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Monday 26 June 2017
Two Afghan Men Plead Guilty in Manhattan Federal Court to Conspiring to Import Hundreds of Kilograms of Heroin into the United StatesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that LAJBAR LAJAWARD KHAN, a/k/a “Haji Lajaward,” and AMAL SAID SAID ALAM SHAH, a/k/a “Haji Zar Mohammad,” pled guilty to conspiring to import heroin into the United States, and to distributing heroin intending that the heroin would be imported into the United States. LAJAWARD and SAID pled guilty earlier today to a Superseding Indictment in Manhattan federal court before U.S. District Judge Kimba M. Wood.
Acting U.S. Attorney Joon H. Kim said: “As these two defendants admitted today, they conspired and attempted to import heroin into the United States from Afghanistan. Indeed, as the investigation revealed, they intended to import so much heroin into the United States from Afghanistan that their ‘sample’ shipment, meant as a test run for future shipments to the U.S., was three kilograms of heroin. We will continue to work with the DEA to curb the importation of heroin, a lethal drug that plagues every community right now.”
According to the allegations contained in the Superseding Indictment to which LAJAWARD and SAID pled guilty, statements made during the plea and other court proceedings, and other documents in the public record:
LAJAWARD and SAID, two Afghan nationals, were part of a drug trafficking organization (the “DTO”) based in Afghanistan that produced and distributed large quantities of heroin. Between approximately May 2014 and June 2015, LAJAWARD and SAID worked together in an effort to import large quantities of heroin – in the range of 1,000 kilograms – from Afghanistan into the United States.
In August 2014, LAJAWARD began communicating by telephone with an individual he understood to be a New York-based narcotics trafficker, who was in fact an undercover agent of the DEA (the “UC”). LAJAWARD, in sum and substance, told the UC that he was interested in supplying large quantities of high-quality heroin for importation into the United States, where it would be sold for millions of dollars. In the course of the calls between LAJAWARD and the UC, LAJAWARD introduced the UC to one of LAJAWARD’s heroin-trafficking associates, SAID.
On October 30, 2014, LAJAWARD and the UC met in person in Dubai, United Arab Emirates. In the course of that recorded meeting, in sum and substance, LAJAWARD continued to express his interest in supplying large quantities of heroin to the UC for importation into the United States, and LAJAWARD offered to supply a sample of heroin to the UC, as a test shipment to be sold in the United States. In the months following that meeting in Dubai, in the course of recorded telephone calls with the UC, LAJAWARD and SAID arranged to supply a three-kilogram sample of heroin in Kabul, Afghanistan (the “Heroin Sample”).
During those recorded calls, LAJAWARD, SAID, and the UC agreed that the delivery of the three-kilogram Heroin Sample would occur in Kabul on or about January 15, 2015. On that day, an undercover Afghan law enforcement officer, acting at the direction of the DEA and posing as an associate of the UC, met with LAJAWARD and one of LAJAWARD’s associates in Kabul and received delivery of the three-kilogram Heroin Sample. In parallel, over 1,000 miles away in Dubai, the UC met with another associate of LAJAWARD to pay for the Heroin Sample, as had been arranged during recorded calls between the UC and LAJAWARD. At that meeting, which was recorded, the UC paid $10,500 to the associate for the Heroin Sample.
About two weeks later, on January 28, 2015, SAID met with the UC in Dubai. During that recorded meeting, in sum and substance, SAID discussed the Heroin Sample that the DTO had recently supplied for importation into the United States, stated that the DTO was prepared to supply 1,000 kilograms of heroin to the UC, and indicated that it would only take the DTO about 15 days to produce 100 kilograms of heroin for shipment to the United States.
On April 2, 2015, SAID met again with the UC in Dubai. During that recorded meeting, SAID and the UC negotiated additional details of the agreement for the DTO to supply massive quantities of heroin for importation into the United States, including that LAJAWARD and SAID would share in the profits generated from the sale of the heroin in the United States. SAID also agreed, in sum and substance, that he and LAJAWARD would meet the UC in Thailand, for purposes of finalizing the heroin deal, and for LAJAWARD and SAID to receive their share of the profits generated from the purported sale in the United States of the three-kilogram Heroin Sample previously supplied by the DTO.
In June 2015, LAJAWARD and SAID traveled to Bangkok, Thailand, to meet with the UC. On June 13, 2015, LAJAWARD and SAID were arrested in Bangkok by Thai authorities based on the charges in this case, at the request of U.S. authorities. LAJAWARD and SAID were later brought to the United States to face the charges against them.
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LAJAWARD, 52, of Afghanistan, and SAID, 46, also of Afghanistan, each pled guilty to one count of conspiring to import one kilogram and more of heroin into the United States, and to one count of distributing or attempting to distribute one kilogram and more of heroin, knowing and intending that it would be imported into the United States. LAJAWARD and SAID each face a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Sentencing is scheduled for November 1, 2017, at 3:30 p.m., before Judge Wood.
Mr. Kim praised the outstanding investigative work of the DEA’s Special Operations Division; the DEA’s Kabul, Dubai, Tokyo, and Bangkok Country Offices; the DEA’s New York Field Division; the CNP-A Sensitive Investigative Unit of the Afghan Ministry of the Interior; the Dubai Police Department and the Anti-Narcotics Unit of the Emirati Ministry of Interior; Japan’s National Police Agency and the Saitama Prefectural Police; Thailand’s Sensitive Investigative Unit of the Royal Thai Police Narcotics Suppression Bureau; Thailand’s Attorney General’s Office; Thailand’s Ministry of Foreign Affairs; INTERPOL; the U.S. Department of State; and the U.S. Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Rebekah Donaleski and George D. Turner are in charge of the prosecution.
Tulsa Man Sentenced to 21 Years Plus 10 Months for Possession and Distribution of Child PornographyRead the Press Release
A Tulsa federal court sentenced Clint Tirone Barger of Tulsa, Oklahoma, to serve 21 years plus 10 months in federal prison for possession and distribution of child pornography followed by 8 years of supervised release, announced Acting United States Attorney Loretta Radford for the Northern District of Oklahoma.
Barger plead guilty to a two-count Information on March 30, 2017.
According to court documents, from November 2016 to February 2, 2017, Barger knowingly possessed and distributed images of children under the age of 14 engaging in sexually explicit conduct. Barger used social media and internet file sharing programs to entice minors to send him images of the sexually explicit conduct. Barger then distributed the images to others.
Department of Homeland Security Investigations and the Tulsa Police Department investigated the case. Assistant United States Attorneys Clinton J. Johnson and Shannon Cozzoni prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices, 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 and internet safety education, please visit www.justice.gov/psc.
Topeka Man Was Wearing Monitoring Device While He Took Part in RobberyRead the Press Release
WICHITA, KAN. - A Topeka man admitted Monday that he took part in a robbery while he was wearing a monitoring device, U.S. Attorney Tom Beall said.
Christopher Allen Bush, 26, Topeka, Kan., pleaded guilty to one count of aiding and abetting a commercial robbery. In his plea, Bush admitted he picked up co-defendant Marsoleno Devon Ryland after Ryland robbed Casey’s General Store at 600 S.E. Rice Road.
At the time of the robbery, Bush was wearing a monitoring device because he was on post-release supervision in a criminal case in state district court. Data from the GPS device verified that Bush picked up Ryland just south of Casey’s General Store and drove him to the 2300 block S.E. Bellview, where police located the two men shortly after the robbery.
Sentencing is set for Sept. 25. Both parties have agreed to recommend Bush be sentenced to 36 months in federal prison. Co-defendant Ryland is set for sentencing Sept. 18.
Beall commended the FBI, the Topeka Police Department and Assistant U.S. Attorney Jared Maag for their work on the case.
The United States Attorney’s Office to Host A One Stop Reentry FairRead the Press Release
JUNE 26, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4854
Baltimore, Maryland – The United States Attorney’s Office will host the first One-Stop Reentry Fair at the War Memorial in Baltimore City on Wednesday, June 28, 2017 from 10 a.m. until 3 p.m. The fair will bring together non-profits, service providers and state and local government organizations from across Baltimore to assist returning citizens to connect with resources.
Returning citizens, individuals who have completed their sentences and have been released from prison, will have access to information on transitional housing, shelters, substance abuse and mental health programs, GED and college courses, job training and job placement programs, food, clothing and infant assistance, identification and legal support and information on Parole and Probation.
According to an Open Society Foundation study, every year, over 10, 000 people are released from state or federal prisons in Maryland and approximately sixty percvent of those individuals return to Baltimore City.
In coordination with federal, state and local agencies and community service providers, the U.S. Attorney’s Office supports reentry initiatives as means of reducing recidivism and keeping communities safe.
“The mission of the United States Attorney’s Office is public safety as well as preventing crime. We believe providing access to resources and services will aid in assisting those with a criminal records from reoffending,” noted Acting United States Attorney Stephen M. Schenning.
Additionally, as part of a federal reentry initiative, the Maryland U.S. Attorney’s Office has published a list of governmental and private-sector agencies throughout Maryland that are available to assist people recently released from state and federal jails and prisons, announced Mr. Schenning. The resource list can be accessed through a link on the U.S. Attorney’s Office home page, at www.justice.gov/usao/md.
Statement of Christopher A. WrayRead the Press Release
Christopher A. Wray delivers a statement on his nomination by President Donald J. Trump to lead the FBI:
“I am honored and humbled to be nominated by the President to lead the FBI, the premier law enforcement organization in the world. From my earliest days working with agents as a line prosecutor to my time working with them at the Department of Justice in the aftermath of 9/11, I have been inspired by the men and women of the FBI – inspired by their professionalism, integrity, courage, and sacrifice for the public. If confirmed, it will be a privilege and honor to once again work with them. America faces grave threats both here and abroad, and the FBI, in concert with its federal, state, and local partners continues to work steadfastly to prevent and hold accountable those responsible for these threats. I look forward to the confirmation process, and pledge my complete commitment to fairly and honorably protecting our country and upholding our Constitution and laws.”
Statement by Attorney General Jeff Sessions on Unanimous Supreme Court DecisionRead the Press Release
Attorney General Jeff Sessions today issued the following statement after the unanimous decision by the Supreme Court of the United States to review the lower courts’ decisions on the President’s executive order:
“I am pleased that the Supreme Court has decided to hear this case and the Department of Justice looks forward to arguing on behalf of the President and his constitutional duty to protect the national security of the United States.
“We have seen far too often in recent months that the threat to our national security is real and becoming increasingly dangerous. Groups like ISIS and al Qaeda seek to sow chaos and destruction in our country, and often operate from war-torn and failed countries while leading their global terror network. It is crucial that we properly vet those seeking to come to America from these locations, and failing to do so puts us all in danger.
“Today’s order is also an important step towards restoring the separation of powers between the branches of the federal government. The Court’s decision recognizes that the Executive has the responsibility to protect the safety and security of the American people under the Constitution of the United States and its laws. The judiciary serves, pursuant to their oath, under the same Constitution and these same laws. This case raises profound questions about the proper balance of these constitutional powers, and we are eager to advance our views on these important issues.
“Through Article II of the Constitution, the founders of our country vested the Executive Branch with a great responsibility: to ensure the national security of our country. I am committed to defending the President's ability to exercise that responsibility and the Department of Justice is confident that the United States Supreme Court will uphold this constitutional and necessary executive order.”
South Carolina Man Sentenced to 30 Years in Federal Prison for Using Fake Facebook Profiles to Meet and Coerce Six Colorado Teenagers into Taking and Sending Him Explicit PhotographsRead the Press Release
DENVER – Christopher George White, age 38, of McCormick, South Carolina, was sentenced last week by U.S. District Court Judge R. Brooke Jackson to serve 30 years in federal prison, followed by a lifetime term of supervised release, for his conviction on six counts of coercion and enticement of a minor, Acting U.S. Attorney Bob Troyer and Acting U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge John Eisert announced. White, who was remanded to the custody of the Bureau of Prisons following the hearing, used social media, text, and telephone calls to meet, entice, and then threaten minors into taking off clothing or committing sex acts for his own personal pleasure.
According to the stipulated facts contained in the plea agreement, between June 30, 2014 and August 4, 2014 White, targeted child victims ranging from 13 to 14 years of age by using Facebook profiles “Kent Noelle” and “Glenn Black.” White claimed to be a teenage boy while he was truly a 35-year-old man and previously convicted sex offender. He used those profiles to correspond with minor girls, including the six minor girls from Colorado. After first befriending them online, and then texting and even talking with the minors by phone, the defendant then began to use harassment, threats of physical harm, and threats to post sexually-explicit photographs of the children or their friends on social media, all in an effort to coerce the teenagers to produce and send him child pornography of themselves.
After pleading guilty to the six counts in this case, but before his sentence was announced, White continued to contact other minor girls from prison to harass them or engage in graphic phone sex with them. When White’s phone privileges were curtailed, he used another inmate’s access to continue contacting teenage girls from prison.
“HSI’s and our prosecutors’ forensic skill at catching these predators is second to none,” said Acting U.S. Attorney Bob Troyer. “But the absolute best way to protect your kids from being preyed upon like this is to keep an eye on their behavior and phone and computer use.”
“This child exploitation case is an example of HSI’s commitment, in partnership with the Department of Justice, to track, investigate and prosecute child predators to the fullest extent of the law,” said John Eisert, acting special agent in charge of HSI Denver. “HSI has an active and ongoing Operation Predator program to identify criminals who prey on children. Operation Predator helps make our communities safer by bringing criminals to justice for their despicable exploitation of our children.”
This case was investigated by HSI and the Larimer County Sheriff’s Office, as well as the Oconee County Sheriff’s Office in South Carolina.
White is being prosecuted by Assistant U.S. Attorneys David Tonini and Gregory Holloway.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Six Defendants Charged in A Debt Collection SchemeRead 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 six defendants were charged by criminal complaint with conspiracy to commit wire fraud. Named in the complaint are Joseph Ciffa, 49, Erica Lounsberry, 30, both of Grand Island, NY; Debbie Seright, 41, and Shauniqua Rodriguez, 38, both of Niagara Falls, NY; Damario Turpin, 36, of Buffalo, NY; and Carmelo Collana, 48, of Kenmore, NY. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine. Defendant Ciffa is also charged with health care fraud, which is punishable by up to 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that defendant Ciffa has been involved in the debt collection business since at least 2013. Since approximately March 2015, the defendant has operated out of multiple locations including 1625 Buffalo Avenue, in Niagara Falls, NY; 870 Ontario Street in Kenmore, NY; 1567 Military Road in Kenmore; and out of his home office.
According to the complaint, the debt collection operation was not a legitimate operation, and employed fraudulent means to collect on debts, to recollect on debts already collected, and to process and transfer payments related to the collection of such debts. The operation allegedly used threatening statements to debtors all over the United States, made via telephone calls, in an effort to induce payment of debts.
Defendants Lounsberry and Seright were managers who oversaw other employees. Defendant Collana was an associate who established shell companies, payment processing accounts, and bank accounts, to facilitate the receipt of victim payments, and removed cash from these accounts for Ciffa. Defendant Turpin was also an associate who allowed Ciffa to process victim payments in his (Turpin's) MoneyGram and bank accounts. Defendant Rodriguez was an employee who threatened victims over the telephone, claiming that they were charged with complaints and/or under arrest.
On December 15, 2016, a search was executed at Ciffa's residence on Grand Island. Law enforcement officers recovered discovered a debit card bearing Damario Turpin's name linked to a bank account; business checks other bank accounts; and a bank signature stamp for Damario Turpin. Ciffa's cellular telephone was also seized. A forensic analysis revealed recorded phone conversations during which Ciffa described in detail the fraud scheme in which his debt collection organization was engaged. Other recorded phone conversations detail the money Ciffa was making as a result of his illegal activity. During one conversation, Ciffa stated: "We did 370 grand the month of March...We're on a $300,000 a month pace right now..."
In addition, between March 2015 and August 30, 2016, defendant Ciffa is accused of fraud involving Medicaid benefits meant for low-income individuals. In application to the Erie County Department of Social Services, Ciffa claimed that he and his wife earned a combined $610 in weekly income. As a result, the defendant, his wife and their two children received benefits. According to the complaint, Ciffa's total income for 2015 was $1,284,951.04.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and were released.
The complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special-Agent-in-Charge James C. Spero; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; and the New York State, Office of Inspector General, under the direction of Inspector General Catherine Leahy Scott.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Schenectady Man Sentenced to 58 Months for Unlawful Firearm PossessionRead the Press Release
ALBANY, NEW YORK – Lawrence Giggetts, age 37, of Schenectady, New York, was sentenced today to 58 months in prison for possessing a firearm as a felon.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
In pleading guilty, Giggetts admitted to possessing an inoperable .25-caliber, semiautomatic pistol, after he had been convicted of attempted reckless endangerment, a felony. The pistol, which was inoperable because it did not have a firing pin, still qualified as a firearm under federal law, which prohibits felons even from having inoperable firearms so long as there is an interstate connection.
Senior United States District Judge Gary L. Sharpe also sentenced Giggetts to 3 years of supervised release, to begin once Giggetts is released from prison.
This case was investigated by the ATF and the Schenectady Police Department, and was prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Salvadoran Man Sentenced for Illegal Re-EntryRead the Press Release
ALBANY, NEW YORK – Jose Domingo Contreras Flores, age 34, and a citizen of El Salvador, was sentenced today to time served (about 69 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Flores had been removed from the United States in 2003, at Chandler, Arizona. He later re-entered the country without the permission of the Department of Homeland Security. Flores had been living in Hudson at the time of his arrest.
Flores will be transferred to the custody of the Department of Homeland Security, which will place him into removal proceedings.
This case was investigated by ICE-ERO in Latham, New York, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Resident of Harrisburg, Pennsylvania Pleads Guilty to Making False Statements on VISA ApplicationsRead the Press Release
CONCORD, N.H. – Anna Delarosa, 57, of Harrisburg, Pennsylvania pleaded guilty to making false statements in applications for family visas, announced Acting United States Attorney John J. Farley.
According to court documents, a limited number of family visas are issued by the United States State Department to citizens of foreign countries. To obtain a family visa, a citizen or legal permanent resident of the United States (a “sponsor”) is required to submit an application for a family visa to the United States Citizenship and Immigration Service. A citizen of a foreign country is not eligible for a family visa if he or she is likely to become a public charge after they enter the United States. Therefore, under federal law, a sponsor is also required demonstrate his or her ability to provide financial support to the applicant by submitting a financial affidavit, copies of their recent federal tax returns, and other personal financial records to the USCIS. All applications for family visas are processed at the National Passport Center in Portsmouth, New Hampshire.
During the plea hearing today, Delarosa admitted that from August 2010 to April 2013, she knowingly caused ten financial affidavits that contained the forged signature of an alleged sponsor to be submitted to the National Visa Center in support of applications for family visas for citizens of the Dominican Republic.
Delarosa will be sentenced on October 11, 2017. The crime to which she pleaded guilty, making false statements to the federal government, is punishable by up to 5 years in prison and a fine of $250,000.
The case was investigated by the United States States Department, Diplomatic Security Service. The case is being prosecuted by Assistant U.S. Attorney Robert Kinsella.
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Puerto Rican Man Plead Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Alberto Rosado-Leon, 36, of Puerto Rico, pleaded guilty to conspiracy to distribute 500 grams or more of cocaine before U.S. District Judge Lawrence J. Vilardo. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that the defendant, along with co-defendants Wendell Delgado-Sanchez and Figuerora Suarez, conspired to distribute cocaine from an apartment located on Dearborn Street in Buffalo, New York. On March 5, 2015, law enforcement officers executed a search warrant at the apartment and recovered 1,368 grams of cocaine in a safe and a 9mm pistol.Officers also recovered a surveillance video system from inside the apartment that displayed the activities inside the apartment from February 27, 2015, through March 5, 2015. A review of the video demonstrates that during that time period, all three defendants were present weighing, mixing, and packaging cocaine for distribution. The video also depicts occasions when the defendants completed drug transactions with customers.
Wendell Delgado-Sanchez has been convicted and is awaiting sentencing. Figuerora Suarez was convicted and sentenced to 60 months in prison.
Today’s plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for October 18, 2017 at 9:30 a.m. before Judge Vilardo.
Police and Prosecutors Join Students for a Day of LearningRead the Press Release
GAINESVILLE, FLORIDA – The United States Attorney’s Office for the Northern District of Florida, together with the Alachua County Sheriff’s Office, Gainesville Police Department, and Eastside High School, will present a BLAST Program event on Wednesday to approximately 50 students.
Event: BLAST Program
Host: United States Attorney’s Office, Northern District of Florida
Location:
Eastside High School
1201 SE 43rd Street
Gainesville, FL 32641
Date: Wednesday, June 28, 2017
Time: 8:45 a.m. – 1:00 p.m. EDT
Press: Please RSVP to Amy Alexander at [email protected] if you plan to attend.
United States Attorney Christopher P. Canova said: “The BLAST initiative was created by the U.S. Attorney’s Office to provide a forum to exchange information about officer risks and citizen viewpoints. Sharing these perspectives encourages safe interactions between citizens and officers to improve our community.”
Sheriff Sadie Darnell said: “Working with the youth of our community is a great way to build trust between law enforcement and our young people so that everyone better understands issues facing each of us.”
The BLAST Program offers students an opportunity to meet representatives of the criminal justice community and ask them questions, share their perceptions of law enforcement, and interact with officers in a familiar setting. Officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
The schedule will include the following discussion sessions, during which students will have a chance to participate in role play with law enforcement officers.
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Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
This session is open to the media and public, and videography and photography is permitted.
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Domestic Violence: Students will participate in a scenario in which police respond to a domestic disturbance. Discussion includes the challenges officers face, rights of witnesses and suspects, and benefits of providing information to the police.
This session is open to the media and public, and videography and photography is permitted.
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Traffic Stop Simulation: Participants and officers alternate playing the roles of civilians and officers in a traffic stop. Discussion includes de-escalation and the uncertainty officers and vehicle occupants face during a traffic stop.
This session is open to the media and public, and videography and photography is permitted.
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Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation.
This session is closed to the media and public. Reporters may try the simulator equipment after the event ends.
Participating agencies include:
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United States Attorney’s Office, Northern District of Florida
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Alachua County Sheriff’s Office
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Gainesville Police Department
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Eastside High School
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Bureau of Alcohol, Tobacco, Firearms and Explosives
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Drug Enforcement Administration
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Federal Bureau of Investigation
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U.S. Fish and Wildlife Service
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Florida Highway Patrol
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FAMU Police Department
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
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Plattsmouth Man Sentenced for Bank FraudRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Mark A. Tincher, age 59, of Plattsmouth, Nebraska, was sentenced on June 26, 2017, by the Honorable Laurie Smith Camp to five years of supervised release, a fine of $50,000, and ordered to pay restitution of $833,404.65 to Plattsmouth State Bank. Tincher had previously pled guilty to one count of bank fraud.
From approximately April 1, 2010, to approximately June 2, 2010, Tincher maintained separate checking accounts at Plattsmouth State Bank, Arbor Bank, Murray State Bank and Glenwood State Bank. Tincher conducted a scheme, known as check kiting, whereby he manipulated checks between the four banks to create artificially inflated bank balances through the utilization of float, then used the inflated bank balances for business purposes. When a check is drawn upon an account in one bank, presented for deposit at a second bank, and then transmitted to the bank of origin for payment, there is often a delay of a day or more between the time it was deposited and the time the check was ultimately presented to the bank of origin to be paid from available funds. The bank of origin still shows the money in the account and the bank in which the funds were deposited shows the same amount. That scenario is a float.
The case was investigated by the Federal Bureau of Investigation.
Pekin Man Sentenced to 6 1/2 Years in Prison for Receiving, Possessing Child PornographyRead the Press Release
PEORIA, Ill. – Darin E. Eldridge, 55, of Pekin, Ill., has been sentenced to 80 months (6 years, 8 months) in prison for receiving and possessing child pornography. U.S. District Judge Michael M. Mihm sentenced Eldridge on June 23. Judge Mihm also ordered that Eldridge remain on supervised release for 10 years following his release from incarceration. Eldridge will be required to register as a sex offender. Eldridge has remained in the custody of the U.S. Marshals Service since he was arrested on the federal charges on Sept. 22, 2016.
On Feb. 2, 2017, Eldridge pled guilty to three counts of receiving and one count of possession of child pornography. According to court documents, Eldridge was identified after law enforcement learned that a computer in his residence was using a peer-to-peer file sharing program to download and share files containing child pornography. Based on this information the U.S. Secret Service obtained and executed a search warrant for his residence on April 6, 2016. At the conclusion of the search, the Secret Service seized numerous items of computer equipment. A forensic examination of the seized items revealed the presence of images and videos of minors engaged in sexually explicit conduct.
The charges were the result of an investigation by the U.S. Secret Service, Springfield Electronic Crimes Unit, which includes the Peoria County Sheriff’s Office. Assistant U.S. Attorney Ronald L. Hanna prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Parents Plead Guilty to Voluntary Manslaughter and Other Charges in Starvation Death of Infant DaughterRead the Press Release
WASHINGTON –Jay Crowder, 33, and Trishelle Jabore, 26, of Washington, D.C., pled guilty today to charges stemming from the starvation-related death of their seven-week-old daughter, U.S. Attorney Channing D. Phillips announced.
Both defendants pled guilty in the Superior Court of the District of Columbia to charges of voluntary manslaughter, first-degree cruelty to children, and welfare fraud-unlawful food stamp usage. Crowder also pled guilty to a charge of attempted distribution of a controlled substance (synthetic cannabinoid or K2). Crowder’s plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of 10 to 12 years in prison. Under the Court’s voluntary sentencing guidelines, Jabore could face a range of six to 15 years in prison. The Honorable José M. Lόpez scheduled sentencing for Sept. 8, 2017.
According to a proffer of facts presented at the plea hearing, on Nov. 6, 2016, Jabore gave birth to the couple’s daughter, Trinity. The infant weighed 4 pounds, 14.5 ounces, but was considered at term and healthy. At the time of her birth, both the mother and child tested positive for THC, an active ingredient in marijuana. Both parents had prior experience parenting newborn children. They received approximately $995 in welfare funds, including food stamps. They paid $9.80 in rent and $50 for Internet service, and they spent money on cigarettes and marijuana; according to Jabore, she and Crowder smoked marijuana most days. Around Thanksgiving, they sold some of their food stamps to a family member for $150.
On the evening of Dec. 24, 2016, the baby was put to bed in her car seat with a bottle at 7 p.m. At approximately 9 a.m. on Dec. 25, 2016, Crowder entered his and Jabore’s bedroom, where the baby was still in her car seat. Crowder picked up the child and felt that her body was limp. Crowder attempted to feed her a bottle but she would not take it. The baby’s breathing appeared labored at that time, and Jabore said that her lips were yellow. Jabore and Crowder monitored the baby’s condition for about three hours. At noon, Jabore called 911 and stated that the baby was unconscious and not breathing. Jabore and Crowder reported that she had no signs of illness or any falls or trauma and had not been involved in any accidents.
The D.C. Fire and Emergency Medical Services Department and the Metropolitan Police Department (MPD) were dispatched to the defendants’ home in Southwest Washington. The baby was taken to the Emergency Department at Children’s National Medical Center. Hospital staff attempted advanced life-saving measures, but the child was pronounced dead at 12:26 p.m. A doctor reported that she appeared cachectic and had what appeared to be blood in her diaper.
According to the evidence, the baby did not get adequate food or nutrition. She lost over 10 ounces in weight from the time she was born. Additionally, the infant suffered 13 rib fractures and clavicle fracture at various stages of healing and severe diaper rash. Neither parent had taken her for medical treatment or care. She was in the exclusive care of Jabore and Crowder.
Even though Jabore and Crowder had money and their home had plenty of food for older children and adults, their baby starved to death. The parents were providing a fraction of the recommended amount of formula in an effort to make it go further. Alternatively, when not giving formula, they were giving their newborn cow’s milk (powdered milk or evaporated milk), which is harmful to an infant’s digestive tract. Chemists with the U.S. Food and Drug Administration (FDA) tested a bottle found on the scene. Their testing revealed the bottle contained mostly water and had very little nutritional value.
The Office of the Chief Medical Examiner for the District of Columbia determined that the baby’s death was caused by malnutrition and hyponatremia[1], that the fractured ribs and clavicle fracture were contributing factors, and that the manner of death was homicide.
In announcing the plea, U.S. Attorney Phillips commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department, analysts from the Food and Drug Administration, and medical personnel from Children’s National Medical Center. He also expressed appreciation to the District of Columbia Office of the Chief Medical Examiner and the District of Columbia Department of Forensic Sciences for assistance in the investigation. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kelly Blakeney and Stephanie Gilbert; Criminal Investigators Tommy Miller, Durand Odom, Nelson Rhone, Sharon Johnson, Shannon Alexis, and Chris Brophy; Victim/Witness Advocate Marcia Rinker, Assistant U.S. Attorney Matthew Kahn, and Intern Emily Yu. Finally, he commended the work of Assistant U.S. Attorney Cynthia G. Wright, who is prosecuting the case.
[1] Hyponatremia is a condition that occurs when the level of sodium in your blood is abnormally low. Mayo Clinic Staff, Diseases and Conditions Hyponatremia, http://www.mayoclinic.org/diseases-conditions/hyponatremia/basics/definition/con-20031445 (last updated May 28, 2014).
Owner of New England Compounding Center Sentenced for Racketeering Leading to Nationwide Fungal Meningitis OutbreakRead the Press Release
The owner and head pharmacist of New England Compounding Center (NECC) was sentenced today to nine years in prison in connection with the 2012 nationwide fungal meningitis outbreak, the Department of Justice announced today.
Barry Cadden, 50, of Wrentham, Massachusetts, was sentenced by U.S. District Court Judge Richard G. Stearns to serve 108 months in prison and three years of supervised release, and forfeiture and restitution in an amount to be determined later. In March 2017, Cadden was convicted by a federal jury of racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead.
“Barry Cadden put profits ahead of patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Under his direction, employees assured customers that they were getting safe drugs, while Cadden ignored grave environmental failures, used expired active ingredients, and took innumerable other production shortcuts that led to numerous, entirely preventable deaths. As Cadden’s sentence reflects, the Justice Department's Consumer Protection Branch is committed to prosecuting those who put the health of Americans at risk.”
“Barry Cadden put profits over patients,” said Acting U.S. Attorney William D. Weinreb for the District of Massachusetts. “He used NECC to perpetrate a massive fraud that harmed hundreds of people. Mr. Cadden knew that he was running his business dishonestly, but he kept doing it anyway to make sure the payments kept rolling in. Now he will have to pay for his crimes.”
“Protecting Americans from unsafe and contaminated drugs is at the core of our mission,” said FDA Commissioner Scott Gottlieb, M.D. “Patients should not have to worry about the safety and sterility of the drugs they are prescribed. Since this tragedy, Congress has given the FDA important new authorities, and the agency has implemented key policies, all to provide a greater assurance of safety over compounded medicines. As part of these efforts, we will continue to hold accountable those who violate the law and put patients at risk.”
“Today, Barry Cadden was held responsible for one of the worst public health crises in this country’s history, and the lives of those impacted because of his greed, will never be the same,” said Special Agent in Charge Harold H. Shaw of the FBI, Boston Field Division. “This deadly outbreak was truly a life-changing event for hundreds of victims, and the FBI is grateful to have played a role, alongside our law enforcement partners, in bringing this man to justice.”
In 2012, 753 patients in 20 states were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate (MPA) manufactured by NECC. Of those 753 patients, the U.S. Centers for Disease Control and Prevention (CDC) reported that 64 patients in nine states died. The outbreak was the largest public health crisis ever caused by a pharmaceutical product.
Specifically, Cadden directed and authorized the shipping of contaminated MPA to NECC customers nationwide. In addition, he authorized the shipping of drugs before test results confirming their sterility were returned, never notified customers of nonsterile results, and compounded drugs with expired ingredients. Furthermore, certain batches of drugs were manufactured, in part, by an unlicensed pharmacy technician at NECC. Cadden also repeatedly took steps to shield NECC’s operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions. NECC even used fictional and celebrity names on fake prescriptions to dispense drugs, such as “Michael Jackson,” “Freddie Mae” and “Diana Ross.”
“Today’s sentencing demonstrates the ongoing commitment of the Defense Criminal Investigative Service (DCIS) to protect the integrity of TRICARE, the U.S. Defense Department's health care program,” stated Special Agent in Charge Leigh-Alistair Barzey of DCIS, Northeast Field Office. “DCIS will continue to work with its law enforcement partners to identify and investigate individuals who disregard pharmaceutical and drug regulations and endanger the health and safety of U.S. military members and their families.”
“No veterans receiving VA care were harmed by the fungal meningitis outbreak,” said Special Agent in Charge Donna L. Neves for the Department of Veterans Affairs, Office of Inspector General (VA-OIG). “The VA Office of Inspector General, together with its law enforcement partners, will persist in working drug adulteration cases to ensure veterans continue to receive safe and effective medications for the purpose of healing their ailments.”
“Today’s sentencing is an example of the dedicated work of law enforcement, along with the U.S. Attorney’s Office Health Care Fraud Unit in their steadfast pursuit of justice in the largest public health crisis caused by a pharmaceutical product in this nation’s history,” said Inspector in Charge Shelly Binkowski of the U.S. Postal Inspection Service. “The U.S. Postal Inspection Service will continue to be vigilant in investigating cases where the U.S. mail is used to put our nation’s citizens at risk.”
Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Weinreb’s Health Care Fraud Unit and Trial Attorney John W.M. Claud of the Justice Department’s Consumer Protection Branch prosecuted the case.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Massachusetts, visit its website at https://www.justice.gov/usao-ma.
Owner of New England Compounding Center Sentenced for Racketeering Leading to Nationwide Fungal Meningitis OutbreakRead the Press Release
BOSTON – Barry Cadden, the owner and head pharmacist of New England Compounding Center (NECC), was sentenced today in connection with the 2012 nationwide fungal meningitis outbreak.
Cadden, 50, of Wrentham, Mass., was sentenced by U.S. District Court Judge Richard G. Stearns to 108 months in prison and three years of supervised release, and forfeiture and restitution in an amount to be determined later. In March 2017, Cadden was convicted by a federal jury of racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead.
“Barry Cadden put profits over patients,” said Acting United States Attorney William D. Weinreb. “He used NECC to perpetrate a massive fraud that harmed hundreds of people. Mr. Cadden knew that he was running his business dishonestly, but he kept doing it anyway to make sure the payments kept rolling in. Now he will have to pay for his crimes.”
“Barry Cadden put profits ahead of patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Under his direction, employees assured customers that they were getting safe drugs, while Cadden ignored grave environmental failures, used expired active ingredients, and took innumerable other production shortcuts that led to numerous, entirely preventable deaths. As Cadden’s sentence reflects, the Justice Department's Consumer Protection Branch is committed to prosecuting those who put the health of Americans at risk.”
“Protecting Americans from unsafe and contaminated drugs is at the core of our mission. Patients should not have to worry about the safety and sterility of the drugs they are prescribed,” said FDA Commissioner Scott Gottlieb, M.D. “Since this tragedy, Congress has given the FDA important new authorities, and the agency has implemented key policies, all to provide a greater assurance of safety over compounded medicines. As part of these efforts, we will continue to hold accountable those who violate the law and put patients at risk.”
“Today, Barry Cadden was held responsible for one of the worst public health crises in this country’s history, and the lives of those impacted because of his greed, will never be the same,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “This deadly outbreak was truly a life-changing event for hundreds of victims, and the FBI is grateful to have played a role, alongside our law enforcement partners, in bringing this man to justice.”
In 2012, 753 patients in 20 states were diagnosed with a fungal infection after receiving injections of preservative-free methylprednisolone acetate (MPA) manufactured by NECC. Of those 753 patients, the U.S. Centers for Disease Control and Prevention (CDC) reported that 64 patients in nine states died. The outbreak was the largest public health crisis ever caused by a pharmaceutical product.
Specifically, Cadden directed and authorized the shipping of contaminated MPA to NECC customers nationwide. In addition, he authorized the shipping of drugs before test results confirming their sterility were returned, never notified customers of nonsterile results, and compounded drugs with expired ingredients. Furthermore, certain batches of drugs were manufactured, in part, by an unlicensed pharmacy technician at NECC. Cadden also repeatedly took steps to shield NECC’s operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions. NECC even used fictional and celebrity names on fake prescriptions to dispense drugs, such as “Michael Jackson,” “Freddie Mae” and “Diana Ross.”
“Today’s sentencing demonstrates the ongoing commitment of the Defense Criminal Investigative Service (DCIS) to protect the integrity of TRICARE, the U.S. Defense Department's health care program,” stated Special Agent in Charge Leigh-Alistair Barzey of DCIS, Northeast Field Office. “DCIS will continue to work with its law enforcement partners to identify and investigate individuals who disregard pharmaceutical and drug regulations and endanger the health and safety of U.S. military members and their families.”
“No veterans receiving VA care were harmed by the fungal meningitis outbreak,” said Special Agent in Charge Donna L. Neves for the Department of Veterans Affairs, Office of Inspector General. “The VA Office of Inspector General, together with its law enforcement partners, will persist in working drug adulteration cases to ensure veterans continue to receive safe and effective medications for the purpose of healing their ailments.”
“Today's sentencing is an example of the dedicated work of law enforcement, along with the U.S. Attorney’s Office Health Care Fraud Unit in their steadfast pursuit of justice in the largest public health crisis caused by a pharmaceutical product in this nation’s history,” said Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service. “The United States Postal Inspection Service will continue to be vigilant in investigating cases where the US Mail is used to put our nation’s citizens at risk.”
Acting U.S. Attorney Weinreb; Acting Assistant Attorney General Readler of the Justice Department’s Civil Division; FDA-OCI SAC Ebersole; FBI SAC Shaw; DCIS-OIG SAC Barzey; VA-OIG SAC Neves; and USPIS Inspector in Charge Binkowski, made the announcement today. Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Weinreb’s Health Care Fraud Unit and Trial Attorney John W.M. Claud of the Justice Department’s Consumer Protection Branch prosecuted the case.
Orlando Doctor and Infusion Clinic Owner Sentenced to 64 Months and 90 Months in Prison for Role in Medicare FraudRead the Press Release
An Orlando medical doctor and an infusion clinic owner were sentenced to 64 months in prison and two years supervised release, and 90 months and two years supervised release, respectively, today for their roles in a $13.7 million Medicare fraud conspiracy that involved submitting claims for expensive infusion-therapy drugs that were never purchased, never provided and not medically necessary.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephen Muldrow of the Middle District of Florida and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Dr. Miguel Burgos, 60, of Gotha, Florida, and Yosbel Marimon, 40, of Winter Park, Florida, were sentenced by U.S. District Judge Roy B. Dalton, Jr. of the Middle District of Florida. Judge Dalton also ordered the defendants to pay $9.8 million in restitution and to forfeit the same amount. As part of his plea, Marimon also consented to the forfeiture of real property valued at approximately $1.7 million. Burgos and Marimon each pleaded guilty to one count of conspiracy to commit health care fraud: Burgos on February 9, Marimon on February 16.
As part of his guilty plea, Burgos admitted that between July 2008 and September 2011, he was the medical director of four Orlando-area infusion clinics that received Medicare funds. Marimon admitted that he was one of the owners of the four clinics. Burgos and Marimon further admitted that they billed Medicare and private insurance companies for, among other things, expensive infusion therapy medications, including anticancer chemotherapeutic medications, despite never administering the drugs. Burgos and Marimon also admitted to submitted false claims to Medicare and private insurance companies for physical therapy conducted at the clinics, even though there was no licensed physical therapist on staff at the clinics, they admitted. In connection with the scheme, the defendants admitted that they billed Medicare and private insurers approximately $13.7 million, of which approximately $9.8 million was paid on the fraudulent claims.
This case was investigated by HHS-OIG. Fraud Section Trial Attorney Timothy Loper prosecuted the case. Assistant U.S. Attorney Nicole Andrejko also provided assistance regarding asset forfeiture issues in this case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,200 defendants who have collectively billed the Medicare program for more than $12 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Ohio woman convicted of wire fraudRead the Press Release
WHEELING, WEST VIRGINIA – An East Liverpool, Ohio woman was convicted today of stealing from her employer, Acting United States Attorney Betsy Steinfeld Jividen announced.
Danielle Varrati, age 37, pled guilty to one count of “Wire Fraud.” Varrati admitted to wiring approximately $176,000 from her place of employment to her personal bank account. The crime occurred in Hancock County.
Varrati faces up to 20 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Danae Demasi-Lemon prosecuted the case on behalf of the government. The Federal Bureau of Investigation investigated.Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Norman Orthopedic Practice Pays $1,537,796 to Resolve Allegations of False Claims Submitted to Federal and State Programs for Medical ServicesRead the Press Release
Oklahoma City, Oklahoma – Orthopedic AND Sports Medicine Center-Norman, P.C., and its physician-owners, Dr. Mark Moses, Dr. David Bobb, Dr. William Harris, Dr. Vytautus Ringus, Dr. Steven Schultz, and Dr. Brad Vogel (collectively "OSC") have paid $1,537,796 to settle civil claims stemming from allegations that they submitted false claims to Medicare, Medicaid, the Department of Veterans Affairs, and TRICARE.
OSC is a medical practice that provides general orthopedic medical services in Norman, Oklahoma. Following an internal review and audit, OSC discovered irregularities in prior billing processes and practices. In August of 2016, OSC proactively contacted the United States to voluntarily disclose the billing irregularities and documentation deficiencies they had identified. Thereafter, the United States investigated the disclosures and issues raised by OSC. Throughout the investigation, and to its credit, OSC provided cooperation and access to both privileged and non-privileged internal documentation, audit, and medical records, as well as access to their consultant statistician.
The voluntary disclosure and investigation revealed that the United States and State of Oklahoma have certain civil claims against OSC for false claims arising under Medicare, Medicaid, TRICARE, and the Veterans Health Administration. Specifically, from January 1, 2010, through December 31, 2015, OSC improperly billed the health care programs for the following: (i) physician extenders without documentation in progress notes to support billing, evaluation, and management codes; (ii) durable medical equipment, prosthetics, orthotics, and supplies ("DMEPOS") where bills had incorrect CPT codes, where documentation did not support proof of delivery of the DMEPOS, and where documentation did not support that the DMEPOS was ordered or medically necessary for the patient; (iii) evaluation and management codes related to hospital consults that were not supported by documentation in progress notes; and (iv) physical therapy where the documentation did not support CPT codes billed and or the number of physical therapy units billed.
In reaching this settlement, OSC did not admit liability, and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Office of Inspector General’s Office of Investigations and Office of Audit Services of the United States Department of Health and Human Services; the Oklahoma Attorney General’s Office’s Medicaid Fraud Control Unit; the United States Department of Veterans Affairs, Office of Inspector General; and the Defense Criminal Investigative Service. The case was prosecuted by First Assistant United States Attorney Robert J. Troester.
Narcotics Dealer Indicted for Murder and Racketeering in Brooklyn Cold CaseRead the Press Release
An indictment was unsealed today in United States District Court for the Eastern District of New York charging Tammeco Cargill, a member of the Nineties Crew, a Brooklyn-based street gang, with four counts, including murder in-aid-of-racketeering and the attempted murders of two bystanders who witnessed the murder, on July 30, 2007. As part of the same indictment, Cargill and his father, Winston Cargill, also known as “Pops,” are charged with racketeering and racketeering conspiracy relating to their involvement in narcotics trafficking and related crimes in Brooklyn between January 2003 and December 2014. The indictment was returned by a federal grand jury sitting in Brooklyn, New York, on June 21, 2017.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; James P. O’Neill, Commissioner, New York City Police Department (NYPD); and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York.
According to court filings, on the evening of July 30, 2007, Tammeco Cargill shot Robert Dixon on a crowded street in Brooklyn, killing Dixon, and then attempted to kill two nearby witnesses, injuring both. As alleged in the indictment, Tammeco Cargill and Winston Cargill were members of the Nineties Crew, a Brooklyn-based street gang, between January 2003 and December 2014, and engaged in narcotics trafficking and other crimes as part of that gang.
“As alleged, Tammeco Cargill murdered Robert Dixon, and attempted to kill two witnesses to that crime, approximately 10 years ago,” stated Acting United States Attorney Rohde. “Today’s indictment makes clear that the passage of time will not stop this Office and our law enforcement partners from pursuing those responsible for such violence in our streets.” Ms. Rohde expressed her grateful appreciation to the NYPD’s Cold Case Homicide Unit, the U.S. Drug Enforcement Administration’s New York Division, and the United States Marshal Service’s New York / New Jersey Regional Fugitive Task Force.
“In law enforcement, there is no rest until justice is served. And after ten years, a drug investigation paved a path that led to the arrest of Robert Dixon’s alleged murderer,” stated Special Agent-in-Charge Hunt. “I commend the agents, officers, marshals, and prosecutors who diligently investigated this cold case and put the person responsible for this heinous crime in jail.”
The defendant Tammeco Anthony Cargill is scheduled to be arraigned this afternoon before United States Magistrate Judge Steven M. Gold at the federal courthouse in Brooklyn. The defendant Winston Anthony Cargill, who is in custody on another matter, will be arraigned in the near future.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. Tammeco Cargill faces a sentence of life imprisonment if convicted. Winston Cargill faces a sentence of 20 years’ imprisonment if convicted.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nathan Reilly, Hiral Mehta, and Ryan Harris are in charge of the prosecution.
The Defendants:
TAMMECO ANTHONY CARGILL
Age: 34
Brooklyn, NY
WINSTON ANTHONY CARGILL
Age: 55
Brooklyn, NY
E.D.N.Y. Docket No. 17-CR-330 (ENV)
Nacogdoches County Man Sentenced to 20 Years for Drug TraffickingRead the Press Release
LUFKIN, Texas – A 24-year-old Nacogdoches, Texas man has been sentenced to 20 years in federal prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jon McNeely pleaded guilty on Mar. 23, 2017, to possession with intent to distribute methamphetamine and was sentenced to 240 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, McNeely was a major methamphetamine trafficker in Nacogdoches and Angelina counties. His drug trafficking organization was responsible for distributing over 15 kilograms of methamphetamine in the area. McNeely was indicted by a federal grand jury on Dec. 7, 2016, and charged with drug trafficking violations.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety – Criminal Investigation Division, Nacogdoches Police Department, Lufkin Police Department, Angelina County Sheriff’s Office and the Nacogdoches County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Paul Hable.
Modesto Man Sentenced to over 8 Years in Prison for Assaulting a Fresno Social Security GuardRead the Press Release
FRESNO, Calif. — Matthew Faron Blair, 33, of Modesto, was sentenced today to eight years and nine months in prison for forcibly assaulting a federal government contract security guard assigned to protect the Social Security Administration office in downtown Fresno, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on October 14, 2014, Blair went to the Social Security Administration office in Fresno to attempt to collect Supplemental Security Income (SSI) benefits. When advised that his benefits had stopped but could be renewed by completing additional paperwork, Blair became agitated and a security guard was called to escort him out of the office. As he was being escorted out of the office, Blair physically assaulted the guard. As a result of the assault, the guard suffered injury to the head and mouth, which required medical treatment.
In sentencing the defendant, Chief U.S. District Judge Lawrence J. O’Neill considered Blair’s lengthy criminal history.
This case was the product of an investigation by Federal Protective Services of the U.S. Department of Homeland Security. The Social Security Administration, Office of the Inspector General, California Department of Corrections and Rehabilitation, Division of Adult Parole Operations, and Stockton Police Department assisted in the investigation. Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Mexican National Arrested in New Mexico Following DEA Seizure of Nearly Five-Pounds of MethamphetamineRead the Press Release
ALBUQUERQUE – Ricardo Garcia-Solis, 29, a Mexican national illegally in the United States, made his initial appearance this morning in federal court in Albuquerque, N.M., on a methamphetamine trafficking charge. Garcia-Solis remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for tomorrow.
Garcia-Solis is charged in a criminal complaint with possession of methamphetamine with intent to distribute following his arrest on June 24, 2017, at the Greyhound Bus Station in Albuquerque. The DEA arrested Garcia-Solis after agents allegedly found approximately 2.2 kilograms (4.85 pounds) of methamphetamine in his baggage during a consensual search.
If convicted on the charge in the criminal complaint, Garcia-Solis faces a statutory mandatory minimum penalty of ten years to a maximum of life in prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Howard R. Thomas.
Methuen Man Sentenced to Eight Years in Prison for Trafficking and Firearms ChargesRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Juan Alexis Diaz Pena, 31, formerly of Methuen, Massachusetts, was sentenced to eight years in federal prison for conspiracy to distribute heroin, fentanyl and oxycodone and unlawful possession of a firearm in furtherance of a drug trafficking crime.
Statements in earlier court proceedings showed that from approximately the spring of 2014 through January of 2016, Pena and Martin Gonzalez Diaz, conspired to distribute quantities of heroin, fentanyl and oxycodone in the Lawrence, Massachusetts area to individuals in Massachusetts, who in turn sold the drugs to individuals in New Hampshire who were further distributing the drugs to customers in Rochester, New Hampshire.
As part of the investigation, members of the Drug Enforcement Administration (“DEA”) searched an apartment connected to Pena in January of 2016 and located quantities of cocaine and heroin, as well as items associated with drug trafficking. A loaded 9 mm semi-automatic handgun was recovered under a mattress in a bedroom in close proximity to where the drugs were located.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to address the significant presence of heroin and fentanyl in New Hampshire by continuing to target the drug trafficking organizations responsible for the importation of large quantities of these drugs into New Hampshire from source cities such as Lawrence, Massachusetts.” Acting U.S. Attorney Farley said.
Diaz Pena, who previously pleaded guilty, was sentenced to 36 months in prison on the drug trafficking charge and received a mandatory minimum term of imprisonment of five years on the firearms charge, which must be served consecutively to the sentence on the drug charge. Diaz Pena will likely be deported from the United States after completing his federal sentence.
Gonzalez Diaz, 34, formerly of Lawrence, Massachusetts, pleaded guilty to the drug conspiracy charge on August 17, 2016 and is scheduled to be sentenced on July 10, 2017.
The investigation was conducted by the United States Drug Enforcement Administration, Tactical Diversion Unit, Portsmouth, New Hampshire; the Rochester, New Hampshire Police Department and the Haverhill, MA Police Department. Assistant United States Attorneys Jennifer Cole Davis and Seth Aframe are prosecuting the case.
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Massachusetts Man Sentenced for Illegal Attempt to Buy Guns in HooksettRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that today Michael Younge, 27, formerly of Framingham and Boston, Massachusetts was sentenced to serve 60 months in federal prison for his role in an illegal effort to purchase two firearms.
According to court documents and statements made during the prosecution of the case, on July 15, 2015, Younge, and three friends, Rafael Soriano, Adrian Aleman and Tasha Gardner, visited a federally licensed firearms dealer in Hooksett, New Hampshire. Of the four, only Gardner was legally eligible to buy handguns. Younge and Soriano, with Aleman’s help, solicited Gardner to buy two hand guns on their behalf. Gardner agreed to assist and attempted to purchase the two guns for Younge and Soriano. In connection with that attempt, Gardner filled out a form legally required for all intrastate over-the-counter hand gun purchases on which she falsely certified that she was the “actual purchaser” of the two hand guns, when she was really attempting to buy them for Younge and Soriano. The store never transferred the firearms because its employees became suspicious and declined to complete the transaction.
Younge previously pleaded guilty to aiding and abetting the making of a false statement in connection with the attempted acquisition of a firearm. After serving his sentence, he will be on supervised release for a period of three years.
Two of the other individuals involved in the scheme, Gardner and Aleman, pleaded guilty and were sentenced to terms of probation. A warrant for Soriano’s arrest is outstanding.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Manchester Police Department. The case was prosecuted by Assistant United States Attorney Bill Morse.
This case was prosecuted as part of Project Safe Neighborhoods, a national initiative undertaken by the U.S. Department of Justice to reduce gun crime in America through, among other things, community outreach and vigorous prosecution of firearms offenses.
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Maryland man pleads guilty to making an illegal gunRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ian Nigel Page, 44, of Crownsville, Maryland, pled guilty to making an unlawful firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Page admitted to cutting the barrel of a Remmington 12-gauge shotgun to less than 18 inches in Preston County, West Virginia in May 2015.
Page pled guilty to one count of “Making an Unlawful Firearm.” He faces up to ten years in prison and a fine of up to $10,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Preston County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Maryland Man Sentenced to 12 Months in Prison for Stealing Works of Art and Selling Them in Southern New JerseyRead the Press Release
CAMDEN, N.J. – A Rock Hall, Maryland, man was sentenced today to 12 months in prison for stealing at least 40 pieces of art and bringing them to New Jersey to sell them, Acting U.S. Attorney William E. Fitzpatrick announced.
William C. Reed III, 42, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of interstate transportation of stolen property. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:Starting in June 2013, Reed worked as a caretaker for an individual in Rock Hall. Reed’s client was an art collector and dealer, who collected and maintained an eclectic collection of fine art by American and European artists. The collection included paintings, sculptures and etchings.
Between June 2014 and November 2014, Reed took various works of art from his client’s Rock Hall property without his permission and sold the art at various locations, including a pawn shop in Salem, New Jersey, and to an individual in Chestertown, Maryland.
In addition to the prison term, Judge Kugler sentenced Reed to three years of supervised release and ordered him to pay restitution of $92,240.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Art Crime Team, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the investigation leading to today’s sentencing. He also thanked the Rock Hall Police Department, under the direction of Chief Steven W. Moore, for its assistance in this case.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Lisa Lewis Esq., Camden
Marion County woman convicted of firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Fairmont, West Virginia woman was convicted today in federal court of a firearms charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Heather N. Windsor, age 22, pled guilty to one count of “False Statement During the Purchase of a Firearm.” Windsor admitted to making a false statement during the purchase of a 5.56 mm caliber pistol in July 2016 in Monongalia County.
Windsor faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Marietta Man Sentenced to 25 years in Prison for Robbing Six area Banks at GunpointRead the Press Release
ATLANTA - Kevin Ray Williamson has been sentenced to 25 years in federal prison for a string of six armed bank robberies that began on February 4, 2016, and continued until September 8, 2016.
“Williamson’s violent crime spree put citizens in our community on edge for months, especially bank employees just doing their jobs,” said U. S. Attorney John Horn. “Thankfully, an observant citizen brought his criminal conduct to an abrupt end.”
“The lengthy sentence handed down in federal court removes a violent serial offender from our streets. The details of the robberies committed by Mr. Williamson illustrate a total lack of regard for his victims, many of whom will, for many years, be dealing with the emotional trauma of having a gun pointed at them by an armed bank robber,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: On February 4, 2016, Williamson entered a Fifth Third Bank located in Marietta, Georgia. Williamson pointed a handgun at a bank teller and demanded money from her cash drawer. Bank surveillance video captured the robbery and showed Williamson carrying a messenger/computer type bag in which he demanded the money be placed. During this robbery, Williamson threatened to “empty the clip” of his gun if his demands were not met.
The defendant also committed the following robberies in the Metro-Atlanta area:
- On April 1, 2016, Williamson entered a Regions Bank in Marietta while armed with a handgun. Williamson approached the bank’s counter and pointed his handgun at the teller, opened his messenger bag and demanded cash. The teller complied with Williamson’s demands and handed cash to him. Williamson threatened to shoot the teller if he did not receive the money he demanded. The surveillance photographs from the bank security system show that the person who robbed the Regions Bank was the same person who robbed the Fifth Third Bank in February 2016.
- On May 25, 2016, Williamson entered a BB&T Bank in Marietta. Williamson approached a bank teller, displayed a black handgun, and demanded cash. The teller complied with the robber’s demands and gave cash to Williamson. This robbery was captured on surveillance video.
- On July 13, 2016, Williamson entered a PNC Bank in Marietta. Bank surveillance images show that as in the other robberies, Williamson was carrying a messenger/computer type bag and approached a bank teller, opened the bag and pointed a black handgun. The teller complied with Williamson’s demands and gave him cash.
- On August 22, 2016, Williamson entered Fidelity Bank located in Atlanta. Inside the bank, the robber pointed a gun at a teller, stated that he was robbing the bank and demanded money. The teller complied and gave Williamson cash.
- On September 8, 2016, Williamson entered Renasant Bank located in Johns Creek, Georgia. He displayed a handgun and demanded money from several drawers. Williamson told the teller that she would die if he did not receive more than $5,000.
Williamson wore mostly the same clothes and similar disguises at each bank - a beard, a khaki baseball cap, a dark colored suit, a dark green polo shirt, and sunglasses. His robbery spree ended when a witness at the September 2016 robbery saw him drive away in an Infiniti coupe that was traced back to him.
On February 10, 2017, Kevin Ray Williamson, 52, of Marietta, Georgia, pleaded guilty to six counts of armed bank robbery and one count of using a firearm in furtherance of a crime of violence. Williamson has been sentenced to 25 years in federal prison, and ordered to pay $30,867 in restitution.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Suzette A. Smikle prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man Pleads Guilty to Nine Robberies in Louisiana, Mississippi, and AlabamaRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CHRISTOPHER SIMMS, age 31, of New Orleans, pled guilty last week to a nine-count superseding Bill of Information for bank robbery and armed robbery, and a one-count Indictment for bank robbery.
According to the court documents, SIMMS robbed nine establishments between January 12, 2016 and February 8, 2016. SIMMS’S robberies included three McDonald’s Restaurant locations in New Orleans; a McDonald’s Restaurant in Kenner; a Dollar General store in Metairie; an Iberia Bank in Metairie; a Compass Bank in Mobile, Alabama; and a convenience store in Silver Creek Mississippi. SIMMS was charged with seven counts of Hobbs Act robbery, two counts of bank robbery, and one count of brandishing a firearm during a crime of violence.
As to each robbery count, SIMMS faces a maximum term of imprisonment of 20 years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment. As to the firearm count, SIMMS faces a consecutive minimum term of imprisonment of seven years up to a maximum term of imprisonment of life, a fine of $250,000, five years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Eldon E. Fallon set sentencing for September 21, 2017.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the New Orleans Police Department, the Jefferson Parish Sheriff’s Office, and the Lawrence County, Mississippi Sheriff’s Office in investigated this matter. Assistant United States Attorney Maria M. Carboni is in charge of the prosecution.
Louisville Resident Sentenced to 97 Months in Prison for Receiving Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Louisville man was sentenced Thursday, June 22, 2017, in United States District Court, by United States District Judge David J. Hale, to 97 months in prison followed by 15 years of supervised release, and ordered to pay a $5,000 fine for receiving child pornography announced United States Attorney John E. Kuhn, Jr.
According to a Plea Agreement, defendant John Treufeldt, 52, admitted to using an Internet account traced to his residence on Bridlevista Road, in Louisville, that connected to an online community of individuals who regularly sent and received child pornography via a website that operated on an anonymous online network. According to data obtained from logs monitored by law enforcement and other sources, a user with the user name "Elric" registered an account on February 25, 2015. The user "Elric" was logged into the website for a total of 20 hours, one minute and 10 seconds between the dates of December 4, 2014, and February 28, 2015. Treufeldt admitted to accessing videos and images that depicted and contained child pornography.
On March 15, 2016, law enforcement officials executed a federal Search Warrant
on Treufeldt’s residence in Louisville. Treufeldt admitted to using the screen name “Elric” on websites for the purpose of viewing child pornography. Later forensic examination of Treufeldt's
computer revealed the presence of thousands of images (still and video) depicting children engaged in sexually explicit behavior.
Assistant United States Attorney Jo E. Lawless prosecuted this case. The FBI investigated as part of a national operation – “Pacifier.”
***
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."
Lost Nation Man Sentenced for Theft of Government PropertyRead the Press Release
DAVENPORT, IA - On June 23, 2017, Brian Ronald Coatesheather Jean Reekr, age 39, of Lost Nation, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to five years probation for theft of government property and making false statements, announced United States Attorney Kevin E. VanderSchel. Coates was ordered to pay restitution of $14,235.55 to the United States Railroad Retirement Board and pay a $200 special assessment to the Crime Victims’ Fund.
On February 13, 2017, Coates pleaded guilty to theft of government property and false statements. The Office of Inspector General, Office of Investigations (OIG/OI), United States Railroad Retirement Board (RRB), initiated an investigation of Brian Coates on June 11, 2015. The RRB is an independent agency in the executive branch of the United States government responsible for administering retirement benefits to railroad workers. The investigation revealed Coates was earning wages in Iowa while collecting Unemployment Insurance (UI) benefits.
Coates had been employed at the Canadian Pacific Railroad, as a trainmaster, in Maquoketa, Iowa. He was discharged from employment on March 28, 2014. Coates’ railroad service enabled him to be eligible to collect railroad unemployment insurance after he was discharged. Coates worked at Pattison Sand Company on days he reported to the RRB he was unemployed. From May 24, 2014, through March 28, 2015, Coates submitted 23 false claims to the government to hide this employment, resulting in a theft of $14,235.55 in benefits.
The investigation was conducted by the Office of Inspector General, Office of Investigations, and the United States Railroad Retirement Board. 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].
Kingston Man Sentenced in Connection with Drug Distribution Causing DeathRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Kenneth Chapman (62), formerly of Kingston, New Hampshire, was sentenced to 144 months in federal prison for distributing fentanyl.
According to documents that were filed in United States District Court and statements at the sentencing proceeding, on June 12, 2016, Chapman sold a quantity of fentanyl to “M.S.”, a 31-year old male from Atkinson, New Hampshire. Because of a 911 call the following morning, emergency personnel responded to a residence in Atkinson, where they found M.S. dead from a suspected drug overdose. In the immediate vicinity of the body, law enforcement officers found a tied-off plastic bag that contained a white powdery substance that was determined to be fentanyl. An autopsy determined M.S.’ death was caused by acute fentanyl intoxication.
Chapman, who previously pleaded guilty, will be on supervised release for three years after serving his sentence.
“Opioid abuse is at epidemic levels in New Hampshire,” said Special Agent in Charge Michael J. Ferguson. “Fentanyl is causing overdose deaths across the Granite State, and DEA is committed to aggressively pursue anyone who distributes this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
“Fentanyl continues to be the cause of far too many deaths in the Granite State,” said Acting U.S. Attorney Farley. “The U.S. Attorney’s Office will aggressively investigate and prosecute individuals who sell this deadly drug. The law enforcement cooperation after this overdose death demonstrates our commitment to working with our law enforcement partners at the local, state and federal level to identify those who distribute deadly doses of drugs. While we support access to treatment for those who suffer from addiction, those who distribute these deadly drugs need to be held accountable for the substantial damage they are causing in our community.”
This case was investigated by Drug Enforcement Administration with assistance from Kingston and Atkinson Police Departments. The case was prosecuted by Assistant United States Attorney Jennifer Cole Davis.
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Kern County Man Pleads Guilty to Distributing over 30 Pounds of Methamphetamine in Tulare CountyRead the Press Release
FRESNO, Calif. — Daniel Rios, 33, of Kern County, pleaded guilty today to conspiracy to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 1, 2016, and June 29, 2016, Rios conspired with others in Earlimart to distribute methamphetamine. On June 14, 2016, he distributed approximately 14.7 kilograms of methamphetamine to a co-conspirator. When law enforcement agents arrested Rios and other co-conspirators, they seized approximately 14.7 kilograms of methamphetamine, three firearms, multiple magazines and ammunition, and over $16,000 in cash.
This case was the product of an investigation by the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Tulare County Sheriff’s Office, the Southern Tri-County Task Force of the Central Valley High Intensity Drug Trafficking Area (HIDTA), the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Motor Vehicles Investigations, the Kern County Probation Department, and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Rios is scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on December 18, 2017. Rios faces a maximum statutory penalty of life in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Kapolei Woman Indicted and Arrested on Federal Bank Fraud and Tax ChargesRead the Press Release
HONOLULU – Johanne P. Jarlego, 44, a resident of Kapolei, Hawaii, was arrested on June 26, 2017 as a result of a federal indictment charging her with bank fraud and tax offenses.
Elliot Enoki, Acting United States Attorney for the District of Hawaii, said that a federal grand jury indicted Jarlego on June 21, 2017. The indictment charged that, between June 2008 and February 2015, Jarlego executed a scheme to defraud American Savings Bank. According to the indictment, Jarlego worked for a Hawaii company that published magazines. Jarlego handled accounts receivables, and was responsible for collecting and depositing checks made payable to her employer’s magazines for the purchase of advertising space. According to the indictment, Jarlego filed business registration paperwork with the State of Hawaii Department of Commerce and Consumer Affairs, claiming she would do business in two trade names that were similar to the names of her employer’s magazines. Jarlego then opened two business accounts at American Savings Bank in those trade names.
The indictment alleges that Jarlego thereafter diverted checks made payable to those magazines, and deposited them into her two American Savings Bank accounts, falsely claiming that the payments were intended for her businesses. According to the indictment, between 2008 and 2014 Jarlego obtained approximately $3,833,640 by depositing her employer’s checks into the two American Savings Bank accounts, and then repaid $2,428,600 to conceal her activities. The indictment also alleges that Jarlego filed four false tax returns for calendar years 2011-2014, failing to report as income a total of $2,688,356 obtained from her bank fraud during those years.
The indictment charges Jarlego with 32 counts of bank fraud, and four counts of filing false tax returns. An indictment is merely an accusation, and Jarlego is presumed innocent until and unless proven guilty. If convicted of the charges, Jarlego faces up to thirty years’ of imprisonment, and a fine of up to $1,000,000 as to each of the bank fraud charges, and up to three years’ imprisonment, and a fine of up to $250,000 on each of the tax charges.
Following her arrest, Jarlego was brought to federal court, where she pled not guilty to all charges. She was released on $50,000 bail, and ordered to appear for a jury trial on August 29, 2017 before United States District Judge Leslie E. Kobayashi.
The case was investigated by Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, and the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Larry Tong.
Justice Department and State of Colorado File Complaint Against PDC Energy, Inc. for Alleged Clean Air Act ViolationsRead the Press Release
The Department of Justice, the Environmental Protection Agency (EPA) and the State of Colorado, on behalf of the Colorado Department of Public Health and Environment (CDPHE), today filed a civil complaint in federal court in Denver, Colorado, against PDC Energy, Inc. (PDC).
The complaint alleges violations of the Clean Air Act, the Colorado Air Pollution Prevention and Control Act, Colorado’s federally approved State Implementation Plan, and Colorado Air Quality Control Commission Regulation Number 7 (Regulation 7), for unlawful emissions of volatile organic compounds (VOC) from storage tanks that are, or until recently were, part of PDC’s oil and natural gas production system in the Denver-Julesburg Basin (D-J Basin) located in Adams and Weld Counties, Colorado.
“Violations of environmental law will be pursued and punished,” said Environmental Protection Agency Administrator Scott Pruitt. “We will work with our federal, state and local partners to punish those that violate the laws to the detriment of human health and the environment.”
“Reducing emissions from condensate storage tanks is a critical component of our efforts to bring the Denver Metro/North Front Range Area back into compliance with ground level ozone standards,” said Director of Environmental Programs Martha Rudolph of the Colorado Department of Public Health and Environment. “Colorado has been a leader in developing and implementing control requirements for these tanks and it is vitally important that we take the necessary steps to ensure that these requirements are uniformly followed.”
“Violating emissions standards endangers public health and can give violators an unfair advantage in the marketplace,” said Acting Assistant Attorney General Jeffrey H. Wood of the Department of Justice’s Environment and Natural Resources Division. “The United States will pursue all appropriate remedies against entities that violate our nation’s clean air laws.”
PDC owns or operates approximately 600 tank batteries in the D-J Basin that PDC has certified as being controlled to comply with Regulation 7’s system-wide VOC reduction requirements. The complaint alleges that at 86 tank batteries, and potentially hundreds more, PDC has violated numerous requirements in Regulation 7 intended to address VOC emissions from storage tanks. The complaint alleges that PDC failed to adequately design, operate and maintain vapor control systems on condensate storage tanks resulting in VOC emissions from pressure relief valves and openings on condensate storage tanks.
The complaint alleges that PDC’s failure to comply with these requirements has resulted in significant excess VOC emissions, a precursor to ground-level ozone. Ground-level ozone is a criteria pollutant, meaning that it causes or contributes to air pollution that may reasonably be anticipated to endanger public health or welfare. PDC operates in an area where air quality does not meet the National Ambient Air Quality Standards (NAAQS) for ground-level ozone.
These allegations are consistent with those set forth in the Compliance Advisory in December 2015 and the Notice of Violation in May 2017 that were both issued by CDPHE to PDC.
According to the complaint, following the issuance of the 2015 Compliance Advisory, CDPHE inspectors conducted additional inspections of PDC tank batteries and observed VOC emissions from several of the same tank batteries covered by the 2015 Compliance Advisory. CDPHE inspectors also observed VOC emissions from PDC tank batteries not covered by the 2015 Compliance Advisory and issued the 2017 Notice of Violation to PDC identifying violations of Regulation 7 at the other PDC tank batteries.
The civil complaint filed today seeks injunctive relief and the assessment of civil penalties. A civil complaint does not preclude the government from seeking other legal remedies.
The Clean Air Act is the comprehensive federal law that regulates air emissions of criteria pollutants and hazardous air pollutants from stationary and mobile sources to protect public health and public welfare.
Iowa Felon to Serve 57 Months in Federal Prison for Possessing Loaded Handguns after Traffic Stop in McLean CountyRead the Press Release
PEORIA, Ill. – Terrail Draper Lavar Dixon, 35, of Cedar Rapids, Iowa, has been sentenced to 57 months (4 years, 9 months) in federal prison for illegal possession of firearms by a felon during a traffic stop by Illinois State Police in McLean County. At the hearing, on June 21, U.S. District Judge Joe Billy McDade also ordered that Dixon remain on supervised release for three years following his release from prison.
Dixon pled guilty on Feb. 6, 2017. According to court documents, shortly after midnight on Nov. 22, 2016, an Illinois State Police trooper observed Dixon’s vehicle speeding and driving erratically on I-55 in McLean County. When the vehicle stopped, Dixon got out of the car and shouted, “arrest me, go ahead and arrest me.” When the trooper asked why, Dixon responded, “because I have guns in the car, man.” In the subsequent search of the vehicle, officers recovered a loaded Glock 17, .9 mm caliber semi-automatic handgun and a loaded Smith & Wesson MP40, .40 caliber handgun under the driver’s seat. At the time he possessed the guns, Dixon had prior felony convictions in Illinois and Indiana. Dixon has remained in the custody of law enforcement since his arrest.
At the sentencing hearing, the government submitted for exhibit, a transcript of the exchange between Dixon and the officer during the traffic stop. According to the transcript, Dixon admitted to the officer that the guns were “security,” and that Dixon thought about shooting the officer twice, “when I saw the lights. I was hoping you was just going to fly up and pass me.”
The charges were investigated by the Illinois State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted in the Peoria Division by Assistant U.S. Attorney Ronald L. Hanna.
Independence Man Sentenced to 12 Years for Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for distributing child pornography.
Eric A. Jackson, 53, of Independence, was sentenced by U.S. District Judge Stephen R. Bough to 12 years in federal prison without parole. The court also sentenced Jackson to supervised release for the rest of his life following incarceration.
Jackson, who pleaded guilty on Jan. 6, 2017, admitted that he sent images of child pornography to a 16-year-old female in Illinois. An aunt discovered the images on her niece’s cell phone and made a report to the Schuyler County, Ill., Sheriff’s Department. Among the pornographic images sent by Jackson was a 10-year-old female who was “hog tied.”
The 16-year-old to whom Jackson sent the child pornography images told investigators they had been communicating via social media for approximately a year, and had exchanged nude photos of each other.
Law enforcement officers executed a search warrant at Jackson’s residence and seized a Samsung tablet and a Samsung cell phone. Examiners found 1,028 photos and 130 videos of child pornography on the devices, including the recurring graphic depictions of the rape and sodomy of prepubescent girls, some as young as babies and toddlers, by adult men. Jackson was a prolific distributor of those disturbing images who actively shared them with many other child pornographers utilizing the Kik Messenger app. In online conversations with other child pornographers, according to court documents, Jackson bragged of his experience raping and molesting young children.
Examiners found evidence that Jackson had sent more than 70 attachments to the juvenile victim, which included both adult and child pornography. Examiners also found evidence that Jackson engaged in sexually graphic conversations through numerous text messages with other individuals, who represented themselves as minor females, including one who believed she was in a relationship with Jackson and who expressly shared a mutual desire to meet in person and engage in sexual contact.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI Child Exploitation Task Force and the Schuyler County, Ill., Sheriff’s 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."
Huntington woman sentenced to federal prison for heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman who was caught with heroin in 2016 was sentenced today to two and a half years in federal prison, announced United States Attorney Carol Casto. Ashley Dawn Smith, 24, previously pleaded guilty to possession with intent to distribute heroin.
On March 30, 2016, agents with the Huntington FBI Drug Task Force executed a search warrant at Smith’s residence located at 1814 7th Avenue in Huntington. When agents entered the residence, Smith concealed approximately 45 grams of heroin on her person. During the search, agents recovered a loaded 9mm pistol, digital scales, a drug press, and a magic bullet blender used to mix heroin. Smith was arrested based on a warrant pending from Putnam County and transported to the Huntington Police Department where she provided agents with the heroin that she had hidden. Smith admitted that the heroin was intended for distribution.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Homeowner Pleads Guilty to Defrauding Banks in ‘Shotgun’ Loan SchemeRead the Press Release
NEWARK, N.J. – A Ridgefield Park, New Jersey, man today admitted his role in a scheme to use false information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” Acting U.S. Attorney William E. Fitzpatrick announced.
Rafael Popoteur, 65, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiring to commit bank fraud between 2012 and 2014.
According to documents filed in the case and statements made in court:
From 2012 through January 2014, Popoteur, Simon Curanaj, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOCs) from banks on a residential property in New Jersey. To get the banks to extend lines of credit they would not have otherwise approved, Popoteur, Curanaj, and others transferred ownership of a Ridgefield Park property to Popoteur, who also lived at the property.
Popoteur, Curanaj, and others then applied for three HELOCs from multiple banks using the Ridgefield Park property as collateral. They hid from the lenders the fact that the property was either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender. The applications also falsely inflated Popoteur’s income. The equity in the property was far less than the amount of the HELOC loans Popoteur and others applied for.
The victim banks eventually issued loans to Popoteur in excess of $495,000. After the victim banks deposited money into Popoteur’s bank accounts, Popoteur disbursed portions of it to Curanaj and others. In 2014, Popoteur defaulted on all three HELOC loans.
The conspiracy to commit bank fraud count carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 10, 2017.
The charges against Curanaj are still pending and he is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Federal Finance Housing Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; and special agents of the FBI, under the direction Special Agent in Charge Timothy Gallagher of the Newark office, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.
Defense counsel: Jean Barrett Esq., Montclair
High Speed Flight from Border Patrol Checkpoint Leads to Stint in Federal PrisonRead the Press Release
LAREDO, Texas – A 35-year-old resident of San Antonio was ordered to federal prison following his conviction of fleeing or evading checkpoint operated by a federal law enforcement agency, announced Acting U.S. Attorney Abe Martinez and Acting Assistant Chief Patrol Agent Jose Martinez of the Laredo Sector Border Patrol. Mike Ramirez pleaded guilty Feb. 7, 2017.
On June 26, 2017, U.S. District Judge Marina Garcia Marmolejo ordered Ramirez to federal prison for 19 months. The sentence will be immediately followed by three years in federal prison.
“We remain steadfast in our commitment in securing the border and keeping the Laredo and surrounding communities safe by working with the Assistant United States Attorney’s Office to prosecute those who break the law,” said Acting Assistant Chief Patrol Agent Martinez.
On Aug. 10, 2016, Ramirez approached the Border Patrol Checkpoint on Interstate Highway 35, north of Laredo, as the driver of a 2007 Dodge Durango. Upon arrival, the inspecting agent noticed two sealed containers in the rear of the vehicle. A canine alerted to the presence of concealed humans and/or narcotics and the agent advised Ramirez to proceed to the secondary inspection area. Instead, Ramirez did not stop at secondary and fled north away from the checkpoint at a high rate of speed. Pursuing agents were unable to catch up to Ramirez nor were Laredo Police Department and Webb County Sheriff’s officers who had been notified.
He was later arrested several months later at his sister’s home in San Antonio.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigrations and Customs Enforcement’s Homeland Security Investigations (HSI) and BP conducted the investigation. Officers with the San Antonio Police Department and Bexar County Sheriff assisted in the apprehension. Assistant U.S. Attorney Christopher dos Santos prosecuted the case.Harrison County man convicted of drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia, man was convicted today of distribution of heroin near a playground, Acting United States Attorney Betsy Steinfeld Jividen announced.
Richard “Ricky” Joseph Malfregeot, age 28, pled guilty to one count of “Distribution of Heroin in Proximity of a Protected Location.” Malfregeot admitted to selling heroin within 1,000 feet of North View Park in Harrison County on March 2, 2016.
Malfregeot faces up to 40 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grape Street Crips Crack-Cocaine Wholesaler Sentenced to 11 Years in Prison for Racketeering, Drug Trafficking ChargesRead the Press Release
NEWARK, N.J. – A crack-cocaine wholesaler for the New Jersey set of the Grape Street Crips was sentenced today to 132 months in prison for his involvement in racketeering and drug trafficking conspiracies operating in Newark, Acting U.S. Attorney William E. Fitzpatrick announced.
James S. Gutierrez, a/k/a “Bad News,” 26, of Newark, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to Count 1 and Count 18 of a sixth superseding indictment charging him with racketeering conspiracy and conspiracy to distribute crack-cocaine. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark. Gutierrez and other members of the gang accepted orders for, and distributed, thousands of clips of crack-cocaine to other distributors, including other gang members.
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the area of 6th Avenue and North 5th Street in Newark used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
In addition to the prison term, Judge Arleo sentenced Gutierrez to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their assistance in this case.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Edward J. Plaza Esq., Little Silver, New Jersey
Gowanda Woman Charged with Lying to the FBIRead 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 Shania Martin, 21, of Gowanda, NY, was arrested and charged by criminal complaint with making a false statement. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that the defendant is the girlfriend of Shane Michael Aurand. Aurand was arrested in March 2015 and charged federally with producing and distributing child pornography. According to the complaint, Martin made false statements to special agents of the Federal Bureau of Investigation during the investigation of her boyfriend.
Martin made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and released.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Glenmont Woman Sentenced for Social Security FraudRead the Press Release
ALBANY, NEW YORK – Tammy A. Grumme, age 42, of Glenmont, New York, was sentenced today to time served (about 4 months in jail), to be followed by 3 years of supervised release, for stealing more than $78,000 in benefits from the Social Security Administration (SSA).
The announcement was made by United States Attorney Richard S. Hartunian and John F. Grasso, Special Agent in Charge of the SSA Office of the Inspector General, New York Field Office.
As part of her October 17, 2016 guilty plea, Grumme admitted that she provided false information to the SSA so that she could continue to receive Survivors Insurance benefits for herself and another person from 2011 through 2013. Grumme admitted that she submitted false forms to the SSA because she knew she would not be entitled to benefits if the information were accurate.
Senior United States District Judge Frederick J. Scullin Jr. also ordered Grumme to pay $78,258 in restitution.
This case was investigated by the SSA Office of the Inspector General and was prosecuted by Special Assistant U.S. Attorney Jason W. White.
Fresno Resident Sentenced for Manufacturing and Selling Fraudulent Identification DocumentsRead the Press Release
FRESNO, Calif. — Angelica Moreno Velasquez, 32, of Fresno, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to 15 months in prison for conspiracy to produce, transfer, possess, and sell false identification documents, U.S. Attorney Phillip A. Talbert announced. Moreno Velasquez was remanded into custody today after the sentence was imposed.
According to court documents, between June 2015 and June 2016, Moreno Velasquez conspired with others to sell fraudulent identification documents, including social security cards and alien registration receipt cards, to customers who placed orders and paid as much as $150 for a set of the fraudulent documents.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Motor Vehicles, Investigations Division. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
On June 16, 2016, Moreno Velasquez and five co-defendants were arrested for the scheme. In December 2016, Francisco Javier Hidalgo-Flores was sentenced to 15 months in prison; Veronica Rosales-Capitaine was sentenced to 14 months in prison; and Lizet Amairani Ramirez-Zazueta was sentenced to time served.
Charges are pending against the remaining co‑defendants and trial is scheduled to commence on December 5, 2017. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Vice President of National Construction Company Sentenced to 51 Months in PrisonRead the Press Release
JUNE 26, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4854
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Wendy Collins, age 46, of Woodbine, Maryland, to 51 months in prison followed by three years of supervised release for wire fraud, in connection with a scheme in which she stole more than $4.5 million from her employer. Judge Garbis also ordered Collins to pay forfeiture and restitution in the amount of $4,273,749.83.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division.
According to her plea agreement and court documents, Collins worked at a national construction company (the “Company”) with projects throughout the United States. In 2010, Collins was promoted to Vice President of Administration, and was responsible for managing the Company’s finances, including payroll, accounting, petty cash, and health reimbursement account (HRA,) and overseeing payments to the Company’s subcontractors and employees. Collins also had access to the Company’s bank and credit card accounts, including multiple American Express credit card accounts.
Collins admitted that from April 2012 through September 2016, she stole money from the Company in several different ways. Specifically, Collins caused unauthorized withdrawals from the Company’s petty cash account and HRA account transfers to her personal accounts, totaling at least $367,435.52; used $3,814,578.17 in Company’s funds to pay the credit card bills for herself, family members and others; and caused unauthorized increases to her company bonus checks, totaling at least $164,970. In addition, Collins approved invoices related to payments for construction work to be completed at her residence with Company funds, and signed a $25,000 check from the Company’s funds to be paid to a family member’s business.
In some instances, in order to facilitate and conceal the unauthorized credit card charges, Collins created fraudulent expenses and accounting entries in the Company’s financial ledgers and internal credit card reports, which she then paid with the Company’s funds. To further her scheme, Collins “linked” the personal credit card accounts held by her, her family, and her friends, to the Company’s bank accounts so that automatic payments would be made by the Company’s bank account toward the balances owed on Collins’ personal credit card accounts and those associated with her family and friends. Collins, her family members, and her friends charged luxury items that were paid for with Company funds, including: more than $90,000 at Del Frisco’s Steak House; more than $90,000 at Ethan Allen, Williams Sonoma and Pottery Barn; more than $55,000 for Washington Redskins tickets; more than $14,500 at a Napa, California Vineyard as well as $1,400 for beauty products at Estee Lauder and Kiehl’s. Also purchased with the credit cards were: a Porsche 911 Carrera, a Porsche Macan GTS, a Mercedes-Benz G550, a Dodge Ram Truck, a Mazda CX-3, a Mazda MX-5 race car, as well as a Haulmark Trailer, using the Company’s funds.
Further, Collins admitted that she forged the signature of her longtime employer, the President of the Company, multiple times from 2014 through 2016, in order to conceal and complete the unauthorized increases to her bonus checks.
Acting United States Attorney Stephen M. Schenning commended the FBI and the U.S. Postal Inspection Service for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Phil Selden and Evan T. Shea, who prosecuted the case.
Former Controller Sentenced to 18 Months in Prison for Defrauding Fitness Company and Retail StoreRead the Press Release
BIRMINGHAM – A federal judge today sentenced the former controller for a Birmingham-based fitness center franchise and a subsequent retail store to 1½ years in prison for defrauding the companies out of more than $100,000, announced Acting U.S. Attorney Robert O. Posey and FBI Acting Special Agent in Charge David W. Archey.
U.S. District Court Judge Virginia Emerson Hopkins sentenced REBECCA FRITH, also known as Rebecca Wilson, 44, on two counts of wire fraud. Frith pleaded guilty to the charges in March. As part of her sentence, she must pay $102,806 in restitution. Frith was living in Texas when she was indicted and arrested in December. She must report to prison Aug. 28.
For more than two years while Frith worked as controller at Iron Tribe Fitness between 2014 and 2016, she fraudulently charged personal expenses to the company’s corporate bank and credit card accounts. She established automatic drafts to pay personal monthly utility bills and used Iron Tribe credit cards to pay unauthorized personal expenses including furniture purchases, pet care, car payments, taxes, flights, hotels and vacations, according to court records.
Frith resigned from Iron Tribe in June 2016 and began work as controller at The Pants Store in July 2016. Within her first month at the retail store, she set up automatic drafts from the company’s business bank account to pay her $1,650 apartment rent.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark prosecuted.
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