Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
3 October 2017
Houma Man Pleads Guilty and Faces at least 15 Year Mandatory Sentence for Failure to Register as a Convicted Sex Offender and Distribution of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DAVID KLIMENKO, age 29, of Houma, pled guilty today to Failure to Register as a Convicted Sex Offender and Distribution of Child Pornography.
According to court records, KLIMENKO was previously convicted of Sex Offense in the Third Degree (engaging in vaginal intercourse with another if the victim is 14 or 15 years old, and the person performing the act is at least 21 years old), in violation of CR 3-307(a)(5) of the Annotated Code of Maryland, in the Circuit Court for Anne Arundel County, Maryland under Case No. 02-CR-15-547. KLIMENKO's Maryland conviction required him to register as a sex offender and complete Sex Offender Registration Forms (“Registration Form”). If KLIMENKO elected to move from Maryland, he was required to notify Maryland law enforcement, to register with law enforcement in his new state, and complete a Registration Form within three (3) days.
According to law enforcement officers, KLIMENKO moved from Maryland to Louisiana in 2016 and failed to notify law enforcement authorities of his move to Louisiana. Additionally, special agents with the U.S. Department of Homeland Security determined KLIMENKO used his Facebook account to distribute child pornography on the Internet in February 2017.
KLIMENKO is scheduled to be sentenced on January 3, 2018 by United States District Judge Jay C. Zainey.
Due to his prior conviction, KLIMENKO faces a mandatory minimum penalty of 15 years imprisonment up to 40 years, followed by up to a life term of supervised release, and a $250,000.00 fine.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Acting U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Hammond Man Sentenced for Gun ChargeRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DEVONTE WEST, age 21, of Hammond, after previously pleading guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Jay C. Zainey sentenced WEST to 60 months imprisonment, followed by 5 years supervised release, and a $100 special assessment
According to court documents, on February 20, 2017, WEST and his cousin MAURICE LLOYD, JR. were victims of a shooting in front of WEST’S residence after WEST completed a drug transaction. LLOYD was fatally wounded in the shooting.
A search of WEST’S residence revealed approximately two ounces of heroin and multiple firearms. Further investigation led to the recovery of additional heroin that WEST attempted to discard prior to the arrival of law enforcement to his residence after the shooting.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration and the Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Andre’ Jones was in charge of the prosecution.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national charged with an immigration crime pleaded guilty and was sentenced yesterday in federal court in Boston.
Eric Contreras, 29, pleaded guilty to one count of illegal reentry after deportation before U.S. Senior District Court Judge Mark L. Wolf, who sentenced Contreras to two months in prison and two years of supervised release. Contreras will be subject to deportation proceedings upon completion of his sentence.
Contreras was previously deported on May 11, 2016. On June 7, 2017, Contreras was arrested in Waltham on unrelated state charges.
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 Nicholas Soivilien of Weinreb’s Major Crimes Unit prosecuted the case.
Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national charged with an immigration crime pleaded guilty and was sentenced yesterday in federal court in Boston.
Victor Deleon, 37, pleaded guilty to one count of unlawful reentry of a deported alien before U.S. Senior District Court Judge Mark L. Wolf, who sentenced Deleon to time served (approximately three months in prison) and two years of supervised release. Deleon will be subject to deportation proceedings.
Deleon was previously deported on Nov. 4, 2011. Law enforcement officers in Boston encountered Deleon in May 2017 and found him to be illegally present in the United States.
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 Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Guatemalan National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Elmer Noe Esquivel-Mendoza, 34, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Dec. 13, 2017.
Esquivel-Mendoza was previously deported on May 20, 2013. In January 2017, law enforcement officers in Boston encountered Esquivel-Mendoza and determined him to be illegally present in the United States.
The charge provides for a sentence of no greater than two years in prison, one year of supervised release and a fine of $250,000. Esquivel-Mendoza 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 Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Greenville Man Pleads Guilty to Firearm Offense and Obstruction of JusticeRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina announced that on September 11, 2017, in federal court, RICKY JAY BALL, 40, of Greenville, North Carolina, pleaded guilty to possessing a firearm as a convicted felon, altering a military discharge certificate, and two counts of obstruction of justice.
According to the Indictment and information in the public records, on June 3, 2016, officers with Greenville Police Department responded to BALL’s residence where they recovered a loaded firearm in his walk-in closet. BALL had a prior felony for possession of a firearm by felon, and had been recently charged by Greenville Police Department for impersonating a law enforcement officer. BALL was on federal probation at the time of this offense, and a revocation hearing was scheduled for April 2017.
In April 2017, BALL obstructed justice by submitting false hospital records to a United States Magistrate Judge in order to get a continuance of his revocation hearing. On May 17, 2017, during his revocation hearing in federal court, BALL again obstructed justice by presenting false letters from his employer and community service providers, false medical records, and an altered Military Discharge Certificate that misrepresented his reason for discharge from the United States Marine Corps.
On September 11, 2017, the Defendant pleaded guilty to all four counts in federal court. A sentencing hearing will be set at a later date. BALL faces a maximum sentence of 41 years of imprisonment followed by 5 years of supervised release.
The investigation was conducted by the Federal Bureau of Investigation and the Greenville Police Department. Assistant U.S. Attorney Peggah B. Wilson prosecuted the case for the Eastern District of North Carolina.
Grand Jury Returns Superseding Indictment that Charges Champaign Man with Kidnapping Resulting in DeathRead the Press Release
URBANA, Ill. – A federal grand jury today returned a superseding indictment against Brendt A. Christensen, 28, of Champaign, Ill., that charges him with the kidnapping resulting in death of visiting Chinese scholar Yingying Zhang on June 9, 2017. In addition, the indictment charges Christensen with two counts of making false statements to FBI agents in June 2017.
Acting U.S. Attorney Patrick D. Hansen and FBI Special Agent in Charge Sean Cox, Springfield Division, announced the indictment return.
Christensen was previously indicted on the charge of kidnapping in that Christensen allegedly kidnapped and held Yingying Zhang, identified as Y.Z. in the indictment, on June 9, and that he used a cellular telephone and Saturn Astra motor vehicle, both instruments of interstate commerce, to commit and in furtherance of the commission of the offense; the superseding indictment adds the allegation that the kidnapping resulted in the death of Zhang. If convicted, for kidnapping resulting in death, the penalty is death or mandatory life in prison.
The decision as to whether the government seeks the death penalty rests solely with the U.S. Attorney General. The Department of Justice has established federal death penalty procedures. The procedures include a review process conducted by the department’s Capital Case Section. The decision-making process remains confidential until the U.S. Attorney General makes a decision as to whether or not to seek the death penalty.
The superseding indictment returned today alleges special findings including: that Christensen was more than 18 years of age at the time of the offense; that the defendant intentionally killed the victim; that the defendant intentionally inflicted serious bodily injury that resulted in the death of the victim; that the defendant intentionally participated in an act, contemplating that the life of a person would be taken or intending that lethal force would be used in connection with a person, and the victim died as a direct result of the act; and, that the defendant intentionally and specifically engaged in an act of violence, knowing that the act created a grave risk of death to a person, such that participation in the act constituted a reckless disregard for human life and the victim died as a direct result of the act.
As to the charge that the kidnapping resulted in the death of Yingying Zhang, the indictment alleges special findings that Zhang’s death occurred during the commission of a kidnapping; that Christensen committed the offense in an especially heinous, cruel or depraved manner, in that it involved torture or serious physical abuse to the victim; and, that Christensen committed the offense after substantial planning and premeditation to cause the death of a person.
In addition to the offense of kidnapping resulting in death, the superseding indictment charges Christensen with making false statements to the FBI on two occasions. On June 12, the indictment alleges that Christensen falsely stated to FBI agents that he stayed at his apartment and slept and played video games all day on June 9, 2017, when he knew full well that he drove around the University of Illinois campus on the afternoon of June 9, and picked up Zhang as she was waiting for a bus. The indictment alleges that on June 15, Christensen falsely told an FBI agent that he dropped off an Asian female in a residential area shortly after picking her up in his Saturn Astra on June 9, when he knew full well that he did not drop the female off shortly after picking her up, but instead, took her back to his apartment.
If convicted of making false statements to federal law enforcement agents, each offense is punishable by up to five years in prison.
The date for Christensen to appear in federal court for arraignment on the superseding indictment will be scheduled by the U.S. Clerk of the Court in Urbana.
Christensen was arrested and charged by criminal complaint on June 30. On July 5, U.S. Magistrate Judge Eric I. Long ordered that Christensen remain detained in the custody of the U.S. Marshals Service pending trial. On July 12, the grand jury returned the initial indictment of Christensen. The pending trial date for Christensen is Feb. 27, 2018, in Urbana.
The Federal Bureau of Investigation and the University of Illinois Police Department are conducting the investigation.
Assistant U.S. Attorneys Bryan D. Freres and Eugene L. Miller are representing the government on behalf of the U.S. Attorney’s Office, Urbana Division.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Framingham Man Sentenced to 17 Years in Prison for Sexually Exploiting Approximately 150 BoysRead the Press Release
BOSTON – A Framingham man was sentenced yesterday in federal court in Boston for sexually exploiting approximately 150 boys by posing as a teenage girl on the internet and convincing the boys to send nude photos and videos of themselves to him.
Curtis Simoneau, 24, was sentenced by U.S. District Court Judge Leo T. Sorokin to 17 years in prison and 10 years of supervised release. Simoneau will also have to register as a sex offender upon his release from federal prison. In June 2017, Simoneau pleaded guilty to two counts of coercion and enticement of a minor and one count of possession of child pornography.
On March 7, 2016, law enforcement in central Massachusetts responded to a complaint regarding the possible sexual exploitation of a 13-year-old boy. When an officer interviewed the victim and his parents, the victim said he began communicating with “LJ” via KiK Messenger, a mobile instant messaging app, in December 2015.
Simoneau, posing online as “LJ,” told the victim that he was a 14-year-old girl living in Maine and offered to exchange nude images and nude videos with the victim, which they did on multiple occasions. The victim believed he was in an online relationship with “LJ.” The victim also told law enforcement that he had introduced his friend, a 12-year-old boy, to “LJ” via KiK, and that his friend and “LJ” also exchanged nude images. An interview with the second victim confirmed that he too had exchanged nude images with “LJ.”
Law enforcement was able to identify Simoneau as the individual who was posing as “LJ” as well as confirm his Framingham address. The investigation further determined that Simoneau was previously convicted in a Massachusetts state court of possession of child pornography and placed on probation.
During a search of Simoneau’s home on Aug. 4, 2016, 1,128 videos of child pornography and 712 photos of child pornography were discovered on Simoneau’s digital devices. Most of the child pornography in Simoneau’s collection had been sent to him by boys who believed they were sending nude and sexually suggestive material of themselves to a teenage girl. In total, Simoneau victimized approximately 150 boys.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William Evans; and Framingham Police Chief Kenneth Ferguson made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
Former funeral home director pleads guilty to defrauding insurance companyRead the Press Release
BLUEFIELD, W.Va. – A former funeral director who defrauded an insurance company pleaded guilty today, announced United States Attorney Carol Casto. Joel L. McGuire, 61, of Alderson, entered his guilty plea to wire fraud.
McGuire was the funeral director at Broyles-McGuire Funeral Home in Union, West Virginia. While serving as funeral director, McGuire also sold insurance policies that would pay for clients’ funerals upon their death. On August 31, 2012, McGuire submitted a claim, stating that a client had passed away on August 29, 2012, and that he had provided funeral services at a cost of $3,313.71. McGuire knew that the client was still alive and that he had not provided any funeral services. The insurance company paid McGuire $3,312.71 for the claim. McGuire also admitted that, as a result of his submission of numerous other false claims for clients that had not died, he received more than $50,000.
McGuire faces up to 20 years in federal prison and a $250,000 fine when he is sentenced on January 9, 2018.
The West Virginia Offices of the Insurance Commissioner Fraud Unit conducted the investigation. Assistant United States Attorney Eric Bacaj is in charge of the prosecution. The plea hearing was held before Senior United States District Judge David A. Faber.
- Follow us on Twitter: SDWVNews
Former Philadelphia Judge Pleads Guilty to Causing False Statements to the Federal Election CommissionRead the Press Release
A former Municipal Court Senior Judge pleaded guilty to a criminal information unsealed yesterday charging him with causing false statements to the Federal Election Commission (FEC) in connection with a 2012 congressional primary election. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania made the announcement.
According to the plea memorandum filed today, Jimmie Moore, 66, of Philadelphia, engaged in a falsification scheme involving payments to his 2012 campaign for the Democratic Party’s nomination for member of the U.S. House of Representatives. According to the plea memorandum, those payments came from the campaign committee of Moore’s political opponent for the purpose of removing Moore from the Democratic primary for Pennsylvania’s First Congressional District.
As set forth in the criminal information and the government’s plea memorandum, Moore admitted that in or about February 2012, he withdrew from the primary election pursuant to an agreement with his opponent, who promised to pay Moore $90,000 from his campaign funds to be used to repay Moore’s campaign debts. According to the plea memorandum, those payments were made to Moore’s campaign manager, Carolyn Cavaness, 34, of Philadelphia, and to an entity created for the purpose of repaying the Moore campaign’s outstanding debts to its vendors. Those payments were routed through consulting companies to conceal their true source.
According to the plea memorandum, Cavaness, acting at Moore’s direction, used the money from Moore’s opponent’s campaign committee to repay the campaign vendors and to reimburse Moore for loans he had made to his own campaign. However, Moore’s campaign failed to disclose this information to the FEC. Instead, Moore knowingly and intentionally caused his campaign committee to file false reports with the FEC which did not disclose or reference the funds received from his opponent’s campaign committee, did not mention the companies of the political consultants through which the payments were routed, and falsely listed the same debts owed by Moore’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds paid to Moore by his opponent’s campaign committee. According to the plea memorandum, Moore and Cavaness knowingly and intentionally caused his campaign to file these false reports in order to conceal from the FEC the fact that Moore’s opponent’s campaign committee had made the payments to Moore’s campaign in excess of the statutory contribution limit in exchange for the defendant’s agreement to withdraw from the primary election.
Cavaness previously pleaded guilty to a criminal information charging her with causing false statements to the FEC in connection with this scheme.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson of the Eastern District of Pennsylvania and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.
Former Philadelphia Judge Pleads Guilty to Causing False Statements to the Federal Election CommissionRead the Press Release
A former Municipal Court Senior Judge pleaded guilty to a criminal information unsealed yesterday charging him with causing false statements to the Federal Election Commission (FEC) in connection with a 2012 congressional primary election. Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement.
According to the plea memorandum filed today, Jimmie Moore, 66, of Philadelphia, engaged in a falsification scheme involving payments to his 2012 campaign for the Democratic Party’s nomination for member of the U.S. House of Representatives. According to the plea memorandum, those payments came from the campaign committee of Moore’s political opponent for the purpose of removing Moore from the Democratic primary for Pennsylvania’s First Congressional District.
As set forth in the criminal information and the government’s plea memorandum, Moore admitted that in or about February 2012, he withdrew from the primary election pursuant to an agreement with his opponent, who promised to pay Moore $90,000 from his campaign funds to be used to repay Moore’s campaign debts. According to the plea memorandum, those payments were made to Moore’s campaign manager, Carolyn Cavaness, 34, of Philadelphia, and to an entity created for the purpose of repaying the Moore campaign’s outstanding debts to its vendors. Those payments were routed through consulting companies to conceal their true source.
According to the plea memorandum, Cavaness, acting at Moore’s direction, used the money from Moore’s opponent’s campaign committee to repay the campaign vendors and to reimburse Moore for loans he had made to his own campaign. However, Moore’s campaign failed to disclose this information to the FEC. Instead, Moore knowingly and intentionally caused his campaign committee to file false reports with the FEC which did not disclose or reference the funds received from his opponent’s campaign committee, did not mention the companies of the political consultants through which the payments were routed, and falsely listed the same debts owed by Moore’s campaign that had been disclosed on earlier reports, despite the fact that those debts had been repaid using funds paid to Moore by his opponent’s campaign committee. According to the plea memorandum, Moore and Cavaness knowingly and intentionally caused his campaign to file these false reports in order to conceal from the FEC the fact that Moore’s opponent’s campaign committee had made the payments to Moore’s campaign in excess of the statutory contribution limit in exchange for the defendant’s agreement to withdraw from the primary election.
Cavaness previously pleaded guilty to a criminal information charging her with causing false statements to the FEC in connection with this scheme.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Eric Gibson of the Eastern District of Pennsylvania and Trial Attorney Jonathan Kravis of the Criminal Division’s Public Integrity Section.
Former Manager of Mattoon Restaurant Sentenced to Two Years in Prison for Embezzling from Former EmployerRead the Press Release
URBANA, Ill. – The former manager of the Stadium Grill restaurant in Mattoon, Ill., James Michael Hill, 40, was sentenced yesterday in Urbana to serve two years in federal prison for embezzling from the restaurant. Hill, of the 2700 block of Krishire Dr., Charleston, Ill., was ordered to report and surrender to the federal Bureau of Prisons on Nov. 7, 2017. Hill was also ordered to pay $168,723 in restitution to the restaurant. As part of his sentence, following his release from prison, Hill was ordered to remain on federal supervised release for three years.
On April 28, 2017, Hill, who has a prior theft conviction in 2001 for stealing from a different employer, entered pleas of guilty to four separate counts of wire fraud. According to evidence presented during the court hearing, as general manager of the restaurant, Hill could access the restaurant’s accounting system to correct errors made by other employees in entering purchases. From 2007, until his fraud was discovered and he was fired in August 2013, Hill made false representations in the restaurant’s accounting system that certain cash sales had not occurred or occurred for a lesser amount, and then took and used the cash generated for his personal use. Further, Hill falsely represented that certain sales were incorrectly entered into the accounting system as purchases made with cash and fraudulently entered them as purchases made with gift cards. Hill then took and used the cash generated by those sales for his personal use and benefit.
The case was prosecuted by Supervisory Assistant U.S. Attorney Eugene L. Miller. The Federal Bureau of Investigation and Mattoon Police Department investigated the case.
Essex County, New Jersey, Man Sentenced to 150 Months in Prison for Armed Robbery of Passaic, New Jersey, ClubRead the Press Release
NEWARK, N.J. – An East Orange, New Jersey, man was sentenced today to 150 months in prison his role in the September 2015 armed robbery of a club in Passaic, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Shaheed Blamahsah, a/k/a “Aboo,” 30, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence.
According to the documents filed in this case and statements made in court:
On Sept. 6, 2015, Blamahsah and at least two other conspirators agreed to rob a club in Passaic at gunpoint. During his plea hearing, Blamahsah admitted that he knowingly and willfully participated in the robbery and that he and another conspirator brandished a firearm and threatened to use violence against a club employee. He also admitted that he and the other conspirator took $26,084 in cash from the club before fleeing in a getaway car.
In addition to the prison term, Judge Arleo sentenced Blamahsah to five years of supervised release.
Blamahsah was originally charged in November 2016 with Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Keontrae Lawrence, a/k/a “Taz,” 29, of South Orange, New Jersey. Lawrence pleaded guilty on Sept. 7, 2017 and awaits sentencing. The charges against Cooper are merely allegations, and he is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Division of Public Safety for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Kevin Buchan Esq., Holmdel
Essex County, New Jersey, Consulting Company Owner Admits Tax EvasionRead the Press Release
NEWARK, N.J. – The owner of a consulting services company today admitted evading taxes while operating his business in 2009, Acting U.S. Attorney William E. Fitzpatrick announced.
Oscar N. James Sr., 60, of West Orange, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to Count Two of an information charging him with tax evasion.
According to documents filed in this case and statements made in court:
As the owner of The James Group, James intentionally under-reported the income that he received for tax years 2008 and 2009 by filing false federal personal income tax returns. James admitted that he was responsible for underreporting $173,796 in income for the 2009 tax year, resulting in a tax loss of $61,046.
The tax evasion charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is currently scheduled for Jan. 11, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen: the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the Special Prosecutions Division in Newark.
Defense counsel: Adalgiza Núñez Esq., Newark
Dubois Man Charged with Illegally Using Social Security Benefit PaymentsRead the Press Release
JOHNSTOWN, Pa. - A resident of DuBois, Pa., has been indicted by a federal grand jury in Johnstown on charges of conversion of government funds, Acting United States Attorney Soo C. Song announced today.
The two-count indictment named Daniel P. McIntosh, 39, of DuBois, Pa.
According to the indictment presented to the court, from Aug. 1, 2014, to July 31, 2016, McIntosh did receive and convert falsely to his own use a total of $41,529.70, which represents approximately 115 separate Social Security Administration benefit payments made to him and also to him as representative payee for his wife and minor children, to which he or they were not entitled.
The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, 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 U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Drug Enforcement Administration Special Agent Charged with Obstruction of Justice, Perjury, Conversion and Other Crimes; Former Task Force Officer Also ChargedRead the Press Release
A Drug Enforcement Administration (DEA) special agent was charged in an indictment unsealed yesterday with obstruction of justice, perjury, falsifying records in a federal investigation, seeking and receiving an illegal gratuity, conversion of property by an officer or employee of the United States and removing property to prevent seizure and conspiracy. A former DEA task force officer was also charged.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge Monte Cason of the Department of Justice Office of the Inspector General’s (DOJ-OIG) Dallas Field Office and Chief Inspector Brian M. McKnight of the DEA’s Office of Professional Responsibility (DEA-OPR) made the announcement.
Chad A. Scott, 49, of Covington, Louisiana, the DEA special agent, and Rodney P. Gemar, 41, of Ponchatoula, Louisiana, the former task force officer, were charged in an indictment returned on Sept. 29, in the Eastern District of Louisiana. Scott is charged with three counts of obstruction of justice, two counts of perjury, one count of falsifying records in a federal investigation, one count of seeking and receiving an illegal gratuity, one count of unlawful conversion of property by a government officer or employee, one count of removing property to prevent seizure and one count of conspiracy to commit conversion to remove property to prevent seizure. Gemar is charged with two counts of unlawful conversion of property by a government officer or employee, two counts of removing property to prevent seizure and two counts of conspiracy to commit conversion and to remove property to prevent seizure. According to the indictment, Scott, Gemar and their co-conspirators committed these offenses while serving with the New Orleans Division of the DEA.
Specifically, the indictment alleges that Scott committed obstruction of justice and perjury in connection with a January 2016 trial in the Eastern District of Louisiana, misappropriated the personal property of individuals who were arrested by the New Orleans Division of the DEA and falsified documentation relating to the seizure of a Ford pick-up truck. The indictment further alleges that Gemar also misappropriated personal property from individuals detained by the DEA, as well as money seized from an individual detained by local law enforcement.
Gemar currently serves as a police officer with the Hammond, Louisiana Police Department.
Former DEA task force officer Karl Emmett Newman, 50, of Kentwood, Louisiana, was also charged with numerous offenses in a separate May 13, 2016 indictment and in an Oct. 7, 2016 superseding indictment. Newman pleaded guilty on July 20, to unlawfully possessing a firearm in furtherance of a crime of violence and conspiring to misappropriate money seized by the DEA during the execution of a search. Former DEA task force officer Johnny Jacob Domingue, 28, of Maurepas, Louisiana, was arrested on a criminal complaint on May 12, 2016, and was also charged in an Oct. 7, 2016 superseding indictment with falsifying records in a federal investigation. Domingue’s case remains pending. Chad Scott’s detention hearing will take place on Oct. 3 at 2:00 p.m. CDT.
The charges and allegations contained in an indictment are only accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was initiated by the Louisiana State Police and investigated by the FBI, DOJ-OIG, DEA-OPR and LSP. Assistant Chief Diidri Robinson and Trial Attorney Antonio Pozos of the Criminal Division’s Fraud Section are prosecuting the case.
Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national charged with a federal immigration crime pleaded guilty and was sentenced yesterday in federal court in Boston.
Victor Melo, 49, a Dominican national residing in Boston, pleaded guilty before U.S. Senior District Court Judge Mark L. Wolf, who sentenced Melo to time served (approximately five months in prison) and one year of supervised release. Melo also faces deportation proceedings.
Melo was previously deported in March 1991. In May 2017, federal agents in Boston encountered Melo and found him to be illegally present in the United States.
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 Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Passport FraudRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Worcester to passport fraud.
Adolfo Santana Gonzalez, 31, pleaded guilty to one count of misuse of a Social Security number and one count of making a false statement in an application for a United States Passport. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 4, 2018.
In November 2016, Santana Gonzalez, using the identification and Social Security number assigned to another individual, submitted an application for a U.S. passport at a U.S. Post Office in Worcester in that individual’s name.
The charge of misusing a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Santana Gonzalez 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 William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement today. U.S. Customs and Border Protection provided assistance with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Dominican National Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Springfield to a federal immigration crime.
Reynaldo Rodriguez, 49, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 28, 2017.
Rodriguez was previously deported on June 14, 2007. In June 2017, law enforcement officers in Hampden County encountered Rodriguez and determined him to be illegally present in the United States.
Rodriguez 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 Todd E. Newhouse of Weinreb’s Springfield Branch Office is prosecuting the case.
Doctor Pleads Guilty to Health Care Fraud Conspiracy for Role in $19 Million Detroit Area Medicare Fraud SchemeRead the Press Release
A physician pleaded guilty today to conspiracy to commit health care fraud for his role in an approximately $19 million Medicare fraud scheme involving three Detroit area providers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office and Special Agent in Charge Manny Muriel of Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
Abdul Haq, 72, of Ypsilanti, Michigan, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Denise Page Hood of the Eastern District of Michigan. Sentencing has been scheduled for May 29, 2018 before Judge Hood.
As part of his guilty plea, Haq admitted that he conspired with the owner of the Tri-County Network, Mashiyat Rashid, and his co-defendants and others to prescribe medically unnecessary controlled substances, including Oxycodone, Hydrocodone and Opana, to Medicare beneficiaries, many of whom were addicted to narcotics. He further admitted that in furtherance of the conspiracy, Rashid and others also directed physicians, including Haq and others, to require Medicare beneficiaries to undergo medically unnecessary facet joint injections if the beneficiary wished to obtain prescriptions for controlled substances.
In furtherance of the conspiracy, Haq and others referred Medicare beneficiaries to specific third party home health agencies, laboratories and diagnostic providers even though those referrals were medically unnecessary, he admitted. Haq also served as the straw owner of various pain clinics owned and/or controlled by Rashid, and submitted false and fraudulent enrollment materials to Medicare that failed to disclose the ownership interest of Rashid, as it was illegal for Rashid – a non-physician – to own medical clinics under Michigan law. In total, Haq admitted that he submitted or caused the submission of approximately $19,322,846.60 in false and fraudulent claims to Medicare.
Haq was charged along with Mashiyat Rashid, 37, of West Bloomfield, Michigan; Yasser Mozeb, 35, of Madison Heights, Michigan; Spilios Pappas, 61, of Monclova, Ohio; Joseph Betro, 57, of Novi, Michigan; Tariq Omar, 61, of West Bloomfield, Michigan; and Mohammed Zahoor, 51 of Novi, Michigan, in an indictment unsealed on July 6. Rashid, Mozeb, Pappas, Betro, Omar and Zahoor are awaiting trial.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, HHS-OIG and IRS-CI. Trial Attorney Jacob Foster of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Department of Justice Announces Tribes Selected for Expansion of Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
Department of Justice Tribal Access Program Will Continue to Improve the Exchange of Critical Data
The Department of Justice announced 15 additional American Indian tribes selected to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program to provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes.
These TAP deployments are part of the Justice Department’s Task Force on Crime Reduction and Public Safety, allowing tribes to more effectively serve and protect their communities by ensuring the exchange of critical data.
“The Tribal Access Program provides tribal governments access to federal crime information databases containing highly useful information, such as criminal background records, outstanding warrants, and domestic violence protection orders,” said Deputy Attorney General Rod Rosenstein. “When federal, state, and tribal governments share information, it makes communities and law enforcement officers safer. It helps solve crimes and protect people from being victimized.”
The TAP Team is pleased to announce that the following tribes have been selected for the next phase of TAP: The Choctaw Nation of Oklahoma
Colorado River Indian Tribes of the Colorado River Indian Reservation, Arizona and California
Lummi Tribe of the Lummi Reservation (Washington)
Mashantucket Pequot Indian Tribe (Connecticut)
Mescalero Apache Tribe of the Mescalero Reservation, New Mexico
Pueblo of Acoma, New Mexico
Red Lake Band of Chippewa Indians, Minnesota
Sac and Fox Tribe of the Mississippi in Iowa
Yavapai-Apache Nation of the Camp Verde Indian Reservation, Arizona
Zuni Tribe of the Zuni Reservation, New Mexico
Kootenai Tribe of Idaho
Mississippi Band of Choctaw Indians (Mississippi)
Nez Perce Tribe (Idaho)
Passamaquoddy Tribe (Maine)
Round Valley Indian Tribes, Round Valley Reservation, California
TAP is primarily funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART) and the Office of Community Oriented Policing Services (COPS). TAP prioritized selection of tribes that had a tribal sex offender registry pursuant to the Adam Walsh Act and are currently unable to directly submit data to national crime information databases; and/or had a tribal law enforcement agency that will use TAP to access the National Criminal Information Center (NCIC), Next Generation Identification (NGI), and other national databases to both view and enter information.
TAP is currently deployed to 32 tribes with over 160 tribal criminal justice and civil agencies participating. The service provides software to enable tribes to access national crime information databases and/or a kiosk-workstation that provides the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification (NGI) for both criminal and civil purposes.
Success stories from the past two years include:
- Recovered safely a vulnerable adult kidnap victim and captured the alleged kidnapper through the use of the National Data Exchange (N-DEx).
- Identified a previously unknown active warrant issued by another jurisdiction, on a sex offender during the routine process of registering that offender
- Stopped a known drug user with mental problems, who was found incompetent to stand trial, from purchasing a weapon
- Prevented a person convicted of domestic violence from purchasing a firearm after the police department identified an imminent threat to former spouse
- Completed entry of information on all sex offenders on tribal registries into both NGI (with fingerprint, palm prints, mug shots) and NCIC’s National Sex Offender Registration (NSOR) file so sex offender status will be obvious to anyone running a subsequent NCIC check or fingerprint-based background check
TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA); have orders of protection enforced off-reservation; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.
TAP supports tribes in analyzing their needs for national crime information and includes appropriate solutions, including a-state-of-the-art biometric/biographic kiosk workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases, as well as the ability to access CJIS systems for criminal and civil purposes through the Department of Justice’s Criminal Justice Information Network. TAP, which is managed by the Department of Justice Chief Information Officer, provides specialized training and assistance for participating tribes, including computer-based training and on-site instruction, as well as a 24x7 Help Desk.
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribalConvicted Felon Sentenced to Ten Years in Federal Prison for Stealing Firearms from Cargo TrainRead the Press Release
CHICAGO — A federal judge today sentenced a convicted felon to ten years in prison for stealing hundreds of firearms from a cargo train on the South Side of Chicago and selling more than a dozen of them.
On April 12, 2015, ANDREW SHELTON and several acquaintances burglarized the cargo train while it was parked overnight in a railyard in Chicago’s Avalon Park neighborhood. The cargo train was en route from a Ruger factory in New Hampshire to Spokane, Wash. The thieves broke locks on a train car and walked off with approximately 111 firearms, with Shelton keeping 13 guns for himself. He quickly sold the 13 firearms on the black market.
To date, law enforcement has recovered 19 of the 111 stolen firearms at various locations and crime scenes in Chicago and the surrounding area.
Shelton, 43, of Riverdale, had previously been convicted of a felony and was not legally allowed to possess a firearm. He pleaded guilty earlier this year to one count of illegal possession of a firearm by a felon, and one count of possession of a stolen firearm. U.S. District Judge John J. Tharp Jr. imposed the 120-month sentence in federal court in Chicago.
The sentencing was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department and the Norfolk Southern Railroad Police Department provided valuable assistance.
“No efforts by law enforcement to stop the senseless killings in this city by keeping guns out of the hands of felons will be successful when there are individuals like the defendant and his codefendants who are willing to profit off of illegal arms trafficking in Chicago,” Assistant U.S. Attorneys Christopher V. Parente and Eric Pruitt argued in the government’s sentencing memorandum.
The investigation into the theft and trafficking of the firearms resulted in charges against eleven defendants, including Shelton. Ten have been convicted, while one defendant, DANDRE MOODY, is awaiting a jury trial on Dec. 11, 2017.
The ten convictions include FREDERICK LEWIS (scheduled to be sentenced by Judge Tharp on Oct. 5, 2017, at 2:00 p.m.); PATRICK EDWARDS (scheduled to be sentenced by Judge Tharp on Oct. 12, 2017, at 2:00 p.m.); TERRY WALKER (scheduled to be sentenced by Judge Tharp on Dec. 6, 2017, at 2:00 p.m.); WARREN GATES (sentenced to five years and three months in prison); NATHAN DRIGGERS (sentenced to eight years in prison); LORI SHELTON (sentenced to three years of probation); ELGIN LIPSCOMB (awaiting sentencing); MARCEL TURNER (awaiting sentencing); and ALEXANDER PEEBLES (awaiting sentencing).
Columbus, Ohio man indicted on bank robbery chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Columbus, Ohio man was indicted by a federal grand jury on bank robbery, Acting United States Attorney Betsy Steinfeld Jividen announced.
Abdou Seye, age 26, was indicted on one count of “Bank Robbery.” Seye is accused of robbing the Chase Bank in the Woodsdale section of Wheeling on March 21, 2017.
Assistant U.S. Attorney Randolph J. Bernard is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Wheeling Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Chinese Man Pleads Guilty to Illegally Shipping SnakesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Chaoyi Le, 28, of Shanghai, China, pleaded guilty to Lacey Act False Labeling before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Aaron J. Mango and Craig R. Gestring, who are handling the case, stated that on April 22, 2014, the defendant sent seven ball pythons from Amherst, NY, to Shanghai, China through the U.S. Mail using the fictitious name “Ben Fan.” Le submitted a form falsely declaring that the package contained “Belts, Candy and Chocolate” with a value of $80. At the time the package was shipped, the ball pythons had an approximate value of $3,300.
The package was recovered by the United States Fish and Wildlife Service (USFWS), and inspected on May 3, 2014. In addition to the seven live ball pythons, the package also contained cloth bags typically used to hold snakes, hand warmers which are typically used in shipping reptiles, and insulation material. Written on one of the cloth bags were trade names for ball pythons: “Enchi Ghost,” “Pastel Enchi Ghost,” and “Butter Enchi,” all common trade names for ball pythons color morphs. After discovering the pythons, the USFWS contracted with a wildlife expert to temporarily care for the pythons.
Le was stopped by Canadian border officials attempting to enter Canada on April 22, 2014, at which time three live albino western hog-nosed snakes were found hidden in his socks. The total value of the hog-nosed snakes was approximately $500.
The plea is the result of an investigation by the U.S. Fish and Wildlife Service, under the direction of Honora Gordon, Special Agent-in-Charge, Northeast Region; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division; and Investigators with Environment and Climate Change Canada, Wildlife Enforcement Division.
Sentencing is scheduled for October 30, 2017 at 10:00 a.m. before Judge Geraci.
Cedar Rapids Man Sentenced to More than Five Years in Prison for Illegally Possessing a GunRead the Press Release
A felon and drug user who possessed a stolen firearm was sentenced yesterday to more than five years in federal prison.
Derek Hines, age 33, from Cedar Rapids, Iowa, received the prison term after a guilty plea to possessing a firearm as a prohibited person. In a plea agreement, Hines, a convicted felon and user of marijuana and methamphetamine, admitted that he possessed a firearm in Cedar Rapids in January 2017. Cedar Rapids Police Department officers found Hines unconscious in the driver’s seat of a parked vehicle with a loaded handgun and drug paraphernalia. The gun had previously been reported stolen by its owner. In 2003, Hines was convicted in federal court of conspiracy to distribute and possess with intent to distribute cocaine base and marijuana.
Hines was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Hines was sentenced to 63 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Hines is being held in the United States Marshal’s custody until he can be transported to a federal prison to serve his sentence.
The case was prosecuted by Assistant United States Attorney Lyndie M. Freeman and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-20.
Follow us on Twitter @USAO_NDIA.
Catholic Priest Sentenced to Prison for Tax Evasion and Bank FraudRead the Press Release
A priest for the Roman Catholic Diocese of San Jose was sentenced to 36 months in prison, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California.
According to documents and information provided to the court, from 2008 through 2011, Hien Minh Nguyen stole money that his parishioners donated to the Diocese of San Jose through cash and checks made as offerings during religious services. He deposited such checks into his personal bank account and used the funds for his benefit. He also wrote checks drawn on church business accounts to pay for personal expenses. Nguyen evaded paying income taxes on the money he stole, concealing his embezzlement from his return preparer. The court found that he embezzled $ 1,449,365 from the Catholic Church, and evaded $ 582,453 in individual income taxes that were due and owing to the Internal Revenue Service (IRS).
In addition to the term of prison imposed, U.S. District Court Judge Beth Labson Freeman ordered Nguyen to serve three years of supervised release and to pay a total of $1,883,883 in restitution, including $434,518 to the IRS. Nguyen previously pleaded guilty to tax evasion and was convicted of bank fraud following a bench trial.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch commended special agents of IRS Criminal Investigation, who conducted the investigation, and former Trial Attorney Gregory Bernstein of the Tax Division and Assistant U.S. Attorneys Michael Pitman and Thomas Moore, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Bulk Mail Firm Operator Sentenced to 2 Years in Federal Prison for Defrauding the USPS of Nearly $750KRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT KUSS, 55, of Cheshire, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 24 months of imprisonment, followed by three years of supervised release, for defrauding the U.S. Postal Service of nearly $750,000.
According to court documents and statements made in court, KUSS was the managing partner of Creative Marketing Group, LLC (“CMG”), a mail service provider in the business of sending bulk mailings. CMG has a Permit Imprint bulk mailing permit (“PI permit”) that allows the company to print postage indicia directly onto an envelope rather that affix a postage stamp or a meter impression to each piece of mail (the printed postage indicia tend to be pink printings on the upper right hand corner of an envelope).
Generally, a PI permit holder has an account from which the U.S. Postal Service (“USPS”) debits the appropriate postage charge for each bulk mailing. To utilize its PI permit, a mailer generally drops off its bulk mailing at the office that maintains its permit, known as a Business Mail Entry Unit (“BMEU”) – in this instance the Bristol (Conn.) Post Office. There, the mailing is examined and accepted by BMEU postal employees. The USPS then debits the mailer’s account the appropriate amount for postage.
To save money, a bulk mailer may also transport the bulk mailing itself to a destination USPS facility to obtain lower postage rates rather than simply deliver the bulk mailing to the appropriate BMEU. To do so, a mailer must bring both the bulk mailing and a form known as Postal Service Form 8125 (“PS 8125 Form”) to the BMEU for verification. Once verified, the BMEU personnel debit the mailer’s account and fill out the PS 8125 Form with information about the bulk mailing, including the mailer’s permit number, the total number of pieces of mail and the total mail weight. BMEU personnel also affix a USPS stamp to the form. The mailer then takes the bulk mailing and the PS 8125 Form to the destination USPS facility for delivery. A USPS employee at the destination facility reviews the bulk mailing and the form to ensure they match and for completeness before accepting the mailing and the PS 8125 Form.
Between approximately July 2014 and March 2016, KUSS brought bulk mailings to destination USPS facilities with fraudulent PS 8125 Forms. KUSS had filled out and stamped the forms to appear as though the bulk mailings had been brought to and verified by the BMEU in Bristol, and as though the USPS had appropriately debited his advanced deposit account. In fact, KUSS had not brought the bulk mailings to the BMEU, the BMEU had not verified the mailings, and the USPS had not debited his advanced deposit account.
KUSS delivered at least 125 bulk mailings to destination USPS facilities around the country pursuant to this scheme. As a result, he sent 3,260,183 pieces of mail without paying for postage, and the USPS lost $749,573.
Judge Chatigny ordered KUSS to pay full restitution to the USPS.
On December 12, 2016, KUSS pleaded guilty to one count of mail fraud.
KUSS, who is released on a $100,000 bond, was ordered to report to prison on November 8, 2017.
This matter was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and John H. Durham.
Buffalo Man Sentenced for His Role in Heroin Trafficking Conspiracy, Second Defendant Pleads Guilty in ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Maikel Gonzalez, 20, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and distribution of heroin, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara. In addition, Luis Montanez, 37, also of Buffalo, pleaded guilty to conspiracy to distribute 100 grams or more of heroin before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that between January 2015 and September 28, 2015, Maikel Gonzalez conspired with others to distribute heroin on the West Side of Buffalo. The investigation utilized undercover purchases conducted by the New York State Police Community Narcotics Enforcement Team (CNET) and the Buffalo Police Department.
Gonzalez was a street-level distributors or “runner” in a heroin trafficking ring operated by Daniel Molina-Rios. The organization acquired heroin from the New York City area for distribution in Buffalo but also had an alternate heroin source locally.
Luis Montanez supplied the Molina-Rios drug trafficking organization with heroin for approximately three weeks when the original source of heroin supply was not satisfying its illegal drug-using customers. Montanez’s heroin supply was distributed to a wide network of illegal drug-using customers. The defendant also maintained a premise at 221 Gorton Street in Buffalo for distributing the heroin. A search of the residence on June 18, 2015 revealed a box of glassine bags for heroin distribution, two digital scales, and an individual health card in the name of Luis Montanez with heroin residue.
A total of 15 defendants have been indicted in connection with this case, 14 have been convicted. Charges are pending against the remaining defendant. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Luis Montanez is scheduled to be sentenced on January 16, 2018, at 11:00 a.m. before Judge Geraci.
Today’s sentencing and plea are is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Brunswick man sentenced to more than 11 years in prison for having 136,000 images and 1,000 videos of child sex abuseRead the Press Release
A Brunswick man was sentenced to more than 11 years in prison for having more than 100,000 images and 1,000 videos of child sex abuse, said U.S. Attorney Justin E. Herdman.
Scott M. Wroten, 54, was sentenced to 136 months in prison after previously pleading guilty to receiving and possessing visual depictions of minors engaged in sexually explicit conduct.
Wroten knowingly received approximately 136,000 computer files which contained visual depictions of real minors engaged in sexually explicit conduct, including sexual abuse and beastiality. These files were collected between 2011 and 2016, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the Cleveland office of the Department of Homeland Security, Homeland Security Investigations, the Ohio Internet Crimes Against Children Task Force, the Brunswick Police Department and the Wickliffe Police Department.
Alden Contractors and Two Owners to Pay More Than $3,000,000 to Settle False Claims Act AllegationsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, NY – Acting Assistant Attorney General Chad A. Readler and Acting U.S. Attorney James P. Kennedy, Jr. announced today that Zoladz Construction Company Inc. (ZCCI), Arsenal Contracting LLC (Arsenal), and Alliance Contracting LLC (Alliance), all of Alden, NY, along with two owners, John Zoladz of Darien, NY and David Lyons of Grand Island, NY, have agreed to pay the United States more than $3,000,000 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.”
“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 Kennedy. “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.”
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.
“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, Assistant U.S. Attorney Kathleen A. Lynch of 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.
Akron drug dealer pleads guilty to federal drug and gun crimeRead the Press Release
CHARLESTON, W.Va. – An Akron man pleaded guilty today to a federal drug crime and a federal gun crime, announced United States Attorney Carol Casto. Lonnie Brown, 46, entered his guilty plea to distribution of fentanyl. In a separate proceeding, Brown also pleaded guilty to being a felon in possession of a firearm.
On September 26, 2016, officers with the Charleston Police Department conducted a traffic stop on a Honda Accord in Charleston. Brown fled the vehicle on foot. During a search of the vehicle, officers located a Glock, Model 27, .40 caliber semi-automatic pistol in the floorboard where Brown had been sitting. Brown was prohibited from possessing any firearm under federal law because of a 2015 felony conviction in Montgomery County, Ohio, for possession of heroin.
On February 15, 2017, agents with the Metropolitan Drug Enforcement Network Team used a confidential informant to make a controlled drug buy from Brown. The drug deal occurred at 602 Randolph Street in Charleston, and the substance recovered by law enforcement from the confidential informant tested positive for fentanyl. As part of the plea agreement, Brown admitted to all the drug trafficking activity charged in the indictment, including that he distributed heroin and fentanyl in Charleston on three other occasions in 2016 and 2017.
Brown faces up to 20 years in federal prison for the drug charge and up to 10 years in federal prison for the gun charge when he is sentenced on January 11, 2018.
The Metropolitan Drug Enforcement Network Team, the Kanawha County Sheriff’s Department’s STOP Team, the Charleston Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigations. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution. The plea hearings were held before United States District Judge Joseph R. Goodwin.
The drug prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District. The gun case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
- Follow us on Twitter: SDWVNews
Acting Manhattan U.S. Attorney Announces Settlement of Civil Fraud Claims Against Garment Wholesaler in Scheme to Avoid Paying Customs DutiesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Leon Hayward, Acting Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), and Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today that the United States has settled civil fraud claims brought under the False Claims Act against NOTATIONS, INC. (“NOTATIONS”), a garment wholesaler based in Warminster, Pennsylvania, with a showroom in Manhattan. As alleged in the Government’s complaint, NOTATIONS repeatedly ignored warning signs that its business partner, which imported garments from China, was engaged in a scheme to underpay customs duties owed on the imported garments it sold to NOTATIONS. Pursuant to the settlement, NOTATIONS admits and accepts responsibility for failing to act in response to indications of fraudulent conduct, agrees to pay $1 million in damages, and agrees to implement measures designed to prevent future fraud by NOTATIONS or its business partners. The stipulation of settlement was approved yesterday by United States District Judge Lewis A. Kaplan.
Acting U.S. Attorney Joon H. Kim said: “As this settlement makes evident, companies purchasing imported goods cannot turn a blind eye to fraud committed by their business partners. We will be vigilant in holding accountable all parties who engage in or contribute to fraudulent conduct.”
CBP Acting Director Leon Hayward said: “As global supply chains grow more complex, it is important for American businesses to know their suppliers and be confident of their integrity. The outcome of this case is a testament to the dedication of our partners in the United States Attorney’s Office, Homeland Security Investigations, and the men and women of CBP in enforcing our nation’s trade laws and holding accountable those perpetrating this type of fraud.”
HSI Special Agent in Charge Angel M. Melendez said: “Evading the payment of customs duties to increase profit is not a victimless crime; it has a negative effect on the U.S. economy and law-abiding importers. HSI special agents will continue to work diligently with the officers of CBP to locate these offenders and put an end to their fraudulent business practices.”
The Government’s complaint-in-intervention, filed last year, alleges that YINGSHUN GARMENTS, INC. (“YINGHSUN”), an importer of women’s apparel manufactured in China, and IMPORT GLOBAL DESIGNS INC. (“IMPORT GLOBAL”) and OLGREM LLC (“OLGREM”), successor entities to YINGSHUN, and MARIE ROGERS, an owner and/or officer of each entity, engaged in a double-invoice scheme whereby YINGSHUN (and later IMPORT GLOBAL and OLGREM) presented false and fraudulent invoices to CBP, showing prices for imported garments that were discounted by 75 percent or more, for the purpose of avoiding customs duties on the garments. NOTATIONS, which was YINGSHUN’s biggest customer, aided the fraudulent scheme by ignoring warning signs that YINGSHUN’s irregular business practices were highly suggestive of fraud.
As part of the settlement, NOTATIONS agreed to pay $1 million in damages. NOTATIONS also admits and accepts responsibility for its failure to take action in response to multiple warning signs that YINGSHUN, IMPORT GLOBAL, and OLGREM were undervaluing their imported goods and therefore paying less in import duties than they should have been paying. NOTATIONS also has agreed to implement a written compliance policy, which will include measures to educate its employees on identifying red flags for fraud in import transactions, to monitor the conduct of its business partners who act as importers of overseas goods, and to report all potentially fraudulent conduct to CBP.
This matter was initiated by a relator pursuant to the qui tam provisions of the False Claims Act, 31 U.S.C. § 3729 et seq. The Government’s claims against YINGSHUN, IMPORT GLOBAL, OLGREM, and MARIE ROGERS remain pending.
* * *
Mr. Kim thanked CBP and HSI for their efforts and ongoing support and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Cristy Irvin Phillips is in charge of the case.
2 October 2017
Waterloo Straw Purchaser Sentenced to Two Years in Federal PrisonRead the Press Release
A woman who admitted buying multiple firearms for others, and lying on the acquisition forms, was sentenced today to two years in federal prison.
Myneisha Washington, age 26, from Waterloo, Iowa, received the prison term after a guilty plea to possessing a firearm as a prohibited person. In a plea agreement, Washington admitted that she purchased five handguns in late 2016. On the purchase forms, Washington indicated that she was the actual buyer of each firearm when, in fact, she was a straw purchaser for four of the firearms because she purchased them for others. Washington also lied about her address and her use of drugs. Evidence at today’s sentencing hearing showed that law enforcement has linked two of the guns purchased by Washington to multiple shootings in Waterloo.
Washington was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Washington was sentenced to 24 months’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
“Straw purchasers thwart the law to get guns into the hands of criminals,” said United States Attorney Peter Deegan. “This office is committed to enhancing public safety by bringing straw purchasers to justice."
After the hearing, Washington was taken into custody by the United States Marshals Service to serve her sentence.
The case was prosecuted by Assistant United States Attorney Ravi T. Narayan and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2010.
Follow us on Twitter @USAO_NDIA.
Vancouver, Washington, Tax Return Preparer Pleads Guilty to Assisting in Filing False Tax DocumentsRead the Press Release
A Camas, Washington, tax preparer, who now lives in Vancouver, Washington, pleaded guilty today in U.S. District Court in Tacoma to assisting in filing false tax documents, announced U.S. Attorney Annette L. Hayes. PAULA ODIA, 43, prepared more than 50 fraudulent tax returns, resulting in a tax loss to the U.S. that the government estimates is between $250,000 and $550,000. Most of ODIA’s clients were unaware she had falsified their tax returns or that she directed a portion of their tax refund to her bank account or to accounts belonging to members of her family. U.S. District Judge Robert J. Bryan scheduled sentencing for January 5, 2018.
According to records filed in the case, between 2011 and 2016, ODIA prepared federal income taxes for customers from her Camas home. Clients would bring ODIA their records, and she would prepare and file their taxes. In 2011, ODIA began claiming illegitimate deductions and credits in her clients’ tax returns. These false deductions and credits reduced the clients’ tax obligations and increased the tax refund. ODIA then diverted a portion of that refund to bank accounts that she or members of her family controlled. When ODIA provided copies of the tax returns to clients, these copies did not reflect what ODIA actually filed with the IRS so that the clients would not see that some of the refund had been directed to ODIA’s accounts.
Assisting in filing false tax documents is punishable by up to three years in prison, one year of supervised release, and a $100,000 fine. As part of her plea agreement, ODIA has agreed to pay restitution to the U.S. for the tax loss determined by the court.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
U.S. Attorney’s Office and V.I. Attorney General’s Office Establish Task Force to Combat Disaster Fraud and Urge Public to Report Suspected FraudRead the Press Release
St. Thomas, USVI – The U.S. Attorney’s Office announces the formation of a task force comprised of local and federal agencies to combat illegal activity related to Hurricanes Irma and Maria. Acting U.S. Attorney Joycelyn Hewlett urges residents and businesses to immediately report suspected fraudulent activity related to recovery and clean-up operations, fake charities claiming to be providing relief for victims, individuals submitting false claims for disaster relief, and any other disaster fraud-related activity.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. In the wake of Hurricanes Harvey and Irma, the U.S. Department of Justice National Center for Disaster Fraud NCDF has already received more than 400 complaints. Examples of illegal activity being reported to the NCDF and law enforcement include:
• Impersonation of federal law enforcement officials;
• Identity theft;
• Fraudulent submission of claims to insurance companies and the federal government;
• Fraudulent activity related to solicitations for donations and charitable giving;
• Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
• Price gouging;
• Theft, looting, and other violent crime.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. The U.S. Attorney’s Office is unable to receive incoming calls at its usual telephone numbers at this time. Please use the following temporary number to call the St. Thomas or St. Croix office: (703) 285-0852.
“Unfortunately, criminals exploit disasters such as hurricanes for their own gain,” Hewlett said. “We will aggressively investigate and prosecute anyone who commits disaster fraud, so if you are aware of fraud, please call the National Disaster Fraud Hotline.”
“Whether it is price gouging on life sustaining commodities, fraudulent activity involving government vendors, home contractors, or insurance fraud, the Attorney General’s Office stands ready to work with the U.S. Attorney’s Office and the other task force members to combat disaster fraud in the Territory,” said Virgin Islands Attorney General Claude Earl Walker.
The U.S. Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
Members of the public are reminded to apply a critical eye and do their due diligence before giving contributions to anyone soliciting donations on behalf of disaster victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Learn more about the NCDF at www.justice.gov/disaster-fraud. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Two Former Directors of Rosebud Tribal Ranch Appear in Federal Court on Embezzlement ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that two former directors of the Rosebud Sioux Tribe’s Tribal Ranch appeared in federal court on September 26, 2017, in Pierre, South Dakota, with one defendant pleading guilty at his initial appearance. Patricia Elaine Jones and Stormy Halligan, both former directors of the Rosebud Tribal Ranch, were separately charged with Embezzlement and Theft from an Indian Tribal Organization.
Patricia Elaine Jones, 65, of Rosebud, South Dakota, appeared in federal court on the indictment charging her with one count of embezzlement. The maximum term of imprisonment upon conviction is up to 5 years, a $250,000 fine, or both, a period of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the indictment filed against Jones, between April 1, 2015, and March 31, 2016, Jones willfully and knowingly embezzled, misapplied, and converted to her own use more than $1,000 of monies, funds, credits, goods, assets, and other property belonging to the Rosebud Sioux Tribe Tribal Ranch, an Indian Tribal Organization.
During his initial appearance, Stormy Halligan, 42, of Winner, South Dakota, entered his guilty plea before U.S. Magistrate Judge Mark A. Moreno. Halligan faces a maximum term of imprisonment of 1 year, a $100,000 fine, or both, a period of 1 year of supervised release, and a special assessment of $25 to the Federal Crime Victims Fund. Restitution will also be ordered.
According to Halligan’s plea agreement, between April 1, 2015, and March 31, 2016, he willfully and knowingly embezzled, misapplied, and converted to his own use monies, funds, credits, goods, assets, and other property belonging to the Rosebud Sioux Tribe Tribal Ranch, an Indian Tribal Organization. Halligan pleaded guilty to a federal misdemeanor and has agreed to pay restitution.
The investigation is being conducted by the Federal Bureau of Investigation and the Department of Interior, Office of Inspector General. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Two Delano Residents Plead Guilty in Unemployment Insurance SchemeRead the Press Release
FRESNO, Calif. —Raul Oropeza Lopez, 50, and Ana Maria Oropeza, 43, both of Delano, California, pleaded guilty today to mail fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, Raul Oropeza Lopez obtained social security numbers, names, and other personal identifying information of U.S. citizens and legal residents and then fraudulently used such information to provide undocumented workers with false identities required to work in the United States as farm laborers. Then, when the undocumented workers were laid off at the end of the growing season, Lopez and his wife filed fraudulent unemployment insurance claims in the names of the assumed identities, fraudulently relying on the work performed by the undocumented workers to claim unemployment insurance benefits for the Lopezes’ benefit. Over a period of six years, Lopez and his wife submitted more than 520 fraudulent unemployment insurance claims on behalf of over 70 individuals, collecting at least $1.3 million.
This case was the product of a joint investigation by the U.S. Department of Labor, Office of Inspector General; Homeland Security Investigations; Social Security Administration, Office of Inspector General; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Postal Inspection Service; and the California Employment Development Department, Criminal Investigations Division. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
The defendants are scheduled to be sentenced by Judge Lawrence J. O'Neill on January 29, 2018. Each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tax Preparer Guilty in SYAM Tax Service Scheme and Failing to Appear for TrialRead the Press Release
BEAUMONT, Texas – A 39-year-old Dallas tax preparer has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today. The defendant Shannon Tecoko Mays pleaded guilty to federal tax violations and failure to appear for his trial on that charge in early 2015. Mays entered his guilty plea to two felony indictments today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, an investigation began in August 2012 in response to numerous complaints to state and federal authorities from citizens in Port Arthur, Anahuac, Nacogdoches and Lufkin, Texas regarding income tax returns that were being fraudulently prepared on their behalf. During the investigation, it was discovered that Mays was operating numerous offices across the United States under the name “Syam Tax Services, L.L.C.” and “Baby Momma Tax.” Although the principal office was located in Dallas, Mays also operated or sought to operate satellite offices in numerous other locations, including Fort Worth, Houston, New Orleans, Memphis, Atlanta, Chicago and Los Angeles.
Mays was indicted in February 2014 and alleged to have targeted individuals who were generally exempt from having to file income tax returns because they would be less likely to discover a fraudulent tax return had been filed on their behalf. To further facilitate the scheme, Mays employed “recruiters,” paying them from $50-100 for every client they successfully brought into Syam Tax. In order to avoid detection, Mays altered the taxpayer’s address and phone numbers on the returns so that any phone calls or correspondence from the IRS would not reach the taxpayer. The scheme also used electronic deposits to ensure paper checks would not be mailed to the taxpayer. For the tax year 2011, Mays filed 4,226 tax returns claiming approximately $6,000,000 in refunds. A successful injunction suit brought by the Texas Attorney General’s Office – Consumer Protection Division in 2014 recovered approximately $1,282,000 from Syam Tax Service bank accounts which was returned to the U.S. Treasury. One recruiter form the Port Arthur area, Diana Broussard McCoy, pleaded guilty to the conspiracy charge in January 2015, and was sentenced to five years probation by Chief Judge Ron Clark. Another recruiter, Myra Jones, pleaded guilty in March, 2014, to Impersonating an Internal Revenue Service employee, and was also sentenced to probation by Chief Judge Ron Clark.
When trial was set for January 2015, Mays failed to appear for the final pretrial conference on January 8 and then failed to appear for trial on January 12. Mays was indicted by a federal grand jury for Obstruction of Justice the following month and he remained a fugitive until his capture by U.S. Marshals in Fort Worth in August 2017. At sentencing, Mays faces up to 20 years in federal prison on the wire fraud conspiracy and ten years on the Obstruction charge, of which the sentence for obstruction must run consecutive. A sentencing date before Chief Judge Ron Clark will be set after completion of a presentence report.
This case was investigated by Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation, the Port Arthur Police Department, the Texas Attorney General’s Office – Consumer Protection Division, and the Treasury Inspector General for Tax Administration. This case was prosecuted by Assistant U.S. Attorneys Robert L. Rawls and Chris Tortorice.
Syracuse Man Sentenced for Assault at Syracuse VA Medical CenterRead the Press Release
SYRACUSE, NEW YORK – Paul Lamont Richard, 40, of Syracuse, was sentenced today in federal court in Utica to a time-served (34-month) prison sentence, after previously pleading guilty to violently assaulting an employee at the Syracuse VA Medical Center in November 2014, announced Acting United States Attorney Grant C. Jaquith.
In pleading guilty to the assault charge earlier this year, Richard admitted that on November 17, 2014, he approached an employee in the transportation office at the Syracuse VA Medical Center and demanded a ride to Albany. When the employee informed Richard that there was no scheduled trip to Albany that day, Richard became angry and assaulted the employee. Specifically, Richard grabbed the victim by the neck, braced him against a bookshelf, dragged the victim across a desk, dropped him to the floor, and then kicked the victim in the face. This assault caused the victim to lose consciousness and to suffer a large contusion and several cuts on his face. The defendant was arrested almost immediately, and he has been incarcerated pending the outcome of the assault charge since November 17, 2014.
In federal court in Utica today, United States District Judge David N. Hurd sentenced Richard to a time-served sentence of 34 months’ imprisonment.
This case was investigated by the Department of Veterans Affairs Police, and it was prosecuted by Assistant U.S. Attorney Michael F. Perry.
Rutland Attorney John Canney III Sentenced for Filing False Tax ReturnsRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that John R. Canney III, an attorney in Rutland, Vermont, was sentenced today in United States District Court in Burlington after convictions for filing false tax returns. Chief U.S. District Judge Christina Reiss sentenced Canney to seven months in prison, a $15,000 fine, and one year of supervised release. As part of his plea agreement with the government, Canney has agreed to cooperate with the Internal Revenue Service in the assessment of taxes due to the government.
On May 15, 2017, the United States filed a criminal information charging Canney with one count of filing a false individual income tax return for tax year 2011, and one count of filing a false corporate tax return for tax year 2011. Canney pled guilty to those charges on June 1, 2017.
Mr. Canney was the sole owner of John R. Canney III, P.C., a Rutland law firm. The firm had two principal bank accounts: an operating account and a client trust account, also known as an IOLTA account. Mr. Canney used the trust account to maintain client retainer fees and funds held in trust. Upon earning fees through legal services, rather than transferring his professional remuneration from the IOLTA account to the operating account where it would be subject to accounting oversight for tax purposes, Mr. Canney instead transferred this earned income from the client trust account to his personal bank account.
In preparation for filing both the corporation income tax return and his personal income tax return for tax year 2011, Mr. Canney provided his return preparer with documentation of transactions from the firm’s operating account, but not transactions from the client trust account. Because the return preparer used only operating account financial records to determine the firm’s net income, and because those records excluded the IOLTA diversions, the corporate tax return did not include the diverted funds as corporate gross receipts. Therefore, the gross receipts of the corporation for tax year 2011 were substantially higher than the gross receipts listed on the filed corporation income tax return. Likewise, the operating account financial records did not reflect the deposits from the IOLTA account into Mr. Canney’s personal bank account. Therefore, the personal tax returns that the preparer completed for Mr. Canney omitted the income derived from the IOLTA account. Consequently, the adjusted gross income for tax year 2011 was substantially higher than the adjusted gross income listed on the filed individual income tax return.
In addition to the above conduct related to his 2011 filings, Canney also failed to file accurate returns in 2010, 2012, and 2013 as a result of the diversion of income described above.
This case was investigated by the Internal Revenue Service. Canney is represented by Tristram J. Coffin of Downs Rachlin Martin PLLC in Burlington. The prosecutor is Assistant U.S. Attorney Kevin J. Doyle.
Parmelee Man Sentenced for Assault with a Dangerous Weapon and Felon in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Parmelee, South Dakota, man convicted of Assault With a Dangerous Weapon and Felon in Possession of a Firearm was sentenced on September 19, 2017, by U.S. District Judge Roberto A. Lange.
Keena Two Eagle, age 32, was sentenced to two terms of 54 months in prison, to be served concurrently, followed by 3 years of supervised release. He was also ordered to pay restitution in the amount of $2,040.24, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Two Eagle was indicted by a federal grand jury on March 15, 2017. He pled guilty on June 22, 2017.
The convictions stemmed from two separate incidents that occurred in 2016. On August 16, 2016, Two Eagle stabbed a woman multiple times with a kitchen knife at a house in Antelope, South Dakota, causing deep lacerations to her arms and face. Two Eagle fled the scene before police arrived. The woman was subsequently hospitalized and treated for her injuries.
On December 25, 2016, police responded to a report that the defendant was at a house in Parmelee brandishing a gun. Police responded to the scene and recovered from the defendant a 9mm handgun that had the serial number scratched off, along with multiple rounds of ammunition.
Two Eagle was convicted of Assault Resulting in Serious Bodily Injury in U.S. District Court in 2006, making it illegal for him to possess firearms. Two Eagle will forfeit ownership of the firearm seized on December 25, 2016, to the United States.
These cases were investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Two Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Palmer Man Sentenced to 20 Years in Prison for Role in Heroin Related DeathRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that a Palmer man was sentenced today in federal court for multiple drug offenses, including distributing heroin that resulted in the death of a young man who used the heroin.
Hiram Luis Ducasse, Jr., 27, of Palmer, was sentenced by U.S. District Judge Sharon L. Gleason to 20 years in prison, followed by six years of supervised release. Ducasse pleaded guilty on June 20, 2017, to conspiracy to distribute and possess with intent to distribute heroin, and possession of controlled substances with intent to distribute.
According to court documents, Ducasse distributed heroin to Michael Chalender, who subsequently died as a result of a heroin overdose. On Nov. 30, 2015, Ducasse agreed to meet Chalender at a Wasilla gas station, where Ducasse sold him a half gram of heroin for $100. The next morning, on Dec. 1, 2015, Chalender was found deceased in bed at his father’s house. The cause of death was determined to have been a heroin overdose. The investigation further revealed that, on Dec. 2, 2015, on a recorded telephone conversation, Ducasse admitted to having sold Chalender the heroin and denied altering it in any way, saying he “didn’t want anything to come back on me” and that he just gets his heroin from someone else, and gives it to his customers unchanged. Ducasse admitted to selling heroin, including the heroin that resulted in Chalender’s death.
During a search of Ducasse’s residence, law enforcement officers found distributable amounts of heroin, $8000, a firearm, and packaging materials that included small purple glassine baggies imprinted with black spiders, identical to the baggie that Ducasse sold to Chalender.
At the time of this offense, Ducasse was still on felony probation after having previously been convicted of a drug distribution felony in 2014 with the State of Alaska, in which he was caught distributing heroin at the same gas station in Wasilla.
The Drug Enforcement Administration (DEA) and the Alaska State Troopers Mat-Su Drug Enforcement Unit conducted the investigation leading to the successful prosecution in this case.
Owner-Operator of Burbank Clinic that Prescribed Unnecessary Services and Submitted Fraudulent Claims as Part of Scheme to Defraud Medicare Sentenced to 37 Months in Federal PrisonRead the Press Release
LOS ANGELES – The owner-operator of a Burbank medical clinic was sentenced today to 37 months in federal prison on federal healthcare fraud charges for participating in a scheme to defraud Medicare by prescribing unnecessary services and equipment, which often were not even provided.
Knarik Vardumyan, 53, of Burbank, who formerly owned and operated the medical clinic, was sentenced by United States District Judge Dale S. Fischer who also ordered Vardumyan to pay $1,711,789 in restitution to the Centers for Medicare & Medicaid Services.
Vardumyan pleaded guilty in April to two counts of federal healthcare fraud.
According to court documents, Vardumyan admitted that she knowingly and unlawfully participated in a scheme to defraud Medicare by billing Medicare for “medically unnecessary office visits and diagnostic tests,” and by arranging “for the issuance of . . . prescriptions and orders for medically unnecessary durable medical equipment” and “home health services.” Vardumyan further admitted, “many, if not all” of the people who visited her clinic “were brought . . . by co-schemers known as ‘marketers,’ who offered promises of free, medically unnecessary [equipment] or food” to those Medicare beneficiaries who were willing to attend Vardumyan’s clinic.
In documents filed in relation to today’s sentence, the government noted that Medicare paid $1,711,789 as a result of this fraudulent scheme, and that a 37-month term of imprisonment appropriately reflects the nature and circumstances of the offense, as well as the need for the sentence to “promote respect for the law and afford adequate deterrence against this kind of serious fraud against our healthcare system and the public fisc.”
The case against Vardumyan was investigated by the Federal Bureau of Investigation and Assistant United States Attorneys Kristen Williams, Cathy J. Ostiller, and Julian André of the Major Frauds Section and prosecuted by Assistant United States Attorney Adam P. Schleifer.
Owner of International Market in Erie Pleads Guilty to Food Stamp FraudRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of theft of government property, Acting United States Attorney Soo C. Song announced today.
Jasmin Omanovic, 37, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from October 2011 to February 2015, Omanovic, who was the owner and operator of International Market in Erie, committed food stamp fraud by exchanging food stamps for cash at fifty percent of face value. Omanovic also exchanged food stamps for ineligible items. He also allowed customers to pay off store debt with food stamps and he took customers’ EBT cards and used them at Walmart to restock his shelves.
Judge Cercone scheduled sentencing for February 26, 2018 at 3:00 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Omanovic on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Department of Agriculture, Office of Inspector General and the Erie Bureau of Police conducted the investigation that led to the prosecution of Omanovic.
Orange County Man Sentenced to over Eight Years for Taking $2.2 Million from Distressed Homeowners in Bogus Loan Modification SchemeRead the Press Release
SANTA ANA, California – An Orange County man was sentenced to 97 months in federal prison Friday for fraudulently taking $2.2 million from distressed homeowners based on false promises that he could help them avoid foreclosure by obtaining modifications to their mortgages.
Kevin Frank Rasher, 45, who has been in custody since his arrest at his Coto de Caza residence over a year ago, pled guilty to 12 counts of mail fraud in May. Rasher was sentenced by United States District Judge Josephine L. Staton who also ordered him to pay $2.24 million in restitution to his victims.
According to court documents, Rasher admitted that, between 2011 and March 2016, he falsely told distressed homeowners that he was an employee of the U.S. Department of Housing and Urban Development and/or an attorney, and that the homeowners had been approved for a reduced mortgage payment or interest rate. Rasher then instructed the homeowners to mail their mortgage payments to one of his businesses, claiming that he would forward the money to the homeowners’ mortgage lenders. Instead of forwarding the money to the mortgage lenders, Rasher deposited the money into his bank accounts and used it to pay his own personal expenses.
Rasher admitted that he fraudulently obtained approximately $2.24 million from more than 500 victims.
This case was investigated by the U.S. Department of Housing and Urban Development, Office of the Inspector General; the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); the United States Postal Inspection Service; the Federal Housing Finance Agency’s Office of the Inspector General; and the Federal Bureau of Investigation.
The case against Rasher was prosecuted by Assistant United States Attorneys Rosalind Wang and Robert J. Keenan of the Santa Ana Branch Office.
Oklahoma City Man Pleads Guilty to Making a Bomb Threat and Sending Child PornographyRead the Press Release
Oklahoma City, Oklahoma – ROBERT SHANE APGAR, 34, of Oklahoma City, has pled guilty to falsely and maliciously reporting that his estranged ex-wife intended to blow up the Grady County Courthouse, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma. Apgar has also entered a guilty plea to sending child pornography.
According to the first count of a four-count indictment returned by a federal grand jury on July 18, 2017, Apgar used the internet on December 1, 2015, to send false information about an attempt to bomb the Grady County Courthouse. An affidavit filed on May 2, 2017, explains that this threat was made anonymously to the FBI by email and triggered precautions at the Grady County Sheriff’s Office. The email stated that the bombing would be carried out by a person later identified as Apgar’s ex-wife, whom he had threatened before. On December 8, 2015, after further investigation, the FBI executed a search warrant at an Oklahoma City residence where Apgar was living with his mother.
The search yielded pornographic images of prepubescent children from October 2015. According to Count 2 of the indictment, Apgar attempted to persuade, induce, and entice a minor to engage in sexually explicit conduct for the purpose of transmitting video images of that conduct. According to Count 3, Apgar used a facility of interstate commerce to send images of a minor engaging in sexually explicit conduct. And according to Count 4, Apgar possessed images of that sort with intent to view them after they had been sent through a means of interstate commerce.
Today Apgar pled guilty to making a bomb threat, as alleged in Count 1, and sending child pornography, as alleged in Count 3. At sentencing, he could receive up to 10 years in prison and 3 years of supervised release on Count 1. On Count 3, he will receive no less than 5 and no more than 20 years in prison, followed by up to life on supervised release. He will remain in custody until sentencing, which will take place in approximately 90 days. Reference is made to court records for further information.
This case is the result of an investigation by the Federal Bureau of Investigation, with the assistance of the Grady County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Brandon Hale.
Navajo Man from Shiprock Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Lance Wilson, 30, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty today in federal court in Albuquerque, N.M., to an assault charge. Wilson’s plea agreement recommends a prison sentence within the range of 60 to 72 months followed by a term of supervised release to be determined by the court.
Wilson was arrested in Jan. 2017, on a criminal complaint charging him with assaulting a Navajo man by striking him in the head with a pair of wire cutters on the Navajo Indian Reservation in San Juan County, N.M.
Wilson subsequently was indicted on Jan. 24, 2017. The two-count indictment charged Wilson with assault with intent to commit murder and assault resulting in serious bodily injury. The indictment alleged that Wilson committed the crimes on Dec. 24, 2016, on the Navajo Indian Reservation in San Juan County.
During today’s proceedings, Wilson pled guilty to Count 2 of the indictment charging him with assault resulting in serious bodily injury. In entering the guilty plea, Wilson admitted that on Dec. 24, 2016, he struck the victim twice in the head with a cable-cutting tool because he was angry with the victim. Wilson further admitted that as the result of the assault, the victim required multiple surgeries including one to place a plate in his skull. Wilson acknowledged that, as the result of the assault, the victim suffered permanent injuries including memory loss and loss of speech, requires the use of a wheelchair, and resides in a health care facility.
Wilson remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
Mount Vernon Man Arrested for String of Livery Cab RobberiesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a complaint charging ALLANMON MAVUMKAL with a Hobbs Act robbery spree involving at least 10 livery cabs in the Bronx, Mt. Vernon, and Yonkers, during which MAVUMKAL robbed the cab drivers of cash, personal items, and their cabs at knife-point. MAVUMKAL surrendered on October 1, 2017, and will be presented today in Manhattan federal court before the Honorable Gabriel W. Gorenstein.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Allanmon Mavumkal preyed on innocent livery cab drivers who had the misfortune of responding to Mavumkal’s call for a ride. Protecting hardworking New Yorkers from acts of violence is always a priority of this Office.”
ATF Special Agent-in-Charge Ashan M. Benedict said: “Mavumkal is alleged to have engaged in a pattern of armed robberies and carjackings of taxi drivers, extending from the Bronx to Mount Vernon and Yonkers. Over the course of barely a month, he allegedly repeatedly preyed on hard working New Yorkers trying to do nothing more than to earn an honest living. Today’s charges send a clear message that we and our law enforcement partners stand at the ready to bring violent offenders to justice.”
NYPD Commissioner James P. O’Neill said: "This series of violent robberies ended thanks to the hard work of investigators who worked diligently until this individual was identified and taken into custody. The NYPD will continue to work with our law enforcement partners to protect communities and ensure that this individual is held accountable for his actions."
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
On September 21, 2017, MAVUMKAL hailed a livery cab in the Bronx, and directed the driver to a particular destination. After arriving at the drop-off location, MAVUMKAL threatened the driver with a large knife, which was captured on video from the cab, ordered the driver out of the cab, and then drove away in the cab. The investigation is continuing.
* * *
MAVUMKAL, 30, of Mount Vernon, New York, is charged with one count of Hobbs Act robbery, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the ATF and the NYPD.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900, or [email protected]. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Justin V. Rodriguez is in charge of the prosecution.
The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
17-319 ###
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Miami County Man Sentenced for Bank RobberyRead the Press Release
KANSAS CITY, KAN. - A Miami County man was sentenced Monday to six months in federal prison for robbing a bank in Overland Park, U.S. Attorney Tom Beall said. In addition he will serve two years on supervised release to include six months home confinement.
Paul A Sundquist, 30, Louisburg, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on Sept. 19, 2016, he robbed the Stanley Bank, 7835 W.151st in Overland Park, Kan. Sundquist showed a clerk a note demanding money before receiving the cash and fleeing the bank. A bystander got a partial tag number on Sundquist’s pickup truck. Sundquist was monitoring police radio traffic on his cell phone. When he heard police had his tag number he called 911 and surrendered.
Beall commended the FBI, the Overland Park Police Department and Assistant U.S. Attorney Terra Morehead for their work on the case.
Massachusetts Man Sentenced to over Two Years for Fraud and Identity TheftRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Luis Medina, 49, of Lawrence, Massachusetts, was sentenced today in U.S. District Court by Judge George Z. Singal to 27 months in prison and two years of supervised release for submitting a false document to a government agency, social security fraud and aggravated identity theft.
According to court records, in August 2015, Medina, who was working for an asbestos abatement contractor, used a false name and social security number to gain access to the Portsmouth Naval Shipyard in Kittery. Based on the false information, Medina was cleared for access to the shipyard.
The case was investigated by the Naval Criminal Investigative Service; the New Hampshire State Police; and the Social Security Administration, Office of the Inspector General.