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Wednesday 26 July 2017
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Daniel Tobacco, age 24, was indicted on July 18, 2017. Tobacco appeared before U.S. Magistrate Judge Daneta Wollmann on July 19, 2017, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Tobacco failing to register and update his registration as a convicted sex offender between May 9, 2017, and May 25, 2017.
The charge is merely an accusation and Tobacco is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Tobacco was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been not been set.
Prison Inmate Sentenced for Threatening to Kill the President of the United StatesRead the Press Release
BOSTON – A former inmate at Old Colony Correctional Center in Bridgewater was sentenced today in federal court in Boston for threatening to kill the President of the United States.
Alex Hernandez, 32, of Worcester, was sentenced by U.S. District Court Judge Indira Talwani to 37 months in prison, to be served concurrently with a state sentence he is currently serving, and three years of supervised release. In May 2017, Hernandez pleaded guilty to one count of threatening to kill and inflict bodily harm upon the President of the United States. Hernandez is currently serving a five-to-eight-year sentence at Souza-Baranowski Correctional Center following a 2011 state conviction for drug and firearms offenses, including the illegal possession of a .22 caliber handgun, a Tec-9, a .22 caliber rifle - all of which were equipped with high capacity magazines, and ammunition.
In March 2015, federal agents obtained information alleging that Hernandez wanted to kill the President and had expressed an interest in obtaining false travel documents so he could flee the country after his attack. Law enforcement officers then set up a meeting between Hernandez and an undercover agent who posed as an embassy contact with the ability to assist Hernandez with obtaining false travel documents.
On Dec. 22, 2015, and Feb. 12, 2016, the undercover agent met with Hernandez at Old Colony Correctional Center. During the first meeting, Hernandez stated that he wanted to attack the White House and that he was studying how to make explosives that could be placed around government buildings to “create chaos.” During the second meeting with the undercover agent, Hernandez, a Muslim convert, discussed the motivation for his planned attacks, telling the agent that his “brothers are fighting to uphold the laws and structure of the caliphate in the Middle East” and that “this government . . . is painting it like they are the bad guys[.]” Hernandez also explained that he wanted to target the President because “he’s the one that gives the orders[.]”
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Thomas Turco, Commissioner of the Massachusetts Department of Correction, made the announcement today. Assistant U.S. Attorney Jordi de Llano of Weinreb’s Criminal Division prosecuted the case.
Phoenix Man Sentenced to over 68 Years in Prison for Threat and Assault of Federal Law Enforcement and Other Charges Related to 2014 Armed Standoff in BunkervilleRead the Press Release
LAS VEGAS, Nev. – A Phoenix, Ariz. man was sentenced today to 819 months in prison in connection with the armed assault against federal law enforcement officers that occurred in the Bunkerville, Nev. area in April 2014, over rancher Cliven Bundy’s trespassing cattle from public lands. In addition to the prison term, U.S. District Chief Judge Gloria M. Navarro sentenced Burleson to three years of supervised release.
Acting U.S. Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division, and Acting Director Michael D. Nedd of the Bureau of Land Management made the announcement.
Following a 32-day jury trial, Gregory P. Burleson, 53, was convicted on April 24, 2017, of assault on a federal officer; threatening a federal law enforcement officer; obstruction of the due administration of justice; interference with interstate commerce by extortion; interstate travel in aid of extortion; and three counts of use and carry of a firearm in relation to a crime of violence.
According to the superseding indictment, Burleson traveled to Nevada with the intent to commit a crime of violence to extort federal law enforcement officers while they were executing a federal court order to remove and impound Cliven Bundy’s cattle that were trespassing on federal public lands in and around Bunkerville. On or about April 12, 2014, Burleson used and brandished a firearm to impede, intimidate, and to threaten to assault federal law enforcement officers involved in the federal impoundment operations. He also threatened and used force and violence to obstruct interstate commerce by extortion in that he obtained and attempted to obtain approximately 400 cattle that were in the possession of federal law enforcement officers.
The case was investigated by the FBI and BLM. The case was prosecuted by Acting U.S. Attorney Steven W. Myhre, Assistant U.S. Attorneys Nicholas D. Dickinson and Nadia J. Ahmed, and Special Assistant U.S. Attorney Erin M. Creegan.
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Perjurer Gets Prison TimeRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces that Angel Thacker Freundschuh, age 37, of Lee County, Georgia, was sentenced to 12 months and a day imprisonment for perjury by United States District Court Judge Leslie J. Abrams in Albany, Georgia on July 26, 2017.
On December 18, 2015, officers responded to a shoplifting call at the Marine Corp Exchange (MCX) located at the Marine Corps Logistics Base (MLCB) in Albany, Georgia. Ms. Freundschuh was found in possession of a silver ring, a bottle of Estee Lauder perfume, a blouse and a scarf belonging to MCX and of a total retail value of $121.00. Ms. Freundschuh was charged with Theft by Shoplifting and appeared before The Honorable Thomas Q. Langstaff, United States Magistrate Judge, on December 5, 2016, for trial. At that trial, Freundschuh testified in her own defense and falsely stated that officials of MCLB had returned these items of merchandise to her after she produced a receipt for them. In support of this testimony, Ms. Freundschuh presented an altered receipt, empty perfume box and blouse, all of which she swore to the Court were, in fact, the same items which she was accused of stealing but which had later been returned to her. The actual items taken by Freundschuh were, at the time of her testimony, in the possession of employees of MCX. Based on this false testimony, Ms. Freundschuh was charged with perjury. While federal law requires a sentence of at least 30 days incarceration for a repeat shoplifter such as Ms. Freundschuh, on February 13, 2017, she received 120 days to serve on the shoplifting conviction. While serving that sentence, Ms. Freundschuh plead guilty to perjury based upon her false testimony at her shoplifting trial. After completing the shoplifting sentence, Ms. Freundschuh appeared for sentencing on the perjury charge and received an additional prison sentence of one year and one day, to be followed by two years supervised release. She was also ordered to pay a $100 mandatory assessment fee payment.
“This conviction is a perfect example of turning a misdemeanor into a felony by lying to the Court,” said United States Attorney Peterman. “Ms. Freundschuh’s original shoplifting charge was a misdemeanor, but by her false testimony she is now a convicted felon, with a much longer prison sentence as well as the attendant loss of rights and privileges that a felony conviction entails. Hopefully this case will make clear that while a defendant has the right to be silent, if the defendant choses to speak, there is no right to lie.”
Both cases were investigated by the Marine Corps Police Department--Criminal Investigative Division. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Parker CPA Sentenced to 12.5 Years in Prison for Wire Fraud and Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
DENVER – Don R. Iley, age 53, of Parker, Colorado, was sentenced yesterday by U.S. District Court Judge Christine M. Arguello to serve 151 months in federal prison for wire fraud and aiding and assisting in the preparation of false tax returns, the United States Attorney’s Office and IRS-Criminal Investigation announced. Judge Arguello also ordered Iley to pay $9.7 million in restitution, and serve 3 years of supervised release following his prison sentence. Iley was originally indicted by a federal grand jury on August 24, 2016, and pled guilty to two counts of that indictment on April 18, 2017.
According to the indictment and plea agreement, from January 2009 up until December 2015, Iley was the owner and operator of Iley and Associates (I&A), an accounting and tax preparation firm providing payroll and payroll tax services to more than 140 businesses in Colorado. The payroll tax services included the preparation of Forms 941, Employer’s Quarterly Federal Tax Returns, and an “ACH Deduction Report” listing the amount of payroll taxes to be withdrawn from the client’s bank account and paid forward to the Internal Revenue Service.
Iley caused the Form 941 tax return to be mailed to the client with a cover letter stating the enclosed tax return is a copy for their records and that Iley pays the taxes for the client. Iley then prepared and submitted payroll tax returns to the IRS on behalf of clients showing no payroll taxes due and owning for a given tax period. Iley knew when he submitted these payroll tax returns that the clients did in fact owe payroll taxes. Then Iley initiated or caused others to initiate an ACH electronic fund transfer from the client’s bank account to a bank account controlled by I&A.
Iley kept the money that was intended for payroll taxes and used it for his own purposes. Iley used some of the money to, among other things, make $900,000 in accelerated principal payments for Iley’s home, pay for the design, construction, landscaping and furnishing of Iley’s residence, and make investments in businesses and retirement accounts.
This case was investigated by the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant United States Attorney J. Chris Larson.
Owner of Tax Preparation Business Pleads Guilty to Wire Fraud and Making A False ClaimRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces that Rigaud Colin (49, Apopka) has pleaded guilty to wire fraud and making a false claim to the United States. He faces a maximum penalty of 25 years in federal prison. A sentencing date has not yet been set.
According to court documents, Colin was the owner and operator of Rigaud Investment Group, Inc., a tax preparation business in Orange County. Using his business, he executed a scheme to defraud the IRS by preparing and filing false and fraudulent income tax returns for residents of the U.S. Virgin Islands who were not eligible to receive tax refunds from the IRS. Specifically, Colin included false and fraudulent addresses and education tax credit claims in tax returns that he electronically filed with the IRS on behalf of the Virgin Islands residents. As a result of Colin’s scheme, the IRS sustained a loss of $1,393,097.
This case was investigated by Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Northern California Real Estate Investor Sentenced to Prison for Rigging Bids at Public Foreclosure AuctionsRead the Press Release
After being convicted at trial, a Northern California real estate investor was sentenced today for his role in a conspiracy to rig bids at public real estate foreclosure auctions, the Department of Justice announced.
Alvin Florida Jr. was charged on Nov. 19, 2014, in an indictment returned by a federal grand jury in the Northern District of California. He was convicted on Dec. 15, 2016, of conspiring to rig bids at foreclosure auctions in Alameda County. Today, Florida was sentenced to serve 21 months in prison and to serve three years of supervised release. In addition to his term of imprisonment, Florida was ordered to pay a criminal fine of $325,803.
Between May 2008 and December 2010, Florida conspired with others not to bid against one another, but instead designated a winning bidder to obtain selected properties. The members of the conspiracy then held second, private auctions to award the properties to members of the conspiracy and determine payoffs for other conspirators who had agreed not to bid against each other at the public auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held.
The primary purpose of the conspiracies was to suppress and eliminate competition in order to obtain selected real estate offered at Alameda County public foreclosure auctions at noncompetitive prices. When real estate properties are sold at public auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with the remaining proceeds, if any, paid to the homeowner.
The sentence announced today is a result of an ongoing investigation into bid rigging at public real estate foreclosure auctions in California’s Alameda, Contra Costa, San Francisco and San Mateo counties.
The investigation is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office.
Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
New York Return Preparer Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
A Nassau County, New York return preparer was sentenced to 24 months in prison for filing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney James P. Kennedy Jr. for the Western District of New York.
According to documents and information presented to the court, from January 2010 through April 2015, David Menzies, 51, of Floral Park, filed fraudulent tax returns for hundreds of clients that claimed fake business income and expenses and false dependents to seek refunds to which his clients were not entitled. Menzies solicited, and sometimes purchased, the personal identifying information of children from their parents, and claimed them as dependents on other clients’ returns. Menzies charged his clients $250 for the use of the phony dependents and often used the same children’s information in multiple years. He recruited people to assist him in filing these fraudulent returns and directed them to escort his clients to check cashers, in order to cash their refund checks and collect Menzies’ fee, including the money for the false dependents.
In addition, Menzies concealed his identity as the preparer of the fraudulent returns by soliciting other people to apply to the Internal Revenue Service (IRS) for preparer IDs and then filing the returns under those preparer IDs. Menzies admitted that this scheme caused a tax loss of more than $250,000.
Menzies also acknowledged that he failed to timely file his 2009 through 2015 personal tax returns.
In addition to the term of prison imposed, U.S. District Judge Lawrence J. Vilardo ordered Menzies to serve one year of supervised release and to pay $280,930 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Kennedy thanked special agents of the IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Marie P. Grisanti and Trial Attorney Jason M. Scheff of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Hampshire Man Pleads Guilty to Child Pornography ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Marshall Carey Strickland, age 42, of Nashua, New Hampshire, pled guilty in federal court in Florence, to Possession of Child Pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B). 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 during October and November of 2013, while living in a motel in Myrtle Beach, South Carolina, Strickland used a particular email account to access and view numerous images and videos of child pornography.
Ms. Drake stated the maximum penalty Strickland can receive is imprisonment for 10 years and a fine of $250,000.
The case was investigated by agents with ICE-Homeland Security Investigations. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Office, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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New Bedford Seafood Manager Indicted for Tax EvasionRead the Press Release
BOSTON – A New Bedford seafood manager was charged today in federal court in Boston for failing to report $75,000 in earnings on his tax returns.
Orlando Cardoso, 44, of New Bedford, was indicted on two counts of filing a false income tax return.
It is alleged that Cardoso swore on his 2012 and 2013 tax returns that the only income he had received was from his employer. However, Cardoso had received over $75,000 in cash and checks from his employer’s supplier and failed to report the income on his tax returns.
The charge of filing a false income tax return provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Stephen P. Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nevada Man Sentenced for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Nevada, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Ben Culbertson, 56, of Nevada, was sentenced by U.S. District Judge Beth Phillips to 262 months in federal prison without parole. Culbertson has been detained in federal custody since his arrest in October 2016.
On March 22, 2017, Culbertson pleaded guilty to receiving and distributing child pornography over the Internet.
According to court documents Culbertson, came to the attention of law enforcement after distributing images of child pornography (including some victims likely under the age of 8 years old) over the Internet. Culbertson, who was previously convicted of two counts of aggravated indecent solicitation of a child, admitted to investigators that he received and distributed images of child pornography on multiple occasions.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Nebraska Woman Indicted for False StatementRead the Press Release
United States Attorney Randolph J. Seiler announced that a Walthill, Nebraska, woman was charged in federal district court with False Statement.
Wehnona Stabler, age 59, was charged on June 20, 2017. She appeared before U.S. Magistrate Judge Daneta Wollmann on July 21, 2017, and pleaded not guilty to the charge. The maximum penalty upon conviction is 5 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Stabler making a false statement in January 2014 on a Confidential Financial Disclosure Report while an employee of Indian Health Service (IHS) at Pine Ridge, related to a $5,000 payment she received from Dr. Stanley Patrick Weber. Weber is currently under indictment for multiple counts of sex abuse with minors arising when he was a pediatrician at IHS Pine Ridge.
The charge is merely an accusation and Stabler is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of Inspector General, Health and Human Services. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Stabler was released pending trial. A trial date has not been set.
Navajo Man Sentenced to Prison for Sexual Abuse Against Two VictimsRead the Press Release
TUCSON, Ariz. – On July 25, 2017, Patrick Paul Charley, 39, of Ajo, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge Jennifer G. Zipps to concurrent terms of imprisonment for sexual offenses committed against two adult members of the Tohono O’odham Nation. Charley had previously pleaded guilty to one count of sexual abuse committed in 2014 and was sentenced to 43 months’ imprisonment. Charley was also sentenced to a term of 16 months’ imprisonment for his plea of guilty to one count of abusive sexual contact from a 2011 incident.
After completing his imprisonment, Charley will be placed on lifetime federal supervision and will have to register as a sex offender for the rest of his life.
The investigation in this case was conducted by both the Tohono O’odham Police Department and the Federal Bureau of Investigation. The prosecution was handled by Micah Schmit, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBERS: CR-16-0528-TUC-JGZ and CR-16-0529-TUC-JGZ
RELEASE NUMBER: 2017-064_Charley
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Myrtle Beach Man Pleads Guilty to Drug Conspiracy Charge in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Enrique Garcia Burgos, age 45, of Myrtle Beach, entered a guilty plea in federal court in Florence to conspiracy to possess with intent to distribute and distribution of heroin and cocaine, a violation of Title 21, United States Code, Section 846. United States District Judge R. Bryan Harwell, of Florence, accepted the plea and will impose sentence after a pre-sentence report is prepared by U.S. Probation.
This case was part of an extensive investigation conducted by agents of the Drug Enforcement Administration (DEA), the Fifteenth Circuit Drug Enforcement Unit (DEU) and the Florence County Sheriff’s Office (FCSO) into the sale of heroin and other illegal drugs in the Horry County, South Carolina, area. Burgos was identified as a possible heroin distributor during the investigation. Evidence presented at the change of plea hearing established that on June 26, 2016, agents conducted a traffic stop of a vehicle driven by Burgos and occupied by a coconspirator. Agents believed that Burgos and the coconspirator were returning from Atlanta with a quantity of illegal narcotics. During a search of the vehicle, agents found over 1 kilogram of heroin and approximately 500 grams of cocaine and located a loaded firearm.
Ms. Drake stated the defendant faces a maximum term of imprisonment of 20 years and a fine of $1,000,000.
The case was investigated by DEA-Florence and the Fifteenth Circuit Drug Enforcement Unit (DEU). Assistant United States Attorney Chris Taylor of the Florence office handled the case.
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Myrtle Beach Man Enters Guilty Plea in Federal Court on Charge of Conspiracy to Distribute MethamphetamineRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that James Coppers McKee, Jr., age 45, of Myrtle Beach, pled guilty in federal court in Florence to conspiracy to possess with intent to distribute and distribution of methamphetamine, a violation of Title 21, United States Code, Section 846. United States District Judge R. 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 change of plea hearing established that DEA-Florence and the Fifteenth Circuit Drug Enforcement Unit (DEU) were investigating a methamphetamine distribution organization in the Horry County, South Carolina, area. As part of that investigation, agents learned that McKee was a possible methamphetamine distributor. In 2014 and 2015, agents made three controlled buys of methamphetamine from McKee. McKee was also identified as being in possession of multi-ounce quantities of methamphetamine during the conspiracy period.
Ms. Drake stated the defendant faces a maximum term of imprisonment of 20 years and a fine of $1,000,000.
The case was investigated by DEA-Florence, South Carolina, and the Fifteenth Circuit Drug Enforcement Unit (DEU). Assistant United States Attorney Chris Taylor of the Florence office handled the case.
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Multiple Defendents Charged in Drug Trafficking and Money Laundering ConspiracyRead the Press Release
PENSACOLA, FLORIDA – A federal grand jury returned an indictment, charging eight defendants with conspiracy to distribute marijuana, four of whom were charged with being involved with 100 kilograms or more of marijuana. Additionally, seven of the defendants were charged with conspiracy to commit money laundering. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The defendants are:
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Charles Zachariah Sindylek, 31, Pensacola, Florida;
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Brandon Craig Remeyer, 34, Mission Viejo, California;
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Sanford Eugene Johnson III, 31, Pensacola, Florida;
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William Brett Brownell, 26, Milton, Florida;
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William Ezra Brownell (Brett’s father), 60, Mobile, Alabama;
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David Delgiacco, 55, Lake Forest, California;
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Andrew Paul Marcelonis, 31, Pensacola, Florida; and
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Steven Ryan Michael Sholly, 30, Pensacola, Florida.
The indictment alleges that, between January 2014 and June 2017, the defendants conspired to distribute and possess with intent to distribute marijuana. It specifically alleges Sindylek, Remeyer, Johnson, and William Brett Brownell were responsible for involving 100 kilograms or more of marijuana in the conspiracy. The indictment also alleges that during the same time period, Sindylek, Remeyer, Johnson, both Brownells, Delgiacco, and Marcelonis conspired to launder money by transferring cash proceeds of the drug trafficking conspiracy through financial institutions. The trial is scheduled for August 28, 2017 at 9:00 AM at the United States Courthouse in Pensacola.
This case resulted from an investigation by the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pensacola Police Department, the Mobile Police Department, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Okaloosa County Sheriff’s Office, and the Gulf Breeze Police Department. Assistant United States Attorney Alicia H. Forbes is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
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Mexican National Pleads Guilty to Illegal Reentry ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Jose Alberto Nava-Reyes, age 35, from Guerrero, Mexico pled guilty in federal court in Florence, South Carolina, to Illegal Reentry into the United States after deportation, a violation of 8 U.S.C. § 1326(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.
Evidence presented at the change of plea hearing established that on April 15, 2017, ICE-Enforcement Removal Operations Officers in Charleston, SC, discovered Nava-Reyes, while he was in custody at the J. Reuben Long Detention Center in Horry County on state charges. Immigration records revealed that Nava-Reyes was a native and citizen of Mexico who had previously been deported from the United States back to Mexico on multiple occasions. Nava-Reyes has never received permission to enter or remain in the US.
Ms. Drake stated the maximum penalty the defendant can receive is imprisonment for 10 years and a fine of $250,000.
The case was investigated by agents of the Horry County Police Department and Immigration Custom Enforcement-Enforcement Removal Operations. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
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Memphis Man Who Shot Firearm in Community Center was Sentenced to 78 Months in Federal PrisonRead the Press Release
Memphis, TN – Marcus Dotson, 28, has been sentenced to 78 months in federal prison for illegal possession of ammunition. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented at trial, on the evening of February 5, 2016, the Memphis Police Department responded to an aggravated assault call at Riverside Community Center on 1891 Kansas Street. The community center’s recreation leader informed law enforcement that around 6 p.m., he was overseeing a scrimmage basketball game that was set to begin in the gymnasium between boys ranging in ages from 6 to 10. Before the game began, Marcus Dotson, 27, and his 14-year old nephew, entered the gym in search of a 16-year old victim.
Dotson, a convicted felon at the time of the incident, became embroiled in an argument with patrons on the bleachers, brandished the firearm at the crowd, and fired one shot into the ceiling. Both Dotson and his nephew fled the scene. An arrest warrant was issued for Dotson. He was apprehended two weeks later.
As a result of the Memphis Police Department’s investigation, one Speer .40 caliber shell casing was recovered from the gymnasium. The investigation also yielded surveillance of Dotson running from the gymnasium after the shooting, as well as witness’ identification of the defendant from a photo line-up.
On July 25, 2017, the Honorable Samuel H. Mays sentenced Dotson to 78 months’ confinement and 3 years supervised release to begin after his incarceration. Dotson currently has state criminal charges pending. The federal and state sentences will run concurrently.
The case was investigated by the Memphis Police Department’s Project Safe Neighborhoods Unit. Assistants U.S. Attorneys Karen Hartridge and Jerry Kitchen prosecuted this case on the government’s behalf.
Melendez Family Members Sentenced in South Laredo Drug ConspiracyRead the Press Release
LAREDO, Texas – Three brothers and a nephew of the reputed leader of the Melendez drug trafficking organization from South Laredo have been sentenced for their roles in the conspiracy, announced Acting U.S. Attorney Abe Martinez.
The brothers - Gerardo Melendez, 34, Rafael Andres Melendez, 45, and Mario Alberto Melendez, 37, all of Laredo – and their nephew - Jesus Rosendo Garcia-Melendez, 24, also of Laredo - had all previously pleaded guilty for their crimes. Today, U.S. District Judge Diana Saldaña ordered Rafael Melendez to serve 198 months, while Garcia-Melendez, Gerardo and Mario Melendez were sentenced to 87, 168, and 120 months, respectively. Each will also serve five years of supervised release following completion of their sentences. Rafael Melendez was also ordered to pay a $10,000 fine. The court also issued a final order of forfeiture for $500,000 against Rafael and Gerardo Melendez.
The four men were held accountable for more than 1.2 kilograms of crack cocaine. In addition, the court upwardly departed from the U.S. Sentencing Guidelines for possessing of a firearm and engaging in credible threats of violence, maintaining a drug premises and leadership roles in the organization. During the hearing, the court determined that all four men were engaged in a long-lasting drug distribution conspiracy. Judge Saldaña further noted that their activities were shameful and caused a lot of heartache, not just for their individual families, but also for the entire community. She took note of the number of state arrests and encounters with law enforcement which had gone unpunished for a very long time and necessitated the federal government stepping in to stop the drug-trafficking and violent activities of the Melendez organization.
Gerardo Melendez operated a crack distribution point, while Rafael and Mario Melendez and Garcia-Melendez operated and supplied a separate distribution point for the Melendez drug trafficking organization. Adan Melendez aka “12,” 41, and his two sons ran the organization which distributed cocaine, crack and marijuana in South Laredo from at least 2012 until they were arrested in the summer of 2014. Testimony during Adan Melendez’s trial revealed he profited approximately $1,200 per day from his operations and spent tens of thousands on luxury cars for himself and his sons.
Adan Melendez was sentenced earlier this year to life in prison.
To date, 26 have been sentenced for their roles in the conspiracy. The final four will be sentenced tomorrow.
The Drug Enforcement Administration, Laredo Police Department, Webb County Sheriff’s Office and Texas Department of Public Safety conducted the Organized Crime Drug Enforcement Task Force investigation dubbed “Operation Revocation.” Assistant U.S. Attorneys José Angel Moreno is prosecuting the case.
Marshall County physician indicted on health care fraud chargesRead the Press Release
WHEELING, WEST VIRGINIA – A physician with a pain management clinic in McMechen, West Virginia, was indicted by a federal grand jury sitting in Wheeling on June 6, 2017 on health care fraud, mail fraud, and wire fraud charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Dr. Roland F. Chalifoux, Jr., age 57, of St. Clairsville, Ohio, was indicted on eleven counts of “Health Care Fraud for Travel Dates,” seven counts of “Mail Fraud,” four counts of “Wire Fraud,” and four counts of “Health Care Fraud.” The crimes are alleged to have occurred from 2008 to June 2017 in Marshall County and elsewhere in the Northern District of West Virginia.
Assistant U.S. Attorney Robert H. McWilliams is prosecuting the case on behalf of the government. The U.S. Department of Health and Human Services, The Drug Enforcement Administration, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the West Virginia Insurance Fraud Investigation Unit are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manhattan U.S. Attorney Announces Additional Charges in Connection with the Murder of Jessica WhiteRead the Press Release
Joon H. Kim, Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced charges against WANDY TEJADA for the June 11, 2016, murder of Jessica White, who was killed by a stray bullet while watching her children play in the playground of the John Adams Houses in the Bronx, New York. TEJADA, who was previously arrested, was charged in an Indictment returned yesterday by a federal grand jury. The case is assigned to Chief U.S. District Judge Colleen McMahon.
STIVEN SIRI-REYNOSO was previously arrested and indicted for his role in the murder of Ms. White.
Manhattan Acting U.S. Attorney Joon H. Kim said: “Our office has been committed to finding and prosecuting those involved in the senseless murder of Jessica White, who was killed while watching her children on a playground in the Bronx. Today’s indictment will not return Ms. White to her family, but we hope it provides some solace to know that the men who allegedly took her life will be held to account.”
FBI Assistant Director William F. Sweeney Jr. said: “This case clearly shows that the violence of street gangs affects innocent bystanders, not only those directly involved. While simply watching her children, a mother lost her life to selfish, careless violence. The alleged actions of these gang members demonstrate blatant disregard for the lives of the members of their communities. Eradicating street gangs remains among the top priorities of the New York Office, as we will not tolerate the destructive impact that they have on our residents.”
NYPD Police Commissioner James P. O'Neill said: "Our commitment to investigating crime—particularly a homicide as senseless as Jessica White—is unwavering. We will continue to pursue those who commit homicides, as senseless as the one alleged, with relentless focus."
According to the allegations in the Indictment[1] and statements made in court proceedings:
June 11, 2016, Jessica White was struck and killed by a stray bullet while sitting on a bench watching her three children play on a playground at the John Adams Houses where she lived. SIRI-REYNOSO, a member of the “Dominicans Don’t Play” or “DDP” street gang, was engaged in an ongoing gang dispute between the DDPs and the rival “Trinitarios” street gang involving among other things, SIRI-REYNOSO’s drug sales near the John Adams Houses. On the night of June 11, 2016, Trinitarios members tried to attack SIRI-REYNOSO. In retaliation, SIRI-REYNOSO sent TEJADA to shoot at the Trinitarios. One of the bullets fired by TEJADA struck and killed Jessica White.
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SIRI-REYNOSO, 24, and TEJADA, 17, both of the Bronx, are charged in an Indictment with one count of murder through the use of a firearm in connection with a crime of violence, and aiding and abetting the same. SIRI-REYNOSO faces a maximum penalty of death or life imprisonment, and TEJADA faces a maximum penalty of life imprisonment. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI and the NYPD.
The case is being handled by the Office’s Violent and Organized Crimes Unit. Assistant U.S. Attorney Drew Skinner is in charge of the prosecution.
The charge contained in the Indictment is merely an accusation and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to 12 Years in Prison for Possession of Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Ronnie Parente, Jr., 35, was sentenced Tuesday, July 25, 2017, in the United States District Court for the Southern District of Illinois to 144 months in federal prison, ten years of supervised release, and was ordered to pay $5,100 in special assessments for possession of child pornography. Parente, Jr., will also have to register as a sex offender. Parente, Jr. had previously been convicted of possession of child pornography in the Circuit Court of Madison County in 2004.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The investigation was conducted by the Granite City Police Department and was prosecuted by Assistant United States Attorney Laura V. Reppert.
MS-13 Member Sentenced to Prison for RICO ConspiracyRead the Press Release
BOSTON – A member of MS-13’s Enfermos Criminales Salvatrucha clique in Chelsea was sentenced today in federal court in Boston for RICO conspiracy involving the attempted murder of a rival gang member.
Angel Pineda, a/k/a “Bravo,” 21, a Honduran national who resided in Revere, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 93 months in prison and will be subject to deportation after completion of his sentence. In April 2017, Pineda pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. He also admitted responsibility for an attempted murder of a rival gang member.
Pineda was a member of the Enfermos Criminales Salvatrucha clique in Chelsea. On Sept. 8, 2014, Pineda and another MS-13 member, Jose Vasquez, a/k/a “Little Crazy,” attempted to murder an 18th Street gang member by stabbing him in Chelsea.
After a three-year investigation, Pineda was one of 61 defendants named in a January 2016 superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. According to court documents, MS-13 is a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including Massachusetts. MS-13 members are required to commit acts of violence against rival gang members to gain promotions and to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder rival gang members whenever possible.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon made the announcement.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Los Angeles Men Convicted for Running Nationwide Synthetic Drug Trafficking RingRead the Press Release
SYRACUSE, NEW YORK – A jury voted today to convict Andrew Raymond and Brian Requena, both of Los Angeles, on drug trafficking and money laundering charges related to their operation of a nationwide synthetic drug trafficking ring.
The announcement was made by Acting United States Attorney Grant C. Jaquith; Special Agent in Charge James R. Hunt, Drug Enforcement Administration (DEA), New York Division; and Special Agent in Charge James D. Robnett, Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
Acting United States Attorney Grant Jaquith stated: “Synthetic drugs are a scourge on our community and communities across the country. They masquerade as innocuous substances like potpourri and incense, but are in fact toxic and send many users to the hospital or to a worse fate. The defendants, operating from Los Angeles, made millions by spreading this poison nationwide in commercial packaging bearing brand names like Twilite, Black Diamond, Platinum XXX, Get Real, and No Mames. Now they face the prospect of years in prison, as well as forfeiture of their ill-gotten gains. Their convictions today demonstrate that we will investigate and prosecute synthetic drug traffickers to the fullest extent of the law, working with our dedicated law enforcement partners.”
DEA Special Agent in Charge James R. Hunt stated: “These defendants manufactured synthetic cannabinoids and then distributed them nationwide, including in the upstate New York area. Due to diligent police work, these individuals were found guilty today and can no longer distribute these drugs, which have terrible public health impacts.”
IRS-CI Special Agent in Charge James D. Robnett stated: “CI is committed to using its expertise in investigating money laundering and other financial crimes to take down major drug traffickers such as these defendants.”
Raymond and Requena were convicted, following an 11-day trial, of conspiring to distribute synthetic drugs and launder money. The trial evidence demonstrated that they conspired to manufacture and distribute synthetic cannabinoids (also known as “Spice,” “Spike,” “K2,” or “synthetic marijuana”) throughout the country, including to multiple “head shops” in the Northern District of New York. At the height of their drug trafficking conspiracy, they were each making approximately $100,000 per week, and they had a large team of employees who manufactured, shipped and sold their products. Three other members of this conspiracy previously pled guilty to similar charges.
Documents found at the defendants’ warehouses in Los Angeles and on their computers showed that they understood their synthetic substances were controlled by federal drug laws. Additionally, the defendants went to great lengths to evade detection by law enforcement, including by setting up shell companies, using P.O. boxes to divert attention from the warehouse where they manufactured their product, and putting their company (Real Feel Products, Inc.) and all of its bank accounts in Requena’s name after DEA and other law enforcement agencies executed a search warrant on the defendants’ warehouse in February 2014.
The trial evidence also demonstrated that the defendants conspired to commit money laundering by wiring millions of dollars to China to purchase the powder form of the synthetic cannabinoid that they used in their finished product.
Raymond and Requena, who were ordered to jail following the jury verdict, will be sentenced by Senior United States District Judge Norman A. Mordue on December 1, 2017. They each face up to 20 years in prison on each count of conviction, a fine of up to $5 million, and forfeiture money judgements in excess of $10 million in addition to any fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by DEA, IRS-CI, Homeland Security Investigations (HSI), and U.S. Immigration and Customs Enforcement (ICE), and was prosecuted by Assistant U.S. Attorneys Carla Freedman and Michael F. Perry.
Lansing, Illinois Man Sentenced to 170 Months ImprisonmentRead the Press Release
HAMMOND - Acting United States Attorney Clifford D. Johnson announced that Bobby Ray Dejohnette, 46, of Lansing, Illinois, was sentenced on July 26, 2017 by District Court Judge James T. Moody for conspiracy to distribute crack cocaine and use of a firearm in furtherance of a drug trafficking crime.
Dejohnette was sentenced to 170 months imprisonment followed by 4 years of supervised release.
According to documents in this case, in 2015 an investigation revealed that Dejohnette conspired with others to sell crack cocaine within the Northern District of Indiana. A search of his then residence in Calumet City, Illinois revealed that he maintained both drugs and firearms within the residence.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the Department of Homeland Security, Hammond Police Department, Calumet City Police Department and with assistance from the United States Attorney’s Office for the Northern District of Illinois. This case was prosecuted by Assistant United States Attorneys Thomas McGrath and Abizer Zanzi.
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Lancaster Man Sentenced to 27 Months’ Imprisonment for PerjuryRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Angel Luis Carrasco-Rivera a/k/a Manuel Calcagno, age 54, of Lancaster, Pennsylvania, was sentenced today by Chief United States District Court Judge Christopher C. Conner to serve 27 months’ imprisonment for committing perjury.
According to United States Attorney Bruce D. Brandler, Carrasco-Rivera was convicted of committing mail fraud in a scheme he devised to obtain more than $102,000 of unemployment benefits to which he was not entitled. After he was sentenced to serve 18 months in prison for that case in June 2016, it was learned he purposely failed to correct inaccurate information in his Presentence Report regarding his criminal history. It was learned that Carrasco-Rivera was prosecuted and convicted of a drug trafficking crime in Massachusetts in 1991 under the name Manuel Calcagno and was sentenced to a 20-year prison term for that crime. That conviction was not included in Carrasco-Rivera’s criminal history in the Presentence Report, resulting in a lower advisory sentencing guideline range in his case. When he was ordered to appear before the court regarding the inaccuracy, Carrasco-Rivera lied under oath to the court when he explained how he became associated with the Calcagno name. He pled guilty to committing the perjury. In sentencing Carrasco-Rivera for the perjury, Chief Judge Conner found that he interfered with the administration of justice by causing an unnecessary expenditure of significant governmental resources to investigate his statements. The sentence for the perjury was imposed to run consecutive to the sentence for the fraud offense.
This matter was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. Assistant U.S. Attorney James T. Clancy prosecuted both the fraud and perjury cases.
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Lafayette tax preparer sentenced to 36 months in prison for making, filing a false tax returnRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Lafayette tax preparation business owner was sentenced last week to 36 months in prison for filing a false tax return and not paying more than $350,000 in taxes owed.
Kevin Dalcourt, 49, of Lafayette, was sentenced Friday by U.S. District Judge Dee D. Drell on one count of making and subscribing a false tax return. He was also sentenced to one year of supervised release, and he was ordered to pay $397,989.78 restitution and an $89,927 fine. According to the April 19, 2017 guilty plea, Kevin Dalcourt was a tax preparer who owned and managed Kevin’s Tax Service in Lafayette. He was incarcerated in 2010 on non-tax related state charges but continued to manage his tax preparation business. He trained his staff and managed his business prior to his incarceration to use false information in customer tax returns to increase the amount of the customers’ returns. The defendant’s wife, Tamiko Dalcourt, assisted in running the company from 2010 to 2013, while her husband was in prison. Tamiko Dalcourt pleaded guilty to a misdemeanor charge of failing to file the couple’s 2012 joint tax return. Kevin’s Tax Service was highly profitable, but Kevin Dalcourt did not report his income to avoid paying taxes for tax years 2009 to 2011. In that time he avoided paying an estimated total of $356,426.78 in taxes for those three years.
Tamiko Dalcourt pleaded guilty on March 23, 2017 to one count of willful failure to file a return, supply information or pay tax. She faces one year in prison, one year of supervised release and a $100,000 fine.
The IRS conducted the investigation. Assistant U.S. Attorney Myers P. Namie prosecuted the case.
Justice Department Files Lawsuit Against Technical Marine Maintenance Texas and Gulf Coast Workforce Alleging Discrimination Based on Citizenship StatusRead the Press Release
The Justice Department filed a lawsuit today against Louisiana-based companies Technical Marine Maintenance Texas LLC, which provides contract shipyard labor, and Gulf Coast Workforce LLC, a related company, alleging that they violated the Immigration and Nationality Act (INA) by discriminating against applicants and employees during the employment eligibility verification process based on the workers’ citizenship status.
According to the complaint, from at least January 2014 until at least July 2017, Technical Marine Maintenance Texas limited the documentation workers could provide to establish their work authorization based on the workers’ citizenship status. Specifically, the company asked U.S. citizens to produce “IDs” and Social Security cards, while requesting immigration documents from non-U.S. citizens. Under the INA, all workers, regardless of their citizenship status, must be allowed to choose from among the valid documentation that proves their employment eligibility. The INA specifically prohibits employers from discriminating by limiting workers’ choices based on their citizenship status. The complaint also alleges that Gulf Coast Workforce is liable for Technical Marine Maintenance Texas’s actions because Gulf Coast employs or jointly employs the affected workers.
“The law protects both U.S. citizens and non-citizens from discriminatory obstacles during the Form I-9 or E-Verify processes,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “Employers cannot limit the types of documents a worker can present to prove employment authorization, and if this limitation occurs because of citizenship status or national origin, the Civil Rights Division will vigorously enforce the law.”
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.
Jury Convicts East St. Louis Man of His Fourth Gun-Related ChargeRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Tuesday afternoon, a federal jury in East St. Louis found Bernard L. Cherry, 31, of East St. Louis, Illinois, guilty of unlawful possession of a firearm by a felon.
Evidence at trial showed that on December 13, 2016, an East St. Louis officer responding to a 911 call about a suspicious vehicle encountered Cherry in the yard of an abandoned house. A .40 caliber pistol was on the ground at Cherry’s feet. Cherry attempted to flee from the officer but was eventually apprehended. During a statement to police, he admitted to having the gun in his hand.
At the time of his arrest Cherry was on supervised release in two separate federal cases after convictions for felon in possession of a firearm. Cherry also had prior state convictions in both Illinois and Missouri for unlawful possession of a firearm by a felon, aggravated robbery and attempted aggravated vehicular hijacking. Cherry faces a maximum of ten years in prison. Sentencing has been scheduled for November 17, 2017, in front of the Honorable David R. Herndon.
The investigation into this crime was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East St. Louis Police Department. The case was prosecuted by Assistant United States Attorneys Chris Hoell and Derek Wiseman.
Indictment Charges Doctors with Drug Distribution, Health Care Fraud and Money Laundering OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in Bridgeport returned an indictment today charging Dr. BHARAT PATEL, 70, of Milford, and Dr. RAMIL MANSOUROV, 47, of Darien, with narcotics distribution, health care fraud and money laundering offenses.
PATEL was arrested on a federal criminal complaint on July 12 and is detained. MANSOUROV was apprehended by the Canada Border Services Agency on an immigration offense on July 13 and is currently detained in Canada.
As alleged in court documents, PATEL and MANSOUROV are physicians who operated out of Family Health Urgent Care, located at 235 Main Street in Norwalk. The medical practice was formerly known as Immediate Health Care, which was owned by PATEL. In approximately 2012, MANSOUROV purchased the practice from PATEL and renamed it Family Urgent Health Care, and PATEL continued to work at the practice. PATEL and MANSOUROV have been participating providers with Medicare and the Connecticut Medicaid Program. Beginning in approximately 2013, the Drug Enforcement Administration received information that PATEL and MANSOUROV may be writing prescriptions for controlled substances outside the scope of legitimate medical practice.
It is alleged that PATEL regularly provided prescriptions for narcotics, including oxycodone and hydrocodone, to patients that he knew were addicted or had been arrested for distributing or possessing controlled substances. On numerous occasions, PATEL provided prescriptions to patients who paid him $100 in cash for each prescription. In certain instances, PATEL would write prescriptions for individuals who were not his patients in exchange for cash. At times, when PATEL was not available, MANSOUROV provided PATEL’s patients with unnecessary prescriptions. PATEL and MANSOUROV also regularly provided post-dated prescriptions to individuals, sometimes with dates that matched future dates when the doctors would be out of the country.
It is alleged that certain individuals who paid PATEL cash for prescriptions paid for the filled prescriptions by using a state Medicaid card, and then illegally distributed the drugs. The investigation revealed that in 2014 alone, more than $50,000 in cash deposits were made into PATEL and his wife’s bank accounts, and that some of these funds were used to purchase PATEL’s current residence.
It is further alleged that between November 2013 and December 2016, MANSOUROV defrauded the state’s Medicaid program of more than $4 million by billing for home visits that he never made, billing for nursing home visits that he never made, billing for office visits that never happened, and billing for visits that he claimed took place on dates on which he was actually out of state or out of the country. Billing records also reveal that, on some occasions, MANSOUROV and PATEL billed Medicaid for the same patient on the same day at two different locations.
It is alleged that MANSOUROV moved some of the stolen funds to a bank account in Switzerland.
The five-count indictment charges PATEL and MANSOUROV with one count of conspiracy to distribute oxycodone and hydrocodone, an offense that carries a maximum term of imprisonment of 20 years, and one count health care fraud, an offense that carries a maximum term of imprisonment of 10 years. The indictment also charges MANSOUROV with two counts and PATEL with one count of money laundering, an offense that carries a maximum term of imprisonment of 20 years.
The indictment also seeks the forfeiture of PATEL’s Milford residence, MANSOUROV’s Darien residence, $16,521.25 seized from a safe deposit box rented by PATEL, and money judgments equal to the proceeds of PATEL and MANSOUROV’s alleged criminal conduct.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad and the Norwalk Police Department, with the critical assistance of the Connecticut Office of the Attorney General. The DEA Tactical Diversion Squad includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments.
U.S. Attorney Daly thanked the Canada Border Services Agency and the U.S. Attorney’s Office for the District of Maine for their assistance in this matter.
The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Indian national sentenced to 30 months in prison for selling silencers, planning smuggling operationRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that an Indian national was sentenced Tuesday to 30 months in prison for illegally selling silencers and planning to smuggle more.
Mohit Chauhan, 31, of Pitampura, New Delhi, India, pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of dealing firearms without a license. He was also sentenced to three years of supervised release. According to the April 20, 2017 guilty plea, Chauhan was contacted by someone wishing to buy silencers. Chauhan discussed by email and phone calls manufacturing silencers for the potential client, and importing more silencers and parts by labeling them as “auto parts” to evade U.S. Customs. They set up a meeting, Chauhan arrived in Shreveport on December 1, 2016 to meet the buyer and brought silencer parts with him. He traveled to a Bossier City, La., restaurant to discuss the sale details with the buyer. Agents recorded the meeting. Chauhan did not have a license to deal or conduct a business involving silencers and parts as required by law, and the silencers and parts had traveled in foreign commerce.
The ATF conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Honduran National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Honduran national was sentenced today in federal court in Boston for a federal immigration crime.
Ivan DeJesus Lopez-Lopez, 29, a Honduran national residing in Boston, pleaded guilty to one count of illegal reentry of a deported alien before U.S. District Court Chief Judge Patti B. Saris, who immediately sentenced Lopez-Lopez to time served. Lopez-Lopez will be subject to deportation.
Lopez-Lopez was previously deported in November 2009. In May 2017, federal agents in Boston discovered Lopez-Lopez and found him to be illegally present in the United States.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Group Responsible for ATM Thefts Pleads GuiltyRead the Press Release
Anchorage, Alaska - Acting U.S. Attorney Bryan Schroder announced today that the group responsible for ATM thefts at several local banks pleaded guilty yesterday in U.S. District Court in Anchorage.
Adrian Cheyne Turnbow, 26, of Anchorage, pleaded guilty to an Indictment charging him with possession of stolen bank property. As part of his plea, Turnbow admitted his involvement in four separate Automated Teller Machine (ATM) thefts from banks in Anchorage where he used front end loaders stolen from local construction sites to remove the ATMs from the banks. Turnbow was involved in thefts or attempted thefts that occurred on December 25, 2016, February 6, March 1, and March 6, 2017.
Cristi Cozzetti, 28, Jerd Thacker, 28, and Jordan Cook, 29, all from Anchorage, pleaded guilty to an Indictment charging them with possession of stolen bank property. As part of their plea, the group admitted they possessed an ATM on March 1, 2017, and attempted to open it after it had been stolen from an Anchorage bank by Turnbow.
Chief U.S. District Judge Timothy M. Burgess scheduled all of the co-defendants’ sentencing hearings for Oct. 6, 2017. Turnbow, Cozzetti, Thacker, and Cook have been in federal custody since their arrest in March 2017.
Each defendant faces a maximum term of imprisonment of 10 years, and a potential fine of up to $250,000.
Acting U.S. Attorney Schroder commended the diligent and hard work of the Federal Bureau of Investigation, and the Anchorage Police Department for the investigation leading to the successful prosecution of Turnbow, Cozzetti, Thacker, and Cook.
Grant County Man Sentenced for Unlawful Possession of .50 Caliber Machine GunRead the Press Release
EUGENE, Ore. – On Wednesday, July 26, 2017, U.S. District Court Judge Ann Aiken sentenced Michael Ray Emry, 55, of John Day, Oregon, to 30 months in federal prison and three years of supervised release. Emry had previously pleaded guilty on January 23, 2017 to unlawfully possessing a fully automatic .50 caliber machine gun that was not registered to him.
According to court documents and statements made in court, on May 6, 2016, federal agents executed a search warrant on Emry’s trailer in John Day and recovered a Browning M2 .50 caliber machine gun with an obliterated serial number. Emry told agents that the firearm was fully automatic and could fire between 550 and 650 rounds per minute, that he had stolen it from a man in Idaho and that he had removed the serial number prior to bringing it to Oregon.
"I applaud federal and state law enforcement officers for their swift and decisive action in removing a very dangerous stolen weapon from the community," said Billy J. Williams, United States Attorney for the District of Oregon. "Transporting stolen weapons is a serious crime and will be met with equally serious consequences."
"I appreciate the partnership with ATF and OSP in this investigation," said Loren Cannon, Special Agent in Charge of the FBI in Oregon. "The people's representatives pass laws to keep our communities safe. Mr. Emry broke those laws and as a consequence, he will spend time in federal prison."
The case was investigated by the FBI in collaboration with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Oregon State Police (OSP), and was prosecuted by Nathan J. Lichvarcik, Assistant United States Attorney for the District of Oregon.
Grand Jury Returns Indictment Charging Two with Money LaunderingRead the Press Release
PITTSBURGH – One Beaver County resident and one Allegheny County resident have each been indicted by a federal grand jury in Pittsburgh on a charge of money laundering, Acting United States Attorney Soo C. Song announced today.
The one-count indictments, returned on July 25, named Nathanael Nyamekye, 34, of Beaver Falls, Pennsylvania, and Ismail Shitu, 35, of Pittsburgh, Pennsylvania, as defendants.
According to the indictments, on or about June 29, 2016, Shitu caused Citizens Bank to reissue a $48,000 official bank check which Nyamekye deposited into his Huntington Bank account, both knowing that the funds were derived from a criminal offense, when in fact the funds were derived from a wire fraud scheme.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $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 Charles A. Eberle is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation’s Pittsburgh Field Office and Baltimore Cyber Task Force, with the assistance U.S. Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI), the Pittsburgh Bureau of Police, Chippewa Police and Aliquippa Police, conducted the investigation leading to the indictments in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Gloucester County, New Jersey, Man Sentenced to 114 Months in Prison for Weapons ChargeRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 114 months in prison for being a previously convicted felon in possession of a weapon, Acting U.S. Attorney William E. Fitzpatrick announced.
Darius A. Robinson, 35, of Westville, previously pleaded guilty before Judge Noel L. Hillman to Count 2 of an indictment charging him with being a felon in possession of a weapon. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Feb. 11, 2016, Robinson was arrested while in possession of a Titan .25-cal. handgun in Gloucester County. Robinson had previously been convicted on drug charges and sentenced to three years in prison.
In addition to the prison term, Judge Hillman sentenced Robinson to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the ATF, under the direction of Special Agent in Charge John B. Devito, Newark Field Division, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
Georgia Man Sentenced for Role in 'Craigslist Car' SchemeRead the Press Release
CINCINNATI – Luis Caseres-Duarte, 26, of Norcross, Ga., was sentenced in U.S. District Court to 21 months in prison for participating in what is known as the “Craigslist car” scheme, a fraud scheme that caused numerous people to send money for cars that were never delivered.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, and West Chester Police Chief Joel Herzog, announced the sentence handed down today by U.S. District Judge Timothy S. Black.
According to court documents, the scheme involved members of a conspiracy (many of whom were overseas) placing ads on Craiglist and other sites to sell vehicles for attractive prices. The cars were listed for sale using a fake name or fake business name from whom buyers were instructed to wire money to a purported “broker.” Caseres-Duarte and others would then use fraudulent identification documents to pose as the broker and withdraw the wired funds. Once funds were withdrawn, the money would be split between members of the conspiracy. No actual vehicles were ever provided for the purchases.
Caseres-Duarte was identified as part of this scheme during a traffic stop near West Chester, Ohio, shortly after he obtained one of the wire payments at a Walmart. Officers discovered more than $2,000 in cash on his person and when given consent to search Casertes-Duarte’s cell phone, observed text messages identifying transactions of more than $20,000.
Investigators then discovered more than $33,000 in cash in hotel rooms used by the defendant in Cincinnati, as well as documentation noting wires for more than $160,000 to individuals in Hungary.
Caseres-Duarte pleaded guilty in March 2017 to one count of conspiracy to commit wire fraud.As part of his sentence, he was also ordered to serve 50 hours of community service, serve three years of supervised release, and pay more than $200,000 in restitution to the buyer victims of the scheme.
A second co-defendant in the case, Javier Martinez-Melo, faced charges for this scheme in both Ohio and Tennessee. Martinez-Melo was sentenced in May 2017 by a federal court in Tennessee and received a total sentence of 57 months.
U.S. Attorney Glassman commended the cooperative investigation by the West Chester Police Department and the FBI, as well as Assistant United States Attorney Timothy S. Mangan, who is representing the United States in this case.
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Georgia Man Charged with Trafficking MarijuanaRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging SHAMAR MADDEN, also known as “Sheist,” 37, of Atlanta, Georgia, with one count of conspiracy to distribute, and to possess with intent to distribute, 100 kilograms or more of marijuana.
The indictment was returned under seal on July 6 and MADDEN was arrested yesterday in Atlanta. He appeared before a U.S. magistrate judge in Atlanta and is detained pending a detention hearing that is scheduled for tomorrow.
The indictment alleges that between August 2016 and February 2017, MADDEN, Malek Long and others conspired to distribute marijuana.
If convicted of the offense, MADDEN faces a maximum term of imprisonment of 40 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
On May 12, 2017, Long, of New Haven, waived his right to be indicted and pleaded guilty to the same charge. In pleading guilty, Long admitted that he and others had used the U.S. Mail to ship substantial quantities of marijuana from California to New Haven, and then distributed the marijuana throughout the area. As part of the investigation, on February 22, 2017, law enforcement searched two storage lockers that Long maintained at a self-storage facility in West Haven and seized approximately $404,000 in cash.
Long awaits sentencing.
This investigation is being conducted by the Federal Bureau of Investigation, U.S. Postal Inspection Service, New Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Gang Members Convicted of Racketeering ChargesRead the Press Release
A federal jury convicted William Steele, a member of the Detroit branch of the Rollin’ 60s Crips street gang, of RICO conspiracy and possession of a firearm in furtherance of a drug trafficking crime. This verdict, which was announced yesterday, wrapped up a trial that began July 12, 2017. During the trial, two co-defendants of Steele, Jermell Coleman and Martel Strong, pleaded guilty to RICO conspiracy. These three individuals were the final remaining defendants of a fourteen-defendant indictment against the Rollin 60s Crips street gang and are the result of the collaborative efforts of law enforcement and the community to reduce homicide and other violent crime under the Detroit One program, announced Acting U.S. Attorney Daniel L. Lemisch.
Joining in the announcement was Thomas Chittum, Acting Special Agent in Charge of the Detroit Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Chief James Craig of the Detroit Police Department.
According to the indictment, the Rollin’ 60s Crips is a national street gang founded in Los Angeles, California, in the mid-1970s. In 2008, Jerome Hamilton, who previously pleaded guilty, started a Detroit line of the Rollin’ 60s, which now boasts approximately 150 members and who operate primarily on the west side of Detroit in the vicinity of Seven Mile and Tracey.
Testimony and documentary evidence in the trial demonstrated how the Rollin’ 60s Detroit chapter is a violent organization responsible for numerous murders, assaults, robberies, carjackings, and the unlawful possession and trafficking of firearms and narcotics in and around the Detroit metropolitan area over the last nine years. The gang uses violence as a means of retribution for acts done by rival gang members, to intimidate witnesses, to control their territory, and as a means for individuals to maintain or advance their position within the gang. Specifically, the evidence revealed that Steele, 26, of Detroit, distributed marijuana, crack cocaine, and ecstasy, possessed weapons, and aided and abetted retaliatory shootings on behalf of the gang.
Other Rollin’ 60s Crips members have previously pleaded guilty to racketeering conspiracy for acts involving murders, carjackings, armed robberies, firebombing, unarmed robberies, and distributing narcotics on behalf of the gang. Those members are:
- Jerome Hamilton, 24, of Southfield, pleaded guilty to racketeering conspiracy and use of a firearm during and in relation to a crime of violence causing death;
- Darriyon Mills, 25, of Detroit, pleaded guilty to RICO conspiracy and using a firearm during and in relation to a crime of violence;
- Roderek Perry, 22, of Detroit, pleaded guilty to racketeering conspiracy, assault with a dangerous weapon in aid of racketeering, and use and carry of a firearm during and in relation to a crime of violence;
- Jonathan Barber, 26, of Detroit, pleaded guilty to RICO conspiracy;
- Deaires Foster, 23, of Irondale, Alabama, pleaded guilty to RICO conspiracy;
- Timothy Price, 27, of Detroit, pleaded guilty to RICO conspiracy;
- Sadeisha Johns, 32, of West Bloomfield, pleaded guilty to RICO conspiracy;
- Soumo Kennedy, 23, of Detroit, pleaded guilty to RICO conspiracy;
- Brandon Kennedy, 23, of Detroit, pleaded guilty to RICO conspiracy;
- Charles Anthony Smith, 32, of Windsor, Ontario, Canada, pleaded guilty to RICO conspiracy; and
- Tre Tigner, 23, of Detroit, pleaded guilty to RICO conspiracy.
The case is being investigated by the ATF’s Comprehensive Violence Reduction Program, which includes representatives of the Detroit Police, Michigan State Police, and Michigan Department of Corrections, in coordination with the FBI Violent Crime Task Force, and Detroit Police Department. The case is being prosecuted by Assistant U.S. Attorneys Shane Cralle and Michael Heesters.
Fort Peck Kidnapper Sentenced to over 40 Years in Federal PrisonRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced today that John William Lieba II was sentenced to 500 months (41.6 years) in prison, 5 years of supervised release, and a $300 special assessment. U.S. District Judge Brian Morris presided over the hearing.
The case arose because Lieba was at the park in Wolf Point, Montana. Lieba first tried to kidnap an eleven-year-old girl, but she was too fast. He then settled for a four-year-old girl because she was not as fast. Lieba then vaginally raped the child, strangled her, and left her for dead in an abandoned vehicle in a remote area near Wolf Point. Because it was the heart of winter, temperatures dipped below freezing while the victim was missing. When interviewed, Lieba initially denied knowing of the kidnapping and never showed contrition or remorse for his actions. Instead, he told investigators that he was upset by his lost sexual opportunities with other females.
In a sentencing memo filed in federal court, Assistant U.S. Attorney Ryan G. Weldon stated, “Lieba, through his actions, forced every parent in Montana to confront their worst nightmare. That nightmare became a reality in Wolf Point when Lieba kidnapped, raped, and left a four-year-old child for dead.”
Judge Morris sentenced Lieba to over 40 years in federal prison, with five years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Lieba will likely serve all of the time imposed by the court. In the federal system, Lieba does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The Lieba case was investigated by the Federal Bureau of Investigation, Fort Peck Tribes Department of Law and Justice, Roosevelt County Sheriff’s Office, and multiple other federal, state, and local agencies.
Former Reading, PA Mayor Charged with Violations of Federal Public Corruption LawsRead the Press Release
PHILADELPHIA – A federal indictment1 was unsealed today charging former Mayor Vaughn Spencer, 70, of Reading, for alleged violations of federal public corruption laws, announced Acting United States Attorney Louis D. Lappen. The indictment charges Spencer with 9 counts of bribery, 1 count of honest services wire fraud and conspiracy. Rebecca Acosta, 40, of Reading, and James Hickey, 54, of Allentown, were also included on the indictment. Acosta was charged with 2 counts of bribery, 1 count of mail fraud, 1 count of wire fraud, and conspiracy. Hickey was charged with 1 count of bribery, 1 count of mail fraud, 1 count of wire fraud and conspiracy.
According to allegations contained in the indictment, Spencer was involved in illegal activities associated with his position as an elected official: today’s announcement is the culmination of a several year investigation involving the pleas of 5 other individuals. Former Reading City officials and businesspersons pursuing contracts with the city of Reading are among those who have already plead guilty. The indictment sets forth numerous overt acts committed by Vaughn Spencer in the course of the conspiracy in which his objective was to maximize his campaign contributions through unlawful means.
In one egregious example, Mayor Spencer offered a bribe through City Council President Francisco Acosta to Francisco Acosta’s wife, School Board President Rebecca Acosta, who was running for district justice. Mayor Spencer gave the bribe in order to persuade Francisco Acosta to seek repeal of a city Code of Ethics ordinance that capped at $2,600 individual campaign contributions to persons running for city office, like Spencer, who was running as an incumbent in the democratic primary.
“The mayor of Allentown and the former mayor of Reading charged in the two indictments unsealed today sold their offices to the highest bidder -- violating the trust and confidence of the citizens of their cities,” said Acting United States Attorney Louis Lappen. “Both mayors, working with other corrupt officials and businesspeople, directed lucrative contracts to companies who agreed to provide campaign contributions in exchange for work. In an astounding act of irony, former Mayor Spencer bribed the President of City Council to introduce legislation repealing a Reading anti-corruption statute. The United States Attorney’s Office will continue to aggressively investigate and prosecute public officials who operate these “pay to play” schemes.
"As alleged in these indictments, 'pay to play' was the order of the day in Allentown, and in Reading," said Michael Harpster, Special Agent in Charge of the FBI's Philadelphia Division, "with those cities' mayors manipulating the levers of power for their own ways and means. As charged, Edwin Pawlowski and Vaughn Spencer brazenly and repeatedly sold off city contracts to bankroll their political futures. This years-long investigation illuminated troubling conduct for which all of those indicted must now answer. The FBI is committed to fighting public corruption, which erodes the trust of 'we the people' and cheapens our cherished democracy."
“Internal Revenue Service Criminal Investigation (IRS-CI) is diligent in unraveling the fraudulent actions of those, such as Edwin Pawlowski and Vaughn Spencer, who scheme to defraud citizens of Allentown and Reading who placed their trust in him,” said Acting Special Agent in Charge Gregory Floyd of IRS-CI’s Philadelphia Field Office. IRS-Criminal Investigation is proud to be a member of the formidable team that is rooting out public corruption. “Today’s indictment is a reminder that there are detrimental consequences for this type of criminal behavior.”
The charge of bribery concerning programs receiving federal funds carries a maximum sentence of 10 years in prison and a $250,000 fine; the charge of honest services wire fraud carries a maximum sentence of 20 years in prison and a $250,000 fine; and the charge of conspiracy carries a maximum sentence of 5 years in prison and a $250,000 fine.
The case is being prosecuted by Assistant United States Attorneys Michelle Morgan and Anthony Wzorek of the U.S. Attorney’s Office for the Eastern District of Pennsylvania. The case is being investigated by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation and Pennsylvania State Police.
1An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former New York City Police Officer Merlin Alston Sentenced to 20 Years in Prison for Drug Trafficking and Firearms OffensesRead the Press Release
Joon Kim, the Acting United States Attorney for the Southern District of New York, announced that Former New York City Police Officer MERLIN ALSTON, was sentenced this afternoon in Manhattan federal court to a prison term of 20 years for participating in a long-running conspiracy to distribute large quantities of cocaine in the Bronx while he was an active-duty police officer, as well as for using firearms to protect members of that conspiracy. ALSTON was sentenced by U.S. District Judge Colleen McMahon, who presided over a two-week jury trial last year at which ALSTON was convicted on all counts.
Acting U.S. Attorney Joon H. Kim stated: “Merlin Alston betrayed his city and his shield. Instead of serving and protecting the citizens of New York City, as he swore an oath to do, Alston served and protected drug dealers, participating in a long-running conspiracy to distribute cocaine in the Bronx. For his criminal betrayal that included sharing confidential police information with drug dealers, Alston was convicted by a jury and now sentenced to 20 years in federal prison.”
According to court papers and evidence admitted at trial:
From 2010 to 2014, ALSTON, who at the time was an active NYPD police officer, conspired with others to distribute large quantities of narcotics. ALSTON personally delivered approximately 40 kilograms of cocaine during that time, and in total members of his conspiracy delivered approximately 200 kilograms of cocaine. In addition, ALSTON provided armed security to a cocaine trafficker, using a shotgun and his NYPD service weapon to do so. ALSTON also provided confidential information about law enforcement operations, including arrests and surveillance, to several Bronx drug dealers.
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In addition to his prison sentence, ALSTON, 34, of the Bronx, was sentenced to five years of supervised release.
Mr. Kim praised the DEA, the FBI, the NYPD, and the New York State Police for their outstanding work in this investigation. He also thanked the Office of the Special Narcotics Prosecutor for the City of New York for its invaluable assistance.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Jared Lenow and Thomas McKay are in charge of the prosecution.
Former Honduran Congressman and Businessman Pleads Guilty in Manhattan Federal Court to Money Laundering ChargeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York announced today that Yani Benjamin Rosenthal Hidalgo pled guilty in Manhattan federal court to engaging in monetary transactions in property derived from drug-trafficking offenses between 2004 and September 2015. ROSENTHAL, who surrendered in the United States on October 23, 2015, pled guilty before U.S. District Judge John G. Koeltl. During the course of the money laundering scheme, ROSENTHAL was Minister of the Presidency to a former President of Honduras between 2006 and 2007, a Honduran congressman between 2010 and 2014, and a candidate for President of Honduras in the 2009 and 2013 elections.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As he admitted today in Manhattan federal court, Yani Rosenthal, a formerly prominent Honduran politician and businessman, also moonlighted as a money launderer for a ruthlessly violent drug-trafficking organization known as the Cachiros. Now this former government official and two-time candidate for President of Honduras awaits sentencing before a U.S. federal judge for his contribution to the global drug crisis.”
According to the Indictment, other court filings, and statements made during court proceedings[1]:
ROSENTHAL and his co-defendants—including Jaime Rolando Rosenthal Oliva, ROSENTHAL’s father and a former Vice President and congressman in Honduras—used entities associated with a holding company controlled by the Rosenthal family, Inversiones Continental (Panama), S.A. de C.V. (“Inversiones Continental”), to launder drug proceeds for the Cachiros, a prolific and violent Honduran criminal syndicate that distributed huge quantities of cocaine before being dismantled by the Drug Enforcement Administration (“DEA”).
ROSENTHAL helped the Cachiros launder drug money and gain access to the international financial system through a variety of purported business ventures. ROSENTHAL enriched himself through this conduct based on fees paid by the drug traffickers he assisted, and by accepting additional bribes from drug traffickers that were styled as purported campaign contributions. Several aspects of the Cachiros money laundering scheme that ROSENTHAL participated in also received support from Fabio Porfirio Lobo, the son of a former President of Honduras. Lobo is scheduled to be sentenced on July 31, 2017 by U.S. District Judge Lorna G. Schofield in United States v. Lobo, No. 15 Cr. 174 (LGS), based on his conviction for participating in a conspiracy with members of the Cachiros and others to import cocaine into the United States.
One component of ROSENTHAL’s money laundering conduct involved a trade-based scheme in which the Cachiros established a company, Ganaderos Agricultores Del Norte S De RL De CV (“Ganaderos”), and used drug proceeds to purchase cattle at auctions in Honduras. ROSENTHAL and others used Empacadora Continental, S.A. de C.V. (“Empacadora”), a cattle- and meat-processing firm affiliated with Inversiones Continental, to purchase the narcotics-derived cattle from Ganaderos. ROSENTHAL acted as the Vice President of Empacadora between 2008 and 2015, and these transactions were part of a process that allowed the Cachiros to conceal the criminally derived nature of the Ganaderos assets, and to obtain fresh funds from Empacadora that could be used to promote Cachiros drug-trafficking activities and purchase other assets. Empacadora, in turn, further obfuscated the tainted nature of Ganaderos cattle by processing and exporting the meat to the United States, among other places.
ROSENTHAL and others also used Banco Continental, S.A. (“Banco Continental”), a Honduran bank controlled by his family and affiliated with Inversiones Continental, to process payments related to these transactions and provide financing for other Cachiros activities. For example, Banco Continental issued purported loans to the leaders of the Cachiros, which were sometimes repaid using either drug proceeds or additional drug-derived cattle from Ganaderos. The leaders of the Cachiros used money from Banco Continental, commingled with drug money, to fund additional businesses that were also used as money laundering front companies. Banco Continental helped the leaders of the Cachiros establish the Joya Grande Zoo in Honduras, and purchase equipment for a construction company, Inmobiliaria Rivera Maradiaga SA de CV; a mining concern, Minera Mi Esperanza SA; and an African palm oil plantation, Palma Del Bajo Aguan SA.
In connection with his guilty plea, ROSENTHAL agreed to forfeit $500,000, and to pay a $2.5 million fine. ROSENTHAL also remains designated as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act, along with Rosenthal Oliva, Yankel Antonio Rosenthal Coello (ROSENTHAL’s cousin and co-defendant), Inversiones Continental, Empacadora, and Banco Continental, among other entities, as announced in October 2015 by the United States Department of the Treasury, Office of Foreign Assets Control (“OFAC”).
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ROSENTHAL, 52, pled guilty to one count of engaging in monetary transactions in property derived from specified unlawful activity. The charge carries a maximum term of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for October 13, 2017 before Judge Koeltl.
Mr. Kim praised the outstanding efforts of the DEA’s Special Operations Division Bilateral Investigations Unit, New York Strike Force, and Tegucigalpa Country Office, as well as OFAC and the U.S. Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III, Jane Kim, and Matthew J. Laroche are in charge of the prosecution.
The charges contained in the Indictment against Jaime Rolando Rosenthal Oliva and Yankel Antonio Rosenthal Coello are merely accusations, and Rosenthal Oliva and Rosenthal Coello are presumed innocent unless and until proven guilty.
[1] The descriptions set forth below of conduct by co-defendants Jaime Rolando Rosenthal Oliva and Yankel Antonio Rosenthal Coello constitute only allegations, and every fact described should be treated as an allegation with respect to Rosenthal Oliva and Rosenthal Coello.
Former Home Healthcare Nurse Sentenced for Medicaid Fraud in Case that Resulted in Minor's DeathRead the Press Release
DAYTON, Ohio – Mollie Parsons, 47, of Middletown, Ohio, was sentenced in U.S. District Court to 36 months in prison for healthcare fraud related to the death of a severely physically disabled minor.
She was previously sentenced by the state to serve 10 years in prison for her role in the death of her minor patient, and her federal sentence will be served consecutive to her state one. She is also banned from working for any governmental entity in the healthcare field for life.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Lamont Pugh, Special Agent in Charge, Health and Human Services Office of Inspector General (HHS-OIG), announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to the Statement of Facts in this case, Parsons was employed as a home healthcare nurse for a minor with severe physical impairments from at least 2009 until March 2011. Parsons was paid through Medicaid to provide daily nursing services, including but not limited to, wound care, personal hygiene maintenance and feeding assistance. The child under her care was unable to communicate, completely paralyzed and dependent upon feeding tubes.
Rather than working her eight-hour shift and providing the nursing services, Parsons was frequently absent from the home for extended periods of time. To conceal her neglect, the defendant submitted false claims to Medicaid to receive fraudulent payments for private duty nurse services.
Parsons pleaded guilty in the federal case in January 2016 to two counts of healthcare fraud.
“Parsons’ actions directly undermined the purpose for which Medicaid compensated her – providing medical care to a severely disabled child – as she deprived a child with cerebral palsy of the most basic medical care and comfort,” U.S. Attorney Glassman said. “The state prosecution served as the primary mechanism to address and punish the child victim’s death, but could not address the fraud against Medicaid. This federal prosecution therefore provides accountability for her fraudulent conduct as it relates to Medicaid.”
U.S. Attorney Glassman commended the cooperative investigation by HHS-OIG, as well as Assistant United States Attorney Brent G. Tabacchi and Deputy Criminal Chief Laura I. Clemmens, who are representing the United States in this case.
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Former Forest City Investment Adviser Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
A former Forest City investment adviser, who stole money from clients to fund the operation of an ethanol plant in Hopkinton, pled guilty yesterday in federal court in Cedar Rapids.
Darrell Smith, age 61, from Forest City, Iowa, was convicted of Wire Fraud and Aggravated Identity Theft. Smith’s guilty pleas follow his conviction in federal court and 13-month prison sentence last year for tax fraud.
Smith’s admissions at the plea hearing and evidence presented in prior court proceedings established that he was a broker and adviser for several investment firms. From 2010 to 2013, Smith caused funds to be withdrawn from his investment clients’ accounts without his clients’ knowledge or authorization. The funds were transferred to Energae, LP, a partnership Smith previously had formed with another individual to invest in different bio-energy companies. Smith then used those funds to pay expenses related to the operation of Permeate Refining, LLC, which operated a now-defunct ethanol plant in Hopkinton. In order to transfer funds from client accounts, Smith used authorizations purportedly signed by the client authorizing the withdrawal of funds from the investment account. He either forged his clients’ signatures on the authorizations or used pre-signed, blank authorization forms. In 2013, Smith consented to having his securities agent license and insurance producer license in the State of Iowa revoked.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Smith remains in custody of the United States Marshal after a detention hearing on May 3, 2017. At the detention hearing, Judge Reade found Smith was “a serious risk” to “obstruct justice or attempt to obstruct justice.” The Court noted that, while on pretrial release in 2016, Smith had violated a no-contact order, made misrepresentations to the Court, and distributed a report to prospective investors that contained several misrepresentations. The Court also found Smith was a continuing “financial danger” to the community.
Smith faces a mandatory minimum sentence of 2 years’ imprisonment and a possible maximum sentence of 22 years’ imprisonment, a fine, $200 in special assessments, and 4 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Federal Bureau of Investigation, the United States Postal Service Inspection Service, Internal Revenue Service-Criminal Investigation, and the United States Department of Agriculture, Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 17-CR-2030-LRR and 17-MJ-111-LRR.
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Former FCA Executive and Wife of Former UAW Vice President Charged in Scheme to Pay Off UAW OfficialsRead the Press Release
A federal grand jury returned a superseding indictment today charging the former Vice President for Employee Relations for Fiat Chrysler Automobiles US LLC (FCA) with criminal violations of the Labor Management Relations Act, announced Acting U.S. Attorney Daniel L. Lemisch.
Joining in the announcement was David P. Gelios, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, James Vanderberg, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General and Ian Burg, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Alphons Iacobelli, 57, of Rochester Hills, Michigan was charged with taking part in a multiyear conspiracy to pay and deliver prohibited money and things of value to officers and employees of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (UAW).
Monica Morgan, 54, of Harrison Township, Michigan was charged with conspiring with Iacobelli and others to violate the Labor Management Relations Act. Morgan is the wife of former UAW Vice President General Holiefield, who died in March of 2015.
The superseding indictment charges Iacobelli and others acting in the interest of FCA with making over $1.2 million in prohibited payments to Morgan and then-UAW Vice President General Holiefield and others. The prohibited payments and things of value included designer clothing, jewelry, furniture, and paying off the $262,219 mortgage on Holiefield and Morgan’s residence in Harrison Township, Michigan. The payments were made using the bank account and credit card accounts of the UAW-Chrysler National Training Center located in Detroit, Michigan. The UAW-Chrysler National Training Center was established to provide for the education, training, and retraining of workers.
The prohibited payments were charged to have occurred between 2009 and 2014 during which time FCA Vice President Alphons Iacobelli and UAW Vice President General Holiefield had primary responsibility for negotiating and administering the collective bargaining agreements between FCA and the UAW.
Alphons Iacobelli was also charged with tax violations related to diverting for his own personal benefit over $1 million in funds from the UAW-Chrysler National Training Center. Iacobelli was charged with diverting those funds to pay for: a Ferrari 458 Spider automobile costing more than $350,000; leasing a private jet; two limited edition Mont Blanc pens costing $37,500 each; a pool and hundreds of thousands of dollars in improvements to his residence; and hundreds of thousands of dollars in personal credit card expenses, among other purchases.
Monica Morgan was also charged with using the companies Monica Morgan Photography, Wilson’s Diversified Products, and a third company to conceal payments made by Iacobelli and others acting in the interest of FCA to UAW Vice President General Holiefield and with failing to report the income she received through those companies on her individual tax returns.
Acting U.S. Attorney Lemisch also announced that a separate information was unsealed charging Jerome Durden, 61, of Rochester, Michigan with conspiracy to defraud the United States by impairing, impeding, and obstructing the Internal Revenue Service. Durden was a Financial Analyst in the FCA Corporate Accounting Department who served as the Controller of the UAW-Chrysler National Training Center from 2008 through 2015. The information charges Durden with preparing and filing tax returns for the UAW-Chrysler National Training Center which falsely concealed millions of dollars in payments directed to General Holiefield, Alphons Iacobelli and others.
"Today's indictment exposes a disturbing criminal collaboration that was ongoing for years between high ranking officials of FCA and the UAW", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "The funds misapplied deprived working men and women of critical workforce and professional development opportunities and calls into question the integrity of contracts negotiated during the course of this criminal conspiracy. The FBI and our federal partners will remain vigilant in our efforts to expose those who participate in corrupt fraud schemes which jeopardize our region's economic vitality and our faith in honest business practices."
"Today's indictment alleges an outrageous abuse of power and misuse of this Chrysler executive's position of trust. The diverted funds from the NTC could have and should have been used to benefit Chrysler employees," said Special Agent in Charge Manny Muriel. "IRS Criminal Investigation and our law enforcement partners are particularly committed to stopping those individuals who use double fraud schemes to defraud corporate funds, bribe others for their own gains and cushion their personal wallets."
“An important mission of the Office of Inspector General is to investigate allegations relating to Labor Racketeering and prohibited payments between union and company officials. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
“OLMS places a high priority on combatting financial malfeasance and safeguarding financial integrity in labor unions,” said Ian Burg, Detroit-Milwaukee District Director of the Office of Labor-Management Standards. “This indictment leaves no question as to the agency’s commitment to seek justice when anyone puts personal financial gain ahead of the best interests of union members.”
Acting U.S. Attorney Lemisch commended the outstanding work of the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations, the US Department of Labor – Office of Inspector General and the U.S. Department of Labor – Office of Labor-Management Standards in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
An indictment is only a charge and is not evidence of guilt. Every defendant is entitled to a fair trial in which it will be the government's burden to prove guilty beyond a reasonable doubt.
Former Employee of U.S. Army Corps of Engineers in Afghanistan Pleads Guilty to Soliciting Approximately $320,000 in Bribes from ContractorsRead the Press Release
WASHINGTON – A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan pleaded guilty today to soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois; Special Agent in Charge Sean Cox of the FBI’s Springfield Field Office; Special Inspector General John F. Sopko for Afghanistan Reconstruction; Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU); and the Defense Criminal Investigative Service’s (DCIS) made the announcement.
Mark E. Miller, 48, of Springfield, Ill., was charged in an Information filed on July 18, in the Central District of Illinois with one count of seeking and receiving bribes. He pleaded guilty before U.S. Magistrate Judge Tom Schanzle-Haskins in Springfield, Illinois. Miller is scheduled to be sentenced on November 30, by U.S. District Judge Richard H. Mills.
During the hearing, Miller admitted that he worked for the USACE from 2005 until 2015, including in Afghanistan from 2009 to 2012. During that time, Miller maintained a residence in Springfield. From February 2009 to October 2011, Miller was assigned to a military base, Camp Clark, in eastern Afghanistan. While in Afghanistan, Miller was the site manager and a contracting officer representative for a number of construction projects.
Miller further admitted that on Dec. 10, 2009, the USACE awarded a contract worth approximately $2.9 million to an Afghan construction company for the construction of a road from eastern Afghanistan to the Pakistani border. This contract later increased in value to approximately $8,142,300. Miller admitted that he oversaw the work of the Afghan company on this road project, including verifying that the company performed the work called for by the contract and authorizing progress payments to the company by the USACE.
Miller admitted that, in the course of overseeing the contract with the Afghan company, he solicited approximately $280,000 in bribes from the owners of the company, in return for assisting the company in connection with the road project, including making sure the contract was not terminated. Miller further admitted that, after the contract was no longer active, he solicited an additional $40,000 in bribes in return for the possibility of future contract work and other benefits.
This matter was investigated by the FBI, DCIS, SIGAR and Army CID-MPFU. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Gregory K. Harris of the Central District of Illinois are prosecuting the case.
Former Contractor of Newark Watershed Conservation and Development Corp. Sentenced to 18 Months in Prison for Role in Fraud ConspiracyRead the Press Release
NEWARK, N.J. –The sole proprietor of two companies that purportedly provided printing and digital marketing services to the Newark Watershed Conservation and Development Corporation (NWCDC) was sentenced today to 18 months in prison for defrauding the agency, Acting U.S. Attorney William E. Fitzpatrick announced.
Kevin Gleaton, 53, of West Orange, New Jersey, previously pleaded guilty before U.S. District Judge Jose Linares to an information charging him with one count of conspiring to commit wire fraud with Donald Bernard Sr., Linda Watkins Brashear, and others, to defraud the NWCDC of money and property and one count of misuse of Social Security numbers in connection with personal bankruptcy proceedings. Judge Linares imposed both sentences today in Newark federal court.
According to documents filed in these cases and statements made in court:
From May 2011 to September 2012, Gleaton conspired with Bernard, who was then employed as manager of Special Projects for the NWCDC, Brashear who was then the NWCDC executive director, and others, to defraud the NWCDC of more than $110,000 for work that was never performed by Gleaton or his companies. Gleaton was the owner of the Synergy Group, a company that received more than $58,000 in 2011 from the NWCDC, purportedly for printing services, as well as Mindshare Media, which received more than $52,000 from the NWCDC in 2012, purportedly for digital marketing services.
Gleaton deposited the payments issued to his companies by the NWCDC on the basis of fraudulent invoices, and then provided a substantial portion of the money received – more than $97,000 – to Bernard, who, in turn, shared a portion with Brashear, among others. Gleaton provided the money to Bernard either directly, or indirectly through the “consultant intermediary,” an individual who operated a firm that provided consulting services to the NWCDC. The conspiracy was facilitated by interstate wire transmissions, including emails sent by Bernard to Brashear and the consultant intermediary. Brashear pleaded guilty in December 2015 to scheming to defraud the NWCDC of her honest services in the affairs of the NWCDC by taking kickbacks (from various vendors including Gleaton), and of the NWCDC’s money and property, as well as to subscribing to a false federal personal income tax return. In January 2016, Bernard pleaded guilty to Counts 9 and 10 of a 20-count indictment returned in December 2014, charging him with the use of interstate facilities to promote and facilitate bribery in violation of the Travel Act, and Count 1 of an information that charged him with making and subscribing a false personal tax return.
Gleaton also admitted to using multiple Social Security numbers, other than the number lawfully issued to him by the Commission of Social Security, in connection with his bankruptcy filings in 2011 and 2012.
In addition to the prison term, Judge Linares sentenced Gleaton to three years of supervised release and ordered him to pay restitution of $111,600.
Bernard was sentenced by Judge Linares on July 13, 2017, to eight years in prison. Watkins Brashear is scheduled to be sentenced Sept. 11, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Division, under the direction of Special Agent in Charge John Grasso; U.S. Department of Housing and Urban Development Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi; IRS–Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen; and criminal investigators of the U.S. Attorney’s Office, with the investigation. Acting U.S. Attorney Fitzpatrick also thanked the N.J. Office of the State Comptroller, under the direction of State Comptroller Philip James Degnan, for its assistance.
The government is represented by Assistant U.S. Attorneys Jacques Pierre and Leslie Schwartz of the U.S. Attorney’s Office Special Prosecutions Division.
Former Chief Financial Officer Pleads Guilty to Stealing $2.8 million from CompanyRead the Press Release
St. Louis, MO – Ramon “Trey” Luina III, 42, Chesterfield, MO, pled guilty today to one charge of mail fraud in connection with his embezzlement of approximately $2.8 million from CMS Communications Inc. Luina appeared today before United States District Judge John A. Ross. Sentencing is set for November 2, 2017.
According to court documents, Luina wrote checks from CMS to himself and other entities for personal benefits such as the construction of his lake house, vehicles for private use, professional services, rent for other business ventures not related to CMS, vacations, and credit card payments. Luina used CMS funds, via wire transfers and ACH payments, to make payments to his personal credit cards and invoices related to construction on his lake house. Luina also created fictitious vendors and listed these companies as consultants to CMS. Luina then directed payments, for fictitious work, to the vendors as another route to direct funds from CMS to Luina. Additionally, Luina fraudulently increased his payroll salary which was received via direct deposit. This, in turn, falsely inflated his 401k match and bonuses. Additionally, Luina falsely took partnership disbursements for CMS Partnership although he never completed the process of partnership.
In total, Luina embezzled over $2.8 million from CMS for his personal benefit, and the benefit of others, during the relevant timeframe.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigations. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney’s Office.
Former Bank Executive Admits to Embezzling More Than $200,000 and Pleads Guilty to ChargesRead the Press Release
CHARLOTTE, N.C. – A former Wholesale Banking Relationship Support Manager of a Charlotte area bank appeared in court today and admitted to stealing more than $216,889 from his employer, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Mark Isaac Coffino, 38, of Huntersville, N.C. pleaded guilty to one count of embezzlement by a bank employee 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 and today’s court proceedings, from 2010 to 2016, Coffino was employed by a large international bank. Coffino used his position as a wholesale banking relationship support manager to create and issue approximately 20 cashier checks payable to his personal accounts. Coffino used the bank operating expenses ledger account numbers to conceal the origin of the funds. Court records indicate that Coffino lied to his direct reports to obtain approval of the cashier checks.
According to plea related documents, Coffino embezzled funds on twelve occasions between May 2015 and December 2016 in amounts ranging from $6,995 to $48,659.
Coffino was released on bond following his guilty plea. The charge carries a maximum prison term of 30 years and a $1,000,000 fine. As part of his plea agreement, has agreed to pay restitution, the amount of which will be determined by the Court at sentencing. A sentencing date for the defendant has not been set yet.
The investigation was led by the FBI. Assistant United States Attorney Jenny Sugar, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.