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20 September 2017
Alabama Man Sentenced to 90 Years for Producing Child Pornography Involving Multiple VictimsRead the Press Release
An Alabama man was sentenced today to 90 years in prison and 10 years of supervised release for production of child pornography involving seven minor victims, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Jay E. Town of the Northern District of Alabama.
Gregory Jerome Lee, 54, formerly of Cullman County, Alabama, pleaded guilty in January 2017 to four counts of production of child pornography. U.S. District Judge Virginia Emerson Hopkins presided over the sentencing in Birmingham, Alabama.
According to court documents, beginning in September 1996 and continuing for over a decade, until August of 2007, Lee and his co-conspirators belonged to a group of sophisticated offenders who gathered in secret, password-protected, chat rooms to discuss their sexual interest in minors and the real-life sexual abuse of children being perpetrated by several group members. Lee and others also used these chat rooms to advertise, distribute, receive, and possess child pornography. Court documents state that from September of 1996 through December of 2004, Lee sexually abused at least seven different minors and that he frequently produced images and videos depicting his sexual exploitation of these children which he shared with his co-conspirators.
Trial Attorney Ralph Paradiso of the Child Exploitation and Obscenity Section (CEOS) of the Justice Department’s Criminal Division and Assistant U.S. Attorney Daniel Fortune of the Northern District of Alabama prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
19 September 2017
“Protecting Our Tribal Communities: Responding to Drugs, Violent Crime, and Public Corruption” Meeting to be held in Porcupine on September 28Read the Press Release
United States Attorney Randolph J. Seiler announced that a half-day meeting addressing drugs, violent crime, and public corruption in Indian country will be held in Porcupine, South Dakota, on Thursday September 28, 2017. The event is hosted by the U.S. Attorney’s Office, Oglala Sioux Tribe, Bureau of Indian Affairs, and the Federal Bureau of Investigation.
The event will feature presentations by the U.S. Attorney’s Office and the Department of Interior on addressing public corruption in Indian country, FBI and BIA officials speaking about methamphetamine and the pervasiveness of the problem, and a segment on re-entry programs and services.
The event will be held at the Elderly Building in Porcupine, located at 123 Porcupine. The conference will run from 3:30 pm – 5:30 pm. The public is welcome and a free evening meal will be served.
Please see the attached flyer for a complete list of speakers and topics.
Winnebago Man Sentenced to 30 Months for Failing to Register as a Sex OffenderRead the Press Release
Acting U.S. Attorney Robert C. Stuart announced Tuesday that Duane L. Levering, 32, of Winnebago was sentenced in federal court in Omaha, Nebraska, for failing to register as a sex offender. The Honorable John M. Gerrard, United States District Court Judge, sentenced Levering to 30 months’ imprisonment. After his release from prison, Levering will serve a five-year term of supervised release.
Levering was convicted in the United States District Court for the District of Nebraska in 2005 for the aggravated sexual abuse of a minor. He served an 87-month sentence. In 2013, he was convicted for failing to register as a sex offender and served an 18-month term of imprisonment.
In January, 2017, Levering registered as a sex offender in Sioux City, Iowa. The address he registered was non-existent. He was found to be living in Winnebago, Nebraska, and was not registered with the Winnebago Tribe or the State of Nebraska as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by U.S. Marshals Service.
Weapons Smuggler Sent to PrisonRead the Press Release
McALLEN, Texas – A 52-year-old Mexican citizen has been ordered to federal prison for attempting to smuggle firearm parts kits, components, receivers and magazines to Mexico, announced Acting U.S. Attorney Abe Martinez. Alejandro Cavazos, 52, pleaded guilty Feb. 3, 2017.
Today, U.S. District Judge Randy Crane sentenced Cavazos to 48 months in federal prison. Not a U.S. citizen, Cavazos is expected to face deportation proceedings following his release from prison. At the hearing, the court heard that Cavazos had taken possession of approximately 248 parcels of firearm parts from different Internet-based vendors since June 2014.
The investigation began in May 2016 when authorities identified Cavazos as having purchased more than $100,000 worth of firearms parts and accessories from Internet-based dealers. The purchases included AR-15 parts kits and unfinished AR-15 lower receivers.
The investigation revealed Cavazos would coordinate the delivery of the firearm parts to a local reshipment company where Cavazos would then retrieve the merchandise and smuggle it into Mexico. In October 2016, federal agents observed Cavazos retrieve 13 parcels from a local reshipment company and place the items in his vehicle. The parcels, destined for Mexico, were subsequently seized and found to contain 100 AR-type charging handles, 30 AR-15 lower receivers, 25 AR-15 7.62 x 39 mm magazines, 18 AR-15 assembly kits and 200 detachable AR-15 carry handles.
Cavazos will remain in custody 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 the Bureau of Alcohol, Tobacco, Firearms and Explosives and conducted the investigation. Assistant U.S. Attorney Rolando Cantu prosecuted the case.
United States Files Denaturalization Complaints in Florida, Connecticut and New Jersey Against Three Individuals Who Fraudulently Naturalized After Having Been Ordered Deported Under Different IdentitiesRead the Press Release
The United States today filed civil denaturalization complaints in federal court in the Middle District of Florida, District of Connecticut and District of New Jersey, against three individuals who allegedly obtained their naturalized U.S. citizenship by fraud, the U.S. Department of Justice and U.S. Citizenship and Immigration Services (USCIS) announced. Two Pakistan-born and one India-born individuals’ alleged frauds involved concealing their prior orders of exclusion and deportation under different identities than the identity under which they naturalized.
“The Justice Department is committed to preserving the integrity of our nation’s immigration system, and in particular, the asylum and naturalization processes,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The civil complaints charge that defendants in these cases exploited our immigration system and unlawfully secured the ultimate immigration benefit of naturalization. The filing of these cases sends a clear message to immigration fraudsters – if you break our immigration laws, we will prosecute you and denaturalize you.”
The three cases, United States of America v. Parvez Manzoor Khan (M.D. Fla.); United States of America v. Rashid Mahmood (D. Conn.); and United States of America v. Baljinder Singh (D.N.J.) were referred to the Department of Justice by USCIS and identified as part of Operation Janus. A Department of Homeland Security initiative, Operation Janus identified about 315,000 cases where some fingerprint data was missing from the centralized digital fingerprint repository. Among those cases, some may have sought to circumvent criminal record and other background checks in the naturalization process. These cases are the result of an ongoing collaboration between the two departments to investigate and seek denaturalization proceedings against those who obtained citizenship unlawfully.
“Naturalization is one of the most sacred honors bestowed by our nation,” said Acting USCIS Director James W. McCament. “USCIS takes great care and responsibility in determining to refer a case for denaturalization proceedings. We do so to send the strong message that individuals who seek to defraud the United States by obtaining naturalization unlawfully will be targeted to have their U.S. citizenship stripped. I am grateful for the USCIS team who devoted countless hours to the painstaking work of uncovering fraud in each of these cases.”
A description of the three cases and the allegations of the United States are:
Parvez Manzoor Khan
Parvez Manzoor Khan aka Mohammad Akhtar and Jaweed Khan, 60, a native of Pakistan, arrived at Los Angeles International Airport on Dec. 7, 1991, bearing a Pakistani passport in the name of Mohammad Akhtar. Immigration officials determined that the photo in the passport had been altered. Khan then applied for asylum, claiming his true name was Jaweed Khan. Khan failed to appear in immigration court and was ordered excluded and deported on Feb. 26, 1992. He subsequently failed to surrender for deportation. After having married a U.S. citizen, Khan, using the alias Parvez Manzoor Khan, was granted permanent resident status in 2001. He naturalized on July 3, 2006. Khan has been residing in Branford, Florida.
This case was investigated by USCIS and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case is being prosecuted by Counsel for National Security Aaron Petty of OIL-DCS’s National Security and Affirmative Litigation Unit (NS/A Unit), with support from USCIS Office of the Chief Counsel, Southeast Law Division.
Rashid Mahmood
Rashid Mahmood aka Rashid Mehmood, 44, a native of Pakistan, arrived at John F. Kennedy International Airport in New York on July 9, 1992, and presented a fraudulent U.S. temporary resident card. He claimed his name was Rashid Mehmood. He was placed in exclusion proceedings, but failed to appear for his immigration court hearing and was ordered excluded and deported on Oct. 13, 1992. Three years later, on Oct. 10, 1995, he filed for adjustment of status under the surname Mahmood based on his marriage to a U.S. citizen, who filed a visa petition on his behalf. He naturalized under the name Rashid Mahmood on June 3, 2005. He also lied on his naturalization form failing to disclose that he claimed he was a member of the Pakistan People’s Party when he applied for entry into the United States in 1992. Mahmood has been residing in New Britain/Hartford, Connecticut.
This case was investigated by USCIS and OIL-DCS. The case is being prosecuted by Counsel for National Security Joseph F. Carilli, Jr. of NS/A Unit and Assistant U.S. Attorney Carolyn Ikari for the District of Connecticut, with support from Associate Counsel Cortney V. Price of USCIS Office of the Chief Counsel, Central Law Division.
Baljinder Singh
Baljinder Singh aka Davinder Singh, 43, a native of India, arrived at San Francisco International Airport on Sept. 25, 1991, without any travel documents or proof of identity. He claimed his name was Davinder Singh. He was placed in exclusion proceedings, but failed to appear for his immigration court hearing and was ordered excluded and deported on Jan. 7, 1992. Four weeks later, on Feb. 6, 1992, he filed an asylum application under the name Baljinder Singh. He claimed to be an Indian who entered the United States without inspection. Singh abandoned that application after he married a U.S. citizen, who filed a visa petition on his behalf. Singh naturalized under the name Baljinder Singh on July 28, 2006. Singh has been residing in Carteret, New Jersey.
This case was investigated by USCIS and OIL-DCS. The case is being prosecuted by Counsel for National Security Aaron Petty of NS/A Unit, with support from Deputy Chief Patrice Rodman of USCIS Office of the Chief Counsel, Northeast Law Division.
The civil complaints contain charges against defendants that include illegal procurement of naturalization by not being lawfully admitted for permanent residence (fraud or willful misrepresentation), illegal procurement of naturalization due to lack of good moral character (false testimony) and procurement of U.S. citizenship (concealment of a material fact or willful misrepresentation; false testimony).
The claims made in the complaints are allegations only, and there have been no determinations of liability.
Two Federal Inmates Charged with Assault on Another InmateRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that two inmates at the United States Penitentiary, Canaan, Waymart, Pennsylvania, were indicted by a federal grand jury for assaulting another inmate with a homemade weapon.
According to United States Attorney Bruce D. Brandler, the indictment charges Michael Caraballo, age 34, and Victor Lopez, age 28, with assault with a dangerous weapon and aiding and abetting. The charges stem from an incident in February 2017, in which Caraballo and Lopez allegedly assaulted another inmate with a sharpened piece of metal commonly known as a “shank.” The indictment also charges Caraballo with possessing contraband in prison.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
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 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Twenty-One Defendants Charged in Federal Court with Conspiracy to Deliver Cocaine, Heroin and MethamphetamineRead the Press Release
United States Attorney Gregory Haanstad announced today that twenty-one (21) defendants have been charged in federal court with conspiracy related to the distribution of cocaine, heroin and methamphetamine. The nineteen (19) individuals below have been arrested and are in custody:
Luis F. Gomez, age 39
Pablo Hidalgo-Sanchez, age 28
Fernando Reyes, age 39
Mario Esquivel-Sotelo, age 24
Oscar Garnica-Manriquez, age 32
Juan Avina, age 32
Jonathan Martinez-Acosta, age 36
Helder Rodriguez, age 39
Sergio Camacho-Gonzalez, age 20
Ricardo Cervantes-Vargas, age 34
Carlos Flores-Gomez, age 24
Ricardo Rodriguez, age 32
Kristian Yanez, age 24
Luis Torres, age 24
Bryan Banks, age 41
Dante Williams, age 44
Tommie Cole, age 36
Alejandro Casteneda, age 28
Maria Gomez-Gonzalez, age 31
All of the defendants currently reside in the greater Milwaukee area. This case is a part of a long-term federal drug and money laundering investigation based out of Milwaukee. The federal investigation has led to the seizure of multiple kilograms of cocaine and methamphetamine and the seizure of over $800,000 in United States currency.
The defendants are charged with drug offenses including: distribution of and possession with intent to distribute controlled substances and conspiracy. If proven that the offenses involved more than a kilogram of heroin, and / or five kilograms or more of cocaine each defendant will face up to life in prison, with a mandatory minimum sentence of ten years in prison.
Today, law enforcement officers arrested nineteen (19) of these defendants. In addition to today’s arrests, law enforcement officers executed 13 federal search warrants in Milwaukee targeting members of this organization. Approximately 200 federal, state and local officers participated in these arrests and searches. Law enforcement recovered approximately 1½ kilos of heroin, two (2) kilos of cocaine, 50 pounds of marijuana, 12 firearms and one assault rifle, $500,000 in United States currency, six vehicles, a money counter, kilo press and drug paraphernalia.
In making today’s announcement about the federal charges, searches, and arrests, United States Attorney Haanstad stated: “The large-scale distribution of cocaine, heroin, methamphetamine, and other controlled substances presents a clear, significant danger to public safety and public health. The pernicious effects of large-scale organizations like this one are not only felt locally, but also extend beyond state and international borders. These charges and this prosecution are the result of an aggressive, coordinated approach to dismantling drug-trafficking organizations, and the United States Attorney’s Office is committed to continuing to work with our law enforcement partners to attack these public safety and public health threats.” United States Attorney Haanstad specifically commended the local, state, and federal law enforcement officers and units involved in the investigation for their hard work and inter-agency cooperation.
“When we look for the source of the misery and loss of life caused by heroin, fentanyl and other drugs, we need look no further than these and other drug traffickers who profit by exploiting the vulnerable. The dismantlement of multiple large-scale drug trafficking organizations, in partnership with state and local law enforcement and the U.S. Attorney’s Office, has big impact and makes the Greater Milwaukee Area safer and healthier,” remarked Robert Bell, Agent in Charge of Drug Enforcement Administration operations in Wisconsin.
The investigating agencies include the Drug Enforcement Administration, Milwaukee Police Department, Wisconsin Department of Justice - Division of Criminal Investigation, North Central High Intensity Drug Trafficking Area, Department of Homeland Security - Homeland Security Investigation / Enforcement Removal Operations, Bureau of Alcohol, Tobacco, and Firearms, Federal Bureau of Investigation, United States Marshals Service, , Wisconsin State Patrol, Waukesha County Sheriff’s Department, Waukesha County Metro Drug Enforcement Unit, Wauwatosa Police Department, Greenfield Police Department, West Allis Police Department, South Milwaukee Police Department and the Oak Creek Police Department.
This case is being prosecuted by Assistant United States Attorney Mario Gonzales.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
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Three Head to Federal Prison for Trafficking Drugs Through International Bridge and CheckpointRead the Press Release
LAREDO, Texas – Two men and one woman have been ordered to prison in separate, but similar crimes involving the smuggling of drugs, announced Acting U.S. Attorney Abe Martinez.
Isabel Gonzalez, 41, and Pedro Salas III, 33, each pleaded guilty in June 2017 to conspiracies to import liquid methamphetamine and marijuana, respectfully, while Miguel Angel Bautista-Anguiano, 25, entered his plea in May 2017 to conspiracy to import and importation of cocaine.
Today, U.S. District Judge Diana Saldana sentenced Gonzales to 46 months in federal prison. Judge Saldana also sentenced Salas today, to a 24-month-term of imprisonment. Bautista-Anguiano was sentenced in U.S. District Judge Marina Garcia Marmolejo’s court and received a sentence of 60 months. Salas and Gonzalez were further ordered to serve three years of supervised release. Not a U.S. citizen, Bautista-Anguiano is expected to face deportation proceedings following his release.
In her case, Gonzalez, of Houston, took part in a conspiracy to smuggle 32 kilograms of liquid methamphetamine through the Gateway to the Americas Port of Entry International Bridge II in Laredo. She was driving a 1999 Ford Explorer with the drugs hidden in a compartment inside the gas tank.
In a separate case that occurred at the same bridge, Miguel Angel Bautista-Anguiano, of Nuevo Laredo, Tamaulipas, Mexico, was driving a 1999 Mercury Cougar on Jan. 20, 2017, when he participated in a conspiracy to smuggle 11 kilograms of cocaine. The cocaine was found in the rear quarter panels of the vehicle.
The third case was initiated on March 10, 2017, when Salas, of Laredo, smuggled 103.6 kilograms of marijuana through the IH-35 checkpoint near Laredo. He was driving a 2010 Ford F-150. Authorities soon found the marijuana inside a tool box in the bed of the truck.
All three defendants have been and will remain in custody 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 both investigations at the International Bridge, while the Drug Enforcement Administration and Border Patrol worked the case at the checkpoint. Assistant U.S. Attorney José Angel Flores Jr. prosecuted all three cases.
Syracuse Woman Charged with Wire Fraud and Theft of Government FundsRead the Press Release
SYRACUSE, NEW YORK – Linda Sue Parnell, age 62, of Syracuse, New York, was arraigned yesterday on an indictment charging her with four counts of wire fraud and one count of theft of government money, announced Acting United States Attorney Grant C. Jaquith.
The indictment alleges that Parnell, who was formerly employed as a nurse by the Veterans Administration, submitted false claims for reimbursement from the U.S. Department of Labor, Office of Workers’ Compensation Programs for more than five years. According to the indictment, Parnell fraudulently submitted claims that she traveled to the YMCA of Greater Syracuse for physical rehabilitation, when, in fact, she did not, which caused her to receive more than $72,000 to which she was not entitled. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Parnell faces up to 20 years in prison on each count of wire fraud, and up to 10 years in prison on the count of theft of government money. She also could be subject to a fine of up to $250,000 and a term of supervised release of up to 3 years on each of the five criminal charges. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Parnell was arraigned yesterday in Syracuse, New York, before United States Magistrate Judge Thérèse Wiley Dancks, and released pending a trial before United States District Court Judge David N. Hurd.
This case is being investigated by the Department of Veterans Affairs Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
Statement on Today's State Arrest of Kenneth GleasonRead the Press Release
BATON ROUGE, LA - Acting U.S. Attorney Corey Amundson made the following statement concerning today's arrest of Kenneth Gleason on two charges of first-degree murder by the Baton Rouge Police Department: "My office, together with the ATF and the FBI, will continue to support the outstanding state and local law enforcement efforts in this important matter. My thoughts and prayers are with the families and friends of the victims."
NOTE: The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Statement by Attorney General Sessions on the Confirmation of Solicitor General Noel FranciscoRead the Press Release
Attorney General Jeff Sessions issued the following statement on the Senate’s confirmation of Noel Francisco to be United States Solicitor General:
“I applaud the Senate for finally confirming Noel Francisco to be the United States Solicitor General.
“Noel is a brilliant and principled lawyer with an excellent record of appellate work. His reputation for skillful analysis and clear, forceful advocacy is indisputable, and he has been a consistent advocate for the rule of law and a steadfast defender of the Constitution.
“I am confident that Noel will continue to be a tireless champion for justice and look forward to him being a central figure in our commitment to the classical understanding of law and jurisprudence.”
Southern District of Florida, Along with Three Other U.S. Attorney Offices in Districts Affected by Hurricane Irma, Establishes Task Force to Combat Disaster Fraud and Urge the Public to Be Vigilant in Reporting Suspected FraudRead the Press Release
Miami, FL - The National Center for Disaster Fraud (NCDF) and the U.S. Attorney's Office for the Southern District of Florida, along with U.S. Attorney Offices in the District of Puerto Rico, Middle District of Florida, and Northern District of Florida announced the formation of task forces comprised of local, state and federal agencies in our respective areas to combat Hurricane Irma related illegal activity. The NCDF and U.S. Attorneys in these districts urge residents and businesses to immediately report suspected fraudulent activity relating to recovery and cleanup operations, fake charities claiming to be providing relief for victims, individuals submitting false claims for disaster relief and any other disaster fraud related activity.
The U.S. Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. In the wake of Hurricanes Harvey and Irma, the NCDF has already received more than 400 complaints. Examples of illegal activity being reported to the NCDF and law enforcement include:
Impersonation of federal law enforcement officials;
Identity theft;
Fraudulent submission of claims to insurance companies and the federal government;
Fraudulent activity related to solicitations for donations and charitable giving;
Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
Price gouging;
Theft, looting, and other violent crime
“Unfortunately, criminals can exploit disasters, such as Hurricanes Harvey and Irma, for their own gain by sending fraudulent communications through email or social media and by creating phony websites designed to solicit contributions,” said Acting Executive Director Corey R. Amundson of the National Center for Disaster Fraud. “Once the NCDF receives a complaint, it routes the complaints to the appropriate federal, state, or local law enforcement agency in the appropriate jurisdiction. In the process, we are able to de-conflict and identify trends, national schemes, and offenders operating in multi-jurisdictions. The Justice Department will aggressively pursue those who commit disaster fraud.”
“As our South Florida community recovers from Hurricane Irma, the U.S. Attorney’s Office for the Southern District of Florida and our law enforcement partners stand ready to investigate and prosecute in federal court anyone who seeks to re-victimize, defraud or exploit the individuals and businesses in need,” said Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida. “Our united enforcement front will work hard to combat criminal activity, including fraud schemes associated with the hurricane’s devastation. Our mission is to ensure that federal, state and local programs, as well as reputable public and charitable assistance initiatives reach those struck by the impact of our recent natural disaster and are not fraudulently diverted to the criminals’ pockets.”
“We will aggressively investigate and prosecute anyone who seeks to defraud or exploit the federal assistance programs established to help individuals, families, or businesses that have lost so much as a result of Hurricane Irma,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “Our Office will continue to protect the rights of our honest citizens affected by this disaster and ensure that they receive the necessary public and charitable assistance they deserve. If you suspect any fraud, we urge you to call the NCDF Hotline. Our efforts to combat fraud associated with Hurricane Irma will supplement the outstanding and ongoing efforts by the State of Florida and Florida Attorney General Pam Bondi.”
“Our efforts are directed at enforcing a zero tolerance policy,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “In the midst of the distress and losses caused by Hurricane Irma and the attending need for recovery and rebuilding, there can be no place for fraud and abuse.”
“We do not tolerate fraud,” said U.S. Attorney Christopher P. Canova for the Northern District of Florida. “Individuals, families, and businesses have suffered, and will continue to suffer, tremendous losses. Emergency funds are needed to help them get back on their feet. Dozens of agencies, investigators, and prosecutors are ready to respond to credible allegations of fraud and abuse. If you are aware of fraud, we urge you to call the National Disaster Fraud Hotline.”
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] (link sends e-mail).
Members of the public are reminded to apply a critical eye and do their due diligence before giving contributions to anyone soliciting donations on behalf of disaster victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Learn more about the NCDF at www.justice.gov/disaster-fraud. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Rochester Doctor Pleads Guilty to Illegally Distributing Controlled SubstancesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Clifford Jacobson, M.D., 67, of Rochester, NY, pleaded guilty to illegally distributing a controlled substance, before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Dr. Jacobson was a practicing psychiatrist. From 2014 to 2017, he sold prescriptions for Schedule IV controlled substances, including clonazepam, to undercover agents and patients who had no medical necessity for the drug but who sought to use it recreationally. The defendant charged his patients $120 for each illegal prescription.
The plea is the result of an investigation by Special Agents of the Drug Enforcement Administration, acting under the direction of James J. Hunt, New York Field Division, and investigators of the Medicaid Fraud Control Unit, acting under the direction of New York State Attorney General Eric Schneiderman.
Sentencing is scheduled for January 23, 2018, at 9:15 a.m. before Judge Siragusa.
Rochester Doctor Pleads Guilty to Illegally Distributing Controlled SubstancesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Clifford Jacobson, M.D., 67, of Rochester, NY, pleaded guilty to illegally distributing a controlled substance, before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Dr. Jacobson was a practicing psychiatrist. From 2014 to 2017, he sold prescriptions for Schedule IV controlled substances, including clonazepam (commonly known by its brand name Xanax), to undercover agents and patients who had no medical necessity for the drug but who sought to use it recreationally. The defendant charged his patients $120 for each illegal prescription.
The plea is the result of an investigation by Special Agents of the Drug Enforcement Administration, acting under the direction of James J. Hunt, New York Field Division, and investigators of the Medicaid Fraud Control Unit, acting under the direction of New York State Attorney General Eric Schneiderman.
Sentencing is scheduled for January 23, 2018, at 9:15 a.m. before Judge Siragusa.
Reading Man Linked to International Drug Conspiracy Sentenced to 13 Years in PrisonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Juan Mendez-Lazaro, age 37, of Reading, Pennsylvania, was sentenced on September 15, 2017, to serve 13 years in prison by U.S. District Court Judge Robert D. Mariani, for his role in a drug conspiracy that was responsible for distributing large quantities of heroin, cocaine, methamphetamine and other drugs during a four-year time period in Monroe, Carbon, Montgomery, and Berks Counties in Pennsylvania.
According to United States Attorney Bruce D. Brandler, the drug ring had sources of supply in Mexico and associates in Chicago who transported the drugs to sub-distributors in Pennsylvania.
Mendez-Lazaro previously admitted to distributing more than one kilogram of heroin (which is equivalent to 40,000 retail bags of heroin), more than five kilograms of cocaine, and more than 50 grams of methamphetamine during 2012 through 2014.
Mendez-Lazaro was indicted by a federal grand jury in March 2014, as a result of an investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, Berks County Detectives and Montgomery County Detectives. He was one of 12 people, including four Chicago-based associates, charged in the case. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Judge Mariani also ordered the defendant to serve five years on supervised release following his prison sentence.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Providence Man Pleads Guilty to Distributing HeroinRead the Press Release
BOSTON – A Providence, R.I., man pleaded guilty yesterday in federal court in Boston to federal drug charges.
Dennys Villalona, a/k/a Xavier Martinez-Gonzalez, 32, pleaded guilty to one count of possession with intent to distribute and distribution of heroin and one count of possession with intent to distribute and distribution of more than 100 grams of heroin. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Jan. 11, 2018.
In November 2016, a cooperating source introduced an undercover officer to Villalona for the purpose of supplying heroin to the undercover officer. On Nov. 17, 2016, Villalona and the undercover officer met in a restaurant parking lot in Foxboro where Villalona agreed to sell the undercover officer one kilogram of heroin for $55,000. He also stated that, if the undercover officer kept coming back and business was good, the price would drop to $50,000 or even less per kilogram. Two days later, Villalona and the undercover officer met again, and Villalona supplied the undercover officer with a nearly 10-gram sample of heroin. On Nov. 22, 2016, Villalona and the undercover officer met at a restaurant in Wrentham, where Villalona delivered a package containing 992 grams of heroin to the undercover officer. All three meetings were recorded.
The charge of possession with intent to distribute and distribution of heroin provides for a sentence of no greater than 30 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of $2 million. The charge of possession with intent to distribute and distribution of more than 100 grams of heroin provides for a mandatory minimum sentence of 10 years and up to a lifetime in prison, a minimum of eight years and up to a lifetime of supervised release, and a fine of $8 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Assistant U.S. Attorney Linda Ricci, Deputy Chief of Weinreb’s Narcotics and Money Laundering Unit, is prosecuting the case.
Physician Assistant at Orange County Clinic Convicted of Federal Drug Charges for Illegally Issuing Prescriptions without Medical NeedRead the Press Release
SANTA ANA, California – A federal jury has convicted a physician assistant who worked at a Fountain Valley medical clinic on federal drug trafficking charges for writing prescriptions for dangerous and addictive narcotics without a medical purpose.
Kaitlyn Phuong Nguyen, 32, of San Jose, California, was found guilty yesterday of 10 counts related to the illegal distribution of oxycodone, methadone and alprazolam. The trial jury heard evidence that four “patients” died of drug overdoses after obtaining prescriptions from Nguyen.
On the eve of Nguyen’s trial last week, the doctor who oversaw the clinic was sentenced to 70 months in prison after pleading guilty to two counts of illegal distribution of a controlled substance by a practitioner.
When he pleaded guilty earlier this year, Dr. Victor Boon Huat Siew admitted illegally prescribing oxycodone, methadone and alprazolam from his clinic from the beginning of 2009 through early 2015.
Siew, 66, of Laguna Beach, was sentenced by United States District Judge James V. Selna, who presided over Nguyen’s trial.
According to court documents and evidence presented during Nguyen’s trial, Siew and Nguyen issued prescriptions without a medical purpose in exchange for cash and insurance payments. “Many of the patients…had ‘red flags’ in their patient files, indicating that they were abusing their pain medication and should not have been given prescriptions,” according to a brief filed in relation to Nguyen’s trial.
Nguyen, who worked at the clinic in 2012, performed only cursory examinations on most “patients” prior to prescribing them narcotics. “Despite having a license to write prescriptions herself, defendant [Nguyen] usually used a prescription pad pre-signed by Siew (which was not a lawful practice) to prescribe addictive substances such as oxycodone, methadone and alprazolam,” according to the trial brief.
The most common drugs prescribed by Siew and his employees were oxycodone (best known under the brand name OxyContin), methadone (a synthetic opioid often used as a treatment for addiction to opioids such as heroin), and alprazolam (sold primarily under the brand name Xanax).
The jury found Nguyen guilty of conspiring to distribute controlled substances and nine counts of distribution of controlled substances. As a result of yesterday’s convictions, Nguyen will face a statutory maximum penalty of 140 years in federal prison when she is sentenced by Judge Selna on January 22.
A third defendant in the case – physician assistant Thanh Nha T. Pham, 31, of Fountain Valley, pleaded guilty to conspiracy to distribute controlled substances and is scheduled to be sentenced by Judge Selna on January 29.
This case is the result of an investigation by the Drug Enforcement Administration, the Fountain Valley Police Department and the California Department of Justice.
The case is being prosecuted by Assistant United States Attorneys Ann Luotto Wolf and Rosalind Wang of the Santa Ana Branch Office.
Philadelphia Man Charged with Social Security FraudRead the Press Release
John Robinson, 53, of Philadelphia, Pennsylvania, was charged by Indictment with three counts of wire fraud, one count of theft of government funds, and one count of Social Security fraud, announced Acting United States Attorney Louis D. Lappen. According to the Indictment[1], the defendant received retirement benefits intended for another person after that person’s death in October 1999. The defendant’s alleged actions resulted in a loss to the government of approximately $148,526.
If convicted, the defendant faces a term of imprisonment, a 3‑year period of supervised release, restitution to the government of $148,526, a $1,250,000 fine, and a $500 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
[1] An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Company to Pay $3.5 Million to Resolve Allegations It Caused Fire at FAA FacilityRead the Press Release
NEWARK, N.J. – A Pennsylvania company doing business in New Jersey will pay $3.5 million to resolve allegations that it caused a fire at the Federal Aviation Administration’s William J. Hughes Technical Center in Atlantic City, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
EDA Contractors Inc. (EDA), a corporation headquartered in Bensalem, Pennsylvania, received a government contract in March 2012 to perform roofing work at the FAA Technical Center and began work in May 2012. Part of the contract involved the replacement of a roof at Building 300 of the FAA Technical Center. On June 22, 2012, approximately half an hour after EDA’s workers finished work for the day, a fire engulfed the rooftop of Building 300, causing extensive damage.
The consent judgment agreed to by the United States and EDA and entered by the court resolves allegations that the negligence of EDA’s employees was the proximate cause of the fire.
Acting U.S. Attorney Fitzpatrick credited the Legal Office of the FAA Technical Center, under the direction of Diane Cherinchak Loughrin, and Senior Attorney William Sheehan and Program Analyst Brenda Martello, for their support in gathering information and providing substantial assistance during the litigation and settlement negotiations.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division in Newark.
Defense counsel: Floyd Cottrell Esq., Newark
Owner of Durable Medical Equipment Company Pleads Guilty to Health Care FraudRead the Press Release
WASHINGTON – Emeka H. Chijioke, 40, formerly of Atlanta, Ga., and Nigeria, pled guilty today to a federal charge of health care fraud stemming from a scheme in which he defrauded the District of Columbia’s Medicaid program out of more than $500,000.
The guilty plea was announced by U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
Chijioke pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Chijioke faces a likely range of 24 to 30 months in prison and a fine of up to $95,000. The plea agreement calls for Chijioke to pay $552,343 in restitution to the D.C. Medicaid program and an identical amount in a forfeiture money judgment. The Honorable Senior Judge Paul L. Friedman scheduled sentencing for Dec. 13, 2017.
Chijioke was arrested in December 2016 in Germany and extradited to the United States in April 2017 to face charges in an indictment returned in the District of Columbia.
According to a statement of offense submitted to the Court, Chijioke was the majority owner, registered agent, and chief executive officer of Mead Medical Group, LLC, a durable medical equipment company organized in Maryland. Mead Medical provided medical equipment supplies, including incontinence supplies and garments, to District of Columbia Medicaid recipients.
Beginning in 2007 and continuing through 2012, Chijioke engaged in a scheme to defraud D.C. Medicaid by billing for incontinence supplies that were not provided, as detailed in the statement of offense. Chijioke instructed his office staff to complete doctor prescriptions calling for beneficiaries to receive the maximum amount of incontinence supplies allowed by D.C. Medicaid. At the same time, he had his office staff contact the Medicaid recipients to determine from them the actual amount of incontinence supplies they needed, and to provide them with those supplies. Chijioke hired a billing company to submit claims to the Medicaid contractor as if the maximum amount of supplies were provided to the recipients rather than the actual amount supplied. By arranging for the maximum amount of incontinence supplies to be billed, rather than the amount actually provided, Chijioke obtained approximately $580,000 that he was not entitled to receive from Medicaid.
During the investigation, $28,600 in funds generated through the scheme was administratively forfeited.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Special Agent in Charge DiGiulio expressed appreciation for the work performed by Special Agents from the FBI and HHS OIG. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section; former Assistant U.S. Attorney Lionel André; Paralegal Specialists Christopher Toms and Jessica Mundi; former Paralegal Specialists Corinne Kleinman and Kaitlyn Kruger, and Litigation Technology Specialist Claudia Gutierrez. Finally, they commended the work of Assistant U.S. Attorneys Virginia Cheatham and Kondi Kleinman, of the Fraud and Public Corruption Section, who are prosecuting the case.
Nightclub owner and long-time fugitive sentenced to 11 years of federal prison for drug traffickingRead the Press Release
ATLANTA – Christopher Dixon, a/k/a “Yardman,” a fugitive from justice for almost six years, has been sentenced to prison for trafficking over 1,000 pounds of marijuana and approximately 25,000 pills of MDMA (ecstasy) and BZP (a drug similar to ecstasy). Dixon was involved with a drug organization that distributed over 1 million pills of MDMA and BZP.
“Dixon, and the drug organization that he worked with, distributed a staggering amount of drugs in this District,” said U.S. Attorney John A. Horn. “Fortunately, after years on the lam, Dixon has been brought to justice, and will serve his sentence like the other defendants in this case.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated of the sentencing, “This high-level poly-drug trafficker was “collared” because of the great working relationship that DEA has with its federal, state and local counterparts and the United States Attorney’s Office. Mr. Dixon eluded justice for several years, but his days on the run came to an abrupt end when he was ultimately captured. He will now spend well-deserved time in prison for the crimes he committed and his apprehension makes our communities a safer place today.”
According to U.S. Attorney Horn, the charges and other information presented in court: From late-2009 to late-2010, several state, federal, and international agencies conducted an investigation of an Atlanta drug trafficking organization that used corrupt law enforcement officers to further its illegal activities. Ultimately, the investigation resulted in the arrest, indictment, and conviction of more than 15 defendants, including Dixon.
For his part, Dixon executed countless drug transactions and supervised several lower-level drug traffickers, while simultaneously running Club Xpose (a nightclub in DeKalb County). In total, Dixon distributed approximately 25,000 pills of MDMA and BZP and 1,000 pounds of marijuana. In particular, on June 21, 2010, based on wiretapped calls and a covert surveillance operation, law enforcement officers caught Dixon in a stolen car with approximately 4,000 pills of MDMA and BZP and loaded handgun. During the course of the conspiracy, Dixon used former-DeKalb County Police Officer Donald Bristol to obtain sensitive law enforcement information. Bristol was previously sentenced to a year and a day in prison for his conduct.
On December 15, 2010, law enforcement officers executed a series of coordinated arrests. As part of the take-down, agents attempted to arrest Dixon and also had him contacted via telephone. Nevertheless, Dixon failed to turn himself in and remained a fugitive from justice for almost six years. In November 2016, Dixon was arrested on obstruction and marijuana trafficking charges in Franklin County, Georgia.
Christopher Dixon, 44, formerly of DeKalb County, Georgia, has been sentenced to 11 years in prison to be followed by five years of supervised release. Dixon pleaded guilty to a conspiratorial drug trafficking charge on June 16, 2017.
This case was investigated by the Drug Enforcement Administration; Immigration Customs Enforcement (ICE); ICE - Office of Professional Responsibility; ICE - Office of Inspector General; ICE - Homeland Security Investigations; Jamaican Constabulary Force - Anti-Corruption Branch; DeKalb County Police Department; Internal Revenue Service - Criminal Investigation; Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Delta Airlines Corporate Security.
Assistant U.S. Attorneys Jeffrey W. Davis, L. Skye Davis, and Dahil Goss prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
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/gan/.
New York Man Sentenced to Two Years in Prison in International $200 Million Credit Card Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 24 months in prison for his role in one of the largest credit card fraud schemes ever charged by the Justice Department, Acting U.S. Attorney William E. Fitzpatrick announced.
Raghbir Singh, 61, of Hicksville, New York, previously pleaded guilty before U.S. Magistrate Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to commit bank fraud. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Singh was originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; finally, run up large loans.
The scope of the criminal fraud enterprise required the defendants and their conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Singh admitted he helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. He also admitted he knew the cards would be used fraudulently at businesses.
In addition to the prison terms, Judge Arleo sentenced Singh to three years of supervised release and fined him $1,000.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s sentencings. He also thanked postal inspectors, under the direction of Postal Inspector in Charge James V. Buthorn, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt. He also thanked the U.S. Social Security Administration for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit in Newark.
This case was brought in coordination with the Financial Fraud Enforcement Task Force. The 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. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: David E. Levine Esq., Brooklyn, New York
Montgomery County Man Sentenced to 39 Months in Federal Prison for Fraud Schemes with Victim Losses Totaling over $490,000Read the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – United States District Judge Paul W. Grimm sentenced Se Chang Moon, a/k/a Warren Moon, age 50, formerly of Montgomery County, Maryland, to 39 months in prison, followed by five years of supervised release, for bank fraud and aggravated identity theft, arising from schemes in which the defendant told victims that he would help them to refinance loans on their respective homes.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); and Chief J. Thomas Manger of the Montgomery County Police Department.
According to court documents, Moon represented to victims that he was a loan officer and that he would help them obtain financing on their respective homes. Moon requested and obtained over 30 different payments from Victim A totaling over $300,000 for this purpose. Victim A transferred money to Moon believing that Moon was using the money to refinance the loan on Victim A’s home. Moon provided Victim A with phony documents relating to the purported refinance, including fraudulent “pre-approval letters.” Instead, Moon kept the money that Victim A paid to Moon for Moon’s personal use.
With respect to Victims B, C and E, after obtaining the victims’ personal information, purportedly to obtain refinancing, Moon used the victims’ personal information without their knowledge or permission, to obtain loans in their names. Moon then directed the loan proceeds into bank accounts controlled by Moon.
United States District Judge Paul W. Grimm also ordered Moon to pay restitution in the amount of $652,542.07 and entered an order of forfeiture in the amount of $499,937.07.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The 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 United States attorneys’ offices, and state and local partners, it’s 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.
Acting United States Attorney Stephen M. Schenning commended the FHFA-OIG and the Montgomery County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Erin Pulice, who prosecuted the case.
Monongalia County man indicted on campaign fraud chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Morgantown, West Virginia man was indicted by a federal grand jury on charges related to campaign fraud, Acting United States Attorney Betsy Steinfeld Jividen announced.
James L. Laurita, Jr., age 57, was indicted on one count of “Scheme to Cause False Statements to Federal Election Commission,” two counts of “Causing Contributions in the Name of Another,” two counts of “Causing Excessive Contributions ,” and two counts of “Causing False Statement to Federal Election Commission.” Laurita, former president and CEO of Mepco, LLC, of Morgantown, is accused of devising a scheme to unlawfully use employees of Mepco, LLC and their spouses to make campaign contributions to several federal campaigns with company funds. The crimes are alleged to have occurred from March 2010 to July 2013 in Northern District of West Virginia and elsewhere.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The Federal Bureau of Investigation is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Monmouth County, New Jersey, Man Admits Trying to Sell Employer’s ‘As Seen on TV’ Trade Secrets to CompetitionRead the Press Release
TRENTON, N.J. – A former employee of a New York company that invests in, imports and distributes “As Seen On TV” products today admitted trying to sell trade secrets to one of the company’s competitors, Acting U.S. Attorney William E. Fitzpatrick announced.
Ralph Mandil, 38, of West Long Branch, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
The products sold by Mandil’s employer, identified in the information as “Victim Company 1,” included electrical and non-electrical appliances, beauty and personal care, pet care, fitness, auto and outdoor products that are frequently marketed via television ads and are commonly sold at large retailers such as Walmart.
From August 2016 through October 2016, Mandil communicated and met with people he believed were representatives of a New Jersey-based competitor of Victim Company 1. These individuals were actually government agents outfitted with audio and video recording devices.
Mandil offered to provide the agents with information belonging to Victim Company 1, in addition to providing them with access to Victim Company 1’s “drop box,” or cloud storage account, in exchange for money. Mandil also provided the government agents with samples of the merchandise he could steal from Victim Company 1.
The wire fraud count to which Mandil pleaded guilty carries a maximum potential penalty of 20 years in prison. Sentencing is scheduled for Jan. 22, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Zach Intrater, Deputy Chief of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Justin Walder Esq. and Aidan O’Connor Esq., Hackensack, New Jersey.
Mexican Citizen Pleads Guilty to Illegal Re-EntryRead the Press Release
PLATTSBURGH, NEW YORK – Raul Meza, age 48, and a citizen of Mexico, pled guilty today to illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Meza admitted that on August 18, 2017, a Border Patrol agent found him walking down a road in Champlain, New York, about 250 yards south of the border between the United States and Canada. Meza had already been twice removed from the United States to Mexico, first in 2001 and again in 2010. He did not have authorization to return.
Senior United States District Judge Norman A. Mordue is scheduled to sentence Meza on December 18, 2017. Meza faces up to 2 years in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Border Patrol and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Mexican Businessman Pleads Guilty to Orchestrating $20 Million Tax Fraud Against the Government of MexicoRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that CARLOS DJEMAL NEHMAD pled guilty to wire fraud in connection with a scheme to fraudulently obtain over $20 million in tax refunds from the government of Mexico by creating the appearance of legitimate business activity through the transfer of over $100 million through dozens of shell companies in the United States and Mexico. DJEMAL’s plea was entered earlier today in Manhattan federal court before U.S. District Judge Alvin K. Hellerstein.
Acting U.S. Attorney Joon H. Kim said: “As the defendant admitted today, he led an international scheme that used dozens of shell companies in the United States to defraud the Mexican government of millions of dollars. We are committed to holding accountable those who use the United States financial system to perpetrate fraud.”
According to the allegations contained in the Indictment to which DJEMAL pled guilty, statements made during the plea and other court proceedings, and other documents in the public record:
Beginning in June 2011 through May 2016, DJEMAL orchestrated a scheme to defraud the Mexican government of tax revenue relating to Mexico’s value added tax (“VAT”). The Mexican government imposes VAT on goods sold from one Mexican company to another; however, when certain goods (such as cellular phones) are exported from Mexico, the previously paid VAT is refunded to the exporter. DJEMAL created companies in Mexico and recruited individuals in the United States to create and control dozens of companies in the United States (“Front Companies”) purportedly doing business as importers and exporters of cellular phones in order for DJEMAL to fraudulently obtain VAT refunds from the Mexican government.
In order to carry out the scheme, DJEMAL caused Front Companies in Mexico to purchase outdated cellular phones from other companies seeking to sell outdated inventory. DJEMAL then caused these phones to be exported to Front Companies in the United States owned and operated by others he recruited to the scheme. During the export process, DJEMAL obtained fraudulent invoices and created export documents that falsely inflated the value of the phones being exported, thereby enabling him to fraudulently seek inflated VAT refunds from the Mexican tax authority.
Once the phones were shipped to the United States, they were transferred to one or more Front Companies in the United States only to be shipped back to a different Front Company in Mexico. Through this process, the phones were shipped repeatedly in a circular fashion between Front Companies controlled by DJEMAL and his co-conspirators in Mexico and the United States, enabling DJEMAL to obtain multiple fraudulent VAT refunds for the same phones.
In order to create the appearance of legitimate cell phone sales, each transfer of phones was generally accompanied by a transfer of funds to and from accounts held in the name of the relevant Front Companies. As part of the scheme, each co-conspirator who controlled a Front Company receiving funds as part of the scheme retained approximately 1 percent for his participation in the scheme.
Between approximately June 2011 to approximately May 2016, DJEMAL and his co-conspirators moved more than $100 million dollars through dozens of accounts maintained by Front Companies in this fashion, including through accounts maintained at a financial institution in the Southern District of New York, in order to obtain over $20 million in VAT refunds from the Mexican government.
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DJEMAL, 56, of Mexico City, pled guilty to one count of wire fraud. DJEMAL faces a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for January 19, 2018, before Judge Hellerstein. As part of his plea, DJEMAL agreed to forfeit cash, artwork, and his shareholding in Investabank, a Mexican bank in which DJEMAL was part owner.
Co-defendants Max Fraenkel and Daniel Blitzer previously pled guilty to wire fraud and money laundering and are cooperating with the government. The cases of co-defendants Braulio Lopez and Roberto Moreno remain ongoing.
Mr. Kim praised the outstanding work of the Internal Revenue Service, Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, the Mexican Tax Administration Service, and the Mexican Secretary of Finance and Public Credit for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Daniel M. Tracer and Kiersten A. Fletcher are in charge of the case.
Metairie Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that BRIAN LISTER, age 31, of Metairie, pled guilty today to a one-count Indictment charging him with receipt of images and videos depicting the sexual exploitation of children.
According to court documents, Special Agents with the Federal Bureau of Investigation executed a search warrant at LISTER’s residence on July 23, 2015, after obtaining information that LISTER had repeatedly accessed a website dedicated to the advertisement and distribution of child pornography. During the search, the FBI seized numerous electronic items including one laptop computer and one external digital storage device that contained images and videos of child pornography. A forensic examination of the device revealed that LISTER used the devices to search for, download, and save images and videos of children as young as approximately two years old engaging in sexually explicit conduct. LISTER obtained most, if not all, of the images and videos via a peer-to-peer file sharing program. The forensic examination located approximately 1,148 images and one video of prepubescent children engaging in sexually explicit conduct on LISTER’s electronic devices.
LISTER faces a mandatory minimum term of imprisonment of five years and a maximum of 20 years, followed by up to a lifetime of supervised release and a $250,000 fine. He can also be required to register as a sex offender. U.S. District Judge Jane Triche Milazzo set sentencing for December 21, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Madisonville Resident Sentenced to over Twelve Years in Prison for Distributing and Possessing Child PornographyRead the Press Release
KNOXVILLE, Tenn.- On September 19, 2017, Neal Allen Holland, 28, of Madisonville, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 151 months in federal prison for distributing child pornography. Following his release from prison, Holland will be supervised by the U.S. Probation Office for 15 years and required to register with the sex offender registry in any state in which he resides, works, or attends school.
Holland pleaded guilty in October 2016 to federal charges stemming from his use of an Internet chatroom and an online cloud storage account to make child pornography available for downloading by others via the Internet. A search of his residence resulted in the seizure of evidence confirming that he had been distributing child pornography that he had accessed, downloaded, and stored on his computer.
This investigation was conducted by the U.S. Department of Homeland Security with substantial assistance from the Monroe County Sheriff’s Office and Madisonville Police Department. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Leader and Founder of Yellow Tape Money Gang in Newburgh Convicted in White Plains Federal Court of Racketeering, Attempted Murder, and Narcotics OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that TYRIN GAYLE, 24, was convicted today of racketeering, attempted murder, narcotics, and witness tampering charges, all in connection with his leadership of the Yellow Tape Money Gang in the City of Newburgh, New York. The jury convicted GAYLE on all seven counts in the controlling indictment following a two-week trial before U.S. District Judge Cathy Seibel.
Acting Manhattan U.S. Attorney Joon H. Kim stated: “Gang leader Tyrin Gayle chose the name Yellow Tape Money Gang to glamorize the yellow tape surrounding the scenes of the gang’s many shootings and the money the gang raked in selling crack cocaine and heroin. As the jury found today, during his leadership of that gang, Gayle not only engaged in ruthless violence, shooting an innocent bystander in the stomach, but also used minors to sell drugs and carry the gang’s guns. With today’s verdict, Gayle has been held to account for his vicious crimes.”
According to court papers and evidence admitted at trial:
From 2015 to May 2016, TYRIN GAYLE led the Yellow Tape Money Gang, called “YTMG” for short, in the City of Newburgh. Members of YTMG engaged in, among other things, shootings, crack cocaine distribution, and heroin distribution. The gang’s adult members, including GAYLE, regularly used minors to sell their drugs, carry their guns, and commit their shootings. During that same period, YTMG, whose territory centered around the intersection of William Street and Hasbrouck Street, engaged in a violent rivalry with another Newburgh street gang, known as Southside, whose territory centered around the intersection of South Street and Chambers Street. On December 11, 2015, GAYLE and two other YTMG members drove to the intersection of South Street and Liberty Street, where they opened fire on Southside gang members in broad daylight. At least one Southside member returned fire, causing the YTMG car to crash into a tree. On February 21, 2016, in retaliation for a shooting of one YTMG member, GAYLE and others drove to the intersection of South Street and Chambers Street. When GAYLE was unable to locate any Southside gang members in the area, he and his fellow gang members instead took aim at an innocent bystander who happened to be in Southside territory at the time. During the ensuing drive-by shooting, that innocent bystander was shot in the abdomen.
For these and related activities, GAYLE was convicted of one count of racketeering conspiracy involving more than 280 grams of crack cocaine, which carries a maximum sentence of life; one count of attempted murder in aid of racketeering, which carries a maximum sentence of 10 years; one count of assault and attempted murder in aid of racketeering, which carries a maximum sentence of 20 years; one count of conspiracy to distribute more than 280 grams of crack cocaine, which carries a mandatory minimum sentence of 10 years and a maximum sentence of life; one count of using a minor in drug operations, which carries a maximum sentence of life; one count of possessing, brandishing, and discharging a firearm in furtherance of racketeering and narcotics conspiracies, which carries a mandatory minimum sentence of 10 years, to be served consecutively to any other sentence, and a maximum sentence of life; and attempted witness tampering, which carries a maximum sentence of 20 years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
GAYLE is scheduled to be sentenced on January 16, 2018, before Judge Seibel.
Acting U.S. Attorney Kim praised the FBI, the ATF, the City of Newburgh Police Department, and the Town of Newburgh Police Department for their outstanding work in this investigation. He also thanked the Orange County Sheriff’s Office, the Town of New Windsor Police Department, the New York State Police, and the Orange County District Attorney’s Office for their invaluable assistance with this case.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Maurene Comey, Jacqueline Kelly, and Lauren Schorr are in charge of the prosecution.
Kyle Man Found Guilty of ArsonRead the Press Release
United States Attorney Randolph J. Seiler announced that Danny Ferguson, age 42, of Kyle, South Dakota, was found guilty of Arson following a federal trial in Rapid City, South Dakota.
The charge carries a maximum penalty of up to life in custody and/or a $250,000 fine, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Evidence at trial established that Ferguson used a gasoline and diesel soaked blanket to set fire to an occupied trailer house near Kyle in April 2015.
This case was investigated by the Federal Bureau of Investigation, the Oglala Sioux Tribe Department of Public Safety, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Megan Poppen prosecuted the case.
A sentencing date was set for February 23, 2018. Ferguson was remanded to the custody of the U.S. Marshals Service pending sentencing.
Justice Dept. Settles Discrimination Lawsuit Against State of RI and Dept. of CorrectionsRead the Press Release
WASHINGTON – The Justice Department announced today that it has reached a settlement agreement with the State of Rhode Island (the State or Rhode Island) and the Rhode Island Department of Corrections (RIDOC) to resolve its lawsuit alleging that the defendants engaged in a pattern or practice of employment discrimination against African American and Hispanic applicants for entry-level correctional officer positions in violation of Title VII of the Civil Rights Act of 1964 (Title VII). Title VII is a federal law that prohibits employment discrimination on the basis of race, color, sex, national origin or religion.
In a joint motion filed yesterday in the U.S. District Court for the District of Rhode Island, the Justice Department and Rhode Island asked the court for provisional approval and entry of the settlement agreement. Under the agreement, the State will adopt and use Title VII-compliant selection device(s) to hire entry-level correctional officers. The settlement agreement further provides for the priority hire of 18 eligible African American claimants and 19 eligible Hispanic claimants who were screened out of the hiring process by the employment tests challenged by the United States. All eligible claimants for priority hire relief must meet the employer’s otherwise lawful hiring criteria. The settlement further provides for an interim hiring process to address the State’s immediate operational needs as well as a monetary relief fund of $450,000 to compensate eligible claimants who were affected by the practices challenged by the United States. The settlement agreement is subject to court approval and the parties have requested, jointly, that the court schedule a fairness hearing so that those persons affected by the settlement agreement are afforded an opportunity to comment on its terms.
The proposed settlement agreement, if approved by the court, will resolve the Title VII complaint filed by the Justice Department on February 10, 2014. In its complaint, the Justice Department alleged that RIDOC’s use of written and video examinations as part of its multi-step selection process unnecessarily screened out African American and Hispanic applicants from further consideration in the hiring process resulting in a disparate impact against these applicants without the requisite showing that the employment practice is job-related and consistent with business necessity.
“This Settlement Agreement is the product of negotiations between the United States and the State of Rhode Island and has resulted in the expansion of equal employment opportunities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department is committed to enforcing Title VII to remove unlawful discriminatory barriers.”
The case was brought by Trial Attorneys David Reese, Kunti D. Salazar and Emily Given of the Civil Rights Division’s Employment Litigation Section. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
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Justice Department Settles Employment Discrimination Lawsuit against the State of Rhode Island and the Rhode Island Department of CorrectionsRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with the State of Rhode Island (the State or Rhode Island) and the Rhode Island Department of Corrections (RIDOC) to resolve its lawsuit alleging that the defendants engaged in a pattern or practice of employment discrimination against African American and Hispanic applicants for entry-level correctional officer positions in violation of Title VII of the Civil Rights Act of 1964 (Title VII). Title VII is a federal law that prohibits employment discrimination on the basis of race, color, sex, national origin or religion.
In a joint motion filed yesterday in the U.S. District Court for the District of Rhode Island, the Justice Department and Rhode Island asked the court for provisional approval and entry of the settlement agreement. Under the agreement, the State will adopt and use Title VII-compliant selection device(s) to hire entry-level correctional officers. The settlement agreement further provides for the priority hire of eighteen (18) eligible African American claimants and nineteen (19) eligible Hispanic claimants who were screened out of the hiring process by the employment tests challenged by the United States. All eligible claimants for priority hire relief must meet the employer’s otherwise lawful hiring criteria. The settlement further provides for an interim hiring process to address the State’s immediate operational needs as well as a monetary relief fund of $450,000 to compensate eligible claimants who were affected by the practices challenged by the United States. The settlement agreement is subject to court approval and the parties have requested, jointly, that the court schedule a fairness hearing so that those persons affected by the settlement agreement are afforded an opportunity to comment on its terms.
The proposed settlement agreement, if approved by the court, will resolve the Title VII complaint filed by the Justice Department on February 10, 2014. In its complaint, the Justice Department alleged that RIDOC’s use of written and video examinations as part of its multi-step selection process unnecessarily screened out African American and Hispanic applicants from further consideration in the hiring process resulting in a disparate impact against these applicants without the requisite showing that the employment practice is job-related and consistent with business necessity.
“This Settlement Agreement is the product of negotiations between the United States and the State of Rhode Island and has resulted in the expansion of equal employment opportunities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department is committed to enforcing Title VII to remove unlawful discriminatory barriers.”
The case was brought by Trial Attorneys David Reese, Kunti D. Salazar and Emily Given of the Civil Rights Division’s Employment Litigation Section. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Jury Convicts Rochester Man of Sex Trafficking Minors and AdultsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr., announced today that a federal jury convicted Stephen Jones, 30, of Rochester, NY, of conspiring to recruit underage girls to commit commercial sex acts, and sex trafficking of minors and adults by force, fraud or coercion. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life.
Assistant U.S. Attorneys Melissa M. Marangola and Craig R. Gestring, who together handled the trial of the case, stated that between 2011 and June 2014, the defendant conspired with others, including Kasandra Weeks and Christian Nartey, to target and manipulate seven minor victims and two adult victims, many of whom were at-risk and vulnerable, to engage in prostitution activities. While some victims were located through social media accounts, Jones went to the Department of Social Services or women shelters and waited until girls appearing young in age came outside. Victims were promised quick money and drugs, and on other occasions, threatened with violence.
Jones and his co-conspirators posted daily advertisements using fake photos for the victims on backpage.com. One advertisement read: “ITS KRISTEN AND ASHLEY!! Ur 2 favorite young GODDESS up all day READY2play!! :-) CALL NOW!! Victims were taken from the Rochester area to Buffalo, Syracuse, Albany, Utica, and New Jersey in order to engage in prostitution activities and avoid detection by law enforcement. To keep control over the victims, Jones and the others kept the money victims earned from prostitution activities, as many as 10 clients a day, and limited the victims’ communications with family and friends.
With his conviction, Jones joins Kasandra Weeks and Christian Nartey, who were previously convicted, as they await sentencing for their involvement in this sex trafficking ring.
The verdict is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; Immigration and Customs Enforcement, Homeland Security Investigations, of under the direction of Special Agent-in-Charge Kevin Kelly; and the Rochester Police Department, under the direction of Chief Michael Ciminelli.Sentencing for Jones is scheduled for December 5, 2017, at 3:00 p.m., before U.S. District Judge David G. Larimer who presided over the trial of the case.
Johnstown Felon Sentenced for Illegally Possessing RifleRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court in Johnstown to twelve months, plus one day, to be served concurrently with sentence he is presently serving in Clearfield County, and three years’ supervised release, on his conviction of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Eric P. Williams, 36, of Johnstown, Pa.
According to information presented to the court, on December 8, 2015, Williams, who had been convicted in 2001 in Clearfield County, Pennsylvania, of the felony offense of robbery, which is a crime punishable by imprisonment for a term exceeding one year, did possess in and affecting interstate commerce a Stevens, Model 350, 12 gauge shotgun, and a Mossberg, Model 715T, .22 LR caliber, semi-automatic rifle. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Ms. Song commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation that led to the successful prosecution of Williams.
According to Ms. Song, Williams was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Jacksonville Man Guilty of Downloading Sexual Abuse Videos and Images Using the “Dark Web”Read the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Jason Dean Barnes (41, Jacksonville) has been found guilty of receiving child sexual abuse images and videos over the Internet using a “dark web” application following a bench trial. He faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison. A sentencing date has been set for December 18, 2017.
According to court documents, FBI agents began an online undercover investigation to identify individuals who were using a particular anonymizing website on the “dark web” to access and receive images and videos depicting child pornography. In February 2015, FBI agents apprehended the administrator of this website and seized it from its web-hosting facility. Agents identified Barnes after he had accessed child pornography on the website on February 28 and March 3, 2015.
On July 29, 2015, FBI agents executed a search warrant at Barnes’s residence. During an interview, Barnes admitted to searching for, downloading, and viewing child pornography using the website, and that he had struggled with this addiction for a number of years. A forensic examination of Barnes’s laptop computer revealed that it contained at least 500 videos and at least 5,000 images depicting child pornography, including several videos that Barnes had downloaded earlier that same morning.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Indictment Unsealed for Conspiracy to Commit Bank Robbery, Bank Robbery, and Brandishing a FirearmRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that AARON RUDOLPH, age 25, and JOHN RUDOLPH, age 42, both of New Orleans, were charged with conspiracy to commit bank robbery, bank robbery, and brandishing a firearm in furtherance of a crime of violence.
According to the Indictment, on or about August 15, 2017, AARON and JOHN RUDOLPH entered the First Bank and Trust located at 1320 South Morrison Boulevard, in Hammond. The defendants then robbed the bank of approximately $10,490.96 of United States currency, while brandishing a firearm, in violation of Title 18, United States Code, Section 371, Title 18 United States Code 2113(a) and (d), and Title 18 United States Code, Section 924(c)(1)(A)(ii).
Acting U.S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
If convicted of conspiracy to commit bank robbery, AARON and JOHN RUDOLPH each face a maximum term of imprisonment of five years, a fine of $250,000, three years of supervised release after imprisonment, and a $100 special assessment. As to the bank robbery charge, each defendant faces a maximum term of imprisonment of 25 years, a fine of $250,000, five years of supervised release after imprisonment, and a $100 special assessment. For brandishing a firearm in furtherance of a crime of violence, each defendant faces a minimum term of imprisonment of seven years and a maximum term of life, a fine of $250,000, five years supervised release after imprisonment, and a $100 special assessment.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Maria M. Carboni is in charge of the prosecution.
Illegal Alien from Mexico Sentenced to Prison after Returning to the United States Following Two DeportationsRead the Press Release
A Mexican man who had previously been deported twice was sentenced on September 18, 2017, to 21 months in federal prison.
Abundio Garcia-Gonzalez, age 48, a citizen of Mexico who had been living in Iowa City, Iowa, received the prison term after a June 20, 2017, guilty plea to one count of illegal reentry of a removed alien after an aggravated felony conviction.
At the guilty plea, Garcia-Gonzalez admitted he illegally reentered the United States without permission after having been deported from the United States in 1997 and 2006. Garcia-Gonzalez, using various aliases, was also given voluntary returns to Mexico five additional times between 1993 and 1998. Garcia-Gonzalez, using an alias, was previously convicted in California in 1991 of the felony offense of selling cocaine. In 1996, Garcia-Gonzalez, using an alias, was convicted of the felony offenses of possession of cocaine and escape while felony charges are pending. Garcia-Gonzalez was also convicted in Indiana in 2002 of aggravated battery.
Garcia-Gonzalez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Garcia-Gonzalez was sentenced to 21 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Garcia-Gonzalez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-0033.
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Illegal Alien from Guatemala Sentenced to Prison after Returning to the United States Following DeportationRead the Press Release
A Guatemalan man who had previously been deported following a federal conviction for unlawfully using identification documents was sentenced on September 18, 2017, to two years in federal prison.
Luis Eduardo Toj-Gomez, age 25, a citizen of Guatemala who had been living in Postville, Iowa, received the prison term after a June 2, 2017, guilty plea to one count of illegal reentry of a removed alien after a felony conviction.
At the guilty plea, Toj-Gomez admitted he illegally reentered the United States without permission after having been deported from the United States in November 2015. Prior to his deportation, Toj-Gomez was convicted in July 2015 in the United States District Court for the Northern District of Iowa on two counts of unlawful use of identification documents, felony offenses. Toj-Gomez had also been convicted of assault causing bodily injury in Allamakee County, Iowa, and operating while under the influence of alcohol in Fayette County, Iowa.
Toj-Gomez was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Toj-Gomez was sentenced to 24 months’ imprisonment. This sentence consisted of a 10-month sentence for violating the conditions of supervised release on the 2015 unlawful use of identification documents conviction and a 14-month sentence on the 2017 illegal reentry conviction. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Toj-Gomez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-1013.
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IT Contractor Convicted of Wire Fraud for Defacing Website of Arizona CompanyRead the Press Release
PHOENIX – Tavis Tso, 40, of Tempe, Ariz., a member of the Navajo Nation, was sentenced yesterday by U.S. District Judge David G. Campbell to four years of federal probation. Tso was also ordered to pay $9,145 in restitution to the victim of his crime. Tso had previously pleaded guilty to one count of wire fraud.
According to documents filed in this case and statements made in court, Tso provided information technology (“IT”) services for a company located in Phoenix, Ariz. Tso subsequently used the company’s account information to make changes to the company’s website. These changes prevented the company’s employees from using their email accounts and redirected the company’s homepage to a blank page. Tso then offered to return everything to normal for $10,000. When the company refused to pay the requested amount, Tso redirected the company’s homepage to a pornographic website. Visitors to the company’s website were redirected to the pornographic website for several days before the website was returned to normal.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Matthew Binford and James R. Knapp, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-1502-PHX-DGC
RELEASE NUMBER: 2017-089_Tso
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Health Care Business Owners Plead Guilty to Fraud and Tax Charges on Eve of TrialRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty pleas of three defendants for their involvement in a years-long, multi-million dollar heath care fraud and tax conspiracy. THURLEE BELFREY, 52, ROYLEE BELFREY, 52, and LANORE BELFREY, 42, pleaded guilty on September 14, 2017, before Senior U.S. District Judge Ann D. Montgomery in Minneapolis, Minn. THURLEE BELFREY pleaded guilty to conspiracy to defraud the federal-state Medicaid program and failing to pay over taxes withheld from employees’ pay. ROYLEE BELFREY pleaded guilty to two counts of failure to pay over taxes withheld from employees’ pay. LANORE BELFREY pleaded guilty to conspiring to evade personal income taxes.
Assistant U.S. Attorney Robert Lewis said, “This is another example of the close cooperation between the State of Minnesota and federal agents in exposing and bringing to justice those who commit fraud. Specifically, the efforts of the Medicaid Fraud Control Unit of the Minnesota Attorney General’s Office led to Thurlee Belfrey’s initial exclusion from the Medicaid and Medicare programs. And, thereafter federal and state law enforcement uncovered his concealed, continuing and illegal involvement in Model Health Care, the crux of this fraud.”
According to the defendants’ guilty pleas and the indictment in the case, brothers THURLEE and ROYLEE BELFREY ran multiple health care businesses that received funds from the Medicaid and Medicare programs funded by the federal government and the State of Minnesota. In 2003, following an investigation by the Minnesota Attorney General’s Office into Royal Health Care, a business they started together in the 1990s, THURLEE BELFREY was convicted of felony theft by false representation. Based on his conviction, in 2004 the Minnesota Department of Human Services (DHS) and the United States Department of Health and Human Services (DHHS) excluded THURLEE BELFREY indefinitely from participating in state and federal health care programs, with no right to seek reinstatement for up to 20 years.
Despite this, and as he admitted in his guilty plea, THURLEE BELFREY conspired with his wife LANORE BELFREY to incorporate a new health care company, Model Health Care (Model), to continue the business operations and conceal THURLEE BELFREY’S involvement therein. To do this, and part of the scheme, LANORE BELFREY was named the owner of Model and intentionally failed to disclose THURLEE BELFREY’S involvement in managing the business. Despite being excluded, THURLEE BELFREY continued to manage Model. Government payment records show Model received more than $10,000,000 from Medicaid that would not have been paid but for the fraudulent misrepresentations made about THURLEE BELFREY’S lack of involvement in the businesses. According to the investigation, THURLEE and LANORE BELFREY received millions of dollars from Model during the scheme.
While THURLEE BELFREY ran Model, ROYLEE BELFREY operated several health care businesses as well. According to the defendants’ guilty pleas, between 2007 and 2013, THURLEE and ROYLEE BELFREY deducted and collected money from their employees’ wages, ostensibly for the payment of federal payroll taxes and Federal Insurance Contribution Act (FICA) taxes. However, they intentionally failed to pay the withheld taxes over to the IRS over the course of many years and, instead, used the money for other purposes, including attempts to develop a reality show based on their lives, high-end housing, a Caribbean cruise, luxury retail purchases, and thousands of dollars in cash withdrawals. In total, THURLEE and ROYLEE BELFREY admitted deducting and unlawfully using for their own benefit more than $3,960,000 in withheld taxes between 2007 and 2014.
This case is the result of an investigation conducted by the Minnesota Attorney General’s Office, the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation, and the Office of the Inspector General, United States Department of Health and Human Services.
This case is being prosecuted by Assistant U.S. Attorneys Robert Lewis and David Maria.
Defendant Information:
THURLEE BELFREY, 52
Saint Paul, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
- Failure truthfully to account for and pay over withheld taxes, 1 count
ROYLEE BELFREY, 52
Saint Paul, Minn.
Convicted:- Failure truthfully to account for and pay over withheld taxes, 2 counts
LANORE BELFREY, 42
Minnetonka, Minn.
Convicted:- Conspiracy to defraud the United States, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Hazleton Man Pleads Guilty to Making Straw Purchases of FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Amaury Guzman-Escobar, age 31, of Hazleton, pleaded guilty on September 15, 2017, before United States District Court Judge Malachy E. Mannion, to the charge of conspiracy to make false statements to a federally licensed firearms dealer.
According to United States Attorney Bruce D. Brandler, Guzman-Escobar admitted that he and another individual, Crystal Muentes, age 34, of Scranton, provided false information regarding the purchase of two firearms from Dave’s Gun Shop, in Drums, Luzerne County, on June 1, 2016 and June 17, 2016, and the purchase of a firearm from Ed’s Sports Shop in Tamaqua, Schuylkill County, on June 17, 2016. Two of the firearms purchased by Guzman-Escobar and Muentes were later recovered in the mail by Postal Inspectors in Puerto Rico.
Crystal Muentes previously entered a guilty plea before Judge Mannion on September 8, 2017. She is awaiting sentencing.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Postal Inspection Service. Members of the Scranton Police Department also participated in the investigation. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
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.
A sentencing date for Guzman-Escobar has not yet been scheduled.
The maximum penalty under federal law for these offenses is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harpswell Man Pleads Guilty to Theft of Firearms from a Licensed Firearms DealerRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Hyunkook Korsiak, 36, of Harpswell, Maine pled guilty today in U.S. District Court to theft of firearms from a federally licensed firearms dealer.
According to court records, on January 3, 2017, the defendant stole firearms from C&R Trading Post. The theft was discovered by Brunswick Police Department who responded to a burglar alarm, found a broken window near the building’s entrance, and used a police K9 to locate several firearms, a sledgehammer and drops of blood on snow in nearby woods. The blood was later determined to be the defendant’s. In April 2017, the defendant admitted to stealing the firearms.
Korsiak faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Sagadahoc County Sheriff’s Office; the Brunswick Police Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Garland Woman Admits Role in Health Care Fraud ConspiracyRead the Press Release
DALLAS, Texas — Latecia P. Hill, 51, of Garland, Texas, pleaded guilty today, before U.S. Magistrate Judge Paul D. Stickney, to one count of conspiracy to commit health care fraud stemming from a scheme to defraud Medicare through the submission of false claims for hearing related services. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Hill faces a maximum penalty not to exceed 5 years in federal prison, a $250,000 fine, and may be ordered to pay restitution. Hill will remain on bond pending sentencing.
Latecia Hill’s mother, Pearle L. Madere, 72, pleaded guilty to her role in the conspiracy last month and is awaiting sentencing. Harlan R. Hill, 53, Latecia Hill’s husband, is awaiting trial.
According to documents filed in the case, Harlan Hill owned and operated Total Senior Ear Care (TSEC); Latecia Hill served as its administrator; and Pearle Madere ran day-to-day operations. TSEC, whose offices were located in Dallas, provided hearing-related services to Medicare beneficiaries living in nursing homes. TSEC physicians and medical assistants would go to a facility and would routinely see as many as 100 patients in a day, often spending less than 5 minutes with each patient. These contracted physicians and medical assistants would do a complete “sweep” of the facility and see every patient available, regardless of the need for hearing-related services. Many of the patients were unresponsive and had no way to communicate whether they wanted the service or not. These hearing services were then fraudulently billed to Medicare for reimbursement. This fraudulent business, created by Harlan and Latecia Hill and Pearle Madere caused Medicare to pay TSEC more than $5.1 million for services never rendered or necessary.
The FBI, the U.S. Department of Health and Human Services – Office of Inspector General, and the Texas Attorney General’s Medicaid Fraud Control Unit investigated this case as part of the Medicare Fraud Strike. Assistant U.S. Attorney Katherine Pfeifle is prosecuting.
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Former Santa Fe Engineer Sentenced to Federal Prison for Obstructing IRS and Filing False Tax ReturnsRead the Press Release
ALBUQUERQUE – Darryl J. Gutierrez, 62, of Santa Fe, N.M., was sentenced today in federal court to 33 months in prison followed by one year of supervised release for violating the federal tax laws by obstructing and impeding the administration of the internal revenue laws and filing false tax returns. Gutierrez was also ordered to pay $174,196 in restitution to the Internal Revenue Service (IRS), a $15,000 fine and a $1,100 special penalty assessment.
Gutierrez was indicted on Nov. 5, 2015, and was charged with one count of obstructing and impeding the due administration of the internal revenue laws and ten counts of making and subscribing false tax returns.
Gutierrez proceeded to trial on the eleven-count indictment on March 27, 2017, and concluded March 30, 2017, when the jury returned a guilty verdict on all eleven counts of the indictment. During the trial, the jury learned that Gutierrez was an electrical engineer who worked at Los Alamos National Laboratory for almost 30 years, earning an annual salary ranging from $80,000 to $115,000 in tax years 2000 to 2009. The evidence at trial also established that Gutierrez, after years of regularly filing timely income tax returns with the IRS, stopped complying with the federal tax laws and began engaging in a pattern of obstructive conduct to prevent the IRS from assessing and collecting his taxes.
The evidence at trial showed that Gutierrez’s obstructive tactics included sending frivolous correspondence to the IRS, and, submitting, under penalty of perjury, false tax information to his employer and to the IRS. For instance, the evidence showed that Gutierrez submitted, under penalty of perjury, false withholdings information (Forms W-4) to his employer and false statements of his wages on his personal income tax returns (Forms 1040) filed with the IRS. The evidence further showed that between Nov. 2010 and Jan. 2011, Gutierrez filed ten false federal income tax returns for tax years 2000 to 2009 seeking a refund when in fact Gutierrez owed the IRS approximately $125,000.
This case was investigated by the Albuquerque office of IRS Criminal Investigation, and was prosecuted by Assistant U.S. Attorneys Margaret Vierbuchen and Holland S. Kastrin.
Former Investment Adviser Pleads Guilty to $6 Million FraudRead the Press Release
NORFOLK, Va. – A former investment adviser in Chesapeake pleaded guilty yesterday to one count of investment adviser fraud and one count of conducting unlawful monetary transactions.
According to the statement of facts filed with the plea agreement, Roger Odell Hudspeth II, 48, was an investment adviser and sole owner of Dominion Investment Advisors, LLC. Hudspeth, along with other associates, sold fraudulent, unregistered securities to his clients. Hudspeth performed inadequate due diligence into the fraudulent investment offerings and concealed that the offerings were created, offered, and controlled by his associate, who previously had been banned by the Financial Industry Regulatory Authority (“FINRA”) for fraudulent activities.
As part of the scheme, Hudspeth and others held social security maximization seminars to obtain clients who were often in or near retirement. Hudspeth steered investors to investment offerings that were highly speculative, illiquid, and high risk by making material misrepresentations and omissions. Hudspeth’s clients lost over $6,000,000 as a result of the securities fraud scheme, and Hudspeth received over $700,000 in ill-gotten gains, including $20,000 that he used to put a down payment on a Range Rover.
In early 2016, the Virginia State Corporation Commission entered a judgment order against Hudspeth revoking his licenses, permanently closing Dominion Investment Advisors, LLC, and prohibiting Hudspeth from engaging in any investment advisory activities in the future.
Hudspeth faces a maximum penalty of 15 years in prison when sentenced on January 22, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorneys Melissa E. O’Boyle and Elizabeth M. Yusi are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-122.
Former Huntley Resident Indicted on Bankruptcy Fraud ChargesRead the Press Release
ROCKFORD — A former Huntley man was indicted today by a federal grand jury on charges of bankruptcy fraud.
TRACY L. SUNDERLAGE, 71, was charged with one count of making false statements in a bankruptcy case and one count of making false statements under oath in a bankruptcy proceeding.
As alleged in the indictment, Sunderlage filed a Chapter 11 Bankruptcy Petition on Aug. 12, 2011. On Aug. 30, 2011, Sunderlage filed various bankruptcy schedules and a Statement of Financial Affairs, both signed under penalty of perjury. According to the indictment, Sunderlage made false statements on his Statement of Financial Affairs, concealing fraudulent transfers of 100,000 shares of Gulf Keystone Petroleum Ltd. and approximately $63,242 and $109,493 to a relative, and concealing his receipt of $241,000 of income from the sale of ownership interest in Gulf Keystone Petroleum, his receipt of $25,000 of income from the sale of ownership interests in other companies, his personal property interests in various financial accounts, and his 2002 Jaguar vehicle.
It is further alleged in the indictment that on May 14, 2012, Sunderlage falsely testified under oath at a meeting of creditors, fraudulently concealing assets from the bankruptcy trustee, creditors, and the United States Trustee, including complete information on a transfer of $63,242 Sunderlage made to a relative.
Each charge in this case carries a maximum potential penalty of up to five years in prison, a term of supervised release of up to three years following imprisonment, and a fine of up to $250,000 or twice the gross gain or gross loss resulting from that offense, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-In-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; Jeffrey A. Monhart, Director for the Chicago Region of the U.S. Department of Labor - Employee Benefits Security Administration; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Former CFO of International Public Relations Firm Charged in Multi-Million Dollar Embezzlement SchemeRead the Press Release
BOSTON – The former chief financial officer of an international marketing and public relations firm was charged today with embezzling over $3 million from the company.
Edward J. Abell III, 44, of Gloucester, was charged with wire fraud and money laundering and is scheduled to make an initial appearance in federal court before U.S. Chief Magistrate Judge David H. Hennessy on Sept. 21, 2017.
According to court documents unsealed today, Abell served as Vice President of Finance and later Chief Financial Officer of a global integrated marketing agency based in Boston. In that capacity, Abell oversaw all aspects of the company’s finances and controlled all corporate bank accounts. It is alleged that between 2006 and his departure in 2016, Abell embezzled over $3.6 million from his employer by writing company checks to Pinehurst Tax Associates – a firm Abell owned. However, Pinehurst allegedly did not provide any services to Abell’s employer. Rather, it is alleged that Abell used Pinehurst as a shell company through which he channeled embezzled funds to personal bank accounts.
In order to avoid detection, Abell allegedly created fake profiles for Pinehurst within his employer’s internal vendor database and attributed all the fraudulent payments to Pinehurst as “Professional Services” in the financial accounting system. Abell also allegedly filed false personal tax returns with the IRS, which failed to report the millions he obtained through Pinehurst.
In addition to the criminal complaint, the United States obtained seizure warrants for several of Abell’s assets allegedly acquired with fraudulent proceeds. As part of the operation, federal agents seized a 2015 Porsche Macan S, a 2015 Ford F-350 Super Duty, and an E*TRADE brokerage account all owned by Abell or held in his name.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. The charge of money laundering provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Weinreb’s Economic Crimes Unit, is prosecuting the case.
The charges contained in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Bank Employee Charged in White Plains Federal Court with Participating in Violent Bank Robbery in October 2013Read the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Charles Gardner, the Commissioner of the Yonkers Police Department (“Yonkers PD”), announced today the unsealing of a Superseding Indictment charging VIRGINIA BLANCO with participating in the robbery of a Wells Fargo Bank branch in Yonkers, New York, in October 2013, and with aiding and abetting the discharge of a firearm in furtherance of the robbery. BLANCO was arrested this morning and presented before U.S. Magistrate Judge Judith C. McCarthy.
Acting U.S. Attorney Joon H. Kim said: “As alleged, while working as a teller, Virginia Blanco secretly conspired to rob the bank. While not present for the actual robbery, Blanco allegedly played a key role, providing her co-conspirators with inside information to assist them. During the robbery, an alleged co-conspirator discharged two gunshots and the robbers made off with more than $300,000 in cash. Thanks to the tireless efforts of the FBI and the Yonkers Police Department, Virginia Blanco will now face justice.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Whatever motivated the suspect in this case to allegedly provide information to robbers so they could rob the bank she worked in, she now faces the prospect of a federal prison term. It was only luck that no one was injured or killed during this robbery. No amount of money can possibly be worth losing your freedom, because you won’t get away with it. The FBI Westchester Safe Streets Task Force isn’t going to stop looking for the money, and tracking down those responsible.”
According to the allegations in the Superseding Indictment[1], a Complaint previously filed against a co-defendant, and other statements in the public record:
In or about October 2013, BLANCO was working as a teller at a Wells Fargo Bank branch located at 500 Odell Avenue in Yonkers, New York (the “Wells Fargo Branch”). She conspired with co-defendant Giovanni Marte to rob the Wells Fargo Branch and provided critical information to Marte that allowed him and his co-conspirators to carry out the robbery successfully. The robbery took place on or about October 29, 2013. On that date, at approximately 3:17 p.m., Marte and three co-conspirators arrived at the Wells Fargo Branch. One co-conspirator remained in the car while Marte and two co-conspirators entered the bank. Marte and another robber each brandished a firearm and the third robber brandished a wood saw. During the robbery, Marte fired two shots but did not hit anyone. He accessed the vault, filled a bag with approximately $303,500 in cash, and fled the Wells Fargo Branch with the other robbers.
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The Superseding Indictment charges VIRGINIA BLANCO, age 28, of Yonkers, New York, with conspiring to rob the Wells Fargo Branch in or about October 2013, robbing and aiding and abetting the robbery of the Wells Fargo Branch on or about October 29, 2013, and aiding and abetting the carrying and discharging of a firearm in furtherance of a violent crime. The maximum and mandatory minimum sentences are as follows: a maximum of five years in prison on Count One (conspiracy); a maximum of 20 years on Count Two (bank robbery); and a maximum of life in prison, with a mandatory minimum of 10 years, on Count Three (firearm offense).
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI’s Westchester County Safe Streets Task Force, which comprises agents and detectives of the FBI, United States Probation, the City of Yonkers Police Department, the City of Peekskill Police Department, the City of Mount Vernon Police Department, the New York City Police Department, the Westchester County Police, and the Westchester County District Attorney’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Douglas Zolkind is in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the descriptions of the Superseding Indictment set forth below, are only allegations, and every fact described should be treated as an allegation.
Former Attorney Sentenced to More Than 3 Years in Prison for Defrauding Investors of More Than $1 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that BRANDON LISI was sentenced today to 38 months in prison for his role in a scheme to defraud at least four individual investors in real estate transactions of more than $1 million. LISI pled guilty to conspiracy to commit wire fraud on April 3, 2017, for his role in the fraud. LISI entered the guilty plea before U.S. District Judge Katherine Polk Failla, who imposed today’s sentence.
Acting U.S. Attorney Joon H. Kim said: “As he previously admitted, Brandon Lisi, a former attorney, misled clients into investing over $1 million in real estate properties. These investments yielded no profit for investors, because Lisi and his co-defendant simply pocketed the funds. Now Brandon Lisi faces time in federal prison for his fraud.”
FBI Assistant Director William F. Sweeney Jr. said: “Financial crimes have the potential to turn lives upside down and inside out. The victims in this case deserve to see justice served. As evidenced by today’s sentence, they will. May this be a reminder to others that this type of behavior won’t go unpunished.”
According to documents filed in this case and statements made in related court proceedings:
LISI, a former attorney, and his co-conspirator, a practicing attorney, built relationships of trust with victim investors and then induced those investors to put money into fraudulent business deals. Through the course of the scheme, LISI and his co-conspirator made false representations and failed to disclose material information to investors, all in an effort to induce them to hand their money over to invest in these purported deals. LISI further caused another individual, acting at his direction, to make false statements in bankruptcy court in an effort to forestall foreclosure on one of the properties LISI had obtained. Although LISI promised his victims large returns on their investments, he and his co‑conspirator used the invested funds for personal use, through substantial cash withdrawals, payments to relatives, and transfers to pay off personal debts.
Ultimately, the victims of this scheme lost nearly all of the money they had invested, which was more than $1 million in total.
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In addition to the prison term, LISI, 43, of Melville, New York, was sentenced to three years of supervised release, and ordered to forfeit $1,438,358 and to pay $1,438,358 in restitution.
Mr. Kim praised and thanked the Federal Bureau of Investigation for their outstanding investigative work.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to http://www.usdoj.gov/usao/nys/victimwitness.html.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Katherine Reilly, Noah Solowiejczyk, and Michael Lockard are in charge of the prosecution.