Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
29 September 2017
Project Dakota Flyer Nets an Additional 16 DefendantsRead the Press Release
United States Attorney Randolph J. Seiler announced that an additional sixteen individuals have been indicted for the illegal trafficking of eagles and other migratory birds. These individuals are in addition to the 15 individuals that were indicted earlier this year. The Indictments are a result of a two-year undercover operation, dubbed Project Dakota Flyer.
Indicted Individuals Include:
Manuel Lieras: 39, Pocatello, ID, charged with violations of the Migratory Bird Treaty Act: CR 17-10032
Jason Brodersen: 46, Omaha, NE, charged with violations of the Bald and Golden Eagle Protection Act, Migratory Bird Treaty Act, and Lacey Act: CR 17-50141
Sheldon Tree Top: 43, Mandan, ND, charged with violations of the Bald and Golden Eagle Protection Act and Lacey Act: CR 17-30116
Christopher Pomani: 37, Chamberlain, SD, charged with violations of the Bald and Golden Eagle Protection Act and Lacey Act: CR 17-30118
Michael Pomani: 20, Ft. Thompson, SD, charged with violations of the Bald and Golden Eagle Protection Act and Lacey Act: CR 17-30118
Arvella Pomani: 35, Pierre, SD, charged with violations of the Bald and Golden Eagle Protection Act, and Lacey Act: CR 17-30118
Wanda Dupris: 44, Eagle Butte, SD, charged with violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act: CR-17-30119
Melinda Sue Relf, a/k/a Melinda Red Feather: 37, Pine Ridge, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-50140
Fair Deal Pawn: Rapid City, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-50138
Kenneth Foster, d/b/a Rapid Pawn: 28, Rapid City, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-50136
Pawn With Us: Rapid City, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-50139
Elray Rosaaen, d/b/a Buffalo Gap Trading Post: 72, Buffalo Gap, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-50137
Jeffrey Alan Jensen, d/b/a Jerry’s Pawn Shop: 53, Mobridge, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-30123
Amanda Silbernagel, d/b/a Jerry’s Pawn Shop: 30, Mobridge, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-30123
Steven Ray Marin, d/b/a Mobridge Pawn: 46, Mobridge, SD, charged with violations of the Migratory Bird Treaty Act: CR-17-30124
Larry Belitz: 74, Hot Springs, SD, charged with violations of the Bald and Golden Eagle Protection Act, Migratory Bird Treaty Act, and Lacey Act: CR-17-50157
Initial appearances have been set for Friday October 6, 2017, in Pierre, Wednesday October 11, 2017, in Rapid City, and Thursday October 12, 2017, in Aberdeen. This case is being investigated by the U.S. Fish and Wildlife Service. Assistant U.S. Attorneys Meghan N. Dilges and Eric Kelderman are prosecuting the cases.
Pittsburgh Man Charged with Possessing Crack CocaineRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on August 30 and unsealed September 26, named Walter Porter, age 45, as the sole defendant.
According to the indictment, on April 14, 2016, Walter Porter possessed with the intent to distribute a quantity of crack cocaine.
On the sole count of the indictment, the law provides for a maximum total sentence of not more than 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Indiana Borough Police Department 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.
Philadelphia Man Indicted for Drug TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nathan Crowder, age 28, of Philadelphia, Pennsylvania, was indicted on September 28, 2017, by a federal grand jury for possession of heroin with intent to distribute and conspiracy.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Crowder was found to possess heroin while traveling to Williamsport from Philadelphia on January 31, 2017, in Luzerne County, Pennsylvania.
The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorney Alisan VanFleet is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 30 years’ imprisonment, a term of supervised release following imprisonment, and a $2,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Philadelphia Man Indicted for Drug TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Markeese Askew, age 24, of Philadelphia, Pennsylvania, was indicted on September 28, 2017, by a federal grand jury for possession with intent to distribute heroin and methamphetamine.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Askew was found to possess heroin and methamphetamine on August 14, 2017, in Lycoming County, Pennsylvania.
The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorney Alisan VanFleet is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 30 years’ imprisonment, a term of supervised release following imprisonment, and a $2,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Pennsylvania Tobacco Distributor Agrees to Plead Guilty to Aiding Tobacco Trafficking in MassachusettsRead the Press Release
BOSTON – A Pennsylvania wholesale tobacco distributor agreed to plead guilty yesterday in federal court in Boston to aiding and abetting untaxed shipments of tobacco products into Massachusetts and evading financial reporting requirements.
Kamlesh Patel, 60, was charged and agreed to plead guilty to one count of aiding and abetting a large Norwood-based customer to violate the Prevent All Cigarette Trafficking Act (PACT Act) and one count of failing to report large cash transactions to the IRS.
Patel owned and operated RDK Distributors (RDK) and MV Distributors (MV) in Stroudsburg, Penn., through which he distributed wholesale quantities of cigars, smoking tobacco and smokeless tobacco (such as snuff and chewing tobacco), among other products.
Title 15 of the PACT Act requires people who sell, advertise for sale, transfer or ship for profit smokeless tobacco between states to file a statement with the Attorney General and the tobacco tax administrator in the states to which they ship their products. The PACT Act also requires them to file with the tax administrator a monthly record of each shipment of smokeless tobacco that they transport into the state.
Beginning in approximately January 2013, Patel sold large quantities of tobacco products to a Norwood wholesaler, often worth more than $100,000 at a time. The Norwood wholesaler typically paid Patel for tobacco products in cash. To evade financial reporting requirements that would have notified the IRS of the size, nature and income of the Norwood wholesaler’s business, Patel falsely divided among multiple invoices the bulk cash payments he received. Patel created and instructed his employees to record the large cash payments he received as if there had been numerous sales over numerous days among numerous companies, each less than $10,000, rather than the single sale for which he had received one or two sizeable cash payments, often amounting to more than $100,000 at a time.
The charge of structuring cash transactions to evade financial reporting requirements provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of up to $500,000 and forfeiture. The charge of aiding and abetting violation of the PACT Act provides for a sentence of no greater than three years in prison, up to one year of supervised release, and a fine of $250,000. 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 Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The Massachusetts Department of Revenue also provided valuable assistance. Assistant U.S. Attorney Stephen Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.
Pennsylvania Man Sentenced to 12 Years in Prison for Attempting to Exploit Nine-Year-Old Massachusetts BoyRead the Press Release
BOSTON - A Pennsylvania man was sentenced late yesterday in federal court in Boston for attempting to engage in sexual activity with a nine-year-old boy he met via online PlayStation games.
Robert Rang, 28, of Coaldale, Penn., was sentenced by U.S. District Court Judge Indira Talwani to 12 years in prison and 15 years of supervised release. In July 2017, following a seven-day trial, a federal jury convicted Rang of one count of attempted coercion and enticement of a minor.
On Oct. 29, 2014, a Massachusetts woman contacted her local police department to report that her nine-year-old grandchild, with whom she lived, had been in contact with an adult male via Sony PlayStation and text message. The woman discovered the illicit contact when she observed sexually explicit messages from Rang on her grandchild’s iPod.
Further investigation revealed that Rang had been communicating with the child for months via PlayStation, telephone and Facebook. During that time, Rang sent the child gift cards to make PlayStation-related purchases. Over the course of several months, Rang asked the child to masturbate with him and send him naked pictures; the child refused Rang’s requests.
When law enforcement executed a federal search warrant at Rang’s Coaldale home on Dec. 29, 2014, they found several images of child pornography on Rang’s cell phone, as well as evidence of his sexually explicit communications with and attempted exploitation of other minors – including a boy in New York and a boy in Kentucky - and confirmation that Rang had made plans to visit the child in Massachusetts. Rang has a prior conviction for corruption of minors in Schuylkill County, Penn.
Acting United States Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of U.S. Postal Inspection Service, Boston Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Plymouth County Sherriff Joseph D. McDonald Jr.; and Plymouth Police Chief Michael E. Botieri made the announcement today. Assistant U.S. Attorneys David G. Tobin and Anne Paruti of Weinreb’s Major Crimes Unit prosecuted the case.
Owner of Old Saybrook Pizza Restaurant Admits Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that ROBERT KEHAYIAS, 58, of Old Saybrook, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of filing a false tax return.
According to court documents and statements made in court, KEHAYIAS owns and operates Pizza Works (also known as Pizza Junction, LLC), a restaurant located in Old Saybrook. For the 2010 through 2014 tax years, KEHAYIAS deposited most of the cash receipts generated by the restaurant into his personal money market account, a portion of the cash receipts into other personal bank accounts, and only a minimal amount of cash into the business bank account. During this time, KEHAYIAS provided his tax return preparer with Quickbooks reports that significantly understated the gross receipts of the business each year. As a result, KEHAYIAS failed to report more $765,733 in taxable income on his federal income tax returns for the 2010 through 2014 tax years, and failed to pay approximately $340,000 in taxes.
Judge Meyer scheduled sentencing for January 16, 2018, at which time KEHAYIAS faces a maximum term of imprisonment of three years, a fine of up to approximately $680,000 and back taxes, interest and penalties.
This case has been investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Oswego Man Sentenced to Prison for Threatening to Murder Secret Service Agent and FamilyRead the Press Release
BINGHAMTON, NEW YORK – Joshua Michael Furbeck, age 22, of Oswego, New York, was sentenced today to serve 42 months in prison for Threatening to Murder a Federal Law Enforcement Officer, and 42 months in prison for Threatening to Murder a Family Member of a Federal Law Enforcement Officer, announced Acting United States Attorney Grant C. Jaquith and Lewis Robinson, Special Agent in Charge of the United States Secret Service, Buffalo Field Office. The 42-month sentences will run concurrently to one another. Furbeck was also sentenced to serve a three-year term of supervised release following his release from prison.
As part of hisguilty plea, Furbeck admitted that on September 17, 2016, he called the United States Secret Service Office in Syracuse, New York, and left a voicemail message in which he threatened to kill a specific Secret Service Agent and members of his family. On October 27, 2016, Furbeck was interviewed in person by Secret Service Agents and made additional threatening statements against the same specific Secret Service Agent.
This case was investigated by United States Secret Service, Buffalo Field Office, and the New York State Police (Troop D), and was prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Oklahoma Man Sentenced for Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Jason Gene Lay, 35, of Park Hill, Okla., was sentenced yesterday in federal court in Las Cruces, N.M., to 60 months in prison for his conviction on a methamphetamine trafficking charge. Lay will be on supervised release for three years after completing his prison sentence.
Lay was arrested on March 28, 2016, on a criminal complaint charging him with possession of methamphetamine with intent to distribute on Feb. 11, 2016, in Chaves County, N.M. According to the complaint, law enforcement agents seized approximately 53.4 grams of crystal methamphetamine, three handguns, $4,000 cash and drug paraphernalia when they executed a search warrant at a hotel room in which Lay had been residing.
On Sept. 14, 2016, Lay pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Lay admitted that on Feb. 11, 2016, law enforcement agents executed a search warrant on his hotel room, and found methamphetamine hidden in false compartments inside two canisters, $4,000 and three handguns. Lay further admitted that he planned to distribute the methamphetamine.
This case was investigated by the Las Cruces office of the DEA and the Chaves County Metro Narcotics Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Oklahoma Man Sentenced for Filing False Tax Returns for Prison InmatesRead the Press Release
SACRAMENTO, Calif. — Donald Loyde Harned, 72, of Oklahoma, was sentenced today by United States District Judge Garland E. Burrell, Jr. to two years in prison and ordered to pay $219,984.00 in restitution for conspiring to defraud the United States with false claims for federal tax refunds, United States Attorney Phillip A. Talbert announced.
According to court documents, beginning in 2011, Harned and six other co-defendants operated a tax fraud scheme in which they filed false tax returns using the identities of prison inmates. To execute the scheme, the conspirators incarcerated inside the Susanville Correctional Center obtained the personal identification information of other inmates. They provided this information to those outside the prison, including Harned, who then used this information to prepare and file false income tax returns with the IRS using the Earned Income Tax Credit (EITC), containing information they knew to be false and claiming refunds to which they knew the inmates were not entitled. Harned was paid by the inmates for each return he prepared and filed, and retained a portion of the false refunds for himself.
"The Earned Income Tax Credit is a refundable tax credit for working individuals and couples, particularly those with children, who earn a low to moderate income," said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. "Mr. Harned and his co-conspirators devised a scheme to illegally use the EITC for inmates that had no income and did not qualify for the credit. IRS-CI will aggressively investigate these types of prison schemes ensuring the EITC program is applied correctly."
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Unit at the California Correctional Center. Assistant United States Attorney Amy Schuller Hitchcock prosecuted the case.
To date, six of the seven individuals charged in this conspiracy have pleaded guilty. The six have been sentenced, including Edwin Ludwig IV, who was sentenced to seven years in prison for leading the scheme. Charges are pending against one remaining defendant. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
O.C. Day Care Agrees to Administer Emergency EpiPen Injections When Needed to Comply with the Americans with Disabilities ActRead the Press Release
LOS ANGELES – A Garden Grove preschool has entered into a voluntary civil settlement agreement with the United States to resolve allegations that it violated the Americans with Disabilities Act (ADA) by failing to agree to provide EpiPen injections when required and requested at its facility.
OC Kids Infant and Preschool agreed last week to modify its policies to allow its staff to administer emergency EpiPen injections to children experiencing severe allergic reactions.
The agreement with the United States Attorney’s Office resolves allegations that OC Kids was violating Title III of the ADA, which prohibits discrimination by places of public accommodation, including day care facilities, against individuals with disabilities.
“Children with disabilities, including severe food allergies, must be given equal opportunities to attend day care,” said Acting United States Attorney Sandra R. Brown. “I want to thank OC Kids for acknowledging its responsibility to comply with the Americans with Disabilities Act. The policies and changes that OC Kids has agreed to implement should serve as a guide for other day care centers to ensure that their admissions policies and practices do not discriminate against children with disabilities.”
Under the terms of the voluntary settlement agreement, OC Kids has agreed to:
- not discriminate against any individual on the basis of disability;
- revise its policies to allow for reasonable modifications for children with disabilities, including children who have food allergies; and
- provide appropriate training for its staff.
This matter was handled by Assistant U.S. Attorney Katherine M. Hikida with the Civil Division’s Civil Rights Section. For more information on the ADA, including access to publications to assist entities with ADA compliance, please visit www.ADA.gov or call the Department of Justice’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
Nine Defendants Indicted in $866,000 Insider Trading ConspiracyRead the Press Release
CHICAGO — Nine defendants, including four Chicago-area men, have been indicted on fraud charges for allegedly using inside information about an impending corporate acquisition to earn illegal trading profits.
The indictment alleges that SHANE FLEMING, a vice president of corporate sales at Minnesota-based Life Time Fitness Inc., obtained material, non-public information about the potential sale of the company to two private equity firms in 2015. Fleming learned that the sale would likely cause an increase in the company’s stock price, and he shared the inside information with BRET BESHEY, a longtime friend and business partner, the indictment states. Beshey and Fleming agreed to use the information to execute financial trades, and further agreed to share the profits, the indictment charges. Beshey then allegedly shared the information with his girlfriend CHASITY CLARK, his friend and business partner PETER KOURTIS, and Clark’s friend CHRISTOPHER BONVISSUTO.
Kourtis and Bonvissuto agreed to use the information to purchase Life Time Fitness stock options and share the profits with Beshey and Clark, the indictment states. Kourtis then shared the material, non-public information with friends ERIC WELLER, AUSTIN MANSUR, ALEX CARLUCCI and DIMITRI KANDALEPAS, all of whom knew the information came from an insider at Life Time Fitness, and they agreed to use the information to make trades, according to the charges.
The securities purchases were executed before news of the potential sale became public via a media report, which caused the stock price to increase substantially, the indictment states. The defendants earned approximately $866,629 in illegal profits from the trades, the indictment states.
The indictment was returned Sept. 28, 2017, in federal court in Chicago. It charges all nine defendants with conspiracy to commit securities fraud. Arraignments have not yet been scheduled.
“Our economy relies on the integrity of the markets, which is a core principle upon which the American financial system is built,” said Joel R. Levin, Acting United States Attorney for the Northern District of Illinois. “The U.S. Attorney’s Office is committed to aggressively using federal securities laws to hold insiders and investors accountable for using market-moving information to line their own pockets.”
Acting U.S. Attorney Levin announced the charges along with Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission provided valuable assistance.
Charged in the conspiracy are Fleming, 54, of Chanhassen, Minn.; Beshey, 44, of Puerto Vallarta, Mexico; Clark, 34, of Puerto Vallarta, Mexico; Bonvissuto, 41, of Buffalo, N.Y.; Kourtis, 51, of Niles, Ill.; Weller, 52, of Hermosa Beach, Calif.; Mansur, 46, of Chicago, Ill.; Carlucci, 51, of Clarendon Hills, Ill.; and Kandalepas, 28, of Schaumburg, Ill.
Each of the defendants also faces individual counts of securities fraud. Fleming and Beshey are each charged with nine counts; Kourtis eight; Weller three; Mansur two; and one each for Clark, Bonvissuto, Carlucci and Kandalepas.
Life Time Fitness owned a chain of fitness centers in the United States and Canada. The company’s common stock traded on the New York Stock Exchange, and options in its stock were traded on the Chicago Board Options Exchange. According to the indictment, Fleming learned on Feb. 23, 2015, that the company was in advanced acquisition negotiations with the private equity firms. Fleming shared the information with Beshey later that day, the indictment states. As other conspirators became aware of the inside information, they made arrangements to execute securities transactions and pay a portion of the proceeds to the fellow conspirator who passed them the tip, the indictment states.
From Feb. 25, 2015, to March 3, 2015, the defendants purchased hundreds of call options in Life Time Fitness stock, the indictment states. On March 5, 2015, the company’s share price was $57.67. After markets closed for the day, the Wall Street Journal published an article about the acquisition discussions. On March 6, 2015, the share price increased to a high of $69.13. On March 16, 2015, Life Time Fitness issued a news release announcing that two private equity firms were purchasing all of the company’s shares for $72.10 per share.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy charge carries a maximum sentence of five years in prison. Each count of securities fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys John D. Mitchell and William R. Hogan.
Niagara Falls Mans Pleads Guilty to Gun ChargeRead 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 Julius Hall, Jr., 31, Niagara Falls, NY, pleaded guilty to possession of a firearm in furtherance of drug trafficking before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five years in prison, a maximum of life, and a fine of $250,000.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on November 10, 2016, during the execution of a search warrant at 303 38th Street, Apartment 2, in Niagara Falls, law enforcement officers found the defendant in the living room. A .40 caliber Glock pistol with a loaded 15-round magazine was found inside a zippered bag in the defendant’s bedroom closet. In addition, four plastic bags containing cocaine and crack cocaine were recovered from various locations within the apartment. One plastic bag containing green vegetable matter, two digital scales with white powder residue on the surface, and $578 in U.S. currency were also found within the apartment.
The plea is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the Niagara Falls Police Department, under the direction of Superintendent Bryan DalPorto.
Sentencing is scheduled on January 11, 2018, at 12:30 p.m. before Judge Geraci.Mobile County Resident Sentenced to 36 Months for Possession of a Firearm After Felony ConvictionRead the Press Release
The United States Attorney, Richard W. Moore, announces that Eddie Grant, a 28 year old, resident of Mobile, Alabama was sentenced today to 36 months incarceration followed by three years of supervised release. A search warrant was executed at Grant’s residence and a Smith & Wesson, .40 caliber pistol along with a small amount of marijuana were found. Grant confessed to possession of the firearm and the marijuana.
On June 15, 2017, Grant pled guilty to possession of the firearm after being convicted of Possession of Marijuana, 1st Degree in September 2010.
The Mobile, Alabama Police Department investigated the case along with the Bureau of Alcohol Tobacco Firearms and Explosives and presented it to the United States Attorney’s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Man Indicted for Growing Marijuana on Public Land and Firearms ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment yesterday against Crescencio Pastor Carmona Venegas, 32, of San Diego, charging him with cultivation of marijuana and being an alien in possession of a firearm, United States Attorney Phillip A. Talbert announced.
According to court documents, a clandestine marijuana grow site on U.S. Forest Service land in the Stevenson Creek area of Madera County was observed from the air in early September 2017. On September 13, 2017, USFS officers and other law enforcement personnel hiked into the grow site and apprehended Venegas. Officers found 2,052 live marijuana plants, a .22 caliber rifle, a .22 caliber handgun, and ammunition in the grow site. Venegas is prohibited by law from possessing a firearm.
This case was the product of an investigation by the U.S. Forest Service. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Venegas faces a mandatory prison term of 10 years in prison, up to a maximum of life, and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Luzerne County Man Sentenced to over Eight Years in Prison for His Role in Bath Salts Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on September 28, 2017, Robert Benussi, III, age 26, of Wilkes-Barre, Pennsylvania, was sentenced to 107 months’ imprisonment by Senior U.S. District Court Judge James M. Munley, for his participation in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney Bruce D. Brandler, Benussi previously pleaded guilty to agreeing with others to distribute the drug to customers in the Luzerne County area during 2014 and 2015. The members of the conspiracy obtained the alpha-pvp from suppliers in China.
In imposing the sentence, Judge Munley noted that Benussi’s role in the conspiracy included distributing the highly addictive bath salts, and using force, threats, and intimidation in furtherance of the conspiracy.
Benussi was one of seven people charged by a grand jury in August 2016. That indictment was the fourth wave of arrests connected to alpha-pvp distribution in Luzerne County. In all, 18 people have been charged in the case since July 2013, including a Texas-based supplier of the bath salts.
Judge Munley also ordered Benussi to serve three years on supervised release following his prison sentence.
The investigation was conducted by Homeland Security Investigations, United States Postal Inspectors, the Drug Enforcement Administration, the Pennsylvania State Police, and local police from Luzerne County. Assistant United States Attorney Francis P. Sempa prosecuted the case.
# # #
Liberian National Charged with Resisting a Federal Officer During RemovalRead the Press Release
BOSTON - A Liberian national was charged today in federal court in Boston with resisting a federal officer at Logan International Airport during removal.
Mohammed Kenneh, 35, was indicted on one count of resisting a federal officer. Kenneh was charged by complaint on Aug. 30, 3017.
On July 16, 2016, Kenneh was ordered removed from the United States back to Liberia. On Aug. 29, 2017, Kenneh was transported to Logan International Airport for removal. Once at the airport, Kenneh was met by two deportation officers who asked him to exit the van in which he arrived. It is alleged that Kenneh refused to exit the van; therefore, one of the officers entered the van and attempted to remove Kenneh from the vehicle. Kenneh resisted the officer and struck the officer on the head and shoulders multiple times, eventually knocking the officer onto the floor of the van. Kenneh then allegedly wrapped his handcuffed hands around the officer’s wrist and hands and refused to release the officer. Another officer then entered the van and, together, the two officers were able to remove Kenneh from the van onto the sidewalk. A decision was then made to abort the removal proceedings and return Kenneh to Immigration and Customs Enforcement custody.
Kenneh faces a sentence of no greater than 20 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 Christopher Cronen, Field Office Director, Enforcement and Removal Operations Boston Field Office, U.S. Immigration and Customs Enforcement, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Obtains $365,000 Settlement of Sexual Harassment Lawsuit Against Kansas City, Kansas, Housing AuthorityRead the Press Release
The Justice Department today announced that the Kansas City, Kansas, Housing Authority (KCKHA) and three of its former employees have agreed to pay $365,000 to resolve a sexual harassment lawsuit filed by the department in 2015. So far this year, the Justice Department has filed or settled four cases alleging unlawful sexual harassment of women in housing.
Under the settlement, KCKHA, former Administrative Coordinator Victor Hernandez, former Property Manager Derrick Estelle, Sr., and former Director of Housing Management Ronald Cobb, will pay a total of $360,000 in monetary damages to 14 current and former KCKHA residents and applicants who were subjected to sexual harassment, as well as $5,000 to the United States in civil penalties. The settlement also requires KCKHA to conduct training, to adopt new policies and procedures to prevent sexual harassment by its employees, and to provide a mechanism by which tenants and applicants can register complaints about sexual harassment with KCKHA management.
“Sexual harassment of women is unacceptable and will not be tolerated,” said Acting Assistant Attorney General John M. Gore of the Justice Department’s Civil Rights Division. “No one should ever have to endure the type of outrageous conduct that occurred in this case in exchange for obtaining or keeping a place to live.”
“No woman should be subjected to harassment in her own home. This action sends a message to all housing providers that not only is this type of behavior unacceptable and immoral, it is illegal,” said HUD Assistant Secretary for Fair Housing and Equal Opportunity Anna Maria Farías. “HUD will continue to work to protect the fair housing rights of victims of harassment.”
This matter began when two female public housing tenants filed complaints about Hernandez with the Department of Housing and Urban Development (HUD). After HUD investigated the complaints, it issued a charge of discrimination and the matter was referred to the Justice Department. During its investigation, the department identified additional KCKHA applicants and tenants who had been sexually harassed by Hernandez, Estelle, or Cobb. Among other things, the department’s complaint alleged that Hernandez subjected women to unwanted sexual conduct as a condition for favorable hearing decisions, including asking them sexual questions, showing pornographic pictures and videos, making explicit sexual comments, and exposing himself. Hernandez admitted in sworn testimony that he had exposed himself to multiple women during appeals hearings concerning their housing.
The complaint also alleged that Estelle and Cobb explicitly conditioned housing benefits in return for sexual favors and made repeated unwelcome and offensive sexual advances to women residing in or applying for public housing. The complaint further alleged that Hernandez, Estelle, and Cobb engaged in this conduct while exercising their authority as employees of KCKHA.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of prohibited sex discrimination under this law. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination should call the department at 1-800-896-7743, or send an e-mail to [email protected], or contact HUD at 1-800-669-9777.
Justice Department Invests More Than $47 Million to Combat Human Trafficking and Assist VictimsRead the Press Release
The U.S. Department of Justice’s Office of Justice Programs (OJP) today announced more than $47 million in funding to combat human trafficking and provide vital services to trafficking victims throughout the United States.
As part of this announcement, Associate Attorney General Rachel L. Brand visited the national headquarters of the International Association of Chiefs of Police this afternoon, where she met with Executive Director Vincent Talucci, Deputy Executive Director Terrence Cunningham, and Director for Programs Domingo Herraiz. While there, she provided notification that the Bureau of Justice Assistance (BJA) had awarded the organization a $1 million grant to support a National Anti-Human Trafficking Training and Technical Assistance for Law Enforcement Task Force, which supports criminal justice systems efforts to investigate, and prosecute all forms of human trafficking.
“The Department of Justice is committed to protecting the victims of human trafficking,” said Associate Attorney General Brand. “DOJ grants provide training and technical assistance to state and local law governments, law enforcement, and victim service organizations.”
Approximately $31 million of the funds was awarded under nine OJP grant programs. The grants aim to support the criminal justice system’s efforts to investigate and prosecute all forms of human trafficking; offer victims services through experienced providers; and seeks to strengthen communities’ responses to the sexual exploitation and forced labor of victims by raising community awareness and providing training and technical assistance.
Grants awarded under Fiscal Year 2017 OJP programs include the following:
- Specialized Services for Victims of All Forms of Human Trafficking; About $7.5 million to 13 victim service organizations to enhance the quality and quantity of specialized services available to all victims of human trafficking.
- Legal Access to Victims of Crime: Innovations in Access to Justice Programs; Approximately $5 million to support an award to Equal Justice Works, which will partner with qualified nonprofit organizations to host attorneys who will provide comprehensive and holistic legal services to survivors of human trafficking and enforce victims' rights.
- Improving Outcomes for Child and Youth Victims of Human Trafficking: A Jurisdiction Wide Approach; Nearly $5.2 million to four states to improve jurisdiction-wide coordination and multidisciplinary collaboration to address the trafficking of children and youth.
- Comprehensive Services for Victims of All Forms of Human Trafficking; Over $3.6 million to five community agencies under this program with a demonstrated history of serving victims of human trafficking.
- Specialized Human Trafficking Training and Technical Assistance for Service Providers; $1.7 million to the Freedom Network USA and Futures Without Violence to help victim service providers develop and implement housing and employment practices that better serve victims of human trafficking.
The Bureau of Justice Assistance and the Office for Victims of Crime awarded four grants totaling nearly $3 million to two multidisciplinary human trafficking task forces under the Enhanced Collaborative Model to Combat Human Trafficking Program. This initiative supports task forces made up of victim service providers, law enforcement agencies and prosecutors that implement a victim-centered approach and work collaboratively to identify sex and labor trafficking victims of all ages and sexes; investigate and prosecute trafficking cases at the local, state, tribal and federal levels; and provide a comprehensive array of quality services that address the individualized needs of victims.
The Bureau of Justice Assistance awarded $1 million to the International Association of Chiefs of Police to support National Anti-Human Trafficking Training and Technical Assistance for Law Enforcement Task Forces. The task forces support efforts to investigate, and prosecute all forms of human trafficking. For a list of OVC and BJA awardees, visit https://go.usa.gov/xRhQ7.
The National Institute of Justice awarded about $2 million to three research organizations under the Research and Evaluation on Trafficking in Persons program, which funds research and evaluation efforts to understand, prevent and respond to trafficking in persons in the United States. For a list of NIJ awardees, visit https://go.usa.gov/xRh8f.
The Office of Juvenile Justice and Delinquency Prevention (OJJDP) awarded approximately $1.9 million to three mentoring project sites and one training site under the Mentoring for Child Victims of Commercial Sexual Exploitation and Domestic Sex Trafficking Initiative. This program helps organizations develop their capacity to respond to the needs of child victims. For a list of OJJDP awardees, visit https://go.usa.gov/xRhQs.
In addition to the awards, the Office for Victims of Crime (OVC) transferred more than $16 million to the Department of Housing and Urban Development Office of Special Needs Assistance Programs to help address the housing needs of human trafficking victims. OVC also dedicated funding of about $100,000 to the Human Trafficking Prosecution Unit (HTPU) within the DOJ Civil Rights Division for training and technical assistance. HTPU provides anti-trafficking training and technical assistance to agencies outside of DOJ, and follows several mandates since the passage of the Justice for Victims of Trafficking Act.
The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at www.ojp.gov.
Jacksonville Woman Charged with Wire FraudRead the Press Release
Marisol Rivera, 57, of Jacksonville, Florida, was charged today by Indictment with wire fraud, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of 40 years’ incarceration, $500,000 fine, 3 years of supervised release, and a special assessment of $200, plus restitution and forfeiture.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy Rue.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien Enters Guilty Plea in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Guadencio Morgado-Martinez, age 32, of Myrtle Beach, SC, pled guilty in federal court in Florence, to Illegal Re-Entry into the United States, a violation of Title 8, United States Code, Section 1326(a). United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on April 29, 2017, Immigration and Customs Enforcement – Enforcement and Removal Operations (“ICE-ERO”) Officers in Charleston, SC, discovered that Guadencio Morgado-Martinez, a native and citizen of Mexico, had been arrested by the South Carolina Highway Department District Five for Driving Under the Influence and other traffic violations. In 2009, Morgado-Martinez was deported from the United States back to Mexico. A records check revealed that Morgado-Martinez had not received permission to enter, re-enter, or remain in the United States.
Ms. Drake stated the maximum penalty the Defendant can receive is a fine of $250,000 and/or imprisonment for 2 years, plus a special assessment of $100.
The case was investigated by agents of the Immigration and Customs Enforcement – Enforcement and Removal Operations (“ICE-ERO”) and the South Carolina Highway Department District Five. Assistant United States Attorney Lauren Hummel of the Florence office handled the case.
#####
Illegal Alien Enters Guilty Plea in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Olvin Humberto Matute-Lopez, a/k/a “Humberto Lopez-Barralaga,” a/k/a “Fernando Dolero-Juarez,” a/k/a “Juan Carlos Matute,” a/k/a “Juan Lopez,” a/k/a “Humberto Lopez,” age 36, of Myrtle Beach, SC, pled guilty in federal court in Florence, to Illegal Re-Entry into the United States, a violation of Title 8, United States Code, Section 1326(a). United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on May 13, 2017, Immigration and Customs Enforcement – Enforcement and Removal Operations (“ICE-ERO”) Officers in Charleston, SC, discovered that Olvin Humberto Matute-Lopez, a native and citizen of Honduras, had been arrested by the Horry County Police Department for Driving Under the Influence and other traffic violations. In 2008, Matute-Lopez was deported from the United States back to Honduras. A records check revealed that Matute-Lopez had not received permission to enter, re-enter, or remain in the United States.
Ms. Drake stated the maximum penalty the Defendant can receive is a fine of $250,000 and/or imprisonment for 2 years, plus a special assessment of $100.
The case was investigated by agents of the Immigration and Customs Enforcement – Enforcement and Removal Operations (“ICE-ERO”) and the Horry County Police Department. Assistant United States Attorney Lauren Hummel of the Florence office handled the case.
#####
Illegal Alien Enters Guilty Plea in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Alfredo Martinez-Sibaja, age 26, of Myrtle Beach, SC, pled guilty in federal court in Florence, to Illegal Re-Entry into the United States, a violation of Title 8, United States Code, Section 1326(a). United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on May 15, 2017, Immigration and Customs Enforcement – Enforcement and Removal Operations (“ICE-ERO”) Officers in Charleston, SC, discovered that Alfredo Martinez-Sibaja, a native and citizen of Mexico, had been arrested by the Horry County Police Department for Driving Under the Influence and other traffic violations. In 2013, Martinez-Sibaja was deported from the United States back to Mexico after having been deported on prior occasions. A records check revealed that Martinez-Sibaja had not received permission to enter, re-enter, or remain in the United States.
Ms. Drake stated the maximum penalty the Defendant can receive is a fine of $250,000 and/or imprisonment for 2 years, plus a special assessment of $100.
The case was investigated by agents of the Immigration and Customs Enforcement – Enforcement and Removal Operations (“ICE-ERO”) and the Horry County Police Department. Assistant United States Attorney Lauren Hummel of the Florence office handled the case.
#####
Illegal Alien Enters Guilty Plea in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Jorge Hernandez-Gomez, a/k/a “Jorge Hernandez-Rodriguez,” age 35, of Mullins, SC, pled guilty in federal court in Florence, to Illegal Re-Entry into the United States, a violation of Title 8, United States Code, Section 1326(a). United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that on April 23, 2017, Immigration and Customs Enforcement – Enforcement and Removal Operations (“ICE-ERO”) Officers in Charleston, SC, discovered that Jorge Hernandez-Gomez, a native and citizen of Mexico, had been arrested by the North Myrtle Beach Police Department for Public Disorderly/Public Intoxication. In 2016, Hernandez-Gomez was deported from the United States back to Mexico after having been removed on several prior occasions. A records check revealed that Hernandez-Gomez had not received permission to enter, re-enter, or remain in the United States.
Ms. Drake stated the maximum penalty the Defendant can receive is a fine of $250,000 and/or imprisonment for 2 years, plus a special assessment of $100.
The case was investigated by agents of the Immigration and Customs Enforcement – Enforcement and Removal Operations (“ICE-ERO”) and the North Myrtle Beach Police Department. Assistant United States Attorney Lauren Hummel of the Florence office handled the case.
#####
Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that PREBERR RAMOS-PALMA, age 24, pled guilty yesterday to a one-count Indictment charging him with illegal reentry of a removed alien.
According to the court documents, RAMOS-PALMA reentered the United States after being previously deported on April 25, 2014. RAMOS-PALMA faces a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. U.S. District Judge Mary Ann Vial Lemmon set sentencing on December 7, 2017.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Honduran Drug Kingpin Sentenced to 30 Years in PrisonRead the Press Release
The eleventh Honduran citizen extradited under the treaty between the United States and Honduras, and the first to proceed to trial in the United States, was sentenced today to 30 years in prison for his involvement in a large-scale narcotics transportation organization.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
A Miami jury had found Juan Carlos Arvizu Hernandez guilty on July 14, 2017, of conspiring to distribute over five kilograms of cocaine with the knowledge that the cocaine would be unlawfully imported into the United States. The evidence at trial, which included the testimony of multiple co-conspirators and a video recording of the defendant, showed that the defendant operated in Honduras as the leader of a large-scale narcotics transportation organization that was part of a distribution chain spanning from Colombia to Mexico and the United States. In that role, the defendant and his workers were responsible for secretly receiving multi-hundred kilogram quantities of cocaine being shipped from Colombia, Venezuela and Brazil, temporarily storing the narcotics in Honduras, and then transporting the narcotics to their next point, which was typically a location in Honduras close to the Guatemalan border, Belize or even further north to Mexico. The evidence at trial showed that as part of this conspiracy the defendant was responsible for trafficking over 5,000 kilograms of cocaine. In addition to the proceedings at trial, at a hearing in June 2017 and again at the sentencing hearing today, the government presented evidence of video recordings involving Arvizu Hernandez, including a still photograph showing the defendant handling a brick of cocaine.
Acting U.S. Attorney Benjamin G. Greenberg stated, “The arrest and extradition of Juan Carlos Arvizu Hernandez is the result of extraordinary international cooperation. It also reflects the hard work, commitment, and perseverance of our Honduran and U.S. law enforcement partners to stem the flow of cocaine into the United States. Arvizu Hernandez was extradited from Honduras to the United States for his involvement in the distribution of thousands of kilograms of cocaine knowing that the cocaine would be imported into the United States. Arvizu Hernandez was tried by a jury and convicted. Now that he was sentenced, justice has been served.”
DEA Special Agent in Charge Adolphus P. Wright stated, “Hernandez’ drug trafficking organization has been dismantled and will no longer be able to import large amounts of cocaine into the Unites States. The total disregard Hernandez displayed in his efforts to destroy countless communities in the United States has been addressed with this sentence.” He added, “The DEA will continue to work diligently with all our law enforcement partners, both domestically and internationally, to combat these drug organizations and arrest the leaders and others responsible for the trafficking of drugs.”
The prosecution was part of Operation Hollow Point, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Greenberg would like to thank the following groups for their assistance in obtaining the conviction against Arvizu Hernandez: the governments of Honduras and Colombia, the U.S. Attorney’s Offices for the Middle District of Florida and the Southern District of New York, the Office of International Affairs of the Department of Justice, the Federal Bureau of Investigation as part of the Panama Express North Strike Force, and DEA Division Offices in Honduras, Colombia, and Houston, Texas, as well as the DEA Bilateral Investigation Unit at the Special Operations Division. This case was handled by Assistant U.S. Attorney Walter Norkin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Heroin Dealer Sentenced to 33 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that LUIS SANCHEZ, 55, a citizen of the Dominican Republic last residing in New York and Hartford, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 33 months of imprisonment for distributing fentanyl-laced heroin.
According to court documents and statements made in court, an investigation conducted by the FBI’s Northern Connecticut Violent Crimes Task Force revealed that SANCHEZ was distributing large quantities in Hartford’s South End. On August 31, 2016, investigators conducted a controlled purchase of approximately 200 grams of heroin from SANCHEZ outside of residence on New Britain Avenue where SANCHEZ was living temporarily. SANCHEZ was arrested at that time. On that date, investigators also arrested Yohander Hernandez-Cedeno, whose apartment SANCHEZ was sharing, after Hernandez-Cedeno was found in possession of approximately 83 grams of heroin. A search of the apartment revealed approximately 74 grams of heroin, 127 grams of cocaine, and items used to process and package heroin.
Subsequent laboratory testing of the seized heroin revealed the presence of fentanyl.
SANCHEZ has been detained since his arrest. On June 5, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 100 grams or more of heroin.
SANCHEZ, a lawful permanent resident of the U.S., faces immigration proceedings when he completes his prison term.
Hernandez-Cedeno has pleaded guilty and awaits sentencing.
The FBI Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hazard Physician and Wife Sentenced for Unlawful Distribution of Prescription Opioids and Health Care FraudRead the Press Release
FRANKFORT, Ky. – A Hazard, Ky. physician and his wife have been sentenced to 180 months in prison and 80 months in prison, respectively, following their federal convictions on multiple charges relating to the unlawful distribution of prescription opioids, health care fraud, and money laundering.
Yesterday, U.S. District Judge Gregory Van Tatenhove sentenced Dr. James “Ace” Chaney, 52, and his wife, Lesa Chaney, 51, on their convictions. In April 2016, a federal jury convicted Dr. Chaney of conspiracy to commit drug trafficking, 62 counts of illegal distribution of controlled substances, two counts of maintaining a premise for drug distribution, conspiracy to commit money laundering, 20 counts of money laundering, conspiracy to commit health care fraud and 84 counts of health care fraud. The same jury convicted Lesa Chaney, the President and CEO of Ace Clinique of Medicine LLC, of conspiracy to commit drug trafficking, two counts of maintaining a premise for drug distribution, conspiracy to commit money laundering, 20 counts of money laundering, conspiracy to commit health care fraud and 13 counts of health care fraud.
“This case is an example of a physician systematically betraying the trust of patients, placing his own profit over medical judgment, defrauding taxpayer-funded medical assistance programs, and fueling the opioid epidemic that has ravaged our state,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “Dr. Chaney’s conduct has damaged our community immeasurably and has deprived government assistance programs of critical resources. Combatting health care fraud and prescription opioid abuse have been, and will continue to be, key priorities for our office. Without the great work of our law enforcement partners in this case, we would not have been able to prosecute this disgraceful scheme.”
From 2006 to 2014, James and Lesa Chaney owned and operated Ace Clinique of Medicine, in Hazard. The trial evidence established that Dr. Chaney pre-signed prescriptions for controlled substances, to be filled out by clinic staff while he was vacationing or otherwise not present at the clinic, and that Dr. Chaney knowingly provided prescriptions for controlled substances to individuals who were diverting the pills for sale and to individuals who were abusing the drugs. Dr. Chaney also required all of his patients to undergo monthly urine drug screening to test for the presence of the drugs he prescribed, as well as illegal narcotics. When the results showed the patients were not taking the prescribed pills, or were taking illegal narcotics, Dr. Chaney directed his staff to alter the test results to falsely indicate an appropriate result. These fraudulent test results were then submitted to Medicare, Medicaid and private insurers for payment.
The evidence at trial also showed that patients would frequently wait eight hours or longer, each month, to be seen by a health care provider at Ace Clinique. The examinations would then typically be of short duration and the patient would receive a prescription for controlled substances. The Chaneys would nonetheless bill for an office visit that falsely indicated a thorough physical examination had occurred. The evidence further showed that the Chaneys billed Medicare for work Dr. Chaney allegedly did while he was vacationing outside the United States.
The Chaneys billed Medicare and Medicaid nearly $88,000,000 during the period of the conspiracy, and received more than $21,000,000. The court ruled at the sentencing hearing that 60% of those payments resulted from the Chaney’s fraud, and they will be ordered to pay restitution back to Medicare and Medicaid, in an amount equal to what they fraudulently obtained.
Under federal law, the Chaneys must serve 85% of their prison sentences and will be under the supervision of the U.S. Probation Office for three years after their release from prison.
Acting United States Attorney Shier; Amy S. Hess, Special Agent in Charge of the FBI’s Louisville Field Office; and Richard Sanders, Commissioner of the Kentucky State Police, jointly announced the sentences.
Hardin County Man Sentenced for Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas — A 34-year-old Lumberton, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
George Patrick Ashy pleaded guilty on June 27, 2017 to two counts of production of child pornography and was sentenced to a total of 420 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on Mar.28, 2016, Ashy produced child pornography, including video and photographic images of himself engaged in sexually explicit conduct with a prepubescent child. Ashy was indicted by a federal grand jury on Mar. 1, 2017 and charged with child pornography violations.
This conviction will run concurrent to the state prison sentence of 25 years Ashy is already serving out of Hardin County, Texas for continued sexual abuse of a child.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the HSI-ICE and the Beaumont Police Department and prosecuted by Assistant U.S. Attorneys Joseph R. Batte and Lesley Woods.
Fugitive Coachella Valley Doctor Who Admitted Running Cosmetic Surgery Scam that Took Tens of Millions of Dollars from Insurance Companies Sentenced to 20 Years in Federal PrisonRead the Press Release
SANTA ANA, California – A Rancho Mirage cosmetic surgeon who has been on the run for four months after pleading guilty in a scheme that duped health insurance companies into paying tens of millions of dollars for cosmetic procedures that were not medically necessary was sentenced in absentia this afternoon to 20 years in federal prison.
Dr. David M. Morrow, 72, a former Rancho Mirage resident whose current whereabouts are unknown, was sentenced this afternoon by United States District Judge Josephine L. Staton.
Judge Staton imposed the sentence after Morrow pleaded guilty last year to conspiracy to commit mail fraud and filing a false tax return.
During today’s hearing, Judge Staton noted that Morrow’s “greed knew no bounds,” and that he showed an “utter disregard for patients’ well-being and safety.” As part of the sentencing, Judge Staton found that the intended loss from Morrow’s scheme was $44,265,211.
“This defendant was a successful doctor who owned a medical clinic and multiple valuable residences, yet he engaged in a scheme designed to steal tens of millions of dollars from insurance companies by tricking them into paying for cosmetic surgery,” said Acting United States Attorney Sandra R. Brown. “After admitting guilt, he went on the lam in the hopes of avoiding the punishment that was sure to come. When he is taken into custody – and he will definitely be captured – he will serve the lengthy sentence he deserves as a result of his greed and fraud.”
Morrow, a dermatologist-turned-cosmetic-surgeon who was the owner of the Morrow Institute (TMI) in Rancho Mirage, specifically admitted that he submitted millions of dollars in claims for procedures that he certified were “medically necessary” – but in fact were cosmetic procedures such as “tummy tucks,” “nose jobs” and breast augmentations. In some cases, according to court documents, patients underwent procedures they did not want in exchange for promises from Morrow that he would perform the cosmetic procedures that they really wanted. In other cases, Morrow performed procedures on certain patients who had not given informed consent, which “has resulted in ongoing medical problems or disfigurement.” Evidence presented during today’s hearing also showed that Morrow had paid a patient for undergoing surgeries that were billed to insurance. All of the procedures led to fraudulent bills being submitted to insurance companies by Morrow and TMI.
In court papers, prosecutors argued that Morrow’s “insurance billing scheme was a completely fraudulent business.” Morrow and TMI submitted more than $80 million in claims to insurance companies, which made payments of more than $20 million to Morrow and TMI.
When he pleaded guilty in March 2016, Morrow admitted participating in a health care fraud scheme, which included submitting altered documents to private insurance companies that claimed various procedures were “medically necessary” to induce insurers to pay for them. The guilty pleas followed a grand jury indictment two years ago that alleged Morrow, his wife, and TMI lured patients to the Coachella Valley surgery center with promises that cosmetic procedures would be paid for by their union or PPO health insurance plans. The victim health insurance companies included Anthem Blue Cross, Blue Cross/Blue Shield of California, Blue Cross/Blue Shield of Massachusetts, Regional Employer/Employee Partnership for Benefits, formerly known as Riverside Employer/Employee Partnership (REEP), and Cigna.
To trick insurance companies into paying for the cosmetic procedures, Morrow and others at TMI completely fabricated diagnoses. According to court documents, they also falsified medical records by listing fabricated test results and non-existent symptoms in order to cover up the actual medical procedures being performed. For example, tummy tucks were fraudulently billed as hernia repair or abdominal reconstruction surgeries, rhinoplasties (“nose jobs”) were fraudulently billed as deviated septum repair surgeries, and breast lifts and augmentations were fraudulently billed as “tuberous breast deformity.”
Morrow also altered existing medical records after-the-fact to conceal that cosmetic surgery had actually been performed. Morrow admitted that on one patient’s medical record sent to an insurance company, he changed “Abdominoplasty” (tummy tuck), which was originally written in the procedure section, by covering up the word and handwriting “umbilical & ventral hernias” on top of it.
Morrow also pleaded guilty to filing a false 2008 tax return, admitting that he failed to report to more than $100,000 of income on his 2008 tax return and more than $1.5 million on his 2009 tax return.
Morrow and his wife are believed to have fled in May 2017. Prior to becoming fugitives, they failed to report to court officials, among other things, the sale of their $9.45 million home in Beverly Hills. Last month, prosecutors filed notice with the court that Morrow had breached his plea agreement by becoming a fugitive.
Charges against Morrow’s wife, Linda Morrow, 65, are currently pending.
The investigation into the Morrows and TMI was conducted by the Federal Bureau of Investigation, IRS - Criminal Investigation, and the California Department of Insurance.
Law enforcement authorities continue to search for the Morrows. Anyone with information about their whereabouts is encouraged to call their local FBI office. The FBI’s Los Angeles Field Office can be reached at (310) 477-6565.
The matter is being prosecuted by Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office
Fresno Area Man Indicted for Robbery and Firearm ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment yesterday against James Gonzales-Gay, 35, of Sanger, charging him with assault with the intent to rob and steal mail matter, theft of government property, and being a felon in possession of a firearm, United States Attorney Phillip A. Talbert announced.
According to court documents, on September 15, 2017, a mail carrier delivering mail in the area of Maple and Huntington, in Fresno, felt someone jump onto his mail delivery truck. Gonzales-Gay allegedly pulled the driver from the truck and began driving it. After driving a short distance, Gonzales-Gay was stopped by Fresno Police Department officers. They found parts of a Taurus handgun on Gonzales-Gay’s person and near the truck. Gonzales-Gay is prohibited by law from possessing a firearm.
This case was the product of an investigation by the United States Postal Inspection Service and the Fresno Police Department. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Gonzales-Gay faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fourth Individual Sentenced in Scheme to Fraudulently Obtain Federal Tax RefundsRead the Press Release
LEXINGTON, Ky. – A Savannah, Ga. woman, who previously admitted to her role in a conspiracy to unlawfully obtain federal tax refunds, was sentenced today to 24 months in prison. She is the fourth and final defendant to be sentenced in this case.
Chief U.S. District Judge Karen Caldwell sentenced 57-year-old Lavonda Jones Hunt for conspiracy to commit mail and wire fraud and aggravated identity theft.
Hunt admitted to participating in a scheme to defraud the United States by receiving and redeeming federal tax refunds, in the names of other individuals, as a result of fraudulently filed tax returns. Co-conspirator Alreshia Blackmon, who worked for the Kentucky state penitentiary, admitted to supplying co-conspirators with personal identifying information of inmates, for the purpose of filing tax returns in their names. Co-conspirator Candice Casanova admitted to obtaining personal identifying information of numerous individuals through various means. Casanova further admitted to preparing and filing the false tax returns from Tampa, Florida, and then directing that the refund checks be sent to locations in Kentucky for Hunt, a then-Lexington resident, to retrieve. Hunt cashed these refunds with Azzam Maali, at his small grocery store, Progress Foods, which is located in Lexington, Kentucky. Maali charged a significant fee for cashing these obviously fraudulent refunds.
The other co-conspirators in this case have already been sentenced. Blackmon received a sentence of 12 months and 1 day; Casanova received a sentence of 51 months; and Maali received a sentence of 15 months.
Under federal law, Hunt, Blackmon, Casanova, and Maali must serve 85% of their prison sentences and will be under the supervision of the U.S. Probation Office for 1 to 3 years after their release from prison.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Tracey D. Montano, Special Agent in Charge of the Nashville Field Office for the Internal Revenue Service-Criminal Investigations; and Jon Oldham, Resident Agent in Charge of the Lexington Resident Office for the United States Secret Service, jointly announce the sentences.
Founder and Former CEO of Technology Firm Sentenced to 49 Months in Prison for Multimillion-Dollar Fraud on InvestorsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MARYSE LIBURDI was sentenced today in Manhattan federal court to 49 months in prison for her scheme to defraud investors in a technology company founded and operated by LIBURDI out of more than $7 million. LIBURDI was sentenced by U.S. District Judge Denise L. Cote, before whom she previously pled guilty.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Maryse Liburdi lied to investors about the condition of her company and used over a million dollars in investor funds to pay for her own rent, clothing, spas and salons. For those crimes, today she received a sentence of 49 months in federal prison.”
According to the allegations in the Indictment to which LIBURDI pled guilty, a criminal complaint filed against LIBURDI, and statements made during the plea and other court proceeding proceedings:
Since at least in or about 2010, LIBURDI perpetrated a multi-year scheme to defraud individuals into investing in a technology company (the “Company”) founded and run by LIBURDI. LIBURDI repeatedly made misrepresentations to investors about the Company’s revenue and assets, manipulated Company bank accounts to hide the Company’s true financial condition and, contrary to LIBURDI’s express promises to the investors, converted investor funds to her own use.
While LIBURDI repeatedly told investors that the Company had millions of dollars in revenue, the Company’s bank records show that, from at least 2008 until the Company ceased operating in January 2015, the Company earned little or no revenue. Moreover, as reflected in the Company’s bank records, LIBURDI misappropriated investor funds, transferring over $1 million to her and her former husband’s bank accounts and to pay LIBURDI’s personal expenses, including luxury clothing. For example, LIBURDI used funds from one victim investor for, among other things, transfers to a personal bank account in the name of LIBURDI and her former husband, rental payments for LIBURDI’s three-bedroom Manhattan apartment, payments for personal credit cards, and substantial personal expenditures on corporate credit cards, including, among other things, expenditures at various retail clothing, accessories, and cosmetics stores, salons and spas, and wine and liquor stores.
In order to hide her scheme, LIBURDI manipulated the Company’s bank accounts by, on at least three occasions, writing checks for hundreds of thousands of dollars drawn on accounts with insufficient funds in order to fraudulently inflate the balance of a Company bank account and thereby hide the Company’s true cash balance from the investors. For example, in October 2013, LIBURDI wrote and deposited into the Company’s bank account a $700,000 check drawn on a different account that had a balance of only about $2,000. LIBURDI then falsely represented to the victims that the Company’s bank account held approximately $700,000 and showed investors a bank statement for the Company account listing the inflated balance. As result of LIBURDI’s fraud, victim-investors in the Company lost more than $7 million.
* * *
In addition to the prison term, LIBURDI, 46, formerly of Victoria, Minnesota, and New York, New York, was sentenced to three years of supervised release, and was ordered to forfeit $7,069,904.46 and to pay $7,069,904.46 in restitution to the victims of her offense.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation. He also thanked Italian law enforcement authorities, including Interpol Rome, for their assistance in LIBURDI’s arrest, as well as the Department of Justice’s Attaché at the U.S. Embassy in Rome and the DOJ Office of International Affairs.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Elisha J. Kobre is in charge of the prosecution.
Former U.S. Postal Service Employee Sentenced to 72 Months in Prison for Drug Trafficking and Money LaunderingRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ramona Long, age 57, a former U.S. Postal Service employee in Northern California, was sentenced on September 28, 2017, by United States District Court Judge Yvette Kane to 72 months’ imprisonment. Long previously entered pleas of guilty before Judge Kane to conspiring to manufacture and distribute 100 kilograms of marijuana and conspiracy to launder drug proceeds. Heath engaged in a conspiracy that trafficked hundreds of pounds of marijuana between Northern California, Florida and York County, Pennsylvania.
According to United States Attorney Bruce D. Brandler, Long and her co-defendants, including her son Tyler Long, age 33, son-in-law Christopher Mark Heath, age 39, and Ryan Jay Falsone, age 28, participated in a conspiracy that began in approximately September 2014, and continued to January 7, 2016. During this time, Heath was a deputy sheriff in Yuba County, California, assigned as a narcotics investigator. Long and her co-defendants grew marijuana on Long’s 20 acre property in Oroville, CA, and shipped it through the United States Postal Service to several locations, including post office boxes in York and Lancaster, Pennsylvania. When law enforcement officers searched Ramona Long’s California property, they discovered a shop devoted exclusively to the harvesting and processing of marijuana. Inside the shop there was a trimmer, drying racks, 74 raised planter beds and grow lights. In Long’s residence, officers seized five firearms, various ammunition and multiple plastic bins containing marijuana that Long tried to conceal from them as they entered the home.
In December 2015, Ramona Long assisted her co-conspirators with packaging marijuana they had grown and packed it to sell on the East Coast. Heath, Falsone and Tyler Long traveled from California to York County in two vehicles, transporting 89.5 kilograms of this marijuana worth just under half a million dollars. Heath’s truck contained the entire quantity of marijuana as well as a loaded Glock firearm and his deputy sheriff’s badge. When Heath, Falsone and Tyler Long arrived to deliver the marijuana in York County, they were arrested by the York County Drug Task Force and Penn Township Police Department.
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, the York County Drug Task Force, Penn Township Police Department, the Butte County Sheriff’s Department (California), the United States Postal Inspection Service, and the United States Postal Service Office of Inspector General. Assistant U.S. Attorney Meredith A. Taylor and Assistant U.S. Attorney Joseph J. Terz are prosecuting the case.
The maximum penalty for conspiracy to manufacture, distribute, and possess with intent to manufacture and distribute 100 kilograms and more of marijuana is 40 years’ imprisonment and carries a mandatory minimum sentence of five years’ imprisonment. The maximum penalty for conspiracy to commit money laundering is 20 years’ imprisonment.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicate of the potential sentence for a specific defendant.
# # #
Former Treasury Specialist Sentenced to 8 Years in Prison for Stealing from her EmployerRead the Press Release
PITTSBURGH – A Pittsburgh-area resident has been sentenced in federal court to 100 months imprisonment, three years supervise release, and restitution in the amount of $12,969,774.42 (Interest waived); on her conviction of mail fraud, wire fraud, tax evasion, and money laundering, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence yesterday on Cynthia A. Mills, 56, of McKees Rocks, Pa.
“Cynthia Mills exploited her position as a trusted employee to embezzle a staggering $12.9 million over 16 years,” stated Acting U.S. Attorney Song. “These crimes constitute the largest corporate embezzlement in Western Pennsylvania and warrant a sentence of 100 months imprisonment and nearly $13 million in restitution.”
“Cindy Mills had been viewed as one of the victim company’s best and most trusted employees while working in the accounting department for a number of years, at least until the fraud was discovered. Despite efforts by the employer to put safeguards in place, Mills abused her position of trust and found a way to steal. When the U.S. Mail is misused to facilitate such a scheme, the U.S. Postal Inspection Service will continue to aggressively pursue these criminals,” said Pittsburgh Division Inspector in Charge Tommy D. Coke.
IRS-CI Assistant Special Agent in Charge Edward Wirth added, “Yesterday’s sentencing reflects that those who steal and line their pockets with money that they were not entitled to will be held accountable. The systematic and prolonged theft by Ms. Mills in this case was egregious, and the sentence imposed demonstrates that IRS Criminal Investigation will investigate and prosecute those who violate the law.”
According to information presented to the court, from February 1999 to May 2015, Mills embezzled $12,969,774.42 from Matthews International Corporation where she was employed as a Cashier and Treasury Specialist.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Internal Revenue Service and the U.S. Postal Inspection Service for the investigation leading to the successful prosecution of Mills.
Former State Representative Erik Fresen Sentenced for Failing to File Tax ReturnRead the Press Release
Erik Fresen, a resident of Miami-Dade County, was sentenced today by U.S. District Judge Robert N. Scola to one year of probation with 60 days of intermittent confinement in the Bureau of Prisons for failing to file a tax return for tax year 2011. Fresen was ordered to report to the Bureau of Prisons in mid-November, December, January, and February to serve 15 days of imprisonment each month.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Fresen previously pled guilty to a one count information charging him with failing to file a tax return, in violation of 26 U.S.C. § 7203, for tax year 2011. In pleading guilty to the information, Fresen admitted that he had also failed to pay taxes in the amount of $30,324 on the income he received in 2011 that was not reported to the IRS.
During the court proceedings, Fresen acknowledged that he had also failed to file tax returns with the IRS for tax years 2007 through 2013 and that he had failed to pay federal income taxes in the amount of $214,766 that were due and owing on his unreported income.
At the time of sentencing, Fresen had paid in full all of the outstanding taxes with interest that he owed for tax years 2007 through 2015. Fresen remains subject to penalties to be imposed by the IRS for his failure to timely file his tax returns.
Mr. Greenberg commended the investigative efforts of the IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Harold E. Schimkat and Michael N. Berger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Social Security Administration Employee Sentenced for Accepting a BribeRead the Press Release
BOSTON - A former Social Security Administration (SSA) employee was sentenced today in federal court in Worcester for bribery.
Julio Klapper, 40, of Worcester, was sentenced by U.S. District Court Judge Timothy S. Hillman to 15 months in prison, three years of supervised release, and ordered to pay restitution of $70,337 and forfeiture of $17,800. In June 2017, Klapper pleaded guilty to one count of bribery for accepting a payment in return for submitting a fraudulent claim for payment to the SSA on behalf of a beneficiary.
Between Aug. 30, 2016, and Sept. 27, 2016, Klapper used his position with SSA to submit a request for release of Supplemental Security Income Disabled Child (SSIDC) funds by falsely claiming that the person representing the child was purchasing a car for the benefit of the SSIDC beneficiary, even though Klapper knew that the child’s representative was not intending to purchase a car with the SSIDC funds. Klapper provided false documentation to the SSA in support of the submitted claim. In exchange for Klapper’s submission of the false claim and documentation, Klapper received $2,000 from the child’s representative.
Acting United States Attorney William D. Weinreb; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Matthew Etre, Special Agent in Charge of Homeland Security Investigations, made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Weinreb’s Worcester Branch Office prosecuted the case.
Former Managing Director at New York Broker-Dealer Sentenced in “Pay-To-Play” Bribery Scheme Involving Public Pension FundRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that DEBORAH KELLEY, a former managing director of institutional fixed income sales at a New York-based broker-dealer (the “Broker-Dealer”), was sentenced today in Manhattan federal court to three years’ probation, including six months of home confinement, for participating in a “pay-to-play” bribery scheme involving the New York State Common Retirement Fund (“NYSCRF”), the nation’s third largest public pension fund. KELLEY pled guilty to conspiracy to commit securities fraud and honest services wire fraud on May 30, 2017, before U.S. District Court Judge J. Paul Oetken, who also imposed today’s sentence.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Deborah Kelley bribed an official with control over the investment of more than $50 billion in state pension fund assets. She did so to direct business to her brokerage firm and to reap hundreds of thousands of dollars in additional commissions for herself. Kelly now has been sentenced for defrauding New York pensioners and depriving them of the honest services of the pension administrator.”
According to the Indictment charging KELLEY, other filings in Manhattan federal court, and statements made during her sentencing proceeding:
The NYSCRF
The NYSCRF is a pension fund administered for the benefit of public employees of the State of New York. From January 2014 through February 2016, Navnoor Kang served as Director of Fixed Income and Head of Portfolio Strategy for the NYSCRF. In that capacity, Kang was responsible for investing more than $53 billion in fixed-income securities on behalf of the NYSCRF. Kang owed a fiduciary duty to the NYSCRF and its members and beneficiaries, and was required to make investment decisions in their best interests and free of any conflict of interest. New York State law and NYSCRF policies prohibited Kang and other NYSCRF employees from receiving any bribes, gifts, benefits, or consideration of any kind, as KELLEY well knew.
The Scheme to Steer NYSCRF Fixed-Income Business in Exchange for Secret Bribes
From 2014 through 2016, Kang, KELLEY, and others participated in a scheme to defraud the NYSCRF and its members and beneficiaries, and to deprive the NYSCRF of its intangible right to Kang’s honest services. The scheme involved, among other things, an agreement among Kang, KELLEY, and others to pay Kang bribes – in the form of entertainment, travel, and lavish meals, among other things – in exchange for fixed-income business from the NYSCRF. Such bribes were strictly forbidden by the NYSCRF, and were paid secretly and without any disclosure to the NYSCRF and its members and beneficiaries concerning the conflicts of interests inherent therein.
In exchange for the bribes paid by KELLEY, Kang used his position as Director of Fixed Income and Head of Portfolio Strategy at the NYSCRF to promote the interests of KELLEY and her brokerage firm. Kang, in exchange for the bribes he received, agreed to steer fixed-income business to the Broker-Dealer. In so doing, Kang, with KELLEY’s knowledge and approval, breached his fiduciary duty to make investment decisions in the best interest of the NYSCRF and its members and beneficiaries, and free of conflict, and deprived the NYSCRF of its intangible right to Kang’s honest services.
As KELLEY paid bribes to Kang, the Broker-Dealer’s fixed-income business with the NYSCRF skyrocketed. The value of NYSCRF’s domestic bond transactions with the Broker-Dealer increased from zero in the fiscal year ending March 1, 2014, to approximately $156 million in the fiscal year ending March 1, 2015, and to approximately $179 million in the fiscal year ending March 1, 2016. Kang’s trades resulted in the payment of more than a half-million dollars in commissions to the Broker-Dealer, of which KELLEY personally earned nearly $200,000.
Obstruction of Justice
In late 2015, the Securities and Exchange Commission (“SEC”) opened an investigation into the entertainment and benefits that KELLEY had provided Kang, and the SEC subpoenaed both KELLEY and Kang for their testimony. In advance of their testimony, KELLEY and Kang agreed to align their stories and testify falsely before the SEC in order to conceal their scheme. In late 2015 and early 2016, KELLEY and Kang each falsely testified under oath before the SEC about expenses KELLEY had paid for Kang.
* * *
KELLEY, 58, of Piedmont, California, was also ordered to pay a fine of $50,000, to forfeit $187,991.19, and to complete 1000 hours of community service. Restitution will be determined within 90 days of sentencing.
In December 2016, Gregg Schonhorn, a former a vice president of fixed income sales at another New York-based broker-dealer, pled guilty for his participation in the scheme. Kang, against whom charges for conspiracy, securities fraud, honest services wire fraud, and obstruction of justice are currently pending, is presumed innocent unless and until proven guilty. Kang is scheduled to proceed to trial on December 4, 2017.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation and noted that the investigation is continuing. He also thanked the SEC, which filed civil charges against Kang, KELLEY, and Schonhorn in a separate civil action, and the Office of Inspector General for the Office of the New York State Comptroller.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore and Joshua A. Naftalis are in charge of the prosecution.
Former Las Vegas Metropolitan Police Department Officer Pleads Guilty to Excessive Use of Force ViolationRead the Press Release
Former Las Vegas Metropolitan Police Department (LVMPD) officer Richard Scavone pleaded guilty today in federal court to assaulting a handcuffed woman in his custody.
Acting U.S. Attorney Steven W. Myhre of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Office made the announcement.
According to admissions made in the plea agreement, on January 6, 2015, Scavone, 50, was working as an LVMPD patrol officer, and was accompanied in his patrol car by an LVMPD jail corrections officer on a ride-along. At approximately 5:00 a.m., Scavone and the ride-along encountered A.O., who was talking on the phone and holding a cup of coffee. When Scavone told A.O. to “move along,” A.O responded that she was waiting on someone and threw her cup of coffee to the ground. Scavone, who was wearing a body-worn camera that recorded video and audio, exited his patrol car and approached A.O. with a Taser in hand.
Scavone admitted that during the interaction with A.O., and while A.O. was handcuffed, he: shoved A.O. to the ground; grabbed her around the neck with his hand and threw her to the ground; struck her in the forehead with an open palm; grabbed her by the head and slammed her face onto the hood of his patrol vehicle; grabbed her by the hair and slammed her face onto the hood of his patrol vehicle a second time; and slammed A.O. into the door of his patrol vehicle.
Scavone admitted that he took those actions without legal justification and that he knew his actions were against the law.
Scavone faces a maximum sentence of up to one year in prison and a fine of up to $100,000. Sentencing will be held on January 11, 2018.
“The U.S. Attorney’s Office is committed to protecting the civil rights of all Nevada citizens, regardless of their backgrounds,” said Acting U.S. Attorney Myhre. “The defendant took an oath to serve and protect with honor and integrity. Misconduct such as this will not be tolerated and those who break the law will be held accountable for their actions.”
“As Mr. Scavone realized today, no one is above the law,” said Special Agent in Charge Rouse. “Law enforcement takes an oath to protect and serve our communities. We are, and rightfully should be, held to a higher standard. Every day, the vast majority of police officers in our community uphold that standard under difficult, dangerous conditions. However, when law enforcement breaks that vow, they will be held accountable.”
After conducting its own investigation into Scavone’s conduct, LVMPD terminated Scavone’s employment.
This case was investigated by the Las Vegas Division of the Federal Bureau of Investigation, with the cooperation of the Las Vegas Metropolitan Police Department. It was prosecuted by Assistant United States Attorneys Phillip N. Smith, Jr. and Nicholas Dickinson of the District of Nevada and Trial Attorney Julia Gegenheimer of the Civil Rights Division of the Department of Justice.
Former Las Vegas Metropolitan Police Department Officer Pleads Guilty to Excessive Use of Force ViolationRead the Press Release
LAS VEGAS, Nev. - Former Las Vegas Metropolitan Police Department (LVMPD) officer Richard Scavone pleaded guilty Thursday in federal court to assaulting a handcuffed woman in his custody.
Acting U.S. Attorney Steven W. Myhre of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Office made the announcement.
According to admissions made in the plea agreement, on January 6, 2015, Scavone, 50, was working as an LVMPD patrol officer, and was accompanied in his patrol car by an LVMPD jail corrections officer on a ride-along. At approximately 5:00 a.m., Scavone and the ride-along encountered A.O., who was talking on the phone and holding a cup of coffee. When Scavone told A.O. to “move along,” A.O responded that she was waiting on someone and threw her cup of coffee to the ground. Scavone, who was wearing a body-worn camera that recorded video and audio, exited his patrol car and approached A.O. with a Taser in hand.
Scavone admitted that during the interaction with A.O., and while A.O. was handcuffed, he: shoved A.O. to the ground; grabbed her around the neck with his hand and threw her to the ground; struck her in the forehead with an open palm; grabbed her by the head and slammed her face onto the hood of his patrol vehicle; grabbed her by the hair and slammed her face onto the hood of his patrol vehicle a second time; and slammed A.O. into the door of his patrol vehicle.
Scavone admitted that he took those actions without legal justification and that he knew his actions were against the law.
Scavone faces a maximum sentence of up to one year in prison and a fine of up to $100,000. Sentencing will be held on January 11, 2018.
"The U.S. Attorney’s Office is committed to protecting the civil rights of all Nevada citizens, regardless of their backgrounds,” said Acting U.S. Attorney Myhre. “The defendant took an oath to serve and protect with honor and integrity. Misconduct such as this will not be tolerated and those who break the law will be held accountable for their actions.”
“As Mr. Scavone realized today, no one is above the law,” said Special Agent in Charge Rouse. “Law enforcement takes an oath to protect and serve our communities. We are, and rightfully should be, held to a higher standard. Every day, the vast majority of police officers in our community uphold that standard under difficult, dangerous conditions. However, when law enforcement breaks that vow, they will be held accountable.”
After conducting its own investigation into Scavone’s conduct, LVMPD terminated Scavone’s employment.
This case was investigated by the Las Vegas Division of the Federal Bureau of Investigation, with the cooperation of the Las Vegas Metropolitan Police Department. It was prosecuted by Assistant United States Attorneys Phillip N. Smith, Jr. and Nicholas Dickinson of the District of Nevada and Trial Attorney Julia Gegenheimer of the Civil Rights Division of the Department of Justice.
Former Jefferson Parish Sheriff’s Office Chief Deputy Charged with Tax Crimes in Superseding IndictmentRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CRAIG A. TAFFARO, age 70, of Harvey, a former Chief Deputy for the Jefferson Parish Sheriff’s Office, was charged yesterday in a Superseding Indictment with six counts of tax evasion, five counts of filing a false tax return, and one count of failing to file a tax return.
According to the Superseding Indictment, TAFFARO willfully attempted to evade tax due and owing by, among other things, filing returns with false and exaggerated business expenses for tax years 2009, 2010, 2011, 2012, and 2013, and by causing the filing of a false estimate of his tax liability for tax year 2014. The Superseding Indictment also alleges that TAFFARO willfully failed to file a return when required by law for tax year 2014.
If convicted, TAFFARO faces maximum terms of imprisonment of five years for each count of tax evasion, three years for each count of filing a false return, and one year for failure to file a tax return.
Acting U.S. Attorney Evans reiterated that a Superseding Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Chandra Menon, Tracey Knight, and David Sinkman are in charge of the prosecution.
Former Harrisburg Police Corporal Admits Stealing Government FundsRead the Press Release
JOHNSTOWN, Pa. – A former Harrisburg Police official pleaded guilty in federal court in the Middle District of Pennsylvania to charges of conversion of government property and theft from programs receiving government funds, Acting United States Attorney Soo C. Song announced today.
Sean D. Cornick, 45, of Harrisburg, Pa., pleaded guilty to two counts before United States District Judge John E. Jones, III.
In connection with the guilty plea, the United States presented information to the Court that on October 23, 2016, Cornick took $400 in government funds that he was not authorized to receive. Additional information described that Cornick stole government funds totaling $22,346.93 between October 15, 2015 and October 27, 2016. The Court was advised that at the time of the offenses, Cornick served as the Corporal and supervisor of the Organized Crime and Vice Unit of the Harrisburg Police Department.
Judge Jones scheduled a Presentence Conference for January 29, 2018, at 10:45 a.m. The law provides for a maximum total sentence of 11 years in prison, a fine of $350,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Harrisburg Police Department conducted the investigation that led to the prosecution of Cornick.
# # #
Former Executive of a Tenet Hospital Charged Along with Clinic Owner and Operator in $400 Million Fraud and Bribery SchemeRead the Press Release
A former executive of a Tenet Healthcare Corporation-owned hospital and the owner and operator of an Atlanta-area chain of pre-natal clinics were charged in a superseding indictment that also added additional charges against another former Tenet executive for their alleged roles in an over $400 million fraud and bribery scheme. The indictment alleges that the scheme victimized the United States government, the Georgia and South Carolina Medicaid Programs and patients of Tenet hospitals.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge David J. LeValley of the FBI’s Atlanta Division and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Field Office made the announcement.
Bill Moore, 61, of John’s Creek, Georgia, and Edmundo Cota, 64, of Dunwoody, Georgia, were charged in an indictment returned on September 26, 2017, in the Northern District of Georgia. The indictment charges Moore, who formerly served as the chief executive officer of Atlanta Medical Center, Inc., in Atlanta, Georgia, with one count of conspiracy to defraud the United States and pay and receive health care bribes, two counts of wire fraud, one count of falsifying corporate books and records, and one count of major fraud against the United States. The indictment charges Cota, who served as the president and chief executive officer of Hispanic Medical Management, Inc., which did business as Clinica de la Mama, and later Cota Medical Management Group, Inc., with one count of conspiracy to defraud the United States and pay and receive health care bribes, three counts of receiving health care bribes and three counts of wire fraud.
Additional charges were brought against a third defendant, John Holland, 60, of Dallas, Texas, who was originally charged in January 2017. Holland, who formerly served as a senior vice president of operations for Tenet Healthcare Corporation’s Southern States Region and as chief executive officer of North Fulton Medical Center, Inc., in Roswell, Georgia, is now charged with one count of conspiracy to defraud the United States and to pay and receive health care bribes, three counts of paying health care bribes, five counts of wire fraud, one count of falsifying corporate books and records, and one count of major fraud against the United States.
The indictment alleges, among other things, that from approximately 2000 to approximately 2013, Holland, Moore and Cota engaged in a scheme to defraud the United States, the Georgia and South Carolina Medicaid Programs, and patients who attended Cota’s pre-natal clinics and were referred to Tenet hospitals. The indictment also alleges that Holland and Moore caused the payment of bribes in return for the referral of patients to Tenet hospitals in the Southern States Region, including Atlanta Medical Center, Inc., North Fulton Medical Center, Inc., Spalding Regional Medical Center, Inc. and Hilton Head Hospital. The indictment alleges that Holland and Moore took affirmative steps to conceal the scheme by, among other methods, circumventing internal accounting controls, falsifying Tenet’s books, records and reports, and making, and causing to be made, false representations to the federal government. According to the indictment, these bribes helped Tenet bill the Georgia and South Carolina Medicaid Programs for over $400 million, and Tenet obtained more than $149 million in Medicaid and Medicare funds based on the resulting patient referrals.
The indictment further alleges that, to effectuate the scheme, Holland, among other things, personally made false and fraudulent statements to HHS-OIG in connection with Tenet’s 2006 Corporate Integrity Agreement (the CIA), in which he falsely certified to HHS-OIG that Tenet was in compliance with the terms of participation in the Medicare and Medicaid Programs and the terms of the CIA, when in fact he knew that Tenet was paying for illegal patient referrals. Holland’s certifications were included as part of Tenet’s yearly annual reports that were mailed to the HHS-OIG monitor. During the duration of the CIA, from 2007 through 2011, Tenet received over $10 billion in payments from federal health care programs – money that Tenet would not have received had the company been excluded from participation in federal health care programs, the indictment alleges.
In October 2016, North Fulton Medical Center, Inc., and Atlanta Medical Center, Inc., pleaded guilty to conspiring to defraud the United States and to violate the Anti-Kickback Statute. Tenet subsidiary Tenet HealthSystem Medical Inc. and its subsidiaries (THSM) also entered into a non-prosecution agreement (NPA) with the government at that time. Under the terms of the NPA, THSM and Tenet will avoid prosecution if they, among other requirements, cooperate with the government’s ongoing investigation and enhance their compliance and ethics program and internal controls. Tenet also agreed to retain an independent compliance monitor to address and reduce the risk of any recurrence of violations of health care bribery by any entity owned in whole, or in part, by Tenet. Tenet and its subsidiaries also agreed to pay over $513 million to resolve the criminal charges and civil claims arising from the matter.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Atlanta Field Office, HHS-OIG and the FBI Healthcare Fraud Unit Major Provider Response Team are conducting the investigation. Assistant Chief Sally B. Molloy and Trial Attorneys Angela Adams and Scott Armstrong of the Criminal Division’s Fraud Section are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine locations across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
If you believe you are a victim of this offense, please visit this website or call (888) 549-3945.
Former Employee of City of Glendale Agrees to Plead Guilty to Federal Offense for Embezzling Nearly $610,000 of City FundsRead the Press Release
LOS ANGELES – A former employee of the Glendale City Attorney’s Office has been charged with embezzling $609,764 she illegally obtained by creating documents to make it appear the money was being used to pay civil claims against the city.
Cassandra Alexander, 53, who resides in the Winnetka district of Los Angeles, was charged yesterday with one count of theft from an organization receiving federal funds. In a plea agreement also filed yesterday, Alexander agreed to plead guilty to the felony offense.
Alexander was a claims and litigation support supervisor at the Glendale City Attorney’s Office, where she was responsible for assembling “Settlement Packets” that were used to resolve claims against Glendale for personal injury or property damage. Each Settlement Packet contained approval of the settlement by a member of the City Attorney’s and the City Council, as well as authorization for the city’s Finance Department to issue a check to the claimant.
Alexander, who had unlimited authority to sign documents directing the Finance Department to issue checks, was responsible for picking up the checks and providing them to claimants’ attorneys.
Beginning in July 2001, and continuing through March 2017, Alexander created and submitted fraudulent Settlement Packets that caused the Finance Department to issue 30 checks to her family members and acquaintances, according to the plea agreement. Alexander created bogus settlement agreements and fake minutes of City Council meetings.
After the Finance Department prepared the checks, Alexander took possession of the checks and provided them to the payees, who cashed them and transferred the money to Alexander, she admitted in the plea agreement. The Glendale Police Department seized from Alexander a check for $82,500, which was payable to a family member, before she was able to have it cashed.
Alexander will receive a summons directing her to appear in United States District Court for an arraignment in the coming weeks.
The charge of theft from an organization receiving federal funds carries a statutory maximum penalty of 10 years in federal prison.
This case was investigated by the Federal Bureau of Investigation, which received substantial assistance from the Glendale Police Department and the full cooperation of other city departments.
This case is being prosecuted by Assistant United States Attorney Patricia A. Donahue of the Public Corruption and Civil Rights Section.
Former Correctional Officer Convicted of Violating an Inmate's Civil RightsRead the Press Release
PANAMA CITY, FLORIDA – This afternoon, after a four-day trial, Willie L. Walker, 58, of Lynn Haven, Florida, was convicted in the U.S. District Court of depriving an inmate of his constitutional rights. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In March 2015, Walker, while acting as a correctional officer at the Gulf Correctional Institution, assaulted an inmate, resulting in bodily injury. The government presented evidence that, during his career as a correctional officer, Walker had assaulted at least four inmates. In this case, the testimony demonstrated that Walker sprayed the inmate with a chemical agent and then struck him repeatedly, resulting in a fractured nose and head wound, which required several staples. In an attempt to establish that he had acted in self-defense, Walker planted a homemade weapon or “shank.”
Walker faces a maximum penalty of 10 years in prison.
The sentencing hearing is scheduled for December 14, 2017, at 11:00 a.m. at the United States Courthouse in Panama City.
The case was investigated by the Florida Department of Corrections – Office of Inspector General and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Aine Ahmed.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Carlisle Diner Owner Charged with Income Tax EvasionRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Atef Hussein, age 48, of Hagerstown, Maryland, former owner/operator of the Fairground Diner in Carlisle, Pennsylvania, was charged in a criminal information with income tax evasion.
According to United States Attorney Bruce D. Brandler, the information alleges that Hussein understated income and taxes due, resulting in false income tax returns for tax years 2012 through 2015. The information also alleges that the tax loss for that period totaled $122,003.
The government also filed a plea agreement, including payment of taxes and penalties with the defendant which is subject to approval by the court.
The investigation was conducted by the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorney James T. Clancy is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Former Bureau of Prisons Employee Pleads Guilty to Sex Trafficking A MinorRead the Press Release
SACRAMENTO, Calif. — Charles Carstersen, 54, of Manteca, pleaded guilty today to one count of sex trafficking a minor, United States Attorney Phillip A. Talbert announced.
According to court documents, beginning in April 2014, while employed at the Bureau of Prisons, Carstersen met the 16-year-old victim and engaged in commercial sex acts with her. Between February and March 2015, knowing she was underage, he encouraged her to engage in prostitution, renting hotel rooms for her in the Sacramento area and helping her to post ads online. He also encouraged her to engage in prostitution with at least one other female that he knew. On May 11, 2015, Carstersen was arrested and he has been in custody as a flight risk and a danger to the community since that time.
This case is the product of an investigation by the Federal Bureau of Investigation’s Sacramento Child Exploitation Task Force of which the Sacramento Police Department is a member, the U.S. Department of Justice, Office of the Inspector General, and the Roseville Police Department. Assistant United States Attorney Michele Beckwith is prosecuting the case.
Carstersen is scheduled to be sentenced by Judge Garland E. Burrell Jr. on April 6, 2018. He faces a minimum term of 10 years in prison, and a maximum penalty of up to life in prison and a $250,000 fine. Any sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Former Army Investigator Turned Commercial BeekeeperRead the Press Release
ALEXANDRIA, Va. – Gennaro Mattiaccio, 55, of Stafford was sentenced today to 21 months in prison for his fraudulent receipt of disability benefits from the Social Security Administration (SSA) and making false statements to the SSA.
Mattiaccio, a former federal law enforcement officer with the U.S. Army’s Criminal Investigation Command (“CID”), was convicted by a federal jury on February 24, 2017 of three felonies related to his fraud and false statements. According to court records and evidence presented at trial, Mattiaccio received over $75,000 in Social Security disability benefits from April 2014 through September 2016, despite being gainfully self-employed during that same time period as the owner and sole proprietor of Rock Hill Honey Bee Farms, a commercial beekeeping business. That employment disqualified Mattiaccio from receiving any disability benefits from the SSA.
In support of his fraudulent claim for benefits, Mattiaccio testified falsely under oath to an Administrative Law Judge, and also submitted false and fraudulent documents, including a fake tax return, to the SSA. When he learned that he was under investigation for his fraud, Mattiaccio also attempted to obstruct justice by back-dating the signature card to his business bank account.
In addition to his theft from the SSA, Mattiaccio also carried out a similar disability benefits fraud scheme against the Department of Veterans Affairs (VA). From 2008 through 2016, he collected another approximately $120,000 in disability benefits from the VA that he was not entitled to receive, and which he similarly collected by means of false statements and fraudulent documents submitted to the government about his supposed inability to work.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General; and Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Kimberly Pedersen and Samantha Bateman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-215.
Former Antioch Resident Sentenced to Five Years for Selling Firearms Without A LicenseRead the Press Release
OAKLAND - Dangelo Currie was sentenced today to 60 months in prison for dealing in firearms without a license, announced United States Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down by the Honorable Jon S. Tigar after Currie pleaded guilty to the crime.
Currie, 20, of Antioch, pleaded guilty on July 14, 2017. According to documents filed in the case, between April 14, 2016, and August 2, 2016, Currie sold a substantial amount of firearms and ammunition to undercover agents working with the ATF. Currie admitted he did not have a license to sell the merchandise. On February 16, 2017, a federal grand jury returned a single-count indictment charging Currie with dealing firearms without a license, in violation of 18 U.S.C. § 922(a)(1)(A). On July 14, 2017, Currie pleaded guilty to the charge without a written agreement.
In addition to the prison term, Judge Tigar sentenced the defendant to a three-year period of supervised release. The defendant has been in custody since his arrest in August 2016 and will begin serving the sentence after his sentence on state charges has been completed.
Assistant U.S. Attorney Michelle Bazu is prosecuting the case with the assistance of Julissa Rey and Noble Hughes. The prosecution is the result of an investigation by the Safe Streets Task Force of the ATF.
Foreign National Pleads Guilty to Smuggling Rhinoceros HornRead the Press Release
Michael Hegarty, 40, an Irish national, pled guilty today in U.S. District Court in Miami to fraudulently facilitating the transportation and concealment of a Libation Cup carved from an endangered rhinoceros horn, that was illegally smuggled from the United States to Great Britain.
The guilty plea was announced today by Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division of the Department of Justice, Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Ed Grace, Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service (FWS). The prosecution of Hegarty is part of Operation Crash, a continuing effort by the Special Investigations Unit of the FWS Office of Law Enforcement in coordination with the Department of Justice to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
The Endangered Species Act (ESA), was enacted by Congress to conserve endangered and threatened species and the ecosystems upon which they depend. The ESA makes it unlawful to knowingly deliver, receive, carry, transport, or ship in interstate or foreign commerce, by any means whatsoever and in the course of a commercial activity, endangered species, including rhinoceros; and to sell and offer to sell endangered species of wildlife, including rhinoceros, in interstate and foreign commerce.
According to the Plea Agreement, a Joint Factual Statement filed by the parties, other court records, and statements at the hearing, in mid-April 2012, Hegarty and his co-conspirator joined a Miami resident to attend an auction in Rockingham, North Carolina where the co-conspirator functioned as the bidder on behalf of the three individuals, and made the winning bid for a rhinoceros horn libation cup. Hegarty and his co-conspirator received the rhinoceros horn libation cup in Florida. The co-conspirator then smuggled the libation cup out of the United States in his luggage, and failed to declare the export of the rhino horn libation cup as required by law to the U.S. Fish & Wildlife Service and neither applied for nor obtained the permit required under the Endangered Species Act.
The co-conspirator, along with two other Irish nationals, was arrested by Metropolitan Police in London, while attempting to sell the same rhinoceros horn libation cup to a Hong Kong native. Scientific analysis conducted at the National Fish & Wildlife Service Forensics Laboratory in Ashland, Oregon determine that the Libation Cup was in fact fashioned from the horn of an ESA-protected Great Indian Rhinoceros.
Hegarty was arrested on the charges through an INTERPOL Red Notice and extradited to the United States from Belgium. His co-conspirator was convicted on unrelated charges in England, is currently incarcerated there, and is still wanted to face wildlife trafficking charges in the Southern District of Florida.
“Trafficking in endangered and threatened species is illegal,” said Acting U.S. Attorney Greenberg. “Together with our law enforcement partners, we will strictly enforce the laws that protect our environment and our wildlife. The international community strongly supports these enforcement efforts and is capable of finding and holding accountable these criminals wherever they attempt to hide.”
“By trafficking in wildlife products, such as items made from a rhinoceros horn, smugglers are fueling the illegal trade in endangered wildlife, which may ultimately lead to the species extinction,” said Ed Grace, Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service. “I am proud of our special agents who exposed this complex, international scheme that spanned many international borders. This case showed the direct link between wildlife trafficking and transnational organized crime and reinforced our commitment to continue working with U.S. and international partners to pursue these criminals who profit from the illegal trade in wildlife.”
Hegarty will be sentenced by the Honorable Donald M. Middlebrooks, United States District Court Judge, who accepted the guilty plea. Sentencing will be held Nov. 14, 2017 at 2:20 p.m. Hegarty faces a maximum penalty of up to ten years in prison, followed by a term of supervised release of up to three years, and a maximum fine of $250,000, or up to twice the gross gain.
The investigation is being handled by the FWS Office of Law Enforcement, the U.S. Attorney’s Office for the Southern District of Florida and the Department of Justice’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney Thomas Watts-FitzGerald and Trial Attorney Gary N. Donner of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.