of “Unlawful Possession of a Firearm.” Ansley, having previously been convicted of burglary in Commons Pleas Court in Lucas County, Ohio, is accused of possessing a .22 caliber revolver in Ohio County on August 2017.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting both cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department are investigating both cases.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Virginia companies and three individuals indicted on cigarette smuggling chargesRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging three individuals and two Virginia-based companies with unlawful cigarette smuggling, Assistant United States Attorney, Criminal Chief Randolph J. Bernard announced today.
Reba Marcelle Myers, age 60, of Clearbrook, Virginia; Lisa Renee Lindquist, age 52, of Winchester, Virginia; John Barrett Fairchild, age 40, of East Islip, New York; Demcorp. Inc. of Clearbrook, Virginia: and Welltown Group of Winchester, Virginia, are alleged to have conspired to profit from the unlawful sale of contraband cigarettes. The indictment charges that the defendants transported large quantities of cigarettes across state lines for redistribution and sale. The cigarettes were acquired in Virginia, where the tax rate for cigarettes is one of the lowest in the nation, and sold in other states, including New York, which has one of the nation’s highest tax rates. The cigarettes were possessed and transported in West Virginia.
Tobacco retailer Dollar Stretcher, of Winchester, Virginia, which was owned by Demcorp. Inc., owned and operated by Myers, and Welltown Group, owned and operated by Lindquist, was responsible for the acquisition of the contraband. Myers and Demcorp. Inc., along with Lindquist and Welltown Group, are alleged to have purchased millions of dollars worth of cigarettes from various wholesalers in the region, primarily with cash, before reselling them to out of state smugglers for a profit.Each of the five defendants is charged with one count of “Conspiracy to Evade Tobacco Taxes.” Myers, Lindquist, and Fairchild are further charged with one count of “Contraband Cigarettes Trafficking Act.” Each of the defendants faces up to five years in prison and a fine of up to $250,000 on each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Michael D. Stein is prosecuting the case on behalf of the government. The Internal Revenue Service Criminal Investigation, Homeland Security Investigations, the Alcohol and Tobacco Tax and Trade Bureau, and the Frederick County, Virginia Sheriff’s Office led the inquiry.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Police Officers Admit Schemes Involving Jersey City Off-Duty Work AssignmentsRead the Press Release
NEWARK, N.J. – Two Jersey City police officers today admitted fraudulently collecting income for off-duty work they never performed, Acting U.S. Attorney William E. Fitzpatrick announced.
Ehab Abdelaziz, 38, of Clifton, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit bribery. Andrea Fahrenholz, 38, of Clifton, pleaded guilty before Judge Vazquez to a separate information charging her with one count of conspiracy to commit fraud.
According to documents filed in this case and statements made in court:
Private contractors and utility companies sometimes needed the services of off-duty Jersey City police officers for certain projects, including work in Jersey City that could obstruct the flow of traffic. Abdelaziz and Fahrenholz were Jersey City police officers who were eligible to perform off-duty work.
From December 2015 through June 2016, Abdelaziz engaged in a conspiracy in which he made a total of $11,825 in bribe payments to another Jersey City officer who was authorized to assign off-duty work, in exchange for that officer’s official assistance in submitting phony vouchers to Jersey City indicating that Abdelaziz had completed certain off-duty assignments. As a result, Abdelaziz was compensated for work he never performed.
From March 2014 through May 2016, Fahrenholz conspired with a Jersey City officer who was authorized to assign off-duty work. The officer – with Fahrenholz’s knowledge and consent – submitted phony vouchers to Jersey City indicating that Fahrenholz had completed certain off-duty assignments. As a result, Fahrenholz was compensated for work she never performed.
Both officers face a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offenses. Pursuant to their plea agreements, Abdelaziz and Fahrenholz must forfeit $22,449 and $116,346, respectively.
Sentencing for Abdelaziz and Fahrenholz is set for Jan. 3, 2018 and Jan. 25, 2018, respectively.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy A. Gallagher in Newark, with the investigation.
The Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Abdelaziz: Anthony J. Iacullo Esq., Nutley, New Jersey
Fahrenholz: Aidan P. O’Connor Esq., Hackensack, New Jersey
Tidewater Cocaine Dealer Sentenced to 32 Years in PrisonRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 32 years in prison for conspiring to deal more than five kilograms of cocaine and discharging a firearm during the commission of a drug trafficking felony.
Andre Monroe, 33, pleaded guilty on June 12. According to court documents, for over two years Monroe and his co-conspirators trafficked and distributed over 12 kilograms of cocaine from Maryland and North Carolina into the Tidewater area for distribution. In June 2016, while distributing cocaine, Monroe struck a drug purchaser in the face with a loaded Glock pistol. As the victim ran Monroe shot the victim in the leg, fracturing the victim’s femur.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
This case was investigated by the HSI’s High Intensity Drug Trafficking Area (HIDTA) Task Force with the assistance of officers from the Hampton Police Division. Special Assistant U.S. Attorneys Amy E. Cross and Francesca Liquori prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-11.
Three New York Men Charges in Bank Fraud SchemeRead the Press Release
JOHNSTOWN, Pa. – Three New York residents were indicted by a federal grand jury in Johnstown on charges of conspiracy, identity theft and false statements to a bank, Acting United States Attorney Soo C. Song announced today.
The three-count indictment named as defendants Anthony T. Sass, 26, of New York, NY; Nathaniel C. Graham, 25, of Bronx, NY; and Jacob Gunther, 41, Brooklyn, NY.
According to the indictment presented to the court, from Mar. 21 to Mar. 28, 2017, Sass, Graham and Gunther conspired to commit bank fraud; on Mar. 22, 2017, Sass and Gunther committed aggravated identity theft; and on Mar. 25, 2017, Sass and Gunther made false statements to a bank in connection with a loan application.
The law provides for a maximum total sentence for each Anthony T. Sass and Jacob Gunther of 62 years in prison, a fine of $2,250,000, or both, and for Nathaniel C. Graham of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney John J. Valkovci, Jr. is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Sass, Graham and Gunther.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
The U.S. Attorney’s Office is now able to receive calls via its usual telephone number on St. Thomas: (340) 774-5757Read the Press Release
The U.S. Attorney’s Office is now able to receive calls via its usual telephone number on St. Thomas: (340) 774-5757. Until further notice, please use this number to call the St. Croix office as well.
Syracuse Area Medical Practice to Pay Nearly $2 Million to Resolve False Claims Act ExposureRead the Press Release
SYRACUSE, NEW YORK – New York Anesthesiology Medical Specialties, P.C. d/b/a New York Spine and Wellness Center (New York Spine & Wellness) agreed today to pay $1,941,850.29 to resolve claims that it improperly billed for moderate sedation services, announced Acting United States Attorney Grant C. Jaquith and New York State Attorney General Eric T. Schneiderman.
New York Spine & Wellness is a medical practice focusing on pain management, and spine and back procedures, with locations in the Syracuse, New York area. During certain procedures, New York Spine & Wellness physicians placed patients under moderate sedation. Moderate sedation produces a state where the patient retains the ability to respond to verbal direction and remains capable of maintaining their airway without assistance. Generally, the administration of moderate sedation reduces pain and anxiety in patients who undergo therapeutic and diagnostic procedures by reducing their perception of pain and/or fear.
The American Medical Association released guidance on the billing requirements for moderate sedation services in October 2011 to clarify that the service is billable only when the physician spends at least 16 minutes face-to-face with the patient. The Medicare Administrative Contractor for New York that processes providers’ claims confirmed the 16-minute rule in February 2012 in an explanatory article released to its listserv and also maintained on its website for a period of approximately one year. New York Spine & Wellness routinely billed for moderate sedation services when its physicians spent less than the required 16 minutes with the patient. These moderate sedation claims were submitted in connection with claims for underlying therapeutic and/or diagnostic services for which New York Spine & Wellness also billed and was paid. Although New York Spine & Wellness utilized the services of an independent billing company, New York Spine & Wellness retained the contractual obligation to code its services accurately.
In or about January 2015, a private insurance company rejected two of New York Spine & Wellness’s claims for moderate sedation services because, as described by New York Spine & Wellness’s billing company, the “Medicare 16 minute span rule to bill [the] code” was not satisfied. In mid-June 2015, the same private insurance company performed an audit and rejected New York Spine & Wellness’s claims for moderate sedation services where the documentation did not support that the procedure lasted more than 16 minutes. The billing company advised New York Spine & Wellness to review the audit findings concerning moderate sedation services. New York Spine & Wellness continued to bill for moderate sedation services after mid-June 2015 without the required 16 minutes of face-to-face time. The improper billing stopped after New York Spine & Wellness was contacted by the United States Attorney’s Office for the Northern District of New York in connection with this investigation.
Acting United States Attorney Grant C. Jaquith said: “We remain committed to holding healthcare providers to account when they submit false claims. Providers should have policies and procedures in place to ensure that they are familiar with applicable billing requirements before submitting claims. Although New York Spine & Wellness is being held responsible for its conduct, we appreciate that it resolved this matter outside litigation and worked cooperatively through the investigation.”
“New York Spine and Wellness Center, like all health care providers, must be held to a high standard of ethical behavior,” said Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (“HHS-OIG”). “HHS-OIG will continue to ensure that providers that bill federal health care programs do so in an honest manner.”
“Today’s agreement represents a win for New Yorkers, ensuring that over $660,000 will be returned to the New York Medicaid Program and that the provider does not improperly bill Medicaid for this service in the future,” said Attorney General Schneiderman. “I’m proud of the federal and state collaboration involved in this investigation as we work to protect New York’s taxpayers, and appreciate the provider’s cooperation.”
The investigation and settlement were the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, the Defense Criminal Investigative Service, the Department of Health and Human Services Office of Inspector General, and the New York State Attorney General’s Office. The United States was represented by Assistant U.S. Attorney Michael D. Gadarian, and the State of New York was represented by Special Assistant Attorney General Paul R. Berry.
Substitute Teacher Pleads Guilty to Receiving Child PornographyRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of receipt of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
Nicholas James Gaworski, age 26, of Clinton, Pennsylvania, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, in December 2016, Gaworski, a substitute teacher, received videos and images containing material depicting the sexual exploitation of minors.
Judge Schwab scheduled sentencing for February 7, 2018 at 9 a.m. the law provides for a maximum total sentence of 30 years in prison, a fine of $500,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and the Allegheny County Police Department conducted the investigation that led to the prosecution of Gaworski.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Steubenville, Ohio man indicted on firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Steubenville, Ohio man was indicted by a federal grand jury of unlawful possession on a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Thomas Bennett, age 41, was indicted on one count of “Unlawful Possession of a Firearm.” Bennet, having previously been convicted of drug possession in Commons Pleas Court in Jefferson County, Ohio in 2017, is accused of possessing a 9mm pistol in Ohio County on August 12, 2017.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department are investigating.An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Second Young Melph Mafia Gang Member Sentenced to Life in Prison Following Convictions on Rico, Gun, Drug, and Murder ChargesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JAWAN FORTIA, a/k/a “Tittie” and “Wine,” age 24, of New Orleans, was sentenced today after having previously been found guilty of violating the Racketeer Influenced Corrupt Organization Act “RICO” as well as drug conspiracy, firearms conspiracy, and murder charges. U.S. District Judge Kurt D. Engelhardt sentenced FORTIA to serve life in prison.
In June of 2017, FORTIA, DEDRICK KEELEN, LIONEL ALLEN, BRYAN SCOTT and DELWIN MCLAREN were convicted following a 7-day trial. According to evidence presented at trial, FORTIA was a member of the “Young Melph Mafia” gang, also referred to as “YMM.” The YMM gang was initially formed in or about 2005 and continued to exist through 2014. During the course of the federal investigation into the gang, agents learned that the defendants controlled an area of Central City New Orleans along Martin Luther King Boulevard near the former Melpomene Housing Development. The gang, which started when the members were in their early teens, participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court in 2014. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
The jury found FORTIA guilty of conspiracy to commit RICO violations, conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine and a quantity of marijuana, conspiracy to possess firearms during and in relation to crimes of violence and drug trafficking crimes, assault with a dangerous weapon and one murder. Specifically, FORTIA was convicted of participating in the drive-by shooting death of Vennie “Funk” Smith that occurred on April 22, 2012, on Martin Luther King Boulevard.
FORTIA was one of eleven defendants originally charged in August of 2014 in a superseding indictment involving gun and drug conspiracies. Five YMM defendants pled guilty to the conspiracy charges and were sentenced. JACOBI “CO” BOYD was sentenced to 480 months of incarceration; ALFRED “AL” COBBINS was sentenced to 252 months of incarceration; SHAWN “GUNNER” GRACIN was sentenced to 270 months of incarceration; RUBEN “RUE” GEIGER was sentenced to 220 months of incarceration; DARIUS “D-MAN” WILLIAMS was sentenced to 156 months of incarceration; and DEONTRE “SOULJA” HILLS was sentenced to 96 months of incarceration. In August of 2015, federal RICO and murder charges were added against the remaining defendants in a second superseding indictment. JEFFREY WILSON pled guilty to only drug charges and was sentenced to 180 months of incarceration. DEDRICK KEELEN was sentenced to life plus 10 years last week after being convicted of multiple counts at trial. LIONEL ALLEN, BRYAN SCOTT, and DELWIN MCLAREN, who went to trial with FORTIA, are awaiting sentencing.
“The life sentence that was handed down today is another victory in the battle against violent crime for ATF, our law enforcement partners, and more importantly, the citizens of New Orleans,” said ATF Special Agent in Charge Dana Nichols.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Edward Rivera, Nolan Paige, and Nicholas Moses were in charge of the prosecution.
Scottsdale Resident Sentenced to 24 Months for Investment FraudRead the Press Release
PHOENIX – Yesterday, Bart James Ellis, 44, of Scottsdale, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 24 months in prison and ordered to pay more than $900,000 in restitution. Ellis had previously pleaded guilty to money laundering.
“Investment fraud is especially problematic when criminals target retirees. The United States Attorney’s Office takes this kind of criminal conduct very seriously and will continue to aggressively prosecute financial frauds,” stated Acting U.S. Attorney Elizabeth A. Strange.
“The defendant misled his clients and stole their hard earned money,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr. “IRS-CI will continue to protect the public by investigating individuals who defraud their investor clients.”
From 2012 through 2015, Ellis, a former financial advisor, solicited more than $1.1 million from former clients, several of whom were elderly, by claiming that the funds would be used to purchase low-risk investments, but instead he used approximately $400,000 on personal expenses and lost approximately $700,000 on risky stock trades in his online brokerage account. Ellis also attempted to conceal his fraudulent scheme by falsifying investment statements.
The investigation of this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by Mark S. Kokanovich, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-00299-DLR
RELEASE NUMBER: 2017-096_Ellis
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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.
Sandoval County Man Pleads Guilty to Federal Conspiracy and Commercial Robbery ChargesRead the Press Release
ALBUQUERQUE – Cruz Abeita, 27, of Algodones, N.M., pled guilty today in federal court in Albuquerque, N.M., to conspiracy and violating the Hobbs Act. The charges arise out of the Dec. 30, 2016, robbery of the Dancing Eagle Travel Center in Cibola County, N.M. Under the terms of his plea agreement, Abeita will be sentenced within the range of 84 to 120 months in prison followed by a term of supervised release to be determined by the court.
Abeita was arrested in Feb. 2017, on an indictment charging him with being a felon in possession of a firearm on Feb. 4, 2016, in Cibola County. According to the indictment, Abeita was prohibited from possessing firearms or ammunition because he was previously convicted of false imprisonment.
During today’s proceedings, Abeita pled guilty to a felony information charging him with conspiracy and violating the Hobbs Act by robbing a business engaged in interstate commerce. In entering the guilty plea, Abeita admitted that on Dec. 30, 2016, he entered the Dancing Eagle Travel Center in Cibola County, with an associate and demanded that the cashier give him money from the cash register, and threatened the cashier with an Airsoft replica pistol that appeared to be a real firearm. Abeita remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA’s Office of Justice Services, and the Laguna Police Department. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
San Jose Cleric Sentenced to Three Years in Prison for Bank Fraud and Tax EvasionRead the Press Release
SAN JOSE – San Jose cleric Hien Minh Nguyen was sentenced today to 36 months in prison for bank fraud and tax evasion announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Beth Labson Freeman, U.S. District Judge, following Nguyen’s March 21, 2017, conviction on bank fraud charges, and August 9, 2016, guilty plea in which he admitted to committing tax evasion.
According to court filings and the evidence from trial, Nguyen, 57, is a priest for the Diocese of San Jose (the Diocese), and served as a pastor of St. Patrick’s Church (St. Patrick’s), and the director of the Vietnamese Catholic Center, also known as the Trung Tam Cong Giao (VCC). As a priest in the Diocese, Nguyen received cash donations for St. Patrick’s and the VCC from parishioners, some of which he stole. Nguyen also signed checks drawn on VCC’s bank accounts to pay his own personal expenses, and deposited checks made payable to the VCC into his own personal bank account. Judge Freeman determined that Nguyen used this method to steal a total of at least $1,449,365 from the Diocese between 2005 and 2011.
On December 1, 2015, a federal grand jury issued a superseding indictment charging Nguyen with fourteen counts of bank fraud, in violation of both 18 U.S.C. §§ 1344(1) and 1344(2), and four counts of tax evasion, in violation of 26 U.S.C. § 7201. He pleaded guilty to the tax evasion charges on August 9, 2016. After a bench trial, the Court convicted Nguyen on all fourteen counts of bank fraud on March 21, 2017.
In addition to the prison term, Judge Freeman also ordered Nguyen to pay $1,883,883 in restitution, including $1,449,365 to the Diocese of San Jose, and $434,518 to the IRS. In addition, Judge Freeman also ordered Nguyen to serve three years of supervised release. Judge Freeman ordered the defendant to surrender on or before January 5, 2018, to begin serving his sentence.
Assistant U.S. Attorneys Michael G. Pitman and Thomas Moore are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Salvadoran National Pleads Guilty to Illegal Reentry after DeportationRead the Press Release
BOSTON - A Salvadoran national pleaded guilty today in federal court in Boston to an immigration crime.
Amilcar Menjivar Umana, 38, pleaded guilty to one count of illegal reentry after deportation. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Jan. 3, 2018.
Menjivar Umana was previously deported on Oct. 25, 2013, Jan. 7, 2014, and March 20, 2014. On May 12, 2017, law enforcement encountered Menjivar Umana and determined him to be illegally present in the United States.
Menjivar Umana faces a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
Rosebud Man Sentenced for Assaulting, Resisting, and Impeding a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on October 2, 2017, by U.S. District Judge Roberto A. Lange.
Justin Fast Horse, age 21, was sentenced to 9 months in custody followed by 2 years of supervised release. Fast Horse was also ordered to pay restitution in the amount of $6,883.99, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Fast Horse was indicted by a federal grand jury on March 15, 2017. He pled guilty on July 6, 2017.
The conviction stemmed from an incident that occurred on the evening of March 3, 2017, near Okreek, South Dakota. Fast Horse was driving a pickup with two other men, one of whom was the owner of the pickup. At one point, the other two men exited the vehicle, and Fast Horse drove away. The vehicle was then reported stolen. The vehicle was spotted a short time later in Mission, by a Rosebud Sioux Tribe police officer, who attempted to initiate a traffic stop. Fast Horse refused to stop and led police on a high-speed chase in and around Mission. After driving over a spike strip and running into a parked vehicle, Fast Horse backed the pickup into the front end of a patrol vehicle. Fast Horse, who was intoxicated, was subsequently arrested, at which time he spat at one of the police officers.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Fast Horse was immediately turned over to the custody of the U.S. Marshals Service.
Raynham Woman Sentenced for Role in Taunton Heroin RingRead the Press Release
BOSTON – A Raynham woman was sentenced today in federal court in Boston for her role in a Taunton-based heroin trafficking operation.
Kayla Wentworth, 26, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to time served (approximately five months in prison) and 42 months of supervised release, with the first six months to be served in home detention. The sentence is due, in part, to Wentworth’s successful completion of the Court’s RISE Program, during which she completed drug treatment and followed rigorous conditions of supervision designed to insure that she maintained employment, properly cared for herself and her family, and received appropriate mental health and drug treatment counseling. In June 2016, Wentworth pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute heroin.
After a lengthy investigation, Wentworth and 11 co-conspirators were arrested and charged in July 2015 for their roles in a drug trafficking organization led by Eddyberto Mejia Ramos that sold heroin throughout the Taunton area. Mejia Ramos purchased large quantities of heroin from several wholesale suppliers, and then he and his mid-level associates distributed the heroin to lower level distributors and customers, including Wentworth.
Eleven of the defendants have been sentenced, including Wentworth and Mejia Ramos, who was sentenced in August 2016 to 90 months in prison. The final defendant, Kerem Mendez-Luz, is scheduled to be sentenced on Oct. 4, 2017.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Taunton Police Chief Edward J. Walsh; and Bristol County District Attorney Thomas M. Quinn made the announcement. Assistant U.S. Attorney Ted Heinrich of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Rapper from Kansas City, Kan.Sentenced for Drug TraffickingRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man who styled himself on the internet as rapper C-Los El Gran was sentenced Tuesday to 168 months in federal prison for his role in a $4 million drug trafficking conspiracy, U.S. Attorney Tom Beall said.
Carlos Sierra, 30, Kansas City, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, he admitted he was a member of a drug trafficking operation headed by his half-brother and co-defendant, Edwin Pacheco. They distributed methamphetamine in the Kansas City metro area.
Investigators used confidential informants and electronic surveillance to identify Sierra and to monitor his conversations with Pacheco, during which they talked about problems they faced processing drugs for distribution and their plans to increase their profit margins. Sierra was carrying a Ruger .380 handgun when he was arrested in Kansas City, Kan.
Co-defendant Pacheco is awaiting sentencing.
Beall commended the Drug Enforcement Administration and Assistant U.S. Attorney Trent Krug for their work on the case.
Providence Resident Admits to Arranging for Hundreds of Shipments of Cocaine from Puerto RicoRead the Press Release
PROVIDENCE – William Gonzalez, 50, of Providence, pleaded guilty in federal court in Providence today to criminal charges related to his participation in a conspiracy to ship more than 200 packages containing significant quantities of cocaine from Puerto Rico to Rhode Island.
Appearing before U.S. District Court Judge John J. McConnell, Jr, Gonzalez pleaded guilty to conspiracy to possess one or more kilograms of cocaine with the intent to distribute and possession of one or more kilograms of cocaine with the intent to distribute.
William Gonzalez’s guilty plea is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
At the time of his guilty plea, Gonzalez admitted to the Court that beginning in January 2016, he traveled repeatedly to Puerto Rico for the purpose of purchasing large quantities of cocaine and arranging for the drugs to be shipped via the U.S. Postal Service to various addresses in Rhode Island. Gonzalez admitted to participating in a conspiracy in which he was responsible for at least 203 packages containing a minimum of 300 grams each being shipped from Puerto Rico to Rhode Island, for a total of 60,900 grams.
On August 31, 2016, Gonzalez was arrested by Rhode Island State Police and ordered detained at the Adult Correctional Institution. Appearing in federal court today, Gonzalez admitted to the Court that while incarcerated, he continued to direct other members of the conspiracy to continue to purchase cocaine in Puerto Rico and to mail the cocaine back to Rhode Island.
According to a plea agreement filed in this matter and accepted by the Court, at sentencing on December 20, 2017, the government and the defendant will recommend the Court impose a term of 72 months in federal prison. The federal prison sentence is to be served consecutive to a sentence of 25 years, 12 to serve imposed in Rhode Island state court on August 31, 2016, in an unrelated case. In that case, Gonzalez pleaded nolo to possession of cocaine with the intent to deliver.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the Rhode Island State Police and the U.S. Postal Inspection Service in Providence.
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Philip Man Sentenced for Attempted Possession of Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Philip, South Dakota, man convicted of Attempted Possession of Child Pornography was sentenced on October 2, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Ryan Lloyd Kammerer, age 27, was sentenced to 2 years of probation and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Kammerer was one of ten men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2016 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls or boys obtained through the Internet. The conviction stemmed from Kammerer communicating with someone he believed to be a minor for the purpose of engaging in sexual acts.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Operator of Temporary Employment Agency Pleads Guilty to Tax Crimes and Insurance FraudRead the Press Release
BOSTON – A Swansea resident pleaded guilty yesterday in federal court in Boston in connection with a long-running, off-the-books payroll scheme through which her temporary employment agency evaded federal employment taxes and workers’ compensation insurance premiums.
Souleang Kane, 48, pleaded guilty to 18 counts of willful failure to collect and pay over taxes to the Internal Revenue Service (IRS) and five counts of mail fraud in connection with her evasion of workers’ compensation insurance premiums. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Jan. 9, 2018.
From 2010 to 2015, Kane operated a series of temporary employment agencies under the names Expert Staffing, Affordable Staffing and M&K Temp Inc., which provided labor for Massachusetts companies in agricultural industries. Kane failed to report to the IRS approximately $4.3 million that her agencies paid in employee wages. She thereby avoided collecting and paying both the taxes required to be withheld from employee wages and the matching taxes required to be paid by the employer. As a result, Kane evaded payment of more than $1.3 million in federal taxes.
Kane also grossly understated her business’ payroll in dealings with her workers’ compensation insurance providers. As a result, her workers’ compensation insurance premiums were fraudulently reduced by more than $100,000 between 2010 and 2015.
Each count of failure to collect and pay over federal taxes provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Each count of mail fraud provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by the federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau, made the announcement. Assistant U.S. Attorney Victor A. Wild of Weinreb’s Economic Crimes Unit prosecuted the case.
Oakland Resident Sentenced to over Six Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
OAKLAND – Bryan Escalante was sentenced to 72 months’ imprisonment today after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down by the Honorable Jeffrey S. White, United States District Judge.
On July 25, 2017, Escalante, 23, of Pinole, pleaded guilty without a written plea agreement to one count of being a felon in possession of a firearm. According to documents filed in the case, Escalante posted photographs and videos of himself on his Instagram account possessing and shooting firearms at a shooting range. In addition, Escalante admitted he previously was convicted of a felony and was therefore not permitted to possess or own a firearm. On February 9, 2017, a federal grand jury indicted Escalante, charging him with one count of being a felon in possession of a firearm. Pursuant to his guilty plea, Escalante pleaded guilty to the charge.
In sentencing Escalante, Judge White stated he was applying enhancements because the defendant was in possession of multiple firearms and because he possessed a firearm with an obliterated serial number. Further, in addition to the prison term, Judge White sentenced Escalante to a three-year period of supervised release that will commence after he completes his prison sentence. Judge White also ordered Escalante to refrain from having contact with members of the Sureño gang, or any other gang, as a condition of his supervised release. The defendant was remanded to federal custody and will begin serving his sentence immediately.
The prosecution is the result of an investigation by the ATF.
Oakland Resident Sentenced to over Seven Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
OAKLAND – Antwon Graham was sentenced to 92 months’ imprisonment after pleading guilty to being a felon in possession of a firearm and for various violations of the conditions of his supervised release, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down today by the Honorable Jeffrey S. White, United States District Judge.
On May 30, 2017, Graham, 28, of Oakland, pleaded guilty to one count of being a felon in possession of a firearm. Graham was arrested by Oakland Police Department Officers on December 7, 2016. As part of his plea agreement, Graham admitted that on that date he had a loaded semi-automatic handgun in his waistband and a 31-round capacity magazine in his pocket. In addition, Graham admitted that two months earlier, on October 12, 2016, he was approached by Burlingame Police Department officers when he was at a go cart company in Burlingame. Graham acknowledged that on that occasion, he was in possession of two loaded pistols he was carrying in two backpacks. Graham abandoned the backpacks and fled the scene, allowing the police officers to recover the backpacks and the firearms. On January 31, 2017, a federal grand jury indicted Graham, charging him with two counts of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). Pursuant to his plea agreement, Graham pleaded guilty to one count.
In addition to the facts underlying the felon in possession charge, as part of his plea agreement, Graham admitted he committed several violations of the conditions of his supervised release resulting from a previous case. Specifically, Graham admitted that he possessed firearms on December 7 and October 12, 2016; that he used a fraudulent credit card on September 3, 2016; that he associated with persons he knew were felons on October 12, 2016; and that he failed to report within 72 hours after October 12, 2016, that he had been questioned by law enforcement officers.
Judge White sentenced Graham to 80 months of imprisonment for one count of being a felon in possession of a firearm and sentenced Graham to an additional 12 months of imprisonment for the supervised release violations. In addition to the prison term, Judge White imposed a three-year period of supervised release that will commence after Graham completes his prison sentence. The conditions of his supervised release include a condition that prohibits Graham from associating with members of the Ghost Town criminal street gang. The defendant was remanded to federal custody and will begin serving his sentence immediately.
Assistant U.S. Attorney Scott Joiner is prosecuting the case with assistance from Lance Libatique. The prosecution is the result of investigations by the FBI, ATF, Oakland Police Department, and Burlingame Police Department.
Nurse Imposter Sent to Prison for Health Care FraudRead the Press Release
VICTORIA, Texas – A 43-year-old former resident of Goliad has been ordered to prison after she admitted to repeatedly posing as a nurse, announced acting U.S. Attorney Abe Martinez. Leticia Gallarzo pleaded guilty on July 6, 2017, to five counts of making false statements relating to health care.
Today, U.S. District Judge John D. Rainey, who accepted the guilty plea, handed Gallarzo a 14-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay restitution totaling more than $34,000. In handing down the sentence, Judge Rainey noted that upwardly departing from the sentencing guidelines was appropriate in this case given the nature and circumstances of the offense and the Gallarzo’s history and characteristics.
Gallarzo has no medical training, but obtained employment as a registered nurse at two hospitals and three nursing homes in five different Texas cities over a seven-month period. As each employer discovered the deception, Garza would leave the facility and immediately begin seeking work at a medical facility in another city.
At the time of her plea, Gallarzo admitted she had knowingly lied about being a registered nurse on five occasions in order to secure employment for which she was not qualified.
She will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and the Texas Attorney General’s Office - Medicaid Fraud Control Unit conducted the investigation with the assistance of police departments in Goliad and Victoria. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
North Royalton man sentenced to prison for tax fraudRead the Press Release
A North Royalton man was sentenced to jail for fraudulently claiming more than $133,000 in tax refunds to which he was not entitled, said U.S. Attorney Justin E. Herdman and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation.
Amin Mohammad, 45, was sentenced to five months incarceration and five months of house arrested. He was also fined $50,000 and ordered to pay $133,414 in restitution.
Mohammad previously pleaded guilty to two counts of theft of public funds.
Mohammad operated a gas station and other energy-related businesses in the Cleveland area. He incorporated Goojee, Inc. in 2007 and Mejri Oil, Inc. in 2010. Neither company had a specific business purpose and bank accounts for the companies had minimal activity, according to court documents.
Mohammad falsely reported the companies sold a combined 833,495 gallons of kerosene in tax year 2010. He falsely claimed fuel tax credits to which he was not entitled, seeking a $68,240 tax refund on behalf of Goojee and a $65,174 tax refund on behalf of Mejri, according to court documents.
"Today’s sentencing marks the successful end of an investigation that uncovered a fraudulent fuel tax credit scheme,” Korner said. "We want everyone to take advantage of the deductions and credits to which they are entitled by law; however, no one is entitled to defraud the government."
Assistant U.S Attorney Robert J. Patton is prosecuting the case following an investigation by the IRS-CI.
New York Man Pleads Guilty in Sextortion CaseRead the Press Release
A 25-year-old man who coerced sexually explicit photos and videos from a minor and distributed them on the Internet pleaded guilty on Oct. 2, to coercion and enticement of a minor to engage in sexual activity.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney David C. Weiss of the District of Delaware made the announcement.
Justin R. Gulisano of Newark, New York, was charged on March 10, 2016, and pleaded guilty before U.S. District Judge Leonard P. Stark of the District of Delaware.
According to admissions made in connection with the plea agreement, Gulisano met the victim online when the victim was 15 years old. Gulisano began requesting and received sexually explicit images and videos from the victim. Gulisano posted the sexually explicit videos of the victim on a pornography website where they were downloaded, posted, and reposted by other viewers to additional pornographic websites. When the victim refused to make and send additional images and videos, Gulisano responded by threatening the victim on more than one occasion. He threatened to post the victim’s images and videos on the Internet again, he threatened to share the images and videos with the victim’s brother, and he threatened the victim’s life.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Graham Robinson of the District of Delaware prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New Orleans Man Charged with Receipt of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced today that TIM NALL, age 62, of New Orleans, was charged yesterday in a one-count Bill of Information with receipt of images and videos depicting the sexual exploitation of children.
If convicted, NALL faces a mandatory minimum of five years and a maximum term of imprisonment of twenty years, followed by up to a lifetime of supervised release, and a $250,000 fine. NALL can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Acting U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of prosecution.
New Jersey Residents Charged with Conspiring to Traffic HeroinRead the Press Release
PITTSBURGH – Two residents of Paterson, New Jersey, have been indicted by a federal grand jury in Pittsburgh on a charge of violating federal drug laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Jose Aponte, age 47, of Paterson, New Jersey, and Carolyn Spann, age 53, of Paterson, New Jersey.
According to the indictment presented to the court, from 2013 to September 2017, Aponte and Spann conspired to possess with intent to distribute and distribute one kilogram or more of heroin.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $20 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Allegheny County Sheriff’s Office, the Allegheny County Police Department, and the Pittsburgh Bureau of Police. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Navajo Man from Shiprock Sentenced to 78 Months for Federal Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Charley Joe, Jr., 68, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Albuquerque, N.M., to 78 months in prison followed by three years of supervised release for his voluntary manslaughter conviction.
Joe was arrested in Sept. 2016, on a criminal complaint charging him with murder for killing a Navajo man on the Navajo Indian Reservation in San Juan County, N.M., on Sept. 15, 2016. According to the complaint, Joe killed the victim by repeatedly striking him with an ax.
Joe was indicted on Oct. 12, 2016, and was charged with voluntary manslaughter on Sept. 15, 2016, on the Navajo Indian Reservation in San Juan County. On March 23, 2017, Joe pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorneys Elaine Y. Ramirez and Kristopher N. Houghton.
Monterey man pleads guilty to being a felon in possession of a .22 caliber revolverRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that Monterey man pleaded guilty Monday to possessing a revolver after having been convicted of a felony.
Marcus L. Cummings, 58, of Monterey, La., pleaded guilty before U.S. District Judge Dee D. Drell to one count of felon in possession of a firearm. According to the guilty plea, a Louisiana probation agent encountered Cummings on August 25, 2015 at a Monterey gas station. Cummings was on parole for a November 2006 felony conviction. The probation agent asked him if he was in possession of either a controlled substance or a firearm. Possessing either would have been a violation of Cummings’ parole. Cummings said he had a revolver in his vehicle, and they went to his vehicle to retrieve it. The agent found the defendant to be in possession of a .22 caliber Smith and Wesson revolver.
Cummings faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a January 2, 2018 sentencing date.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and Louisiana Probation and Parole conducted the investigation. Assistant U.S. Attorney T. Forrest Phillips is prosecuting the case.
Mexican National Pleads Guilty to Federal Heroin and Cocaine Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Abraham Andres Rios, 37, a Mexican national, pled guilty today in federal court in Albuquerque, N.M., to heroin and cocaine trafficking charges.
Rios and co-defendants Omar Garcia, 34, of Albuquerque, N.M., and Jose Alfredo Martinez-Salas, 37, a Mexican national, were arrested in Sept. 2016, on a criminal complaint charging them with cocaine and heroin trafficking offenses. According to the complaint, federal agents arrested the three defendants after they attempted to distribute approximately 6.1 kilograms of cocaine and a kilogram of heroin to undercover Homeland Security Investigations (HSI) agents.
Rios and his co-defendants subsequently were charged in a four-count indictment on Oct. 12, 2016. The indictment charged Rios and Garcia with conspiracy and possession of cocaine and heroin with intent to distribute, and Martinez-Salas with distribution of cocaine. According to the indictment, the defendants committed the crimes on Sept. 15, 2016, in Bernalillo County, N.M.
During today’s proceedings, Rios pled guilty to Counts 1, 2 and 3 of the indictment charging him with conspiracy and distribution of heroin and cocaine without the benefit of a plea agreement. At sentencing, Rios faces a statutory minimum penalty of five years and a maximum of 40 years in federal prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
On July 27, 2017, Martinez-Salas pled guilty to Count 4 of the indictment charging him with distribution of cocaine. In entering the guilty plea, Martinez-Salas admitted that on Sept. 15, 2016, he distributed approximately 3.2 kilograms of cocaine to others. Martinez-Salas admitted picking up a backpack containing cocaine in Taos, N.M., with the intention of delivering the cocaine to individuals in Albuquerque. Law enforcement officers arrested Martinez-Salas in a restaurant parking lot in northwest Albuquerque after he delivered the cocaine to other individuals. At sentencing, Martinez-Salas faces a statutory mandatory minimum penalty of five years and a maximum of 40 years in federal prison. A sentencing hearing has yet to be scheduled.
Garcia has entered a plea of not guilty to the charges in the indictment. Charges in criminal complaints and indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque offices of HSI and DEA. Assistant U.S. Attorney Alexander M. Uballez is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Man Sent to Prison for Preparing False Income Tax ReturnRead the Press Release
HOUSTON – A local income tax return preparer has been ordered to prison following his conviction of preparing a false U.S. Individual Income Tax Return for a client, announced Acting U.S. Attorney Abe Martinez. Chester Swanson pleaded guilty July 17, 2017.
Today, U.S. District Judge Keith Ellison handed Swanson an 18-month sentence to be followed by one year of supervised release. He was further ordered to pay a $244,817 in restitution.
Swanson admitted in the plea agreement filed in the record of the case that he prepared at least 37 false income tax returns for clients with a resulting intended income tax harm to the United States of more than $244,000. He further admitted the false items he placed on the income tax return underlying his guilty plea included false amounts of unreimbursed medical and dental expenses, false amounts of gifts to charity, false amounts of unreimbursed employee expenses, and false amounts of alleged losses from a sole proprietorship.
Swanson operated his income tax preparation business under the name of Chester’s Mobile Tax Service in which he met clients at various locations in Houston to prepare their income tax returns for them. Swanson admitted he also used the name Hollywood Business SVC Investments in his tax preparation business.
Swanson has agreed to never again prepare income tax returns for others.
Swanson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Lower Brule Man Sentenced for RobberyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man convicted of Robbery was sentenced on October 2, 2017, by U.S. District Judge Roberto A. Lange.
Kyle Flute, a/k/a Kyle Pretty Sounding Flute, age 29, was sentenced to 102 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Restitution has been left open for 45 days.
Flute was indicted by a federal grand jury on March 22, 2016. He pled guilty on July 7, 2017.
The conviction stems from an incident on Friday March 4, 2016, when the victim was closing up the Trading Post in Lower Brule, shortly after 10:00 p.m. She was on the phone with her boyfriend when he heard her scream, some scuffling, and the line go dead. He tried calling her back but was unsuccessful. Her boyfriend called law enforcement, and the Bureau of Indian Affairs and Lyman County Sheriff responded.
When they arrived at the Trading Post, law enforcement found the victim in her car, covered in blood. They also recovered a wooden board with blood on it. The victim was transported to the emergency room at the Chamberlain hospital, and on to Sioux Falls due to her injuries. She suffered a fractured orbital, bleeding on the brain, and staples were required to close the wound to her head. The victim was interviewed and stated she had closed the store, put the cash and checks into a Wells Fargo money bag, and was locking up the store while on the phone with her boyfriend. She walked to her car and was unlocking it, when she was struck from behind with a hard object. She was hit several times and fell to the ground. She tried to kick and push her assailant(s) away. She was able to get in the car, and the suspect(s) fled with the money bag.
Officers followed up on many leads, including the defendant, Kyle Flute. Flute admitted to assaulting the victim by hitting her several times with the wooden board about her head and body. He stated he has a terrible meth problem and just wanted the money for drugs.
“We are seeing an increasing number of drug related crimes, where the assailant commits a violent crime to help feed their drug problem,” said U.S. Attorney Seiler. “We are aggressively prosecuting these cases where violence and drug use go hand in hand. It will be not be tolerated.”
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Flute was immediately turned over to the custody of the U.S. Marshals Service.
Lehigh Acres Man Sentenced to 30 Years for Production of Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced William Lee (38, Lehigh Acres) to 30 years in federal prison for producing child pornography. The Court also ordered him to forfeit his cellphone, which was used to commit the offense.
Lee pleaded guilty on June 14, 2017.
According to court documents, Lee produced a video recording of himself engaged in sexually explicit conduct with a minor. On September 16, 2016, deputies responded to the victim’s residence in Lehigh Acres and made contact with the girl and her mother. The child’s mother provided Lee’s deactivated phone to the deputies.
Pursuant to a search warrant, a subsequent forensic examination of Lee’s deactivated phone revealed two videos, produced on December 23, 2015, and August 30, 2016, that captured Lee engaging in sexual explicit conduct with the girl.
This case was investigated by the Federal Bureau of Investigation’s Child Exploitation Task Force, which includes the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
Lawrence County Man Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
PITTSBURGH – A former resident of Lawrence County, Pennsylvania, has pleaded guilty in federal court to a charge of interstate transportation of a minor for purpose of engaging in unlawful sexual activity, Acting United States Attorney Soo C. Song announced today.
David Michael Monrean, 24, of New Castle, Pennsylvania, pleaded guilty before United States District Judge Mark R. Hornak.
In connection with the guilty plea, from August 14, 2016, to August 16, 2016, Monrean did knowingly and willfully transport or arrange, induce, procure, or facilitate the travel of Minor A, who had not attained the age of 18 years, in interstate commerce, from Pennsylvania to Ohio, with the intent that Minor A would engage in prostitution and other sexual activity for which a person could be charged with a criminal offense, and aided and abetted such conduct.
United States District Judge Mark R. Hornak scheduled sentencing for February 14, 2018 at 9:30 a.m. The law provides for a maximum total sentence of life imprisonment, a fine of $250,000, and a term of supervised release of not more than five years, or any or all. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Grove City Police conducted the investigation that led to the prosecution of Monrean.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Last Member of Brunswick Drug Trafficking Organization SentencedRead the Press Release
BRUNSWICK, GA – Yesterday, the last of eight defendants involved in a Glynn County-area drug trafficking organization was sentenced in federal court. Derrick J. Young, 41, of Atlanta, Georgia was sentenced to 52 months in prison by U.S. District Court Judge Lisa Godbey Wood following his guilty plea to possessing cocaine and marijuana with intent to distribute in violation of federal law. That sentence was ordered to run consecutive to a 24-month prison term earlier imposed by Judge Wood in June for Young’s violation of supervised release stemming from a prior federal conviction.
In addition to Young, the other persons convicted and sentenced as part of this investigation included:
· James Lee Roberts, aka “Bootney,” age 44, Atlanta, Georgia, 88 months in prison;
· Gladys Marie Moran, age 46, Brunswick, Georgia, 57 months in prison;
· Bruce Lenard Polite, aka “Loose Bruce,” age 36, Brunswick, Georgia, 24 months in prison;
· Oscar Cummings, III, age 40, Brunswick, Georgia, 30 months in prison (consecutive to a 33-month term of imprisonment from an earlier revoked term of supervised release);
· Joe Ferdinando Bryant, age 41, aka “Joe Joe,” Brunswick, Georgia, 13 months in prison;
· Donald Eugene Wesley, aka “Duck,” age 57, Brunswick, Georgia, 18 months in prison; and
· Sidney Devore Harrison, age 42, Savannah, Georgia, 18 months in prison.
During a lengthy investigation, law enforcement agents conducted multiple wiretaps to gather evidence sufficient to dismantle the drug organization. Through the wiretap and other investigative steps, agents determined that Young, Roberts, and other conspirators distributed multi-kilogram quantities of cocaine in the Brunswick area. More than two kilograms of cocaine and 17 pounds of marijuana were seized in operations related to this organization between May 15 and August 17, 2016.
United States Attorney R. Brian Tanner said, “Nearly all of the persons indicted in this case were raised in Brunswick or Savannah and exploited their ties to the community to establish a robust drug business. The drug seizures are illustrative of the capabilities of the organization. I commend the perseverance and dedication of members of the investigative team who worked long hours to ensure this successful outcome.”
The convictions in this matter resulted from a joint investigation by agents of the Drug Enforcement Administration, Georgia Bureau of Investigation, Glynn County Sheriff’s Office, Chatham County Sheriff’s Office, and the United States Marshals Service. The investigation was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) program, which is comprised of federal, state, and local law enforcement agencies. The case was prosecuted by Assistant United States Attorney Karl Knoche. The investigation was led by DEA Special Agents Rodney Holloway and James Jaskolka, and DEA Task Force Agents Ryan Alexander and Brian Slate. For additional information, please contact United States Attorney R. Brian Tanner at (912) 652-4422.
Last Defendant Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Alfonso Mercado-Cruz, 32, of Chiapas, Mexico, was sentenced yesterday before U.S. District Judge David C. Godbey to 151 months in federal prison, following his guilty plea in January 2017 to one count of conspiracy to possess with intent to distribute and to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Co-defendants Raul Garibay, 25, Gerardo Galvan, 28, and Fernando Mora-Martinez, 43, also pleaded guilty to their role in the conspiracy and were previously sentenced.
According to plea documents filed in Mercado-Cruz’s case, from January 1, 2016 through May 19, 2016, Mercado-Cruz, along with Galvan, Garibay and Mora-Martinez conspired to possess with intent to distribute 50 grams or more of methamphetamine. The defendants used a trailer house, equipped with only a stove, in Grand Prairie, Texas, to cook and prepare methamphetamine for distribution.
A search of the trailer house revealed approximately 4 kilograms of methamphetamine in liquid, powder, and crystal form in various stages of processing.
The Drug Enforcement Administration, Lewisville Police Department, Grand Prairie Police Department, and the Dallas Police Department investigated the case.
Assistant U.S. Attorney George Leal is in charge of the prosecution.
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Justice Department awards nearly $2 million to combat opioids in Northern OhioRead the Press Release
The Justice Department recently awarded nearly $2 million in grants to the Northern District of Ohio to help combat the opioid epidemic.
In 2016, nearly 60,000 Americans lost their lives to drug overdoses, an increase from the 52,000 overdose deaths the year before. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues. The opioid epidemic, a public health crisis, is also a growing public safety crisis.
“Today, we are facing the deadliest drug crisis in American history,” said Attorney General Jeff Sessions. “These trends are shocking and the numbers tell us a lot– but they aren’t just numbers. They represent moms and dads, brothers and sisters, neighbors and friends. And make no mistake combatting this poison is a top priority for President Trump and his administration, and you can be sure that we are taking action to address it. We are announcing that we will be awarding millions in federal grants to help law enforcement and public health agencies address prescription drug and opioid abuse. This is an urgent problem and we are making it a top priority.”“These dollars will support efforts to make law enforcement more efficient and precise as we try to stem the tide of death and suffering caused by opioids throughout our country, state and region,” said U.S. Attorney Justin E. Herdman. “These grants will help prosecutors and police work more effectively to prosecute drug dealers who kill people while also supporting drug courts which help people get the treatment they need.”
Awardees in the Northern District of Ohio include:
Case Western Reserve University, $975,401 from the National Institute of Justice to study the Cuyahoga County Heroin Involved Death Investigations protocol. The protocol was developed in 2014 for help medical examiners and law enforcement with the collection and preservation of evidence in opioid-involved death incidents. The purpose is to improve the group’s ability to secure faster indictments and more successful manslaughter or federal “death specification” prosecutions.
Cleveland Municipal Court, $400,000 from the Bureau of Justice Affairs for drug court and/or veteran’s treatment court.
Marion Municipal Court, $338,931 from the Bureau of Justice Affairs for drug court and/or veteran’s treatment court.
City of Youngstown, $240,000 from the Bureau of Justice Affairs for drug court and/or veteran’s treatment court.
Additionally, the Justice Department awarded $1 million to the Supreme Court of Ohio to assist leverage information about prescribing practices to identify potential solutions and $399,918 to the State of Ohio Board of Pharmacy to help develop and maintain centralized databases to collect and analyze prescription data.
Justice Department Requires Divestitures in Order for CenturyLink to Proceed with Its Acquisition of Level 3 CommunicationsRead the Press Release
The Department of Justice announced today that it will require CenturyLink, Inc. and Level 3 Communications, Inc. to divest Level 3’s telecommunications networks in Albuquerque, Boise, and Tucson, and to offer long-term leases called indefeasible rights of use (IRUs) for dark fiber along 30 intercity routes in order for the companies to proceed with CenturyLink’s acquisition of Level 3. The deal is valued at approximately $34 billion.
The Department’s Antitrust Division filed a civil antitrust lawsuit yesterday in the U.S. District Court for the District of Columbia to block the proposed acquisition. At the same time, the Department filed a proposed settlement that, if approved by the Court, would resolve the competitive concerns alleged.
“Because of competition between CenturyLink and Level 3, consumers have benefited from lower prices and higher-quality services in local telecommunications services and in the sale of intercity dark fiber,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “These divestitures will ensure that consumers of such services in the affected metropolitan areas and consumers of dark fiber between the city pairs in question will continue to enjoy the benefits of competition.”
According to the department’s complaint, the combined company would have reduced competition for fiber-optic-based telecommunications services in Albuquerque, Boise, and Tucson as well as for the sale of dark fiber along certain intercity routes across the U.S., including routes traversing Alabama, Arizona, California, Colorado, Florida, Georgia, Indiana, Kansas, Louisiana, Missouri, Nevada, New York, North Carolina, Ohio, Oregon, Tennessee, Texas, Utah, and Virginia. Dark fiber is fiber-optic cable with no electronics attached to it. The complaint states that this reduction in competition likely would have led to higher prices, lower quality, and reduced access for consumers.
The proposed settlement requires the parties to divest all assets that support Level 3’s provision of telecommunications services in Albuquerque, Boise, and Tucson to a buyer or buyers to be approved by the United States. The parties must also enter into IRUs for 24 strands of dark fiber on 30 specified routes. Each IRU must have a 25-year term with two optional renewal periods of five years. The dark fiber to be divested must go to a single buyer to be approved by the United States.
The transaction is also subject to review by the Federal Communications Commission (FCC), which is ongoing. The Department coordinated with the FCC throughout its investigation.
CenturyLink, the third largest wireline telecommunications provider in the United States, is the incumbent local exchange carrier (ILEC) in portions of 37 states and is also a global communications, hosting, cloud and IT services company. CenturyLink offers network and data systems management, big data analytics and IT consulting. The company provides broadband, voice, video, data and managed services over a robust 360,000 route-mile global network, including a 265,000 route-mile U.S. fiber network. In 2016, CenturyLink had revenues of approximately $17.5 billion.
Level 3, one of the largest competitive exchange carriers (CLEC) in the United States, is a Fortune 500 company that provides local, national and global communications services to enterprise, government and carrier customers. Level 3’s portfolio of secure, managed solutions includes fiber and infrastructure solutions; IP-based voice and data communications; wide-area Ethernet services; video and content distribution; and data center and cloud-based solutions. Level 3 serves customers in more than 500 markets in over 60 countries across a global services platform, including over a 200,000 route-mile global fiber network. In 2016, Level 3 had revenues of approximately $8.2 billion.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Scott Scheele, Chief, Telecommunications and Media Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7000, Washington D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Justice Department Obtains $150,000 Settlement in Sexual Harassment Lawsuit Against Owner and Manager of Michigan Rental PropertiesRead the Press Release
The Justice Department today announced that Frank D. Tjoelker, an owner and manager of rental properties in and around Grand Rapids, Michigan, will pay $150,000 to resolve allegations that he sexually harassed multiple women who have lived in or inquired about his rental properties. Since January of this year, the Civil Rights Division has filed or settled five cases alleging unlawful sexual harassment of women in housing and recovered over $1 million for victims such harassment.
“No woman should ever have to endure sexual harassment to secure a roof over her head,” said Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division. “Such harassment is unacceptable and illegal, and this Justice Department will continue to vigorously enforce the Fair Housing Act in order to combat this type of discrimination and to obtain relief for its victims.”
“It is illegal to discriminate in housing on the basis of sex, including through such unwelcome and unwanted behavior as alleged in this case,” said Acting U.S. Attorney for Western Michigan Andrew Birge. “Cases like this will always be a priority for my office.”
Under the settlement agreement, Tjoelker will pay $140,000 to compensate ten victims of discrimination already identified by the Justice Department, along with any additional individuals who are determined to be victims through a process established in the settlement agreement. Individuals who believe they may have been victims of housing discrimination by Tjoelker or who have information about this matter can contact the Justice Department by phone at 1-800-896-7743, mailbox number 4, or by e-mail at [email protected]. In addition, Tjoelker must pay $10,000 as a civil penalty to the United States. The settlement agreement also prohibits Tjoelker from engaging in discrimination and requires him to establish a non-discrimination policy and hire an independent manager for his rental properties.
The settlement will resolve a lawsuit, filed today in the U.S. District Court for the Western District of Michigan, alleging that Tjoelker’s unlawful conduct against female tenants and applicants at his properties has included making unwelcome sexual comments and advances towards them, engaging in unwanted sexual touching of these women, offering housing benefits in exchange for sex acts, and taking or threatening to take adverse housing actions against women who object to his harassment. Under the terms of the settlement, the parties will jointly move to dismiss the lawsuit after Tjoelker makes the monetary payments, which are due within 30 days.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of prohibited sex discrimination under this law. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination should call the department at 1-800-896-7743, or send an e-mail to [email protected], or contact HUD at 1-800-669-9777 or through HUD’s website at www.hud.gov.
Justice Department Awards More Than $130 Million to Improve Public Safety, Address Violence Against Women and Victim Services for American Indian and Alaska Native PeopleRead the Press Release
Awards Include Over $56.3 Million for Responses to Violence Against Women in Indian Country
Associate Attorney General Rachel Brand today announced more than $130 million in Department of Justice grants to combat violence against women, improve public safety, serve victims of crime, and support youth programs in American Indian and Alaska Native communities.
“Supporting our tribal partners as they work to protect their communities remains fundamental to our mission at the Department of Justice,” said Brand. “These awards stand as a clear expression of our support for Native American women and tribal self-determination and reflect the vital role we believe American Indian tribes and Alaska Native villages play in ensuring the safety of all our citizens.”
Associate Attorney General Brand, the Department’s third ranking official, will make the announcement as part of her remarks during the Department’s participation in the 12th Annual Government-to-Government Violence Against Women Tribal Consultation on the reservation of the Fort McDowell Yavapai Nation in Fountain Hills, Arizona.
On Wednesday, Associate Attorney General Brand will visit a domestic violence shelter in the Gila River Indian Community. Gila River will receive two grant awards this year: one that supports the tribe’s implementation of special domestic violence jurisdiction under the Violence Against Women Reauthorization Act and one to enhance the safety of rural victims of sexual assault, domestic violence, dating violence and stalking.
More than $101 million was awarded to 125 American Indian tribes, Alaska Native villages, tribal consortia and tribal designees through the Department’s Coordinated Tribal Assistance Solicitation (CTAS), a streamlined application for tribal-specific grant programs. Of the $101 million, $47.6 million comes from the Office of Justice Programs (OJP), $34.1 million from the Office on Violence Against Women (OVW), and $19.4 million from the Office of Community Oriented Policing Services (COPS).
The Justice Department’s Office on Violence Against Women (OVW) awarded 101 grants totaling $56.3 million to tribal governments and nonprofit entities to help respond to the crimes of domestic violence, sexual assault, dating violence, stalking and sex trafficking in Indian country. Of the $56.3 million, $34.1 was awarded through the CTAS application process as noted above and $22.1 million was awarded through other OVW grant programs and special initiatives.
CTAS grants are designed to enhance law enforcement practices, expand victim services and sustain crime prevention and intervention efforts. Awards cover nine purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; and tribal youth programs.
American Indians and Alaska Natives experience disproportionate rates of violence and victimization and often encounter significant obstacles to culturally relevant services. CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s CTAS awards is available at www.justice.gov/tribal/awards. Additional tribal grant awards announced by the Office on Violence Against Women and other department components are available at: www.justice.gov/ovw/page/file/1000416/download.
Justice Department Announces Initiative to Combat Sexual Harassment in HousingRead the Press Release
The Justice Department today announced a new initiative to combat sexual harassment in housing. The initiative specifically seeks to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. As part of the initiative, the Department will work to identify barriers to reporting sexual harassment to the Department and other enforcement agencies, and will collaborate with local law enforcement, legal services providers, and public housing authorities to leverage their expertise.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited under this law. The Civil Rights Division plans to launch a pilot of the initiative in two jurisdictions -- Washington, D.C., and western Virginia -- where it is working with legal service providers and local law enforcement to raise awareness about this issue. The Department hopes to expand the effort to other areas of the country in the near future.
The announcement comes on the heels of the Department’s successful resolution of two sexual harassment cases in Kansas City, Kansas, and Grand Rapids, Michigan. Since January of this year, the Civil Rights Division has filed or settled five cases and recovered over $1 million for victims of sexual harassment in housing. In the Kansas City case, the Justice Department recovered $360,000 for 14 female residents and applicants of a housing authority who were subjected to unwanted sexual conduct. The Department’s complaint alleged in part that an employee of the housing authority subjected women to unwanted sexual conduct as a condition for favorable hearing decisions, including asking them sexual questions, showing pornographic pictures and videos, making explicit sexual comments, and exposing himself.
“No woman should be made to feel unsafe in her own home,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division in announcing the initiative. “The Justice Department is committed to vigorously enforcing the Fair Housing Act’s ban on sexual harassment and is looking forward to working closely with state and local partners to combat this problem.”
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination should call the department at 1-844-380-6178, or send an e-mail to [email protected], or contact HUD at 1-800-669-9777.
Johnstown Woman Charged with Distributing Crack CocaineRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The indictment named Sabrina L. Rogers, 34, of Johnstown, Pa.
According to the indictment presented to the court, on July 6, July 10, and July 11, 2017, Rogers distributed less than 28 grams of cocaine base, also known as crack, and on July 12, 2017, Rogers possessed with the intent to distribute less than 28 grams of crack.
The law provides for a maximum sentence of 80 years in prison and a fine of $4,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Rogers.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Inmate Admits Stealing IDs, Filing False Tax ReturnsRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to defraud the government and aggravated identify theft,, Acting United States Attorney Soo C. Song announced today.
James Lamont Johnson, 51, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Johnson engaged in a conspiracy to defraud the United States by submitting false claims for income tax refunds using individuals’ identification information which was unlawfully obtained. Johnson stole the identities of 56 individuals who were clients of the Community of Caring, a non-profit social service agency in Erie, where he had access to the clients’ personal identification information. Johnson utilized TurboTax and filed approximately 71 tax returns, seeking refunds from the IRS of more than $100,000.00. Johnson and his co-conspirator inputted the stolen identity information and used wage information from W-2 forms taken from actual employees of local businesses to perpetrate the fraudulent tax refund scheme. The scheme to defraud successfully obtained more than $60,000.00 in tax refunds. The refunds came in the form of prepaid debit cards and U.S. Treasury checks, which were mailed to addresses where Johnson could access the mail and retrieve the refunds.
Judge Cercone scheduled sentencing for February 26, 2018 at 12:45 p.m. The law provides for a total sentence of 12 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. A mandatory minimum sentence of two years must be imposed for the conviction of aggravated identity theft.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Johnson.