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Thursday 3 August 2017
Navicent Settles Ambulance Fraud Claims for over $2.5MMRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, and Georgia Attorney General Christopher M. Carr announced today a civil settlement with The Medical Center of Central Georgia, Inc., d/b/a The Medical Center, Navicent Health (“Navicent”). Navicent agreed to pay to the United States and the State of Georgia $2,549,742 to resolve allegations that it violated the False Claims Act and the Georgia False Medicaid Claims Act by submitting bills for ambulance transports that were either inflated or medically unnecessary. Additionally, Navicent’s current Corporate Integrity Agreement (CIA) will be heightened and extended to cover the newly resolved conduct. A CIA is an agreement between a private provider of services and the United States whereby the provider, at its own expense, institutes and maintains a program, overseen by the OIG with reviews by an independent review organization, to insure compliance with the laws and regulations regarding participation in federally funded programs.
The settlement marks the end of a 27-month investigation into Navicent’s ambulance billing practices. The investigation revealed two suspected schemes through which Navicent allegedly violated the False Claims Act and the Georgia False Medicaid Claims Act. The first alleged scheme resolved by the settlement concerns non-emergency ambulance transports between hospitals that Navicent billed at an inflated rate by claiming the ambulance trips were emergency trips. The second alleged scheme resolved by the settlement concerns the billing of non-emergency ambulance transports of patients released from the hospital to their residences, skilled nursing facilities, hospital-based diagnostic clinics, or dialysis centers that Navicent billed as emergency transports in violation of ambulance billing rules. It was alleged that in addition to billing many of these transports at an inflated rate, for many of these transports it was neither appropriate nor medically necessary for Navicent to have used and billed for an ambulance at all.
This investigation began with a lawsuit filed by Andre Valentine, a former Navicent paramedic, under the whistleblower provisions of the False Claims Act and the Georgia False Medicaid Claims Act. These statutes allow private citizens to bring civil actions on behalf of the Government and share in any recovery obtained. The case is captioned United States and the State of Georgia, ex rel. Andre Valentine v. Navicent Hospital, Inc., 5:15-cv-152 in the United States District Court for the Middle District of Georgia. Mr. Valentine will receive a share of the settlement payment pursuant to the whistleblower provisions of these statutes.
While Mr. Valentine’s complaint focused on transports between hospitals, the U.S. Department of Health and Human Services Office of Inspector General (OIG) independently identified for investigation Navicent’s billing of emergency ambulance transportation for services provided to patients from the hospital to destinations such as skilled nursing facilities and patient residences. The OIG’s identification was based on data analytics conducted by the OIG’s Office of Management and Policy, Consolidated Data Analysis Center.As a result of this investigation, on May 8, 2017, the United States and the State of Georgia chose to intervene in Mr. Valentine’s complaint and litigate the case in United States District Court. Today’s settlement resolves the pending litigation. Navicent fully cooperated in the investigation, after which the parties agreed to resolve the allegations described herein. The claims covered by the settlement are allegations only, and there has been no determination of liability.
“Ambulance billing has long been an area of potential fraud on the Medicare and Medicaid programs and this office will continue to vigorously investigate and pursue those who attempt to take advantage of the program. We will continue to police ambulance providers throughout Middle Georgia until the message has been received,” said U.S Attorney G.F. “Pete” Peterman. “This case shows the value added when investigating health care fraud in a coordinated manner. By combining two parallel investigations, the Government was able to achieve a valuable recovery on behalf of the taxpayers in the most efficient manner possible.”
“Since Navicent owned and operated both the hospital and ambulances, profits from the systemic, deceptive practice of falsifying 'emergency’ trips would fatten the hospital’s bottom line,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “With the power of sophisticated data analytics to augment traditional investigative work, bringing health organizations to justice is surer than ever.”
“Enforcement of the Georgia False Medicaid Claims Act is a top priority for our office,” said Georgia Attorney General Chris Carr. “We appreciate the opportunity to work with our federal law enforcement partners to protect Georgia taxpayers and pursue those who attempt to inflate the costs of the Medicaid services they are trusted to facilitate.”
The case was investigated by the Department of Health & Human Services, Office of Inspector General, Investigators Enedelia Bostrup and Shaketia Morgan of the United States Attorney’s Office for the Middle District of Georgia, and Investigator Trenton Williams and Chief Investigative Auditor Anita Reddick of the Georgia Medicaid Fraud Control Unit, a division of the Georgia Attorney General's Office. The United States’ civil settlement was reached by Assistant United States Attorneys Todd P. Swanson and Aimee J. Hall. The State of Georgia’s civil settlement was reached by Assistant Attorney General Elizabeth White.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603, and Katelyn McCreary, Director of Communications for the Office of the Attorney General of Georgia, at (404) 463-5462.
Naples Couple Indicted for Smuggling FirearmsRead the Press Release
Fort Myers, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Miguel Jiminez Borda (38) and Alejandra Maria Mayo (34), both of Naples, with two counts of attempting to smuggle firearms from the United States to Bolivia. If convicted, each faces a maximum penalty of 10 years in federal prison per count. The indictment also notifies the couple that the United States intends to forfeit the firearms that they attempted to smuggle.
According to court documents, on June 27 and 28, 2017, Jiminez Borda and Mayo paid nearly $6,000 in cash to ship five boxes from the United States to Bolivia. The couple provided Federal Express with a fictitious sender name and labeled the box contents as “documents.” Federal agents searched the boxes and found more than 15 firearms hidden within hardened foam insulation, many of them AK-47 and AR-15 type weapons. The couple has allegedly shipped an estimated 50 such boxes to Bolivia since August 2016.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It will be prosecuted by Assistant United States Attorney Michael V. Leeman.
Monroe County Man Charged with Sex Trafficking of A MinorRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David R. Parker, age 39, of Saylorsburg, Pennsylvania, was charged in a criminal information with sex trafficking involving a minor.
According to United States Attorney Bruce D. Brandler, the criminal information alleges that from June 1, 2010 to August 31, 2010, Parker engaged in sex trafficking involving a minor.
The investigation was conducted by the Federal Bureau of Investigation and the Pennsylvania Office of Attorney General. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
The Criminal Information was filed pursuant to a plea agreement, which is subject to approval by the court, wherein it is indicated that Parker be sentenced to a term of imprisonment of not less than 360 months, sexual offender registration, and a lifetime of supervision by a probation officer following his release.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mexican Meth Smugglers Sent to PrisonRead the Press Release
LAREDO, Texas – Two Mexican nationals convicted of attempting to import crystal methamphetamine from Mexico have been ordered to federal prison, announced Acting U.S. Attorney Abe Martinez. Juan Jose Acevedo-Azua, 38, and Veronica Rios-Rojas, 37, pleaded guilty Aug. 8 and 10, 2016, respectively.
Today, U.S. District Judge George P. Kazen ordered Acevedo-Azua and Rios-Rojas to serve 120 and 98 months, respectively. Not U.S. citizens, both are expected to face deportation proceedings following their release from prison. In handing down the sentence, Judge Kazen noted that Acevedo-Azua’s higher sentence was due in part because he admitted this was his second or third trip for the same smuggler.
On April 12, 2016, Acevedo-Azua and Rios-Rojas entered the U.S. from Nuevo Laredo, Mexico, and approached the Lincoln-Juarez International Bridge and Gateway to the Americas International Bridge, respectively. Acevedo-Azua had almost 54 kilograms of the crystal methamphetamine concealed within the Ford F-150 he operated, while Rios-Rojas had approximately 34 kilograms within her Nissan Altima. The investigation revealed that each worked for the same individual in Mexico.
Both have been in custody since their arrests where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Homero Ramirez prosecuted the case.
Man Pleads Guilty to Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MAURICIO RODRIGUEZ-BORJAS, age 38, a citizen of Honduras, pled guilty yesterday to a one-count Indictment for illegal re-entry of removed alien.
According to the court documents, on June 1, 2017, RODRIGUEZ-BORJAS, was found in the United States after having been deported previously on October 28, 2013.
RODRIGUEZ-BORJAS faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for October 4, 2017.
Acting U.S. Attorney Evans praised the work of the Immigration and Customs Enforcement in investigating this matter.
Man Pleads Guilty to Destruction of Government PropertyRead the Press Release
Acting U.S. Attorney Duane A. Evans, announced that BOBBY JOSEPH HAMMOND, age 38, pled guilty yesterday to a one-count Bill of Information for destruction of government property.
According to the court documents, on March 4, 2017, HAMMOND drove up to the south side of the Social Security Administration (SSA) Field Office located at 1616 Joe Yenni Boulevard in Kenner, exited his vehicle, and threw a rock through a second floor window. Damages totaled $1,330.69.
HAMMOND faces a maximum term of imprisonment of ten years and a fine of $250,000, or the greater of twice the gross gain to the defendant, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Ivan L.R. Lemelle set sentencing for November 1, 2017.
Acting U.S. Attorney Evans praised the work of the Federal Protective Services in investigating this matter.
Man Charged for His Role in Creating the Kronos Banking TrojanRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 11, 2017, following a two-year long investigation, a federal grand jury returned a six-count indictment against Marcus Hutchins, also known as “Malwaretech,” for his role in creating and distributing the Kronos banking Trojan. Hutchins, a citizen and resident of the United Kingdom, was arrested in the United States on August 2, 2017, in Las Vegas, Nevada.
In the indictment, Hutchins was charged with one count of conspiracy to commit computer fraud and abuse, three counts of distributing and advertising an electronic communication interception device, one count of endeavoring to intercept electronic communications, and one count of attempting to access a computer without authorization. The alleged conduct for which Hutchins was arrested occurred between in or around July 2014 and July 2015.
Publically available information for the Kronos banking Trojan indicates that it was first made available through certain internet forums in early 2014, and marketed and distributed through AlphaBay, a hidden service on the Tor network. On July 20, 2017, the Department of Justice announced that the Alphabay marketplace was shuttered through an international law enforcement effort led by the United States. See www.justice.gov/opa/pr/alphabay-largest-online-dark-market-shut-down
According to the indictment, the Kronos banking Trojan was designed to harvest and transfer the username and password associated with banking websites as they are entered on an infected computer to a control panel hosted on another computer inaccessible to the victim. According to publically available information, since it was created, Kronos has been configured to exfiltrate user credentials associated with banking systems located in Canada, Germany, Poland, France, and the United Kingdom, among others countries.
Kronos presents an ongoing threat to privacy and security, as the Kelihos botnet was observed loading Kronos on computers through email phishing campaign in late 2016. On April 10, 2017, the Department of Justice announced its efforts to dismantle the Kelihos botnet.
See www.justice.gov/opa/pr/russian-national-indicted-multiple-offenses-connection-kelihos-botnet and www.justice.gov/opa/press-release/file/956506/download
“Cybercrime remains a top priority for the FBI,” said Special Agent in Charge (SAC) Justin Tolomeo. “Cybercriminals cost our economy billions in loses each year. The FBI will continue to work with our partners, both domestic and international, to bring offenders to justice.”
This case was investigated by the Federal Bureau of Investigation Cyber Crime Task in Milwaukee. The case is being prosecuted by Assistant United States Attorneys Michael J. Chmelar and Benjamin W. Proctor.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Man Charged for His Role in Creating the KRONOS Banking TrojanRead the Press Release
WASHINGTON – Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 11, 2017, following a two-year long investigation, a federal grand jury returned a six-count indictment against Marcus Hutchins, also known as “Malwaretech,” for his role in creating and distributing the Kronos banking Trojan. Hutchins, a citizen and resident of the United Kingdom, was arrested in the United States on August 2, 2017, in Las Vegas, Nevada.
In the indictment, Hutchins was charged with one count of conspiracy to commit computer fraud and abuse, three counts of distributing and advertising an electronic communication interception device, one count of endeavoring to intercept electronic communications, and one count of attempting to access a computer without authorization. The alleged conduct for which Hutchins was arrested occurred between in or around July 2014 and July 2015.
Publically available information for the Kronos banking Trojan indicates that it was first made available through certain internet forums in early 2014, and marketed and distributed through AlphaBay, a hidden service on the Tor network. On July 20, 2017, the Department of Justice announced that the Alphabay marketplace was shuttered through an international law enforcement effort led by the United States. See www.justice.gov/opa/pr/alphabay-largest-online-dark-market-shut-down
According to the indictment, the Kronos banking Trojan was designed to harvest and transfer the username and password associated with banking websites as they are entered on an infected computer to a control panel hosted on another computer inaccessible to the victim. According to publically available information, since it was created, Kronos has been configured to exfiltrate user credentials associated with banking systems located in Canada, Germany, Poland, France, and the United Kingdom, among others countries.
Kronos presents an ongoing threat to privacy and security, as the Kelihos botnet was observed loading Kronos on computers through email phishing campaign in late 2016. On April 10, 2017, the Department of Justice announced its efforts to dismantle the Kelihos botnet.
See www.justice.gov/opa/pr/russian-national-indicted-multiple-offenses-connection-kelihos-botnet and www.justice.gov/opa/press-release/file/956506/download
“Cybercrime remains a top priority for the FBI,” said Special Agent in Charge (SAC) Justin Tolomeo. “Cybercriminals cost our economy billions in loses each year. The FBI will continue to work with our partners, both domestic and international, to bring offenders to justice.”
This case was investigated by the Federal Bureau of Investigation Cyber Crime Task in Milwaukee. The case is being prosecuted by Assistant United States Attorneys Michael J. Chmelar and Benjamin W. Proctor.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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For additional information contact:
Public Information Officer Dean Puschnig at 414 297-1700
Mail Carrier Pleads Guilty to Stealing Mail from Independence ResidentsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a mail carrier pleaded guilty in federal court today to stealing gift cards and checks from postal customers in Independence, Mo.
Audrey S. Odell, 34, of Blue Springs, Mo., waived her right to a grand jury and pleaded guilty before U.S. District judge Brian C. Wimes to a federal information that charges her with the theft of mail by a postal employee.
Odell was employed as a mail carrier on routes in Independence. By pleading guilty today, Odell admitted that she stole approximately 150 gift cards and 150 checks from the mail, with an estimated loss of $2,500 from approximately 75 postal customers.
In December 2015, the U.S. Postal Service received complaints regarding mail and possible mail theft occurring on Odell’s routes. In January 2017, postal inspectors placed in the mail test pieces with gift cards addressed to fictitious addresses. Odell was assigned to deliver those pieces of mail. The mail should have been returned to the post-station as not deliverable. On Feb. 8, 2017, postal inspectors prepared three additional test pieces for the route assigned to Odell on that day. Later that day, agents from the U.S. Postal Service-Office of the Inspector General approached Odell in the parking lot and searched her vehicle. The agents found several pieces of mail, including the test mailings.
Under federal statutes, Odell is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Postal Service, Office of Inspector General.
Louisiana Return Preparer Pleads Guilty to Filing Fraudulent ReturnsRead the Press Release
A Louisiana woman pleaded guilty to four counts of preparing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Duane A. Evans for the Eastern District of Louisiana.
According to documents filed with the court, Shawanda Nevers aka Shawanda Hawkins, Shawanda Bryant and Shawanda Johnson, 49, operated a series of businesses in the LaPlace area, including 3LJ’s Café Services & Sports Bar LLC and 3LJ’s Industrial Service Solutions LLC. Between 2011 and 2016, Nevers filed on behalf of her clients income tax returns that included fake business losses, deductions and tax credits and sought refunds to which her clients were not entitled. Despite a federal judge permanently enjoining her from preparing federal tax returns in 2014, Nevers continued to file fraudulent returns. As part of the plea agreement, Nevers admitted that she owes the Internal Revenue Service (IRS) $6,934,764 in restitution, as well as $128,900 to the Deepwater Horizon Oil Spill Trust and $964 to the Social Security Administration.
The sentencing hearing has been scheduled for Nov. 15 before U.S. District Court Judge Susie Morgan. Nevers faces a statutory maximum sentence of three years in prison on each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Evans commended special agents of IRS Criminal Investigation and U.S. Secret Service, who conducted the investigation, and Assistant U.S. Attorneys Hayden Brockett and Loan “Mimi” Nguyen, and Trial Attorney Grace Albinson of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Local Tax Return Preparer Pleads Guilty to Fraudulent Refund SchemeRead the Press Release
HOUSTON – A tax return preparer who operated a local business under various names has been convicted of willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, announced acting U.S. Attorney Abe Martinez.
According to the criminal information and plea agreement filed in the record of the case, Albert Bobby Daniels Jr. was in the business of preparing income tax returns and operated that business under various names including Home Based Business Tax Services in Houston. Daniels admitted he willfully placed numerous false items on his clients’ income tax returns in an attempt to generate excessive refunds.
The tax return Daniels prepared that served as the factual basis of today’s plea resulted in a tax loss to the United States of $7,263. As part of the plea, Daniels admitted that the total loss to the National Treasury was at least $257,590 for the approximate 45 fraudulent tax returns he prepared. Daniels has agreed to make full restitution to the IRS.
U.S. District Judge Alfred H. Bennett, who accepted the guilty plea, has set sentencing for Oct. 12, 2017. At that time, Daniels faces up to three years in federal prison and a possible $250,000 fine.
The Austin office of IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Liberian National Sentenced to Prison in Connection with $9.5 Million Investment Scheme of Gold and DiamondsRead the Press Release
CHARLOTTE, N.C. – Cassell Anthony Kuoh, a/k/a “Tim Borrol,” was sentenced today to 87 months in prison in connection with an investment fraud scheme involving gold and diamonds, that defrauded victims of more than $9.5 million, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. presided over today’s sentencing hearing and ordered Kuoh to pay $16.2 million as restitution. Kuoh will also be subject to deportation proceedings upon the completion of his federal sentence.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas.
“Kuoh was an extremely sophisticated fraudster who utilized Liberian government connections to help effectuate his fraud,” said U.S. Attorney Rose. “Many of his victims, who are located in our district and throughout the world, will never recover from the devastating financial losses wrought by Kuoh’s fraudulent scheme. On behalf of those victims, we are delighted that Mr. Kuoh will be serving a significant sentence in the Federal Bureau of Prisons.”
According to public records and statements made in open court, from June 2012 to December 2016, Kuoh orchestrated a fraudulent scheme involving the purchase, shipment and export of unrefined gold and rough diamonds allegedly located in Liberia. Kuoh was a Liberian national who lived in Liberia and owned Phoenix Mining and Investment Group (Phoenix Mining), which purported to be in the precious metal and gemstone business.
According to court records, Kuoh convinced victims to invest with Phoenix Mining by promising, among other things, that their money would be used to purchase, ship, and transfer gold and diamonds from Liberia into the United States, to be refined or cut and sold for profit. As part of the scheme, Kuoh and his co-conspirators invited victims to Africa to visit the mining operations, which had been set up by Kuoh to look legitimate and profitable, and to inspect the gold and diamonds, which Kuoh had borrowed from others.
While in Liberia, Kuoh and his co-conspirators also arranged meetings between potential victim investors and alleged custodians of gold. In at least one instance, Kuoh set up armed personnel to deliver large quantities of gold bars for inspection by potential investors, which convinced multiple victims that Kuoh did in fact own large quantities of gold. Kuoh also visited victims in the United States, bringing with him samples of gold to lull potential investors into believing that the gold and diamond import scheme was legitimate.
According to court records, once he received the funds from his victims for the purported purchase of gems and precious metals, Kuoh began to use stall tactics and to make up lies about the location and U.S. Customs status of the purported shipments of gold and diamonds. For example, Kuoh created a website for a fake shipping company, McDan Shipping Company, Ltd., and provided victims with false tracking information, showing that the packages were purportedly proceeding to their final destination in the U.S. Kuoh and his co-conspirators updated the website with “new” tracking information, which frequently showed that the packages were encountering problems and impediments along that way and required victims to pay additional fees, which increased the fraud proceeds for Kuoh and others. These concocted problems included things such as: airport storage fees, additional permits and certificates, and the need for additional official documents and stamps from Liberian officials.
Kuoh and his co-conspirators also provided victim investors with false, forged and fraudulent documents purported to be from various organizations in the U.S, Liberia and elsewhere. Kuoh and others used the fraudulent documents to create the false impression that the Liberian government required additional monies be paid, before the necessary approvals were given to allow the shipment of the gold and diamonds to proceed.
According to court records, contrary to Kuoh’s representations to his victims, the gold and diamonds never arrived in the United States, and were never held by U.S. Customs or any other agency. In reality, Kuoh used the investors’ money to fund his personal lifestyle, including to purchase a house in Harrisburg, North Carolina, and to pay for other expenditures.
On March 8, 2017, Kuoh pled guilty to one count of conspiracy to commit wire fraud. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Kuoh’s co-defendant, Emmanuel Tarr, 30, of Liberia, has also pleaded guilty to wire fraud conspiracy and is currently awaiting sentencing.
The investigation was led by ICE-HSI. Assistant United States Attorney Corey Ellis, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Las Cruces Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Luther Whelan, 42, of Las Cruces, N.M., was sentenced today in federal court to 84 months in prison followed by four years of supervised release for his conviction on methamphetamine trafficking charges.
Whelan was arrested in Sept. 2015, on a criminal complaint charging him with methamphetamine trafficking offenses. According to the complaint, law enforcement officers seized approximately 101.5 grams of methamphetamine and drug paraphernalia from Whelan on Feb. 7, 2015, and approximately 24.4 grams of methamphetamine and 2.8 grams of heroin from Whelan on July 23, 2015.
Whelan was subsequently indicted on Dec. 9, 2015, and charged with possession of methamphetamine with intent to distribute on Feb. 7, 2015, and July 23, 2015. According to the indictment, Whelan committed the offenses in Dona Ana County, N.M.
On March 4, 2016, Whelan pled guilty to Count 1 of the indictment charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Whelan admitted that on Feb. 7, 2015, he possessed approximately 102 grams of methamphetamine with the intention of selling it to others.
This case was investigated by the Las Cruces office of the FBI and was prosecuted by Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office.
Laplace Woman Pleads Guilty to Embezzling over $940,000 from EmployerRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ANGIE CAMBRE, age 43, of Laplace, pled guilty yesterday to a one-count Bill of Information charging her with wire fraud.
According to court documents, CAMBRE was hired in August 2011 to be the accountant and bookkeeper for a commercial printing company headquartered in New Orleans that specializes in printing materials, such as flyers and manuals, geared toward the automotive industry (“Company A”). Between November 2011 and June 2016, CAMBRE embezzled approximately $940,336.24 from Company A in a series of approximately 3,300 individual transactions, without Company A’s knowledge or authorization. CAMBRE did so by causing payments to be sent from one of Company A’s bank accounts to accounts under her control and to repay debts due and owing related to her personal use.
CAMBRE faces a maximum term of imprisonment of not more than 20 years followed by up to 3 years of supervised release, and a $250,000 fine. As part of her plea, CAMBRE agreed to repay Company A $940,336.24 in restitution. U.S. District Judge Sarah S. Vance scheduled sentencing for December 13, 2017.
Acting U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Lancaster Man with AK-47 Charged with Intent to Distribute HeroinRead the Press Release
Jose Enrique Gonzalez a/k/a “Jossy Gonzalez,” of Lancaster, PA, was charged today by four-count Indictment with possession with intent to distribute heroin, using and carrying a firearm in relation to a drug trafficking offense, possessing a firearm prohibited by the National Firearms Act, and possessing a firearm after sustaining a prior felony conviction, announced Acting United States Attorney Louis D. Lappen.
According to the Indictment, on June 14, 2016, in Lancaster, the defendant was found in possession of quantities of heroin, an AK-47 style rifle, multiple magazines of ammunition including a loaded 75-round drum magazine, and a silencer. If convicted, the defendant could face up to 50 years of incarceration, a lifetime of supervised release, a $1,020,000 fine, and a $400 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms (ATF), the Lancaster County Drug Enforcement Task Force, Lancaster County Detectives, and the Lancaster City Police Department. The case is being prosecuted by Assistant United States Attorney Sean McDonnell.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lake Charles man sentenced to more than 10 years in prison for drug, firearm chargesRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Lake Charles man was sentenced Wednesday to 130 months in prison for distributing cocaine and possessing firearms.
Kevin Ardoin, 36, of Lake Charles, was sentenced by U.S. District Judge Jay C. Zainey on one count of possession with intent to distribute cocaine and one count of possession of a firearm in furtherance of a drug trafficking crime. He was also sentenced to five years of supervised release. According to the May 3, 2017 guilty plea, law enforcement agents recorded Ardoin selling cocaine on June 22, 2016 in Lake Charles. Agents searched his home and found 1.9 ounces of crack cocaine, .5 ounces of powder cocaine, 13 Xanax pills, 14 grams of marijuana and $2,265. The next day, agents learned there were more drugs in Ardoin’s home than was previously found. They searched his home again and found $87,070, 432 grams of cocaine, and four firearms, which included a loaded Taurus .410 caliber pistol, a Masterpiece Arms .45 caliber pistol, a Taurus .40 caliber pistol, and a Smith and Wesson .38 caliber revolver.
The FBI and Calcasieu Parish Combined Anti-Drug Taskforce conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Kinloch Officials Admit to Stealing Money from the Kinloch Fire Protection DistrictRead the Press Release
St. Louis, MO – Darren Small, 51, and Jayna Small, 40, husband and wife of Kinloch, MO, have entered pleas of guilty to charges in connection with their theft of funds from the Kinloch Fire Protection District.
Jayna Small was President of the Board of Directors of the District. While she was President of the Board, she and her husband Darren Small, who was Chief of the Kinloch Fire Department and Mayor of the City of Kinloch, conspired to divert funds from the District’s bank account for their own personal use, including to purchase clothing, food, liquor, cigarettes, and other items. They also used funds from the District to pay for their personal household utility bills. Jayna Small also admitted that she diverted funds from the District by writing a check from the District’s bank account in the amount of $7,200.00 and using the funds from the check to pay for the funeral expenses of a relative.
Darren Small appeared today before United States District Judge Catherine D. Perry and pled guilty to one count of conspiracy to commit access device fraud and one count of access device fraud. Sentencing has been set for October 25, 2017.
Jayna Small appeared before Judge Perry on July 24, 2017 and pled guilty to one count of conspiracy to commit access device fraud and one count of interstate transportation of money obtained by fraud. Sentencing has been set for October 17, 2017.
Conspiracy to commit access device fraud carries a maximum penalty of five years in prison and/or a fine of up to $250,000, or both. Access device fraud and interstate transportation of money obtained by fraud each carry a maximum penalty of ten years in prison and/or a fine of up to $250,000, or both.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
KC Woman Pleads Guilty to Obstruction of Justice After Forging Court Order for ReleaseRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman who forged a court order to get another inmate released from prison, pleaded guilty in federal court today to obstruction of justice.
Margie P. Shephard, 51, of Kansas City, Mo., pleaded guilty before U.S District Judge Roseann Ketchmark to obstruction of justice.
Shephard was incarcerated as an inmate at Federal Prison Camp-Bryan in Bryan, Texas, after being sentenced to 10 years for conspiracy to commit bank fraud and identity theft, aggravated identity theft and obstruction of justice.
By pleading guilty today, Shephard admitted that, while incarcerated, she fabricated a document purporting to be an Amended Judgment in a Criminal Case for fellow inmate Leann Raejeana Turner, 48, of Blue Springs, Mo. Turner was also incarcerated at Federal Prison Camp-Bryan after being sentenced to three years in prison for her role in an $11 million mortgage fraud scheme. The fake court order, with a reduced sentence of 120 days of imprisonment for Turner (which would have resulted in her immediate release), included the forged signature of U.S. District Judge Greg Kays.
Shephard mailed the fake court order to her sister, who then faxed it to prison officials from a Sunfresh grocery store in Kansas City, Mo., on Nov. 9, 2014. Upon receiving the document, prison officials determined it was a forgery.
Under federal statutes, Shephard is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the FBI.
Justice Department Announces that Commitment to Reducing Violent Crime Stemming from Illegal Immigration will be Required for Participation in Public Safety Partnership ProgramRead the Press Release
The Department of Justice today announced that, in order to be selected for participation in the Department’s Public Safety Partnership (PSP) program, local jurisdictions must show a commitment to reducing crime stemming from illegal immigration.
In making the announcement, Attorney General Jeff Sessions said:
“By protecting criminals from immigration enforcement, cities and states with so-called 'sanctuary' policies make all of us less safe. We saw that just last week, when an illegal alien who had been deported twenty times and was wanted by immigration authorities allegedly sexually assaulted an elderly woman in Portland, a city that refuses to cooperate with immigration enforcement.
"By forcing police to go into more dangerous situations to re-arrest the same criminals, these policies endanger law enforcement officers more than anyone. The Department of Justice is committed to supporting our law enforcement at every level, and that’s why we're asking 'sanctuary' jurisdictions to stop making their jobs harder. By taking simple, common-sense considerations into account, we are encouraging every jurisdiction in this country to cooperate with federal law enforcement. That’s what 80 percent of the American people want them to do, and that will ultimately make all of us safer—especially law enforcement on our streets.
“These policies are driven by politics and do not protect their citizens. We will fight them with every lawful tool available."
The PSP program was announced in June and is a training and technical assistance program designed to enhance the capacity of local jurisdictions to address violent crime in their communities. Twelve locations were initially selected and the Department may announce additional sites later this year.
In determining which jurisdictions to select, the Department will ask interested jurisdictions the following questions:
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Does your jurisdiction have a statute, rule, regulation, policy, or practice that is designed to ensure that U.S. Department of Homeland Security (DHS) personnel have access to any correctional or detention facility in order to meet with an alien (or an individual believed to be an alien) and inquire as to his or her right to be or to remain in the United States?
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Does your jurisdiction have a statute, rule, regulation, policy, or practice that is designed to ensure that your correctional and detention facilities provide at least 48 hours advance notice, where possible, to DHS regarding the scheduled release date and time of an alien in the jurisdiction’s custody when DHS requests such notice in order to take custody of the alien?
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Does your jurisdiction have a statute, rule, regulation, policy, or practice that is designed to ensure that your correctional and detention facilities will honor a written request from DHS to hold a foreign national for up to 48 hours beyond the scheduled release date, in order to permit DHS to take custody of the foreign national?
In the attached letters, the Justice Department today formally requested that information from the following four local jurisdictions interested in the PSP program: Albuquerque, New Mexico; Baltimore, Maryland; San Bernardino, California; and Stockton, California
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Inmate at Fci-Berlin Sentenced for Possessing Marijuana While IncarceratedRead the Press Release
CONCORD, N.H. - Acting U.S. Attorney John J. Farley announced that Jesus Silva-Cruz, 42, a citizen of Cuba and an inmate at the federal correctional institution located in Berlin, New Hampshire was sentenced today to eight months in federal prison for possessing marijuana and possessing a prohibited object while an inmate at a federal prison. The sentence will run consecutively to the current sentence being served by Silva-Cruz.
According to statements made in court, on January 17, 2017, correctional staff at FCI-Berlin were conducting routine searches of cells. Silva-Cruz was the sole inmate assigned to cell 103. The staff found three vacuum sealed packages of green leafy material. Laboratory testing of the material proved it was marijuana. The total weight of the material was approximately three ounces.
The Bureau of Prisons was the lead investigative agency in this case. The case was prosecuted by Assistant U.S. Attorney Donald Feith.
Houma Man Pleads Guilty to Meth ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JERMAINE WHITE, age 34, of Houma, pled guilty yesterday to an Indictment charging him with violations of the Federal Controlled Substances Act, in violation of Title 21, United States Code, Sections 841, 841(b)(1)(A) and 846.
According to court documents, WHITE was arrested in August 2015, after coordinating the mailing of over 1000 grams of methamphetamine to Houma through the U.S. Postal Service. Two packages bound for WHITE were intercepted by the United States Postal Inspection Service, which led to a delivery of the packages to two separate addresses utilized by WHITE for drug distribution.
WHITE faces a minimum term of ten years of imprisonment and a maximum term of life imprisonment, a maximum fine of $10,000,000, at least five years of supervised release, and a mandatory $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for December 13, 2017.
Acting U.S. Attorney Evans praised the work of the United States Postal Inspection Service and the Drug Enforcement Administration in investigating this matter. Assistant U.S. Attorney James S. C. Baehr is in charge of the prosecution.
Honduran National Sentenced for Being an Alien in Possession of a FirearmRead the Press Release
BOSTON – A Honduran national residing in Revere was sentenced today in federal court in Boston in connection with illegally possessing a firearm.
Jamir Chicas-Hernandez, 23, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 14 months in prison and three years of supervised release. Chicas-Hernandez will face deportation proceedings upon the completion of his sentence. In May 2017, Hernandez pleaded guilty to one count of being an alien in possession of a firearm.
In 2015 and 2016, a federal investigation identified a network of street gangs which had created alliances to traffic firearms and drugs throughout Massachusetts and generate violence against rival gang members. Based on the investigation, 53 defendants were indicted in June 2016 on federal firearm and drug charges, including defendants who are allegedly leaders, members, and associates of the 18th Street Gang, the East Side Money Gang and the Boylston Street Gang. These gangs operated primarily in the East Boston, Boston, Chelsea, Brockton, Malden, Revere and Everett areas. During the course of the investigation, over 70 firearms, cocaine, cocaine base (crack), heroin and fentanyl were seized.
On April 29, 2015, Chicas-Hernandez was involved in the illegal sale of a Ruger Blackhawk .357 Magnum revolver to a cooperating witness working for law enforcement at an apartment on Endicott Street in Revere. The sale of the firearm was arranged through two individuals who were identified as members of the 18th Street Gang during the investigation.
Chicas-Hernandez is the 13th defendant to plead guilty in this case.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal of the District of Massachusetts; Massachusetts Attorney General Maura Healey; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
High-Ranking “Ygz” Gang Member Sentenced to 41 Years in Prison for Stomping Murder of 16-Year-Old and Other CrimesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WENDELL BELLE, a/k/a “Delly Dell,” was sentenced this afternoon to a term of 384 months of imprisonment in federal custody, which must run consecutively to a prior sentence of 108 months of imprisonment in state custody, for his crimes as a high-ranking member of the “Young Gunnaz” or “YGz” gang. Those crimes included the April 16, 2012 murder of Moises Lora, a/k/a “Noah,” 16, during which BELLE and several other YGz gang members stomped Lora to death in a courtyard in the Melrose housing projects in the Bronx, and the November 26, 2013 attempted murder of a rival gang member, whom BELLE shot near the Bronx Criminal Courthouse. BELLE was sentenced in Manhattan federal court by United States District Judge Valerie E. Caproni, before whom he previously pled guilty.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Wendell Belle and his fellow gang members stomped to death Moises Lora, a frail, 90-pound, 16-year-old, a few yards from a playground, and Belle later shot a rival gang member on a busy street in the middle of a workday near the Bronx Criminal Courthouse. The sentence imposed holds Belle accountable for his brutal crimes, and we hope that it also brings some comfort to the victims of Belle’s crimes, including the family of Moises Lora. Together with our law enforcement partners, we will continue to aggressively prosecute those who engage in such violence in our communities.”
According to the charging and other documents filed in the case, as well as the evidence presented at a co-defendant’s presentencing hearing and statements made during BELLE’s guilty plea and sentencing proceedings and other court proceedings in this case:
BELLE was a high-ranking member of the Bronx-based street gang known as the YGz. From at least 2005 to 2016, members and associates of the YGz enriched themselves by committing robberies and by selling drugs, such as crack cocaine, heroin, and marijuana, and committing acts of violence, including the murder of rival gang members, rival drug traffickers, and innocent bystanders. As part of his involvement in the YGz gang, BELLE participated in numerous acts of violence in the South Bronx.
For example, as part of his involvement in the YGz gang, BELLE and several other YGz gang members murdered Moises Lora, a member of a rival gang, on April 16, 2012, in the South Bronx. On the date of the murder, a group of YGz members, including BELLE, got drunk, and began arguing among themselves about who had done the most violence for the YGz. This group of YGz members went to the territory of a rival gang in the Melrose housing projects to settle their dispute. Upon arriving at the Melrose projects, BELLE and other members of the YGz saw Lora and attacked him. During the attack, Lora’s skull was fractured in several places. BELLE and the group left Lora to die. Following the stomping, BELLE and several of his confederates bragged to fellow YGz members about what they had done.
In addition, on November 26, 2013, BELLE shot and attempted to kill a rival gang member in the vicinity of the Bronx County Criminal Court.
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Mr. Kim praised the outstanding work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the New York City Police Department in the investigation of this case. He also thanked the Bronx County District Attorney’s Office for their support in this case.
This case is being handled by this Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, Gina M. Castellano, and Andrew C. Adams are in charge of the prosecution.
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Gulfport Felon Sentenced to 32 Years in Prison for Dollar Store RobberiesRead the Press Release
Gulfport, Miss – Joseph Towner, Jr., 32, of Gulfport, was sentenced today by U.S. District Judge Sul Ozerden to serve a total of 32 years in federal prison for armed robbery, announced Acting U. S. Attorney Harold H. Brittain. Towner previously pled guilty to two counts of brandishing a firearm during and in relation to a crime of violence. He was sentenced to 84 months in prison on the first count, and 300 months in prison on the second count, for a total of 32 years.
Judge Ozerden ordered Towner’s sentences to be served consecutively with each other and consecutively to the 8 years he is currently serving in the Mississippi Department of Corrections. He was ordered to pay restitution while in prison to Dollar General, Family Dollar, and an individual, for a total of $13,926.13. Once the restitution is paid, Towner is ordered to pay a fine of $20,000. When released from prison, he will be on supervised release for five years.
The charges in this case stem from a series of armed robberies of Dollar General and Family Dollar stores in Long Beach, Gulfport, D’Iberville and Biloxi in 2014. The case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives along with D’Iberville, Biloxi, Long Beach and Gulfport Police Departments. It was prosecuted by Assistant United States Attorney Annette Williams.
Guinean National Sentenced for Possessing Fake Passport and Identity TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Abdoulaye Barry, 25, of Jamaica, NY, who was convicted of possessing a fraudulent passport card and aggravated identity theft, was sentenced to 36 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that on February 26, 2017, the defendant, a citizen of Guinea, was found at the Rainbow Bridge with a fraudulent United States Passport card, bearing the name and passport card number of a real person with the defendant’s photograph, as well as a fraudulent Ohio Driver’s License bearing the name of a real person with the defendant’s photograph, and a Florida Driver’s license bearing the name and photograph of another person. The defendant was also in possession of a debit and credit card matching the name on the fraudulent Ohio Driver’s license.
The sentencing is the result of an investigation by the United States Department of State; Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
Gary Hirst, Former President and Chairman of the Board of Gerova Financial Group, Sentenced to over Six Years in Prison for Defrauding Shareholders of $72 Million in StockRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that GARY HIRST, former president and chairman of the board of Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, was sentenced to 78 months in prison for defrauding the shareholders of that company by secretly giving away nearly $72 million of company stock to himself and his co-conspirators for no legitimate business purpose. HIRST was convicted after a two-week trial in September, 2016, before U.S. District Judge P. Kevin Castel.
Acting U.S. Attorney Joon H. Kim said: “Today’s sentence reflects the magnitude of Gary Hirst’s massive fraud scheme, which netted tens of millions in ill-gotten gains. Hirst and his co-conspirators issued large amounts of stock, lied about their roles, and found other novel means to defraud the stockholders of Gerova Financial and the investing public. Ultimately, Hirst’s stock manipulation resulted not in huge returns, but instead in a long prison sentence.”
According to the allegations contained in the Indictment as well as the evidence presented during trial[1]:
From 2009 to 2011, GARY HIRST, along with his co-conspirators Jason Galanis, John Galanis, Derek Galanis, Ymer Shahini, and Gavin Hamels, engaged in a scheme to defraud the shareholders of Gerova, and the investing public, by issuing shares of Gerova stock for no legitimate business purpose and by effecting securities transactions in Gerova stock for the purpose of conferring millions of dollars of undisclosed remuneration on HIRST and his co-conspirators.
As a part of the scheme to defraud, GARY HIRST and Jason Galanis obtained sufficient control over Gerova to be able to cause Gerova to enter into transactions of their own design, and for their benefit, including the issuance of Gerova stock. Jason Galanis obtained this control without causing himself to be identified as an officer or director of Gerova in order to appear to abide by an SEC-imposed bar which forbade him from holding such positions at publicly traded companies. Among other means and methods, HIRST caused over 5 million shares of Gerova stock, which represented nearly half the company’s public float and which were intended for HIRST and his co-conspirators’ ultimate benefit, to be issued to and held in the name of Ymer Shahini, who knowingly served as a foreign nominee for the co-conspirators. HIRST, Jason Galanis, John Galanis, Jared Galanis, Derek Galanis, and Shahini understood that the purpose of the stock grant to Shahini was to disguise the co-conspirators’ true ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
In furtherance of the scheme, HIRST and his co-conspirators created fraudulent, back-dated documents to conceal their theft of the stock and cover their tracks. Also in furtherance of the scheme, HIRST deliberately misled Gerova’s other officers, including its chief financial officer, and caused Gerova to fail to disclose the stock giveaway in Gerova’s public filings with the SEC. In a telephone call with Jason Galanis that was recorded by the FBI, HIRST gloated, upon reviewing a draft of one such public filing, “That whole, that whole Shahini thing, I mean, nobody, they totally missed it. Everybody.”
At the same time, and as a further part of the scheme to defraud, HIRST’s co-conspirators opened and managed brokerage accounts in the name of Shahini (the “Shahini Accounts”), effected the sale of Gerova stock from the Shahini Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public the fraudulent nature of the co-conspirators’ ownership of and control over the Gerova stock.
Jason Galanis, among others, also fraudulently induced investment advisers, including Gavin Hamels, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. By causing the purchase of Gerova stock at the time, quantity, and/or price of their choosing, the co-conspirators were able to, among other things, effectuate the sale of large quantities of Gerova stock from the Shahini Accounts that the co-conspirators controlled while artificially maintaining the price of Gerova stock through coordinated matched trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public.
As a result, GARY HIRST, Jason Galanis, and their co-conspirators reaped nearly $20 million in profits, including approximately $2.6 million that benefitted HIRST directly.
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In addition to the prison term, GARY HIRST, 64, was sentenced to 1 year of supervised release. HIRST was also ordered to forfeit $19,038,650.53, and restitution to be determined at a later date.
Jason Galanis, who pled guilty to two counts of conspiracy to commit securities fraud, one count of securities fraud, and one count of investment adviser fraud, was sentenced to a term of 135 months in prison on February 15, 2017. John Galanis and Derek Galanis, each of whom pled guilty to one count of conspiracy to commit securities fraud and one count of securities fraud, were each sentenced to a term of 72 months’ imprisonment on February 16, 2017. Jared Galanis, who pled guilty to misprision of a felony, was sentenced to a term of 150 days in prison on January 11, 2017. Gavin Hamels, who pled guilty to one count of conspiracy to commit securities fraud, one count of securities fraud, and one count of investment adviser fraud, is scheduled to be sentenced before Judge Castel on November 29, 2017. Defendant Ymer Shahini remains a fugitive.
Mr. Kim praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
This charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Rebecca Mermelstein, and Aimee Hector are in charge of the prosecution.
[1] As for co-defendant Ymer Shahini, who remains a fugitive, the description of the charges set forth herein constitute only allegations.
Galloway Man Pleads Guilty to Distributing Child Pornography After Recording 12-Year-Old Girl in BathroomRead the Press Release
COLUMBUS, Ohio – Justin M. Nickell, 36, of Galloway, Ohio, pleaded guilty in U.S. District Court to one count of distribution of child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Westerville Police Chief Joseph Morbitzer, Franklin County Sheriff Dallas Baldwin and other members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the plea entered into before U.S. District Chief Judge Edmund A. Sargus, Jr.
According to the Statement of Facts in this case, Nickell communicated with an undercover task force officer posing online as a single mother of three children. The officer advertised that he was looking to chat with “open minded, taboo men” and Nickell responded.
During conversation on the Kik Messenger App, Nickell routinely made comments indicating that he wished to engage in sexual activity with the undercover persona’s three fictitious children. He also told the officer he secretly recorded a 12-year-old girl in his household getting out of the shower and drying off, and would then masturbate to the video afterwards. Nickell sent a screen shot from one of the videos to the officer. Nickell admitted to hiding his phone in a container in the bathroom under some clothing and also to recording her outside of the bathroom by placing his phone under the door.
On more than one occasion, Nickell sent nude photos of the 12-year-old girl to the undercover officer.
Nickell was indicted by a federal grand jury on March 23.
As part of his plea agreement, all parties have recommended a term of incarceration between 150 and 180 months. Chief Judge Sargus will consider that recommendation at a future sentencing hearing.
U.S. Attorney Glassman commended the investigation of this case by the Franklin County ICAC and Assistant United States Attorneys Heather A. Hill and Jessica H. Kim, who are representing the United States in this case.
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Former Summit County councilwoman sentenced to five years in prison for taking bribesRead the Press Release
A former Summit County councilwoman was sentenced to five years in prison for taking bribes in exchange for trying to influence court proceedings and investigations, said Acting U.S. Attorney David A. Sierleja and FBI Special Agent in Charge Stephen D. Anthony.
Tamela Lee, 58, of Akron, was convicted by a jury earlier this year on all six counts: conspiracy to commit honest services mail and wire fraud, honest services mail fraud, Hobbs Act conspiracy, violating the Hobbs Act, obstruction of justice and making false statements to law enforcement.
“This is a public official who used her office to collect cash, cigarettes, home repairs and other things that average citizens have to pay for,” Sierleja said. “She violated the public’s trust and is now being held accountable for her actions.”
"Tamela Lee, a community councilwoman elected by the citizens she was supposed to lawfully represent, was motivated by her own self- interests and greed,” Anthony said. “The FBI is pleased Ms. Lee is being held accountable for these criminal actions. The FBI will continue to root out public corruption, whether it is elected officials that violate their oath and the law or citizens that bribe them to do so.”
Lee solicited and accepted things from Omar Abdelqader, including money, loans, campaign contributions, home improvements, home maintenance and consumer goods. These were provided directly by Omar Abdelqader, or through Bi-Rite and totaled more than $6,500, according to court documents and testimony.
In return, Lee performed and promised to perform official acts for Omar Abdelqader and other businesses in Akron for which he served as a conduit to Lee. These actions included helping Omar Abdelqader and his designees navigate government bureaucracy, achieve favorable outcomes in judicial and administrative proceedings and obtain streamlined access to information, according to court documents and testimony.
Omar Abdelqader was affiliated with several convenience stores and other businesses in the Akron area, including the Bi-Rite on Diagnonal Road. Abdelrahman Abdelqader is his brother and Samir Abdelqader is his nephew, according to court documents.
On June 8, 2014, Omar and Samir Abdelqader discussed Samir obtaining a bond regarding criminal charges he was facing. About 40 minutes later, Omar and Lee discussed the councilwoman emailing or calling the judge. On June 12, Lee called Judge 2’s chambers several times. The next day Lee asked Omar for money, and he directed her to the Bi-Rite to collect the money, according to court documents and testimony.
On June 14, 2014, Lee sent a text message to Omar informing him that the judge and bailiff returned her call. She then sent a text message to Omar stating: “I am going to bed, I am angry and frustrated and broke…bye,” according to according to court documents and testimony.
Later that day, Omar instructed Lee to send her daughter to the Bi-Rite to pick up cash. Three days later, Lee spoke to Judge 2 and told the judge she was related to Samir Abdelqader, according to court documents and testimony.
In July 2014, Lee and Omar spoke repeatedly about fundraising for her campaign. Omar told Person 9 that he had collected $800 in donations for Lee. Omar explained the Lee provided service. “In other words, I am keeping her because we need her, man,” Omar told Person 9, who responded: “She is better than an attorney to us!” according to court documents and testimony.
Omar Abdelqader, of North Canton, Abdelrahman Abdelqader, of Canton, and Samir Abdelqader, of Fairlawn, have pleaded guilty to crimes related to this case.
This case was prosecuted by Assistant U.S. Attorneys Linda Barr and Elliot Morrison following an investigation by the Federal Bureau of Investigation, with assistance from the Akron Police Department.
Former Procurement Director of Staten Island District Attorney’s Office Charged with Embezzling Government FundsRead the Press Release
A ten-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging William Nelson, former Director of Procurement at the Richmond County District Attorney’s Office (RCDA), with one count of theft of funds and nine counts of mail fraud. The defendant is scheduled to be arraigned before United States Magistrate Judge James Orenstein at the Brooklyn federal courthouse this afternoon.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Mark G. Peters, Commissioner, New York City Department of Investigation (DOI).
As alleged in the indictment, for approximately 10 years between 2006 and 2016, Nelson stole over $440,000 from the RCDA as part of a long-term scheme to defraud the RCDA of funds. Specifically, Nelson used two RCDA American Express credit cards to purchase items such as jewelry, apparel, toys, sporting goods and memorabilia, alcohol, video games and movies, electronics, household items, grocery items, books, sundries, knives, survival gear, handbags, collectibles, souvenirs, event tickets, meals, lodging, airfare, excursions, and online services that he then used for his own benefit and the benefit of others. Nelson also used the online payment system PayPal to directly transfer thousands of dollars from the RCDA credit cards to his own personal bank account. In furtherance of his scheme, Nelson took steps to conceal his embezzlement, which included concealing the itemized credit card statements, mischaracterizing the nature of the purchases, and using his authority as Director of Procurement to approve payments of his fraudulent personal expenditures.
“As alleged, Nelson abused his position as Procurement Director for the Richmond County District Attorney’s Office by engaging in a decade-long scheme to defraud the DA’s office of nearly half a million dollars,” stated Acting United States Attorney Rohde. “Together with our law enforcement partners at the FBI and DOI, our Office will hold to account those who engage in such fraud, particularly where it disadvantages agencies tasked with safeguarding our communities.” Ms. Rohde thanked the Richmond County District Attorney’s Office for its assistance during the investigation.
“This case is a textbook example of what can happen when power goes unchecked,” stated FBI Assistant Director-in-Charge Sweeney. “Not only did Nelson allegedly steal hundreds of thousands of dollars from the RCDA, but he shamefully exploited his official position to authorize the very transactions that made this possible. Instead of using taxpayer funds for their intended purpose, he allegedly used them for his own personal intentions. Our communities place a high level of trust in those who hold these positions, and that trust should never waver. We won’t allow schemers of any kind to put the public’s trust at risk.”
“This defendant stole law enforcement funds to finance jet-setting vacations and purchase hundreds of thousands of dollars in luxury items, according to the charges,” stated DOI Commissioner Peters. “DOI has issued a report documenting how this scam was perpetrated for over a decade and recommended changes to safeguard our city’s finances. DOI thanks the United States Attorney’s Office for the Eastern District of New York for its partnership on this criminal investigation and the Richmond County District Attorney’s Office for its cooperation and swift action in implementing DOI’s recommendations.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 10 years’ imprisonment on the theft of funds count and 20 years’ imprisonment on each of the mail fraud counts.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorney Maria Cruz Melendez is in charge of the prosecution.
The Defendant:
WILLIAM NELSON
Age: 44
New York, New York
E.D.N.Y. Docket No. 17-CR-394 (RJD)
Former New Hampshire Investment Banker Pleads Guilty to Defrauding Client of $2 MillionRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that Karl Edward Hahn, 44, of Manchester, Connecticut and formerly of New Castle, New Hampshire pleaded guilty on Tuesday to participating in a wire fraud scheme that defrauded a victim of approximately $2 million.
According to court records and statements in court, Hahn lived in New Hampshire and was employed as an investment advisor at investment banks in Portsmouth, New Hampshire. Starting as early as March of 2009 and continuing until July of 2010, he invited one of his investment clients to join him in what he referred to as an “off the books” investment. He described that investment as follows: Hahn and the victim would each contribute approximately $2 million, which Hahn would then loan to three individuals who would repay the money within 90 days with interest substantially above market rates. Hahn told the victim the “loan” would be secured by three pieces of residential real estate, one owned by each of the three borrowers, which were all unencumbered and which collectively had a value far in excess of the approximately $4 million loan.
Hahn told the victim that no one could know about the investment, including the defendant’s employer, because he was not allowed to enter into financial dealings with clients other than through his employment. In order to prevent his employer from learning of the “off the books” transaction, Hahn asked the victim to transfer the money into a bank account held by one of Hahn’s relatives and that Hahn would then get the money from his relative.
The victim agreed and transferred to Hahn’s relative’s account, in separate transactions, $300,000, $1,600,000, $100,000, and $35,000, totaling $2,035,000. Hahn admitted that the entire story of landowners wanting to borrow money was false, that there never were three landowners who wanted to borrow money collateralizing the loans with deeds, and that loans were never made to any landowners using the victim’s money. Hahn simply used the victim’s money to pay personal expenses. In 2011, the New Hampshire Bureau of Securities Regulation barred Hahn from being licensed to sell securities.
Hahn also admitted that during the course of executing the scheme, he made additional materially false representations to the victim that lulled him into a false sense of security and caused him to temporarily refrain from reporting his dealings with the defendant to law enforcement authorities. Those false statements included: 1) that the supposed borrowers had defaulted on the loans; 2) that as a result of the alleged defaults, Hahn had possession of the deeds to the supposed borrowers’ properties; and 3) that Hahn had communicated with a hedge fund so the hedge fund could buy the properties, thereby resulting in the return of the victim’s money with interest. Hahn also later falsely represented to the victim that he had been successful in working with the supposed hedge fund and that he was confident that the victim would have his money back by early August of 2010.
Hahn will be sentenced on November 8, 2017. The terms of the plea require Hahn to serve 18 months in federal prison.
This case was investigated by the FBI and United States Secret Service and was prosecuted by Assistant United States Attorney Arnold H. Huftalen.
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Former Facilities Manager Pleads Guilty to Embezzling from San Diego Workforce PartnershipRead the Press Release
Assistant U. S. Attorneys Emily Allen (619) 546-9738 and Benjamin Katz (619) 546-9604
NEWS RELEASE SUMMARY – August 3, 2017
SAN DIEGO – Jared Palmer, a former facilities manager for the San Diego Workforce Partnership, pleaded guilty today to embezzling more than $450,000 from the local Workforce Development Board that provides job training and placement to San Diego county residents and employers.
According to his plea agreement, Palmer, as facilities manager, was responsible for approving payment of invoices submitted by janitorial companies contracted to clean San Diego Workforce Partnership’s facilities. Between 2011 and 2016, Palmer instructed these contractors to purchase items that he claimed were for the Partnership’s use, including Nest Smart Thermostats, electronics, and pre-paid debit cards. Palmer then stole the items and replaced the invoices that included the cost of these stolen items with false invoices that made it appear as if all of the charges were for legitimate janitorial services. Over the course of five years, Palmer’s scheme netted him at least $455,606.
Because the Partnership, known as SDWP, is a Workforce Development Board funded largely by federal grant dollars, Palmer’s plea was to a count of Theft of Federal Program Funds, in violation of 18 U.S.C. § 666. Palmer’s plea agreement includes a restitution addendum, in which he agreed to pay SDWP back for his theft.
“This case represents the U.S. Attorney’s Office’s continued commitment to protecting non-profit organizations, especially those receiving federal grant money,” said Acting U.S. Attorney Alana W. Robinson.
“Jared Palmer, a former high level employee with the San Diego Workforce Partnership (SDWP), created and submitted fictitious invoices for janitorial services to SDWP in order to embezzle more than $450,000 in U.S. Department of Labor job training funds. Palmer’s actions deprived American workers from receiving critical job training services provided by SDWP. We will continue to work with our law enforcement partners to safeguard federal funds,” stated Abel Salinas, Special Agent-in-Charge of the Los Angeles Regional Office of the U.S. Department of Labor, Office of Inspector General.
“Mr. Palmer embezzled funds from the San Diego Workforce Partnership, which was providing a valuable and important service,” said Special Agent in Charge Eric S. Birnbaum. “Federal dollars were stolen as part of Mr. Palmer’s scheme. Simply, this will not be tolerated. The FBI will expose criminals who line their pockets out of greed and deceit while federally funded programs designed to help our community suffer.”
Palmer is scheduled to be sentenced on November 6, 2017.
DEFENDANT Case Number: 17-cr-2157-LAB
Jared Palmer Age: 41
SUMMARY OF CHARGES
Theft of Federal Program Funds, 18 U.S.C. § 666
Maximum penalty: 10 years’ imprisonment, fine double amount obtained, 3 years’ supervised release.
AGENCIES
Federal Bureau of Investigation – San Diego Field Office
U.S. Department of Labor – Office of Inspector General
Former CFO Pleads Guilty to Embezzling $6.5 Million from KC CompanyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the former chief financial officer of a Kansas City, Mo., company pleaded guilty in federal court today to embezzling more than $6.5 million from his employer.
Douglas Ferrell, 34, of Kansas City, waived his right to a grand jury and pleaded guilty before U.S. District Judge Brian C. Wimes to a federal information that charges him with wire fraud and money laundering.
Ferrell began working for Scarbrough International at its headquarters in Kansas City, Mo., in 2005 as an account representative and became the company’s chief financial officer in 2012. Scarbrough International is a privately owned, U.S. Customs Broker and international freight forwarder.
By pleading guilty today, Ferrell admitted that he embezzled approximately $6,523,742 from the company for his own use and enjoyment. From Sept. 1, 2006, to June 10, 2014, Ferrell engaged in a scheme to embezzle company funds by making unauthorized personal charges to the company’s credit card and PayPal accounts, and then using company funds to pay those charges.
Ferrell also made a number of financial transactions of funds that he knew were the proceeds of fraud, including a $650,000 wire transfer (that contained at least $475,625 in fraud proceeds) to Cayman National Bank in the Cayman Islands to purchase a beach house. Ferrell wired a total of more than $2,250,000 to purchase that property. Ferrell also used embezzled funds to ship furnishings from the United States for the property and for additional construction and improvements to the property, including over $77,000 in payments to a Cayman Islands tile company. After the improvements, paid for with additional embezzled funds, the property was valued at over $2.6 million.
The final amount of restitution will be determined at Ferrell’s sentencing hearing, but is estimated to be $1,940,462 due to Ferrell’s partial repayment of restitution. The company has recouped a significant portion of its loss.
Under federal statutes, Ferrell is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Casey. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.
Five Individuals Indicted in California for Allegedly Stealing More Than $9 Million in Tax RefundsRead the Press Release
A grand jury in the Northern District of California returned an indictment, which was unsealed today, charging five individuals with conspiring to submit fraudulent claims for tax refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California. Two of the individuals were also indicted for bank fraud.
According to the indictment and information provided to the court, Jorge Vissani, Jacqueline Ramos a/k/a Jackie Acosta, Ana Bajo a/k/a Ana Cobraubias, Norma Morfin and Antonio Ahumada filed fraudulent tax returns with the Internal Revenue Service (IRS) that included fake income, false dependents and bogus education expenses. As a result of filing these fraudulent returns, the defendants are alleged to have stolen more than $9 million in tax refunds. The indictment alleges that the defendants directed the IRS to send the refunds to addresses and bank accounts that they controlled. According to the indictment, they forged endorsements and cashed or deposited the refund checks at financial institutions and businesses in Northern California.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, the defendants face a statutory maximum penalty of five years in prison on the conspiracy count. Ramos and Ahumada also face a statutory maximum sentence of 30 years in prison on the bank fraud counts. They also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Michael G. Pitman and Trial Attorney Gregory Bernstein of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Final defendants sentenced to federal prison for roles in large-scale methamphetamine conspiracyRead the Press Release
CHARLESTON, W.Va. – A man and a woman from Paramount, California, and a woman from South Charleston were sentenced to federal prison today for their roles in a large-scale drug trafficking organization, announced United States Attorney Carol Casto. Gregory Crum, 42, and Diana Salazar Gamboa, 44, both previously pleaded guilty to conspiracy to distribute methamphetamine. Crum was sentenced to 20 years in federal prison. Gamboa was sentenced to eight years and one month in federal prison. Additionally, Beth Hammonds, 53, previously pleaded guilty to using the mail to facilitate a drug crime and was sentenced to two and a half years in federal prison.
As part of a comprehensive investigation, agents from the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations intercepted several packages that contained crystal methamphetamine, commonly referred to as “ice.” Since January 2014, several pounds of crystal methamphetamine were transported from California and Nevada into the Southern District of West Virginia via the United States mail or through individuals driving packages of drugs into the area.
Crum and Gamboa admitted that they arranged for methamphetamine to be sent into the Southern District and accepted payment for the drugs. Hammonds admitted that she received methamphetamine and further distributed it to individuals around South Charleston. Hammonds also admitted that she mailed proceeds from the drug distributions to Joseph Cooper, another individual involved in the conspiracy.
Multiple defendants have been sentenced to federal prison as a result of this large-scale methamphetamine trafficking investigation. Cooper was sentenced to 14 years in federal prison for possession with intent to distribute methamphetamine. Benjamin Childers was sentenced to 10 years and a month in prison for conspiracy to distribute methamphetamine. David Huffman was sentenced to eight years and four months in prison for conspiracy to distribute methamphetamine. Mark Cobb and Shayne Shamblen were both sentenced to seven years in prison for conspiracy to distribute methamphetamine. Mark Bays was sentenced to five years in prison for maintaining a residence for the purpose of distributing methamphetamine. Harold Parsons was sentenced to four years in prison for possession with intent to distribute methamphetamine. Light was sentenced to four years in prison for conspiracy to distribute methamphetamine. Jon Bowman was sentenced to a year and a half in prison for using the mail to facilitate a drug crime.
Assistant United States Attorney Haley Bunn is responsible for these prosecutions. United States District Judge John T. Copenhaver, Jr., imposed the sentences and presided over these cases.
These prosecutions were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Final Defendant Pleads Guilty in 100-Plus Pound Methamphetamine Trafficking ConspiracyRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of LUIS MANUEL SANCHEZ-LOPEZ for conspiracy to possess with intent to distribute more than 100 pounds of methamphetamine. SANCHEZ-LOPEZ entered his guilty plea today before U.S. District Judge Ann D. Montgomery in Minneapolis, Minn.
SANCHEZ-LOPEZ is the last of three defendants to plead guilty to a March 2017 indictment. Co-defendants ABRAHAM SUAZO and ARTURO JUAREZ MADRIGAL entered their guilty pleas in U.S. District Court on May 15, 2017, and June 15, 2017, respectively.
“To the best of our knowledge, this was the largest single seizure of methamphetamine destined for Minnesota this year,” said Assistant U.S. Attorney Bradley Endicott. “One-hundred pounds of methamphetamine represents an indescribable harm to the community. The Department of Homeland Security and our local law enforcement partners deserve great credit for their investigative efforts and success in taking these dangerous drugs off the street.”
According to the defendants’ guilty pleas and documents filed in court, on February 8, 2017, the South Dakota State Patrol stopped a vehicle that contained approximately 92 pounds of methamphetamine. The driver, SUAZO, was transporting the methamphetamine from California to JUAREZ-MADRIGAL’S house in Eagan, Minn. Following a controlled delivery, law enforcement agents executed a search warrant at the house and were able to recover an additional 9.6 pounds of methamphetamine and $118,500 in U.S. currency. At the time of the search, SANCHEZ-LOPEZ was also in the house and had used various chemicals, including acetone, to “wash” the methamphetamine to make it clear or white.
All three defendants face a 10-year mandatory minimum prison sentence.
This case is the result of an investigation conducted by Homeland Security Investigations, the Drug Enforcement Administration, the South Dakota Division of Criminal Investigation, the Pennington County Sheriff’s Department, the Rapid City Police Department, the St. Paul Police Department, the Minneapolis Police Department, and the South Dakota State Patrol.
This case is being prosecuted by Assistant United States Attorney Bradley M. Endicott.
Defendant Information:
ABRAHAM SUAZO, 36
Unknown
Convicted:
- Conspiracy to possess methamphetamine with intent to distribute, 1 count
ARTURO JUAREZ MADRIGAL, D.O.B. unknown
Eagan, Minn.
Convicted:
- Conspiracy to possess methamphetamine with intent to distribute, 1 count
LUIS MANUEL SANCHEZ-LOPEZ, D.O.B. unknown
Eagan, Minn.
Convicted:
-
Conspiracy to possess methamphetamine with intent to distribute, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal, State, and Local Law Enforcement Take Down East Alabama Drug Trafficking OrganizationRead the Press Release
Montgomery, Ala. – Twenty-six suspected drug traffickers with ties to East Alabama were arrested in a joint federal, state, and local narcotics investigation, announced A. Clark Morris, Acting U.S. Attorney for the Middle District of Alabama. Thirteen suspects were arrested on federal narcotics and money laundering charges. An additional thirteen suspects were arrested on state narcotics charges.
According to the six-count federal indictment, the suspects listed below conspired to possess with intent to distribute or did distribute a variety of drugs, including cocaine, marijuana, Xanax and methylenedioxy-methamphetamine (also known as MDMA or ecstasy). In addition to the drug charges, the indictment alleges four of the defendants committed the crime of money laundering.
The thirteen federal suspects are:
1) Alfred Lorenzo Cole – 36 years old, Santa Rosa, California;
2) Sakeya Monique Donaldson, 38 years old, Atlanta, Georgia;
3) Leanne Grimmett, 31 years old, Auburn, Alabama;
4) Jermichael Lamar Hart, 31 years old, Auburn, Alabama;
5) Worldly Dieago Holstick – 35 years old, Auburn, Alabama;
6) Mackenzie Leigh Keith, 23 years old, Auburn, Alabama;
7) Tyesha Lanise Lockhart – 20 years old, Auburn, Alabama;
8) John Willie Maddox, Jr. - 27 years old, Auburn, Alabama;
9) Marquis Lanez Miller – 36 years old, Auburn, Alabama;
10) Timothy Lamar Spinks, 42 years old, Auburn, Alabama;
11) Erin Kristen Turner – 23 years old, Auburn, Alabama;
12) Lateasha Lashun Williams, 30 years old, Auburn, Alabama; and
13) Lester Stephen Young, 34 years old, Auburn, Alabama;
For the conspiracy count, defendants Holstick, Miller, Maddox, Cole, Lockhart, Turner, Donaldson, Young, Spinks, and Hart are facing no less than 5 years imprisonment, and not more than 40 years. In addition, they are subject to a fine of not more than 5 million dollars.
For the money laundering conspiracy, defendants Holstick, Turner, Cole and Grimmett face not more than 20 years imprisonment. In addition, they are subject to a fine of not more than $500,000.00 dollars.
Defendants Maddox, Williams, Keith and Miller face not more than 20 years imprisonment for distribution charges. In addition, they are subject to a fine of not more than 1 million dollars.
The following suspects are facing state charges of criminal conspiracy to commit a controlled substance crime.
1) Shedrick Taryl Cannon, Notasulga, Alabama;
2) Travis Lamar Dowdell, Auburn, Alabama;
3) Carlton Antonio Goodman Jr., Dadeville, Alabama;
4) Blakely Elizabeth Kilgore, Huntsville, Alabama;
5) Samson Jermon Logan, Auburn, Alabama;
6) Keuntae Rajhun Mabson, Tuskegee, Alabama;
7) Adam Lee McPheeters, Auburn, Alabama;
8) Antonio Jermaine Mitchell, Opelika, Alabama;
9) Eric Kendall Smith, Auburn, Alabama;
10) Alexander White Jr., Thomasville, Alabama; and
11) Caleb Andrew Whitworth, Notasulga, Alabama.
Two more individuals are facing state charges: Eric Lamar Kellum of Opelika, Alabama is being charged with distribution of a controlled substance, and Quentin Eugene Turner of Auburn, Alabama is facing charges of possession of a controlled substance, marijuana, and drug paraphernalia.
An indictment is merely a method of charging a defendant. Each defendant is presumed innocent until proven guilty beyond a reasonable doubt.
These cases are being investigated by the following agencies: DEA – Montgomery Resident Office, Auburn Police Division, Eufaula Police Department, Prattville Police Department, Alabama Attorney General’s Office, Alabama Law enforcement Agency, Alabama HIDTA Task Force, Alabama National Guard, Autauga County Sheriff’s Office, Central Alabama Drug Task Force (CADTF), Elmore County Sheriff’s Office, Millbrook Police Department, Montgomery County Sheriff’s Office, Montgomery Police Department, Lee County Sheriff’s Office, Lee County District Attorney’s Office, Opelika Police Department, Troy Police Department, and the United States Marshals.
The federal case is being prosecuted by Assistant United States Attorneys Verne Speirs and John Geer. The state case is being prosecuted by the Lee County District Attorney’s Office.
Federal jury finds Krotz Springs man guilty of possessing firearms, ammunition illegallyRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a federal jury found a Krotz Springs man guilty Wednesday of possessing firearms and ammunition after being convicted of a felony.
Paul Joseph Viola, 46, of Krotz Springs, La., was found guilty of two counts of possession of a firearm by a convicted felon and two counts of possession of ammunition by a convicted felon. United States District Judge S. Maurice Hicks Jr. presided over the trial, which started Monday and ended Wednesday. The jury returned a guilty verdict after deliberating for approximately two hours.
Testimony and evidence at trial revealed that an anonymous caller reported in October of 2015 that Viola was a felon in possession of firearms. In an undercover operation conducted between October 31, 2015 and November 13, 2015, law enforcement agents obtained photographs of a Remington 1100 12 gauge shotgun, a .22 caliber Remington Speedmaster Model 552 semi-automatic rifle, and a .22 caliber Ruger model 10/22 semi-automatic rifle that were in his trailer in Krotz Springs. While the investigation was still ongoing, Louisiana Department of Wildlife and Fisheries agents found Viola on November 28, 2015 at the Sherburne Wildlife Management area in St. Martin Parish in possession of a loaded .35 caliber Whelen single shot rifle and a rifle sling containing five rounds of ammunition. ATF agents also searched his trailer in Krotz Springs on December 7, 2015, where they found and seized 13,428 rounds of ammunition. During his arrest on January 21, 2016 in Krotz Springs, law enforcement agents searched Viola’s pickup. At that time, agents found 10 .22 caliber rounds of ammunition in a Ruger 10/22 rotary magazine for a Ruger 10/22 rifle, one round of Hornady .444 Marlin ammunition, three rounds of .243 Winchester ammunition and two rounds of .308 Winchester ammunition.
Viola faces up to 10 years in prison for each count, three years of supervised release and a $250,000 fine for each count. The court also ordered the forfeiture of any right or interest that Viola had in the forfeiture of the firearms and ammunition. The court did not set a sentencing date.
The ATF and the Louisiana Department of Wildlife and Fisheries conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Federal jury finds Baldwin man guilty of cocaine conspiracy operated out of St. Mary ParishRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a federal jury found a Baldwin man guilty Wednesday for his role in a cocaine distribution conspiracy operated in the St. Mary Parish area.
Barry Druilhet, 43, of Baldwin, La., was found guilty of one count of conspiracy to distribute and possess with intent to distribute cocaine and one count of use of a communication facility in causing or facilitating a drug trafficking crime. United States District Judge Elizabeth E. Foote presided over the three-day trial. The jury returned a guilty verdict after deliberating for approximately 45 minutes.
Evidence admitted at trial revealed that Druilhet was a member of a conspiracy to distribute more than 5 kilograms of cocaine in the St. Mary Parish, Ascension Parish and Baton Rouge areas from January 2000 to June 2015. Omar Mascorro, 41, of Houston, Texas, was the source of the cocaine and provided it to Artey D. Foulcard, 38, of Franklin, La., who provided it to Druilhet and others to distribute. Agents recorded the defendants using their cellular phones to facilitate sale of the drugs.
Druilhet faces up to 20 years in prison for the conspiracy count and up to four years in prison for the communication count. He also faces three years of supervised release and a $250,000 fine for both counts. Sentencing has been set for December 7, 2017. Mascorro pleaded guilty to the conspiracy count on June 21, 2017. The other defendants in the indictment pleaded guilty to the conspiracy count. They are: Michael McDaniel, 44, of Missouri City, Texas, who pleaded guilty on April 25, 2017; Cordell Johnson, 40, of Jeanerette, La., who pleaded guilty on June 26, 2017; Duanyell Williams, 42, of Franklin, La., who pleaded guilty on June 19, 2017; and Calvin Burrell, 50, of Franklin, who pleaded guilty on April 25, 2017. D’Arnold T. Deville, 49, of Bourg, La., was transferred to the Eastern District of Louisiana in New Orleans on July 12, 2017 where he pleaded guilty to the conspiracy count and additional charges. Williams, Mascorro, McDaniel, Johnson and Burrell are scheduled to be sentenced on October 19, 2017. Foulcard was an unindicted coconspirator who pleaded guilty to conspiracy to distribute a Schedule II controlled dangerous substance in a bill of information in January 2016 in the Western District of Louisiana. The case was transferred to the Middle District of Louisiana in Baton Rouge in February 2016, and he was sentenced on March 2, 2017 to 85 months in prison and five years of supervised release.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation named “Hater Hurterz.” The FBI and the Texas Department of Public Safety conducted the investigation. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorneys Robert F. Moore and Kelly P. Uebinger are prosecuting the case.
Federal Jury in New Mexico Convicts Colorado Man on Cocaine Trafficking ChargeRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict yesterday afternoon finding Colorado Springs, Colo., resident Leroy Tchod Cameron Ravenell, 28, guilty on a cocaine trafficking charge after a three-day trial. Acting U.S. Attorney James D. Tierney, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division and Chief Patrol Agent Jeffrey D. Self of the U.S. Border Patrol El Paso Sector announced the verdict.
U.S. Border Patrol agents arrested Ravenell on Nov. 11, 2016, after finding approximately .36 kilograms (.8 pounds) of cocaine and two firearms concealed in his vehicle during an inspection at the U.S. Border Patrol checkpoint near Alamogordo, N.M., in Otero County, N.M. Ravenell, who initially was charged in a criminal complaint, subsequently was indicted on May 17, 2017, and charged with possession of cocaine with intent to distribute.
Ravenell’s trial began on July 31, 2017, and concluded yesterday afternoon when the jury returned a guilty verdict against Ravenell on the sole count of the indictment.
The testimony at trial established that on Nov. 11, 2016, Ravenell was a passenger in his vehicle when it was driven into the U.S. Border Patrol checkpoint on Highway 54 south of Alamogordo. During a routine inspection of Ravenell’s vehicle, Border Patrol agents found approximately 243 grams of cocaine hidden in a small box and two firearms. Agents also located a large amount of cash on Ravenell’s person. Testimony during the trial established that Ravenell made a statement to law enforcement that he had bought the cocaine from another person in a parking lot in El Paso, Tex., on the morning of Nov. 11, 2016, with the intention of selling the cocaine to others.
The jury deliberated approximately three hours before returning its guilty verdict.
Ravenell was remanded into custody after the verdict was returned and will remain detained pending a sentencing hearing, which has yet to be scheduled. At sentencing, Ravenell faces a maximum penalty of 20 years in federal prison.
This case was investigated by the DEA and the U.S. Border Patrol and is being prosecuted by Assistant U.S. Attorneys John Balla and Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office.
Enforcer for Violent Gambling Organization Sentenced to 24 Months in PrisonRead the Press Release
Assistant U. S. Attorneys Benjamin Katz (619) 546-9604, Andrew Young (619) 546-7981 and Mark W. Pletcher (619) 546-9714
SAN DIEGO – Jack Rissell was sentenced today to 24 months in prison for his role as an enforcer in the gambling organization run by former USC football player Owen Hanson.
Rissell entered a guilty plea to Hobbs Act extortion on December 15, 2016. According to the plea agreement, Owen Hanson hired to travel from California to Minnesota to collect a gambling debt from an individual living in Minneapolis. The agreement between and Hanson included a “contact fee” – a premium or bonus for assaulting the victim. Once located the victim at his Minneapolis apartment, he carried out this assault by striking the victim in the face and demanding that the victim repay the gambling debt he owed to Hanson. During the confrontation, the victim’s son was present in the apartment. In a subsequent email to Hanson, described the attack saying, “he went down like a bag of potatoes.”
Before sentencing Rissell to 24 months imprisonment, Judge Hayes described the premium payment as “cold blooded” and called Rissell’s involvement with Hanson as “egregious conduct” that left the victim in terror.
In total, 21 of 22 defendants charged in relation to Hanson’s enterprise have entered guilty pleas. The remaining defendant, Khalid Petras, is set for trial on August 29, 2017. He is accused of money laundering and running an illegal gambling business. The charges against this defendant are merely accusations, and he is considered innocent until proven guilty.
The case arose out of a joint investigation by FBI and the New South Wales (Australia) Police Force in conjunction with the New South Wales Crime Commission. Hanson was initially indicted and arrested on September 9, 2015, after arranging the delivery of five kilograms of cocaine and five kilograms of methamphetamine.
DEFENDANT Case Number: 15CR2310-WQH
Jack Rissell Age: 51
SUMMARY OF CHARGES
Hobbs Act Extortion, 18 U.S.C. § 1951
Maximum penalty: 20 years’ imprisonment, $250,000 fine, 3 years’ supervised release.
AGENCIES
Federal Bureau of Investigation – San Diego Field Office
Internal Revenue Service – San Diego
Australian Crime Commission
New South Wales Police Force
New South Wales Crime Commission
Darby Man Charged for Distributing FentanylRead the Press Release
PITTSBURGH – A resident of Darby, Pa., has been indicted by a federal grand jury in Pittsburgh for the distribution of furanyl fentanyl, a Schedule I controlled substance, Acting United States Attorney Soo C. Song announced today.
The 4-count indictment named Henry Koffie, a/k/a NarcoBoss, 32, of Darby, PA, as the sole defendant.
According to the indictment and associated criminal complaint, Koffie used the name NarcoBoss on the Dark Net marketplace AlphaBay to sell fentanyl products. Additionally, the indictment charges that on or about March 27, 2017; April 7, 2017; April 24, 2017, and May 15, 2017, Koffie distributed a quantity of furanyl fentanyl, a Schedule I controlled substance to an address in the Western District of Pennsylvania.
The law provides for a maximum total sentence of up to 80 years in prison, a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government. Substantial assistance was provided by the United States Attorney’s Offices in the District of Oregon and the Eastern District of Pennsylvania.
The United States Postal Inspection Service, Federal Bureau of Investigation, and Homeland Security Investigations 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.
Covington Business Owner Sentenced to 66 Months for Food Stamp Fraud SchemeRead the Press Release
COVINGTON, Ky. – An Edgewood, Ky., woman, who was found guilty by a federal jury in January 2017, was sentenced today to 66 months in prison.
U.S. District Court Judge David L. Bunning sentenced 49-year-old Phyllis Tyler for Conspiracy to Commit Food Stamp Fraud, Food Stamp Fraud, and four counts of Money Laundering.
Tyler operated A&E Fashion’s and Beauty Supply LLC (A&E), a convenient store in Covington, Ky., which was an authorized food stamp retailer. The United States Department of Agriculture administers the food stamp program, formally called the Supplemental Nutrition Assistance Program (SNAP), which provides benefits to recipients who are eligible for assistance. Retail stores may participate in SNAP only with the authorization of the USDA, Food and Nutrition Service and may only accept and redeem food stamp benefits in connection with the sale of eligible food stamp items. Authorized retailers cannot accept food stamp benefits in exchange for cash. Food stamp recipients use an Electronic Benefit Transfer (EBT) card that maintains the benefit balance and can be used at any authorized retailer to redeem benefits.
According to the evidence at trial, from January 2, 2012 until June 26, 2015, Tyler made cash purchases of food stamp benefits from beneficiaries, paying half the value of the benefits actually on the EBT cards. She then redeemed the full benefits by conducting EBT transactions at her store, which triggered a direct reimbursement for the sale from the federal government to Tyler’s business bank account. She also used cards that she purchased for cash at other retailers, to buy items for her personal use or for inventory at her store. As a result of the fraud, Tyler was responsible for causing a $408,979.76 loss to the food stamp program. On four occasions, Tyler also transferred more than $10,000 in food stamp fraud proceeds through a financial institution, in violation of federal money laundering statutes.
Under federal law, Tyler must serve 85 percent of her prison sentence and will be under supervision of the U.S. Probation Office for three years following her term of incarceration.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, Tracey D. Montaño, Special Agent in Charge, IRS Criminal Investigation, Nashville Field Office, and Chief Brian Carter of the Covington Police Department, announced the sentence today.
IRS Criminal Investigation, United States Department of Agriculture, Kentucky Cabinet for Health and Family Services and the Covington Police Department conducted the investigation. Assistant U.S. Attorneys Kathryn Anderson and Elaine Leonhard represented the federal government.
Convenience store owners sentenced for food stamp fraud and identity theftRead the Press Release
ATLANTA – Jonathan and Stephanie Dupiton have been sentenced for using stolen identities to steal over $395,000 from the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP). The defendants illegally obtained SNAP benefits for themselves, and then cashed them at stores they owned in several Georgia communities.
“These defendants subverted the SNAP program to line their own pockets and also used hundreds of stolen identities to commit their crimes,” said U.S. Attorney John Horn. “They used the SNAP system as an ATM for their personal gain, diverting critical benefits that help those who need assistance in our communities.”
“The United States Department of Agriculture, Office of Inspector General- Investigations, actively investigates allegations of Supplemental Nutritional Assistance Program (SNAP) fraud. These defendants stole unsuspecting people’s identities, used those identities to fraudulently acquire EBT cards, and misused thousands of dollars worth of SNAP benefits to enrich themselves at the expense of American taxpayers. Collectively, this type of fraudulent activity undermines this vital program by misdirecting millions of dollars of taxpayer funds from the purposes they were intended,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG. “We would like to thank U.S. Attorney’s Office for aggressively prosecuting perpetrators of fraud and sending a strong message that illegally profiting by defrauding USDA programs will not be tolerated.”
“This investigation was a great example of partnership and cooperation between our Department and federal authorities,” said Georgia Department of Human Services Commissioner Robyn A. Crittenden. “DHS has zero tolerance for fraud, waste and abuse in the programs it administers. After internal efforts to detect fraud, DHS was able to work with the U.S. District Attorney’s Office in bringing these individuals to justice. Georgia’s most vulnerable citizens need these valuable resources, and we are committed to ensuring the integrity of SNAP in Georgia.”
According to U.S. Attorney Horn, the charges and other information presented in court: From July 2014 through October 2015, Jonathan and Stephanie Dupiton owned and operated two convenience stores in Cobb County, Georgia; J. Good Groceries in Mableton, and Stephanie’s Groceries in Austell. The USDA’s Food and Nutrition Service manages and funds SNAP, formerly known as the Food Stamp Program, with the purpose of alleviating hunger and malnutrition among low-income families. The Georgia Department of Human Services (DHS) administers the SNAP program.
The defendants used stolen identities to apply for SNAP benefits instead of accepting SNAP benefits from qualified recipients to purchase food. These SNAP benefits were loaded on EBT cards, which are similar to debit cards. The defendants directed DHS to mail hundreds of EBT cards to addresses they controlled. The Dupitons then collected and swiped the fraudulent SNAP cards at their convenience stores. Over $800,000 in SNAP payments were deposited in the defendants’ bank accounts. DHS and USDA were able to link $395,000 of those funds to 321 fraudulent SNAP accounts.
Jonathan Dupiton, 28, of Atlanta, Georgia, was sentenced to three years, nine months in prison, and Stephanie Dupiton, 24, also of Atlanta, Georgia, was sentenced to six months in prison. Both defendants were also sentenced to three years of supervised release, a special assessment of $100, and ordered to pay $395,388.01 in restitution. Both defendants were convicted of conspiracy to commit wire and mail fraud in April 2017, after pleading guilty to these charges. Jonathan Dupiton was also convicted of aggravated identity theft, which carries a mandatory two-year consecutive sentence.
The U.S. Department of Agriculture, Office of Inspector General and the Georgia Department of Human Services investigated this case.
Assistant U.S. Attorney Jeffrey Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Commercial Fisherman Pleads Guilty to Illegally Harvesting and Selling Atlantic Striped Bass and to Federal Tax ViolationsRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina John Stuart Bruce announced that today in federal court, GASTON L. SAUNDERS, JR., 53, of Wanchese, North Carolina, pled guilty to federal charges regarding the illegal harvest and sale of Atlantic striped bass from federal waters off the coast of North Carolina. SAUNDERS also plead guilty to one count of federal tax evasion and three counts of failure to file federal taxes. In the plea agreement, the defendant agreed to pay restitution in the amount of $544,946.35 payable to the Internal Revenue Service.
According to the indictments and superseding criminal information in the public records in related cases, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic striped bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on the harvesting of Atlantic striped bass in the United States’ Exclusive Economic Zone (“EEZ”) which spans between 3 miles and 200 miles seaward of the U.S. Atlantic coastline.
Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, (the fishing vessel Lady Samaira) and boarded the vessel. Officers found 173 illegally harvested Atlanic Striped Bass on board.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. The electronic mail retrieved, which included captains sharing LORAN coordinates and Buoy Numbers where they successfully harvested Atlantic striped bass, combined with the vessel monitoring track lines, illustrated a concerted effort by various commercial fisherman to illegal target and harvest that species from the EEZ. The review also revealed multiple years of illegal harvests by commercial trawlers.
Based on its review, NOAA determined that between January 19, 2009, and February 9, 2010, SAUNDERS, then Captain of the Little Sammie, a commercial trawler, harvested approximately 13,613 pounds of Atlantic striped bass from the EEZ, which he sold to a fish dealer in Engelhard, North Carolina. The estimated fair market retail value of the 13,613 pounds of illegally harvested fish exceeds $108,000. SAUNDERS also submitted false statements to NOAA for two of three fishing trips, falsely claiming he caught the fish in state waters.
Further investigation revealed that despite earning a substantial income from his commercial fishing, SAUNDERS failed to file a tax return since 1999. Starting in 2010, and in order to avoid IRS’ collection efforts, SAUNDERS directed his wife to deposit his fishing income into their joint bank account, then withdraw the money the same day and use those funds to purchase cashier’s checks, primarily in denominations of less than $10,000 each. His wife would place the cashier’s checks in a safe deposit box, cashing them over the years as the couple needed money. Between October 2010 and August 2014, SAUNDERS caused his wife to deposit at least 20 fishing income checks totally $432,419.20 and convert the money to cashier’s checks. In total, SAUNDERS and his wife failed to pay $544,946.35 in federal taxes.
During the winter 2010 Atlantic striped bass ocean trawl season, it is estimated that over 90,000 pounds of North Carolina’s 160,160 ocean trawl quota were taken illegally from the EEZ.
Eleven other commercial fishermen previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-BO, United States v. James Ralph Craddock, No. 2:15-CR-7-BO, United States v. Joseph Howard Williams, No. 4:15-CR-2-BO; United States v. Ellis Leon Gibbs, Jr., No. 4:14-CR-9-BO, United States v. Dwayne J. Hopkins, 2:15-CR-8-BO; United States v. John Roberts¸ No. 4:15-CR-3-BO; United States v. David Saunders, Jr., No. 2:15-CR-2-B0; United States v. Michael Potter, No. 2:15-CR-6-BO; United States v. Bryan H. Daniels, No. 4:14-CR-11-BO; United States v. Stephen Daniels, No. 2:15-CR-4-BO; and United States v. James K. Lewis, Jr., No. 4:14-CR-10-BO.
“These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be enforced vigorously,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “We are pleased to partner with our colleagues in DOJ’s Environmental Crimes Section to prosecute these important cases.”
Manny Antonaras, Deputy Speical Agent in Charge for NOAA’s Southeast Division’s Office of Law Enforcement stated, "NOAA's Office of Law Enforcement is committed to ensuring a level playing field for law abiding fishermen and coastal communities that rely upon our nation’s living marine resources. When people cheat the system, it hurts those who follow the rules the most."
“Tax evasion is not a victimless crime. Saunders’ attempt to evade tax by hiding income and failing to file tax returns is a theft from the American public who are paying their fair share,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means.”
A sentencing hearing will be set at a later date. GASTON SAUNDERS faces a total maximum sentence of 13 years imprisonment and/or a $800,000 fine.
The Lacey Act investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. The tax investigation was conducted by the Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Senior Litigation Counsel Banumathi Rangarajan of the United States Attorney’s Office for the Eastern District of North Carolina, and Trial Attorney Shennie Patel of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Collin County Man Guilty in Conspiracy to Illegally Export Radiation Hardened Integrated Circuits to Russia and ChinaRead the Press Release
PLANO, Texas – A 62-year-old Plano, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston and Acting Assistant Attorney General for National Security Dana J. Boente today.
Peter Zuccarelli pleaded guilty to conspiring to smuggle and illegally export from the U.S., radiation hardened integrated circuits (RHICs) for use in the space programs of China and Russia, in violation of the International Emergency Economic Powers Act (IEEPA). The plea was entered today before U.S. Magistrate Judge Kimberly Priest-Johnson.
Zuccarelli pleaded guilty to engaging in a conspiracy to smuggle and illegally export from the U.S. items subject to IEEPA, without obtaining licenses from the Department of Commerce. According to the allegations contained in the Information filed against Zuccarelli and statements made in court filings and proceedings, including today’s guilty plea:
Between approximately June 2015 and March 2016, Zuccarelli and his co-conspirators agreed to illegally export RHICs to China and Russia. RHICs have military and space applications, and their export is strictly controlled.
In furtherance of the conspiracy, Zuccarelli’s co-conspirator received purchase orders from customers seeking to purchase RHICs for use in China’s and Russia’s space programs. Zuccarelli received these orders from his co-conspirator, as well as payment of approximately $1.5 million to purchase the RHICs for the Chinese and Russian customers. Zuccarelli placed orders with U.S. suppliers, and used the money received from his co-conspirator to pay the U.S. suppliers. In communications with the U.S. suppliers, Zuccarelli certified that his company, American Coating Technologies was the end user of the RHICs, knowing that this was false. Zuccarelli received the RHICs he ordered from U.S. suppliers, removed them from their original packaging, repackaged them, falsely declared them as “touch screen parts,” and shipped them out of the U.S. without the required licenses. He also attempted to export what he believed to be RHICs. In an attempt to hide the conspiracy from the U.S. government, he created false paperwork and made false statements.
At sentencing, Zuccarelli faces a maximum statutory term of five years imprisonment and a maximum fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the defendant’s sentence will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Dallas and Denver Offices of the Department of Homeland Security, Homeland Security Investigations; the Federal Bureau of Investigation; Internal Revenue Service-Criminal Investigation; Postal Inspection Service; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and the Department of Defense, Defense Criminal Investigative Service. This case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas together with the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.
Charleston felon sentenced to federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to two years and nine months in federal prison for a gun charge, announced United States Attorney Carol Casto. Re’Shaun Lamonte Wilborne, 31, previously pleaded guilty to being a felon in possession of a firearm.
Wilborne admitted that on October 13, 2016, he possessed a Taurus, Model PT92AF, 9x19mm semiautomatic pistol and several boxes of ammunition. An officer with the Metropolitan Drug Enforcement Network Team discovered the handgun in Wilborne’s backpack in a Motel 6 on MacCorkle Avenue in Charleston. Three days later, on October 16, 2016, a Charleston Police Department officer was dispatched to the 700 block of Central Avenue in Charleston in reference to two individuals behind a bar fighting, one of whom was later identified as Wilborne. When Wilborne saw the officer, he began to flee. The officer caught up to Wilborne around the 400 block of Elm Street and in a search of Wilborne incident to arrest, law enforcement recovered a Glock, Model 29, 10mm semiautomatic pistol. After a check of the gun’s serial number, law enforcement confirmed that the firearm was stolen. Wilborne was prohibited from possessing any firearm under federal law because of a conviction for second degree sexual assault in 2004 in Fayette County Circuit Court. As part of the plea agreement, Wilborne admitted to all of the criminal conduct charged in the indictment.
The Metropolitan Drug Enforcement Network Team, the Charleston Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Clint Carte is responsible for the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Bullhead Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Bullhead, South Dakota, woman convicted of Child Abuse was sentenced on August 1, 2017, by U.S. District Judge Charles B. Kornmann.
Alyssa Oka, age 28, was sentenced to 18 months in custody, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Oka was indicted by a federal grand jury on February 15, 2017. She pled guilty on May 4, 2017.
The conviction stems from an incident on June 3, 2015, when BIA officers responded to a call at a residence in Bullhead, South Dakota. As they got there, a young child came up to them and stated his mother, Oka, the Defendant, had just beat him up. The victim stated that he left his mother laying on the ground by the walking bridge in town. Officers were unable to locate her there. The officers then proceeded to Oka’s residence, at which time Oka began shouting at them from across the street. Oka was observed to be staggering as she attempted to walk towards them.
Oka was placed in the back of the patrol vehicle while the victim was interviewed and informed the officers that he was struck on the left side of his face. When one of the officers examined the child, he noted discoloring to the face. Photographs were taken and Oka was placed under arrest.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Oka was immediately turned over to the custody of the U.S. Marshals Service.Bullhead Man Sentenced for AssaultsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Bullhead, South Dakota, man convicted of two counts of Domestic Assault by an Habitual Offender was sentenced on August 1, 2017, by U.S. District Judge Charles B. Kornmann.
Dana Yellow Earrings, age 44, was sentenced to 37 months in custody in each count to be served concurrently, 3 years of supervised release on each count to be served concurrently, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Yellow Earrings was indicted by a federal grand jury on February 15, 2017. He pled guilty on May 5, 2017.
The conviction stems from an incident on September 11, 2016, when Yellow Earrings went to the home of the victim, and angrily confronted her at her home in Bullhead, South Dakota. Yellow Earrings became more irate and physically assaulted the victim. He then left the residence and attempted to break the windows out of a vehicle outside the residence.On February 6, 2016, Yellow Earrings was walking across a bridge in Bullhead, South Dakota, and came across the victim walking across the bridge in the opposite direction. He and the victim began to argue and Yellow Earrings struck the victim with a beer can, knocking her to the ground. As the victim was laying on the ground, Yellow Earrings began to kick her in the abdomen. A person who observed the incident managed to distract Yellow Earrings, allowing the victim to flee. He was later apprehended.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Yellow Earrings was immediately turned over to the custody of the U.S. Marshals Service.Brockton Man Sentenced for Dealing Heroin and FentanylRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for distributing heroin and fentanyl.
Angelo Pina, 26, was sentenced by U.S. District Court Judge Denise J. Casper to 30 months in prison and three years of supervised release. In April 2017, Pina pleaded guilty to one count of distribution of heroin and fentanyl and two counts of distribution of heroin.
From December 2015 to August 2016, law enforcement conducted an investigation into heroin and fentanyl suppliers in Holbrook and surrounding communities. An undercover officer was introduced to Pina, and on five dates between January and June 2016, the undercover officer made five controlled purchases of heroin and fentanyl from Pina. In addition, the investigation revealed that the cellular telephone used by Pina had, on average, more than 500 calls and texts per day over an 11-month period, indicative of more extensive drug dealing, and that his cellular phone had the contact information of over a dozen people who suffered fatal or non-fatal overdoses in 2015 and 2016, reflecting the grave danger posed by heroin and fentanyl.
Acting U.S. Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The investigation was led by the Organized Crime Drug Enforcement Task Force. Assistant U.S. Attorney Theodore Heinrich of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Bloods Gang Member Sentenced to 18 Years in Prison for Firearms and Drug CrimesRead the Press Release
Maurice Donnell Williams, aka Reecy, 23, of Nashville, Tenn., was sentenced yesterday in U.S. District Court, to 18 years in prison, for gun and drug crimes, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Williams was indicted by a federal grand jury in February 2017 and pleaded guilty in May of this year.
“This is an example of the importance of citizens being engaged in efforts to reduce crime,” said Acting U.S. Attorney Jack Smith. “Here, a citizen saw a concerning post on social media and reported it. The rapid response and investigation by law enforcement has now resulted in a dangerous criminal being removed from the community for a long period of time. Removing repeat offenders from our communities enhances our ability to combat street gangs and the violence often associated with illegal guns and drugs. I encourage our citizens to continue to assist law enforcement by reporting criminal activity when they become aware of it.”
According to court documents, Williams is a Bloods street gang member and had been convicted at the state level in 2012 for facilitation of aggravated robbery and in 2014 he was convicted of aggravated assault with a deadly weapon. Williams was sentenced to prison on these charges and was released in March 2016.
In October 2016, Williams was arrested by Metropolitan Nashville Police Officers after fleeing a traffic stop near the East Community Center and the Explore! Community School in East Nashville. While fleeing from police, Williams discarded a jacket which held a loaded Kel-Tec 9mm pistol, cocaine, marijuana and digital scales.
On December 28, 2016, while out on bond for the October arrest, Williams was again arrested in the Cayce Homes area, after Nashville Police Officers found him with a loaded Ruger pistol in his pants. Officers had been monitoring surveillance cameras in the area after a Facebook Live video was forwarded to the Mayor’s Office, which showed several youths with multiple firearms in the Cayce Homes area. After this arrest, Williams again posted bond and was released from custody.
A subsequent review of the Williams’ charges and criminal history, as part of a joint effort by local and federal law enforcement to reduce violent crime in public housing areas, resulted in the federal indictment and Williams was held in federal custody without bond.
“Williams’ prior arrests and convictions over the years obviously did not dissuade him from continued criminal activity, which put persons in the Cayce community at risk,” Chief Steve Anderson said. “I am grateful to the United States Attorney’s Office and the ATF for their valued partnership as we address violent felons who pose a danger to our citizens.”
In imposing the 18-year prison sentence, Chief U.S. District Judge Waverly Crenshaw noted the prior convictions for violent offenses and the danger Williams posed to the public, due to his history of repetitive armed offenses.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Metropolitan Nashville Police Department. The case was prosecuted by Assistant U.S. Attorney Sunny A.M. Koshy.