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Monday 10 July 2017
Day Care Owner Pleads Guilty to Stealing Government FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Halima Mohamed, 35, of Buffalo, NY, pleaded guilty to theft of government funds before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that in February 2015, the defendant and her husband, Tariq Butt, opened Twinkle Stars Day Care Center in Buffalo. Between January 2016 and September 2016, Mohamed submitted hundreds of fraudulent claims to Erie County seeking reimbursement for daycare services purportedly provided by Twinkle Stars to children eligible for Child Care and Development Block Grant funds from the U.S. Department of Health and Human Services. The defendant knew that the children listed on the claims did not actually attend Twinkle Stars on the dates and times claimed, making the daycare ineligible for reimbursement. In total, between January 2016 and September 2016, Erie County paid Twinkle Stars approximately $130,188 for daycare services, which were never rendered.
The plea is the result of an investigation by the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent-in-Charge Scott Lampert, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for November 1, 2017, at 10:00 a.m. before Judge Vilardo.
Danville Sex Offender to Serve 17 1/2 Years in Federal Prison for Receiving, Possessing Child PornographyRead the Press Release
URBANA, Ill. – A Danville, Ill., man, who was registered as a sexual predator in Vermilion County, was sentenced on July 7, 2017. U.S. District Judge Colin S. Bruce ordered John F. Gherna, 52, of the 2400 block of Cedar St., to serve 17 ½ years (210 months) in federal prison for receiving and possessing child pornography. Upon completion of his prison sentence, Gherna was ordered to remain on supervised release for 15 years.
On Mar. 6, 2017, Gherna entered pleas of guilty to receiving child pornography from 2014 to 2016, and to possession of child pornography on June 13, 2016. Gherna has remained in the custody of the U.S. Marshals Service since he was arrested and charged by criminal complaint on June 15, 2016.
According to court documents, when Gherna was arrested on federal charges, he was registered as a sex offender as a result of a prior conviction for aggravated criminal sexual abuse of a minor.
Assistant U.S. Attorney Elly M. Peirson prosecuted the case. The Champaign Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case.
The 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 the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Conroe Man Sentenced for Trafficking Cocaine and Conspiring to Launder Drug MoneyRead the Press Release
HOUSTON – A 45-year-old local man has been ordered to federal prison following his convictions of conspiracy to possess with intent to distribute cocaine, possession with intent to distribute cocaine and conspiracy to launder money, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Oscar Benitez, of Conroe, Nov. 3, 2016, following one day of deliberations and three days of trial.
Today, U.S. District Judge Vanessa Gilmore handed Benitez a 188-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Gilmore noted that while Benitez was convicted for his involvement in two specific loads of cocaine totaling 101 kilograms, he was also involved in a wide-ranging conspiracy that trafficked large amounts of drugs and used a business he owned to launder large amounts of money from drug sales.
During trial, the jury heard that the investigation began in early 2011. At that time, agents with the Drug Enforcement Administration (DEA) in Philadelphia, Pennsylvania, seized approximately four kilograms of cocaine from a vehicle that had been driven there from the Houston area. The investigation revealed the vehicle had recently been sold by Bensol Auto Sales in Arcola, Texas - a used car dealership that Benitez owned.
Houston agents then realized one of their confidential sources had already been speaking to Benitez about trying to buy large amounts of cocaine from him and his drug supplier. Benitez subsequently had told the individual that he moved large amounts of cocaine (25-100 kilograms at a time) and that he had a very well-connected drug supplier who could make such large deals happen.
The jury also heard that on June 16, 2011, a North Carolina Highway Patrol trooper pulled over a Ford F-150 pickup truck in Monroe, North Carolina, for a traffic violation. Reuben Orozco-Garcia was driving with Juan Gonzalez-Bejar as a passenger. The truck contained 81 kilograms of cocaine. Testimony at trial revealed Orozco-Garcia had made a deposit of $9,000 into a bank account belonging to Bensol Auto Sales and Benitez the day of the cocaine seizure. The jury also heard that Benitez was using this Bensol Auto Sales account to launder the drug trafficking proceeds and that he supplied vehicles from Bensol to his drug supplier to transport drugs to other parts of the United States.
Orozco-Garcia and Gonzalez-Bejar pleaded guilty in North Carolina and were previously sentenced to federal prison.
The evidence at trial also showed that in the fall of 2013, Guadalupe Herrera-Monarrez delivered approximately 20 kilograms of cocaine to Benitez on a ranch he owns in Conroe. This delivery happened in the early morning hours and was directed by Benitez’ drug supplier, who was then located in Mexico. Herrera-Monarrez was convicted for his role in this offense in a separate federal case.
The jury ultimately convicted Benitez on all accounts as charged.
Previously released on bond, Benitez was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Also charged is Rodolfo Penaloza, 41, of Mexico, but not as yet in custody. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the Drug Enforcement Administration (DEA) at 713-693-3000.
The DEA, Internal Revenue Service – Criminal Investigation and the North Carolina Department of Public Safety conducted this Organized Crime Drug Enforcement Task Force investigation. Assistant U.S. Attorneys Arthur R. Jones and Richard J. Magness are prosecuting the case.
Clairton Man Pleads Guilty to Robbing Two Southwestern Pennsylvania BanksRead the Press Release
PITTSBURGH -A former resident of Clairton, Pennsylvania, pleaded guilty in federal court, on July 7, 2017, to charges of bank robbery, Acting United States Attorney Soo C. Song announced today.
Raymond Zwibel pleaded guilty to two counts before United States District Judge S. David Cercone.
In connection with the guilty plea, the court was advised that on August 19, 2013, the First Commonwealth Bank in New Alexandria, Pa. was robbed by a white male with a note and no observable firearm. On August 23, 2013, the Citizens Bank in Latrobe, Pa. was robbed by a white male with a note and no observable firearm. On January 30, 2014, the First Commonwealth Bank in West Mifflin, Pa. was robbed by a white male with a note and no observable firearm. Zwibel was identified by police from bank surveillance footage as the robber on January 30, 2014. After waiving Miranda, Zwibel confessed to committing the robberies on August 19, 2013 and January 30, 2014 and to using his girlfriend’s vehicles. Zwibel previously pleaded guilty to the January 30, 2014 bank robbery in the Allegheny County Court of Common Pleas.
Judge Cercone scheduled sentencing for November 6, 2017, at 11 a.m. The law provides for a total sentence of 40 years in prison, a fine of up to $500,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the court returned Zwibel to the custody of the United States Marshal Service.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation (FBI) conducted the investigation that led to the prosecution of Zwibel, with valuable assistance from many state and local police departments including the Pennsylvania State Police, the Latrobe Police Department and the West Mifflin Police Department.
Christiansburg Pair Sentenced on Methamphetamine ChargesRead the Press Release
Roanoke, VIRGINIA – A pair of Christiansburg residents were sentenced today in the United States District Court for the Western District of Virginia in Roanoke on Federal drug conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Timothy Wayne Radford, 49 and Melissa Dawn Lytton, 45, each previously pled guilty to conspiracy charges. Radford pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute 50 grams or more of methamphetamine. Lytton pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute methamphetamine. Today in District Court, Radford was sentenced to 135 months in federal prison. In a separate hearing today, Lytton was sentenced to 127 months in federal prison.
According to evidence presented at previous hearings by Assistant United States Attorney Ashley B. Neese, Radford and Lytton admitted to being involved in a conspiracy to distribute methamphetamine since at least late 2015 and continuing through March 2016, which was accountable for distributing between 1.5 and 5 kilograms of methamphetamine.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police and the Floyd County Sheriff’s Office. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Charleston man pleads guilty to Social Security fraudRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to Social Security fraud, announced United States Attorney Carol Casto. Thomas Bennett, 58, entered his guilty plea to theft of public money.
Bennett admitted that he participated in a scheme in which his family members, in 1986, fraudulently applied for Social Security benefits. The fraudulent application was in the name of a family member who died in 1967 and members of Bennett’s family were not entitled to receive any benefits. Bennett subsequently learned about the fraud and in 2000, he joined his family in participating in the scheme. When the other family members died in 2012 and 2013, Bennett took over the Social Security scheme and continued to cash Social Security benefits checks that he knew he was not entitled to receive. Bennett assisted his other family members in cashing Social Security benefits checks dating back to the year 2000 totaling $36,927. As part of his plea agreement, Bennett has agreed to pay $36,927 in restitution.
Bennett faces up to 10 years in federal prison and a $250,000 fine when he is sentenced on October 11, 2017.
The investigation was conducted by the Social Security Administration’s Office of the Inspector General and the Social Security Administration. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge Thomas E. Johnston is presiding over the case.
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Burlington County, New Jersey, Man Sentenced to 54 Months in Prison for Wire Fraud, Money LaunderingRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man has been sentenced to 54 months in prison for his role in a mortgage fraud scheme that caused $2.7 million in losses, Acting U.S. Attorney William E. Fitzpatrick announced today.
Pierre Chainey, 42, of Tabernacle, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to one count of conspiracy to commit wire fraud and one count of money laundering. Judge Hillman imposed the sentence on July 7, 2017, in Camden federal court.
According to documents filed in this case and statements made in court:
In November 2005, Chainey established Universal Lending Solutions LLC, a mortgage brokerage company in Northfield, New Jersey, and served as chief executive office of the company until 2008. He was also a loan officer for the company.
From November 2005 through at least January 2008, he conspired with others to profit from the sale and purchase of properties in New Jersey by obtaining mortgage loans for unqualified borrowers using fraudulent loan applications, HUD-1 Settlement Statements and other documents.
In addition to the prison term, Judge Hillman sentenced Chainey to three years of supervised release; restitution will be determined at a later date.
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 IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Newark.
Brooklyn Pharmacy Owner/Operator Charged with Defrauding Medicare and Medicaid Programs of Approximately $9 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the New York Office of the Federal Bureau of Investigation (“FBI”), Scott J. Lampert, Special Agent in Charge of the New York Regional Office for the Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), and Dennis Rosen, Inspector General of the New York State Office of the Medicaid Inspector General (“OMIG”), announced today the unsealing of a criminal Complaint charging defendant SUNITA KUMAR with operating a health care fraud scheme utilizing two pharmacies in Brooklyn, New York, through which KUMAR submitted approximately $9 million in fraudulent claims to Medicaid and Medicare. KUMAR was arrested this morning and was presented in Manhattan federal court today before U.S. Magistrate Judge Andrew J. Peck.
Manhattan Acting U.S. Attorney Joon H. Kim said: “As alleged, Sunita Kumar defrauded Medicare and Medicaid, public programs to assist the indigent and the elderly, by submitting $9 million in fraudulent claims. She allegedly did so by inducing people to surrender their own prescriptions and forego their medications in exchange for kickbacks. Medicare and Medicaid provide critical health care for some of our most vulnerable citizens. Together with our law enforcement partners, we will aggressively pursue those who allegedly use public programs as a vehicle for illegal personal profit.”
FBI Assistant Director William F. Sweeney Jr. said: “Exploiting our federal and state health care programs places the economy at a significant disadvantage and threatens the stability of the health care industry overall. Because there’s no single, clearly identifiable victim, the public often finds these schemes incomparable to other, more explicit frauds. But everyone deserves to know that health care fraud alone costs this country tens of billions of dollars a year, not to mention the obvious health safety risks it presents. We will continue to confront this type of crime, and root it out, until it no longer exists.”
HHS-OIG Special Agent-in-Charge Scott J. Lampert said: “Prescription drug scams, such as the one alleged in this case, work to undermine our nation’s health care system. Today’s arrest coordinated with our law enforcement partners serve as a stern warning to pharmacy owners tempted to plunder government health programs meant to care for our most vulnerable citizens.”
Medicaid Inspector General Dennis Rosen said: “Exploiting the Medicaid program for personal gain by preying upon New York’s most-vulnerable populations is reprehensible. We will continue to work closely with our federal, state and local partners to hold wrongdoers fully accountable and protect the integrity of the Medicaid program.”
According to the allegations contained in the Complaint[1]:
KUMAR – while owning one pharmacy herself and operating a second pharmacy, both located in Brooklyn, New York – conducted a multimillion-dollar scheme to defraud Medicare and Medicaid programs by fraudulently seeking reimbursements for prescription drugs. Specifically, KUMAR engaged in a scheme to obtain prescriptions for medications, for which her pharmacies billed and received reimbursement from Medicare and Medicaid, but which she did not actually dispense to customers. From in or about January 2015 through in or about December 2016, KUMAR obtained approximately $9 million in reimbursements from Medicare and Medicaid for prescription drugs that her pharmacies never actually dispensed. KUMAR defrauded Medicare and Medicaid into providing her pharmacies with these reimbursements by obtaining prescriptions from other individuals, who were willing to forego delivery of the medications in exchange for a share of the reimbursed proceeds, in the form of kickbacks paid by KUMAR.
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KUMAR, 54, of Old Westbury, New York, is charged with one count of health care fraud, which carries a maximum sentence of 10 years in prison, and one count of paying illegal remuneration in the form of kickbacks, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the investigative work of the FBI, HHS-OIG, and OMIG.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Christopher J. DiMase and Sarah E. Paul are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Border Patrol Officer and His Wife Convicted in Federal Court for Conspiracy to Illegally Smuggle Ritalin into the United States from MexicoRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that United States District Court Judge William H. Steele sentenced border patrol officer Frank Peter Salamone and his wife Heather Turner Salamone on July 6, 2017. They were both to serve a term of imprisonment of time served followed by 3 years of supervised release for the conspiracy to illegally import Methylphenidate (Ritalin) into the United States in violation of 21 U.S.C. § 963.
In October 2015, Homeland Security Investigations and the United States Postal Inspection Service began an investigation into an organization that was smuggling Methylphenidate (Ritalin) pills into the United States from Mexico. During the investigation, it was revealed that both defendants, made several wire transactions totaling approximately $12,000.00 to a third co-defendant, Marangely Conde for the purposes of purchasing the Methylphenidate Hydrochloride (Ritalin) from Mexico. After receiving the payments, Conde crossed the border into Mexico to procure the Ritalin and illegally smuggle the narcotics back into the United States and then ship the narcotics via U.S. mail to the defendants who resided in Mississippi. Consequently, federal authorities were able to intercept and track the illegal shipments of Ritalin and discovered that the address in Mississippi belonged to Frank Peter Salamone, was an employee of a United States Border Patrol. The defendants previously entered their guilty pleas before the Court on March 27, 2017. The third co-defendant, Marangely Conde, entered a guilty plea on March 24, 2017, and is scheduled to be sentenced on July 27, 2017.
The case was investigated by the United States Department of Homeland Security, Homeland Security Investigations, and the United States Postal Inspection Service. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, Assistant United States Attorney George F. May and Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.
Baltimore CFO Charged with Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Jay Edward Wilkins, age 47, of Stoney Beach, Maryland, was charged with wire fraud in a scheme to defraud his employer of more than $200,000. The criminal complaint was issued on July 6, 2017, and unsealed today upon the arrest of the Wilkins.
The charges were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the criminal complaint, Wilkins, had been improperly diverting corporate funds for his own personal use for multiple years. In or about 2012, Wilkins filed for Chapter 13 bankruptcy, citing primarily consumer debts. According to the bankruptcy petition, Wilkins had several pending loans relating to real estate and a boat, as well as more than $30,000 in credit card debt.
Wilkins allegedly diverted more than $200,000 in corporate funds using the identities of three former employees. In one instance, one of the employee whose identity was used had not been an employee for over five years.
Wilkins faces a maximum sentence of 20 years in prison for the wire fraud. His initial appearance is today at 3:15 p.m.
A criminal charge is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney’s Harry Gruber and Paul Riley, who are prosecuting the case.
Arkansas Man Sentenced for Wire Fraud and Aggravated Identity TheftRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kevin L. Reese, age 28, a resident of Little Rock, Arkansas, was sentenced on July 7, 2017, by Senior United States District Court Judge James M. Munley to serve 70 months’ imprisonment for mail fraud and aggravated identity theft.
According to United States Attorney Bruce D. Brandler, a federal jury convicted Reese in February 2017, on six counts of mail fraud and six counts of aggravated identity theft. Between November 2014 and August 2015, Reese defrauded Sheehan Pipe Line and Construction Company of approximately $300,000 while employed by Sheehan as a manager of a field office located in Dunmore, Pennsylvania. Reese engaged in a scheme to create and generate fraudulent payroll checks for Sheehan employees for time periods that began either before the employee started employment with Sheehan, or after the employee left employment with Sheehan. Reese fraudulently created the payroll checks by unlawfully using the names of Sheehan employees and then forged their names to the checks.
In addition to the prison term, Senior Judge Munley also ordered that a probation officer supervise Reese for three years following his release from prison, and that Reese pay restitution in the amount of $225,714.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Michelle Olshefski prosecuted the case.
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Amarillo Heroin Trafficker Sentenced to 121 Months in Federal Prison for Possessing More Than 17,000 Grams of HeroinRead the Press Release
AMARILLO, Texas — Jose Emmanuel Morales Rittingger, 29, was sentenced this morning before U.S. District Judge Sidney A. Fitzwater to 121 months in federal prison for possessing with the intent to distribute more than 17,000 grams of heroin, announced U.S. Attorney John Parker of the Northern District of Texas.
Rittingger pleaded guilty in March 2017 to one count of possession with intent to distribute one kilogram or more of heroin and has been in custody since the time of his arrest in August 2016. Rittingger is a Mexican citizen and was in the United States illegally at the time of the offense. He will be deported after serving his sentence.
Co-defendant Joel Lara Merida, 31, was sentenced earlier this year by U.S. District Judge Fitzwater to 51 months in federal prison. Merida pleaded guilty to one count of possession with intent to distribute one kilogram or more of heroin and aiding and abetting in November 2016.
“It is imperative that we reduce the supply of heroin,” said U.S. Attorney Parker. “Drug overdose deaths involving heroin continue to climb sharply, more than tripling in the last four years.”
According to documents filed in the case, on August 15, 2016, a Texas Department of Public Safety (DPS) Trooper stopped a 1995 BMW for driving in the left lane when not passing and obstructed view through the windshield. Upon making contact with the driver of the vehicle, who was later identified as Merida, and the passenger, who was later identified as Rittingger, the Trooper noticed indicators of possible criminal activity. The Trooper asked Merida for consent to search the vehicle and Merida voluntarily consented to the search. Eighteen bundles in an aftermarket compartment under the back seat were located. There were nine bundles wrapped in black tape, four bundles were wrapped in cellophane, and five bundles were wrapped in silver tape. The heroin had a gross weight of 44.26 pounds and field tested positive for the presence of heroin.
Subsequent testing confirmed that the substance seized was, in fact, heroin, a Schedule I controlled substance, with a net weight of approximately 17,388 grams.
The case was investigated by the Texas Department of Public Safety and the Drug Enforcement Administration. Assistant U.S. Attorneys Joshua Frausto and Sean Taylor prosecuted.
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Albany Man Sentenced for Oxycodone ConspiracyRead the Press Release
ALBANY, NEW YORK – Nicholas M. Signore, age 27, of Albany, New York, was sentenced today to 1 year and 1 day of imprisonment, to be followed by 3 years of supervised release, for conspiring to distribute oxycodone in Albany County.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
United States District Judge Mae A. D’Agostino also ordered that Signore forfeit $19,872 in drug proceeds.
As part of his December 23, 2016 guilty plea, Signore admitted that he obtained oxycodone tablets from a co-conspirator for resale in Albany County.
This case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Accomplice Sentenced in Deaths of Two Immigrants Smuggled in Trunk at San Diego-Tijuana BorderRead the Press Release
Special Assistant U.S. Attorney Beena M. McDonald (619) 546-9774
Assistant U.S. Attorneys Patrick J. Bumatay (619) 546-8450 and Michael Wheat (619) 546-8437
NEWS RELEASE SUMMARY – July 10, 2017
SAN DIEGO – Pedro Velasco-Manzano was sentenced in federal court today to 12 months in custody for actions that ultimately resulted in the deaths of two unauthorized immigrants who perished in the trunk of a car at the San Ysidro Port of Entry in August 2014.
As part of the plea agreement, Velasco-Manzano, a citizen of Mexico, admitted he helped arrange the smuggling of Mexican citizens Tarcisio Casas-Blanco and Jose Aurelio Quiroz-Casas into the United States in August 2014 for a fee of $11,500 – an amount that included his $200 take. After speaking directly with the victims, Velasco-Manzano arranged for them to be housed in Tijuana until plans for a smuggling event could be made by his superiors. Velasco-Manzano then transported the victims from their stash house and delivered them directly to the smugglers, Nicholas George Zakov and Eduard Ervemac Saavedra.
Saavedra enticed Zakov to smuggle the victims into the United States with the prospect of $3,500 cash. On the morning of August 12, 2014, Saavedra arranged for the two victims to be hidden in the trunk of Zakov’s Dodge Challenger in Tijuana, Mexico. Saavedra then directed Zakov to enter the United States through the San Ysidro Port of Entry with Casas-Blanco and Quiroz-Casas remaining in the trunk, exposing them to rising temperatures and little ventilation. U.S. Customs and Border Protection officers later discovered Casas-Blanco and Quiroz-Casas unresponsive inside the Challenger’s trunk. Medical attention was immediately sought for the two, but they died a short while later of hyperthermia and mechanical asphyxiation.
Zakov, a U.S. citizen, pleaded guilty in 2015 to alien smuggling charges for his role in the deaths of the victims and was sentenced to 84 months in prison. Saavedra, a Peruvian citizen, pleaded guilty in 2016 to alien smuggling charges for his role in the deaths of the victims and was sentenced to 63 months in prison. U.S. District Judge Anthony J. Battaglia sentenced Zakov, Saavedra, and now Velasco-Manzano.
The investigation and arrest of Velasco-Manzano was the result of the collaboration of Homeland Security Investigations, U.S. Customs and Border Protection, San Diego Police Department, and the Baja California State Preventive Police Department.
DEFENDANT Criminal Case No. 17CR0561-AJB
Pedro Velasco-Manzano Age: 44 Oaxaca, Mexico
SUMMARY OF CHARGES
Counts 1 and 2: Encouraging and Inducing Illegal Aliens, Aiding and Abetting, 8 U.S.C. §1324(a)(1)(A)(iv), and (v)(II)
INVESTIGATING AGENCIES
U.S. Customs and Border Protection
Homeland Security Investigations
San Diego Police Department
Baja California State Preventive Police Department
Friday 7 July 2017
Williamsport Man Sentenced to 12 Years’ Imprisonment for Distribution of Heroin and CocaineRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Antoine Paris Davis, age 39, a resident of Williamsport, Pennsylvania, was sentenced to 12 years’ imprisonment by United States District Court Judge Matthew W. Brann for the distribution of 100 grams or more of heroin.
Davis was convicted by a federal jury on September 30, 2016, of conspiracy to distribute heroin and cocaine and possession with intent to distribute heroin and cocaine. The jury also found Davis was responsible for the distribution of 100 grams or more of heroin. One hundred grams of heroin is the equivalent of approximately 4,000 individual doses of potentially fatal heroin.
According to United States Attorney Bruce D. Brandler, from June 2014 through January 2015, Davis conspired with co-defendant, Rasheem Jarbar Ruley, age 24, a resident of Williamsport, to distribute heroin and cocaine to drug users and sellers in Williamsport and distributed and possessed those substances with the intent to distribute on four separate occasions. Ruley and Davis stored heroin and cocaine at their residence on Tinsman Avenue in Williamsport, including a large bag containing over 100 grams of heroin (136 small bags of heroin packaged for sale), 16 bags of cocaine, and digital scales. Pennsylvania State Police investigators also found approximately $1,300 in cash drug proceeds, digital scales used to weigh drugs, plastic bags, wax packets, and rubber bands used to package heroin and cocaine for distribution.
Ruley was sentenced to 60 months’ imprisonment by Judge Brann for conspiracy to distribute heroin and cocaine and possession with intent to distribute heroin and cocaine.
The case was investigated by the Pennsylvania State Police, the Williamsport Bureau of Police, the Lycoming County District Attorney’s Office, the Lycoming County Narcotics Enforcement Unit, and the Federal Bureau of Investigation Safe Streets Task Force. Assistant U.S. Attorney George Rocktashel prosecuted the case.
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.
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Warren man indicted for stealing government fundsRead the Press Release
A federal grand jury indicted Dean Nikolaides, 63, of Warren, for theft of government funds, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Nikolaides fraudulently received approximately $82,000 in benefits over 14 years from the Pension Benefit Guaranty Corporation to which he knew he was not entitled. The PBGC is a federal agency that protects the retirement incomes of American workers in private-sector defined benefit pension plans, according to the indictment.
The PBGC Office of the Inspector General conducted the investigation. The Social Security Administration Office of the Inspector General and the United States Postal Inspection Service aided in the investigation. Special Assistant U.S. Attorney Lisa J. Sanniti is prosecuting the case.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Waldo Man Pleads Guilty to Firearm ChargeRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Jesse Newton, 29, of Waldo, Maine, pleaded guilty today in U.S. District Court to being a felon in possession of a firearm. Newton also admitted in Court to violating terms of his supervised release.
Court records reveal that on July 13, 2016, Jesse Newton was serving a term of federal supervised release for a 2013 felony firearms conviction. U.S. Probation Officers and investigators employed by the Office of the Maine State Fire Marshal conducted searches of Newton’s residence. They discovered a loaded 9mm semiautomatic pistol, 9mm casings, rifle stocks, 46 marijuana plants and a cell phone. An examination of the contents of the cell phone along with DNA evidence and witness testimony established that Newton had possessed the firearm and had used it for target shooting.
Newton faces up to ten years in prison and a $250,000 fine for his unlawful firearm possession as well as an additional two years of imprisonment for violating the terms of his supervised release. He will be sentenced after the completion of presentence investigation and revocation reports by the United States Probation Office.
The investigation was conducted by the U.S. Probation Office, the Office of the Maine State Fire Marshal, the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Waldo County Sheriff’s Office.
Wal-Mart Pays $1.65M to Settle False Claims Act Allegations of Improper Medi Cal BillingsRead the Press Release
SACRAMENTO, Calif. — Wal-Mart Stores Inc. has paid $1.65 million to resolve allegations that it violated the federal False Claims Act when it knowingly submitted claims for reimbursement to California’s Medi‑Cal program that were not supported by applicable diagnosis and documentation requirements, U.S. Attorney Phillip A. Talbert announced today.
“These Medi-Cal regulations are essential to protect both patients and limited heath care funding,” said U.S. Attorney Talbert. “My office will continue to hold pharmacies accountable when they fail to comply with regulations like these.”
Walmart, headquartered in Bentonville, Arkansas, operates over 290 retail stores in California; approximately 283 of these locations have pharmacies. The Medi-Cal program is administered by the California Department of Health Care Services (DHCS) and relies on both federal and state funding to provide health care to millions of Californians, including those with low incomes and disabilities.
Medi-Cal utilizes a formulary list, commonly known as “Code 1” drugs, which designates certain restrictions for each listed drug, including restrictions pertaining to diagnoses. Medi-Cal will reimburse certain Code 1 drugs only for approved diagnoses, taking into account criteria such as the drug’s safety, efficacy, misuse potential, and cost. Pharmacies serve the critical gatekeeping function of confirming and certifying that these Code 1 drugs are dispensed for the approved diagnoses. Walmart may bill for drugs prescribed outside of the approved diagnoses only if it submits a request to DHCS that includes a justification for the non‑approved use. Today’s settlement resolves allegations that Walmart failed to confirm and document the requisite diagnoses, and in some instances dispensed drugs for non-approved diagnoses, then knowingly billed Medi-Cal for these prescriptions.
The allegations resolved by this settlement were first raised in a lawsuit filed against Walmart under the qui tam, or whistleblower, provisions of the False Claims Act by a pharmacist who has worked at Walmart locations in the greater Sacramento area. The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $264,000 of the recovery proceeds.
This settlement is the result of a joint effort by the United States Attorney’s Office for the Eastern District of California and California’s Bureau of Medicaid Fraud and Elder Abuse. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States, with assistance from the Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Wakarusa Man Sentenced to 57 Months ImprisonmentRead the Press Release
SOUTH BEND - Acting United States Attorney Clifford D. Johnson announced that Willard Quinn, 42, of Wakarusa, Indiana was sentenced before District Court Judge Jon E. DeGuilio for being a felon in possession of a firearm.
Quinn was sentenced to 57 months of imprisonment and 2 years of supervised release.
According to documents in this case, on July 28, 2016, Quinn was pulled over in a vehicle stop. There was a loaded firearm under the front passenger seat and drug paraphernalia inside the vehicle. Quinn has multiple felony convictions.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Indiana State Police and handled by Assistant U.S. Attorney Molly E. Donnelly.
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Vincent John Quitugua Sentenced to Prison in Ice Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant VINCENT JOHN QUITUGUA, age 47, from Piti, was sentenced on July 6, 2017, in District Court to a 57-month concurrent term of imprisonment for possession of a controlled substance (methamphetamine) with intent to distribute, and maintaining a drug-involved premises. The Court also ordered QUITUGUA to pay a mandatory $200 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On July 6, 2106, QUITUGUA entered a guilty plea to both crimes. The investigation revealed that QUITUGUA, a public school teacher, was selling methamphetamine and conducting an extensive marijuana grow operation from his Piti, Guam residences. QUITUGUA was discovered with over ten grams of methamphetamine with a purity level of 99%, approximately 121 living marijuana plants, 429 grams of processed marijuana, four firearms, $72,922.50 in U.S. currency as well as four scales, glass pipes and paraphernalia.
The District Court noted that QUITUGUA is a public school teacher with over 20 years of experience in Guam’s middle school. Court expressed concern that QUITUGUA had four firearms in close proximity to the drugs, and noted that the sales of methamphetamine and the marijuana grow occurred in close proximity to a middle school. Court ordered that the currency, firearms and ammunition be forfeited to the U.S. government.
The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. The case was prosecuted by Rosetta San Nicolas, an Assistant United States Attorney for the District of Guam.
Two More Defendants Plead Guilty in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
An Arizona man and an Illinois woman each pleaded guilty to conspiracy charges today for their respective roles in liquidating and laundering victim payments generated through a massive telephone impersonation fraud and money laundering scheme perpetrated by India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
Bhavesh Patel, 47, most recently residing in Gilbert, Arizona, pleaded guilty to money laundering conspiracy, in violation of Title 18, U.S. Code, Section 1956(h). Asmitaben Patel, 34, most recently residing in Willowbrook, Illinois, pleaded guilty to a conspiracy to commit fraud and money laundering offenses, in violation of Title 18, U.S. Code, Section 371. The pleas were entered before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing dates are pending.
According to admissions made in connection with their respective pleas, Bhavesh Patel, Asmitaben Patel, and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims located throughout the U.S. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to Bhavesh Patel’s guilty plea, beginning in or around January 2014, Bhavesh Patel managed the activities of a crew of runners, directing them to liquidate victim scam funds in areas in and around south and central Arizona per the instructions of conspirators from India-based call centers. Patel communicated via telephone about the liquidation of scam funds with both domestic and India-based co-defendants, and he and his crew used reloadable cards containing funds derived from victims by scam callers to purchase money orders and deposit them into various bank accounts as directed, in return for percentage-based commissions from his India-based co-defendants. Patel also admitted to receiving and using fake identification documents, including phony driver’s licenses, to retrieve victim scam payments in the form of wire transfers, and providing those fake documents to persons he managed for the same purpose.
Based on admissions in Asmitaben Patel’s guilty plea, beginning in or around July 2013, Asmitaben Patel served as a runner liquidating victim scam funds as part of a group of conspirators operating in and around the Chicago area. At the direction of a co-defendant, Patel used stored value cards that had been loaded with victim funds to buy money orders and deposit them into various bank accounts, including the account of a lead generating business in order to pay the company for leads it provided to co-conspirators that were ultimately used to facilitate the scam.
To date, Bhavesh Patel, Asmitaben Patel, 54 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Including today’s pleas, a total of eleven defendants have pleaded guilty thus far in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari, Harsh Patel, Nilam Parikh, Hardik Patel, Rajubhai Patel, Viraj Patel, Dilipkumar A. Patel, and Fahad Ali previously pleaded guilty on various dates between April and June 2017.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in the Middle District of Alabama, Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Two Eagle Butte Men Charged with Firearm ViolationsRead the Press Release
United States Attorney Randolph J. Seiler announced that two Eagle Butte, South Dakota, men have been indicted by a federal grand jury for Unlawful Possession of Firearms and Ammunition.
Colten Walker Dolphus, age 30, and Elliot Tiger, age 27, were indicted on June 14, 2017. Dolphus appeared before U.S. Magistrate Judge Mark A. Moreno on June 15, 2017, and Tiger appeared on June 22, 2017. Both men pled not guilty to the Indictment.
The maximum penalty upon conviction for each individual is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, forfeiture of the firearms and ammunition, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 9, 2016, Dolphus and Tiger unlawfully received and possessed firearms, which had been shipped and transported in interstate and foreign commerce, because Dolphus had previously been convicted of a misdemeanor crime of domestic violence and, both Dolphus and Tiger were users of, and addicted to, a controlled substance.
The charges are merely accusations and Dolphus and Tiger are presumed innocent until and unless proven guilty.
This case is being investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Dolphus and Tiger were released on bond pending trial. Trial is scheduled for August 22, 2017.
Three Individuals Sentenced for Heroin Distribution, Assault on Red Lake Indian ReservationRead the Press Release
Acting United States Attorney Gregory G. Brooker announced the sentencing of GREGORY VERNELL BENTLEY, 32, CRAIG VERNARD BENTLEY, 29, and VANESSA LYNNE BROWN, 24, for their roles in a violent heroin distribution ring. All three defendants entered guilty pleas and were sentenced before Senior Judge Michael J. Davis in U.S. District Court.
According to their guilty pleas and documents filed in court, between August 26, 2015 and August 14, 2016, BROWN and CRAIG BENTLEY conspired with others to possess and distribute heroin on the Red Lake Indian Reservation. On August 14, 2016, CRAIG BENTLEY met with BROWN at the Red Lake Casino and dropped off 350 grams of heroin, which BROWN intended to sell. As part of the heroin distribution conspiracy, CRAIG BENTLEY and BROWN made regular trips between the Twin Cities and the Red Lake Indian Reservation to pick up and drop off heroin and cash.
According to his guilty plea and documents filed in court, on August 14, 2016, during an attempt to collect a drug debt in relation to the heroin distribution conspiracy, GREGORY BENTLEY shot an adult male with a 9 mm Smith & Wesson pistol, causing serious bodily harm.
To learn more about the Justice Department’s Tribal Safety program, visit http://www.justice.gov/tribal/.
This case resulted from an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
The case was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
Defendant Information:
GREGORY VERNELL BENTLEY, 32
St. Paul, Minn.
Convicted:
- Assault with a dangerous weapon, 1 count
Sentenced:
- 77 months in prison
- Three years of supervised release
CRAIG VERNARD BENTLEY, 29
St. Paul, Minn.
Convicted:
- Conspiracy to distribute and possess with intent to distribute heroin, 1 count
Sentenced:
- 120 months in prison
- Five years of supervised release
VANESSA LYNNE BROWN, 24
Red Lake, Minn.
Convicted:
- Conspiracy to distribute and possess with intent to distribute heroin, 1 count
Sentenced:
- 40 months in prison
- Four years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Third Circuit Affirms Conviction of Rabbis in Kidnapping CaseRead the Press Release
NEWARK, N.J. – The U.S. Court of Appeals for the Third Circuit today affirmed the convictions of three Orthodox rabbis who were convicted at trial of conspiring to kidnap Orthodox Jewish husbands who refused to grant their wives permission to divorce, Acting U.S. Attorney William E. Fitzpatrick announced.
In a precedential opinion in the consolidated appeals of Orthodox rabbis Binyamin Stimler, Jay Goldstein, and Mendel Epstein, the appeals court affirmed the convictions in all respects.
The goal of the conspiracy was to coerce the recalcitrant husbands to grant a “get” – permission to obtain a religious divorce – to their wives. On appeal, the defendants raised numerous claims, including a constitutional challenge to a federal statute and a claim that the prosecution violated the Religious Freedom Restoration Act.
The government was represented by Assistant U.S. Attorneys Norman Gross and Glenn J. Moramarco of the U.S. Attorney’s Office Appeals Division in Camden.
Stimler, Goldstein & Epstein Verdict Release
Stimler & Epstein Sentencing Release
Goldstein Sentencing Release
Tazewell Woman Pleads Guilty to Federal Firearms ChargesRead the Press Release
Abingdon, VIRGINIA – A Tazewell woman, who illegally purchased firearms for her son and lied about the purchases, pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon to a pair of federal charges, Acting United States Rick A. Mountcastle announced.
Glenna Elswick, 50, pled guilty yesterday to one count of making a false statement in connection with the acquisition of a firearm from a licensed dealer and one count of providing a firearm to a prohibited person.
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Zachary T. Lee, between October 2016 and February 2017, Elswick purchased at least seven firearms for her son, Matthew Elswick, who is prohibited from owning firearms due to his status as a previously convicted felon. In the process of purchasing the firearms, Elswick made false statements on ATF forms stating she was buying the firearms for her own use.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Sutter County Women Sentenced to 2 Years in Prison for Making False Statements to the Grand JuryRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Harjit Kaur Johal, 50, and Jasvir Kaur, 47, each to two years in prison for making false declarations before a grand jury, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial in March 2017, the defendants participated in a series of unemployment and disability fraud schemes in Yuba City. The organizers of the schemes were members of the Khan family and included Mohammad Nawaz Khan, Mohammad Adnan Khan, Mohammad Shahbaz Khan, and Mohammad Riaz Khan. The organizers set up a series of farm labor contracting businesses that purported to provide labor to harvest crops in Sutter and Yuba Counties. The organizers then sold fraudulent paystubs to other people, including the defendants, and reported false wages to the Employment Development Department. The purchasers of the paystubs would subsequently file for unemployment or disability benefits with the EDD based upon the fictitious wages. Because the amount of the benefits that the EDD pays is based upon the claimant’s prior earnings, the participants would pay the Khans to report high wages to the EDD.
In 2014, the defendants were subpoenaed to testify before a federal grand jury investigating the fraud scheme. During their testimony, when questioned about their wages, the defendants falsely stated under oath that they picked peaches for Ray Khan and that they did not commit fraud. Both defendants claimed they had picked peaches for Ray Khan for at least eight hours a day, six days a week, during the summer months of June through September. Both defendants also claimed that they worked on other tasks in the orchards for hours every day after picking peaches.
Testimony from individuals with knowledge of Ray Khan’s real employees established that he did not employ the defendants. Further, evidence presented at trial showed the defendants had reported chronic back and knee problems in prior disability claims with the EDD and were not capable of doing the physically intensive work required by peach picking. Finally, evidence at trial established that the defendants purchased paystubs from Ray Khan so that he would report falsely inflated wages to the EDD, which the defendants could then use to claim the maximum possible amount of unemployment benefits. Both defendants had participated in previous fraud schemes with other Khan family members and had already claimed benefits in excess of $30,000 each.
This case is part of a series of cases involving the Khan family’s fraud schemes. Over the course of these related conspiracies, the Khans reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits. The fraud schemes defrauded the California Employment Development Department of more than $14 million. To date, 26 individuals have been convicted of various offenses related to the schemes.
This case was the product of an investigation by the U.S. Department of Labor, Office of Inspector General; the Federal Bureau of Investigation; and the Employment Development Department-Criminal Investigations. Assistant U.S. Attorneys Jared C. Dolan and Jeremy J. Kelley prosecuted the case.
St. Joseph Mother, Daughter Plead Guilty in $1.5 Million Tax Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., mother and daughter pleaded guilty in federal court today to their roles in a $1.5 million tax fraud scheme as well as individual tax fraud.
Dawn Langlais (formerly Ankrom-Brown), 59, and her daughter, Jennifer Sturgis, 38, both of St. Joseph, pleaded guilty in separate appearances before U.S. District Judge Beth Phillips to the charges contained in a July 20, 2016, federal indictment.
Langlais pleaded guilty to failing to pay over employee payroll taxes to the IRS. Sturgis pleaded guilty to making false statements on a tax return.
From 2001 through early 2010, Langlais assisted in the operation of Homeward Bound Health Services, Inc., a home health provider located in St. Joseph. In 2010, Homeward Bound’s name was changed to Silver Linings, Inc., and nominee owners were put in place who signed the checks but made no business decisions. Langlais continued to assist in the operation of Silver Linings, which closed in 2013.
Langlais employed her daughter, Sturgis, and other relatives at Homeward Bound and Silver Linings.
Homeward Bound and Silver Linings withheld and collected federal income taxes, Social Security taxes, and Medicare taxes from employees and then kept those withheld taxes instead of paying them over to the IRS. The total criminal tax loss attributed to Homeward Bound and Silver Linings for failure to pay employment taxes due and owing from 2001 to 2012 is $1,459,727.
Homeward Bound and Silver Linings also withheld from employee paychecks and kept child support payments, employee IRA contributions, and medical and dental insurance payments. The theft of these payments had negative collateral consequences for their employees.
By pleading guilty today, Langlais and Sturgis admitted they received income from Homeward Bound and Silver Linings, which they failed to report on their individual federal income tax forms, and as a result, underpaid their federal income taxes.
Langlais willfully failed to make an income tax return or pay personal income taxes from 2010 to 2012, for a total personal tax loss of $56,860. Sturgis was married and filed joint individual income tax returns from 2007 to 2012. Her unreported income from 2010 to 2012 was at least $150,193, resulting in a federal individual income tax loss of at least $26,523. Her unreported income from 2007 to 2009 was at least $420,418, resulting in a federal individual income tax loss of at least $102,437, and a state individual income tax loss of $19,387, for a total personal tax loss of $148,347, including relevant conduct.
Additionally, from 2009 to 2012, Sturgis claimed personal federal income tax refunds, knowing that Homeward Bound and Silver Linings had not paid any income taxes to the IRS.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS – Criminal Investigation.
Springfield Man Sentenced to 20 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Danny Lee Dumas, 43, of Springfield, was sentenced by U.S. District Judge Roseann Ketchmark to 20 years in federal prison without parole. The court also sentenced Dumas to spend the rest of his life on supervised release following incarceration.
Dumas pleaded guilty on Nov. 9, 2016. Dumas admitted that he received and distributed child pornography between Jan. 1 and April 9, 2015.
An investigation began in Suffolk County, New York, when another person told law enforcement officers that he e-mailed images of child pornography to Dumas. Law enforcement officers also received two CyberTips from the National Center for Missing and Exploited Children involving online chats with another person, to whom Dumas sent images of child pornography.
Local law enforcement officers executed a search warrant at Dumas’s residence on April 9, 2015, and seized his computer and other digital storage devices.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Southwest Missouri Cybercrimes Task Force and the Suffolk County, N.Y., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Springfield Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute large quantities of methamphetamine that was shipped from California to Springfield, Mo.
Michael E. Ford, 38, of Springfield, was sentenced by U.S. District Judge Roseann Ketchmark to 11 years in federal prison without parole.
On Feb. 9, 2017, Ford pleaded guilty to participating in the drug-trafficking conspiracy from June 1 through Sept. 11, 2015, and to possessing a firearm in furtherance of a drug-trafficking crime.
Co-defendant Lisa Renae Thompson, 39, of Springfield, also pleaded guilty and has been sentenced to 11 years and three months in federal prison without parole. Co-defendants John R. Waits, 46, of Springfield, and Romulo Frank Delatorre, 36, of Downey, Calif., have also pleaded guilty to their roles in the drug-trafficking conspiracy and await sentencing.
Delatorre shipped methamphetamine from California to Springfield in two- to two-and-a-half-pound increments to Thompson. Thompson picked up the packages at various hotels in the Springfield area then contacted Ford. Ford picked up the methamphetamine from Thompson and distributed it to others.
After a few days, Ford would then meet with Thompson and give her $10,800. Thompson kept $800 and sent $10,000 to Delatorre.
Thompson admitted that she received approximately 24 pounds of methamphetamine, which she gave to Ford. Thompson also kept some of the methamphetamine and sold it directly to others with the assistance of Waits. Waits sold methamphetamine to an undercover agent on several occasions in June and July 2015. He participated in the conspiracy for six weeks and is responsible for the distribution of 12 pounds of methamphetamine.
After Thompson was arrested on Sept. 11, 2015, Ford began receiving methamphetamine shipments from Delatorre. On Sept. 30, 2015, the Springfield Police Department received a phone call from a FedEx employee about a suspicious package. Police officers delivered the 2.2-pound package of methamphetamine to Ford at a Springfield residence, where he was arrested. Ford had a Ruger .22-caliber handgun in his possession.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration and the Springfield, Mo., Police Department.
Runnels Man Sentenced to Life Imprisonment, Plus Ten Years, for Child Sex ChargesRead the Press Release
DES MOINES, IA - On July 7, 2017, Michael Lee Williamsheather Jean Reekr, age 51, of Runnels, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to life imprisonment for conspiring to transport a minor with intent to engage in criminal sexual activity, and a consecutive, ten-year term of imprisonment for commission of a felony offense involving a minor by a registered sex offender, announced United States Attorney Kevin E. VanderSchel.
On February 28, 2017, Williams pleaded guilty to the charges and admitted that, between April 2016 and July 8, 2016, he conspired to transport a minor from Minnesota to Polk County, Iowa, with the intent to engage in unlawful sexual activity, and that, at the time he committed the offense, he was a registered sex offender. The charges were the result of an investigation by law enforcement in Polk County, Iowa, and Carver County, Minnesota.
The Polk County Sheriff’s Office, Carver County Sheriff’s Office, and the United States Marshals Service conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Registered Broker Sentenced to 18 Months in Prison for Securities Fraud in A $131 Million Market Manipulation SchemeRead the Press Release
BROOKLYN, NY – Gerald Cocuzzo, a registered broker, was sentenced earlier today to 18 months in prison after having pleaded guilty to securities fraud for his role in the fraudulent market manipulation of ForceField Energy Inc. (ForceField), a publicly traded company previously listed on the NASDAQ under the ticker symbol “FNRG.”
The sentencing was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
According to court filings and facts presented at the plea hearing, between 2009 and 2015, Cocuzzo and others engaged in a scheme to defraud investors in ForceField, a purported worldwide distributor and provider of LED lighting products and solutions, by artificially controlling the price and volume of traded shares of ForceField through, among other means: (1) using nominees to purchase and sell ForceField stock without disclosing this information to investors and potential investors; (2) orchestrating the trading of ForceField stock to create the misleading appearance of genuine trading volume and interest in the stock; and (3) concealing secret payments to stock promoters and broker dealers who promoted and sold ForceField stock to investors and potential investors while falsely claiming to be independent of the company. The fraudulent scheme caused a loss of approximately $131 million to the investing public.
Between January 2015 and April 2015, Cocuzzo received secret cash kickbacks from a ForceField executive in exchange for purchasing ForceField stock in his clients’ brokerage accounts. Cocuzzo did not disclose these payments to his clients. Cocuzzo and his co-conspirators took pains to conceal their participation in the fraudulent scheme by using prepaid, disposable cellular telephones and encrypted, content-expiring messaging applications to communicate with each other, and by paying kickbacks in cash during in-person meetings.
Today’s proceeding, which took place before United States District Court Judge Brian M. Cogan, is the third sentencing to take place in connection with the fraud in ForceField securities. Five other defendants in this matter who pleaded guilty, and one defendant convicted after trial, are awaiting sentencing.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert are in charge of the prosecution.
The Defendant:
GERALD COCUZZO
Age: 39
Residence: Delray Beach, Florida
E.D.N.Y. Docket No. 16-CR-234 (BMC)
Rapid City Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid CityRapid City, South Dakota, man convicted of Possession of Child Pornography was sentenced on July 5, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Vinton, age 41, was sentenced to 135 months of imprisonment, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Vinton was charged on October 18, 2016, and pleaded guilty on March 17, 2017. The charge relates to Vinton receiving and possessing child pornography from July 21 to July 23, 2016.
This case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Vinton was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Possession of Child Pornography was sentenced on July 5, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Eric Dill, age 42, was sentenced to 6½ years of imprisonment, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Dill was charged on November 3, 2015, and pleaded guilty on March 17, 2017. The conviction stems from Dill receiving and possessing child pornography from March 21 to April 8, 2015.
This case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Dill was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on July 6, 2017, by U.S. District Judge Roberto A. Lange.
Trevor Red Bird, age 28, was sentenced to 14 months in prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Red Bird was indicted by a federal grand jury on March 15, 2017. He pled guilty on April 17, 2017.
Red Bird was convicted of Abusive Sexual Contact With a Minor in U.S. District Court in May 2008. As a result of this conviction, Red Bird is required to register as a sex offender. Between September 15, 2016, and November 8, 2016, Red Bird failed to reside at his registered address and did not properly update his sex offender registration, as required by law.
This case was investigated by the U.S. Marshals Service and the Rapid City Police Department. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Red Bird was immediately turned over to the custody of the U.S. Marshals Service.
Pleasants County residents indicted on methamphetamine chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA - Three St. Marys, West Virginia men were indicted by a federal grand jury on June 28, 2017 on methamphetamine distribution charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Glenn Edgor Pryor, age 60, was indicted on one count of “Conspiracy to Distribute Methamphetamine” and four counts of “Distribution of Methamphetamine.”
Dale Wesley Jenkins, Jr., also known as Buddy, age 56, was indicted on one count of “Conspiracy to Distribute Methamphetamine,” one count of “Distribution of Methamphetamine,” and two counts of “Distribution of Methamphetamine - Aiding and Abetting.”
Roger Dale Doehring, age 54, was indicted on one count of “Conspiracy to Distribute Methamphetamine” and two counts of “Distribution of Methamphetamine - Aiding and Abetting.”
The crimes are alleged to have taken place from July 2016 to December 2016 in Pleasants County, West Virginia.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The West Virginia State Police and the Pleasants County Sheriff’s Office are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Paterson Man Charged with Robbing Two Passaic County BanksRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man appeared in federal court today to face charges that he recently robbed a TD Bank in Paterson, New Jersey, and an Investors Bank in Clifton, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
James M. Chestnut, 62, was arrested yesterday and charged by complaint with two counts of bank robbery. He appeared this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court and was detained.
According to the complaint:
On June 30, 2017, Chestnut allegedly entered a TD Bank in Paterson and handed a teller a note stating “Put 100s and 50s in the envelope. No dye pack.”
On July 5, 2017, Chestnut allegedly entered an Investors Bank in Clifton and approached a teller, this time while brandishing a firearm. He told the teller to “Open your drawer. Give me your money. All the 100s. Don’t call the cops or I’ll shoot you.”
Chestnut has two prior federal bank robbery convictions from 1996 and 2004.
The armed bank robbery count carries a maximum potential penalty of 25 years in prison. The unarmed bank robbery count carries a maximum potential penalty of 20 years in prison. Both counts carry a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, New Jersey, with the investigation. He also thanked the Paterson Police Department, under the direction of Director Jerry Speziale; the Saddle Brook Police Department, under the direction of Chief Robert Kugler; the Clifton Police Department, under the direction of Chief Mark Centurione; and the Passaic Police Department, under the direction of Chief Luis A. Guzman, for their assistance.
In addition, the investigation was aided by the FBI Violent Crime Task Force, which is comprised of law enforcement personnel from the Bergen County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Roxbury Police Department, the Paterson Police Department, and the N.J. State Police.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Owners of Bay Area Sushi Boat Restaurants Appear in Federal Court to Face Tax Fraud ChargesRead the Press Release
OAKLAND – Man Young Kim and Kyong Ja Kim, husband and wife, appeared in federal court today to face charges that they conspired to defraud the United States and committed related tax crimes, announced United States Attorney Brian J. Stretch and Michael T. Batdorf, Special Agent in Charge, Internal Revenue Service. The couple appeared before U.S. Magistrate Judge Kandis A. Westmore and were arraigned on charges related to three Bay Area sushi restaurants owned by the Kims, Sushi Boat Oakridge, Sushi Boat Valley Fair, and Sushi Boat Westgate.
A federal grand jury indicted the Kims on June 29, 2017. According to the indictment, Man Kim, 63, and Kyong Kim, 57, both of Dublin, Calif., each own 50 percent of the three sushi boat restaurants at issue and are alleged to have conspired to defraud the United States by failing to report income from the restaurants. The indictment describes an alleged scheme by which both defendants denied the existence of records related to daily income; then, after investigators sought computer records, Kyong Ja Kim allegedly hired a computer consultant to delete relevant data from the restaurants’ computer system. Both defendants are charged with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371. In addition, Kyong Ja Kim is charged with preparing and filing false employment tax returns, in violation of 26 U.S.C. § 7206(2), and preparing and filing a false federal income tax return, in violation of 26 U.S.C. § 7206(1). In addition to the conspiracy charge, Man Young Kim is charged with three counts of filing false tax returns, in violation of 26 U.S.C. § 7206(l), and nine counts of willfully failing to collect, account for, and pay over to the IRS the federal income taxes, in violation of 26 U.S.C. § 7202.
Following today’s appearance, the defendants were released on bond. Defendants’ next court appearance is scheduled for August 31, 2017, at 2:00 p.m., before the Honorable Yvonne Gonzalez Rogers, U.S. District Court Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the conspiracy charge, the defendants face a maximum sentence of five years in prison, a fine of $250,000, and restitution, if appropriate. In addition, Man Kim faces a maximum of three years of prison time, and a fine of $250,000, plus restitution for each violation of 26 U.S.C. § 7206(1) (filing false returns) and a maximum of 5 years of prison time, and a fine of $250,000, plus restitution for each violation of 26 U.S.C. § 7206(2) (willful failure to collect and pay over taxes). Kyong Kim faces a maximum of three years of prison time, and a fine of $250,000, plus restitution for each violation of 26 U.S.C. § 7206(2) (aiding and assisting in preparing false returns). However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service.
Owner and CFO of Debt Collection Company Sentenced to 7 ½ Years in Prison for Orchestrating $31 Million Debt Collection SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MAURICE SESSUM, the co-owner and chief financial officer of Four Star Resolution (“Four Star”), a Buffalo, New York-based debt collection company, was sentenced in Manhattan federal court to 90 months in prison for orchestrating a scheme to coerce thousands of victims across the country, through misrepresentations and false threats, into paying a total of more than $31 million to Four Star to resolve debts these victims purportedly owed. All 14 individuals charged in connection with the Four Star scheme have been convicted. SESSUM pled guilty on November 18, 2016, to conspiracy to commit wire fraud and wire fraud before U.S. District Court Judge Katherine Polk Failla, who also imposed today’s sentence.
Acting U.S. Attorney Kim said: “Maurice Sessum was a driving force behind the largest criminal debt collection scheme ever prosecuted. Using outrageous threats and blatant lies to take advantage of vulnerable Americans, Sessum and his co-conspirators defrauded victims out of $31 million. For victimizing others to enrich himself, Sessum will now serve a significant term in federal prison.”
According to the Indictment and other filings in Manhattan federal court, and statements made in connection with SESSUM’s sentencing and other court proceedings:
Between 2010 and February 2015, SESSUM was the co-owner, chief financial officer, and chief operating officer of the Four Star. In that capacity, SESSUM, together with his co-defendant and co-owner, Travell Thomas, oversaw four debt collection offices operated by Four Star in Buffalo as well as a team of managers and debt collectors. As part of the scheme, SESSUM and Travell Thomas falsely inflated the balances of debts owed by consumers in Four Star’s debt collection software so that debt collectors could collect more money from the victims than the victims actually owed.
As co-owner of Four Star, SESSUM approved debt collection scripts that contained a variety of misrepresentations and instructed his collectors to make those misrepresentations to consumers over the telephone. At the direction of SESSUM and Thomas, Four Star’s debt collectors, using a variety of aliases, attempted to trick and coerce thousands of victims throughout the United States into paying millions of dollars in consumer debts through a variety of false statements and false threats, including that: (1) Four Star was affiliated with local government and law enforcement agencies, including the “county” and the district attorney’s office; (2) the consumers had committed criminal acts, such as “wire fraud” or “check fraud,” and if they did not pay the debt immediately, warrants or other process would be issued, at which point they would be arrested or hauled into court; (3) the victims would have their driver’s licenses suspended if they did not pay their debts immediately; (4) Four Star was a law firm or mediation firm and that Four Star’s employees were working with lawyers, a law firm, mediators, or arbitrators; and (5) a civil lawsuit would be filed, or was pending, against the victims for failing to pay their debts. SESSUM and Thomas also approved an abusive and coercive “mailing campaign,” in which Four Star sent mailers to victims across the country that purported to be from courts and government agencies.
In total, from about January 2010 through November 2014, Four Star collected more than $31 million from thousands of victims across the United States. Of the money that Four Star took in from victims, millions of dollars were paid in cash to SESSUM and Thomas, and hundreds of thousands of dollars were used to pay for SESSUM’s personal expenses, including for gambling and season tickets for professional sports games.
* * *
In addition to his prison term, SESSUM, 40, of Buffalo, New York, was sentenced to three years of supervised release, and ordered to forfeit $31 million.
In total, 14 individuals associated with Four Star have been charged and pled guilty to defrauding consumers as part of this debt collection scheme. In addition to SESSUM, co-owner and chief executive officer Travell Thomas, managers Jimmy Stokes, Tacoby Thomas, Heather Gasta, Mark Lavin, and John Salatino, and debt collectors Anthony Caba, Jessica Mann, Charles Starks, William Clark, Columbus Simmons, Michael Calandra, and Jennifer Sherk each pled guilty to conspiracy to commit wire fraud and wire fraud for their roles in the scheme.
Travell Thomas, Tacoby Thomas, Starks, Caba, Clark, Simmonds, Calandra, and Mann were sentenced by Judge Failla to prison terms of 100 months, 70 months, 37 months, 36 months, 30 months, 28 months, 15 months, and one year and one day, respectively. The sentencing of the other defendants who have pled guilty is pending.
Mr. Kim praised the efforts of the Office’s Criminal Investigators, who led the investigation of this matter. Mr. Kim also thanked the Federal Trade Commission for referring the case and for its assistance.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Edward A. Imperatore, Jennifer L. Beidel, and Jordan L. Estes are in charge of the prosecution.
Omaha, Nebraska Man Arrested for Threats to Public OfficialRead the Press Release
COUNCIL BLUFFS, IA - On July 7, 2017, Robert William Simet, 64, of Omaha, Nebraska, was arrested for making threats against United States Senator Joni Ernst. A charge is merely an accusation and Simet is presumed innocent unless and until proven guilty beyond a reasonable doubt. The Federal Bureau of Investigation is investigating this matter.
No other information or comments will be released until documents have been filed with the court as part of the public record.
-END-
Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Oklahoma City Mother and Son Sentenced to Prison for $770,000 Fraud Against MedicaidRead the Press Release
Oklahoma City, Oklahoma – DEBORAH A. GRAY, 51, and KEITH B. GRAY, II, 27, both of Oklahoma City, were sentenced to prison this week by United States District Judge David L. Russell for submitting false claims to Medicaid for behavioral health counseling, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma, and Mike Hunter, Attorney General for the State of Oklahoma. Deborah Gray, who was sentenced on Thursday, will serve 37 months in federal prison. Keith Gray, who was sentenced today, will serve 12 months and one day in federal prison. Both will serve three years of supervised release after imprisonment. The Court also ordered the Grays to pay $769,578.38 in restitution to Medicaid.
On July 6, 2016, the Grays were indicted on 151 counts of health care fraud. The indictment alleged that from October 2011 through May 2014, Deborah Gray owned and operated DAG Counseling Services, PLLC, which held itself out as providing behavioral health counseling services to Medicaid-eligible children. Keith Gray was a DAG Counseling employee. According to the indictment, the Grays devised and executed three schemes to defraud Medicaid through DAG Counseling. First, they caused to be submitted to Medicaid claims for "targeted case management services" for periods when children were actually being transported between home or school and the DAG Counseling offices, in violation of Medicaid regulations. Second, they submitted or caused to be submitted to Medicaid claims for one-on-one "psychosocial rehabilitation services" that exceeded the billing maximum of 90 minutes per child per day, also in violation of Medicaid regulations. Finally, they submitted or caused to be submitted to Medicaid claims for one-on-one "psychosocial rehabilitation services" that (a) were not actually provided, (b) were actually provided in groups of two or more children, or (c) were provided for less time than was billed to Medicaid.
Both defendants pled guilty on January 4, 2017, to one count of executing each of the three schemes.
"I commend and appreciate the work of our Medicaid Fraud unit, the FBI, and the United States Attorney," stated Oklahoma Attorney General Mike Hunter. "The sentences in this case should send a message that fraud against our children and our taxpayers will not be tolerated."
Reference is made to the indictment and other public filings for further information.
Medicaid is funded jointly by the federal government and the State of Oklahoma and administered by the Oklahoma Health Care Authority. This case is the result of a cooperative federal and state investigation by the Federal Bureau of Investigation and the Oklahoma Attorney General’s Office’s Medicaid Fraud Control Unit. It was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green and Oklahoma Assistant Attorney General Lory Dewey.
Ocean Springs Man Sentenced for Producing, Transporting, Distributing and Possessing Child PornographyRead the Press Release
Gulfport, Miss. – Philip Joseph Spear, 60, of Ocean Springs, Mississippi, was sentenced on July 6, 2017, by Chief U.S. District Judge Louis Guirola, Jr., to 160 years (1920 months) in federal prison followed by a lifetime of supervised release for producing, transporting, distributing, and possessing child pornography, announced Acting U.S. Attorney Harold Brittain, FBI Jackson Division Special Agent in Charge Christopher Freeze and Mississippi Attorney General Jim Hood. Spear was also ordered to pay $47,500 in restitution to victims, and a special assessment of $30,000 for a related crime under the Justice for Victims of Trafficking Act.
In September, 2016, a federal search warrant was executed at Spear’s residence in Ocean Springs. Electronic devices including computers, hard drives, a digital camera, a media card and an iPad were seized. A forensic examination revealed illegal images and videos of minors engaging in sexually explicit conduct.
Spear pled guilty on March 9, 2017, to a six count Bill of Information charging him with producing, transporting into the United States, distributing and possessing child pornography. His victims ranged in age from infant to 16 years old.
"A principle part of the FBI’s mission is to protect the American people, and we are especially dedicated to the most vulnerable among us – children," said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. "Phillip Spear despicably violated the human rights of children and stole their innocence. We hope his sentencing of 1,920 months in federal prison sends a strong warning and clear message to others who take part in unspeakable crimes against children."
"This man is exactly where he deserves to be—behind bars for the rest of his life," said General Hood. "His disgusting actions have no place in Mississippi, or anywhere else, and our child exploitation task force and agency partners take their responsibility seriously to get sick predators far away from our innocent children. I am very pleased with the work of all those involved in this case."
The case was investigated by the FBI Jackson Division’s Child Exploitation Task Force, which is made up of agents from the FBI and the Mississippi Attorney General’s Office, deputies from the Prentiss County Sheriff’s Office and prosecutors from the United States Attorney’s Offices in Oxford and Jackson. Assistant United States Attorneys Andrea Jones and Glenda Haynes prosecuted the case for the government.
Northampton Man Sentenced to 48 Months’ Imprisonment for Theft at Delaware Water GapRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on July 6, 2017, United States District Judge Robert D. Mariani sentenced Lewis Davenport, age 40, to 48 months’ imprisonment and a two-year term of supervised release, for conspiring to commit theft on federal land, and for committing aggravated identity theft.
According to United States Attorney Bruce D. Brandler, Davenport and other individuals broke into unoccupied automobiles located in the Delaware Water Gap National Recreation Area. Davenport admitted that he and his conspirators stole electronics, cellular phones, credit cards and other items from the automobiles, and used the stolen credit cards at various retail businesses in Bartonsville and in Easton, Pennsylvania.
In pronouncing the sentence, Judge Mariani emphasized Davenport’s extensive criminal history, which included 19 convictions involving theft- and credit card fraud-related activities. Judge Mariani also imposed a $1,174.89 order of restitution as part of Davenport’s sentence.
The investigation was conducted by the National Park Service Rangers. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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New York Man Sentenced to 5 Years in Federal Prison for Role in Southeastern Connecticut Drug RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that QUADON CHAMBERS, also known as “DVD,” 30, of Queens N.Y., was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
This matter stems from a long-term investigation headed by the Connecticut State Police Statewide Narcotics Task Force East and U.S. Drug Enforcement Administration into the large-scale distribution of narcotics in southeastern Connecticut. The investigation revealed that Sydney Jackson, also known as “Fatz,” and others regularly acquired kilogram quantities of cocaine and heroin from sources in New York and transported the drugs to southeastern Connecticut. Much of the cocaine was converted to crack cocaine by Jackson in Connecticut, and the drugs were distributed through a network of dealers in Groton, Norwich, New London, Stonington, Westerly, R.I. and the surrounding area.
The investigation further revealed that John King, also known as “Soy,” of Queens, used an apartment on East Main Street in Norwich to store, process and package narcotics for street sale. CHAMBERS was arrested on April 28, 2015, after law enforcement officers made entry into the apartment and found him weighing and packaging narcotics for distribution. Officers seized approximately 150 grams of crack cocaine and approximately 80 grams of heroin from the apartment, and approximately $4,000 in cash from CHAMBERS’ person. Officers also searched a vehicle that was parked outside of the stash house and seized a kilogram of cocaine. The car was registered to John King.
On November 24, 2015, a federal grand jury in Hartford returned a 35-count superseding indictment charging CHAMBERS, Jackson, King and 10 other defendants with various narcotics trafficking and firearm offenses. In addition, approximately 20 individuals were prosecuted on related state charges.
CHAMBERS has been detained since his arrest. On November 4, 2016, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 28 grams or more of cocaine base (“crack”).
On October 27, 2016, Jackson pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”). On February 16, 2017, he was sentenced to 10 years of imprisonment.
King has pleaded guilty and awaits sentencing.
This matter has been investigated by the Connecticut State Police Statewide Narcotics Task Force East, U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshals Service, Connecticut Department of Correction and Groton City, Groton Town, New London, Norwich and Waterford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Dave Vatti and Joseph Vizcarrondo, with the assistance of Senior Assistant State’s Attorneys Paul Narducci and David Smith of the State’s Attorney’s Office for the Judicial District of New London.
Mobridge Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mobridge, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner was sentenced on July 6, 2017, by U.S. District Judge Roberto A. Lange.
Tracy Peters, age 51, was sentenced to 6 months in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Peters was indicted by a federal grand jury on November 9, 2016. He pled guilty on April 17, 2017.
The conviction stems from an incident on November 3, 2016. Tracy Peters went with his girlfriend to the Legion Club and the Golden Rule Bar in Eagle Butte to drink and socialize. Both of them became extremely intoxicated. After leaving the bar, they returned to the Cheyenne River Motel where Peters was living. The two of them began arguing before they got back to the motel. While she was still in the car, Peters struck the victim in the face. The victim sustained substantial cuts to her face that required stitches.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Peters was immediately turned over to the custody of the U.S. Marshals Service.
Mobridge Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mobridge, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on July 5, 2017, by U.S. District Judge Charles B. Kornmann.
Richard Cadotte, age 55, was sentenced to 34 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Restitution is being left open for 90 days.
Cadotte was indicted by a federal grand jury on October 14, 2015. He filed a Petition to Plead Guilty on October 26, 2016.
The conviction stems from an incident on September 19, 2015, when the victim was driving a tan vehicle down the water tower road near Wakpala, South Dakota, and struck a cow. As the victim was exiting his vehicle, Cadotte approached the scene, driving an older model blue car. The victim began to approach the vehicle and Cadotte stepped out, but then got right back into his vehicle. The victim then approached Cadotte’s car, jumped on the hood, and began to strike the windshield. Cadotte drove away, trying to shake the victim off the vehicle.
The victim fell from the vehicle, got back on his feet and began to return to his own vehicle. Cadotte turned around in his vehicle and accelerated towards the victim, striking him with the front of the vehicle. The victim flipped through the air, landing on the road way. Cadotte then proceeded to a near-by residence, dropped someone off, and left the area. A witness drug the victim off the road, fearing Cadotte intended to run him over again.
A sergeant and a patrol officer inspected the outside of the blue car, which had been stopped previously. A red substance was observed on the front grill, drivers head lights, windshield, and roof of the car.
As a result of this incident, the victim suffered two broken legs.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Cadotte has been allowed to self-report to the custody of the U.S. Marshals Service by July 25, 2017.
Mission Man Sentenced for Drug PossessionRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Possession of a Controlled Substance was sentenced on June 27, 2017, by U.S. District Judge Roberto A. Lange.
Jeremy Joseph Douville, age 21, was sentenced to 6 months in custody with credit for time served, 1 year of supervised release, forfeiture of $2,281.91, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $25.
Douville was indicted by a federal grand jury on December 20, 2016. He pled guilty on May 3, 2017.
On December 6, 2016, Douville, knowingly and intentionally possessed marijuana, a Schedule I controlled Substance, in South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Douville was released following sentencing.
Miami Resident Sentenced to 30 Years in Prison for Sex TraffickingRead the Press Release
A Miami resident was sentenced to thirty years in prison for sex trafficking six Cuban victims.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, Rodolfo Llanes, Chief, City of Miami Police Department (MPD), and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Silvio Clark Morales, 31, originally of Cuba, pleaded guilty before U.S. District Judge Jose E. Martinez, in April 2017, to six counts of sex trafficking by force, threats of force, fraud, and coercion, in violation of Title 18, United States Code, Section 1591(a)(1), and one count of conspiracy to encourage and induce illegal aliens to reside in the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(v)(I). Judge Martinez sentenced Morales today to three hundred and sixty months in prison. Morales has also been ordered to pay restitution to his sex trafficking victims.
According to court records, Morales tricked at least six victims to travel from Cuba to the United States, via Mexico, and work as “dancers.” According to the victims, there was never any indication that they would be dancing naked or performing any commercial sex acts until they arrived in Miami and Morales told them to work at various strip clubs throughout Miami and as prostitutes. When the victims protested, Morales threatened them, physically assaulted them, kept them in debt bondage, and threatened their families. He also routinely kept a close watch on the victims and constantly brandished a firearm to keep them in compliance with his wishes. On one occasion, Morales drove one of the victims to an isolated bridge near the Everglades, beat her, and told her that he was going to throw her into the swamp and let the alligators eat her, before throwing her in the trunk of his car.
Together with Homeland Security Investigations, the United States Attorney’s Office for the Southern District of Florida leads the South Florida Human Trafficking Task Force, which works to increase public awareness, rescue victims, and prosecute traffickers. The task force is composed of not only federal agencies but also state and local law enforcement entities, and partners with non-law enforcement entities, such as service providers, victim advocates, faith-based organizations, academic representatives, and community members.
Mr. Greenberg commended the investigative efforts of ICE-HSI, MPD and MDPD. The case was prosecuted by Assistant U.S. Attorney Benjamin Widlanski.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Heads to Federal Prison for Smuggling Meth and HeroinRead the Press Release
LAREDO, Texas – A 48-year-old man from Monterrey, Nuevo Leon, Mexico, has been sentenced for conspiracy to import crystal methamphetamine and brown heroin, announced Acting U.S. Attorney Abe Martinez. Genaro Garcia-Gutierrez pleaded guilty Nov. 1, 2016.
Today, U.S. District Judge George P. Kazen ordered him to prison for 150 months. Not a U.S. citizen, he is expected to face deportation proceedings following his release.
On July 20, 2016, Garcia-Gutierrez took part in a conspiracy to smuggle 5.22 kilograms of crystal methamphetamine and 1.7 kilograms of brown heroin through the Lincoln-Juarez International Bridge in Laredo. He was driving a 2008 Dodge Nitro with Mexican license plates. Authorities soon discovered 10 packages containing the crystal methamphetamine and four packages with the brown heroin in the rear passenger quarter panel of the vehicle.
Garcia-Gutierrez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Member of Trenton Drug Trafficking Organization Sentenced to Six Years in PrisonRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 72 months in prison for his role in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding areas, Acting U.S. Attorney William E. Fitzpatrick announced today.
Keith Hunter, a/k/a “Meech,” 24, previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. As part of his guilty plea, Hunter also admitted possessing at least one firearm during the conspiracy.
In December 2016, Hunter and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its alleged leader, Ishmael Abdullah.
According to documents filed in this case and statements made in court:
From June 2015 through December 2016, Hunter and others engaged in a drug trafficking organization that operated in the area of Spring and Passaic streets in Trenton. Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that defendant Ishmael Abdullah was a leader of the Abdullah DTO and was responsible for obtaining significant quantities of heroin from multiple suppliers, including from defendants Jose Joaquin Torres-Mezquita and Ileana Sanchez. Abdullah and Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators. Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with their narcotics conspiracy, Hunter and other members of the Abdullah DTO maintained joint access to multiple firearms.
In addition to the prison term, Judge Wolfson sentenced Hunter to four years of supervised release.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Satellite Office, under the direction of Acting Special Agent in Charge Lawrence J. Panetta; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; officers of the New Jersey State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Defense counsel: Robert J. Haney Esq., Princeton, New Jersey
Lubbock Woman Sentenced for Her Role in Fentanyl Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Jessica Christine Holl, 29, of Lubbock, Texas, was sentenced this morning before Senior U.S. District Judge Sam R. Cummings to 210 months in federal prison for her role in a conspiracy to distribute fentanyl, announced U.S. Attorney John Parker of the Northern District of Texas.
Holl pleaded guilty in March 2017 to one count of conspiracy to distribute and possess with intent to distribute fentanyl and furanyl fentanyl.
Co-defendants Sidney Caleb Lanier, 36, and Jamie Marie Robertson, 32, both of Lubbock, Texas, were both sentenced on June 9, 2017. Lanier was sentenced to 135 months in federal prison following his guilty plea in February 2017 to one count of conspiracy to distribute and possess with intent to distribute fentanyl. Robertson was sentenced to 48 months in federal prison following her guilty plea also in February 2017 to one count of unlawful use of a communications facility.
The defendants have been in custody since their arrest in October 2016 following a law enforcement operation led by Lubbock Police Department and special agents with the Drug Enforcement Administration focused on the distribution in the Lubbock area of the highly potent synthetic opioid, fentanyl.
“Fentanyl is responsible for a sharp increase in overdoses and deaths across the country and poses a very high risk of death to not only users, but law enforcement and first responders as well,” said U.S. Attorney Parker. “Our local, state and federal partners will continue to push back hard on those who peddle this poison in our communities.”
While fentanyl can serve as a direct substitute for heroin in opioid-dependent individuals, it is a dangerous substitute as it is 50 times more potent than heroin and results in frequent overdoses that can lead to respiratory depression and death. Cheaper than heroin, fentanyl can be ingested, inhaled or absorbed through the skin; just a few milligrams, equivalent to a few grains of table salt, may be deadly.
According to documents filed in this case, from approximately January 2013 to October 27, 2016, Lanier, Holl, and Robertson did knowingly and intentionally combine, conspire, confederate and agree with each other to intentionally distribute and possess with intent to distribute a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance. Lanier supplied Holl and Robertson with large amounts of Fentanyl he purchased online on the Darknet from China using Bitcoin, a digital currency. The Fentanyl was shipped to various addresses in the Lubbock area, prepared by the defendants and sold for use.
The case was investigated by the Lubbock Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Jeff Haag is in charge of the prosecution.
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