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Monday 14 August 2017
Allentown Man Who Headed-Up A Large-Scale Heroin and Methamphetamine Trafficking Conspiracy Sentenced to 20 Years in PrisonRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert Estes, age 41, of Allentown, Pennsylvania, was sentenced on August 11, 2017, to 20 years’ imprisonment by U.S. District Court Judge Malachy E. Mannion for his role in a heroin and methamphetamine trafficking conspiracy that operated in Carbon County, Pennsylvania, and elsewhere, during 2016.
According to United States Attorney Bruce D. Brandler, Estes previously pleaded guilty and admitted to being a manager and supervisor of the conspiracy that was responsible for distributing between one and three kilograms of heroin (which is equivalent to between 40,000 and 120,000 retail bags of heroin), and between 350 and 500 grams of methamphetamine, in the Carbon County area during early 2016 through June 2016.
Judge Mannion also ordered Estes to serve four years on supervised release following his prison sentence.
Estes was indicted by a federal grand jury in June 2016, as a result of an investigation by the Drug Enforcement Administration (DEA), the Pennsylvania State Police, and Allentown Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Saturday 12 August 2017
Singapore Executives Sentenced for Fraud in International Navy Corruption ScandalRead the Press Release
Two former executives of foreign defense contractor Glenn Defense Marine Asia (GDMA) were sentenced on Friday for conspiring to submit bogus claims and invoices to the U.S. Navy in an effort to win contracts and overcharge the U.S. Navy by tens of millions of dollars as part of a years-long corruption and fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana W. Robinson of the Southern District of California, Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS) made the announcement.
Neil Peterson, 39, and Linda Raja, 44, both of Singapore, were sentenced to 70 and 46 months, respectively, by U.S. District Judge Janis L. Sammartino of the Southern District of California. Both worked as chief deputies for GDMA, which was owned by Leonard Glenn Francis. Peterson served as the vice president for global operations for GDMA and Raja served as GDMA’s general manager for Singapore, Australia and the Pacific Isles.
Both defendants were arrested by authorities in Singapore at the request of the U.S. government and were extradited on Oct. 28, 2016. They each pleaded guilty in May 2017 to one count of conspiracy to defraud the United States with respect to claims.
According to admissions made as part of Peterson’s and Raja’s plea agreements, they and other members of GDMA’s management team created and submitted fraudulent bids that were either entirely fictitious, contained falsified prices supposedly from actual businesses, or fraudulently stated that the business shown on the letterhead could not provide the items or services requested. In this manner, Peterson, Raja and other members of GDMA’s core management team could ensure that GDMA’s quote would be selected by the U.S. Navy as the supposed low bidder. GDMA could thus control and inflate the prices charged to the U.S. Navy without any true, competitive bidding, as required, they admitted.
Peterson and Raja admitted that they and other members of the GDMA management team knowingly created and approved fictitious port authorities with fraudulently inflated port tariff rates, and approved the presentation of such fraudulent documents to the U.S. Navy. GDMA thus charged inflated prices to the U.S. Navy, rather than what GDMA actually paid to the bona fide port authorities.
For example, Peterson and Raja admitted that for the visit of the U.S.S. Bonhomme Richard to Kota Kinabalu, Malaysia, in or about October 2012, under the direction of Peterson and other members of GDMA's core management team, false documents and inflated invoices were presented to the U.S. Navy. The full amount billed to the U.S. Navy for this visit was $1,232,858, of which approximately $877,413 was fraudulently inflated, Peterson and Raja admitted.
Peterson and Raja admitted that losses to the U.S. Navy exceeded $34,800,000 as a result of this scheme.
So far, 17 of 27 defendants charged in the U.S. Navy bribery and fraud scandal have pleaded guilty. All defendants are presumed innocent unless and until convicted beyond a reasonable doubt in a court of law.
The DCIS, NCIS and the Defense Contract Audit Agency are investigating. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and are prosecuting the case. The Criminal Division’s Office of International Affairs provided substantial assistance in this matter.
Joint Statement from United States Attorney’s Office for the Western District of Virginia, Federal Bureau of Investigation and the Civil Rights DivisionRead the Press Release
Acting United States Attorney Rick A. Mountcastle has released the following statement in conjunction with the FBI and DOJ’s Civil Rights Division:
“The Richmond FBI Field Office, the Civil Rights Division, and the US Attorney’s Office for the Western District of Virginia have opened a civil rights investigation into the circumstances of the deadly vehicular incident that occurred earlier Saturday morning. The FBI will collect all available facts and evidence and will ensure that the investigation is conducted in a fair, thorough and impartial manner. As this is an ongoing investigation we are not able to comment further at this time.”
Friday 11 August 2017
Yuba County Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Earnest Marshall Badman, 31, of Marysville, pleaded guilty today to aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in January 2016 and February 2016, Badman executed a scheme to defraud banks by using credit cards and checks and identification documents of others obtained from stolen mail and burglaries.
On February 9, 2016, Badman was arrested after a high speed chase in a stolen vehicle in Colusa County. The vehicle pursuit ended in the backyard of an Arbuckle home. Badman attempted to flee on foot but was arrested. At the time of his arrest, Badman possessed burglary tools, credit cards in the names of others, and stolen mail. He possessed the mail and identity information of over 40 victims and over 15 different access devices and credit cards for fraudulent use.
This case is the product of an investigation of the U.S. Postal Inspection Service with assistance from the Yuba County Sheriff's Office, California Highway Patrol, Butte County Sheriff’s Office, and the Yuba County Probation Department. Assistant U.S. Attorney Michelle Rodriguez is prosecuting the case.
Badman is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on November 3, 2017. Badman faces a minimum mandatory penalty of two years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Woman Charged for Defrauding Donors of over $50,000 by Misrepresenting That She Had Terminal CancerRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Emil Califano, Chief of the Village of Ardsley Police Department, announced today charges against VEDOUTIE HOOBRAJ, a/k/a “Shivonie Deokaran,” for allegedly engaging in a scheme to defraud donors through false representations that she had been diagnosed with terminal leukemia and needed money to pay for her treatments. HOOBRAJ was arrested in Orlando, Florida this morning and will be presented before a Magistrate Judge in the Middle District of Florida.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Vedoutie Hoobraj allegedly concocted an elaborate story about having cancer when she did not, using GoFundMe pages and accepting money raised by a local high school, all supposedly to fund her medical care. Hoobraj even falsified medical records for donors to conceal the fraud. I commend our law enforcement partners for thwarting this allegedly brazen fraud.”
Assistant Director-in-Charge William F. Sweeney Jr. said: “Vedoutie Hoobraj went to great lengths to hide behind her self-fabricated cancer diagnosis. Not only did she allegedly allow the people of her community to hold fundraisers on her behalf, including a local high school football team, but sat idly by as they showered her and her family with their love, money, and unwavering support. To further aggravate the matter, as alleged, she actively peddled her story in an effort to make more money; falsely claimed that she received treatment from legitimate doctors and hospitals; and produced fake test results to support her claims. Hoobraj's alleged crime is not only an injustice to those who were kind enough to help her, but also to those who do truly need the support of their communities and may now be met with suspicion because of Hoobraj’s alleged behavior.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
Beginning in at least about October 2014 and through at least March 2016, in Westchester County, New York, and elsewhere, HOOBRAJ engaged in a scheme that solicited donations through fraudulent representations that she had been diagnosed with terminal cancer and needed money for living and medical expenses.
HOOBRAJ obtained donations from donors through checks and fund transfers to two GoFundMe fundraising websites set up in October 2014 and August 2015 on her behalf. The GoFundMe websites represented, among other things, that HOOBRAJ was diagnosed with leukemia and given eighteen months to live, and that HOOBRAJ’s family was suffering financial burdens from her chemotherapy treatments and other medical and living expenses. HOOBRAJ publicized the sites in online posts and emails, among other means.
As alleged in the Complaint, HOOBRAJ received in excess of $50,000 in donations from over 300 individuals in Ardsley, New York, and elsewhere based on these and other related misrepresentations. Between October 2014 and December 2015, HOOBRAJ transferred a total of approximately $32,600 from an Ohio bank account operated by GoFundMe’s payment processor vendor to HOOBRAJ’s bank account in New York. In or about November 2015, HOOBRAJ deposited two donation checks totaling $16,274 from the Student Activity Fund of Ardsley High School, in Ardsley, New York, representing proceeds of a fundraising event organized in part by a donor (“Individual-1”). HOOBRAJ also deposited other donation checks.
In an interview with a detective at the Ardsley Police Department on or about January 20, 2016, HOOBRAJ stated, among other things, that she had been diagnosed with terminal cancer by a specified doctor at Sloan Kettering Medical Center who died in an earthquake in Nepal in April 2015, was currently being treated by another specified doctor, and had also gone to “Mount Kisco Medical Center” and “Bronx Lebanon Hospital” for treatments. However, as alleged in the Complaint, HOOBRAJ had never been treated by these doctors and medical centers.
In or about March 2016, in an effort to prove that she had cancer, HOOBRAJ used the online messaging platform Facebook Messenger to send Individual-1 a screenshot of HOOBRAJ’s purported laboratory tests from a January 29, 2016, examination at Jacobi Medical Center in the Bronx, New York (“Jacobi”). The results presented by HOOBRAJ appeared to indicate that her hemoglobin, platelet counts, and red blood cell counts were all outside the stated normal ranges. Records obtained from Jacobi as part of this investigation, however, revealed that the document sent by HOOBRAJ was a forgery, and that the actual medical record previously provided by Jacobi to HOOBRAJ stated, “Your labs turned out to show no abnormalities.”
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VEDOUTIE HOOBRAJ, a/k/a “Shivonie Deokaran,” 38, of Orlando, Florida, has been charged in the Complaint with one count of wire fraud, which carries a maximum prison term of 20 years.
Mr. Kim praised the investigative work of the FBI and the Ardsley Police Department. Mr. Kim also thanked the Westchester County District Attorney’s Office for its assistance.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Williamsport Man Charged with Possession of A Firearm by Convicted FelonRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joseph Santore Coleman, Jr., age 36, of Williamsport, Pennsylvania, was indicted on August 10, 2017, by a federal grand jury for possession of a loaded 9mm semi-automatic pistol after being convicted for a felony offense.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Coleman possessed a Bryco Arms, Jennings Nine, 9mm semi- automatic pistol on May 7, 2014.
This matter was investigated by the Federal Bureau of Investigation and prosecution has been assigned to Assistant U.S. Attorney George J. Rocktashel.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Waterloo Man Charged with Unlawful Possession of Firearm and AmmunitionRead the Press Release
Wayne J. Jones, II, 38, from Waterloo, Iowa, has been charged with one count of unlawful possession of a firearm and ammunition as a convicted felon and unlawful drug user. The charge is contained in an Indictment filed August 9, 2017, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about April 12, 2017, Jones possessed a 9mm handgun, 10 rounds of hollow point ammunition, and 49 rounds of 20 gauge shotgun ammunition.
If convicted, Jones faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, a $100 special assessment, and 3 years of supervised release following any imprisonment.
Jones is currently in custody in Kenosha County, Wisconsin, completing service of a sentence imposed there in July of this year based upon his prior violation of terms of probation imposed in that County in 2002 following Jones’ convictions for battery and disorderly conduct.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the Federal Bureau of Investigation.
- file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02058-LRR.
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Washington man sentenced to eight years in prison for traveling across the country with teen to engage her in commercial sexRead the Press Release
A Washington man was sentenced to eight years in prison for transporting a minor across state lines for the purpose of engaging in commercial sex, said Acting U.S. Attorney David A. Sierleja and FBI Special Agent in Charge Stephen D. Anthony.
Tyrell L. Moss, 33, knowingly transported a child identified as T.C. for the purpose of engaging in prostitution. Moss transported T.C. from Washington state to Beachwood by way of California, Idaho, Utah, Colorado and Illinois, with the intent that T.C. would engage in commercial sex acts, according to court documents.
This took place between September and October 14, 2016, according to court documents.
The case was investigated as part of Operation Cross Country by the FBI’s Child Exploitation Task Force, which includes members of the FBI, Cleveland Division of Police, Cuyahoga County Sheriff’s Department, Adult Parole Authority and Cuyahoga Metropolitan Housing Authority Police. It was prosecuted by Assistant U.S. Attorney Bridget M. Brennan, with assistance from the Cuyahoga County Prosecutor’s Office.
Virginia man sentenced to over 19 years in federal prison for role in conspiracy to commit armed robberyRead the Press Release
CHARLESTON, W.Va. – A Virginia man, Jamaa I. Johnson, 36, of Wytheville, was sentenced today to over 19 years in federal prison after being convicted by a federal jury, announced United States Attorney Carol Casto. Johnson was convicted after a nearly three week jury trial in January 2015 for his role in a conspiracy to commit armed home invasions of drug dealers. Johnson and his co-defendant, Darrell Gillespie, were both found guilty of conspiracies to commit armed robbery and to use firearms in crimes of violence, as well as obstruction of justice charges.
The conspiracy involved armed robberies dating back to the fall of 2011 in Pittsburgh. Johnson’s co-defendant, Darrell E. Gillespie, who is still awaiting sentencing, joined by others involved in the conspiracy, traveled to Pittsburgh to rob a drug dealer. After the robbery, the men came back to Charleston to split up marijuana stolen in the robbery. Over the next four months, Johnson, Gillespie, or their co-conspirators, participated in six more robberies in West Virginia and Virginia. All involved firearms, and during a January 18, 2012, robbery in Charleston, the victim was shot in the leg and stabbed.
Johnson was also found guilty of witness tampering for attempting to use his ex-girlfriend to craft a false alibi. His ex-girlfriend testified at trial that Johnson sent her a letter requesting her to “please get this prepared” and “I need you to really remember that trip you took to see me.” He was referring to a fake trip to Richmond, but it was confirmed that trip never happened, and that she drove him instead to Charleston on January 18, 2012, the day of the robbery, so he could destroy evidence.
Gillespie faces a mandatory minimum sentence of 30 years and up to life in federal prison when he is sentenced.
The case was investigated by the Federal Bureau of Investigation, the South Charleston Police Department, and the Charleston Police Department. Assistant United States Attorneys Monica D. Coleman and Meredith George Thomas are in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence and presided over the trial.
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U.S. Attorney’s Office indicts former Avoyelles Correctional Center warden, wife on fraud chargesRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that the former warden for the Avoyelles Correctional Center and his wife were indicted for fraud.
Nathan Burl Cain II, 50, and Tonia Bandy Cain, 42, both of Moreauville, La., were indicted by a federal grand jury on 18 charges. Count one charges conspiracy to commit wire fraud and counts two through 18 charge wire fraud. According to the indictment, Nathan Cain was the warden of Avoyelles Correctional Center located in Cottonport, La., and Tonia Cain served as the manager of the business office of the facility. They are accused of using Louisiana Department of Corrections credit cards to purchase items for personal use while misrepresenting that the items were bought for official use between December of 2012 and January 2016. The defendants are also accused of structuring purchases.
The defendants face up to 20 years in prison, five years supervised release, and a $250,000 fine per count, and forfeiture in the amount of $152,364.69. An arraignment date has not been set.
The FBI and the Louisiana Office of Inspector General conducted the investigation. Assistant U.S. Attorneys John Luke Walker and David J. Ayo are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Two Sentenced for Crack Distribution and Firearms OffensesRead the Press Release
Concord, N.H.—John J. Farley, Acting United States Attorney for the District of New Hampshire, announced that Victor Alvarado, 29, was sentenced to 64 months in prison and Brandin Melendez, 33, was sentenced to 48 months in prison for conspiring to distribute cocaine base, or “crack,” in Manchester in 2016 and for firearms crimes.
According to court documents and statements made at the sentencing hearing, on several occasions in July and August 2016, Alvarado and Melendez sold crack cocaine to an individual working with investigators. On each occasion, Alvarado would arrange the deals and provide the narcotics while Melendez would take the payment. On August 30, 2016, Alvarado and Melendez also sold the same individual a sawed off shotgun.
In December 2016, a federal grand jury returned an indictment against Alvarado and Melendez and investigators obtained search warrants to search their residences. At Alvarado’s residence, investigators recovered three firearms, including a stolen AR-15 model weapon with a high capacity, 30-round magazine.
In April 2017, Alvarado and Melendez each pleaded guilty to conspiracy to distribute controlled substances. Alvarado, who was a previously convicted felon, also pleaded guilty to the illegal possession of a firearm.
In addition to their prison sentences, Alvarado and Melendez were ordered to serve three years of supervised release when they are released from custody.
This case was investigated by the Organized Crime Drug Enforcement Task Force (OCDETF) and the Federal Bureau of Investigation’s Safe Streets Gang Task Force. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Other and state and local authorities involved in the investigation included the Manchester Police Department, the Hudson Police Department, the New Hampshire State Police, the Nashua Police Department, and the New Hampshire Department of Corrections Probation and Parole. Investigators also received the invaluable assistance of DEA-NH/HIDTA. Assistance was also provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Two Riviera Beach Men Charged with Stealing Sea Turtle EggsRead the Press Release
Two Riviera Beach men were arrested and charged with stealing sea turtle eggs from a St. Lucie County beach.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Andrew Aloise, Resident Agent in Charge Florida, U.S. Fish and Wildlife Service (USFWS); and Major Olin Rondeau, South A Regional Commander, Florida Fish and Wildlife Conservation Commission (FWC) made the announcement.
Carl Lawrence Cobb, 60, of Riviera Beach, is charged by indictment with two counts of transporting sea turtle eggs for the purpose of sale, in violation of the Lacey Act, Title 16, United States Code, Sections 3372(a)(1) and 3373(d)(1)(B), and two counts of violating the Endangered Species Act by possessing the eggs, in violation of Title 16, Sections 1538(a)(1)(G) and 1540(b)(1). Raymond Saunders, 50, also of Riviera Beach, is charged by indictment with one count of transporting sea turtle eggs for the purpose of sale and one count of violating the Endangered Species Act by possessing the eggs. If convicted of their respective charges, the defendants face up to five years in prison for each Lacey Act violation and up to twelve months in prison for the Endangered Species Act violations.
According to the court record, on May 5, 2017, a concerned citizen reported to the Florida Fish and Wildlife Conservation Commission that a man was disturbing sea turtle nests on North Hutchinson Island. A law enforcement investigation revealed that Cobb had removed over 200 eggs from two sea turtle nests. On May 24, 2017, law enforcement officials observed Cobb and Saunders remove approximately 469 sea turtle eggs from nests on North Hutchinson Island. Cobb and Saunders were arrested as they were transporting the eggs to Palm Beach County. The recovered eggs were relocated by marine biologists in the hope that some of them will yield hatchlings.
Mr. Greenberg commended the investigative efforts of USFWS and the Fish and Wildlife Conservation Commission. This case is being prosecuted by Special Assistant United States Attorney Ryan Butler and Assistant United States Attorney Daniel E. Funk.
An indictment is only an accusation. A defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
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.
Two Federal Inmates Charged with Possession of WeaponsRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dion Antwain Kinnear, age 29, and Kristian Torres, age 31, both prisoners at United States Penitentiary, Lewisburg (USP Lewisburg), were indicted separately on August 10, 2017, by a federal grand jury for possessing weapons in prison.
According to United States Attorney Bruce D. Brandler, the indictments allege that Kinnear was found in possession of an improvised “shank” during a search conducted on May 27, 2017. Torres was found in possession of multiple “shanks” on June 15, 2017.
The cases were investigated by the Bureau of Prisons Special Investigative Service and the Federal Bureau of Investigation. Assistant United States Attorney Alisan VanFleet is prosecuting the cases.
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.
Both defendants are facing a maximum of five years of incarceration and a $250,000 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.
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Two Albuquerque Residents Sentenced and Another Pleads Guilty to Federal Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 69 of the 104 defendants charged as the result of this investigation have entered guilty pleas and 33 of them have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This week, two Albuquerque residents who were charged as the result of the investigation were sentenced in federal court. Jesse James Davis, 40, was sentenced on Aug. 10, 2017, to 135 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction. Richard Lucero, 37, who was charged in two indictments, also was sentenced on Aug. 10, 2017, to 41 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Another Albuquerque resident, Anthony Barela, 34, pled guilty on Aug. 3, 2017, to a methamphetamine charge under a plea agreement with the U.S. Attorney’s Office.
Davis and his co-defendant, Joshua Bright, 32, were indicted on June 30, 2016, with conspiracy and distributing methamphetamine on June 6, 2016. Bright also was charged with distributing methamphetamine on June 14, 2016. On Feb. 17, 2017, Davis pled guilty to distributing methamphetamine, and admitted selling 115 grams of methamphetamine to an undercover law enforcement agent on June 6, 2016. Bright has entered a plea of not guilty to the indictment and is pending trial.
Lucero and co-defendant Benjamin Marquez, 42, were charged with methamphetamine and heroin trafficking offenses in a five-count indictment filed in July 2016. The indictment charged the two men with conspiring to distribute methamphetamine from May 6, 2016 through June 1, 2016, and distributing methamphetamine in May and June 2016. Marquez pled guilty on May 1, 2017, and is pending sentencing. A second indictment charged Lucero and co-defendants Waldo Nahle, 35, and Abel Perea, 29, with firearms and methamphetamine trafficking offenses. Lucero pled guilty to both indictments on Jan. 5, 2017, and admitted distributing methamphetamine to an undercover law enforcement agent on May 6, 2016 and July 13, 2016. Perea pled guilty on Dec. 27, 2016, and is pending sentencing. Nahle has entered a plea of not guilty to the indictment and is pending trial.
Barela and co-defendants Guajira Maya Lovato, 44, Janet Bowman, 40, and Juan Jose Rivas, 33, were charged by indictment in July 2016, with a methamphetamine trafficking offense. The indictment later was superseded to add a fifth defendant, Maria Citlaly Beltran-Ahumada, 37, and another methamphetamine trafficking charge. The superseding indictment charged the five defendants with conspiring to distribute methamphetamine from June 21, 2016 through Aug. 9, 2016, and with distributing methamphetamine on June 22, 2016. On Aug. 3, 2017, Barela pled guilty to an information charging him with distributing methamphetamine. Lovato and Rivas each pled guilty on July 27, 2017, and are pending sentencing hearings. Beltran Ahumada pled guilty on June 9, 2017, and was sentenced on June 26, 2017 to time served. Bowman has entered a plea of not guilty and is pending trial.
Thirty of the defendants charged as the result of the ATF investigation have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. The case against Davis was prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo; the case against Lucero was prosecuted by Assistant U.S. Attorney Eva Fontanez; and the case against Barela is being prosecuted by Assistant U.S. Attorney Presiliano Torrez.
Twelve Members of the Conservative Vice Lords/Concrete Cartel Street Gang Were Indicted for Federal Racketeering (RICO), Business and Pharmacy Robberies, and Drug TraffickingRead the Press Release
Memphis, TN – Twelve members of the Conservative Vice Lords/Concrete Cartel Street Gang, a nation-wide street gang with its origin and home base in Chicago, Illinois, were charged in a federal indictment for Racketeering (RICO), business and pharmacy robberies and drug trafficking. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
The indictment alleges that the Concrete Cartel and its members operate mainly in Memphis, Shelby County, Tennessee and North Mississippi. Its leadership consists of a regional/southern leader, a state-wide leader, a city-wide leader and community/division leaders in the areas of (Whitehaven, Orange Mound, East Memphis, South Memphis and North Memphis). Within the organization/street gang, there are different areas of responsibilities or roles: Ministers of Command, Chief Violators, Chiefs of Security, Chief Enforcers, Ministers of Literature, Lieutenants and foot soldiers. Members rise to these positions through acts of violence, including but not limited to: shootings, robbing, and drug and human trafficking. The Concrete Cartel encourages robbing businesses, mainly pharmacies, to take opioids and other Schedule II controlled substances to enrich themselves and the membership.
Davante Turner, William Pinkney, Markease Alexander, Nernest Nesby, Lashawn Shannon, Tondwin Lewis, Arterrious McCalleum, Travon Jones, Rickey Bell, Ariq Eric Rayford, Clemeko Dewayne Starks Jr., and Darnell Trevon Jordan are charged with committing multiple acts of business robberies while using firearms. The indictment alleges that on occasion the Concrete Cartel robbed pharmacies and would later distribute and sell the stolen opioids or controlled substances on the streets of Memphis and elsewhere. Along with the RICO charge, the defendants were also indicted for their participation in the following business robberies, using firearms:
On July 18, 2015, Davante Turner and others robbed CVS Pharmacy at 786 N. Germantown Parkway, Memphis, Tennessee. During this robbery, Turner and others took the following drugs: Oxycodone, Fentanyl and Methylphenidate.
On February 15, 2016, Ariq Eric Rayford, Clemeko Dewaye Starks Jr., and Darnell Trevon Jordan robbed Walgreens Pharmacy at 4653 Elvis Presley Blvd., Memphis, Tennessee. Rayford, Starks Jr., and Jordan attempted to take Roxicodone drugs.
On April 30, 2016,
Travon Jones, Nernest Nesby and Arterrious McCalleum robbed Mojo Vapors at 6522 Quince, Memphis, Tennessee; Exxon Mobil Gas Station at 6021 Mt. Moriah, Memphis, Tennessee; and CVS Pharmacy at 6620 Winchester Road, Memphis, Tennessee.
On May 1, 2016,
Travon Jones, Nernest Nesby and Arterrious McCalleum robbed Circle K at 7195 Winchester Road, Memphis, Tennessee, and Exxon at 6455 E. Shelby Drive, Memphis, Tennessee.
On July 22, 2016, Markease Alexander and others robbed CVS Pharmacy at 786 N. Germantown Parkway, Memphis, Tennessee. During the robbery, Alexander and others took the following drugs: Oxycodone, Oxymorphine and Oxymorphone. Lashawn Shannon distributed the drugs for Alexander and others.
On November 1, 2016, Markease Alexander, Ricky Bell and others robbed CVS Pharmacy at 2115 Union Avenue, Memphis, Tennessee. Bell, Alexander and others took the following drugs: Oxycodone and Acetaminophen, Dextroamphetamine, Oxycodone, Methylphenidate, Lisdexamfetamine and Oxycodone Hydrochloride.
On July 5, 2017, Davante Levert Turner, Tondwin Lewis and William Pinkney robbed CVS Pharmacy at 6620 Winchester Road, Memphis, Tennessee. Turner, Lewis and Pinkney attempted to take Roxicodone drugs.
The indictment is the result of an extensive investigation which began in 2015 by federal, state and local law enforcement officials into the Conservative Vice Lords/Concrete Cartel. This investigation entailed the recovery or seizures of thousands of opioids or controlled substances before the defendants distributed the drugs on the streets.
Lawrence J. Laurenzi, Acting U.S. Attorney, Western District of Tennessee, said, "Today’s indictment serves to demonstrate the commitment of our office and our law enforcement partners to curtail the onslaught of business robberies and to eradicate the violent criminal element from the Western District of Tennessee. As we have previously stated, gang activity will not be tolerated."
"Gangs will not run our city. We will continue to weed out the criminal elements that surround gang motivated crimes, and we will fully support our state and federal partners in prosecuting criminals to the fullest extent of the law" said Michael Rallings, Director, Memphis Police Department.
This case was investigated by the FBI’s Safe Street Task Force and the Multi-Agency Gang Unit of the Memphis Police Department and the Shelby County Sheriff’s Office. Assistant U.S. Attorney Kevin Whitmore is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Three More Indicted for Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that three more defendants have been indicted for their roles in a three-months-long conspiracy that included at least 27 armed robberies, culminating in the armed robbery of a Walgreens in Blue Springs, Mo., in which a suspect was fatally shot by law enforcement officers.
Kevin Thompson-Randell, also known as “Kilo Ali,” 22, and Demetrius Nelson, 24, both of Kansas City, Mo., and Frank Garner, Jr., also known as “Fonzi,” 23, of Grandview, Mo., were charged in a 36-count second superseding indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Aug. 9, 2017. That indictment was unsealed and made public today; all of the defendants have been arrested.
The second superseding indictment replaces a superseding indictment that was returned on Aug. 10, 2016, and includes additional charges.
The second superseding indictment contains the original charges against Shannon R. Thomas, 27, of Shawnee, Kan., and Deonte J. Collins-Abbott, 22, and Parrise K. Black, also known as “Kilo,” 25, both of Grandview. Thomas, Collins-Abbott and Black have been in federal custody without bond since their arrests.
The federal indictment alleges that all six co-defendants participated in a conspiracy to commit a series of armed robberies between Jan. 2 and March 24, 2016. According to court documents, conspirators participated in at least 27 armed robberies over a period of less than three months; 17 of those robberies are charged in the indictment.
New Charges Added in the Second Superseding Indictment
In addition to three new co-defendants, the second superseding indictment also contains new charges related to six additional armed robberies.
Thompson-Randell and Thomas are charged together in one count of armed robbery of Moonlight Adult Boutique, 8801 E. Truman Rd., Kansas City, Mo., on Feb. 29, 2016. They are also charged together in one count of brandishing a firearm in furtherance of a crime of violence.
Nelson and Thomas are charged together in four counts of armed robbery. They allegedly robbed Valero Express, 1331 E. Bannister Rd., Kansas City, Mo., on March 9, 2016; Sonic, 4520 Blue Parkway, Kansas City, Mo., on March 9, 2016; World of Wine and Spirits, 1722 W. 39th St., Kansas City, Mo., on March 10, 2016; and Phillips 66, 1509 W. 12th St., Kansas City, Mo., on March 10, 2016. They are also charged together in four counts of brandishing a firearm in furtherance of those crimes.
Thomas is charged with one count of armed robbery of Conoco, 4656 Prospect Ave., Kansas City, Mo., on March 15, 2016, and one count of brandishing a firearm in relation to that crime of violence. According to court documents, a victim was shot during this robbery.
Garner and Thomas are charged together in one count of armed robbery of a Conoco station, 4516 E. 39th St., Kansas City, Mo., on March 15, 2016. They are also charged together in one count of brandishing a firearm in furtherance of a crime of violence. (Thomas was previously charged alone with the Conoco robbery.)
Fatal Shooting During Walgreen’s Robbery
Thomas and Collins-Abbott are charged together with the armed robbery of the Walgreens located at 9th and Duncan in Blue Springs on March 24, 2016. They are also charged together with possessing and brandishing a firearm in relation to that crime. Thomas is also charged with one count of being a felon in possession of a firearm. Thomas allegedly possessed a Springfield Armory semi-automatic pistol.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers were conducting surveillance that day on Thomas and Collins-Abbott as part of the investigation into a series of armed robberies at area businesses.
On March 24, 2016, according to the affidavit, Thomas, Collins-Abbot and Jermon Seals of Shawnee, Kan., confronted a Walgreens employee outside the business and forced the employee inside at gunpoint. Once inside, the affidavit says, one of the robbers placed a firearm to the back of the employee’s head and took money from the front register. The other two robbers went over the pharmacy counter and took prescription grade cough syrup at gunpoint from the pharmacist. They left the business but were confronted by law enforcement officers as they were walking back to the vehicle. They failed to comply with the officers’ commands, according to the affidavit, and turned towards the officers, pointing a gun in their direction. Officers returned fire and Seals was struck in the exchange. Collins-Abbott and Thomas were apprehended by officers after a short foot pursuit.
Previous Charges Continued in the Second Superseding Indictment
Thomas and Collins-Abbott also are charged together in one count of armed robbery of Phillips 66, 8111 E. 87th St., Raytown, Mo., on March 2, 2016. They are also charged together in one count of brandishing a firearm in furtherance of that crime of violdence.
Thomas and Black are charged together in one count of armed robbery of Shell, 3786 Broadway, Kansas City, Mo., on March 20, 2016, and one count of brandishing a firearm in furtherance of that crime of violence.
Collins-Abbot and Black are charged together in two counts of armed robbery and two counts of brandishing a firearm in relation to those crimes. They allegedly robbed QuikTrip, 16501 E. U.S. 40 Hwy., Independence, Mo., on Feb. 3, 2016; and Pour Boys, 2601 Chouteau, North Kansas City, Mo., on Feb. 3, 2016.
Thomas also is charged with one count of armed robbery of Midwest Title Loan, 330 W. 85th St., Kansas City, Mo., on Jan. 19, 2016, and one count of brandishing a firearm in relation to that crime of violence.
Collins-Abbott also is charged with five counts of armed robbery and five counts of possessing and brandishing a firearm in relation to those crimes. Collins-Abbott allegedly robbed Worlds Liquor and Tobacco, 1901 NE Russell Rd., Kansas City, Mo., on March 7, 2016; Conoco, 4516 E. 39th St., Kansas City, Mo., on March 8, 2016; and Dollar General, 5100 Blue Ridge Cutoff, Kansas City, Mo., on March 21, 2016.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorneys Adam Caine and David Raskin. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department, the North Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service.
Three Cuban Nationals Charged with Access Device Fraud, Aggravated Identity Theft, and ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced the Indictment of three Cuban nationals, charging them all with conspiracy to commit access device fraud, and two defendants with access device fraud and aggravated identity theft.
YUSNIEL HERNANDEZ PEREZ, age 32; YADIER ALUIJAS FERNANDEZ, age 30; and HENRY DAVID MARTINEZ, age 21, Cuban nationals who resided in the State of Texas, were charged yesterday with conspiracy to commit access device fraud. PEREZ and FERNANDEZ are both charged with access device fraud and aggravated identity theft.
According to the Indictment, the three defendants traveled to Jefferson Parish in the same car on July 24, 2017. They are all alleged to have used counterfeit cards to make purchases at a local merchant. On that same day, FERNANDEZ is alleged to have hidden approximately 45 counterfeit access devices in a sock hidden on his person. For his part, defendant PEREZ is alleged to have hidden approximately twelve cards in his shoe.
Acting U.S. Attorney Evans reiterated that the Indictment is merely an allegation and that the guilty of the defendant must be proved beyond a reasonable doubt.
If convicted of the charge of conspiracy to commit access device fraud, PEREZ, FERNANDEZ and MARTINEZ face a statutory maximum sentence of five years in prison. If convicted of the charges of access device fraud, PEREZ and FERNANDEZ face a statutory maximum of ten years in prison. If convicted of the charges of aggravated identity theft, PEREZ and FERNANDEZ face a consecutive mandatory term of two years in prison. Each defendant also faces substantial monetary penalties, supervised release, and restitution upon conviction.
Acting U.S. Attorney Evans commended Special Agents of the United States Secret Service and Jefferson Parish Sheriff’s Deputies, who investigated the case. Assistant U.S. Attorney Hayden Brockett is in charge of the prosecution.
Ten Defendants Plead Guilty in $1 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that 10 defendants have pleaded guilty in federal court to charges related to a $1 million conspiracy to distribute at least 30 kilograms of methamphetamine.
Travis Lee Bethel, 46, of Urbana, Mo., pleaded guilty before U.S. Magistrate Judge Robert E. Larson today to his role in the drug-trafficking conspiracy and a related money-laundering conspiracy.
Kenneth Bryant Lake, 56, of Strafford, Mo.; Jake Ian Nixon, 20, and Scott Bryan Sands, 52, both of Springfield, Mo.; and Jerry Lee Brown, 43, of Lebanon, Mo.; also pleaded guilty this week to the drug-trafficking and money-laundering conspiracies. Nixon also pleaded guilty to possessing firearms in furtherance of a drug-trafficking crime.
Kara Rene Baze, 23, of Springfield; Breann Nicole Hall, 25, of Ozark, Mo.; Tara L. Harken, 45, of Marion, Ill.; and Cindy Ann Nevatt, 63, of Gulf Shores, Ala.; each pleaded guilty this week to crossing state lines in aid of racketeering enterprises.
Michelle Vanne Gray, 50, of Springfield, pleaded guilty on Aug. 2, 2017, to maintaining drug-involved premises.
Investigators with the Buchanan County Drug Strike Force, the Springfield, Mo., Police Department and the Drug Enforcement Administration identified Lake as the original head of the organization coordinating vehicle transport shipments of methamphetamine to Springfield for distribution, as well as shipments of cash drug proceeds out of the area. Lake and Sands also coordinated shipments of methamphetamine and drug proceeds by mail and parcel service to and from the Springfield area.
Lake, Bethel, Sands and Brown admitted their involvement in distributing more than five kilograms of methamphetamine and collecting drug proceeds for the methamphetamine that was delivered.
Bethel also provided co-conspirators with salvage title vehicles, which were traded for methamphetamine and/or paid for with drug proceeds. Bethel assisted in repairing the vehicles, again paid for with the proceeds of drug-trafficking.
Nixon admitted his involvement in the distribution of more than 1.5 kilograms of methamphetamine. On July 15, 2015, Nixon was arrested by Springfield police officers for possession of approximately three ounces of methamphetamine and a .32-caliber handgun. Nixon had been purchasing quarter-pound quantities of methamphetamine in Springfield every other day for $3,400.
Nixon was arrested four more times between Jan. 18 and June 9, 2016, for possessing methamphetamine. On three of those occasions, Nixon was also in possession of a firearm.
Brown distributed methamphetamine to numerous people and recruited one of his family members to assist with transporting methamphetamine into the Springfield area.
Conspirators sent shipments of methamphetamine via U.S. Postal Service parcels to Gray’s residence. Gray admitted that she accepted at least three packages at her residence with the agreement to store the packages there until co-conspirators retrieved the packages from her residence. Gray was aware that the packages contained methamphetamine.
Baze, Hall, Harken and Nevatt each admitted that she facilitated the drug-trafficking conspiracy by traveling across state lines. Each of them also admitted that she moved and stored property purchased with drug proceeds or used in the money-laundering and drug-tracking conspiracies, stored drug proceeds, and rented and paid for rooms, cars, or other facilities used in the conspiracies.
Under the terms of their plea agreements, Lake, Bethel, Nixon, Sands and Brown must forfeit to the government up to $1,060,070, which represents the proceeds of drug trafficking based on a conservative average street price of $1,000 per ounce of 90 percent pure methamphetamine and the total conspiracy distribution of at least 30 kilograms of methamphetamine.
Under federal statutes, Bethel is subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life in federal prison without parole. Lake, Sands and Brown are each subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. Nixon is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. Gray is subject to a sentence of up to 20 years in federal prison without parole. Baze, Hall, Harken and Nevatt are each subject to a sentence of up to five years in federal prison without parole.
The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Buchanan County Drug Strike Force, the Buchanan County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Lake Area Narcotics Enforcement Group, the U.S. Postal Inspection Service, the Drug Enforcement Administration and IRS-Criminal Investigation.
Seven Indicted for Drug Conspiracy in Scotland Neck, N.C.Read the Press Release
WILMINGTON The United States Attorney for the Eastern District of North Carolina John Stuart Bruce announced today that alleged members and associates of the Sex, Money, Murder (SMM) Scotland Neck-area Bloods street gang, have been indicted for conspiring to distribute and possessing with the intent to distribute heroin.
The 15-count indictment was returned by a federal grand jury on June 27, 2017. The indictment charges the defendants with conspiracy to distribute and possession with the intent to distribute heroin; distribution and possession with the intent to distribute a quantity of heroin and aiding and abetting; possession with intent to distribute a quantity of heroin; distribution of a quantity of heroin; and felon in possession of a firearm.
The defendants include:
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MARKELL DESETTAN WIGGINS, aka Kell, aka Killa, 31;
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BO’NEKA SARELL McDANIEL, 27;
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REGINALD SAVAGE, aka Whimp, 46;
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COLLIN LEE WHITAKER JR., aka BJ, 23;
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KEVIN DWAYNE CARSWELL, aka K Rock, 30;
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DANTEE BROWN, aka Tay, 35;
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SHANTA VENITA HINES, 27.
With the exception of HINES, who was released on pretrial conditions, all of the defendants charged in the indictment are in custody pending trial.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The investigation of this case was conducted by the Drug Enforcement Administration, Federal Bureau of Investigation, the Tar River Regional Drug Task Force, a multi-agency task force; North Carolina Alcohol Law Enforcement; Edgecombe County Sheriff’s Office; Halifax County Sheriff’s Office; Pinetops Police Department; Scotland Neck Police Department; Tarboro Police Department; Rocky Mount Police Department; and Nash County Sheriff’s Office. The federal prosecution is being handled by Assistant United States Attorney Dena King.
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Santa Fe Man Sentenced for Conviction on Federal False Statements ChargeRead the Press Release
ALBUQUERQUE – Arthur Herlihy, 68, of Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to three years of supervised release for his conviction on making a false statement to a bank. Herlihy was also ordered to perform 100 hours of community service.
Herlihy and co-defendant Bruce Beckner, 54, a U.S. citizen currently residing in Honduras, were charged in a five-count indictment filed on June 24, 2015. The indictment alleged that in 2007, Beckner recruited Herlihy to join him in developing a business plan and securing financing to renovate a truck stop in Deming, N.M. The indictment further alleged fraudulent conduct in the operation of the truck stop, including making false statements to a bank for the purpose of obtaining a business loan.
On Feb. 3, 2017, Herlihy pled guilty to an information charging him with making a false statement to a bank. In entering the guilty plea, Herlihy acknowledged that he previously was employed by a truck stop business in Deming that was owned by several limited liability companies. Herlihy admitted that in February 2010, while employed by the truck stop business, he signed several documents in connection with a loan transaction with 1st New Mexico Bank, including a commercial security agreement that identified the truck stop’s liquor license as part of the collateral for the loan. Herlihy obtained the loan knowing that the truck stop business did not own the liquor license outright, but still owed money to the seller of the license from a transaction that occurred in December 2008. Herlihy made a false statement to the bank when he represented that the liquor license was free and clear of any liens or lawsuits. Herlihy acknowledged that this constituted a false statement to 1st New Mexico Bank because he intended to influence the bank to extend a loan to the truck stop business.
Beckner has yet to be arrested and is considered a fugitive. Charges in indictments and criminal complaints are only accusations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by Homeland Security Investigations, IRS Criminal Investigation and the Special Investigations Division of the New Mexico Office of the Attorney General and is being prosecuted by Assistant U.S. Attorney Sean J. Sullivan.
Santa Ana Pueblo Man Sentenced to 14 Years in Prison for Federal Rape ConvictionRead the Press Release
ALBUQUERQUE – Anthony Montoya, 33, an enrolled member of the Santa Ana Pueblo who resides in Bernalillo, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 168 months in prison followed by 15 years of supervised release for his conviction on sexual abuse charges. Montoya will also be required to register as a sex offender when he completes his prison sentence.
Montoya was arrested on June 20, 2016, on an indictment charging him with sexually abusing two women in Aug. 2014, and sexually abusing a third woman on April 30, 2016. According to the indictment, the victims were physically incapable of declining to participate in the sexual acts. According to the indictment, Montoya committed the crimes on the Santa Ana Pueblo in Sandoval County, N.M.
On March 20, 2017, Montoya pled guilty to two counts of sexual abuse and admitted sexually abusing one woman on Aug. 16, 2014, and sexually abusing another woman on April 30, 2016.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services, the Santa Ana Pueblo Tribal Police Department and the Sandoval County Sheriff’s Office. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Sacramento Man Sentenced to 5.5 Years in Prison for Illegally Manufacturing and Selling Assault RiflesRead the Press Release
SACRAMENTO, Calif. — Luis Cortez-Garcia, 44, of Sacramento, was sentenced today to five and a half years in prison by U.S. District Judge Garland E. Burrell Jr. for unlawful manufacturing and sales of firearms, possession of a machine gun, and possession of a unregistered firearm, U.S. Attorney Phillip A. Talbert announced.
On December 9, 2016, Judge Burrell sentenced Luis Cortez-Garcia’s brother and co‑defendant Emiliano Cortez‑Garcia to six years in prison for unlawful manufacturing and dealing in firearms, possession of a machine gun, and possession of an unregistered firearm.
According to court records, Cortez-Garcia ran a firearm parts business called LCG AR‑15 Parts and Custom Accessories on Florin Road in Sacramento. Through this business, he sold AR-15-style firearms that were manufactured in the metal shop at the rear of the business. Cortez-Garcia did not have a license to manufacture or sell firearms and as an illegal alien and a felon, Cortez-Garcia was prohibited from possessing firearms.
During the investigation, undercover agents and at least one convicted felon purchased manufactured-to-order assault weapons from the defendants. These firearms did not have any manufacturer markings or serial numbers, making them untraceable should they be involved in criminal activity. During a search of the business on October 9, 2013, law enforcement officers seized 312 guns, including multiple fully automatic assault rifles, illegal short-barreled rifles, and silencers.
Most firearm parts are not subject to regulation by ATF and can be bought and sold without reporting the sales and without requiring a background check. According to court documents, the defendants and others involved in the scheme sold the parts necessary to assemble a firearm. The parts included a metal casting of an incomplete lower receiver called a “blank,” which is not considered a firearm by ATF. The blank is eventually converted into a lower receiver using a drill press or automated machine that creates the precise shape and space necessary for the lower receiver to accept the parts that will allow the firing of a projectile. These parts (e.g., the hammer, bolt or breechblock, and firing mechanism) are the internal mechanical parts that combine with a trigger, firing pin, and other parts to form a functioning firearm. Once the blank is milled into a completed lower receiver, it is considered a firearm by statute even if there is no barrel, handle, or trigger, and it is subject to federal regulation.
According to court records, once a customer purchased the firearm parts including a blank lower receiver, the customer was directed to Emiliano Cortez-Garcia who operated the metal shop at the business. Once Emiliano Cortez-Garcia had completed machining the lower receiver, he or Luis Cortez-Garcia would assemble the completed AR-15. Customers paid cash to receive a complete firearm that bore no serial number. No ATF paperwork or background checks were completed. During the course of the investigation, ATF conducted seven undercover purchases of AR-15 firearms.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Department of Justice, Bureau of Firearms with assistance from the Sacramento Police Department, the Sacramento County Sheriff’s Department, and the California Highway Patrol. Assistant U.S. Attorney Justin Lee prosecuted the case.
Putnam County Man Arrested and Charged with Transporting and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that a grand jury has returned an indictment charging Ryan Elton Devore (30, Satsuma) with one count of transporting and two counts of possessing child pornography. He faces a minimum mandatory penalty of 5 years, up to 60 years, in federal prison.
According to the criminal complaint and information presented in court, on July 18, 2017, federal agents and local officers executed a search warrant at Devore’s residence in connection with a child exploitation investigation involving online users of a file sharing program. Agents recovered a custom-built computer tower and a cellphone that belonged to Devore. A preview of the devices revealed that they contained numerous depictions of child pornography. Shortly after, agents located videos of minor children engaged in sexually explicit conduct that had been arranged and maintained in several folders on the computer, at which time Devore was arrested.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security and the Putnam County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Public Corruption Indictment Returned for Bribery of Former Bibb County School District Superintendent Romain DallemandRead the Press Release
The United States Attorney for the Middle District of Georgia, G. F. Peterman, III, announced that an indictment was unsealed today charging:
1. Cliffard Whitby, age 54, Forsyth, Georgia:
- Conspiracy to Pay a Bribe to an Agent of an Organization Receiving Federal Funds;
- Five (5) Counts of Paying a Bribe to an Agent of an Organization Receiving Federal Funds; and
- Conspiracy to Launder the Proceeds of Unlawful Activity
2. Harold Knowles, age 69, Tallahassee, Florida:
- Conspiracy to Pay a Bribe to an Agent of an Organization Receiving Federal Funds;
- Paying a Bribe to an Agent of an Organization Receiving Federal Funds;
- Offering to Pay a Bribe to an Agent of an Organization Receiving Federal Funds; and
- Conspiracy to Launder the Proceeds of Unlawful Activity
3. Central Georgia Partnership for Individual and Community Development, Macon, Georgia:
- Conspiracy to Launder the Proceeds of Unlawful Activity
4. Positiventures Initiative, LLC, Macon, Georgia:
- Conspiracy to Launder the Proceeds of Unlawful Activity
Mr. Whitby was arrested this morning and he is scheduled to make his initial appearance in the United States District Court in Macon this afternoon.
Mr. Knowles was arrested this morning and he is scheduled to make his initial appearance in federal court in Florida this afternoon.
The statutory maximum sentence in federal prison authorized for the bribe conspiracy is five years, for the substantive bribery counts is ten years, and for the money laundering conspiracy is twenty years. The money laundering conspiracy carries a maximum fine of $500,000.00 or twice the value of the property involved in the transaction, whichever is greater. The other charges carry a maximum possible fine of $250,000.00 each.
A copy of the indictment is attached. The indictment is only an allegation of criminal conduct. Each person is presumed innocent until and unless proven guilty in a court of law.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service. Assistant U.S. Attorneys Beth Howard and Danial Bennett are prosecuting the case for the Government with participation and cooperation of Special Assistant U.S. Attorney David McLaughlin from the Georgia Office of the Attorney General.
Providence Plan Finance Director Sentenced for Embezzling $742,190Read the Press Release
PROVIDENCE – Charles F. Denno, 67, of East Providence, a former finance director for the Providence Plan, was sentenced today to 33 months in federal prison for devising and executing a scheme in which he fraudulently converted $742,190.69 of Providence Plan funds for his personal use.
The Providence Plan is a non-profit educational entity, which receives federal, state and private grant funds, including funds from the United States Department of Education and the Bloomberg Family Foundation. These grant funds are to be used to support educational and other programs for adults and children in Rhode Island. Annually, the federal grant funds awarded to the Providence Plan totaled in excess of four million dollars.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Denno to serve 3 years supervised release and to perform 100 hours of community service upon completion of his term of incarceration. Denno was ordered to pay $630,000 restitution to The Providence Plan. He pleaded guilty on March 22, 2017, to wire fraud.
The Federal Sentencing Guidelines range of imprisonment in this matter is 33 – 41 months. The government recommended the court impose a sentence of 33 months in prison.
Denno’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Thomas Utz, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
At the time of his guilty plea, Denno admitted to the court that from November 2012 through July 2016, he used his authority to cause the U.S. Department of Education and the Bloomberg Family foundation to deposit funds into Providence Plan bank accounts, and then fraudulently converted funds to his own accounts and personal use. Denno admitted that he fraudulently prepared and issued Providence Plan checks made payable to CMG Enterprises, an entity he owned. The payments issued to CMG and deposited into a CMG bank account were not authorized and contained a forgery of the authorized check signing official at the Providence Plan. Denno subsequently made multiple withdrawals from the CMG bank account in various forms, including credit card payments, check payments and ATM cash withdrawals at Twin River Casino.
The matter, prosecuted by Assistant U.S. Attorney John P. McAdams, was investigated by the Rhode Island State Police Gaming Enforcement Unit, the U.S. Department of Education Office of Inspector General, and the FBI.
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Pittsburgh Psychiatrist Sentenced to Prison for Health Care Fraud, Illegally Distributing OxycodoneRead the Press Release
PITTSBURGH- A Squirrel Hill psychiatrist has been sentenced in federal court to a year and a day in prison, followed by three years of supervised release including 12 months of community confinement, six months of home detention and 500 hours of community service, and was ordered to pay $13,000 in restitution, on charges of possession with intent to distribute and distribution of Oxycodone, a Schedule II controlled substance, and health care fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge David Stewart Cercone imposed the sentence on Dr. Kenneth M. Stanko, 68, of Pittsburgh, Pennsylvania.
According to information presented to the court, Stanko, a medical doctor, illegally distributed a controlled substance, Oxycodone, for cash. Further, Stanko submitted false claims to be submitted to UPMC Health Plan and AETNA for prescriptions which were outside the usual course of practice and not for a legitimate medical purpose.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation and the Drug Enforcement Administration for conducting the investigation leading to the successful prosecution of Stanko.
Pittsburgh Man Charged with Passing Fake $100 Bills at North Hills Target StoreRead the Press Release
PITTSBURGH – A resident of Pittsburgh has been indicted by a federal grand jury in Pittsburgh on charges of passing and uttering counterfeit money, Acting United States Attorney Soo C. Song announced today.
The eight-count indictment, returned on August 8 and unsealed today, named Peter A. Maiolo, Jr., 42, of Pittsburgh, PA.
According to the indictment, on or about July 6, 2015, July 10, 2015, August 2, 2015, August 18, 2015, August 22, 2015, August 25, 2015, August 30, 2015, and September 7, 2015, Maiolo passed counterfeit $100 Federal Reserve Notes at the Mt. Nebo Target store in the Western District of Pennsylvania.
The law provides for a maximum total sentence of 160 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 offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service 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 Men Indicted on Heroin Trafficking ChargesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tarron Anthony Dennis, age 23, and Warren Jahleel Johnson, age 26, both of Philadelphia, Pennsylvania, were indicted on August 10, 2017, by a federal grand jury for multiple drug trafficking crimes.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Johnson and Dennis are members of a conspiracy engaged in heroin distribution in the Williamsport area since December 2016. The indictment also alleges that Dennis sold heroin to an individual on December 9, 2016, that resulted in the death of that individual.
The charges stem from an investigation by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant U.S. Attorney Geoffrey W. MacArthur is prosecuting this matter.
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 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.
Dennis faces a minimum sentence of 20 years’ imprisonment, with a life imprisonment maximum sentence if convicted of this offense. Johnson faces a minimum 10 years’ imprisonment and maximum life sentence for these offenses. The maximum penalty under federal law is life imprisonment, a term of 3 years’ supervised release following imprisonment, and a $1 million dollar fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Pennsylvania Return Preparer Sentenced to Prison for Stolen Identity Refund FraudRead the Press Release
An Allentown, Pennsylvania, resident was sentenced to 12 months and one day in prison for using stolen IDs to file fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to documents filed with the court, Barbara Gonzalez, 32, worked as a return preparer at MJ & Associates, a business located in Allentown that provided tax preparation, check cashing and other services. Gonzalez conspired with others to obtain IDs of Puerto Rico residents and used them to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking approximately $635,594 in refunds. She directed the IRS to deposit the refunds onto pre-paid debit cards and to mail them to addresses she and her co-conspirators controlled. The fraudulently obtained refund checks were cashed by other co-conspirators, including Jessenia Cordero, who operated MJ & Associates. Cordero was recently sentenced to 42 months in prison.
In addition to the term of prison imposed, U.S. District Judge Edward G. Smith ordered Gonzalez to serve three years of supervised release and to pay $319,610.39 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Matthew J. Kluge of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Pennsylvania Return Preparer Sentenced to Prison for Stolen Identity Refund FraudRead the Press Release
An Allentown, Pennsylvania, resident was sentenced to 12 months and one day in prison for using stolen IDs to file fraudulent tax returns, announced Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Barbara Gonzalez, 32, worked as a return preparer at MJ & Associates, a business located in Allentown that provided tax preparation, check cashing and other services. Gonzalez conspired with others to obtain IDs of Puerto Rico residents and used them to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking approximately $635,594 in refunds. She directed the IRS to deposit the refunds onto pre-paid debit cards and to mail them to addresses she and her co-conspirators controlled. The fraudulently obtained refund checks were cashed by other co-conspirators, including Jessenia Cordero, who operated MJ & Associates. Cordero was recently sentenced to 42 months in prison.
In addition to the term of prison imposed, U.S. District Judge Edward G. Smith ordered Gonzalez to serve three years of supervised release and to pay $319,610.39 in restitution to the IRS.
Acting U.S. Attorney Lappen and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Matthew J. Kluge of the Tax Division, who prosecuted the case.
Palm Harbor Man Sentenced to Prison for Defrauding More Than 1,000 Companies over FEMA ContractsRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Michael Pirolo (48, Palm Harbor) to four years and two months in federal prison for wire fraud. As part of his sentence, the Court also entered a money judgment in the amount of $594,000, the proceeds of the criminal conduct. Pirolo pleaded guilty on April 10, 2017.
According to court documents, Pirolo served as the president of Government Contract Registry, Inc. (“GCR”), doing business as FEMA Contract Registration. He employed telemarketers who, during communications with victim-companies, falsely claimed that, for a fee, GCR would “register” the companies with the Federal Emergency Management Agency (FEMA) to enable them to receive preference in obtaining contracts from FEMA. The GCR telemarketers’ communications were based on instructions and scripts that they had received from Pirolo. In particular, the telemarketers falsely and fraudulently stated that for a one-time fee of $500, the customer would be registered with FEMA, and that this registration would place the customer on a list of preferred vendors. When the need for a vendor arose, the GCR telemarketer falsely stated that FEMA would bypass the contract acquisition process, contact the registered victim-company, and then offer a no-bid contract. At times, Pirolo also instructed GCR telemarketers to go back to victim-companies that had already paid the $500 one-time fee and seek renewal and payment of another fraudulent $500 fee.
To further the scheme, the GCR telemarketers provided victim-companies with an online GCR form that requested the same information as a form on FEMA’s website. FEMA does not charge a fee to companies to complete its form, which assists the agency with market research and does not “register” companies. Completing this form is not part of the United States government’s contract acquisition process. Once GCR telemarketers received the victim-companies’ information, GCR completed and submitted the online FEMA form that then enabled emails to then be sent from FEMA to the victim-companies, giving the appearance that the companies had been “registered.” The FEMA emails gave GCR the appearance of legitimacy.
Approximately 1,200 victim-companies were misled by this scheme, paying GCR at least $604,500.
This case was investigated by the U.S. Department of Homeland Security, Office of Inspector General and the General Services Administration, Office of Inspector General. It was prosecuted by Assistant United States Attorney Adam M. Saltzman.
Owner of Home Health Agency Sentenced to 75 Years in Prison for Involvement in $13 Million Medicare Fraud ConspiracyRead the Press Release
The owner and director of nursing of a Houston home health agency was sentenced today to 75 years in prison for her role in a $13 million Medicare fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region and Special Agent in Charge D. Richard Goss of the Houston Field Office of IRS-Criminal Investigation Division (IRS-CI) made the announcement.
Marie Neba, 53, of Sugarland, Texas, was sentenced by U.S. District Judge Melinda Harmon of the Southern District of Texas. In November 2016, Neba was convicted after a two-week jury trial of one count of conspiracy to commit health care fraud, three counts of health care fraud, one count of conspiracy to pay and receive health care kickbacks, one count of payment and receipt of health care kickbacks, one count of conspiracy to launder monetary instruments and one count of making health care false statements.
According to the evidence presented at trial, from February 2006 through June 2015, Neba and others conspired to defraud Medicare by submitting over $10 million in false and fraudulent claims for home health services to Medicare through Fiango Home Healthcare Inc., owned by Neba and her husband, Ebong Tilong, 53, also of Sugarland, Texas. The trial evidence showed that using the money that Medicare paid for such fraudulent claims, Neba paid illegal kickbacks to patient recruiters for referring Medicare beneficiaries to Fiango for home health services. Neba also paid illegal kickbacks to Medicare beneficiaries for allowing Fiango to bill Medicare using beneficiaries’ Medicare information for home health services that were not medically necessary or not provided, the evidence showed. Neba falsified medical records to make it appear as though the Medicare beneficiaries qualified for and received home health services. Neba also attempted to suborn perjury from a co-defendant in the federal courthouse, the evidence showed.
According to the evidence presented at trial, from February 2006 to June 2015, Neba received more than $13 million from Medicare for home health services that were not medically necessary or not provided to Medicare beneficiaries.
To date, four others have pleaded guilty based on their roles in the fraudulent scheme at Fiango. Nirmal Mazumdar, M.D., the former medical director of Fiango, pleaded guilty to a scheme to commit health care fraud for his role at Fiango. Daisy Carter and Connie Ray Island, two patient recruiters for Fiango, pleaded guilty to conspiracy to commit health care fraud for their roles at Fiango. On August 11, Island was sentenced to 33 months in prison. Mazumdar and Carter are awaiting sentencing. After the first week of trial, Tilong pleaded guilty to one count of conspiracy to commit healthcare fraud, three counts of healthcare fraud, one count of conspiracy to pay and receive healthcare kickbacks, three counts of payment and receipt of healthcare kickbacks, and one count of conspiracy to launder monetary instruments. Tilong is scheduled to be sentenced on October 13.
The case was investigated by the IRS-CI, FBI and HHS-OIG under the supervision of the Fraud Section of the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Trial Attorney William S.W. Chang and Senior Trial Attorney Jonathan T. Baum of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Orono Pharmacy and Owner Agree to Pay $60,000 to Settle Controlled Substances Act CaseRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy today announced that Orono Pharmacy, Inc. and its owner, Ali Aghamoosa, of Orono, have entered into a civil settlement agreement with the United States pursuant to which they will pay $60,000 to resolve allegations that they violated the Controlled Substances Act (“CSA”).
Controlled substances are strictly regulated in the United States because of their potential for abuse and the danger they pose if improperly used. The CSA establishes a closed system of controls over the handling of controlled substances by registrants, including pharmacies. Violations of the CSA concerning dispensing and administering, distribution, recordkeeping, and other related activities can result in civil penalties.
The settlement resolves allegations that, from 2014 through 2016, Orono Pharmacy and Aghamoosa negligently failed to make and maintain complete and accurate records of pharmacy transactions concerning the receipt and dispensation of controlled substances. The Government alleged that Orono Pharmacy and Aghamoosa failed to consistently record when, and in what quantities, controlled substances were received and failed to record sales and dispensations from pharmacy inventory. The Government also alleged that thousands of doses of controlled substances were unaccounted for, a pharmacist diverted controlled substances, and another pharmacist falsified records.
Orono Pharmacy and Aghamoosa admitted no wrongdoing in settling the matter and cooperated fully throughout the investigation.
The case was investigated by the U.S. Drug Enforcement Administration’s Office of Diversion Control. The civil action is docketed United States v. Orono Pharmacy, Inc., et al., 17-cv-00305-GZS (D. Me.).
Orlando Man and Woman Plead Guilty to Copyright Infringement of Microsoft Products and Conspiracy to Commit Wire FraudRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that Robert F. Stout (51) and Kasey N. Riley, a/k/a Kasey Stout (33), both of Windermere, have pleaded guilty to conspiracy to commit wire fraud and copyright infringement relating to the sale of illegal activation keys for Microsoft products. If convicted on all counts, each faces a maximum penalty of 20 years in federal prison. The defendants have also been notified that the United States is seeking a money judgment in the amount of $1,480,227, the proceeds of the charged criminal conduct.
According to court documents, Stout and Riley advertised Microsoft software products for sale online, using a variety of sham business names. They purchased unauthorized activation keys from various websites and provided them, in exchange for PayPal payments, to at least 13,000 customers throughout the United States. They received at least $1.4 million from customers in exchange for providing them with the unauthorized, and often invalid, activation keys. Even after receiving customer complaints that specific activation keys were not functioning properly, Stout and Riley continued to sell them. For example, between September 2013 and June 2014, Stout and Riley sold one specific activation key approximately 880 times.
The Better Business Bureau received at least 140 complaints from customers who purchased the unauthorized software from the sham businesses. Over the course of two years, Stout and Riley also received – and ignored at least four warnings to stop from Microsoft.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Albany Field Office of the Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of Principal Legal Advisor, ICE, in the Middle District of Florida, and Assistant United States Attorney Wayne A. Myers from the Northern District of New York.
Ohio woman admits to trafficking heroin and cocaineRead the Press Release
WHEELING, WEST VIRGINIA – An East Liverpool woman pled guilty to heroin and cocaine trafficking, Acting United States Attorney Betsy Steinfeld Jividen announced.
Michelle Green, age 48, pled guilty to one count of “Distribution of Heroin within 1,000 Feet of a Protected Location.” Green admitted to distributing heroin near Allison Elementary School in Hancock County. The crime occurred in March 2017.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Hancock/Brooke/Weirton Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.Norton Doctor Pleads Guilty to Federal Drug ChargeRead the Press Release
Abingdon, VIRGINIA – A Norton, Virginia physician who specialized in urology pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon to a federal drug distribution charge, Acting United States Attorney Rick A. Mountcastle, Virginia Attorney General Mark Herring and Karl C. Colder, Special Agent in Charge of the DEA’s Washington Field Office announced.
Felix Eugene Shepard, Jr., 56, pled guilty yesterday to one count of distributing oxycodone, a schedule II controlled substance. A sentencing hearing has been scheduled for November 1, 2017 at 10:30 a.m. in U.S. District Court in Big Stone Gap.
According to evidence presented to the court at yesterday’s guilty plea by Special Assistant United States Attorney Suzanne Kerney-Quillen, Shepard admitted to writing 47 prescriptions for oxycodone to a patient he was involved in a sexual relationship with. Shepard admitted to the Virginia Board of Medicine that the narcotic prescriptions were written to the patient outside of a bona fide doctor-patient relationship. Shepard continuously prescribed narcotic medications to the patient over an extended period without performing adequate physical examinations, evaluations, or diagnostic testing, for conditions that were outside the scope of his urological practice. In a statement Shepard made to an investigator from the Virginia Board of Medicine, he expressed concern regarding the amount of oxycodone he had prescribed the patient and said the amounts were indicative of addiction. However, Shepard took no action to address the patient’s possible addiction and/or diversion of the oxycodone he prescribed the patient. Shepard prescribed the patient over 2,000 dose units of oxycodone, yet the patient’s file contained few notes or records concerning treatment or the reason the prescriptions were written.
The investigation of the case was conducted by the Drug Enforcement Administration-Tactical Diversion Squad. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Nicaraguan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Nicaraguan national was indicted yesterday in federal court in Boston on a federal immigration charge.
Alberto Jose Mora-Hurtado, 43, was indicted on one count of unlawful reentry of a deported alien.
According to court documents, law enforcement officers in Chelsea encountered Mora-Hurtado on July 24, 2017, and determined him to be illegally present in the United States. Mora-Hurtado was previously deported on Sept. 1, 2010.
Mora-Hurtado faces a sentence of no greater than two years in prison, up to one year of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Man Sentenced to over 17 Years Imprisonment on Firearms ChargeRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that KERMERIC JOHNSON, age 34, of New Orleans, was sentenced yesterday after previously pleading guilty to conspiracy to use a firearm in furtherance of a drug trafficking crime and possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Court Judge Lance M. Africk sentenced JOHNSON to 215 months of incarceration, to be followed by 5 years of supervised release.
According to court documents, in October 2015, JOHNSON received a jail phone call from a local heroin dealer and co-conspirator, KEITH FOSTER, wherein FOSTER informed JOHNSON that a confidential informant had caused him and a second co-conspirator to be arrested. Foster then told JOHNSON where to locate a firearm and instructed JOHNSON to “take care” of the informant. JOHNSON agreed to do so and in subsequent jail calls, stated that he was attempting to locate the informant.
On October 29, 2015, St. Bernard Parish Sheriff’s Office deputies surveilled JOHNSON’s residence, and observed JOHNSON and an unknown male, exit the residence. Deputies observed JOHNSON carrying two items, one wrapped in a blue shirt, and the other in a red blanket. JOHNSON placed both items inside the trunk of a vehicle before he and the other male drove away. Deputies conducted a traffic stop and obtained a search warrant for the vehicle. In the trunk of the vehicle, deputies found a Smith and Wesson, 9mm caliber semi-automatic handgun wrapped in the shirt and a Marlin Model Glenfield 65, .22 caliber rifle, wrapped in the blanket.
FOSTER pled guilty and is scheduled to be sentenced on August 24, 2017.
Acting U.S. Attorney Evans praised the work of the ATF New Orleans Division Office, St. Bernard Parish Sheriff’s Office, and New Orleans Police Department in investigating this matter. Assistant United States Attorney Nolan D. Paige is in charge of the prosecution.
New Hampshire Man Sentenced to 10 Years for Bank RobberiesRead the Press Release
CONCORD, N.H. - Acting U.S. Attorney John J. Farley announced that Michael Giles, 41, was sentenced today to 10 years in federal prison after committing three bank robberies and attempting to rob a fourth bank.
According to documents filed with the court and statements made at today’s sentencing hearing, on November 23, 2016, Giles robbed a TD Bank branch located at 70 Bay Street in Manchester, and on November 27, 2016, he robbed a TD Bank branch at1255 South Willow Street in Manchester. Giles was arrested by the Manchester Police on November 27, 2016, near the bank shortly after the robbery when the motor scooter Giles was riding failed to start. The police recovered the robbery proceeds from Giles.
Giles’ arrest led police to link him to the November 23, 2016, robbery of the TD Bank; the January 22, 2016, robbery of the Citizens Bank located at 1283 Hooksett Road in Hooksett; and the January 22, 2016, attempted robbery of the Citizens Bank located at 1550 Elm Street in Manchester. Images captured by the bank’s surveillance system definitively identified Giles as the robber.
The Manchester Police Department and the Hooksett Police Department led the investigations into the robberies in Manchester and Hooksett. The FBI assisted in the identification and prosecution of Giles. This case is being prosecuted by Assistant United States Attorney Don Feith.
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Nassau County Man Indicted for Multiple Child Pornography OffensesRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces today the return of an indictment charging Charles Cory Thornton (36, Yulee) with production and attempted production of child pornography; receipt, transportation, and attempted transportation of child pornography; and possession of child pornography. He faces potential cumulative penalties of not less than 45 years, up to 140 years, in federal prison, and a potential life term of supervision. Thornton was arrested on July 28, 2017, and has been detained pending trial.
According to the criminal complaint and information provided in court, on July 20, 2017, FBI agents and local officers executed a search warrant at Thornton’s residence based on suspected online child exploitation activity. Thornton was not at home, but he was located and interviewed later that day at Naval Air Station Jacksonville where he worked as a machinist. During an interview, Thornton admitted that he had been searching for child pornography for several years using a file sharing program, that he knew that other users were able to download images and videos from his computer, and that he was a “pedophile” and was sexually attracted to children. In subsequent interviews, Thornton admitted that he had used a small camera hidden in a digital clock in a bathroom to surreptitiously film videos of children during 2008 and 2009. Agents recovered this camera from Thornton’s home. A search of his electronic media revealed numerous images of at least two children in various stages of undress in a bathroom taken from several different vantage points, as well as images of Thornton setting up the hidden camera.
This case was investigated by the Federal Bureau of Investigation, the Nassau County Sheriff’s Office, and the Columbia County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mobile County Man Sentenced to 18 Months for Possession with Intent to Distribute 25.66 Kilograms of MarijuanaRead the Press Release
The Acting United States Attorney Steve Butler announces that Collie Bo Young Evans, Jr, a 34 year old, resident of Eight Mile, Alabama was sentenced today to 18 months incarceration followed by three years of supervised release for possession with intent to distribute 25.66 kilograms of marijuana.
On July 20, 2017, Mr. Evans pled guilty to possession with intent to distribute 25.66 kilograms of marijuana. Evans intended to sell the marijuana for $48,000.00 during an undercover sting operation. He was arrested when he arrived at the buy location in a Camry with two large garbage bags filled with 58 individually packaged bags of marijuana and $1,081 in U.S. Currency in his front pocket.
The Mobile, Alabama Police Department investigated the case and presented it to the United States Attorney's Office for prosecution. Assistant United States Attorney, Gina S. Vann was the prosecutor assigned to the case.
Mexican Citizen Sentenced for Methamphetamine OffensesRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Armando Lozano, 42, of Long Beach, California, was sentenced to 60 months’ imprisonment on August 11, 2017, for Conspiracy to Distribute Methamphetamine and Possession with Intent to Distribute Methamphetamine. After release from prison, Lozano will be placed on four years of supervised release. Lozano was also fined $200 and ordered to pay a $200 special assessment.
At his change of plea hearing on April 25, 2017, Lozano admitted that he conspired with others to mail methamphetamine from California to a residence in Fairview Heights, Illinois on several occasions. Lozano also admitted to possessing the methamphetamine with the intent to distribute.
Co-defendant Shannon Escobedo, a/k/a "Shannon Lozano," was also charged in the indictment. Escobedo has not appeared before the Court. If anyone has knowledge of Shannon Escobedo’s whereabouts, please contact the United States Marshals Service.
This investigation was conducted by the United States Postal Inspection Service.
Manchester Man Pleads Guilty to Participating in Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced today that Muharem Causevic, age 25, of Manchester, New Hampshire, pleaded guilty to conspiracy to possess with the intent to distribute fentanyl.
Court documents and statements in court showed that on April 1, 2016, law enforcement officers conducted a traffic stop in Manchester of a vehicle in which Muharem Causevic was a passenger. A search of the vehicle resulted in the seizure of approximately 244 grams of fentanyl and $1,200 cash.
The operator of the vehicle, Almir Causevic, is scheduled to plead guilty to the drug conspiracy charge on August 15, 2017.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to target individuals who are responsible for the distribution of large quantities of fentanyl in New Hampshire,” said Acting U.S. Attorney Farley. “While those who suffer from addiction need access to treatment, those who seek to profit from the distribution of this deadly drug will be prosecuted aggressively. I commend the work of the law enforcement officers who located and seized this significant amount of fentanyl.”
Muharem Causevic’s sentencing is scheduled for November 28, 2017. As a result of his conviction, he may also face deportation proceedings at the conclusion of his federal prison sentence.
The investigation was conducted by the United States Drug Enforcement Administration, Bedford Resident Office, Bedford, New Hampshire and the Manchester, New Hampshire Police Department. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Local Tortilla Company and Four Leaders Convicted and Sentenced on Charges Relating to the Employment of Illegal AliensRead the Press Release
HOUSTON – La Espiga De Oro (Espiga) forfeited $1 million as a result of a felony conviction of conspiracy to induce and encourage unlawful immigration through a pattern and practice of hiring and employing illegal aliens at the tortilla factory, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). Owners Alfredo Sosa Lira, 72, his wife Lydia Botello-Lira, 68, their daughter Lydia Lira, 25, and night manager Roberto Guerra, 45, all of Houston, pleaded guilty to misdemeanor violations associated with their continued employment of undocumented aliens between October 2011 and August 2015.
“Employers who knowingly hire immigrants with fraudulent or suspect documents face serious consequences under the law,” said Martinez. “This company violated the law by allowing more than half of its employees to work as undocumented immigrants. The $1 million forfeiture will help pay for the investigation and assist immigration authorities in their continued pursuit of employers who engage in similar conduct. Enforcement of our immigration laws is serious business and employers must only hire those with legitimate documentation to demonstrate they are legally in the United States.”
Espiga has been in operation since 1977 and is located on the 1200 block of 15th Street in the Heights in Houston. The company manufactures tortillas for distribution to restaurants and businesses throughout Texas, Louisiana and Colorado.
A series of complaints about the company’s hiring practices between 2008 and 2010 led to the HSI investigation. An undercover operation later led to evidence that the company knowingly hired aliens not authorized to work in the United States. In some instances, the company knew that aliens used fraudulent documents to secure employment. The illegal immigrants were from Mexico, Guatemala and El Salvador.
“Those who think that they can build their businesses by taking advantage of vulnerable individuals will ultimately see their day in court,” said Dawson. “Today’s plea shows that companies will be held accountable for violating our nation’s laws.”
HSI executed a search warrant at the company on Aug. 4, 2015, which led to the discovery of 10 illegal aliens working there as well as evidence demonstrating that 55% of their employees were not authorized by law to work at the factory. One long-term employee that the company knew to be employed illegally was injured on the job and received a settlement under her true name after using an alias for more than six years. The company owners and managers continued to employ this alien knowing that she was illegally in the United States.
Following the search warrant, the company was charged by criminal complaint and began cooperating with HSI and the U.S. Attorney’s Office to revise their hiring practices and implement new procedures to prevent future violations of federal law.
The company paid $1 million, representing an amount that at least equals the value of property used to facilitate the crime, the value of wages paid to the unauthorized work force and the value of products manufactured and services provided by the illegal workforce during the conspiracy. This money will go directly to immigration authorities to assist them with their future enforcement efforts.
U.S. District Judge Gray Miller accepted the company’s plea as well as that of the owners/managers. Alfredo Lira, Botello-Lira, Lydia Lira and Guerra were sentenced to time served – the 18 months they were forced to serve on court-imposed supervised release during the course of this prosecution. The company itself will be on probation for a term of 12 months.
The Occupational Safety and Health Administration (OSHA) also had actions against Espiga for labor-related violations. OSHA settled with Espiga on Aug. 23, 2016, with Espiga paying $85,360 and Espiga must correct the hazards that OSHA had identified. There are also provisions in that agreement requiring Espiga to protect the employees while the hazards are being addressed.
HSI conducted the investigation. Assistant U.S. Attorneys Julie Searle and Edward Gallagher prosecuted this case.
Lead Defendants in A Rochester-Based Heroin Trafficking Conspiracy Sentenced to 14 Years in PrisonRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of ANTONIO JERMAINE SNELL, a/k/a “Fatty” or “Lord,” 36, for leading a heroin distribution conspiracy based in southern Minnesota that resulted in two overdose deaths. ANTONIO SNELL, who was charged along with four additional co-defendants on June 14, 2016, pleaded guilty to Count 1 of the indictment. ANTONIO SNELL was sentenced on August 9, 2017, before Senior Judge Michael J. Davis in United States District Court in Minneapolis, Minn. His half-brother, MELVIN HUNTER, was sentenced on August 10, 2017. Both defendants were sentenced to 168 months in prison.
“These defendants brought large amounts of heroin from Chicago to southern Minnesota and sold it for $200 a gram,” said Assistant U.S. Attorney Jeffrey Paulsen. “Even after two of their customers died from heroin overdoses, the defendants continued dealing these dangerous drugs. The imposed sentences appropriately reflect the defendants’ callous disregard for human life.”
According to the defendants’ guilty pleas and documents filed in court, from January 2013 through June 2016, ANTONIO SNELL, the leader of the organization, and co-defendants RANDLE SNELL, MELVIN HUNTER, DARRELL SMITH, and ERNEST THOMAS, ran a heroin distribution conspiracy in and around the Rochester, Minnesota area. Members of the conspiracy recruited other individuals to act as sub-distributers or runners and used their houses to process and store drugs. In addition to the organization’s widespread drug dealing activity, heroin sold by the conspiracy was linked to two heroin overdose deaths in Austin, Minnesota. According to testimony at a sentencing hearing held on July 18, 2017, HUNTER supplied the heroin that killed Tyler Burkey, 23, on December 18, 2015, and Jordan Jensen, 20, on March 27, 2016. In sentencing HUNTER, Judge Michael Davis stated, “you were selling poison . . . and it caused death.”
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Rochester Police Department, the Austin Police Department, and the Southeast MN Violent Crimes Enforcement Team.
This case was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.
Defendant Information:
ANTONIO JERMAINE SNELL, a/k/a “Fatty” or “Lord,” 36
Albert Lea, Minn.
Convicted:
- Conspiracy to Distribute Heroin, 1 count
Sentenced:
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168 months in prison
- Five years of supervised release
RANDLE SNELL, a/k/a “Pee Wee,” 27
Dolton, Ill.
Convicted:
- Conspiracy to Distribute Heroin, 1 count
Sentenced:
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92 months in prison
- Five years of supervised release
MELVIN HUNTER, a/k/a “Mello,” 23
Chicago, Ill.
Convicted:
- Conspiracy to Distribute Heroin, 1 count
Sentenced:
-
168 months in prison
- Five years of supervised release
DARRELL LENARDO SMITH, a/k/a “Duke,” 44
Rochester, Minn.
Convicted:
- Conspiracy to Distribute Heroin, 1 count
Sentenced:
-
84 months in prison
- Five years of supervised release
ERNEST JERELLE THOMAS, a/k/a “Rel Rel,” 38
Rochester, Minn.
Convicted:
- Conspiracy to Distribute Heroin, 1 count
Sentenced:
-
77 months in prison
-
Five years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Jay E. Town Sworn in as U.S. Attorney for Northern District of AlabamaRead the Press Release
BIRMINGHAM – U.S. Attorney Jay E. Town began work today in the Northern District of Alabama after taking his oath of office from Chief U.S. District Court Judge Karon O. Bowdre.
“I am incredibly proud to inherit an extraordinarily capable and competent office with such great potential,” Town said. “The Northern District already is endowed with a full spectrum of law-enforcement of sincere mettle and great devotion. We are all eager to undertake the worthy cause of the ambitious priorities of the Attorney General and this administration.”
Town is one of the first three U.S. Attorneys nominated by President Donald J. Trump to be confirmed by the U.S. Senate.
A former judge advocate in the U.S. Marine Corps, Town comes to the U.S. Attorney’s Office from a senior prosecutor’s role in the Madison County District Attorney’s Office in Huntsville, where he lives. Town worked as an assistant district attorney in the Madison County office from 2005 until the Senate confirmed his appointment as U.S. Attorney in July.
Before moving to Alabama, he was outside counsel at a large firm in New Jersey focused on commercial defense of major pharmaceutical, commercial and surety companies involved in litigation with federal agencies.
Town served in the Marine Corps for 12 years and was honorably discharged in 2008, attaining the rank of major. He has remained committed to veterans’ issues and was instrumental in forming the Madison County Veterans Court, one of the first such diversionary courts in Alabama dedicated to the physical and mental health needs of veterans in the criminal justice system.
He has served on several charitable boards, to include the Congressional Medal of Honor Foundation, a national organization promoting educational, patriotic and veterans’ initiatives directed by the living Medal of Honor recipients. He also serves as a director for America’s Warrior Partnership, which is a national organization that empowers communities to empower veterans through community integration. The National Society of the Daughters of the American Revolution awarded Town the Medal of Honor for his many charitable activities.
Town has taught as an adjunct professor at the University of Alabama-Huntsville in the Department of Political Science with the curriculum focused on executive war powers and the Geneva Conventions.
He earned a bachelor’s degree in Government & International Relations from the University of Notre Dame in 1995 and received his Juris Doctor from the Seton Hall University School of Law in 1998.
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Jason Galanis Sentenced to More Than 14 Years in Prison for Defrauding Tribal Entity and Pension Funds of Tens of Millions of DollarsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JASON GALANIS was sentenced today by the Honorable Ronnie Abrams to 173 months for defrauding a Native American tribal entity and numerous pension fund investors of tens of millions of dollars in connection with the issuance of bonds by the tribal entity.
Acting U.S. Attorney Joon H. Kim said: “In a brazen securities scheme designed to enrich themselves at the expense of everyone else, Jason Galanis and his co-conspirators cheated both their tribal clients as well as the investing public. After defrauding a Native American tribe into issuing bonds, Jason Galanis and his cohorts sold the illiquid bonds to unwitting pension funds, and then stole the proceeds for themselves. For his role in this campaign of theft and deception, Jason Galanis will now spend over 14 years in federal prison.”
According to the allegations contained in the Indictment filed against JASON GALANIS and his co-conspirators and statements made in related court filings and proceedings[1]:
From March 2014 through April 2016, JASON GALANIS and others engaged in a fraudulent scheme to misappropriate the proceeds of bonds issued by the Wakpamni Lake Community Corporation (“WLCC”), a Native American tribal entity (the “Tribal Bonds”), and to use funds in the accounts of clients of asset management firms controlled by JASON GALANIS and others to purchase the Tribal Bonds, which the clients were then unable to redeem or sell because the bonds were illiquid and lacked a ready secondary market.
Documents governing the Tribal Bonds specified that an investment manager would invest the proceeds of the Tribal Bonds in investments that would generate annuity payments sufficient to pay interest on the Tribal Bonds and provide funds to the WLCC to be used for tribal economic development purposes. In fact, none of the proceeds of the Tribal Bonds were turned over to the investment manager specified in the closing documents. Instead, significant portions of the proceeds were misappropriated by JASON GALANIS and his co-defendants for their own personal use.
Specifically, the proceeds of the Tribal Bonds were deposited into a bank account in the name of Wealth Assurance Private Client Corporation (“WAPCC”). More than $38 million from the WAPCC account to an account controlled by JASON GALANIS, who then misappropriated more than $8.5 million of the proceeds for his personal use, including for expenses associated with his home, jewelry and clothing purchases, travel and entertainment, and restaurant meals.
There was no ready secondary market for the Tribal Bonds. Nonetheless, without prior notice, JASON GALANIS directed others to use funds belonging to clients of two related investment advisers, Hughes Capital Management, Inc. (“Hughes”) and Atlantic Asset Management, LLC (“Atlantic”) to purchase the Tribal Bonds, even though JASON GALANIS and others were well aware that material facts about the Tribal Bonds had been withheld from clients in whose accounts they were placed, including the fact that the Tribal Bond purchases fell outside the investment parameters set forth in the investment advisory contracts of certain Hughes clients and of the Atlantic pooled investment vehicle in which the Tribal Bonds were purchased. When Hughes and Atlantic clients learned about the purchase of the Tribal Bonds in their accounts, several of them demanded that the Tribal Bonds be sold. However, because there was no ready secondary market for the Tribal Bonds, no Tribal Bonds have been sold from any Hughes or Atlantic client accounts. In addition, JASON GALANIS and his co-conspirators failed to apprise clients of Hughes and Atlantic regarding substantial conflicts of interest with respect to the issuance and placement of the Tribal Bonds before the Tribal Bonds were purchased on these clients’ behalf.
In addition, a portion of the misappropriated proceeds was recycled and provided by JASON GALANIS to entities affiliated with co-conspirators in order to enable the purchase of subsequent Tribal Bonds issued by the WLCC. As a result of the use of recycled proceeds to purchase additional issuances of Tribal Bonds, the face amount of Tribal Bonds outstanding increased and the amount of interest payable by the WLCC increased, but the actual bond proceeds available for investment on behalf of the WLCC did not increase.
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In addition to the prison term, JASON GALANIS, 47, was sentenced to three years of supervised release. GALANIS was also ordered to forfeit $43,277,436 and to make restitution in the amount of $43,785,176.
Trial with respect to the remaining defendants is scheduled to begin on February 5, 2018, before the Honorable Ronnie Abrams.
This conviction represents JASON GALANIS’s second conviction in this District in the past year. On February 15, 2017, GALANIS was sentenced by the Honorable P. Kevin Castel to 135 months in prison in connection with his participation in a scheme to manipulate the market for Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, and to defraud the shareholders of that company.
Mr. Kim praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Brian Blais, Aimee Hector, and Andrea Griswold are in charge of the prosecution.
[1] As for the defendants who have not pled guilty, the description of the charges set forth herein constitute only allegations.
High Ranking Los Zetas Plaza Boss Heads to Federal Prison for Multi-Year Drug ConspiracyRead the Press Release
HOUSTON – Jose Manuel Saldivar-Farias aka “Z-31” or “El Borrado” has been ordered to federal prison for his role in a seven-year conspiracy that resulted in an estimated 40,000 kilograms of marijuana imported into the United States from Mexico, announced Acting U.S. Attorney Abe Martinez. Saldivar-Farias, 29, of Nueva Ciudad Guerrero, Tamaulipas, Mexico, entered a guilty plea July 26, 2017, and admitted he and his co-conspirators coordinated the importation multi-kilogram loads of marijuana on a monthly basis.
Today, U.S. District Judge Melinda Harmon formally accepted the plea and imposed a 30-year term of imprisonment.
Saldivar-Farias was initially arrested on immigration charges related to his illegal presence in the U.S. in March 2015.
In early 2015, Pedro Perez-Ocampo, 39, of Estado de Guerrero, Mexico, and Osiel Hernandez-Martinez, 29, of Nueva Ciudad Guerrero, Tamaulipas, Mexico, had obtained permission from Saldivar-Farias and paid him the “piso” or “tax” to transport approximately one ton of marijuana from Nueva Ciudad Guerrero, Tamaulipas, Mexico, into the United States across Falcon Lake by boat. On the night of March 12, 2015, they were at the Lake’s shore preparing to load the marijuana onto boats when they encountered Saldivar-Farias. He was fleeing from the Mexican military as they were attempting to capture him. Saldivar-Farias jumped into Hernandez-Martinez’s boat and ordered him to take him across to the United States.
While crossing Falcon Lake, Saldivar-Farias instructed everyone in the boat to lie about his identity in the event they were apprehended, to deny association with the Zetas and to tell U.S. authorities that he was “Carlos Cruz-Jimenez.” Shortly after crossing the lake, law enforcement apprehended the men. At that time, Saldivar-Farias identified himself as “Carlos Cruz-Jimenez” and claimed he traveled to the United States to find employment.
Today, Saldivar-Farias admitted his true identity was Jose Manuel Saldivar-Farias and that he was a Zeta plaza boss and then regional commander of the northern region of Mexico to include the states of Coahuilla, Taumalipas and Nuevo Leon, Mexico, as well as Zapata, Texas. As such, he was in charge of all narcotics moving through the area. Throughout the conspiracy, Saldivar-Farias and other Zeta members and associates, secured, maintained and regulated the transportation routes used to import marijuana from Mexico to the United States across Falcon Lake. Saldivar-Farias charged and collected a “piso” or “tax” for permission to store and transport marijuana and other controlled substances through the transportation routes and areas he controlled. Individuals who did not pay the “piso” or “tax” faced a potential consequence and potentially would be threatened, beaten, kidnapped, tortured or murdered.
To date, 18 defendants have been indicted for their roles in the conspiracy. Fourteen have been convicted, while the remaining four are fugitives.
The FBI and Border Patrol conducted the investigation with the assistance of Drug Enforcement Administration and Texas Department of Public Safety. Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz are prosecuting the case.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national was charged yesterday in federal court in Boston on a federal immigration charge.
Selvin Danilo Herrera-Arana, 33, was indicted on one count of unlawful reentry of a deported alien.
According to court documents, law enforcement officers in Boston discovered Herrera-Arana on July 16, 2017, and determined him to be unlawfully present in the United States. Herrera-Arana was previously deported on July 29, 2014.
Herrera-Arana faces a sentence of no greater than 10 years in prison, no greater than three years of supervised release, a fine of $250,000, and he will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Guatemalan National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON – A Guatemalan national was indicted yesterday in federal court in Boston on a federal immigration charge.
Jary Vincente Valenzuela, 27, was indicted on one count of unlawful reentry of a deported alien.
According to court documents, on July 26, 2017, law enforcement officers in Nantucket encountered Valenzuela and determined him to be illegally present in the United States. Valenzuela was previously deported on Aug. 8, 2013.
Valenzuela faces a sentence of no greater than 20 years in prison, up to three years of supervised release, a fine of $250,000, and will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.