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19 September 2017
Fitchburg Man Sentenced for Dealing Heroin and CocaineRead the Press Release
BOSTON – A Fitchburg man was sentenced today in federal court in Worcester for his role in a drug trafficking conspiracy.
Elvis Genao, 28, was sentenced by U.S. District Court Judge Timothy S. Hillman to 37 months in prison and three years of supervised release. In May 2017, Genao and four co-defendants pleaded guilty to conspiracy to distribute heroin and cocaine in Worcester County.
In the late summer of 2014, federal agents began investigating the narcotics trafficking activities of Osvaldo Vasquez and his associates, Genao, Jose Federico Vasquez, Felix Melendez, and Hugo Santana-Dones. Between November 2014 and July 2015, with the help of a cooperating witness, agents made numerous recorded purchases of heroin - sometimes laced with fentanyl - from members of the conspiracy, seizing over 400 grams of heroin as a result.
During the controlled purchases, Genao was recorded distributing over 100 grams of heroin to a cooperating source in July 2015. Genao was also captured on wire intercepts between April and July of 2015 discussing the delivery and sale of additional narcotics.
Santana-Dones was sentenced on Sept. 6, 2017, to 80 months in prison and will be subject to deportation hearings upon completion of his sentence; Federico Vasquez was sentenced yesterday to five years in prison and will be subject to deportation hearings upon completion of his sentence. Osvaldo Vasquez and Melendez are scheduled to be sentenced on Nov. 3, 2017, and Oct. 25, 2017, respectively.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Fitchburg Police Chief Ernest F. Martineau; and Leominster Interim Police Chief Michael Goldman made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office is prosecuting the cases.
Federal Jury Convicts Dripping Springs Man of Making Threats to Kill Individuals on Fort HoodRead the Press Release
In Waco today, a federal jury convicted a Dripping Springs man for allegedly making threats to kill individuals on Fort Hood in back in February announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
Jurors found 29-year-old Thomas Anthony Chestnut, Jr., guilty of one count of threatening to assault or murder a uniformed service member and one count of interstate communications with threat to injure. Chestnut, who has remained in federal custody since being arrested by FBI agents on February 24, 2017, faces up to ten years in federal prison on the threaten-to-assault charge and up to five years in federal prison on the threatening- communications charge. Sentencing is scheduled for December 1, 2017, before U.S. District Judge Robert Pitman in Waco.
Testimony during the two-day trial revealed that on February 22, 2017, Chestnut made verbal threats when he called and spoke with a sergeant at the US Army 1st Calvary Division at Fort Hood. Chestnut threatened to go to Fort Hood, kill the sergeant, take hostages, start a mass killing spree and then kill himself if he was not allowed to speak with someone of rank. Chestnut then spoke with a major and advised that he was a former soldier wrongly accused of a crime and eventually released from prison in 2016. Chestnut further advised if he was unable to speak with a U.S. Army III Corps Commander or a Sergeant Major regarding back pay, or did not receive the money he believed was owed to him, that he planned to shoot soldiers on Fort Hood.
“Threats of this nature are taken seriously,” stated United States Attorney Richard L. Durbin, Jr.
The FBI together with the U.S. Army Military Police Investigations at Fort Hood and the Hays County Sheriff’s Office conducted this investigation. Special Assistant U.S. Attorney/Active Duty U.S. Army Major Benjamin Hogan and Assistant U.S. Attorney Chris Blanton are prosecuting this case on behalf of the government.
Federal Inmate Indicted for Assault on Correctional Officer and Possession of ContrabandRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Shawn Hill, age 34, formerly of Connecticut and currently a federal inmate at the United States Penitentiary at Canaan, Waymart, Pennsylvania, was indicted by a federal grand jury for assaulting a federal correctional officer and for possession of contraband in prison.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Hill assaulted a correctional officer and possessed contraband on June 30, 2017. The charges stem from an incident in which Hill allegedly possessed a sharpened piece of metal commonly known as a “shank.” After the weapon was confiscated, Hill allegedly engaged in a physical altercation with a correctional officer.
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 which can be imposed under federal law is eight years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Federal Inmate Charged with Assault on Correctional OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Orlando Hernandez, age 32, a prisoner at United States Penitentiary, Canaan, Pennsylvania, was indicted by a federal grand jury for assaulting a federal correctional officer.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Hernandez kicked and “head-butted” a correctional officer on January 27, 2017.
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 which can be imposed under federal law is 8 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Easthampton Man Sentenced to over 11 Years in Prison for Distributing Child PornographyRead the Press Release
BOSTON – An Easthampton man was sentenced today in federal court in Springfield on nine counts of child pornography offenses.
James J. Smith, 38, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 138 months in prison and 10 years of supervised release. In February 2017, Smith pleaded guilty to six counts of distribution of child pornography, one count of transportation of child pornography, one count of receipt of child pornography, and one count of possession of child pornography.
In January 2015, during a search of Smith’s home, law enforcement seized Smith’s cell phone, which contained approximately 110 images of child pornography, including images of a known eight-year-old girl. Smith also emailed and engaged in Craigslist correspondence with multiple people in which they discussed the sexual abuse of children. Smith offered to distribute, and did distribute, child pornography involving children aged 10 and younger with online associates. Smith also offered to receive, and did receive, child pornography from an individual online.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Northampton Police Chief Jody Kasper; and Easthampton Police Chief Robert Alberti made the announcement today. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Branch Office prosecuted the case.
Dominican National Sentenced for Tax Refund Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for participating in a stolen identity refund fraud scheme that filed fraudulent federal income tax returns claiming hundreds of thousands of dollars in refunds.
Junior Alberto Lopez, 32, a Dominican national residing in Dorchester, was sentenced by U.S. District Court Judge Leo T. Sorokin to 30 months in prison, three years of supervised release, and ordered to pay restitution of $242,000. Lopez will be subject to deportation proceedings upon completion of his sentence. In June 2017, Lopez pleaded guilty to one count of false claims conspiracy, three counts of access device fraud, and one count of aggravated identity theft. Lopez was originally arrested in April 2015, but fled to the Dominican Republic shortly after his release on bail. Lopez was re-arrested in the Dominican Republic in December 2016 and extradited to the United States in March 2017.
Between May 2011 and February 2013, Lopez and at least two co-conspirators unlawfully obtained the names, addresses and dates of birth of more than 700 residents of Puerto Rico and elsewhere. They created and filed false income tax returns for 2010, 2011, and 2012, claiming refunds on behalf of those identity fraud victims. Lopez and his co-conspirators directed the IRS to issue tax refund checks and to deposit tax refunds onto prepaid debit cards, which were delivered to addresses in Boston and elsewhere that the conspiracy controlled. Lopez and his co-conspirators cashed and redistributed the checks and debit cards.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The Department of Justice’s Office of International Affairs provided assistance in securing Lopez’s extradition to the United States. Assistant U.S. Attorney Seth Kosto of Weinreb’s Criminal Division prosecuted the case.
Dominican National Sentenced for Dealing Heroin and CocaineRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Worcester for his role in a drug trafficking conspiracy.
Jose Federico Vasquez, 55, was sentenced by U.S. District Court Judge Timothy S. Hillman to five years in prison and four years of supervised release and will face deportation proceedings upon completion of his sentence. In May 2017, Federico Vasquez and four co-defendants pleaded guilty to conspiracy to distribute heroin and cocaine in Worcester County.
In the late summer of 2014, federal agents began investigating the narcotics trafficking activities of Osvaldo Vasquez and his associates, Federico Vasquez, Felix Melendez, Elvis Genao, and Hugo Santana-Dones. Between November 2014 and July 2015, with the help of a cooperating witness, agents made numerous recorded purchases of heroin - sometimes laced with fentanyl - from members of the conspiracy, seizing over 400 grams of heroin as a result.
During a court-authorized wiretap, Vasquez and his co-defendants were heard discussing the purchase and sale of multiple kilograms of narcotics and demonstrated an awareness of the potential deadly consequences of the narcotics they were distributing. On May 7, 2015, Osvaldo Vasquez, Melendez, and Federico Vasquez were intercepted discussing how the high number of heroin overdose deaths occurring at the time were cutting into their sales.
In August 2015, federal agents executed a search warrant at the conspirators’ homes. At Osvaldo Vasquez’s home in Worcester, agents found 679 grams of heroin and 723 grams of cocaine, as well as a Taurus PT .380 semi-automatic handgun. The phone that was the subject of the wiretap, cutting tools, and over $7,000 in cash were also recovered in the home. At the residence of Santana-Dones in Leominster, 224 grams of heroin, 110 grams of cocaine, and 8.9 grams of cocaine base (crack cocaine), along with cutting tools, a hydraulic kilogram press, over $1,300 in cash, and two phones that had been intercepted on the wiretap were recovered. At the residence of Melendez, who was on parole for state firearm and narcotics charges at the time, 3.1 grams of cocaine, a digital scale, over $1,000 in cash, and a phone that had been intercepted on the wiretap were recovered. At the residence of Federico Vasquez in Providence, agents found 3.4 grams of cocaine.
Santana-Dones was sentenced on Sept. 6, 2017, to 80 months in prison and will be subject to deportation hearings upon completion of his sentence; Osvaldo Vasquez, Melendez, and Genao are scheduled to be sentenced on Nov. 13, 2017, Oct. 25, 2017, and Sept. 19, 2017, respectively.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Fitchburg Police Chief Ernest F. Martineau; and Leominster Interim Police Chief Michael Goldman, made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office is prosecuting the cases.
Derry Man Pleads Guilty to Trafficking CocaineRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Edwin Ruiz, 30, of Derry, New Hampshire, pleaded guilty in federal court today to one count of possession with intent to distribute over 500 grams of cocaine.
Information based on court filings and statements made in court established that on December 1, 2016, Ruiz was driving a vehicle that was stopped by the Manchester Police Department. A search of the car resulted in the seizure of $8,264 and 799.8 grams of cocaine.
The defendant’s plea agreement includes a binding stipulated sentence of 90 months’ imprisonment. A sentencing hearing has been scheduled for January 2, 2018.
“The United States Attorney’s Office is committed to working with our law enforcement partners to identify and prosecute those who are distributing drugs in our community,” said Acting U.S. Attorney Farley. “I commend the work of the law enforcement officers in this case. Their efforts led to the seizure of this cocaine before it could be distributed.”
The case was investigated by the Manchester Police Department and the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
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Department of Justice Settles Employment Discrimination Claim on Behalf of U.S. Army ReservistRead the Press Release
The United States Department of Justice has resolved a claim that the Duval County Sheriff’s Department violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by terminating U.S. Army Reservist Jonathan J. Melendez (Melendez) on two occasions and retaliating against him after he pursed his claims in violation of USERRA, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Attorney General John Gore of the Department of Justice’s Civil Rights Division. The United States Attorney’s Office for the Southern District of Texas represents U.S. Army Specialist Jonathan J. Melendez in this matter and the parties have reached a settlement resolving all of his claims.
“The legal rights of members of our armed forces, who sacrifice their lives every day defending our nation and its freedoms, must be respected,” said Acting Assistant Attorney General John Gore. “This settlement sends a strong message that the Department of Justice is steadfast in its efforts to protect the rights of our servicemembers, their families, and all veterans of the United States.”
“Members of our armed service’s reserve forces make many sacrifices, including spending months or years away from their jobs and families,” said Acting U.S. Attorney Abe Martinez. “When they are deployed in the service of our country, their employment rights must be protected. They are entitled to retain their civilian employment and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations. My office and the Department of Justice are committed to ensuring that individuals do not lose their rights while they are protecting ours.”
Specialist Melendez was hired as a Deputy Sheriff on March 14, 2014, by the Duval County Sheriff’s Department. On October 8, 2015, Melendez enlisted in the U.S. Army Reserves. Martinez alleged that Duval County discriminated against him in violation of USERRA on four occasions. These occasions include Melendez’s termination from the Sheriff’s Department on January 1, 2016 while he was on leave for active military duty, his belated rehire upon his return from military duty in April 2016, and his termination again in October 2016 after he continued to pursue a USERRA lost wages claim against his former employer.
Congress enacted USERRA for three stated purposes: (1) to encourage non-career service in the uniformed services by reducing employment disadvantages; (2) to minimize the disruption to the lives of persons performing military service, their employers, and others by providing for the prompt reemployment of such persons upon their completion of such service; and (3) to prohibit discrimination against persons because of their service in the uniformed services or if they pursue a claim under USERRA.
Under the terms of the settlement, Duval County has agreed to compensate Melendez for his lost wages and benefits, and pay him liquidated damages.
This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service. The U.S. Attorney’s Office for the Southern District of Texas and the Employment Litigation Section of the Department of Justice’s Civil Rights Division handled this case and continue to work with the DOL to protect the jobs and benefits of all military service members.
Assistant U.S. Attorney Keith Edward Wyatt and Paralegal Specialist Raymond Babauta of the SDTX are handling the investigation along with Assistant Director Andrew Braniff of the Service Members and Veterans Initiative, and Alicia Johnson, Employment Litigation Section, Civil Rights Division, of the U.S. Department of Justice.
Department of Justice Settles Employment Discrimination Claim on Behalf of U.S. Army ReservistRead the Press Release
CORPUS CHRISTI, Texas - The United States Department of Justice has resolved a claim that the Duval County Sheriff’s Department violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by terminating U.S. Army Reservist Jonathan J. Melendez on two occasions and retaliating against him after he pursed his claims in violation of USERRA, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Attorney General John Gore of the Department of Justice’s Civil Rights Division. The United States Attorney’s Office for the Southern District of Texas represents Melendez in this matter and the parties have reached a settlement resolving all of his claims.
“Members of our armed service’s reserve forces make many sacrifices, including spending months or years away from their jobs and families,” said Martinez. “When they are deployed in the service of our country, their employment rights must be protected. They are entitled to retain their civilian employment and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations. My office and the Department of Justice are committed to ensuring that individuals do not lose their rights while they are protecting ours.”
“The legal rights of members of our armed forces, who sacrifice their lives every day defending our nation and its freedoms, must be respected,” said Gore. “This settlement sends a strong message that the Department of Justice is steadfast in its efforts to protect the rights of our servicemembers, their families and all veterans of the United States.”
Specialist Melendez was hired as a Deputy Sheriff on March 14, 2014, by the Duval County Sheriff’s Department. On Oct. 8, 2015, Melendez enlisted in the U.S. Army Reserves. Martinez alleged that Duval County discriminated against him in violation of USERRA on four occasions. These occasions include Melendez’s termination from the Sheriff’s Department on Jan. 1, 2016, while he was on leave for active military duty, his belated rehire upon his return from military duty in April 2016 and his termination again in October 2016 after he continued to pursue a USERRA lost wages claim against his former employer.
Congress enacted USERRA to encourage non-career service in the uniformed services by reducing employment disadvantages; to minimize the disruption to the lives of persons performing military service, their employers and others by providing for the prompt reemployment of such persons upon their completion of such service; and to prohibit discrimination against persons because of their service in the uniformed services or if they pursue a claim under USERRA.
Under the terms of the settlement, Duval County has agreed to compensate Melendez for his lost wages and benefits and pay him liquidated damages.
The U.S. Department of Labor (DOL) referred the matter following an investigation by their Veterans’ Employment and Training Service. The U.S. Attorney’s Office for the Southern District of Texas (SDTX) and the Employment Litigation Section of the Department of Justice’s Civil Rights Division are handling the case and work collaboratively with the DOL to protect the jobs and benefits of military service members.
Assistant U.S. Attorney Keith Edward Wyatt and Paralegal Specialist Raymond Babauta of the SDTX are handling the investigation along with Assistant Director Andrew Braniff of the Service Members and Veterans Initiative and Alicia Johnson of the Civil Rights Division’s Employment Litigation Section.
Corpus Christi Man Charged with Sex Trafficking of a ChildRead the Press Release
CORPUS CHRISTI, Texas - A 24-year-old Corpus Christi man has been charged with the attempted sex trafficking of a 14-year-old girl, announced Acting U.S. Attorney Abe Martinez.
A federal criminal complaint was filed yesterday against Marcus Anthony Tunchez. He was previously in custody on an unrelated firearms charge and is expected to make his initial appearance before U.S. Magistrate Judge B. Janice Ellington at 2:00 p.m. today on the new charges.
Tunchez was allegedly communicating with a person for the purpose of sex trafficking a child he believed was a 14-year-old girl. According to the charges, Tunchez expected to meet the child and transport her to a hotel where she would engage in a commercial sex act. Tunchez was taken into custody as he arrived at the designated meeting place.
If convicted, Tunchez faces a minimum of 10 years and up to life in federal prison and a possible $250,000 fine.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Drug Enforcement Administration conducted the investigation with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law
Convicted Felon Charged with Illegal Gun PossessionRead the Press Release
PHILADELPHIA – Tyrone Phillips, 46, of Philadelphia, was charged today by indictment[1] with possession of a firearm by a convicted felon, announced acting United States Attorney Louis D. Lappen. According to the indictment, on June 14, 2017, Phillips was in possession of a Ruger, Model P97DC, .45 caliber semi-automatic handgun, serial number 66346075, which was loaded with seven live rounds of .45 caliber ammunition.
If convicted, Phillips faces a maximum of 10-years’ imprisonment, up to three-years of supervised release, a fine of $250,000, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney José R. Arteaga.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Confidence Man Pleads Guilty in Fraud and Identity Theft SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that JOHN EDWARD TAYLOR, a/k/a “Jay Taylor,” a/k/a “Josie Reeser,” pled guilty before U.S. District Judge Laura Taylor Swain to wire fraud and sending threatening communications, in connection with his seven-year scheme to defraud multiple victims into providing their personal identifying information, which Taylor then used to make hundreds of thousands of dollars in unauthorized purchases.
Acting U.S. Attorney Joon H. Kim said: “John Edward Taylor’s online dating profile read like a dream – a millionaire businessman looking for love. But in reality, Taylor was using dating websites not to search for a girlfriend but for his next victim. Taylor promised business opportunities and romantic relationships just to steal his victims’ identities and loot their bank accounts, and then threatened those who discovered what he was doing. Now Taylor is facing time in federal prison for his fraudulent ways.”
According to the allegations in the Complaint, the Indictment, and statements made at related court proceedings:
JOHN EDWARD TAYLOR, a/k/a “Jay Taylor,” a/k/a “Josie Reeser,” stole, or attempted to steal, money, credit, and personal information from more than a dozen women (the “Victims”) in cities across the country, including New York City, Chicago, Atlanta, and Philadelphia.
TAYLOR contacted Victims using online matchmaking and networking websites, such as Match.com, eHarmony, Craigslist, and Seeking Arrangement. TAYLOR typically introduced himself as “Jay” and often falsely described himself as a wealthy businessman with oil and land interests in North Dakota. To some Victims, TAYLOR feigned interest in hiring the Victims to work on a new business TAYLOR purported to be creating. To other Victims, TAYLOR expressed an interest in a romantic and personal relationship. To most Victims, TAYLOR purported to be interested in both a personal and a professional relationship.
Using a variety of false pretenses, TAYLOR obtained the Victims’ personal identifying information, often including birthdates, addresses, and bank and credit account numbers. TAYLOR used the Victims’ personal identifying information to purchase goods, transfer funds, and open new accounts – all without authorization. In certain circumstances, TAYLOR opened accounts without the Victims’ knowledge. In other circumstances, TAYLOR opened accounts that he assured Victims were business accounts, but were, in fact, personal accounts in the Victims’ names, over which TAYLOR maintained exclusive control.
Often within a matter of months, Victims would discover thousands of dollars in unauthorized charges and transfers in their existing accounts, receive bills for accounts they had never created, or learn their existing accounts had been closed due to delinquency.
Independent of each other, multiple Victims confronted TAYLOR about his activities. To some, TAYLOR responded with insults. To others, TAYLOR responded with promises to repay the losses – and on at least one occasion attempted to repay one Victim with funds unlawfully obtained from another Victim. On multiple occasions, TAYLOR threatened to transmit sexually explicit images of the Victims – which he had obtained as part of his purported romantic relationships with them – to the Victims’ employers if the Victims tried to collect their debts.
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TAYLOR, 47, pled guilty to one count of wire fraud, which carries a maximum sentence of 30 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense, and one count of sending threatening interstate communications, which carries a maximum sentence of two years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. Taylor is scheduled to be sentenced by Judge Swain on January 4, 2018.
Mr. Kim praised the outstanding work of the Federal Bureau of Investigation for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Jonathan Rebold and Andrew Thomas are in charge of the case
Company Fined $500,000 for OSHA Violation That Caused Worker's Death at KC JobsiteRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Pacific, Mo., company was sentenced in federal court today for violating an OSHA regulation and causing the death of a Raymore, Mo., ironworker.
U.S. Chief District Judge Greg Kays ordered DNRB, Inc., to pay a fine of $500,000, the maximum penalty for the offense. The court ordered DNRB to pay quarterly installments of $25,000 over a period of five years.
DNRB was found guilty following a bench trial that concluded on Aug. 17, 2016. The court order setting out the findings of fact and conclusions of law was issued on Friday, Jan. 20, 2017.
In July 2014, DNRB – doing business as Fastrack Erectors – was a subcontractor in the construction of a 300,000-square-foot distribution warehouse located in Kansas City, Mo. Fastrack is an American Institute of Steel Construction-certified steel erection company that specializes in structural steel, miscellaneous steel, pre-engineered metal buildings, ornamental metal handrail, and precast installation. Fastrack supplied on-site supervisors (who are based in the St. Louis, Mo., area) while the ironworkers were hired from the union local in Kansas City, Mo.
On July 24, 2014, two Fastrack ironworker employees were receiving a bundle of roof decking sheet metal and setting it on top of the building’s bar joists. The employees’ task required them to guide the decking bundle to land it. Each decking bundle was 26 feet long by 36 inches wide. The employees accessed the top of the building from a scissor lift and walked approximately 15 feet along a joist without wearing any fall protection. They walked on trusses that were nine inches wide, or bar joists which were five inches wide. Other ironworkers secured the decking to the trusses with screws and welds. These workers did not use fall protection.
Eric Roach, 22, one of the employees landing the decking, fell approximately 30 feet to the ground and was transported to a local hospital where he died the following day.
Fastrack was a subcontractor to ARCO National Construction-KC, Inc. According to court documents, the contract between ARCO and Fastrack required that Fastrack “personnel who are working or present at heights in excess of 6 feet shall be provided, by (Fastrack) adequate fall protection.” Fastrack failed to enforce the use of fall protection.
No fall protection equipment was provided by the company. Both working foremen on the site were told, or questioned, about the lack of fall protection equipment and were in a position to personally observe employees failing to use fall protection equipment. At least one of the foremen was working on the decking in the immediate area of the employees; he failed to wear fall protection himself and failed to enforce the use of fall protection by the employees.
Federal statutes require that each employee engaged in a steel erection activity who is on a walking/working surface with an unprotected side or edge more than 15 feet above a lower level shall be protected from fall hazards by guardrail systems, safety net systems, personal fall arrest systems, positioning device systems or fall restraint systems.
DNRB voluntarily dissolved as a Missouri corporation on Jan. 15, 2016.
This case was prosecuted by Assistant U.S. Attorneys Paul S. Becker and Stacey Perkins Rock, and Special Assistant U.S. Attorneys Evert Van Wijk and Rachel Parsons, both of the Department of Labor – Office of Solicitor. It was investigated by the Occupational Safety and Health Administration.
Chinese National Sentenced for Fraudulently Obtaining a Student VisaRead the Press Release
BOSTON - A Chinese national charged with defrauding the Department of Homeland Security (DHS) in its administration of the Student and Exchange Visitor Program pleaded guilty and was sentenced today in federal court in Boston.
Yue Wang, 25, a Chinese national residing in Malden, pleaded guilty to one count of conspiracy to defraud the United States. U.S. District Court Judge Rya W. Zobel sentenced Wang to time-served and ordered her immediately removed from the United States to the People’s Republic of China.
On May 24, 2016, working off a tip, a law enforcement officer interviewed Wang about her experience taking the Test of English as a Foreign Language (TOEFL) exam. Wang admitted to taking the test on at least three occasions on behalf of registered test takers. To take the exam, Wang received Chinese passports through the mail or in person and used the passports as identification to take the exam as if she were the person represented in the passports. Wang received nearly $7,000 to take TOEFL exams on behalf of three registered test takers. These co-conspirators then used those fraudulently obtained scores to gain admission to United States colleges, which made them eligible to receive F-1 non-immigrant student visas to enter the country and remain for the duration of their studies.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and William B. Gannon, Special Agent in Charge of the U.S. State Department's Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit prosecuted the case.
Chinese National Pleads Guilty to Software Piracy SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Chinese national pleaded guilty in federal court today to his role in an international, multi-million dollar software piracy scheme.
Wen Tao Liu, also known as Orland Liu, 37, a citizen of the People’s Republic of China, pleaded guilty before U.S. Chief District Judge Greg Kays to one count of conspiracy and one count of trafficking in counterfeit labels. Liu was arrested on June 15, 2016, at Dallas Fort Worth International airport on an American Airlines flight during his return flight to China, and remains in federal custody.
Investigators have seized more than $20 million in assets from defendants in several separate but related cases, who are estimated to have sold in excess of $100 million worth of illicit, unauthorized and counterfeit software products to thousands of online customers.
Liu, doing business as Haitu International Group Co. Limited (an entity based in Hong Kong), participated in a conspiracy with Casey Lee Ross of Kansas City, Mo. (doing business as Software Slashers), David Reece of Fort Lauderdale, Fla., and others from March 10, 2010, to Feb. 2, 2015, to commit the offenses of unauthorized solicitation of access devices, trafficking in counterfeit goods and smuggling goods into the United States.
Liu obtained and sold counterfeit, illicit, and/or unauthorized Microsoft software, software products and related components, including unauthorized product key codes and counterfeit product key cards, causing the Microsoft Corporation millions of dollars in losses. (Product key codes are used to obtain full access to unlocked, licensed versions of various copyrighted software programs.)
At the time of his arrest, Liu possessed approximately 318,213 unauthorized Microsoft product key codes, which he had obtained from illicit sources and sold to others. Those product key codes, worth approximately $250 each, constitutes a loss of approximately $79,553,250 to Microsoft.
Liu also admitted that he sold 500 counterfeit Microsoft Office “Lenovo” product key cards to an undercover law enforcement agent for $35,000.
Liu is the eighth defendant to plead guilty in the software piracy scheme. The investigation began when federal agents in Kansas City, Mo., learned in 2013 that Ross had purchased (and redistributed) tens of thousands of illegitimate and unauthorized Microsoft product key codes and counterfeit product key cards from sources in China.
Ross pleaded guilty and has been sentenced in a separate but related case. Ross admitted that he distributed tens of thousands of these illegitimate and unauthorized product key codes and counterfeit Microsoft product key cards to co-conspirators in the United States, who in turn sold the product key codes and counterfeit product key cards through their respective Web sites as well as on e-commerce sites such as eBay or Amazon.
Reece pleaded guilty and awaits sentencing in a separate but related case. Reece admitted that he received approximately $2.5 million worth of illicit software key cards. Reece then resold them to other illicit software suppliers and customers. Liu admitted today that he sent approximately 20 shipments of contraband to Reece between Sept. 21, 2013, and March 14, 2015, with each shipment containing approximately 500 Microsoft Office “Lenovo” product key cards, for a total of approximately 10,000 contraband items. At an estimated loss of $250 per item, this constitutes a total loss of approximately $2.5 million.
Under federal statutes, Liu is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick D. Daly and Curt Bohling. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Children’s Singer/Songwriter Charged with Receipt and Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A music teacher and singer/songwriter who performs for children at synagogues, Jewish community centers, camps and conventions nationwide was arrested and charged today with receiving and distributing images of child sexual abuse, Acting U.S. Attorney William E. Fitzpatrick announced.
Eric S. Komar, 46, of Hillsborough, New Jersey, was arrested by special agents of the FBI Child Exploitation Task Force. He is charged by complaint with one count of receiving and distributing child pornography. Komar made his initial appearance today before U.S. Magistrate Court Judge James B. Clark III in Newark federal court and was remanded without bail.
According to documents filed in this case and statements made in court:
Komar used a peer-to-peer file-sharing program to obtain and distribute images and videos that including images of prepubescent children being sexually abused.
Anyone with information regarding possible victims of this activity is urged to contact the FBI in Newark at 973-792-3000.
The count with which Komar is charged carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; members of the Somerset County Prosecutor’s Office, under the direction of Somerset County Prosecutor Michael H. Robertson and County Chief of Detectives John W. Fodor; the Hillsborough Township Police Department, under the direction of Chief Darren Powell, and the N.J. Regional Computer Forensics Laboratory, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Leticia Vandehaar of the U.S. Attorney’s Office Criminal Division in Newark.
Chicago Man Facing Federal Drug Charge After Agents Seize More Than 50 Kilograms of Heroin and Cocaine from South Side AtticRead the Press Release
CHICAGO — A Chicago man has been charged with a federal drug violation after agents seized more than 50 kilograms of heroin and cocaine from his attic apartment on the South Side.
MARCELINO NUNEZ-HURTADO, 47, is charged with possession of a controlled substance with the intent to distribute. On Aug. 22, 2017, agents searched an attic apartment Nunez-Hurtado rented in Chicago’s Gage Park neighborhood and discovered tools used to measure and package narcotics, according to a criminal complaint and affidavit filed in federal court in Chicago. After noticing a screwdriver on the floor just inside the attic door, agents discovered an access panel above the landing of the stairs leading to the attic, the complaint states. The panel led to a compartment where agents discovered numerous rectangular bricks of heroin weighing more than 41 kilograms, and multiple bricks of cocaine weighing more than nine kilograms, the complaint states.
Nunez-Hurtado was arrested on Sept. 13, 2017. A detention hearing is scheduled for Sept. 26, 2017, at 2:30 p.m., before U.S. Magistrate Judge Michael T. Mason in Chicago.
The complaint was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago.
According to the complaint, ICE uncovered the alleged drug trafficking through the use of a confidential informant and extensive surveillance. The informant provided information in July that Nunez-Hurtado was involved in drug trafficking activities throughout the Chicago area, the complaint states. Hours before the attic search, agents observed Nunez-Hurtado hand suspected cocaine to an individual sitting in the passenger seat of a Cadillac Escalade parked in an alley behind the Gage Park residence, the complaint states.
The drug charge carries a maximum sentence of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that a complaint 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 government is represented by Assistant U.S. Attorney Rebekah Holman.
Cambria County Woman Admits Stealing from MailboxesRead the Press Release
JOHNSTOWN, Pa. – A resident of Patton, Pa. pleaded guilty in federal court to a charge of theft of mail, Acting United States Attorney Soo C. Song announced today.
Jennifer R. Miller, 28, of Patton, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, in Dec. 2011 Miller stole various pieces of mail from mailboxes.
Judge Gibson scheduled sentencing for February 6, 2018, at 1:30 p.m. The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation that led to the prosecution of Miller.
Austin Man Admits to Child Pornography Charges Involving Two Minor Victims, One a Three-Year-Old ChildRead the Press Release
DALLAS, Texas — Javier Giovanni Araujo, 34, of Austin, Texas, appeared this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of conspiracy to produce child pornography and one count of transportation of child pornography, announced John Parker, United States Attorney for the Northern District of Texas.
Araujo faces a statutory penalty of not less than 15 years and not more than 30 years in federal prison, a $250,000 fine and a lifetime of supervised release for the conspiracy count and a statutory penalty of not less than 5 years and not more than 20 years in federal prison, a $250,000 fine, and a lifetime of supervised release for the transportation count. Araujo has been in custody since his arrest in December 2016. A sentencing hearing has been set for January 10, 2018.
Co-defendant Garrett Alexander Mack, 29, of Dallas, Texas, also pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on November 29, 2017.
According to documents filed in the case, from September 26, 2016 through October 7, 2016, Araujo and Mack discussed sexually abusing children and exchanged photos and videos of child pornography. Araujo agreed with Mack to produce child pornography involving a three-year-old child to which Araujo had access. Araujo coerced the child into engaging in sexually explicit conduct and produced photos and videos of the conduct.
Araujo also coerced another minor child to engage in sexually explicit conduct with him, which he recorded and transmitted the video to Mack.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation, the Dallas Police Department, and the Austin Police Department investigated. Assistant U.S. Attorney Jamie L. Hoxie is in charge of the prosecution.
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Asplundh Tree Expert Co. Charged with Recruiting, Hiring, and Employing Unauthorized AliensRead the Press Release
Asplundh Tree Expert, Co., one of the largest privately-held companies in the United States, was charged today by Information[1] with one count of unlawfully employing aliens, in connection with a scheme in which Asplundh accepted and received identification documents knowing those documents to be procured by fraud and illegally obtained, announced acting United States Attorney Louis D. Lappen. Asplundh, headquartered in Willow Grove, Pennsylvania, is an industry leader in tree trimming and brush clearance for power and gas lines. The information alleges that in or about 2010 to on or about December 2014, Asplundh managers, including a Vice-President and Sponsor, directed their personnel to accept false identification from prospective employees. The acceptance of these false documents facilitated the re-hiring of Asplundh employees who had been determined previously by Homeland Security Investigations to be aliens unauthorized to work in the United States.
Asplundh supervisors accepted identification documents, such as legal permanent resident cards (green cards), Social Security Cards, and drivers’ licenses as evidence of authorized status or employment in the United States, knowing that those identification documents were illegitimate. This facilitated the hiring and rehiring of workers that were not eligible to be employed in the United States. Asplundh management delegated the recruitment and hiring of employees to lower level supervisors and decentralized its hiring practices in order to facilitate the hiring of these ineligible workers.
Three individual Asplundh supervisors, including a Vice-President, have already entered pleas of guilty to felony counts of conspiracy to commit fraud and misuse visas and fraud and misuse of visas in connection with this case.
If convicted the defendant faces a maximum sentence of not more than five years’ probation, a fine, with a maximum of $3,000 for each unauthorized alien with respect to whom such violation occurs, and any applicable forfeiture.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Acting Manhattan U.S. Attorney Announces Award of $296 Million Judgment Against Allied Home Mortgage Entities for Civil Mortgage FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced the award of a judgment yesterday totaling $296,298,325 against the entities formerly known as ALLIED HOME MORTGAGE CAPITAL CORPORATION (“ALLIED CAPITAL”) and ALLIED HOME MORTGAGE CORPORATION (“ALLIED CORPORATION”) (collectively, “ALLIED”), and a judgment in the amount of $25,340,496 against ALLIED’s President and Chief Executive Officer JIM C. HODGE (“HODGE”), for over a decade of fraudulent misconduct while participating in the Federal Housing Administration (“FHA”) mortgage insurance program. In November 2016, after a five-week trial in Houston, Texas, a unanimous jury found that ALLIED and HODGE violated the False Claims Act (“FCA”) and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”), and caused over $92 million in damages to the United States. The judgment, ordered by the district court on September 14, 2017, trebles the jury’s $92 million FCA verdict and imposes additional statutory penalties under the FCA and FIRREA as determined by the Court in light of ALLIED and HODGE’s misconduct. The judgment was awarded by United States District Judge George C. Hanks Jr. of the Southern District of Texas, who presided over the trial.
Under the FCA, damages are subject to mandatory trebling. The FCA also provides for a per-violation penalty, which during the relevant time period was $5,500 to $11,000 for each violation, and FIRREA provides for a penalty of up to $1.1 million for each violation. In addition to trebling the $92 million damages determined by the jury, the Court imposed a penalty of $10,000 for each violation of the FCA found by the jury, for a total of $12,950,000 in FCA penalties, and the maximum $1.1 million penalty for each violation of FIRREA, for a total of $6.6 million in FIRREA penalties. Pursuant to the Court’s order, HODGE is liable for over $25 million in damages and penalties.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Jim Hodge and Allied defrauded a federal mortgage insurance program designed to help spread the dream of homeownership, and then lied about it repeatedly. A jury saw through their lies, and now the Court has imposed millions of dollars in additional penalties. This Office will continue to investigate and root out fraud in all of its forms.”
According to the evidence presented at trial, ALLIED and HODGE abused the FHA mortgage insurance program by falsely certifying that thousands of high risk, low quality loans were eligible for FHA insurance and then submitting insurance claims to FHA when any of those loans defaulted. Specifically, ALLIED CAPITAL, with the knowledge and approval of HODGE, originated FHA-insured loans from more than one hundred “shadow” branch offices without the authorization of the United States Department of Housing and Urban Development (“HUD”), in order to evade oversight and disguise default rates. In addition, ALLIED CORPORATION, as a participant in HUD’s Direct Endorsement Lender program, recklessly certified thousands of loans for FHA insurance that were in fact ineligible for insurance under HUD’s guidelines. Finally, ALLIED and HODGE operated a dysfunctional quality control department that was not only unqualified and understaffed but also, at HODGE’s direction, submitted falsified quality control reports to HUD auditors and falsely certified that Allied was in compliance with HUD quality control guidelines.
The United States filed a complaint-in-intervention in this lawsuit in November 2011. At that time, the action was pending as a qui tam whistleblower lawsuit in the United States District Court for the Southern District of New York. In September 2012, the action was transferred to the United States District Court for the Southern District of Texas. The jury returned its verdict in favor of the government on November 30, 2016.
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Mr. Kim thanked the HUD Office of General Counsel and the HUD Office of the Inspector General for their extraordinary assistance with this case.
This case is being handled by the Civil Frauds Unit of the United States Attorney’s Office for the Southern District of New York. Assistant United States Attorneys Jeannette A. Vargas, Joseph N. Cordaro, Jean-David Barnea, Caleb Hayes-Deats, and Stephen Cha-Kim, who are designated as Special Assistant United States Attorneys for the Southern District of Texas for purposes of this matter, are in charge of the case.
18 September 2017
Zia Pueblo Man Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Dale Dominic Galvan, 40, an enrolled member of the Zia Pueblo, pled guilty today in federal court to a felony child abuse charge. Under the terms of his plea agreement, Galvan will be sentenced within the range of six to 24 months in federal prison.
Galvan was indicted on May 12, 2015, and was charged with abandonment or abuse of a child under the age of 18 on April 15, 2014, on the Santa Clara Pueblo in Rio Arriba County, N.M.
During today’s proceedings, Galvan pled guilty to a felony information charging him with child abuse. In entering the guilty plea, Galvan admitted that on April 15, 2014, he exposed a two-year-old child to inclement weather by leaving the child in a vehicle for at least 20 to 45 minutes on a cold night with a temperature of about 29 degrees Fahrenheit. The child was dressed only in a t-shirt, without a diaper, socks, or pants and was found to be cold and shivering. Galvan further admitted that his actions caused and permitted a substantial and unjustifiable risk of serious harm to the safety and health of the child. A sentencing hearing has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services, and the Santa Clara Pueblo Tribal Police Department. Special Assistant U.S. Attorney Lucy B. Solimon prosecuted the case.
Woman Enters Guilty Plea in Federal Court to Making False Statements Under Oath to Immigration OfficialsRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Merav Hizmi, age 41, of Surfside Beach, SC, pled guilty in federal court in Florence to Making False Statements Under Oath to an Immigration Official, a violation of Title 18, United States Code, Section 1015(a). United States District Judge Bryan Harwell, of Florence, accepted the plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that Hizmi, an Israeli citizen who had married another Israeli citizen in 1996, came to the United States and, without having been divorced from her Israeli husband, married a United States citizen in 2003. During the process of attempting to change her immigration status based on her alleged marriage to the U. S. citizen, Hizmi was interviewed by an official of United States Citizenship and Immigration Services (USCIS). During the interview, Hizmi stated under oath that she was not and had never been married to anyone other than her United States citizen spouse, which statement she knew to be false.
Ms. Drake stated the maximum penalty the defendant can receive is imprisonment for 5 years and a fine of $250,000.
The case was investigated by agents of ICE-Homeland Security Investigations and the United States Citizenship and Immigration Services- Fraud Detection and National Security Directorate. Assistant United States Attorney A. Bradley Parham of the Florence office handled the case.
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Watervliet Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Francisco Rivera, age 37, of Watervliet, New York, pled guilty today to conspiring to distribute cocaine.
The announcement was made by Acting United States Attorney Grant C. Jaquith; Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division; and Acting Albany Police Chief Robert Sears.
As part of his guilty plea, Rivera admitted that he arranged for someone in Puerto Rico to mail him kilogram and half-kilogram quantities of cocaine that were hidden within everyday items such as scented candles and board game boxes. He arranged for cocaine shipments to be mailed to residential addresses in Albany, Rensselaer and Schenectady Counties where he would pick them up and then deliver them to his customers.
United States District Judge Mae A. D’Agostino is scheduled to sentence Rivera on January 16, 2018. He faces at least 10 years and up to life in prison, as well as post-imprisonment supervised release of at least 8 years and up to life. 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. Rivera has also agreed to forfeit $24,500 in cash drug proceeds seized from his Watervliet residence, as well as a 2011 BMW X-6 SUV that he used to transport cocaine.
This case was investigated by the USPIS and Albany Police Department, with assistance from Homeland Security Investigations and U.S. Customs and Border Protection, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Union County, New Jersey, Man Admits Distributing Sexually Explicit Images and Videos of ChildrenRead the Press Release
TRENTON, N.J. – A Union County, New Jersey, man today admitted he used his home computer to distribute sexually explicit videos and images of children, Acting U.S. Attorney William E. Fitzpatrick announced.
Thomas J. Leonard, 35, of Elizabeth, 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 distributing child pornography.
According to documents filed in this case and statements made in court:
Leonard used a file-sharing program to obtain and distribute over the Internet images and videos of children engaged in sexual acts.
The count to which Leonard pleaded guilty carries a statutory mandatory minimum term of five years in prison, a maximum of 20 years in prison, and a fine of up to $250,000. Sentencing is scheduled for Jan. 29, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea. He also thanked the Union County Prosecutor’s Office, the N.J. State Police, and the N.J. Regional Computer Forensics Laboratory, for their assistance.
The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Office in Trenton.
Anyone with information regarding possible victims of this activity is urged to contact the FBI in Newark: 973-792-3000.
Defense counsel: Rubin M. Sinins Esq., Springfield, New Jersey
Two Plead Guilty to Trafficking Fentanyl Laced HeroinRead the Press Release
PROVIDENCE – Agustin Acevedo, 50, and Dismery Uceta, 43, of Providence, pleaded guilty in federal court in Providence today to trafficking a kilogram of fentanyl laced heroin to Rhode Island from New York. Acevedo and Uceta were arrested in April 2016 as they drove to Rhode Island after picking up a kilogram of heroin in the Bronx.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Agustin Acevedo pleaded guilty to one count each of conspiracy to distribute and possess with the intent to distribute heroin, and possession with the intent to distribute 100 grams or more of heroin. Dismery Uceta pleaded guilty to one count each of conspiracy to possess with intent to distribute heroin and possession with intent to distribute heroin.
Acevedo and Uceta’s guilty pleas are announced by Acting United States Attorney Stephen G. Dambruch; Michael J. Ferguson, Special Agent in Charge of DEA, Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police, and Warwick Police Chief Colonel Stephen M. McCartney.
According to court documents and information presented to the court, in March 2016, as part of an ongoing DEA drug trafficking investigation, DEA agents and members of the Rhode Island DEA Drug Task Force determined that on April 29, 2016, Acevedo rented a vehicle in Rhode Island, and that he and Uceta drove to the Bronx, New York. They drove back to Rhode Island early the next day. As the vehicle was returning to Rhode Island, DEA agents, who were conducting surveillance of the vehicle, reported to Rhode Island State Police that the vehicle was traveling on Route 95 at speeds of approximately 80 mph. A Rhode Island State Trooper stopped the vehicle on Route 95 between exits 5 and 6 for speeding.
A speeding citation was issued to the driver, Agustin Acevedo. During the traffic stop, the trooper observed a brick-like object wrapped in a plastic bag in plain view in an open handbag on the floor of the vehicle. The occupants of the vehicle consented to a search of the vehicle and Uceta to a search of the handbag. A State Police K-9 gave a positive alert to the area near where the handbag was located. A field test of the brick-like object tested positive for heroin. Acevedo and Uceta were detained by DEA agents who also responded to the traffic stop.
On May 3, 2016, a Warwick Police Department Detective received the kilogram of suspected heroin for further analysis. He later identified the left index finger impression of Acevedo on the outer side of the kilogram wrapping. Forensic testing at the New England Regional Laboratory for DEA revealed that the kilogram of heroin was laced with fentanyl and dipyrone (an analgesic).
Acevedo and Uceta have been detained in federal custody since their arrest. They are scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on December 4, 2017.
At sentencing, Agustin Acevedo faces statutory sentences of 5 - 40 years imprisonment followed by 4 years to lifetime supervised release, and up to a $5,000,000 fine on each charge; Dismery Uceta, faces statutory sentences of up to 20 years imprisonment followed by at least 3 years supervised release, and a fine of up to $1,000,000 on each charge.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The Rhode Island DEA Drug Task Force is comprised of law enforcement personnel from the DEA, Rhode Island State Police, and the Providence, East Providence, Central Falls, Woonsocket, West Warwick, Cranston, Pawtucket, Newport, South Kingstown, and Warwick Police Departments.
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Two Men Charged in Northern California in Alleged Multi-Million Dollar Investment Fraud and Tax Evasion SchemeRead the Press Release
Two men have been indicted by a federal grand jury in San Francisco on charges related to an investment fund scheme, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and the U.S. Attorney’s Office for the Northern District of California.
G. Steven Burrill is charged with wire fraud, investment adviser fraud, and tax evasion in connection with an alleged scheme to siphon money from an investment fund. Marc Howard Berger is charged with aiding and assisting in the preparation of tax returns in which Burrill failed to report income he received from the scheme.
According to the 34-count indictment, Burrill was the owner and CEO of Burrill & Company (B&C) and a number of related entities. Through the entities, Burrill allegedly managed investment funds, including Burrill Life Sciences Capital Fund III, L.P. (the “Fund”), an investment fund focused on the life sciences industry. The Fund was comprised of total committed capital of approximately $283 million, most of which, according to the indictment, was committed by limited partners. The indictment alleges that Burrill induced limited partners to contribute capital to the Fund with false and misleading letters. In addition, the indictment alleges Burrill caused the Fund to transfer millions of dollars in management fees to companies he controlled; the money was in excess of the management fees that were due and allowable under the agreements that governed the Fund. Further, the indictment alleges Burrill filed false and fraudulent U.S. Individual Income Tax Return, Forms 1040, which understated his income by excluding money Burrill transferred out of the Fund and into accounts he controlled.
Berger is alleged to have willfully assisted Burrill in preparing and presenting to the IRS three income tax returns in which Burrill understated his income.
In sum, Burrill is charged with 26 counts of wire fraud, one count of investment-adviser fraud, and one count of tax evasion. Additionally, Berger is charged with three counts of aiding and assisting in the preparation of a false tax return.
Berger was arrested this morning and made his initial appearance in federal court in San Francisco. Federal Magistrate Judge Sallie Kim arraigned Berger, who pleaded not guilty and has been released on bond. Berger’s next scheduled appearance is on Oct. 3 before the Honorable Richard Seeborg. Burrill is scheduled to make his initial appearance on Oct. 2.
If convicted, Burrill faces a statutory maximum sentence of 20 years in prison and a fine of $250,000 or twice the gross gain for each count of wire fraud; five years in prison and a fine of $250,000 for investment-adviser fraud, and five years in prison and a $250,000 fine for tax evasion. Berger faces a statutory maximum penalty of three years in prison, if convicted of aiding and assisting in the preparation of a false tax return. Additional terms of supervised release, fines, and restitution may also be imposed; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of the IRS Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney Robert Leach and Trial Attorney Lori Hendrickson of the Tax Division, who are prosecuting the case. The San Francisco Regional Office of the Securities and Exchange Commission provided assistance in this matter.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Two Marietta men sentenced to prison for gun, drug offensesRead the Press Release
ATLANTA - Kyle Matthew Nixon and Eric Eugene Gamez have been sentenced to prison for drug trafficking and gun offenses.
“These defendants were distributing cocaine and heroin while protecting their drug business with an arsenal of firearms,” said U. S. Attorney John Horn. “Their actions disregarded the safety of our community, but swift action by law enforcement kept them from causing further harm.”
“The success of this investigation is a result of the collaborative efforts of ATF and our local partners,” said ATF Special Agent in Charge Wayne Dixie. “ATF will continue to dedicate federal resources in conjunction with the crucial contributions of local agencies towards the eradication illegal drug and firearm activity.”
According to U.S. Attorney Horn, the charges and other information presented in court: On April 6, 2016, agents executed a search warrant at the residence of Kyle Nixon. Nixon and Eric Gamez attempted to flee from the house, but were quickly apprehended by law enforcement. Inside the house, Nixon and Gamez were cutting and packaging over 400 grams of cocaine and over 300 grams of heroin, which they intended to sell. Agents also seized over $13,000 in cash and 19 firearms, including an AK-47 rifle.
On July 20, 2017, Kyle Matthew Nixon, 26, of Marietta, Georgia, was sentenced to eight years in prison to be followed by five years of supervised release. Nixon was convicted on these charges on April 11, 2017, after he pleaded guilty.
On September 14, 2017, Eric Eugene Gamez, 27, also of Marietta, Georgia, was sentenced to nine years, nine months in prison to be followed by five years of supervised release. Gamez was convicted on these charges on February 28, 2017, after he pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marietta/Cobb/Smyrna Organized Crime Unit.
Assistant U.S. Attorney Jolee Porter 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.gov.
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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Togolese National Charged with Identity and Mail FraudRead the Press Release
BOSTON - Roukayatou Damerogo, 32, a citizen of the Republic of Togo, residing in East Hartford, Conn., was arrested on Friday, Sept. 15, 2017, and charged in federal court in Boston with one count of identity theft and one count of mail fraud. U.S Magistrate Judge David H. Hennessy scheduled a detention and probable cause hearing for Monday, Oct. 2, 2017.
According to court documents, in August 2017, a Cape Cod resident contacted the United States Post Office to report overdue mail deliveries. Further inquiry showed that an unknown person had placed a “mail hold” on the customer’s residence. When the customer traveled to his USPS branch to remove the hold and to pick up his mail, he found a box addressed to him containing 10 new Fitbit Exercise Bands. The customer had previously been the victim of fraudulent credit card transactions and believed the Fitbit purchases stemmed from the compromised credit card.
On Aug. 16, 2017, an individual purporting to be the USPS customer called USPS inquiring about the package of Fitbits. USPS informed law enforcement and they coordinated a time for the package to be delivered to the fraudulent customer, later revealed to be Damerogo. Immediately after retrieving the package, law enforcement stopped Damerogo, questioned her, and placed her under arrest.
The charge of identity theft provides for a sentence of no greater than 20 in prison, three years of supervised release, and a fine of $250,000. The charge of mail fraud provides for a sentence of no greater than 15 years in prison, three years of supervised release, and a fine of up to $250,000. Damerogo, who is illegally present in the United States, will also be subject to deportation. 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; and Brewster Police Chief Richard Koch made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting this case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Men Enter Guilty Pleas in Federal Court on Conducting an Illegal Gambling Business ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Lawson Mangum, age 65, Anthony Todd, age 48, and Herbert Todd, age 49, all of Myrtle Beach, SC, pled guilty in federal court in Florence to Conducting an Illegal Gambling Business, a violation of Title 18, United States Code, Section 1955. United States District Judge Bryan Harwell, of Florence, accepted the pleas and will impose sentences after he has reviewed the presentence reports, which will be prepared by the U.S. Probation Office.
The evidence presented at the guilty plea hearing established that these defendants along with at least two other individuals were operating illegal gambling businesses in the Myrtle Beach area beginning as early as 2014. Mangum supplied the gambling machines to the Todd brothers who then installed the machines at their various gambling locations. The Todd brothers collected the gambling proceeds from the machines and split the proceeds with Mangum. During the execution of multiple search warrants, agents with the South Carolina Law Enforcement Division (SLED) and ICE-Homeland Security Investigations seized over 50 illegal gambling machines from businesses operated by this group of defendants. Ledgers seized during the search of one of these locations revealed that during January 2014 to August 2015, this gambling operation realized a profit of over $218,000.
Ms. Drake stated the maximum penalty the defendants can receive is imprisonment for 5 years and a fine of $250,000.
The case was investigated by agents of the South Carolina Law Enforcement Division and ICE-Homeland Security Investigations. Assistant United States Attorney A. Bradley Parham of the Florence office handled the case.
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Third Texas Man Pleads Guilty to Hate Crime for Assault Based on Victim’s Sexual OrientationRead the Press Release
Chancler Encalade, 20, pleaded guilty today to assaulting a man because of the victim’s sexual orientation, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office of the Eastern District of Texas, and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives’ Dallas Division announced.
According to the plea agreement, Encalade admitted that he, Nigel Garrett, and Anthony Shelton used Grindr, a social media dating platform for gay men, to arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted the victim, and made derogatory statements to the victim for being gay. The defendants brandished a firearm during the home invasion, and they stole the victim’s property, including his motor vehicle.
A federal grand jury previously had returned an eighteen-count superseding indictment, against Encalade and three other men, which included charges for hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged the defendants with conspiring to cause bodily injury because of the victims’ sexual orientation during four home invasions in Plano, Frisco, and Aubrey, Texas, from January 17 to February 7, 2017. Nigel Garrett and Cameron Ajiduah subsequently pleaded guilty to hate crime charges from this indictment, and both await sentencing.
“The Justice Department will not tolerate hate crimes against any individual, for any reason, including sexual orientation,” said Acting Assistant Attorney General John Gore. “Hate crimes are violent crimes and they attack the fundamental principles of the United States. The Justice Department will continue to aggressively investigate and prosecute hate crimes.”
“Crimes of violence are an investigative priority for the U.S. Attorney’s Office,” said Acting U.S. Attorney Brit Featherston. “An assault perpetrated because of one’s race, ethnicity, religion, nationality, sexual orientation, or among other prohibited factors, is an attack on American values. We will leave no stone un-turned to prosecute hate crimes.”
Encalade faces a maximum statutory penalty of life in prison and a $250,000 fine for his guilty plea to the hate crime charge under federal statutes, the defendant faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The investigation is being conducted by the ATF, the Plano Police Department, and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.
Texas Man Sentenced to 2 Years in Federal Prison for Running Ponzi SchemeRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On September 13, 2017, U.S. District Judge Paula Xinis sentenced Sidney J. Charles, Jr., age 50, of Levelland, Texas, to two years in prison followed by three years of supervised release for wire fraud. The District Court also entered orders of forfeiture and restitution in the amount of $249,706.30.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the plea agreement, starting in or around August 2009, Charles founded The Borrowing Station, LLC (“The Borrowing Station”), a Nevada limited liability company with its principal place of business in Bowie, Maryland. From at least October 2009 through at least July 2011, Charles served as the president and chief executive officer of The Borrowing Station. Charles marketed The Borrowing Station as an established investment firm that offered significant returns on investments.
From at least October 2009 through at least July 2011, The Borrowing Station, acting through its officers, employees, and agents, including Charles, orchestrated and operated a scheme to solicit investors with false promises of high rates of guaranteed return on their investments. Charles, did not generate any material revenue for the investors, used funds from later investors to make payments to earlier investors, and used investor funds to enrich himself.
Between at least October 2009 through at least July 2011, in the District of Maryland and elsewhere, The Borrowing Station, through Charles and others, solicited and accepted more than $250,000 from at least 17 individuals and entities for the purpose of participating in a pooled investment vehicle that traded off-exchange leveraged or margined foreign currency contracts (“forex” or “foreign currency”). As part of the scheme to defraud, Charles solicited and accepted these monies for the ostensible purpose of participating in a pooled investment vehicle that traded off-exchange leveraged or margined forex. The subsequent loss of those funds resulted in substantial financial hardship to at least one of the investors.
Charles falsely advertised The Borrowing Station as an established, successful, and safe investment firm. The Borrowing Station website stated, for example, that The Borrowing Station “is an established company in the United States, specializing in Retirement and Education Savings.”
In addition, Charles solicited investors directly and through a website, www.earn25percent.com, a The Borrowing Station website, with false promises that investors could earn substantial investment returns such as 25% per year or 10% per month. Charles also falsely claimed that pool participant funds were guaranteed against trading losses.
The Borrowing Station did not make these returns or guarantee against trading losses, as Charles had falsely represented. Rather, Charles paid pool participants with other pool participants’ funds rather than from any funds generated by trading forex, and deposited only a portion of pool participant funds into actual trading accounts. Charles also hid trading losses from pool participants, including substantial losses resulting from unsuccessful forex trades. Charles used pool participant funds to pay for personal expenses, to make purported profit or commission payments to other pool participants, and to fund Borrowing Station’s operations.
In order to lull the participants, Charles and at least one other individual, both of whom were signatories on The Borrowing Station’s bank account, issued checks drawn on behalf of The Borrowing Station to pool participants that represented purported monthly returns or returns on investment. The amount of the funds that each check paid typically approximated the return of 10% per month that Charles, directly and through others, had promised pool participants. Charles issued these false profit checks and other materially false communications to pool participants in order to conceal the trading losses, the misappropriation of pool participant funds, and the fraudulent scheme.
Charles and others failed to disclose to pool participants and prospective pool participants that their claims of experience and success in trading forex were false and that there was no basis for their representations that pool participants could earn investment returns of 25% per year or 10% per month. Charles failed to disclose that he and others traded only a portion of pool participant funds. Charles failed to disclose to pool participants that Charles used pool participant funds for his personal expenses. In execution of the scheme to defraud, Charles used or caused to be used wire communications in interstate commerce.
Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Thomas M. Sullivan and Sujit Raman, who prosecuted the case.
Temple Hills Man Sentenced to 21 Months in Federal Prison for Stolen Identity Refund FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Timothy West, age 43, of Temple Hills, Maryland to 21 months in prison for mail fraud in connection with a stolen identity refund fraud scheme.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from approximately November 2011 through March 2013, Timothy West, along with others, engaged in a scheme to file fraudulent tax returns with the Internal Revenue Service (IRS) claiming refunds to which they were not entitled. On two separate occasions, West hired a tax return preparer in Temple Hills, Maryland, to prepare fraudulent returns falsely claiming, among other things, that two individuals were his dependents. As part of the scheme, West and others then used these false tax returns as templates to prepare and file hundreds of additional fraudulent tax returns with the IRS seeking more than $413,000 in refunds. West caused a tax loss of approximately $284,706 as a result of his actions as part of the scheme.
In addition to the term of prison imposed, U.S. District Judge Paul W. Grimm ordered West to serve three years of supervised release and to pay $284,706 in restitution to the IRS.
Acting U.S. Attorney Schenning and Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation and Treasury Office of Inspector General, who conducted the investigation, and Assistant U.S. Attorney Erin Pulice and Trial Attorneys William Guappone and Thomas F. Koelbl of the Tax Division, who prosecuted the case.
Salina Man Sentenced on Federal Child Porn ChargeRead the Press Release
WICHITA, KAN. – A Salina man was sentenced Monday to 108 months in federal prison for distributing child pornography on the internet, U.S. Attorney Tom Beall said.
Austin Wade Evans, 33, Salina, Kan., pleaded guilty to distributing and possessing child pornography. He admitted that on June 22, 2016, he used a Samsung TracFone to distribute child pornography over an internet file-sharing program. A detective with the Kansas Internet Crimes Against Children Task Force downloaded images from Evans’ phone.
On July 25, 2016, Evans gave his phone to investigators. Later, after child pornography charges were filed against him, Evans got another phone and distributed child pornography again.
After serving his sentence, Evans will be on supervised release for 15 years.
The Department of Homeland Security, Immigration and Customs Enforcement, and the Kansas Internet Crimes Against Child Task Force investigated. Assistant U.S. Attorney Jason Hart prosecuted.
Rutland Man Sentenced to 51 Months in Prison for Distribution of HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Mark Kriskov (a.k.a. “Johnny Est”), 55, of Rutland, Vermont, was sentenced by U.S. District Court Judge William K. Sessions, III, to a total of 51 months of imprisonment for distribution of heroin in the Rutland area. Judge Sessions gave Kriskov 13-months’ credit for time already spent in state custody on related state charges, thus Judge Sessions sentenced Kriskov to an additional 38-months of imprisonment to begin on September 19, 2017. Kriskov previously pled guilty to distribution of heroin. Judge Sessions also sentenced Kriskov to three years of supervised release by the United States Probation Office, which begins after Kriskov serves his term of imprisonment.
According to Court records, from late 2015 through July 2016, Kriskov sold over 50 grams of heroin, primarily out of his Maple Street, Rutland apartment, to Rutland area heroin addicts. In addition, according to the government’s allegations, Kriskov sold a stolen handgun to one of his drug customers. Kriskov is still facing multiple charges brought by the Rutland County State’s Attorney’s Office, including identity theft, possession of stolen property, unlawful possession of a firearm after a violent crime conviction, and DUI #4. Judge Sessions ordered that his federal sentence be concurrent to whatever sentence he receives, if convicted of any of these state charges.
While the government acknowledged that the defendant’s drug dealing was driven by his addiction, the government argued that the sentence imposed by Judge Sessions was warranted, given Kriskov’s egregious criminal history, which included a burglary conviction and multiple aggravated assault and DUI convictions. The government also argued that the defendant’s heroin dealing had a significant impact on the community and the defendant was likely to recidivate unless he was given a lengthy jail sentence.
This case was investigated by the Vermont State Police Drug Task Force, the Rutland City Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Joseph Perella is prosecuting this case on behalf of the United States. Kriskov is represented by Devin McLaughlin, Esq., of Middlebury, Vermont and Stephanie Greenlees, Esq., of Burlington, Vermont.
Rosebud Man Charged for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Phillip Little Hoop, age 35, was indicted on September 12, 2007. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 18, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Little Hoop was convicted of Sexual Abuse of a Minor in December 2008. As a result of this conviction, he is required to register as a sex offender. It is alleged that between April 7, 2017, and May 11, 2017, Little Hoop, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Little Hoop is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Little Hoop was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Registered Sex Offender Sentenced to 60 Years in Prison for Enticement and Sexual Exploitation of A MinorRead the Press Release
GRAND RAPIDS, MICHIGAN –Justin Michael Walling, 28, of Lowell, Michigan was ordered to spend 60 years in federal prison for sexual offenses against a minor, Acting U.S. Attorney Andrew Birge announced today. In addition to the prison term, U.S. District Judge Paul Maloney ordered lifetime supervision for Walling after his release.
Walling has a long history of criminal sexual misconduct. In 2004, he had a juvenile adjudication for first-degree criminal sexual misconduct. In 2007, he pleaded guilty to two counts of attempted third-degree criminal sexual conduct with two victims who were 13 years old. In 2008, he violated probation when he was found associating with a 15 year-old girl. When arrested for the probation violation, police discovered that Walling possessed pornographic images of a 16 year-old girl that he met online. That conduct resulted in a conviction for possession of child pornography. He was sentenced to prison and released in August 2014. As a result of these convictions, Walling was required to register as a sex offender.
In July 2015, using a pseudonym of "Justin Blade,"Walling befriended a thirteen-year-old girl on Facebook. She told him she was underaged. He sent her nude photographs of himself and asked her for sexually explicit photographs. At trial, the child explained that she was lonely and wanted a friend; she thought doing these things would make Walling her friend. As requested, she sent him pornographic images of herself. Twice he drove to her town to pick her up and take her back to his residence in Lowell, where they had sex.
Walling was charged with two counts of enticement of a minor, one count of sexual exploitation of a minor, one count of receipt of child pornography, and one count imposing additional penalties for committing the crimes while registered as a sex offender. He went to trial and was convicted of all counts on April 24, 2017.
Judge Maloney stated that the sentence imposed was necessary to protect the public because Walling is a predator who exploited a very vulnerable victim, who was under the age of consent. The Court emphasized that though it might be hard for the victim to put this behind her, "her voice has been heard."
"Today’s sentence effectively ends Justin Walling’s ability to sexually exploit children and underscores the commitment of the FBI, the West Michigan Based Child Exploitation Task Force (WEBCHEX) and the Ionia County Sheriff’s Office to protecting our vulnerable youth against sexual predators," said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI.
The FBI’s West Michigan Based Child Exploitation Task Force and the Ionia County Sheriff’s Office investigated the case. Assistant U.S. Attorney Alexis M. Sanford prosecuted and tried the case.
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Preston County woman admits to oxycodone distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Kingwood, West Virginia woman pled guilty today to her role in an oxycodone distribution operation, Acting United States Attorney Betsy Steinfeld Jividen announced.
Carlee Cuppet, 25, pled guilty to one count of “Distribution of Oxycodone.” She admitted to selling oxycodone on September 9, 2015 in Monongalia County.
Cuppet faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Valley Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pittsburgh Man Sentenced to Prison for Conspiring to Distribute Heroin and CocaineRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 36 months imprisonment followed by three years supervised release on his conviction of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Marquette Williams, 39, of Pittsburgh, Pennsylvania.
According to information presented to the court, from January 2015 through May 2015 in the Western District of Pennsylvania and elsewhere, Williams conspired with others, both known and unknown, to distribute and possess with intent to distribute heroin, a Schedule I controlled substance. In addition, from April 2014 through February 2015, Williams conspired with others, both known and unknown, to distribute and possess with intent to distribute cocaine, a Schedule II controlled substance.
Assistant United States Attorney Katherine A. King prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) comprised of members drawn from the Drug Enforcement Administration, the Allegheny County Sheriff’s Department, the Baldwin Borough Police Department, the Duquesne Police Department, Homeland Security Investigations, the Munhall Police Department, the Pennsylvania State Police, the City of Pittsburgh Bureau of Police, the Scott Township Police Department, and the West Homestead Police Department, along with the City of New Kensington Police Department and the Pennsylvania Attorney General’s Office for the investigation leading to the successful prosecution of Marquette Williams. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pittsburgh Drug Dealer Caused Washington County DeathRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of dealing heroin and fentanyl, Acting United States Attorney Soo C. Song announced today.
Matthew David Adams, aka “Z”, age 28, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Washington County resident Jesse James King died of an overdose on April 19, 2016 and that the Washington County Coroner’s Office determined that he had a deadly amount of the synthetic opiate fentanyl in his system. Stamp bags marked “OMG” were located near the victim’s body. The victim’s phone ultimately led police to the seller of the “OMG” stamp bags, the defendant Matthew Adams. Police apprehended Adams with 47 stamp bags in his possession just two days after the death of Mr. King. The 17 bags stamped “OMG” were determined to contain fentanyl, while the other 30 bags marked “Gator” were found to contain heroin.
Chief Judge Conti scheduled sentencing for January 19, 2018 at 3:30 p.m. The law provides for a total sentence of up to 20 years in prison, a fine of up to $1,000,000, and up to a lifetime of supervision by federal Probation Officers. Adams, who was on probation as a result of a prior sentence from Allegheny County Court of Common Pleas Judge Joseph K. Williams, III for a previous heroin dealing conviction, is expected to receive a sentence of 8 years in federal prison, at least 4 years of supervision and restitution to the family of the victim. He will also face an additional potential sentence from Judge Williams for committing the offense while on county probation.
Pending sentencing, the court remanded the defendant back to the custody of the United States Marshal Service.
Assistant United States Attorneys Ross E. Lenhardt and Katie A. King of the Violent Crimes Section are prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration (DEA), the Washington County Drug Task Force, the Washington County Sheriff’s Office, the Washington County District Attorney’s Office, and numerous local police departments including the Canonsburg Police Department, Houston Borough Police Department, Stowe Township Police Department, Kennedy Township Police Department, as well as the Washington County Coroner’s Office, and the Allegheny County Medical Examiner’s Office, conducted the investigation that led to the prosecution of Matthew Adams.
Pine Ridge Woman Indicted for Assault with Intent to Commit MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, woman has been indicted by a federal grand jury for Assault with Intent to Commit Murder, Assault of a Federal Officer, Assault with a Dangerous Weapon, and Discharge of a Firearm during the Commission of a Crime of Violence.
Connie Wilson, age 54, was indicted on September 12, 2017. Wilson appeared before U.S. Magistrate Judge Daneta Wollmann on September 13, 2017, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Wilson assaulting two federal officers with a firearm in Oglala Lakota County on August 29, 2017.
The charges are merely accusations and Wilson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Wilson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for November 14, 2017.
Pharmacist and His Employee Convicted of over $30 Million Health Care Fraud Against Military Insurance ProgramRead the Press Release
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; John Khin, Special Agent in Charge, Department of Defense Criminal Investigative Service (DCIS), Southeast Field Office; Maximo Eamiguel, Special Agent in Charge, United States Postal Service, Office of Inspector General (USPS-OIG), Southern Area Field Office; James T. Wallis, Special Agent in Charge, U.S. Army Criminal Investigation Command, Southeast Fraud Field Office; Justin D. Green, Special Agent in Charge, U.S. Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office; and Scott Rezendes, Special Agent in Charge, United States Office of Personnel Management, Office of Inspector General (OPM-OIG), announced the conviction of Serge Francois and Patrick Tonge for their involvement in a conspiracy to commit health care fraud and pay kickbacks in connection with federal health care programs. The fraudulent scheme caused over $30 million in losses to the federal TRICARE program. TRICARE provides coverage for active duty military and their families, as well as retired veterans. In addition, the fraudulent scheme caused the Federal Employee Health Benefit Program (FEHBP) to sustain losses.
On September 5, 2017, after a one-month trial, a federal jury found Francois guilty of conspiracy to commit health care fraud, twelve counts of health care fraud, conspiracy to pay kickbacks in connection with a federal health care program, five counts of paying such kickbacks, and twelve counts of money laundering. In addition, Francois was found guilty of eight counts of introducing misbranded drugs into interstate commerce, four counts of making false statements related to health care matters, and one count of making a false statement on a DEA form. The jury found Tonge guilty of the same conspiracy charges, as well as eleven counts of health care fraud, three counts of paying kickbacks, and two counts of money laundering.
According to evidence presented at trial, Francois, a pharmacist, owned and operated Atlantic Pharmacy and Compounding, located in Pompano Beach, Florida. From there, Francois and his right-hand man at the pharmacy, Patrick Tonge, entered into a vast conspiracy with so-called marketers who paid physicians to write prescriptions for topical medications that cost up to $17,000 a bottle. As the pharmacist in charge, Francois was responsible for the compounded medications, which were made in-house by the pharmacy.
Francois, Tonge and their co-conspirators agreed to automatically refill the prescriptions, sending numerous refills to patients who did not request them or need them, while not charging a co-pay in hopes that the patients would not bother to return the medications. Francois and Tonge would pay the marketers out of the profit received for each prescription; and the marketers in turn would pay the physicians. Evidence further showed that a substantial portion of the scheme involved physicians never seeing or examining the purported patients. Rather, they used the patients’ personal identification information to write the prescriptions.
Testimony and other evidence at trial revealed that Francois and Tonge specifically targeted the TRICARE program. Through the conspiracy, Atlantic Pharmacy billed over $37 million to TRICARE and FEHBP, with TRICARE paying out over $30 million in false and fraudulent claims.
Evidence at trial showed that Francois used the fraud proceeds to buy a $3.6 million mansion that once belonged to Dwayne “the Rock” Johnson, along with a Ferrari, two Rolls Royces, and over $1 million in luxury automobiles.
In addition, trial evidence revealed the kickback conspiracy component of the fraud scheme. For example, the marketers told Francois and Tonge that if they did not get paid they could not pay the physicians, and thus the physicians would stop writing the prescriptions. Francois and Tonge continued to make payments and bill TRICARE up until May 2016, when TRICARE stopped covering the medications due to growing knowledge of similar fraud involving other compounding pharmacies. In total, seventeen individuals pled guilty or were convicted for their involvement with the fraudulent scheme or receipt of kickbacks.
“Serge Francois and Patrick Tonge have been held responsible for an egregious fraud scheme that unlawfully diverted over $30 million in federal health care monies that were set aside for the men and women in uniform who serve and protect our country,” stated Acting United States Attorney Benjamin G. Greenberg. “The U.S. Attorney’s Office and our law enforcement partners will continue to work tirelessly to identify for prosecution individuals, including healthcare providers, who carry out fraudulent schemes against TRICARE or other federal health care programs for their own personal financial benefit at a loss to the deserving beneficiaries.”
“The Defense Criminal Investigative Service is committed to protecting the integrity of the U.S. military health care program to provide top quality medical care to America’s Warfighters and their families, while ensuring that health care providers and facilities comply with Federal laws,” said John F. Khin, Special Agent in Charge, DCIS - Southeast Field Office. “Through joint investigations with our law enforcement partners, DCIS aggressively pursues criminal prosecutions and all available remedies to bring violators to justice. These guilty verdicts demonstrate the effectiveness of our investigative efforts.”
“The verdict reached in this case should be an example to those healthcare providers engaging in illegal schemes that the government is vigilant and these crimes will not be tolerated," said Special Agent in Charge Maximo Eamiguel, of the U.S. Postal Service Office of Inspector General Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners will continue to vigorously investigate these types of cases in order to protect federal benefit programs from fraud and abuse ensuring the safety of its beneficiaries.”
“The jury’s verdict should stand as a deterrent to those who would engage in fraud and corruption for personal gain, and is a testament to the thorough and professional effort of our investigative and prosecutorial team,” said Special Agent in Charge James T. Wallis, of the U.S. Army Criminal Investigation Command’s Southeast Fraud Field Office. “We will diligently continue our efforts to pursue those engaged in criminal activity that impacts the integrity of U.S. Government and Army programs and resources within our purview.”
“FDA is fully committed to the vigorous criminal investigation and prosecution of individuals who threaten the health and safety of American consumers by causing misbranded drugs to be distributed,” said Justin D. Green, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “Our office will continue to pursue and bring to justice those who place profits above the public health.”
“This conviction should act as a warning to those who believe they can defraud the government with impunity,” said Scott Rezendes, Special agent in Charge, OPM-OIG. “The OPM Office of the Inspector General is committed to holding such individuals accountable for their actions.”
Mr. Greenberg commended the investigative efforts of DCIS, USPIS-OIG, U.S. Army Criminal Investigation Command, FDA Office of Criminal Investigations and OPM-OIG. The case was prosecuted by Assistant United States Attorneys Daniel Bernstein and Franklin Monsour.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Peruvian National Sentenced in Manhattan Federal Court to 12 Years in Prison for Running Million-Dollar Ponzi SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that PEDRO JARAMILLO, a/k/a “Enrique Jaramillo,” was sentenced today to 12 years in prison for commodities fraud and wire fraud charges stemming from his scheme to defraud more than two dozen investors, including retirees, working professionals and manual laborers from Peru and countries in Latin America, of more than $1.2 million through a Ponzi-like scheme. Many of JARAMILLO’s victims, many of whom submitted letters to the Court or spoke at JARAMILLO’s sentencing, lost their life savings to JARAMILLO’s scheme, including their homes.
In imposing today’s sentence, Judge Laura Taylor Swain described JARAMMILLO’s conduct as “calculated and utterly despicable” and noted the “profoundly devastating impact” of the scheme on JARAMILLO’s victims.
JARAMILLO was arrested on December 2, 2016, and has remained detained since that date. On April 7, 2017, JARAMILLO pled guilty to commodities fraud and wire fraud charges before Judge Swain.
Acting U.S. Attorney Joon H. Kim said: “Pedro Jaramillo lured investors with a slick video pitch complete with iconic New York scenes and music. He purported to be ‘a proven winner’ who promised high returns but he was just a swindler, spending investors’ money on himself and to repay early investor redemptions. Many victims – including retirees, working professionals, and manual laborers – lost their life savings, and Jaramillo now faces the substantial term in prison his crime merits.”
According to the Complaint, the Indictment, and other statements made in open court:
Beginning in at least January 2014 through in or about December 2016, JARAMILLO solicited more than $1.2 million in investments from more than two dozen investors, primarily for the purported purpose of investing in commodity futures contracts, by falsely representing, orally and in writing, that investor monies would be invested in short-term commodities contracts with a guaranteed rate of return.
To help attract investors, JARAMILLO maintained an office on Wall Street (the “Wall Street Office”) where he met with prospective investors to tout his prior success and relationship with a prominent international bank (the “Global Investment Bank”). JARAMILLO also starred in a youtube.com video (the “Video”) set to the soundtrack of Frank Sinatra’s “New York, New York.” The Video featured a series of images of Wall Street, the New York Stock Exchange, and JARAMILLO in front of the Wall Street Office. In the video, JARAMILLO told prospective investors that he was a “proven winner” and “trusted partner” who would maintain individually managed and federally insured accounts for each client. JARAMILLO told prospective investors that these safeguards would ensure that prospective investors would “be protected against fraud and brokerage failure.”
In truth and in fact, JARAMILLO not only failed to create individual investment accounts, he failed to use investor funds to make any legitimate investments, instead diverting the majority of funds to his own use or to repay earlier investors whose redemption requests could not be forestalled. In total, JARAMILLO diverted more than $700,000 to his own use in the form of cash withdrawals and debit card purchases used to fund his lifestyle, including thousands of dollars on three vacations to Disney World for JARAMILLO, family, and guests.
To hide his misappropriations and continue to fund his personal lifestyle, JARAMILLO also used new investor funds to pay back other investors in a Ponzi-like fashion. In total, since January 2014, JARAMILLO distributed more than $200,000 back to investors from funds deposited by new investors. During that time, JARAMILLO also diverted more than $100,000 of investor funds out of bank accounts he controlled in the United States to foreign bank accounts, including in Peru where JARAMILLO is a citizen.
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In addition to the 12-year prison sentence, JARAMILLO, 49, a Peruvian National who was residing in Queens, New York, before his arrest, was sentenced to 3 years of supervised release. The Court further ordered JARAMILLO to forfeit the proceeds of the scheme and to pay restitution in an amount to be determined.
Mr. Kim praised the work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrea M. Griswold is in charge of the prosecution.
Pawtucket Resident Admits to Trafficking Cocaine, Crack CocaineRead the Press Release
PROVIDENCE – General Jones, 31, of Pawtucket, pleaded guilty in federal court in Providence today to trafficking cocaine and crack cocaine, announced Acting United States Attorney Stephen G. Dambruch, Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF, and Pawtucket Police Chief Tina Goncalves.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Jones pleaded guilty to two counts of distribution of 28 grams or more of crack cocaine, and one count each of possession with the intent to distribute cocaine and possession with the intent to distribute 28 grams or more of crack cocaine.
At the time of his guilty plea, Jones admitted to the Court that on at least five occasions between October 17, 2016, and March 2, 2017, he sold between 30 and 49.95 grams of cocaine to an individual assisting the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and an ATF task force in an investigation of Jones’ drug trafficking activities. On at least three of those occasions, Jones sold the individual between 24.99 and 47.54 grams of crack cocaine.
According to information presented to the court, on March 9, 2017, ATF agents, members of the ATF task force and Pawtucket Police executed court authorized search warrants at two residences under the control of Jones in Pawtucket. At one location, used by Jones for his drug trafficking activity, law enforcement seized 368.39 grams of cocaine, 92.16 grams of crack cocaine and $13,020 in cash proceeds from the sale of cocaine and crack cocaine. At the second location law enforcement seized $8,000 in cash, proceeds from his drug trafficking activity. Law enforcement also seized $606 from Jones’ person, proceeds from the sale of cocaine and crack cocaine.
General Jones has been detained in federal custody since his arrest on March 9, 2017. He is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on December 4, 2017.
Distribution of 28 grams or more of crack cocaine and possession with the intent to distribute crack cocaine are punishable by statutory penalties of between 5- 40 years in federal prison to be followed by a minimum of 5 years supervised release. Possession with the intent to distribute cocaine is punishable by statutory penalties of up to 20 years in federal prison to be followed a minimum of 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The ATF task force is comprised of agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Rhode Island State Police, Rhode Island Department of Corrections Special Investigations Unit, and the Pawtucket and Providence Police Departments.
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Optometrist Pleads Guilty to Health Care FraudRead the Press Release
PITTSBURGH – A resident of Hazelet, New Jersey, pleaded guilty in federal court to health care fraud, Acting United States Attorney Soo C. Song announced today.
Dr. Vincent J. Gamuzza, 31, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, Gamuzza, a doctor of optometry, admitted that he operated multiple vision centers in Pennsylvania, including Western Pennsylvania, and in New Jersey. Gamuzza further admitted that he was responsible for handling all billing to insurance companies, including Highmark Inc. and Davis Vision. As part of his plea, Gamuzza admitted that between in or around December 2015 and July 2016, he submitted fraudulent claims to Highmark Inc. for services that were never provided to patients. He also admitted that he impermissibly submitted claims for the same services to both Highmark, Inc. and Davis Vision.
Judge Bissoon scheduled sentencing for January 23, 2018, at 2:15 p.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Robert S. Cessar and Eric G. Olshan are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the United States Department of Health and Human Services – Office of Inspector General, and the Department of Defense – Office of Inspector General conducted the investigation of Gamuzza.
Operator of Real Estate Investment Scheme Pleads Guilty to Fraud ChargesRead the Press Release
CHARLOTTE, N.C. – Carl Lee Ferrell, 53, of Waxhaw, N.C. appeared in court today and admitted to running a real estate investment scheme that defrauded victims of over $400,000, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Ferrell pleaded guilty to one count of wire fraud before U.S. Magistrate Judge David C. Keesler.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina.
According to filed court documents, from 2012 to 2016, Ferrell executed a financial scheme involving fraudulent real estate investments, that defrauded victims of over $400,000. To induce victims to invest in his scheme, Ferrell falsely told victim-investors that he was the managing member and president and CEO of Wholesale Properties International, LLC (“Wholesale Properties”), purportedly a large international real estate investment company involved in multimillion dollar investment deals, with several locations in North Carolina, South Carolina, and Washington, D.C. In reality, Wholesale Properties was run by Ferrell, his girlfriend, and another individual, from a rented home in Waxhaw, and had never consummated a million-dollar deal.
Court records also show that, to further induce victims, Ferrell created a company webpage which contained numerous false and fraudulent representations regarding the nature and scope of Wholesale Properties’ business, and created false testimonials on the website, with the Better Business Bureau, and in emails. Filed court documents reflect that when victims began demanding their money back, Ferrell made various excuses, including that “the check was in the mail,” that Wholesale Properties had been sold to another company, and that “the accounting department only sends checks out in big batches.”
Instead of investing the victims’ money as promised, Ferrell often used it to pay for personal expenditures such as rent, food, and entertainment, to pay for properties other than those in the investment agreements with the victims, and to pay other victims in Ponzi fashion.
Ferrell was released on bond following his guilty plea. The charge carries a maximum prison term of 20 years and a $250,000 fine. A sentencing date for the defendant has not been set yet.
The investigation was led by the FBI. Assistant United States Attorneys Maria Vento and Dallas J. Kaplan, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.
Oklahoma City Man Pleads Guilty to Filing a False Tax Return After Diverting Hundreds of Thousands of Dollars of IncomeRead the Press Release
Oklahoma City, Oklahoma – FRANCIS MICHAEL BOSTICK, of Oklahoma City, pled guilty today to filing a false federal income tax return for 2012 that failed to report more than $325,000 of income, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On June 6, 2017, a federal grand jury returned an indictment charging Bostick with four counts of false statements on tax returns. The four counts related to tax years 2010, 2011, 2012, and 2013. According to the indictment, Bostick was the owner and operator of an oil field service company, Bostick Services Corporation. It was also alleged that Pioneer Trucking, one of Bostick Services Corporation’s customers, regularly purchased from Bostick’s company "tank bottoms," which are the heavier substances that settle at the bottom of wastewater tanks. Bostick was alleged to have directed Pioneer Trucking to pay for the tank bottoms by checks to Bostick individually, instead of to Bostick Services Corporation. He also allegedly asked Pioneer Trucking to split payments over approximately $9,000.00 into multiple checks, and then he cashed those checks instead of depositing them into any bank account. As a result, it was alleged, Bostick’s CPA was never given information on that additional income, and it was omitted from Bostick’s individual tax returns. The indictment alleged Bostick omitted over $250,000.00 in income in 2010, over $350,000.00 in income in 2011, over $325,000.00 in income in 2012, and over $275,000.00 in income in 2013.
At the plea hearing today before United States District Judge Vicki Miles-LaGrange, Bostick admitted he filed a false tax return for 2012, which claimed $1,506,305.00 in income, when he knew he had made at least an additional $325,000.00 that he had diverted by cashing personal checks from Pioneer Trucking. Bostick admitted he knew he needed to report his entire income, but he intentionally diverted funds and filed a false tax return that did not include his entire income. As part of his Plea Agreement, Bostick has agreed that the total tax loss to the Internal Revenue Service for his conduct is between $250,000.00 and $550,000.00. Bostick has also agreed to pay restitution to the Internal Revenue Service for all taxes due and owing for 2010, 2011, 2012, and 2013.
At sentencing, Bostick faces a maximum sentence of 3 years in prison, 1 year of supervised release, a fine of $250,000, and restitution to the IRS for all related fraudulent tax filings. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by IRS-Criminal Investigations and is being prosecuted by Assistant U.S. Attorney K. McKenzie Anderson.
North Texas Man and Woman Sentenced for Meth Soaked Greeting CardRead the Press Release
PLANO, Texas - A North Texas man and woman have been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Amanda Lynn Mollison, 29, of Allen, Texas, pleaded guilty on May 3, 2017 to providing contraband in prison. Justin Chadwick Brown, 39, of Grand Prairie, Texas, pleaded guilty on May 4, 2017, to possession of contraband in prison. Mollison and Brown were each sentenced to 51 months in federal prison last week by U.S. District Judge Marcia A. Crone.
According to information presented in court, on Oct. 11, 2016, Mollison sent Brown a greeting card soaked in methamphetamine through the mail to the Collin County Jail where Brown was incarcerated. Officials with the Collin County Sheriff’s Office tested the greeting card which tested positive for the presence of methamphetamine. Investigators then searched for phone calls between inmate Brown and Mollison that had been recorded. Investigators learned that between Sep. 30, 2016 and Oct. 5, 2016, Brown requested that Mollison send him the greeting card containing methamphetamine. Mollison and Brown were indicted by a federal grand jury on Feb. 9, 2017.
This case was investigated by the U.S. Postal Inspection Service and the Collin County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Tracey M. Batson.
Nigerian Man Sentenced for Illegal Re-entry into United StatesRead the Press Release
SYRACUSE, NEW YORK – Chukwudi Olisemeka, age 48, and a citizen of Nigeria, was sentenced today to 6 months in jail for 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 July 17, 2017 guilty plea, Olisemeka admitted that he was a citizen of Nigeria, and that he illegally returned to the United States following his June 19, 2008 removal to Nigeria. On May 7, 2017, Olisemeka was found by a Border Patrol agent in Massena, New York, on a bus destined for New York City.
Following his term of imprisonment, Olisemeka will be transferred to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.