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13 September 2017
Hammond Man Convicted After 6-Day Jury TrialRead the Press Release
HAMMOND – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Ronnie C. Cosby, age 42, of Hammond, Indiana was convicted of 5 out of 7 federal criminal charges after a 6-day jury trial before District Court Judge Philip P. Simon.
The jury convicted Cosby on one count of sex trafficking of a minor, two counts of production of child pornography and two counts of transporting a minor for prostitution.
According to documents in the case, between December 2014 and February 2015, Cosby caused two minor females to engage in prostitution at his apartment in Hammond, Indiana, and other nearby locations. Cosby met one victim, then 14 years old, through an online dating website. Cosby took sexually explicit images of the victim at his apartment, which he then transmitted to prostitution customers and posted online. Cosby transported a second minor victim, then 15 years old, across state lines to a hotel in Lansing, Illinois, where he caused her to engage in prostitution. Cosby took sexually explicit images of the second victim and posted the images on a website advertising prostitution.
This case was investigated by Homeland Security Investigations with the assistance of the Hammond Police Department, the Federal Bureau of Investigations, and members of the Northwest Indiana Human Trafficking Working Group. This case was prosecuted by Assistant United States Attorneys Abizer Zanzi and Jill Koster.
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Gretna Man Sentenced to 20 Years Imprisonment for Distribution of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans, Jr. announced that GIORGIO COSENZA, age 30, of Gretna, was sentenced today after previously pleading guilty to a one-count Bill of Information charging him with distribution of images and videos depicting the sexual exploitation of children.
U.S. District Judge Kurt D. Engelhardt sentenced COSENZA to 240 months imprisonment followed by 5 years of supervised release, and a $100 special assessment. Additionally, COSENZA was ordered to register as a sex offender under the Sex Offender Registration and Notification Act. A restitution hearing is scheduled for November 8, 2017.
According to court documents, law enforcement officials executed a search warrant at COSENZA’s residence on April 14, 2016. Agents obtained the search warrant after observing a posting he authored on a New Orleans-based online classified advertisement website and engaging him in email correspondence. During the email correspondence, COSENZA told a Special Agent of the FBI, acting in an undercover capacity, that he collected images and videos of children being sexually exploited.
During the execution of the search warrant, Special Agents with the FBI seized numerous electronic items including one laptop computer and one smartphone that contained images and videos of child pornography. A forensic examination of the device revealed that COSENZA used the devices to search for, download, and save images and videos of children as young as approximately three-year-old engaging being sexually victimized. The forensic examination located approximately 740 images and 30 videos of prepubescent children engaging in sexually explicit conduct. The contents of his devices also revealed that COSENZA had taken, saved, and subsequently distributed, sexually images of an approximately fourteen-year-old female with whom he stated he had engaged in sexual contact years earlier. Further, COSENZA engaged in text-based correspondence in 2014 and 2015 in which he distributed numerous sexually explicit images of children and, further, expressed an interest in engaging in sexual activity with minors between the ages of six and fourteen years old.
Based on the information contained within COSENZA’S smartphone, agents obtained a search warrant for the contents of his email account. The results of the search warrant revealed the COSENZA had received and distributed additional images depicting the sexual victimization of children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Greene County Child Pornographer Faces Life in PrisonRead the Press Release
PITTSBURGH - A former resident of Greene County, Pennsylvania, has pleaded guilty in federal court to charges of production, distribution, and possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
Eric James Stull, age 49, of Clarksville, Pennsylvania, pleaded guilty yesterday before United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, from May 8, 2006 to December 26, 2015, Stull produced 41 video and image files of the sexual exploitation of a minor. Also, on July 21, 2015, Stull knowingly distributed a video containing material depicting the sexual exploitation of a minor to an undercover Pennsylvania State Police Corporal. Further, on April 29, 2016, Stull possessed images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
United States District Judge Donetta W. Ambrose scheduled sentencing for January 8, 2018 at 11 a.m. The law provides for a maximum sentence of life imprisonment for the production of child pornography counts, a maximum sentence of 20 years imprisonment for distribution of child pornography, a maximum sentence of 10 years imprisonment for possession of child pornography, a maximum term of supervised release of life, and a fine of $10,250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Greene County District Attorney’s Office conducted the investigation that led to the prosecution of Stull.
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.justice.gov/psc.
Government Contractor and CEO Settle Civil Fraud AllegationsRead the Press Release
ALEXANDRIA, Va. – Calnet, Inc., a Reston based government contractor and its Chief Executive Officer and President, Kaleem Shah, also of Reston, agreed to pay $300,000 to settle allegations that Calnet and Shah submitted false information in Calnet’s bid proposal to the Federal Aviation Administration (“FAA”) to win an FAA contract for IT help desk services.
The settlement resolves civil claims alleged in a qui tam complaint filed against Calnet and Shah that allege that Calnet misrepresented its past private sector experience in providing help desk services in its proposal to the FAA in 2009 in an effort to win a contract to provide the FAA’s Aviation Safety office with technology support services, including help desk and desk side services throughout North America and at several international sites. FAA awarded the contract to Calnet.
The False Claims Act permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in federal district court in the Eastern District of Virginia.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the Department of Transportation’s Office of Inspector General.
The matter was investigated by Assistant U.S. Attorney Christine Roushdy and Department of Transportation Office of Inspector General. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Four Indicted for Roles in Selling Illegal Depressant Etizolam over the InternetRead the Press Release
PITTSBURGH – One resident of Alaska and three residents of Florida have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit offenses against the United States, Acting United States Attorney Soo C. Song announced today. Two of the defendants were also charged with conspiracy to commit money laundering.
The two-count indictment, returned on August 22 and unsealed today, named William Kulakevich, a/k/a Vilyam Kulakevich, 31, of Delta Junction, Alaska; and Julia Fees, 25, Jacob Bassett, 20, and Ryan Bassett, 34, all of Odessa, Florida.
According to the indictment presented to the court, Kulakevich owned the website Etizy.com and sold the drug Etizolam to customers in the United States, including in the Western District of Pennsylvania. The Food and Drug Administration (FDA) has not approved Etizolam for use as a drug, and thus it cannot be sold or prescribed in the United States. Fees was responsible for managing Etizy.com, and the indictment alleges that Kulakevich and Fees conspired to launder the proceeds of Etizolam sales. Jacob and Ryan Bassett both played a role in the operation of Etizy.com and the illegal sale of Etizolam to customers throughout the United States.
According to the indictment, Etizolam is a drug known as a thienodiazepine, a class of drugs chemically related to benzodiazepines, which produce central nervous system depression. Physicians may prescribe FDA-approved benzodiazepines to treat insomnia and anxiety, but benzodiazepines and thienodiazepines also carry risks of dependency, toxicity, and even fatal overdose, particularly when combined with other central nervous system depressants.
While prescription drugs containing Etizolam have been approved in some countries outside of the United States, such as India, Ireland, and Japan, the FDA has not approved any drugs containing Etizolam in the United States. Accordingly, Etizolam cannot be legally imported, distributed, or prescribed in the United States for use as a drug.
For Kulakevich and Fees, the law provides for a maximum total sentence of twenty years in prison, as well as a fine of not more than $500,000.00, or twice the value of the laundered funds, whichever is greater. For Jacob and Ryan Bassett, the law provides for a maximum total sentence of five years in prison, a fine of not more than $250,00.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The U.S. Food and Drug Administration, Office of Criminal Investigations, assisted by the United States Postal Inspection Service, Homeland Security Investigations, and the Pennsylvania State Police, conducted the investigation leading to the indictment in this case. Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Wedding Photographer Sentenced to 10 Years for Pornography Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former wedding photographer in Raymore, Mo., was sentenced in federal court today for a fraud scheme to dupe dozens of women into having sex – which he recorded – under the guise they were rehearsing for a pornography movie.
Mario Ambrose Antoine, 34, of Raymore, was sentenced by U.S. District Judge Beth Phillips to 10 years in federal prison without parole.
On May 12, 2017, Antoine pleaded guilty to one count of wire fraud. Antoine admitted that he defrauded numerous victims in a scheme that lasted from Aug. 28, 2011, until Oct. 11, 2016. Antoine, posing in various roles as a company owner, recruiter, talent manager, photographer and videographer for multiple fictitious companies and private modeling websites (such as “Playboy Worldwide,” and “Playboy Asia”), induced women to engage in sexual and pornographic activity with him. Antoine promised the women, who signed contracts and modeling release forms, they would be paid thousands of dollars by these fictitious entities for their auditioning and modeling activity.
More than two dozen women victimized by this scheme were identified and located by investigators. Victims of the wire fraud scheme were promised payments cumulatively totaling at least $550,000 and as much as $1.5 million.
According to court documents, weeks and months would pass and none of these women were ever paid. When the young women asked when the money would arrive, they were given excuses. Eventually, in many cases, Antoine engaged in a blackmail and extortion scheme. He created fake Facebook profiles through which he contacted the friends, boyfriends or employers of these women and informed them that the young woman was a porn star. These messages would often be accompanied by pictures of the young women engaged in sexual activity.
This case was prosecuted by Assistant U.S. Attorneys Patrick D. Daly and David A. Barnes. It was investigated by the FBI, the Raymore, Mo., Police Department and the Office of the Missouri Attorney General.
Former Soldier Sentenced in Connection with Theft and Conversion of $289,276 Worth of Government PropertyRead the Press Release
RALEIGH – United States Attorney John Stuart Bruce announced that today in federal court, Kenneth preston blevins, 29, of Lexington, South Carolina, was sentenced to 51 months imprisonment followed by 3 years of supervised release for theft and conversion of government property by Senior United States District Judge W. Earl Britt. BLEVINS was also ordered to pay $289,276 in restitution. BLEVINS previously pled guilty to that charge on May 1, 2017.
According to information in the public record, defendant KENNETH PRESTON BLEVINS was a Specialist (E-4) in the United States Department of the Army assigned to the Forward Support Company of the 1st Battalion, 3rd Special Forces Group. BLEVINS was a cook with a military occupational specialty of “92G,” that is, a food service specialist responsible for the preparation and service of food in field or garrison food service operations. From on or about September 1, 2012 through April 30, 2013, BLEVINS was deployed with his unit to Afghanistan. BLEVINS was assigned to the dining facility at Camp Dyer; the Special Forces camp at Jalalabad Air Base, a United States military base located approximately 80 miles east of Kabul, Afghanistan. At Camp Dyer, BLEVINS was responsible for overall operations of the dining facility. From April 22, 2014 through November 4, 2014, BLEVINS was re-deployed to Camp Dyer. Upon arriving at Camp Dyer in 2012, BLEVINS conspired with another local Afghan to steal and sell U.S. military Class 1 supplies, which include food and beverages such as protein powder and energy drinks, at a local bazaar off base. BLEVINS continued the scheme during his second deployment. To further the success of the scheme, BLEVINS threatened to fire local Afghan nationals if they did not participate in the theft scheme.
It is estimated that BLEVINS and his co-conspirators stole $289,276 worth of government Class 1 supplies. BLEVINS made approximately $50,000 in profits from the theft scheme. He wired $34,500 home via Western Union with the help of a local Afghan. He smuggled the remaining proceeds back to the United States by concealing the money in a TV.
“This prosecution demonstrates the commitment of our office, and the U.S. Department of Justice, to bring to justice those who steal from the American taxpayer and jeopardizes the mission of the brave men and women serving this nation overseas,” commented U.S. Attorney John Stuart Bruce.
John Spoko, Inspector General for Afghanistan Reconstruction (SIGAR) stated, "This case is an important reminder that crimes, no matter how big or small, committed by U.S. soldiers serving in Afghanistan betray the men and women serving honorably beside them."
Defense Criminal Investigative Service (DCIS) Special Agent in Charge John F. Khin, Southeast Field Office, commented, "This former U.S. Army Supply Specialist, while overseeing food supplies to our troops deployed to Afghanistan, betrayed his position of trust purely out of greed and for personal profit. This soldier conspired to steal hundreds of thousands of dollars in subsistence items intended for his fellow soldiers serving in a combat environment. Corruption and theft on this large scale undermines the integrity of the Department of Defense, wastes precious American taxpayer dollars, and detracts from the combat readiness and well-being of our Warfighters."
"The United States Army Criminal Investigation Command, Major Procurement Fraud Unit, along with our investigative partners and the U.S. Attorney's Office, will bring to justice those who attempt to divert funds or property from the U.S. Army and undermine the integrity of the Department of Defense," said Special Agent in Charge James T. Wallis, of the U.S. Army Criminal Investigation Command's Southeast Fraud Field Office. "Corruption and theft in the U.S. Army supply lines jeopardizes the safety and readiness of our warfighters."
The case was investigated by the Defense Criminal Investigation Service (DCIS), Army Criminal Investigation Command (CID), the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR), and the Federal Bureau of Investigation (FBI). The case was prosecuted by Assistant United States Attorney Banumathi Rangarajan.
Former Prison Transport Officer Indicted for Sexual Assault and Possessing a Firearm in Furtherance of His Sexual AssaultRead the Press Release
A federal grand jury in Little Rock, Arkansas, returned a two-count indictment against Eric Scott Kindley, 49, a former prison transport officer, for crimes related to his sexual assault of a woman in his custody, and using his firearm in furtherance of the assault.
Count One of the indictment charges Kindley with committing civil rights offenses that resulted in bodily injury and includes the use of a dangerous weapon, kidnapping, and aggravated sexual abuse. Count Two charges Kindley with knowingly possessing a firearm in furtherance of these crimes of violence.
Kindley was indicted on June 29, 2017, in Phoenix, Arizona, for committing similar offenses related to sexual assaults he committed on a different woman in his custody, and as in this indictment, possessing his firearm in furtherance of those assaults.
These indictments stem from Kindley’s arrest in Stockton, California, on June 1, 2017, in connection with a criminal complaint filed in the District of Arizona. According to arrest paperwork, Kindley operated Group 6, LLC doing business as Special Operations Group, a company that local jails throughout the country hire to transport individuals who have been arrested on out-of-state warrants. The probable cause affidavit associated with the criminal complaint alleged that from January through May of this year, Kindley engaged in sexual misconduct in his Dodge Caravan with three different female prisoners during three different transports. The transports were from California to Arizona, Alabama to Arizona, and Mississippi to New Mexico. In each instance, the victim was handcuffed and restrained, and taken to secluded locations where Kindley sexually assaulted her. All the while, Kindley threatened each victim with his firearm and warned her that he will get away with his conduct because no one will believe her.
Following Kindley’s arrest in the Eastern District of California, the court ordered that Kindley be detained and transported to the District of Arizona, where he remains in custody.
This investigation remains ongoing. Anyone with additional information is encouraged to call the Phoenix Division of the FBI at (623) 466-1999, or can email the Criminal Section of the Civil Rights Division at the U.S. Department of Justice at [email protected].
Kindley faces a maximum of life in prison if convicted of the crimes charged, and a mandatory minimum of five years in prison for possession of the firearm in this indictment. If he is convicted of possession of a firearm in both indictments, he faces a mandatory minimum of twenty-five years in prison.
An indictment is merely a formal accusation of criminal conduct, and Kindley is presumed innocent unless proven guilty.
This case is being investigated by the Phoenix Division of the FBI and is being prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice.
Floridian Charged with Cocaine PossessionRead the Press Release
PITTSBURGH - A resident of Lauderhill, Florida, has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal drug laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Racoco Williams, age 35, of Lauderhill, Florida.
According to the indictment, on August 29, 2017, Williams possessed with intent to deliver 5 kilograms or more of cocaine. The earlier filed criminal complaint alleged that Williams was staying at a room at the Extended Stay Hotel in Monroeville, Pennsylvania. A federal search warrant of his room revealed 17 kilograms of cocaine and more than $192,000 in cash.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000 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.
Williams is currently detained and has been ordered to be held without bond pending trial.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Department of Homeland Security, United States Postal Inspection Service and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Felon from Silver City Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Joseph A. Jacobs, 35, of Silver City, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal firearms laws under a plea agreement with the U.S. Attorney’s Office.
Jacobs was arrested in May 2017, on an indictment charging him with being a felon in possession of a firearm and ammunition on Feb. 1, 2016, in Luna County, N.M. According to the indictment, Jacobs was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of a controlled substance with intent to distribute.
During today’s proceedings, Jacobs pled guilty to the indictment and admitted that on Feb. 1, 2016, he possessed a handgun and multiple rounds of ammunition despite his status as a convicted felon prohibited from possessing firearms or ammunition. At sentencing, Jacobs faces a statutory maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by Homeland Security Investigations and the Deming Police Department. Assistant U.S. Attorney Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Federal Jury Finds New Jersey Man Guilty in Heroin Distribution SchemeRead the Press Release
PITTSBURGH - A former New Jersey resident has been convicted in federal court for one count of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
Aldwin Vega, age 42, formerly of Elizabeth, New Jersey, was convicted yesterday by a federal jury of conspiracy to possess with intent to distribute and distribute one kilogram or more of heroin. Jury selection began on September 5, 2017, and Senior Judge Reggie B. Walton of the United States District Court for the District of Columbia presided over the trial.
For the crime of conspiracy to possess with intent to distribute and distribute one kilogram or more of heroin, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorneys Conor Lamb and Shanicka Kennedy prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution, conviction and sentencing of Aldwin Vega.
Federal Jury Finds Dona Ana County Man Guilty on Conspiracy and Transporting Illegal Aliens ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., found Jose Luis Zamora, 25, a legal permanent resident residing in Rincon, N.M., guilty on an indictment charging him with conspiracy and transporting illegal aliens. The guilty verdict was announced by Acting U.S. Attorney James D. Tierney, Acting Special Agent in Charge Jack P. Staton of Homeland Security Investigations (HSI) in El Paso, and El Paso Sector Chief Border Agent Jeffrey D. Self of the U.S. Border Patrol.
Zamora was arrested on Feb. 14, 2017, on a criminal complaint charging him with conspiracy to transport illegal aliens. He subsequently was indicted on April 19, 2017, and charged with conspiracy and three counts of transporting illegal aliens. Zamora’s trial began on Sept. 11, 2017, and concluded late yesterday afternoon when the jury returned a guilty verdict on all four counts of the indictment.
The evidence at trial established that on Feb. 11, 2017, U.S. Border Patrol agents encountered seven individuals who were attempting to circumvent the U.S. Border Patrol Checkpoint on Highway 185 in Dona Ana County, N.M. The agents arrested the seven individuals after determining that they were undocumented aliens. Three of the undocumented aliens testified during the trial, stating that Zamora picked them up near the border in El Paso, Tex., after they were smuggled into the United States from Juarez, Mexico, on Feb. 8, 2017. They admitted paying $1,500, $4,000 and $4,500, respectively, to be smuggled into the United States.
The undocumented aliens testified that they crossed the border into the United States, Zamora picked them up in a van, and drove them to a trailer and later to a hotel in Las Cruces where they stayed for two days. On Feb. 11, 2017, Zamora drove the undocumented aliens north on Interstate 25 before pulling off the road before the U.S. Border Patrol checkpoint. Zamora instructed them to walk around the U.S. Border Patrol checkpoint so they would not be detected, telling them that he would pick them up in two hours. Border Patrol agents arrested the undocumented aliens as they were walking around the checkpoint to meet Zamora.
The jury deliberated approximately one hour before returning its guilty verdict.
Zamora has been in federal custody since his arrest and remains in federal custody pending a sentencing hearing, which has yet to be scheduled. At sentencing, Zamora faces a statutory maximum penalty of ten years in federal prison.
This case was investigated by the Las Cruces office of Homeland Security Investigations and U.S. Border Patrol, and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez and Special Assistant U.S. Attorney Kathleen E. Robeson of the U.S. Attorney’s Las Cruces Branch Office.
Fayetteville Woman Sentenced to over 6 Years in Federal PrisonRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Hjestie Olitta Sommer, age 40, of Fayetteville, was sentenced today to 77 months in federal prison followed by three years of supervised release and was ordered to pay a $1,900.00 fine on one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in August of 2016, the Fourth Judicial District Drug Taskforce (4th JDTF) learned that methamphetamine was being distributed in the Springdale, Arkansas area by Sommer. In August of 2016, the 4th JDTF arranged and conducted a controlled purchases of methamphetamine from Sommer. The substance purchased was sent to the Arkansas State Crime Lab for testing. The lab determined that it was a mixture of a substance that contained methamphetamine weighing approximately 7.1 grams.
Sommer was indicted by a federal grand jury in March, 2017 and plead guilty in May, 2017.
This case was investigated by the 4th JDTF. Assistant United States Attorney Sydney Butler prosecuted the case for the United States.
Executive Sentenced for $10.5 Million Bank FraudRead the Press Release
RICHMOND, Va. – A Charlottesville man was sentenced today to 51 months in prison for a bank fraud scheme that resulted in a loss of $10.5 million to Fauquier Bank.
Michael P. Klekamp, 68, pleaded guilty on December 9. According to court documents, Klekamp was the President of Capitol Components and Millwork, Inc. (CCM), of Culpeper. CCM was involved in the manufacture, fabrication and distribution of architectural building material millwork items for mid to high-end residential and commercial buildings. To run its business, CCM drew money from a standard secured revolving line of credit line at Fauquier Bank. The credit line agreement required CCM to submit periodic reports to the Bank about the value of the underlying collateral, such as accounts receivable and inventory, and the creditworthiness of CCM.
According to court documents, Klekamp fraudulently maintained the credit line by misrepresenting the true financial condition of CCM and made a variety of false statements to the bank about the true amount and quality of the collateral of CCM. On Oct. 25, 2015, Klekamp submitted documents to the bank fraudulently stating there was approximately $17 million of total accounts receivable and inventory securing the bank’s $11.5 million credit line, while in actuality there was no more than $3.4 million of total accounts receivable and inventory. Contrary to the fake financial statements submitted to the bank, CCM was not able to repay the interest or principal amount of the loan, resulting in a loss of approximately $10.5 million as a result of the scheme.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. The case was investigated by Richmond Division, Charlottesville Resident Agency of the FBI. Assistant U.S. Attorney David T. Maguire prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-141.
Engineering Firm Owner Charged with Bribery of Washington Township OfficialsRead the Press Release
An owner of an engineering firm, Fazullah Khan, 56, of Troy, was indicted today by a grand jury with four counts of bribery, Acting United States Attorney Daniel L. Lemisch announced.
Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
The indictment alleges that in 2014, Khan bribed public officials of Washington Township with $11,000 in cash, a free fishing trip and a secret financial interest in a property development deal. Unbeknownst to Khan, the township officials he was attempting to bribe were working with the FBI.
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and R. Michael Bullotta.
Each of the four bribery charges carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000.
An indictment is only a charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Employee Indicted for Embezzling $500,000 from Medical PracticeRead the Press Release
NEWPORT NEWS, Va. – A former employee of a medical practice in Williamsburg was indicted by a federal grand jury today on fraud charges for allegedly embezzling over $500,000 from her employer.
Sherea Darnell, 33, of Southfield, Michigan, has been charged with wire fraud, bank fraud, use of an unauthorized access device, and filing false tax returns. According to court documents, from March 2012 through September 2016 Darnell was employed as the administrator at Cullom Eye and Laser Center in Williamsburg.
According to allegations in the indictment, Darnell was responsible for the administrative functions of the office and was provided with two business credit cards to be used for business purposes such as supplies and office equipment. The credit cards were paid automatically each month by Cullom’s business bank accounts. When Darnell resigned in September 2016 and moved to Michigan, Cullom began reviewing the practice’s bank accounts and saw that large payments had been made to office’s credit cards. Analysis of the business credit card statements and revealed numerous charges on the cards that what were obviously personal in nature, including paying for her son’s private school tuition, maid services for her home, entertainment, dining, high end clothing, jewelry, and airline travel for Darnell and members of her family to resorts around the country and abroad. Additionally, over $90,000 in cash advances were made on the cards.
Darnell faces a maximum penalty of 30 years on each count of bank fraud, 20 years on each count of wire fraud, and 3 years on each count of filing false tax returns, if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Kimberly A. Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement. Managing Assistant U.S. Attorney Howard J. Zlotnick is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-92.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Eight Members of the Jalisco New Generation Cartel Charged in Large Scale Methamphetamine Drug Trafficking OrganizationRead the Press Release
DALLAS — Eight members or associates of the Jalisco New Generation Cartel have been charged in a federal indictment, unsealed today, with felony offenses stemming from their role in a large scale methamphetamine drug trafficking organization that operated in the Dallas and Desoto areas, announced U.S. Attorney John Parker of the Northern District of Texas.
Six of the defendants had been charged in a federal complaint filed earlier this month. All eight defendants, listed below, are charged with one count of conspiracy to possess with intent to distribute a controlled substance and at least one count of possession with intent to distribute a controlled substance. The defendants will remain in custody pending further court proceedings.
Marco Antonio Gonzalez, 31,
Ricardo Mendez-Negrete, aka “Jose Negrete,” 42
Jose Trinidad Medina Tapia, aka “Alex Aviles,” 31,
Miguel Carrillo-Ayala, aka “Tomas Rodriguez,” 38
Alma Zoraida Borrayo-Villasenor, 32,
Javier Guizar-Hernandez, aka “Jorge Hernandez,” 28,
Hector Garcia-Gomez, 36
Ivan Gonzalez, 22
Borrayo-Villasenor, Carrillo-Ayala, Tapia, Guizar-Hernandez are all citizens of Mexico and were in the United States illegally when the offenses charged occurred.
“Drug trafficking networks like this one are responsible for fueling north Texas’ largest drug threats, including methamphetamine and heroin,” said U.S. Attorney Parker. “Working with our local and federal law enforcement partners to dismantle them and bring them to justice, as we did here, is a top priority for this office.”
According to the indictment, in August 2016 through August 31, 2017, the defendants were involved in the trafficking of thousands of kilograms of methamphetamine. The defendants utilized multiple locations in residential neighborhoods in Dallas and Desoto to serve as laboratories for the recrystallization of methamphetamine. An automotive business was also utilized to store large quantities of narcotics and proceeds of drug sales were used to purchase vehicles in an effort to disguise the source of those funds.
Law enforcement executed search warrants on August 31, 2017 and seized approximately 750 kilograms of methamphetamine in both finished and liquid form, which was valued at $5 - $7 million, approximately 2 kilograms of cocaine and 6 kilograms of heroin.
An indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, statutory penalties range up to life in federal prison.
The Drug Enforcement Administration investigated the case with assistance from the Ellis County Sheriff's Office, Garland Police Department, Waxahachie Police Department, Dallas Police Department, Internal Revenue Service, and Texas Comptroller’s Office.
Assistant U.S. Attorney P.J. Meitl is prosecuting.
# # #
Doctor Convicted of $50 Million Medicare Fraud Scheme Sentenced to 200 Months in Federal PrisonRead the Press Release
DALLAS – Noble U. Ezukanma, 57, of Fort Worth, Texas, was sentenced today by U.S. District Judge Jane Boyle to 200 months in federal prison and ordered to pay $34,003,151.24 in restitution for his role in an over $50 million Medicare fraud scheme, announced U.S. Attorney John Parker of the Northern District of Texas.
Ezukanma was convicted, following a five-day trial, in March 2017 of one count of conspiracy to commit health care fraud and six counts of health care fraud. He was taken into custody following the verdict.
“This is the kind of flagrant fraud that drives up health care costs to consumers everywhere,” said U.S. Attorney Parker. “In return, this office will do everything we can to drive up the costs to those who choose to engage in health care fraud as a profession.”
Co-defendants Oliva A. Padilla, 57, and Ben P. Gaines, 55, have pleaded guilty to their role in the scheme and are awaiting sentencing. The following co-defendants have also pleaded guilty and were previously sentenced:
Myrna S. Parcon, a/k/a “Merna Parcon,” 62, 120 months and $51,497,930.87 in restitution Ransome N. Etindi, 57, 30 months and $18,309,171.21 in restitution
Lita S. Dejesus, 70, 24 months and $4,193,655.78 in restitution
According to evidence presented at trial, Ezukanma, Parcon, and Dejesus owned/operated US Physician Home Visits (USPHV), a/k/a “Healthcare Liaison Professionals, Inc.” located on Viceroy Drive in Dallas. Parcon was the owner/manager and Ezukanma was a licensed medical doctor who had an ownership interest in USPHV. Both Ezukanma and Etindi provided their Medicare number to the company to use to submit Medicare claims. Dejesus served in various roles at USPHV, including office manager.
Gaines formed A Good Homehealth (A Good), a/k/a “Be Good Healthcare, Inc.,” which was located in the same office as USPHV. Parcon, who owned and operated A Good, purchased the company through a “straw” buyer; both Gaines and Parcon concealed Parcon’s ownership.
Parcon and Padilla formed Essence Home Health (Essence), a/k/a “Primary Angel, Inc.,” located on Midway Road in Addison, Texas.
While the three companies appeared to be set up as three separate entities, the companies worked as one; the same employees often worked for all three companies and were often paid by all three companies.
According to evidence presented at trial, from January 1, 2009 to approximately June 9, 2013, Ezukanma and Etindi certified 94% of the Medicare beneficiaries receiving home health services from A Good, and 65% of the Medicare beneficiaries receiving home health services from Essence. Had Medicare known of the true ownership and improper relationship between the three companies, Medicare would not have allowed these companies to enroll in the program and bill for services.
USPHV submitted billing primarily under Dr. Ezukanma’s Medicare provider number, regardless of who actually performed the service. They billed at an alarming rate, generally billing for only the most comprehensive physician exam, and always adding a prolonged service code. USPHV submitted claims to Medicare for physician visits of 90 minutes or more, when most visits took only 15 to 20 minutes. Most all of USPHV patients came from home health companies soliciting certifications and recertifications for home health. More than 97% of USPHV Medicare patients received home health care, whether they needed it or not. The false certifications caused Medicare to pay more than $40 million for fraudulent home health services.
The case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, the FBI, the and the Texas Attorney General’s Medicaid Fraud Control Unit and were brought as part of the Medicare Fraud Strike.
Assistant U.S. Attorneys Katherine Pfeifle and Douglas Brasher prosecuted.
# # #
District Man Pleads Guilty to First-Degree Felony Murder in Christmas Day Slaying of Tricia McCauleyRead the Press Release
WASHINGTON – Duane Johnson, also known as Adrian Duane Johnson, pled guilty today to a charge of first-degree felony murder in the Christmas day slaying last year of Tricia McCauley, a stranger who he also sexually assaulted, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department.
Johnson, 30, formerly of Washington, D.C., pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of 30 years in prison. The Honorable Hiram E. Puig-Lugo scheduled sentencing for Nov. 17, 2017. Following his prison term, Johnson will be placed on a period of supervised release and he will be required to register as a sex offender for the rest of his life.
According to a proffer of facts submitted at the plea hearing, on Dec. 25, 2016, at about 5:30 p.m., Ms. McCauley, 46, left her home in the 2000 block of North Capitol Street NW and got into her two-door Toyota Scion to drive to a holiday party at a friend’s home in Washington, D.C. On the drive to her friend’s home, Ms. McCauley encountered Johnson. He entered her vehicle and, shortly thereafter, sexually assaulted her. He attempted to restrain her and she attempted to fight him off by kicking and punching him. During this struggle, Ms. McCauley’s clothing was ripped and she suffered a fractured nose. Johnson, meanwhile, took the scarf that Ms. McCauley was wearing and used it as a ligature, tightening it around her neck muscles and causing her death. After Ms. McCauley died, Johnson took her body and put it in the back seat.
Ms. McCauley was reported missing and a widespread search was launched to find her. The following night, Dec. 26, 2016, at about 11:20 p.m., Ms. McCauley’s car was discovered, found parked in front of a pharmacy in the 2200 block of M Street NW. Officers with the Metropolitan Police Department (MPD) went inside the store and found Johnson. He had the key to Ms. McCauley’s car in his pocket. A check of the car led to the discovery of Ms. McCauley’s body. Johnson was arrested and has remained in custody ever since. In a search, police recovered several of Ms. McCauley’s credit cards in Johnson’s pocket.
In announcing the plea, U.S. Attorney Phillips and Chief Newsham commended the work of the officers, detectives and others from the Metropolitan Police Department who investigated the case. They also expressed appreciation for the assistance provided by the U.S. Park Police and the FBI’s Cellular Analysis Survey Team, and the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Sharon Donovan; Paralegal Specialists Sharon Newman and Lornce Applewhite; Victim/Witness Advocate Jennifer Clark, and Litigation Technology Specialist William Henderson. Finally, they commended the work of Assistant U.S. Attorney David Misler, who investigated and prosecuted the case.
Charlotte Man Sentenced to 16 Years as an Armed Career CriminalRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina, John Stuart Bruce, announced that yesterday in federal court, Senior United States District Judge Malcolm J. Howard sentenced LARICE SIMMONS, 38, of Charlotte, to 192 months of imprisonment followed by 5 years of supervised release.
On March 14, 2017, SIMMONS pled guilty to one count of being a Felon in Possession of a Firearm.
On April 9, 2016, a confidential informant (CI) reported to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) that Nelson O’Nell Harrison and LARICE SIMMONS were trying to identify a drug dealer to rob. Agents then recorded Harrison and SIMMONS planning to murder and rob a drug dealer and an associate. Harrison’s and SIMMONS’S plans included details about how they would distract and then gun down the intended victims and then cover up the murders. ATF agents intercepted and arrested Harrison and SIMMONS at a gas station in Kinston, North Carolina as they were driving to the planned robbery location. Agents recovered a 9 mm firearm from the area where SIMMONS had been sitting in the vehicle. Harrison also pled guilty to Possession of a Firearm by a Felon and was sentenced to 108 months of imprisonment on August 8, 2017.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Kinston Police Department. Assistant U.S. Attorney Erin Blondel prosecuted the case for the government.
Charleston man pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Leon Mitchell, III, 24, entered his guilty plea to possessing a firearm with an obliterated serial number.
In the early morning hours of March 8, 2016, a Charleston Police Department officer was patrolling in the area of Park Avenue and Simms Street in Charleston when he encountered Mitchell. The officer asked Mitchell if he had any weapons, and he replied that he did not. Shortly after this conversation, an unidentified woman ran screaming behind the officer. As the officer turned away to check on the sudden commotion, he heard the sound of metal hitting the ground. The officer looked back to the area where Mitchell was standing and saw what was later identified as a Sig Sauer, Model P220, .45 caliber semiautomatic handgun with the serial number scratched off. When the officer asked Mitchell what was lying on the ground, Mitchell told the officer it was his gun. In a search of Mitchell incident to arrest, the officer recovered approximately eight grams of marijuana and half a gram of heroin.
Mitchell faces up to five years in federal prison when he is sentenced on December 6, 2017.
The investigation was conducted by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Clint Carte is responsible for the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking with existing local programs targeting gun crime.
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Brian Coll, Former Correction Officer at Rikers Island, Sentenced to 30 Years in Prison for the Beating Death of Inmate Ronald SpearRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that BRIAN COLL, a former New York City Correction Officer, was sentenced today by U.S. District Judge Loretta A. Preska to 30 years in prison for causing the death of Ronald Spear, a pre-trial detainee at Rikers Island, and for obstructing justice by covering up the true cause of Spear’s death. COLL, then a correction officer on Rikers Island, was convicted following an eight-day jury trial of, among other charges, causing Spear’s death by repeatedly kicking him in the head while he was restrained and lying prone on the floor, in violation of his rights under the United States Constitution. Spear died shortly after the attack. COLL was arrested on a complaint on June 10, 2015, and has been in federal custody since that time.
In imposing today’s sentence, Judge Preska stated: “This is a serious offense that requires a serious punishment. It is also a crime where deterrence is, in the Court's view, an important consideration.”
Acting Manhattan U.S. Attorney Joon H. Kim said: “Correction Officer Brian Coll brutally beat to death Ronald Spear, an ailing and vulnerable Rikers Island inmate. As proven at trial, after Spear had been restrained by other correction officers and lay prone on the ground, Coll reared his leg back and kicked Spear in the head, over and over again. What Officer Brian Coll did on December 19, 2012 – viciously beating to death a defenseless man – was a murderous crime, whether inside or outside prison. And he has now been held accountable for it. The protections of the U.S. Constitution extend to all of us, including those within our prison walls. Today’s sentencing of Brian Coll reminds us all of that.”
According to the allegations in the Indictment and the evidence introduced at trial:
Rikers Island is a jail complex located in the Bronx, New York, maintained by the New York City Department of Correction. At the time of his death, Ronald Spear was a pretrial detainee incarcerated on Rikers Island in the North Infirmary Command, a facility housing detainees who, like Spear, have serious or chronic medical needs. In the early morning hours of December 19, 2012, Spear left the housing area in the infirmary unit in an attempt to see the on-duty doctor but was stopped by COLL, who said that the doctor was not available to see him. In an altercation that ensued, COLL punched Spear several times in the face and stomach, after which Spear was restrained by two other correction officers, Anthony Torres and Byron Taylor. While Spear was lying prone on the ground and was still restrained, COLL repeatedly kicked Spear in the head, even after Torres attempted to shield Spear’s head with his hand and shouted at COLL to stop. After COLL stopped kicking Spear, COLL lifted up Spear’s head, told him to remember who had done this to him, and then dropped Spear’s head to the ground. Spear was pronounced dead at the scene shortly after the assault.
Spear’s autopsy was conducted at the Bronx Office of the Chief Medical Examiner (the “CME”). The autopsy revealed that Spear had at least three recent contusions on his skull, and that he had suffered a “brain bleed” caused by blunt force trauma to the head, consistent with Spear being kicked in the head while he was lying prone on the ground. The CME found that Spear had suffered a cardiac arrhythmia as a result of the head trauma. The assault by COLL was therefore, as the jury found, the cause of Spear’s death.
After Spear’s death, COLL, Taylor, Torres, and others, covered up the true cause of Spear’s death by concocting a false story that turned Spear into the aggressor, falsely claiming that Spear had attacked COLL with a cane. Specifically, COLL falsely claimed that Spear had attacked him with a cane, and Torres agreed to support this false version of events and further agreed not to not relay that COLL had repeatedly kicked Spear in the head. Additionally, at Taylor’s request, COLL, Torres, and an additional correction officer agreed to claim falsely that Taylor was not present for the incident. Consistent with their agreement, the conspirators filed false Use of Force reports with the Department of Correction and lied repeatedly to Department of Correction supervisors and investigators, and to the Bronx District Attorney’s Office.
COLL and his coconspirators propagated this false version of events after being advised by a Rikers captain to be consistent in the Use of Force reports that the officers were required to submit following Spear’s death. Additionally, when no cane was recovered from the crime scene – potentially calling into doubt COLL’s claim that Spear had attacked him with a cane – another Rikers captain directed a correction officer to take a cane from a supply area and to pass it off to investigators as the cane used in the incident.
* * *
BRIAN COLL, 47, of Smithtown, New York, was sentenced to 30 years in prison and five years of supervised release.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation and the Criminal Investigators at the United States Attorney’s Office. Mr. Kim also thanked the New York City Department of Correction, Investigative Division, and the Bronx District Attorney’s Office for their assistance in the investigation.
This case is being handled by the Office’s Civil Rights and Public Corruption Units. Assistant U.S. Attorneys Brooke E. Cucinella, Jeannette A. Vargas, and Martin S. Bell are in charge of the prosecution.
Amarillo Woman Sentenced to 210 Months in Federal Prison for Role in Counterfeit Check SchemeRead the Press Release
AMARILLO, Texas — Michelle Renee Whitman, aka “Michelle Renee Weaver” and “Raven,” 46, of Amarillo, Texas, was sentenced today for printing counterfeit checks that were used at various stores and banks, announced John Parker, U.S. Attorney for the Northern District of Texas.
Whitman, was sentenced by U.S. District Judge Sidney A. Fitzwater to serve a total of 210 months in federal prison. Whitman pleaded guilty in June 2017 to two counts of uttering and possessing counterfeited securities of an organization. In addition, Judge Fitzwater ordered that Whitman pay $9,746.71 in restitution. She has been in custody since her arrest in April 2017.
According to plea documents filed, from September 24, 2014 through May 28, 2016, Whitman received account information for various entities and individuals that was obtained from vehicle burglaries or mail theft and used that information to create counterfeit checks using a check writing program. Whitman would also create false temporary identification cards for individuals cashing the counterfeit checks.
The Amarillo Police Department and United States Secret Service investigated the case. Assistant U.S. Attorney Anna Bell prosecuted.
# # #
Alleged South End Gang Member Sentenced for Cocaine DistributionRead the Press Release
Boston – An alleged member of the Villa Victoria Pirates street gang was sentenced yesterday in federal court in Boston for distributing cocaine.
Anthony Nunez, a/k/a “Dizzo,” 26, of Boston, was sentenced by U.S. District Court Judge William G. Young to time served of 16 months in prison and six years of supervised release. During the first three years of supervised release, Nunez is precluded from entering certain parts of Boston’s South End, and for the entirely of his term of supervised release, Nunez is precluded from associating with 32 gang associates. In June 2017, Nunez pleaded guilty to two counts of possession with intent to distribute and distribution of cocaine base.
Nunez is one of 19 defendants, many of whom are affiliated with street gangs operating in the Lenox Street Housing Development area of Boston’s South End, who was charged in March 2016 with federal and state drug and firearms offenses. Specifically, on two occasions, including in the Lenox Street Housing Development, Nunez sold crack cocaine to a cooperating defendant.
Law enforcement initiated the investigation in January 2015 with the principal goal of curtailing drug and gun trafficking activities that tyrannized the Lenox Street Housing Development and severely disrupted the lives of residents. The Development and surrounding areas have historically suffered from the violence that accompanies these illegal activities. According to the Boston Police Department’s Boston Regional Intelligence Center (BRIC), the Lenox area was one of the City’s top 10 hotspots for violence in 2015. In fact, there were 30 shootings and more than 75 reports of shots fired in the area from March 2012 to June 2015.
To date, 15 defendants, including Nunez, have been sentenced and the remaining four defendants have pleaded guilty and are awaiting sentencing.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement. The Boston Housing Authority Police assisted with the investigation.
Alleged Mafia Soldier Charged with Attempting to Escape from Federal Pretrial Detention FacilityRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”) announced today the filing of a Superseding Indictment charging CHRISTOPHER LONDONIO with attempting to escape from the Metropolitan Detention Center (“MDC”), in Brooklyn.
LONDONIO has been detained at the MDC since February 2017 in connection with murder and racketeering charges pending in White Plains federal court. The Superseding Indictment re-alleges previously filed charges against LONDONIO and 18 other members and associates of the Luchese Family of La Cosa Nostra, who are charged with racketeering, murder, narcotics offenses, and firearms offenses. LONDONIO will be arraigned on the new charge at the next pretrial conference, which is currently scheduled for September 20, 2017. The case is assigned to United States District Judge Cathy Seibel.
Acting U.S. Attorney Joon H. Kim said: “Already detained on racketeering and murder charges, Luchese soldier Christopher Londonio, allegedly hatched a scheme to break out of federal prison with a hacksaw blade and a rope made from tied-up bedsheets. Although sounding like a script for a made-for-tv movie, the charges allege yet another serious federal crime against Londonio. As alleged, with this latest chapter in his years-long life in the mob, Londonio adds to the string of crimes he must now face, in a criminal justice system he was desperately seeking to escape.”
FBI Assistant Director William F. Sweeney Jr. said: “Someone facing federal charges of murder, extortion, racketeering, and a litany of other crimes may feel a certain desperation to attempt breaking out of jail to avoid justice. However, the outlandish choice of dental floss, and even allegedly asking a priest to assist in the escape defies comprehension. The attempts didn't work, and now the subject in this case faces even more charges for his alleged criminal behavior.”
According to the allegations in the Superseding Indictment[1] and other documents in the public record:
In or about June 2017, LONDONIO and another detainee concocted a plan to escape from the MDC. In furtherance of the plan, LONDONIO used dental floss as a cutting tool to tamper with a window in the facility. He also planned to solicit a priest to smuggle a saw blade into the facility, and secretly stockpiled a large number of sheets and blankets, intending to use them as a rope to aid in his escape. The plan was foiled after a fellow detainee reported the escape plan to the authorities.
La Cosa Nostra or “the Mafia” is a criminal organization composed of leaders, members, and associates who work together and coordinate to engage in a multitude of criminal activities. In addition to the attempted escape charge, the Superseding Indictment alleges that from at least in or about 2000 up to and including in or about 2017, MATTHEW MADONNA, STEVEN CREA, Sr., a/k/a “Wonder Boy,” JOSEPH DINAPOLI, STEVEN CREA, Jr., DOMINIC TRUSCELLO, JOHN CASTELUCCI, a/k/a “Big John,” TINDARO CORSO, a/k/a “Tino,” JOSEPH VENICE, JAMES MAFFUCCI, a/k/a “Jimmy the Jew,” JOSEPH DATELLO, a/k/a “Big Joe,” a/k/a “Joey Glasses,” PAUL CASSANO, a/k/a “Paulie Roast Beef,” CHRISTOPHER LONDONIO, TERRENCE CALDWELL, a/k/a “T,” VINCENT BRUNO, BRIAN VAUGHAN, CARMINE GARCIA, a/k/a “Spanish Carmine,” RICHARD O’CONNOR, ROBERT CAMILLI, and JOHN INCATASCIATO, along with other members and associates of La Cosa Nostra, committed a wide array of crimes in connection with their association with the mafia, including murder, attempted murder, assault, robbery, extortion, gambling, narcotics trafficking, witness tampering, fraud, money laundering, and trafficking in contraband cigarettes.
* * *
LONDONIO, 43, is a resident of Hartsdale, New York. The attempted escape charge, a violation of Title 18, United States Code, Section 751(a), carries a maximum prison term of five years. A chart containing the ages, residency information, and charges against all of the defendants named in the Superseding Indictment, as well as the maximum penalties they face, is attached. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the Special Investigative Services of the Bureau of Prisons and the FBI’s Joint Organized Crime Task Force, which is composed of agents and detectives of the FBI, NYPD, Homeland Security Investigations, and the Waterfront Commission of New York Harbor. He added that the investigation is continuing.
Assistant U.S. Attorneys Scott Hartman, Hagan Scotten, and Jacqueline Kelly are in charge of the prosecution. The case is being handled by the Office’s Violent and Organized Crime Unit and White Plains Division.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Mathew Madonna, et al., S3 17 Cr. 89 (CS)
DEFENDANT
AGE
CITY OF RESIDENCE
CHARGES
MAX SENT.
Madonna, Matthew
81
Incarcerated
18 U.S.C. § 924(c)
18 U.S.C. § 924(j)
18 U.S.C. § 1959(a)(1)
18 U.S.C. § 1959(a)(5)
18 U.S.C. § 1962(d)
Life or the death penalty
Crea, Sr., Steven
69
Crestwood, NY
18 U.S.C. § 924(c)
18 U.S.C. § 924(j)
18 U.S.C. § 1959(a)(1)
18 U.S.C. § 1959(a)(3)
18 U.S.C. § 1959(a)(5)
18 U.S.C. § 1962(d)
Life or the death penalty
DiNapoli, Joseph
81
Bronx, NY
18 U.S.C. § 924(c)
18 U.S.C. § 1962(d)
Life
Crea, Jr., Steven
45
New Rochelle, NY
18 U.S.C. § 924(c)
18 U.S.C. § 924(j)
18 U.S.C. § 1959(a)(1)
18 U.S.C. § 1959(a)(3)
18 U.S.C. § 1959(a)(5)
18 U.S.C. § 1962(d)
Life or the death penalty
Truscello, Dominic
83
Staten Island, NY
18 U.S.C. § 924(c)
18 U.S.C. § 1962(d)
Life
Castelucci, John
57
Staten Island, NY
18 U.S.C. § 924(c)
18 U.S.C. § 1962(d)
Life
Corso, Tindaro
56
Staten Island, NY
18 U.S.C. § 924(c)
18 U.S.C. § 1962(d)
Life
Venice, Joseph
56
Yonkers, NY
18 U.S.C. § 924(c)
18 U.S.C. § 1962(d)
Life
Maffucci, James
69
Manhattan, NY
18 U.S.C. § 924(c)
18 U.S.C. § 1962(d)
21 U.S.C. § 846
Life
Datello, Joseph
66
Staten Island, NY
18 U.S.C. § 924(c)
18 U.S.C. § 1959(a)(3)
18 U.S.C. § 1962(d)
21 U.S.C. § 846
Life
Londonio, Christopher
43
Incarcerated
18 U.S.C. § 751(a)
18 U.S.C. § 924(c)
18 U.S.C. § 924(j)
18 U.S.C. § 1959(a)(1)
18 U.S.C. § 1959(a)(5)
18 U.S.C. § 1962(d)
21 U.S.C. § 846
Life or the death penalty
Cassano, Paul
38
Yonkers, NY
18 U.S.C. § 924(c)
18 U.S.C. § 1959(a)(3)
18 U.S.C. § 1962(d)
Life
Caldwell, Terrence
59
Incarcerated
18 U.S.C. § 924(c)
18 U.S.C. § 924(j)
18 U.S.C. § 1959(a)(1)
18 U.S.C. § 1959(a)(3)
18 U.S.C. § 1959(a)(5)
18 U.S.C. § 1962(d)
Life or the death penalty
Bruno, Vincent
33
Incarcerated
18 U.S.C. § 924(c)
18 U.S.C. § 1959(a)(3)
18 U.S.C. § 1962(d)
Life
Vaughan, Brian
51
Matawan, NJ
18 U.S.C. § 924(c)
18 U.S.C. § 1962(d)
21 U.S.C. § 846
Life
Garcia, Carmine
65
Hawthorne, NJ
18 U.S.C. § 924(c)
18 U.S.C. § 1962(d)
21 U.S.C. § 846
Life
O’Connor, Richard
63
Staten Island, NY
18 U.S.C. § 924(c)
18 U.S.C. § 1962(d)
21 U.S.C. § 846
Life
Camilli, Robert
60
Briarcliff Manor, NY
18 U.S.C. § 1962(d)
20 Years
Incatasciato, John
42
Elmsford, NY
18 U.S.C. § 1962(d)
20 Years
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the descriptions of the Superseding Indictment set forth below, are only allegations, and every fact described should be treated as an allegation.
Alleged Heroin Cell Leader ExtraditedRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Adam Braverman (619) 546-6717
NEWS RELEASE SUMMARY – September 13, 2017
SAN DIEGO – Jose Rafael Camacho-Ontiveros, the alleged leader of a Mexican heroin trafficking organization, was extradited to the United States by Mexico yesterday and made his first appearance in federal court this afternoon.
A federal grand jury in San Diego returned an indictment on October 14, 2011, charging Camacho-Ontiveros and 11 other alleged members of the Mexican heroin trafficking organization. Camacho-Ontiveros was charged with Engaging in a Continuing Criminal Enterprise, Conspiracy to Distribute Heroin and Conspiracy to Commit Money Laundering. That same day, the Clerk of the Court issued a sealed warrant for his arrest. Six defendants remain fugitives.
In February 2010, Drug Enforcement Administration agents began investigating a Mexican drug trafficking organization that smuggled white heroin across the Southwest Border destined for various cities along the East Coast. The organization’s preferred smuggling method was to place the heroin in the soles of its couriers’ shoes. In total, DEA agents intercepted thirty-eight telephones during this year-long investigation resulting in fourteen heroin and money seizures throughout the United States.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Acting United States Attorney Alana Robinson stated, “Greedy drug traffickers are saturating our country with heroin, and the results are devastating. We will continue to aggressively pursue those responsible for the opioid crisis in the United States.”
“This country is in the midst of the worst opioid epidemic in history,” says DEA San Diego Special Agent in Charge William R. Sherman. “This case highlights DEA’s commitment to battling against the people who created this epidemic and have done so out of simple greed.”
Camacho-Ontiveros was flown by the United States Marshals Service from Mexico City to San Diego on September 12, 2017. He was arraigned on Wednesday, September 13, 2017, before U.S. Magistrate Judge William Gallo. The defendant is scheduled to appear for a detention hearing on Friday, September 15 at 9:45 a.m. before Judge Gallo.
DEFENDANT Criminal Case No. 11-CR-4701-DMS
Jose Rafael Camacho-Ontiveros, aka Rafa
SUMMARY OF CHARGES
Count 1: Title 21, United States Code, Section 848(a) – Engaging in a Continuing Criminal Enterprise
Count 2: Title 21, United States Code, Sections 841(a)(1) and 846 – Conspiracy to Distribute Heroin
Count 3: Title 18, United States Code, Sections 1956(a)(2)(A) and (h) – Conspiracy to Commit Money
Laundering
INVESTIGATING AGENCIES
Drug Enforcement Administration
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
14 Defendants Face Additional Federal Charges in Alleged Racketeering Conspiracy at Maryland’s Eastern Correctional InstitutionRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury returned two superseding indictments charging 14 defendants with racketeering at the Eastern Correctional Institution in Westover, Maryland. The superseding indictments charged 6 correctional officers (COs), 4 inmates and 4 outside “facilitators,” for their roles in the conspiracy, which allegedly involved paying bribes to correctional officers to smuggle contraband, including narcotics, tobacco, and cell phones, into the prison. The indictments were returned on September 12, 2017, and made public today.
The superseding indictments were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services.
According to the superseding indictments, the Eastern Correctional Institution (ECI) is the largest state prison in Maryland, operating since 1987 near Westover, in Somerset County, on Maryland’s Eastern Shore. ECI is a medium-security prison for men built as two identical compounds (East and West) on 620 acres, and housing more than 3,300 inmates. The East and West Compounds are further divided into Housing Units, 1 through 4 in the West and 5 through 8 in the East.
The first superseding indictment covers the West Compound at ECI and charges 6 defendants, including 2 COs, 1 ECI inmate, and 3 outside suppliers or “facilitators.” The second indictment covers the East Compound at ECI and charges 8 defendants, including 4 COs, 2 ECI inmates and 2 facilitators.
The superseding indictments allege that from in or about 2014, until in or about October 5, 2016, the COs smuggled contraband into ECI, including narcotics, cell phones, pornographic DVDs, and tobacco. These items were distributed by inmates, and the COs managed the proceeds of the sales. The “going rate” for a CO to smuggle contraband into ECI was $500 per package, although some COs charged more and some COs charged less. According to the superseding indictments, inmates and facilitators paid COs for smuggled contraband in cash, money orders, and through PayPal. Inmates were able to use contraband cell phones to pay COs directly using PayPal from within ECI. Inmates also received payments from other inmates for contraband through PayPal, often with the assistance of facilitators.
The superseding indictments allege that the defendants conspired to smuggle and traffic in narcotics within ECI, including marijuana and synthetic cannabinoids (otherwise known as “K2”), buprenorphine, commonly referred to as “Suboxone, and other contraband, including cell phones, pornographic videos, and tobacco, in order to expand their criminal operations. Inmates acted as both wholesalers and retailers of contraband and in the process made profits that far exceeded the profits that could be made by selling similar drugs on the street. For example, defendant inmates could purchase Suboxone strips for $3 each and sell them inside ECI for $50 each, or for a profit of more than 1000 percent.
According to the superseding indictments, although COs and other ECI employees were required to pass through security screening at the entrance to ECI, defendant COs were able to hide contraband on their persons. Further, COs took breaks during their shifts and returned to their cars to retrieve contraband. Once the COs had the smuggled contraband inside the facility, they delivered it to: inmates in their cells; clerks’ offices, which were private offices within each housing unit where an inmate clerk worked; the officers’ dining room where officers could interact with inmate servers and kitchen workers; and pre-arranged “stash” locations like staff bathrooms, storage closets, laundry rooms, and other places where contraband could be hidden and then later retrieved by inmates.
According to the superseding indictments, the defendants who were members of gangs sought and received contraband and payment from inmates who were not members of gangs in order to receive protection for their contraband trafficking activities.
Each defendant faces a maximum sentence of 20 years in prison for the racketeering conspiracy, and for conspiracy to distribute and possess with intent to distribute drugs.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Acting U.S. Attorney expressed appreciation to Secretary Moyer whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist the three-year investigation.
United States Attorney Schenning commended the FBI, U.S. Postal Inspection Service, Department of Public Safety and Correctional Services, the Baltimore Police Department, and Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
West Compound Indictment
Correctional Officers:
Rozlyn Bratten, age 32, of Snow Hill, Maryland; and
Kimberly Rayfield, age 38, of Crisfield, Maryland.
Inmates:
Ternell Lucas, age 43; and
Demario King, age 38.
Facilitators:
Leondrus Higgins, age 30, of Salisbury, Maryland; and
Chavia Savage, age 24, of Salisbury and Baltimore.
East Compound Indictment
Correctional Officers:
Sherima Bell, age 38, of Pocomoke, Maryland;
Jocelyn Byrd, age 40, of Salisbury;
Jessica Vennie, age 28, of Crowley, Texas; and
Robert Waters, age 33, of Salisbury.
Inmates:
Sean Smith, age 26; and
Alvin Williams, age 36.
Facilitators:
Eugene Bowen, age 52, of Salisbury, Maryland; and
Dameshia Vennie, age 35, of West Palm Beach, Florida.
12 September 2017
Yadkin Bank Branch Manager Pleads Guilty to Bank FraudRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, John Stuart Bruce, announced that today in federal court, LIHN VAN NGUYEN, 39, of Fuquay-Varina, North Carolina, pleaded guilty to Bank Fraud. Under the terms of a plea agreement, NGUYEN faces up to 30 years in prison, $1,000,000 in fines, and 5 years of supervised release. Under additional terms discussed in court, NGUYEN also agreed to make restitution to victims, and to forfeit the proceeds of his offense.
According to the Criminal Information and evidence discussed in open court, between July of 2015 and February of 2016, NGUYEN was Manager for Retail and Business Banking at Yadkin Bank’s Preston Branch in Cary and Creedmoor Branch in Raleigh, within the Eastern District of North Carolina.
In or about 2014, L.S. was a customer of Yadkin Bank, where he maintained a checking account. or about June of 2015, NGUYEN established a line of credit at Yadkin Bank on behalf of L.S. L.S. did not desire to withdraw funds from the line of credit, but rather intended to only establish the credit to have funds available if needed.
On or about July 28, 2015 at 2:48 P.M., without knowledge or consent from L.S., NGUYEN established an “Online Banking Account” in the name of L.S. NGUYEN caused notifications regarding withdrawals from the account to be directed to an email address belonging to VAN NGUYEN, rather than L.S.
Beginning in or about July 29, 2015, and continuing through December 15, 2015, without knowledge or consent from L.S., NGUYEN caused disbursements from the Online Banking Account for the benefit of himself. Video surveillance showed NGUYEN depositing L.S.’s funds into NGUYEN’s personal accounts. The evidence further showed that NGUYEN used the funds to make mortgage payments and for other personal expenses.
Yadkin Bank was unaware of NGUYEN’s conduct at the time of the fraud, but terminated NGUYEN after it was discovered.
NGUYEN is presently scheduled to be sentenced on November 27, 2017.
The investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore, of the Economic Crimes Division, of the United States Attorney’s Office for the Eastern District of North Carolina, represents the United States.
Wilkes-Barre Man Guilty of Conspiracy to Distribute Bath SaltsRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Daniel Fitzgibbon, age 47, of Wilkes-Barre, Pennsylvania, pleaded guilty today before Senior U.S. District Court Judge James M. Munley to participating in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney Bruce D. Brandler, Fitzgibbon admitted to agreeing with others to distribute the drug to customers in the Luzerne County area during 2014 and 2015. The members of the conspiracy obtained the alpha-pvp from suppliers in China.
Fitzgibbon also admitted that he and others used force, threats, and intimidation in connection with the drug conspiracy.
Fitzgibbon was one of seven people charged by a grand jury in August 2016. That indictment was the fourth wave of arrests connected to alpha-pvp distribution in Luzerne County. In all, 18 people have been charged in the case since July 2013, including a Texas-based supplier of the bath salts. Fitzgibbon is the fifteenth defendant to plead guilty in the case.
Judge Munley ordered a pre-sentence investigation to be completed and scheduled sentencing in the case for December 14, 2017.
The investigation was conducted by Homeland Security Investigations, the United States Postal Inspection Service, the Drug Enforcement Administration, the Pennsylvania State Police, and local police from Luzerne County. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Waterbury Man Pleads Guilty to Federal Escape ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHRISTOPHER BRYAN COLEMAN, 28, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of escape from custody.
According to court documents and statements made in court, on December 22, 2014, COLEMAN was sentenced in New Haven federal court to 42 months of imprisonment, followed by two years of supervised release, for possession of a firearm by a convicted felon. On May 24, 2017, COLEMAN was transferred from a federal prison in Pennsylvania to a halfway house in Waterbury to serve the remainder of his sentence. On July 16, 2017, COLEMAN left the halfway house without prior authorization and did not return.
On August 9, 2017, the U.S. Marshals Service located COLEMAN at a private residence in Waterbury and arrested him. He has been detained since his arrest.
When he is sentenced, COLEMAN faces a maximum term of imprisonment of five years. A sentencing date is not scheduled.
COLEMAN’s criminal history also includes drug convictions and a conviction for escape in the first degree.
This matter is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Violent Drug Trafficking Organization DismantledRead the Press Release
RALEIGH –The United States Attorney for the Eastern District of North Carolina, John Stuart Bruce, announced that Monday a federal jury found SANDY DARNELL LEDBETTER, a/k/a B Stacks, 26, of Durham, guilty of Conspiracy to Distribute and Possess with Intent to Distribute Cocaine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and aiding and abetting the same. At sentencing, LEDBETTER faces a mandatory minimum sentence of five (5) years’ imprisonment, and a maximum penalty of life imprisonment and a $250,000 fine.
Today, co-defendant NIRILLA ALLEN-KEARNEY, 49, was sentenced to 24 months’ imprisonment for Conspiracy to Launder Monetary Instruments in relation to this drug trafficking organization.
Previously, the following co-defendants pleaded guilty. Their information is below:
Maurio Tajara Mitchell, 34, of Durham, pleaded guilty to Conspiracy to Distribute and Possess with the Intent to Distribute five (5) kilograms or more of cocaine, one (1) kilogram or more of heroin and a quantity of marijuana; Conspiracy to Commit Money Laundering; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Distribution and Possession with Intent to Distribute a Quantity of Marijuana. Mitchell faces a mandatory minimum sentence of fifteen (15) years’ imprisonment and faces up to life imprisonment. His sentencing is set for the November 6, 2017, term of court.
Mark Anthony Daye, 47 of Durham pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute five (5) kilograms or more of cocaine, one (1) kilogram or more of heroin and a quantity of marijuana; and to Conspiracy to Launder Monetary Instruments. Daye faces a mandatory minimum sentence of 20 years’ imprisonment, and up to life imprisonment. His sentencing is set for the December 4, 2017, term of court.
Brian Jarrell Scott, 31, of Durham, pleaded guilty to Conspiracy to Possess with the Intent to Distribute 28 Grams or More of Cocaine Base, and Possession of a firearm in furtherance of a drug trafficking crime. On April 5, 2017, Scott was sentenced to ten (10) years (120 months) of imprisonment.
Demarcus Allen Medley, 26, of Durham, pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute Cocaine; and Conspiracy to Launder Monetary Instruments. His sentencing is set for October 23, 2017.
Keijuane Mantese Mack, 22, of Durham, pleaded guilty to Conspiracy to distribute marijuana and on December 15, 2016, was sentenced to five (5) months’ imprisonment.
Rashad Jackson, 25, of Durham, pleaded guilty to Conspiracy to Possess with the Intent to Distribute Marijuana, and on December 8, 2016, was sentenced to nine (9) months’ imprisonment.
Beginning in January of 2016, the Raleigh-Durham Safe Streets Task Force of the FBI conducted a Title III Wiretap investigation into the Mario Mitchell Drug Trafficking Organization (“Mitchell DTO”). The investigation revealed that the Mitchell DTO is responsible for shipping and receiving large quantities of powder cocaine in the Triangle area, provided by cartel members in Los Angeles, California. This powder cocaine was further broken down and distributed to mid-level and street-level dealers in the Durham, North Carolina, and surrounding areas. This organization was supported and protected by the members of the Omega Line of the United Blood Nation, active on the south side of Durham. This violent street gang is responsible for a significant portion of the gang violence that Durham has seen over the past several years. The evidence at trial showed that LEDBETTER, an amateur rapper on both the “Faculty Entertainment” label run by MITCHELL, and his own label “YF,” was responsible for distribution of narcotics and possession of weapons in furtherance of his drug trafficking activities on and near the area of Enterprise Street on the south side of Durham. LEDBETTER was primarily supplied by MITCHELL, who, along with DAYE, had the connection to the Los Angeles cartel members. Over the course of the conspiracy, LEDBETTER was arrested with multiple weapons and ammunition, spent shell casings tied to shootings in the Durham area, multiple ski masks, fifteen cellular telephones, over $14,000 in United States Currency, a money counter, and drug paraphernalia including digital scales and Pyrex containers used to cook cocaine base (crack), which also field tested positive for cocaine residue.
This case was brought as a part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation investigating narcotics distribution and gang activity.
The case was investigated by the FBI’s Safe Streets Task Force, the Internal Revenue Serivce Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Durham Police Department and the Durham County Sheriff’s Office. Assistant United States Attorney Leslie Cooley prosecuted the case on behalf of the government.
Under Agreement with DOJ and EPA, StarKist to Enhance Environmental and Safety Measures at Facility in American Samoa, Protecting Local Communities and Coastal WatersRead the Press Release
The U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) have reached an agreement with StarKist Co. and its subsidiary, Starkist Samoa Co., requiring the companies to make a series of upgrades to reduce pollution, improve safety measures, and comply with important federal environmental laws at their tuna processing facility in American Samoa.
Under the agreement, StarKist will pay a $6.3 million penalty and provide emergency response equipment to the American Samoa Department of Public Safety, Fire Services Bureau, for use in responding to chemical releases.
“The settlement is a significant environmental win for the community of American Samoa,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “The Department will continue to identify violations and enforce federal laws designed to protect the environment and the public. As a result of this action, StarKist has already performed a significant amount of work to correct its violations and we will continue to work together with our partners to bring the facility back into compliance and prevent future violations.”
“Today’s agreement will help prevent hazardous releases at the StarKist facility, protect workers and the local community, and reduce pollution discharged into Pago Pago Harbor by more than 13 million pounds each year,” said Acting Regional Administrator Alexis Strauss with the EPA’s Pacific Southwest Region. “Working with our partners at American Samoa EPA, we will monitor the company’s progress toward full compliance with all federal environmental rules.”
In July 2014, the American Samoa Environmental Protection Agency informed EPA of a discharge pipeline break at the facility, which was spilling unpermitted wastewater into the inner Pago Pago Harbor. At that time, EPA began investigating the facility after monitoring reports submitted by StarKist revealed wastewater pollutant levels that consistently exceeded permitted levels. EPA’s investigations revealed that StarKist had changed the composition of the facility’s discharged wastewater such that its existing wastewater treatment system was inadequate.
After full implementation of the wastewater treatment system upgrades, the facility’s annual discharge of pollutants into Pago Pago Harbor, including total nitrogen, phosphorus, oil and grease, and total suspended solids, will be reduced by at least 85 percent – a total reduction of more than 13 million pounds of wastewater pollutants each year.
In addition to wastewater violations, EPA also found StarKist was improperly storing ammonia, butane, and chlorine gas, which the facility used on-site for refrigeration, operation of forklifts, and disinfection. The federal Clean Air Act requires companies to operate safely in order to prevent releases of hazardous chemicals that can harm workers and the surrounding community.
Starkist will also perform a Supplemental Environmental Project (SEP) requiring it to purchase and donate no less than $88,000 worth of specified emergency response equipment to the American Samoa Fire Department, the entity that would respond to a chemical release from the Facility on Tutuila Island. This SEP is an Emergency Planning and Preparedness project, which is a recognized category under EPA’s SEP Policy.
The agreement requires StarKist to improve the facility’s ammonia refrigeration system and discontinue using chlorine gas and butane, which will greatly reduce the risk of hazardous substance releases. In addition, the companies have submitted emergency planning information to local responders and will implement a new system for notifying the public in real time in the event of a release.
To prevent oil spills, the companies are upgrading four large above-ground oil storage tanks containing diesel oil, used petroleum oil, and food-grade oil—a byproduct of fish processing. The four tanks, located only feet from inner Pago Pago Harbor, were found to have inadequate secondary containment structures as required by the Clean Water Act. In its own audit, StarKist identified additional problems, including violations of hazardous waste management and notification regulations, and disclosed them to EPA.
Starkist Samoa Co. owns and operates the tuna processing facility, located at Route 1 on the northwestern side of Pago Pago Harbor in the village of Atu'u on the Island of Tutuila in American Samoa. Starkist Samoa Co. is a wholly owned subsidiary of StarKist Co. which in turn is owned by the Korean company Dongwon Industries. StarKist Co. is the world’s largest supplier of canned tuna. The American Samoa facility processes and cans tuna for human consumption and processes fish byproducts into fishmeal and fish oil.
For more information, please visit https://www.epa.gov/enforcement/starkist-clean-water-act-clean-air-act-resource-conservation-and-recovery-and-emergency.
The proposed consent decree, lodged in the U.S. District Court in Pittsburgh, Pennsylvania, is subject to a 30-day comment period and final court approval. A copy of the proposed consent decree is available on the Justice Department Web site at www.usdoj.gov/enrd/Consent_Decrees.html.
U.S. Attorney Urges Citizens to be Vigilant in Reporting Fraud, Waste, and AbuseRead the Press Release
COLUMBIA, SOUTH CAROLINA – Beth Drake, United States Attorney for the District of South Carolina, is urging South Carolina residents and businesses to be aware of and immediately report suspected fraud, waste or abuse relating to recovery, cleanup or relief operations for victims of Irma.
In anticipation of unprecedented fraud in connection with federal disaster relief following Hurricanes Katrina, Rita and Wilma, a Joint Command Center was established in Baton Rouge, La., to coordinate reports of fraud. The Command Center, now known as the National Center for Disaster Fraud, has since expanded its mission to include suspected fraud from any natural or manmade disaster. More than 20 federal agencies participate in the center, allowing it to act as a centralized clearinghouse of information. To date, the National Center for Disaster Fraud has received and screened more than 38,000 complaints and has referred more than 24,000 complaints of disaster fraud to law enforcement for investigation. From the Haiti earthquake to the floods in Rhode Island to tornadoes in Kansas - the U. S. Department of Justice and our partners in federal, state and local enforcement have protected benefits destined for our citizens who have been victimized by these disasters.
The public is reminded to be extremely cautious before providing personal identifying information or account data to anyone, especially those who may contact you. Please also be sure to undertake necessary inquiries before giving contributions to anyone soliciting contributions on behalf of disaster victims.
Members of the public who suspect fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, or if you believe you have been victim of fraud from a person or an organization soliciting relief funds on behalf of disaster victims, please contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707 or email it to [email protected]. Fraud may also be reported directly to the United States Attorney’s Office in Columbia by contacting Assistant US Attorney John Potterfield at (803) 929-3000 or [email protected].
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Three Florida Residents Arrested After Law Enforcement Discovers Steroid and Fake Prescription Drug LabRead the Press Release
Montgomery Alabama – Three people have been arrested for their involvement in a steroid and fake prescription pill lab in North-West Florida, announced A. Clark Morris, Acting U.S Attorney for the Middle District of Alabama.
Ryan Anthony Sikora (25), John Joseph Bush, II, (26), Ariel Anna Murphy (28), all of Chipley, Florida, were indicted in August by a federal grand jury for conspiracy to import, manufacture, and distribute anabolic steroids and fake prescription drugs across the United States. On Friday, September 8, 2017, the last of the three defendants made their initial appearance before a Federal Judge in Montgomery, Alabama.
According to court documents, United States Postal Inspectors determined that large amounts of steroid and fake prescription drug ingredients were being shipped from China to various locations in South Alabama and North Florida. It is alleged that Sikora, Bush, and Murphy were using these raw materials and two large scale pill presses to mass-produce pills in an illegal drug lab discovered near Chipley, Florida. In the lab, law enforcement found a large amount of steroids in the form of vials, finished pills, and raw powder. Four types of fake prescription drugs were also discovered that were falsely labeled as Viagra, Cialis, Accutane, and Clomid. Each of those four drugs are regulated by the U.S. Food and Drug Administration (FDA) and are exclusively produced by major pharmaceutical companies. They also require a prescription to be legally dispensed. Sikora, Bush, and Murphy were allegedly advertising the drugs for sale online.
If convicted, Sikora, Bush, and Murphy each face a maximum prison sentence of 15 years as well as significant fines and restitution. There is no parole in the federal system.
An indictment is merely a method of alleging that a crime has been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting U.S. Attorney A. Clark Morris would like to thank the following agencies for their assistance with this case: The United States Postal Inspection Service, The FDA Office of Criminal Investigations, Alabama Law Enforcement Agent (ALEA), the Florida Department of Law Enforcement (FDLE), the Washington County (Florida) Sheriff’s Office, and the Chipley, Florida Police Department. This case is being prosecuted by Assistant United States Attorney Bradley Bodiford.
Three Aliens Indicted on Illegal Reentry ChargesRead the Press Release
GREENVILLE – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Greenville has returned indictments charging JESUS URIEL CALLEJA-SANDOVAL, age 21, of Mexico, CARLOS FRANCISCO MONROY-ROSALES, age 37, of El Salvador, and CARLOS FREDDY NOLASCO-DEL ZID, age 26, of El Salvador, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, NOLASCO-DEL ZID, found in Robeson County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
MONROY-ROSALES, found in Wake County, is alleged to have been previously deported subsequent to a felony conviction (criminal threats). Therefore, if convicted, he would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
CALLEJA-SANDOVAL, found in Wake County, is alleged to have been previously deported subsequent to an aggravated felony conviction (conspiracy to commit larceny from the person). Therefore, if convicted, he would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement Removal Operations.
Temple Hills Resident Pleads Guilty to Illegal Transportation of A FirearmRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Greenbelt, Maryland –On September 11, 2017, Khyre Deangelo Wilson, age 24, of Temple Hills, Maryland, pleaded guilty in federal court to transport and receipt of firearms purchased outside his state of residency.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Acting Special Agent in Charge Arron J. Graves of the Bureau of Alcohol, Tobacco, Firearms and Explosives – Washington Field Division; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to Wilson’s plea agreement, on April 3, 2016, Wilson attempted to purchase three firearms from a federal firearm licensee (FFL) at a gun show in Fayetteville, North Carolina. The FFL refused to sell the firearms to Wilson when an employee noticed that Wilson indicated on an ATF Form 4473 that he was not purchasing the firearms for himself. The employee noticed that Wilson went to two other FFLs at the gun show to purchase firearms.
Two other FFLs at the Fayetteville, North Carolina gun show each sold Wilson two firearms. The firearms included a .45 caliber pistol, a 9mm pistol, a .40 caliber pistol, and a Zastava 7.62mm pistol. Wilson provided a North Carolina address on the ATF Form 4473 in connection with his purchases. The ATF investigated and determined that Wilson did not reside at the address he provided.
Wilson then transported the firearms he had purchased to the state of Maryland. Wilson was not, and never has been, a licensed importer, manufacturer, dealer, or collector of firearms. Wilson was aware that it was illegal to use a false address to purchase the firearms and to transport them to the state of Maryland.
Wilson faces a maximum sentence of five years in prison. Sentencing is scheduled for November 13, 2017 at 2:00 p.m.
Acting United States Attorney Stephen M. Schenning commended the ATF and the Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Joseph Baldwin, who is prosecuting this case.
South Carolina Family Practice Chain, Its Co-Owner, and Its Laboratory Director Agree to Pay the United States $2 Million to Settle Alleged False Claims Act Violations for Illegal Medicare Referrals and Billing for Unnecessary Medical ServicesRead the Press Release
Washington - Family Medicine Centers of South Carolina LLC (FMC), has agreed to pay the United States $1.56 million, and FMC’s principal owner and former chief executive officer, Dr. Stephen F. Serbin, and its former Laboratory Director, Victoria Serbin, have agreed to pay $443,000 to resolve a False Claims Act lawsuit alleging that they submitted and caused the submission of false claims to the Medicare and TRICARE programs. FMC is a physician-owned chain of family medicine clinics located in and around Columbia, South Carolina, whose practices include Springwood Lake Family Practice, Woodhill Family Practice, Midtown Family Medicine, Saluda Pointe Family Medicine, Lake Murray Family Medicine, and the now closed Rice Creek Family Medicine.
The settlements announced today resolve allegations that FMC, as directed by Dr. Serbin, submitted claims to the Medicare Program that violated the physician self-referral prohibition, commonly known as the Stark Law, which is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Stark Law forbids a clinic from billing Medicare for certain services ordered by physicians who have a financial relationship with the entity. In this case, the government alleged that the Stark Law was violated by FMC’s incentive compensation plan that paid FMC’s physicians a percentage of the value of laboratory and other diagnostic tests that they personally ordered through FMC, which FMC then billed to Medicare. Dr. Serbin, FMC’s co-owner and chief executive, allegedly initiated this program and reminded FMC’s physicians that they needed to order tests and other services through FMC in order to increase FMC’s profits and to ensure that their take-home pay remained in the upper level nationwide for family practice doctors.
“Financial arrangements that compensate physicians for referrals can sometimes encourage physicians to make decisions based on financial gain rather than patient needs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice is committed to preventing illegal financial relationships that undermine the integrity of our public health programs and drive up the cost of healthcare for taxpayers.”
The settlements also resolve allegations that FMC, Dr. Serbin, and Victoria Serbin submitted and caused the submission of false claims to Medicare and TRICARE for medically unnecessary laboratory services by creating custom laboratory panels comprised of diagnostic tests not appropriate for routine measurement, performing these tests without an order from the treating physician, implementing standing orders to assure these custom panels were performed with defined frequency and not in reaction to clinical need, and programming FMC’s billing software to systematically change certain billing codes for laboratory tests to ensure payment by Medicare.
“Healthcare decisions should be made by physicians based on medical science and not with regard to maximizing the doctor’s own income,” said U.S. Attorney Beth Drake for the District of South Carolina. “Our goal in bringing this case was not only to recover money for improper healthcare claims, but also to deter similar conduct and promote health care affordability.”
The allegations settled today arose from a lawsuit filed by a physician formerly employed by FMC, Dr. Catherine A. Schaefer, under the whistleblower provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Dr. Schaefer will receive $340,510.
As part of the settlement announced today, FMC and the Serbins have also agreed to enter into a Corporate Integrity Agreement with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), which ensures the Serbins will have no management role in FMC for five years and obligates FMC to undertake other substantial internal compliance reforms, including hiring an independent review organization to conduct annual claims reviews.
“Patients and taxpayers should expect that doctors’ best medical judgement is not clouded by improper financial incentives,” said Special Agent in Charge Derrick L. Jackson for HHS-OIG. “We will work tirelessly with our law enforcement partners to preserve government health funds by bringing violators to justice.”
“We applaud the Department of Justice and the U.S. Attorney for the District of South Carolina for holding this provider accountable for its actions,” said Deputy Director Guy Kiyokawa of the Defense Health Agency. “The provider’s actions impacted American service members, veterans and their families, diverting valuable resources through unnecessary tests. The Defense Health Agency continues to work closely with the Justice Department and other state and federal agencies to investigate all those who participated in these nefarious, fraudulent practices.”
This case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of South Carolina, HHS-OIG and the Defense Health Agency.
The litigation and settlement of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Schaefer v. Family Medicine Centers of South Carolina, LLC, Stephen F. Serbin, M.D. and Victoria Serbin, No. 3:14-cv-342-MBS (D.S.C.).
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Smith County Constable Sentenced for Federal Tax ViolationsRead the Press Release
TYLER, Texas – A long-time Smith County Precinct One Constable has been sentenced to federal prison for criminal tax violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Henry Phillip Jackson, 65, of Tyler, Texas pleaded guilty on May 16, 2017, to four counts of willful failure to file federal income tax returns and was sentenced to six months in federal prison today by U.S. Magistrate Judge K. Nicole Mitchell. Jackson was also ordered to pay restitution in the amount of $157,489.
According to information presented in court, Jackson, who has served as an elected constable since 1999, received income from 2010-2013 that required him to file federal income tax returns for those years. However, Jackson failed to file those returns and now owes more than $160,000 in taxes.
This case was investigated by the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Frank Coan.
San Jose Resident Sentenced for Using Identities of Homeless Individuals to File Fraudulent Tax ReturnsRead the Press Release
San Jose – Trong Nguyen, also known as John Nguyen, was sentenced to 25 months in prison for conspiring to file false claims against the government and submitting false claims to the government, announced United States Attorney Brian J. Stretch, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Postal Inspection Service Inspector in Charge Rafael Nuñez, and Internal Revenue Service (IRS), Criminal Investigations, Special Agent in Charge Michael T. Batdorf.
According to the indictment, plea agreement, and documents introduced in court, Nguyen worked with codefendant Diep Vo, also known as Nancy Vo, to submit fraudulent tax returns to the government using the identities of homeless individuals and people in San Jose’s Vietnamese community. Vo went to homeless shelters and homeless encampments, where Vo falsely represented to homeless individuals that she could get them money from a government program designed to assist people who had not worked in previous years. In doing so, Vo convinced homeless individuals to write down their names, Social Security numbers, and signatures. Thereafter, Vo and Nguyen used the information and signatures to file false tax returns which claimed fraudulent refunds from the IRS. On the fraudulent tax returns, Vo and Nguyen wrote addresses to private mailboxes they rented, causing the IRS to send the fraudulently obtained tax refund checks to mailboxes Vo and Nguyen controlled. According to the plea agreement, Nguyen and Vo claimed more than $1.5 million in fraudulent refunds from the IRS.
Nguyen previously pleaded guilty to conspiring to file false claims against the government, in violation of 18 U.S.C. § 286, and submitting false claims to the government, in violation of 18 U.S.C. § 287. Vo later pleaded guilty to conspiring to file false claims against the government, in violation of 18 U.S.C. § 286; submitting false claims to the government, in violation of 18 U.S.C. § 287; mail fraud, in violation of 18 U.S.C. § 1341; and aggravated identity theft, in violation of 18 U.S.C. § 1028A.
Assistant United States Attorney Thomas Newman and Trial Attorney Gregory Bernstein of the Justice Department Tax Division are prosecuting the case. The prosecution is the result of an investigation by the United States Postal Inspection Service and IRS, Criminal Investigations.
Sacaton Man Sentenced to 41 Months for Domestic Violence Offenses on ReservationRead the Press Release
PHOENIX – Yesterday, Webster Wayne Norris, IV, 27, of Sacaton, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 41 months in prison for two separate domestic violence offenses occurring on the Gila River Indian Community. Specifically, Norris was sentenced to 41 months’ imprisonment for assault by strangulation of a domestic partner, and a concurrent 41-month term for assault resulting in serious bodily injury. Norris previously pleaded guilty to both crimes. Upon release from prison, Norris will be on supervised release for three years.
In early 2016, Norris strangled the victim in their home. In April 2016, Norris again assaulted the victim, causing serious injury to the victim’s arm. Both Norris and the victim are members of the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christine D. Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-1131-PHX-DLR
RELEASE NUMBER: 2017-083_Norris
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Rosemount Couple Sentenced to Prison for Stealing Millions from Hmong American Federal Credit UnionRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of NKAJLO VANGH, 61, and his wife TRUE YANG VANGH, 52, for orchestrating a years-long, multi-million dollar fraud scheme. NKAJLO VANGH was sentenced to 90 months in prison and TRUE VANGH was sentenced to 72 months in prison. Both defendants entered guilty pleas and were sentenced yesterday before Senior Judge Michael J. Davis in U.S. District Court in Minneapolis, Minn.
According to court documents, NKAJLO VANGH served as the President and Chairman of the Board of Directors for the Hmong American Federal Credit Union (“Hmong American FCU”) overseeing daily operations, authorizing checks, soliciting individuals to serve on the board of directors, and maintaining minutes for board meetings. TRUE VANGH was employed as the full-time manager of the Hmong American FCU and was responsible for hiring and managing employees, obtaining and maintaining credit union funds, assisting tellers with financial transactions, and ensuring proper reconciliation and documentation of credit union transactions.
According to the defendants’ guilty pleas and documents filed in court, the defendants diverted credit union funds to themselves and businesses they operated by fraudulently issuing loans from the Hmong American FCU and then transferring the money to accounts they controlled. As part of the scheme, the defendants submitted loan applications using fictitious names and falsified personal, employment and income information. In their respective capacities, the defendants approved the loans despite knowing that the information provided in the loan applications was false. After the loans were approved, the proceeds of the fraudulent loans were disbursed into accounts belonging to or controlled by the defendants. The defendants then used the proceeds to pay pre-existing, bogus loans that had also been disbursed by the Hmong American FCU to personal and business accounts they controlled. During the course of the scheme, the defendants approved and disbursed fraudulent loans totaling $2,075,000 from the Hmong American FCU.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Michelle E. Jones prosecuted the case.
Defendant Information:
TRUE YANG VANGH, 52
Rosemount, Minn.
Convicted:
- Bank Fraud, 1 count
Sentenced:
-
72 months in prison
-
Four years of supervised release
- $1,781,106 joint restitution
NKAJLO VANGH, 61
Rosemount, Minn.
Convicted:
- Bank Fraud, 1 count
Sentenced:
-
90 months in prison
-
Four years of supervised release
-
$1,781,106 joint restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Rogers Man Sentenced to over 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Christian Rodriguez, age 27, of Rogers, was sentenced today to 130 months in federal prison followed by three years of supervised release and was ordered to pay a $2,400.00 fine on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in January, 2017, the Rogers Police Department performed a traffic stop on Christian Rodriguez for not wearing a seat belt. As soon as the vehicle stopped, Rodriguez exited the car and fled the scene. After a short pursuit, Rodriguez was taken into custody. A search of the vehicle resulted in officers locating, two zip lock bags with approximately two ounces of methamphetamine, a set of digital scales and almost $4,000 in cash. The drugs were sent to the Arkansas State Crime Lab where they were confirmed to contain methamphetamine.
Rodriguez was indicted by a federal grand jury in March, 2017 and pleaded guilty in May, 2017.
This case was investigated by the Rogers Police Department. Assistant United States Attorney David Harris prosecuted the case for the United States.
Rockford Man Pleads Guilty to Mail FraudRead the Press Release
ROCKFORD — A Rockford man pleaded guilty today before U.S. District Judge Frederick J. Kapala to mail fraud.
CHARLES R. (“CHUCK”) HANSEN, 63, a financial planner, admitted that he schemed to defraud investors out of more than $700,000, using the mail to further his scheme.
According to a written plea agreement Hansen between 1996 and 2014 operated financial planning and real estate companies, including Senior Securities of Rockford LLC and Chicago Wealth Partners LLC. As part of his financial planning business, Hansen sold fixed annuities to retirement-age investors. In 2008, Hansen began to encourage some individuals to whom Hansen had previously sold fixed annuities to move their money from the secure investments to investments in Senior Securities and Chicago Wealth Partners, which Hansen told investors were real estate companies in which the investors could make a higher rate of return on their investment. Hansen used the investments in those two companies to rehab and sell homes in the Rockford and Chicago areas. Hansen admitted that he did not explain the risky nature of that sort of investment, and he told investors that their investments would remain secure.
Hansen further admitted that he entered into promissory notes with investors promising a high rate of return and that he convinced investors to renew their promissory notes for additional terms. At the time of the renewals, Hansen did not disclose to the investors that Senior Securities and Chicago Wealth Partners were failing and that he lacked sufficient funds to repay the investors the amounts owed to them pursuant to the original promissory notes.
Hansen admitted that as a result of his scheme, he caused investors to invest approximately $842,150 in Senior Securities and Chicago Wealth Partners, and that only $109,792 of that amount was returned to investors, causing the investors to suffer losses totaling approximately $732,257.
Hansen faces a maximum sentence of 20 years’ imprisonment, a term of supervised release of up to 3 years following imprisonment, and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from that offense, whichever is greater, as well as full restitution. The sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.
The guilty plea was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; E. C. Woodson, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State.
The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Registered Sex Offender Pleads Guilty to Child Pornography ChargeRead the Press Release
PROVIDENCE – Victor C. Radbill, 33, of Woonsocket, pleaded guilty in federal court in Providence today to possession of child pornography.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Radbill, a registered sex offender on state probation for a previous conviction of possession of child pornography, admitted that he owned a digital media storage card which contained images and videos of child pornography found inside a clothes dryer at a Lincoln laundromat in October 2016.
Victor Radbill’s guilty plea is announced by Acting United States Attorney Stephen G. Dambruch; Lincoln Police Chief Brian W. Sullivan; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to information presented to the court, on October 22, 2016, an SD card from a cell phone was found inside a dryer at a Manville laundromat. An individual at the laundromat viewed the contents of the SD card, discovered images of child pornography, and saw “selfies” of a person he recognized as a customer of the laundromat. An employee of the laundromat notified Lincoln Police. A Lincoln Police Department detective identified evidence in this matter, including a surveillance photograph which depicted Radbill in the laundromat on the afternoon the SD card was discovered. The matter was then referred to the Rhode Island State Police Internet Crimes Against Children (ICAC) task force.
A court authorized search of the SD card by detectives assigned to the ICAC task force revealed more than 500 images and 3 videos of child pornography, and “selfies” of Radbill. The investigation by the ICAC task force determined that the images were possessed by Radbill at the same time he was serving a sentence of five years probation on a state conviction of possession of child pornography. The forensic examination of the contents of the SD card revealed that the “selfies” of Radbill were taken on the same model cell phone Radbill admitted to owning.
Radbill was charged by way of a federal indictment on December 20, 2016. He was arraigned and ordered detained on December 28, 2016. According to court records, Radbill was convicted in Rhode Island state court on July 21, 2015, on a charge of possession of child pornography and sentenced to five years suspended with five years probation.
Radbill is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on November 28, 2017. Radbill faces a statutory sentence of between 10 and 20 years in federal prison, up to lifetime supervision, a fine of up to $250,000, and, unless the Court finds the defendant indigent, a mandatory $5,000 special assessment.
The case is being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and Denise M. Barton.
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Providence Resident Sentenced to Prison on 3rd Firearm ConvictionRead the Press Release
PROVIDENCE – Brandon M. Crumady, 30, of Providence, was sentenced today to 42 months in federal prison for being a felon in possession of a firearm, announced Acting United States Attorney Stephen G. Dambruch and Providence Police Chief Colonel Hugh T. Clements, Jr.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Crumady to serve 3 years supervised release upon completion of his term of incarceration. Crumady pleaded guilty on June 14, 2017. The government and the defense recommended the court impose a sentence of 42 months incarceration. The U.S. Sentencing Guideline imprisonment range in this matter is 41-51 months.
This case represents the third time Crumady has been charged and convicted of illegally possessing a firearm.
According to information presented to the court, on May 9, 2016, a Providence Police officer patrolling the area around a nightclub preparing to close for the evening came upon an occupied vehicle in a nearby parking lot. The officer illuminated the interior of the vehicle, and, as he did, he saw the front seat passenger reach into his waistband, remove a firearm and toss it onto the back seat. The officer recognized Brandon Crumady as the passenger in the vehicle. The officer was aware that Crumady had previously been convicted of a firearm offense.
The officer approached the vehicle with his service weapon drawn, and kept watch of the firearm and the occupants of the vehicle until additional officers arrived. Crumady was arrested and a loaded semi-automatic firearm was removed from the back seat.
According to court records, this case represents the third time Crumady has been convicted of illegally possessing a firearm. Previously, Crumady was convicted in Rhode Island state court in March 2007 for carrying a pistol without a license and felony possession of controlled substance offenses. He was sentenced to 4 months in prison followed by 56 months probation.
In a separate matter, Crumady was convicted in federal court on May 23, 2012, for being a felon in possession of a firearm. He was sentenced on August 17, 2012, to 37 imprisonment to be followed by 3 years supervised release. Crumady was on federal supervised release when he was arrested in this matter on May 9, 2016.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The matter was investigated by the Providence Police Department, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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Pocatello Man Sentenced to Thirty Years in Federal Prison for Bank Robbery in Green RiverRead the Press Release
CHEYENNE – Donald Sample, aka Donald Alexander Sheriff, age 60, of Pocatello, Idaho, was sentenced by U.S. District Court Judge Alan B. Johnson to serve 360 months (30 years) in federal prison for bank robbery and the use of a firearm, the U.S. Attorney’s Office, Federal Bureau of Investigation, and Green River Police Department (GRPD) of Wyoming announced. He was ordered by Judge Johnson to pay $178,375 in restitution. Sheriff was convicted after a jury trial on June 30, 2017 and was sentenced on September 5, 2017 to serve 276 months (23 years) for the bank robbery and 84 months (7 years) for use of a firearm during the crime. He will serve the two sentences consecutively and remained in federal custody at the end of the hearing.
On June 1, 2013, Sheriff robbed the Wyochem Federal Credit Union in Green River, Wyoming of $175,300, which is the largest single loss in Wyoming history. This robbery was more sophisticated than a "typical" bank robbery. Sheriff had "cased" the bank prior to conducting the robbery, wore a fake beard as a disguise and latex gloves in an attempt not to leave fingerprints or DNA. He also wore an earbud connected to a police scanner enabling him to hear local police calls. Prior to the robbery, Sheriff had disabled the rear lock of the credit union, forcing the victim teller to a door where he was lying in wait.
Upon her arrival at the door, Sheriff confronted the victim teller, produced a firearm, and forced her inside the credit union. He then made her deactivate the alarm and open the vault. He emptied the vault and placed the money inside a garbage bag. Sheriff then made the victim teller lie on the floor, where he used flex ties to bind her hands behind her back before binding her feet together. Sheriff was in the credit union less than ten minutes. The Green River Police Department was first to respond and contacted the FBI.
On August 26, 2013, another bank robbery occurred at the 1st National Bank in Afton, Wyoming, where the robber wore a false beard, earbud, and a latex glove. The Afton Police Department, Lincoln County Sheriff’s Office, and the Wyoming Highway Patrol responded and took Sheriff into custody twenty miles south of Afton a short time later. Inside his vehicle, police found earbuds, latex gloves, a false beard, a police scanner, an Apple iPhone wrapped in tinfoil, the bank robbery demand note, as well as about $8,000 in cash from the bank.
In March 2014, Sheriff pleaded guilty to the state charges of robbery and being a habitual criminal. He was sentenced to twenty to thirty-five years of imprisonment in the custody of the Wyoming Department of Corrections.
Sheriff was categorized as an armed career criminal based on his conviction for ten prior bank robberies between 1982 and 1989. Sheriff was released from his 1989 prison sentence on 2008 and successfully completed supervised release in 2011.
The Green River Police Department was an indispensable partner with the FBI, working hand in hand throughout the three-year investigation to bring Sheriff to justice. The FBI utilized resources from the FBI Laboratory, the FBI Denver Division, FBI Salt Lake City Division, and the FBI Milwaukee Division. A successful prosecution would not have been possible without the support of the Afton Police Department, the Lincoln County Sheriff’s Office, and the Wyoming Department of Corrections.
The case was prosecuted by Assistant United States Attorney Stephanie I. Sprecher.
Pocatello Man Pleads Guilty to Transporting Child PornographyRead the Press Release
POCATELLO - Craig Marshall Grayson, 30, of Pocatello, Idaho, pleaded guilty yesterday to transportation of child pornography, Acting U.S. Attorney Rafael Gonzalez announced. Grayson was indicted by a federal grand jury in Pocatello on February 28, 2017.
According to the plea agreement, law enforcement agents downloaded four sexually exploitative videos of a minor from an individual later identified as Grayson between July 5 and August 12, 2016. A search of Grayson’s home and computer devices revealed his additional possession of approximately 978 images and 65 videos of child pornography.
The charge of transportation of child pornography is punishable by at least five, and up to 20, years in prison, a maximum fine of $250,000, and five years, up to a life term, of supervised release.
Sentencing is set for November 27, 2017, before U.S. District Judge David C. Nye at the federal courthouse in Pocatello.
The case was investigated by U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Idaho Internet Crimes Against Children Task Force.
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.”
Peabody Man Sentenced for Oxycodone TraffickingRead the Press Release
BOSTON – A Peabody man was sentenced today in federal court in Boston for distributing oxycodone throughout the North Shore area.
Eric Vaughn, 36, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to two years in prison and three years of supervised release. In March 2017, Vaughn pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute oxycodone.
In March 2014, federal investigators began tracking the activities of Joseph Romano and eight co-defendants. Through surveillance and a cooperating source, investigators were able to make controlled purchases of oxycodone from Romano and his associates. Co-defendants Anthony Panarese, Jarod Presterone and Paul Williams were oxycodone suppliers, and on roughly a weekly basis, Romano contacted each of them separately to arrange meetings to obtain oxycodone pills for redistribution.
In July 2015, Panarese learned that law enforcement officers were conducting surveillance of his residence. As a result, Panarese moved his oxycodone supply to Vaughn’s residence and, thereafter, Vaughn distributed oxycodone on Panarese’s behalf.
Romano was sentenced to four years in prison; Panarese was sentenced to 46 months in prison; Marcelle Milbury was sentenced to one year in prison; and Sans Milbury, who completed the Court-sponsored RISE program, was sentenced to three-years of probation. Co-defendants Presterone, Ashley Turner, David Turner Sr., and Williams have all pleaded guilty and are awaiting sentencing.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Office; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Chief Patrick M. Ambrose of the Danvers Police Department made the announcement. Assistant U.S. Attorney James E. Arnold of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Overdose Investigation Leads to Heroin Distribution Charge against Danbury ManRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that JOSE GREGORY CHARON, also known as “Yoshi,” 31, of Danbury, was arrested today on a federal criminal complaint charging him with possession with intent to distribute, and distribution of, heroin.
CHARON appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained. The offense carries a maximum term of imprisonment of 20 years.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
As alleged in the criminal complaint, on April 9, 2017, the Danbury Police Department responded to Danbury residence on a report of an untimely death of a woman. Evidence collected from the scene included three cellphones, a bottle of methadone and an empty glassine bag marked with a particular brand stamp.
The Office of the Chief Medical Examiner determined that the victim died on April 8, 2017, as a result of a methadone and benzodiazepine (Xanax) overdose.
It is further alleged that, in May 2017, investigators made two controlled purchases of heroin from CHARON. Several of the bags of heroin purchased on both occasions were marked with the same brand stamp that was on the empty bag found in the overdose victim’s residence.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Danbury Police Department. The Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk and Milford Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito and David C. Nelson.
Omaha Man Sentenced to 18 Months in Prison for Possessing Child PornographyRead the Press Release
Acting U.S. Attorney Robert C. Stuart announced that Rodney G. Hiner, 59, of Omaha, was sentenced in federal court in Omaha for possessing child pornography. Chief Judge Laurie Smith Camp sentenced Hiner to 18 months of imprisonment. After his release from prison, Hiner will begin a five-year term of supervised release and be required to register as a sex offender.
On July 7, 2016, officers with the Douglas County Sheriff’s Office and the FBI Cyber Crimes Task Force searched Hiner’s home in Omaha. His cell phone contained more than 125 images of child pornography, most of which depicted children between the ages of 2 and 13 engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Cyber Crime Task Force (CCTF).