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28 September 2017
Credit Counseling and Financial Education Requirements for Bankruptcy Filers Are Waived Temporarily in Puerto Rico and the U.S. Virgin IslandsRead the Press Release
WASHINGTON, D.C. – The U.S. Trustee Program (USTP) today announced a temporary waiver of the federal statutory requirements for credit counseling and personal financial management education for consumer bankruptcy filers in the District of Puerto Rico and the District of the U.S. Virgin Islands, due to the effects of Hurricanes Irma and Maria.
Under the Bankruptcy Code, individual bankruptcy filers are required to receive credit counseling from an approved agency within 180 days before they file bankruptcy. In addition, in order to receive a bankruptcy discharge, individual bankruptcy filers must complete a course in personal financial management offered by an approved provider.
The Bankruptcy Code permits U.S. Trustees to waive the credit counseling and financial education requirements within a judicial district where approved agencies and providers are not reasonably able to provide adequate services. Acting U.S. Trustee Guy Gebhardt made this determination with respect to the District of Puerto Rico and the District of the Virgin Islands. The waiver applies to bankruptcy cases filed on or after September 28, 2017.
The U.S. Trustee Program is the component of the Department of Justice that promotes integrity and efficiency in the nation’s bankruptcy system by enforcing bankruptcy laws, providing oversight of private trustees, and maintaining operational excellence. The Program has 21 regions and 92 field offices. The Program is responsible for overseeing bankruptcy cases in all jurisdictions except those in Alabama and North Carolina. The Districts of Puerto Rico and the Virgin Islands are located in the Program’s Region 21, which is based in Atlanta.
Carrollton Woman Sentenced for $185,000 Bank Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Carrollton, Mo., woman was sentenced in federal court today for a bank fraud scheme in which she used her neighbor’s house to obtain a loan for her failed business venture.
Carol Joyce Noble, 65, of Carrollton, was sentenced by U.S. District Judge Stephen R. Bough to two years and six months in federal prison without parole. The court also ordered Noble to pay $267,924 in restitution.
On March 28, 2017, Noble was found guilty at trial of two counts of bank fraud. Evidence introduced during the trial indicated that Noble defrauded Central Trust Bank in Jefferson City, Mo., in September 2011 as part of a scheme to obtain a fraudulent $185,000 loan in order to purchase a convenience store in Stover, Mo.
As part of the scheme, Noble caused the fraudulent appraisal of her Gravois Mills, Mo., residential property in order to obtain the loan. Noble changed the physical address of the residence to an adjacent residence by altering the last digit of the house number, unbeknownst to the neighbor. Noble met the appraiser at her neighbor’s home and misrepresented to the appraiser that it was her own. The appraiser then appraised the wrong home at a value $100,000 higher than the true value of Noble’s property. Noble was found guilty of two counts of bank fraud related to the fraudulent appraisal.
According to court documents, the loan closed and the money was issued, but the business quickly failed. During the foreclosure process, it was determined that the property appraised was not Noble’s actual house, but rather, the residence next to hers. The bank ultimately sold Noble’s actual residence for only $15,000. The bank, Noble’s business partners (who continued to pay the deficiency on the loan after its default) and even the appraisal company and its insurance company lost substantial amounts of money as a result of this fraud.
This case was prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the FBI.
Canadian, Oklahoma Woman Sentenced to 36 Months Probation for Embezzlement of MailRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that LEANDA JOANNE PRATHER, age 37, of Canadian, Oklahoma, was sentenced to 3 years probation for EMBEZZLEMENT OF MAIL BY POSTAL EMPLOYEE, in violation of Title 18, United States Code, Section 1709.
The Indictment alleged that between on or about August 2, 2016, to on or about December 20, 2016, in the Eastern District of Oklahoma, the Defendant, a United States Postal Service employee, did willfully, knowingly and unlawfully embezzle packages entrusted to her and which came into her possession to be conveyed by mail, located at the Eufaula Post Office, 131 W. Foley, Eufaula, Oklahoma, while performing her assigned duties as an employee of the United States Postal Service.
The charge arose from an investigation by the United States Postal Service Office of Inspector General.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney John David Luton represented the United States.
Buffalo Man Arrested, Charged with Distributing HeroinRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jose Ramos-Escalera, 29, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute and distribution of heroin. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the complaint, between July 18, 2017, and September 26, 2017, the defendant distributed amounts of heroin and possessed heroin with intent to distribute in the Buffalo area.
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Man Arrested, Charged with Being A Felon in Possession of FirearmsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that David Hunter, 21, of Buffalo, NY, was charged by criminal complaint with two counts of being a felon in possession of firearms. Each charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that according to the complaint, between March 3, 2017, and March 12, 2017, the defendant posted images to “Snap Chat” depicting himself in possession of a Hi-Point, model JH-45 semi-automatic firearm.
On April 1, 2017, New York State Parole Officers, assisted by members of the Buffalo Police Department, searched Hunter’s residence, recovered a Hi-Point, model CF380, .380 caliber semi-automatic firearm, and arrested the defendant.
The defendant was previously convicted in state court of Criminal Possession of a Weapon in February 2014 and is legally prohibited from possessing a firearm.
The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan benedict, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; New York State Parole, under the direction of Acting Commissioner Anthony J. Annucci; and the Erie County District Attorney’s Office, under the direction of John Flynn.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bristol Woman Pleads Guilty to Preparing False Tax Returns for Clients for More Than a DecadeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that ROBIN REID, 54, of Bristol, waived her right to be indicted and pleaded guilty today before Chief U.S. District Judge Janet C. Hall in New Haven to preparing false federal income tax returns.
According to court documents and statements made in court, REID operated a tax return preparation practice. From at least 2005 and continuing until 2015, REID falsified information on numerous returns that she prepared for clients by inflating deductions for medical and dental expenses, charitable contributions, employee-related expenses, and other expenses. REID often created fictitious Schedule C forms in order to fabricate deductible business expenses, and fictitious Schedule E forms to inflate expenses relating to rental properties. By routinely overstating deductions, REID reduced taxable income on the respective returns, and caused a tax loss of $1,126,011 to the government.
REID pleaded guilty to one count of aiding and assisting the filing of a false tax return, an offense that carries a maximum term of imprisonment of three years, a fine of up to approximately $2.2 million, and restitution. Chief Judge Hall scheduled sentencing for December 21, 2017.
REID’s clients are required to resolve their own tax liability with the Internal Revenue Service.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Beardstown Man Sentenced for Methamphetamine TraffickingRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Kayln Valdez was sentenced on September 28, 2017 to 108 months in federal prison for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
Valdez pled guilty on June 14, 2017. At his change of plea hearing, Valdez admitted possessing two kilograms of methamphetamine in Jerseyville, Illinois on June 18, 2016. A co-defendant of Valdez,Mark E. Wilson, was sentenced on September 7, 2017 to a term of 97 months in prison for the same offenses.
The investigation which resulted in Valdez’s arrest and conviction was conducted by the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Barnett Woman Sentenced for MethRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Barnett, Mo., woman was sentenced in federal court today for possessing methamphetamine with the intent to distribute.
Ashley Annette Stone, 33, of Barnett, was sentenced by U.S. District Judge Stephen R. Bough to eight years in federal prison without parole.
On April 26, 2017, Stone pleaded guilty to possessing 50 grams or more of methamphetamine with the intent to distribute.
On Jan. 11, 2016, Morgan County, Mo., sheriff’s deputies went to Stone’s residence to interview her about reports that she was involved in the distribution of methamphetamine. Deputies executed a search warrant at her residence and seized a bag that contained 54.27 grams of methamphetamine hidden behind the washing machine. Stone’s car was also searched, and officers found a bag that contained seven grams of methamphetamine.
According to court documents, Stone’s vehicle had been stopped by Lake Ozark, Mo., police officers on July 24, 2015. During the stop, officers found a baggie that contained .36 gram of methamphetamine. Stone told investigators she had travelled to Oklahoma City to obtain a pound of methamphetamine. She also admitted that, a week prior to the traffic stop, she had traveled to obtain a pound of methamphetamine, which she sold in Missouri.
Stone also told investigators that she had been buying and selling methamphetamine that she obtained from Mexican nationals. She stated that, two weeks earlier, she had purchased methamphetamine at $500 per ounce from a Mexican man in Kansas City, Mo. The man gave Stone a tequila bottle containing a clear liquid, and instructed her to heat it in an aluminum pan and then set it aside to dry, and that it would turn into crystal methamphetamine. Stone stated that the liquid ultimately yielded a pound of powder. Stone had obtained a second bottle containing methamphetamine that was located in her vehicle. The vehicle had been returned to its owner, who had broken the bottle, but the bottle was recovered and found to contain methamphetamine.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Mid-Missouri Drug Task Force, the Lake Ozark, Mo., Police Department, the Miller County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.
BB&T Bank Employee Admits to Stealing over $500,000Read the Press Release
Abingdon, VIRGINIA – A BB&T employee, who over a period of approximately four years embezzled over a half-million dollar, faces up to 30 years in federal prison after she pleaded guilty today in the federal court in Abingdon to embezzlement charges, Acting United States Attorney Rick A. Mountcastle announced.
Anna B. Holt, 48, of Staffordsville, Va., waived her right to be indicted and pleaded guilty today to embezzlement by a bank employee of moneys of the bank or entrusted to the custody of the bank.
Holt worked for BB&T Bank as a branch banker at the New River Branch in Pearisburg, Virginia. The defendant admitted today that from around 2013 to August 2017, while being employed at the bank, she embezzled a total of $565,790.41 from 14 separate accounts holders. Holt used various methods to embezzle the money, including making withdrawals from customer accounts, cashing customers’ bonds and keeping the proceeds, and creating fake credit accounts in the names of relatives and withdrawing the loan proceeds. Some of the money embezzled was used to repay accounts from which Holt had previously stolen money.
Sentencing is scheduled for December 19, 2017, at 2:30 p.m. before United States District Court Judge James P. Jones in Abingdon.
The investigation of the case was conducted by the United States Secret Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Asplundh Tree Experts, Co. Pleads Guilty to Unlawful Employment of AliensRead the Press Release
PHILADELPHIA –Asplundh Tree Experts, Co., one of the largest privately-held companies in the United States, headquartered in Willow Grove, Pennsylvania (“Asplundh”), pleaded guilty today to unlawfully employing aliens, in connection with a scheme in which the highest levels of Asplundh management remained willfully blind while lower level managers hired and rehired employees they knew to be ineligible to work in the United States, announced acting United States Attorney Louis D. Lappen. Following the guilty plea hearing today, the Honorable John R. Padova sentenced the company to pay a forfeiture money judgment in the amount of $80,000,000.00 and abide by an Administrative Compliance Agreement, as set forth by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Philadelphia. Pursuant to a separate Civil Settlement Agreement, Asplundh will pay an additional $15,000,000.00 to satisfy civil claims arising out of their failure to comply with immigration law.
The $95,000,000.00 recovery, including $80,000,000.00 criminal forfeiture money judgment and $15,000,000.00 in civil payment, represents the largest payment ever levied in an immigration case.
According to court documents, from 2010 until December 2014, Asplundh, an industry leader in tree trimming and brush clearance for power and gas lines, hired and rehired employees in many regions in the United States accepting identification documents it knew to be false and fraudulent. A six-year HSI audit and investigation revealed that the company decentralized its hiring so Sponsors (the highest levels of management) could remain willfully blind while Supervisors and General Foremen (2nd and 3rd level supervisors) hired ineligible workers, including unauthorized aliens, in the field. Hiring was by word of mouth referrals rather than through any systematic application process. This manner of hiring enabled Supervisors and General Foremen to hire a work force that was readily available and at their disposal.
This decentralized model tacitly perpetuated fraudulent hiring practices that, in turn, maximized productivity and profit. With a motivated work force, including unauthorized aliens willing to be relocated and respond to weather related events around the nation, Asplundh had crews which were easily mobilized that enabled them to dominate the market. Asplundh provided all the incentives to managers to skirt immigration law.
“Our partners at U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Philadelphia are to be commended for their work on this lengthy audit and investigation, spanning 6 years," said Acting United States Attorney Louis D. Lappen. "Today’s settlement and the compliance agreement makes it clear, that companies must play by the rules and treat everyone fairly.”
“Today marks the end of a lengthy investigation by ICE Homeland Security Investigations into hiring violations committed by the highest levels of Asplundh’s organization,” said ICE Acting Director Thomas Homan. “Today’s judgment sends a strong, clear message to employers who scheme to hire and retain a workforce of illegal immigrants: we will find you and hold you accountable. Violators who manipulate hiring laws are a pull factor for illegal immigration, and we will continue to take action to remove this magnet.”
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Philadelphia and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.
Albuquerque Felon Charged with Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jimmie Joe Lucero, 51, of Albuquerque, N.M., was arraigned today in federal court on an indictment charging him with violating the federal firearms laws. Lucero entered a not guilty plea to the indictment and remains detained pending trial, which has yet to be scheduled.
Lucero, whose prior criminal history includes at least eight prior felony convictions including convictions for assault, aggravated assault with a deadly weapon, and battery on a peace officer, is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The FBI arrested Lucero on June 15, 2017, based on a criminal complaint charging him with being a felon in possession of a firearm. According to the criminal complaint, FBI agents found a firearm in Lucero’s vehicle during the execution of a search warrant at Lucero’s residence. The indictment, which was filed on Sept. 21, 2017, charges Lucero with unlawfully possessing a firearm on June 15, 2017, in Bernalillo County, N.M., and alleges that Lucero was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
Lucero is detailed pending trial. If convicted, Lucero faces a maximum penalty of ten years in federal prison for being a felon in possession of a firearm. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo.
Albany Man Sentenced for Oxycodone DistributionRead the Press Release
ALBANY, NEW YORK – Jason C. Bishop, age 27, of Albany, New York, was sentenced today to time served (approximately 18 months of imprisonment), to be followed by 3 years of supervised release, for distributing oxycodone in Albany County.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
As part of his March 17, 2017 guilty plea, Bishop admitted that he obtained prescribed oxycodone tablets from a pharmacy and then sold those tablets to Salvatore Commisso. Commisso was sentenced in January 2017 to 36 months in prison for conspiring to distribute oxycodone.
This case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Alaska Couple Charged with Defrauding Anchorage Medical Practice of at Least $550,000Read the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that an Alaska couple has been charged for allegedly defrauding an Anchorage medical practice of at least $550,000.
Jill Diane Applebury, aka: “Jill Wetzsteon,” 52, d/b/a Applebury Accounting Services, and her husband Darin Wade Applebury, 52, both of Anchorage, have been named in a 39-count indictment charging them with bank fraud, wire fraud, fraudulent transactions with an access device, and aggravated identity theft.
From the mid-1990’s until March 2013, Jill Applebury was the independent contractor bookkeeper for an Anchorage medical practice, which was owned and operated by an Anchorage physician. The indictment alleges that from at least 2004 until March 22, 2013, Jill Applebury and Darin Applebury defrauded the Anchorage medical practice in several ways.
For example, as to Jill Applebury, one such scheme involved the medical practice’s profit-sharing plan. Employees of the medical practice were eligible to participate in its profit-sharing plan, which was overseen by a third-party administrator. Independent contractors did not qualify for the plan. According to the indictment, Jill Applebury falsely represented to the third-party administrator that she had become a full-time employee of the medical practice in 2009, making her eligible to participate in the profit-sharing plan beginning in 2010. In all, Jill Applebury fraudulently caused the physician to unknowingly allocate $62,722.90 to her in unauthorized profit-sharing plan contributions for the years 2010 and 2011.
The indictment further alleges that, between 2004 and March 22, 2013, Jill and Darin Applebury also defrauded the physician’s medical practice by using the medical practice’s business bank account and business credit card to pay for items for their own personal and/or business benefit. The unauthorized charges to the medical practice’s business credit card included cell phone service for the Appleburys and members of their family, internet service for their residence, business licenses for businesses owned by Jill and Darin Applebury, automobile insurance for their personal vehicles, and other personal items.
In addition, in October 2012, Darin Applebury is alleged to have fraudulently used the medical practice’s business credit card to effect four transactions, totaling nearly $3,000, of medical products for his business, Rapid Recovery Medical Service. Darin Applebury effected these fraudulent credit card transactions using the physician’s name and address unbeknownst to and without the permission of the Anchorage physician. Jill Applebury assisted her husband in carrying out this unlawful conduct.
This case was investigated by the Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD).
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Alabama Man Arrested on Production of Child Pornography ChargesRead the Press Release
A 54-year-old Muscle Shoals, Alabama resident was arrested on September 27, on a federal criminal complaint charging him with producing child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Jay E. Town of the Northern District of Alabama.
According to the complaint affidavit, between Aug. 1, 1997, and Oct. 15, 1998, Charles Mark McCormack used a minor, born in or about 1992, to engage in sexually explicit conduct for the purpose of producing child pornography, by surreptitiously videotaping the minor urinating in a bathroom in his residence.
The charges contained in the complaint are only allegations. The defendant is presumed innocent unless and until he is proven guilty beyond a reasonable doubt in a court of law.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is investigating this case with the cooperation of the Georgia Bureau of Investigation. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Daniel J. Fortune of the Northern District of Alabama are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Alabama Man Arrested on Production of Child Pornography ChargesRead the Press Release
WASHINGTON – A 54-year-old Muscle Shoals, Alabama resident was arrested on September 27, on a federal criminal complaint charging him with producing child pornography, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Jay E. Town of the Northern District of Alabama.
According to the complaint affidavit, between Aug. 1, 1997, and Oct. 15, 1998, Charles Mark McCormack used a minor, born in or about 1992, to engage in sexually explicit conduct for the purpose of producing child pornography, by surreptitiously videotaping the minor urinating in a bathroom in his residence.
The charges contained in the complaint are only allegations. The defendant is presumed innocent unless and until he is proven guilty beyond a reasonable doubt in a court of law.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations is investigating this case with the cooperation of the Georgia Bureau of Investigation. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Daniel J. Fortune of the Northern District of Alabama are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Additional Canadian Citizen Charged in Telemarketing ScamRead the Press Release
Ari Tietolman, 43, of Montreal, Canada, was charged in a Superseding Indictment1 with three counts of wire fraud and four counts of money laundering, announced Acting United States Attorney Louis D. Lappen. In addition, the Superseding Indictment added Adam Harper, 34, of Montreal, Canada, who is also charged with three counts of wire fraud and four counts of money laundering.
According to the Superseding Indictment, between 2005 and March 2014, Tietolman, Harper, and others used Tietolman’s network of telemarketers in Canada and India to target American senior citizens with deceptive telemarketing calls. They sold worthless or non-existent services and then debited the victims’ bank accounts without their informed consent. Using the business names Fraud Watch, Patient Assistance Plus, Legal Eye and Trust One, the worthless or non-existent services these telemarketers sold included purported fraud protection and discounted legal services, as well as a discount prescription card.
During the calls, Tietolman’s telemarketers allegedly made various false representations, such as that they were calling on behalf of, or were affiliated with, the victim’s bank, or insurance company, or the United States government. In addition to misrepresenting the value of the products being marketed, Tietolman’s telemarketers allegedly misrepresented the cost of these products, sometimes telling consumers the products were free, or less expensive than the amount that was ultimately debited from the consumers’ bank accounts. In other instances, Tietolman’s telemarketers allegedly assured consumers they would not debit the consumers’ bank accounts, and then did just that after the consumer provided their bank account information.
According to the Superseding Indictment, Tietolman and Harper attempted to conceal their involvement in the scheme by employing others to run “front” companies and process the fraud money. The sole purpose of these corporations was to process the fraud proceeds generated by the telemarketing scheme. Tietolman and Harper instructed others to open up numerous bank accounts in the United States in the names of the fraud companies that they had incorporated. Tietolman, Harper, and others controlled these United States bank accounts from Canada. Tietolman and Harper instructed others in the United States to deposit victims’ funds in batches of less than $10,000 to avoid federally-mandated reporting requirements. After the funds were deposited, Tietolman and Harper instructed others to wire the majority of the funds to accounts in Canada.
Tietolman and Harper face maximum possible sentences of 170 years in prison; three years of supervised release; a fine of $1.75 million or up to double the amount involved in the money laundering; and a $700 special assessment.
In March 2016, Marc Roy Ferry, 36, of Downingtown, Pennsylvania, pleaded guilty in a related case to his role in running “front” companies in the United States for Tietolman and Harper.
The case was investigated by the FBI, IRS - Criminal Investigations, Homeland Security Investigations, the Federal Trade Commission, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Vineet Gauri.1 An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed
Acting Manhattan U.S. Attorney Settles Civil Mortgage Fraud Lawsuit Against Residential Home Funding Corp.Read the Press Release
UPDATE
The press release issued in this case on September 28, 2017, incorrectly identified Residential Home Mortgage Corp. as the settling defendant instead of Residential Home Funding Corp. The defendant in this case is Residential Home Funding Corp. Residential Home Mortgage Corp. has no connection to this case and has not been accused of any wrongdoing.
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Dane Narode, Associate General Counsel for Program Enforcement for the U.S. Department of Housing and Urban Development (“HUD”), and Christina Scaringi, the Special Agent in Charge of HUD’s Office of the Inspector General (“HUD-OIG”), Northeast Region, announced today that the United States has settled a civil mortgage fraud lawsuit against RESIDENTIAL HOME FUNDING CORP. (“RESIDENTIAL HOME FUNDING”) stemming from RESIDENTIAL HOME FUNDING’s participation in the Federal Housing Administration’s (“FHA”) Direct Endorsement Lender Program (“DEL Program”). In the settlement, approved Monday by U.S. District Judge Jed S. Rakoff, RESIDENTIAL HOME FUNDING agreed to pay $1.67 million and admitted, acknowledged, and accepted responsibility for, among other things, failing to maintain a compliant quality control program and approving loans for FHA insurance that failed to meet the requirements established by HUD. The settlement amount was based on RESIDENTIAL HOME FUNDING’s financial ability to pay after a review of the company’s financial records. As part of the settlement, RESIDENTIAL HOME FUNDING also agreed to retain an independent compliance consultant to ensure its compliance with the HUD/FHA rules applicable to the DEL Program.
Acting Manhattan U.S. Attorney Kim said: “We are committed to holding lenders accountable when they recklessly approve loans for FHA insurance and then fail to live up to their promises to HUD. With this settlement, Residential Home Funding accepts responsibility for its conduct and will pay $1.67 million.”
HUD Associate General Counsel for Program Enforcement Dane Narode said: “This case demonstrates HUD’s resolve in protecting the integrity of its mortgage insurance programs for the benefit of all Americans, especially first-time homebuyers. We’re pleased that Residential Home Funding has accepted responsibility for its actions and has agreed to improve its training and quality control program.”
HUD-OIG Special Agent in Charge Christina Scaringi said: “This settlement with Residential Home Funding is the latest example of our continued commitment to hold mortgage industry professionals accountable for their actions. HUD OIG’s Joint Civil Fraud Division and Office of Investigations will continue to work together with our partners at the U.S. Attorney’s Office to root out lenders who choose to use deceptive practices that ultimately cause FHA to suffer losses on mortgages that should never have been approved.”
The Government’s Complaint in this action alleged as follows:
During the period 2006 through 2012 (“Covered Period”), RESIDENTIAL HOME FUNDING participated in the DEL Program. As a DEL lender, RESIDENTIAL HOME FUNDING had the authority to originate, underwrite, and approve mortgages for FHA insurance. If a DEL lender like RESIDENTIAL HOME FUNDING approved a loan for FHA insurance and the loan later defaulted, the holder of the loan could submit an insurance claim to HUD and HUD had to pay the costs associated with the default. Throughout the Covered Period, HUD therefore required DEL lenders to follow HUD’s program rules, including its underwriting requirements and its requirement that lenders maintain a compliant quality control program. A compliant quality control program must include procedures to ensure that the lender reviews loans for compliance with HUD requirements, promptly discloses to HUD all loans containing evidence of fraud or other serious underwriting problems, and conducts a full review of all loans that go into default within the first six payments (“early payment defaults”). RESIDENTIAL HOME FUNDING failed to comply with all three of these basic requirements, and it also routinely approved loans for FHA insurance that did not meet HUD’s underwriting requirements. Notwithstanding these failures, RESIDENTIAL HOME FUNDING continued to fraudulently certify to HUD, each year, that it “conforms to all HUD-FHA regulations necessary to maintain its HUD-FHA approval.”
As part of the settlement, RESIDENTIAL HOME FUNDING has admitted, acknowledged, and accepted responsibility for the following misconduct during the Covered Period:
- RESIDENTIAL HOME FUNDING failed to conform to the HUD and FHA rules requiring DEL lenders to maintain a compliant quality control program by, among other things:
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- not taking action to address loans with underwriting deficiencies that were identified through RESIDENTIAL HOME FUNDING’s own quality assurance review process;
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- not reviewing early payment default loans; and
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- not reporting to HUD loans that were identified in RESIDENTIAL HOME FUNDING’s quality control reviews as having indicia of fraud or other serious deficiencies.
- Contrary to representations in RESIDENTIAL HOME FUNDING’s annual certifications, RESIDENTIAL HOME FUNDING did not conform to all applicable HUD and FHA regulations.
- RESIDENTIAL HOME FUNDING endorsed for FHA mortgage insurance loans that did not meet all underwriting requirements contained in HUD’s handbooks and mortgagee letters.
- RESIDENTIAL HOME FUNDING submitted to HUD and FHA loan-level certifications stating that loans were eligible for FHA mortgage insurance when in fact they were not.
* * *
Mr. Kim thanked HUD-OIG for its assistance in this case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jessica Jean Hu and Elizabeth M. Tulis are in charge of the case.
27 September 2017
Young Melph Mafia Gang Member Sentenced to Life in Prison following Convictions on Rico, Gun, Drug, and Murder ChargesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DEDRICK KEELEN, a/k/a “Roy,” age 24, of New Orleans, was sentenced today after having previously been found guilty of violating the Racketeer Influenced Corrupt Organization Act “RICO” as well as drug conspiracy, firearms conspiracy, and murder charges. U.S. District Judge Kurt D. Engelhardt sentenced KEELEN to serve life plus 10 years.
In June of 2017, KEELEN, LIONEL ALLEN, JAWAN FORTIA, BRYAN SCOTT and DELWIN MCLAREN were convicted following a 7-day trial. According to evidence presented at trial, KEELEN was a member of the “Young Melph Mafia” gang, also referred to as “YMM.” The YMM gang was initially formed in or about 2005 and continued to exist through 2014. During the course of the federal investigation into the gang, agents learned that the defendants controlled an area of Central City New Orleans along Martin Luther King Boulevard near the former Melpomene Housing Development. The gang, which started when the members were in their early teens, participated in a wide ranging conspiracy to distribute street level quantities of crack cocaine in Central City and participated in several acts of violence against rival gangs, such as the 110ers. The members of the YMM were associates of the members of the Allen family, who were also indicted and convicted in federal court in 2014. Three members of the 110ers gang were convicted on January 29, 2015, in Orleans Parish Criminal Court for the Briana Allen shooting.
The jury found KEELEN guilty of conspiracy to commit RICO violations, conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine and a quantity of marijuana, conspiracy to possess firearms during and in relation to crimes of violence and drug trafficking crimes, assault with a dangerous weapon and two murders. Specifically, KEELEN was convicted of participating in the shooting deaths of Lawrence Burt and Vivian Snyder that occurred on December 16, 2012 on St. Andrew Street.
KEELEN was one of eleven defendants originally charged in August of 2014 in a superseding indictment involving gun and drug conspiracies. Five YMM defendants pled guilty to the conspiracy charges and were sentenced. JACOBI “CO” BOYD was sentenced to 480 months of incarceration; ALFRED “AL” COBBINS was sentenced to 252 months of incarceration; SHAWN “GUNNER” GRACIN was sentenced to 270 months of incarceration; RUBEN “RUE” GEIGER was sentenced to 220 months of incarceration; DARIUS “D-MAN” WILLIAMS was sentenced to 156 months of incarceration; and DEONTRE “SOULJA” HILLS was sentenced to 96 months of incarceration. In August of 2015, federal RICO and murder charges were added against the remaining defendants in a second superseding indictment. JEFFREY WILSON pled guilty to only drug charges and was sentenced to 180 months of incarceration. LIONEL ALLEN, JAWAN FORTIA, BRYAN SCOTT, and DELWIN MCLAREN, who went to trial with KEELEN, are awaiting sentencing.
“It is very important that we, in the law enforcement community, send a very strong message to these gangs that are wreaking havoc on our community,” said ATF Special Agent in Charge Dana Nichols. “If you continue to deal drugs, engage in violent crime, and devalue human life, you will go to prison for a very long time. With today’s sentence, Mr. Keelen will be spending the remainder of his life in federal prison.”
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Edward Rivera, Nolan Paige, and Nicholas Moses were in charge of the prosecution.
Williamsport Man Sentenced to over Five Years’ Imprisonment for Gun and Drug OffensesRead the Press Release
Scranton - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that U.S. District Court Judge Matthew W. Brann sentenced Damontray Taylor, age 31, of Williamsport, Pennsylvania, to 70 months’ imprisonment for heroin trafficking and possession of firearms in furtherance of drug trafficking.
According to United States Attorney Bruce D. Brandler, Taylor pleaded guilty on June 6, 2017, to possessing 32 retail bags of heroin in February 2016, with the intent to distribute the drugs in the Williamsport area, as well as three firearms in furtherance of his drug activities. Judge Brann sentenced Taylor to 10 months in prison for the drug trafficking charge, and imposed a statutory, mandatory minimum five-year term of imprisonment for the firearms charge. Judge Brann further imposed a $400 fine and three years of supervised release after Taylor’s prison term is complete.
Taylor entered his guilty plea under a plea agreement with the United States. Under the agreement, the government dismissed a third count charging possession of a firearm by a convicted felon.
The investigation was conducted the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Lycoming County Narcotics Enforcement Unit. Assistant United States Attorney Sean A. Camoni prosecuted the case.
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.
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.
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.
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White Lake Township Woman Sentenced to 30 Years in Prison on Production of Child Pornography ChargesRead the Press Release
A White Lake Township woman was sentenced today to 30 years in federal prison on charges of producing child pornography, announced Acting United States Attorney Daniel L. Lemisch.
Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Federal Bureau of Investigation (FBI).
Anngela Boyle, 27, was sentenced this afternoon before United States District Judge Gershwin Drain in Detroit, Michigan.
Boyle pleaded guilty on April 3, 2017, to conspiring with her husband and co-defendant Colin Boyle, to producing child pornography of four minor victims, ranging in age from 1 year to 9 years of age. Colin Boyle received 60 years’ imprisonment for his role in the offenses.
The case was investigated by special agents of the FBI and prosecuted by Assistant United States Attorney Maggie Smith.
US and Hidalgo County Reach Collaborative Agreement on Polling Place Access for Voters with DisabilitiesRead the Press Release
McALLEN, Texas – The United States Attorney’s Office (USAO) has reached a settlement under Title II of the Americans with Disabilities Act (ADA) with Hidalgo County, announced Acting U.S. Attorney Abe Martinez. Title II prohibits discrimination on the basis of disability by a state or local government in any of its programs or services, including its voting program. The agreement announced today will greatly improve physical accessibility at the county’s polling places for individuals who use wheelchairs and other mobility aids and for individuals who are blind or have vision impairments.
“The right to vote is the cornerstone of our democracy,” said Martinez. “This agreement will ensure that persons with mobility disabilities and vision impairments have equal opportunities to exercise their right to vote in person at their assigned polling place, just like their neighbors. The USAO is committed to continued, vigorous enforcement of the panoply of federal civil rights laws aimed at securing the right to vote for all Americans, including the ADA. We commend Hidalgo County for its cooperation in our investigation as well as the county’s commitment to make its voting program fully accessible.”
Under the terms of the settlement, accessibility will be a major criterion in the county’s selection of polling places. To make that assessment, the county will use an evaluation form for each prospective polling place based on ADA architectural standards. The county has agreed either to relocate inaccessible polling places to accessible facilities or to use temporary measures such as portable ramps, signs, traffic cones and remote signaling devices where appropriate to ensure accessibility on Election Day.
Hidalgo County, working with the Civil Rights Section of the USAO, is striving to provide individuals with disabilities the opportunity to vote at the polls throughout Hidalgo County.
For more information on the ADA, visit www.ada.gov. ADA complaints may be filed by email to [email protected] or within the Southern District of Texas at [email protected].
Tyson Poultry Pleads Guilty to Clean Water Act Violations in Connection with Discharge of Acidic Feed SupplementRead the Press Release
Tyson Poultry Inc. (“Tyson”), pleaded guilty today in federal court in Springfield, Missouri, to two criminal charges of violating the Clean Water Act stemming from discharges at its slaughter and processing facility in Monett, Missouri.
Tyson, the nation’s largest chicken producer, is headquartered in Springdale, Arkansas. Tyson is a subsidiary of Tyson Foods Inc., which owns and operates multiple companies in the food supply and food service industry. The charges to which Tyson pleaded guilty arose out of a spill after the company mixed ingredients in its chicken feed at its feed mill in Aurora, Missouri.
One ingredient in Tyson’s feed was a liquid food supplement called “Alimet,” which has a pH of less than one. According to the plea agreement filed in federal court, in May 2014, the tank used to store Alimet at the Aurora feed mill sprang a leak, and the acidic substance flowed into a secondary containment area. Tyson hired a contractor to remove the Alimet and transport it to Tyson’s Monett plant, where the Alimet was unloaded into the in-house treatment system that was not designed to treat waste with Alimet’s characteristics. Some of the Alimet made it into the City of Monett’s municipal waste water treatment plant, where it killed bacteria used to reduce ammonia in discharges from the treatment plant into Clear Creek, and resulting in the death of approximately 108,000 fish.
Under the terms of the plea agreement, Tyson will pay a $2 million criminal fine and serve two years of probation. In addition, Tyson will pay $500,000 to maintain and restore waters in the Monett area, with a focus on Clear Creek and the adjoining waterways. Tyson will also implement environmental compliance programs including: hiring an independent, third-party auditor to examine all Tyson poultry facilities throughout the country to assess their compliance with the Clean Water Act and hazardous waste laws; conducting specialized environmental training at its poultry processing plants, hatcheries, feed mills, rendering plants, and waste water treatment plants; and implementing improved policies and procedures to address the circumstances that gave rise to these violations.
“Our Division is hopeful that the outcome of this case will help deter future violations of the Clean Water Act and keep our water supply and marine life free from pollution,” said Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division. “Today’s agreement will remedy environmental harm caused by the defendant’s actions while also helping to ensure that these kinds of problems do not happen again.”
“Tyson’s admitted criminal conduct caused significant environmental damage, including a large-scale fish kill,” said Acting U.S. Attorney Tom Larson of the Western District of Missouri. “Today’s plea agreement not only holds Tyson accountable for its actions in Missouri, but requires the company to take steps to insure compliance with the Clean Water Act at its poultry facilities throughout the United States.”
“Ensuring agricultural operations dispose of their waste in a lawful way is critical to protecting the health of local communities and clean water,” said Larry Starfield, acting Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “The plea agreement in this case will improve Tyson’s compliance with important clean water and hazardous waste laws and help prevent future violations.”
Acting Assistant Attorney General Wood and Acting U.S. Attorney Larson thanked the U.S. Environmental Protection Agency’s Criminal Investigation Division for its work in this investigation. The case is being prosecuted by the U.S. Attorney’s Office for the Western District of Missouri and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
Two illegal aliens plead guilty, third sentencedRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that two illegal aliens pleaded guilty and one illegal alien was sentenced last week for various offenses.
Mexican national pleads guilty to using fraudulent documents
LAFAYETTE, La. – Noe Bautista-Hernandez, 30, of Mexico, pleaded guilty Thursday before U.S. Magistrate Judge Patrick Hanna to one count of false representation of a Social Security number. The plea will become final when accepted by U.S. District Judge Elizabeth E. Foote. According to the guilty plea, Abbeville police arrested Bautista-Hernandez on July 18, 2017 on unrelated charges. Police discovered that the name he provided at his arrest belonged to another person. Upon examining the identifying documents submitted to the police, they discovered a Social Security card, a Puerto Rican birth certificate, two Louisiana State identification cards and a Louisiana driver’s license in another name. They were all false and fraudulent. He also possessed a Mexican birth certificate and passport in his own name.
Bautista-Hernandez faces up to five years in prison and a $250,000 fine. The court set sentencing for December 8, 2017.
Homeland Security Investigations and the Abbeville Police Department conducted the investigation. Assistant U.S. Attorney David J. Ayo is prosecuting the case.
Man from Mexico pleads guilty to illegally returning to the United States
LAFAYETTE, La. – Isais Hernandez-Vasquez, 33, of Mexico, pleaded guilty Thursday before U.S. Magistrate Judge Patrick Hanna to one count of reentry of a removed alien. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, Hernandez-Vasquez was arrested on July 17, 2014 in St. Martin Parish. He pleaded guilty and was convicted on June 2, 2017 of attempted possession of methamphetamine. Agents later encountered him and discovered that he had been previously removed from the United States. He was removed on August 27, 2009 and April 3, 2014 after criminal convictions. He was not authorized to return to the United States.
Hernandez-Vasquez faces up to two years in prison and a $250,000 fine. The court set sentencing for January 12, 2018.
United States Immigration and Customs Enforcement conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Guatemalan citizen sentenced to 5 months for illegally reentering country
LAKE CHARLES, La. – Emir Sosa-Morales, 31, of Cuilco, Guatemala, was sentenced Friday by U.S. District Judge Dee D. Drell to five months in prison on one count of illegal reentry following removal. According to the June 13, 2017 guilty plea, Lafayette Sheriff’s deputies arrested Sosa-Morales on January 4, 2017 for a felony. Law enforcement agents later discovered that the defendant had been removed from the United States on two previous occasions. The most recent was on September 17, 2013 in New Orleans.
United States Immigration and Customs Enforcement and the Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney T. Forrest Phillips is prosecuting the case.
Twelve (12) Defendants charged in federal court with conspiracy to distribute heroin and cocaine, using firearms, and money launderingRead the Press Release
United States Attorney Gregory Haanstad announced today that the following twelve (12) defendants have been charged in federal court with offenses related to a conspiracy to distribute heroin and cocaine, using a firearm in relation to drug trafficking, and money laundering:
Torrence Harris, Sr., age 37
Terrance Hamlin, age 51
Jerry Gray, age 33
Clarence J. Bogan, Jr., age 37
Fontae Kelly, age 34
Michael Davis, age 33
Royel Page, age 27
Joseph Davis, Jr., age 34
Terrence L. Jackson, age 35
Phillip Edwards, age 41
Kevin Williams, age 42
Anyssia Z. Currie, age 27
All of the defendants currently reside in the greater Milwaukee area. This case is a part of a long-term federal drug and money laundering investigation based out of Milwaukee.
The defendants are charged with various drug offenses, including: distribution of and possession with intent to distribute controlled substances and conspiracy. If proven that the offenses involved more than 100 grams of heroin, each defendant will face up to forty (40) years’ in prison, with a mandatory minimum sentence of five years in prison. If convicted of using a firearm during and in relation to drug trafficking, each defendant faces a five (5) year sentence consecutive to any time imposed for drug trafficking.
Today, law enforcement officers arrested 11 of the above defendants. Torrence Harris remains at large. In addition to today’s arrests, law enforcement officers executed 14 federal search warrants in Milwaukee targeting members of this organization. Law enforcement recovered approximately 25 ounces of heroin, 33 grams of a powder that tested positive for fentanyl, five firearms, approximately $100,000 in United States currency, seven vehicles, and two kilo presses. Approximately 250 federal, state, and local officers participated in these arrests and search warrants.
In making today’s announcement about the federal charges, searches, and arrests, United States Attorney Haanstad stated: “The large-scale distribution of heroin, fentanyl, and other controlled substances presents an urgent threat to the safety and well-being of communities in the Eastern District of Wisconsin. Today’s charges and arrests reflect our commitment to working with federal, state, and local law enforcement to protect communities from these harms.”
Milwaukee Drug Enforcement Administration Agent in Charge Robert Bell commended the collaborative and purposeful approach by state, local and federal law enforcement. “This heroin and cocaine distribution organization perpetrated firearms violence, in addition to fueling drug addiction in Milwaukee. Intelligence-driven investigations and federal prosecutions, coordinated with the Wisconsin Department of Justice, Milwaukee Police Department and other law enforcement partners, effectively stop criminal organizations in their tracks,” remarked Bell.
Attorney General Brad Schimel stated, “Heroin, cocaine, and other dangerous drugs are responsible for the destruction of countless lives in Wisconsin. Today’s takedown of major drug traffickers in southeastern Wisconsin is a big win for law enforcement, the community, and those seeking justice from the drug crisis our state is facing. The arrest of these high-level drug traffickers was only possible because of the incredible investigative work done by local, state, and federal law enforcement.”
The investigating agencies include the Drug Enforcement Administration, Wisconsin Department of Justice - Division of Criminal Investigation, North Central High Intensity Drug Trafficking Area, City of Milwaukee Police Department, Department of Homeland Security - Homeland Security Investigation / Enforcement Removal Operations, Bureau of Alcohol, Tobacco, and Firearms, Federal Bureau of Investigation, United States Marshals Service, U.S. Immigration and Customs Enforcement, Wisconsin State Patrol, Milwaukee County Sheriff’s Department, Racine County Sheriff’s Department, Waukesha County Sheriff’s Department, Waukesha County Metro Drug Enforcement Unit, Wauwatosa Police Department, Greenfield Police Department, West Allis Police Department, and the New Berlin Police Department.
This case is being prosecuted by Assistant United States Attorneys Elizabeth M. Monfils and Gail J. Hoffman.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
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Titus County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 28-year-old Mount Pleasant, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Johnny Carol Denton, III, pleaded guilty on May 17, 2017, to conspiracy to distribute and possess with intent to distribute heroin and was sentenced to 100 months in federal prison on Sep. 26, 2017, by U.S. District Judge Ron Clark.
According to information presented in court, on Dec. 14, 2016, a federal grand jury returned an indictment charging Denton with multiple drug trafficking and firearms violations.
This case was investigated by the U.S. Drug Enforcement Administration, the Gregg County CODE Unit, the Smith County Sheriff’s Office, and the Kilgore Police Department. This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Titus County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 28-year-old Mount Pleasant, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Johnny Carol Denton, III, pleaded guilty on May 17, 2017, to conspiracy to distribute and possess with intent to distribute heroin and was sentenced to 100 months in federal prison on Sep. 26, 2017, by U.S. District Judge Ron Clark.
According to information presented in court, on Dec. 14, 2016, a federal grand jury returned an indictment charging Denton with multiple drug trafficking and firearms violations.
This case was investigated by the U.S. Drug Enforcement Administration, the Gregg County CODE Unit, the Smith County Sheriff’s Office, and the Kilgore Police Department. This case was prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Three Arrested for Role in Austin-Based Multi-Million Dollar S.I.R.F. SchemeRead the Press Release
Today, federal authorities arrested three individuals indicted in connection with a multi-million dollar Austin-based Stolen Identity Refund Fraud (SIRF) scheme announced United States Attorney Richard L. Durbin, Jr.; Special Agent in Charge William Cotter, Internal Revenue Service-Criminal Investigation (IRS-CI); Inspector in Charge Adrian Gonzalez, United States Postal Inspection Service (USPIS), Houston Division; and, Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio Division.
Authorities arrested 54–year-old Nigerian National George Najomo in Austin; and, 36-year-old Sudan National Ibrahim Alu and 40-year-old Sudan National George Ismail in Grand Prairie, TX. Authorities are still looking to arrest 44-year-old Nigerian National Dele Akanbi (aka “SK”). A warrant has been issued for Akanbi’s arrest.
A ten-count federal grand jury indictment, unsealed this afternoon, charges all four defendants with one count of conspiracy to commit fraud and one count of aggravated identity theft. All but Akanbi are also charged with one count of theft of public money. Alu and Ismael are also charged with one count of wire fraud.
The indictment alleges that from January 2013 through April 2016, the defendants conspired to use stolen Personal Identification Information (PII) to commit fraud. According to the indictment, the defendants, while operating a cleaning business in Austin, stole hundreds of patient forms and other paperwork from multiple medical facilities in the Austin area. The defendants then used that stolen information, as well as stolen PII from other unknown sources, to obtain credit cards and file numerous fraudulent income tax returns seeking over $3,000,000 in refunds from the IRS. The indictment alleges that the defendants collected over $630,000 in fraudulent Income Tax Return refunds and close to $17,000 from fraudulent credit card transactions.
Upon conviction, the defendants face up to 20 years in federal prison for the conspiracy charge; up to 20 years in federal prison for wire fraud; up to ten years for theft of public money; and, a mandatory two years in federal prison for aggravated identity theft.
Agents from the IRS-CI, USPIS and HSI conducted this investigation. Assistant United States Attorneys Michael C. Galdo and Gregg N. Sofer are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Texas Man Arraigned on Armed Robbery, Carjacking and Firearms Offenses Arising Out of Northern New Mexico Crime SpreeRead the Press Release
ALBUQUERQUE – Lane Michael Reed, 23, of Killeen, Texas, was arraigned today in federal court in Albuquerque, N.M., on a seven-count indictment charging him with armed robbery of businesses involved in interstate commerce, carjacking and firearms offenses arising out of an alleged crime spree occurring on July 24-25, 2017. Reed entered a not guilty plea to the indictment and remains detained pending trial, which has yet to be scheduled.
Acting U.S. Attorney James D. Tierney said Reed is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The indictment, which was filed on Sept. 21, 2017, charges Reed with armed robbery of two businesses involved in interstate commerce, carjacking, using, brandishing and discharging a firearm in relation to crimes of violence, and being a felon in possession of a firearm. According to the indictment, Reed allegedly robbed a gas station and convenience store in Raton, N.M., on July 24, 2017, and allegedly brandished a firearm while committing that crime. The indictment further alleges that Reed robbed a gas station and convenience store in San Jose, N.M., on July 25, 2017, and brandished a firearm while committing that crime. The indictment also charges Reed with carjacking a pickup truck by brandishing a firearm at the vehicle’s owner on July 25, 2017, in San Miguel County, N.M., and with unlawfully possessing firearms and ammunition on July 24, 2017 and July 25, 2017, in Colfax, San Miguel, Santa Fe, and Sandoval Counties, N.M. According to the indictment, Reed was prohibited from possessing firearms or ammunition because of his previous felony conviction for residential burglary.
Reed was arrested in July 2017, based on a criminal complaint charging him with interfering with interstate commerce by robbery, taking a vehicle from another by force and violence, using, brandishing and discharging a firearm during crimes of violence, and being a felon in possession of firearms and ammunition. According to the criminal complaint, on the morning of July 25, 2017, Reed allegedly robbed a gas station and convenience store in San Jose, N.M., by brandishing a firearm at a clerk and a small child and taking money from the cash register. Shortly thereafter, the storeowner entered the store and Reed allegedly brandished a firearm at the storeowner and robbed the storeowner of the keys to his vehicle and a firearm. Reed allegedly departed the store in the storeowner’s vehicle and soon encountered officers of the New Mexico State Police and Santa Fe County Sheriff’s Office who responded to a “be on the lookout” callout for Reed. While driving on the frontage road to Interstate 25 and southbound on the Interstate and seeking to evade the officers, Reed allegedly discharged a firearm in the direction of the officers, some of whom returned fire.
Officers of the New Mexico State Police and Santa Fe County Sheriff’s Office arrested Reed without incident on Interstate 25 near Mile Post 247, on state charges filed by the 1st Judicial District Attorney’s Office. Reed remained in state custody until he was transferred to federal custody on Aug. 28, 2017, to face the federal charges against him.
If convicted of the charges in the indictment, Reed faces the following statutory maximum penalties: 20 years of imprisonment on the Hobbs Act robbery charges; 15 years of imprisonment on the carjacking charge; and ten years of imprisonment for being a felon in possession of a firearm. Reed also faces the following statutory mandatory minimum penalties on three of the firearms charges: seven years of imprisonment for brandishing a firearm in relation to the first robbery; 25 years of imprisonment for discharging a firearm in relation to the second robbery; and 25 years of imprisonment for brandishing a firearm in relation to the carjacking. These sentences must be served consecutive to any sentence imposed on the Hobbs Act, carjacking and felon in possession of a firearm charges.
Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Santa Fe office of the FBI, the New Mexico State Police and the Santa Fe County Sheriff’s Office. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
Suffolk Man Pleads Guilty to GI Bill Fraud ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A Suffolk man pleaded guilty yesterday to conspiring to defraud the Department of Veterans Affairs’ Post-9/11 GI Bill educational assistance program.
According to court documents, Kent Chillous, 55, is a veteran of the U.S. Navy who attended the Hampton Roads Skills Center (HRSC) utilizing Post-9/11 GI Bill funds. HRSC purported to be a welding training school offering vocational skills to its students, many of whom were veteran students whose tuition was funded by the Post-9/11 GI Bill. Rather than actually provide an education to students, however, HRSC did not provide regular instruction for any of their course offerings, either in a classroom lecture setting or a practical, hands-on setting. Moreover, the majority of students were not even physically present at HRSC during most of the hours their courses were purportedly held. Indeed, some students never once entered the HRSC building at any point during their period of enrollment.
According to court documents, Chillous was enrolled as an HRSC student between June 2016 and July 2017, during which time he did not receive welding instruction and was rarely, if ever, physically present at the school. Nonetheless, on the basis of his enrollment, the VA paid him a regular housing stipend and paid HRSC for Chillous’ tuition. Additionally, a few months after his enrollment at the school, Chillous and the school’s owner struck a deal for Chillous to recruit veterans to enroll in HRSC, to boost the GI Bill revenue coming into the school. Chillous was paid a recruitment fee of approximately 8% of the tuition HRSC would receive from the VA on behalf of each veteran he successfully enrolled. Over the next 10 months, Kent successfully recruited approximately 20 Post-9/11 GI Bill-eligible veterans to enroll at HRSC.
Chillous pleaded guilty to conspiracy to commit wire fraud and faces a maximum penalty of 20 years in prison when sentenced on January 11, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs, Office of Inspector General; Kim Lampkins, U.S. Department of Veterans Affairs, Office of Inspector General, Special Agent in Charge, Mid Atlantic Field Office; and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge Mark S. Davis accepted the plea. Assistant U.S. Attorneys V. Kathleen Dougherty and Kaitlin C. Gratton are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-81.
Stow attorney charged with tax violationsRead the Press Release
An attorney from Stow was indicted on tax charges, said U.S. Attorney Justin E. Herdman and IRS Special Agent in Charge Ryan L. Korner.
Gregory T. Plesich, 72, was indicted on one count of attempt to evade and defeat the payment of taxes.
Plesich worked as an attorney for Lawrence and Angela Tipton, an Ohio couple that was eventually convicted of tax crimes. They operated a trucking business and other business ventures but did not pay a substantial amount of their taxes, according to the indictment.
In 2004, the IRS filed tax liens against Lawrence Tiption. The IRS did the same against Angela Tipton in 2011. By 2012, their combined tax liabilities, including interest and penalties, was more than $1.7 million, according to the indictment.
Plesich aided and abetted the Tipton’s evasion of taxes by allowing them to use his business account as if it where their personal bank account. The Tiptons gave checks to Plesich, which he deposited into his business account, then wrote checks from the account payable to the Tiptons, according to the indictment.
This took place numerous times in 2013 and 2014, according to the indictment.
Lawrence Tipton was sentenced last year to more than two years in prison while Angela Tipton was sentenced to home confinement.
This case was investigated by the IRS and is being prosecuted by Assistant U.S. Mark Bennett.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Squirrel Hill Man Charged with Attempting to Possess Fentanyl AnalogueRead the Press Release
PITTSBURGH – One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of attempting to possess with intent to distribute butyryl fentanyl, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on September 12 and unsealed on September 19, named Aaron Frankel, 31, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on or about August 17, 2017, Frankel attempted to possess with intent to distribute 10 grams or more of a mixture and substance containing a detectable amount of butyryl fentanyl, a Schedule I controlled substance. Butyryl fentanyl is an analogue of fentanyl that is temporarily controlled under Schedule I of the Controlled Substances Act.
The law provides for a maximum total sentence of not less than 5 years and up to 40 years in prison, a fine not to exceed $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Caitlin A. Loughran is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, the Pennsylvania State Police, and the Drug Enforcement Administration 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.
Sisseton-Wahpeton Tribal Prosecutor Sworn in as Special Assistant United States AttorneyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sisseton-Wahpeton Sioux Tribal prosecutor was sworn in as a Special Assistant U.S. Attorney on September 22, 2017.
Debra C. Flute was sworn in by U.S. District Judge Roberto A. Lange during a ceremony at the Federal Courthouse in Sioux Falls, South Dakota.
Ms. Flute is an enrolled member of the Sisseton-Wahpeton Sioux Tribe and is the Tribe’s Senior in-house Attorney and tribal prosecutor. Debra has primarily practiced Federal Indian Law, Criminal Law, and served on the SD Board of Pardons and Parole from 2008 to 2014. Debra received her BS from Pennsylvania State University and her JD from the University of North Dakota School of Law.
The Sisseton-Wahpeton Sioux Tribe is located in the northeastern part of South Dakota, with land in both South and North Dakota. As a tribal prosecutor, Flute handles matters that arise on tribal land. While the majority of her prosecutions revolve around matters for crimes committed by tribal members, Flute also has the ability to charge non-tribal members for crimes involving domestic violence occurring on tribal land. This ability stems from the tribe’s decision to adopt provisions contained in the Violence Against Women Act, which increased the Tribe’s jurisdiction. In addition, the Sisseton-Wahpeton Sioux Tribe has adopted the provisions of the Tribal Law and Order Act, which enabled the Tribe to impose a sentence of up to three years for felonies committed within its jurisdiction.
Recently the Tribe has been looking for ways to combat the growing methamphetamine problem plaguing its members. By entering into an agreement with the U.S. Attorney’s Office, having Flute designated as a Special Assistant U.S. Attorney, the Tribe is hopeful this will stem the tide of drugs and drug related crimes that are plaguing its communities. Sisseton-Wahpeton Sioux Tribal Chairman Dave Flute stated, “This is a tremendous opportunity for our Tribe to partner with the U.S. Attorney’s Office and other federal agencies to take the lead in the fight against methamphetamine and other drugs that are decimating communities in northeastern South Dakota.”
U.S. Attorney Seiler added, “The use of illegal drugs is becoming an epidemic in our state and on our reservations. To have a seasoned tribal prosecutor the caliber of Debra Flute will be a tremendous asset to enhance our proactive measures to combat drugs infiltrating the Native American culture.”
Discussions are on-going regarding the formation of a regional Tribal, State, and Federal drug task force covering the counties that make up the Sisseton-Wahpeton Sioux Tribe.
Rwandan Man Indicted on Immigration Fraud and Perjury ChargesRead the Press Release
BOSTON – A Rwandan man who fled Rwanda near the end of the 1994 genocide was indicted in federal court in Boston with immigration fraud and perjury in connection with his application for asylum.
Jean Leonard Teganya, 46, was indicted on two counts of immigration fraud and three counts of perjury. In August 2017, Teganya was charged and arrested on a criminal complaint.
As alleged in court documents, Teganya lied about his activities and political affiliation during the 1994 Rwandan genocide, during which approximately 800,000 people were murdered. Prior to and during the genocide, Teganya was a medical student and trainee at the Butare Hospital in Butare, Rwanda. It is alleged that several witnesses present in Butare during the genocide described Teganya as active in the political party of the genocidal regime, the MRND, and its militia, and stated that he actively participated in the persecution of Tutsis, the group that was largely targeted during the genocide.
According to court documents, Teganya left Rwanda in mid-July 1994 and traveled to the Democratic Republic of Congo, India, and then Canada. In 1999, Teganya applied for refugee status and later asylum in Canada. Canadian authorities twice determined that Teganya was not entitled to asylum because he had been complicit in atrocities committed at the Butare Hospital during the genocide. After 15 years of litigation, Teganya evaded the order of deportation and fled across the border into the United States. On Aug. 3, 2014, Teganya was encountered walking on foot after he had crossed from Canada into Houlton, Maine. Teganya was taken into custody and he formally applied for asylum. On the application for Asylum and Withholding of Removal, Teganya made false statements by failing to disclose the extent of his affiliations and activities with the MRND and Hutu extremists.
The charge of immigration fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of perjury provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. U.S. Customs and Border Protection, the U.S. State Department and the Revere Police Department provided valuable assistance. Assistant U.S. Attorneys John A. Capin and Aloke S. Chakravarty of Weinreb’s National Security Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rochester Man Sentenced on Marijuana Trafficking and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Adrian Selever, 27, of Rochester, NY, who was convicted of possession with intent to distribute marijuana and possessing firearms in furtherance of a drug trafficking crime, was sentenced to 53 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that on April 6, 2016, members of the Irondequoit Police Department executed a search warrant at the defendant’s residence at 116 Keating Drive in Rochester. During the search, officers seized three handguns, seven shotguns and two rifles. Officers also seized marijuana, which was packaged for distribution inside plastic “gumball” machine containers, prescription pills and approximately $1,100 in US currency. A digital scale, additional empty gumball machine containers, and numerous types and calibers of ammunition were also recovered.
The sentencing is the result of an investigation by the Irondequoit Police Department, under the direction of Chief Richard Tantalo; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Rapid City Man Indicted for Theft of Federal FundsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man was charged in federal district court with two counts of Theft From a Program Receiving Federal Funds.
Kevin S. Lewis, age 55, was charged on September 19, 2017. He appeared before U.S. Magistrate Judge Daneta Wollmann on September 22, 2017, and pleaded not guilty to the charges. The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund on each count. Restitution may also be ordered.
The charges relate to Lewis, while employed as the managing attorney for Dakota Plains Legal Services, taking money rightfully belonging to Dakota Plains Legal Services. The charges are merely an accusation and Lewis is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Legal Services Corporation, Office of Inspector General. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Lewis was released pending trial. A trial date has not been set.
Puerto Rico Cocaine Trafficker Guilty of Orchestrating Murder of Connecticut ResidentRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found HECTOR CARDONA-DIAZ, 30, of Aguas Buenas, Puerto Rico, guilty of orchestrating the murder of a Connecticut man in December 2014, and a related cocaine trafficking offense. The trial before U.S. District Judge Michael P. Shea began on September 11, and the guilty verdicts were returned yesterday afternoon.
“This defendant orchestrated the murder of an individual in retribution for a drug debt,” said U.S. Attorney Daly. “It’s another senseless violent crime, and one that will result in a lifetime prison term. I commend the Postal Inspectors, members of the DEA Task Force and New Britain Police officers, who together navigated a complex trail of postal, phone and cell site records to solve this murder.”
According to the evidence at trial, on December 30, 2014, Jesus Silva, 24, of Meriden was murdered by a gunshot to the head as he sat in his car on Yeaton Street in New Britain. The investigation revealed that CARDONA-DIAZ was a large-scale narcotics trafficker who regularly supplied Silva and others in the Hartford and Springfield area with distribution quantities of cocaine that he concealed in ceramic moldings and shipped in packages using the U.S. Mail. Silva and others then mailed cash proceeds of the sale of cocaine back to CARDONA-DIAZ. Over time, CARDONA-DIAZ believed that Silva had failed to provide him with a large amount of cash generated from the drug trafficking enterprise and planned his murder.
The investigation further revealed that CARDONA-DIAZ hired Jesus Sierra, of Springfield, Massachusetts, to murder Silva with a promise to pay him $5,000 and supply him with future shipments of cocaine. Sierra then received a firearm from Joel Jaquez, also of Springfield, and promised to pay Jaquez approximately half of the money Sierra was going to be paid by CARDONA-DIAZ.
On December 30, 2014, Sierra arranged to meet Silva in Meriden, purportedly to purchase a car from him. Sierra and Jaquez then traveled to Connecticut to meet Silva. Sierra and Silva then drove together to New Britain under the ruse that Sierra needed a mechanic in New Britain to examine the car. Jaquez followed Sierra and Silva in a separate car. In New Britain, Sierra shot and killed and Silva.
The jury found CARDONA-DIAZ guilty of one count of conspiracy to commit murder for hire resulting in death and one count of murder for hire by interstate travel resulting in death. Each of these charges carry a mandatory term of imprisonment of life. The jury also found CARDONA-DIAZ guilty of one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, an offense that carries a mandatory term of imprisonment of 10 years and a maximum term of imprisonment of life.
A sentencing date has not been scheduled.
In January 2017, Sierra and Jaquez each pleaded guilty to one count of murder for hire by interstate travel resulting in death. They await sentencing.
This matter has been investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration’s Hartford Task Force and New Britain Police Department. The DEA Task Force includes personnel from the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. This case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Geoffrey M. Stone, with the assistance of the New Britain State’s Attorney’s Office.
Public Corruption Indictments Returned Against Three Former Correctional Officers for BriberyRead the Press Release
BRUNSWICK, GA – United States Attorney R. Brian Tanner announced the return of federal indictments charging Tyre Holzendorf, age 27, of St. Mary’s, Georgia, Phillip Smith, age 37, of Kingsland, Georgia, and Glynn Allen Sea, age 29, of Reidsville, Georgia, with multiple counts of bribery in violation of Title 18, United States Code, Section 201.
In the indictments filed against Holzendorf, Smith and Sea, it is alleged that all three defendants were corrections officers at the D. Ray James Correctional Institution in Folkston, Georgia, and that each defendant accepted bribes in exchange for allowing inmates to smuggle contraband into the facility.
Holzendorf and Smith are charged with two counts of bribery, while Sea is charged with three counts of bribery. The maximum sentence for each count is fifteen years’ imprisonment, a $250,000 fine, and a supervised release term of not more than three years.
All three defendants were arraigned on the indictments today before United States Magistrate Judge R. Stan Baker of the United States District Court for the Southern District of Georgia. The indictments are only accusations and are not evidence of guilt. Each defendant is entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The investigation was conducted jointly by the United States Department of Justice, Office of the Inspector General (DOJ-OIG) and the Federal Bureau of Investigation (FBI).
Assistant United States Attorney Brian T. Rafferty is prosecuting the cases on behalf of the United States. For additional information, please contact the United States Attorney’s Office at (912) 652-4422.
Pittsburgh Man Admits Lying of Firearms Purchase FormRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of falsifying information on a form to purchase firearms, Acting United States Attorney Soo C. Song announced today.
John Iatesta, age 41, of Pittsburgh PA, pleaded guilty to a one-count indictment before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Iatesta provided false statements on a form to purchase three firearms. Specifically, he stated that he was purchasing the firearms for himself when, in fact, he was purchasing the firearms for another individual; he also falsely stated that he was not an unlawful user of a controlled substance.
Judge Hornak scheduled sentencing for February 1, 2018. The law provides for a maximum sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Rachael L. Dizard and Heidi M. Grogan are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of John Iatesta.
Pittsburgh Heroin Dealer Indicted for Trafficking Fentanyl Variant and HeroinRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh for heroin and para-fluoroisobutyryl fentanyl trafficking while on federal supervised release for a prior heroin trafficking conviction, Acting United States Attorney Soo C. Song announced today.
The indictment, returned on September 26 and unsealed today following his arrest, charges Shawn Atkins, age 24, of Pittsburgh, with possessing a quantity of a mixture and substance containing heroin and para-fluoroisobutyryl fentanyl with an intent to distribute on June 9, 2017.
The law provides for a maximum total sentence of up to 30 years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Munhall Police Department, the Drug Enforcement Administration and the Federal Bureau of Investigation 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.
Pharmacist Sentenced for Conspiring to Smuggle Misbranded Drugs into U.S.Read the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to three years probation on each count to run concurrently, with 6 months in home detention; forfeiture in the amount of $650,000; $15,000 fine, and $200 special assessment on his conviction of conspiracy to smuggle misbranded drugs and conspiracy to money launder, Acting United States Attorney Soo C. Song announced today.
United States District Judge Cathy Bissoon imposed the sentence on Jeffrey A. Markovitz, age 62, of Clairton, Pa., who previously pleaded guilty to conspiracy to smuggle into the United States drugs made for foreign markets, and conspiracy to money launder.
According to the information presented to the court, Markovitz, a pharmacist, previously owned Dierken’s Pharmacy in Monangahela, Pa. He ordered drugs from a Canadian company that sold drugs made in several other countries such as Spain and Turkey. Markovitz used these foreign made drugs to fill prescriptions. Markovitz wire transferred to Canada a total of $55,895.38 in payment for the smuggled drugs. All drugs in the United States are required to be monitored from manufacture to wholesale distribution to ultimate consumption by patients. In the event of a recall, this closed system enables warnings to be given to patients to not to consume a recalled drug. Foreign made drugs escape any oversight that all legitimate companies must undergo. Thus, the importation and sale of foreign made drugs destroy the protections provided by the U.S. Food and Drug Administration that ensure the safe handling of drugs by manufacturers and wholesalers, and that protect patients from consuming a recalled drug.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the U.S. Food and Drug Administration, Office of Criminal Investigations, and the U.S. Internal Revenue Service, Criminal Investigations, for the investigation leading to the successful prosecution of Jeffrey A. Markovitz.
Perryville Pharmacist Sent to Prison for 10 Years, to Pay $850,000 for Role in Pill SchemeRead the Press Release
LITTLE ROCK— Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, Stephen G. Azzam, Special Agent in Charge of the Drug Enforcement Administration (DEA) New Orleans Field Division, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI) announced today that Christopher Grant Watson, 44, of Perryville, a former pharmacist and owner of Perry County Food and Drug Store, will be spending the next 10 years in federal prison.
United States District Court Judge James M. Moody sentenced Watson to a statutory maximum 120 months’ imprisonment for Watson’s lead role in a conspiracy to unlawfully distribute prescription opioid pills from his drug store, his participation in a scheme to defraud Medicare/Medicaid, and a structuring offense. Watson was also ordered to pay a monetary judgement in the amount of $850,000 representing unlawful proceeds from the offense, which includes $54,000 in restitution to Medicare/Medicaid.
On October 5, 2016, Watson pleaded guilty to conspiracy to dispense hydrocodone without an effective prescription, healthcare fraud (resulting from falsely billing Medicare Part D for patients’ claims), and structuring bank account cash deposits to avoid bank reporting requirements. Judge Moody sentenced Watson to the statutory maximum on all three charges—60 months on the drug conspiracy and structuring charges, and 120 months on the healthcare fraud—and ordered the sentences to run concurrently.
Christopher Watson was a trusted local pharmacist upon whom his community depended,” Harris said. “Instead, he helped spread poison and addiction in his community. His criminal actions contributed to one of the largest health epidemics Arkansas is facing. This office is committed to rooting out all bad actors in the healthcare industry, and we will continue to aggressively pursue investigations into crimes such as Watson’s.”
In July 2014, as part of the national effort, the DEA New Orleans Field Division launched an aggressive campaign that targeted the largest sources of illegally diverted pharmaceuticals in Arkansas, Louisiana, Mississippi, and Alabama. This effort, dubbed Operation Pilluted, involved the extensive investigation of rogue practitioners, pharmacists, and other DEA Registrants, as well as the aggressive pursuit of more traditional criminal organizations involved in the distribution of pharmaceuticals. Under the auspices of Operation Pilluted, concerted efforts were initiated to heighten community awareness concerning the perils of prescription drug diversion and the strategic implementation/strengthening of associated diverted pharmaceutical laws.
On May 6, 2015, a Grand Jury returned a superseding federal indictment against Watson and 27 others following a year-long investigation initiated by the DEA and the Arkansas State Police (ASP). Watson and his father, Tommy Watson, owned and operated the Perry County Food and Drug store, and Christopher Watson was the managing pharmacist at that location. Christopher Watson sold tens of thousands of Schedule II, III, and IV pills and other pharmaceuticals from the pharmacy shelves after hours and forged prescriptions to account for the missing pills, and filled fraudulent prescriptions presented by pharmacy customers. A pharmacy audit showed more than 49,000 oxycodone pills missing and more than 72,000 hydrocodone pills missing.
Tommy Watson, 68, pleaded guilty to misprision of a felony (concealing knowledge of a felony from authorities) on February 1, 2017, and on August 30, 2017, he was sentenced to two years’ probation and a $50,000 fine.
“The abuse of prescription drugs remains a significant problem in communities across the nation, including here in the Eastern District of Arkansas,” said Azzam, Special Agent in Charge of the DEA New Orleans Field Division, which includes the Little Rock District Office. “For the health and safety of our citizens, the DEA will continue to target the illegal diversion of these pharmaceuticals, which can destroy lives. It is particularly appalling when the perpetrator of such illegal acts is a health care professional, like this pharmacist, responsible for ensuring that potentially dangerous drugs are dispensed properly. We hope that the sentence Christopher Watson received in this case serves as a reminder to anyone who might illegally divert pharmaceuticals that they will be held accountable for the harm they cause.”
The operation resulted in the issuance of an Immediate Suspension Order to the Perry County Food and Drug store by the Administrator of DEA on the grounds that the pharmacy constituted an imminent danger to public health and safety. The employees of the pharmacy were prohibited from possessing and/or dispensing controlled substances pending a federal administrative hearing. Following the hearing, the pharmacy’s DEA Registration was permanently revoked on January 26, 2015.
“Watson used his position as a pharmacist, a position of trust, to illegally distribute drugs to members in his community,” Upchurch said. “It’s this kind of illegal activity that allows the opioid epidemic to metastasize throughout our country. I am proud of and appreciate the work conducted by the FBI, U.S. Attorney’s Office for the Eastern District, DEA—Little Rock Tactical Division Squad, Conway Police Department, IRS, Arkansas State Police, and our other law enforcement partners as they continue to investigate and bring to justice individuals conducting this type of illegal practice.”
The $850,000 judgment represents proceeds Watson received from his illegal sales of hydrocodone and other pharmaceuticals, at the price of $2 per hydrocodone pill and $15 per oxycodone pill. Additionally, Watson received $54,000 from Medicare after billing Medicare patient accounts for high dollar pharmaceuticals which the patients never received.
“The role of IRS-CI in narcotics investigations is to follow the money and unravel complex financial transactions,” said Tracey D. Montaño, Special Agent in Charge, IRS Criminal Investigation. “Mr. Watson executed a scheme to defraud the Medicare system for his own personal financial gain, and while doing so illegally distributed narcotics into the community, contributing to a growing and concerning epidemic. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
Of the 28 original defendants, 23 have pleaded guilty. Charges were dismissed on five defendants.
This case was investigated by DEA—Little Rock Tactical Diversion Squad, which includes officers from the Conway Police Department, Beebe Police Department, Little Rock Police Department, Pine Bluff Police Department, Jefferson County Sheriff’s Office, and the Benton Police Department. Also involved in the investigation were the FBI, Arkansas State Police, IRS—Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Secret Service, United States Marshals Service, and the Perry County Sheriff’s Office.
Ohio woman sentenced for firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA – Erin Marie Rudolph, of Dennison, Ohio, was sentenced today to 34 months incarceration for an illegal firearm charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Rudolph, age 24, pled guilty to one count of “Unlawful Possession of a Firearm” in August 2017. Rudolph, having previously being convicted of a felony in the Circuit Court of Ohio County, was in possession of .22 caliber pistol with an obliterated serial number. The crime occurred May 10, 2017 in Ohio County.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Norwich Podiatrist Pays $35,000 to Settle Allegations under the False Claims ActRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDWARD TARKA, a podiatrist with a practice in Norwich, has entered into a civil settlement with the government in which he will pay $35,000 to resolve allegations that he violated the False Claims Act.
The allegations against TARKA involve fraudulent billing to Medicare for avulsion services, a surgical procedure to treat ingrown toenails. The procedure involves the surgical separation and removal of all or part of a toenail from the tip of the nail back to the base of the nail. The government alleges that TARKA submitted claims to Medicare for avulsion services under CTP Code 11730 that were not performed in accordance with Medicare requirements. Specifically, the government alleges that TARKA “upcoded” ingrown toenail services, submitting claims to Medicare for avulsion services when in fact he had provided only “routine foot care” services to his Medicare patients.
Routine foot care is typically not a payable service under relevant Medicare regulations, except in limited circumstances for patients with certain systemic conditions or other significant medical issues.
To resolve his liability under the False Claims Act, TARKA will pay $35,000, in order to reimburse the Medicare program for conduct occurring between August 2008 and August 2012.
Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $10,957 to $21,916 for each false claim.
This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Anne F. Thidemann with the assistance of Auditor Kevin A. Saunders.
U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or. 1-800-HHS-TIPS.
Norwegian Company Agrees to Plead Guilty to Price Fixing on Ocean Shipping Services for Cars and TrucksRead the Press Release
A Norwegian corporation has agreed to plead guilty and pay a $21 million criminal fine for its involvement in a conspiracy to fix prices, allocate customers, and rig bids, the Department of Justice announced today.
According to a one-count felony charge filed today in the U.S. District Court for the District of Maryland, Höegh Autoliners AS conspired with competitors to suppress and eliminate competition by allocating customers and routes, rigging bids, and fixing prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore. Höegh participated in this conspiracy from as early as January 2001 until at least September 2012.In addition to the fine, Höegh has agreed to be placed on corporate probation for three years to ensure full compliance with the antitrust laws. Höegh has also agreed to cooperate with the department’s ongoing investigation.
“With today’s charge, the United States has brought to justice another participant in a long-running global conspiracy to subvert competition for shipping services,” said Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division. “We expect Höegh to reform its corporate culture and prevent criminal conduct from recurring.”
“Today’s plea announcement is significant and highlights the FBI’s collaboration with our partner agencies as we hold this company accountable for this elaborate antitrust scheme,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division. “The effort by investigators and prosecutors in this case cannot be overstated and will play a part in restoring confidence in the shipping industry. Our job is to protect victims who don’t see these crimes occurring, but who always end up paying the price.”
Höegh is the fifth company to plead guilty in this investigation—bringing the total criminal fines to over $255 million. Four executives have already pleaded guilty and been sentenced to prison terms. An additional seven executives are known to have been indicted, but remain fugitives.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the international roll-on, roll-off ocean shipping industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Baltimore Field Office, along with assistance from the U.S. Customs and Border Protection Office of Professional Responsibility, Special Agent in Charge Washington/Special Investigations Unit. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/report-violations, or call the FBI’s Baltimore Field Office at 410-265-8080.
Murfreesboro Podiatrist Convicted of 16-Month Scheme to Defraud Medicare and Other Health Care Benefit ProgramsRead the Press Release
Podiatrist John J. Cauthon, 51, of Murfreesboro, Tenn., was convicted today by a federal jury of four counts of health care fraud involving a 16-month scheme to defraud Medicare and other health care benefit programs, announced Donald Q. Cochran, U.S. Attorney for the Middle District of Tennessee. The convictions came after a two-week trial before United States Chief District Judge Waverly D. Crenshaw, Jr. Cauthon was also acquitted of three counts of health care fraud.
According to the Indictment and the evidence presented at trial, from May 2014 to August 2015, Cauthon executed a scheme to defraud Medicare, TennCare, and Blue Cross Blue Shield of Tennessee by submitting false and fraudulent claims for surgical procedures he did not perform. Cauthon traveled around to nursing homes across Tennessee and up-coded routine foot care to nail avulsions, which is paid out a higher rate by Medicare. Cauthon’s former employees testified at trial that they witnessed him prescribe medically unnecessary ankle braces to bed-bound patients and witnessed him pocket Medicare funds after durable medical equipment was returned or never picked up by patients.
Cauthon is scheduled to be sentenced on January 26, 2018. He faces up to 10 years in prison and a $250,000 fine for each count of health care fraud.
This case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General; the Tennessee Bureau of Investigation; and the United States Attorney’s Office for the Middle District of Tennessee. Assistant U.S. Attorneys Henry C. Leventis and Ryan R. Raybould are prosecuting the case.
Moore Woman Sentenced to 63 Months in Prison for Bank and Bankruptcy FraudRead the Press Release
Oklahoma City, Oklahoma – ERICKA K. SMITH, 33, of Moore, Oklahoma, was sentenced yesterday to 63 months in federal prison for defrauding Frontier State Bank and committing bankruptcy fraud, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On December 14, 2016, the U.S. Attorney’s Office charged Smith with one count of bank fraud and one count of bankruptcy fraud. It alleged that she operated Longhorn Ranch Trailer Sales, which bought and sold vehicles and horse trailers. According to the charges, she defrauded Frontier State Bank in May 2011 by making false statements about her income when she applied for a loan to buy a truck for $68,000. The truck served as collateral to protect the bank’s funds. Her fraud also involved creating a false lien release for the truck and selling it to a Longhorn Ranch Trailer Sales customer in Texas for $73,000 without notifying the bank. According to the charges, Smith also committed fraud during her 2012 bankruptcy by testifying falsely that she had sold the truck financed by Frontier State Bank to a person in California for only $16,000.
Smith pled guilty to both counts on January 6, 2017.
On September 26, 2017, U.S. District Judge Vicki Miles-LaGrange sentenced Smith to 63 months in prison, to be followed by five years of supervised release. The court found that Smith’s similar fraudulent conduct caused losses totaling $1,476,009.96. It also found that her fraudulent conduct involved sophisticated means. After imprisonment, Smith must pay restitution to eight different financial institutions in the total amount of $1,163,981.81.
This case is the result of an investigation by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Kerry A. Kelly.
Mexican national pleads guilty to illegally possessing a rifle, ammunitionRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Mexican national pleaded guilty Tuesday to being an illegal alien in possession of a rifle and ammunition.
Juan Martin Frias-Ortiz, 54, of Mexico, pleaded guilty before Chief District Judge Dee. D. Drell to one count of possession of a firearm and ammunition by an illegal alien. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating Frias-Ortiz after receiving information that he was in the country illegally and had been shooting firearms on his property. Agents determined that Frias-Ortiz was a citizen of Mexico and in the United States illegally after his H-2A Visa expired in 2014. During the execution of a search warrant on Frias-Ortiz’s Bunkie, La., home on August 3, 2017, agents found a Marlin Model 60 22LR rifle, a box of .22LR and 12-gauge shotgun ammunition.
Friaz-Ortiz faces up to 10 years in prison, three years of supervised release and a $250,000 fine. He also faces forfeiture of the weapons seized. The court set sentencing for January12, 2018.
The ATF, the Department of Homeland Security Immigration and Customs Enforcement, the U.S. Marshals Service, and the Avoyelles Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Mike O’Mara is prosecuting the case.
Martins Ferry, Ohio man convicted of cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Shanwdale Saunders, of Martins Ferry, Ohio, was sentenced today to 168 months incarceration for cocaine trafficking, Acting United States Attorney Betsy Steinfeld Jividen announced.
Shawndale Saunders, age 34, pled guilty to one count of “Conspiracy to Distribute 280 Grams or More of Cocaine Base” in June 2017. Throughout April and May 2016, Saunders admitted to conspiring with other individuals to transport cocaine across state lines from Ohio into West Virginia in order to possess and sell the drug in Ohio County, West Virginia.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Martins Ferry, Ohio Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Marshall County man sentenced for role in Pittsburgh, PA to WV and OH heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA –Jeff R. Andlinger, 36, of Benwood, West Virginia was sentenced today to 24 months incarceration for heroin trafficking, Acting United States Attorney Betsy Steinfeld Jividen announced.
Andlinger participated in a drug distribution network in which heroin was transported across state lines from Pittsburgh, Pennsylvania to locations in West Virginia and Ohio for redistribution and sale.
Andlinger sold heroin in January 2015 near a public elementary school in Marshall County, West Virginia. He pled guilty to one count of “Distribution of Heroin within 1,000 feet of a Protected Location” in 2015.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Drug Enforcement Administration investigated.
U.S. District Judge John Preston Bailey presided.
Makah Tribal Member Sentenced to 5+ Years in Prison for Sexual Molestation of 5-Year-Old ChildRead the Press Release
A 26-year-old member of the Makah Tribe was sentenced September 26, 2017, in U.S. District Court in Tacoma to 63 months in prison for sexually molesting a 5-year-old child, announced U.S. Attorney Annette L. Hayes. JORDAN JAMES COLFAX was babysitting the young child when the sexual abuse occurred on Makah Tribal land. At the sentencing hearing U.S. District Judge Benjamin H. Settle called COLFAX’s conduct “monstrous” and imposed 20 years of supervised release following the prison sentence.
According to records filed in the case, COLFAX was indicted in December 2016 and pleaded guilty to Abusive Sexual Contact in April 2017. The sexual abuse occurred between August 2015 and April 2016 when COLFAX, then age 24, was babysitting the 5-year-old child. In April 2016, the child disclosed the abuse to a relative who contacted Child Protective Services (CPS). CPS notified Neah Bay Public Safety (NBPS), the law enforcement department of the Makah Tribe. COLFAX was interviewed and arrested in May 2016. Because the crime involves tribal members on tribal land, federal authorities have jurisdiction.
The case was investigated by Neah Bay Public Safety and the FBI. The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London is one of two Tribal Liaisons for the U.S. Attorney’s Office.