Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 10 August 2017
Dorchester Man Pleads Guilty to Role in $4 Million Bank Fraud ConspiracyRead the Press Release
BOSTON – A Dorchester man pleaded guilty today in federal court in Boston in connection with a $4 million bank fraud scheme.
Charles Washington, 44, pleaded guilty today to one count of bank fraud conspiracy and four counts of bank fraud for his role in coordinating unauthorized withdrawals from federally insured banks. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Nov. 2, 2017.
Washington obtained bank account information, personally identifiable information, and sample signatures for bank customers with high balances. He recruited runners to impersonate the account holders at bank branches in order to make unauthorized withdrawals and obtained and distributed fake driver’s licenses to the runners that bore the runners’ photographs with the account holders’ personal information. Washington instructed the runners on how to forge the victims’ signatures. To avoid detection, runners withdrew money from victims’ accounts at several different bank branches.
Washington and others also recruited runners to open bank accounts (known as drop accounts) in the name of non-existent businesses (known as shell business). The shell businesses were registered and named as if they were title companies, property management companies, contracting businesses, and other businesses for which incoming large-dollar wire transfers would not be unusual. Washington provided the shell businesses’ information to co-conspirators who made unauthorized wire transfers in the hundreds of thousands of dollars into the drop accounts. Once the drop accounts were funded with unauthorized wire transfers, Washington and co-conspirators accompanied runners to bank branches to withdraw the money -- in cash, by check, or by wire transfers to other drop accounts -- before the victims of the unauthorized wire transfers realized that their accounts had been compromised.
Washington and co-conspirators gained unauthorized access to approximately $4 million - either in bank accounts that they took over, or in proceeds unlawfully wired to drop accounts for withdrawal - and successfully withdrew approximately $2 million.
The charges of bank fraud and bank fraud conspiracy provide for a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $1 million, and restitution. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William Evans made the announcement today. Assistant U.S. Attorney Seth B. Kosto of Weinreb’s Cybercrime Unit is prosecuting the case.
Developer Sentenced to Prison for Bank Fraud in Connection with Carbondale Apartment ComplexRead the Press Release
On August 9, 2017, Christopher E. Creek, 56, of Champaign, IL, was sentenced to 12 months and 1 day in federal prison on his federal bank fraud conviction, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Creek’s conviction resulted from his participation as a developer for the construction of an apartment complex in Carbondale, IL, known as the Pointe at SIU.
When he pled guilty on May 9, 2017, Creek admitted that he submitted fraudulent requests for draws of construction loan funds to the banks that financed the construction of the apartment complex. Specifically, Creek submitted documents to the banks that falsely stated that the framing for the project had been provided by a company called "Southern Framing," and that the foundation work had been done by a company called "Solid as a Rock." Both "Southern Framing" and "Solid as a Rock" were fictitious entities that Creek created. Creek deposited the checks that were payable to the fictitious entities into bank accounts that he controlled. He then used those funds for his own purposes, including paying subcontractors and materials suppliers from prior jobs to whom he still owed money.
Creek’s sentencing hearing was held in United States District Court in Benton, Illinois. In addition to the prison sentence, Creek was also ordered to pay $376,890.84 in restitution to the victims of his crime and fined an additional $2,000. The judge also ordered Creek to serve three years of supervised release after he is released from prison.
The investigation was conducted by agents from the Springfield Division, Marion, Illinois, Resident Agency, of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
Defense Contractor ADS Inc. Agrees to Pay $16 Million to Settle False Claims Act Allegations Concerning Fraudulently Obtained Small Business ContractsRead the Press Release
Virginia Beach, Virginia-based contractor ADS Inc. and its subsidiaries have agreed to pay the United States $16 million to settle allegations that they violated the False Claims Act by knowingly conspiring with and causing purported small businesses to submit false claims for payment in connection with fraudulently obtained small business contracts, the Department of Justice announced today. The settlement further resolves allegations that ADS engaged in improper bid rigging relating to certain of the fraudulently obtained contracts. The settlement with ADS ranks as one of the largest recoveries involving alleged fraud in connection with small business contracting eligibility.
“Small or disadvantaged businesses serve as important engines of economic growth, and the United States utilizes small business set-aside contracts to aide those businesses in their development,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When ineligible companies improperly obtain set-aside contracts, they prevent the small business community from receiving the assistance that Congress intended.”
In order to qualify as a small business, companies must meet defined eligibility criteria, including requirements concerning size, ownership, and operational control. The settlement with ADS resolves allegations that ADS, together with several purported small businesses that it controlled, fraudulently induced the government to award certain small business set-aside contracts by misrepresenting eligibility requirements. The purported small businesses affiliated with ADS include Mythics Inc., London Bridge Trading Co. Ltd., as well as MJL Enterprises LLC, which falsely claimed to be an eligible service-disabled veteran-owned company, and SEK Solutions LLC and Karda Systems LLC, both of which falsely claimed to qualify as socially or economically disadvantaged businesses under the Small Business Administration’s 8(a) Business Development Program. ADS and its affiliates allegedly concealed the companies’ affiliations with ADS and knowingly made misrepresentations concerning the size of the businesses and their eligibility as service-disabled or 8(a) qualified businesses. Finally, the settlement resolves allegations that ADS engaged in illegal bid rigging schemes that inflated or distorted prices charged to the government under certain contracts.
“This settlement reflects the government’s commitment to ensure that its business partners are truthful in their dealings with the United States,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “Contractors who attempt to disguise or misrepresent themselves to obtain funds reserved to promote small and disadvantaged businesses will be held accountable for their fraud on the public fisc.”
“The actions of ADS and its affiliated entities deprived legitimate small businesses of valuable federal contracting opportunities.” said Acting Inspector General Hannibal “Mike” Ware. “OIG will aggressively pursue companies that, through false statements, wrongfully benefit from small business set-aside contracts. I want to thank the Department of Justice for its leadership and dedication to serving justice in this case.”
“This case is yet another example of the tremendous results achieved through the joint efforts of the SBA, the Department of Justice, and other partner agencies, to uncover and forcefully respond to civil fraud committed by those participating in Federal Government contracting programs,” said SBA General Counsel Christopher M. Pilkerton. “This case involved fraud perpetrated in the Service-Disabled Veteran-Owned Small Business Contracting Program and the 8(a) Program for disadvantaged individuals. Identifying and aggressively pursuing instances of civil fraud by participants in these procurement programs and other set aside contracting programs, is one of SBA’s top priorities.”
The settlement with ADS resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in federal district court in the District of Columbia by Ameliorate Partners LLP. As part of today’s resolution, the whistleblower will receive approximately $2.9 million.
The settlement is the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the District of Columbia and the Eastern District of Virginia, the Small Business Administration’s Office of Inspector General, and the General Services Administration’s Office of Inspector General.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Defense Contractor ADS Inc. Agrees to Pay $16 Million to Settle False Claims Act AllegationsRead the Press Release
WASHINGTON - Virginia Beach, Virginia-based contractor ADS Inc. and its subsidiaries have agreed to pay the United States $16 million to settle allegations that they violated the False Claims Act by knowingly conspiring with and causing purported small businesses to submit false claims for payment in connection with fraudulently obtained small business contracts, the Department of Justice announced today. The settlement further resolves allegations that ADS engaged in improper bid rigging relating to certain of the fraudulently obtained contracts. The settlement with ADS ranks as one of the largest recoveries involving alleged fraud in connection with small business contracting eligibility.
"Small or disadvantaged businesses serve as important engines of economic growth, and the United States utilizes small business set-aside contracts to aide those businesses in their development,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When ineligible companies improperly obtain set-aside contracts, they prevent the small business community from receiving the assistance that Congress intended.”
“This settlement reflects the government’s commitment to ensure that its business partners are truthful in their dealings with the United States,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “Contractors who attempt to disguise or misrepresent themselves to obtain funds reserved to promote small and disadvantaged businesses will be held accountable for their fraud on the public fisc.”
In order to qualify as a small business, companies must meet defined eligibility criteria, including requirements concerning size, ownership, and operational control. The settlement with ADS resolves allegations that ADS, together with several purported small businesses that it controlled, fraudulently induced the government to award certain small business set-aside contracts by misrepresenting eligibility requirements. The purported small businesses affiliated with ADS include Mythics Inc., London Bridge Trading Co. Ltd., as well as MJL Enterprises LLC, which falsely claimed to be an eligible service-disabled veteran-owned company, and SEK Solutions LLC and Karda Systems LLC, both of which falsely claimed to qualify as socially or economically disadvantaged businesses under the Small Business Administration’s 8(a) Business Development Program. ADS and its affiliates allegedly concealed the companies’ affiliations with ADS and knowingly made misrepresentations concerning the size of the businesses and their eligibility as service-disabled or 8(a) qualified businesses. Finally, the settlement resolves allegations that ADS engaged in illegal bid rigging schemes that inflated or distorted prices charged to the government under certain contracts.
"The actions of ADS and its affiliated entities deprived legitimate small businesses of valuable federal contracting opportunities.” said Acting Inspector General Hannibal “Mike” Ware. “OIG will aggressively pursue companies that, through false statements, wrongfully benefit from small business set-aside contracts. I want to thank the Department of Justice for its leadership and dedication to serving justice in this case.”
“This case is yet another example of the tremendous results achieved through the joint efforts of the SBA, the Department of Justice, and other partner agencies, to uncover and forcefully respond to civil fraud committed by those participating in Federal Government contracting programs,” said SBA General Counsel Christopher M. Pilkerton. “This case involved fraud perpetrated in the Service-Disabled Veteran-Owned Small Business Contracting Program and the 8(a) Program for disadvantaged individuals. Identifying and aggressively pursuing instances of civil fraud by participants in these procurement programs and other set aside contracting programs, is one of SBA’s top priorities.”
The settlement with ADS resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in federal district court in the District of Columbia by Ameliorate Partners LLP. As part of today’s resolution, the whistleblower will receive approximately $2.9 million.
The settlement is the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the District of Columbia and the Eastern District of Virginia, the Small Business Administration’s Office of Inspector General, and the General Services Administration’s Office of Inspector General.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Dauphin County Man Charged with Bank RobberyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David Wayne Miles, age 46, of Harrisburg, Pennsylvania, was indicted on August 9, 2017, for bank robbery and attempted bank robbery.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Miles robbed the Orrstown Bank on Simpson Street, Mechanicsburg, Pennsylvania, taking approximately $12,348, on April 6, 2017, and again on April 26, 2017, taking approximately $11,664. The indictment also alleges that on May 31, 2017, Miles attempted to rob the Community State Bank of Orbisonia, on Waterfall Road, Waterfall, Pennsylvania.
The case was investigated by the Federal Bureau of Investigation, the Mechanicsburg Police Department, and the Pennsylvania State Police. Assistant United States Attorney Daryl F. Bloom is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each count of bank robbery is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Coraopolis Man Charged with Distributing Fentanyl Resulting in DeathRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on August 8 and unsealed today, named Cleo Maurice Bronaugh, 40, of Coraopolis, PA as the sole defendant.
According to the indictment, on March 5, 2017, Bronaugh possessed with intent to distribute and distributed fentanyl that caused the serious bodily injury and death of a person who used that fentanyl.
The law provides for a maximum total sentence of up to life in prison, a fine of not more than $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Coraopolis Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Columbus Man Pleads Guilty to Dealing Lethal Heroin Fentanyl MixRead the Press Release
COLUMBUS, Ohio – Richard R. Edwards, 28, of Columbus, pleaded guilty in U.S. District Court to distributing heroin and fentanyl that resulted in the death or serious bodily injury of another.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Prosecutor Ron O’Brien, Franklin County Sheriff Dallas Baldwin and other members of the Sheriff’s Office’s Heroin Overdose Prevention & Education (HOPE) Task Force announced the plea entered into today before U.S. Magistrate Judge Elizabeth A. Preston-Deavers.
In the statement of facts filed as part of the plea agreement in this case, Edwards admitted that his distribution of heroin and fentanyl led to a non-fatal overdose of a Columbus man in August of 2106, and a fatal overdose of a Columbus woman in December of 2016.
Edwards was arrested in March and has remained in custody since.
Distribution of heroin in this case is punishable by up to 20 years in prison.
“We will continue to work with all of our law enforcement partners through initiatives like the HOPE Task Force to bring the available federal tools and resources to bear on the narcotics traffickers who are causing so many deaths and overdoses in our Southern Ohio communities,” U.S. Attorney Glassman said.
“A fatal dose of fentanyl can fit inside the tip a finger nail, making it the deadliest chemical substance that we have to contend within the law enforcement community,” said Special Agent in Charge Francis. “Today’s guilty plea demonstrates our unrelenting resolve to bring to justice those responsible for distributing this lethal poison in our communities.”
“This is the first case investigated by the Franklin County HOPE Task Force to be adjudicated at the Federal Level since its inception in January of 2016,” said Sheriff Baldwin. “The HOPE Task Force is a Franklin County Sheriff’s Office led initiative which investigates Fatal and Non-Fatal overdose incidents with the combined objectives of incarcerating those responsible for the sale of deadly and dangerous opiates which cause death and/or serious physical harm, and linking survivors of Non-Fatal overdoses with Healthcare, Treatment, and Recovery programs overseen and administrated by Southeast Healthcare Inc.”
“This case is another example of the collaborative effort between all agencies working together in the prosecution of criminals selling drugs on the streets that are killing people,” Prosecutor O’Brien said. “We will continue to stand united against this kind of criminal conduct that continues to destroy lives on a daily basis.”
U.S. Attorney Glassman commended the investigation of this case by HSI and HOPE Task Force officers. Deputy Criminal Chief Michael J. Hunter is representing the United States in this case.
Established in 2016, the Heroin Overdose Prevention & Education Task Force was created as a restructuring of the Franklin County Drug Task Force. Experienced narcotics and homicide detectives working on the HOPE Task Force are treating opiate overdose scenes as crime scenes; investigating the source of the supply that caused the overdose. This case represents the first federal prosecution of a “death-resulting” case in Columbus that stemmed from a joint investigation with the HOPE Task Force.
# # #
Columbia Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on August 9, 2017, Steven D. Blosser, 40, Columbia, IL, pled guilty to an Indictment charging him with Receipt of Child Pornography which carries a penalty of a term of imprisonment of not less than five (5) years but not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years to life.
Facts stipulated to by the parties were that, on March 2, 2016, a search warrant was executed at Blosser’s residence in Columbia, Illinois. Among the items seized from the defendant’s residence were an Apple iPad and a Dell desktop computer. While the search warrant was being executed, Blosser provided a voluntary, videotaped statement. During his statement, the defendant admitted having child pornography on his Apple iPad, stating that it had been on there "for years." The defendant also admitted downloading child pornography and provided the officers with a name of a website that he visited to find child pornography. He said that he had been downloading child pornography "as far back as I can remember."
Blosser also stipulated that a forensic review of his Dell computer revealed that it contained 84 image files of child pornography while a forensic review of his iPad revealed 2,124 image files of child pornography. In addition, the forensic review of the two devices revealed that, from on or about September 16, 2015, until on or about February 19, 2016, the defendant received images of child pornography, including those charged in the indictment.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Columbia, Illinois, Police Department and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Chicago Police Officer Convicted of Obstruction of Justice for Passing Law Enforcement Information to Target of Federal Drug ProbeRead the Press Release
CHICAGO — A federal jury today convicted a Chicago Police officer on an obstruction charge for notifying a high school friend that he was the target of a federal drug investigation.
RONALD COLEMAN notified his friend's cousin that police were planning to search 10-12 houses in the friend's neighborhood, including the friend's house, as part of an investigation into drug sales. The probe involved surveillance and wiretaps and centered on the primary drug supplier, RODNEY BEDENFIELD, who was an associate of Coleman’s friend. Coleman, a Chicago Police officer working the case with the U.S. Drug Enforcement Administration, knew that his friend was involved in Bedenfield’s drug trafficking activities. On June 9, 2014, Coleman contacted the friend’s cousin about the impending search. Upon learning of it, the friend in turn passed along the information to Bedenfield, who quickly moved drugs and other contraband to an alternative location.
After a four-day trial in federal court in Chicago, the jury on Thursday convicted Coleman, 46, of Chicago, on one count of obstruction of justice. The conviction is punishable by up to 20 years in prison. U.S. District Judge Charles Norgle set sentencing for Nov. 15, 2017, at 11:30 a.m.
The verdict was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
As a result of the leaked information, Bedenfield was observed via law enforcement surveillance carrying large bags out of a residence in the North Lawndale neighborhood and transporting them to an alternative location around the corner. On June 12, 2014, agents and officers executed an additional search warrant on the alternative location and discovered approximately 400 grams of heroin, two containers of lactose, five handguns, one rifle, multiple handgun magazines, ammunition, three digital scales, two heat sealers, a hand mixer, plastic baggies and a bill counter.
Bedenfield, 43, of Chicago, was indicted separately on multiple drug trafficking and firearms charges. He pleaded guilty to the narcotics-related counts and was convicted of the firearms-related counts at a bench trial in federal court in Chicago. He was sentenced to 18 years in prison.
The government is represented by Assistant U.S. Attorneys Shoba Pillay and Megan Cunniff Church.
Chester, PA Man Charged with Illegal Reentry After DeportationRead the Press Release
Estuardo Felix, a/k/a “Estuardo Lopez-Felix,” of Chester, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about July 12, 2017, Felix, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about June 21, 2012 and March 18, 2015.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Jonathan B. Ortiz.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
California Man Sentenced to Nine and a Half Years for Federal Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Fermin Artiaga, 36, of Perris, Calif., was sentenced today in federal court in Albuquerque, N.M., to 114 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Artiaga was arrested in Aug. 2015, and was charged by a criminal complaint with a methamphetamine trafficking offense after the DEA seized approximately 1.95 kilograms (4.29 pounds) of methamphetamine during an interdiction investigation at the Amtrak Train Station in Albuquerque. The methamphetamine was concealed in four bundles inside Artiaga’s suitcase. Artiaga was indicted on Sept. 10, 2015, and was charged with possession of methamphetamine with intent to distribute.
On April 6, 2017, Artiaga pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Artiaga admitted that on Aug. 22, 2015, he transported four bundles of methamphetamine weighing an aggregate of 1758 grams in a suitcase into New Mexico on an Amtrak train.
This case was investigated by the Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorney Presiliano Torrez.
Calera Man Sentenced to Nearly 16 Years in Prison as an Armed Career CriminalRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Calera man to 15 years and eight months in prison as an armed career criminal, announced Acting U.S. Attorney Robert O. Posey and Bureau of Alcohol, Tobacco, Firearms, and Explosives Assistant Special Agent in Charge David Hyche.
U.S. District Court Judge Virginia Emerson Hopkins sentenced VAUGHN ALEXANDER CROPPER, 29, for possessing a pistol after previously being convicted of a felony.
According to evidence at his April trial, Birmingham police arrested Cropper in the early morning hours of Sept. 25, 2016, in the parking lot of the USA Economy Lodge on Crestwood Boulevard in Irondale. Officers were responding to a complaint of a disturbance involving a man with a gun. The police, who were wearing body cameras, captured video of the defendant reaching into his pocket before officers seized the gun and placed him under arrest.
Cropper has multiple drug-trafficking felonies and qualified as an armed career criminal, thus facing a minimum sentence of 15 years and a maximum sentence of life in prison.
The ATF and Birmingham Police Department investigated the case, which Assistant U.S. Attorney Gregory R. Dimler prosecuted.
###
CEO Indicted for Wire Fraud and Aggravated Identity TheftRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Zheng Geng, a/k/a “Jason Geng”, age 59, of Vienna, Virginia, on charges related to a scheme to defraud the United States. The indictment was returned on August 9, 2017, and unsealed today upon the arrest of Geng. Geng is the Chief Executive Officer of Xigen LLC (Xigen), which has offices in Maryland and Virginia.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Inspector General Paul Martin of the National Aeronautics and Space Administration Office of Inspector General; Inspector General Allison Lerner of the National Science Foundation Office of Inspector General; Special Agent in Charge Nick DiGiulio of the Health and Human Services Office of Inspector General; Special Agent in Charge Gordon Thompson of the U.S. Postal Service Office of Inspector General; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the six-count indictment, Geng devised a scheme between 2005 to 2016 to defraud the United States by submitting false and fraudulent grant applications under the Small Business Innovation Research (SBIR) Program. The SBIR program aims to stimulate United States technological innovation. A further aim is to foster and encourage participation in technical innovation by socially and economically disadvantaged small businesses that in some instances are at least 51-percent owned and controlled by women. Geng prepared materially fraudulent proposals for awards, subsequent reports, and related communications under the programs.
To support the applications, Geng submitted endorsements for his grant applications using the identities of people without their permission, or misrepresenting their positions within Xigen. In addition, he submitted endorsements that misrepresented active affiliations with various universities including, Harvard University Medical School and Johns Hopkins University School of Medicine, and budgeted funds for subcontractors without their knowledge and without providing them with budgeted funds. With this false information, the United States government approved SBIR program awards and grants through the Department of Health and Human Service’s National Institutes of Health and the National Aeronautics and Space Administration. The awards totaled over $1.8 million.
According to court documents, Geng used the rewarded funds for his own personal use and the use of his family members and associates.
“The NASA Office of Inspector General will continue to aggressively investigate those who undermine and defraud NASA programs and operations,” said Inspector General Martin. “The NASA OIG appreciates the efforts of the entire investigative and prosecution team during this multi-year investigation, and we look forward to continued cooperation with our law enforcement partners in this and related matters.”
Allison Lerner, Inspector General for the National Science Foundation said, “The SBIR program is a valuable tool for advancing promising new technologies. My office will continue to vigorously pursue attempts to defraud scarce research dollars intended to promote economic growth through innovative SBIR investments.”
“The United States Department of Health and Human services provides research grant funds to qualified small businesses; we cannot tolerate the theft of taxpayer funds meant for honest research projects” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the US Department of Health and Human Services.
Geng faces a maximum sentence of 20 years in prison and a $250,000 fine for wire fraud and a 2-year mandatory minimum consecutive sentence for each of the aggravated identity theft charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the NASA Office of Inspector General, the National Science Foundation Office of Inspector General, the HHS Office of Inspector General, U.S. Postal Service Office of Inspector General and the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Jennifer Sykes, who are prosecuting the case and Assistant U.S. Attorney David Salem who also helped investigate this case.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Brown a/k/a Pee Wee, 54, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute cocaine, was sentenced to time served and 1 year of supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the sentencing, stated that between June 2013 and July 2014, the defendant bought quantities of cocaine from a co-defendant. The defendant then re-distributed the cocaine from his residence in Buffalo as well as from his store “Pee Wee’s Variety Store.”
The sentencing is the result of an investigation by the FBI’s Safe Streets Task Force.
Albuquerque-Area Construction Contractor Sentenced for Federal Tax Evasion and Fraud ConvictionRead the Press Release
ALBUQUERQUE – Joseph Dubois, 38, of Albuquerque, N.M., was sentenced today in federal court to 27 months in prison followed by three years of supervised release for federal tax evasion and fraudulently presenting a fictitious surety bond. Dubois was also ordered to pay $410,520 in restitution to the victims of his crimes.
Dubois, the owner and operator of Regency Development Group (RDG), a construction contractor located in Albuquerque, was charged by felony information with tax evasion and presenting a fictitious surety bond. According to the information, Dubois evaded his federal corporate tax obligations from Nov. 2011 to Oct. 2013, by opening and concealing a new bank account to circumvent tax liens, removing and dissipating assets to avoid their seizure, and by underreporting income and gross receipts. The information also alleged that Dubois created a materially false document, a surety bond, and fraudulently presented it as an actual security and financial instrument under the authority of a surety company.
On Feb. 8, 2017, Dubois pled guilty to the two charges in the information. In entering the guilty plea, Dubois admitted that as owner and operator of RDG, he evaded payment of $237,251 in federal employment taxes for tax years 2010 through 2012. Specifically, Dubois admitted that from Nov. 2011 through Oct. 2013, he opened a bank account which he used to divert funds in an attempt to circumvent liens and levies, and to evade payment of his tax liabilities. Dubois also acknowledged underreporting income and gross receipts to the IRS.
According to Dubois’s plea agreement, in Dec. 2011, RDG entered into contracts with the Ramah Navajo School Board to renovate a building at the Pine Hill School. The contracts required RDG to obtain and provide a surety bond. On Feb. 10, 2012, Dubois produced a materially false and fictitious surety bond which appeared to be an actual security under the authority of the Western Surety Company.
This case was investigated by the Albuquerque office of IRS Criminal Investigation and Department of the Interior, Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Jeremy Pena.
Airline Staffing Executive Pleads Guilty to Immigration FraudRead the Press Release
Assistant U.S. Attorney Nicholas W. Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – August 10, 2017
SAN DIEGO – The former Vice President of Operations for two airline mechanic staffing companies, Eleno Quinteros, Jr., pleaded guilty today to charges of making false statements in support of legal permanent resident petitions for dozens of the companies’ mechanics.
Quinteros admitted that he falsely certified that he had received no payments from the mechanics, when in fact he had demanded and collected hundreds of thousands of dollars of unlawful fees from approximately 85 of them.
According to the plea agreement, Quinteros demanded and collected as much as $567,480 from employees, even though employers are prohibited by law from demanding payment for their fees—including attorneys’ fees—in connection with the charged applications. Some of the money Quinteros collected was paid to attorneys assisting with the applications. The rest of the money was pocketed by Quinteros himself.
Quinteros was vice president of two different staffing companies, as set out in his plea agreement. The companies’ staff performed heavy maintenance on aircraft at a variety of locations nationwide. Quinteros was responsible for recruiting Mexican airline mechanics to work in the United States for the companies, and for helping recruits to obtain work visas such as TN or H-2B visas.
According to the indictment, Quinteros first assisted recruits in obtaining work visas to come to the United States. Quinteros then agreed to help at least 85 of them pursue a legal permanent residency—in exchange for substantial (and unlawful) fees. Quinteros directed many employees to pay money to his wife’s bank account, or provide him with blank money orders, in order to conceal the source of the unlawful funds.
Quinteros pleaded guilty to a single count of making a false claim in support of an immigration application, in violation of Title 18, United States Code, Section 1546(a). He admitted in his plea, however, that the underlying scheme involved more than 25 immigration documents.
“Legal permanent residency is not for sale,” said Acting U.S. Attorney Alana W. Robinson. “This Office is dedicated to fighting immigration fraud and prosecuting those who hawk lawful immigration status for their own personal financial gain.”
“The Diplomatic Security Service is committed to protecting the integrity of H-2B visas and all U.S. visas and travel documents that assist U.S. companies to legally employ foreign workers,” said Michael Bishop, Special Agent in Charge of the DSS Los Angeles Field Office. “This case is the result of the partnership among federal law enforcement agencies and DSS’ global network of special agents working together to interdict visa and passport crimes and stop criminals from reaping illegal income by exploiting U.S. visas, passports, and foreign workers.”
“Immigration benefit fraud is a serious crime, and those who corrupt the integrity of our nation’s legal immigration system must understand there are serious consequences for those actions,” said Joseph Macias, special agent in charge of Homeland Security Investigations (HSI) Los Angeles. “Not only do schemes like this potentially rob deserving immigrants of benefits they rightfully deserve, they also create a security vulnerability that could be exploited by criminals and others who pose a danger to our community. As the lead agency for the Los Angeles Document and Benefit Fraud Task Force, HSI will continue to work with our law enforcement partners to aggressively target those who conspire to manipulate and exploit our nation's legal immigration system for their own personal financial gain.”
“U.S. Citizenship and Immigration Services has zero tolerance for those who try to fraudulently misuse our country’s lawful immigration system,” said Susan Curda, USCIS District Director in Los Angeles. “We are proud of our role in uncovering this scheme and bringing the perpetrator to justice.”
Quinteros' sentencing is set for November 6, 2017 before Judge Michael M. Anello.
DEFENDANT Case No. 17-cr-557-MMA
“Max” Quinteros, Jr. Age: 45 Chula Vista, California
CHARGES
False Statement on an Immigration Document - 18 U.S.C. § 1546(a)
Maximum penalty: 10 years’ imprisonment and $250,000 fine
AGENCIES
Department of State, Diplomatic Security Service
Department of Homeland Security, Homeland Security Investigations
U.S. Citizenship and Immigration Services
Adrian Man Sentenced for Meth, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that an Adrian, Mo., man has been sentenced in federal court for drug trafficking and illegally possessing a firearm.
Jesus A. Arredondo, 24, of Adrian, was sentenced by U.S. District Judge Stephen R. Bough on Wednesday, Aug. 9, 2017, to 11 years in federal prison without parole.
On March 22, 2017, Arredondo pleaded guilty to participating in a conspiracy to distribute methamphetamine, three counts of possessing methamphetamine with the intent to distribute, and one count of being a felon in possession of a firearm.
According to the plea agreement, Jackson County sheriff’s deputies attempted to stop Arredondo (who had an unidentified female passenger in his vehicle) on Oct. 14, 2015, near the intersection of Beach Road and Colbern Road in Lee’s Summit, Mo. Arredondo, driving a stolen vehicle, led deputies on a chase that reached speeds up to 100 miles per hour. During the pursuit, Arredondo failed to yield for multiple red lights and stop signs and traveled the wrong direction on multiple roadways. Arredondo traveled off the roadway and crashed near Grain Valley, Mo., and fled on foot. Deputies took Arredondo into custody in a nearby field.
Inside Arredondo’s vehicle, deputies found 81 grams of methamphetamine, marijuana, a number of Hydrocodone and other pills and a glass pipe.
Arredondo told law enforcement officers that he and the woman in his vehicle had been driving to multiple locations to sell methamphetamine. She had taken multiple Xanax pills and fell asleep in the passenger seat while he was driving. Arredondo also admitted that he had thrown a handgun with laser sights from the vehicle as he was fleeing from law enforcement.
Arredondo told officers he facilitated many narcotics transactions, including large methamphetamine sales using his connections from Mexico. Two days earlier, he said, Arredondo had orchestrated a deal for three kilograms of methamphetamine for $35,000.
A week later, the owner of a Grain Valley business near the location where Arredondo’s vehicle crashed notified law enforcement that he found a black nylon backpack on his property. Inside the backpack was a baggie that contained 315.85 grams of methamphetamine (which Arredondo later identified as part of the three-kilogram shipment smuggled from Mexico into Texas), a digital scale and a cell phone.
On Oct. 25, 2015, Harrisonville, Mo., police officers responded to a call regarding a careless and imprudent driver. Arredondo, the driver of the vehicle, had fled on foot with a red backpack prior to the officers’ arrival. When officers arrived, they contacted Arredondo, who admitted he was driving fast. Officers searched the vehicle and found 7.6 grams of methamphetamine, drug paraphernalia, 9mm ammunition and $2,526.
On Nov. 2, 2015, Harrisonville police officers responded to a call reporting suspicious behavior at Burger King. They were directed to a vehicle that was stopped in the drive-through lane in which Arredondo was a passenger and an unidentified female was the driver. Officers searched the vehicle and found 23.7 grams of methamphetamine, 81 syringes, a glass pipe and a loaded Intratec TEC-9 firearm. They also found a black safe that was later searched and found to contain 71.7 grams of methamphetamine and a single 9mm bullet.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Arredondo has a prior felony conviction for assault for beating his girlfriend.
This case was prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Jackson County, Mo., Sheriff’s Department, the Grain Valley, Mo., Police Department, the Harrisonville, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson County Drug Task Force.
Acton Couple Arrested for Defrauding the Treasury Department of over $50 Million in Tax Free Energy GrantsRead the Press Release
BOSTON – An Acton couple was arrested today and charged with defrauding the U.S. Treasury Department of more than $50 million in tax free energy grants as part of the American Recovery and Reinvestment Act of 2009.
Christopher N. Condron, 45, and Jessica Metivier, 41, were charged in an indictment unsealed today with one count of conspiracy to defraud the United States with respect to claims and three counts of wire fraud. They were released on conditions following an initial appearance in federal court in Boston today.
The indictment alleges that Condron and Metivier conspired to submit fraudulent applications to the Treasury Department for energy grants as part of the American Recovery and Reinvestment Act of 2009. The Recovery Act provided tax-free grants to individuals and businesses who put certain “specified energy property”—such as wind farms and gasification systems that convert trash into electricity—into service in a trade or business.
From May 2009 to June 2013, Condron and Metivier allegedly submitted fraudulent grant applications to the Treasury Department on behalf of four different Massachusetts companies, Acton Bio Energy, Concord Nurseries, Kansas Green Energy and Ocean Wave Energy. According to the indictment, for each of the applications, Condron and Metivier falsely claimed that Metivier and her entities had acquired, placed into service, or started construction of energy property, which allegedly included three different bio-fuel gasification systems, purportedly built at a cost of approximately $88 million, and an $84 million wind farm project. Condron and Metivier sought to be reimbursed for more than $50 million based on those costs—which the indictment alleges they never actually incurred—and received grants totaling more than $8 million. To support their applications, Condron and Metivier submitted fraudulent documentation to a Massachusetts-based attorney who, in turn, submitted the applications to the Treasury Department on their behalf.
The charge of conspiracy to defraud the United States with respect to claims provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The government acknowledges the assistance of the U.S. Department of Treasury, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant United States Attorney Neil J. Gallagher, Jr. of Weinreb’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wednesday 9 August 2017
“Laser Sight”: Charleston Felon Convicted in Federal Court on Federal Gun Charges Following Two-Day TrialRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Garndell Jerome Macon, Jr., 32, from Charleston, South Carolina, was convicted in federal court on two felon in possession of a firearm counts after a two-day trial before United States District Court Judge David Norton. He faces a potential twenty-year sentence in federal prison.
United States Attorney Drake recognized the work of the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, which investigated the case. “We are working with our state and local law enforcement partners to address violence in our communities. The federal firearm laws allow us to do that in an effective and expeditious manner.”
ATF Special Agent in Charge C.J. Hyman said, “ATF appreciates our strong working relationship with the Charleston Police Department and the USAO. We are committed to reducing violent crime and apprehending violent offenders. This collaborative effort and the resulting conviction showcases what can be accomplished as we continue to work together to keep our communities safe.”
Evidence presented during trial established that on October 7, 2015, the City of Charleston Police Department, responding to complaints by management of an apartment complex about people loitering and selling drugs on their property, did a drive through of the parking lot.
When the officers drove into the parking lot, they observed a number of individuals around a Honda CRV, loitering, including Macon. The smell of marijuana was in the air and they saw one of the men place a digital scale on the hood of the Honda. The people near the car scattered as soon as the police car arrived. The officers checked the car and found drug paraphernalia (the scale, multiple plastic baggy pieces, and cigar wrappings). The scale was on the hood. An officer in another unit was set up in an observation post in an adjacent parking lot to conduct surveillance.
That officer, close in distance, with the scene illuminated by streetlights, could see the Honda from where he was stationed and he could also see the front of the apartment complex. He saw Macon walk out of the complex lobby. Macon looked about nervously and walked over to the Honda and picked up the scale from the hood. He went around and opened the rear driver’s side passenger’s door of the CRV, bent down, picked up a gun, and stood up. The officer on the surveillance post alerted the other officers who rapidly responded. When they came into the parking lot, Macon began sprinting towards the entrance of an apartment building. He made it into the door and ran down the hall into an apartment.
The officers quickly followed, chasing him as he ran into the building. A video captured his entry. In a still photograph, the defendant can be seen carrying the gun, equipped with a laser sight. The laser light can also be seen projected on the floor of the lobbying as Macon scurried toward an apartment inside.
The officers located Macon inside an apartment within the complex with children present, sitting in a chair, perspiring and out of breath. The officers found a Glock .45 caliber pistol stashed between the mattress and the box springs in a bedroom in the apartment. The laser light was still on. The weapon was loaded with thirteen rounds in the magazine and one round was chambered.
Officers then returned to the unlocked Honda. On the driver’s side passenger seat rear floorboard (behind the driver’s s eat) officers saw a black handgun.
This second gun was a loaded .40 caliber Smith and Wesson XD with a round in the chamber. The officers retrieved the weapon and the digital scale which the officers had seen on the hood of the car earlier. The gun and the drug scale were recovered from the same location in the Honda where officers had observed Macon grab the Glock .40 caliber just moments earlier.
Ms. Drake advised that Assistant United States Attorney Sean Kittrell tried the case for the government. Kittrell said that the case is a small snapshot of what the police in Charleston do every day. “They confronted an armed and convicted felon. They were running into danger and not away from it. They did what they do, every day, protecting people first and places second, on behalf of all of us.”
#####
Zuni Pueblo Woman Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Bree Lynn Coonsis, 25, a member and resident of Zuni Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to a voluntary manslaughter charge. Coonsis entered the guilty plea under a plea agreement that recommends that she be sentenced to an eight-year term of imprisonment followed by a term of supervised release to be determined by the court
Coonsis was arrested on May 10, 2017, on a criminal complaint charging her with killing a woman on the Zuni Pueblo on April 29, 2017, in McKinley County, N.M. According to the criminal complaint, Coonsis killed the victim by hitting the victim with her car while Coonsis was driving under the influence of intoxicating liquor or drugs.
During today’s proceedings, Coonsis pled guilty to an information charging her with voluntary manslaughter. In entering the guilty plea, Coonsis admitted that on April 29, 2017, she killed the victim by striking the victim with a vehicle, while intending to cause the victim serious bodily injury. Coonsis remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Zuni Pueblo Tribal Police and is being prosecuted by Assistant U.S. Attorney Sarah Mease.
Yonkers Gang Member Sentenced to over 30 Years in Prison for Murder of Florida Man and Other Racketeering CrimesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that KEVIN WILTSHIRE was sentenced today in White Plains federal court to a prison term of 30 years and one day for crimes committed as part of a Yonkers-based street gang, “Cruddy 650,” including the murder of Andre Folsom, who was killed in Greenacres, Florida, on May 26, 2014. WILTSHIRE pled guilty on April 10, 2017, to participating in the Cruddy 650 racketeering conspiracy, to using and carrying firearms during and in relation to that conspiracy, and to using a firearm to murder Folsom. WILTSHIRE pled guilty before U.S. District Judge Vincent Briccetti, who imposed today’s sentence.
Acting U.S. Attorney Joon H. Kim stated: “Kevin Wiltshire and his fellow gang members wrought havoc on the City of Yonkers through shootings, drug distribution, and robberies. They also took their mayhem on the road, with disastrous consequences for Andre Folsom, whom Wiltshire murdered in Greenacres, Florida, in a senseless act of violence. Thanks to the hard work of the FBI and Yonkers Police Department, Wiltshire and the other members of Cruddy 650 have been brought to justice.”
According to documents filed in this case and statements made in related court proceedings:
Cruddy 650 is a criminal enterprise operating principally in and around the City of Yonkers, New York. Cruddy 650 was founded in 2013 as the result of an alliance between gang members hailing from various parts of Yonkers, including Riverdale Avenue, Woodworth Avenue, Warburton Avenue, and Cottage Place Gardens. Even after the alliance, members of the gang hailing from Cottage Place Gardens continued to identify primarily as “Cruddy,” while members of the gang hailing from Riverdale Avenue identified primarily as “650.”
Cruddy 650 members and associates protected and promoted the gang’s power and territory, and sought to enrich its members through acts of violence, intimidation, and the sale of illegal drugs. During the time period relevant to the Superseding Indictment, members and associates of Cruddy 650 were responsible for multiple shootings and attempted murders, street robberies, robberies of banks and other businesses, bank fraud, witness tampering, and the distribution of narcotics, including crack cocaine and marijuana. Victims of the shootings and other acts of violence perpetrated by members of Cruddy 650 included both rival gang members and innocent bystanders.
The violence of the Cruddy 650 enterprise and its members spread from Yonkers, New York, to Florida. On May 26, 2014, KEVIN WILTSHIRE murdered Andre Folsom in Greenacres, Florida, shooting him in the head during a dispute in the parking lot of a Walmart store.
The tragic circumstances of Folsom’s death did not deter WILTSHIRE from further violence. After the murder, he and his fellow Cruddy 650 members returned to Yonkers, where he continued to engage in acts of violence on behalf of the gang. Of particular note, during the summer of 2014, WILTSHIRE and a co-conspirator shot into a crowd in the vicinity of Oliver Street in Yonkers. Although their objective was to kill rival gang members, no one was seriously hurt. Subsequently, on September 21, 2014, WILTSHIRE and several co-conspirators again fired on rival gang members in the vicinity of Oliver Avenue in Yonkers.
WILTSHIRE, 22, of Yonkers, New York, was sentenced to 25 years on the murder count, five years on the firearms offense, and one day on the racketeering count, all to run consecutively, to be followed by five years’ supervised release.
Mr. Kim praised the outstanding investigative work of the FBI’s Westchester County Safe Streets Task Force, which comprises agents and investigators from the FBI, the United States Probation Office, the Westchester County District Attorney’s Office, the Westchester County Department of Public Safety, the New York City Police Department, the City of Yonkers Police Department, the City of Peekskill Police Department, and the Mount Vernon Police Department. He also thanked the FBI’s Miami Division and the Palm Beach County Sheriff’s Office for their assistance.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Scott Hartman and Jessica Feinstein are in charge of the prosecution.
Woman Pleads Guilty to Medicaid Fraud and Identity Theft ChargesRead the Press Release
A Richmond woman pleaded guilty today healthcare fraud and aggravated identity theft.
According to court documents, Chermeca Harris, 36, was a Medicaid beneficiary and would misrepresent her health condition to health care providers, such as hospitals and ambulance services, in order to obtain health care benefits. Specifically, Harris would falsely represent that she was suffering from sickle cell anemia and was having a sickle cell crisis in order to obtain pain killing drugs, such as dilaudid, which she wanted to receive intravenously through the neck. In fact, doctors tested Harris in January 2016, and determined she did not have sickle cell anemia. The hospitals involved were Virginia Commonwealth University Medical Center, Chippenham, Bon Secours St. Mary’s, Memorial Regional, John Randolph Medical Center, and Henrico Doctor’s. According to court documents, it was a further part of the scheme that Harris also falsely represented her identity. On some occasions she used the name of M.M., and on other occasions she used the name of R.J.; both Medicaid recipients. She also falsely stated to investigating federal agents that her name was M.M. and that she had sickle cell anemia.
Harris was charged as part of the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants across 41 federal districts, including 115 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $1.3 billion in false billings. Of those charged, over 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS has initiated suspension actions against 295 providers, including doctors, nurses and pharmacists.
Harris pleaded guilty to healthcare fraud on the Medicaid program and aggravated identity theft. She faces a mandatory minimum of two years in prison and a maximum penalty of 12 years in prison, when sentenced on October 26. 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; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Nick DiGiulio, Special Agent in Charge, Philadelphia Regional Office of Inspector General of Department of Health and Human Services, made the announcement after the plea was accepted by Magistrate Judge David J. Novak. Assistant U.S. Attorney David T. Maguire is 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. 3:17-cr-77.
William Merriweather to Serve Life in Prison for Deadly 2007 Bessemer Bank RobberyRead the Press Release
BIRMINGHAM – A federal judge today sentenced William Merriweather Jr. to life in prison for robbing a Bessemer Bank in 2007 and intentionally shooting four tellers, killing two and seriously wounding the others, during the crime, announced acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Johnnie Sharp.
In a series of hearings today, U.S. District Judge R. David Proctor found Merriweather, 41, competent to stand trial, then accepted his guilty pleas and sentenced him to prison for the rest of his life.
“The victims of Merriweather’s brutal crime and the families of the victims whom he killed have endured a long wait for him to be convicted and punished,” Posey said. “Today that wait ends, and Merriweather will never again walk free.”
“Merriweather's utter disregard for human life is beyond comprehension,” Sharp said. “I applaud the sentence handed down today, as Merriweather will now spend the rest of his life behind bars as a consequence for his heartless actions.”
Repeated court-ordered mental evaluations prompted many delays in Merriweather’s prosecution since he robbed the West Bessemer branch of Wachovia Bank on May 14, 2007, shooting and killing tellers Eva Hudson and Sheila Prevo and wounding tellers Anita Gordon and Latoya Freeman. Jefferson County sheriff’s deputies arrested Merriweather outside the bank after he exited holding a gun to the bank manager’s head and using him as a shield.
As part of a plea agreement between Merriweather and federal prosecutors, the government agreed to withdraw its pursuit of the death penalty in exchange for Merriweather’s guilty pleas. He pleaded guilty to armed bank robbery resulting in death, using and carrying a firearm during a crime of violence, and two counts of causing a death by using a firearm during a crime of violence.
Merriweather’s deadly bank robbery took place as follows, according to his guilty plea:
Merriweather, wearing a green baseball cap, shirt, tie and slacks, entered the Bessemer bank shortly after it opened and moments later, without saying a word, walked up behind a customer at Hudson’s teller window and shot both Hudson and Prevo in the head. Prevo died instantly. Hudson died soon after.
Merriweather then grabbed Freeman and began looking for the vault and demanding the vault key and money. When Gordon attempted to hand keys to Merriweather, he shot her in the face at point-blank range.
Merriweather then turned the gun on Freeman and fired a shot at her head. Freeman was standing near Merriweather, her hands up in front of her face, and the bullet deflected off her hand, severing part of her right index finger.
After shooting the four tellers, Merriweather walked past the teller windows, grabbing about $11,255 and stuffing it into a plastic bag. Merriweather started to leave the bank but a customer who had darted out the door when the shooting began was armed and waiting beside his car for the robber to exit. Several sheriff’s deputies also had arrived and taken positions in the parking lot.
Merriweather moved away from the door into the bank’s interior and found the manager crouched behind his desk. Merriweather grabbed the man, put a gun to his head and walked out of the bank, holding the manager in front of him. When Merriweather tripped at the corner of the building, the manager broke free and a deputy fired one shot at Merriweather, striking him in the leg and groin and putting him on the ground.
The FBI, Jefferson County Sheriff’s Office and Bessemer Police Department investigated the case, which Assistant U.S. Attorney William G. Simpson prosecuted.
###
Westerly Resident Detained on Child Pornography ChargesRead the Press Release
PROVIDENCE – Jonathan Breslin, 32, of Westerly, was ordered detained in federal custody following his initial appearance in federal court in Providence today before U.S. District Court Magistrate Judge Patricia A. Sullivan on a criminal complaint charging him with receiving and distributing child pornography; possessing and accessing with intent to view child pornography; transfer of obscene material to a minor via interstate commerce; and attempted production of child pornography.
Breslin was arrested earlier today following a federal court authorized search of his Westerly residence, and the seizure of a computer, a digital media storage device, and a cell phone allegedly containing child pornography. The search was conducted by agents from Homeland Security Investigations (HSI) and members of the Rhode Island State Police Internet Crimes Against Children Task Force, with the assistance of members of the Westerly and Warwick Police Departments.
Breslin’s arrest, initial appearance in U.S. District Court and detention are announced by Acting United States Attorney Stephen G. Dambruch; Matthew J. Etre, Special Agent in Charge of HSI for New England; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Westerly Police Chief Richard G. Silva; and Warwick Police Chief Colonel Stephen M. McCartney.
According to court documents, it is alleged that in late March 2016, a law enforcement officer in Saskatchewan, Canada, arrested an individual in an unrelated matter. A search of a cell phone belonging to the individual resulted in the discovery of an online mobile chat application allegedly used to discuss and share child pornography images and videos to a network of users. A review by Saskatchewan law enforcement identified 78 unique users who allegedly shared and/or communicated about child pornography.
Information developed and records obtained by Canadian law enforcement through Canadian court orders were provided to HSI agents who, through further investigation, identified IP address in the United States that were allegedly used to participate in some of the conversations, and/or to upload and view child pornography. Among the IP address identified was one allegedly belonging to Breslin.
Further investigation by an HSI agent in Rhode Island included online chats between Breslin and the agent posing as an individual interested in discussing, viewing and sharing child pornography. It is alleged that Breslin discussed viewing, possessing and attempted production of child pornography.
A criminal complaint is merely an allegation 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.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The Rhode Island ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit along with detectives from the Warwick, Cranston, Newport, East Providence Police, Pawtucket, North Kingstown, Portsmouth and Woonsocket Police Departments and agents from Homeland Security Investigations and United States Postal Inspection Services.
###
U.S. Attorney's Office Concludes Investigation into Fatal Shooting of Terrence SterlingRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against an officer from the Metropolitan Police Department (MPD) who fatally shot Terrence Sterling on Sept. 11, 2016, in Northwest Washington.
The U.S. Attorney’s Office and the Metropolitan Police Department (MPD) conducted a comprehensive review of the incident. This included law enforcement and civilian witness accounts, photographs, diagrams, physical evidence, recorded radio communications (911 calls and radio runs), District of Columbia Department of Transportation (DDOT) video, Closed Circuit Television (CCTV) video, MPD photo radar footage, cellphone video, body-worn camera footage, law enforcement agency reports from MPD and the FBI, MPD General Orders, accident reconstruction reports, speed analysis data, reports from District of Columbia Department of Fire and Emergency Medical Services, and the autopsy report for Mr. Sterling.
Following this review, the U.S. Attorney’s Office has concluded that there is insufficient evidence to prove beyond a reasonable doubt that the officer violated Mr. Sterling’s civil rights by willfully using more force than was reasonably necessary, had the necessary criminal intent when he shot Mr. Sterling, or was not acting in self-defense.
The evidence is consistent with the following chronology:
The chain of events began at approximately 4:20 a.m. on Sept. 11, 2016, at the intersection of 15th and U Streets NW. The MPD officer and his partner were working on the Third District’s Crime Suppression Unit, a specialized crime patrol team. Both were in full uniform and in a marked cruiser. The officer was the passenger and his partner was the driver. The officers were stopped at a red light, westbound on U Street NW, when they observed a motorcyclist, later identified as Mr. Sterling, 31, drive his motorcycle alongside their cruiser. Mr. Sterling pulled in front of the cruiser and briefly stopped. Mr. Sterling looked over his shoulder in the direction of the officers and then accelerated at a high rate of speed through the red light.
The officers activated their lights and siren and attempted to stop Mr. Sterling. Mr. Sterling did not stop. The officers attempted to follow Mr. Sterling, at times losing visual contact with him. During this period, several officer and civilian witnesses observed Mr. Sterling operating his motorcycle at excessive and dangerous speeds—sometimes estimated at 100 miles per hour or more. One MPD sergeant reported seeing the motorcycle in the area of 11th and U Streets, speeding through all of the red lights. The motorcycle was going so fast that it nearly hit another police cruiser in the area. In another instance, Mr. Sterling sped through an intersection at 16th and U Streets NW just moments after a bicyclist had ridden through it.
The two officers, meanwhile, continued their attempt to follow Mr. Sterling, but lost sight of him again at Ninth and U Streets. As they kept looking for him, they heard the sound of a motorcycle’s revving engine. This time, they located Mr. Sterling on Third Street NW, where he was bypassing cars backed up because of a red light.
According to the evidence, after Mr. Sterling stopped his motorcycle at the intersection of Third and M Streets NW, the officers pulled their cruiser into the intersection and partially blocked Mr. Sterling’s lane of travel. The officers intended to stop the motorcycle’s forward progress and arrest Mr. Sterling. With Mr. Sterling still on his motorcycle and generally facing the passenger side of the cruiser, the officer removed his firearm from the holster, put it into the tuck position (pointed downward and close to his body), and opened the cruiser’s passenger door to exit the cruiser.
In this moment, according to the evidence, Mr. Sterling revved his motorcycle and then accelerated and turned it toward the cruiser’s exposed passenger side. The officer, who was partially out of the cruiser, never got a chance to fully exit the vehicle. He felt the impact of the motorcycle hitting the cruiser’s door. The impact caused by the advancing motorcycle caused a dent in the cruiser’s open door and a bruise to the officer’s knee. The officer reacted by immediately firing two rounds at Mr. Sterling through his front passenger window. The rounds struck Mr. Sterling in the right side and neck. The shooting was at approximately 4:27 a.m.
Following the shooting, the officer made a radio transmission requesting assistance and an ambulance. He and his partner attempted to perform life-saving measures, but were unsuccessful. Emergency medical personnel transported Mr. Sterling to Howard University Hospital, where he was pronounced dead.
Toxicology results determined that Mr. Sterling’s blood alcohol content was .16. Under District of Columbia law, that is approximately two times the legal limit. Mr. Sterling also tested positive for THC, the active ingredient in marijuana.
The officers’ pursuit of Mr. Sterling lasted several minutes and covered approximately 25 city blocks. During that time, Mr. Sterling pulled in front of the officers’ marked cruiser, looked directly at them, and then sped through a red light; drove approximately 100 miles an hour in an urban environment while running several more red lights; narrowly averted collisions with another police cruiser and a civilian; and refused multiple times to surrender to the lawful authority of the police.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officer willfully used unreasonable force and/or was not acting in self-defense when he discharged his service weapon at Mr. Sterling.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely. The Metropolitan Police Department’s Internal Affairs Bureau investigates all police-involved fatalities in the District of Columbia.
Twenty-one people indicted in federal court for trafficking heroin in Youngstown and RavennaRead the Press Release
Twenty-one people were indicted in federal court for their roles trafficking heroin and other drugs in the Youngstown and Ravenna areas, law enforcement officials said.
Arrests were executed this morning for people named in three separate indictments.
A 79-count indictment charges 12 people with drug trafficking and related crimes for a conspiracy beginning at least as early as August 2015 and continuing through June 8, 2016.
Indicted are: Aaron L. Rogers, 47; Cametrius K. Adams, 40; Darry K. Woods, 40; Mack F. Hill, 25; James L. Jackson, 41; Deondea K. Hill, 23; Qeevys D. Clinkscale; Trina Hill, 43; Brian K. Hunter, 44; John J. Montero, 39; Terrell L. Leonard, 38, and Cornell L. Kennedy, 33. All the defendants are from Youngstown but Clinkscale, who is from Cleveland.
Those defendants conspired to possess with the intent to distribute and to distribute heroin, cocaine and crack cocaine, used cellular telephones to facilitate their drug trafficking activities, maintained a drug premises and some were felons in possession of firearms and ammunition.
Woods supplied heroin to Jackson for distribution in the Youngstown area while Rogers supplied Jackson with heroin and cocaine. Jackson, in turn, supplied drugs to Montero and the Hills. Jackson also supplied heroin to Clinkscale, Hunter, Leonard, Adams and the Hills, according to the indictment.
Trina Hill maintained a premises on Ravenwood Avenue in Youngstown, for the purposes of distributing and storing drugs. Rogers, Jackson, Montero and Trina Hill possessed firearms and U.S. currency as part of the conspiracy, according to the indictment.
Jackson, Montero, Rogers and Hunter are charged with being felons in possession of firearms and ammunition.
In a related case, seven people were charged in a 35-count indictment with conspiracy to possess with intent to distribute heroin. The conspiracy took place in 2015 and was focused on heroin distribution in Youngstown.
Indicted are: Richard L. Jones, 50, of Ravenna; Willie J. Beacham, 69, of Youngstown; Terrell L. Leonard, 38, of Youngstown; Ronald C. Gilbert, 40, of Youngstown; Shajehan Haywood, 45, of Youngstown; Ricky C. Jordan, 33, of North Lima, and Shane S. Blair, 38, of Sebring.
Jones supplied heroin to Haywood and Leonard, who then sold the drugs to Blair, Beacham, Gilbert, and Jordan for distribution in the Youngstown area, according to the indictment.
In another related case, a 20-count indictment was filed charging three people with distributing heroin in the Ravenna area.
Indicted are: Antonio D. Liddell, 37, of Ravenna; Daryl Keith Jones, 50, of Ravenna, and Brook Brooks, 36, of Twinsburg.
Jones and Brooks travelled to Michigan to obtain heroin and then, along with Liddell, sell it around Ravenna. This took place from as early as November 2015 through January 2016, according to the indictment.
“Today more than 20 people who bring heroin to our neighborhoods were taken off the street,” said Acting U.S. Attorney David A. Sierleja. “Ohio has been devastated by heroin and opioids over the past few years. This is an example of law enforcement working together to lock up dangerous people supplying the drugs.”
“These individuals brought heroin, cocaine and violence to our community,” said FBI Special Agent in Charge Stephen D. Anthony. “This multi-agency, multi-state roundup is another example of the collaborative efforts engaged in by local and federal law enforcement agencies in an effort to rid our streets of drugs and the dangerous individuals that supply them.
“These charges and the arrest of 22 people in Youngstown and Ravenna demonstrate that the drug epidemic is as significant in Northeast Ohio as anywhere in the United States,” said DEA Special Agent in Charge Timothy Plancon. “Investigating and bringing to justice the individuals that are contributing to Ohio’s opioid epidemic, and its related violence and societal costs, is DEA’s and our partner’s top priority.”
Captain Larry Limbert of the Portage County Sheriff's Office/Portage County Drug Task Force said: “Without a cooperative effort between local and federal agencies we would not have been as successful in shutting down this large-scale narcotics organization.”
“ATF remains committed to removing violent offenders from our community,” said Trevor Velinor, Special Agent in Charge for ATF 'a Columbus Field Division. “We look forward to continuing to work with our partners at all levels to make our citizens safer.”
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The joint investigation preceding the indictment was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Mahoning Valley Law Enforcement Task Force, the Portage County Drug Task Force and the Youngstown Police Department, with the assistance of the Mahoning County Prosecutor’s Office. The cases are being prosecuted by Assistant U.S. Attorney David M. Toepfer.
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.
Texas Law Enforcement Gets Safety and Survival TrainingRead the Press Release
HOUSTON – Nearly 100 law enforcement agents and officers from across the state of Texas are attending an officer safety training conference sponsored by the Department of Justice, announced Acting U.S. Attorney Abe Martinez. The officer saftey and wellness training program is entitled Preventing Violence Against Law Enforcement and Ensuring Officer Resilience and Survivability, aka VALOR, and it is part of a the recently-announced Houston Law Enforcement Violent Crime Initiative created to proactively fight violent crime across the Greater Houston area.
“Each day, law enforcement at the federal, state and local levels face numerous threats while on duty,” said Martinez. “It is our job to provide them all the tools necessary to promote the safe execution of their duties as they work together to keep our communities safe”.
Martinez opened the program today which will include presentations by federal, local and state law enforcement experts from across the nation. The three-day conference is being held at Drug Enforcement Administration. The United States Attorney’s Office (USAO) and the Regional Organized Crime Information Center are co-hosting the event which is sponsored by the Department of Justice’s Bureau of Justice Assistance.
The VALOR initiative offers a national response to emerging trends and aims to help law enforcement agencies adequately prepare officers for the threats they face while on duty. The goal is to reduce violence against law enforcement and improve officer survivability. VALOR enables the entire U.S. law enforcement community to have access to and benefit from the latest expertise, analysis, tactics, interdiction techniques and response methods to address this critical problem and to reduce the number of officer fatalities. This goal is achieved through ongoing identification of emerging criminal threats, the development and delivery of knowledge and skills-based training to effectively address those threats as well as the promotion of attentive vigilance among law enforcement to proactively assess ever-changing circumstances.
This long-term officer safety initiative includes the comprehensive and multifaceted training program which is supported by data collection and analysis, policy development support and technical assistance. VALOR is designed to reach thousands of officers and law enforcement managers and policymakers through in-person (classroom and hands-on) and distance-learning efforts, resources and publications and technical assistance.
The VALOR training being offered this week was designed for front-line law enforcement to promote officer safety and help prevent injuries and deaths to law enforcement officers in the line of duty. In this training, participants gain an understanding of emerging threats, including those posed by antigovernment criminal extremists and learn techniques for anticipating and surviving a violent encounter. Officers also learn how to identify concealed weapons and armed gunmen, gain knowledge of the mental and physical skills required for high-risk tactical situations that may involve active shooters, high-risk tactical considerations, specific threat groups and violent criminals as well as an understanding of the importance of self-aid/buddy-aid training.
At a previous event held at the U.S. Attorney’s Office last month, law enforcement executives received training that addressed officer safety issues relevant to the roles and responsibilities of law enforcement executives, discussed the effectiveness of past and current officer safety policies and strategies, and identified and explored new ideas regarding agencies’ approaches to officer safety.
St. Paul Man Pleads Guilty to Attempted Armed Robbery of Convenience StoreRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of MICKIAH LATRELL JACKSON, 32, for the January 2017 violent attempted armed robbery of a Super America gas station and convenience store in St. Paul, Minn. In May 2017, a grand jury returned a two-count Indictment, charging JACKSON with one count of interference with commerce by attempted robbery pursuant to the Hobbs Act, and with one count of using, carrying, and discharging a firearm during a crime of violence. JACKSON entered his guilty plea to both counts today before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn.
“This is a perfect example of how intelligence solves crimes,” said ATF Special Agent in Charge James Modzelewski of the St. Paul Field Division. “Partly based on use of the ATF National Integrated Ballistic Information Network we were able to link different crime scenes together, ultimately leading us to Jackson. Getting this career offender behind bars is no doubt going to make the community a safer place. This was a great collaboration on the part of St. Paul Police, Metro Transit Police, the Ramey County Attorney’s Office, the U.S. Attorney’s Office and ATF. Our hats off to these professionals for pulling the pieces of this puzzle together.”
According to the defendant’s guilty plea and documents filed in court, on January 7, 2017, JACKSON entered a Super America (“the SA”) gas station in St. Paul, Minn., pulled a semiautomatic firearm from his waistband and pointed it at the cashier while demanding money from the register. The cashier pushed the defendant’s gun away and struggled with the defendant for a few seconds before JACKSON aimed his firearm at the ground and discharged one round. JACKSON again pointed the gun at the cashier’s face and demanded money from the register. Another store employee quickly shut the bulletproof glass door of the cashier station and JACKSON fled the SA on foot empty-handed.
According to the defendant’s guilty plea and documents filed in court, on February 25, 2017, JACKSON again entered the SA, and the employee who slammed the glass door shut on the defendant during the attempted robbery recognized the defendant. After the employee notified an off-duty St. Paul Police Officer who was working at the SA, JACKSON was arrested. Upon execution of a search warrant of the defendant’s residence, law enforcement investigators recovered a black stocking cap and other items of clothing consistent with what the defendant was wearing in the SA surveillance video.
The case was the result of an investigation conducted by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Paul Police Department, and the Metro Transit Police, with assistance from the Ramsey County Attorney’s Office.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Defendant Information:
MICKIAH LATRELL JACKSON, 32
St. Paul, Minn.
Convicted:
- Interference with commerce by attempted robbery, 1 count
- Using, carrying, and discharging a firearm during and in relation to a crime of violence, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Scranton Man Charged with Bank RobberyRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Wyatt Erb, age 47, of Scranton, Pennsylvania, was indicted on August 8, 2017, by a federal grand jury for bank robbery.
According to United States Attorney Bruce D. Brandler, the indictment alleges that on August 1, 2017, Erb robbed the First National Bank in Nicholson, Pennsylvania.
The case was investigated by the Dalton Police Department, South Abington Township Police Department, the Pennsylvania State Police, and the Federal Bureau of Investigation. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Prince George’s County Liquor Board Official Indicted for Federal BriberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On August 7, 2017, a federal grand jury indicted Anuj Sud, age 39, of Hyattsville, Maryland, on charges related to a bribery conspiracy. Sud allegedly solicited and accepted bribes in the performance of his official duties in Prince George’s County.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
Sud was a Liquor Board Commissioner and has been a licensed attorney in Maryland since 2005, with offices in College Park. According to court documents, in September 2015, Sud solicited bribes from a lobbyist in exchange for Sud’s assistance with liquor board matters. At a subsequent meeting, Sud and the lobbyist discussed Sud voting favorably in two upcoming hearings concerning the lobbyist’s clients, in exchange for money. The lobbyist advised that the hearings would take place on December 2 and December 15, 2015. At each of the hearings, Sud took favorable action on behalf of the lobbyist’s client. Following each hearing, the lobbyist met with Sud and gave Sud $1,000 cash for Sud’s assistance. Similarly, on November 30, 2016, Sud received a $1,000 bribe payment in exchange for taking favorable action on behalf of the lobbyist’s client.
Sud was charged with two counts of bribery, for each of which he faces a maximum sentence of ten years in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI, IRS-CI, and Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Thomas P. Windom, Menaka S. Kalaskar, and Arun G. Rao, who are prosecuting the case.
Plainfield Man Charged with Producing Child PornographyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in Hartford returned an indictment today charging RYAN STONE, 30, of Plainfield, with one count of production of child pornography.
The indictment alleges that between March 30 and April 1, 2017, STONE used a minor to engage in sexually explicit conduct for the purpose of producing a video depiction of such conduct.
If convicted of the offense, STONE faces a mandatory minimum term of imprisonment of 15 years and a maximum term of life.
STONE has been in state custody since April 19 when he was arrested for criminal trespass in the first degree and criminal violation of a restraining order.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations and the Plainfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Pittsburgh Man Indicted on Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned on August 8, named Lamont Willis, age 45, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on or about March 8, 2017, Willis possessed with the intent to distribute quantities of cocaine and cocaine base, commonly known as crack, Schedule II controlled substances. Further, on that same date, Willis possessed a Smith & Wesson .357 caliber revolver, a Harrington & Richardson .22 caliber revolver, a Remington .22 caliber rifle, a .308 caliber Mauser rifle, and numerous rounds of ammunition in furtherance of said drug trafficking crime. It is unlawful for Willis, who has previously been convicted of a felony offense, to possess a firearm or ammunition.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, City of Pittsburgh Bureau of Police and North Strabane Township Police Department, conducted the investigation leading to the indictment in this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pierre Man Indicted for Aggravated Sexual Abuse of a Child and Child Pornography ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child, Travel With Intent to Engage in Illicit Sexual Conduct, and Transportation, Distribution, Receipt and Possession of Child Pornography.
Amin Ricker, age 30, was charged by Superseding Indictment on July 11, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 9, 2017, and pled not guilty to the Superseding Indictment.
The penalty upon conviction is a mandatory minimum of 30 years imprisonment up to life imprisonment and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Ricker was indicted for distribution and possession of child pornography in April 2017. The Superseding Indictment further alleges that Ricker crossed a state line with the intent to engage in a sexual act with children under the age of 12, traveled in interstate commerce for the purpose of engaging in illicit sexual conduct with a person under the age of 18, and received and transported child pornography.
The charges are merely accusations and Ricker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Pierre Police Department, the South Dakota Division of Criminal Investigation, and the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Ricker was remanded to the custody of the U.S. Marshals Service pending trial, which is set for October 3, 2017.
Operation “Pop Rocks” Scores Major Heroin, Cocaine, and Firearm ArrestsRead the Press Release
Columbia, South Carolina--------United States Attorney Beth Drake stated today that a collaborative federal-state investigation culminated in arrests and significant seizures after a federal grand jury in South Carolina returned a forty-one-count indictment charging an interstate drug trafficking ring for its importation of heroin and cocaine into Richland County and surrounding areas.
On August 6, 2017, agents involved with the joint investigation arrested six defendants pursuant to a federal indictment for their roles in the drug conspiracy, which consisted of both heroin and cocaine, two state defendants, and executed multiple federal search warrants across Richland County. Jermaine Southall, Bilal Muhammad, Jamie Patterson, Lee Ball, Christopher Fulton, and Aaron Meroney have been indicted for distributing and conspiring to distribute heroin and cocaine as well as using telephones to facilitate drug trafficking. United States Magistrate Judge Shiva V. Hodges scheduled hearings for the federal defendants to take place on August 10, 2017 at 2:30 p.m. during which time she will determine if bond is appropriate.
The eight-month investigation focused on a violent narcotics distribution operation in and around the Columbia area. The Richland County Sheriff’s Department and DEA began sharing intelligence on smaller investigations that were being conducted throughout the area, ultimately learning that other law enforcement agencies were making undercover buys of heroin and crack cocaine that was supplied by this drug trafficking organization. “The investigation and federal indictment are the products of significant coordination between federal and local law enforcement agencies, and represent the commitment of the United States Attorney’s Office to combat the heroin epidemic that our community is currently facing,” United States Attorney Beth Drake stated.
“This case serves as just one example of the ongoing efforts of local Narcotics Bureau detectives who will continue to work diligently, together with our law enforcement partners, to prevent additional overdose tragedies related to this poison,” said Richland Sheriff Leon Lott. “Working with our community, we will overcome the Heroin/Opioid epidemic that has plagued the entire country.”
This case was the culmination of a joint investigation by the Richland County Sheriff’s Office, DEA Columbia Provisional Task Force, Columbia Police Department, SLED, IRS-CI, ICE – Homeland Security Investigations, ATF, USPS, and the 5th Circuit Solicitor’s Office. The DEA Columbia Provisional Task Force is comprised of Task Force Officers from the Richland County Sheriff’s Office, South Carolina Highway Patrol, SLED, and the Sumter County Sheriff’s Office. The case is assigned to Assistant United States Attorney Ben Garner of the Columbia office.
The United States Attorney stated that all charges in this indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
#####
Ocala Woman Who Buried Father’s Body and Stole His Social Security Benefits Pleads Guilty in Federal CourtRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces that Susan Marie Kort (61, Ocala) today pleaded guilty to an indictment charging her with theft of government funds. She faces a maximum penalty of 10 years in federal prison and will be required to pay $35,577.60 in restitution to the Social Security Administration (SSA). A sentencing date has not yet been set.
According to court documents, Kort’s elderly father passed away at his Lake County residence in approximately November 2011. After discovering the body, she buried her father in the backyard of her Eustis home. Kort never reported the death to authorities. Over the next two years, she used forged checks and a power of attorney for her father’s financial affairs to withdraw and spend the SSA benefit payments that were being direct-deposited into his bank account. The SSA eventually suspended these benefit payments in December 2013, when they were unable to contact Kort’s father.
Inquiries into the father’s well-being by other relatives prompted a law enforcement investigation in late 2016. When confronted by investigators, Kort admitted to hiding her father’s body and to defrauding the SSA by unlawfully taking his benefit payments. Kort eventually led investigators to her father’s grave at her residence. Subsequent DNA testing confirmed the identity of the remains as Kort’s father.
This case was investigated by the Social Security Administration—Office of the Inspector General and the Lake County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
New York Tax Return Preparer Indicted for Filing Fraudulent Tax ReturnsRead the Press Release
A federal grand jury returned an indictment, which was unsealed today, charging the owner of a Uniondale, New York tax preparation business with filing fraudulent tax returns, wire fraud and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Mariano Exantus ran Latrex Multi Service, a tax return preparation business. The indictment charges that from 2011 through 2017, Exantus prepared and filed fraudulent income tax returns with the Internal Revenue Service (IRS) that included fake business losses and education expenses and sought refunds to which his clients were not entitled. The indictment further charges that Exantus filed fraudulent tax returns in the name of an individual whose identity had been stolen.
If convicted, Exantus faces a statutory maximum sentence of three years in prison on each of the fraudulent return counts, 20 years in prison on the wire fraud counts and a mandatory minimum sentence of two years in prison on the aggravated identity theft counts. Exantus also faces a period of supervised release, restitution and monetary penalties.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Carl F. Brooker, IV and Sarah C. Ranney of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
New York Man Pleads Guilty to Conspiracy and Tax Offenses Stemming from Stock "Pump and Dump" SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRIAN FERRAIOLI, 40, of Sayville, N.Y., waived his right to be indicted and pleaded guilty today in New Haven federal court to conspiracy and tax offenses stemming from his role in a securities fraud scheme.
According to court documents and statements made in court, between approximately 2009 and July 2016, FERRAIOLI conspired with others, including Christian Meissenn, William Lieberman, Damian Delgado and Thomas Heaphy, to defraud investors through a stock “pump and dump” scheme. FERRAIOLI and his co-conspirators induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies, which were essentially shell companies with virtually no legitimate business activities, included Terra Energy Resources Ltd. (stock symbol “TRRE”); Mammoth Energy Group, Inc. (stock symbol “MMTE”), a company that later became Strategic Asset Leasing Inc. (stock symbol “LEAS”); Trilliant Exploration Corporation (stock symbol “TTXP”); Hermes Jets, Inc. (stock symbol “HRMJ”), which later became Continental Beverage Brands Corporation (stock symbol “CBBB”); Dolat Ventures, Inc. (stock symbol “DOLV”), and Fox Petroleum, Inc. (stock symbol “FXPT”).
FERRAIOLI’s numerous misrepresentations induced investors to purchase securities, thus causing the share price of the securities to become artificially inflated. Certain of FERRAIOLI’s co-conspirators then sold their own preexisting positions in the securities at a profit. They then allowed he price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, victim investors lost approximately $19.5 million.
FERRAIOLI received approximately 25 percent of all money that he induced individuals to invest. His personal gain from the scheme totaled approximately $1.25 million. FERRAIOLI disguised the income by having the funds flow through the trust accounts of various attorneys, including Corey Brinson in Connecticut, into bank accounts in the name of various shell entities under FERRAIOLI’s control. FERRAIOLI’s failure to pay taxes on approximately $1.1 million in income from this scheme, as well as unrelated income, during the 2010, 2012, 2015 and 2016 tax years resulted in a loss of $305,733 to the Internal Revenue Service.
FERRAIOLI pleaded guilty to one count of conspiracy to commit mail and wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. He is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on November 6, 2017.
At sentencing, FERRAIOLI will be ordered to pay restitution to his victims, as well as back taxes, interest and penalties to the Internal Revenue Service.
On November 8, 2016, Meissenn, also known as “Christian Nigohossian,” of Suffield, Conn., pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion. He awaits sentencing.
On January 20, 2017, Brinson, of Hartford, pleaded guilty to one count of engaging in a monetary transaction in property derived from specified unlawful activity. On April 13, 2017, he was sentenced to 36 months of imprisonment.
Lieberman, Delgado and Heaphy each previously pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion. They await sentencing.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Peter S. Jongbloed.
Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Nevada Man Sentenced to 20 Years in Prison for Transportation and Possession of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced David R. Rivenbark (39, Las Vegas, Nevada) to 20 years in federal prison and 10 years of supervised release for transportation and possession of child pornography. He was found guilty by a federal jury on April 13, 2017.
According to the trial evidence, Canadian law enforcement authorities initiated an international investigation into individuals using chatrooms within a social media website to trade child pornography. In August 2014, Rivenbark, then a resident of Oviedo, Florida, posted a link within the social media website directing its users to a Dropbox location that contained 111 videos of child pornography. A Canadian agent preserved the evidence and referred the investigation to U.S.Immigration and Customs Enforcement's Homeland Security Investigations (HSI) in Orlando. In November 2014, HSI agents contacted Rivenbark at his residence. Rivenbark admitted that he had posted the link to a child pornography website and that he had searched for and viewed child pornography on his computer.
A forensic examination of Riverbark’s computer subsequently revealed 462 images and 2 videos containing child pornography in the deleted space. Additional forensic evidence showed that Rivenbark had actively searched for and viewed child pornography, which he later deleted using cleaning software.
“While this sentence cannot restore the lost innocence of the children depicted in these images, it should serve as a warning to those who engage in this behavior — HSI and our law enforcement partners, like the Florida Department of Law Enforcement, will be relentless in our pursuit of online predators," said HSI Tampa Special Agent in Charge James C. Spero.
This case was investigated by the York Regional Police Service (Ontario, Canada) - Special Victims Unit, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mount Oliver Man Charged with Three Pittsburgh-area RobberiesRead the Press Release
PITTSBUGRH - One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating the federal robbery laws, Acting United States Attorney Soo C. Song announced today.
The three-count indictment, returned on August 8, named David Payo, age 52, of Pittsburgh, PA as the sole defendant.
According to the indictment, on May 27, 2017, David Payo robbed the PNC Bank, located at 420 W. Waterfront Drive, in Homestead, PA 15120, of $3,460.00. On June 3, 2017, Payo robbed the Eat N Park, located at 3987 Monroeville Blvd, Monroeville, PA, of $5,396.83. On June 8, 2017, Payo robbed the Citizens Bank, located at 4010 Monroeville Blvd, Monroeville, PA 15146, of $1,890.
Payo faces a total maximum sentence of not more than 60 years in prison, a fine of not more than $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Homestead Police Department, the Allegheny County Police Department, and the Monroeville Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Minnesota Business Owner Sentenced to 42 Months in Prison for Stealing More Than $755,000 from Employee Pension PlanRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of WALLACE DAVID GREGERSON, 66, to 42 months in prison for embezzling more than $755,000 from his employees’ pension plans. GREGERSON, who pleaded guilty on March 6, 2017, to one count of mail fraud, was sentenced today before United States District Judge Joan N. Ericksen in Minneapolis, Minn.
Acting U.S. Attorney Greg Brooker said, “Over the course of several years, Wallace Gregerson stole from his own hardworking employees, some of whom had decades-long careers with the company. Mr. Gregerson ended his fraud scheme only because there was no more money to steal. We believe that the sentence handed down today is a just punishment for his crimes.”
According to his guilty plea and documents filed in court, GREGERSON was the president and sole owner of Lighting Affiliates, Inc. (“Lighting Affiliates”), a Minnesota corporation that sold lighting fixtures and related products. The Lighting Affiliates 401(k) Profit Sharing Plan (the “Plan”) was established as an employee benefit for eligible employees’ retirement savings. The Plan was funded by three types of contributions: voluntary salary reduction 401(k) contributions the Lighting Affiliates’ employees had deducted from their paychecks; 401(k) matching contributions made by Lighting Affiliates; and profit sharing contributions made by Lighting Affiliates.
According to his guilty plea and documents filed in court, GREGERSON, who was the sole trustee of the Plan, used his position to withdraw funds from the Plan and deposit those funds into Lighting Affiliates’ bank accounts. In 26 separate transactions over the course of two years between February 2011 and July 2013, GREGERSON drained the profit sharing portion of the Plan by withdrawing a total of approximately $675,233.55. In August 2014, Lighting Affiliates closed. Following the closure, between December 2014 and March 2015, GREGERSON drained his former employees’ individual 401(k) accounts by withdrawing a total of approximately $80,667.23.
According to his guilty plea and documents filed in court, as part of the scheme, GREGERSON persuaded the financial institutions holding the Plan’s assets to provide him with funds belonging to the Plan and its participants by making false representations. GREGERSON provided written statements falsely affirming that the funds would be re-invested in another qualified plan or that the withdrawals were made at employee requests.
According to his guilty plea and documents filed in court, GREGERSON used the majority of the funds to either pay for Lighting Affiliates’ expenses or for personal expenses such as country club membership dues, tickets for sporting events, clothing purchases, and tuition payments for his daughter.
Assistant United States Attorney Kimberly A. Svendsen prosecuted the case.
This case was the result of an investigation conducted by the U.S. Department of Labor Employee Benefits Security Administration and the U.S. Department of Labor Office of the Inspector General.
Defendant Information:
WALLACE DAVID GREGERSON, 66
Plymouth, Minn.
Convicted:
- Mail fraud, 1 count
Sentenced:
- 42 months in prison
- 3 years of supervised release
- $756,062.50 in restitution
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Midsouth Man Indicted After Sexual Assault Kit Processing Links Him to a Series of Kidnappings and Sexual AssaultsRead the Press Release
Memphis, TN – Michael Love has been indicted on charges of kidnapping and brandishing a firearm during the commission of a violent crime. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to information in the indictment, in June 2015, December 2014, and March 2012, Love traveled from Mississippi to Memphis, Tennessee, to commit sexual assault, on each occasion holding a woman against her will and engaging in forced sexual intercourse. In March 2015, April 2014 and November 2013, Love used the Internet or a chat line to meet a woman, and again, on each occasion, held the woman against her will, and committed sexual assault. One of the alleged victims was a minor. It is also alleged that Love twice used a firearm during the commission of the crimes. Love is charged with six counts of kidnapping to commit sexual assault, and two counts of brandishing a firearm during a crime of violence.
Lawrence J. Laurenzi, Acting U.S. Attorney, Western District of Tennessee, said: "We have a moral responsibility to provide a community free from sexual assault. We will use all of our resources to bring these sexual offenders out of the darkness of their homes and into our criminal court system. The people who commit these crimes are cowards who will be prosecuted fully under the law."
A known sample of Love’s DNA was compared to existing DNA profiles in CODIS – the Combined DNA Index System. CODIS is a national database designed to help identify suspects in unsolved cases. Biological evidence collected during examination of a sexual assault victim is preserved in a Sexual Assault Kit, and ultimately, sent to a laboratory for analysis. Once the DNA profile is complete, it is placed into CODIS and regularly compared to profiles developed in other cases. The Memphis Police Department’s Sex
Crimes Bureau, DNA Cold Case Unit, developed Love as a suspect in the indicted cases in part, through use of DNA and CODIS technology.
Love also has matters pending in Shelby County Criminal Court, where he has been charged with rape, aggravated rate, aggravated kidnapping, criminal attempt - kidnapping and robbery.
This case was investigated by the Memphis Police Department (Sex Crimes, DNA Cold Case Unit) and the FBI. Assistant U.S. Attorneys Deb Ireland and Bryce Phillips are prosecuting this case on the government’s behalf.
The charges and allegations in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
###
Members of Montezuma Drug Trafficking Organization Sentenced to One Hundred and Fifty-Five (155) and One Hundred and Seventy (170) Months Imprisonment for Distribution of Crack CocaineRead the Press Release
United States Attorney G. F. “Pete” Peterman, III, announces that Geoffrey L. “Jeff” Larry, Nicholas J. “Nick” Larry, and Curtis J. “C.J.” Holmes, were each sentenced to more than thirteen (13) years in federal prison for distributing crack cocaine in and around Montezuma, Macon County, Georgia. The sentences were imposed by United States District Court Judge Marc T. Treadwell in Macon, Georgia, on August 8, 2017.
Geoffrey L. Larry, age 36, of Montezuma, Georgia was sentenced to serve 170 months in federal prison for distribution of crack cocaine and was determined to be the leader and supplier of the drug trafficking organization that included his brother, Nicholas J. Larry, age 34, also of Montezuma. Nicholas J. Larry was sentenced to serve 155 months in federal prison and Curtis J. Holmes, age 38, of Warner Robins, Georgia, was sentenced to serve 170 months in federal prison for their participation in the crack cocaine organization. Each of the defendants is also required to serve a three-year term of supervised release following release from prison.
There is no parole for those convicted in the federal courts.
The court determined that between January 1, 2014 and March 15, 2016, the Larry brothers and Holmes were responsible for trafficking the equivalent of more than 1,950 grams of crack cocaine in and around the Montezuma area. The drug trafficking organization primarily dealt in crack cocaine, powder cocaine, and small amounts of marijuana. The court also determined that Nicholas Larry and Curtis Holmes maintained two different “trap houses,” the term for premises used for the purpose of trafficking drugs, that were supplied by Geoffrey Larry over the course of more than two years. Several firearms were seized throughout the course of the investigation, including three firearms located at one of the drug premises. Each of the defendants had previous felony convictions for drug crimes in the state of Georgia and were therefore prohibited from possessing any firearms.
“I commend the federal and local law enforcement officers and agencies whose cooperation took these violent, armed drug dealers off the streets and dismantled their drug distribution organization, The community and citizens of Montezuma, of Macon County, and of all of Middle Georgia are safer today as the result of this investigation and prosecution,” said United States Attorney Peterman.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, through lead agent Brian Queener, the Georgia Bureau of Investigation, through lead agent Shannon McCook, and additional assistance from the Montezuma Police Department. Assistant United States Attorney C. Shanelle Booker prosecuted the case for the United States.
Questions concerning this case should be directed to Brittney Kish-Lightsey, United States Attorney’s Office, at (478) 752-3511.
Members of Bronx Drug Trafficking Organization Charged in Manhattan Federal Court with Narcotics and Firearms Trafficking OffensesRead the Press Release
Joon H. Kim, Acting United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration’s New York Field Division (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging nine members of a Bronx drug trafficking organization with narcotics and firearms trafficking offenses. The case is assigned to U.S. District Judge Kimba M. Wood.
Acting Manhattan U.S. Attorney Joon H. Kim said: “The defendants, members of a drug organization associated with the Crips street gang, allegedly sold large amounts of heroin, crack cocaine, and illegal firearms – including assault rifles – on the streets of the central Bronx. Together with our partners at the DEA and the NYPD, we are committed to protecting our city from drugs and illegal guns.”
DEA Special Agent in Charge James J. Hunt said: “Gun and drug trafficking have been the financial fortress behind gangs, such as the Hughes Avenue Organization. Unfortunately, these gangs set up shop in communities, intimidating neighborhoods and putting them in danger. Law enforcement has pooled resources to target drug gangs in this city and to remove those responsible for fueling gun violence and drug trafficking.”
According to the Indictment[1] unsealed in Manhattan federal court and statements made in court:
The members of the Hughes Avenue drug trafficking organization (the “Hughes Avenue DTO”) controlled narcotics trafficking near East Tremont Avenue, Hughes Avenue, and Belmont Avenue in the Bronx, New York. From 2016 to August 2017, members of the Hughes Avenue DTO sold heroin and crack cocaine in that area. Certain members of the Hughes Avenue DTO also illegally sold firearms for profit. firearms included an AK-47 assault rifle, an SKS assault rifle, a shotgun, and handguns. Members of the DTO are also members and associates of the “Rolling 30s” neighborhood set of the nationwide Crips street gang.
Count One of the Indictment charges ARIEL ACOSTA, a/k/a “A-Loc,” a/k/a “Blue,” a/k/a “True Blue,” ZORA BENITEZ, a/k/a “Baby," DERRICK RICHARDSON, a/k/a “J-Rock,” KEVIN RIVERA, a/k/a “Montana,” SANTOS RODRIGUEZ, a/k/a “Lefty,” EDWIN ROMAN, a/k/a “Capo,” KENNETH SAMPSON, a/k/a “Remo,” JAYLEN SCOTT-KING, a/k/a “Boo,” a/k/a “Legend,” a/k/a “Flirm,” and ALEXIS VALDEZ, a/k/a “Lil Rico,” with participating in a conspiracy to distribute one kilogram and more of heroin and 280 grams and more of crack cocaine.
Count Two of the Indictment charges ACOSTA, SCOTT-KING, and VALDEZ with firearms trafficking.
Counts Three and Four of the Indictment charge ACOSTA and VALDEZ with being felons in possession of firearms.
In a coordinated operation, eight of the defendants were arrested in New York on Tuesday afternoon and earlier today. Defendants ACOSTA, RICHARDSON, RODRIGUEZ, and VALDEZ were in custody on state charges and have been transferred to federal custody. They will be presented this afternoon in Manhattan federal court. BENITEZ remains at large. A chart identifying each defendant, the charges, and the maximum penalties is attached to this release.
* * *
Mr. Kim thanked the DEA and the NYPD for their work on the investigation.
The Office’s Violent and Organized Crime Unit is overseeing the case. Assistant U.S. Attorneys Drew Skinner and Anden Chow are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE(S)
DEFENDANTS
MAXIMUM PENALTIES
Count One
Narcotics conspiracy, 21 U.S.C. § 846
(Conspiracy to distribute and possess with intent to distribute 1 kilogram and more of heroin and 280 grams and more of crack cocaine.)
ARIEL ACOSTA,
a/k/a “A-Loc,”
a/k/a “Blue,”
a/k/a “True Blue,”
ZORA BENITEZ,
a/k/a “Baby,"
DERRICK RICHARDSON,
a/k/a “J-Rock,”
KEVIN RIVERA,
a/k/a “Montana,”
SANTOS RODRIGUEZ,
a/k/a “Lefty,”
EDWIN ROMAN,
a/k/a “Capo,”
KENNETH SAMPSON,
a/k/a “Remo,”
JAYLEN SCOTT-KING,
a/k/a “Boo,”
a/k/a “Legend,”
a/k/a “Flirm,”
ALEXIS VALDEZ,
a/k/a “Lil Rico”
Lifetime imprisonment
Mandatory minimum: 10 years in prison
Count Two
Firearms trafficking, 18 U.S.C. § 922(a)(1)(A)
ARIEL ACOSTA,
a/k/a “A-Loc,”
a/k/a “Blue,”
a/k/a “True Blue,”
JAYLEN SCOTT-KING,
a/k/a “Boo,”
a/k/a “Legend,”
a/k/a “Flirm,”
ALEXIS VALDEZ,
a/k/a “Lil Rico”
5 years in prison
Count Three
Felon in possession of firearms, 18 U.S.C. § 922(g)
ARIEL ACOSTA,
a/k/a “A-Loc,”
a/k/a “Blue,”
a/k/a “True Blue,”
ALEXIS VALDEZ,
a/k/a “Lil Rico”
10 years in prison
Count Four
Felon in possession of firearms, 18 U.S.C. § 922(g)
Count Four
Felon in possession of firearms, 18 U.S.C. § 922(g)
10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Marshall County residents and an Ohio man admit to cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Two Moundsville, West Virginia residents and a South Euclid, Ohio man pled guilty today to cocaine distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Sodonna M. Nuce, age 39, pled guilty to one count of “Distribution of Cocaine Base.” Justin L. Nash pled guilty to one count of “Distribution of Cocaine Base.” The two admitted to distributing cocaine in Marshall County on February 7, 2017.
Edward L. Haynes, age 44, of South Euclid, Ohio pled guilty to one count of “Distribution of Cocaine Base.” He admitted to distributing cocaine in Marshall County in April 2016.
Nuce, Nash, and Haynes each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the cases on behalf of the government. The Marshall County Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Manchester Man Fined $40,000 for Filing False VISA ApplicationsRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that Rohit Saksena, 42, of Manchester, New Hampshire, was sentenced yesterday to serve three years of probation and pay a $40,000 fine for filing false visa applications.
According to court documents, Saksena is the president and chief executive officer of Saks IT Group LLC, a company based in Manchester, New Hampshire. Saks IT Group contracts with other companies to provide information technology consulting services and places its employees with other companies to provide professional technology services. From approximately March 2014 through approximately December 2015, Saksena filed 45 fraudulent visa applications with United State Citizenship and Immigration Services falsely claiming that Saks IT Group was hiring foreign workers to provide professional services to a company in Cupertino, California. The California company had not entered into a contract with Saks IT Group and had no jobs available for the foreign workers. Saksena knew that the foreign workers would not be employed at the California company.
Saksena filed the false visa applications under the H-1B visa program. That program allows American businesses to temporarily employ foreign workers with specialized or technical expertise in a particular field like accounting, engineering, or computer science when qualified U.S. workers cannot be found to fill those positions. Under the H-1B visa program, a U.S. employer may employ a highly educated foreign worker subject to strict conditions, which include a demonstrated need for the foreign worker to fill a vacant position and assurance that the U.S. company will employ the foreign worker. Saksena filed visa applications that falsely claimed jobs awaited the foreign workers at the California company. He supported those applications with bogus Independent Contractor Agreements between the California company and Saks IT Group and with sham Work Orders that purported to show that the foreign worker would provide professional services for the California company. Some of the false visa applications resulted in foreign workers receiving H-1B visas. Many of the fraudulent applications were denied once Saksena’s deception came to light.
Saksena previously pleaded guilty on May 1, 2017, to making false statements to United States Citizenship and Immigration Services.
This case was investigated by the Diplomatic Security Service of the U.S. State Department; the U.S. Department of Labor, Office of the Inspector General, Division of Labor Racketeering; and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Mark S. Zuckerman.
###
Man Charged with Two July Credit Union Robberies; Recently Finished Serving Sentence for Eight Other RobberiesRead the Press Release
SALT LAKE CITY – A federal grand jury returned an indictment Wednesday morning charging Jeremy Van Duren, age 43, of West Jordan, with robberies of two Salt Lake County credit unions in July.
The indictment alleges Van Duren committed a July 17, 2017, robbery of Deseret First Credit Union in Murray and a July 25, 2017, robbery of Chartway Federal Credit Union in West Jordan.
This is Van Duren’s second trip to federal court on bank robbery charges. He was charged with 16 bank robberies in an indictment returned in March 2004. He pleaded guilty to eight of the robberies in June 2004 and was sentenced to 130 months in federal prison in September 2004. He was ordered to pay almost $60,000 in restitution to the banks. His sentence also included 36 months of supervised release at the end of the sentence. (There is no parole in the federal criminal justice system.) He later served an additional 14 months in custody for violations of his supervised release.
Several law enforcement agencies were involved in a coordinated effort to bring Van Duren into custody in connection with the recent credit union robberies, including the Murray and West Jordan Police Departments and the FBI’s Violent Crimes Task Force.
Following the first robbery, detectives with the Murray Police Department were able to use surveillance video from the area to identify a male they believed was involved in the robbery as well as the car they believed was used in the robbery. As law enforcement officers continued the investigation, they developed information they were able to use to arrest Van Duren shortly after the second robbery was committed.
An initial appearance will be scheduled for Van Duren in U.S. District Court. He faces up to 20 years in federal prison for each of the two counts in the indictment. An indictment is not a finding of guilt. Individuals charged in an indictment are presumed innocent unless or until they are proven guilty in court.
Louisville Couple Guilty of Wire FraudRead the Press Release
Embezzled over $550,000.00 from Iceland Sports Complex
LOUISVILLE, Ky. - A Jefferson County, Kentucky, couple pleaded guilty in United States District Court yesterday, before Chief Judge Joseph H. McKinley, Jr. to a single charge of wire fraud for their individual roles in a scheme to divert over $550,000.00 from the Iceland Sports Complex announced United States Attorney John E. Kuhn, Jr.
Glenn Christopher Richardson, 56, and Karen M. Richardson, 56, admitted that beginning no later than January of 2005, and continuing to about September of 2011, while employed at the Iceland Sports Complex, LLC, an ice skating rink located in Eastern Jefferson County, they created a bank account in the name of Karen Richardson, d/b/a Louisville Storm, for the purpose of diverting and concealing daily revenue from Iceland Sports Complex.
According to the plea agreement, the couple would deposit checks made out to Iceland into the Louisville Storm account. The couple concealed the use of these funds by creating and sending revenue statements to Iceland’s owners located in Michigan, which underreported the amount of Iceland Sports Complex’s daily revenue. The couple admitted using the diverted funds for their personal use and for use by their family.
At the time of sentencing, the United States will move for dismissal of counts 1-7 of the indictment. Sentencing before Chief Judge McKinley is scheduled for November 6, 2017, at 11:45 a.m. in Louisville.
This case is being prosecuted by Assistant United States Attorney Marisa J. Ford and is being investigated by the United States Secret Service.
richardson_plea_agreement_8-7-17_0.pdfKutztown Bus Company Agrees to Use Wheelchair Accessible Buses and Pay PenaltyRead the Press Release
PHILADELPHIA – Carl R. Bieber, Inc., d/b/a Bieber Tourways, a transportation company headquartered in Kutztown, Pennsylvania, has entered into a settlement agreement with the United States to resolve allegations that the company violated the Americans with Disabilities Act (ADA) by failing to use wheelchair-accessible buses on fixed-route service.
Under the ADA, large operators like Bieber Tourways must ensure that 100 percent of the buses in their fixed-route fleet are readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs. The settlement arises out of an investigation into whether Bieber Tourways complied with this requirement by providing accessible buses on its fixed-route services to and from Philadelphia and New York City.
During the investigation, the United States obtained documents showing that the company used a fixed-route fleet that is not 100 percent accessible, contrary to federal law. The United States determined that, in one particular month, Bieber Tourways used non-accessible buses on fixed routes nearly half the time.
To resolve the matter, Bieber Tourways has agreed to comply with its obligations under the ADA, pay a civil penalty of $20,000.00, use only wheelchair-accessible over-the-road buses for fixed-route service, and publish a notice on its Internet home page stating that all Bieber Tourways motor coaches are wheelchair-accessible on the fixed route schedule. In addition, Bieber Tourways has agreed that it will no longer publish bus schedules or signs stating that passengers with disabilities must give the company advance notice in order to receive accessible transportation on the fixed route service. Bieber Tourways has also agreed to train its employees about the ADA requirements for large, fixed-route over-the-road bus operators. Bieber Tourways must meet these requirements according to a timetable in the agreement.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania is committed to investigating alleged violations of the Americans with Disabilities Act. Those interested in learning more about obligations under the Americans with Disabilities Act may access www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm.
Assistant U.S. Attorney Michael S. Macko handled the matter in conjunction with the Department of Justice’s Civil Rights Division.
Jury Convicts Leader of Nationwide Identity Theft and IRS Tax Fraud SchemeRead the Press Release
MEDFORD, Ore. – On Friday, August 4, 2017, a federal jury in Medford convicted Emmanuel Oluwatosin Kazeem, 34, of Bowie, Maryland and Nigeria of 19 counts of mail and wire fraud, aggravated identity theft and conspiracy to commit mail and wire fraud.
Based on evidence presented at the trial, Kazeem obtained over 125,000 stolen taxpayer identities from throughout the United States for use in a tax fraud scheme. He purchased over 91,000 of those identities from a Vietnamese hacker that originated from an Oregon company’s database. Most of those identities belonged to victims living in Oregon and Washington.
Between 2012 and 2015, the taxpayer identities were used to file fraudulent tax returns. As part of the fraud scheme, Kazeem passed many of the identities to his co-conspirators located in the Atlanta, Georgia area and in Nigeria. He instructed co-conspirators on how to use the stolen personal identifying information to obtain electronic filing PINs from the Internal Revenue Service (IRS) in the taxpayers’ names for use in filing the fraudulent tax returns; create fictitious W-2 wage documents; and acquire and register prepaid debit cards in the taxpayer’s names to receive the fraudulent tax refunds.
Kazeem also used taxpayers’ personally identifiable information to gain unauthorized access into many taxpayers’ IRS transcripts containing sensitive personal financial information. Kazeem and his co-conspirators used the information to E-file federal tax returns as well as state tax returns in Oregon. Over 2,800 fraudulent federal tax returns were linked to Kazeem with attempted refunds totaling in excess of $26 million dollars and actual losses to the U.S. Treasury totaling nearly $7 million dollars. IRS criminal investigators traced over 2,000 wire transfers involving $2.1 million dollars in fraudulent tax refunds wired to Nigeria by Kazeem and his co-conspirators.
Evidence seized from Kazeem’s Maryland residence revealed over $190,000 cash invested in the recent purchase of a newly constructed home; the purchase of a Maryland townhouse for $175,000 cash shortly before his arrest; average monthly personal credit card payments of over $8,300 during a four-year period; and recent negotiations to construct a hotel in Lagos, Nigeria. IRS criminal investigators determined Kazeem had no verifiable income sources during this period.
Kazeem is scheduled to be sentenced in the federal district court in Medford before U.S. District Court Judge Ann Aiken on November 8, 2017.
This case results from a joint investigation by IRS-Criminal Investigation (IRS CI), the U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG) and the FBI. Investigative support was provided by the Treasury Inspector General for Tax Administration (TIGTA); the U.S. Postal Inspection Service (USPIS); the U.S. Department of State; the U.S. Department of Homeland Security, Homeland Security Investigations (DHS HSI) and U.S. Citizenship and Immigration Services (USCIS). The case was prosecuted by Byron Chatfield and Gavin Bruce, Assistant United States Attorneys for the District of Oregon.
Jacksonville Man Indicted for Robbing Tire Store at GunpointRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of a superseding indictment charging Roderick Randolph Lester (38, Jacksonville) with robbery of a Jacksonville tire store, brandishing a firearm during the robbery, and possession of a firearm by a convicted felon. If convicted on all counts, he faces a maximum penalty of life in federal prison. The indictment also notifies Lester that the United States intends to forfeit the Taurus semiautomatic pistol he used during the robbery.
According to the indictment, on September 26, 2016, Lester robbed Glover’s New and Used Tires, in Jacksonville, of a Michelin-brand tire while brandishing a firearm. Lester had been previously convicted of seven felonies, including manslaughter, burglary, and two previous convictions for possession of a firearm by a convicted felon. Additionally, he was subject to federal supervision by the U.S. Probation Office when he committed the recent robbery and related offenses.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.