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Monday 24 July 2017
Fresno Business Operator Sentenced to Prison for Tax EvasionRead the Press Release
FRESNO, Calif. — Jeffrey G. Vincent, 68, of Madera, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to four years and three months in prison for tax evasion, U.S. Attorney Phillip A. Talbert announced.
On April 7, 2017, a federal jury convicted Vincent on five counts of evading the assessment and payment of individual income taxes. According to evidence presented during the four-day trial, in 1991, Vincent began operating a Fresno-based engineering company called Veco Technologies, organized as Stafford Group Limited Partnership, for which Vincent was general partner. Vincent had not filed an individual income tax return since 1989, despite earning significant income from Stafford Group, including close to $500,000 between 2007 and 2010. Two federal tax liens were filed on Vincent’s assets in 1993 and 2000 when he failed to pay assessments made for earlier years’ tax delinquencies. Vincent signed tax returns for Stafford Group in which he falsely represented that he does not have a social security number. Vincent also funneled his income through various trusts and other entities.
“Mr. Vincent formed entities and trusts and funneled his income in a manner that enabled him to evade paying taxes,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “All taxpayers are required to follow the law and the law requires accurate reporting and timely payment of any tax due and owing. Today’s sentencing should send a clear message that those involved in these types of schemes will be held accountable for their crimes.”
This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorneys Christopher D. Baker and Kirk E. Sherriff prosecuted the case.
Former Tama Police Chief Sentenced to Federal Prison for Stealing Guns and Vehicles from Tama Police Department and Lying to Federal AgentRead the Press Release
The former chief of police of the Tama Police Department who stole and pawned a Tama police service weapon, two other guns held by the police department as evidence, multiple vehicles impounded by the police department, and then lied to a FBI Special Agent who was investigating those thefts was sentenced to federal imprisonment in federal court in Cedar Rapids.
Jeffrey Filloon, age 48, from Toledo, Iowa, received the prison term after a February 9, 2017, guilty plea to one count of possessing, selling, and disposing of a stolen firearm and one count of making false statements to a FBI Special Agent.
In a plea agreement, Filloon admitted that, while serving as the Tama Police Chief from July 2013 through August 2015, he stole and sold property, including three guns and four vehicles that were in police impound, from the Tama Police Department for his own personal benefit. Filloon further admitted that he lied to a FBI Special Agent who was conducting an investigation into the missing property by claiming he had bought one of the impounded vehicles he took and sold when, in fact, Filloon had not bought it from the individual he claimed sold it to him.
Filloon was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Filloon was sentenced to two months’ imprisonment and fined $5,000. A special assessment of $200 was imposed, and he was ordered to make $1,625 in restitution to the victims of his crimes, including the City of Tama. He must also serve a two-year term of supervised release after the prison term.
Filloon was released on bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-95.
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Former Executive Sentenced for Embezzling from Family-Owned Business and Cheating on TaxesRead the Press Release
PORTLAND, Ore. – On Monday, July 24, 2017, U.S. District Court Judge Anna J. Brown sentenced Andrew Henry Jacobs, 50, to 24 months in federal prison for wire fraud in an embezzlement scheme and 15 months in prison for filing false tax returns. The sentences arose from a multiyear swindle in which Jacobs stole more than $352,000 from Pacific Seafood Group (PSG) and failed to disclose the proceeds of the crime to the Internal Revenue Service (IRS), thereby evading at least $81,901 in personal income taxes.
Court documents and the parties’ statements at the time of sentencing indicate that Jacobs worked at PSG for more than a decade, ultimately rising to be the Vice President of Employee Leadership and Development at the 2,500-employee family-run firm. PSG fired Jacobs in 2015 after an audit of his expense reports revealed that he repeatedly claimed suspicious and unverified expenses. PSG hired a forensic accounting firm to quantify the scope of the theft. The firm found Jacobs submitted more than $900,000 in dubious expenses in just his final four years with the company. Due to the lack of older records, the accountants could not assess the full scope of Jacobs’s crime.
Where records were available, PSG’s accountants and government investigators confirmed that Jacobs spent hundreds of thousands of dollars on prostitutes, luxury travel, personal electronics, firearms, and gold coins. When confronted by federal investigators, Jacobs admitted both the embezzlement and the tax fraud. He waived indictment, pleaded guilty, and promised to pay restitution of $352,441 to PSG and $81,901 to the IRS. At the sentencing hearing, Judge Brown also ordered Jacobs to pay PSG an additional $126,444.89 to reimburse the company for the cost of retaining the forensic accounting firm.
Summarizing all of the conduct, Judge Brown noted that Jacobs’s long-running criminal conduct was "shameful" but agreed that he posed little risk of committing such offenses again. To minimize that risk, Judge Brown required Jacobs to disclose to future employers that he has been convicted of wire fraud in relation to embezzling from a former employer.
"Mr. Jacobs stole from his employer, his colleagues, and the American taxpayers. The sentences imposed in this case reflect the seriousness of his crimes," noted Billy J. Williams, United States Attorney for the District of Oregon, "and today’s result will serve as an important reminder that the FBI, the IRS, and the United States Attorney’s Office will work with victims to put perpetrators of financial fraud and tax cheats behind bars."
IRS Criminal Investigations (IRS-CI) Special Agent in Charge Darrel J. Waldon said "Mr. Jacobs’ actions victimized not only his employer, but the taxpaying citizens as well, by not paying taxes on the funds he embezzled and converted to personal use. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partners – FBI and DOJ."
Daniel C. Occhipinti, PSG’s General Counsel, represented the company at the sentencing hearing and also commended the outcome: "This was a rogue former employee who committed a crime against our company, our team members and our entire community. We are very grateful to the U.S. Attorney’s Office and the outstanding team at the FBI for seeing that justice was done."
This case was investigated by the FBI and IRS-CI and prosecuted by Ryan W. Bounds, Assistant United States Attorney for the District of Oregon.
Former Employee of Commercial Supply Company Admits Fraud, False Testimony Before Grand JuryRead the Press Release
TRENTON, N.J. – A former salesman at Bayway Lumber, a Linden, New Jersey, company that sold commercial and industrial products to numerous public and private entities, today admitted his role in a scheme to defraud customers and lying to a federal grand jury, Acting U.S. Attorney William E. Fitzpatrick announced.
Adam Martignetti, 43, of South River, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to Counts 1 and 6 of an indictment charging him with conspiracy to commit wire fraud and making false declarations before a grand jury.
According to documents filed in this case and statements made in court:
Martignetti admitted that from 2011 through 2013 he conspired with others to defraud certain Bayway Lumber customers by providing free items to customers’ employees and then recouping the cost of the items (plus additional revenue for Bayway Lumber) by overbilling and fraudulently billing the customers. Martignetti also admitted to supplying lower-quality, less expensive plywood to a customer, but charging for the more expensive, higher-quality plywood the customer had ordered.
Martignetti gave a variety of personal items to employees of some of Bayway Lumber’s customers, including Amtrak, the City of Elizabeth, and the Plainfield Board of Education. These items included a laptop, several iPads, a camera and sound system, patio furniture, and other merchandise. Under the supervision of Robert Dattilo, president and partial owner of Bayway Lumber, Martignetti then overbilled and fraudulently billed those customers. Dattilo kept a running tally of how much Martignetti and others overbilled and fraudulently billed customers, which many at Bayway Lumber referred to as the “Bank,” to ensure that Bayway Lumber recovered the full cost of the free items. Dattilo previously pleaded guilty to conspiracy to commit mail and wire fraud and was sentenced in July 2016 to 48 months in prison and ordered to pay $708,386 in restitution.Martignetti also conspired to provide one Bayway Lumber customer, Consolidated Edison Co. of New York Inc. (Con Edison), with lower-quality wood than it ordered and paid for. When Con Edison ordered graded plywood, a type of plywood graded by mills that had met a certain set of specifications, Martignetti, at Dattilo’s instruction, routinely sent plywood that was of a lower grade or not graded at all, including “reject” plywood, but charged Con Edison for the higher-quality plywood that it ordered.
Martignetti also pleaded guilty to falsely testifying before a federal grand jury while appearing as a witness under oath in March 2013 that he had never given Bayway Lumber items to City of Elizabeth employees for free, and that Elizabeth was never charged for items that were for Elizabeth employees’ personal use.
The conspiracy to commit wire fraud charge to which Martignetti pleaded guilty carries a maximum penalty of 20 years in prison. The charge of knowingly making false statements before a grand jury guilty carries a maximum penalty of five years in prison. Each count also carries a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for Sept. 28, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents with the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi; the Office of Inspector General, Amtrak, under the direction of Special Agent in Charge Michael Waters; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division, and Assistant U.S. Attorney Barbara R. Llanes, Chief, General Crimes Unit, of the U.S. Attorney’s Criminal Division, in Newark.
Defense Counsel: Michael Armstrong Esq., Willingboro, New Jersey
Former Bank Vice President Pleads Guilty to Employment Tax ConspiracyRead the Press Release
A former bank vice president pleaded guilty today to conspiring to defraud the United States, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents filed with the court, Douglas Corriher, 68, was the Vice President at a South Carolina-based bank. From 2009 through 2010, Corriher extended several factoring loans, through nominee entities, to a bank customer who operated staffing companies in North Carolina. Through the use of nominees, he was able to circumvent federal regulations limiting the amount of money that can be loaned to a single entity.
The staffing company promised its clients that it would pay the payroll taxes for thousands of low-wage temporary workers that it supplied to its clients. The company issued Forms W-2 and filed employment tax returns showing that the funds had been withheld from the wages of the workers. In fact, the payroll taxes were not paid over to the Internal Revenue Service (IRS). Corriher was aware that the company owed more than $1 million in payroll taxes. Notwithstanding this, Corriher continued to make advances on the loans knowing that the fund of unpaid payroll taxes would enable the staffing company to repay the loan and allow the bank to continue collecting high rates of interest on the loan advances along with lucrative fees.
Corriher’s sentencing hearing is scheduled for Oct. 6 before U.S. District Judge N. Carlton Tilley. He faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston thanked special agents of IRS Criminal Investigation, FBI and Federal Deposit Insurance Corporation Office of Inspector General, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorneys Nathan Brooks and Jeffrey A. McLellan of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Bank Vice President Pleads Guilty to Employment Tax ConspiracyRead the Press Release
WASHINGTON – A former bank vice president pleaded guilty today to conspiring to defraud the United States, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents filed with the court, Douglas Corriher, 68, was the Vice President at a South Carolina-based bank. From 2009 through 2010, Corriher extended several factoring loans, through nominee entities, to a bank customer who operated staffing companies in North Carolina. Through the use of nominees, he was able to circumvent federal regulations limiting the amount of money that can be loaned to a single entity.
The staffing company promised its clients that it would pay the payroll taxes for thousands of low-wage temporary workers that it supplied to its clients. The company issued Forms W-2 and filed employment tax returns showing that the funds had been withheld from the wages of the workers. In fact, the payroll taxes were not paid over to the Internal Revenue Service (IRS). Corriher was aware that the company owed more than $1 million in payroll taxes. Notwithstanding this, Corriher continued to make advances on the loans knowing that the fund of unpaid payroll taxes would enable the staffing company to repay the loan and allow the bank to continue collecting high rates of interest on the loan advances along with lucrative fees.
Corriher’s sentencing hearing is scheduled for Oct. 6 before U.S. District Judge N. Carlton Tilley. He faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston thanked special agents of IRS Criminal Investigation, FBI and Federal Deposit Insurance Corporation Office of Inspector General, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorneys Nathan Brooks and Jeffrey A. McLellan of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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Five Members of Fraudulent Debt Collection Company Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Five members of a fraudulent debt collection scheme, including the company’s owner and operator, were sentenced today by U.S. District Judge Robert J. Conrad, Jr., to sentences ranging from 42 to 18 months, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina joins U.S. Attorney Rose in making today’s announcement.
Cedrick Clark, 36, of Concord, N.C. was sentenced to 42 months; Michael Boughner, 49, of Charlotte, was sentenced to 41 months; Cynthia Martinez, 37, of Charlotte, was sentenced to 36 months; Felicia Shaw, 46, of Gastonia, was sentenced to 24 months; and Humberto Gonzalez, 31, of Charlotte, was sentenced to 18 months. In addition to the prison terms imposed, each defendant was ordered to serve three years of supervised release. A sixth co-defendant, Benjamin Murray, 28, of Charlotte, is currently awaiting sentencing.
According to information contained in filed court documents and today’s sentencing hearings, Clark was the sole owner, operator, and leader of the fraudulent debt collection company operating as Capital Solutions Agency, and/or Berkeley Hughes and Associates, and/or the Vortex Group, collectively “BHA.” Clarks’ five co-conspirators, Boughner, Martinez, Murray, Shaw and Gonzalez served as both collectors and team leaders or supervisors.
According to court records, from November 2011 through May 2015, BHA operated in Mecklenburg County and allegedly defrauded thousands of debtors throughout the United States of approximately $6 million. Using a number of interconnected fraudulent debt collection companies, the co-conspirators executed their scheme to defraud by coercing purported debtors to pay money, some of which was not even owed, by providing false information and using harassing and abusive tactics.
Court documents indicate that BHA’s collectors used prepared scripts that contained false and misleading information designed to scare targeted victims into paying monies, including threats to bring criminal charges if the purported debtor did not pay his/her debt by the end of the telephone call. According to court documents and today’s sentencing hearings, false statements made included telling purported debtors that the company’s systems were “integrated with the court system” and that criminal charges would be filed in specific county courts.
Court documents show that to evade detection, disguise the fraudulent nature of the scheme and to scare their victims into paying, the collectors changed the name or the nature of the business from which they were purportedly calling. In some instances, the collectors falsely represented that they were law firms, that they had attorneys on staff to consult, and/or that the collectors themselves were attorneys. In other instances, they falsely represented themselves to be members of law enforcement, and even played a police scanner in the background. In addition, filed court documents and statements made in court today indicate that BHA collectors often engaged in other scare tactics to fraudulently induce victims into paying the alleged debts, including harassing family members, including their children, and friends and calling places of employment purportedly regarding service of process.
In handing down today’s sentences, Judge Conrad characterized the defendants’ conduct as “reprehensible,” noting that they were “targeting desperate debtors” and using “brutal tactics involving threats of jail” and “bullying techniques.” Judge Conrad further noted the “predatory” nature of the conduct defendants engaged in and the “serious, heinous nature of the circumstances of the offense.”
Each of the six defendants previously pleaded guilty to one count of engaging in a fraudulent debt collection conspiracy to commit mail and wire fraud. Clark pleaded guilty to an additional count of money laundering. The five defendants sentenced today will be ordered to report to the Federal Bureau of Prisons upon designation of federal facilities. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Rose commended the FBI for leading the investigation.
Assistant United States Attorney Maria K. Vento, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Firearms Crime ReportRead the Press Release
Dominick Brooks, 29, was indicted by a federal grand jury for felon in possession of a firearm.
Robert Cooper, 46, was indicted by a federal grand jury for felon in possession of a firearm.
Olugbenga Folarin, 27, was indicted by a federal grand jury for felon in possession of a firearm.
Anthony Kirksey, 30, was indicted by a federal grand jury for felon in possession of a firearm.
Joseph Lee Miles, 31, was indicted by a federal grand jury for felon in possession of a firearm.
Michael Nunley, 41, was indicted by a federal grand jury for felon in possession of a firearm.
James Cortes Smith, 33, was indicted by a federal grand jury for felon in possession of a firearm.
Christopher Starks, 36, was indicted by a federal grand jury for felon in possession of a firearm.
Chester Wilkerson, 56, was indicted by a federal grand jury for felon in possession of a firearm.
Cameron Bryant, 22, was indicted by a federal grand jury for felon in possession of a firearm, possession with intent to distribute Fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
Kirk K. Darden, 23, was indicted by a federal grand jury for possession with intent to distribute Fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
Jalen C. Sherrell, 21, was indicted by a federal grand jury for possession of a firearm in furtherance of a drug trafficking crime.
Steven Gains, 26, pled guilty to one felony count of felon in possession of a firearm.
Glenn Hamer, 35, pled guilty to one felony count of felon in possession of a firearm.
Deshaum L. Ceruti, 42, pled guilty to one felony count of felon in possession of a firearm.
Cary Washington, 46, pled guilty to one felony count of felon in possession of a firearm.
Federal jury finds Bastrop man guilty of defrauding USDA over fake farm benefit schemeRead the Press Release
MONROE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a federal jury found a Bastrop farmer guilty last week of creating shell farms so he could receive more than $1.6 million in subsidy payments to which he was not entitled.
Brad A. McIntyre, 33, of Bastrop, La., was found guilty of one count of conspiracy to commit mail fraud, five counts of mail fraud and four counts of money laundering related to engaging in monetary transactions in property derived from specified unlawful activity. United States District Judge S. Maurice Hicks Jr. presided over the trial, which started July 10 and ended Friday, July 21. The jury returned a guilty verdict after deliberating for approximately five hours.
Evidence admitted at trial revealed that McIntyre, a fourth generation farmer and the owner of Delta Agriculture and Company, sought to avoid the Farm Service Agency direct program payment limitation of $40,000 per year per farm entity member. From August 2009 until February 2013, McIntyre conspired to create fictitious farm operations. When applying for FSA’s direct program payments, McIntyre listed the names of his relatives and employees as the owners of these entities when in fact he controlled and managed all of these farming entities. FSA’s Supplemental Revenue Assistant (SURE) and Crop Assistance Program (CAP) payments were each limited to $100,000 per person who experienced a qualifying crop loss because of disaster. These fake farms also fraudulently received disaster program payments from FSA.
When the Farm Service Agency mailed agricultural subsidy checks to the entities, they went to Post Office boxes in Mer Rouge established and controlled by McIntyre. He unlawfully received more than $1.3 million during the course of the scheme.
“I want to thank the U.S. Attorney’s office, OIG special agents and our investigative partners for their hard work on this investigation,” USDA-Office of Inspector General ASAC Dax Roberson stated. “When the integrity of USDA’s farming programs is violated by criminal conduct, the Office of Inspector General will pursue justice to the fullest extent of the law.
“Crimes involving the laundering of monies fraudulently obtained remain a priority for the special agents of IRS–Criminal Investigation,” IRS Special Agent in Charge Jerome R. McDuffie stated. “It is imperative to the achievement of the IRS mission that these cases are investigated and prosecuted to the fullest extent of the law. I want the law abiding taxpayers to know that we are working diligently to ensure that these individuals are held accountable for their misdeeds with regards to violating the laws enforced by the criminal division of the IRS.”
McIntyre faces 20 years in prison for the conspiracy count, 20 years for the mail fraud counts and 10 years for the money laundering counts. He also faces five years of supervised release, forfeiture of more than $1 million in property and a $250,000 fine for each count. Sentencing has been set for October 4, 2017.
The USDA-OIG and IRS-Criminal Investigation conducted the investigation. Supervisory Assistant U.S. Attorney Cytheria D. Jernigan and Assistant U.S. Attorney Tiffany E. Fields are prosecuting the case.
Federal Alien Smuggling Charge Filed Against Driver of Tractor-TrailerRead the Press Release
In San Antonio, 60–year-old James Matthew Bradley, Jr., is charged with one count of transporting illegal aliens, announced United States Attorney Richard L. Durbin, Jr., and U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
A federal complaint filed this morning, alleges that Bradley unlawfully transported aliens in violation of law, resulting in the death of ten of the aliens transported. The tenth alien, an adult male, died overnight at a hospital. Upon conviction, the offense is punishable by life imprisonment or death, a $250,000 fine, and three years of supervised release.
According to the complaint affidavit filed by HSI Special Agent James Lara, San Antonio Police Department (SAPD) Officers responded to a call at the Wal-Mart store located at 8538 Interstate 25 Access Road in San Antonio shortly after midnight on Sunday, July 23. An officer encountered a tractor-trailer behind the store, finding a number of people standing and lying in the rear of the trailer, and the driver, Bradley, in the cab. Bradley said he was transporting the trailer from Schaller, Iowa, to Brownsville, Texas. He denied knowing there were people in the trailer, and discovered them only when he exited the vehicle to relieve himself. He said he attempted to administer aid to them. Law enforcement officers from SAPD reported they found eight deceased persons and 30-40 others, all undocumented aliens. The driver, Bradley, was taken into custody.
During questioning, Bradley said he was traveling from Laredo to San Antonio, after having the tractor-trailer washed and detailed at a truck stop near Laredo. He intended to take the trailer to Brownsville to deliver it to someone who had purchased it. He stopped at the Wal-Mart and heard banging and shaking in the trailer. He was surprised when “he was run over by ‘Spanish’ people and knocked to the ground,” according to the affidavit. He realized that at least one person was dead. He said he knew the trailer refrigeration system did not work and that the four vent holes probably were clogged. He said he called his wife, but he did not call 911. He said about 30 to 40 people ran from the trailer.
Several of the undocumented aliens taken from the trailer and interviewed by HSI Special Agents described how they had been smuggled across the Rio Grande River near Laredo at different times and as part of different groups. They were harbored in one or more stash locations, and on Sunday, the groups were assembled in the trailer. One alien said his group of 24 had been in a “stash house” in Laredo for 11 days before being loaded into the trailer. They estimated the trailer contained between 70 and 180 to 200 people during transport. They described differing fees for being transported.
"To maximize their criminal profits, these human smugglers crammed more than 100 people into a tractor trailer in the stifling Texas summer heat resulting in ten dead and 29 others hospitalized," said Acting ICE Director Thomas Homan. "Human smugglers have repeatedly demonstrated that they have absolutely no regard for human life. Our ICE agents and officers, working closely with our law enforcement partners, will pursue these smugglers and bring them to justice."
An initial appearance for Bradley is scheduled before U.S. Magistrate Judge Elizabeth S. Chestney at approximately 11:00 a.m., today.
The U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is leading this investigation together with ICE Enforcement and Removal Operations, the San Antonio Police Department and the San Antonio Fire Department, with assistance from the Bexar County Sheriff’s Office and the U. S. Customs and Border Protection’s Border Patrol.
Assistant United States Attorney Christina Playton is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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Essex County, New Jersey, Man Sentenced to 41 Months in Prison for Role in Oxycodone Distribution RingRead the Press Release
NEWARK, N.J. – A Belleville, New Jersey, man was sentenced today to 41 months in prison for his role in a conspiracy to illegally obtain and distribute oxycodone in New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Rickie Horvath, 56, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with one count of conspiracy to distribute oxycodone. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug-trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Horvath as a member of the drug trafficking organization.
Horvath admitted that from Feb. 5, 2014 to Aug. 13, 2014, he personally went to various doctors’ offices and obtained prescriptions for pills containing oxycodone, had the prescriptions filled, and sold the pills to members of the conspiracy and others. He said that on a single day in June 2014, he traveled to a doctor’s office in Livingston, New Jersey, where he and two conspirators each obtained a prescription for 60 Endocet pills. Horvath and his conspirators dropped off the three prescriptions to be filled by a pharmacy in East Orange, New Jersey. Horvath admitted that he and his two conspirators then found a fourth conspirator to buy the 180 Endocet pills. Horvath and his conspirators traveled to the East Orange pharmacy with the third conspirator buyer, where Horvath used the fourth conspirator’s money to purchase the filled prescriptions. Horvath and his conspirators then sold the 180 Endocet pills to the fourth conspirator.
Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence. The Endocet pills obtained and sold by Horvath each contained 10 milligrams of oxycodone.In addition to the prison term, Judge Salas sentenced Horvath to three years of supervised release.
Of the 16 people that have been charged in this conspiracy, 13 have been convicted, including the leader, Victoria Horvath, who was sentenced Oct. 20, 2016 to 92 months in prison. Charges against a defendant who died in April 2014 have been dismissed.
Acting U.S. Attorney Fitzpatrick credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark. The principal mission of the OCDETF program, under which this investigation was conducted, is to identify, disrupt and dismantle the most serious drug-trafficking, weapons-trafficking and money-laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Damian Conforti Esq., Newark
Employee of New Jersey-Based Trucking Company Gets 33 Months in Prison for Stealing More Than $3 Million from Her EmployerRead the Press Release
TRENTON, N.J. – A former employee of a New Jersey based-trucking company was sentenced today to 33 months in prison for stealing more than $3 million by issuing company checks for her own benefit, Acting U.S. Attorney William E. Fitzpatrick announced.
Tracey Perrigan, 55, of Sparta, Tennessee, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to Count One of an indictment charging her with wire fraud. Judge Sheridan imposed the sentence today in Trenton federal court.According to documents filed in this case and statements made in court:
Perrigan was an employee of a company identified in the indictment as “Company A,” the corporate parent of several subsidiary trucking, rigging, and transportation companies. Company A was headquartered in Oceanside, New York, and had a Branchburg, New Jersey, facility where Perrigan worked.
Company A used the “Comchek” system, which enables clients to authorize and monitor fuel and repair expenditures by drivers in remote locations. As part of her duties, Perrigan was responsible for authorizing Comcheks drawn on Company A’s bank account. From March 2007 through August 2015, Perrigan diverted $3.25 million from her employer to an entity identified as “Company B,” a trucking and towing company based in Tennessee that she owned with another person. Company B never conducted any business with Company A.
In addition to the prison term, Judge Sheridan sentenced Perrigan to three years of supervised release. Perrigan must also pay restitution of $3,251,419.65.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark
Empire Resident Indicted for Deepwater Horizon Settlement FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that TONY RILEY, age 48, of Empire, Louisiana, was charged Friday in a one-count Indictment for committing mail fraud in relation to the BP settlement fund for the Deepwater Horizon oil rig explosion.
According to the indictment, RILEY submitted false documents to the Gulf Coast Claims Facility (GCCF) and the Deepwater Horizon Economic Claims Center (DHECC), in which he claimed that he suffered lost income in relation to his seafood business. As a result of those false claims, RILEY received $221,681.62 in reimbursement to which he was not entitled.
If convicted, RILEY faces a maximum sentence of 20 years in prison, a $250,000 fine, and up to three years of supervised release.
Acting U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Secret Service New Orleans Field Office. Assistant United States Attorney Matthew Payne is in charge of prosecution.
El Paso Man Pleads Guilty to Using Interstate Communications to Threaten Las Cruces Police OfficersRead the Press Release
ALBUQUERQUE – Sean Stinson, 33, of El Paso, Texas, pled guilty today in federal court in Las Cruces, N.M., to using interstate communications to threaten the lives and safety of Las Cruces Police Department (LCPD) officers.
Stinson was arrested on Sept. 2, 2016, for making telephone calls from El Paso to individuals in Las Cruces during which he threatened the lives of LCPD officers. According to the criminal complaint, Stinson had several telephone calls, some of which were recorded, with LCPD officers during which Stinson threatened to shoot, kill and otherwise injure specific officers.
Stinson subsequently was indicted on Sept. 21, 2016, and charged with seven counts of transmitting interstate communications with intent to threaten to injure another person. According to the indictment, Stinson committed the crimes between Aug. 24, 2016 and Sept. 2, 2016.
During today’s proceedings, Stinson pled guilty to the indictment and admitted that on Aug. 24 and 25, 2016, he made several telephone calls from El Paso to the LCPD during which he threatened to injure an LCPD officer. Stinson acknowledged that he intended his calls to be perceived as threats.
At sentencing, Stinson faces a statutory maximum penalty of five years in prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI, the U.S. Marshals Service and the LCPD. Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
DeKalb Tax Preparer Sentenced for Conspiracy to Defraud the GovernmentRead the Press Release
Jackson, Miss. – Christopher Lashawn Chamberlin, 40, of DeKalb, Mississippi, was sentenced on July 20, 2017, on charges that he conspired to defraud the government by preparing and filing false tax returns using stolen identities provided to him by others, announced Acting U.S. Attorney Harold Brittain and IRS-Criminal Investigation Special Agent in Charge Jerome McDuffie.
Chamberlin, who owned and operated C & T Tax Services in De Kalb, pled guilty on April 11, 2017, to conspiracy to defraud the government. U.S. District Judge Tom S. Lee sentenced Chamberlin to serve 30 months in federal prison, followed by 3 years of supervised release. He was also ordered to pay over $11 million dollars in restitution to the government.
The investigation revealed that Chamberlin knowingly submitted false claims to the IRS by preparing and submitting false U.S. Individual Income Tax Returns, Forms 1040, using stolen identities provided to him by a co-conspirator. The fraudulent returns would have directed the refunds to be deposited into the accounts of other co-conspirators, but IRS-Criminal Investigation was able to stop the payments before they were made, thanks to the swift action of the De Kalb, Mississippi Police Department in investigating and reporting the scheme.
Chamberlin also admitted to preparing tax returns for other individuals that included exaggerated losses which resulted in fraudulently increased refunds. He was ordered to pay restitution of over $11 million dollars for these fraudulently obtained refunds.
IRS Criminal Investigation Special Agent in Charge, Jerome R. McDuffie, stated, "We are pleased with the sentence imposed by the court in this matter. We want the individuals who engage in these schemes to know that we will pursue prosecution and seek to hold them accountable for their corrupt endeavors to rob the nations’ taxpayers. IRS – Criminal Investigation is particularly appreciative of the partnership we enjoy with our local law enforcement agencies, and the Office of the United States Attorney in the investigation and prosecution of identity theft related tax crimes."
This case was investigated by IRS-Criminal Investigation and was prosecuted by Assistant United States Attorney Dave Fulcher.
Dallas man sentenced to 65 months in prison for role in southwest la methamphetamine conspiracyRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that the last defendant in a drug conspiracy was sentenced last week to more than five years in prison for his role in a methamphetamine distribution scheme that stretched from Mexico to Texas to southwest Louisiana.
Raul Perez-Mendoza, 26, a Dallas Texas resident, originally from San Luis Potosi, Mexico, was sentenced Friday by U.S. District Judge Dee D. Drell on one count of conspiracy to posses with intent to distribute methamphetamine. He was also sentenced to five years of supervised release. Perez-Mendoza and seven other defendants conspired to distribute methamphetamine in southwest Louisiana from January 2012 to July 2013.
In addition to Perez-Mendoza, seven other defendants were indicted. They are: Mario Barazza-Corral, 42, and Omar Ivan Barazza-Corral, 33, of Chihuahua, Mexico, who are brothers; Sergio Reyes Castillo, 51, of Mexico City, Mexico; Jessica Kristin Clark, 43, of Houston, Texas; Lazaro Perez Cribeiro, 53, of Cuba; Brian Keith Hebert, 55, of Ragley, La.; Billy Washington Hyatt, 47, of Singer, La.; and Jarrid James Hargrave, 35, of Abbeville, La. Omar Ivan Barazza-Corral was not arrested and is still being sought for prosecution. These rest of the defendants previously pleaded guilty and were sentenced as shown below:
Defendants Prison term Supervised release Counts* Date Mario Barazza-Corral 108 months — 1, 2-8, 10 Jan. 13, 2016 Omar Barazza-Corral — — — — Sergio Reyes Castillo 120 months 5 years 1 Dec. 10, 2015 Jessica Clark 60 months 5 years 1 Dec. 10, 2015 Lazaro Perez Cribeiro 70 months — 1, 3-8 Jan. 12, 2016 Bryan Hebert 87 months 5 years 1,9 Feb. 25, 2016 Billy Hyatt 120 months 5 years 1 Jan. 11, 2016 Jarrid Hargrave 57 months 5 years 1 July 16, 2015*Count 1 is conspiracy to distribute and possess with intent to distribute methamphetamine, counts 2-8, 10 and 11 are distribution of methamphetamine, and count 9 is possession with intent to distribute methamphetamine.
According to Perez-Mendoza’s March 9, 2017 guilty plea, Mario Barazza-Corral was the leader of the conspiracy and imported methamphetamine from Mexico. He would then transport the drugs to points in Texas and then either transport them himself or arrange for others to transport the drugs to Vinton, La. He would supply his brother Omar Ivan Barazza-Corral who lived in Vinton with drugs, and his brother would distribute them to others. Perez-Mendoza assisted the brothers with transporting and distributing 500 grams to 1.5 kilograms of a mixture or substance containing methamphetamine.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation named “Havana Speed.” Homeland Security Investigations, DEA, Calcasieu Parish Sheriff’s Office, Vinton Police Department and Allen Parish Sheriff’s Office conducted the investigation. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorneys Kelly P. Uebinger and Jamilla A. Bynog are prosecuting the case.
Cohoes Man Sentenced to 151 Months for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Paul A. Light, age 47, of Cohoes, New York, was sentenced today to 151 months in prison for distributing, receiving, and possessing child pornography.
The announcement was made by Acting United States Attorney Grant C. Jaquith and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his March 27, 2017 guilty plea, Light admitted that between March, 2015 and October, 2015 he used the Internet and a peer-to-peer file sharing program to receive and distribute multiple child pornography files. Light further admitted that he used various electronic storage devices to possess hundreds of child pornography video files and thousands of child pornography still image files.
Senior United States District Judge Gary L. Sharpe also imposed a 10-year term of supervised release, which will start after Light is released from prison. Judge Sharpe also ordered Light to pay a total of $142,500 in restitution to 15 victims whose images Light possessed. As a result of his conviction, Light will be required to register as a sex offender after leaving prison.
This case was investigated by Homeland Security Investigations (HSI) and was prosecuted by Assistant U.S. Attorney Rick Bellis.
Chinese national living in Massachusetts arrested and charged with distributing opioids that were shipped from China to the U.S. and ultimately to OhioRead the Press Release
A Chinese national living in Massachusetts was arrested and charged with distributing opioids and other drugs that were shipped from China to the United States and ultimately to Ohio, law enforcement officials said.
Bin Wang, 42, operated Cambridge Chemicals, Wonda Science, and other companies from a warehouse in Woburn, Massachusetts.
Law enforcement began investigating shipments of carfentanil, fentanyl and other opioids in August 2016, after a series of fatal overdoses in Northeast Ohio, according to a criminal complaint filed in the case.
That investigation led them to several Chinese web sites, which they learned were selling kilogram amounts of fentanyl and fentanyl analogues, which were shipped via private carriers such as FedEx. One of the web sites was used to purchase acetylfentanyl that caused the overdose deaths of two Summit County residents in 2015, according to the affidavit.
Beginning in November 2016, undercover agents began ordering opioids and other drugs from a man in China identified at “Gordon Jin.” The agents wired money to China using Western Union or MoneyGram. Investigators learned Jin sent the drugs Wang in Massachusetts, who in turn mailed the drugs domestically, including to locations in Northeast Ohio, according to the affidavit.
The affidavit details numerous sales and shipments of drugs from China to Massachusetts to Ohio from November 2016 through this month.
“Increasingly, the opioids that are killing our friends and neighbors are being sent here from China,” said Acting U.S. Attorney David Sierleja. “Shutting down this pipeline will help in our efforts to turn the tide on the opioid epidemic. We will focus on prevention, education, and aggressive law enforcement, both here and around the world.”
DEA Special Agent in Charge Timothy J. Plancon said: “The importation of opioids and other synthetic drugs from China has played a significant role in America’s current drug use epidemic. Over 60,000 people a year die from drug overdoses in this country, and halting all methods of drug trafficking, including by way of the Internet is a top priority of the DEA. This investigation makes clear that geographic and technological hurdles will not stop DEA and our partners from bringing to justice those responsible for the illegal distribution of drugs in the U.S.”
“As opioids and other dangerous drugs continue to plague our communities in Ohio, a unified law enforcement community is the only way to stem the tide of this dangerous and deadly epidemic,” said Steve Francis, special agent in charge HSI Detroit, which covers Michigan and Ohio. “In order to have a significant impact, these organizations must be attacked from the street-level dealer to the wholesale distributor.”
“This investigation is a great example of a collaborative effort of federal agencies and a local drug task force working together to identify and track down people and organizations that are responsible for the ever-increasing shipments of very powerful synthetic opiates into Ohio,” said Don Hall, director of the MEDWAY Drug Enforcement Agency.
The investigation is ongoing.
This case is being prosecuted by Assistant U.S. Attorney Matthew J. Cronin following an investigation by the DEA, Homeland Security Investigations and the Medway Drug Enforcement Agency, a drug task force serving Wayne County.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge 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.
Charlestown Woman Sentenced for Fraudulently Cashing 287 Tax Refund ChecksRead the Press Release
BOSTON - A Charlestown woman was sentenced today in federal court in Boston for fraudulently cashing 287 U.S. tax refund checks worth approximately $1.8 million.
Claudia Toribio, 35, was sentenced by U.S. District Court Judge Leo T. Sorokin to six months in prison, three years of supervised release, and ordered to pay $1,836,862 in restitution. On March 29, 2017, Toribio pleaded guilty to one count of theft of public money.
From February 2011 to Dec. 21, 2011, Toribio, who was employed by a check cashing business, was involved in a stolen identity refund fraud scheme in which she fraudulently cashed 287 U.S. tax refund checks totaling $1,836,862. When confronted by her employer in late 2011, she admitted her involvement in the scheme.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
Celgene Agrees to Pay $280 Million to Resolve Fraud Allegations Related to Promotion of Cancer Drugs for Uses Not Approved by FDARead the Press Release
LOS ANGELES – Celgene Corp., a manufacturer of pharmaceuticals headquartered in Summit, New Jersey, has agreed to pay $280 million to settle fraud allegations related to the promotion of two cancer treatment drugs for uses not approved by the Food and Drug Administration, the Justice Department announced today.
Celgene agreed to pay the settlement to resolve a “whistleblower” lawsuit that alleged it had violated the federal False Claims Act by submitting false claims to Medicare. The lawsuit also alleged that Celgene violated the laws of 28 states and the District of Columbia by submitting fraudulent claims to state health care programs, including California’s Medi-Cal program.
Pursuant to the settlement, which was finalized last week, Celgene will pay $259.3 million to the United States and $20.7 million to the 28 states and the District of Columbia. California will receive $4.7 million, more than any other state.
The settlement resolves allegations brought in a “whistleblower” lawsuit that Celgene promoted two cancer drugs – Thalomid and Revlimid – for uses that were not approved by the FDA and not covered by federal health care programs. The allegations included the use of false and misleading statements about the drugs, and paying kickbacks to physicians to induce them to prescribe the drugs.
“Patients deserve to know their doctors are prescribing drugs that are likely to provide effective treatment, rather than drugs marketed aggressively by pharmaceutical companies,” said Acting United States Attorney Sandra R. Brown.
The whistleblower lawsuit was filed in United States District Court by Beverly Brown, who was employed as a sales manager by Celgene, under the qui tam provisions of the False Claims Act and similar laws of the District of Columbia and the 28 states included in the lawsuit. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery. The United States may intervene in the lawsuit, or, as in this case, the whistleblower may pursue the action.
“Today’s recovery again spotlights the importance of the False Claims Act in preserving precious government health plan resources,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “This invaluable law enlists all in the battle against fraudulent health care schemes.”
The case, United States ex rel. Brown v. Celgene Corp., CV10-3165, was monitored by the United States Attorney’s Office, the Civil Division’s Commercial Litigation Branch, and HHS-OIG.
The claims settled by this agreement are allegations only, and the defendant did not admit liability in settling the action.
Career fraudster and identity thief sentenced to five years in federal prisonRead the Press Release
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of a life-long perpetrator of fraud and identity theft schemes. Catherine A. Demaree, 65, was sentenced to 61 months in federal prison by U.S. District Judge Tanya Walton Pratt after pleading guilty to charges of mail fraud and aggravated identity theft.
“For decades, Catherine Demaree wreaked havoc on Hoosiers’ financial lives,” said Minkler. “Identity theft is a particularly insidious crime, as it devastates people’s credit, which often takes years to repair. This Office will prosecute such crimes to the fullest extent of the law, particularly recidivists like Demaree. Today, her streak of fraud and identity theft comes to an end.”
Demaree’s criminal record began in 1978. Since then, she has been convicted 22 times, most of them felonies and most of them for fraud, forgery, and identity theft. For nearly 40 years, in multiple states and throughout Indiana, she has stolen people’s identities and checkbooks, applied for credit cards and loans in their names, and run up bills for her own personal purchases before being caught. In addition to the identities she stole, she has used over 30 aliases and a dozen false dates of birth and social security numbers throughout her life to conceal her own identity.
In this case, she was caught using Social Security numbers and other identifying information from over 20 individuals throughout southern Indiana. She used their information to apply for bank loans and over 100 credit cards, which she used to make cash withdrawals and personal purchases, such as groceries, gas, phone bills, rental cars, hotel rooms, pizza delivery, and weekly trips to the nail salon.
fact that she had a personal relationship with many of the victims did not deter her. She exploited that relationship to gain access to their personal information, something she had done in her prior offenses as well. Her victims in this case included her next-door neighbors, the owner of a tanning salon where she tanned, and a friend who took Demaree in after Demaree lied and told her that she was being abused by an estranged husband. In fact, Demaree had been arrested by local police for fraud and forgery and had just bonded out of jail. When the friend realized Demaree’s lie, she confronted her. Demaree fled, stealing credit cards and checkbooks belonging to her friend and her friend’s husband and sister.
Ultimately, Demaree made her way to Urbana, Missouri, where she approached an elderly woman who had advertised online for a companion and home health assistance. Demaree spent about a week with the Missouri woman before running off with her checkbook and personal information. Demaree was arrested in Kansas shortly thereafter with the Missouri woman’s checkbook, Social Security card, and Medicare card, along with similar documents for many of the Indiana victims.
Under federal law, Demaree will serve at least 52 months of her 61-month sentence – by far the longest sentence she has received to date.
According to Assistant United States Attorney Nick Linder, who prosecuted the case for the government, Demaree will be closely supervised for 3 years following her prison time.
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Canton man sentenced to 10 years in prison for child pornography crimesRead the Press Release
A Canton man was sentenced to more than 10 years in prison for child pornography crimes, said Acting U.S. Attorney David Sierleja and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Matthew Ungashick, 40, was sentenced to 121 months in prison. He knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct in July 2016. He also possessed a two external computer hard drives and numerous computer disks, each of which contained child pornography, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the Federal Bureau of Investigation and the Canton Police Department.
Beverly Hills Plastic Surgeon Pleads Guilty to Hiding Offshore Bank Account from the IRSRead the Press Release
LOS ANGELES – A Beverly Hills plastic surgeon who earned nearly $1.3 million while working in Dubai over a three-year period pleaded guilty today to failing to disclose a foreign bank account to the Internal Revenue Service.
Marc Edward Mani, 49, pleaded guilty before United States District Judge R. Gary Klausner.
Mani pleaded guilty to one count of failing to file a foreign bank and financial account report (FBAR) for the 2013 tax year.
According to the plea agreement filed in this case, while working as a plastic surgeon in Beverly Hills, Mani began to travel to Dubai in 2011 to perform plastic surgery for a foreign medical center. Mani’s accountant, who was aware that Mani was earning foreign income, informed him that he would be required to report any foreign bank accounts under his ownership or control to the IRS.
In 2012, Mani opened a bank account with a financial institution based in Dubai and began depositing income he earned from abroad into this account. By February 2013, Mani’s foreign bank account held more than $400,000. However, Mani willfully failed to file a FBAR to disclose his foreign bank account for the calendar years 2012 and 2013.
In addition to failing to disclose his interest in his foreign bank account, Mani also failed to report on his federal income tax returns the vast majority of the approximately $1.28 million in foreign income he earned in Dubai for the years 2012, 2013 and 2014.
United States citizens who have an interest in or authority over a financial account in a foreign country with assets over $10,000 are required to disclose and report the foreign financial account to the United States Department of Treasury for each year the financial account exists.
Mani is scheduled to be sentenced by Judge Klausner on February 5. The statutory maximum sentence he can receive is five years in federal prison.
This case is the product of an investigation by IRS Criminal Investigation.
The case was prosecuted by Assistant United States Attorneys Charles Parker and James C. Hughes of the Tax Division.
Athens Man Sentenced to Six Years for Possession of Child PornographyRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Steven Strang, Jr., 38, of Athens, Maine, was sentenced Friday in U.S. District Court by Judge John A. Woodcock, Jr. to 6 years in prison and 10 years of supervised release for possession of child pornography. Strang pled guilty on May 6, 2016.
According to court records, from about June 15, 2015 to about 20 August, 2015, Strang possessed dozens of video files depicting child pornography. Many of these videos, which he had purposely sought out and downloaded from the internet, depicted the sexual exploitation of prepubescent children under the age of 12.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Unit.
Alleged Head of Wildlife Smuggling Ring Extradited from AustraliaRead the Press Release
Guan Zong Chen (“Graham Chen”), a Chinese national was arraigned today in federal court in Boston, Massachusetts on charges that he led a conspiracy to illegally export (smuggle) $700,000 worth of wildlife items made from rhinoceros horn, elephant ivory and coral from the United States to Hong Kong. Chen was arrested last year when he traveled from China to Australia and today’s hearing was his first court appearance on an indictment returned by a Boston grand jury in 2015 and unsealed in anticipation of the hearing.
According to the eight-count indictment, Chen purchased the wildlife artifacts at U.S. auction houses located in California, Florida, Ohio, Pennsylvania, New York and Texas. He conspired with another Chinese national, a recent college graduate in China to travel to the United States to pick up the purchased items and either hand carry or arrange for them to be mailed to another co-conspirator that owned a shipping business in Concord, Massachusetts. The shipper then repacked the wildlife items and exported (smuggled) them to Hong Kong with documents that falsely stated their contents and value and without obtaining required declarations and permits. In April 2014, Chen visited the United States and visited the shipper in Concord, Massachusetts. During the visit with the shipper, CHEN instructed the shipper to illegally export (smuggle) a sculpture made from elephant ivory to Hong Kong on Chen’s behalf and falsely declared it to be made of wood and worth $50.
The unsealing of the indictment and court appearance were was announced today by Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney William D. Weinreb of the District of Massachusetts. In announcing the case today, Acting Assistant Attorney General Wood and Acting U.S. Attorney Weinreb expressed their appreciation to the Australian Federal Police and the Australian Attorney-General’s Department for their help in apprehending Chen and extraditing him to the United States.
Trade in rhinoceros horn, elephant ivory and coral have been regulated since 1976 under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 175 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. Animals listed under CITES cannot be exported from the United States without prior notification to, and approval from, the U.S. Fish & Wildlife Service.
was apprehended as part of Operation Crash, an ongoing effort by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice to detect, deter, and prosecute those engaged in the illegal killing of and trafficking in protected species including rhinoceros and elephants.
An indictment contains allegations that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The investigation is continuing and is being handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement and the Justice Department’s Environmental Crimes Section, with assistance from the U.S. Attorney’s Office for the District of Massachusetts and support on the extradition from DOJ's Office of International Affairs and the U.S. Marshals Services in the District of Massachusetts. The government is represented by Senior Litigation Counsel Richard A. Udell and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
Albuquerque Man Sentenced to Prison for Federal Bank Robbery ConvictionRead the Press Release
ALBUQUERQUE – William Colbert, 38, of Albuquerque, N.M., was sentenced on July 21, 2017, in federal court to 41 months in prison followed by three years of supervised release for his conviction on bank robbery charges.
Colbert and co-defendants Joleen Sedillo, 42, and Abel Lopez, 31, both of Albuquerque, were arrested in July 2016, on a criminal complaint charging them with bank robbery charges. The criminal complaint alleges that Colbert, Sedillo, and Lopez robbed Bank of the West branches located at 5401 Central Ave. NE and 7900 Wyoming Blvd. NE on June 22, 2016 and June 27, 2016, respectively, and attempted to rob the Bank of the West branch located at 5228 Central Ave. SW on July 14, 2016.
Colbert, Sedillo, and Lopez were indicted on Aug. 10, 2016, and charged with conspiracy to commit bank robbery in June and July 2016; bank robbery on June 22, 2016 and June 27, 2016; and attempted bank robbery on July 14, 2016. According to the indictment, the three defendants committed the crimes in Bernalillo County, N.M.
On April 5, 2017, Colbert pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. In entering the guilty plea, Colbert admitted accompanying Sedillo and Lopez to the Bank of the West branches they planned to rob. Colbert further admitted that on July 14, 2016, he entered a Bank of the West branch while disguised with the intent to commit a robbery but left without obtaining any money.
On April 7, 2017, Lopez pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. Under the terms of his plea agreement, Lopez will be sentenced within the range of 27 to 33 months in federal prison followed by a term of supervised release to be determined by the court. A sentencing hearing has yet to be scheduled.
On March 28, 2017, Sedillo pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. Sedillo was sentenced on July 14, 2017, to 27 months in prison followed by three years of supervised release.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
Alaska Man Sentenced to 90 Months for Role in Drug Conspiracy and Money LaunderingRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that Brandon Johnson, 37, was sentenced by Senior U.S. District Judge Ralph R. Beistline to serve 90 months in prison, followed by three years of supervised release, for his role in a drug trafficking conspiracy that brought controlled substances, including heroin and methamphetamine, into Alaska.
Brandon Johnson was indicted with multiple co-conspirators including Hakim Giddins, Shakin Giddins, Markin Giddins, Tara McNutt, Kourtney Davis, and Briana Herndon. According to court documents, from 2014 to 2016, McNutt, Davis, and Herndon opened various mailboxes with Alaska addresses for the purpose of receiving heroin from California. This heroin was received and distributed in Alaska by Hakim Giddins and his co-conspirators. Brandon Johnson himself possessed heroin for distribution. As part of this case, Brandon Johnson also pled guilty to being a felon in possession of a firearm.
During this same time frame, Brandon Johnson and others also entered into an agreement to launder the proceeds obtained from the distribution of drugs brought into Alaska by the conspiracy. The cash proceeds from the sale of these drugs was laundered by making deposits into bank accounts located in Alaska in other people’s names. This money was then withdrawn in California. Cash was also shipped in bulk from Alaska to California. Hakim Giddins directed Brandon Johnson and others to make bank deposits on his behalf with money that he knew had come from drug trafficking. Hakim Giddins believed that by having the deposit made that way it would conceal his connection to the money as well as to the true source of the money.
Brandon Johnson is a twice-convicted felon who came to Alaska from California. In California he was convicted of burglary and imposed a suspended sentence. Shortly thereafter Johnson committed another burglary and was convicted and received a nine year sentence. Johnson later moved to Nevada where he committed another felony grand larceny and burglary.
Multiple conspirators were indicted for criminal conduct related to this drug conspiracy. The following defendants have pleaded guilty to criminal charges and have been sentenced to the following prison terms in the past three month:
• Brandon Johnson, sentenced to 90 months in prison on July 24, 2017
• Hakim Giddins, sentenced to 16 years in prison on May 24, 2017
• Shakin Giddins, sentenced to 6 years in prison on May 25, 2017
• Markin Giddins, sentenced to 5 years in prison on May 16, 2017
• Tara McNutt, sentenced to 42 months in prison on June 8, 2017
• Kourtney Davis, sentenced to 18 months in prison on May 16, 2017
• Briana Herndon, sentenced to 9 months in prison on May 24, 2017
The Alaska case was prosecuted by Assistant U.S. Attorney Stephan A. Collins of the U.S. Attorney’s Office for the District of Alaska, and was investigated by the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), and the Anchorage Police Department (APD).
Sunday 23 July 2017
Statement by United States Attorney Richard L. Durbin, Jr., Regarding Alien Smuggling Incident this MorningRead the Press Release
"San Antonio firefighters and police responded to a horrific scene this morning on the southwest side of town. They discovered an alien smuggling venture gone horribly wrong. Eight immigrants were found dead. At least twenty more were in serious condition. All were victims of ruthless human smugglers indifferent to the well-being of their fragile cargo. The South Texas heat is punishing this time of year. These people were helpless in the hands of their transporters. Imagine their suffering, trapped in a stifling trailer in 100-plus degree heat. The driver is in custody and will be charged. We will work with the Homeland Security Investigations and the local responders to identify those who were responsible for this tragedy."
Richard L. Durbin, Jr. United States Attorney
Western District of Texas
Statement Concerning the Tractor-Trailer of Undocumented Aliens Found in Southwest San Antonio on July 23, 2017Read the Press Release
For clarification the number of persons recovered from the trailer was 39, not the 38 reported earlier. The 39th person had been in the trailer but authorities found him this morning in a wooded area nearby. The number of individuals who have died has risen to nine. All of the deceased are adult males. Thirty others are being treated at area hospitals. At this time, investigators are making efforts to identify the victims and will seek to notify family and next of kin. Officials will not release the identities or alienage of victims until relatives can be notified.
A subject identified as James Mathew Bradley, Jr., age 60, from Clearwater, Florida, is being held in federal custody in connection with this incident. A criminal complaint will be filed in federal court in San Antonio on Monday morning. It is anticipated that Bradley will have an initial appearance shortly after that time.
The Department of Homeland Security/Homeland Security Investigations together with Immigration Customs Enforcement -- Enforcement and Removal Office, the San Antonio Police Department, the San Antonio Fire Department, the Bexar County Sheriff’s Office, the Border Patrol, U. S. Attorney’s Office, and the Bexar County District Attorney’s Office, are continuing the investigation.
Anyone having any information should call the ICE tip line at 866-347-2423. Any persons who were transported in the trailer should immediately seek medical attention.
It is important to note that the filing of a criminal complaint is merely a charge and should not be considered as evidence of guilt. A defendant is presumed innocent until proven guilty in a court of law.
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Saturday 22 July 2017
Hawaii Soldier Indicted for Attempting to Provide Material Support to ISISRead the Press Release
An indictment was returned July 21 charging Ikaika Erik Kang, 34, an Army sergeant first class stationed at Schofield Barracks, Hawaii, with attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Kang was previously arrested on July 8, and ordered detained pending further proceedings.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Elliot Enoki of the District of Hawaii and Special Agent in Charge Paul Delacorte of the FBI’s Honolulu Field Office made the announcement.
The grand jury indictment, which was filed on July 19, charged Kang with four counts of attempting to provide material support to ISIS, based on events that occurred in Hawaii between June 21 and July 8. The indictment and an earlier criminal complaint allege that Kang met with undercover agents of the FBI whom he believed to be affiliated with ISIS and provided military information, some of which was classified at the SECRET level. Kang is also charged with providing property (a drone,s military clothing and equipment) and training (instruction on combat techniques and weapons training which was videotaped for future use by ISIS) to undercover agents whom he believed to be affiliated with ISIS.
Kang will appear in court on July 24, for an arraignment and plea on the charges, at which time a trial date will be scheduled.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted of the charges, Kang faces a maximum of 20 years in prison and up to a $250,000 fine for each count. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI and the U.S. Army Criminal Investigation Division. This case is being prosecuted by Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorneys Ken Sorenson and Marc Wallenstein.
Friday 21 July 2017
Zeta Leader “Talivan” Sent to PrisonRead the Press Release
LAREDO, Texas - Ivan Velasquez-Caballero, aka Talivan or 50, has been sentenced to federal prison for 30 years following his convictions of conspiracy to possess with intent to distribute controlled substances and conspiracy to launder monetary instruments, announced Acting U.S. Attorney Abe Martinez.
Velasquez-Caballero was a plaza boss for Nuevo Laredo in 2004 under the Gulf Cartel and one of the leaders of the Zetas drug cartel from 2005 until his arrest by Mexican authorities in August 2012. He pleaded guilty April 7, 2014.
Today, U.S. District Judge Micaela Alvarez ordered Velasquez-Caballero to federal prison for 360 months and imposed a forfeiture order of $10 million. At the hearing, the court noted that here was sufficient evidence to show that the Zetas were probably responsible for starting the violence that still plagues Mexico today, stating that even though it has morphed into something different now, Velasquez-Caballero had some responsibility for that. Not a U.S. citizen, Velasquez-Caballero is expected to face deportation proceedings following his release from prison.
The charges stem from a Feb. 17, 2010, indictment charging Velasquez-Caballero and 33 others with 47 counts alleging drug conspiracy, kidnapping conspiracy, firearms conspiracy, money laundering conspiracy, conspiracy to kidnap and murder U. S. citizens in a foreign country, use of juveniles to commit a violent crime, accessory after the fact, solicitation, as well as substantive money laundering, drug trafficking and interstate travel in aid of racketeering charges.
At the hearing today, the court also heard from the father of a missing Laredo woman. He stated that Velasquez-Caballero had information about her disappearance and that he would like an opportunity to sit down with him to talk about that matter. While the court was not holding Velasquez-Caballero personally responsible for the murders that were committed in this case, the court noted that he was a ranking member when those murders were ordered. Judge Alvarez recounted each of the murders that were part of the indictment and reflected on the testimony of the mother of one of the victims. The court noted that the mother’s plea for information as to the location of her son’s body so he could be given a proper burial had stuck with the court.
The drug conspiracy involved the importation and distribution of 150 kilograms or more of cocaine and 1000 kilograms or more of marijuana from Mexico into the United States. Millions of dollars in drug proceeds and over 100 firearms were also exported from the United States to Velasquez-Caballero and others in Mexico.
To date, 15 others have been convicted by plea or trial.
Velasquez-Caballero, 47, of Nuevo Laredo, Tamaulipas, Mexico, has been in custody in the U.S. since he was extradited to Laredo on Nov. 21, 2013, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and the Laredo Police Department conducted the Organized Crime Drug Enforcement Task Force investigation with the assistance of Immigration and Customs Enforcement’s BEST task force, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, U.S. Marshals Service, Webb County District Attorney’s Office and the Webb County Sheriff’s Office. Assistant U.S. Attorney José Angel Moreno prosecuted the case.
Westfield Man Indicted for Receipt of Child PornographyRead the Press Release
HAMMOND - Acting United States Attorney Clifford D. Johnson announced that a federal grand jury sitting in Hammond has returned an indictment against William Moit, age 70, who was formerly a resident of Rensselaer, Indiana but now resides in Westfield, Indiana.
According to documents in this case, Moit, who was convicted in Jasper County, Indiana in 2000 for possessing child pornography and contributing to the delinquency of a minor, was charged, in the federal indictment, with receiving child pornography.
If you have any information about Moit’s activities involving children, please contact Task Force Officer Jones at the Federal Bureau of Investigation at 219-942-4900.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of the investigative efforts of the Federal Bureau of Investigation and the Indiana State Police. The case is being prosecuted by Assistant U.S. Attorney Jill R. Koster.
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Venezuelan Sentenced to 16 Months of Time Served following Guilty Plea to Participating in UPMC Employee Data HackRead the Press Release
PITTSBURGH - A citizen of Venezuela pleaded guilty and was sentenced in federal court to time served for conspiring to defraud the United States, Acting United States Attorney Soo C. Song announced today.
Maritza Maxima Soler Nodarse pleaded guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371, before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2014, Soler Nodarse conspired with others to file approximately 935 false form 1040 tax returns using identities belonging to hundreds of UMPC employees whose personal information was stolen in an intrusion into UPMC’s database in Pittsburgh in 2014. Nodarse and others obtained illegal tax refunds in the form of Amazon.com gift cards which they used to purchase hundreds of thousands of dollars of electronic merchandise at Amazon.com and have shipped to locations in Venezuela where Nodarse and others lived. Approximately $156,000 in merchandise was ordered by and shipped to Nodarse. Nodarse was arrested in Colombia in March, 2015, and then extradited to the U.S. to face criminal charges in November, 2016.
According to the terms of her plea, Judge Hornak sentenced Soler-Nodarse to a “time served” sentence, which represented approximately 16 months incarceration. She also agreed to be immediately deported back to Venezuela.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation, the United States Secret Service and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Maritz Maxima Soler Nodarse.
Two Philadelphia Men and Four Vermonters Charged with Conspiring to Distribute Heroin and Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury returned a Superseding Indictment yesterday charging six defendants with conspiracy to distribute controlled substances, including Michael Leslie, aka “Bear,” age 40, of Philadelphia, PA; Marvin Tyrone Crawford, aka “Ty,” age 40, of Philadelphia, PA; Pamela Yandow, aka “Pam,” age 45 of St. Albans, VT; Tannar Yandow, age 20, of St. Albans, VT; Donna Larose, age 56, of St. Albans, VT; and Larnell Cunningham, age 39, of New York, NY.
According to Court documents, the United States alleges that during the conspiracy, Leslie, Crawford, Pamela Yandow, Tannar Yandow, and Larose distributed controlled substances in Franklin County, Vermont. Leslie and Crawford would obtain cocaine and heroin from outside Vermont, and transport the drugs into Vermont by automobile with the assistance of coconspirators. The group used Facebook’s Messenger application to communicate with customers to arrange transactions, and communicate with each other about their drug activities.
Court documents outline the history of the case. On February 9, 2017, Larose was arrested by New York State Police in Fort Ann, NY for criminal possession of a controlled substance. New York State Police encountered Larose during a traffic stop. A search of her vehicle after impoundment resulted in the seizure of approximately 250 grams of suspected powder cocaine, and miscellaneous paperwork bearing the name of Leslie.
On May 23, 2017, a St. Albans Police Department officer conducted a traffic stop of a Chevrolet Impala operated by Cunningham. After obtaining a warrant, the officer searched the vehicle and discovered approximately 130 grams of suspected cocaine base in a Tang drink mix container that had a hidden compartment. Officers also seized a small digital scale, numerous small clear plastic baggies, four cellular telephones, and documents bearing Leslie’s name. Prior to and after May 23, 2017, law enforcement observed Leslie operating the Impala. On May 23, 2017, Cunningham was charged by Criminal Complaint. Cunningham appeared before United States Magistrate Judge John M. Conroy on May 25, 2017, and was subsequently detained pending trial.
On May 24, 2017, an individual assisting law enforcement conducted a purchase of suspected cocaine base from Crawford. During this encounter, Crawford discussed the seizure of cocaine base from Cunningham, and stated “he was supposed to be coming to see me.”
On July 17, 2017, agents with the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives obtained a search warrant for 49 Troy Street, Apartment #1, in Richford, VT. While executing the search warrant, agents encountered Leslie and Crawford at the residence, and both were placed under arrest. Leslie was found in possession of $8,378 of U.S. currency. Agents also seized drug paraphernalia from the residence, including a small digital scale, small empty wax bags, and kitchen utensils believed to contain trace amounts of controlled substances. Agents also located Yandow on July 18, 2017, and placed her under arrest.
On July 18, 2017, Leslie, Crawford, and Pamela Yandow appeared before United States District Court Judge William K. Sessions, and were ordered detained pending detention hearings. Tannar Yandow was also arrested on July 18, 2017, and charged by Criminal Complaint on July 19, 2017. Tannar Yandow appeared before United States District Judge Christina Reiss, and was ordered detained pending a detention hearing.
The United States Attorney emphasizes that the charges contained in the Superseding Indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If Leslie, Crawford, or Pamela Yandow are convicted, they face a mandatory minimum sentence of ten years, and a maximum possible term of imprisonment of life. If Tannar Yandow, Larose, or Cunningham are convicted, they face a mandatory minimum sentence of five years, and a maximum possible term of imprisonment of forty years.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan A. Ophardt. Leslie is represented by Robert Behrens, Esq. Crawford is represented by Marianne Kampmann, Esq. Pamela Yandow is represented by Michael Straub, Esq. Tannar Yandow is represented by Brooks McArthur, Esq. Cunningham is represented by Assistant Federal Public Defender David McColgin, Esq. Larose has not yet appeared in court. The investigation was conducted by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the St. Albans Police Department.
Two Broward County Residents Charged Federally for Being Felons in Possession of FirearmsRead the Press Release
Two Broward County residents have been charged federally with being felons in possession of firearms.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO) announced that the federal arrests of the three individuals stem from a large-scale investigation into narcotics and illicit firearms sales in Broward County.
Marc Randall, 37, and Jonathan Newman, 27, both of Deerfield Beach, were each charged in separate criminal complaints with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g) (Case Nos. 17-6287-Valle and 17-6288, respectively). If convicted, the defendants each face a statutory maximum sentence of ten years in prison. Newman was also charged with possession of a controlled substance with intent to distribute, in violation of Title 21, United States Code, Section 841(a)(1). If convicted of the drug offense, Newman faces a maximum statutory maximum sentence of twenty years in prison.
According to court documents, including the criminal complaints, ATF engaged in a series of recorded firearms purchases from defendants Randall and Newman. On March 27, 2017, Randall sold a 9mm pistol to a confidential informant. Randall has three Broward County convictions for possession of cocaine with intent to distribute.
On February 27, 2017, Newman sold a .38 caliber revolver and crack cocaine to a confidential informant. On June 8, 2017, Newman sold the same informant a .45 caliber, semi-automatic pistol. Newman has been convicted of several felonies, including delivery of cocaine.
Mr. Greenberg commended the investigative efforts of ATF and BSO. These cases are being prosecuted by Assistant U.S. Attorney Anita White.
A criminal complaint is a formal charging document notifying the defendant of the charges. All persons charged by complaint are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Baltimore Police Detectives Plead Guilty to Committing Armed Robberies in Racketeering CaseRead the Press Release
JULY 21, 2017
FOR IMMEDIATE RELEASE Contact AUSA Vickie LeDuc
www.justice.gov/usao/md at (410) 209-4912
Baltimore, Maryland – Baltimore Police Department detectives Evodio Calles Hendrix, age 32, of Randallstown, Maryland, and Maurice Kilpatrick Ward, age 36, of Middle River, Maryland, pled guilty today in federal court to charges of racketeering conspiracy.
The guilty pleas were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to their plea agreements, Hendrix admitted to participating in three robberies from March to August 2016. Ward admitted to participating in four robberies from February through August 2016. Hendrix and Ward also admitted that they were armed with their Baltimore Police Department service firearms during the robberies. Individual victims of the robberies were physically restrained, and the defendants wrote false incident reports and other documents in order to conceal their criminal conduct and otherwise obstruct justice.
For example, on February 17, 2016, Ward and one of his co-defendants stole $500 from an arrestee. Ward then authored a false Baltimore Police Department incident report to conceal the robbery.
Hendrix and Ward admitted that on March 22, 2016, they and two of their co-defendants stole more than $200,000 from a safe they found in the basement of a house they were searching. The four co-defendants then divided the money, and Hendrix and Ward received $20,000 each.
Similarly, on June 24, 2016, while executing a search warrant in a home, Hendrix stole money and later gave a portion to Ward. On August 24, 2016, Hendrix stole money from an arrestee and then gave a portion of the cash to Ward.
Hendrix and Ward also admitted that they and their co-defendants routinely submitted false individual overtime reports, defrauding the Baltimore Police Department and the public. Ward, Hendrix and their co-conspirators falsely certified that they worked their entire regularly assigned shifts, or overtime hours, when they did not. Hendrix and Ward also admitted that they submitted false overtime reports on behalf of their co-defendants, at their co-defendants’ direction, and that their co-defendants submitted false overtime reports on their behalf in return.
Hendrix and Ward admitted that the practice at the police department’s Gun Trace Task Force (GTTF) was that if some of the GTTF members made a gun arrest, all members of the GTTF, regardless of whether they had actually participated in the arrest, would submit individual overtime reports, as if they did, and receive salary and overtime. The GTTF was a specialized unit within the Operational Investigation Division of the Baltimore Police Department, whose members were to track and trace recovered firearms in order to identify and suppress the possession, purchasing, and trafficking of illegal firearms within Baltimore City, and assist with the investigation and prosecution of firearms-related offenses.
U.S. District Judge James K. Bredar has scheduled sentencing for Hendrix on February 20, 2018 at 2:00 p.m., and for Ward on February 21, 2018 at 10:00 a.m.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Two Appear in Court for Sex Trafficking of A MinorRead the Press Release
CORPUS CHRISTI, Texas – A South Texas woman and a former Rockport man have appeared in federal court following their arrests for sex trafficking of a nine-year-old girl, announced Acting U.S. Attorney Abe Martinez.
A grand jury indicted David Keith Wills, 64, now of North Potomac, Maryland, along with Maria Candelaria Losoya, 55, of Brownsville, on June 28, 2017. They were arrested July 14. Today and yesterday, Losoya and Wills made their respective appearances before U.S. Magistrate Judge Janice B. Ellington. At the hearings, the court heard testimony that Wills and Losoya started sexually assaulting a nine-year-old victim in Brownsville in 2012. Wills later moved to Rockport. After that time, the court heard that Losoya traveled with the victim from Brownsville to Rockport so that Wills could continue the abuse in exchange for money, according to the allegations.
Wills was permitted release upon posting a $5 million bond. Losoya’s conditions of release are pending.
The indictment alleges that between Sept. 1, 2012, and April 7, 2015, Wills and Losoya trafficked a minor under the age of 14 for commercial sex using force, fraud or coercion. If convicted, both face a minimum of 15 years and up to life in federal prison as well as a possible $250,000 maximum fine. Upon completion of any prison term imposed, both also face a maximum term of life on supervised release and will be required to register as a sex offender.
Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Rangers and police departments in Brownsville and Rockport conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law
Three Former Police Officers and A Police Officer Charged with Conspiracy to Interfere with Commerce by Robbery and Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On July 20, 2017, a federal grand jury in the District of Puerto Rico returned an indictment against four defendants charged with conspiracy to interfere with commerce by robbery, brandishing firearms during and in relation to a crime of violence, and conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The FBI is in charge of the investigation.
The indictment alleges that on or about September 6, 2013, in the District of Puerto Rico the defendants Manuel Grego-López, José A. López-Sierra, and Christian Valles-Collazo, former police officers and Police Officer Alex Candelaria-Jurado did knowingly and intentionally, combine, conspire, and agree with each other and with diverse other persons known and unknown to the Grand Jury, to commit an offense against the United States, that is, robbery. The defendants robbed more than five kilograms of cocaine from an individual in the presence of his family.
The defendants used an official vehicle and an unmarked vehicle to commit the robbery. They also used their service firearms and represented to have a search warrant and to be acting in an official capacity in order to gain control over the victims. Subsequently, the defendants sold the cocaine they had robbed for personal financial gain.
“Law enforcement officers who use their badges to commit criminal acts disregard their oath to protect and promote the rule of law,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “These defendants acted like the same drug traffickers they were supposed to arrest and investigate, and they chose to become criminals themselves. The U.S. Attorney’s Office will continue to aggressively prosecute individuals who abuse their power to commit federal offenses.”
FBI will continue to dedicate significant resources to ensure that any law enforcement officer who violates their oath and disgraces their badge will be apprehended and dealt with as the criminals they have become. Along with our partners at the U.S. Attorney's Office and the Puerto Rico Police Department, we will do everything in our power to protect the proud history of this department, and to honor the long list of women and men who have dedicated their lives to the service of the people of Puerto Rico." Douglas A. Leff - FBI SAC
Assistant U.S. Attorneys Victor O. Acevedo-Hernández and Max J. Pérez-Bouret are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 17 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Tampa Woman Indicted on Tax Fraud ChargesRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces the arrest and unsealing of an indictment charging Samika Garcia with five counts each of wire fraud and aggravated identity theft in connection with income tax fraud. If convicted on the wire fraud counts, she faces a maximum penalty of 20 years in federal prison for each count, with an additional two-year consecutive sentence for each aggravated identity theft charge.
Garcia was indicted on July 6, 2017, made her initial appearance in federal court yesterday, and was released on bond.
According to the indictment, Garcia electronically filed false and unauthorized tax returns in the names of others claiming fraudulent tax refunds that were deposited on debit cards in those person’s names. In doing so, she unlawfully used those individuals’ personally identifying information (PII), which she tracked using detailed ledgers.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Standing Rock Woman Pleads Guilty to MurderRead the Press Release
States Attorney Randolph J. Seiler announced that Desarae Makes Him First, age 26, of Standing Rock, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on July 20, 2017, and pled guilty to a Superseding Information that charged her with Second Degree Murder.
The maximum penalty upon conviction is up to life in custody, a $250,000 fine, a period of supervised release of 5 years. If Makes Him First is found to have violated a condition of supervised release, she may be incarcerated for an additional term of up to 5 years on any such revocation. A fine of $100 to the Federal Crime Victims Fund and restitution may also be ordered.
The charge stems from an incident between October 11, 2016, and October 12, 2016, when Makes Him First unlawfully aided and abetted in the murder of her daughter, who was five years old at the time of her death.
The investigation was conducted by the Federal Bureau of Investigation, and the Bureau of Indian Affairs, Standing Rock Agency. The case is being prosecuted by Assistant U.S. Attorney Troy R. Morley.
A presentence investigation was ordered and a sentencing date was set for October 30, 2017. Makes Him First was remanded to the custody of the U.S. Marshals Service pending sentencing.
Settlement with Aurora Health Care, Inc. Regarding Allegations of Violations of the Americans with Disabilities ActRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced today that the United States has settled two claims that Aurora Health Care, Inc. (“Aurora”) discriminated against patients with human immunodeficiency virus (“HIV”) in violation of the Americans with Disabilities Act (“ADA”). Aurora operates a health care system that includes 15 hospitals, more than 150 medical clinics, an extensive laboratory system, and 70 pharmacies throughout eastern Wisconsin and northern Illinois.
Title III of the ADA prohibits public accommodations, such as healthcare providers, from discriminating against people with disabilities, including HIV. The Government’s determination of the facts pertaining to both complaints are set forth in the attached Settlement Agreement.
Under the settlement agreement, Aurora will pay $30,000 to Complainant No. 1 and $15,000 to the spouse of Complainant No. 2. Aurora will also pay a civil penalty to the United States in the amount of $15,000. In addition, Aurora has reviewed and revised, as appropriate, its existing non-discrimination and infection disease policies (including those found on its main webpage). Aurora has conducted and will conduct additional training on the ADA, and report to the Government any alleged violations of the ADA along with a complete copy of Aurora’s response to the complaint.
For more information on the ADA, HIV discrimination, and this settlement, visit www.ada.gov/aids. Those interested in finding out more about the obligations of healthcare providers under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
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Santa Fe County Man Pleads Guilty to Violating Federal Firearms LawRead the Press Release
ALBUQUERQUE – Brandon Maestas, 32, of Nambe, N.M., pled guilty today in federal court in Albuquerque, N.M., to violating the federal firearms laws by using and carrying firearms in furtherance of a drug trafficking crime.
Maestas was arrested on March 4, 2016, on a criminal complaint charging him with violating federal drug trafficking and firearms laws. According to the complaint, law enforcement officers found approximately 150 grams of cocaine, marijuana, drug paraphernalia and multiple firearms and ammunition while executing a state search warrant at Maestas’ residence in Nambe, N.M.
Maestas was indicted on March 23, 2016, and charged with drug trafficking and firearms offenses. The indictment, which was superseded on April 11, 2017, charged Maestas with possession of cocaine with intent to distribute, maintaining a residence for the purpose of drug trafficking, unlawful possession of a firearm and ammunition, and possessing firearms in furtherance of a drug trafficking crime. According to the superseding indictment, Maestas committed the crimes on Feb. 19, 2016, in Santa Fe County, N.M.
During today’s proceedings, Maestas pled guilty to Count 4 of the superseding indictment charging him with possessing firearms in furtherance of a drug trafficking crime. In entering the guilty plea, Maestas admitted that on Feb. 19, 2016, he possessed four pistols and multiple rounds of ammunition in relation to a drug trafficking crime, specifically possession of cocaine with intent to distribute.
At sentencing, Maestas faces a mandatory penalty of five years in federal prison. Maestas remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the HIDTA Region III Narcotics Task Force. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.
The HIDTA – High Intensity Drug Trafficking Area – Program is a program of the White House Office National Drug Control Policy (ONDCP) that facilitates cooperation among federal, state, local and tribal law enforcement to foster intelligence sharing and to support the execution of effective enforcement operations aimed at dismantling drug trafficking organization in critical drug trafficking regions of the United States. The HIDTA Region III Narcotics Task Force is comprised of the New Mexico State Police, the Santa Fe County Sheriff’s Office and the Santa Fe Police Department.
Sanford Man Sentenced to 20 Years in Prison for Enticement of A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. sentenced Steven A. Morrill (54, Sanford) to 20 years in federal prison and a lifetime of supervised release for attempting to entice a minor to engage in illicit sexual activity. The Court also ordered him to forfeit a cellphone that had been used in furtherance of the commission of the offense.
Morrill was found guilty on April 18, 2017, after a jury trial.
According to the evidence presented during the trial, between November 8, 2016, and November 17, 2017, Morrill engaged in communications with a Federal Bureau of Investigation agent who was acting in an undercover capacity as the father of two minors, 9 and 11 years old. Morrill expressed his intent to engage both minors in illicit sexual activity, and he traveled to a location in Lake Mary to meet the children. As a result, Morrill was arrested and confessed to the crime.
During the sentencing hearing, the judge found that Morrill had engaged in a pattern of prohibited sexual conduct against minors and emphasized the seriousness of Morrill’s intended offense.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
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 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 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.
San Angelo Man Sentenced to 168 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas —Shaundel Rey Windom, 39, of San Angelo, Texas, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 168 months in federal prison, following his guilty plea in March 2017 to one count of transportation of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, Windom set up a Dropbox account on two separate occasions and uploaded several images and videos of child pornography. At the time Windom transported the files he knew the nature of the files and he knew that the files contained minor children under the age of eighteen.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Tom Green County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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Rutland Man Sentenced to More than Eleven Years for Heroin Distribution ConspiracyRead the Press Release
The United States Attorney for the District of Vermont announced that Jaiden Paige, 37, of Rutland, was sentenced Tuesday in United States District Court in Burlington to 139 months of imprisonment following his guilty pleas to charges of conspiracy to distribute heroin, possession with intent to distribute heroin, and distribution of heroin. Chief U.S. District Judge Christina Reiss also ordered that Paige forfeit more than $8,000, and serve five years of supervised release following completion of his prison term. Paige had been in the custody of the United States Marshals Service since his February 2016 arrest.
Paige, whose previous name was Danny Coombs, pleaded to an Information charging him with conspiring with Kwasi Asante (also of Rutland) and others, to distribute heroin from 2014 to February 2016. Court records indicate that Paige and Asante operated a construction company and paid at least one of their employees in heroin. Court records also indicate Paige and Asante utilized others to test the heroin the defendants would consider acquiring for re-distribution in Vermont.
Asante has pleaded guilty and is awaiting sentencing.
This was Paige’s second federal felony conviction. He had also been convicted of felonies in New York and Vermont state courts.
This case was investigated by the Vermont State Police, the FBI, and the Drug Enforcement Administration.
Paige is represented by Lamar Enzor. The prosecutor is Assistant U.S. Attorney Michael Drescher.
Rosebud Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on July 17, 2017, by U.S. District Judge Roberto A. Lange.
Ronald Red Tomahawk, age 31, was sentenced to 12 months and 1 day in prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Red Tomahawk was indicted by a federal grand jury on February 15, 2017. He pled guilty on April 24, 2017.
The conviction stemmed from an incident that occurred in St. Francis, South Dakota, on September 25, 2016, wherein Rosebud Sioux Tribe Police Officers were arresting Red Tomahawk on an outstanding warrant. Red Tomahawk was intoxicated and became violent with the officers as they attempted to place him in wrist restraints.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Red Tomahawk was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Charged for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Anthony Farmer, age 33, was indicted on July 11, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 19, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Farmer was convicted of Abusive Sexual Contact with a Child in June 2010. As a result of this conviction, he is required to register as a sex offender. It is alleged that between May 22, 2017, and June 16, 2017, Farmer, a person required to register under the Sex Offender registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a s sex offender.
The charge is merely an accusation and Farmer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Farmer was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rapid City Man Charged with Illegally Possessing FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Colby Dean Hutchinson, age 50, was charged on February 23, 2016. He appeared before U.S. Magistrate Judge Daneta Wollmann on July 14, 2017, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Hutchinson, a previously convicted felon, being in possession of a .357 magnum revolver. The charge is merely an accusation and Hutchinson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennington County Sheriff’s Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Hutchinson was detained pending further hearing. A trial date has not been set.
Rapid City Man Charged for Sexually Exploiting MinorsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man was charged in federal district court with four counts of Sexual Exploitation of a Minor.
Chance Garrett Williams, age 27, was charged on June 20, 2017. Williams appeared before U.S. Magistrate Judge Daneta Wollmann on July 11, 2017, and pleaded not guilty to the charges. The penalty upon conviction is 15 to 30 years of imprisonment and/or a $250,000 fine, a minimum of 5 years up to lifetime supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Williams sexually exploiting three minor females via his cell phone between January 2012 and January 2017. The charges are merely an accusation and Williams is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Taskforce and the Rapid City Police Department. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Williams was detained pending further hearing. A trial date has not been set.
RGV Pharmacy Owner and Marketer Arrested in Connection with Health Insurance Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The owner of Penitas Family Pharmacy aka Riverside Pharmacy and a marketer employed by the pharmacy have been indicted in connection with a scheme to defraud Blue Cross and Blue Shield of Texas, announced Acting United States Attorney Abe Martinez.
A federal grand jury returned a 16-count sealed indictment against Omar Espericueta and Oscar Elizondo on July 18, 2017. It was unsealed in its entirety this afternoon as Elizondo, 47, of Pharr, turned himself in to authorities. He is expected to make his initial appearance before Judge Peter Ormsby Monday, July 24, 2017, at 10:30 a.m. The owner of the pharmacy - Espericueta, 45, of Mission - was taken into custody Thursday and made his initial appearance today before U.S. Magistrate Judge Dorina Ramos.
Both are charged with conspiracy to commit health care fraud, seven counts of health care fraud and six counts of aggravated identity theft.
According to the indictment, the scheme involved submitting more than $1.7 million in fraudulent claims to Blue Cross and Blue Shield of Texas for expensive pain patches and scar creams. The defendants allegedly targeted employers that carry employee health insurance through Blue Cross, such as the City of Mission, City of Pharr, Frontera Produce and Point Isabel Independent School District, among others. Working with contacts at those entities, Elizondo and other marketers offered meals, drinks and promises of “free” prescription pain patches and scar creams to entice employees to turn over their insurance information, according to the indictment. The insurance information and fraudulent prescriptions were then allegedly used to submit fraudulent and medically unnecessary claims to Blue Cross.
Many employees never received any pain patches or scar creams or saw a doctor to obtain a valid prescription, according to the charges. Other employees saw a doctor, but it was a doctor to whom Espericueta was allegedly paying kickbacks in the form of cash, loans and prescription drugs. The indictment further alleges that in some instances, the defendants set up a temporary office for the doctor in a vacant office or a rented recreational vehicle near the restaurant where they solicited employees for the sole purpose of writing fraudulent prescriptions.
Conspiracy to commit health care fraud and health care fraud carry a maximum punishment of 10 years in federal prison and a possible $250,000 maximum fine upon conviction. A convicted for aggravated identity theft carries a mandatory two‐year additional prison term which must be served consecutively to any other prison sentence imposed.
The FBI, Mission Police Department, Texas Department of Insurance – Fraud Unit and Texas Health and Human Services Commission conducted the investigation. Assistant United States Attorney Andrew Swartz is prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.