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25 September 2017
Las Vegas Man Sentenced to Two Years in Prison for His Role in Multi-Million Dollar Advance Fee Business Loan Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 24 months in prison for his participation in a $3.2 million advance fee scheme to fraudulently obtain money from victims seeking business loans, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Ronald Gene Morgan, 62, pleaded guilty in February to one count of wire fraud. In addition to the term of imprisonment, U.S. District Judge James C. Mahan sentenced Morgan to three years of supervised release. Morgan agreed to pay $3,000,382 in restitution to victims of the fraud scheme.
According to the plea agreement, from March 2009 to April 2011, Morgan and others operated Argent Asset Management and Argent Securities, an Illinois-incorporated company and a Florida-incorporated company, respectively. Morgan admitted that he falsely promised victims in Las Vegas and elsewhere that he would provide business loans by using Argent assets to acquire bank-issued bonds at a discount and re-sell the bonds at face value to an investor, thereby producing hundreds of millions of dollars.
As part of the scheme, Morgan lulled the victims by creating and sending false communications and documents depicting escrow account balances containing millions of dollars held on behalf of the clients. He knew that no such funds were held in escrow. He required victims to pay substantial fees in advance of obtaining the loans and told the victims that their funds would be held in escrow, would be refunded if the loans were not obtained, and would be used to obtain the loans. He knew that Argent Securities had no assets. Morgan used the fees paid by victims for his own personal use, to recruit other victims, and to repay portions of other victims fees in order to conceal the fraud scheme.
The case was investigated by the FBI; and prosecuted by Assistant U.S. Attorneys Kathryn Newman and Nicholas D. Dickinson.
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Kern County Man Sentenced for Marijuana Cultivation in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Russell Lee Riggs, 69, of Weldon, was sentenced today to five years in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana grown in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.
The sentence was imposed following his guilty plea in June. According to court documents, Riggs delivered supplies and material to a marijuana cultivation site containing over 3,000 marijuana plants in the Fay Creek drainage in the Sequoia National Forest. He also received and removed processed marijuana from the site. Springs were dammed and diverted to irrigate the marijuana plants and large amounts of trash were scattered throughout the site, including in a flowing stream. Law enforcement officers also seized marijuana cultivation equipment and supplies, over $7,000 in cash, 16 firearms and over 2,000 rounds of ammunition at the site and during follow-up searches of Riggs’s residence and that of co-defendant Juan Penaloza-Ramirez, 46, a native and citizen of Mexico.
In sentencing Riggs, U.S. District Judge Dale A. Drozd also ordered Riggs to pay $1,719.31 to the U.S. Forest Service for the damage to public land and natural resources caused by the cultivation activities. He also ordered the forfeiture of the seized firearms and ammunition.
Penaloza-Ramirez pleaded guilty and was sentenced in June to serve seven years and three months in prison.
This case was the product of an investigation by the U.S. Forest Service, U.S. Drug Enforcement Administration (DEA), Bureau of Land Management, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives, Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, California Department of Fish and Wildlife, California Department of Justice’s Campaign Against Marijuana Planting (CAMP), and Kern County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Keams Canyon Man Sentenced to Prison for Assaulting Federal OfficerRead the Press Release
PHOENIX – Today, Elan Nash, 30, of Keams Canyon, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 29 months’ imprisonment, in addition to 8 months’ imprisonment previously served on a related case in the Hopi Tribal Court. Nash had previously pleaded guilty to assault resulting in serious bodily injury.
On June 30, 2016, an officer with the Bureau of Indian Affairs – Office of Justice Services (Hopi Agency) observed Nash to be intoxicated and, after speaking with him, attempted to place Nash under arrest for public intoxication. Nash resisted arrest and assaulted the officer. In doing so, he seriously injured the officer’s hand. Nash is a member of the Hopi tribe and the assault occurred within the Hopi Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-17-8002-PCT-SPL
RELEASE NUMBER: 2017-092_Nash
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Jury Convicts Tax Preparer for Filing False ReturnsRead the Press Release
BIRMINGHAM – A federal jury on Friday convicted an Atlanta-area woman on 13 tax-related counts following a weeklong trial in U.S. District Court, announced U.S. Attorney Jay E. Town and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge James E. Dorsey.
The jury convicted PATRICE ANDERSON, 37, of Fayetteville, Ga., for using her Birmingham-area tax preparation business, Queen’s Fast Tax, to file tax returns on behalf of others in 2010 and 2011 that she knew contained false information. The jury found Anderson guilty of 12 counts of aiding or assisting others to prepare and file false income tax returns and one count of filing her own false income tax return for 2010.
According to evidence during the five-day trial before U.S. District Court Judge R. David Proctor, Anderson filed tax returns that claimed refundable credits her clients were not entitled to so that they would receive inflated tax refunds from the government. In return, Anderson would charge the clients abnormally high fees to file their taxes. Anderson charged her clients up to $3,000 per fraudulent tax return, according to testimony.
Anderson testified during the trial that she included only information given to her by clients on the returns she prepared. The government presented evidence, however, that even Anderson’s own 2010, 2011 and 2012 tax returns contained some of the same false items that were characteristic of the fraudulent tax returns she filed for her clients.
Anderson will face up to three years in prison.
IRS, Criminal Investigation, investigated the case, which Assistant U.S. Attorney Xavier Carter prosecuted.
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Juneau Man Convicted for Receipt of Child PornographyRead the Press Release
Juneau, Alaska – Acting U.S. Attorney Bryan Schroder announced today that on Friday, Sept. 22, 2017, a federal jury of six women and six men convicted a Juneau man of receipt of child pornography.
Jim Wayne Thornhill, 40, of Juneau, was found guilty after a three-day trial before Chief U.S. District Judge Timothy M. Burgess. Sentencing has been scheduled for Nov. 30, 2017, in Juneau. Thornhill faces a maximum penalty of no less than 15 years and up to 40 years in prison, a fine of $250,000, a five-year to life term of supervised release, and a $100 special assessment. Thornhill is a convicted sex offender, who was convicted by the State of Alaska for sexual abuse of a minor in the second degree in 2007, where he had repeatedly sexually abused a child from the age of six to 11.
According to the evidence presented at trial, the Federal Bureau of Investigation (FBI) received a report of harm forwarded from the National Center for Missing and Exploited Children (NCMEC) and the Internet Crimes Against Children (ICAC) to the Juneau Police Department. The FBI subsequently identified Thornhill as a person of interest.
On Oct. 7, 2015, Thornhill was contacted by the FBI and was interviewed, where he denied having a cell phone. The FBI learned that Thornhill’s employer located a cell phone and handwritten lists with search terms and internet addresses that were associated with child pornography. The FBI subsequently interviewed Thornhill again on Oct. 13, 2015, where he admitted to writing the handwritten lists of search terms, ownership of the cell phone, and accessing the Internet with the cell phone between September and November 2014. He claimed he was looking for adult and child pornography that were “just naked kids.” Based on this information, the FBI obtained a search warrant for Thornhill’s cell phone which revealed at least 100 images of child pornography that were downloaded between the dates of Nov. 3, 2014, through Dec. 25, 2014. Many of the images were of young pre-pubescent children engaged in sexually explicit conduct, including images that depicted an adult male sexually assaulting a toddler.
The FBI investigated this case, with assistance from the Juneau Police Department. Assistant U.S. Attorney Jack Schmidt, located in the Juneau Branch Office, prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood, U.S. Marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Jessie K. Liu Takes Office as United States AttorneyRead the Press Release
WASHINGTON – Jessie K. Liu has taken office as United States Attorney for the District of Columbia. She succeeds Channing D. Phillips, who had been serving in the position since Oct. 19, 2015.
President Trump nominated Ms. Liu on June 12, 2017 to serve as U.S. Attorney, and the Senate confirmed the nomination on Sept. 14, 2017. She was sworn in by Deputy Attorney General Rod J. Rosenstein. She formally took office at 12:01 a.m. on Sunday, Sept. 24.
Ms. Liu, 44, had been Deputy General Counsel for the United States Department of the Treasury. She previously was a partner at the law firms of Morrison & Foerster LLP and Jenner & Block LLP, where her practice focused on litigation, investigations, and compliance.
In addition to her work in private practice, U.S. Attorney Liu has extensive experience with the Department of Justice. From 2002 until 2006, she was an Assistant U.S. Attorney in the U.S. Attorney’s Office for the District of Columbia, handling criminal and appellate cases. She then moved to the Department of Justice, where she served in a series of positions until 2009, including Deputy Chief of Staff for the National Security Division, Counsel to the Deputy Attorney General, and Deputy Assistant Attorney General in the Civil Rights Division.
“I am honored to return to the United States Attorney’s Office and looking forward to working with the people here, our many law enforcement partners, and the community,” said U.S. Attorney Liu.
U.S. Attorney Liu graduated with honors from Harvard University in 1995 and obtained her juris doctorate from Yale Law School in 1998.
Because of its size and varied responsibilities, the U.S. Attorney’s Office for the District of Columbia is unique among the 94 U.S. Attorney’s Offices across the nation. It is the largest of the U.S. Attorney’s Offices, with more than 300 attorneys and a similar number of support employees. The Office is responsible for the prosecution of all federal crimes, including terrorism, public corruption, firearms, and other offenses, as well as the prosecution of all serious local crime committed by adults in the District of Columbia. The Office also represents the United States and its departments and agencies in civil proceedings filed in federal court in the District of Columbia.
As she took on her new responsibilities, U.S. Attorney Liu thanked Mr. Phillips for his many years of public service with the U.S. Attorney’s Office and the Department of Justice.
Huntsville Defense Contractor Sentenced for Defrauding DTRA, NASARead the Press Release
HUNTSVILLE – A federal judge last week sentenced a Huntsville defense contractor on criminal charges of falsely obtaining Small Business Innovation Research contracts with the Department of Defense and the National Aeronautics and Space Administration, announced U.S. Attorney Jay E. Town, NASA Inspector General Paul Martin and Defense Criminal Investigative Service Special Agent in Charge John Khin.
U.S. District Court Judge Abdul K. Kallon ordered the contractor, Scientic Inc., to repay the full amount of the contracts with the Defense Threat Reduction Agency and NASA, which totaled $250,000, and fined the company $30,000. Judge Kallon also placed Scientic on three years’ probation.
“Bringing those to justice who defraud the United States is among my office’s highest priorities,” Town said. “We are already aggressively expanding our investigative oversight into this illicit behavior.”
“The NASA Office of Inspector General will continue to aggressively investigate those who defraud NASA programs and waste taxpayers' money,” Martin said. “The NASA OIG congratulates the investigative and prosecution team for their hard work and professionalism.”
“In concert with our partner agencies, DCIS aggressively investigates fraud and corruption that undermines the integrity of Department of Defense programs and contracts,” Khin said. “We must do all we can to preserve precious American taxpayer dollars while ensuring our national security.”
Scientic pled guilty in June to making a false statement in order to obtain research contracts with the DTRA and NASA. As part of its plea, Scientic agreed to the fine and restitution.
NASA OIG and DCIS investigated the case, which Assistant U.S. Attorney David Estes prosecuted.
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Gulfport Resident Pleads Guilty to Possession of Child PornographyRead the Press Release
Gulfport, Miss. – Brett Michael Sekinger, age 26, of Waveland, Mississippi, pled guilty on September 21, 2017, to possession of child pornography, announced Acting U.S. Attorney Harold Brittain and FBI Special Agent in Charge Christopher Freeze.
On February 5, 2016, at a residence in Ocean Springs, Mississippi, Sekinger knowingly possessed computers and other electronic components containing visual depictions, in digital still and video format, of minors engaging in sexually explicit conduct.
Sekinger will be sentenced on December 14, 2017, by Chief U.S. District Judge Louis Guirola. He faces a maximum sentence of 20 years in prison, a $250,000 fine, and not less than 5 years to life of supervised release.
This case was investigated by the FBI Jackson Division’s Child Exploitation Task Force, which is composed of agents from the FBI and the Mississippi Attorney General’s Office, officers from the Prentiss County Sheriff’s Office, and prosecutors from the United States Attorney’s Offices in Jackson and Oxford. Assistant U.S. Attorney Andrea Jones is prosecuting the case.
Grand Jury Indicts Washington County Man for Distributing FentanylRead the Press Release
PITTSBURGH - A resident of the City of Washington, Washington County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of distributing and possessing with intent to distribute a quantity of fentanyl, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on August 24, 2017, and unsealed today following his arrest, named Romone Barnes, 31, of Washington, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, Barnes distributed and possessed with intent to distribute a quantity of fentanyl on or about June 26, 2017. Barnes is detained pending trial.
The law provides for a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Special Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
Task Force Officers with the Federal Bureau of Investigation, Pennsylvania State Police, and Washington County District Attorney’s Office Drug Task Force 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.
Fort Thompson Man Charged with AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Assault with Intent to Commit Murder, Assault with a Dangerous Weapon, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Austin Paul Abernathy, age 26, was indicted on September 12, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 18, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 27, 2017, Abernathy unlawfully assaulted his intimate partner with a knife, with the intent to commit murder. Said assault resulted in substantial bodily injury to the victim.
The charges are merely accusations and Abernathy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Abernathy was released on bond pending trial. A trial date has not been set.
Former Felon Sentenced to 10 Years in Prison for Possession of A FirearmRead the Press Release
RENO, Nev. – A former felon who was found guilty by a jury in June was sentenced today to 10 years in prison for illegal possession of a firearm, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada. United States District Judge Larry R. Hicks presided over the sentencing hearing.
After a three-day jury trial, Ricky Carter Jr., 39, of Reno, was found guilty of one count of felon in possession of a firearm. In November 2016, he illegally possessed a 9mm semiautomatic pistol after prior felony convictions in Washoe County.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Regional Gang Unit. The case was prosecuted by Assistant U.S. Attorney Megan Rachow.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment by the Department of Justice to reduce gun and gang crime in America by networking local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. For more information about Project Safe Neighborhoods, visit www.justice.gov/usao-nv.
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Final Defendant Sentenced in Pierce Commercial Mortgage Fraud InvestigationRead the Press Release
The final defendant in a long running investigation of mortgage fraud at Pierce Commercial Bank was sentenced today in U.S. District Court in Tacoma, announced U.S. Attorney Annette L. Hayes. Between 2005 and 2008, BEN LESKE, 40, of Puyallup, worked as a loan officer for PC Bank Home Loans, a division of Pierce Commercial Bank. LESKE pleaded guilty in May 2017, to making false statements on loan applications. Today U.S. District Judge Benjamin H. Settle sentenced LESKE to 30 days of home detention, 100 hours of community service, two years of supervised release and more than $131,000 in restitution.
“Those whose crimes deepened the damage from the 2008 financial crisis deserve to be punished just like any other criminal, said U.S. Attorney Annette L. Hayes. “This defendant and 14 other well-paid bank employees from loan officers to bank vice presidents forged documents and made false statements to close loans they knew were not sound. The result was the collapse of Pierce Commercial Bank and the expenditure of nearly $7 million of taxpayer funds to address the financial mess these defendants left behind.”
According to records in the case, between 2004 and 2008, the architect of the fraud, Shawn L. Portmann, and other members of the conspiracy submitted false documents within various loan documents and applications. They falsified information about the borrowers’ qualifications as well as their intention to reside in the homes being financed. A review of a sample of conventional and HUD loans showed that members of the conspiracy closed over 300 loans with false and fraudulent documents and information. More than half of this sample of loans have defaulted or otherwise caused loss, causing an estimated loss of more than $10 million to Pierce Commercial Bank, secondary investors and HUD/FHA. Court records detail multiple false statements included in loan documents regarding an applicant’s employment, income, and intention to reside in the property. Pierce Commercial Bank was closed by regulators in November 2010. Pierce Commercial Bank received $6.8 million from Troubled Asset Relief Program (TARP) in January 2009. This money was never repaid.
“With the sentencing of mortgage banker Ben Leske, 15 bank employees have now faced justice for a conspiracy that directly contributed to Pierce Commercial Bank’s failure and the loss of $6.8 million in TARP bailout funds,” said Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero. “Ringleader Shawn L. Portmann, who was sentenced to 10 years in federal prison for his crimes, created a culture at PC Bank Home Loans, Pierce Commercial Bank’s mortgage lending office, where all loans applications were expected to approved, regardless of the applier’s ability to repay. Under this ‘close every loan’ culture, he and his co-conspirators submitted false and fraudulent documents showing borrowers who appeared qualified for mortgages when in fact they were not. As a result, PC Bank Home Loans greatly expanded the residential mortgage lending operations of Pierce Commercial Bank prior to the financial crisis from no more than $3.9 million a month to nearly $500 million a year. I thank the U.S. Attorney’s Office for their commitment to fighting fraud related to TARP.”
Shawn L. Portmann and nine other defendants were prosecuted and sentenced between 2011 and 2013, with sentences ranging from probation to the ten-year prison sentence for Portmann. Five additional conspirators were charged in 2017. In addition to LESKE, four others sentenced in the 2017 case include: Sam Tuttle, 54, of Tacoma, a Vice-President of PC Bank Home Loans was sentenced to three years of supervised release; Angela Crozier, 44, of Olympia, a loan processor was sentenced to one year of supervised release; Ed Rounds, 53 of Puyallup, a loan officer was sentenced to two years of supervised release and Craig Meyer, 55, of Dickenson, Texas, a Vice President and loan officer was sentenced to one year of supervised release.
The case was investigated by the FBI, the HUD Office of Inspector General (HUD-OIG), Internal Revenue Service Office of Criminal Investigation (IRS-CI), the Washington State Department of Financial Institutions, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) and the United States Postal Inspection Service.
The case was prosecuted by Assistant United States Attorney Brian Werner and Special Assistant United States Attorney Hugo Torres. Mr. Torres is a King County Senior Deputy Prosecuting Attorney specially designated to prosecute mortgage fraud in federal court.
Federal Jury Finds Minneapolis Man Guilty of Tax FraudRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the conviction of HASSAN OSMAN, 52, on charges of conspiracy, tax fraud and failing to appear on the day of trial. OSMAN was charged by superseding indictment on May 3, 2016. Following a four-day trial before U.S. District Judge David S. Doty, the jury convicted OSMAN on one count of conspiracy, 13 counts of aiding and assisting in the preparation of a false tax return, and one count of unlawful flight from prosecution.
“Hassan Osman participated in a tax fraud conspiracy that involved nearly 100 fraudulent tax returns claiming more than $1 million in fraudulent tax refunds,” said Assistant U.S. Attorney Joe Thompson. “Osman’s attempt to avoid responsibility for his actions by fleeing the country was unsuccessful. Thanks to the IRS and US Marshals, Osman was arrested in Canada and extradited back to the United States to face trial. He now faces the prospect of spending additional time in prison based on his flight from prosecution.”
“Hassan Osman’s attempt to evade the law was thwarted and he was found guilty of conspiracy to aid and assist in the preparation and filing of false tax returns by a jury of his peers,” said IRS Criminal Investigation, Acting Special Agent in Charge Hubbard Burgess, St. Paul Field Office. “Other persons thinking about participating in a scheme like this should understand that the consequences may include prison, being branded a convicted felon for the rest of their lives and paying restitution to the government.”
As proven at trial, between January 2008 and April 2011, OSMAN and his co-conspirators devised and carried out a tax fraud scheme by filing false federal income tax returns claiming fraudulent refunds. OSMAN and his co-conspirators prepared fraudulent tax returns using fake W-2s created in the name of several front companies. Most of the returns were filed electronically, either from coffee shops or from a business in south Minneapolis owned by OSMAN. The resulting refunds were split among OSMAN and his co-conspirators. Often times, the fraudulent refunds were deposited onto prepaid debit cards and sent to addresses controlled by OSMAN or his co-conspirators. During the course of the conspiracy, OSMAN and his co-conspirators filed more than 90 income tax returns claiming approximately $1,012,877 in fraudulent tax refunds.
As proven at trial, OSMAN was arrested on April 17, 2015 and was later released on bond pending trial. On July 28, 2015, when OSMAN failed to appear for a court ordered pretrial conference, a warrant was issued for his arrest. On April 14, 2016, OSMAN was arrested in Toronto, Canada and later extradited back to the United States to face trial.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson and Michelle E. Jones.
Defendant Information:
HASSAN OSMAN, 52
Minneapolis, Minn.
Convicted:
- Conspiracy, 1 count
- Aiding and assisting in the preparation of a false tax return, 13 counts
- Failure to appear, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Court Permanently Shuts Down Detroit Tax Preparation BusinessRead the Press Release
On Sept. 25, a federal court in Detroit, Michigan has permanently barred Tax Pioneer Co. and its owner Dieasha Davis from operating a tax return preparation business and preparing federal tax returns for others, the Justice Department announced today. Tax Pioneer Co. and Davis agreed to the civil injunction order entered against them.
According to the suit filed in January 2017, Davis, a former manager and tax return preparer for a Liberty Tax Service franchisee, prepared fraudulent tax returns both during her time at Liberty Tax Service and, since 2013, at Tax Pioneer. Davis and Tax Pioneer prepared tax returns with false or inflated income and expenses, bogus dependents, improper filing statuses, and false itemized deductions, all with the purpose of fraudulently maximizing customer refunds and refundable credits, according to the complaint. The government also alleges that Davis advised at least one customer audited by the Internal Revenue Service (IRS) to submit false records to the IRS in an effort to convince auditors that bogus expenses claimed on the customer’s tax returns were, in fact, legitimate.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Agent, Colombian Narcotics Kingpin and Colombian National Indicted for Conspiracy, Corruption and ObstructionRead the Press Release
A Homeland Security Investigations (HSI) Special Agent and two Colombian nationals were charged today by a federal grand jury in the Southern District of Florida with conspiracy, corruption and obstruction of justice charges stemming from their participation in a bribery scheme that resulted in the dismissal of an indictment filed against one of the Colombian nationals in exchange for cash and other things of value, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Michael T. Moreland of the Office of Professional Responsibility (OPR), Immigration and Customs Enforcement’s (ICE) Southeast Region; and Special Agent in Charge Jay Donly of the Office of Inspector General (OIG), HSI.
According to the indictment, Special Agent Christopher V. Ciccione, II, 52, Phoenixville, Pennsylvania, was the case agent for Operation Cornerstone, a large-scale Organized Crime and Drug Enforcement Task Force case that resulted in indictments of Colombia-based cocaine traffickers from the Cali Cartel, including Jose Piedrahita Ceballos, a Colombian national. The indictment alleges that Piedrahita gave benefits to Ciccione in exchange for official acts that resulted in the dismissal of the indictment against Piedrahita. Juan Carlos Velasco, also a Colombian national, served as the intermediary between Ciccione and Piedrahita. Ciccione ultimately succeeded in getting the Cornerstone indictment dismissed against Piedrahita in exchange for approximately $20,000 in cash, dinner, drinks and prostitution.
The indictment further alleges that while maintaining contact with Piedrahita, Ciccione misled the U.S. Attorney’s Office and HSI management and altered DHS records to represent to decision makers that Piedrahita was “unidentified” and that his case should be dismissed because “all investigative efforts” were “exhausted.” In addition, Ciccone falsified the concurrence of several other federal agents and even attempted to parole Piedrahita into the U.S.
The U.S. Department of the Treasury's Office of Foreign Assets Control designated Piedrahita as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act on May 3, 2016.
ICE-OPR, Department of Homeland Security’s OIG and the FBI investigated the case. The Department of Justice’s Office of International Affairs and Office of the Judicial Attaché in Colombia, and the Drug Enforcement Administration provided valuable assistance to the investigation. Trial Attorneys Luke Cass and Jennifer A. Clarke of the Criminal Division’s Public Integrity Section are prosecuting the case.
Fairfax Attorney Charged with Embezzling $1.4 Million from Virginia Senator, Canadian Business, and Autism OrganizationRead the Press Release
ALEXANDRIA, Va. – A Fairfax attorney has been indicted by a federal grand jury for his alleged role in three fraud schemes totaling over $1.4 million in losses, including embezzling over $653,000 from Virginia State Senator Richard Saslaw’s campaign fund.
According to the indictment that was unsealed today at his initial appearance in federal court, David H. Miller, 68, of Fairfax, participated in three fraud schemes from 2011 through 2014. In the first scheme, Miller, an attorney, along with his wife, Linda Wallis, created two fake law firms, the first known as Federal Legal Associates, and the second known as The Straile Group. Miller and Wallis used the two fake law firms to fraudulently bill Miller’s employer, SkyLink Air and Logistic Support, Inc. (SkyLink), a Canadian based aviation company that maintained an office in Dulles. Miller and Wallis allegedly caused approximately $368,400 in losses to SkyLink.
The second scheme alleged in the indictment details the embezzlement of approximately $653,000 from the campaign account of Senator Saslaw. From June 2013 to September 2014, Wallis served as the treasurer of the Saslaw for State Senate campaign. During that time, Wallis issued approximately 73 fraudulent checks from the Saslaw for State Senate campaign bank account, which totaled approximately $653,000. All of the checks were issued without the knowledge or permission of Senator Saslaw or his campaign staff, and were ultimately deposited into accounts that were controlled by Miller or Wallis. Miller and Wallis used the funds embezzled from Senator Saslaw’s campaign account for personal expenses, including to pay their home mortgage and to retain a personal lawyer.
The third scheme detailed in the indictment alleges misuse of funds from a charitable organization, which Miller co-founded and for which Wallis served as the Executive Director. The organization, known as The Community College Consortium on Autism and Intellectual Disabilities (CCCAID), claimed to provide assistance to community colleges to develop programs for individuals with intellectual disabilities. Between April 2010 and April 2013, community colleges located around the country and an individual donated approximately $783,000 to CCCAID. The funds contributed to CCCAID were supposed to be used to further the mission of the organization and not to enrich Miller or Wallis. Despite these restrictions, from April 2010 to August 2014, Wallis authorized approximately $482,000 in transfers from CCCAID’s account to other bank accounts controlled by Miller and Wallis. A significant percentage of the $482,000 embezzled from CCCAID was used to pay Miller and Wallis’s personal expenses, such as mortgage payments, upgrades to an oceanfront property owned by Miller in Bethany Beach, Delaware, and travel on private aircraft from Manassas, Virginia to Montego Bay, Jamaica for a family vacation.
Miller’s co-conspirator and wife, Linda Diane Wallis, previously pleaded guilty. Wallis was sentenced to 56 months in prison on March 18, 2016.
Miller has been charged with conspiracy to commit mail and wire fraud, conspiracy to launder monetary instruments, mail fraud, wire fraud, and aggravated identity theft, and faces a maximum penalty of 20 years in prison if convicted. 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; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorneys Uzo Asonye and Samantha Bateman are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-213.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
FBI Releases 2016 Report on Crime in the United StatesRead the Press Release
The Federal Bureau of Investigation today released the 2016 edition of its Crime in the United States (CIUS) report, a part of the FBI’s Uniform Crime Reports (UCR). The report, which covers January-December 2016, reaffirms that the worrying violent crime increase that began in 2015 after many years of decline was not an isolated incident. The violent crime rate increased by 3.4 percent nationwide in 2016, the largest single-year increase in 25 years. The nationwide homicide rate increased by 7.9 percent, for a total increase of more than 20 percent in the nationwide homicide rate since 2014.
“For the sake of all Americans, we must confront and turn back the rising tide of violent crime. And we must do it together,” Attorney General Jeff Sessions said. “The Department of Justice is committed to working with our state, local, and tribal partners across the country to deter violent crime, dismantle criminal organizations and gangs, stop the scourge of drug trafficking, and send a strong message to criminals that we will not surrender our communities to lawlessness and violence.”
The report released today also adjusts and corrects numbers for 2015, showing that the violent crime rate actually increased by 3.3 percent (as opposed to 3.1 percent, as previously reported) in 2015. The violent crime rate increases in 2015 and 2016 each represented the largest single-year increases in the violent crime rate since 1991. These increases were nationwide, with the average violent crime rate increasing in cities over 250,000 in population, in cities under 10,000 in population, in suburban areas, and in every size in-between. In addition to the 7.9 percent homicide rate increase in 2016, the corrected numbers show the homicide rate increased by 11.4 percent in 2015, for a total increase of more than 20 percent from 2014-2016. Rapes, robberies, and aggravated assaults also each continued to increase nationwide in 2016.
For the full report click here.Eagle Butte Man Sentenced on Methamphetamine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Distribution of a Controlled Substance was sentenced on September 18, 2017, by U.S. District Judge Roberto A. Lange.
Corey Ryan DeHorse, age 24, was sentenced to 8 months in custody, followed by 3 years of supervised release, a fine of $1,000, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
DeHorse was indicted by a federal grand jury on November 9, 2016. He pled guilty on June 27, 2017.
DeHorse admitted that on August 5, 2016, he knowingly and intentionally distributed a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, to another individual for $100.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
DeHorse was immediately turned over to the custody of the U.S. Marshals Service.
District Man Sentenced to 20 Years in Prison for Two Violent Attacks, Including a MurderRead the Press Release
WASHINGTON - Jamil Betts, 26, of Washington, D.C., has been sentenced to 20 years in prison for a pair of violent attacks in Southeast Washington, including a murder, U.S. Attorney Jessie K. Liu announced today.
Betts pled guilty in December 2015, in the Superior Court of the District of Columbia, to charges of second-degree murder and assault with a dangerous weapon. The plea, which was contingent upon the Court’s approval, called for a prison term of 20 years on both charges.
The Honorable Michael Ryan accepted the plea and sentenced Betts on Sept. 22, 2017. Following his prison term, Betts will be placed on five years of supervised release.
According to the government’s evidence, the murder victim, Andre McConnell, 26, was with friends in the 3100 block of Buena Vista Terrace SE on April 27, 2015. At around 8:30 that night, Mr. McConnell engaged in a brief verbal argument with an unidentified individual. Shortly thereafter, Betts approached Mr. McConnell and the group with whom Mr. McConnell was gathered. Betts took out a gun, aimed and fired it at Mr. McConnell, and struck Mr. McConnell twice in the lower back. A second individual also was hit with one gunshot wound to the leg. Mr. McConnell was transported to Prince George’s Hospital Center, where he was pronounced dead a short time later.
In the second case, the government’s evidence showed, on the afternoon of May 29, 2015, Betts and another individual approached a woman and her daughter at gunpoint in the area of the 3400 block of A Street SE. Betts, holding the gun, and the other individual attempted to force their way into the woman’s apartment, which was occupied by other individuals. After realizing that the victims called 911, Betts and the other individual attempted to leave the area by car. In the process of driving away from the scene, Betts, who was seated in the front passenger side of the vehicle, aimed his gun at one of the victims outside the apartment building and fired one shot, nearly hitting the victim.
In announcing the sentence, U.S. Attorney Liu commended the work of the detectives of the Criminal Investigations Division, crime scene officers, and the Sixth and Seventh Police District of the Metropolitan Police Department (MPD). She also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Yvonne Bryant, Jennifer Clark, and Shawn Slade; Victim/Witness Services Coordinator David Foster; Victim/Witness Program Specialists Lesley Slade, Laverne Forest, and Wanda Queen; Criminal Investigators Durand Odom, Mark Crawford, and Nelson Rhone, and Paralegal Specialist Lashone Samuels. Finally, she acknowledged the efforts of Assistant U.S. Attorneys Julianne Johnston and Sumit Mallick, who investigated and prosecuted the assault case, and former Assistant U.S. Attorneys Richard DiZinno and Robert Eckert, who investigated and prosecuted the homicide case.
District Man Sentenced to 18 Months in Prison for Sexually Assaulting Co-Worker at Group HomeRead the Press Release
WASHINGTON – Adeniyi Joseph Omilana, 41, of Washington, D.C., was sentenced today to 18 months in prison for sexually assaulting a co-worker at a group home for individuals with disabilities in Southwest Washington, U.S. Attorney Jessie K. Liu announced.
Omilana pled guilty in June 2017, in the Superior Court of the District of Columbia, to a charge of attempted second-degree sexual abuse before the Honorable Judith Bartnoff. Following his prison term, Omilana will be placed on five years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, early on March 26, 2017, Omilana and the victim were working the midnight shift at the group home operated by Lifeline Inc. in the 3900 block of Martin Luther King Jr. Avenue SW. At about 1:30 a.m., the victim became tired and fell asleep on a sofa in the living room. About 30 minutes later, the victim awoke and noticed her underwear and pants were down to her ankles and one leg was removed from her clothing. Omilana was on the floor, kneeling beside the victim, and his hand was on her leg as he was attempting to pull up her pants and underwear. The victim confronted him as he was attempting to pull up her pants. Omilana admitted to engaging in sexual acts with the victim.
In announcing the sentence, U.S. Attorney Liu commended the work of the Metropolitan Police Department, including the Sexual Assault Unit, which investigated the case. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist T.J. McPhail, Victim/Witness Advocate Lezlie Richardson, and Assistant U.S. Attorney Stuart D. Allen, who investigated and prosecuted the case.
District Man Pleads Guilty to Assaulting Stranger in Her HomeRead the Press Release
WASHINGTON – Iray Turner, 40, of Washington, D.C., pled guilty today to one count of assault with intent to commit first-degree sexual abuse and one count of kidnapping for his assault of a stranger in her home, U.S. Attorney Jessie K. Liu announced.
Turner pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a prison sentence between 10 and 12 years. The Honorable Lynn Leibovitz set a hearing for Dec. 1, 2017 to determine whether to accept the plea and sentence. Following his prison term, Turner will be required to register as a sex offender for the rest of his life and faces up to a lifetime of supervised release.
According to the government’s evidence, in the early morning hours of Aug. 24, 2016, the victim arrived at her home in Northeast Washington in an intoxicated state. She does not remember how she got home. The first memory she has is of Turner, a stranger to her, on top of her in her bed, strangling her. She remembers screaming and calling for help. She remembers Turner telling her to be quiet and to calm down. Both of the victim’s neighbors called 911 to report the screams, and the Metropolitan Police Department (MPD) responded to the location.
When MPD officers arrived, they heard a woman screaming for help. They observed house keys hanging from the outdoor lock, and entered the home to locate the victim. Upon entering the home, the officers continued to hear the screams, coming from a bedroom on the second floor. Officers moved upstairs and continued to hear screaming for help. Officers also heard a male voice inside the bedroom, later determined to be the voice of Turner.
Officers pleaded with Turner to open the door, and he refused to do so. Officers urged Turner to allow them to see that the victim was okay. Despite the continued screams, Turner told officers that she was okay. On two occasions, Turner cracked open the bedroom door. However, he refused to allow the victim to exit the bedroom. Officers breached the door and moved in.
When officers entered the bedroom, Turner was sitting on the floor with his back against the door. He was wearing only boxer shorts and socks. The victim was seated on the bed, crying, unclothed from the waist down. She told officers that Turner did not rape her, but that he tried to rape her. Turner was arrested on the scene and has been in custody ever since.
The victim was transported to Washington Hospital Center, where she was examined by a Sexual Assault Nurse Examiner (SANE). The examination identified 49 different injuries on the victim’s body, including multiple abrasions on her face, hemorrhaging to both eyes, bruising all over her body, and red marks to her neck. An expert would have testified at trial that many of those observed injuries were consistent with strangulation, and that the injuries were acute. The expert would also have testified at trial that some of the scratches on the victim’s neck were consistent with defensive injuries that may resulted from the victim scratching her neck while trying to remove Turner’s hands from strangling her on her neck.
In announcing the plea, U.S. Attorney Liu praised the work of detectives from the Metropolitan Police Department’s Sexual Assault Unit, who investigated the case, the officers from the Fifth District of the Metropolitan Police Department who initially responded to the scene, crime scene technicians from the District of Columbia Department of Forensic Sciences, and toxicologists from the District of Columbia Office of the Chief Medical Examiner.
She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists D’Yvonne Key, T.J. McPhail, and Michelle Wicker; Victim/Witness Advocate Tracey Hawkins, and Litigation Technology Specialist Jeanie Latimore-Brown. Finally, she commended Assistant U.S. Attorneys Elana Suttenberg, Jessi Brooks, and Julianne Johnston, who investigated and prosecuted this case.
Desoto Man Sentenced for His Role in a “Foreclosure Rescue Scheme”Read the Press Release
DALLAS — Bruce Kevin Hawkins, 52, of Desoto, Texas, was sentenced this morning before U.S. District Judge David C. Godbey to serve 41 months in prison and pay $219,109 in restitution for his role in a foreclosure rescue scheme that exploited vulnerable homeowners facing foreclosure, announced U.S. Attorney John Parker of the Northern District of Texas.
Hawkins pleaded guilty in June 2017 to one count of mail fraud. He has been in custody since the time of his arrest in January 2017.
A federal grand jury in Dallas returned an indictment in December 2016 charging Hawkins and three others with felony offenses stemming from a “foreclosure rescue scheme” they ran from approximately February 2012 through January 2013. Richard Bruce Stevens, 51, of San Antonio, Texas, and Christina Renee Caveny, 37, of Dallas, also pleaded guilty and will be sentenced later this year. Mark Demetri Stein, 36, of Carrollton, Texas, is awaiting trial.
According to documents filed in the case, Stein operated Real Estate Solutions, Stevens used Texas Real Estate Services, and Hawkins formed ERealty Mortgage Group, LLC, as foreclosure rescue companies. The conspirators used third parties to contact homeowners and offer them an opportunity to get out of their present home loans and receive a new home loan with a reduced interest payment and reduced monthly payment. Hawkins and other conspirators falsely represented to homeowners that they had “investors” standing by who were ready to quickly purchase the homeowner’s present loan from the lender holding the current mortgage. They also falsely represented that they would use investors to purchase the homeowner’s loan from the original lender at a greatly reduced price through a “short sale” process.
Furthermore, Hawkins and other conspirators falsely represented to the homeowners that the homeowners had the legal authority to transfer their homeowner’s deed to the defendants.
As part of the scheme, the conspirators fraudulently required homeowners to start making all future loan payments to them based on fraudulent so-called “loans,” and they also told homeowners to ignore late payment notices sent by lenders. As part of the scheme, the conspirators conducted a fraudulent “closing” for each homeowner where they caused the homeowner to pay them a large down payment on the new “loan,” and they also had the homeowner sign fraudulent documents, such as a promissory note, deed of trust, special warranty deed, and/or a so-called “land trust.”
Further, according to plea documents, the conspirators falsely represented to homeowners that the conspirators could “sell” their property back to the homeowner with a new loan, when the conspirators well knew they did not legally own the property. The conspirators also told homeowners to ignore notices of nonpayment from their present lender as they continued to unlawfully collect monthly so called “mortgage payments” from homeowners. In fact, conspirators instructed several homeowners to file for bankruptcy but to not follow up with the bankruptcy process as an additional means to delay foreclosure and conceal the conspirators’ criminal conduct. Conspirators concealed that all down payment and monthly mortgage payments fraudulently collected from homeowners was spent for their own personal benefit.
The defendants recruited at least 70 distressed and vulnerable homeowners who were facing the imminent threat of foreclosure on their homes and fraudulently collected a total of at least $242,000 from them.
This case is one of several felony prosecutions of bankruptcy-related crimes prosecuted since May 2013 as a result of the Bankruptcy Fraud Initiative in the Northern District of Texas. As part of that initiative, 23 defendants have been convicted and 2 defendants are pending trial.
The Dallas FBI investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
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Department of Justice Awards more than $2.5 Million to Combat Opioid Epidemic, Fund Drug Courts in Washington StateRead the Press Release
WASHINGTON – The Department of Justice is spending $58.8 million nationwide to strengthen drug court programs and address the opioid epidemic. Entities in Washington State are receiving grants totaling $2,530,499.
“The grants to Washington State will pay for stronger prescription drug monitoring programs to curb opioid abuse, and will also fund more treatment and drug court options for those struggling with addiction,” said U.S. Attorney Annette L. Hayes. “With nearly one million dollars going to the Department of Health for prescription monitoring, health care providers, and law enforcement authorities will be better equipped to identify and stop those who are diverting pills to the black market and thereby feeding the opioid epidemic.”
In 2016, nearly 60,000 Americans lost their lives to drug overdoses, an increase from the 52,000 overdose deaths the year before. Washington State’s opioid death rate for calendar year 2015 was 5.5 deaths per 100,000 people, more than double the rate in 1999. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues.“Today, we are facing the deadliest drug crisis in American history,” said Attorney General Jeff Sessions. “These trends are shocking and the numbers tell us a lot– but they aren’t just numbers. They represent moms and dads, brothers and sisters, neighbors and friends. And make no mistake, combatting this poison is a top priority for President Trump and his administration, and you can be sure that we are taking action to address it. Today, we are announcing that we will be awarding millions in federal grants to help law enforcement and public health agencies address prescription drug and opioid abuse. This is an urgent problem and we are making it a top priority.”
In Washington State specific grants include:
- $853,654 to the Department of Health for prescription drug monitoring programs
- $300,000 to Mason County for public education surrounding opioid abuse and overdose prevention
- $399,785 for the Grays Harbor County drug court
- $397,566 for the Port Gamble S’Klallam Tribe drug court.
- $400,000 for the Clark County drug court
- $179,494 to the Department of Social and Health Services for drug treatment programs in jails, prisons and community corrections programs.
Nationally, about $24 million in federal grants will be awarded to 50 cities, counties and public health departments to provide financial and technical assistance to state, local, and tribal governments to create comprehensive diversion and alternatives to incarceration programs for those impacted by the opioid epidemic. These funds, awarded under the Office of Justice Programs’ Bureau of Justice Assistance’s Comprehensive Opioid Abuse Program, also included funds from the Harold Rogers Prescription Drug Monitoring Program. This program helps regulatory, law enforcement, and public health agencies address prescription drug and opioid misuse; reduce crime; and save lives.
An additional $3.1 million will be awarded by the National Institute of Justice for research and evaluation on drugs and crime. The research priorities are heroin and other opioids and synthetic drugs.
The Department is also awarding more than $22.2 million to 53 jurisdictions to support the implementation and enhancement of adult drug courts and Veterans Treatment Courts, which serve as “one-stop-shops” to link veterans with services, benefits and program providers, including the Department of Veterans Affairs, Veterans Service Organizations and volunteer veteran mentors.
Specific sites and funds awarded can be found online at: https://go.usa.gov/xRJWE.
The Department is also awarding more than $9.5 million under several Office of Juvenile Justice and Delinquency Prevention grant programs, including the Juvenile Drug Treatment Court Grant Program and the Family Drug Court Statewide System Reform Implementation Program. These programs help jurisdictions build effective family drug treatment courts and ensure current juvenile drug treatment courts follow established guidelines.
Specific sites and funds awarded can be found online at: https://go.usa.gov/xRJDf.
Finally, read more about the importance of these programs in a new blog by OJP Acting Assistant Attorney General Alan R. Hanson online at https://go.usa.gov/xRJBp.
The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
DOJ Grant Will Support Jefferson County Health Department Resource Recovery CenterRead the Press Release
BIRMINGHAM – The Jefferson County Department of Health will receive $300,000 from the Department of Justice to help support a resource recovery center in Birmingham, announced U.S. Attorney Jay E. Town and Jefferson County Health Officer Mark E. Wilson.
The money is part of $58.8 million in grants the Justice Department announced last week aimed at strengthening drug court programs and addressing the nationwide opioid epidemic.
The $300,000 to Jefferson County comes from $24 million of the overall $59 million that was awarded to 50 cities, counties and public health departments to provide financial and technical assistance to state, local and tribal governments to create comprehensive diversion and alternatives to incarceration programs for those impacted by the opioid epidemic, according to the Justice Department’s announcement.
These funds, awarded under the Office of Justice Programs’ Bureau of Justice Assistance’s Comprehensive Opioid Abuse Program, also included funds from the Harold Rogers Prescription Drug Monitoring Program. This program helps regulatory, law enforcement, and public health agencies address prescription drug and opioid misuse; reduce crime, and save lives. The National Institute of Justice will award an additional $3.1 million for research and evaluation on drugs and crime. The research priorities are heroin and other opioids and synthetic drugs.
“The exceptional leadership at OJP has recognized Birmingham's need for exactly this type of assistance and responded with action,” Town said. “This is truly a force multiplier for the Northern District and I appreciate the confidence the department has in us to produce positive results for all of our citizens.”
“The Jefferson County Department of Health is very pleased to receive this financial and technical assistance from the DOJ to enhance our ongoing efforts to prevent overdose deaths,” Wilson said. “We have enjoyed strong partnerships with law enforcement, local substance abuse treatment and social service organizations, and the University of Alabama at Birmingham. Without them this work would not be possible.”
The Jefferson County Department of Health had already committed to funding a Recovery Resource Center for Jefferson County, which Birmingham’s Crisis Center will manage with in-kind support from local substance abuse treatment organizations and Cooper Green Mercy Health Services. The RRC will be a place for people seeking assistance with substance abuse to receive in-person assistance with information, assessment, referral and navigation to treatment resources. The Department of Justice funding, which JCDH will receive over three years, will enhance the work of the RRC by supporting the Center’s Peer Navigation Initiative, which is being developed to help reduce the number of opioid overdose deaths within the county. One goal of this initiative, according to the grant application, is to increase access to naloxone to survivors of non-fatal overdose, individuals at risk of overdose and family and friends of those individuals. Naloxone is an opioid antagonist that can reverse an overdose if administered immediately.
Other goals of the program include serving 600 survivors, at-risk individuals and their family and friends through recovery support services, providing overdose prevention education, and partnering with a researcher to develop strategies to address system gaps, monitor program performance and gauge the program’s effectiveness.
A peer navigator will be someone who has sustained recovery from opioid abuse and is knowledgeable of local treatment resources, according to the grant application. The peer navigator will work with survivors, users and their families and friends at the point of crisis, such as immediately following an overdose.
The Recovery Resource Center Peer Navigation Initiative is a collaborative effort of the Department of Health, Crisis Center, UAB Department of Emergency Medicine, Addiction Recovery Program of UAB, Fellowship House, Jefferson County Sheriff’s Department, Emergency Management Service, Community Law Office, Northwest Alabama Methadone Clinic and UAB Substance Abuse Programs.
In 2016, nearly 60,000 Americans lost their lives to drug overdoses, an increase from the 52,000 overdose deaths the year before, the Justice Department said in announcing the grant awards. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues, the Justice Department release said, noting that the country’s opioid epidemic is a public health crisis and a growing public safety crisis.
Along with the Justice Department’s $24 million awarded under OJP’s Comprehensive Opioid Abuse Program, the department also is awarding more than $22.2 million to 53 jurisdictions to support the implementation and enhancement of adult drug courts and Veterans Treatment Courts. These diversionary courts serve as “one-stop-shops” to link veterans with services, benefits and program providers, including the Department of Veterans Affairs, Veterans Service Organizations and volunteer veteran mentors.
Specific sites and funds awarded can be found online at: https://go.usa.gov/xRJWE.
The department is also awarding more than $9.5 million under several Office of Juvenile Justice and Delinquency Prevention grant programs, including the Juvenile Drug Treatment Court Grant Program and the Family Drug Court Statewide System Reform Implementation Program. These programs help jurisdictions build effective family drug treatment courts and ensure current juvenile drug treatment courts follow established guidelines.
Specific sites and funds awarded can be found online at: https://go.usa.gov/xRJDf.
Finally, read more about the importance of these programs in a new blog by OJP Acting Assistant Attorney General Alan R. Hanson online at https://go.usa.gov/xRJBp.
The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
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Brian J. Kuester Sworn in as United States Attorney for the Eastern District of OklahomaRead the Press Release
MUSKOGEE, OKLAHOMA – BRIAN J. KUESTER has taken the oath of office to become the United States Attorney for the EASTERN DISTRICT OF OKLAHOMA. Brian J. Kuester was nominated by President Donald Trump on July 19, 2017, and confirmed by the U.S. Senate on September 14, 2017. He took the oath of office today from Chief United States District Judge for the Eastern District of Oklahoma, the Honorable Ronald A. White.
“The challenges faced by federal, state, and local law enforcement officials have never been tougher. I am honored and excited to have the opportunity to work through these challenging times with the dedicated professionals in the United States Attorney’s Office as we work alongside the agencies in the Eastern District of Oklahoma that work to protect the public and uphold the United States Constitution,” Kuester said.
As U.S. Attorney, Brian J. Kuester is the top-ranking federal law enforcement official in the Eastern District of Oklahoma. The district serves 26 counties from Adair to McCurtain County on the East and Wagoner to Love County on the West. He oversees a staff of 35 employees, including 13 attorneys and 22 non-attorney support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Brian J. Kuester served as the District Attorney for Oklahoma’s 27th Prosecutorial District immediately preceding his appointment as United States Attorney. He was elected in November 2010 and re-elected in 2014. District 27 is comprised of Adair, Cherokee, Sequoyah, and Wagoner Counties and has a staff of 50. Prior to becoming DA, Kuester worked as staff counsel for Allstate Insurance Company from 2008 to 2010. From 2003 to 2008, Kuester was an Assistant District Attorney for the Tulsa County District Attorney. While there, he prosecuted a broad variety of cases including murder, robbery, burglary, drug trafficking, and child abuse. He also served as the Director of Crimes Against Children in 2007 and 2008. From 2000 to 2003, he was an associate attorney for Robinett Osmond, a Tulsa civil litigation firm. He received his law degree from the University of Tulsa College of Law in 2000. He has been a member of the Oklahoma Bar Association since September 2000 and is admitted to practice in the Federal Districts for the Eastern and Northern Districts of Oklahoma.
Prior to attending law school, Kuester, a native of Missouri, was a police officer, serving the Fulton and Springfield, Missouri Police Departments for nearly seven years combined. He received a B.S. in Criminal Justice Administration in 1990 from Central Missouri State University. Kuester resides in Wagoner County with Laura, his wife of 22 years, and three children.
Berwick Man Sentenced to 7 Years for Illegal Firearm PossessionRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Adam Brake, 29, of Berwick, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to 7 years in prison and 24 months of supervised release for being a felon in possession of firearms. Brake pleaded guilty on June 5, 2017.
According to court records, in May 2016, Brake committed eight burglaries in the Berwick area. He traded some of the stolen items for heroin in Lawrence, Massachusetts and hid other items in a wooded area in Berwick. Law enforcement agents recovered items stolen during six of the burglaries, including nine firearms. Brake was prohibited from possessing firearms because of a prior felony drug conviction.
The case was investigated by the North Berwick; South Berwick; Berwick; Wells and Eliot Police Departments; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Beaver County Man Charged with Violating Federal Firearms LawsRead the Press Release
PITTSBURGH – A resident of Aliquippa, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on September 19, 2017, named Jamal M. Brooks, 25, of Aliquippa, Beaver County, Pennsylvania.
According to the indictment presented to the court, Brooks, a convicted felon, unlawfully possessed three firearms and ammunition on or about August 22, 2017. Federal law prohibits an individual with a felony conviction from possessing a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $ 250,000, 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 of the defendant.
Special Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort between federal, state and local law enforcement agencies, prosecutors, and communities to prevent, deter and prosecute gun crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Penn Hills 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.
Anthony Weiner Sentenced to 21 Months in Prison for Transferring Obscene Material to A MinorRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that ANTHONY WEINER was sentenced today in Manhattan federal court to 21 months in prison for transferring obscene material to a minor. WEINER pled guilty on May 19, 2017, before U.S. District Judge Loretta A. Preska. Today’s sentence was imposed by U.S. District Judge Denise L. Cote.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Anthony Weiner, a former Congressman and candidate for Mayor, asked a girl who he knew to be 15 years old to display her naked body and engage in sexually explicit behavior for him online. Justice demands that this type of conduct be prosecuted and punished with time in prison. Today, Anthony Weiner received a just sentence that was appropriate for his crime.”
In sentencing ANTHONY WEINER, Judge Cote said: “This is a serious crime that deserves serious punishment.”
According to the documents filed in this case and statements made in court proceedings:
Between January and March 2016, WEINER used online messaging and video chat applications to communicate with a minor girl he knew to be 15 years old (the “Minor Victim”) and to transfer obscene material to her. Those communications began the evening of January 23, 2016, when the Minor Victim initiated contact with WEINER by sending him a direct message on Twitter. That night, the Minor Victim and WEINER exchanged a series of messages. Early in the exchange, the Minor Victim revealed to WEINER that she was in high school. As their communications progressed, the Minor Victim made plain that she was a minor. Despite that knowledge, WEINER participated in increasingly suggestive exchanges. The exchanges occurred over Facebook messenger, Skype, Kik, Confide, and Snapchat, the latter three of which are messaging and photo-sharing applications that delete messages and images once viewed.
Between February 17 and 23, 2016, WEINER and the Minor Victim participated in three video chat sessions on Skype. The Minor Victim made clear during those chat sessions that she was not just a minor; she was, in fact, only 15 years old. Nevertheless, during the latter two Skype sessions, on February 18 and 23, 2016, and in a Snapchat communication on March 9, 2016, the defendant used graphic and obscene language to ask the Minor Victim to display her naked body and touch herself, which she did. He also sent an obscene message to the Minor Victim on Confide, describing what he would do to her if she were 18. As part of these criminal exchanges, the defendant also sent the Minor Victim adult pornography, or a link thereto. In approximately March 2016, after several months of intermittent exchanges, communications between the defendant and the Minor Victim largely stopped.
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In addition to the prison term, WEINER, 53, of New York, New York, was sentenced to three years of supervised release.
Mr. Kim praised and thanked the Federal Bureau of Investigation and the Special Victims Division of the New York City Police Department for their outstanding work.
The case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Amanda Kramer and Stephanie Lake are in charge of the prosecution.
Anna Man Pleads Guilty to Creating Pornography from Rape of Infant, Child & 10 TeensRead the Press Release
DAYTON, Ohio – Robert Steven Jones, 29, of Anna, Ohio, pleaded guilty to 11 charges involving the sexual exploitation of minors, including an infant and a seven-year-old girl.
Specifically, he pleaded guilty to eight counts of production of child pornography, two counts of coercion and enticement of a minor and commission of a felony offense involving a minor while being registered as a sex offender.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before Senior U.S. District Judge Thomas M. Rose.
According to the Statement of Facts in this case, while living in Illinois in 2013, Jones recorded himself masturbating and committing other sexual acts on and with a seven-month-old infant. The nearly five-minute video also depicts Jones engaging in acts of physical violence with the baby – including slapping, punching, shaking, restraining and suffocating the infant.
In the same week, Jones recorded a second video, this one approximately 10 minutes in length. This video further depicts Jones holding the baby up to the camera while smothering and choking the infant to such an extent that the baby slowly became limp and turned a blueish color, apparently unconscious.
After making comments such as “You want to see a baby pass the f*** out?” Jones then throws the baby.
In June 2014, Jones moved to Ohio, residing in Sidney, Piqua and later Anna.
Jones engaged in prohibited sexual acts on at least two occasions in July 2015 with a seven-year-old female at his residence in Ohio, and produced two videos of the conduct on his cell phone.
In August 2015, law enforcement officers discovered the videos on Jones’s cell phone while executing a search warrant at his home.
Also according to the Statement of Facts, Jones met with and/or communicated with at least nine other victims, aged 13 years to 16 years, for the purpose of engaging in prohibited sexual acts and creating child pornography. This included victims living in other states such as New York and Tennessee.
Jones faces at least 10 years up to life in prison for each coercion and enticement charge. Production of child pornography carries a mandatory minimum sentence of 15 years and a potential maximum sentence of 30 years in prison. Committing a felony offense involving a minor while being required to register as a sex offender carries a mandatory 10-year sentence, to run consecutive to any other sentence.
Jones was arrested on November 4, 2015 by criminal complaint and he has remained in custody since. He was indicted by a federal grand jury in February 2016.
This case resulted from the national FBI investigation “Operation Pacifier” which involved the takedown of a “dark web” site dedicated to child pornography. Using a court-approved Network Investigative Technique to pierce through the anonymity provided by the Tor network, agents uncovered IP addresses and other information that helped locate and identify users. Investigators sent more than 1,000 leads to FBI field offices in every state in the country and thousands more to oversees partners.
As a result of the investigation, at least 350 U.S.-based individuals have been arrested, 25 producers of child pornography have been prosecuted, 51 alleged hands-on abusers have been prosecuted and 55 American children who were subjected to sexual abuse have been successfully identified or rescued.
“This case is another example of law enforcement adapting to technological advances on the dark web in order to find offenders and bring them to justice,” U.S. Attorney Glassman said.
U.S. Attorney Glassman commended the investigation of this case by the FBI, as well as First Assistant United States Attorney Vipal J. Patel and Assistant United States Attorneys Amy M. Smith and Andrew J. Hunt, who are prosecuting the case.
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Albuquerque Felon Charged with Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Timothy W. Mims, 28, of Albuquerque, N.M., made his initial appearance today in federal court on a criminal complaint charging him with violating the federal firearms laws by unlawfully possessing a firearm. The firearm at issue allegedly was stolen from a bank security guard and used to perpetuate a bank robbery on Sept. 23, 2017. Mims remains in custody pending a preliminary hearing and a detention hearing both of which are scheduled at 9:30 a.m. tomorrow morning.
The Albuquerque Police Department (APD) arrested Mims on Sept. 23, 2017, in Bernalillo County, N.M., after observing Mims driving an alleged stolen vehicle and attempting to evade arrest. According to the complaint, APD officers found a firearm in the vehicle during an inventory search incident to Mims’ arrest.
The criminal complaint alleges that the firearm found in the vehicle on Sept. 23, 2017, allegedly was stolen on Sept. 14, 2017, by a man who entered the Bank of America located at 6605 Uptown Blvd. in Albuquerque, armed with a semi-automatic pistol. The man allegedly pointed his pistol at an armed security guard, pressing the pistol into the ribs of the guard above his bulletproof vest. The man then allegedly stole the security guard’s revolver and used it to rob the bank. The serial number and description of the security guard’s revolver match the serial number and description of the firearm found in the stolen vehicle allegedly operated by Mims on Sept. 23, 2017.
Mims was prohibited from possessing firearms or ammunition on Sept. 14, 2017 and Sept. 23, 2017, because of his prior convictions for felony offenses, which include convictions for aggravated assault with a deadly weapon and robbery.
If convicted of the crime charged in the criminal complaint, Mims faces a maximum penalty of ten years in federal prison. Charges in criminal complaints are mere accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and APD. Assistant U.S. Attorney Howard R. Thomas is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
23 September 2017
Charles Tan Arraigned on Federal Firearms ChargesRead the Press Release
SYRACUSE, NEW YORK - Charles Tan, 22, of Pittsford, New York, was arraigned today in Federal Court in Syracuse, New York, on an indictment charging him with three felony firearms offenses, announced Acting United States Attorney Grant C. Jaquith, Special Agent in Charge Ashan M. Benedict, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Monroe County (New York) Sheriff Patrick O'Flynn. The Indictment charges him with one count of Receiving a Firearm and Ammunition with Intent to Commit an Offense, and two counts of Making a False Statement During the Purchase of a Firearm. Tan was arrested yesterday at Lewiston, New York, as he crossed into the United States from Canada.
In court today, Tan entered a plea of “not guilty” and was ordered held without bail by United States Magistrate Judge David E. Peebles pending a detention hearing scheduled for Wednesday September 27, 2017 at 9:30 am in Syracuse.
Tan faces maximum terms of imprisonment of 10 years on one count of Making a False Statement During the Purchase of a Firearm and one count of Receiving a Firearm and Ammunition with Intent to Commit an Offense. He faces a maximum term of imprisonment of 5 years for a second charge of Making a False Statement During the Purchase of a Firearm. The defendant also faces a maximum fine of $250,000.00 on each count and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by ATF and the Monroe County, New York, Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
22 September 2017
Woman Admits to Illegally Selling Prescription Drugs Not Approved for Use in the USRead the Press Release
HOUSTON – A 47-year-old Mexican national who illegally resided in Conroe has been convicted of conspiring to smuggle prescription drugs into the United States and receiving and delivering misbranded drugs with the intent to defraud, announced Acting U.S. Attorney Abe Martinez.
Carolina Aguilar Rodriguez admitted she purchased prescription drugs from individuals who were not licensed wholesale distributors, knowing they had come into the United States covertly and illegally from El Salvador and Mexico. These were not manufactured in the United States, were not approved for use in the United States, should not have been present in the United States and did not contain labels and warnings in English as required by law to protect consumers. One of the drugs - Diprospan - was found to be counterfeit as well as misbranded and did not contain the active pharmaceutical ingredients listed on its labeling.
Rodriguez admitted to selling, dispensing and administering a wide variety of the prescription drugs from her store Naturavida located on Blalock Road in Houston to customers who did not have prescriptions or any type of physician’s orders. The drugs included antibiotics, antivirals, erectile dysfunction drugs, birth control, hormones, pain killers, diuretics and anti-inflammatory medications such as the injectable corticosteroid anti-inflammatory Diprospan.
Rodriguez is not a physician or pharmacist. She also did not label the prescription drugs with specific physician instructions for each patient as required by law.
Rodriguez further admitted that she did not tell customers she obtained the prescription drugs outside of the legitimate supply chain from distributors who illegally and covertly smuggled the drugs into the United States.
U.S. District Judge Melinda Harmon accepted the guilty plea and has set sentencing for Jan. 26, 2018. At that time, she face s up to five years in federal prison for the conspiracy as well as another three years for receiving and delivering misbranded drugs in interstate commerce. She also faces fines up to $250,000. She will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations, Food and Drug Administration - Office of Criminal Investigations and the Houston Police Department - Major Offenders Division conducted the investigation. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
Wichita Woman Pleads Guilty to Three Commercial RobberiesRead the Press Release
WICHITA, KAN. – A Wichita woman pleaded guilty Friday to robbing three local businesses, U.S. Attorney Tom Beall said.
Christina A. Messerschmidt, 26, Wichita, Kan., appeared in federal court in Wichita to enter her plea. She admitted to the following robberies:
- June 14, 2017: Kwik Shop at 2809 E. Douglas in Wichita. She threatened store employees with a knife and took money from the register.
- June 13, 2017: Patricia’s, 6143 W. Kellogg in Wichita. She threatened to strangle an employee and took money from the register.
- Dec. 16, 2016: Intrust Bank at 1544 S. Webb. She gave a teller a note saying, “Give me $1,000 or I will shoot you.” She was arrested after a standoff with police at an apartment near the bank.
Sentencing is set for Nov. 13. Both parties have agreed to recommend a sentence of seven years in federal prison.
Beall commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
Washington, N.C. Man Sentenced for Possession of a Firearm and Ammunition by a FelonRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, John Stuart Bruce, announced that on September 18, 2017 in federal court, United States District Judge Louise W. Flanagan sentenced FREDDIE MONTRELL ANTHONY, 25, of Washington, N.C., to 70 months of imprisonment followed by 3 years of supervised release.
ANTHONY was named in an indictment filed on March 15, 2017. On May 17, 2017, he pled guilty to one count of Possession of a Firearm and Ammunition by a Felon.
On June 28, 2016, officers assigned to the Gun Violence Reduction Unit with the Greenville Police Department were on patrol when they witnessed a group of individuals loitering outside the Pitt Street Mini-Mart, including ANTHONY. As the officers pulled into the store parking lot, ANTHONY entered the store. The officers followed ANTHONY and asked him why he entered the store. ANTHONY repeated their questions and appeared nervous. Officers learned that ANTHONY had an outstanding warrant for failure to appear. During a subsequent pat down, ANTHONY advised that he had bullets in his pocket. The officer located seven .380 caliber rounds in the defendant’s left front pocket. ANTHONY stated that he had the .380 caliber rounds for two days and that he owned a gun, but it was at home where it was going to stay. ANTHONY denied having a firearm in his possession. Another officer searched the area where ANTHONY was seen when they first entered the store, and found a .380 caliber firearm wrapped in a grey sweatshirt. The firearm was loaded with seven additional .380 caliber rounds.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The criminal investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Greenville Police Department. Assistant U.S. Attorney Peggah Wilson prosecuted the case for the government.
U.S. Delegation to Attend 86th INTERPOL General AssemblyRead the Press Release
INTERPOL Washington – the U.S. National Central Bureau – senior leadership and support staff will attend the INTERPOL 86th General Assembly in Beijing, China, September 26th – 29th, 2017. Deputy Attorney General Rod Rosenstein and INTERPOL Washington Director Wayne Salzgaber are leading the U.S. delegation.
The General Assembly is composed of delegates appointed by the governments of member countries. As INTERPOL's supreme governing body, it meets once a year and takes all the major decisions affecting general policy, the resources needed for international cooperation, working methods, finances, and programs of activities.
It also elects the Organization's Executive Committee. Generally speaking, the Assembly takes decisions by a simple majority in the form of resolutions. Each member country represented has one vote.
The INTERPOL General Assembly also hosts an exhibition hall, featuring innovative companies which provide technology and services to the international law enforcement community. It is an exceptional opportunity to network, share knowledge and showcase products to high level representatives from INTERPOL’s 190 member countries. It is a unique occasion to develop partnerships with more than 800 senior officials from diverse law enforcement agencies.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
U.S. Attorney's Office Announces $2.5 Million Settlement with Bank of America for Trading Ahead and Obstructing the CME's InvestigationRead the Press Release
CHARLOTTE, NC – Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina announced today a settlement reached with Bank of America (the Bank) to resolve the United States’ investigation of certain trading activity by the Bank’s New York “Swaps Desk” involving trading ahead of, or “pre-hedging,” block futures trades with its counterparties and then obstructing the CME Group Inc.’s (CME) investigation of the trading. As part of the settlement, the Bank, among other things, agreed to pay $2.5 million, to report certain suspected misconduct to the United States, and to improve and enhance the Bank’s compliance risk management program.
The Bank’s settlement with the United States was reached in 2015 and is announced today in conjunction with the announcement made by the Commodity Futures Trading Commission (CFTC) of its settlement with Merrill, Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch), following its investigation into Merrill Lynch’s supervision and recordkeeping failures for conduct related to the Bank’s trading activity (See CFTC Press Release http://www.cftc.gov/PressRoom/PressReleases/pr7615-17).
“The settlement underscores the expectation that everyone, from Wall Street to main street, act honestly and ethically in their financial transactions. The financial system depends on the integrity of everyone involved in it. The settlement reinforces our expectation that firms effectively monitor their employees and deal candidly with all regulators and law enforcement agencies,” said U.S. Attorney Rose.
According to the Statement of Facts admitted to by the Bank as part of the settlement, at least three former traders on its New York Swaps Desk eavesdropped on calls between certain large financial institution counterparties and Bank salespersons about block futures trades without announcing their presence and then used information obtained by eavesdropping to enter into transactions to hedge the Bank’s expected risk from those block futures trades. This practice was referred to as, among other things, “pre-hedging.” The traders pre-hedged by executing trades in the same contract as the block futures trades and in other correlated products.
The Bank also admitted in the Statement of Facts that during the period from at least January 1, 2009 through at least December 31, 2010, the CME began investigating numerous block futures trades entered into by the Swaps Desk. In response to the CME’s inquiries, an internal spreadsheet identifying several potential instances of pre-hedging was generated by the business unit, but it was not shared with the Bank’s Legal and Compliance professionals. Further, the traders did not disclose to the Bank that they had eavesdropped on calls and pre-hedged their expected risk before the block futures trades were executed. Rather, the traders promoted within the Bank the explanation that any appearance of pre-hedging resulted from inaccurate timestamps.
The Statement of Facts also acknowledged that during interviews with the CME, the traders provided misleading answers by, among other things, failing to disclose that they pre-hedged block trades and, instead, again suggesting that the appearance of pre-hedging resulted from inaccurate timestamps. Following these interviews, the Bank submitted a letter to the CME falsely stating that, among other things, the traders “did not have advance knowledge of a block trade such as to enable them to engage in any trading prior to the execution of the block.”
After learning of the government’s investigation, the Bank retracted its December 6, 2010 letter and informed the CME that the traders had traded ahead of block futures trades.
The investigation was led by the Federal Bureau of Investigation (FBI), Charlotte Division, and the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), Northeast Region. In making today’s announcement, U.S. Attorney Rose thanked the CFTC and the National Futures Association for their assistance.
Assistant U.S. Attorneys Daniel Ryan and Taylor Phillips, of the U.S. Attorney’s Office in Charlotte, represented the United States in the matter.
Two More Albuquerque Residents Plead Guilty to Federal Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 103 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 77 of the 103 defendants charged as the result of this investigation have entered guilty pleas and 39 of them have been sentenced.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Two more Albuquerque residents pled guilty today in federal court to methamphetamine trafficking offenses. Daniel Loya, 31, pled guilty to distributing methamphetamine, and Jennifer Padilla, 39, pled guilty to participating in a methamphetamine trafficking conspiracy. Padilla entered her plea under a plea agreement that recommends a 24-month term of imprisonment.
Loya and co-defendants Guajira Maya Lovato, 44, and Richard Cortez, 37, were charged with conspiring to distribute methamphetamine from July 21, 2016 through Aug. 9, 2016, and with distributing methamphetamine on July 21, 2016. During today’s proceedings, Loya pled guilty to the distribution charge and admitted distributing 45 grams of methamphetamine to an undercover law enforcement agent on July 21, 2016. At sentencing, Loya faces a maximum penalty of 20 years in federal prison; he remains detained pending a sentencing hearing, which has yet to be scheduled. Loya’s co-defendants have entered guilty pleas to methamphetamine trafficking charges and are awaiting sentencing hearings.
Padilla’s co-defendant, Felix Ulibarri, 39, was indicted on July 28, 2016, and was charged with distributing methamphetamine on July 11, 2016. The indictment was superseded on Aug. 9, 2016, to add Padilla, Leo Lopez, 28, and Joseph Sena, 40, as defendants. The superseding indictment included two conspiracy charges; one charging Ulibarri and Padilla with conspiring to distribute methamphetamine in July 2016, and the other charging Padilla, Lopez and Sena with conspiring to distribute methamphetamine in July 2016. It also charged Ulibarri with distributing methamphetamine on July 11, 2016, and Sena with distributing methamphetamine on July 26, 2016. Today, Padilla pled guilty to a felony information charging her with conspiracy, and admitted facilitating a drug deal by introducing a buyer to Ulibarri, who supplied the methamphetamine. Padilla remains in federal custody pending a yet to be scheduled sentencing hearing. Her three co-defendants previously entered guilty pleas.
Twenty-three of the defendants who were charged as the result of the ATF investigation have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. One defendant is a fugitive and the charges against two defendants have been dismissed.
These cases were investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Presiliano Torrez is prosecuting Loya, and Assistant U.S. Attorney Edward Han is prosecuting Padilla.
Two Men Plead Guilty to Their Roles in Steroid Distribution RingRead the Press Release
BOSTON – A Shrewsbury man and a Worcester man pleaded guilty yesterday in federal court in Worcester for their roles in a steroid-distribution ring in Worcester County.
Ryan Baillargeon, 34, of Worcester, pleaded guilty to one count of conspiracy to possess with intent to distribute steroids. Alan Rich, 32, of Shrewsbury, pleaded guilty to one count of possession of a tableting machine to manufacture a controlled substance. U.S. District Court Judge Timothy S. Hillman scheduled the sentencings for Dec. 15, 2017.
Baillargeon and Rich were part of a steroid distribution conspiracy that distributed steroids in and around Worcester and Shrewsbury. In 2014, a cooperating witness told law enforcement that he went to alleged co-conspirator Daniel Frederickson’s home over many months to purchase steroids from Frederickson. On one occasion, while in Frederickson’s home, the cooperating witness observed Baillargeon, Frederickson’s roommate, packaging steroids. Thereafter, the cooperating witness made two controlled purchases of steroids from Frederickson.
On March 12, 2014, law enforcement executed a search warrant at the home of Frederickson and Baillargeon, where they uncovered a functioning anabolic steroid conversion laboratory and seized approximately 20,000 doses of steroids in liquid and pill form, as well as approximately 100 grams of raw steroids in powder form, and approximately 10,000 doses of liquid steroids still in production. The following day, law enforcement intercepted a package from China addressed to Baillargeon that contained Nandrolone Decanoate, a controlled substance. The investigation further revealed that Rich allowed Frederickson to store a tableting machine, used to create steroid pills, at Rich’s home in exchange for monetary compensation and a small amount of steroids.
The charge of conspiracy provides for a sentence of no greater than 10 years in prison, a mandatory minimum of two years and up to a lifetime of supervised release, and a fine of up to $500,000. The charge of possession of a tableting machine provides for a sentence of no greater than four years in prison, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; North Reading Police Chief Michael Murphy; and North Andover Police Chief Charles Gray made the announcement today. Assistant U.S. Attorney Katherine Ferguson of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Men Arrested for Gun Store Burglary in Springfield, ColoradoRead the Press Release
DENVER – Two men, Calvin Terrell Stafford, age 23, and Napoleon Williams, age 23, were ordered held without bond today by U.S. Magistrate Judge Kathleen M. Tafoya for firearm related crimes, the United States Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Springfield Police Department (located in Baca County) and the Baca County Sheriff’s Office announced. Both defendants were indicted by a federal grand jury in Denver on September 13, 2017. They were then arrested, and made their initial appearances on September 19, 2017, where they were advised of their rights and the charges pending against them. Today, September 22, 2017, both defendants appeared in magistrate court again where they were ordered held without bond pending a resolution of their cases.
According to the Indictment, from August 10, 2017 through August 12, 2017, the defendants Calvin Terrell Stafford and Napoleon Williams conspired to commit theft of firearms from a Federal Firearms Licensee. On August 10, 2017, the defendants traveled from Missouri to Springfield, Colorado, with the intent to buy marijuana that they could then sell for a profit in Missouri. When the marijuana deal fell through, they decided to steal firearms from a local gun shop. They stole 19 guns, including 5 rifles, from Best Way Sales in Springfield. After the burglary, the defendants drove the stolen firearms out of Colorado to St. Louis, Missouri, where they sold most of the stolen guns.
Both defendants face one count of Conspiracy to Steal Firearms from a Federal Firearms Licensee. If convicted of that count, they each face not more than 5 years in federal prison, and up to a $250,000 fine. The defendants face a second count, Theft of Firearms from a Federal Firearms Licensee. If convicted of that count, they each face not more than 10 years in federal prison, and up to a $250,000 fine. Finally, defendants Stafford and Williams face a third count, Possession of Stolen Firearms. If convicted of that final count, both defendants face not more than 10 years in federal prison, and up to a $250,000 fine.
This case was investigated jointly by the Springfield Police Department, Baca County Sheriff’s Office and the ATF. ATF offices involved in the investigation include the Colorado Springs Field Office and the Kansas City and St. Louis Field Offices in Missouri. The defendants are being prosecuted by Assistant U.S. Attorney Colleen Covell.
The charges contained in the Indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Two Bandidos Plead Guilty to Federal Charges in Connection with the Murder of Hells Angel Anthony Benesh in 2006Read the Press Release
In San Antonio today, two high-ranking leaders of the Bandidos Outlaw Motorcycle Organization (OMO) pleaded guilty to federal charges in connection with the murder of Hells Angel Anthony Benesh in 2006 announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, Houston Division; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Austin Police Chief Brian Manley; and, San Antonio Police Chief William McManus.
Appearing before United States District Judge Henry J. Bemporad, 47–year-old Bandidos National Sergeant at Arms Johnny Romo (aka “Downtown Johnny”) of San Antonio and 45-year-old Bandidos San Antonio Centro Chapter member Robert Romo of San Antonio pleaded guilty to one count of Murder in Aid of Racketeering and one count of Aiding and Abetting Using and Discharging a Firearm During and In Relation to a Crime of Violence, specifically Murder.
Court records allege that Benesh was attempting to start a Texas Chapter of the Hell’s Angels OMO in Austin, Texas in 2006. Members of the Bandidos OMO warned Benesh to cease his activities and recruitment, which Benesh ignored. Johnny Romo, Robert Romo and others then murdered Benesh on March 18, 2006, outside an Austin restaurant to protect the power, reputation and territory of the Bandidos enterprise.
Because of their guilty pleas, the defendants face life in federal prison. Johnny Romo and Robert Romo remain in federal custody. Sentencings are scheduled for May 14, 2018, and May 21, 2018, respectively, before Senior U.S. District Judge David A. Ezra in San Antonio.
The FBI, DEA and Texas DPS together with the Internal Revenue Service-Criminal Investigation, U.S. Customs and Border Protection, Austin Police Department, New Braunfels Police Department, Seguin Police Department, San Antonio Police Department, Bexar County Sheriff’s Department, Atascosa County Sheriff’s Department, and the Bexar County District Attorney’s Office are conducting this ongoing investigation.
Three Baltimore Area Residents Sentenced in Arson and Wire Fraud Scheme, Obstruction, and Witness TamperingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge George L. Russell, III sentenced Greg Ramsey, age 55, of Baltimore, Maryland, to 355 months in prison, followed by five years of supervised release, for use of fire to commit wire fraud, malicious destruction of property by fire, and attempted witness tampering. Ramsey also was ordered to pay restitution in the amount of $1,081,606.90. Judge Russell also sentenced Tyesha Roberts, age 29, of Baltimore, to five years of probation, for attempted obstruction of an official proceeding. Roberts also was ordered to pay restitution of $1,000. Judge Russell previously sentenced Ramsey’s co-conspirator Julia Teryaeva-Reed, age 33, a citizen of Ukraine, to 162 months for wire fraud, use of fire to commit a federal felony, and malicious destruction of real property by fire.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Daniel L. Board Jr., Baltimore City Police Commissioner Kevin Davis, Baltimore City Fire Chief Niles R. Ford, PhD, Maryland State Police Superintendent Colonel William M. Pallozzi, Maryland State Fire Marshal Brian Geraci, United States Secret Service Special Agent in Charge Christopher Caruso, and Department of Homeland Security Special Agent in Charge Andre Watson.
According to Ramsey’s plea agreement, Ramsey and Teryaeva-Reed set fire to three separate residences between October 2012 and August 2013, two in Baltimore, and one in Weatherly, Pennsylvania. One fire spread to adjoining residences and did substantial damage. Two of the residences were occupied at the time. In addition, the pair set two vehicles on fire in August of 2013 in the area of Walbrook Ave. and N. Dukeland Street, which spread to a nearby church. The fires were set in an effort to obtain money from insurance companies for the claims related to the fire damage.
Teryaeva-Reed was initially charged by the Baltimore City State’s Attorney’s Office and arrested at JFK airport as she was about to board a flight to Ukraine in 2013. In 2015, Ramsey planned to have a relative, co-defendant Tyesha Roberts, testify falsely for Teyaeva-Reed at trial for $2,000. Ramsey also plotted to assist in the murder of another witness. In November 2015, Ramsey produced a loaded .357 Ruger revolver, which was to be used for the murder, and he was arrested.
Acting United States Attorney Stephen M. Schenning commended the ATF for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Matthew J. Maddox, Judson T. Mihok, and Zachary Myers, who prosecuted the case.
Texas man sentenced to five years in prison for methamphetamine chargesRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Houston man was sentenced to 60 months in prison for selling and possessing methamphetamine in the Lake Charles area.
Raymond Earl Neal, 26, of Houston, was sentenced by U.S. District Judge Donald E. Walter on one count of distribution of controlled substances and one count of possession with intent to distribute controlled substances. He was also sentenced to three years of supervised release. According to the March 24, 2016 guilty plea, Neal sold approximately 2 ounces of methamphetamine to an undercover informant for $1,900. Later that same day, he was stopped by police officers for a traffic violation. They found an additional 8.5 ounces of methamphetamine and a Smith & Wesson .9 mm semi-automatic handgun in Neal’s vehicle.
Homeland Security Investigations, Calcasieu Combined Anti-Drug Task Force and Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
Texas Man Pleads Guilty to Drug TraffickingRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JUAN CHAVEZ, age 50, of Texas, pled guilty today to violations of the Federal Drug Control Act, a violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B).
According to the court documents, CHAVEZ was arrested with co-conspirators on October 15, 2016 with nearly five kilograms of cocaine in Covington, Louisiana. CHAVEZ was the driver of the load vehicle, a white pick-up truck containing the nearly five kilograms of cocaine.
CHAVEZ faces a minimum term of imprisonment of five years, a maximum term of imprisonment of forty years, a maximum fine of $5,000,000, a minimum term of supervised release of four years, and a mandatory $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for December 28, 2017.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration in investigating this matter. Assistant U.S. Attorney James S. C. Baehr is in charge of the prosecution.
Takoma Park Man Pleads Guilty to BriberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland –Matthew Gorman, age 43, of Takoma Park, Maryland, pleaded guilty to an Information charging him with bribery involving an agent of a program receiving federal funds.
The guilty plea 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 Kimberly Lappin 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.
According to court documents, Gorman was an attorney and lobbyist, who represented clients in front of the Prince George’s County Board of License Commissioners (“Liquor Board”). In 2013, Gorman paid then-Prince George’s County Council Member William Alberto Campos-Escobar, a/k/a “Will Campos,” a $2,000 bribe payment in exchange for Campos writing a letter to the Liquor Board recommending that Business A receive a liquor license. In 2015, Gorman paid Campos a bribe in exchange for Campos placing a phone call to the Liquor Board on behalf of Business A.
By early 2015, Campos no longer was on the County Council and instead had been sworn in as a member of the Maryland House of Delegates. According to court documents, Gorman, in conjunction with David Dae Sok Son, Shin Ja Lee, and Young Jung Paig, all of Maryland, paid a $4,000 bribe to Campos in exchange for Campos’s assistance in passing legislation that authorized the Liquor Board to issue certain liquor licenses permitting establishments to sell liquor on Sundays. Lee and Paig owned liquor stores that stood to benefit from the Sunday liquor sales licenses.
Also in 2015, Gorman paid a $5,000 bribe to Campos in exchange for certain actions by Campos, including Campos testifying on behalf of Business B before the Montgomery County Board of License Commissioners.
Gorman faces a maximum sentence of up to ten years in prison.
As part of the related investigation, other individuals, including those below, have pleaded guilty to related federal criminal offenses:
- On January 6, 2017, Will Campos pleaded guilty to conspiracy and bribery.
- On April 20, 2017, Young Paig pleaded guilty to bribery.
- On May 17, 2017, Shin Lee pleaded guilty to bribery.
Additionally, on January 4, 2017, David Son was charged by criminal complaint with conspiracy and bribery.
Gorman’s sentencing currently is scheduled for 10:00 a.m. on December 20, 2017, before Judge Paula Xinis in Greenbelt, Maryland.
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, Arun G. Rao, and James A. Crowell IV, who are prosecuting the case.
Sulphur company bookkeeper sentenced to more than 7 years in prison for stealing more than $4 millionRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a former bookkeeper for a Sulphur oil field company was sentenced to 87 months in prison for stealing more than $4 million while working there.
Elizabeth “Missy” Istre, 52, of Sulphur, La., was sentenced by U.S. District Judge Donald E. Walter on three counts of wire fraud. She was also sentenced to three years of supervised release and ordered to pay $4,348,490.18 restitution. Istre was found guilty by a federal jury after a four-day trial that ended May 4, 2017. According to the evidence presented, Istre worked as a bookkeeper for a family-owned petroleum company in Sulphur, La. From 2004 through January of 2014, Istre issued fraudulent checks payable to herself and her husband from the company’s corporate bank account. During that time, she issued more than 800 checks and used the money for personal expenses.
Istre began writing fraudulent checks payable to herself not long after being hired in 2004. She started writing the checks in small amounts but then increased the amount. By 2011, she was writing fraudulent checks for half a million dollars a year. She was the only person to use the business’ software, and she provided the financial statements directly to the company’s accountant. Because of fluctuations in the oil and gas industry, Istre was able to conceal the stolen funds. She bought several vehicles, took numerous trips, paid bills, bought property, paid family members’ expenses, withdrew cash and made other transactions with the stolen funds.
The U.S. Secret Service investigated the case. Assistant U.S. Attorneys Kelly P. Uebinger and Dominic A. Rossetti prosecuted the case.
Stamford Dental Office Manager Sentenced to Prison for Defrauding Insurance CompaniesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ELENA ILIZAROV, 45, of Stamford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 12 months and one day of imprisonment, followed by three years of supervised release, for using an identity theft victim’s personal identifying information to submit fraudulent bills to private insurance companies offering dental insurance.
According to court documents and statements made in court, ILIZAROV served as the office manager for Advanced Dentistry, a dental practice located in Stamford. Between 2005 and 2016, ILIZAROV billed 37 private dental insurance companies for services allegedly performed by an identity theft victim for patients of Advanced Dentistry, when the victim did not in fact perform those services. The identity theft victim was a dentist who had been affiliated with Advanced Dentistry for a short period of time and retired fully from dentistry in 2011. In total, ILIZAROV earned more than $1.2 million by billing in the name of the retired dentist.
Between 2011 and 2015, approximately $581,729 was paid by private insurance companies to Advanced Dentistry for services allegedly provided by the retired dentist. As a result, the insurance companies issued 1099 forms to the Internal Revenue Service pertaining to the retired dentist. In 2015 and 2016, ILIZAROV renewed the retired dentist’s Connecticut dental license and controlled substance registrations, paying for the renewals with her personal credit card. She also applied for, and received, liability insurance in the name of the retired dentist for several years.
ILIZAROV was arrested on a federal criminal complaint on June 21, 2016. On March 13, 2017, she pleaded guilty to one count of wire fraud.
Judge Bolden will issue a restitution order within 30 days.
This matter was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Department of Health and Human Services – Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David J. Sheldon.
U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or 1-800-HHS-TIPS.
SolarCity Agrees to Resolve Alleged False Claims Act Violations Arising from Renewable Energy Grant Claims to TreasuryRead the Press Release
The Justice Department announced today that SolarCity Corporation (SolarCity) has agreed to pay $29.5 million to resolve allegations that it violated the False Claims Act by submitting inflated claims on behalf of itself and affiliated investment funds to the U.S. Department of the Treasury (Treasury) pursuant to Section 1603 of the American Recovery and Reinvestment Act of 2009 (Section 1603). As part of the settlement, SolarCity and its affiliates will also release all pending and future claims against the United States for additional Section 1603 payments. SolarCity was purchased by Tesla Motors Inc. in November of 2016, after the alleged conduct at issue in this case.
“The Section 1603 Program subsidized the renewable energy industry through cash grants to cover legitimate costs of renewable energy properties,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This program expired, but this settlement demonstrates that the government will still hold accountable those who sought to take improper advantage of government programs at the expense of American taxpayers.”
Under the Section 1603 Program, the Treasury paid a cash grant equal to 30 percent of the eligible cost basis to construct or acquire qualified renewable solar energy systems placed in service before Dec. 31, 2016. The Treasury required applicants to certify that each Section 1603 grant application accurately set forth the cost basis of the system, and that all supporting information was true, accurate, and complete.
Beginning in 2009, SolarCity submitted thousands of Section 1603 claims on behalf of itself and affiliated investment funds. The government alleged that SolarCity falsely overstated the cost bases of its solar energy properties in its certified Section 1603 claims to the Treasury and, as a result, SolarCity and its affiliated investment funds received inflated grant payments from the Treasury.
“Treasury’s Office of Inspector General appreciates the hard work of the Department of the Treasury and the Department of Justice in supporting Treasury OIG’s mission to protect the programs and operations of Treasury from fraud, waste and abuse,” said Inspector General Eric Thorson for the Office of Inspector General (OIG) for the Department of the Treasury. “Treasury OIG will continue its work to investigate instances of fraud impacting the American Reinvestment and Recovery Act grant programs, that are operated by the Treasury, and paid for by the American taxpayer to ensure that the money distributed by Treasury follows the law and is used for its intended purpose.”
“Treasury appreciates the substantial efforts of the Department of Justice and Treasury’s Office of Inspector General in pursuing this years-long investigation that was initiated following a referral from the Section 1603 Program staff,” said Treasury Fiscal Assistant Secretary David A. Lebryk. “This settlement sends a clear message that, working with the Department of Justice and the Office of Inspector General, Treasury will pursue any fraud or abuse in programs that it administers in order to protect the taxpayer.”
As part of the settlement, SolarCity has agreed to dismiss a lawsuit filed in the Court of Federal Claims by two investment funds affiliated with SolarCity arising from allegations that Treasury underpaid certain Section 1603 applications, and to release any other potential claims for additional Section 1603 payments. The lawsuit is captioned Sequoia Pacific Solar I, LLC v. United States, No. 13-139C (Fed. Cl.).
This settlement was the result of a joint investigation conducted by the Treasury, the Treasury OIG, and the Civil Division’s Commercial Litigation Branch. The claims resolved by the settlement agreement are allegations only and there has been no determination of liability.
Social Security Employee Charged with Making a False Statement to Qualify for Low-Income Housing SubsidiesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that PERNEITA PRICE, age 31, of New Orleans, was charged yesterday by Bill of Information with making a false statement to the government.
According to documents filed in federal court, PRICE falsified federal affordable housing applications to qualify for low-income housing subsidies.
PRICE faces a maximum of five years imprisonment, followed by up to three years of supervised release, a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person, and a $100 special assessment.
Acting U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the U.S. Department of Housing and Urban Development, Office of Inspector General and the U.S. Social Security Administration, Office of the Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Russell M. Coleman Sworn in as United States AttorneyRead the Press Release
Western Kentucky native with deep law enforcement background assumes leadership of United States Attorney’s Office
LOUISVILLE, Ky. – Russell M. Coleman has today taken the oath of office to become the United States Attorney for the Western District of Kentucky. Mr. Coleman was nominated by President Donald Trump on July 19, 2017, and confirmed by the United States Senate on September 14, 2017. The oath of office was administered today by United States District Judge David J. Hale.
“I am deeply honored to be appointed by the President to serve alongside the talented professionals of the Western District U.S. Attorney's Office,” stated United States Attorney Russell Coleman. “At a time when our Commonwealth is losing its sons and daughters to drug overdoses at the highest rate in its history and our largest city is enduring an unprecedented increase in its murder rate, I am committed to using every statutory tool in our toolkit to aggressively aid our law enforcement partners in this fight.”
As United States Attorney, Mr. Coleman is the top-ranking federal law enforcement official in the Western District of Kentucky. The Western District of Kentucky encompasses 53 counties with a population of more than 2.2 million, two military installations, and four federal judicial divisions with courthouses in Louisville, Bowling Green, Paducah, and Owensboro.
United States Attorney Russell Coleman will oversee a staff of 82 persons, including 36 attorneys, 39 non-attorney support personnel, and 7 federal contractors. The Office is responsible for prosecuting federal crimes in the District, including crimes related to firearms, narcotics, public corruption, child exploitation, wire and bank fraud, and terrorism. The Office also defends the United States in civil cases and collects debts owed to the United States.
Russell M. Coleman grew up in rural Western Kentucky, having been raised in Daviess and Logan Counties, graduating from Logan County High School. U.S. Attorney Coleman received both his undergraduate and law degrees from the University of Kentucky. He received his Juris Doctor from the UK College of Law in 2004 and was awarded his Bachelor of Arts degree magna cum laude, in 1998.
Mr. Coleman has more than a decade of experience working in federal positions where he was engaged in federal law enforcement matters. He served as Senior Advisor and Legal Counsel to United States Senate Majority Leader Mitch McConnell, working during that period as a liaison with Kentucky law enforcement on such efforts as expanding the federal High Intensity Drug Trafficking Area (HIDTA) Program to include Hardin and Nelson Counties. Prior to his five years in Senator McConnell’s office, USA Coleman served as a Special Agent with the Federal Bureau of Investigation (FBI) and worked as Briefing Coordinator to two U.S. Attorneys General at the U.S. Department of Justice.
While an FBI Special Agent, USA Coleman investigated a diverse portfolio of national security, white collar, and violent crime matters. He served as FBI Indianapolis Division’s Back-Up Chief Division Counsel, was a certified FBI Crisis (Hostage) Negotiator, and served as an on-record Media Spokesperson for the FBI’s Indianapolis Division. He was elected as the only Special Agent representative to the FBI Director’s Employees with Disabilities Advisory Committee. Russell was temporarily assigned to the National Joint Terrorism Task Force and volunteered for a 2007 assignment in support of Operation Iraqi Freedom in Anbar Province, Republic of Iraq.
Most recently USA Coleman was in private practice as a partner at the law firm of Frost Brown Todd, LLC. From 2015 through 2017, he served as a volunteer Assistant Commonwealth’s Attorney for the Hon. Courtney T. Baxter, Commonwealth’s Attorney for the 12th Judicial Circuit (Oldham County). He has been a member of the Kentucky Bar Association since 2004 and currently sits on the Executive Board of the Kentucky Chapter of the Federal Bar Association. Other affiliations include Society of Former Special Agents of the FBI, FBI Agents Association, and the KY Narcotic Officers Association.
Richard W. Moore Sworn in as U.S. Attorney for the Southern District of AlabamaRead the Press Release
MOBILE, ALABAMA—Richard W. Moore was sworn in today by Chief U.S. District Court Judge Kristi K. Dubose as the new U.S. Attorney for the Southern District of Alabama.
“I want to thank President Donald J. Trump for nominating me as U.S. Attorney and Attorney General Jeff Sessions and Senator Richard Shelby for their support during the nomination process. I am eager to now lead an office where I served as an Assistant U.S. Attorney for more than 17 years and one which I know to have a cadre of professionals who are dedicated to the highest ideals of public service. Together we will give our best efforts to fostering public trust and confidence in the rule of law as we appear in court to pursue justice and to protect the interests of the United States of America. I look forward to working closely with our colleagues in federal, state, and local law enforcement over the coming years. Also, it is a distinct honor to be able to serve as U.S. Attorney with my colleagues Jay Town and Louis Franklin who bring years of prosecutorial experience that will serve the interests of all of our citizens. ”
Moore is part of the “first wave” of President Trump’s nominees for the position of U.S. Attorney to be confirmed by the U.S. Senate. The U. S. Attorney serves as the chief Federal law enforcement officer within his or her Federal judicial district. These candidates share the President’s vision for “Making America Safe Again.”
Before becoming U.S. Attorney, Moore served as the Inspector General for the Tennessee Valley Authority (TVA) since May 2003 when he was appointed by President George W. Bush and confirmed by the U.S. Senate. The TVA Office of Inspector General has been regularly recognized as one of the “Best Places to Work” in the federal government based upon the results of the Office of Personnel Management’s annual Viewpoint survey of federal employees. From May 2009 to March 2011, Mr. Moore was the Chairman of the Investigations Committee for the Council of Inspectors General on Integrity and Efficiency (CIGIE). Prior to his appointment as Inspector General, Mr. Moore served as an Assistant U.S. Attorney for the Southern District of Alabama from 1985 to 2003. During that time, Mr. Moore prosecuted criminal cases involving white collar crimes, official corruption, and general Federal crimes. During his time at the U.S. Attorney’s Office, Mr. Moore also served as chief of the criminal division, as senior litigation counsel, and as coordinator of the Anti-Terrorism Task Force. Earlier in his career, Mr. Moore was in private practice in Mobile, Alabama, and Cleveland, Ohio. From 1997 to 1998, Mr. Moore was an Atlantic Fellow in Public Policy at Oxford University in England. Mr. Moore received his B.S., summa cum laude, from Spring Hill College in 1974, and his J.D. from the Samford University Cumberland School of Law in 1977. In 2015, Mr. Moore was named Cumberland School of Law’s Distinguished Alumnus of the Year.