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Friday 14 July 2017
Two New Bedford Men Sentenced for Heroin TraffickingRead the Press Release
BOSTON – Two New Bedford residents were sentenced yesterday in federal court in Boston for their roles in a wide-ranging conspiracy that distributed heroin throughout Bristol County, Mass., and Providence, R.I.
Eric Desousa, 26, and Tyson Depina, 40, were sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to three years in prison and four years of supervised release and six years in prison and four years of supervised release, respectively. In April 2017, Desousa pleaded guilty to conspiracy to distribute and possess with intent to distribute heroin and three counts of possession of heroin with the intent to distribute; and Depina pleaded guilty to conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and three counts of possession of heroin with the intent to distribute.
In the spring of 2016, Depina began receiving heroin from Desousa. On April 14, 2016, investigators watched Desousa distribute heroin to Depina. Depina was arrested after the sale, but during the arrest process, Depina fled and attempted to destroy the drugs. An officer in pursuit of Depina became covered in the heroin that Depina attempted to destroy, and was taken to the hospital as a result. A subsequent lab test confirmed that the heroin seized from Depina was a mixture of heroin and fentanyl, a drug that is deadly to touch or inhale, and for which only two milligrams can be lethal.
On June 6, 2016, investigators watched as Desousa attempted to deliver heroin to a customer in New Bedford. Desousa was arrested and a search of his home in New Bedford resulted in the seizure of nearly 300 grams of a mixture of heroin and fentanyl and more than $8,000 in cash.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Fall River Police Chief Daniel S. Racine; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Two More Sentenced and Four More Plead Guilty to Charges Arising Out of ATF-Led Operation Targeting Drug Trafficking and Firearms Crime in Bernalillo CountyRead the Press Release
ALBUQUERQUE – In Aug. 2016, a multi-agency investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) concluded with the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. To date, 65 of the 104 defendants charged as the result of this investigation have entered guilty pleas and 29 of them have been sentenced.
The following Albuquerque residents recently entered guilty pleas in federal court in Albuquerque, N.M.:
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Brandon Jason Hunt, 27, pled guilty to cocaine trafficking charges on July 6, 2017. Under the terms of his plea agreement, Hunt will be sentenced to a year and a day in prison. However, if the court determines that Hunt is a career offender, he will be sentenced to 96 months in prison.
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Margarito Ruiz, 36, pled guilty to methamphetamine trafficking charges on July 6, 2017.
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Cody Jones, 32, and Dustin Swint, 30, each pled guilty to methamphetamine trafficking charges on July 13, 2017.
In addition, the following two Albuquerque residents were sentenced:
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Mikai Cropsey, 42, was sentenced on July 11, 2017, to 51 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
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Adrian D. Hammond, 30, was sentenced on July 13, 2017, to 36 months in prison followed by three years of supervised release for being a felon in possession of a firearm.
These six defendants were amongst the 104 who were charged as the result of the investigation that began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Hunt was arrested in Oct. 2016, on an indictment charging him with distributing cocaine on May 5, 2016, and June 1, 2016, and being a felon in possession of a firearm on May 19, 2016. Hunt was prohibited from possessing firearms or ammunition because of his prior felony convictions for aggravated battery with a deadly weapon and attempt to commit an aggravated burglary. According to the indictment, Hunt committed the offenses in Rio Arriba County, N.M. On July 6, 2017, Hunt pled guilty to distributing cocaine and admitted that on May 5, 2016, he distributed cocaine to an undercover law enforcement agent. A sentencing hearing is currently scheduled for Oct. 5, 2017.
Hunt was arrested in Jan. 2017, on an indictment charging him with distributing methamphetamine on May 23, 2016, and being a felon in possession of a firearm on May 25, 2016. was prohibited from possessing firearms or ammunition because of his prior felony convictions for possession of a controlled substance and shoplifting. According to the indictment, committed the offenses in Bernalillo County, N.M. On July 6, 2017, pled guilty to a methamphetamine trafficking charge, and admitted that on May 23, 2016, he distributed approximately two ounces of methamphetamine to an undercover law enforcement agent. At sentencing, faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
Jones and Swint were arrested in Aug. 2016, on an indictment charging the two men with participating in a methamphetamine trafficking conspiracy and distributing methamphetamine on May 16 and 17, 2016. The indictment also charged Jones alone with distributing methamphetamine on June 6, 2016, June 7, 2016, and June 15, 2016. According to the indictment, Jones and Swint committed the crimes in Bernalillo County. On July 13, 2017, Jones and Swint each pled guilty to methamphetamine trafficking charges and admitted that on May 17, 2016, they conspired to distribute approximately two ounces of methamphetamine to an undercover law enforcement agent. At sentencing, Jones and Swint each face a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. Sentencing hearings have yet to be scheduled.
Cropsey and his codefendant Bernadette Aurora Tapia, 49, also of Albuquerque, were arrested in Aug. 2016, on an indictment charging them with conspiracy and distribution of methamphetamine on June 14, 2016, in Bernalillo County. On Dec. 22, 2016, Cropsey pled guilty to conspiracy and admitted that on June 14, 2016, he agreed with another person to sell methamphetamine to a person Cropsey believed was a drug customer.
Hammond was charged in a criminal complaint on June 27, 2016, with being a felon in possession of a firearm and ammunition on June 26, 2016, in Bernalillo County. Hammond was subsequently indicted on the same charge on July 12, 2016. According to the indictment, Hammond was prohibited from possessing firearms or ammunition because of his prior felony convictions for theft by taking, obstruction of law enforcement officer, being a felon in possession of a firearm, false imprisonment and aggravated assault with a deadly weapon. On April 12, 2017, Hammond pled guilty to the indictment and admitted that he was prohibited from possessing firearms or ammunition on June 26, 2016, because of his status as a convicted felon.
The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case against Hunt. Assistant U.S. Attorney Eva M. Fontanez is prosecuting the case against Ruiz. Assistant U.S. Attorney Rumaldo A. Armijo is prosecuting the case against Jones and Swint. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case against Cropsey. Assistant U.S. Attorney Presiliano Torrez prosecuted the case against Hammond.
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Two KC Residents Plead Guilty to K2 Conspiracy, Must Forfeit $10.5 MillionRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that two former Kansas City, Mo., residents pleaded guilty in federal court today to their roles in a $10.5 million conspiracy to distribute synthetic cannabinoids, commonly referred to as K2, to customers nationwide.
Derek A. Williams, 35, and Ashli Adkins, 31, both of Laguna Beach, Calif., but formerly of Kansas City, each pleaded guilty before U.S. District Judge Stephen R. Bough to one count of conspiracy to mislead by causing the introduction of misbranded drugs into interstate and foreign commerce and one count of conspiracy to commit money laundering.
Williams and Adkins admitted they sold at least 2,000 kilograms of synthetic cannabinoids during the conspiracy. Under the terms of today’s plea agreement, Williams and Adkins must forfeit to the government their Laguna Beach residence, a $10.5 million money judgment (including nearly $3.4 million seized by federal agents during the investigation), a 2011 Ford F-150, a Glock 9mm pistol, a Walther .22-caliber pistol, a Mossberg 12-gauge shotgun and a Bushmaster .223-caliber rifle.
Williams and Adkins admitted that they participated in a conspiracy to market synthetic cannabinoids, which were misbranded drugs because their labeling was false and misleading, from March 1, 2011, to Nov. 27, 2012.
Labeling identified the products as “incense,” and “not for human consumption,” and failed to bear adequate directions for use. Synthetic cannabinoid products were packaged in foil packets and sold at retail establishments throughout the United States under the brand name “SynIncense.” Williams and Adkins admitted they used the term “incense” in the product brand name when, in fact, his “SynIncense” products were synthetic cannabinoids intended for consumption in order to obtain a physiological effect of a “high.”
Each of the synthetic cannabinoid products was misbranded in at least one of the following respects:
a. The synthetic cannabinoid products’ labeling did not bear adequate directions for use;
b. The synthetic cannabinoid products had false and misleading labeling in that they were labeled in a manner indicating they were not for human consumption when, in fact, the synthetic drugs were intended for human consumption; and
c. The synthetic cannabinoid products did not bear a label containing the name and place of the business, the manufacturer, packer or distributor.
Williams and Adkins sold synthetic cannabinoids to an unindicted co-conspirator doing business as Main Stop in Neosho, Mo., who then resold the misbranded drugs to consumers. They also shipped or transported misbranded synthetic cannabinoids to another unindicted co-conspirator, doing business at the website Commonscents.com, who then resold the misbranded drugs to consumers.
Williams and Adkins also admitted that, from March 1, 2011, to July 8, 2012, they participated in a money-laundering conspiracy that involved financial transactions of funds derived from criminal activity.
Williams and Adkins are among four defendants who have pleaded guilty in this case. Co-defendant Daniel R. Williams, 31, of Kansas City, was sentenced to three years in federal prison without parole. Co-defendant Charidy Blankenship, 31, of Kansas City, has also pleaded guilty and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly and Special Assistant U.S. Attorney Matt Moeder. It was investigated by the U.S. Drug Enforcement Administration and IRS-Criminal Investigation.
Tobacco Distributor Sentenced for Multi-Million Dollar Tax Evasion SchemeRead the Press Release
BOSTON – A Hopkinton man was sentenced today in federal court in Boston for evading federal income taxes and defrauding the Commonwealth of Massachusetts of millions of dollars in connection with the sale of cigarettes and other tobacco products.
Raza Ali, 56, of Hopkinton, was sentenced by U.S. District Court Judge William G. Young to a year and a day in prison and two years of supervised release. Ali was also ordered to pay a fine of $30,000; restitution to the Commonwealth of Massachusetts in the amount of $28,072,946; and forfeit all property involved in the offense, including a warehouse-full of tobacco products and over $160,000 seized during the investigation. In May 2016, Ali pleaded guilty to one count of conspiring to commit wire fraud and launder money and one count of making a false statement on a federal income tax return. In December 2015, Ali was arrested and charged with co-conspirators Kaleem Ahmad and Muhammad Saleem Iqbal.
Ali, Iqbal and Ahmad operated a wholesale business under the names “Pick N Dip” and, later, “MSI Distributors” in Norwood, Mass., that sold tobacco products, including cigars, smoking tobacco and smokeless tobacco (such as snuff and chewing tobacco), to convenience stores, gas stations and other retail businesses.
Wholesalers of smokeless tobacco are licensed by the Massachusetts Department of Revenue and must file an excise tax form monthly and pay excise tax on smokeless tobacco brought into and sold in Massachusetts. Cigar and smoking tobacco wholesalers must file an excise tax form quarterly and pay excise tax on cigars and smoking tobacco brought into and sold in Massachusetts.
In order to evade tobacco taxes, the defendants repeatedly purchased tens, and sometimes hundreds of thousands, of dollars at a time of smoking tobacco, smokeless tobacco and cigars in Pennsylvania, where no taxes are imposed on these products. They then covertly transported the products to Massachusetts for resale without filing the reports required by state and federal law and without paying excise taxes.
Ali, Iqbal and Ahmad accepted payments for the tobacco products primarily in cash. They made and directed multiple bank deposits of cash from the business in amounts less than $10,000 to create the false appearance that the total amount being deposited fell below the amount they knew that banks were required to report to the U.S. Treasury Department. They then repeatedly transported cash in excess of $50,000 at a time generated by the sale of untaxed cigars, smoking tobacco and smokeless tobacco products in Massachusetts to Pennsylvania, where the money was used to purchase additional untaxed tobacco products.Ahmad was sentenced to two years in prison and Iqbal was sentenced to 42 months in prison.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and David W. Hall, Special Agent in Charge of the Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. The Norwood Police Department provided valuable assistance in the investigation. Assistant U.S. Attorney Stephen P. Heymann of Weinreb’s Economic Crimes Unit prosecuted the case.
Surgical Practice Office Manager’s Boyfriend Sentenced to Nearly 6 Years in Prison for Embezzlement ConspiracyRead the Press Release
BIRMINGHAM – A federal judge this week sentenced a Mississippi man to nearly six years in prison for conspiring with his girlfriend to steal more than $1 million from the Birmingham surgical practice where she worked, announced Acting U.S. Attorney Robert O. Posey and FBI Acting Special Agent in Charge David W. Archey.
U.S. District Court Judge Madeline Hughes Haikala sentenced ANTHONY T. MICHAEL, 43, of Jackson, Miss., to five years and 10 months in prison for conspiracy, bank fraud and aggravated identity theft. Michael pleaded guilty to the charges in March. The judge ordered him to pay $1.2 million in restitution and to forfeit the same amount to the government as proceeds of illegal activity.
Michael conspired with Anntwine Moss, 51, of Bessemer, to steal from Thoracic and Cardiovascular Surgery of Alabama between 2006 and 2013. Moss was office manager for the practice during that time and she and Michael were romantically involved.
U.S. District Court Judge Karon O. Bowdre sentenced Moss in May to three years and five months in prison on five counts of wire fraud and four counts of tax evasion in the case. The judge ordered Moss to pay $987,375 in restitution to the practice and to forfeit the same amount to the government.
According to court documents, Moss stole from the surgical practice by using her authority as office manager to write unauthorized checks to herself and to Michael, make unauthorized direct deposits into her account, and use the company's credit cards for unauthorized personal purchases for herself and Michael. Moss had authority over several key functions at the surgical practice including payroll, accounting, bookkeeping and managing the office's budget. She falsified her personal tax returns for several years by failing to report to the IRS the illicit income she stole from the practice.
The FBI and IRS investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. prosecuted.
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Statement by Attorney General Jeff Sessions on the Hawaii District Court’s DecisionRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the Hawaii District Court’s decision:
“Once again, we are faced with a situation in which a single federal district court has undertaken by a nationwide injunction to micromanage decisions of the co-equal Executive Branch related to our national security. By this decision, the district court has improperly substituted its policy preferences for that of the Executive branch, defying both the lawful prerogatives of the Executive Branch and the directive of the Supreme Court.
"The district court has issued decisions that are entrusted to the Executive Branch, undermined national security, delayed necessary action, created confusion, and violated a proper respect for separation of powers. The Supreme Court has had to correct this lower court once, and we will now reluctantly return directly to the Supreme Court to again vindicate the rule of law and the Executive Branch’s duty to protect the nation.”
St. Croix National Guard Member Sentenced to 18 Months in Federal Prison forWire Fraud, Theft of Government Money, and Making a False Statement to the GovernmentRead the Press Release
St. Croix, USVI – On July 13, 2017, Lt. Col. Kenneth Alleyne, of St. Croix, was sentenced to 18 months in prison and one year of supervised release for wire fraud, theft of government money, and making a false statement to the government, Acting United States Attorney Joycelyn Hewlett announced. District Court Chief Judge Wilma A. Lewis also ordered Alleyne to pay a $10,000 fine, a $4,400 special assessment, and $58,999.35 in restitution to the Virgin Islands National Guard. Alleyne was remanded into the custody of the U.S. Marshals to begin serving his sentence.
On September 30, 2016, a federal jury on St. Croix found Alleyne guilty of 42 counts of wire fraud, theft of government money, and making a false statement to the government. Evidence presented at trial established that from on or about May 1, 2010, to on or about February 28, 2012, Alleyne unlawfully obtained monthly Overseas Housing Allowance payments to pay his rent. The evidence established that Alleyne was not entitled to receive the payments because he did not have any rent payments and that he lied to federal agents to cover up the fraud. At sentencing, Chief Judge Lewis also found that Alleyne had engaged in the same criminal conduct since 2005.
"This sentence should stand as a strong warning to those tempted to defraud the U.S. government," Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit said. "Our agents, along with our law enforcement partners, will pursue all forms of fraud, waste, and abuse."
This case was investigated by the U.S. Army CID –Major Procurement Fraud Unit and Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Anna A. Vlasova and Criminal Chief Christian A. Fisanick.
Southern District of Georgia Announces Participation in National Health Care Fraud TakedownRead the Press Release
SAVANNAH, GA: On Thursday, Attorney General Jeff Sessions and Department of Health and Human Services (“HHS”) Secretary Tom Price, M.D., announced the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants across 41 federal districts, including 115 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $1.3 billion in false billings. Of those charged, over 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.
The operation also highlighted the great work being done by the Department of Justice’s Civil Division. In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2.5 billion in judgments and settlements related to matters alleging health care fraud. In addition, HHS has initiated suspension actions against 295 providers, including doctors, nurses and pharmacists.
The Department of Justice’s nationwide enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG. In addition, the operation includes the participation of the DEA, DCIS, and State Medicaid Fraud Control Units. Thirty state Medicaid Fraud Control Units also participated. The operation focused on unlawful distribution of prescription narcotics, like opioids, and holding medical professionals responsible accountable for their wrongdoing.
As part of this national enforcement action, the United States Attorney’s Office for the Southern District of Georgia announced the following enforcement actions:
The United States filed a Criminal Information against Sherry McCormick alleging one count of Health Care Fraud. In the information, the United States alleged that from 2013 to 2015, McCormick defrauded Medicare, Tricare, and the Federal Employee Health Benefit Program of approximately $500,000 by submitting and causing the submission of fraudulent claims for medications that were not medically necessary and not prescribed by a doctor.
The United States reached a civil settlement with Allcare Pharmacy, a pharmacy operating out of Lyons, Georgia, totaling $175,000. Based on the actions of its former employee, McCormick, the United States contended that Allcare Pharmacy submitted claims and received payment for prescriptions for compounded medications that were not medically necessary and not prescribed by a doctor.
The United States intervened for the purposes of civil settlement in a qui tam filed against Atlantic Foot & Ankle, P.C., a physician practice previously operating out of several locations in Georgia, as well as an owner of the practice, Melissa Robitaille, D.P.M. The United States contended that Atlantic Foot & Ankle and Dr. Robitaille submitted claims and received payment for services that did not qualify for payment by misrepresenting the services actually rendered.
The United States reached a civil settlement with Ramachandra Paidi, M.D., a physician practicing out of Vidalia, Georgia, totaling $303,950. The settlement resulted from an investigation by the Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), the State of Georgia, and the United States Attorney’s Office for the Southern District of Georgia. Based on its investigation, the United States contended that, on several occasions, Dr. Paidi submitted claims to Medicare and Medicaid for psychotherapy services for twenty-four (24) hours or more of services in any given day.
The United States reached a civil settlement with Andrea Chancey, a physician assistant residing in Augusta, Georgia, totaling $10,000. The settlement resulted from an investigation by the DEA and the United States Attorney’s Office for the Southern District of Georgia. Based on its investigation, the United States contended that, acting in concert with a physician, Andrea Chancey dispensed Schedule II controlled substances without legal authority using pre-signed prescriptions.
The United States reached a civil settlement with Medical Center Pharmacies, based out of Statesboro, Georgia, and its owners, totaling $85,000. The settlement resulted from an investigation by the DEA and the United States Attorney’s Office for the Southern District of Georgia. Based on its investigation, the United States contended that Medical Center Pharmacies and certain pharmacists violated the Controlled Substances Act by negligently failing to make, keep, or furnish certain records regarding highly addictive Schedule II controlled substances, including opioids, as required by federal law.
The United States reached a civil settlement with Medical Villa Apothecary, based out of Augusta, Georgia, and certain pharmacists, totaling $75,000. The settlement resulted from a joint investigation by HHS-OIG, DEA, and the United States Attorney’s Office for the Southern District of Georgia. Based on its investigation, the United States contended that Medical Villa Apothecary and certain pharmacists violated the False Claims Act by submitting claims to Medicare for drugs that it did not dispense to patients. The United States further contended that Medical Villa Apothecary violated the Controlled Substances Act by negligently failing to make, keep, or furnish certain records regarding highly addictive Schedule II controlled substances, including opioids, as required by federal law.
The United States recently announced a civil settlement Rhine Drug Company, based out of Rhine, Georgia, and its owner, totaling $2,175,000, which involved similar allegations.
Acting United States Attorney James Durham said, “The Office will continue to hold accountable those who take advantage of federal health care programs and those who fail to act responsibly when prescribing or safeguarding opioids. Any such fraudsters or hucksters should steer clear of our district, or else expect to face jail time and substantial financial penalties for their acts.”
“Through our Medicaid Fraud Control Unit, our office will continue coordinating with federal partners to safeguard the integrity of Georgia’s Medicaid program,” said Attorney General Chris Carr. “Improper billing inflates costs and causes unnecessary waste in our healthcare system, and we remain dedicated to seeking out and eliminating these issues on behalf of our citizens.”
“We expect doctors and other medical professionals who bill Medicare and Medicaid to provide quality services to those served by the programs, not rip off scarce government health care funds," said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services, Office of Inspector General. “Coordinating with our law enforcement partners, our agents work hard to ensure those who steal from federal health care programs are brought to justice.”
"The top priority of the Defense Criminal Investigative Service is to preserve the integrity of critical Department of Defense programs, such as primary health care for our Warfighters and their families,” said John F. Khin, Special Agent in Charge, DCIS - Southeast Field Office. "DCIS will vigorously pursue and thoroughly investigate any health care provider or contractor who submits false or fraudulent claims to the DoD, so that limited tax payer dollars can be better spent on the most urgent needs for our national defense.”
The cases announced today were investigated by HHS-OIG Special Agents Martin Rowe and David Graupner; DCIS Special Agents Randall Temples and Mark Lewis; DEA Diversion Investigators Josh Barnes, Saul Melendez, George Taylor, Dwayne Jeffcoat, and George Zuban; Investigator Kimberly Reinken-Creamer of the United States Attorney’s Office, Southern District of Georgia; and Law Clerk Alison Slagowitz of the United States Attorney’s Office, Southern District of Georgia; Investigative Auditor Denise Colson and Investigator Kevin White. The United States was represented by Assistant United States Attorneys Shannon Statkus, Tricia Rhodes, Scarlett Nokes, J. Thomas Clarkson, Jason Blanchard, Anica Jones, and Bradford Patrick. The State of Georgia was represented by James Mooney. For additional information, please call the United States Attorney’s Office at (912) 201- 2522.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty. The claims resolved by civil settlements are allegations only; there has been no determination of liability. Investigations remain ongoing as to others arising out of these announced actions.
Social Security Disability Lawyer Sentenced to 12 Years in Prison for Role in More Than $550 Million Social Security Fraud SchemeRead the Press Release
A social security disability lawyer was sentenced today in federal court for his role in a scheme to fraudulently obtain more than $550 million in federal disability payments from the Social Security Administration (SSA) for thousands of claimants.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky Field Division; Special Agent in Charge Tracey D. Montaño of the Internal Revenue Service Criminal Investigation (IRS-CI) Nashville, Tennessee, Field Office; and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Atlanta Regional Office made the announcement.
Eric Christopher Conn, 56, of Pikeville, Kentucky, was sentenced by U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky to 12 years in prison, and to pay restitution in an amount in excess of $106 million to the SSA and HHS. Conn pleaded guilty to one count of theft of government money and one count of payment of gratuities. On June 2, Conn fled from federal custody and remains a fugitive. He was not present for his sentencing hearing.
According to the plea, from October 2004 to April 6, 2016, Conn participated in a scheme with former SSA administrative law judge David B. Daugherty and multiple doctors that involved the submission of thousands of falsified medical documents to the SSA. As a result of the scheme, Conn and his co-conspirators obligated the SSA to pay more than $550 million in lifetime benefits to claimants for these fraudulent submissions.
According to the plea, Conn is an attorney whose firm in Floyd County, Kentucky, focused for more than 20 years primarily on representing individuals seeking Social Security disability benefits throughout Kentucky and elsewhere. According to documents filed in connection with the guilty plea, Conn admitted that from December 2004 through April 2011, he paid Daugherty approximately $10,000 a month to award disability benefits to claimants for whom Conn submitted falsified medical documents.
As part of his plea, Conn admitted that he submitted the falsified medical documents, and Daugherty authored decisions granting disability benefits, in well over 1,700 claimants’ cases. Conn admitted that he paid medical professionals to sign medical forms that he fabricated before evaluations of claimants took place. According to the plea, Conn routinely prepared and medical professionals, such as clinical psychologist Alfred Bradley Adkins, signed evaluation reports indicating that claimants had limitations considered disabling by the SSA, irrespective of the claimants’ actual physical or mental conditions. Conn admitted that he received more than $5.7 million in representative fees from the SSA based upon these fraudulent claims.
Conn was indicted last year, along with Daugherty and Adkins. They were charged with conspiracy, fraud, false statements, money laundering and other related offenses in connection with the scheme, and that indictment remains pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Daugherty pleaded guilty on May 12 to a two-count information charging him with receipt of illegal gratuities. On June 12, Adkins was convicted after a jury trial of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud and one count of making false statements. Both Daugherty and Adkins are awaiting sentencing.
The SSA-OIG, FBI, IRS-CI and HHS-OIG are investigating the case. Trial Attorney Dustin M. Davis of the Criminal Division’s Fraud Section and Trial Attorney Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case, with previous co-counsel including Assistant U.S. Attorney Trey Alford of the Western District of Missouri and Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
Senior Executives of Medical Drug Re-Packager Plead Guilty to Defrauding Healthcare ProvidersRead the Press Release
Earlier today, in federal court in Brooklyn, Gerald Tighe, the president and owner of Med Prep Consulting Inc. (Med Prep), and Stephen Kalinoski, its director of pharmacy and registered pharmacist-in-charge, pleaded guilty to wire fraud conspiracy in connection with their operation of the now-defunct Tinton Falls, New Jersey-based medical drug re-packager and compounding pharmacy. The pleas were entered before United States District Judge I. Leo Glasser.
The guilty pleas were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Mark McCormack, Special Agent-in-Charge of the U.S. Food and Drug Administration’s Office of Criminal Investigations, Metropolitan Washington Field Office (FDA/OCI).
According to court filings and facts presented during the plea proceeding, Med Prep processed numerous drugs, including oncology and dialysis drugs, pain medications, anesthesia drugs, and operating room drugs, in purportedly aseptic conditions. In an effort to gain market share, Med Prep repeatedly misrepresented to its customers, who consisted of hospitals and other healthcare providers, that it adhered to, and in some areas exceeded, industry standards and laws applicable to sterile drug preparation. In fact, Med Prep produced drugs in a facility that fell far short of basic industry standards of cleanliness, creating a risk to the health of already ill patients. Tighe and Kalinoski lied to healthcare providers about Med Prep’s failures to comply with basic sterility practices. Med Prep halted its production of drug products in the summer of 2013, following an incident in which it had distributed intravenous drugs containing visible mold to a Connecticut hospital.
"Today's guilty pleas mark an important step in our continuing effort to hold accountable those who pursue corporate profits over the health and safety of vulnerable patients suffering from disease,” said Acting United States Attorney Rohde. In announcing the guilty plea, Ms. Rohde gratefully acknowledged the assistance and cooperation of the United States Department of Health and Human Services, Office of the Inspector General, Office of Investigations; the United States Office of Personnel Management, Office of the Inspector General; the Department of Justice, Civil Division, Consumer Protection Branch and Commercial Litigation Branch; the FDA’s Office of the Chief Counsel; the Office of the Attorney General of New Jersey; and the New Jersey Board of Pharmacy.“Producing unsafe and contaminated drugs poses a serious threat to the U.S. public health and cannot be tolerated,” stated FDA/OCI Special Agent-in-Charge McCormack. “The FDA remains fully committed to aggressively pursuing those who place unsuspecting American consumers at risk by distributing adulterated drugs.”
The sentencing, Tighe and Kalinoski each face up to five years in prison, a fine and the forfeiture of criminal proceeds. They will also be required to make full restitution to their victims.The case is being prosecuted by Assistant United States Attorneys Alixandra E. Smith, Ameet B. Kabrawala and Erin E. Argo.
The Defendants:
GERALD TIGHE
Age: 59
West Long Branch, New Jersey
STEPHEN KALINOSKI
Age: 53
Middletown, New Jersey
E.D.N.Y. Docket No. 15-CR-62 (ILG)
San Juan County Felon Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Justin Krantz, 32, of Aztec, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 57 months in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition.
Krantz arrested in Nov. 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on May 4, 2016, in San Juan County, N.M. According to the indictment, Krantz was prohibited from possessing firearms or ammunition because of his prior conviction on drug trafficking charges.
On April 11, 2017, Krantz pled guilty to the indictment and admitted that on May 4, 2016, he was in possession of a firearm and ammunition. Krantz further admitted that he was prohibited from being in possession of firearms or ammunition because of his prior felony convictions.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the San Juan County Sheriff’s Office. Assistant U.S. Attorney Eva Fontanez prosecuted the case.
Richmond Man Sentenced to 30 Years for Gun and Drug CrimesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 30 years in prison for gun and drug trafficking crimes.
Daymont Underwood, 31, was convicted by a federal jury of possession of a firearm by a convicted felon, possession with the intent to distribute marijuana, and possession of a firearm in furtherance of a drug trafficking crime on April 5. According to court records and evidence presented at trial, Daymont Underwood, 31, of Richmond, was pulled over by the Richmond Police on Oct. 20, 2015, for a traffic violation. Underwood attempted to flee on foot and engaged in a struggle with officers. During the struggle, a loaded .45 caliber handgun fell from Underwood’s waistband. A search of Underwood’s vehicle revealed 78 grams of high-grade marijuana, a digital scale, and sandwich baggies. Law enforcement later determined that Underwood was a convicted felon.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Alfred Durham, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-18.
Pueblo Man Sentenced in Murder for Hire PlotRead the Press Release
DENVER – Ricardo Estevan Suazo, age 27, of Pueblo, Colorado, was sentenced today by U.S. District Court Judge Philip A. Brimmer to serve 108 months (9 years) in federal prison, followed by 3 years on supervised release in a murder-for-hire plot. His federal prison time is to be served consecutive to any state prison sentences, the U.S. Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pueblo Police Department announced. Suazo’s co-defendant, Reina Ashley Gonzales, age 29, of Pueblo, was sentenced by Judge Brimmer on June 16, 2017, to serve 30 months in federal prison, followed by 3 years on supervised release for similar charges.
Both defendants were charged by Criminal Complaint on September 28, 2016. They were then both indicted by a federal grand jury on October 19, 2016. Gonzales ultimately pled guilty to an Information charging her with conspiracy on March 8, 2017. Her prison sentence followed on June 16, 2017. Suazo pled guilty on April 12, 2017. He was sentenced today, July 14, 2017.
Beginning in August 2016 and continuing through September 2016, Suazo and co-defendant Gonzales conspired to hire different individuals, including an undercover law enforcement agent, to murder an individual who was a witness in a state case against Suazo. During the time of the conspiracy, Suazo was a incarcerated in the Pueblo jail. He frequently spoke by phone in code with Gonzales. On at least two different occasions Suazo arranged to bond out individuals from Pueblo jail in exchange for the murder of the witness. When each of those inmates failed to complete the murder, he turned to an individual who was actually an undercover agent. Suazo asked Gonzales to meet with this individual. Gonzales showed the undercover agent the Facebook account for the witness who was to be murdered, and the Facebook account of the witness’s girlfriend. She also drew a map to the witness’s last known residence. Eventually, the plan to hire the undercover agent to commit the murder fell apart. At that point, the two co-defendants tried to hire a fourth inmate to commit the murder. Both were then arrested and, as a result of the investigation, the witness was protected.
“Attacking a witness is attacking the very heart of the justice system,” said Acting U.S. Attorney Bob Troyer. “We won’t tolerate it. Ever. Pueblo has seen the last of Mr. Suazo for a good long time.”
“To save his own skin, Suazo attempted to hire not one, not two, but several people to murder a victim he already attempted to kill during a violent crime. He didn’t care about consequences to himself or his friend; he didn’t care about anyone else who could be hurt; he didn’t care about the victim or their loved ones,” said ATF Special Agent in Charge Debora Livingston. “His selfish and remorseless behavior is disgusting. The world is better off with him behind bars where innocent people never have to interact with him.”
This case was investigated by the ATF and Pueblo Police Department. The case was prosecuted by Assistant United States Attorneys Rebecca Weber and Hetal J. Doshi.
Plains Township Man Indicted for Firebombing the Luzerne County Children and Youth Office BuildingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on July 11, 2017, Phillip Finn, Jr, age 47, of Plains Township, Pennsylvania, was indicted by a federal grand jury for stalking, making threatening interstate communications and causing malicious damage to federal property by fire.
The indictment was unsealed today following Finn’s initial appearance before U.S. Magistrate Judge Karoline Mehalchick. Finn was detained on the charges pending trial.
According to United States Attorney Bruce D. Brandler, the indictment alleges that between March 3, 2017 and March 6, 2017, Finn used Facebook, Google and his cell phone to engage in a course of conduct, to harass and intimidate two Luzerne County Children and Youth Services employees. The indictment also alleges that on March 6, 2017, Finn used three Molotov cocktails to damage the Luzerne County Children and Youth Services Office building, located in Wilkes-Barre.
The case was investigated by the U.S. Federal Bureau of Investigation, the Wilkes-Barre City Police Department, and the Luzerne County District Attorney’s Office. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The combined maximum penalty under federal law for these offenses is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Norwich Resident Involved in Insurance Fraud Scheme Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANDY DUGUE, also known as “Jimmy,” 40, of Norwich, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 100 days of imprisonment, followed by three years of supervised release, for his role in an insurance fraud scheme.
According to court documents and statements made in court, between April 2011 and April 2014, DUGUE and others conspired to stage approximately 50 car crashes in eastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from about $10,000 to about $30,000 per accident.
DUGUE was involved in five false insurance claims, four of which stemmed from staged automobile crashes. DUGUE received $11,004 from insurers based on his false claims.
Judge Meyer ordered DUGUE to pay $10,000 in restitution.
DUGUE were arrested on May 20, 2016. On August 9, 2016, he pleaded guilty to one count of wire fraud.
DUGUE, a citizen of Haiti and a lawful permanent resident of the U.S., faces immigration proceedings when he is released from prison.
Six other individuals involved in this scheme have been convicted and await sentencing.
This matter has been investigated by the Federal Bureau of Investigation, the Norwich Police Department and the National Insurance Crime Bureau. The case is being prosecuted by Assistant U.S. Attorneys Avi Perry and Michael J. Gustafson.
Nigerian Citizen Pleads Guilty in Missouri to $12 Million Tax Refund Fraud, Voter Fraud and Illegal ReentryRead the Press Release
A Nigerian citizen, who resided in St. Louis, Missouri, pleaded guilty today to mail fraud, aggravated identity theft, voter fraud and illegally re-entering the United States after having been removed, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Carrie Costantin for the Eastern District of Missouri.
According to documents filed with the court, Kevin Kunlay Williams aka Kunlay Sodipo, 56, and others stole public school employees’ IDs from a payroll company and used them to electronically file more than 2,000 fraudulent federal income tax returns seeking more than $12 million in refunds. He also stole several return preparer’s Electronic Filing Identification Numbers (EFINs) and used them to secure tax-related bank products and services that facilitated the issuance of tax refunds, to include blank check stock and debit cards. Williams used the blank stock to print checks funded by the fraudulent refunds and directed some of the refunds onto debit cards.
Williams previously entered the United States from Nigeria under the name Kunlay Sodipo, but was deported in 1995. In 1999, Williams illegally returned to the United States from Nigeria using the last name Williams. In 2012, Williams registered to vote in federal, state and local elections by falsely claiming that he was a U.S. citizen and voted in the 2012 and 2016 presidential elections.
Williams remains in federal custody and his sentencing is scheduled for Oct. 13 before Chief U.S. District Judge Rodney W. Sippel. Williams faces a statutory maximum sentence of 20 years in prison for mail fraud, 10 years in prison for illegal reentry, five years in prison for each voter fraud count and a mandatory minimum sentence of two years in prison for aggravated identity theft. Williams also faces a period of supervised release, restitution, forfeiture and deportation.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Costantin commended special agents of IRS Criminal Investigation, FBI and the U.S. Postal Inspection Service as well as the Dothan, Alabama Police Department and Alexander City, Alabama Police Department, who investigated this case, and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr. of the Tax Division, who are prosecuting this case with assistance from the U.S. Attorney’s Offices in the Eastern District of Missouri and Middle District of Alabama.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
New Bedford Seafood Wholesaler Indicted for Tax EvasionRead the Press Release
BOSTON – A former New Bedford seafood wholesaler was indicted yesterday for failing to file tax returns and filing a false tax return for his business’ income.
George F. Estudante, 57, formerly of Marion, Mass., was charged with two counts of failing to file tax returns and one count of filing a false income tax return.
According to court documents, Estudante failed to file an income tax return for 2010, even though his business, Basic Fisheries, received approximately $1,418,629 in payments. He also failed to file a tax return for 2011, although his business received approximately $1,607,726 in payments that year. Furthermore, Estudante falsely swore on his 2012 tax return that he had received approximately $533,078 in gross receipts when his bank account reflected that he had received over $740,000.
The charge of failing to file an income tax return provides for no greater than one year in prison, one year of supervised release and a fine of $25,000. The charge of filing a false income tax return provides for three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement. Assistant U.S. Attorney Stephen P. Heymann of Weinreb’s Economic Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Narcotics Dealer Pleads Guilty to Sale of Heroin and Fentanyl That Resulted in Manhattan Man’s Overdose DeathRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced the plea today by DASHAWN HAWKINS, a/k/a “Jhonny Cash,” of New York, New York, to the sale of heroin and fentanyl that resulted in the overdose death of Colin Cameron, 29, of Manhattan, on September 2, 2016. HAWKINS pled guilty earlier today before U.S. District Judge Gregory H. Woods in Manhattan federal court.
Acting Manhattan U.S. Attorney Joon H. Kim stated: “As he admitted today, Dashawn Hawkins sold fentanyl-laced heroin that killed Colin Cameron, a young resident of New York City. The opioid epidemic is devastating our communities, and this Office is committed to aggressively prosecuting dealers like Hawkins who fuel it.”
According to the charging documents filed in the case, as well as statements made during the plea proceedings and earlier court appearances:
On or about September 1, 2016, DASHAWN HAWKINS, a/k/a “Jhonny Cash,” sold a mixture of heroin and fentanyl to Colin Cameron. The next morning, New York City Police Department officers responded to Cameron’s apartment on the Upper West Side, where they found Cameron dead from a drug overdose. After identifying HAWKINS as the dealer who sold Cameron the fatal dose of drugs, the NYPD arrested HAWKINS on October 20, 2016, and searched his apartment. During the search, officers found, among other things, additional bags of heroin and substances used to cut heroin, fentanyl packaging, and a short-barreled rifle with a high-capacity magazine loaded with 34 rounds of ammunition.
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HAWKINS faces a maximum term of life in prison and a mandatory minimum term of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the defendant’s sentence will be determined by a judge. HAWKINS is scheduled to be sentenced on December 7, 2017, by the Honorable Gregory H. Woods, U.S. District Judge.
Mr. Kim praised the outstanding investigative work of the NYPD.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Jason M. Swergold and Amanda L. Houle are in charge of the prosecution.
Mexican Man Arrested in Saratoga, NY Sentenced for Illegal Re-entry into the United StatesRead the Press Release
ALBANY, NEW YORK – Rufino Ramirez De Jesus, age 31, of Mexico, was sentenced today to time served (46 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), acting Field Office Director Thomas P. Brophy, Buffalo, New York Field Office.
As part of his guilty plea, Ramirez De Jesus admitted that he was an alien, a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on February 22, 2014. Ramirez De Jesus had previously been removed to Mexico on October 22, 2012.
On May 30, 2017, Ramirez De Jesus was arrested by ICE officers in Saratoga Springs, New York.
Following the sentencing, Ramirez De Jesus was remanded to the custody of the Department of Homeland Security, which will place him into removal proceedings.
The case was investigated by United States Immigration and Customs Enforcement, Albany, NY, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Men from El Salvador plead guilty to reentering the United States multiple timesRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced that two men from El Salvador pleaded guilty Thursday to reentering the country after being deported.
Juan Carlos Yanes-Vasquez, 38, and Nelson Antonio Orellana, 29, both of El Salvador, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of illegal reentry following deportation. According to the guilty pleas, U.S. Customs and Border Patrol agents stopped a vehicle February 21, 2017 traveling east on Interstate 10. Agents found eight undocumented illegal aliens and one driver who had lawful status in the United States. Agents discovered Yanes-Vasquez and Orellana among the group. They also discovered the defendants illegally reentered the United States multiples times. Yanes-Vasquez’s most recent deportation took place December 22, 2016 in Laredo, Texas. The defendant admitted to reentering the country on February 17, 2017 after crossing the Rio Grande River into Texas. Orellana also was found to have been deported multiple times with the most recent deportation being March 4, 2016 from Alexandria, La. He reentered the country illegally on February 14, 2017 near Laredo, Texas.
Yanes-Vasquez faces up to two years in prison and one year of supervised release. Orellana faces up to 10 years in prison and one year of supervised release. They also face a $250,000 fine.
United States Customs and Border Patrol conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the cases.
Member of International Child Exploitation Conspiracy Sentenced to 210 Months in PrisonRead the Press Release
A Chicopee, Massachusetts man was sentenced to 210 months in prison and 10 years of supervised release for production of child pornography based on his participation in a website that was operated for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente of the Eastern District of Virginia; and Section Chief John J. Brosnan of the FBI’s Violent Crimes Against Children Section (VCACS) made the announcement.
Edward Parson, 46, was charged on April 4, 2016, and pleaded guilty before U.S. District Judge T.S. Ellis III of the Eastern District of Virginia on April 14.
According to admissions made in connection with the plea agreement, members of the conspiracy created false profiles on social networking sites popular with children, posing as young teenagers to lure children to two websites they controlled. Once on the conspirators’ websites, Parson admitted that members of the conspiracy showed the children pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor. Parson further admitted that conspirators used these videos to coerce and entice children to engage in sexually explicit activity on their own web cameras, which could be viewed live by other members without the victim’s knowledge and which the website automatically recorded and made available for download later. Parson admitted that he chatted with minors in furtherance of the conspiracy. The defendant also admitted that one of the websites ranked the efforts of the members to successfully coerce and entice children to engage in sexually explicit conduct on live web camera. Both websites have been disabled.
This case was investigated as part of Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children (VCAC) International Task Force. VCAC special agents led the investigation with the assistance of the FBI’s Operation Rescue Me and the FBI’s Digital Analysis and Research Center and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Service Agency, KLPD; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in Operation Subterfuge. To date, over 320 minor victims have been identified as part of this operation.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc..
Member of Drug Trafficking Organization Admits Conspiring to Sell Heroin in Hudson CountyRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man today admitted distributing heroin in Hoboken, New Jersey, on multiple occasions, Acting U.S. Attorney William E. Fitzpatrick announced.
Travis Thomas, a/k/a “Mush,” 27, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an indictment charging him with one count of conspiracy to distribute heroin and seven substantive counts of heroin distribution.
According to documents filed in this case and statements made in court:
Between July 2015 and December 2015, Thomas conspired with others to distribute heroin in Hudson County, including Hoboken. Thomas admitted that he distributed over 100 grams of heroin and worked with others, including Sterling McCoy, a/k/a “Boogs,” 33, of Pleasantville, New Jersey, and Jason Henderson Wheeler, a/k/a “J,” 28, of Hoboken, in furtherance of the conspiracy.
Thomas faces a sentence of between 10 years and life in prison. Sentencing is scheduled for Oct. 11, 2017. McCoy and Wheeler have already been convicted and sentenced for their roles in the conspiracy.
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. Attorneys Brian Urbano and Erica Liu of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Jason N. Orlando Esq., Jersey City, New Jersey
Massachusetts Man Sentenced to 33 Months in Prison for StalkingRead the Press Release
CONCORD, N.H. – David Ackell, 48, of Seekonk, Massachusetts, will serve a 33-month prison sentence for using facilities in interstate commerce to stalk a female resident of New Hampshire, announced Acting United States Attorney John J. Farley.
According to court records and statements made in court, Ackell sent an on-line private message to the victim when she was 16. Thereafter, the victim agreed to send photographs of herself to Ackell because Ackell repeatedly promised that he would not save them. Several months later, Ackell persuaded the victim to send partially nude photographs of herself to him. After the victim turned 18, she repeatedly told Ackell that she wanted to end their relationship. Ackell prevented this from happening by, among other things, threatening to send the victim’s photographs to her family and friends. He also told the victim that if she ended their relationship, a 14-year old girl would be raped.
Ackell was found guilty of the offense after a four-day jury trial in December 2016. The defendant will be appealing his conviction. He will not begin serving his sentence until after the Court of Appeals has ruled.
“In its various forms, cyber-stalking causes severe trauma to the stalked victims and the people who care about them,” said Acting U.S. Attorney Farley. “It is a high priority of this office to prosecute anyone who engages in this reprehensible conduct. This case is an unfortunate reminder that young people who use social media need to be vigilant about what information they share with others. I encourage parents to speak openly with their children about the need to be extremely cautious when establishing online relationships and sharing information with others. I commend the bravery of the victim in this case who came forward and shared her story with law enforcement officers.”
The Federal Bureau of Investigation, the Hancock, New Hampshire Police Department, and the Seekonk, Massachusetts Police Department investigated the case.
At trial, Assistant United States Attorneys Helen White Fitzgibbon and Robert Kinsella represented the government. AUSA Kinsella represented the government at the sentencing hearing.
Man from El Salvador pleads guilty to reentering the U.S. after having been removed four timesRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from El Salvador pleaded guilty Thursday to reentering the United States after having been previously removed four times.
Aristides Arevalo-Rodriguez, 44, of El Salvador, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of illegal reentry following removal. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Arevalo-Rodriguez was found in Calcasieu Parish on March 21, 2017. It was discovered that the defendant had been removed four times from the United States. The most recent removal was September 30, 2011 at or near Houston, Texas.
Arevalo-Rodriguez faces up to two years in prison, one year of supervised release and a $250,000 fine. The court set sentencing for October 27, 2017.
The U.S. Department of Homeland Security – U.S. Customs and Border Protection, and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney T. Forrest Phillips is prosecuting the case.
Long Island Man Sentenced to over 9 Years in Prison for Defrauding South Korean Religious School of More Than $5 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WILLIAM COSME, a/k/a WILLIAM COSMO, was sentenced in Manhattan federal court today to 111 months in prison for orchestrating a scheme to defraud a Christian missionary school in South Korea of $5.5 million. On March 21, 2017, a jury convicted COSME of wire fraud and aggravated identity theft following a one-week trial before U.S. District Judge Loretta A. Preska, who also imposed today’s sentence.
Acting Manhattan U.S. Attorney Joon H. Kim said: “William Cosme defrauded an international school in Korea of more than $5 million by telling a series of brazen lies, many that he continued to tell on the stand at trial. Instead of investing the school’s money meant for educating children as he had promised, Cosme spent it on himself, on a Lamborghini, Ferrari, gambling, and other personal expenses. Thanks to the hard work of the FBI, Cosme will now spend time in a federal prison.”
According to the Indictment and other filings in Manhattan federal court, statements made in connection with COSME’s sentencing proceedings, and evidence admitted at trial:
COSME purported to operate a “privately held, global, private equity family practice with a concentration on it’s [sic] own family’s private wealth management, commercial [real estate], physical gold trade and business consulting.” COSME further claimed that the entity through which he did business “manage[d] family assets with a net asset value in excess of USD $11b on a global basis” and that his clientele included royalty and the families of royalty.
In January 2011, COSME, acting through his company Cosmo Dabi International Trading Group Inc. (“Cosmo Dabi”), entered into an agreement with an international school located in South Korea (the “International School”) whereby Cosmo Dabi would lend the International School approximately $55 million and the International School would make a deposit of approximately $5.5 million (the “Equity Deposit”), which COSME would invest in order to generate funds to loan the International School. The International School sought to use the proceeds of the loan to expand its operations in South Korea.
In January 2011, the International School sent by wire transfer approximately $5.5 million to an account maintained by COSME at a bank.
Thereafter, COSME transferred the funds that the International School had entrusted to him into other accounts, including accounts in his own name rather than that of his company. From the other accounts, COSME began a run of unauthorized personal spending, including a Lamborghini costing nearly $314,000 (which itself was meant to secure COSME a preferred spot on a waiting list to purchase an even more expensive Lamborghini); a Ferrari costing nearly $287,000; a Cadillac Escalade; a sport utility vehicle for a family member of COSME’s; a 110-day gambling trip to Las Vegas; gaming losses while on that trip in excess of $200,000; paying for his girlfriend’s rent; and otherwise funding a lavish lifestyle. All the while, COSME made a series of misrepresentations to the leadership of the International School as to why they had not been issued their promised loan payments, and devised and executed a sham audit process in order to convince the International School that they were in default of their agreement and that COSME could keep the school’s deposit for himself.
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In addition to his prison sentence, COSME, 51, of Jericho, New York, was sentenced to three years of supervised release and ordered to forfeit, among other things, the contents of two financial services accounts containing more than $2 million, as well as the luxury automobiles he purchased with the stolen funds. Restitution was also ordered in the amount of $5.5 million.
Mr. Kim praised the outstanding efforts of Federal Bureau of Investigation in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah D. Solowiejczyk and Martin S. Bell are in charge of the prosecution.
Las Vegas Man Pleads Guilty to Armed Bank Robbery with Homemade Simulated Explosive DeviceRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to robbing a bank with a homemade simulated explosive device with wires and blinking lights worn under his clothes, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Vincent Earl Hagey, 46, pleaded guilty to one count of armed bank robbery and one count of attempted armed bank robbery. United States District Judge Jennifer Dorsey accepted the guilty plea and scheduled sentencing for Oct. 16, 2017. At the time of sentencing, Hagey faces the maximum statutory penalty of 20 years in prison and a $250,000 fine.
According to admissions in the plea agreement, on Feb. 17, 2017, Hagey, wearing a white hat, black suitcoat and a blue tie, entered a Bank of America and presented a bank robbery note to a teller stating that he had a bomb. Hagey then pressed a button in his clothing and a blinking blue light lit on his chest. The teller gave Hagey $1,131, and he left the bank.
On March 13, 2017, Hagey was arrested while leaving a Wells Fargo Bank wearing the same clothes and homemade device from the February bank robbery. The homemade contraption was made of batteries, wire, and a lighted circuit board, with a wire running up his sleeve to a push-button near his cuff. Hagey could activate the button on his cuff to make the blue light on the circuit board blink on and off. During an interview with law enforcement, Hagey confessed to robbing the Bank of America and attempting to rob the Wells Fargo Bank, both with the use of the simulated explosive device under his clothing.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney Brandon Jaroch.
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Justice Department Seeks to Shut Down Atlanta-Area Tax Return PreparerRead the Press Release
The United States filed a civil injunction suit seeking to bar Marjorie St. Jean and her company MarjorieStjeanLLC, from owning, operating, or franchising a tax return preparation business and preparing tax returns for others, the Justice Department announced today.
The complaint filed in the U.S. District Court for the Northern District of Georgia, also requests that the court order St. Jean and MarjorieStjeanLLC to disgorge the fees that they obtained through the preparation of allegedly false returns. According to the complaint, St. Jean of McDonough, Georgia, currently owns and operates a tax preparation store called Precise Tax Services. This tax preparation store is located at 7206 Tara Blvd. in Jonesboro, Georgia, according to the complaint.
The government alleges that St. Jean prepares and files tax returns that unlawfully increase her customers’ refunds, and she profits through excessive, often undisclosed preparation fees—at the expense of her customers and the U.S. Treasury. The complaint alleges that St. Jean and her company, MarjorieStjeanLLC, engage in fraudulent activity, including:
• Falsely claiming Fuel Tax Credits;
• Falsely claiming the Earned Income Tax Credit;
• Fabricating businesses and related business income and expenses;
• Fabricating deductions, particularly for unreimbursed employee business expenses; and
• Charging deceptive and unconscionable fees.
According to the complaint, St. Jean was previously an employee of LBS Tax Services, where she worked at a tax preparation store owned and operated by Douglas Mesadieu. A federal court previously barred Mesadieu from preparing federal tax returns for others and owning and operating a tax preparation business, finding that “Mesadieu and his companies have been unjustly enriched by fraudulently inflating the EITC on the tax returns they prepared for customers in order to increase a taxpayer’s tax refund.” Since September 2014, the United States has filed 15 similar lawsuits in Florida and North Carolina against the former LBS Tax Services franchisor, Walner Gachette, and former LBS franchisees and managers, many of whom allegedly rebranded as new businesses and continued to operate tax preparation businesses. Through these lawsuits, the United States has obtained numerous permanent injunctions and money judgments requiring defendants to disgorge millions in ill-gotten tax preparation fees.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2017. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury convicts owner of Sandusky company for fraud related to Castalia FarmsRead the Press Release
The owner of a Sandusky company was convicted on multiple counts for his fraudulent conduct related to Castalia Farms, said Acting U.S. Attorney David Sierleja and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Scott C. Wagner, 53, of Perkins Township, was convicted of conspiracy to commit wire fraud, conspiracy to commit money laundering, and multiple counts of wire fraud, mail fraud, concealment of money laundering and of use of criminally derived property.
According to trial testimony and documents filed in the case:
Castalia Farms was a hospitality facility owned by Owens-Illinois, Inc. and used by the company as a recreational facility since the 1930s. O-I closed the facility in 2012 and later sold the property.
The manager of Castalia Farms had an occasional need for industrial equipment and was a regular customer of Wagner and his company, Construction Equipment & Supply (CES), a Sandusky business that rented and sold industrial machinery and equipment for commercial use.
Wagner controlled the day-to-day operations of CES and submitted false invoices to manager Michael Conrad that were then passed on to O-I for equipment rentals that never occurred, purchases of construction supplies and other goods that never occurred, purchases of construction supplies that were far in excess of what was actually delivered, and other fraudulent billings.
For example, O-I was billed more than $350,000 for 532 days of renting a piece of equipment used to grind trees and other vegetation, when in reality the grinder was not at Castalia Farms for nearly all the time it was billed to O-I as a rental, according to court documents.
In October 2010, Conrad submitted to O-I a fraudulent invoice for $47,925 worth of landscaping work, purportedly done at Castalia Farms. The work was actually done at Wagner’s personal residence. O-I paid the invoice in December 2010, according to court documents.
In a different scheme, Kyklos Bearing International, LLC of Sandusky, paid false invoices Wagner submitted with the assistance of a Kyklos Bearing International employee. The invoices were false because they sought payment for goods that were never delivered by CES, according to court documents.
Conrad previously pleaded guilty to crimes related to his role in the conspiracy.
This case is being prosecuted by Assistant U.S. Attorneys Gene Crawford and Adam Hollingsworth following an investigation by the Federal Bureau of Investigation, with the assistance of the Ohio Bureau of Criminal Investigation and the Erie County Sheriff’s Office.
Johnston Bank Robber SentencedRead the Press Release
PROVIDENCE – Lenin Gutierrez, 40, of Cranston, was sentenced today to 41 months in federal prison for robbing a bank branch office located inside a Johnston supermarket on December 30, 2016, announced Acting United States Attorney Stephen G. Dambruch, Johnston Police Chief Richard S. Tamburini and Harold H. Shaw, Special Agent in Charge of the Boston Division of the FBI.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Gutierrez to serve 3 years supervised release upon completion of his prison sentence and to pay $2,500 restitution to Citizens Bank. Gutierrez pleaded guilty on April 27, 2017, to bank robbery, as charged in a federal indictment returned on January 26, 2017. No plea agreement was filed in this matter.
The U.S. Sentencing Guidelines range of imprisonment in this matter is 41-51months. The government recommended the court impose a sentence of 41 months in prison.
At the time of his guilty plea, Gutierrez admitted to the court that on December 30, 2016, he entered a Citizens Bank branch office inside a Johnston supermarket while dressed in a beige jacket, black facemask, and a Spiderman hat and scarf. Gutierrez admitted that he handed a bank teller a hand-written note demanding cash and threatening to shoot the teller if the money was not handed over. After the teller gave Gutierrez $100 and $50 dollar bills, Gutierrez demanded more money. The teller then handed over $20 bills.
Gutierrez left the bank without showing a weapon.
According to court documents, responding Johnston Police officers searched the immediate area and located the black facemask, Spiderman hat and scarf, and beige jacket worn by Gutierrez during the robbery. Inside the jacket, officers located a note that said, “Robbery $100 and $50 Stacks only No die pack No Allarm. have A gun will use.” An outer pocket contained a stack of $20 bills. Officers did not locate a firearm.
According to court documents, a fingerprint lifted from the note by Johnston Police detectives was matched to Lenin Gutierrez. Gutierrez has been detained since his arrest on January 5, 2017.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
The FBI assisted Johnston Police in the investigation of this matter.
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Jefferson County Man Convicted of Killing Whooping Cranes Headed to Prison After Violating Terms of ProbationRead the Press Release
BEAUMONT, Texas – A 20 year old Beaumont, Texas man was sentenced to federal prison for violating the terms of his probation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Trey Joseph Frederick was sentenced to five years of federal probation in October, 2016 after he pleaded guilty to a violation of the Endangered Species Act. In January, 2016, a Texas Game Warden received two calls reporting that two Whooping Cranes had been shot on Blair Road in Jefferson County. Further investigation revealed that Frederick had been seen in the area with a hunting rifle and claimed to be hunting geese. Federal agents contacted Frederick at his home where he admitted to killing the cranes.
Whooping Cranes are a species of migratory birds in danger of extinction throughout all or a significant portion of its range, and therefore an endangered species as defined by the Endangered Species Act, making it unlawful to capture, kill, trap, or collect Whooping Cranes, or attempt to engage in such conduct in the United States.
Today, Frederick was back in federal court facing charges that he violated the terms of his probation for, among other things, using an AR-15 assault rifle to hunt from a roadway in Jefferson County, Texas. The terms of Frederick’s probation specifically prohibited him from owning or possessing firearms, ammunition or any other dangerous weapon. Frederick is also prohibited from hunting or fishing anywhere in the United States. During his court appearance today, U. S. Magistrate Judge Zack Hawthorn sentenced Frederick to 11 months incarceration to be followed by a one year term of supervised release.
Acting U.S. Attorney Featherston made the following statement, “Trey Frederick was given the opportunity of probation when he was first convicted of killing two federally protected whooping cranes. Apparently, Mr. Frederick did not appreciate the leniency he was given, and today, he learned the consequences. Mr. Frederick will now have 11 months to contemplate his actions.”
This case was investigated by special agents with the U.S. Fish and Wildlife Services, Office of Law Enforcement and Game Wardens with the Texas Parks and Wildlife Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
Irving Tax Preparer Sentenced to 35 Months in Federal PrisonRead the Press Release
DALLAS —A tax preparer who operated a tax preparation business in Irving, Texas, was sentenced yesterday for preparing false tax returns, announced U.S. Attorney John Parker of the Northern District of Texas.
U.S. District Judge Jane J. Boyle sentenced Hector Gerardo Nunez yesterday afternoon to 35 months in federal prison and ordered him to pay $68,121.06 in restitution. On December 2, 2015 Nunez pleaded guilty to one count of aiding and assisting in the preparation of a false tax return.
According to the factual resume filed in his case, from at least 2007 through 2010, Nunez did business under the name of Speedy Tax Service, located on W. Airport Freeway in Irving. During this period, Nunez knowingly and willfully prepared, and caused to be filed with the Internal Revenue Service (IRS), income tax returns that were materially false. Nunez would include false or inflated deductions and credits that were intended to produce a fraudulently inflated refund to be paid by the IRS. He would then collect a fee that was deducted from the refund generated by each return he prepared.
IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Christopher Stokes prosecuted.
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Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on July 13, 2017 and entering pleas of Not Guilty were:
- CINNAMON A. FULGHUM, a 49-year-old resident of Plentywood, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and use of a communication facility in causing and facilitating the commission of felonies under the controlled substances act. If convicted of the most serious charges contained in the indictment, FULGHUM faces 20 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the United States Postal Service. PACER Case Reference. 17-39
- JULIUS EDWARD LUPOWITZ, a 55-year-old resident of Melbourne, Florida, appeared on charges of wire fraud, and engaging in monetary transactions in property derived from specified unlawful activity. If convicted of the most serious charges contained in the indictment, LUPOWITZ faces 20 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-40
Appearing before U.S. Magistrate Cavan in Billings on July 11, 2017 and entering pleas of Not Guilty were:
- KEVIN RAYMOND RUCKS, a 56-year-old resident of Dickinson, North Dakota, appeared on charges of distribution of methamphetamine. If convicted of the charge contained in the indictment, RUCKS faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 17-08
Appearing before U.S. Magistrate Johnston in Great Falls on July 10, 2017 and entering pleas of Not Guilty were:
- WILLIAM BRENT LARION, a 40-year-old resident of Shelbyville, Tennessee, appeared on charges of possession of a firearm not registered in the National Firearms Registration and Transfer Record, and felon in possession of a firearm. If convicted of the most serious charge contained in the indictment, LARION faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Drug Enforcement Administration and the Roosevelt County Sheriff’s Office. PACER Case Reference. 17-33
Appearing before U.S. Magistrate Cavan in Billings on July 5, 2017 and entering pleas of Not Guilty were:
- RANDY RAY STARNES, a 60-year-old resident of Billings, appeared on charges of bank robbery. If convicted of the charge contained in the indictment, STARNES faces 20 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-81
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indianapolis man sentenced in federal court for heroin and gun chargesRead the Press Release
Defendant had three prior drug charges on his criminal history
PRESS RELEASE
Indianapolis –United States Attorney Josh J. Minkler announced today that an Indianapolis man was sentenced in federal court on drug and weapon charges. Brant Chaszar, 35, was sentenced to 262 months (over 21 years) imprisonment by U.S. District Judge Tanya Walton Pratt after pleading guilty to possession with intent to distribute heroin and carrying a firearm in relation to a drug trafficking crime.
“Trafficking in heroin not only brings gun violence to a community, it contributes to the opioid crisis our country faces,” said Minkler. “Helping to reduce crime in our neighborhoods, is, and will remain a top priority of this office.”
In June 2015, law enforcement officials learned that Chaszar was dealing fentanyl-laced heroin in Indianapolis. They obtained a search warrant for his residence on the near Southside of Indianapolis. As officers approached Chaszar’s residence, he ran from agents and threw a loaded 40-caliber handgun he was carrying to the ground. He was apprehended and found to be in possession of fentanyl-laced heroin.
When agents served a search warrant on his home, they located ammunition, marijuana and additional heroin.
Chaszar has three narcotic-related prior convictions on his record. Because he is a convicted felon, he is not legally permitted to carry a firearm.
This investigation was jointly conducted by the Drug Enforcement Administration the Indianapolis Metropolitan Police Department and the United Drug Task Force of Hendricks County.
“Drug dealers profit from the weakness of addiction and leave a trail of sadness by introducing synthetic opioids such as fentanyl into our communities,” said Assistant Special Agent in Charge of the Indianapolis Drug Enforcement Administration, Greg Westfall. “DEA is committed to the safety of our neighborhoods by bringing drug dealers to justice.”
According to Assistant United States Attorney Barry Glickman who prosecuted this case for the government, Chaszar must serve six years of supervised release following his sentence.
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Husband and Wife Sentenced for Wire and Mail Fraud ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On July 14, 2017, Christy A. Greider, 40, and Jason A. Greider, 42, both of Huber Heights, Ohio, were sentenced by the Honorable Pamela L. Reeves, U.S. District Court Judge, for their roles in a conspiracy to commit mail and wire fraud. Christy Greider will serve 33 months in federal prison and Jason Greider will serve 27 months.
The Greiders both pleaded guilty in February 2017 to one count of conspiracy to commit mail and wire fraud. Christy Greider worked as the bookkeeper for M-3 Construction, Inc., located in Oak Ridge, Tennessee. She also helped the company’s elderly owners keep track of their personal finances. Christy and Jason Greider made unauthorized purchases totaling more than $350,000 using the company’s and its elderly owners’ personal credit cards. Some of these unauthorized purchases included a boat, pool, furniture, and a trip to Hawaii.
Agencies involved in this investigation included the Oak Ridge Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Kelly A. Norris represented the United States.
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Former Teacher Sentenced to 27 Years for Child Pornography, Child Sex Tourism ChargesRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Clarence Edward Evers, Jr., also known as Bud Evers, 54, of Evergreen, Alabama, was sentenced today to 27 years in prison. Evers pled guilty in April to charges that he produced child pornography, possessed child pornography, and traveled in foreign commerce with the intent to engage in illicit sexual conduct.
Evers was also sentenced to be supervised by the United States Probation Office for the rest of his life, and will be required to register as a sex offender. The Court also ordered that Evers pay $50,000 in restitution and a fine of $5,000.00.
Evers, previously employed as a technology teacher at Hillcrest High School in Conecuh County, admitted in documents filed as part of his guilty plea that he traveled each summer to Thailand, where he paid minor boys as young as thirteen to engage in illicit sexual conduct and that he took sexually explicit photographs of boys. One of the victims, then a 15-year old boy, made a report about being paid approximately $22 by Evers to engage in sex acts with him, and witnessing Evers engage in sex acts with another boy. Evers was identified through Facebook communications he had with the boy, and a search warrant was executed at Evers’s home in Evergreen on April 1, 2015. A substantial amount of child pornography, including videos and photographs of boys engaged in sexually explicit conduct, was recovered from Evers’s home. Although Evers had encrypted many of his electronic devices, the unencrypted data showed that Evers had accessed, downloaded, and produced child pornography. Evidence collected during the investigation also showed that, for years, Evers had discussed and coordinated his travel to and within Thailand with other men interested in engaging in commercial sex acts with boys in that country.
Acting United States Attorney Butler said, “Predators who exploit children will be aggressively investigated, pursued, and prosecuted, wherever they are. I commend the hard work and dedication of the many agents, analysts, support personnel, and lawyers from Mobile to New Orleans to Evergreen to Washington to Bangkok who sought justice for these victims. The Department of Justice remains steadfast in its commitment to protect children everywhere from criminals who would exploit them for their own gratification.”
“HSI will tirelessly work to investigate and bring to justice anyone who thinks they can get away with preying upon our children for their own sexual gratification” said Raymond R. Parmer, Jr. “This case highlights the exceptional commitment and devotion of the men and women who pursue the perpetrators of these depraved crimes every day.” Parmer is the Special Agent in Charge of the New Orleans field office with responsibility for Alabama, Arkansas, Louisiana, Mississippi, and Tennessee.
The case was investigated by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and prosecuted by Assistant United States Attorneys Sean P. Costello and Maria E. Murphy, and Trial Attorney Jessica Urban of the Department of Justice’s Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Substantial additional investigation and analysis were provided by CEOS’s High Technology Investigative Unit.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Suzuki Employee Pleads Guilty to Submitting False Report to the EPARead the Press Release
Wayne Powell, a former employee of American Suzuki Motor Corporation headquartered in Brea, California, pleaded guilty today in a federal court in Detroit, Michigan, to violating the Clean Air Act by submitting a false end-of-year report to the U.S. Environmental Protection Agency, the Justice Department announced.
According to the plea agreement, Powell, a Government Relations Analyst for Suzuki, was responsible for submitting documents to the EPA regarding Suzuki’s compliance with motorcycle emission standards. Powell was in charge of submitting Suzuki’s 2012 application to the EPA for a “certificate of conformity,” which allows a vehicle manufacturer to sell vehicles in the United States. Rather than seek certification of each motorcycle engine family, Suzuki combined the certifications of multiple engine families and averaged their emission standards based on the total number of motorcycles in each family. At the end of the model year, Suzuki was required to submit to the EPA an end-of-year report to show that it was in compliance with emission standards.
The average that Powell created combined emissions of hydrocarbons and nitrogen oxides for the 23,528 Class III model year 2012 motorcycles that Suzuki imported, distributed and sold in the U.S. The average violated the emission limit. The first end-of-year report Powell submitted to the EPA in 2013 purported to utilize “banked credits” to offset the excess emissions. However, Suzuki had not participated in the banked credit program and therefore had no credits to use. As a result, the EPA informed Powell it could not accept the report. Subsequently, on March 28, 2014, Powell submitted an amended end-of-year report to the EPA’s Office of Transportation and Air Quality in Ann Arbor in which he altered the numbers of four motorcycle engine families, resulting in a calculation that was within the emission limit. The altered numbers were false. Powell also deceitfully represented to the EPA in the email that accompanied the amended report that “[t]he computer software that we use to gather this information did not count all of the units” and that he had “corrected some mistakes on the 2012 report.”
Powell faces a statutory maximum penalty of two years in prison and a fine of up to $250,000.
Acting Assistant Attorney General Jeffrey H. Wood and Acting U.S. Attorney Daniel L. Lemisch thanked the U.S. Environmental Protection Agency’s Criminal Investigation Division, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service for their work in this investigation. The case is being prosecuted by Senior Counsel Kris Dighe of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Craig Weier of the U.S. Attorney’s Office for the Eastern District of Michigan.
Former SunTrust Bank Employee Pleads Guilty to Embezzling Nearly $600,000Read the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces that Connie Moorman Willis (52, Morriston) today pleaded guilty to one count of mail fraud, one count of aggravated identity theft, two counts of embezzlement by a bank employee, and one count of access device (credit card) fraud. She faces a maximum penalty of 20 years in prison for the mail fraud count, up to of 30 years’ imprisonment for each embezzlement count, up to 10 years’ imprisonment for the credit card fraud count, and 2 consecutive years in federal prison for the aggravated identity theft count. A sentencing date has not yet been set.
According to the plea agreement, Willis worked at SunTrust Bank as a business banker overseeing valuable business accounts, with wide-ranging authority over them. Beginning in February 2013, she stole the identities of two customers by using their personal information to create a fraudulent bank account. She had all written correspondence for this account mailed to her address in order to keep the customers from learning of her activities. Willis subsequently transferred large amounts of money from other customers, without their permission, into this fraudulent account. She then withdrew the stolen funds or used them to pay her own expenses.
Willis’s victims included customers who were elderly or in poor health. In one instance, investigators learned that Willis had opened two fraudulent credit card accounts and had taken out a $140,000 mortgage in the name of an elderly relative. She used stolen funds to pay off the mortgage and to make payments on the credit cards.
Once Willis’s fraud had been discovered, she texted one customer and admitted that she had “made a big mistake.” She added that she wanted to “make it right” by repaying the customer. In total, Willis stole $591,545.33.
This case was investigated by the United States Postal Inspection Service and the City of Ocala Police Department. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Former Sheriff’s Deputy Indicted for Solicitation to Tamper with a WitnessRead the Press Release
Memphis, TN - A former Shelby County Sheriff’s Office deputy has been indicted for soliciting a person to murder a witness in a federal case. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the superseding indictment today.
Jeremy Drewery, 42, of Arlington, Tennessee, was indicted last September for attempting to extort thousands of dollars from an alleged drug dealer in August of 2016. In March, additional charges were added to the indictment, which alleged an incident of extortion of another alleged drug dealer in late 2013.
The Shelby County Sheriff’s Office has since received information that Drewery solicited a person to kill one of the witnesses in the earlier indictment and notified the FBI.
Drewery was assigned to the Shelby County’s Sheriff’s Office’s Narcotics Task Force, but has since been terminated from the department.
On Thursday, July 13, 2017, Drewery had his initial appearance in federal court before U.S. Magistrate Judge Charmiane G. Claxton.
Drewery is charged with two counts of Hobbs Act Extortion; two counts of Receipt of a Bribe by a Government Agent; and one count of Solicitation to Commit a Crime of Violence.
If convicted, he faces up to 20 years in federal prison and a fine of up to $250,000.
This case is being investigated by the Tarnished Badge Task Force, which is comprised of investigators from the FBI, Memphis Police Department and the Shelby County Sheriff’s Office.
Assistant U.S. Attorneys Reagan M. Taylor and Mark Erskine are prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Former FBI Agent Enters Guilty Plea in Federal Court in GeorgiaRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Kenneth W. Hillman, III, age 47, formerly of Dalton, Georgia, has entered a guilty plea in federal court in Rome, Georgia, to disclosure of confidential information, a violation of 18 U.S.C. § 1905. United States Magistrate Judge Walter Johnson, of Rome, presided over the guilty plea hearing and will provide United States District Judge Harold L. Murphy with a recommendation about accepting the plea. If he accepts the plea, Judge Murphy will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that between August 1, 2012 and November 30, 2012, the Department of Justice Federal Bureau of Investigations (FBI) employed Kenneth W. Hillman, III, as a Special Agent in the Northern District of Georgia. Mr. Hillman was assigned as the lead agent of the Northwest Georgia Internet Crime and Child Exploitation Task Force (Task Force). This Task Force included other officers assigned from local law enforcement agencies.
The Task Force was authorized to investigate and solicit, via the internet, persons seeking to have sexual relations with children. This Task Force used an undercover facility along with undercover computers, government cell phones and specialized internet chat language designed by and known only to the Task Force members to solicit and lure these individuals to the area where they were arrested.
During this period, neither E. R. nor A. R. were law enforcement officers or members of the Task Force. Mr. Hillman disclosed sensitive, but unclassified, information as to the operation of this Task Force to E. R. and A. R. This disclosure included allowing E. R., on one occasion, and A. R. to view agents involved in the internet chatting with some individuals and allowing them to accompany agents during the arrests of some of these individuals.
Mr. Hillman also allowed A. R. access to a sensitive, but unclassified, undercover FBI computer and the specialized internet chat language used by the Task Force. Mr. Hillman allowed A. R., using the FBI’s undercover computer and the specialized language, to conduct several chats with persons on behalf of the Task Force. A. R. recruited several individuals who were looking to engage sexually with minor children to the area. These persons were arrested.
Mr. Hillman was not authorized by law to divulge, disclose or make known in any manner the Task Force operation to E. R. and/or A. R., or to allow A. R. to participate in the undercover operation of the Task Force, to possess and operate FBI equipment, to conduct chats, arrests, or otherwise be involved in the operation of the Task Force.
Ms. Drake stated the maximum penalty for this offense is imprisonment for 1 year and/or a fine of $100,000.
The case was investigated by agents of the United States Department of Justice, Office of the Inspector General. Assistant United States Attorneys William K. Witherspoon and James H. May of the Columbia office are prosecuting the case.
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Former D.C. Government Employee Pleads Guilty to Accepting Bribes in Scheme Involving PermitsRead the Press Release
WASHINGTON – Stacie M. Williams, .a former employee of the District of Columbia Department of Consumer and Regulatory Affairs (DCRA), pled guilty today to a federal bribery charge stemming from a scheme in which she accepted cash in return for facilitating the issuance of construction permits.
The guilty plea was announced by U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Daniel W. Lucas, Inspector General for the District of Columbia.
Williams, 47, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia to a charge of receipt of a bribe by a public official. The charge carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, Williams faces a likely range of 12 to 18 months in prison and possible financial penalties. She is to be sentenced on Oct. 19, 2017, by the Honorable Amit P. Mehta.
According to the government’s evidence, Williams worked from March 2004 until August 2016 as a contact representative in DCRA’s Business License Department. She was responsible for reviewing and processing applications for various permits. In two meetings at her workstation in April and June of 2012, Williams accepted a total of $700 in cash from a person who was actually participating in an undercover FBI investigation. In exchange for this money, Williams issued two air conditioning permits and one construction permit. In processing these permits, she did not require the person to take a number and wait in line at DCRA, which is the practice for all customers. She also falsified the requirement calling for the signature of a certified licensed tradesman who would oversee the construction. Instead, she inserted the name of a master licensed tradesman who she knew was not involved in the construction work.
In her plea today, Williams admitted that she often partnered with a co-worker, Lucretia B. Barksdale, in the illegal scheme of issuing DCRA permits to customers. Barksdale, 52, of Oxon Hill, Md. pled guilty to a federal bribery charge in March 2016 and later was sentenced to three years of probation, including 180 days that was to be spent in home detention.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and the District of Columbia Office of the Inspector General. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Christopher Toms and former Assistant U.S. Attorneys Lionel André. Finally, they commended the work of Assistant U.S. Attorney Michelle N. Bradford, who is prosecuting the case.
Former Compton Deputy Treasurer Admits $3.7 Million EmbezzlementRead the Press Release
SANTA ANA, California – The former deputy treasurer for the City of Compton pleaded guilty yesterday to federal charges stemming from his theft of more than $3.7 million of city funds.
Salvador Galvan, 47, of La Mirada, pleaded guilty to one count of theft from an organization receiving federal funds, a felony offense that carries a statutory maximum sentence of 10 years in federal prison.
Galvan pleaded guilty before United States District Judge Josephine L. Staton, who scheduled a sentencing hearing for November 3, 2017.
When he pleaded guilty, Galvan admitted that he stole $3,721,924 from the City of Compton from May 2010 through December 2016
Galvan, who worked in the Compton Treasurer’s Office for more than 20 years, was responsible for tallying the cash received by the city as payment for parking tickets, business licenses and other fees. After the cash was counted, Galvan prepared the money for deposit into a city bank account.
According to court documents, Galvan skimmed cash from the daily receipts on numerous occasions, sometimes taking as much $8,000 per day.
Galvan has agreed to forfeit to the government the remaining proceeds of his embezzlement, which includes cash and cars purchased with the stolen money. He has also agreed to pay restitution to the City of Compton as ordered by Judge Staton.
In conjunction with Galvan’s guilty plea, his wife – Rosa Maria Galvan – was charged with money laundering related to the embezzled funds. She pleaded guilty to that charge yesterday as well and will also be sentenced on November 3, 2017.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Daniel O’Brien, Deputy Chief of the Public Corruption and Civil Rights Section. Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section is assisting in the case.
Former CWA Local President Sentenced to One Year and a Day in Prison for Stealing from UnionRead the Press Release
BIRMINGHAM – A federal judge on Thursday sentenced the former president of the Communications Workers of America, Local 3901, in Oxford, Ala., to one year and a day in prison for embezzling from the organization, announced Acting U.S. Attorney Robert O. Posey and U.S. Department of Labor, Office of Labor-Management Standards, Investigator Hollis Lindley Jr.
U.S. District Court Judge Virginia Emerson Hopkins sentenced MICHAEL LACKEY, 44, of Bremen, Ga., on five counts of bank fraud and one count of embezzlement and theft of union funds. Lackey pleaded guilty to the charges in January. The judge ordered Lackey to repay $69,193 to the local and to forfeit that same amount to the government as proceeds of illegal activity. He must report to prison Sept. 11.
Local 3901 members elected Lackey president in October 2008 and he remained in that position until October 2014. As president, Lackey exercised control over the local’s finances, including its accounts at Wells Fargo and Regions banks.
According to his guilty plea, Lackey executed a scheme to defraud the banks and Local 3901 between February 2010 and October 2014 by using his position as Local 3901 president and acting treasurer to conduct unauthorized transactions to take money from the CWA local’s bank accounts and use it for his personal benefit. Those transactions included writing checks to himself from Local 3901 accounts for unauthorized or nonexistent travel expenses, using debit cards he obtained on accounts for the local at both Regions and Wells Fargo for personal expenses, and making cash withdrawals from Local 3901 accounts at both banks for his personal use.
Lackey attempted to conceal his theft by failing to maintain records of his unauthorized transactions and by failing to seek approval for expenditures, as required by federal law and the Local 3901 constitution and bylaws.
Local 3901 members began to suspect in summer 2014 that Lackey had stolen money from the union when a union check bounced. About the same time, Lackey told a national CWA AFL-CIO representative that he had taken out a personal loan using the union’s bank accounts and assets as collateral, and had failed to make the loan payments, leading the bank to collect from the union’s finances, according to court documents.
The U.S. Department of Labor, Office of Labor-Management Standards, investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. prosecuted.
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Florida Return Preparers Plead Guilty to Using Stolen IDs to File Fraudulent Tax ReturnsRead the Press Release
Two Broward County, Florida tax return preparers pleaded guilty today to conspiring to file and filing fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
According to documents filed with the court, Luczor Fertilien, 39, and David Joseph, 37, owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc. From approximately 2010 through 2016, Fertilien and Joseph filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, by reporting fictitious business income, fraudulent education and fuel tax credits and claiming deceased individuals, whose identities were stolen, as dependents. They also filed returns in the names of individuals whose identities had been stolen. Fertilien and Joseph did not report the illegal proceeds they received from this scheme on their personal tax returns and each admitted to causing a tax loss of more than $550,000.
Sentencing is scheduled for Sept. 22 before U.S. District Court Judge William P. Dimitrouleas. Fertilien and Joseph face a statutory maximum sentence of five years in prison on the conspiracy count and a maximum sentence of three years in prison on the false return count. The defendants also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg thanked special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Florida Return Preparers Plead Guilty to Using Stolen Ids to File Fraudulent Tax ReturnsRead the Press Release
Two Broward County, Florida tax return preparers pleaded guilty today to conspiring to file and filing fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Luczor Fertilien, 39, and David Joseph, 37, owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc. From approximately 2010 through 2016, Fertilien and Joseph filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, by reporting fictitious business income, fraudulent education and fuel tax credits and claiming deceased individuals, whose identities were stolen, as dependents. They also filed returns in the names of individuals whose identities had been stolen. Fertilien and Joseph did not report the illegal proceeds they received from this scheme on their personal tax returns and each admitted to causing a tax loss of more than $550,000.
Sentencing is scheduled for Sept. 22 before U.S. District Court Judge William P. Dimitrouleas. Fertilien and Joseph face a statutory maximum sentence of five years in prison on the conspiracy count and a maximum sentence of three years in prison on the false return count. The defendants also face a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney Greenberg and Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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.
Felon in Possession of Firearm Sentenced to 180 Months in Federal PrisonRead the Press Release
Jackson, TN – Caricus Hendrix, 30, was sentenced to 180 months in federal prison for being a felon in possession of a firearm. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on August 8, 2016, investigators with the Jackson Police Department (JPD) observed a vehicle parked in the parking lot of Pandora’s Box blocking the flow of traffic. When investigators approached the vehicle, Hendrix admitted that he had an open container of alcohol and that a firearm was in the center console of the vehicle.
A search of Hendrix revealed "Molly" or ethylone. The firearm, a Smith and Wesson 9mm pistol, was found to be stolen out of Murfreesboro, Tennessee.
On July 12, 2017, the Honorable J. Daniel Breen sentenced Hendrix, who had three prior serious drug offense convictions, as an Armed Career Offender to 15 years’ confinement and a total of 3 years supervised release to begin after his incarceration.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Jackson Police Department and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution. Assistant U.S. Attorney Taylor Eskridge prosecuted this case on the government’s behalf.
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Dominican National Charged with Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was charged yesterday in federal court in Boston with a federal immigration crime.
Julio Ernesto Gomez, 46, was charged with illegally reentering the United States after being deported.
According to the indictment, Gomez was deported in February 2004. On Jun 16, 2017, federal agents in Boston encountered Gomez and found him to be illegally present in the United States.
Gomez faces a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doctor Pleads Guilty in Multi-Million Dollar Health Care Fraud and Money Laundering Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
A doctor pled guilty for his participation in a multi-million dollar health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office; Jeff Atwater, Florida Chief Financial Officer; William D. Snyder, Sheriff, Martin County Sheriff's Office; George L. Dorsett, Assistant Inspector General for Investigations, Amtrak Office of Inspector General; Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB); Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office (PBSO); Bryan Kummerlen, Chief, West Palm Beach Police Department; Jeffrey S. Goldman, Chief, Delray Beach Police Department; Pam Bondi, Florida Attorney General; and Scott Rezendes, Special Agent in Charge, Office of Personnel Management, Office of Inspector General (OPM-OIG); made the announcement.
Joaquin Mendez, 52, of Miramar, pled guilty to one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1347; all in violation of Title 18, United States Code, Section 1349.
Co-defendants Kenneth Chatman, Fransesia Davis, and Michael Bonds established sober homes which were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. To obtain residents for the sober homes, members of the conspiracy provided kickbacks and bribes, in the form of free or reduced rent and other benefits, to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, some of the defendants permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing.
The co-defendants referred the sober homes’ residents who had insurance to treatment centers that purportedly offered clinical treatment services for persons suffering from alcohol and drug addiction. Defendant Chatman hired doctors, including defendant Mendez, to serve as medical directors of his treatment centers. As medical director, Mendez was purportedly responsible for evaluating patients and prescribing medically necessary treatment and testing. Instead of Mendez using his medical expertise and his individual assessments of patients to decide what type of laboratory testing was needed by each patient, co-defendant Chatman dictated the type and frequency of different types of lab testing that would be performed based upon the kickbacks and bribes that he was receiving from different clinical laboratories. Mendez facilitated this testing by signing doctor’s orders for urine drug tests and certificates of medical necessity for saliva drug tests, although Mendez had never seen some of the patients. Mendez knew that insurance claims for the medically unnecessary tests that he prescribed would be submitted to the patients’ insurance companies. When he examined treatment center patients, Mendez billed those patients’ insurance plans using procedure codes that reflected more complex and lengthier examinations than Mendez actually performed.
Mendez faces a maximum of ten years’ imprisonment. Sentencing is scheduled for September 27, 2017 at 10:00 a.m.
Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Palm Beach County State Attorney's Office Sober Homes Task Force, Florida Division of Investigative and Forensic Services, Martin County Sheriff's Office, Amtrak OIG, DOL-OIG, DOL-EBSA, National Insurance Crime Bureau, Palm Beach County Sheriff's Office, West Palm Beach Police Department, Delray Beach Police Department, Florida Attorney General Office of Statewide Prosecution, and OPM-OIG. The cases are being prosecuted by Assistant United States Attorney A. Marie Villafaña.
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.
District Man Sentenced to Nine Years in Prison for Pair of Carjackings in Northwest WashingtonRead the Press Release
WASHINGTON – Travon Carter, 18, of Washington, D.C., has been sentenced to nine years in prison for a pair of carjackings he committed last year in Northwest Washington, U.S. Attorney Channing D. Phillips announced today.
Carter pled guilty in April 2017, in the Superior Court of the District of Columbia, to two counts of carjacking and two related firearms offenses. He was sentenced on July 13, 2017, by the Honorable Ronna L. Beck. Following his prison term, he will be placed on three years of supervised release.
According to a proffer of facts submitted at the time of the plea, the first carjacking took place on Oct. 4, 2016, at about 4 a.m. Carter, along with three other individuals, approached a man in the 900 block of Quackenbos Street NW. The victim reported that all four assailants were wearing masks and armed with firearms. At least one of them knocked the victim to the ground. The group stole the victim’s car keys, cellular telephone, and wallet and took off in the victim’s car. The vehicle was found several hours later in the 700 block of Fairmont Street NW.
The second carjacking took place on Oct. 6, 2016, at about 12:45 a.m., this time in the 1200 block of Sheridan Street NW. Carter and two other individuals approached a woman who had just parked her car. One of Carter’s accomplices was wearing a mask and armed with a firearm. The three demanded the victim’s cellular telephone and car keys and left in her car. They hid the vehicle in a parking lot in the 2500 block of Sherman Avenue NW and then got into another vehicle, driven by a fourth person. Officers with the Metropolitan Police Department (MPD) stopped the vehicle within 90 minutes of the carjacking and arrested all four men.
Carter has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Sarah McClellan, Chief of the Victim/Witness Assistance Unit; Diana Lim, Karina Hernandez, LaJune Thames, M. Laverne Perry, and Katina Adams-Washington, all of the Victim/Witness Assistance Unit; Litigation Technology Specialists Anisha Bhatia, Jeanie Latimore-Brown, Kimberly Smith, and Paul Howell, and former Litigation Technology Specialist Aneela Bhatia;
Finally, he commended the work of Assistant U.S. Attorneys Michael J. Romano and Gregory Rosen, who investigated and prosecuted the matter.
District Man Sentenced to More Than Nine Years in Prison for Robbery and Burglary ChargesRead the Press Release
WASHINGTON – Robert Lewis, 21, of Washington, D.C., was sentenced today to nine years and three months in prison on charges stemming from an armed robbery and two burglaries in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Lewis pled guilty in March 2017, in the Superior Court of the District of Columbia, to robbery, second-degree burglary, and contempt. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of five years in prison. The Honorable Kimberley S. Knowles accepted the plea today and sentenced Lewis accordingly.
In a separate case, also in March of 2017, a jury found Lewis guilty of second-degree burglary and second-degree theft, with a finding that the crimes were committed while Lewis was on pretrial release. In that case, the Honorable Juliet McKenna sentenced Lewis today to four years and three months in prison, to run consecutively to the other prison term.
Following completion of his prison terms, Lewis will be placed on three years of supervised release.
In the guilty plea, Lewis admitted taking part in an armed robbery on the afternoon of June 24, 2016, in the 600 block of Buchanan Street NW; a co-defendant, Donathan Taylor, 20, pled guilty to an armed robbery charge for that offense. Lewis also admitted to committing a residential burglary during the daytime hours of Oct. 16, 2015 in the 700 block of Taylor Street NW. Finally, Lewis pled guilty to a contempt charge for leaving a halfway house, where he was being held while awaiting trial, without authorization on June 22, 2016.
The guilty verdict stemmed from a burglary on April 9, 2015 at a home in the unit block of Gallatin Street NW.
In announcing the sentences, U.S. Attorney Phillips commended the work of those who investigated the cases from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the Latent Fingerprint Unit of the Forensic Science Laboratory of the District of Columbia Department of Forensic Sciences.
Finally, he acknowledged the efforts of those who worked on the cases from the U.S. Attorney’s Office involving Lewis and his co-defendant. They include Assistant U.S. Attorneys Michael J. Romano, Kamil E. Shields and C.B. Buente, and former Assistant U.S. Attorney Alyssa Kociuruba.
District Man Sentenced to 9 1/2-Year Prison Term for Sexually Assaulting 12-Year-Old BoyRead the Press Release
WASHINGTON – A 37-year-old man was sentenced today to a 9½-year prison term for sexually abusing a 12-year-old boy, U.S. Attorney Channing D. Phillips announced.
The man, of Washington, D.C., is not identified here to protect the privacy of the victim. He pled guilty in May 2017, in the Superior Court of the District of Columbia, to first-degree child sexual abuse. The plea, which was subject to the Court’s approval, called for a 9½-year prison term. The Honorable Zoe Bush accepted the plea today and sentenced the defendant accordingly. Upon completion of his prison term, the man will be placed on five years of supervised release. He also will be required to register as a sex offender for a period of 10 years.
According to the government’s evidence, between late Sept. 30, 2016 and early Oct. 1, 2016, the defendant anally raped his son’s 12-year-old friend, who was at their residence in Southeast Washington for a sleepover. The victim disclosed the assault and an investigation led to the man’s arrest.
In announcing the sentence, U.S. Attorney Phillips commended those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the work of the Children’s Advocacy Center, Children’s National Medical Center, and the District of Columbia Department of Forensic Sciences. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson, Forensic Interviewer Tracy Owusu, Paralegal Specialist D’Yvonne Key, and Assistant U.S. Attorneys Elana Suttenberg and Marisa West, who investigated and prosecuted the case.