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23 August 2017
Tulare County Woman Pleads Guilty to Tax Fraud and Investment FraudRead the Press Release
FRESNO, Calif. — Marie E. Sherrill, 56, of Porterville, pleaded guilty today to one count of wire fraud and one count of aiding the preparation of a false tax return, U.S. Attorney Phillip A. Talbert announced.
According to the plea agreement, Sherrill promoted a fraudulent investment program that promised the victims of the scheme that their money would be put into “pooled investments” with the money of other investors, to earn a high rate of return. The money was, in fact, never invested. Instead, it was used to pay Sherrill’s personal expenses, including gambling, and to make lulling payments to earlier investors to make them believe their money was earning a profit. As a result of this scheme, victims were defrauded of at least over $1.3 million.
In addition to the investment fraud scheme, Sherrill also committed tax fraud. According to court documents, Sherrill was a registered tax return preparer operating a bookkeeping and tax preparation business in Porterville under the name Sherrill Financial Services. Between January 2011 and December 2014, Sherrill prepared false tax returns for her clients containing false deductions to maximize their tax refunds, causing a loss to the IRS of approximately $255,900.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.
Sherrill is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on November 13, 2017. Sherrill faces a maximum statutory penalty of 20 years in prison for wire fraud and three years in prison for the tax charge. She also faces a $250,000 fine on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tennessee Sheriff Sentenced to 33 Months in Prison for Federal Corruption and Civil Rights ChargesRead the Press Release
A former Tennessee Sheriff was sentenced today to 33 months in prison and two years of supervised release for corruption and civil rights offenses committed while he ran the Fentress County Jail in Jamestown, Tenn.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Jack Smith of the Middle District of Tennessee, Special Agent in Charge Michael Gavin of the FBI’s Memphis Division, Director Mark Gwyn of the Tennessee Bureau of Investigations (TBI), and District Attorney General Jared Effler of the Eighth Judicial District in Tennessee made the announcement.
Charles Scott Cravens, 47, of Jamestown, Tenn., was sentenced by U.S. District Judge Aleta A. Trauger. Cravens pleaded guilty on April 20, to three counts of honest services bribery and one count of deprivation of rights under color of law.
According to admissions made in connection with his guilty plea, Cravens used his position as Sheriff to solicit sex from female inmates incarcerated at the Fentress County Jail on multiple occasions between July 2016 and April 2017 in exchange for benefits that other inmates did not receive. Among those benefits, Cravens personally transported inmates outside the jail to visit relatives. Cravens also provided money on three occasions to the relatives of two inmates for deposit into the inmates’ commissary accounts. Cravens further allowed two inmates to exit the jail building to smoke cigarettes that he either provided personally or directed other jail staff to provide. Cravens additionally provided his personal cellular telephone number to the inmates with whom he engaged in sexual conduct so they could call him using the Fentress County Jail telephone system to leave recorded messages with personal requests. Between Aug. 24, 2016, and March 1, three inmates placed over 700 calls total to Cravens’ phone.
In connection with his guilty plea, Cravens also admitted to using unreasonable force as a law enforcement officer in November 2016, kicking a handcuffed male inmate in the backside and also punching the handcuffed inmate twice in the back of the head.
The FBI and TBI investigated the case. This case was prosecuted by Trial Attorneys Andrew Laing and Lauren Bell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee.
Statement of Acting U.S. Attorney Joon H. Kim on the Second Circuit’s Affirmation of the Conviction in U.S. V. Mathew MartomaRead the Press Release
“We are gratified by the Second Circuit’s affirmation of Mathew Martoma’s conviction. The strength of our securities markets rests on their integrity and fairness. And the successful prosecution of those who cheat by trading on illegally obtained inside information, as Martoma did to the tune of over $275 million, is critical to maintaining that integrity and fairness in our markets.”
St. Agnes Healthcare Agrees to Resolve False Claims Act Allegations of Overbilling MedicareRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – St. Agnes Healthcare has agreed to pay the United States $122,928 to resolve claims under the False Claims Act alleging that St. Agnes submitted false claims to Medicare by billing for evaluation and management (E&M) services at a higher reimbursement rate than the Federal health care programs allowed.
The settlement agreement was announced today by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Nick DiGuilio of the Office of Inspector General for the Department of Health and Human Services.
In June 2011, St. Agnes acquired a medical practice consisting of twelve cardiologists who were formerly members of MidAtlantic Cardiovascular Associates. The twelve cardiologists became employees of St. Agnes and continued to provide services to their patients through Maryland Cardiovascular Specialists, a specialty practice affiliated with St. Agnes. Medicare permits a higher rate of reimbursement for E&M services provided to new patients as opposed to E&M services provided to established patients. A new patient is defined as a patient who has not received any professional services from the physician or physician group practice within the previous three years.
According to the settlement agreement, the United States contends that for E&M services rendered from June 3, 2011 through June 3, 2014 by the twelve cardiologists who became St. Agnes’ employees, St. Agnes improperly submitted or caused to be submitted claims to Medicare using CPT codes 99201-99205 (new patient E&M codes) when CPT codes 99211-99215 (existing patient E&M codes) should have been used. By using the new patient codes as opposed to the existing patient codes, St. Agnes improperly received more reimbursement than it was entitled to under Medicare.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act by Jonathan Safren, a former cardiologist employed by St. Agnes (United States ex rel Jonathan Safren v. St. Agnes Healthcare., Case No. ELH-16-2537 (D. Md.)). The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. As part of today’s resolution, Dr. Safren will receive $20,000. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Acting United States Attorney Stephen M. Schenning commended the Inspector General of the Department of Health and Human Services and thanked Assistant U.S. Attorneys Thomas Corcoran and Jane Andersen who handled the case.
Sallisaw Woman Sentenced to 70 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that AMBER LUANA SMALL, age 25, of Sallisaw, Oklahoma, was sentenced to 70 months imprisonment, and 4 years of supervised release for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), and Title 18, United States Code, Section 2.
The Indictment alleged that on or about August 30, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the District 27 Drug Task Force and the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Timothy Hammer represented the United States.
Rockford Man Sentenced to 8 Years and 7 Months in Federal Prison on Firearm ChargeRead the Press Release
ROCKFORD — A Rockford man was sentenced Tuesday in federal court by U.S. District Judge Frederick J. Kapala for illegally possessing a firearm as a convicted felon.
DEONTA M. NEWTON, 29, was sentenced to 103 months in prison, to be followed by three years of supervised release. Newton pleaded guilty to the charge on March 17, 2017.
According to a written plea agreement, Newton on July 18, 2016, was a passenger in a vehicle driven by another individual on the way to a convenience store on the west side of Rockford. When the other individual went into the store, a blue minivan pulled in the store’s parking lot and someone inside the van fired several shots at Newton while he was in the car. Newton grabbed a .45-caliber semi-automatic pistol, got out of the car with the gun in hand, and ran away. The minivan left and shortly thereafter Newton returned to the parking lot and got back in the passenger side of the vehicle. The other individual got back in the vehicle and drove to his residence with Newton, where Newton took the pistol inside and hid it in the basement. The pistol was later located and seized by officers of the Rockford Police Department.
Newton was charged in federal court as part of the Project Safe Neighborhoods program. Project Safe Neighborhoods is an intensive, cooperative effort between local, state and federal law enforcement to attack gun crimes. Additional information about Project Safe Neighborhoods may be found at: www.psn.gov.
The sentencing was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Joseph Bruscato, Winnebago County State’s Attorney; and Dan O’Shea, Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.
Penacook Man Convicted of Drug Trafficking and Firearms Charges Sentenced to 120 Months in Federal PrisonRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Bryan Franklin, 42, formerly of Penacook, New Hampshire, was sentenced to 120 months in federal prison after pleading guilty to possession with the intent to distribute fentanyl and methamphetamine and unlawful possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court proceedings, on September 24, 2016, the Tilton, New Hampshire Police Department conducted a traffic stop of a vehicle operated by Franklin that was found to contain multiple needles, cut plastic baggies, and other items associated with drug use. A subsequent search of another vehicle owned by Franklin resulted in the seizure of a lock box that contained approximately $15,958 in cash, approximately 750 grams of fentanyl, assorted prescription pills, a quantity of methamphetamine, a thumb drive, and two digital scales. Additionally, a backpack in the vehicle contained a tin box that contained an additional quantity of fentanyl, a drug ledger, and a loaded semi-automatic handgun that had been reported to law enforcement as stolen. Franklin pleaded guilty to the charges that resulted from this investigation on May 12, 2017.
“The aggressive investigation and prosecution of individuals engaged in fentanyl trafficking in New Hampshire remains a top priority of the United States Attorney’s Office and our law enforcement partners at the local, state and federal level,” said Acting U.S. Attorney Farley. “As New Hampshire continues to face an unprecedented number of overdose deaths directly caused by opioid use, we will continue to work tirelessly to prosecute those who are responsible for distributing these dangerous drugs in our state. Most drug deaths in New Hampshire are associated with fentanyl use. The quick-thinking law enforcement officers who seized this large quantity of fentanyl and prevented it from being distributed may have saved several lives.”
“Those suffering from the disease of opioid addiction need access to treatment and recovery,” said Special Agent in Charge Michael J. Ferguson. “But, those responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire need to be held accountable for their actions. DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
Franklin was sentenced to 60 months’ imprisonment on the drug trafficking charge and a consecutive mandatory minimum term of imprisonment of five years on the firearms charge, for a total sentence of 120 months’ imprisonment.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Tilton Police Department. Assistant United States Attorney Jennifer Cole Davis prosecuted the case.
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Owner of Arecibo Aquarium Business Pleads Guilty to Two Federal Lacey Act Felonies for Illicit Trafficking of Protected CoralsRead the Press Release
Aristides Sanchez, a resident of Arecibo, Puerto Rico, pleaded guilty today to two felony violations of the federal Lacey Act for collecting, purchasing, falsely labeling, and shipping protected marine invertebrate species as part of an effort to subvert Puerto Rican law designed to protect corals and other reef species, the Department of Justice announced.
Sanchez was the owner of the Arecibo-based saltwater aquarium business, Wonders of the Reef Aquarium. A large part of the business was devoted to the sale of native Puerto Rican marine species that are popular in the saltwater aquarium trade. Sanchez sent live specimens to customers in the mainland United States and foreign countries by commercial courier services. One of the most popular items that Sanchez sent off-island was an organism from the genus Ricordea. These animals are known as “rics,” “polyps,” or “mushrooms” in the aquarium industry. Members of the genus form part of the reef structure and spend their adult lives fastened in place to the reef. These animals are colorful in natural light, but what makes them particularly interesting to aquarium owners is that they “glow” under the UV lights that are typically used in high-end saltwater aquariums.
“Coral reefs surrounding the island of Puerto Rico are some of the most valued and fragile natural resources in the region,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “The Division will continue to work with its enforcement partners to prosecute those who illegally harm the marine environment for commercial gain.”
“We will continue to prosecute those who exploit our protected marine life for financial gain,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “We appreciate the support of U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration agents in this investigation.”
“This investigation, serves as a fine example of ongoing joint investigative efforts related to the entire span of the marine life trade,” said Resident Agent in Charge David Pharo of the U.S. Fish and Wildlife Service. “Whether responsibility lies as the initial harvester, wholesaler, retailer or a public aquarium, the USFWS and partner agencies stand ready to investigate the matter and bring those responsible for poaching our nations sensitive marine life resources to justice.”
“Our partnerships are vital to helping ensure the protection and sustainability of living marine resources. This investigation is another great example of how successful partnerships lead to effective results,” said Deputy Director Logan Gregory of National Oceanic and Atmospheric Administration’s Office of Law Enforcement. “Investigating and bringing to justice those who exploit protected marine life is vital in helping to ensure a healthy ocean.”
It is illegal to harvest Ricordea, zoanthids, and anemones in Puerto Rico if the specimens are going to be sent off-island or otherwise sold commercially, nor is there a permit available to do so. Sanchez personally collected some of the Ricordea and other reef creatures that he sold off-island. On multiple occasions, he would accompany another person and they would snorkel from the shoreline in search of Ricordea. Because Ricordea are attached to the reef substrate, Sanchez would utilize a chisel to break off the animals, and in doing so, take chunks of the reef with him. At other times, Sanchez would purchase the Ricordea from other sources, knowing or suspecting that the specimens had been harvested illegally.
In order to cover up the nature of his shipments and to avoid detection from governmental inspection authorities, Sanchez would falsely label each shipment. The false labeling was one of identification whereby Sanchez would refer to living marine organisms as “pet supplies,” “aquarium supplies,” “LED lights,” or similar inanimate objects on shipping labels and invoices. At times, he used a fake name to cover his actions.
From January 2013 to March 2016, Sanchez sent or caused to be sent at least 130 shipments of falsely labeled marine species that were illegally harvested in the waters of Puerto Rico. While there is some variation in the price of Ricordea depending on coloration, size, and other factors, the retail value of Ricordea shipped by Sanchez typically ranges from $25 to $50 per item. From on or about January 7, 2013, through on or about March 16, 2016, the retail value of the falsely labeled and/or unlawfully harvested marine invertebrates shipped personally by Sanchez, or on his behalf with his knowledge, was between $800,000 and $1,200,000.
Sanchez is scheduled to be sentenced on December 20, 2017.
This case was investigated as part of Operation Rock Bottom and Operation Borinquen Chisel by Special Agents of the U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration with support from the USFWS Inspectors. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section along with Assistant U.S. Attorney Carmen Marquez of the U.S. Attorney’s Office for the District of Puerto Rico.
Owner of Arecibo Aquarium Business Pleads Guilty to Two Federal Lacey Act Felonies for Illicit Trafficking of Protected CoralsRead the Press Release
guilty_plea_coral_reefs_8-23-17_0.pdf WASHINGTON – Aristides Sánchez, a resident of Arecibo, Puerto Rico, pleaded guilty today to two felony violations of the federal Lacey Act for collecting, purchasing, falsely labeling, and shipping protected marine invertebrate species as part of an effort to subvert Puerto Rican law designed to protect corals and other reef species, the Department of Justice announced.Sánchez was the owner of the Arecibo-based saltwater aquarium business, Wonders of the Reef Aquarium. A large part of the business was devoted to the sale of native Puerto Rican marine species that are popular in the saltwater aquarium trade. Sanchez sent live specimens to customers in the mainland United States and foreign countries by commercial courier services. One of the most popular items that Sanchez sent off-island was an organism from the genus Ricordea. These animals are known as “rics,” “polyps,” or “mushrooms” in the aquarium industry. Members of the genus form part of the reef structure and spend their adult lives fastened in place to the reef. These animals are colorful in natural light, but what makes them particularly interesting to aquarium owners is that they “glow” under the UV lights that are typically used in high-end saltwater aquariums.
“Coral reefs surrounding the island of Puerto Rico are some of the most valued and fragile natural resources in the region,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “The Division will continue to work with its enforcement partners to prosecute those who illegally harm the marine environment for commercial gain.”
“We will continue to prosecute those who exploit our protected marine life for financial gain,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “We appreciate the support of U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration agents in this investigation.”
“This investigation, serves as a fine example of ongoing joint investigative efforts related to the entire span of the marine life trade,” said Resident Agent in Charge David Pharo of the U.S. Fish and Wildlife Service. “Whether responsibility lies as the initial harvester, wholesaler, retailer or a public aquarium, the USFWS and partner agencies stand ready to investigate the matter and bring those responsible for poaching our nation’s sensitive marine life resources to justice.”
“Our partnerships are vital to helping ensure the protection and sustainability of living marine resources. This investigation is another great example of how successful partnerships lead to effective results,” said Deputy Director Logan Gregory of National Oceanic and Atmospheric Administration’s Office of Law Enforcement. “Investigating and bringing to justice those who exploit protected marine life is vital in helping to ensure a healthy ocean.”
It is illegal to harvest Ricordea, zoanthids, and anemones in Puerto Rico if the specimens are going to be sent off-island or otherwise sold commercially, nor is there a permit available to do so. Sanchez personally collected some of the Ricordea and other reef creatures that he sold off-island. On multiple occasions, he would accompany another person and they would snorkel from the shoreline in search of Ricordea. Because Ricordea are attached to the reef substrate, Sanchez would utilize a chisel to break off the animals, and in doing so, take chunks of the reef with him. At other times, Sanchez would purchase the Ricordea from other sources, knowing or suspecting that the specimens had been harvested illegally.
In order to cover up the nature of his shipments and to avoid detection from governmental inspection authorities, Sanchez would falsely label each shipment. The false labeling was one of identification whereby Sanchez would refer to living marine organisms as “pet supplies,” “aquarium supplies,” “LED lights,” or similar inanimate objects on shipping labels and invoices. At times, he used a fake name to cover his actions.
From January 2013 to March 2016, Sanchez sent or caused to be sent at least 130 shipments of falsely labeled marine species that were illegally harvested in the waters of Puerto Rico. While there is some variation in the price of Ricordea depending on coloration, size, and other factors, the retail value of Ricordea shipped by Sanchez typically ranges from $25 to $50 per item. From on or about January 7, 2013, through on or about March 16, 2016, the retail value of the falsely labeled and/or unlawfully harvested marine invertebrates shipped personally by Sanchez, or on his behalf with his knowledge, was between $800,000 and $1,200,000.
Sanchez is scheduled to be sentenced on December 20, 2017.
This case was investigated as part of Operation Rock Bottom and Operation Borinquen Chisel by Special Agents of the U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration with support from the USFWS Inspectors. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section along with Assistant U.S. Attorney Carmen Marquez of the U.S. Attorney’s Office for the District of Puerto Rico.
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Norfolk Man Pleads Guilty to Child Pornography CrimesRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today to receipt of child pornography.
According to the statement of facts filed with the plea agreement, Alfredo Martinez, 51, was identified in an online undercover operation as sharing images of minors engaged in sexually explicit conduct. In May 2017, law enforcement executed a federal search warrant at his house in Norfolk. Martinez was found in possession of numerous items of electronic media that contained images of minors engaging in sexually explicit conduct, including a cell phone, external hard drives, and three different computers. Martinez was arrested at the time of the search warrant and was later by indictment by a federal grand jury.
Martinez faces a mandatory minimum of five years and a maximum penalty of 20 years in prison when sentenced on November 21. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-98.
New York Man Sentenced to 39 Months in Prison for Role in Robbery of New Jersey BarRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 39 months in prison for his role in the robbery of a North Jersey bar, Acting U.S. Attorney William E. Fitzpatrick announced.
Balmore Carrillo-Iraheta, 20, of Suffern, New York, previously pleaded guilty before Judge Linares for his role in the Hobbs Act Robbery of a Hawthorne, New Jersey, bar. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Balmore Carrillo-Iraheta admitted that on Dec. 25, 2016, he and others forcibly robbed the bar and fled with approximately $200 in cash.
In addition to the prison term, Judge Linares sentenced Carrillo-Iraheta to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal, and the Ridgewood and Hawthorne Police Departments, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Ruth M. Liebesman Esq., Paramus, New Jersey
New Hampshire Human Trafficking Task Force Selects New Project DirectorRead the Press Release
CONCORD, N.H. - The New Hampshire Human Trafficking Collaborative Task Force announced today that Rebecca Ayling has been selected as its new Project Director.
Ayling has worked as a social worker for nine years. She started her career as a social worker with the New Hampshire Division for Children, Youth, and Families. She then worked with children and families in need of social services and support in England. For the last two years she has focused on helping human trafficking victims and developing strategies to address human trafficking both globally and locally. Ayling previously worked for an international anti-trafficking organization in Bangkok, Thailand, where she worked to identify and assist victims of human trafficking. She currently serves as a Senior Intensive Case Manager at Child and Family Services, a private non-profit, where she has worked to develop plans to combat human trafficking in New Hampshire. Ayling holds a B.S. from North Central University and Master of Social Work degree from the University of New Hampshire.
Ayling was selected after an extensive interview process conducted by the Manchester Police Department, Child and Family Services, and several other representatives of the Task Force.
“Rebecca’s experience in combatting human trafficking both in New Hampshire and elsewhere will make her an excellent Project Director,” said Acting U.S. Attorney John J. Farley. “The other Task Force members and I look forward to working with her to combat the terrible problem of human trafficking. We are confident that she will provide the leadership that the Task Force needs to coordinate our community’s effort to combat this troubling issue.”
“Child and Family Services has the utmost confidence in Rebecca’s ability as the Project Director,” said Program Director Erin Kelly. “Rebecca has the passion and commitment it will take to succeed in this position and to lead the Task Force onto meeting its goals of combating all forms of human trafficking through services, prosecution, and prevention.”
The Task Force is funded by a $1.3 million grant from the United States Department of Justice. Its goals are to ensure that comprehensive and specialized services are made available to victims of human trafficking through a multidisciplinary and collaborative approach and that perpetrators of sex trafficking and forced labor are investigated and prosecuted.
The core team members of the New Hampshire Human Trafficking Task Force are the Manchester Police Department, Child and Family Services, Immigration and Customs Enforcement (ICE) - Homeland Security Investigations, and the United States Attorney’s Office.
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Nationwide Scheme to Defraud Casinos and Credit Card Companies Leads to 3-Year Prison SentenceRead the Press Release
SACRAMENTO, Calif. — Frank Luo, 49, of Las Vegas, Nevada, was sentenced today by U.S. District Judge Kimberly J. Mueller to three years in prison for wire fraud related to a nationwide casino and credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between August 2008 and August 2014, Luo participated in a scheme to defraud casinos and credit card companies across the country. The scheme involved using false identities in the names and Social Security numbers of migrant workers to apply for casino credit called “markers” and to open credit card accounts. A marker is a cash advance provided by a casino to a patron, and it is often secured by a check from the patron’s bank account. Luo, working in concert with co-defendant Vivian Wang 54, of Lilburn, Georgia, initially timely repaid several markers at different casinos and several credit cards in order to give the impression of creditworthiness to future casinos and credit card companies. Luo and Wang recruited “clients” to participate in the scheme to induce the casinos and credit card companies to part with even more money under fraudulent pretenses.
Luo and his co-schemers coordinated their gambling activity in order to give the appearance of losing money (and thereby encouraging the casinos to issue future markers) when in fact one schemer would “lose” money while another would gain the same. In other instances, one schemer would surreptitiously deliver the issued gambling chips to another in order to give the appearance of having spent them. At the end of the scheme, Luo and his co-schemers did not repay the casino markers or the significant outstanding credit card balances accrued in a short amount of time once creditworthiness had been established. The combined fraud led to over $1.1 million in losses to casinos and credit card companies.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice’s Bureau of Gambling Control. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
Charges are pending against Wang. She is scheduled for trial in March 2018. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Monmouth County, New Jersey, Man Charged with Identity Theft and Check KitingRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man appeared in federal court today to face charges that he operated a $530,000 check-kiting scheme using stolen Social Security numbers, Acting U.S. Attorney William E. Fitzpatrick announced.
Daniel White, 51, of Manalapan, New Jersey, was charged by complaint with one count of bank fraud and one count of aggravated identity theft. He made his initial appearance before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.
According to documents filed in this case and statements made in court:
From February 2015 to June 2016, White opened or directed others to open 413 accounts at TD Bank, using 133 different Social Security numbers, 84 of which belonged to other individuals. White then wrote or caused others to write 472 checks totaling more than $530,000 addressed to himself or the owners of the newly opened accounts, knowing that the accounts against which the checks were written did not contain sufficient funds. White and others deposited those checks into the newly opened accounts and withdrew money before the checks bounced.
The count of bank fraud with which White is charged carries a maximum potential penalty of 30 years in prison and a $1 million fine. The count of aggravated identity theft carries a mandatory minimum of two years in prison, consecutive to any other sentence imposed.
Acting U.S. Attorney Fitzpatrick credited the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato; and the Manchester Police Department, under the direction of Chief Lisa D. Parker, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations in the complaint are merely accusations, and the defendant is innocent unless and until proven guilty.
Mescalero Apache Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – John Michael Carrillo, 27, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced today in federal court in Las Cruces, N.M., to 21 months in prison for his conviction on an assault charge. Carrillo will be on supervised release for three years after completing his prison sentence.
Carrillo was arrested on Dec. 17, 2016, on a criminal complaint alleging that he assaulted a Mescalero Apache woman on Dec. 2, 2016, on the Mescalero Apache Indian Reservation in Otero County, N.M., and that the victim suffered serious bodily injury as the result of the assault. According to the complaint, Carrillo assaulted the victim by throwing the victim to the floor and stomping on her face causing her to suffer a broken jaw, which required surgery.
On May 11, 2017, Carrillo pled guilty to a felony information charging him with assault resulting in serious bodily injury. In entering the guilty plea, Carrillo admitted that on Dec. 2, 2016, he assaulted the victim by stomping on her face. Carrillo acknowledged that the victim suffered a fractured jaw as the result of the assault, which required surgical repair.
This case was investigated the Mescalero Agency of the BIA’s Office of Justice Services. The case was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office 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.
Mercer County Woman Charged with Producing and Distributing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Farrell, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of producing and distributing images of the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
The two-count indictment named Mary B. Jacobs, 25, as the sole defendant.
According to the indictment, Jacobs, from February 27, 2017, through February 28, 2017, produced and distributed still images depicting the sexual exploitation of a minor.
The law provides for a maximum total sentence of 50 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Member of Sunland Park Heroin Trafficking Ring Sentenced to Prison for Federal Narcotics Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Blanca Elisa Tovar, 43, of Phoenix, Ariz., was sentenced today in federal court in Las Cruces, N.M., to 24 months in prison for her conviction on heroin trafficking charges resulting from a DEA-led investigation targeting a heroin trafficking ring operating out of Sunland Park, N.M. Tovar will be on supervised release for three years after completing her prison sentence.
The DEA’s investigation targeted a heroin trafficking organization led by Raymundo Munoz, 69, of Sunland Park, N.M., that obtained its heroin from Juan Francisco Rivera, 60, of El Paso, Texas. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Ten members of the heroin trafficking ring were charged in July 2016, in a 30-count indictment with participation in a heroin trafficking conspiracy and a series of substantive heroin trafficking offenses. The indictment charged all ten defendants with conspiring to distribute heroin in Doña Ana County and elsewhere between May 8, 2016 and July 12, 2016. It also included 23 counts charging certain defendants with distributing heroin or possessing heroin with intent to distribute and six counts charging certain defendants with using communications devices (telephones) to facilitate heroin trafficking crimes.
According to the indictment, Rivera routinely supplied Muñoz with heroin, in quantities ranging from two to nine ounces, which was smuggled by couriers into the United States across the international border in El Paso. Muñoz took the heroin to his Sunland Park residence where he distributed the drugs to others. Members of the conspiracy used telephones to negotiate their heroin deals, arrange for heroin deliveries, and pay for the heroin.
On Dec. 13, 2016, Tovar pled guilty to conspiracy and three counts of possession of heroin with intent to distribute. In entering the guilty plea, Tovar admitted participating in the heroin trafficking conspiracy by crossing heroin from Mexico into the United States, and would then give the heroin to Rivera to give to Munoz to resell to others. Tovar further admitted smuggling the following amounts of heroin: two ounces on May 13, 2016; five ounces on June 24, 2016; five ounces on June 26, 2016; five ounces on June 28, 2016; seven ounces on July 1, 2016; six ounces on July 6, 2016; and seven ounces on June 11, 2016.
The following defendants previously entered guilty pleas in the case:
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Raymundo Munoz pled guilty on March 1, 2017, and was sentenced on Aug. 15, 2017, to 72 months in prison followed by four years of supervised release;
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Carlos Diaz, 37, of El Paso, Texas, pled guilty on Jan. 24, 2017, and was sentenced on June 29, 2017, to 18 months in prison followed by three years of supervised release;
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Sandra Francis Guzman, 53, of El Paso, Texas, pled guilty on March 21, 2017, and was sentenced on July 25, 2017, to 18 months in prison followed by three years of supervised release;
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Alberto Lozano-Morales, 43, of Sunland Park, pled guilty on Dec. 6, 2016, and was sentenced on May 24, 2017 to time served followed by one year of supervised release;
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Juan Francisco Rivera pled guilty on Feb. 7, 2017, and faces a sentence of 108 months in prison under the terms of his plea agreement;
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Armando Daniel Marquez, 54 of Sunland Park, N.M., pled guilty on Feb. 23, 2017, and faces a maximum sentence of 20 years under the terms of his plea agreement; and
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Eleodoro Sanchez, 62, of Canutillo, Texas, pled guilty on March 7, 2017, and faces a maximum sentence of 20 years under the terms of his plea agreement.
One of the two remaining co-defendants has entered a plea of not guilty to the charges in the indictment; the second has yet to be arrested and is considered a fugitive. Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The Las Cruces office of the DEA and Sunland Police Department investigated these cases with assistance from the El Paso office of the FBI, the U.S. Border Patrol, and the Gang Unit of the El Paso Police Department. Assistant U.S. Attorneys Dustin C. Segovia and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting these cases as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
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McKeesport Man Indicted for Conspiring to Distribute Fentanyl and HeroinRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal drug laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on August 22, named Michael Henry, 35, of McKeesport, PA, as the sole defendant.
According to the indictment, from in and around September 2016, and continuing thereafter until in and around July 2017, Henry conspired with others to distribute quantities of fentanyl and heroin.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Caitlin A. Loughran is prosecuting this case on behalf of the government.
This prosecution is part of a 12-month investigation by the FBI Greater Pittsburgh Safe Streets Task Force (GPSSTF), which targeted a large scale Drug Trafficking Organization operating in Butler, Beaver and Allegheny Counties. The GPSSTF is comprised of dedicated law enforcement professionals from the Wilkinsburg Police Department, Pennsylvania Attorney General’s Bureau of Narcotics Investigations, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pittsburgh Bureau of Police and the FBI. The GPSSTF and the United Sates Attorney’s Office, Western District of Pennsylvania, would like to recognize the significant contributions made to this investigation by the Pennsylvania State Police, United Sates Postal Inspection Service, Cranberry Township Police Department and the New Brighton Police Department.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Manchester Man Sentenced to 30 Months in Prison for Federal Firearm CrimeRead the Press Release
Concord, N.H.— Acting United States Attorney John J. Farley announced today that Christian Cherry, 33, previously of Manchester, New Hampshire, was sentenced to 30 months in prison for possession of a firearm by a prohibited person.
According to court documents and statements made in court proceedings, on August 13, 2016, after receiving a 911 call, Manchester Police responded to a residence for a reported domestic dispute. Upon arrival, they encountered Cherry in his vehicle in the parking lot of the residence, and his then-girlfriend inside the apartment. Once in the apartment, officers observed visible signs of a struggle, and witnesses reported the presence of a firearm. Officers ultimately obtained a search warrant for the residence and recovered two Smith & Wesson handguns in a bedroom belonging to Cherry. One of the firearms had been reported stolen to Manchester Police in June 2016. Cherry was prohibited from possessing any firearm as a result of at least one prior felony conviction.
A federal grand jury indicted Cherry for being a felon in possession of a firearm on October 19, 2016. Cherry pleaded guilty on May 10, 2017. He has been in custody since his arrest on November 17, 2016.
In addition to a 30-month prison sentence, the Court ordered Cherry to serve three years of supervised release and to pay a $100 mandatory special assessment.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Manchester Police Department. The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes. The case was prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Luzerne County Woman Guilty of Participating in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that Brianna Rattigan, age 24, of Wilkes-Barre, Pennsylvania, pleaded guilty on August 22, 2017, before Senior U.S. District Court Judge James M. Munley, to conspiring with others to distribute heroin in Luzerne County during February through November 2014.
According to United States Attorney Bruce D. Brandler, Rattigan admitted to allowing co-conspirators to store heroin at her residence, and at times she distributed heroin to customers. Rattigan admitted to storing and distributing between 100 and 400 grams of heroin, which is approximately equivalent to between 4,000 and 16,000 retail bags of heroin.
Desmond Mercer, the leader of the drug conspiracy, previously pleaded guilty and was sentenced to 14 years in prison. Shaliek Stroman and Shaquan Murphy, two key associates of Mercer, were each sentenced to more than 12 years in prison for their roles in the conspiracy. Another member of the drug ring, Antuan Jamison, was sentenced to five years in prison.
Rattigan was indicted by a federal grand jury in February 2016, as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Luzerne County District Attorney’s Office, and Kingston Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Judge Munley ordered a pre-sentence investigation to be completed, and scheduled Rattigan’s sentencing for December 5, 2017.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 40 years in prison, a term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of five years’ imprisonment. 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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Logan man sentenced to nine years in federal prison for gun chargeRead the Press Release
CHARLESTON, W.Va. – A Logan man was sentenced today to nine years in federal prison for a gun crime, announced United States Attorney Carol Casto. Bryan Keith Lewis, 25, previously pleaded guilty to possession of a firearm after being convicted of a misdemeanor crime of domestic violence.
Lewis admitted that on November 9, 2015, while carrying a Smith & Wesson, Bodyguard, .380 caliber pistol, he entered a residence in Logan by kicking the door open and motioned for a victim in the residence to give over any money. The victim resisted and a struggle began. During the struggle, Lewis admitted that he shot the victim several times. Despite the gunshot wounds, the victim stabbed Lewis multiple times with a box cutter. Lewis fled the house and dropped the gun on the way out. The victim crawled to pick up the firearm and when Lewis returned to the house to retrieve the gun, the victim shot Lewis.
Lewis was prohibited from possessing any firearm under federal law because of a 2014 conviction in Logan County Magistrate Court for domestic assault.
The Logan Police Department, the Logan County Sheriff’s Office, the U.S. Route 119 Drug Task Force, the West Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Lawrence Gang Member Indicted on Federal Firearms and Drug ChargesRead the Press Release
BOSTON – A Lawrence gang member was indicted today in federal court in Boston on federal firearms and drug charges.
Esmarin Santiago, 39, was charged with one count each of being a felon in possession of firearms and ammunition, possessing fentanyl with the intent to distribute, and possessing firearms during and in relation to a drug trafficking crime. Santiago was previously charged in a criminal complaint and arrested in July 2017.
According to court documents, Santiago is associated with the Latin Gangster Disciple street gang and has a lengthy criminal history including prior convictions for possession of firearms, assault and battery with a dangerous weapon, armed robbery, armed assault, and possession with intent to distribute a controlled substance.
On April 10, 2017, Santiago was allegedly found in possession of a Smith & Wesson 9 mm firearm, a Smith & Wesson .40 caliber firearm, 10 rounds of 9 mm ammunition, and 14 rounds of .40 caliber ammunition. He was also found in possession of over 40 grams of fentanyl.
The charge of being a felon in possession of a firearm provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute over 40 grams of fentanyl provides for a minimum sentence of five years and a maximum of 40 years in prison, a minimum of four years and a maximum of a lifetime of supervised release, and a fine of up to $5 million. The charge of possessing a firearm during and in relation to a drug trafficking crime provides for a mandatory minimum of five years and a maximum of life in prison to be served consecutively to any other sentence, five years of supervised release, and a fine up to $250,000. Sentences are imposed by a federal judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Middlesex District Attorney Marian T. Ryan made the announcement today. Assistant United States Attorney Kunal Pasricha of Weinreb’s Organized Crime & Gang Unit is prosecuting the case.
The details contained in the indictments are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Las Cruces Man Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jose Angel Sanchez, 35, of Las Cruces, N.M., was sentenced today in federal court to 120 months in prison followed by six years of supervised release for his conviction on a methamphetamine trafficking charge.
Sanchez was arrested on Dec. 2, 2016, on a criminal complaint charging him with possessing approximately 229.5 grams of methamphetamine with intent to distribute in Dona Ana County, N.M. According to the complaint, Sanchez committed the crime while on supervised release from a prior federal drug trafficking conviction.
On March 30, 2017, Sanchez pled guilty to a felony information charging him with possessing methamphetamine with intent to distribute. In entering the guilty plea, Sanchez admitted that on Dec. 2, 2016, he possessed more than 50 grams of methamphetamine, which he intended to sell to others. Sanchez also admitted that he was on supervised release from a prior conviction when he committed the offense on Dec. 2, 2016, and that he was prohibited from committing crimes as a condition of his supervised release.
This case was investigated by the Las Cruces office of the FBI and was prosecuted by Assistant U.S. Attorney Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office.
Justice Department Secures the Denaturalization of Individual Convicted of Impersonating an Immigration Officer to Defraud Other Immigrants Residing Unlawfully in the United StatesRead the Press Release
On Aug. 21, Judge R. Gary Klausner of the U.S. District Court for the Central District of California entered an order that revoked the naturalized U.S. citizenship of a fraudster and immigration-officer impersonator, restrained and enjoined her from claiming any rights, privileges, or advantages of U.S. citizenship, and ordered her to immediately surrender and deliver her Certificate of Naturalization and any other indicia of U.S. citizenship to federal authorities, the U.S. Department of Justice, U.S. Immigration and Customs Enforcement (ICE) and U.S. Citizenship and Immigration Services (USCIS) jointly announced.
“The Justice Department is committed to preserving the integrity of our nation’s immigration system and the propriety of the government’s adjudication of immigration benefits,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will aggressively pursue the denaturalization of individuals who lie on their naturalization applications, especially in a circumstance like this one, which involved an alien who masqueraded as an immigration officer and was convicted of defrauding nine aliens of thousands of dollars in exchange for false promises of facilitating immigration benefits.”
Araceli Martinez aka Maria Araceli Ramos de Martinez, 53, a native of Mexico, pleaded guilty in September 2012 to Obtaining Money, Labor or Property by False Pretense in violation of California Penal Code § 532(a) in the Superior Court of the State of California for the County of Los Angeles. Between June 2011 and March 2012, Martinez engaged in a scheme in which she impersonated a U.S. immigration officer. Martinez falsely represented that undocumented immigrants could hire her to assist them in obtaining legal status, defrauding her victims of thousands of dollars without ever submitting any paperwork on their behalf. Martinez applied to naturalize and become a U.S. citizen in the midst of engaging in her fraudulent scheme. While under oath during her naturalization interview, Martinez stated that she had never committed a crime or offense for which she was not arrested. Relying on this answer, USCIS granted her naturalization application and Martinez became a U.S. citizen later that year. When the Department of Justice filed a complaint in federal court to initiate denaturalization proceedings in April 2017, Martinez was incarcerated in the Mendocino County jail in Ukiah, California, serving a two-year sentence for a December 2015 conviction for felony grand theft.
“This order sends a clear message to individuals who commit fraud during the naturalization process – we will investigate you and seek you out to ensure that justice is done,” said Acting ICE Director Thomas Homan. “ICE will continue to work with our partners at the Justice Department’s Office of Immigration Litigation – District Court Section to hold individuals responsible for their fraudulent conduct, especially those pretending to be government officials.”
“I congratulate the trial team for bringing Araceli Martinez to justice,” said USCIS Acting Director James McCament. “Ms. Martinez fraudulently obtained her citizenship and then made false representations that exploited other immigrants. By doing so, she threatened to undermine the hard work our officers do every day to protect the integrity of the immigration system. USCIS is glad to see her held accountable.”
This case was investigated by ICE Homeland Security Investigations Los Angeles Document and Benefit Fraud Task Force and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case was prosecuted by Deputy Chief Tim Belsan of OIL-DCS’s National Security and Affirmative Litigation Unit, with support from ICE Senior Attorney Jillian Woods.
Jury Convicts Undocumented Alien for Illegal Re-entryRead the Press Release
McALLEN, Texas - A 40-year-old Mexican national has been convicted of illegally re-entering the country after removal or deportation, announced Acting U.S. Attorney Abe Martinez. A federal jury sitting in McAllen deliberated for approximately 30 minutes before finding Rogelio Rodriguez guilty.
During the trial, Border Patrol (BP) agents testified that Rodriguez had been apprehended near Donna on April 24, 2016, and admitted to being a Mexican national. Record checks revealed Rodriguez had been previously removed from the United States on three separate occasions and that he had no lawful status to be in the United States.
U.S. District Judge Ricardo H. Hinojosa presided over the trial and set sentencing for Oct. 27, 2017, at which time Rodriguez faces up to 20 years in federal prison.
He will remain in custody pending that hearing.
U.S. Border Patrol conducted the investigation. Assistant U.S. Attorney Kristen Rees is prosecuting the case.
Jefferson County man admits to illegal firearm chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Charles Town, West Virginia man pled guilty today to unlawfullly possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Darnell Antonio Gardner, age 38, pled guilty to one count of “Unlawful Possession of a Firearm.” Gardner, having previously been convicted of a felony in Prince George’s County, Maryland, had a .40 caliber pistol in Jefferson County in June 2016.
Gardner 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 Lara Omps-Botteicher prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Jefferson County Sheriff’s Office investigated.U.S. Magistrate Judge Robert W. Trumble presided.
Indictment: Topeka Man Brandished Firearm During Robbery at McDonald’sRead the Press Release
TOPEKA, KAN. - A Topeka man was indicted Wednesday on charges of brandishing a firearm when he robbed a McDonald’s restaurant, U.S. Attorney Tom Beall said.
Brendon R. Thompson, 30, Topeka, Kan., is charged with one count of robbery and one count of brandishing a firearm during the robbery. The indictment alleged that on July 19, 2017, Thompson threatened employees with a gun when he robbed a McDonald’s restaurant at 1100 S. Kansas Avenue in Topeka.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on the robbery charge, and not less than seven years and a fine up to $250,000 on the firearm charge. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Carlos F. Fernandez-Gonzalez, 28, Yucaipa, Calif., is charged in a superseding indictment with one count of possession with intent to distribute 14 kilograms of fentanyl, and one count of possession with intent to distribute 2.25 kilograms of heroin. The crime is alleged to have occurred May 25, 2017, in Russell County, Kan.
If convicted, he faces not less than 10 years and a fine up to $10 million on each count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
Robert P. McConnell, 48, Slippery Rock, Penn., owner of Horseshoe Hill Outfitters, is charged with four counts of violating the federal Lacey Act. The indictment alleges he unlawfully took deer in 2014 and 2014 in Allen County, Kan.
If convicted, he faces up to five years in federal prison and a fine up to $250,000 on each count. The U.S. Fish and Wildlife Service investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
Willie Ben Jordan, Jr., 42, who is in custody, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred July 21, 2017, in Shawnee County.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Robert Wesley Fox, 54, Marysville, Kan., is charged with failing to register as required by the Sex Offender Registration and Notification Act. He was found in Marshall County in August 2017.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Howard Dale Burchfiel, 31, Topeka, Kan., is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred June 17, 2017, in Topeka, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
Juan Carlos Aguilar, 23, Kansas City, Mo., and Saul Lucio-Murillo, 28, Palmdale, Calif., are charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred July 30, 2017, in Saline County, Kan.
If convicted, they face not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
Brandon Valerius, 38, William Hancock, 58, Colbie Clayton, 31, and Treasure McCall, 33, all in federal custody, are charged with conspiracy to distribute methamphetamine. In addition, Valerius and McCall are charged with one count of possession with intent to distribute methamphetamine, Hancock is charged with one count of possession with intent to distribute methamphetamine, and Colbie Clayton is charged with one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred Aug. 4, 2017, in Riley County.
If convicted, they face a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Skip Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Hudson Man Sentenced to 132 Months in Federal Prison for Drug TraffickingRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Dennis Higgins, 24, formerly of Hudson, New Hampshire, was sentenced to 132 months in federal prison after pleading guilty to unlawful distribution of fentanyl.
According to court documents and statements in court proceedings, on February 15, 2016, Higgins sold a quantity of fentanyl to a 22-year-old woman from Kittery, Maine. The following morning, emergency personnel received a 911 call and responded to the woman’s Kittery residence, where they found her dead from a suspected drug overdose. At the scene, law enforcement officers found needles and a plastic bag that contained a white powdery substance that was determined to be fentanyl. An autopsy determined that the woman died from acute fentanyl intoxication.
A subsequent investigation developed evidence that Higgins had distributed fentanyl to the woman. Higgins pled guilty to drug distribution on May 15, 2017.
Acting United States Attorney John J. Farley said, “Fentanyl continues to be the cause of far too many deaths in the Granite State and throughout New England. The aggressive investigation and prosecution of individuals engaged in fentanyl trafficking in New Hampshire remains a top priority of the United States Attorney’s Office and our law enforcement partners at the local, state. and federal level. While we support access to treatment for those who suffer from addiction, those who distribute these deadly drugs need to be held accountable for the substantial damage they are causing in our community.”
“The state of New Hampshire is faced with a fentanyl and heroin crisis unlike ever before,” said Special Agent in Charge Michael J. Ferguson. “Those responsible for distributing these lethal drugs and contribute to the loss of life for those battling this insidious disease need to be held responsible for their actions. In response to the ongoing opioid epidemic DEA and its local, state and federal partners are committed to bringing to justice those that distribute this poison.”
This case was investigated by the United States Drug Enforcement Administration with assistance from the Kittery, Maine and Merrimack, New Hampshire Police Departments. The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis.
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Hedge Fund Managers Indicted on Multiple Counts of Wire FraudRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced an indictment charging STEVEN MARKUSEN, 63, and JAY COPE, 58, with multiple counts of wire fraud in a stock trading scheme.[1] MARKUSEN and COPE will make their initial appearances in U.S. District Court at a later date.
According to the indictment, MARKUSEN was the sole owner, CEO and managing member of Archer Advisors LLC (“Archer”), which he formed in 2002. COPE was employed by Archer and at various times held the titles of chief operating officer, managing member, and research associate, and whose primary duties were operations, investor relations, and marketing for Archer. The sole business purpose of Archer was to serve as the investment manager for two private hedge funds, the Archer Equity Fund LLC (“Equity Fund”) and the Archer Focus Fund LLC (“Focus Fund”) (collectively, the “Funds”). At their peak, the Funds had more than $36 million in net assets.
According to the indictment, the Funds paid Archer monthly management fees, annual performance fees, and reimbursements for eligible expenses incurred by Archer. All payments to Archer were made through a third-party administrator. To place trades, MARKUSEN and COPE used brokerage firms, including certain brokerage firms that offered what is known as a “soft dollar program,” which is an incentive program where Archer would be credited a percentage of the commission paid by the Funds to the brokerage firms for each trade. Archer could use these commission percentages, called “soft dollars,” for the limited purpose of purchasing third-party research services to help Archer make investment decisions for the Funds.
According to the indictment, in 2008, COPE began submitting monthly invoices to Archer claiming he had performed research for Archer. MARKUSEN would then request reimbursement from the third-party administrator for COPE’S expenses, which were paid to Archer separate from the monthly management fees. Beginning in approximately April 2009, Archer stopped paying COPE’S fees, however, from April 2009 through October 2013, MARKUSEN continued to falsely represent to the third-party administrator that Archer had paid COPE’S fees and to fraudulently request reimbursements when, in reality, the defendants had caused soft dollars to be used to pay for COPE’S research fees. Every time Archer executed trades using one of the brokers who offered a soft dollar program, additional soft dollars were generated. MARKUSEN authorized COPE’S monthly research invoices, as well as reimbursements for other purported expenses, to be paid from the soft dollar accounts. Between May 2009 and October 2013, soft dollars were used to pay more than $500,000 in research expenses purportedly incurred by Archer, more than 80 percent of which went to COPE.
According to the indictment, as part of the scheme, MARKUSEN and COPE engaged in fraudulent trading activity that was designed to ensure that the soft dollar accounts contained sufficient funds to cover COPE’S monthly invoices. MARKUSEN and COPE closely monitored the soft dollar balance, and, after learning that it was in arrears, they began “day trading,” buying and then selling a position on the same trading day. MARKUSEN and COPE also attempted to artificially inflate the value of the Funds through a market-manipulation scheme known as “marking the close.” Through this scheme, MARKUSEN and COPE purchased large volumes of shares of a thinly traded stock in the closing minutes of the last day of the month, oftentimes at or above the prevailing market prices. Through these efforts, MARKUSEN and COPE were able to cause the stock to close at artificially high prices at the end of numerous months, which resulted in an artificially exaggerated increase in the overall value of the Funds.
This case is the result of an investigation conducted by the FBI.
The case is being prosecuted by Assistant United States Attorney John E. Kokkinen and Special Assistant U.S. Attorney Ariella Guardi with the Securities and Exchange Commission.
Defendant Information:
STEVEN MARKUSEN, 63
Minneapolis, Minn.
Charges:
- Mail fraud, 8 counts
JAY COPE, 58
Victoria, Minn.
Charges:
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Mail fraud, 4 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Gregg County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A 29-year-old Kilgore, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Andrew Jonathan Hearnsberger pleaded guilty on May 16, 2017, to conspiracy to distribute and possession with intent to distribute heroin and was sentenced to 60 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Jan. 10, 2017, law enforcement agents executed a federal arrest warrant for Hearnsberger in Kilgore as a result of an investigation into illegal drug trafficking in the area. The arrest resulted in the seizure of $14,624 in cash, heroin, marijuana, and multiple firearms. Hearnsberger was indicted by a federal grand jury on Dec. 14, 2016, and charged with federal drug trafficking violations.
This case was investigated by the U.S. Drug Enforcement Administration, Gregg County CODE Unit, Smith County Sheriff’s Office, and the Kilgore Police Department and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Genco Pharmaceuticals Services to Pay Civil Penalty of $2,000,000Read the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced yesterday that the United States has settled civil penalty claims against Genco for alleged violations of the Controlled Substances Act (CSA) and its implementing regulations. Under the settlement agreement, Genco will pay a civil penalty to the United States of $2,000,000.
Genco is a company that specializes in the handling, processing and destruction of pharmaceutical returns, including controlled substances, from pharmaceutical manufacturing and retail companies throughout the United States. Genco’s return processing facility for controlled substances is located at 6101 North 64th Street in Milwaukee, Wisconsin. Because Genco processes and handles controlled substances, it is required to operate in accordance with the CSA.
As reflected in a written Settlement Agreement, the United States contends that it has certain civil penalty claims arising under the CSA against Genco for the following conduct commencing January 1, 2012:
(1) failing to make, keep and furnish accurate records of all stocks of controlled substances on hand and each controlled substance received, sold, delivered or otherwise disposed of;
(2) failing to make, keep and furnish complete and accurate DEA order forms (Form 222) documenting all receipts of schedule II controlled substances;
(3) failing to furnish complete and accurate reports to DEA’s Automation of Reports and Consolidated Orders System Unit of data on each acquisition to inventory and each reduction from inventory of Schedule II controlled substances, narcotic controlled substances listed in Schedule III, and drugs listed in 21 C.F.R. § 1304.33(d); and
(4) failing to notify the Field Division Office of the Drug Enforcement Administration, in writing using DEA Form 106, of thefts and significant losses of Schedule III-V controlled substances within one business day of the discovery of the theft or loss.
The CSA provides for a civil penalty of up to $10,000 for each violation of the Act. This matter was investigated by Diversion Investigators with the Milwaukee Field Office of the United States Drug Enforcement Administration. Genco cooperated in the DEA’s investigation and has taken significant steps to prevent future violations of the CSA.
# # # # #
For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Fort Smith Woman Sentenced to 60 Years in Federal Prison for the Sexual Exploitation of Two InfantsRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Amelia Marie Spiotto, age 32, of Fort Smith, was sentenced today to 60 years in federal prison without the possibility of parole followed by a lifetime of supervised release on Two (2) Counts of Production of Child Pornography. The sentencing hearing took place before the Honorable Chief Judge P. K. Holmes, III in the United States District Court in Fort Smith.
According to the court records, in February 2016, agents with the Internet Crimes Against Children Taskforce, in conjunction with Department of Homeland Security, were conducting an investigation into the online trafficking of child pornography in the Fort Smith Area. As a part of the investigation, law enforcement obtained a federal search warrant for the residence of James Spiotto. During the execution of the search warrant, law enforcement located a computer hard drive that had been thrown from a second story window. A subsequent forensic examination of the hard drive revealed numerous videos under a file entitled “for Daddy” in which Amelia Spiotto recorded herself sexually abusing a 3-month-old male and an 11-month-old female. Law enforcement also discovered recordings of a co-defendant, James Spiotto, molesting the same 11-month old female. During a post-Miranda interview, James Spiotto admitted that Amelia Spiotto arranged to babysit a friend’s daughter, and thereafter they separately made videos of themselves sexually abusing her. James Spiotto further admitted that Amelia Spiotto recorded herself preforming oral sex on a 3-month-old male. During the investigation, law enforcement located numerous text messages between James and Amelia Spiotto, in which they were directing and encouraging each other to perform certain sexual acts on the minors.
“Sexual predators who prey on the most vulnerable in our society are especially heinous,” said Special Agent in Charge of the New Orleans field office Raymond R. Parmer, Jr. “HSI will continue to diligently work with our law enforcement partners to ensure the perpetrators of these horrific crimes are brought to justice.”
Amelia and James Spiotto were indicted by a federal grand jury in March of 2016. James Spiotto subsequently pleaded guilty to two counts involving sexual exploitation of minors and was sentenced to serve sixty (60) years in federal prison without the possibility of parole.
This case was investigated by Homeland Security Investigations and the Arkansas State Police Internet Crimes Against Children Taskforce. Assistant United States Attorneys Dustin Roberts and Ashleigh Buckley prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Tampa Police Sergeant Pleads Guilty to Receipt of Stolen Government PropertyRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that LaJoyce Caldwell Houston (51, Riverview) today pleaded guilty to receiving stolen government property. She faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in 2011 and 2012, while working at the Tampa Police Department, LaJoyce Houston received goods, services, money orders, and cash that were obtained with debit cards tied to accounts that had been loaded with fraudulently obtained tax refunds. The fraudulent refunds deposited into these accounts totaled $284,490.41 and were the result of fraudulent federal income tax returns that had been filed by Rita Girven.
For example, in March 2011, Girven paid off LaJoyce Houston’s Target Visa credit card, with Houston’s knowledge, by making two in-store payments totaling $3,863.08. These in-store payments were made using a debit card loaded with nine fraudulently obtained tax refunds, eight issued in the name of identity theft victims, and one issued to Girven.
LaJoyce Houston’s co-defendant and husband, Eric Houston, pleaded guilty on March 31, 2017, to receiving stolen government property. He is scheduled to be sentenced on October 25, 2017.
In a related case (case no. 8:15-cr-58-T-17EAJ), Rita Girven pleaded guilty on March 16, 2015, to conspiracy to commit wire fraud and aggravated identity theft. On November 20, 2015, she was sentenced to 12 years in federal prison.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Former Floyd Pharmacist Sentenced for StructuringRead the Press Release
Roanoke, VIRGINIA – A former Floyd pharmacist, who structured cash deposits to avoid Internal Revenue Reporting Requirements, was sentenced today in the United States District Court for the Western District of Virginia.
Venkata Subrahmanya Ashok Raju Pinnamaraju, 40, of Roanoke, was sentenced today to 18 months incarceration to be followed followed by 1 year of supervised release. Pinnamaraju was also ordered to pay a fine of $200,000, which has been paid. Previously, Pinnamaraju waived his right to be indicted and pled guilty to a one count Information charging him with structuring financial transactions to avoid reporting requirements.
According to information presented at previous hearings by Assistant United States Attorney Jennie L. M. Waering, Pinnamaraju was the part owner and the managing pharmacist of a Floyd Pharmacy, retail pharmacy in the Town of Floyd, Virginia. As the managing pharmacist, the defendant was in charge of ordering and dispensing prescription medication, supervising pharmacy employees, billing insurance providers and overseeing the pharmacy’s finances and accounting.
In the normal course of business, Floyd Pharmacy collected large amounts of United States currency from its customers. However, instead of making a single deposit of the cash accumulated over a period of several days, the defendant made a series of smaller case deposits to avoid the currency transaction reporting requirement. Pinnamaraju conducted at least a dozen structuring deposits between 2011 and 2016, depositing cash totaling approximately $170,000.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Virginia Attorney General Mark Herring’s Medicaid Fraud Investigation Unit and the United States Health and Human Service – Office of the Inspector General. Assistant United States Attorney Jennie L. M. Waering prosecuted the case for the United States.
Former Fentress County Sheriff Sentenced to Federal PrisonRead the Press Release
Charles Cravens, 47, the former Sheriff of Fentress County, Tennessee, was sentenced today to 33 months in prison, followed by 2 years of supervised release, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division. Cravens was charged on April 20, 2017, with three counts of honest services fraud and one count of deprivation of rights under color of law. On the same day, he pleaded guilty to all charges and announced his resignation as the Fentress County Sheriff.
“Today, another public official was sentenced to prison for violating their sworn oath to uphold the law,” said Acting U.S. Attorney Jack Smith. “There are dire consequences when elected officials violate the public’s trust and place their own interest above that of their constituents.”
According to court documents, Cravens admitted that between July 2016 and February 2017, he used his position as Sheriff to provide extra benefits to female inmates in exchange for sexual relationships with each woman. These extra benefits included being personally transported by Cravens from the jail to visit relatives; allowing these inmates to go outside of the jail to smoke cigarettes; and Cravens providing money to relatives of the inmates for deposit into their jail commissary accounts.
Court documents also outline occurrences where Cravens drove female inmates from the jail and engaged in sex in a vacant trailer and in his vehicle. Cravens was also charged with kicking an inmate in the backside and placing him in a headlock while another officer handcuffed him and then striking the inmate in the back of the head, after he was handcuffed.
This case was investigated by the FBI; the Tennessee Bureau of Investigation and the District Attorney’s Office for the Eighth Judicial District. The case was prosecuted by Assistant United States Attorney Katy Risinger and DOJ Trial Attorneys Lauren Bell and Andrew Laing of the Department’s Public Integrity Section.
Former Controller of Saint Paul Golf Club Indicted for Million Dollar Embezzlement SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the indictment of JULIE ANN LEE, 53, former controller of the Town & Country Club in St. Paul, Minn., on four counts of wire fraud and six counts of filing false tax returns. LEE is expected to make her initial appearances in U.S. District Court in Minneapolis later this week.
According to the indictment, from 2008 through 2016, LEE was the controller of the Town & Country Club (“TCC”), a private golf club in St. Paul, Minn. In her role, LEE was responsible for managing TCC’s finances and had authority to sign and issue checks on behalf of TCC as well as signing authority on TCC’s bank accounts, including a line of credit TCC had with Alliance Bank. LEE used her position as controller to devise a scheme to embezzle more than $1 million from TCC over the course of eight years.
According to the indictment, as part of her embezzlement scheme, LEE fraudulently issued herself more than 50 checks totaling more than $150,000 directly from TCC’s bank accounts. LEE also stole approximately $250,000 in cash from TCC, which she deposited into her personal bank account. As part of the scheme, LEE also made payments on her personal credit cards directly from TCC bank accounts totaling approximately $600,000. LEE spent the funds she embezzled on things unrelated to TCC, including personal travel, home improvements and her mortgage, a 2013 Dodge Charger, a 2015 GMC Sierra K3500 pickup truck, a motorcycle, a recreational vehicle, and 81 acres of land in northern Minnesota.
According to the indictment, LEE attempted to conceal her embezzlement scheme and cover the shortage of money in TCC’s bank accounts by taking advances on TCC’s line of credit at Alliance Bank. As a result of LEE’s embezzlement, TCC was left without sufficient funds to make its quarterly payroll tax payments to the IRS. In order to conceal the shortage of funds, LEE filed false quarterly payroll tax returns with the IRS understating TCC’s payroll tax liability. At times, LEE also filed TCC’s quarterly payroll tax returns late and made TCC’s quarterly tax payments late, which resulted in TCC paying more than $300,000 in interest and penalties to the IRS.
This case is being prosecuted by Assistant U.S. Attorney Joseph H. Thompson.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, the United States Secret Service, and the Saint Paul Police Department.
Defendant Information:
JULIE ANN LEE, 53
Farmington, MN
Charges:
- Wire Fraud, 4 counts
- Filing false tax returns, 6 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Assisted Living Facility Worker Sentenced for Tax Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Willie L. Lee to two years in federal prison for aggravated identity theft. The Court also ordered him to pay $32,933 in restitution. He pleaded guilty on May 17, 2017.
According to court documents, during 2012 and 2013, Lee was employed at an Assisted Living Facility (ALF) where he conspired with another individual to defraud the United States by stealing personal identifying information (PII) from ALF patients and deceased individuals. The PII was then used to file fraudulent income tax returns that were electronically deposited into an account that Lee had opened and maintained.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Felon from Carlsbad Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jacob Lynn Martinez, 34, of Carlsbad, N.M., was sentenced yesterday in Las Cruces, N.M., federal court to 30 months in prison for violating the federal firearms laws by unlawfully possessing firearms on two occasions. Martinez will be on supervised release for three years after completing his prison sentence.
Martinez was arrested on Jan. 25, 2017, on a criminal complaint charging him with being a felon in possession of a firearm on June 9, 2015 and Dec. 11, 2015, in Eddy County, N.M. According to the complaint, on both dates, Martinez discarded firearms while attempting to flee from police officers.
On March 29, 2017, Martinez pled guilty to a felony information charging him with being a felon in possession of a firearm on June 9, 2015 and Dec. 11, 2015. On those dates, Martinez was prohibited from possessing firearms or ammunition because he previously had been convicted of three felony offenses, aggravated fleeing from a police officer, receiving or transferring a motor vehicle, and being a felon in possession of a firearm or destructive device. Martinez entered the guilty plea without the benefit of a plea agreement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Carlsbad Police Department and was prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Federal and State Authorities Arrest Total of 38 Individuals Based on San Antonio Federal Drug Trafficking IndictmentsRead the Press Release
This morning, federal, state and local authorities arrested a dozen individuals without incident, including San Antonio Eastside-based ringleader Donavin Sanchez, on federal drug charges stemming from a heroin and methamphetamine trafficking investigation announced United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration Acting Special Agent in Charge Steve Whipple, Houston Division; and, Texas Department of Safety Director Steve McCraw. Below is a complete list of defendants resulting from this investigation.
Since June 2017, a federal grand jury in San Antonio has returned three (3) indictments charging 38 individuals in connection with this investigation. The indictments, including the latest one which was unsealed today, charges all 38 defendants with conspiracy to possess with intent to distribute a controlled substance. Several of the defendants face additional charge(s), namely, possession with intent to distribute a controlled substance. Upon conviction, the defendants face sentences of either up to 20 years in federal prison, between 5 and 40 years in federal prison, or up to life in federal prison depending on the amount of heroin or methamphetamine involved.
According to the indictments, the defendants were allegedly involved in a scheme to distribute narcotics, namely methamphetamine, heroin and other opioids, in San Antonio. During this investigation, authorities have seized approximately six (6) kilograms of heroin, 14.5 kilograms of methamphetamine, three firearms, and approximately $182,000 in U.S. Currency attributed to this organization.
“Nothing is more important than the safety and security of our communities. DEA, and our federal, state, and local law enforcement partners in San Antonio and throughout Texas, remain vigilant in our pursuit of drug trafficking organizations who threaten our community safety. These arrests send a strong and unified message that these crimes will not be tolerated in our communities and those who commit these offenses will be brought to justice,” stated DEA Acting Special Agent in Charge Steve Whipple.
“Organized crime and drug trafficking are a serious threat to public safety in Texas, and DPS vigilantly works alongside our law enforcement partners to detect, deter and dismantle drug trafficking organizations operating in our communities,” said DPS Regional Commander Freeman Martin. “This long-term investigation is an ideal example of how law enforcement at all levels works together to put criminals behind bars and protect Texans.”
The Drug Enforcement Administration—San Antonio Office and the Texas Department of Public Safety conducted this investigation together with the Seguin Police Department, Castle Hills Police Department, Internal Revenue Service-Criminal Investigation, Bexar County District Attorney’s Office, Bexar County Sheriff’s Office, and San Antonio Police Department. An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
US vs. Donavin Sanchez, et al. SA17cr633 * denotes already in custody prior to today
Name Age Residence Arrest Date Counts
Donavin Sanchez 23 San Antonio 8.23.17 1,2,3,4,5,6,7,8,9,10
Edwin Jiminez 62 San Antonio 8.23.17 1
John Sallin 47 San Antonio 8.23.17 1
Edward Alejandro 30 San Antonio 8.23.17 1
Melissa Carrera 39 San Antonio 8.23.17 1,2,6,7,8
Roger Troy Sanchez 25 San Antonio 8.23.17 1
Chenille Lujan 84 San Antonio 8.23.17 1
Michelle Sallin 23 San Antonio 8.23.17 1,3,5
Alexander Nichols 26 San Antonio 8.23.17 1,4,5
Marko Cadena 21 San Antonio 8.23.17 1,9
Kenneth Dickens 60 San Antonio 8.23.17 1
Conception Segura 30 San Antonio 8.23.17 1
*Luis Antonio Rodriguez 32 San Antonio 8.4.17 1,10
US vs. Christian Gallegos, et al. SA17cr507
*Christian Gallegos 28 San Antonio 6.2.17 1,3,4
*Edgar Portales 24 San Antonio 6.29.17 1,2,3,4
*Irene Portales 28 San Antonio 6.29.17 1
*Crystal DeLaGarza 25 San Antonio 6.29.17 1
*Yoan Loya-Morales 35 San Antonio 6.2.17 1,3,4
*Larry Ozuna 26 San Antonio 6.2.17 1,3,4
*Roberto Gonzalez 34 San Antonio 6.29.17 1,2
*Adrian Dominguez 20 San Antonio 6.29.17 1
*Issac Cardenas 27 San Antonio 7.17.17 1
*Paul Chacon 46 San Antonio 6.29.17 1
*Alberto Otenco-Ramos 34 San Antonio 6.2.17 1
U.S. v. Mike Flores, Jr., et al. SA17cr632
*Mike Flores, Jr. 45 San Antonio 8.3.17 1,2,4,5,8,9
*Oscar Llanes 46 San Antonio 8.17.17 1,4,5
*Genaro Requejo 61 San Antonio 7.26.17 1,4,5,6,7
*Richard Pierce 48 San Antonio 8 .17.17 1
*Robert Solis 54 San Antonio 8.17.17 1
*Ricardo Hernandez 69 San Antonio 8 .17.17 1
*Adolfo Cruz 42 San Antonio 8.17.17 1,4,5
*Joe Anthony Valenzuela 37 San Antonio 7.20.17 1,2,3
*Christina Maciel 35 San Antonio 8.17.17 1
*Pedro Martinez-Espinoza 32 San Antonio 8.17.17 1,4,5
*Leonidas Ortiz 27 San Antonio 7.29.17 1,4,5,8
*Joseph John Molina 38 San Antonio 7.29.17 1,8
*Charles Ortiz 49 San Antonio 8.3.17 1,10
*Pedro Requejo 68 San Antonio 8.3.17 1,9
Federal Correctional Officer Arrested for Allegedly Taking BribesRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces the arrest late Tuesday of Albert Larry Harris (27, Lake County) on a federal criminal complaint charging him with receipt of a bribe by a public official. If convicted, he faces a maximum penalty of 15 years in federal prison.
According to the
criminal complaint , Harris works as a correctional officer in a penitentiary at the Coleman Federal Correctional Complex. Beginning in June 2017, he began providing inmates at the facility with contraband in exchange for large cash payments. Harris met with an undercover federal agent in Ocala on August 22, 2017, where he accepted a $5,000 payment and 200 Suboxone strips for delivery to a federal inmate. In the recorded transaction, Harris promised to take the drugs “straight to [the inmate].” He was arrested by federal agents after accepting the drugs and the money.A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Department of Justice - Office of the Inspector General and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Father and Son Charged with Selling Fentanyl and Oxycodone on the Dark WebRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the arrests of MICHAEL LUCIANO and PHILIP LUCIANO, a father-son team that sold fentanyl and oxycodone over the “dark web,” including on AlphaBay. Fentanyl is a synthetic opioid that is significantly stronger than heroin, and is a major contributor to overdose fatalities. Both defendants surrendered this morning in Manhattan, and are expected be presented today before U.S. Magistrate Judge Henry B. Pitman.
Acting Manhattan U.S. Attorney Joon H. Kim said: “The defendants’ alleged scheme used the dark web – a place where some criminals think they can hide by trying to conceal their identity and transactions – to sell fentanyl and oxycodone, two highly addictive and potentially lethal opioids. I want to thank our partners at HSI for bringing this father-son duo’s alleged misconduct out of the dark.”
HSI Special Agent-in-Charge Angel M. Melendez said: “Fentanyl and other deadly opioids continue to plague far too many American communities because the unscrupulous dealers believe their surreptitious online activities escape the reach of law enforcement. The arrests of these two defendants prove that notion false. HSI and our partners are proud to be at the forefront of combating illegal activities on the Darknet.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Fentanyl is a societal scourge powerful enough to rob the lives of those who use in an instant. Today's arrest of this father and son should serve as a strong reminder the anonymity of the 'Dark Web' can't always protect you from the long arm of the law. Postal Inspectors and their law enforcement partners are committed to rooting out those who choose to deal in this deadly opioid.”
According to the allegations contained in the Complaint[1] charging the LUCIANOs:
From at least in or about February 2016 through July 2017, MICHAEL LUCIANO and PHILIP LUCIANO conspired to distribute, and possess with the intent to distribute, fentanyl and oxycodone. They sold these narcotics over AlphaBay, using the vendor name “Zane61.” Other AlphaBay users repeatedly provided positive feedback on fentanyl and oxycodone purchased from Zane61, praising Zane61 as follows in one example: “Great stealth, fast shipping, legit product. Perfect 10/10.” In June 2017, HSI officers (acting in an undercover capacity) purchased fentanyl from Zane61 on AlphaBay, which Zane61 shipped to an address in the Bronx.
In July 2017, HSI agents executed a search warrant at the LUCIANOs’ home in Staten Island (the “Staten Island Residence”), where Zane61 had received shipments of fentanyl purchased on AlphaBay. While executing that warrant, agents spoke with MICHAEL LUCIANO who admitted, among other things, that: he and his son PHILIP LUCIANO bought and sold fentanyl over the dark web; they sold drugs on AlphaBay under the name “Zane61”; PHILIP knew how to use the dark web, had set up their dark web account, had handled the technological aspects of their transactions, and had purchased bitcoins; PHILIP told MICHAEL about orders they received online, and then MICHAEL took packages (containing narcotics) to a local post office, where he handed them to a postal clerk; and they used a fake return address. A cellphone and an iPad believed to be used by PHILIP LUCIANO were also recovered during the search. These devices contained widespread evidence of drug-dealing, including text messages between the two defendants, text messages referencing their joint drug-dealing operation, photographs of fentanyl patches and oxycodone pills, and websites associated with bitcoins.
* * *
MICHAEL LUCIANO, 58, and PHILIP LUCIANO, 29, both of Staten Island, are each charged with one count of conspiracy to distribute and possess with the intent to distribute two controlled substances – fentanyl and oxycodone. The fentanyl charge – conspiring to distribute and possess with the intent to distribute 40 grams and more of mixtures and substances containing a detectable amount of fentanyl – carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison. The oxycodone charge – conspiring to distribute and possess with the intent to distribute a quantity of mixtures and substances containing a detectable amount of oxycodone – carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised HSI for its outstanding work on the investigation. Mr. Kim also thanked the U.S. Postal Inspection Service, U.S. Customs and Border Protection, and the New York City Police Department for their assistance in this investigation. He added that the investigation is continuing.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
FBI Most-Wanted Fugitive Makes Initial Court Appearance for MS-13 MurderRead the Press Release
NEWARK, N.J. – One of the FBI’s Ten Most Wanted Fugitives, who was arrested earlier this month in Virginia, made his initial appearance in federal court in Newark for a gang-related murder, Acting U.S. Attorney William E. Fitzpatrick announced.
In September 2013, Walter Yovany-Gomez, 33, a/k/a “Cholo,” was indicted by a Newark grand jury for murder in aid of racketeering and conspiracy to commit murder in an indictment that named 14 alleged members of Plainfield Locos Salvatrucha (PLS), a New Jersey branch of the Mara Salvatrucha (MS-13) transnational gang. At the time of the federal indictment, Yovany-Gomez was a fugitive.
In April 2017, the FBI placed Yovany-Gomez on its Ten Most Wanted Fugitive List. On August 12, 2017, he was arrested without incident in Woodbridge, Virginia, based on tips received from the public. He made his initial appearance before U.S. Magistrate Judge Michael A. Hammer this afternoon and was remanded without bail.
Between 2014 and 2016, all 13 of the other co-defendants charged in the September 2013 federal indictment were convicted, including eight MS-13 members who were convicted following a 16-week trial that ended in June 2016.
Yovany-Gomez is charged in connection with the murder of Julio Matute. According to the indictment and statements made in court:
On the morning of May 8, 2011, Matute was allegedly murdered by Yovany-Gomez and a conspirator, Cruz Flores, a/k/a “Bruja.” Gomez and Flores allegedly struck Matute in the head with a baseball bat, sliced his throat, and stabbed him in the back 17 times with a screwdriver, allegedly because Matute was suspected of socializing with a rival gang. Flores was found guilty of the murder during the trial described above.
Yovany-Gomez is charged with murder in aid of racketeering, which is punishable by a mandatory sentence of life in prison. The charge is a death penalty-eligible offense subject to a decision by the U.S. Attorney General.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; and special agents of U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction Newark Field Office Director John Tsoukaris. He also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace Park, for long, close collaboration on the case. The FBI Washington Field Office’s Violent Crimes Task Force, the Fairfax County Police Department’s Gang Unit, and the Northern Virginia Gang Task Force coordinated the local search and arrest of Yovany-Gomez. He also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland for their assistance in the ongoing investigation.
The government is represented by Assistant U.S. Attorneys James Donnelly and Jamari Buxton of the U.S Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Coweta Man Sentenced to 14 Months, $52,000 Restitution for Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JESSE KENT COX, age 35, of Coweta, Oklahoma, was sentenced to 14 months imprisonment, and 3 years of supervised release for WIRE FRAUD, in violation of Title 18, United States Code, Section 1343. He was also ordered to pay restitution in the amount of $52,250.00.
The Indictment alleged that from on or about January 1, 2016, and continuing until on or about March 28, 2016, the defendant, JESSE KENT COX, devised and intended to devise a scheme to defraud, and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises.
The charge arose from an investigation by the Federal Bureau of Investigation.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Rob Wallace represented the United States.
Cleveland gang members sentenced to 64 and 14 years in prison for carjackings in Tremont neighborhoodRead the Press Release
Two Cleveland gang members were sentenced to more than 64 and 14 years in prison for their roles in carjackings in the city’s Tremont neighborhood, said U.S. Attorney Justin E. Herdman, FBI Special Agent in Charge Stephen D. Anthony and Cleveland Police Chief Calvin Williams.
Kenneth Jackson, Jr., 20, and Antowine Palmer, 24, were convicted earlier this year of an armed carjacking in July 2015. Jackson was also convicted of carjacking a couple the following day. The jury found Jackson brandished a firearm in both attacks while Palmer used a firearm in the first carjacking.
Jackson was sentenced to more than 64 years in prison by U.S. Chief Judge Patricia A. Gaughan.
Palmer was sentenced to more than 14 years in prison. That sentence will be served after he completes a seven-year prison sentence in state court for felonious assault. He still has a murder trial pending in the Cuyahoga County Court of Common Pleas.
Tervon’tae Taylor, of Cleveland Heights, D’wan Dillard, Jr.,and Calvin Rembert, both of Cleveland, previously pleaded guilty to their roles in carjackings in and around Tremont in the summer of 2015.
According to evidence and testimony introduced in the week-long trial:
Palmer and Jackson were members of the Heartless Felons street gang. They were feuding with a different set of Heartless Felons. The defendants planned to do a drive-by shootings aimed at members of the rival group, so they went to Tremont to steal a car so they would be unrecognizable during the drive-by shooting.
Palmer, Jackson, Taylor and Rembert saw a man loading a GMC Denali in the early morning hours of July 25, 2015. They held a loaded gun to the victim’s head, pistol-whipped him and stole his vehicle, his wallet and his cellular phone. The defendants used his credit cards to make purchases at a Wal Mart.
Jackson was involved in additional carjacking the following day when he pointed a loaded firearm at a couple in Tremont.
Dillard was sentenced to more than 16 years in prison. Rembert was sentenced to nearly six years in prison. Taylor is scheduled to be sentenced on Sept. 12 and faces a guideline range of up to 40 years in prison.
“These defendants preyed on innocent people who were simply working, trying to make a living, or otherwise enjoying our city,” Herdman said. “As the judge noted during the hearing, people who terrorize a neighborhood will be held accountable for their actions.”
“These men terrorized victims and the city with their dangerous, gun-wielding car thefts,” Anthony said. “The Violent Crime Task Force and our local partners are committed to aggressively investigate predators who choose to engage in heinous acts of violence against our citizens.”
“The Cleveland Division of Police will continue to work to keep our neighborhoods safe for all who live, work and play in our city,” Williams said. “These sentences send a strong message to gang members that their violence will not be tolerated.”
This case is being prosecuted by Assistant U.S. Attorneys Kelly Galvin and Robert J. Patton following an investigation by the Federal Bureau of Investigation and Cleveland Division of Police.
Career Offender Sentenced to over 15 Years for Drug TraffickingRead the Press Release
PITTSBURGH – On Monday, August 21, 2017, a resident of McKeesport, Pennsylvania, was sentenced in federal court to 188 months (15 years, 8 months) incarceration and four years supervised release on his conviction of violating the federal narcotic laws, Acting United States Attorney Soo C. Song announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Edward Hicks, age 31.
According to information presented to the court, from in and around October 2012, and continuing thereafter to in and around November 2012, Hicks and others conspired to distribute and to possess with intent to distribute twenty-eight grams or more of crack cocaine. In addition, on November 6, 2012, and again on November 15, 2012, Hicks sold multiple ounces of crack cocaine to a confidential informant who was working with the Drug Enforcement Administration. Hicks has a prior state court felony drug-trafficking conviction, as well as a prior state court robbery conviction. As a result, he was classified as a “career offender” and subject to a much higher sentencing guidelines range.
During the sentencing hearing, Judge Ambrose rejected Hicks’ request for a downward departure and/or a variance from the career offender sentencing guidelines range, specifically noting that Hicks had served 8 years in jail for his prior convictions, and yet quickly returned to criminal conduct following his release from incarceration. Hicks was on state parole when he committed this federal offense.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Drug Enforcement Administration and the West Homestead Police Department for the investigation leading to the successful prosecution of Hicks.
Broken Arrow Man Pleads Guilty to Witness TamperingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that STEPHEN LESTER GREER, age 57, of Broken Arrow, Oklahoma was arraigned and plead guilty to the charge in the indictment returned by the Grand Jury on August 16, 2017.
Defendant, STEPHEN LESTER GREER, was charged with TAMPERING WITH A WITNESS, VICTIM, OR INFORMANT, in violation of Title 18, United States Code, Section 1512.
This case is the result of an investigation by the Veterans Affairs – Office of Inspector General.
Acting United States Attorney Douglas A. Horn stated “Dr. Greer was a staff psychiatrist at the VA Hospital in Muskogee, Oklahoma. His job was to treat and protect our veterans who visited that facility for medical care. Instead, Dr. Greer violated his oath as a doctor by having inappropriate sexual contact with a female veteran that he was treating. When VA hospital administrators discovered the impropriety, Greer attempted to cover-up his actions by coaching the female veteran to lie to federal law enforcement officers. Special agents of the Veterans Affairs – Office of Inspector General conducted a thorough investigation and worked extensively and professionally with the victim to bring Dr. Greer to justice.”
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant was released on a $10,000.00 unsecured bond.
The statutory range of punishment for Tampering with a Witness, Victim or Informant is up to 20 years imprisonment and a $250,000 fine.
Acting United States Attorney Douglas Horn and Assistant United States Attorney Kristin Harrington represented the United States.
Blood Gang Member Sentenced to 85 Months for Possession of Fully Automatic Firearm and Reckless Endangerment During Flight from Law EnforcementRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Jacquel Sumter, age 23, of Columbia, was sentenced today in federal court in Columbia, South Carolina, after pleading guilty to felon in possession of a firearm and possession of a firearm with an obliterated serial number. United States District Judge Mary G. Lewis, of Columbia, sentenced Sumter to 85 months incarceration, followed by three years of supervised release.
Evidence presented at the change of plea hearing and sentencing hearing established that on January 21, 2017, Deputies with the Kershaw County Sheriff’s Office observed a blue Honda CRV traveling at approximately 105 miles per hour near mile marker 100 on Interstate 20 in Kershaw County. When Deputies initiated their blue lights and sirens, the driver, later identified as Sumter, accelerated and attempted to flee. The chase continued for approximately 10 minutes with Sumter weaving in and out of traffic at speeds in excess of 120 miles per hour. After Sumter entered Richland County, he began to slow down and drift towards a barrier wall on Interstate 20. As the vehicle slowed, Sumter and the other four occupants of the vehicle jumped out and attempted to run into the wood line. After a short foot chase and a brief resistance, Deputies detained Sumter.
When Deputies searched the CRV they located a fully automatic Intratec Model Tec 9, nine millimeter pistol with an obliterated serial number between the driver’s seat and center console. The firearm was loaded with 14 rounds of nine millimeter CBC ammunition. A records check for Sumter revealed he was convicted of Assault and Battery of a High and Aggravated Nature on December 13, 2016. This offense carries a term of imprisonment exceeding one year and prohibited Sumter from possessing firearms and ammunition. According to Sumter’s rap sheet he is a known documented Bloods Gang member.
Following Sumter’s arrest, he was placed in a Kershaw County Sheriff’s Office patrol vehicle and advised of his Miranda rights. After Sumter waived his rights, he agreed to talk and indicated he jumped out and ran when he saw the blue lights. He claimed he was sleeping during the police chase and did not know who was driving the vehicle. Deputies determined that the CRV was stolen out of Richland County and while searching the vehicle Deputies also found various electronics, a safe, burglary tools, and male clothing (a pair of red and black pants).
During the sentencing hearing, AUSA J.D. Rowell noted that Sumter had been arrested and convicted of various crimes a total of 13 times between 2004 and 2017. Despite numerous state arrests for charges including burglary, simple assault and battery, disturbing schools, possession of marijuana, carrying a concealed weapon, petit larceny, trespassing, and assault and battery of a high and aggravated nature (ABHAN), Sumter has never served a significant custodial sentence. On December 13, 2016, Sumter pled guilty to ABHAN in Richland County General Sessions Court and received a sentence of 15 months imprisonment with credit for time served. Thirty-nine (39) days after being sentenced to state prison, he fled from Kershaw County Deputies in a high-speed chase at speeds of over 120 mph, while armed with a fully automatic Tech 9 assault pistol.
As part of their investigation, ATF Agents searched Sumter’s public Facebook page and found numerous photographs of Sumter possessing firearms. At the time of his arrest, Sumter’s profile picture depicted Sumter wearing a mask, holding the Tech 9 assault pistol, and wearing the same red pants that were located in the back of the stolen CRV he was driving on January 21, 2017.
Other photographs presented at sentencing show Sumter possessing numerous firearms including some while appearing to use marijuana.
The case was investigated by the Kershaw County Sheriff’s Office, the Columbia Police Department, and agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney JD Rowell of the Columbia office prosecuted the case.
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Birmingham Man Pleads Guilty to Selling Heroin that Killed Cullman Man, Injured AnotherRead the Press Release
BIRMINGHAM – A Birmingham man pled guilty today in federal court to selling heroin last year that caused the death of one person and seriously injured another, announced U.S. Attorney Jay E. Town and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
MICHAEL DEWAYNE “Big Boi” JOHNSON, 32, appeared before U.S. District Court Judge Madeline Hughes Haikala and pled guilty to one count of distributing heroin in Jefferson County on July 28, 2016, and that a 31-year-old Cullman man died as a result of using that heroin. Johnson also pled guilty to distributing heroin that day that caused serious bodily injury to a then 18-year-old Cullman man who overdosed from using the drug. Johnson pled guilty to one count of distributing heroin in Jefferson County on Aug. 3, 2016. Johnson is scheduled for sentencing Dec. 13.
“The opioid epidemic continues to cause overdose deaths and near deaths in our communities,” Town said. “This guilty plea today sends a very loud message that if you are dealing in heroin or fentanyl, we are coming for you and will bring you to justice. Enforcement of drug-trafficking laws is a top priority of the Department of Justice and we are working in partnership with federal, state, and local law enforcement to bring the most serious available charges against the most dangerous drug dealers.”
“Heroin-related overdoses are becoming a national epidemic, including here in Birmingham, as people addicted to prescription pills become desperate to feed their addictions,” Hamilton said. “DEA and our law enforcement partners will continue to make it a priority to ban together to identify and investigate those who distribute drugs that result in overdose and death. This case should send a message to anyone who would illegally distribute drugs that behind every overdose, law enforcement is looking for the drug dealer responsible.”
The penalty for distributing heroin that causes death or serious bodily injury is 20 years to life in prison and a maximum $2 million fine. The maximum penalty for distributing heroin is 20 years in prison and a $1 million fine.
DEA investigated the case, which the U.S. Attorney’s Office for the Northern District of Alabama is prosecuting.
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Berkeley County man admits to possessing child pornographyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Wesley Chalk, of Inwood, West Virginia, pled guilty today to possession of child pornography, Acting United States Attorney Betsy Steinfeld Jividen announced.
Chalk, age 41, pled guilty to one count of “Possession of Child Pornography.” Chalk admitted to having in his possession child pornography depicting a prepubescent minor and a minor under the age of 12. The crime occurred in August 2016 in Berkeley County.
Chalk faces up to twenty years 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 Stephen L. Vogrin prosecuted the case on behalf of the government. The U.S. Department of Homeland Security investigated.
U.S. Magistrate Judge Robert W. Trumble presided.Beckley area physician sentenced to 20 years in federal prison for oxycodone crimeRead the Press Release
BECKLEY, W.Va. – A Beckley area physician was sentenced today to 20 years in federal prison and ordered to pay a fine of $50,000 for a drug crime, announced United States Attorney Carol Casto. Dr. Michael Kostenko, D.O., 61, of Daniels, previously pleaded guilty to distribution of oxycodone not for legitimate medical purposes and beyond the bounds of medical practice. Kostenko entered his guilty plea in April after a day-and-a-half of jury trial in federal court in Beckley on a 22-count indictment. The trial ended with Kostenko’s guilty plea, and the crime he pleaded to is contained in Count Seven of the Superseding Indictment.
Kostenko admitted that he owned and operated the Coal Country Clinic, a medical practice located in his Raleigh County residence. Kostenko also admitted that on December 9, 2013, he distributed oxycodone, a powerful pain medication, not for legitimate medical purposes. Specifically, Kostenko admitted that on that day, approximately 271 patients arrived at Kostenko’s residence seeking oxycodone prescriptions. Kostenko additionally admitted that his staff collected over $20,000 cash from the patients that he later deposited in a local bank in amounts of less than $10,000. Kostenko further admitted that on that day he wrote over 370 oxycodone prescriptions totaling 22,255 pain pills. Moreover, Kostenko admitted that he wrote these prescriptions from his upstairs bedroom, without seeing any of the patients, and that his staff handed out the prescriptions. Finally, Kostenko admitted that by writing the oxycodone prescriptions, he acted beyond the bounds of professional medical practice.
“This case should send a clear message to drug dealers that we will pursue them regardless of their education and status in the community. As a physician, Dr. Kostenko held a position of trust in the community. Instead of honoring his oath to do no harm, he contributed to the greatest public health crisis of our generation – opioid abuse. Sixteen patients died from overdoses on his watch, but clearly not under his care,” said United States Attorney Carol Casto. “Drug dealers should be aware that we are committed to using every tool in our arsenal to battle the opioid crisis, and the prosecution of health care providers who contribute to the problem will no longer be the exception, but the norm.”
“The West Virginia Department of Health and Human Resources (DHHR) is pleased with the success of the United States Attorney’s Office in holding Michael Kostenko responsible for his actions,” said DHHR Secretary Bill J. Crouch. “Employees of the Office of Health Facility Licensure and Certification worked diligently to close the illegal pain clinic operated by Kostenko, and today’s result brings those efforts full circle.”
The investigation of Kostenko and his Coal Country Clinic was led by the West Virginia State Police, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Office of Inspector General, United States Department of Health and Human Services, and West Virginia DHHR’s Office of Health Facility Licensure and Certification. United States District Judge Irene C. Berger imposed the sentence.
This case was brought 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 prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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