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Thursday 13 July 2017
Cape Cod Man Sentenced for Heroin Trafficking and Money LaunderingRead the Press Release
BOSTON – A Hyannis man was sentenced yesterday in federal court in Boston for trafficking heroin and money laundering.
Christian Chapman, 27, was sentenced by U.S. District Court Chief Judge Patti B. Saris to eight years in prison and four years of supervised release. In March 2017, Chapman pleaded guilty to money laundering and conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin.
During an investigation in 2015 and 2016, law enforcement determined that Chapman and over a dozen co-conspirators were responsible for a significant quantity of the heroin being distributed on Cape Cod. A wiretap investigation led to their arrests and indictments.
Chapman obtained heroin from suppliers in New Bedford and other areas and distributed the heroin to numerous drug dealers on Cape Cod. In total, Chapman accepted responsibility for distributing between 400 and 700 grams of heroin. Chapman rented a home in Hyannis where he stored his narcotics, and in order to pay the rent, Chapman wired money to the individual whose name was on the lease.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
California Man Pleads Guilty to Federal Offense for Illegally Entering White House GroundsRead the Press Release
WASHINGTON – Jonathan Tran, 27, of Milpitas, Calif., pled guilty today to a federal charge stemming from an incident earlier this year in which he illegally entered the grounds of the White House, announced U.S. Attorney Channing D. Phillips and Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Tran pled guilty in the U.S. District Court for the District of Columbia to a charge of entering or remaining in a restricted building or grounds. The charge carries a statutory maximum of a year in prison and a potential fine. The parties agreed to recommend to the Court that any period of supervised release or probation include conditions, including a prohibition barring Tran from entering the District of Columbia while he is under supervision, except for court appearances and meetings with his lawyer. He also would be required to participate in interviews with the Secret Service to assist in determining potential current and future risks.
The Honorable James E. Boasberg scheduled sentencing for Sept. 25, 2017. Tran remains free on personal recognizance pending the sentencing.
“This guilty plea holds Jonathan Tran accountable for illegally entering the grounds of the White House and putting himself and others at risk,” said U.S. Attorney Phillips. “Thanks to the Secret Service, he was arrested and no one was hurt in this defendant’s reckless and potentially dangerous act.”
“The safety and security of the President, the First Family and all staff and visitors to the White House complex is the Secret Service’s first priority,” said Special Agent in Charge Ebert. “Any attempt to breach security and gain unauthorized access is a serious criminal offense and will be dealt with as such. The Secret Service continuously strives to improve and adapt our protective methodologies and security features to meet the ever growing and evolving threat.”
According to the government’s evidence, on March 10, 2017, at about 11:35 p.m., an officer with the U.S. Secret Service’s Uniform Division saw Tran walking from the east side of the south grounds of the White House complex. Tran, who was wearing a hooded sweater or jacket and carrying a backpack, was approaching the South Portico entrance to the White House. When Tran saw the officer, he altered course and began heading toward the South Lawn. The officer confronted Tran, who claimed to be “a friend of the President.” In a search incident to arrest, two cans of pepper spray were found on Tran, including one inside his jacket pocket.
This case was investigated by the Secret Service’s Washington Field Office. It was prosecuted by Assistant U.S. Attorney David J. Mudd of the U.S. Attorney’s Office.
California Man Convicted of Conspiracy to Commit Arson of Popcorn Store and ExtortionRead the Press Release
LAS VEGAS, Nev. – A California man was convicted by a jury on Wednesday of conspiring with others to burn down a Henderson popcorn business and threatening to injure the business owners, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Following a three-day jury trial, Joel Kenneth Ausbie, 53, of Fontana, Calif., was found guilty of one count of conspiracy to commit arson and one count of committing extortion by force or threat of injury. United States District Judge James C. Mahan presided over the trial and scheduled sentencing for Oct. 18, 2017. Ausbie faces the maximum statutory penalty of 20 years in prison and a $250,000 fine.
According to the indictment and court related documents, Ausbie and co-defendant Calvin Robinson paid co-defendant Joseph A. Strickland to set fire to Las Vegas Kettle Corn & Special Events, LLC, in Henderson. Robinson met Strickland in Victorville, Calif., and provided Strickland with directions as well as a note for Strickland to tape to the front window of the business. The note read: “I still don’t have my money. This is the last warning! Next time someone is going to be dead.” On Oct. 30, 2015, Strickland set fire to the business and as a result the business was closed. After the building fire, Robinson met Strickland and paid him for the act. Strickland also admitted to shooting at a private residence during the relevant conspiracy.
Robinson, 41, of Pomona, Calif., pleaded guilty and is scheduled to be sentenced on Aug. 10, 2017, and Strickland, 35, pleaded guilty and is scheduled to be sentenced on Aug. 28, 2017.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. The case was prosecuted by Assistant U.S. Attorneys Lisa Cartier-Giroux and Cristina D. Silva.
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Buffalo Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Phillip Keomongkoun, 30, of Buffalo, NY, who was convicted of conspiring to possess with intent to distribute, and to distribute, cocaine, was sentenced to two years’ probation by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Joel L. Violanti, who handled the case, stated that between July 2012 and January 18, 2013, the defendant participated in a conspiracy, alleged to have been led by Steven Bennett, to distribute cocaine in the Buffalo area. The investigation into the conspiracy included the court ordered interception of telephone calls and text messages. Those included calls between Keomongkoun and Bennett during which the two discussed cocaine prices and deals. During the calls, the defendant arranged to purchase at least one ounce of cocaine from Bennett, which he then sold to others in the Buffalo area.
On January 18, 2013, Keomongkoun was arrested at 580 Niagara Street in Buffalo and approximately 1.5 ounces of cocaine were seized from his residence.
Charges are pending against Steven Bennett. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.Bronx “YGz” Gang Member Pleads Guilty to Stomping Murder of 16-Year-OldRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that ANTHONY REDDICK, a/k/a “Ant Flocka,” pled guilty today in Manhattan federal court to his involvement in the “Young Gunnaz” or “YGz” gang by participating in the murder of Moises Lora, 16, during which REDDICK and several other YGz gang members stomped Lora to death in a courtyard in the Melrose housing projects in the Bronx on April 16, 2012. REDDICK is scheduled to be sentenced later this year by United States District Judge Valerie E. Caproni, before whom REDDICK pled guilty.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Moises Lora was only 16 years old when Anthony Reddick and his fellow gang members brutally stomped Lora to death in a vicious attack. Thanks to the tireless work of law enforcement, Reddick has now admitted his role in this brutal murder. Although we cannot bring Lora back, we hope that his family will find some small measure of solace in today’s guilty plea.”
According to the Indictment and other documents filed in the case, as well as statements made during REDDICK’s guilty plea and other court proceedings in this case:
REDDICK was a member of the Bronx-based street gang known as the YGz. From 2005 to 2016, members and associates of the YGz enriched themselves by committing robberies and by selling drugs, such as crack cocaine, heroin, and marijuana, and committing acts of violence, including the murder of rival gang members, rival drug traffickers, and innocent bystanders.
As part of his involvement in the YGz gang, REDDICK and several other YGz gang members murdered Lora, a member of a rival gang, on April 16, 2012, in the South Bronx. Specifically, on the date of the murder, a group of YGz members, including REDDICK, got drunk, and began arguing among themselves about who had done the most for the YGz. This group of YGz members went to the territory of a rival gang in the Melrose housing projects to settle their dispute. Upon arriving at the Melrose projects, REDDICK and other members of the YGz saw Lora and attacked him. During the attack, Lora’s skull was fractured in several places. REDDICK and the group left Lora to die. Following the stomping, REDDICK and several of his confederates bragged to fellow YGz members about what they had done.
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REDDICK, 22, of the Bronx, pled guilty to one count of racketeering conspiracy, which carries a maximum sentence of life in prison. REDDICK is the third defendant in United States v. Kareem Lanier, et al., 15 Cr. 537 (VEC), to plead guilty to participating in the stomping murder of Lora.
Mr. Kim praised the outstanding work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the New York City Police Department in the investigation of this case. He also thanked the Bronx County District Attorney’s Office for their support in this case.
This case is being handled by this Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, Gina M. Castellano, and Andrew C. Adams are in charge of the prosecution.
Boylston Man Indicted for Distributing and Possessing Child PornographyRead the Press Release
BOSTON – A Boylston man was indicted today on child pornography charges.
Randy Alan Chaplis, 33, was indicted on one count of distributing child pornography and one count of possessing child pornography involving a prepubescent minor and a minor who had not attained 12 years of age. Chaplis was arrested and charged by criminal complaint on March 16, 2017, and has been detained since his arrest.
According to court documents, on Feb. 9, 2017, Chaplis sent two emails to an undercover law enforcement officer that included dozens of images of child pornography, including prepubescent girls engaged in sex acts with adult men. In other email communications with the undercover officer, Chaplis stated that he likes three-to-10 year olds, and that he has “fun” with his girlfriend’s five-year-old daughter when her mother is not home. Chaplis emailed graphic descriptions of the sexual acts he purportedly performed on his girlfriend’s child starting when the child was two-years-old. He asked whether the undercover officer intended to have sexual intercourse with the undercover officer’s infant daughter once she turned three or four. The complaint also alleges that Chaplis bragged to another internet user about having sexual intercourse with a four-year-old girl.
On March 15, 2017, federal agents executed a search warrant at Chaplis’ residence and seized an external hard drive and a desktop computer that included multiple images of child pornography.
The charging statutes provide for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. 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 today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Charged with Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Boston man was arrested and charged yesterday in federal court in Boston for failing to register as a sex offender.
Rodney Anderson, 45, was arrested and charged with one count of failing to register as a sex offender and was detained following an initial appearance yesterday before U.S. District Court Magistrate Judge Donald L. Cabell. A probable cause and detention hearing is set for Monday, July 17, 2017.
Anderson is required to register as a sex offender in Massachusetts based on a North Carolina state court conviction for second degree rape in 1986. Shortly following his release from custody for that conviction in 2014, Anderson left North Carolina for Massachusetts. When he arrived, he failed to report to authorities, but was tracked to a residence in Boston.
Failing to register as a sex offender provides for a sentence of no greater than 10 years in prison, a minimum of five years and up to a lifetime of supervised release, and up to a $250,000 fine. 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; U.S. Marshal John Gibbons of the District of Massachusetts; and Boston Police Commissioner William B. Evans made the announcement. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Birmingham Man Sentenced to 20 Years in Prison for Selling Fentanyl that Caused 20-Year-Old’s DeathRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to 20 years in prison for distributing fentanyl, a potent synthetic opioid painkiller, that caused the death of a 20-year-old Pelham woman, announced Acting U.S. Attorney Robert O. Posey and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
U.S. District Court Judge Madeline H. Haikala sentenced RODRIGUS LEE PEARSON, 31, for illegally distributing fentanyl that resulted in a death in January 2016 in Jefferson County. She also sentenced Pearson for distributing heroin on Feb. 8, 2016, distributing fentanyl on Feb. 23, 2016, possessing with intent to distribute heroin, cocaine and crack cocaine on March 30, 2016, and for being a felon illegally possessing a gun – an H & K .40-caliber pistol – on March 30, 2016. Pearson pleaded guilty to the charges in March. His previous felony conviction was for unlawful possession of a controlled substance in Jefferson County Circuit Court in September 2014.
As part of Pearson’s sentence, the judge ordered him to pay $22,893 in restitution to the family of Ashlynn Bailey to cover her funeral expenses.
Bailey, a former University of Alabama student, died after purchasing fentanyl from Pearson. Police found her in a house on Jefferson Avenue in Birmingham on Jan. 30, 2016, after responding to a call of a suspected drug overdose death. Witnesses said Bailey had been purchasing heroin from Pearson and that he likely substituted the fentanyl, which was found in her system, for heroin.
“In those cases where we can prove a death resulting from an illegal sale of drugs, we will pursue an enhanced sentence as we did in this case,” Posey said. “When the use of an illegally-sold controlled substance results in the overdose death of the consumer, federal law provides for a minimum 20-year sentence for the dealer. The rapid rise of overdose deaths in our communities requires that we use all available means to disrupt and punish those who sell these deadly drugs,” he said. “We also encourage our state and local law enforcement partners to consider federal prosecution when they have a death-resulting case in their jurisdiction.”
“Ashlynn Bailey, the victim who died from taking the drugs that Pearson sold her, wasn’t given a chance to plead,” Hamilton said. “She was sentenced to death when Pearson delivered the fentanyl-laden drugs. If you are a drug dealer, you may soon become a murderer and you will be caught and prosecuted.”
According to Pearson’s guilty plea, a taxi driver called Birmingham Police after finding Bailey unresponsive at the western Birmingham house. The taxi driver had left her there the night before and returned to pick her up the next morning to take her to a business on U.S. 280 in Birmingham where Bailey said she worked and could get cash to pay cab fare she owed.
Bailey had borrowed the taxi driver’s cell phone and placed calls the night before. Police later determined that one of the two numbers she called was to a phone Pearson used for drug transactions.
The two drug distribution charges Pearson pleaded guilty to resulted from controlled purchases that a DEA confidential source made from Pearson after contacting the dealer at the same number Bailey had called from the taxi driver’s phone the night she died. On the first occasion, DEA agents obtained heroin from Pearson. On the second, agents received fentanyl despite having attempted to buy heroin. A third charge of possession with the intent to distribute heroin stems from Pearson being found in possession of heroin, cocaine, crack cocaine and the .40-caliber pistol, as well as drug paraphernalia, following a traffic stop.
DEA investigated the case, which Assistant U.S. Attorneys Gregory R. Dimler and Jim Weil prosecuted.
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Baton Rouge-Based Medicare Fraud Strike Force Announces Charges Against Four More Individuals for Health Care Fraud and Related OffensesRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced today the unsealing of two federal grand jury indictments charging four individuals with health care fraud and related offenses. The cases were unsealed as part of the 2017 National Health Care Fraud Takedown, during which federal, state, and local law enforcement partners announced charges of more than 400 defendants across 41 different federal judicial districts.
The Medicare Fraud Strike Force is part of the joint initiative announced in May 2009 between the U.S. Department of Justice and the U.S. Department of Health and Human Services to reduce and prevent Medicare and Medicaid fraud through enhanced cooperation. In December 2009, a Medicare Fraud Strike Force team was deployed in the U.S. Attorney’s Office in Baton Rouge, Louisiana. Strike Force teams bring together the resources of the U.S. Department of Health and Human Services—Office of Inspector General, the Federal Bureau of Investigation, the U.S. Department of Justice’s Criminal Division—Fraud Section, the U.S. Attorneys’ Offices, and other law enforcement agencies, including, in Baton Rouge, the Louisiana Attorney General’s Medicaid Fraud Control Unit. Over the past seven years, the team has continued working in Baton Rouge and expanded across southern Louisiana.
Louisiana Spine & Sports
In the first case, a federal grand jury has returned an indictment charging John Eastham CLARK, M.D., age 65, of Baton Rouge, Louisiana, and Charlene Anita SEVERIO, age 54, of Walker, Louisiana, with conspiracy to commit wire fraud and health care fraud. The charges stem from Dr. CLARK and SEVERIO’s role in a $4.4 million fraud scheme in which Dr. CLARK and SEVERIO allegedly submitted false claims to Medicare and private insurance companies on behalf of Louisiana Spine & Sports LLC, a pain management clinic in Baton Rouge co-owned by Dr. CLARK. Namely, according to the indictment, Dr. CLARK, and SEVERIO, his billing supervisor, falsified claims to indicate that certain minor surgical procedures occurred on separate days as patient visits, and then instructed employees to create false records substantiating those claims. The indictment also alleges that the defendants submitted false claims seeking reimbursement for medically unnecessary quantitative urinalysis tests. The indictment charges both defendants with two counts of conspiracy to commit wire fraud and health care fraud, and charges Dr. CLARK with an additional two counts of health care fraud. This ongoing investigation is being handled by Dustin Davis, who serves as Assistant Chief of the Department of Justice’s Criminal Division—Fraud Section, Assistant U.S. Attorney Adam Ptashkin, and Jared Hasten of the Fraud Section.
Express ACA
In the second case, a federal grand jury has returned an indictment charging Keaton L. COPELAND, age 32, of Miramar, Florida, and Dorothy V. DELIMA, a/k/a Dorothy V. Copeland, age 45, of Davie, Florida, with a scheme to submit fraudulent health insurance applications to Blue Cross/Blue Shield of Louisiana and other private insurers. According to the indictment, the defendants owned and operated Express ACA, LLC, a health insurance brokerage company in Florida, and they devised a scheme to submit fraudulent health insurance applications to various insurers for health insurance plans that would satisfy the Affordable Care Act’s “minimum essential coverage” requirement. Specifically, according to the indictment, the defendants submitted numerous fraudulent applications for so-called “bronze plans,” the premiums for which were fully subsidized by the U.S. Government, without the named applicants’ knowledge, consent, or authorization. The indictment charges both COPELAND and DELIMA with conspiracy to commit wire fraud and five counts of wire fraud, and the indictment also charges COPELAND with additional counts of wire fraud and aggravated identity theft. This ongoing investigation is being handled by Assistant United States Attorneys J. Brady Casey and Ryan R. Crosswell.
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Since its inception, the Baton Rouge-based Medicare Fraud Strike Force has charged more than 80 defendants with health care fraud and related offenses, achieving a 95% conviction rate and sending nearly 50 of those defendants to federal prison.
Acting U.S. Attorney Corey Amundson stated, “Our medical providers spend countless hours caring for our everyday ailments, improving and extending our lives, and often fighting for us in our most desperate hours. They are rightly viewed as some of the most trusted and respected members of our society. Too often, the few dishonest providers hijack this well-earned respect and trust to line their own pockets through fraud. My office, which has sent nearly 50 healthcare fraud defendants to federal prison since the inception of the Medicare Fraud Strike Force, will continue to work tirelessly with our outstanding federal, state, and local partners to root out these bad actors. I greatly appreciate all those who have contributed to this important and successful law enforcement effort.”
“The indictments returned in both of these cases affirm our commitment to protecting the integrity of our nation’s health insurance programs,” said Special Agent-in-Charge C.J. Porter of the United States Department of Health and Human Services, Office of Inspector General’s (OIG) Dallas Regional Office. “These investigations are also indicative of our continuing efforts to work closely with our Federal and State law enforcement partners to identify and bring to justice those who deliberately manipulate health insurance systems to fraudulently obtain money from Medicare, Medicaid and other federally funded health care programs.”
Jeffrey S. Sallet, the Special Agent-in-Charge of the New Orleans Division of the Federal Bureau of Investigation, stated, “Countless Americans rely on the Medicare and Medicaid programs for essential health coverage. The New Orleans Division of the FBI, along with its local, state and federal partners, will continue to identify and pursue any individuals or entities who would seek to harm and diminish these programs through fraud.”
Louisiana Attorney General Jeff Landry stated, “The success of this initiative shows that collaboration between law enforcement agencies at all levels combats crime. Our investigators work around the clock to fight waste, fraud, and abuse in Medicaid. My office and I are committed to doing all we can to save taxpayer money and protect this program for the people in our State that need it the most. I am proud of the results our team achieved during this operation and what we do daily to reduce Medicaid fraud.”
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Baltimore County Man Sentenced to 36 Months in Federal Prison for Money Laundering and Bankruptcy FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On July 11, 2017, U.S. District Judge J. Frederick Motz sentenced Eric Myles Gordon, age 49, of Baltimore County, Maryland, to 36 months in prison, followed by 3 years of supervised release. Gordon was also ordered to pay restitution of $545,875. On April 7, 2017, a jury convicted Gordon of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, and falsification of records in bankruptcy.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon Johnson of the Federal Bureau of Investigation; and U.S. Trustee Judy Robbins and the Baltimore office of the United States Trustee Program.
According to evidence presented at the three-week trial in April 2017, Gordon opened two businesses in 2009, the Gordon Institute for Sports Performance and the Gordon Institute for Human Performance. By May of 2012, Gordon filed a petition for bankruptcy under Chapter 11 for GISP, and on August 9, 2012, filed a joint petition in bankruptcy under Chapter 7 on behalf of himself and his wife. The petition sought the discharge of over $2 million in both secured and unsecured debt.
In this same time frame, Gordon and co-conspirator, Saleh Stevens, discussed a way for Gordon to get funds that were “tainted,” would not “pass the smell test,” and had to be “kept off the government’s radar.” These funds were stolen by Stevens from his employer, Hanover Insurance.
In total, $545,875 was funneled through Gordon’s business bank account, with Gordon realizing approximately $36,000 as his fee for laundering the funds for Stevens. Ultimately, over $500,000 of these funds were provided to an individual who ran a NASCAR racing team.
In connection with the Chapter 7 petitions in bankruptcy, Gordon was required to produce bank records, which showed the deposits in September of 2012 totaling $545,875. In an effort to falsely explain the movement of funds, Gordon provided a pdf file styled as a “bridge loan” agreement, along with an explanation for the deposit of $545,875 and nearly immediate dissipation of funds in the account. This document purported to be executed on September 13, 2012, but was signed by Gordon as the borrower on September 10, 2012; the document was not signed by the lender. The bridge loan agreement was drafted after the fact by Stevens as part of the false story crafted by Gordon to explain the movement of funds through his bank account.
Stevens pled guilty in August 2014 to mail fraud and is awaiting sentence.
Acting United States Attorney Stephen M. Schenning commended the FBI, and the United States Trustee’s Baltimore Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorneys Judson T. Mihok and P. Michael Cunningham, who prosecuted the case.
Attorney Involved in Scheme that Targeted Distressed Homeowners Sentenced to 30 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRADFORD BARNEYS, 51, of Odenton, Maryland, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by three years of supervise release, for conspiring with Timothy W. Burke in a long-running fraud scheme that targeted distressed homeowners throughout Connecticut. BARNEYS was an attorney licensed to practice in Connecticut and has an office in Bridgeport.
According to court documents and statements made in court, between approximately 2010 and November 2015, Timothy W. Burke, formerly of Easton, engaged in a scheme to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages. The distressed homeowners agreed to sign various documents that Burke presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership. Burke also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure. After he gained control of these houses, Burke rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that Burke owned the property.
Burke or one of his agents then collected rent from tenants, and Burke used the funds for his own benefit. He also failed to negotiate with the homeowners’ mortgage lender or pay expenses associated with the home, including the homeowner’s mortgages and property taxes, and he failed to pay any rental income he was collecting to the homeowners. Many of the properties Burke purportedly purchased were ultimately foreclosed upon by the mortgage lender.
Burke undertook extensive efforts to disguise his true identity, and hide his criminal past, from his victims through the use of multiple aliases and business entities, and to conceal the sources of and expenditures from his criminal proceeds.
Between approximately 2011 to at least 2014, BARNEYS participated in dozens of meetings with Burke and with homeowners at BARNEYS’ law offices in Bridgeport. At the meetings, Burke represented to homeowners that he would purchase their properties and presented to the homeowners quitclaim deeds, management agreements, indemnification agreements, and third party authorizations.
BARNEYS was paid more than $72,000 in fees and other monies for his participation in the fraud.
At some point after BARNEYS began representing Burke in these meetings with homeowners, BARNEYS knew that Burke had no intention of buying the properties and paying the outstanding mortgages on the properties. Nevertheless, BARNEYS continued to participate in these meetings and represented that these transactions were legitimate. When questioned by homeowners about the status of their sales, BARNEYS would assure them that their sales to Burke or one of his companies were progressing as Burke promised. BARNEYS also knew that, once Burke obtained the properties from the homeowners, he would rent them out to tenants.
BARNEYS also represented Burke and his companies in eviction proceedings against tenants.
The investigation further revealed that BARNEYS engaged in separate fraud scheme similar to the scheme that Burke engineered. BARNEYS assisted two Maryland residents in purchasing a commercial property located on Boston Avenue in Bridgeport. BARNEYS then acted as a purported landlord for the property, executed long-term lease agreements with at least two tenants, and collected tens of thousands of dollars of rent without the actual owners’ knowledge or authorization and kept the funds for his own use.
On February 21, 2017, BARNEYS pleaded guilty to one count of conspiracy to commit mail and wire a fraud.
BARNEYS’ law license was temporarily suspended by state authorities after he pleaded guilty, with additional proceedings scheduled to determine whether further discipline is warranted. Judge Shea ordered BARNEYS not to apply for reinstatement of his law license, and not to engage in any business related to real estate, while he is on supervised release.
On January 24, 2017, Burke pleaded guilty to one count of mail fraud and one count of tax evasion. On April 28, 2017, he was sentenced to 108 months of imprisonment.
This matter was investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, U.S. Postal Inspection Service, and Internal Revenue Service – Criminal Investigation Division, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted by Assistant U.S. Attorneys David T. Huang and Sarah P. Karwan.
As Part of National Health Care Fraud Takedown, Federal Prosecutors in Los Angeles Charge 14 Defendants in Fraud Schemes that Allegedly Cost Public Healthcare Programs nearly $150 MillionRead the Press Release
LOS ANGELES – In the largest-ever health care fraud enforcement action by federal prosecutors, 14 defendants – including doctors, nurses and other licensed medical professionals – have been charged in the Central District of California for allegedly participating in health care fraud schemes that caused approximately $147 million in losses.
The defendants charged locally are among hundreds of people charged across the United States in cases that cumulatively allege approximately $1.3 billion in false billings. The nationwide sweep includes charges against more than 120 defendants – some of whom are doctors – who allegedly prescribed and distributed opioids and other dangerous narcotics.
In the Central District of California, 14 defendants were charged for their roles in schemes to defraud health insurance programs such as Medicare. The cases allege health care fraud and kickback schemes involving compounded drugs, home health services, physical therapy, acupuncture, Medicare Part D prescription drugs, diagnostic sleep studies and hospice care.
“Health care fraud schemes such as these threaten the vital trust between a patient and his or her health care provider, undermine the integrity of our health care system, and cost all Americans billions of dollars,” said Acting United States Attorney Sandra R. Brown. “Today’s announcement serves as a clear warning that we will continue to work with our law enforcement partners to identify and hold accountable health care professionals who commit these crimes.”
The defendants charged locally include four physicians, including Dr. Jeffrey Olsen, who was charged with illegally prescribing controlled substances, including the opiate oxycodone.
The 57-year-old Olsen surrendered to authorities on Tuesday after being indicted last week by a federal grand jury on 34 counts of illegally prescribing controlled drugs, including oxycodone, and one count of false statement on a DEA registration application. Olsen, a resident of Laguna Beach, allegedly sold prescriptions to addicts and drug dealers in exchange for fixed cash fees, without any medical basis for the prescriptions.
During the investigation, Olsen also sold hundreds of prescriptions to addicts in other states, such as Oregon, without ever seeing the “patients” for an in-person examination. In text messages to these out-of-state customers, Olsen allegedly told customers that, in exchange for exorbitant fees as high as $3,000, he would write prescriptions for whatever drug they wanted, and that he would never check whether they were actually taking the prescribed drugs or whether they were getting additional narcotic prescriptions from other doctors. Olsen allegedly sold more than 1.2 million pills of narcotics, which were almost entirely at maximum strength, in addition to hundreds of thousands of pills of other controlled drugs such as the sedatives Xanax and Soma. The case against Olsen is being prosecuted by Assistant United States Attorneys Ben Barron and Bryant Yang.
In another local case involving a physician, Dr. Thomas S. Powers and Anthony Paduano were arrested Tuesday on healthcare fraud charges that allegedly bilked TRICARE.
The indictment in this case alleges that Powers, of Santa Ana, authorized prescriptions for compounded medications for patients he never examined. Under an agreement, Paduano, of Newport Beach, allegedly paid Powers $200 for each prescription. Paduano received approximately $1.2 million for referring the prescriptions to a local pharmacy that billed TRICARE more than $4.8 million and was paid more than $3.1 million. This case is being handled by Assistant United States Attorneys Mark Aveis, Paul Stern and Cassie Palmer.
“Americans already struggling with health care issues and rising premiums are further burdened with each dollar lost to fraud,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The losses estimated in Los Angeles for this operation alone are staggering as the abundance of health care fraud schemes in southern California adds considerably to this nationwide crime issue. By collaborating with our partners, we will continue to hold accountable those who get rich by targeting federal health care programs with fraud.”
“Those who would enrich themselves through healthcare fraud – including billing for unnecessary services, accepting kickbacks, and billing for prescriptions that were never provided – are putting profits over patients, stealing from government health programs and taxpayers alike,” said Special Agent in Charge Christian Schrank, of the U.S. Department of Health and Human Services Office of Inspector General. “These operations show yet again our commitment to working with our federal and state law enforcement partners. In fighting this epidemic, we must all stand together.”
“IRS Criminal Investigation will not stand still while criminals line their pockets with illicit proceeds obtained from publicly funded health care programs,” said IRS Criminal Investigation Special Agent in Charge R. Damon Rowe. “It depletes scarce taxpayer dollars and will not be tolerated. IRS Criminal Investigation will continue to work with our federal and state law enforcement partners to bring justice to those individuals who prey on the nation's health care system for their own personal greed.”
“Our office, in partnership with our fellow investigative agencies, will continue to uncompromisingly investigate and bring to justice the people who perpetrate these criminal acts,” said Amtrak Inspector General Tom Howard. We will remain vigilant in protecting Amtrak employees, retirees, and their dependents, by ensuring our health care dollars are not wasted on fraudulent providers,"
“The Department of Labor – Employee Benefits Security Administration will continue to vigorously investigate wrongdoers committing health care fraud against employer sponsored health plans in Southern California which also impact TRICARE, Medicare, Medicaid” said Crisanta Johnson, DOL-EBSA’s Los Angeles Regional Office.
The other cases filed in federal court in Los Angeles as part of the nationwide sweep are:
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Aniceto Baliton, of Diamond Bar, co-owner and managing employee of Bliss Hospice in Glendora, was charged yesterday with one count of conspiracy to pay and receive illegal remunerations for health care referrals. The charge stems from Baliton’s role in a fraud scheme to pay kickbacks in exchange for Medicare beneficiaries referred to Bliss and billed by Bliss for hospice services. As part of the fraud scheme, Baliton and the co-owners of the hospice also agreed to generate cash for the illegal kickbacks by disguising such monies as payroll expenses. Based on the referrals that Baliton and his co-conspirators obtained through illegal kickbacks, Bliss submitted claims to Medicare and was paid approximately $2.4 million. The case is being handled by DOJ Trial Attorney Claire Yan.
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Aleksandr Suris and Maxim Sverdlov, co-owners and operators of Royal Care Pharmacy in Los Angeles, were arrested Monday on charges related to a scheme that allegedly brought in more than $41.5 million from Medicare and CIGNA. The indictment in this case charges Suris with two counts of conspiracy to commit health care fraud and 10 counts of health care fraud, and Sverdlov with one count of conspiracy to commit health care fraud and four counts of health care fraud. The defendants allegedly submitted fraudulent bills for prescription drugs that were never filled by the pharmacy or were not provided to the person to whom the drug was prescribed. The case is being handled by DOJ Trial Attorney Robyn N. Pullio.
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Dr. Kanagasabai Kanakeswaran was indicted late last month on one count of conspiracy to pay and receive kickbacks for health care referrals and four counts of receiving kickbacks for health care referrals. The charges arise from a kickback conspiracy at a home health company called Star Home Health Resources. The owners and operators of Star allegedly paid kickbacks to referring physicians, including Dr. Kanakeswaran, in exchange for the physicians referring Medicare beneficiaries to receive home health services from Star. The indictment alleges that from May 2008 to May 2016, Star was paid $4,157,311 from Medicare based on home health services that Dr. Kanakeswaran referred to Star in exchange for illegal kickbacks. The case is being handled by Assistant United States Attorney Alex Porter and DOJ Trial Attorney Claire Yan.
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Jamen Oliver Griffith and Damon Glover were charged late last month with conspiring to solicit, receive and pay illegal kickbacks for health care referrals. The charges stem from defendants’ role in a scheme involving undisclosed payments for generating and steering prescriptions of compounded drugs to Valley View Drugs, Inc., a pharmacy located in La Mirada. As set forth in plea agreements that have been filed in court, Griffith and Glover owned and operated Western Medical Solutions, a “marketing” company that paid non-employee “marketers” to generate compounded drug prescription referrals for Valley View. Commission payments to “marketers” for prescription referrals were based on a percentage of the amount insurance companies reimbursed Valley View. Health insurers ultimately reimbursed Valley View $13,860,083 for prescriptions generated by WMS-affiliated marketers. In turn, Valley View paid WMS approximately $7,622,864 for the prescription referrals. The case is being handled by Assistant United States Attorney Ashwin Janakiram.
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Xiao “Kimi” Gudmundsen, a licensed acupuncturist and the owner of Healthy Life Acupuncture Center, Inc., which operated at two sites in Los Angeles and Riverside, was charged on June 22, with eight counts of health care fraud and three counts of money laundering. The charges arise from allegations that Gudmundsen recruited Amtrak employees to visit Healthy Life and then, among other things, billed the Amtrak health care plan for acupuncture and other services that were not actually provided. The indictment also charges that Gudmundsen laundered payments received from Amtrak for the false bills through various accounts, including accounts held in the names of relatives. Also charged in the indictment are Suzana Cortez, a Healthy Life employee (who faces five counts health care fraud) and Gladys Perez, an Amtrak employee (who faces two counts of health care fraud). This case is being handled by Assistant United States Attorney Poonam Kumar.
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James Chen pleaded guilty on June 19 to a health care fraud charge related to his pharmacy processing and billing TRICARE for approximately $62 million for fraudulent prescriptions for compounded medications after Chen paid more than 50 percent in referral fees to marketers. The case is being handled by Assistant United States Attorneys Mark Aveis, Paul Stern and Cassie Palmer.
Indictments and criminal informations contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The cases from the Central District of California are the result of investigations conducted by the United States Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; the Defense Criminal Investigative Service; the Drug Enforcement Administration; IRS Criminal Investigation; the Office of Personnel Management, Office of Inspector General; the Veterans Administration, Office of the Inspector General; the Department of Labor - Employee Benefits Security Administration; the California Department of Insurance, Fraud Division; the United States Postal Service, Office of the Inspector General; Amtrak’s Office of the Inspector General; the California Board of Pharmacy; California’s Department of Health Care Services; and the California Department of Justice.
The local cases were filed by Assistant United States Attorneys and Trial Attorneys with the Justice Department’s Medicare Fraud Strike Force. The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
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Albuquerque Man Sentenced to Prison for Conviction on Federal Fraud and Theft of Mail ChargesRead the Press Release
ALBUQUERQUE – Jeremy L. Lara, 37, of Albuquerque, N.M., was sentenced this afternoon in federal court to 30 months in prison followed by three years of supervised release for his conviction on federal fraud and theft or mail charges.
Lara was arrested in May 2016, on a criminal complaint charging him with theft of mail on May 19, 2016, in Sandoval County, N.M., after law enforcement officers found Lara in the process of stealing mail from a community mailbox. According to the complaint, officers recovered a counterfeited USPS arrow key as well as stolen mail from inside Lara’s vehicle.
Lara was subsequently charged in a ten-count indictment on June 14, 2016. Lara was charged with the following: three counts of bank fraud and three counts of aggravated identity theft on Nov. 11, 2015, Nov. 13, 2015, and Nov. 15, 2015; two counts of possession of a counterfeit postal key on Dec. 19, 2015 and May 19, 2016; and three counts of theft or receipt of stolen mail on Dec. 21, 2015 and May 19, 2016. The indictment alleges that the crimes took place in Bernalillo and Sandoval Counties, N.M. The indictment includes forfeiture provisions requiring Lara to forfeit $4,870.28 to the United States.
On Oct. 13, 2016, Lara pled guilty to all counts of the indictment. In entering the guilty plea, Lara admitted that he stole mail by using a counterfeit USPS arrow key that he created. Lara further admitted that he specifically sought out driver’s licenses, bank cards and other personal identifying information to access the bank accounts of legitimate card holders, and impersonated the account holders by using their bank cards and PIN numbers to withdraw cash from ATMs.
This case was investigated by the U.S. Postal Inspection Service and the Rio Rancho Police Department. Assistant U.S. Attorney Nicholas Jon Ganjei prosecuted the case.
Akron man sentenced to 16 years in prison for selling fentanyl that resulted in fatal overdoseRead the Press Release
An Akron man was sentenced to 16 years in prison for selling fentanyl that caused a fatal overdose, law enforcement officials said.
Steven D. Daniels, 32, previously pleaded guilty to one count of distribution of fentanyl that resulted in death.
Daniels sold fentanyl that caused the 2016 fatal overdose of a person identified as T.B. in Akron, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the Akron Police Department and Drug Enforcement Administration
Wednesday 12 July 2017
Zuni Pueblo Man Pleads Guilty to Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Justin Owen Poblano, 24, an enrolled member and resident of Zuni Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to an aggravated child sexual abuse charge under a plea agreement that recommends a maximum sentence of 15 years of imprisonment. Poblano will be required to register as a sex offender after completing his prison sentence. The guilty plea was announced by Acting U.S. Attorney James D. Tierney and Chief Timothy Trimble of the Zuni Pueblo Tribal Police Department.
Poblano was arrested in Aug. 2012, on an indictment charging him with engaging in a sexual act with a child between 12 and 16 years of age on June 10, 2012, on the Zuni Pueblo in McKinley County, N.M. According to court documents, proceedings in the case were delayed during the pendency of competency proceedings. Poblano remained in federal custody from the time of his arrest until the court found him competent in Oct. 2014.
During today’s proceedings, Poblano pled guilty to a felony information charging him with aggravated sexual abuse. In entering the guilty plea, Poblano admitted that on June 10, 2012, while at a residence on the Zuni Pueblo, he forced the victim to engage in a sexual act. Poblano remains in custody pending a sentencing hearing, which is scheduled for July 25, 2017, in Santa Fe, N.M.
This case was investigated by the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorney Kyle T. Nayback is prosecuting this case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
The case also is being prosecuted under Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
York Man Indicted for Armed Bank Robbery and Armed Robbery of A Convenience StoreRead the Press Release
HARRISBURG– The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Austin Carr, age 23, of York, Pennsylvania, was indicted by a federal grand jury with armed bank robbery, the armed robbery of a convenience store, and two counts of possession of a firearm in furtherance of a crime of violence.
According to U.S. Attorney Bruce D. Brandler, the indictment alleges that Carr robbed the Turkey Hill on West Market Street in York on June 14, 2017, using a silver and black .380 caliber, Smith and Wesson handgun. Carr allegedly used the same firearm to rob the M&T Bank on West Market Street in York on June 17, 2017.
The matter was investigated by the FBI Capital City Violent Crimes Task Force, the York City Police Department, the West York Borough Police Department, and the West Manchester Township Police Department. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life 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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Would-Be Bomber Sentenced to 120 Months ImprisonmentRead the Press Release
G. F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces Clinton Scott Bass, age 34, of Hahira, Georgia, was sentenced today by Senior United States District Court Judge Hugh Lawson in Valdosta. Mr. Bass was sentenced to 120 months imprisonment, the maximum sentence under the statute and guidelines, for attempting to receive and transport explosive materials with intent to kill, injure or intimidate.
In March 2017, Mr. Bass solicited and paid for what he believed to be a mail bomb through the Internet. Mr. Bass subsequently attempted to arm the bomb before delivering it to the doorstep of his intended target. Through the efforts of the Federal Bureau of Investigation and other law enforcement agencies, Mr. Bass’s attempt was thwarted and no one was injured.
“The FBI committed substantial resources to spearheading this investigation. But for the dedication, hard work and ingenuity of the FBI agents, and the other federal and local law enforcement officers working with them, this case could well have ended with tragic consequences,” said United States Attorney Peterman. “Instead, justice has been done.”
David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, stated: “This investigation and its resulting arrest, guilty plea, and sentencing, while expending exhaustive law enforcement resources, prevented an imminent homicide and removed a dangerous individual from our streets. The FBI would like to thank its many law enforcement partners that were so vital to this effort for their commitment and dedication in seeing this matter through.”
The case was investigated by the Federal Bureau of Investigation, United States Postal Service, Valdosta Police Department, Lowndes County Sheriff’s Department, and the Hahira Police Department. Assistant United States Attorneys Julia C. Bowen and Peter D. Leary prosecuted the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
West Haven Woman Admits Robbing 3 Connecticut BanksRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that COURTNEY WORTHINGTON, 29, of West Haven, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of bank robbery and admitted that she robbed a total of three Connecticut banks in December and January.
According to court documents and statements made in court, WORTHINGTON robbed the TD Bank at 636 Campbell Avenue in West Haven on December 19, 2016; the Peoples Bank at 198 Amity Street in Woodbridge on January 2, 2017, and the TD Bank at 184 Route 81 on January 5, 2017. During each robbery, WORTHINGTON handed the teller a note containing threats and demanding money.
WORTHINGTON was arrested on January 5 at a hotel in East Haven. She has been detained since her arrest.
Judge Meyer scheduled sentencing for October 11, 2017, at which time WORTHINGTON faces a maximum term of imprisonment of 20 years.
This investigation has been conducted by the FBI, the Connecticut State Police and the West Haven and Woodbridge Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Waterbury Man Pleads Guilty to Heroin Charge Stemming from Overdose Death in WinstedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PETER HASKELL, 32, of Waterbury, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession with intent to distribute, and distribution of, heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the morning of April 17, 2016, Winchester Police officers and emergency medical personnel responded to a Winsted residence on the report of an unresponsive woman. The woman, who was 27, was pronounced deceased at the scene. Within the residence, officers located and seized several opened and unopened wax folds (“bags”) of suspected heroin/fentanyl, and other narcotics paraphernalia. Investigators also seized the victim’s cell phone.
The investigation revealed that the day before she was found dead, the victim traveled to Waterbury to purchase heroin from HASKELL.
The Connecticut Chief Medical Examiner’s Office determined that the victim’s death was caused by acute intoxication due to the combined effects of fentanyl, heroin, hydrocodone and alcohol.
HASKELL was arrested on a federal criminal complaint on April 21, 2017, and has been detained since his arrest. When he is sentenced, he faces a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Winchester Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe and Fairfield Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorneys Robert M. Spector and Natasha Freismuth.
United States Settles Lawsuit over Electric Cable in Boston HarborRead the Press Release
A lawsuit was settled today involving an electrical cable beneath Boston Harbor that runs across two shipping channels that the government alleged was not placed at the required depth when it was installed in 1990. The settlement will allow the Boston Harbor Deep Draft Navigation Improvement Project to continue and ensure that modifications will come at no cost to the United States or Massport.
NSTAR Electric Company d/b/a Eversource Energy (NSTAR), NSTAR subsidiary Harbor Electric Energy Company (HEEC), and the Massachusetts Water Resources Authority (MWRA) have entered into an agreement to settle a lawsuit filed against them by the United States in connection with a submarine electrical cable that lies beneath Boston Harbor and runs across two federal shipping channels. The government’s complaint alleged that the cable was not installed as deep as required by a permit issued by the New England District of the U.S. Army Corps of Engineers (USACE).
“The settlement will remedy the Clean Water Act and River and Harbors Act permit violations,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The permit violations in connection with the electric cable running under Boston Harbor will be resolved, so that the Deep Draft Project can proceed as scheduled. In addition, the settlement shows the commitment we place on upholding the integrity of U.S. Army Corps of Engineers dredge-and-fill permits, and the work the Corps does to protect our Nation’s waterways and highways of commerce.”
“This settlement will allow the Deep Draft project to proceed as planned,” said William D. Weinreb, Acting United States Attorney for the District of Massachusetts. “The Deep Draft project is necessary to keep the Port of Boston and its shipping facilities competitive with other East Coast ports. The settlement also means there will be no interference with the provision of electricity to the Deer Island Waste Water Treatment Plant, which is critical to keeping Boston Harbor clean. This is a victory for both the local economy and the environment.”
The cable, installed in 1990, extends from an NSTAR electrical substation in South Boston to Deer Island. Its purpose was to provide electricity to power the construction and operation of the Deer Island Waste Water Treatment Plant, which is run by the MWRA. The permit required the cable to be embedded at least 25 feet below the bottom of two shipping channels that it crosses, the Reserved Channel and the Main Ship Channel.
The improper installation of the cable took on urgency in 2014, when Congress authorized the deepening of Boston Harbor, including the channels crossed by the cable. The $310 million project to deepen the shipping channels will provide increased depth between Massachusetts Bay and Conley Container Terminal to accommodate the new generation of larger container ships. The harbor deepening project, known as the Deep Draft project, is being led by the USACE in partnership with Massport, which operates Conley Container Terminal. USACE determined that the existing depth of the cable was likely to interfere with the dredging operations of the Deep Draft project, putting the entire project at risk.
The government’s complaint alleged that the permittees – NSTAR, HEEC, and the MWRA – violated two federal laws under which the permit was issued, the Rivers and Harbors Act of 1899 and the Clean Water Act. Massport intervened in the lawsuit, siding with the United States.
Under the terms of the settlement, HEEC will lay a new electrical cable across Boston Harbor from South Boston to Deer Island – but outside the Reserved Channel and out of the way of the Deep Draft project – by the end of 2019. HEEC will then remove the existing cable. Neither the United States nor Massport will bear any of the cost to install or maintain the new cable or remove the existing cable.
Acting Assistant Attorney General Wood, Acting U.S. Attorney Weinreb, and Colonel Christopher Barron, District Engineer and Commander of the USACE New England District, made the announcement today. The case was handled by Assistant U.S. Attorney Christine Wichers of Weinreb’s Civil Division.
United States Settles Lawsuit over Electric Cable in Boston HarborRead the Press Release
BOSTON – A lawsuit was settled today involving an electrical cable beneath Boston Harbor that runs across two shipping channels that the government alleged was not placed at the required depth when it was installed in 1990. The settlement will allow the Boston Harbor Deep Draft Navigation Improvement Project to continue and ensure that modifications will come at no cost to the United States or Massport.
NSTAR Electric Company d/b/a Eversource Energy (NSTAR), NSTAR subsidiary Harbor Electric Energy Company (HEEC), and the Massachusetts Water Resources Authority (MWRA) have entered into an agreement to settle a lawsuit filed against them by the United States in connection with a submarine electrical cable that lies beneath Boston Harbor and runs across two federal shipping channels. The government’s complaint alleged that the cable was not installed as deep as required by a permit issued by the New England District of the U.S. Army Corps of Engineers (USACE).
“This settlement will allow the Deep Draft project to proceed as planned,” said William D. Weinreb, Acting United States Attorney for the District of Massachusetts. “The Deep Draft project is necessary to keep the Port of Boston and its shipping facilities competitive with other East Coast ports. The settlement also means there will be no interference with the provision of electricity to the Deer Island Waste Water Treatment Plant, which is critical to keeping Boston Harbor clean. This is a victory for both the local economy and the environment.”
“The settlement will remedy the Clean Water Act and River and Harbors Act permit violations,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The permit violations in connection with the electric cable running under Boston Harbor will be resolved, so that the Deep Draft Project can proceed as scheduled. In addition, the settlement shows the commitment we place on upholding the integrity of U.S. Army Corps of Engineers dredge-and-fill permits, and the work the Corps does to protect our Nation’s waterways and highways of commerce.”
The cable, installed in 1990, extends from an NSTAR electrical substation in South Boston to Deer Island. Its purpose was to provide electricity to power the construction and operation of the Deer Island Waste Water Treatment Plant, which is run by the MWRA. The permit required the cable to be embedded at least 25 feet below the bottom of two shipping channels that it crosses, the Reserved Channel and the Main Ship Channel.
The improper installation of the cable took on urgency in 2014, when Congress authorized the deepening of Boston Harbor, including the channels crossed by the cable. The $310 million project to deepen the shipping channels will provide increased depth between Massachusetts Bay and Conley Container Terminal to accommodate the new generation of larger container ships. The harbor deepening project, known as the Deep Draft project, is being led by the USACE in partnership with Massport, which operates Conley Container Terminal. USACE determined that the existing depth of the cable was likely to interfere with the dredging operations of the Deep Draft project, putting the entire project at risk.
The government’s complaint alleged that the permittees – NSTAR, HEEC, and the MWRA – violated two federal laws under which the permit was issued, the Rivers and Harbors Act of 1899 and the Clean Water Act. Massport intervened in the lawsuit, siding with the United States.
Under the terms of the settlement, HEEC will lay a new electrical cable across Boston Harbor from South Boston to Deer Island – but outside the Reserved Channel and out of the way of the Deep Draft project – by the end of 2019. HEEC will then remove the existing cable. Neither the United States nor Massport will bear any of the cost to install or maintain the new cable or remove the existing cable.
Acting U.S. Attorney Weinreb, Acting Assistant Attorney General Wood, and Colonel Christopher Barron, District Engineer and Commander of the USACE New England District, made the announcement today. The case was handled by Assistant U.S. Attorney Christine Wichers of Weinreb’s Civil Division.
USNCB Attends the First Extraordinary Meeting of Heads of National Central Bureaus in the AmericasRead the Press Release
Welcome reception at the Heads of National Central Bureaus of the Americas in Bogota, Columbia.From July 11th through July 12th, 2017 Acting Director Wayne Salzgaber and Deputy Chief of Staff Joe Ferrigno attended the First Extraordinary Meeting of Heads of National Central Bureaus in the Americas that took place in Bogota, Colombia. The U.S. National Central Bureau, INTERPOL Washington, sponsored the meeting. The Colombian National Police Criminal Investigation Directorate and INTERPOL at the "General Francisco de Paula Santander" School of Police Training Academy of the National Police of Colombia served as the hosts for this first ever meeting.
Two Sentenced in Marijuana Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Shahana Beaver, 25, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute marijuana, was sentenced to time served and three years’ supervised release by U.S. District Judge Elizabeth A. Wolford. In addition, co-defendant Janice Humphrey, 28, also of Buffalo, N.Y., who was convicted of maintaining a drug-involved premises, was sentenced to two years’ probation.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between April 2015, and September 2015, the defendants conspired with Damarcus Hennings, Shaquata Hennings, Arthur Clark, and Dashawn Abrams, to ship, receive, and distribute more than 50 packages containing marijuana from Denver, Colorado to Buffalo, New York. The defendants also conspired to send the cash proceeds from resulting marijuana sales back to their marijuana source of supply in Denver.
Damarcus Hennings and Shaquata Hennings have been convicted and are awaiting sentencing. Charges are pending against Dashawn Abrams and Arthur Clark. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencings are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.Two Men Indicted in Medicare Fraud Scheme in Rio Grande ValleyRead the Press Release
McALLEN, Texas ‐ A former laboratory technician at a medical clinic in Mission and an account representative for a toxicology testing company have been indicted in connection with a scheme to defraud Medicare, announced Acting U.S. Attorney Abe Martinez.
Ivar Cantu, 46, of Palmview, was arrested today and is set to make his initial appearance before U.S. Magistrate Judge Peter Ormsby at 10:30am. Co-defendant Omar Solis, 35, of Mission, was taken into custody yesterday.
The 18-count indictment charges Cantu and Solis with conspiracy to commit health care fraud, health care fraud and aggravated identity theft.
According to the indictment, Cantu and Solis fraudulently set up an account between the medical clinic where Solis was employed as a laboratory technician and the toxicology testing company for whom Cantu was an account representative. During the latter half of 2015, Solis allegedly misappropriated urine specimens of patients of the medical clinic and sent them to the toxicology testing company without the consent of the patient or doctor in order to receive commissions and collection fees from the testing company. Cantu and Solis forged patient signatures, falsified medical records and created fictitious documents in carrying out the scheme, according to the indictment.
As a result of the conspiracy, Medicare was billed $836,788 between May 2015 and December 2015.
The charge for conspiracy to commit health care fraud and each of the eight counts of health care fraud carry a maximum punishment of 10 years in federal prison and a possible $250,000 maximum fine, upon conviction. Each of the nine counts of aggravated identity theft carries a mandatory two‐year additional prison term which must be served consecutively to any other prison sentence imposed.
The FBI and the U.S. Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Two California Men Sentenced to Prison for Their Roles in Fake Law Firms that Promised to Help Struggling HomeownersRead the Press Release
Two Orange County, California men were sentenced yesterday in U.S. District Court in Santa Ana, California to serve 41 and 47 months in prison, respectively, for their roles in a multi-million dollar fraudulent mortgage modification scheme posing as a successful law firm, the Justice Department announced.
Ronald Rodis, 52, of Long Beach, California, and Charles Wayne Farris, 56, of Aliso Viejo, California, each previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. In addition to the terms of prison imposed by U.S. District Judge David O. Carter, Judge Carter ordered Farris to pay $3,534,927.43 in restitution and ordered Rodis to pay $3,826,947.95 in restitution.
Both defendants previously admitted that, between October 2008 and June 2009, they participated in a scheme to induce homeowners to pay between $3,500 and $5,500 for the services of the Rodis Law Group. These defendants and their co-conspirators made numerous misrepresentations regarding RLG’s ability to negotiate loan modifications from the homeowners’ mortgage lenders. They hid the involvement of Bryan D’Antonio, the true owner of the scheme. D’Antonio was a convicted felon and subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide.
“These defendants played key roles in a scheme that victimized homeowners facing foreclosure during the mortgage crisis,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The defendants promised homeowners assistance saving their homes and modifying their mortgages, yet took their money knowing the promised benefits would never be realized.”
“These two defendants used their legal knowledge and expertise to coerce and victimize vulnerable homeowners,” said Acting U.S. Attorney Sandra R. Brown of the Central District of California. “Rather than help these individuals as promised, their fraudulent scheme cost the victims millions of dollars.”
Rodis was a licensed California attorney who allowed his name to be used to lend legitimacy to the scheme. He recorded radio advertisements encouraging struggling homeowners to call RLG. In the ads, Rodis falsely claimed that RLG consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG was a telemarketing operation that never had a team of experienced attorneys and rarely achieved any of the promised results for homeowners. During much of the scheme, Rodis was the only attorney at RLG. After his involvement with the RLG scheme, Rodis surrendered his law license.
supervised a sales force of dozens of telemarketers who fielded calls from struggling homeowners. At Farris’s direction and using scripts that he helped create, the telemarketers made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders. For example, the telemarketers stated that RLG and America’s Law Group – a successor to RLG – had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case.
On April 10, Bryan D’Antonio, the leader of the scheme, was sentenced to 97 months in prison followed by 12 months in a halfway house and was ordered to pay $3,826,977.95 in restitution.
This case was investigated by the FBI Los Angeles Field Office and is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joseph T. McNally of the Central District of California.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
Two California Men Sentenced to Prison for Their Roles in Fake Law Firms That Promised to Help Struggling HomeownersRead the Press Release
LOS ANGELES – Two Orange County, California men were sentenced yesterday in U.S. District Court in Santa Ana, California to serve 41 and 47 months in prison, respectively, for their roles in a multi-million dollar fraudulent mortgage modification scheme posing as a successful law firm, the Justice Department announced.
Ronald Rodis, 52, of Long Beach, California, and Charles Wayne Farris, 56, of Aliso Viejo, California, each previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. In addition to the terms of prison imposed by U.S. District Judge David O. Carter, Judge Carter ordered Farris to pay $3,534,927.43 in restitution and ordered Rodis to pay $3,826,947.95 in restitution.
Both defendants previously admitted that, between October 2008 and June 2009, they participated in a scheme to induce homeowners to pay between $3,500 and $5,500 for the services of the Rodis Law Group. These defendants and their co-conspirators made numerous misrepresentations regarding RLG’s ability to negotiate loan modifications from the homeowners’ mortgage lenders. They hid the involvement of Bryan D’Antonio, the true owner of the scheme. D’Antonio was a convicted felon and subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide.
“These defendants played key roles in a scheme that victimized homeowners facing foreclosure during the mortgage crisis,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The defendants promised homeowners assistance saving their homes and modifying their mortgages, yet took their money knowing the promised benefits would never be realized.”
“These two defendants used their legal knowledge and expertise to coerce and victimize vulnerable homeowners,” said Acting U.S. Attorney Sandra R. Brown of the Central District of California. “Rather than help these individuals as promised, their fraudulent scheme cost the victims millions of dollars.”
Rodis was a licensed California attorney who allowed his name to be used to lend legitimacy to the scheme. He recorded radio advertisements encouraging struggling homeowners to call RLG. In the ads, Rodis falsely claimed that RLG consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG was a telemarketing operation that never had a team of experienced attorneys and rarely achieved any of the promised results for homeowners. During much of the scheme, Rodis was the only attorney at RLG. After his involvement with the RLG scheme, Rodis surrendered his law license.
Farris supervised a sales force of dozens of telemarketers who fielded calls from struggling homeowners. At Farris’s direction and using scripts that he helped create, the telemarketers made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders. For example, the telemarketers stated that RLG and America’s Law Group – a successor to RLG – had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case.
On April 10, Bryan D’Antonio, the leader of the scheme, was sentenced to 97 months in prison followed by 12 months in a halfway house and was ordered to pay $3,826,977.95 in restitution.
This case was investigated by the FBI Los Angeles Field Office and prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joseph T. McNally of the Central District of California.
Three Louisiana Residents Indicted for Insider Trading in Connection with Shaw Group AcquisitionRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey Amundson announced today that three more individuals have been charged with insider trading in connection with the acquisition of the Shaw Group. A federal grand jury sitting in the Middle District of Louisiana has indicted KELLY LIU, age 31, SALVADOR RUSSO, III, age 34, both of Baton Rouge, Louisiana, and VICTORY HO, age 38, of Morgan City, Louisiana, with conspiracy to commit securities fraud (insider trading), in violation of Title 18, United States Code, Section 371, and securities fraud (insider trading), in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-1. If convicted, each face significant incarceration, fines, restitution, and supervised release following imprisonment.
The Indictment alleges that from on or before July 18, 2012, and continuing to at least July 30, 2012, LIU and her boyfriend RUSSO, along with associate HO, engaged in a scheme to profit from inside information about the upcoming merger between The Shaw Group (“Shaw”) and Chicago Bridge and Iron Company (“CB&I”).
According to the allegations contained in the Indictment, which was returned by the grand jury earlier today, in mid-2012, Shaw was considering a potential merger opportunity. At the time, LIU was a Shaw employee working in the Financial Planning and Analysis Department. In late July 2012, Shaw and CB&I came to an agreement whereby CB&I acquired all outstanding shares of Shaw stock. The merger between the two companies was publicly announced on July 30, 2012 (“the public announcement”). As a result of the public announcement, Shaw’s stock price rose substantially.
The Indictment alleges that, prior to the public announcement and through her job at Shaw, LIU obtained inside information that Shaw was being acquired by another company and passed the inside information to HO, through another individual, and to RUSSO, for their use in trading Shaw securities. Thereafter, HO and RUSSO allegedly purchased Shaw securities before the public announcement. HO sold his Shaw securities after the public announcement had caused Shaw’s stock price to rise, while RUSSO held his Shaw securities, all at the expense of Shaw shareholders and potential Shaw shareholders who were not privy to the inside information. The Indictment also alleges that HO made over $294,000, and RUSSO over $2,500 in unrealized profits, from their illegal insider trading activities.
Prior to the Indictment announced today, three other individuals have been charged in the Middle and Western Districts of Louisiana with securities fraud offenses related to the Shaw merger. One defendant has pled guilty, and the remaining two are scheduled for trial.
Acting U.S. Attorney Amundson stated: “Insider trading undermines investor confidence in the fairness and integrity of the securities markets, and cheats those honest investors who play by the rules. My office will continue to work aggressively with our excellent partners with the FBI, IRS-Criminal Investigations, the U.S. Secret Service, the Securities and Exchange Commission, the Financial Industry Regulatory Authority, and others to pursue such important matters whenever merited.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Baton Rouge offices of the FBI, Secret Service, and IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Chris Dippel, Patricia Jones, and Adam Ptashkin.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
St. Albans man pleads guilty to federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A St. Albans man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Jeremiah Joe Johnson, 40, entered his guilty plea to possession with intent to distribute 50 grams or more of methamphetamine.
Johnson admitted that on April 30, 2017, he traveled to Charleston from Atlanta with approximately 1.3 kilograms of methamphetamine. Agents with the Metropolitan Drug Enforcement Network Team were monitoring Johnson’s travels using a GPS tracker and surveillance. Johnson also admitted that he stopped at the Bigley Avenue Go-Mart in Charleston, where an officer saw a passenger with Johnson attempt to hide a meth pipe from view. A drug dog on the scene gave a positive indication of the presence of narcotics, and a subsequent search of the vehicle uncovered the methamphetamine in a bag in the back seat. Johnson additionally admitted that he had obtained the drugs from a source in Georgia, and that he intended to distribute the drugs. Johnson further admitted to several other encounters with law enforcement while he was in possession of dealer amounts of methamphetamine.
Johnson faces at least five and up to 40 years in federal prison when he is sentenced on October 5, 2017.
The Metropolitan Drug Enforcement Network Team, the West Virginia State Police, and the Drug Enforcement Administration conducted the investigation. Assistant United States Attorney R. Gregory McVey is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Sherwood Man Arrested on Child Pornography Charges Stemming from Online Participation in Sexual Exploitation of ChildrenRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, and Homeland Security Investigations Special Agent in Charge Raymond R. Parmer, Jr., announced today the arrest of William Thomas Murry, III, 60, of Sherwood, on multiple charges of possession and receipt of child pornography.
A federal grand jury indicted Murry on July 6, 2017, on one count of possession of child pornography and four counts of receipt of child pornography. In late 2015 and early 2016, HSI agents learned that an individual was participating in an online chatroom that was involved in the sharing of live child rapes and recorded child pornographic videos and pictures through webcam streaming. While this individual’s face was never visible, his bare torso and genitals were visible, as well as the background of what appeared to be an office with several distinguishing features.
Agents were able to determine that the IP address being utilized by the individual in the chatroom returned to the Kawasaki Sports Center at 5922 South University Ave., Little Rock. At the time, Murry owned the Kawasaki Sports Center.
On November 22, 2016, HSI/LR, Little Rock Police Department, and Arkansas Attorney General’s Office, Special Investigations Division (AG/SID), executed a federal search warrant at the Kawasaki Sports Center.
Agents observed Murry’s office and determined it was the location where the individual was engaged in viewing child pornography in the online chatrooms. Murry also physically resembled the individual in the chatroom. After waiving his Miranda rights, agents interviewed Murry, who admitted to using the online network, but denied looking at child pornography.A forensic exam was conducted on Murry’s work computer and his home laptop.
Murry’s work computer contained 65 still images and two video files containing child pornography. The computer also contained evidence of the online network. Murry’s home laptop contained 33 still images and four video files of child pornography. It also contained evidence of the online network.
Agents interviewed all the other employees of Kawasaki and eliminated them as the individual in the online chatroom.
“Too often people like Murry think they can hide behind a computer and receive gratification from watching children being sexually exploited,” said Harris. “This indictment sends the message that this depravity will not be tolerated.”
Possession of child pornography carries a maximum statutory penalty of 10 years’ imprisonment, a $250,000 fine, and five years to life of supervised release. Receipt of child pornography carries a statutory penalty of five to 20 years’ imprisonment, a $250,000 fine, and five years to life of supervised release.
“No one is above the law when it comes to child exploitation,” Parmer, Jr. said. “HSI will continue working with our partner law enforcement agencies to ensure we find and arrest anyone involved in these heinous transnational crimes.”
Today, Murry turned himself into Homeland Security agents and was seen by United States Magistrate Judge Jerome T. Kearney. Judge Kearney released Murry on conditions to include electronic monitoring, no unsupervised contact with minors, and monitored internet access.
The investigation was conducted by Homeland Security Investigations and the Arkansas Attorney General’s Office, Special Investigations Division. The case is being prosecuted by Assistant United States Attorney Kristin Bryant.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
San Juan County Man Pleads Guilty to Federal Wire Fraud Charges Arising Out of Million Dollar Fraud SchemeRead the Press Release
ALBUQUERQUE – Bobby Willis, 45, a resident of Kirtland, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to wire fraud charges under a plea agreement recommending a maximum sentence of 24 months in federal prison. The plea agreement also requires Willis to pay restitution to the victims of his fraudulent conduct.
Willis was charged in a two-count indictment, which was filed on Oct. 20, 2015, alleging that, from March 2010 through Aug. 2011, Willis executed an illegal scheme to defraud two victims out of $1,000,000. According to the indictment, Willis offered the victims an opportunity to purchase a five-percent interest in a real estate investment company for $1,000,000 with the understanding that he and other individuals had also invested millions of dollars in the company. Willis then spent $995,000 of the victims’ $1,000,000 instead of investing the funds.
Count 1 of the indictment alleges that on Oct. 25, 2010, Willis caused $900,000 to be wire transferred from the bank account of the real estate investment company to his and his wife’s bank account. Count 2 alleges that on Nov. 12, 2010, Willis caused another $95,000.00 to be wire transferred from the real estate investment company’s bank account to his and his wife’s bank account.
During today’s proceedings, Willis pled guilty to the two-count indictment. In entering the guilty plea, Willis admitted meeting the victims in 2010 and devising a plan to cause the victims to give him $1,000,000 to invest in a real estate LLC created by Willis. Willis further admitted directing the victims to work with his associates to invest the money in a real estate company. That same real estate company transferred $995,000 into an account held by Willis and his wife on Oct. 25, 2010 and Nov. 18, 2010.
In his plea agreement, Willis admitted that he and his wife spent the victims’ money. Willis also admitted that he did not invest the victims’ money in any real estate, and when the victims inquired about the status of their investment, he had associates falsely assure the victims that their investment had grown in value. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney C. Paige Messec.
Revere Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
BOSTON – A Revere man pleaded guilty today in federal court in Boston to robbing 10 banks during a 19-day spree from late December 2016 to early January 2017.
Fred Mandracchia, 36, pleaded guilty to 10 counts of bank robbery. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Oct. 11, 2017.
Following a Jan. 3, 2017 robbery of the Mechanics Cooperative Bank branch in Fall River, law enforcement identified Mandracchia as the individual responsible for that robbery. Based on similarities in the robberies and the physical description of the perpetrator, Mandracchia was suspected to have also been involved in nine other Boston-area bank robberies: the Dec. 19, 2016, robbery of a People’s United Bank branch in Boston; the Dec. 21, 2016, robbery of a Century Bank branch in Boston; the Dec. 22, 2016, robbery of a Citizens Bank branch in Boston; the Dec. 23, 2016, robbery of an East Boston Savings Bank branch in East Boston; the Dec. 23, 2016, robbery of a Commerce Bank branch in Boston; the Dec. 24, 2016, robbery of a Citizens Bank branch in Boston; the Dec. 27, 2016, robbery of a Brookline Bank branch in Malden; the Jan. 4, 2017, robbery of an East Boston Savings Bank branch in South Boston; and the Jan. 6, 2017, robbery of a Meetinghouse Bank branch in Dorchester. Mandracchia was arrested in Chelsea on Jan. 7, 2017, and confessed to robbing the banks.
The charge of bank robbery provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of up to $250,000 on each count. 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 Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Police Departments of Fall River, Boston, Malden, and Chelsea assisted with the investigation. Assistant U.S. Attorney Kelly Begg Lawrence of Weinreb’s Major Crimes Unit is prosecuting the case.
Quincy Man Sentenced for Four Bank RobberiesRead the Press Release
BOSTON – A Quincy man was sentenced today in federal court in Boston for robbing multiple banks throughout the Boston area.
Kyle P. Nathan, 28, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 42 months in prison and three years of supervised release. In March 2017, Nathan pleaded guilty to four counts of bank robbery.
In February and March 2016, an individual robbed the East Boston Savings Bank in both South Boston and Dorchester, a branch of the Santander bank in Chelmsford, and a branch of the Citizens Bank, also in Chelmsford. Due to similarities in the robberies and the physical description of the perpetrator, law enforcement suspected that the same individual was involved in each of the robberies. After the fourth robbery, Nathan was arrested wearing the same clothes the suspect was identified as wearing during all four robberies.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Chelmsford Police Chief James Spinney made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Quincy Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOSTON – A Quincy man pleaded guilty today in federal court in Boston to possession of child pornography.
Nicholas Oslander, 68, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge William G. Young scheduled sentencing for Nov. 16, 2017. Oslander was charged and arrested in March 2017.
Following an investigation into the online trade of child pornography through peer to peer networks, a federal search warrant was executed at Oslander’s home in Quincy on Dec. 30, 2016. Forensic analysis of digital devices seized during the search revealed hundreds of images of child pornography.
In 2000, Oslander pleaded guilty in federal court in Boston to possession of child pornography and was sentenced to 30 months in prison.
Oslander faces a mandatory minimum sentence of 10 years based on his prior federal conviction. The charging statute provides for a sentence of no greater than 20 years in prison, five years of supervised release and a $250,000 fine. 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 Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
President of Baltimore Tax Preparation Business Indicted for Assisting in the Filing of Four Years of False Tax ReturnsRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury has indicted Tynisha Martin Kadiri, age 39, of Baltimore, Maryland, on charges of filing false income tax returns and failure to file tax returns. The indictment was returned yesterday, and unsealed today upon the arrest of the Kadiri.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service – Criminal Investigation.
According to the 21-count indictment, Kadiri, who owned three tax preparation businesses in west Baltimore, filed false and fraudulent tax returns for her client-taxpayers for tax years 2012 through 2016. These false returns included business receipts that the taxpayer did not receive, business losses the taxpayer did not incur and false or fictitious businesses. These falsities resulted in the clients receiving larger refunds than they were entitled to. In addition, the indictment alleges that Kadiri has not filed federal corporate income tax returns for her businesses from tax years 2013 through 2015.
Kadiri faces a maximum sentence of up to three years in prison and a fine of $250,000 for aiding or assisting in the filings of false income tax returns and one year in prison for willful failure to file a return. Kadiri had her initial appearance today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the IRS for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Philip Selden who is prosecuting the case.
Pine Hills Man Sentenced to Seven Years in PrisonRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell has sentenced Vladimir Jean Pierre (31, Orlando) to seven years in federal prison for theft of government property, aggravated identity theft, and attempted possession with the intent to distribute a controlled substance.
He pleaded guilty on February 16, 2017.
According to court documents, in April 2015, Pierre received a package from China that contained approximately one kilogram of Ethylone. Ethylone is a positional isomer of Butylone, which is a DEA Schedule I controlled substance. Pierre was questioned shortly after he picked up the package from an Orlando Post Office. According to Pierre, he was aware that the package would contain a controlled substance, but thought that it would contain either cocaine or heroin.
In addition, from February 2012 through May 2012, Pierre deposited a total of 43 separate Internal Revenue Service (IRS) tax refund checks, totaling over $250,000, into two different bank accounts. IRS agents obtained video footage from the bank showing Pierre depositing a tax refund check for “S.D.” into his own bank account. The agents later identified S.D. and learned that the individual did not know Pierre and had not given him permission to deposit the refund check. However, S.D. did acknowledge having filed a tax return but never receiving the expected check.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Postal Inspection Service, and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Shawn P. Napier and Tiffany Cummins.
Pierre Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pierre, South Dakota, woman has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Adele Tahsequah, age 34, was charged by criminal complaint on June 28, 2017 and indicted on July 6, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 10, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 21, 2017, Tahsequah knowingly and intentionally possessed with the intent to distribute methamphetamine, a Schedule II controlled substance, in South Dakota.
The charge is merely an accusation and Tahsequah is presumed innocent until and unless proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Tahsequah was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pharr Man Sentenced in Absentia for Hostage Taking ConspiracyRead the Press Release
McALLEN, Texas – A 21-year-old Pharr man has been sentenced to life in federal prison following his convictions of conspiracy to commit hostage taking and conspiracy to transport undocumented aliens, announced Acting U.S. Attorney Abe Martinez. A federal jury sitting in McAllen convicted Luis Gerardo Betancourt in absentia following a five-day trial and less than three hours of deliberation on March 30, 2017. Also sentenced today were 25-year-old Mexican citizen Luis Enrique Perez-Talavera and Jonathan Carlos Valdez-Harris, 22, of Phar, who had both previously pleaded guilty.
Today, U.S. District Judge Randy Crane ordered Betancourt to serve life in prison. Perez-Talavera and Valdez-Harris received respective sentences of 240 and 120 months in federal prison. Betancourt and Perez-Talavera were ordered to pay $26,000 in restitution, while Valdez is to pay $3,000. In handing down the sentence, the court noted how vulnerable one of the victims was, an eight-year-old child, and that the hostage taking conspirators exploited her age and vulnerability to pry additional ransom from family members.
The investigation began Dec. 4, 2015, when authorities learned of people in other states being forced to pay for the release of family members being held hostage at an undetermined location. Testimony at trial revealed that an individual had paid approximately $17,000 for such release. The jury heard that some family members received threats such as to cut off body parts and kill the hostages, one of whom was an eight-year-old victim, if monetary demands were not met. Further investigation revealed Betancourt’s involvement in the conspiracy. The jury heard that he was responsible for recruiting and transporting co-conspirators as well as the receipt of money sent by the victims’ family members.
The hostages held during the course of the conspiracy were eventually released Dec. 8, 2015.
Betancourt was present upon the jury’s selection, but failed to appear for trial, presentation of the evidence and his sentencing hearing. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the United States Marshals Service in McAllen, Texas at (956) 618-8025.
The FBI Safe Streets Task Force conducted the investigation with assistance from Border Patrol, Customs and Border Protection, police departments in Pharr and Robstown Police Department and the Orange County, Florida, Sheriff’s Office. Assistant U.S. Attorneys David A. Lindenmuth and Roberto Lopez Jr. are prosecuting the case.
Oxford Man Sentenced to 130 Months for Cocaine DistributionRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina John Stuart Bruce announced that yesterday in federal court, Senior U.S. District Court Judge Malcolm J. Howard, sentenced ANTONIO RODRIGUEZ CROSS, 33, of Oxford, to 130 months imprisonment followed by 5 years of supervised release. On April 10, 2017, CROSS pled guilty to one-count of Distribution and Possession with Intent to Distribute a Quantity of Cocaine and to one-count of Distribution and Possession with Intent to Distribute 28 Grams or More of Cocaine Base.
In 2014, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives in Raleigh, along with officers from the Oxford Police Department initiated an investigation into the drug-trafficking activities of CROSS. They discovered that CROSS sold cocaine and the defendant also converted cocaine into cocaine base on occasion. Agents conducted eight controlled purchases from CROSS beginning in March 2014 and concluding in April 2015. Further investigation revealed CROSS was arrested on numerous occasions for drug-trafficking activities.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Oxford Police Department. Assistant United States Attorney Toby Lathan prosecuted the case for the government.
Op-Ed by Acting U.S. Attorney Corey Amundson Regarding Anniversary of Mass Shooting of Police Officers in Baton RougeRead the Press Release
Monday is the year anniversary of the mass murder in Baton Rouge of three of our law enforcement heroes and the wounding of three others, one critically. We should all take this somber occasion to remember and celebrate the fallen and wounded officers and to give some comfort – however small it may be – to their families.
It has often been said that the line between order and chaos is blue. I firmly believe this to be true. Without a doubt, our police officers hold one of the most important and impactful roles in our society.
Police officers protect our community against sexual predators who prey upon the most vulnerable among us; drug traffickers who use violence and addiction to end some lives and wreak havoc on others; and dangerous and often armed criminals who threaten the security and safety of all around them. They also serve our community in countless other ways, especially during times of crisis and disaster, risking their own safety to rescue others who find themselves in their darkest hours.
Police officers teach us all what being a hero really means. It is not about money. It is not about having an easy life. It is about fulfilling a calling to help others. The men we honor this week are perfect examples of police officers who answered that calling. Their service was a blessing to all of us.
Corey R. Amundson
Acting United States Attorney
Middle District of Louisiana
Baton Rouge, Louisiana
Ninth Loiza Boys Gang Associate Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Edwin Sanchez, 31, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine, was sentenced to 168 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Wei Xiang, who handled the sentencing, stated that the defendant was an associate of a gang known as the Loiza Boys, which has been distributing heroin and cocaine on Buffalo’s West Side since at least 2006.
The defendant was charged in 2013 along with nine co-conspirators following a long-term investigation that involved the interception of telephone calls of various defendants and the use of undercover drug purchases from some of those charged. During the investigation, law enforcement officers seized over 450 grams of heroin, three firearms, and over $70,000 in U.S. currency.
Nine of the 10 defendants charged in this case have been convicted. Josbel Garcia is scheduled to go to trial on November 14, 2017. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the culmination of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Newport News Man Sentenced for Producing Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 35 years in prison for production of child pornography.
Ernesto Rodriguez Hernandez, 23, pleaded guilty on April 5. According to statement of facts filed with the plea agreement, Rodriguez Hernandez used two minor females to produce images of child pornography. Hernandez exchanged messages with Jane Doe 1 using the Facebook messenger application, and received images of child pornography of Jane Doe 1 through Facebook messenger. On Dec. 2, 2016, law enforcement executed a federal search warrant at Hernandez’s residence, and seized Hernandez’s computers and other media storage items. An examination revealed additional videos and images of child pornography. After forensic examination, law enforcement identified an additional minor victim, Jane Doe 2, who Hernandez used to produce additional images of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorneys Megan M. Cowles and Lisa R. McKeel 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. 4:16-cr-94.
New York Restaurant Entrepreneur Sentenced to 12 ½ Years in Prison for Investment Fraud Scheme and Tax EvasionRead the Press Release
A federal district judge in Utica, New York sentenced a Watertown, New York food and restaurant entrepreneur and franchisor to serve 150 months in prison for committing tax evasion and investment fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Grant C. Jaquith for the Northern District of New York.
According to documents filed with the court, Christopher Swartz, 46, engaged in a promissory note scheme to defraud lenders and investors out of more than $19 million, as well as a scheme to evade more than $4 million in taxes and obstruct the Internal Revenue Service (IRS).
“For over a decade, Mr. Swartz stole millions from lenders, investors, and the United States, using multiple schemes, shell companies and layers of transactions in an effort to escape detection,” said Acting Deputy Assistant Attorney General Goldberg. “His 12 ½ year sentence sends the clear message to those involved in such financial chicanery that their schemes – no matter how complex – will be uncovered, investigated and successfully prosecuted.”
“Christopher Swartz stole millions of dollars from investors and lenders and cheated the public treasury out of millions of dollars of taxes,” said Acting U.S. Attorney Jaquith. “His elaborate scheme to defraud relied on a mind-boggling web of accounts and enterprises and concealment of his assets and diversions of funds. Swartz inflicted terrible harm on people who trusted him with money they needed to support their families, educate their children, pay for medical care, and retire. This case sends a strong message that such treachery will not be tolerated.”
“Today’s sentencing demonstrates the serious consequences of financial crimes such as this, and the collective focus of IRS Criminal Investigation (CI) and our partners on holding the perpetrators of such corrupt investment schemes accountable for their actions,” said Special Agent in Charge James D. Robnett of the IRS-CI. “Mr. Swartz preyed upon honest and law abiding citizens, abusing their trust for his own financial gain.”
“Mr. Swartz betrayed his investors and attempted to conceal his crimes,” said FBI Special Agent in Charge Vadim D. Thomas. “The resolution of this case is the culmination of the outstanding efforts of the FBI and our federal law enforcement partners.”
According to documents filed with the court, between 2005 and 2015, Swartz defrauded investors through bogus promissory notes and fraudulent offers of ownership in his companies. He induced investors by promising company growth and high interest rates. Despite these promises, Swartz stole investor funds and money from the businesses and spent it for his personal benefit. When lenders and investors tried to get their money back, Swartz provided false assurances, and made partial payments, including payments by check that he knew would bounce. He sought to cover up his thefts by falsifying company records. Swartz also concealed his assets and income to avoid seizure and collection by lenders, investors, and judgment creditors seeking to recover their funds.
The food and restaurant entities and companies Swartz used to fraudulently issue promissory notes and stock included: Jreck Subs, North Country Hospitality, Ultimate Franchise Systems, Caffino Live Roast, Madeline Ventures, Grace Ventures and Obees.
In addition to the promissory note scheme, Swartz sold worthless shell company stock to approximately 70 United Kingdom residents, stealing the funds and defrauding them of approximately $1.1 million.
Swartz also committed tax evasion for a decade. Between 2005 and 2015, Swartz filed false personal tax returns that underreported his income and did not file corporate returns or pay corporate taxes. Swartz diverted money from business accounts and concealed these diversions in the company records through fraudulent accounting entries. He made extensive use of cash so the funds could not be traced and used multiple entities and nominees to conceal his ownership of various assets. Swartz also falsified partnership tax returns and attempted to impede the IRS’s ability to collect employment taxes.
Court documents allege, and the defendant is not contesting, that Swartz owned and operated as franchisor, Jreck Subs, through layers of nominees and entities, since at least 2002. Jreck is one of the largest New York State-based franchises and a popular submarine sandwich chain with approximately 45 stores in central and upstate New York.
Swartz is in custody and will begin serving his sentence immediately. Judge Hurd ordered Swartz to serve three years of supervised release and to pay $21,041,249.43 in restitution to his investment fraud victims and $4,619,340.75 in restitution to the IRS. He also ordered a forfeiture money judgement totaling $12,360,400. Swartz pleaded guilty to tax evasion and wire fraud in September 2016. As part of his plea agreement, Swartz agreed not to contest ownership of the franchise or forfeiture of this asset. Jreck Subs is currently the subject of a restraining order, as the government evaluates the potential forfeiture of the business and a sale to new owners with proceeds serving as a potential source of funds to compensate victims.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Jaquith thanked special agents of IRS-CI and the FBI Albany Field Office, and an IRS revenue agent, who conducted the investigation, and Assistant Chiefs John N. Kane Jr. and Andrew Kameros, and Trial Attorney Abigail Chingos of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
New York Man Sentenced to 24 Years on Drug Trafficking Conspiracy and Firearms ChargesRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Malcolm Cowart, a/k/a “Prince”, 37, of Harlem, New York, was sentenced yesterday in U.S. District Court by Chief Judge Nancy Torresen to 24 years in prison and five years of supervised release for conspiracy to possess with intent to distribute a kilogram or more of heroin, cocaine base, commonly known as “crack,” and oxycodone and for discharging a firearm during and in furtherance of that drug trafficking conspiracy. He pled guilty to the charges on January 6, 2017.
According to court records, from about November 2011 until March 2014, Cowart led a conspiracy that distributed heroin, crack, and oxycodone in Portland. The drugs were brought from the New York area by managers of the drug conspiracy. The managers stayed with Portland residents who were paid drugs and money for allowing the conspirators to use their apartments to distribute drugs. Managers dispatched runners to distribute the drugs throughout the Portland area.
In March 2013, Cowart had a falling out with Wayman Sparrow that led to the two of them engaging in a shootout inside the Lafayette Arms Apartments in Portland. In March 2014, agents with the U.S. Drug Enforcement Administration (“DEA”) and the Maine Drug Enforcement Agency (“MDEA”) searched an apartment in Portland, encountered a manager fleeing out the back door, and seized about $25,000 in drug proceeds from him. Later that day, agents apprehended another manager traveling by bus from New York and seized about 400 grams of heroin from her.
This joint investigation was conducted by DEA, MDEA and the Portland Police Department, with valuable assistance provided by Maine State Police Crime Laboratory and the Cumberland County District Attorney’s Office.
New York Man Sentenced to over 17 Years’ Imprisonment for Armed Bank Robberies and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jule Futrell, age 44, a resident of Endicott, New York, was sentenced by Senior United States District Court Judge James M. Munley to serve 208 months’ imprisonment for multiple armed robberies of banks and another business.
According to United States Attorney Bruce D. Brandler, Futrell pleaded guilty in March 2016, to committing two armed bank robberies, a pharmacy robbery, and to a firearms charge. The robberies were:
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March 13, 2014, First National Community Bank (FNCB), Jenkins Township, Pennsylvania, Futrell and co-defendant Jeremy West stole approximately $57,000 in cash;
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April 18, 2014, CVS pharmacy, East Stroudsburg, Pennsylvania, Futrell and West stole an unknown quantity of controlled substances;
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November 26, 2014, NBT Bank, Keyser Avenue, Scranton, Pennsylvania, Futrell and co-defendant Jemal Laquan King stole approximately $101,000 in cash.
Another co-defendant, Dorian Whitehead, pleaded guilty to aiding and abetting the two armed bank robberies.
Judge Munley sentenced Futrell’s co-defendants for their roles in the crimes. King was sentenced on July 26, 2016, to 157 months’ imprisonment, West was sentenced on January 6, 2017, to 126 months’ imprisonment, and Whitehead was sentenced on January 5, 2017, to 51 months’ imprisonment.
In addition to the prison term, Judge Munley also ordered that a probation officer supervise Futrell for three years following his release from prison, and that Futrell pay restitution in the amount of $171,180.50.
The charges were the result of an investigation conducted by the Federal Bureau of Investigation – Scranton and Binghamton offices. Assistant United States Attorney Michelle Olshefski prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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New Orleans Men Plead Guilty in Conspiracy to Traffick Methamphetamine to New OrleansRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that AARON SHEEHAN, age 30, of New Orleans, and TYLER CONNER, age 27, of Dallas, each pled guilty today to conspiracy to traffic methamphetamine in New Orleans. SHEEHAN pled guilty to one count of conspiring to distribute and to possess with intent to distribute methamphetamine. CONNER pled guilty to conspiring to distribute and to possess with intent to distribute 50 grams or more of methamphetamine.
Under his plea agreement, SHEEHAN is facing a maximum sentence of twenty years, a possible fine of up to $1,000,000, and at least three years of supervised release upon his release from prison. Under his plea agreement, CONNER is facing a mandatory minimum sentence of five years, a maximum sentence of forty years, a possible fine of up to $5,000,000, and at least four years of supervised release upon his release from prison. U.S. District Judge Sarah S. Vance will sentence SHEEHAN and CONNER on November 15, 2017.
This case stems from a Drug Enforcement Administration (DEA) investigation into a group of individuals who sold and used methamphetamine in the French Quarter area of New Orleans. Seven defendants were charged in a 2016 indictment with conspiring to distribute and possess with intent to distribute methamphetamine. With today’s guilty pleas of SHEEHAN and CONNER, all seven defendants have now agreed to plead guilty.
U.S. Attorney Evans praised the work of the DEA, the Louisiana State Police (LSP), and the U.S. Marshals Service (USMS) in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
New Orleanian Sentenced for Bank RobberyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DAVID SHEAROD, age 45, of New Orleans, was sentenced today after previously pleading guilty to a seven-count Bill of Information charging him with bank robbery, attempt robbery of a United States Postal Office, and Hobbs Act Robbery.
U.S. District Judge Jay C. Zainey sentenced SHEAROD to 120 months in the Bureau of Prisons, followed by three years of supervised release. Additionally, SHEAROD was ordered to make full restitution in the amount of $10,570.
According to court documents, on October 22, 2015, SHEAROD entered the Liberty Bank located at 6600 Franklin Avenue in New Orleans, and approached a teller with a note demanding money. The teller gave SHEAROD $1,697. On December 1, 2015, SHEAROD entered the Regions Bank, located at 541 Chartres Street, New Orleans, and approached a teller with a demand note. The teller complied and gave SHEAROD $1,400. On December 5, 2015, SHEAROD entered the Winn Dixie grocery store located at 4600 Chef Menteur Highway, New Orleans, and verbally demanded that the cashier give him money. The cashier gave SHEAROD $2,173. On December 10, 2015, SHEAROD attempted to rob the United States Post Office located at 5919 Chef Menteur Highway, New Orleans. SHEAROD approached a postal worker with a demand note demanding $2,500. The postal employee demanded that SHEAROD leave the post office and did not give SHEAROD the money. The next day, SHEAROD entered the First Bank and Trust located at 909 Poydras Street, New Orleans, and demanded that the teller give him money. SHEAROD robbed the bank of $2,600. SHEAROD’s last robbery occurred on December 13, 2015. SHEAROD entered the Walgreens located at 4200 Chef Menteur Highway, New Orleans, approached the pharmacy counter and demanded the cashier to open the register. While the cashier did not give SHEAROD money, before leaving the store, SHEAROD approached another cashier and demanded money. The cashier gave SHEAROD $200. Many of the bank tellers and cashiers allege that SHEAROD either used a gun to commit the robberies or implied that he had a gun during the robberies.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brittany L. Reed was in charge of the prosecution.
Navajo Man from Ramah Sentenced to Prison for Federal Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Nochise Martinez, 23, an enrolled member of the Navajo Nation who resides in Ramah, N.M., was sentenced today in federal court in Albuquerque, N.M., to 48 months in prison for his conviction on a voluntary manslaughter charge. Martinez will be on supervised release for three years after he completes his prison sentence.
Martinez was arrested on Jan. 4, 2017, on a criminal complaint charging him with killing a Navajo man on the Ramah Navajo Indian Reservation in Cibola County, N.M., on Dec. 31, 2016. According to the criminal complaint, Martinez stabbed the victim multiple times during a fight.
On March 27, 2017, Martinez pled guilty to a felony information charging him with voluntary manslaughter. In entering the guilty plea, Martinez admitted that on Dec. 31, 2016, he killed the victim by stabbing him in the chest with a knife during a fight between the two men.
This case was investigated by the Gallup office of the FBI and the Ramah Navajo Tribal Police Department and was prosecuted by Assistant U.S. Attorney Joseph Spindle.
Navajo Man Pleads Guilty to Assaulting a Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Abner Joe, 55, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty today in federal court in Albuquerque, N.M., to assaulting a federal officer.
Joe was arrested on Aug. 10, 2016, on a criminal complaint charging him with assaulting a federal officer. According to the complaint, Joe assaulted an officer of the Navajo Nation Division of Public Safety on Aug. 4, 2016, by spitting on her and threatening her with a hammer and a wooden board. At the time of the assault, the tribal officer was commissioned as a Special Federal Officer by the BIA’s Office of Justice Services.
Joe was indicted on Aug. 23, 2016, and charged with assaulting a federal officer with a dangerous weapon and assault involving physical contact. The indictment alleged that Joe committed the crimes on Aug. 4, 2016, on the Navajo Indian Reservation in San Juan County, N.M.
During today’s proceedings, Joe pled guilty to assaulting a federal officer. In entering the guilty plea, Joe admitted that on Aug. 4, 2016, he threatened two uniformed tribal officers as he approached them while holding a raised 2” x 4” board. He also admitted throwing a hammer at one of the tribal officers who was commissioned as a Special Federal Officer by the BIA.
At sentencing, Joe faces a maximum penalty of 20 years in prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Michael Murphy is prosecuting the case.
Mineral County woman admits to failing to register as a sex offenderRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Keyser, West Virginia woman was convicted today of failing to register as a sex offender, Acting United States Attorney Betsy Steinfeld Jividen announced.
Bobbi Jo Starry, age 51, pled guilty to one count of “Failure to Register as a Sex Offender.” Starry, having been convicted of third degree sexual assault in the Circuit Court of Berkeley County, admitted to traveling interstate commerce and failing to register and update her registration as a sex offender from January to May 2017.
Starry faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The United States Marshals Service investigated.U.S. Magistrate Judge Robert W. Trumble presided.
Miami-Based Physician Pleads Guilty for Role in Pain Pill Diversion and Medicare Fraud SchemeRead the Press Release
A licensed physician in Miami pleaded guilty in federal court yesterday for his role in a multi-faceted $4.8 million health care fraud scheme that ran from April 2011 to February 2017, involving the submission of false and fraudulent claims to Medicare and the illegal prescribing of Schedule II (e.g., oxycodone and hydrocodone) and Schedule IV (e.g., alprazolam) controlled substances.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.
Roberto A. Fernandez, M.D., 51, of Miami, pleaded guilty before U.S. District Judge Cecelia M. Altonaga of the Southern District of Florida to one count of conspiracy to commit health care fraud and wire fraud. Sentencing is set for September 20.
According to admissions made as part of his guilty plea, Fernandez referred Medicare beneficiaries to pharmacy owners in exchange for illegal health care kickbacks. Fernandez admitted knowing that the pharmacy owners were billing and receiving reimbursements from Medicare for prescription drugs based upon the prescriptions he sold, and that his patients did not truly need many of the medications he prescribed in exchange for the kickbacks. For example, he admitted providing prescriptions for expensive, name brand drugs, including anti-psychotics and HIV/AIDS medications that were not medically necessary.
Fernandez also solicited referrals of Medicare beneficiaries to his own practices from his co-conspirators, he admitted, including submitting claims to Medicare under his Part B provider number for services he did not, in fact, render to Medicare beneficiaries. Additionally, Fernandez admitted receiving kickbacks in return for signing plans of care and prescriptions for home health services.
Fernandez also admitted that he prescribed controlled substances, including dangerous opioids, to patients and patient recruiters in return for $100 - $200 cash per prescription. Fernandez admitted that he knew these patients did not need the controlled substances he prescribed. Furthermore, Fernandez admitted that he wrote many of these controlled substance prescriptions for patients that he did not even examine.
The FBI, HHS-OIG, and USSS investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Former Fraud Section Trial Attorney and current Assistant U.S. Attorney Lisa H. Miller of the Southern District of Florida and Fraud Section Trial Attorney Adam G. Yoffie are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.