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Thursday 22 June 2017
U.S. Attorney Richard S. Hartunian to Step DownRead the Press Release
Albany, New York – Richard S. Hartunian announced today that he will step down as United States Attorney for the Northern District of New York on June 30, 2017, after serving seven and one-half years in office and 20 years with the Department of Justice. Hartunian has informed President Trump and Attorney General Sessions of his decision. First Assistant United States Attorney Grant C. Jaquith will become Acting United States Attorney for the Northern District of New York on July 1, 2017.
“Serving as the United States Attorney for the Northern District of New York has been the highest professional privilege of my lifetime,” said United States Attorney Hartunian. “It has been an honor to work with the men and women of the Department of Justice and to witness the immeasurable commitment to justice of my law enforcement colleagues throughout the nation. I am especially grateful for the opportunity to lead an office of outstanding, dedicated professionals who work tirelessly, day in and day out, to keep our communities safe. I am proud of our achievements and confident that the good work of the U.S. Attorney’s Office will continue under the outstanding leadership of Acting United States Attorney Jaquith.”
Deputy Attorney General Rod J. Rosenstein said, “Throughout his service as a career prosecutor and as United States Attorney, Rick Hartunian has demonstrated a steadfast commitment to the cause of justice. He is an excellent colleague and a reliable friend. I thank Rick for his twenty years of distinguished federal service and wish him all the best in the next chapter of his career.”
Richard S. Hartunian took office as the 48th United States Attorney for the Northern District of New York on January 3, 2010. Hartunian also served as the Chair of the Attorney General’s Advisory Committee (AGAC) in 2016 and 2017, leading the sixteen U.S. Attorneys who are responsible for advising the Attorney General on policy, management and operational issues influencing all 94 federal districts nationwide. He was appointed to this committee in 2013, working with his U.S. Attorney colleagues from around the nation to fight violent crime, promote border security, improve police/community relations and address the nationwide heroin/opioid abuse epidemic.
In 2010, Hartunian was honored by the Armenian Bar Association as the first United States Attorney of Armenian descent.
As United States Attorney, Hartunian emphasized several key areas. Fighting terrorist activity has been his highest priority – indeed, his sister Lynne was killed in the 1988 terrorist bombing of Pan Am Flight 103 – and his tenure included the prosecution of Glendon Crawford and Eric Feight. Crawford, a Ku Klux Klan member and the first person to be convicted of attempting to possess and use a radiological dispersal device, was sentenced to be imprisoned for 30 years for his plot to build a lethal radiation device to kill Muslim Americans and others. Feight, his accomplice, pled guilty to providing material support to terrorism and was sentenced to over 8 years in prison.
Border security has been a related priority, and Hartunian co-chaired the AGAC’s Border and Immigration Subcommittee, leading the Northern Border United States Attorneys in their efforts to combat transnational crime and improve cooperation with Canadian prosecutors and law enforcement agencies. In support of that effort, Hartunian testified on behalf of DOJ in April 2015, before the U.S. Senate Homeland Security and Governmental Affairs Committee, about the state of northern border security.
As a long time narcotics prosecutor, both on the local and federal level, U.S. Attorney Hartunian emphasized aggressive narcotics and gang prosecutions, with cases against the V-Not and Bricktown gangs in Syracuse, the Uptown Gunners in Schenectady, and the Original Gangsta Killers in Albany. His office fought the scourge of synthetic drugs through impactful prosecutions in Zhang and Tebbetts, and he testified on behalf of DOJ, before the United States Senate Judiciary Committee in June 2016, about the dangers of synthetic drugs.
In combatting financial fraud, U.S. Attorney Hartunian’s office prosecuted multi-million dollar fraudsters like McGinn and Smith, Stehl and Rossignol, Valente, and Backis.
Public and professional corruption has remained a priority for the DOJ and the U.S. Attorney’s Office under Hartunian’s leadership, as demonstrated by the prosecutions of Assemblyman Scarborough and Town Supervisor Warmouth, Saratoga County Deputy Sheriff Fuller, and attorneys Stanley Cohen, David Ehrlich and Michael Bouchard.
U.S. Attorney Hartunian also sought justice for victims of violent crime. In cases involving terrible acts of child exploitation, his office brought impactful prosecutions and achieved lengthy sentences against Kopp and Oberst, Howells and Vaisey, sex traffickers Tilden and Davall, and Christopher and Amanda Jansen. Finally, his office’s prosecution of four individuals for lying in connection with the investigation of a deadly arson homicide, where three children and one adult were killed, and another child seriously burned, demonstrated U.S. Attorney Hartunian’s commitment to fighting for victims of violent crime. “I am confident that my office will continue to seek the full measure of justice for the victims of this terrible tragedy,” he said, “and our prosecutors and agents will not rest until that goal has been fully achieved.”
Hartunian thanked his staff for their impactful work, describing them as “an incredible collection of talented AUSAs and support professionals who work long hours, out of the limelight, to help crime victims and keep our communities safe.”
Native American issues have remained an important facet of the U.S. Attorney’s work during Hartunian’s tenure. He served on the AGAC’s Native American Issues Subcommittee and visited several tribes throughout the United States, while consulting regularly with the Oneida, Mohawk, Onondaga and Cayuga nation leadership in the Northern District. He appointed a full time tribal liaison – a first for the NDNY – and collaborated closely with tribal police agencies to address public safety needs in Indian Country. “I am proud to have been part of improved nation to nation relations over the past eight years, and I am confident that we will build upon our successes and continue our constructive work with tribal communities in an environment of mutual respect and friendship,” Hartunian said.
U.S. Attorney Hartunian placed great emphasis on strengthening the NDNY Civil Division, doubling the number of AUSAs handling civil matters and emphasizing affirmative civil enforcement cases in the areas of health care, defense procurement and the environment. He was a member of the AGAC’s Health Care and Environmental Issues Subcommittees, and instituted programs designed to maximize recoveries and inform industry representatives about the NDNY’s increased enforcement efforts. As a measure of the success of these efforts, the NDNY recovered the following amounts in civil and criminal penalties during his term: $30.8 million in FY 2012; $29.3 million in FY 2013; $44 million in FY 2014; $32 million in FY 2015; and $20 million in FY 2016. In civil health care fraud matters alone, the office has recovered more than $25 million during Hartunian’s tenure -- a dramatic increase over previous years – including multi-million dollar settlements with Endo Pharmaceuticals, St. Joseph’s Hospital and Open MRI. “I’m proud of the work of the NDNY Civil Division, which has become a nationwide model of efficiency and effectiveness,” Hartunian said.
Crime prevention has also been a priority during his tenure, including through the LEADership Project, a youth violence reduction program designed to help 5th grade students steer clear of gangs, drugs, violence, and vandalism; Youth Courts; Reentry Court; and community and interdisciplinary forums to address the epidemic of opioid and synthetic drug abuse. “We must take a comprehensive approach to fighting crime – aggressive enforcement, strong prevention efforts aimed at young people, and attention to the needs of re-entering persons – these are the successful building blocks for safer communities,” Hartunian noted.
Hartunian is a 1983 cum laude graduate of the College of Arts and Sciences at Georgetown University and a 1986 graduate of the Albany Law School. He was engaged in the general private practice of law at the firm of Devine, Piedmont and Rutnik in Albany from 1987 to 1990, and served as an Assistant District Attorney in Albany County from 1990 to 1997, where his work on narcotics and violent crime cases led to his designation as a Special Assistant U.S. Attorney in 1994. He became an Assistant United States Attorney in 1997, and went on to serve as the Northern District’s Narcotics Chief and Organized Crime Drug Enforcement Task Force Coordinator from 2006 until his appointment as U.S. Attorney in 2010. During his tenure as an Assistant United States Attorney, Hartunian successfully prosecuted numerous large drug, gang, and violent crime cases. He has received many awards for his work, including the Federal Bureau of Prisons General Counsel’s Exemplary Assistance Award, the Narcotics Enforcement Officers’ Association U.S. Department of Justice Award, various Organized Crime Drug Enforcement Task Force Regional Awards, and several case-related commendations.
Hartunian plans to enter private practice, with a further announcement to follow.
The Northern District of New York is comprised of thirty-two counties in upstate New York, covering an area of over 30,000 square miles that is home to about 3.4 million people. The District includes 310 miles of the U.S. border with Canada and the Cayuga, Mohawk, Oneida, and Onondaga Nations. The United States Attorney has offices in Syracuse, Albany, Binghamton, and Plattsburgh.
U.S. Attorney Charges Former Alabama Legislator in Bribery ConspiracyRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office today charged a former Alabama legislator with accepting bribes from a Birmingham lawyer and an Alabama coal company executive in exchange for advocating their employers’ opposition to EPA actions in North Birmingham, announced Acting U.S. Attorney Robert O. Posey, FBI Special Agent in Charge Roger Stanton and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge James E. Dorsey.
An information filed in U.S. District Court charges former state representative OLIVER L. ROBINSON JR. with conspiracy, bribery and honest services wire fraud for accepting a valuable contract between the Birmingham law firm Balch & Bingham and the Oliver Robinson Foundation to influence and reward Robinson for using his position as a member of the Alabama House of Representatives, vice-chairman of the Jefferson County Legislative Delegation, and an elected representative of citizens of Birmingham to pressure and advise public officials to oppose EPA’s prioritization and expansion of a North Birmingham EPA Superfund site.
“This case gets at the heart of public corruption in Alabama,” Posey said. “Well-funded special interests offer irresistible inducements to public officials. In exchange, the officials represent the interests of those who pay rather than the interests of those who vote. Here a public official betrayed his community to advocate for those who polluted their neighborhoods.”
“As a result of Robinson's greed, he sold his office and betrayed the public's trust for personal gain,” Stanton said. “Robinson’s case is a prime example of why public corruption remains the FBI's top criminal investigative priority, and why my office established a public corruption tip line. If you know something about a corrupt public official, call our tip line at 844-404-TIPS (8477), and be assured the FBI will act on your information.”
“Elected officials take an oath to serve the community,” Dorsey said. “Instead of helping the community, Robinson was enriching himself at the expense of the taxpayers who elected him to serve. IRS Criminal Investigation is committed to tracing financial transactions to ensure that those who engage in these illegal activities are brought to justice.”
Robinson, 57, of Birmingham, represented Alabama’s House District 58 from 1998 until he resigned Nov. 30, 2016. The information also includes fraud charges connected to campaign contributions and to contributions that Robinson solicited for events he sponsored. The final count in the information charges Robinson with tax evasion for the 2015 calendar year.
In conjunction with the information, the government also filed a plea agreement with Robinson. Along with agreeing to plead guilty to the charges, Robinson agrees never again to seek elected office and pledges to pay restitution and forfeiture.
EPA designated an area of North Birmingham, including the neighborhoods of Harriman Park, Fairmont and Collegeville, as a Superfund site after finding elevated levels of arsenic, lead and benzo(a)pyrene during soil sampling.
In September 2013, EPA notified five companies, including ABC Coke, a division of Drummond Company, that they could potentially be responsible for the pollution. A company determined to be responsible for pollution within the site, known as the 35th Avenue Superfund Site, “could have faced tens of millions of dollars in cleanup costs and fines,” the information states.
In July 2014, EPA began considering the petition of a Birmingham environmental advocacy group, GASP, to expand the Superfund site to the Tarrant and Inglenook neighborhoods. EPA granted that petition in October 2014 and contracted with the Alabama Department of Environmental Management to perform the preliminary assessment.
In September 2014, EPA proposed adding the Superfund site to its National Priorities List, signaling that it required priority attention. Placement on the priorities list would allow EPA to use the federal Superfund Trust Fund to conduct long-term cleanup at the site, provided the State of Alabama agreed to pay 10 percent of the costs, which could equal millions of dollars, according to the charges. EPA’s decision on priority listing for the site remained pending throughout the scheme.
Balch & Bingham represented Drummond and ABC Coke in relation to the 35th Avenue site. A partner at Balch & Bingham, identified in the charges as “Attorney #1,” coordinated the response to EPA’s actions on behalf of ABC Coke and Drummond Company. A Drummond Company executive, identified as “Drummond Employee #1,” was involved with the attorney in responding to EPA. They formed the Alliance for Jobs and the Economy as a tax-exempt corporation in 2015 to raise money to help fund their opposition to the EPA actions, according to the charges.
The strategy employed by the attorney and the Drummond executive focused on protecting ABC Coke and Drummond from the tremendous potential costs associated with being held responsible for pollution within the affected areas. They sought to accomplish this goal by working to prevent EPA from listing the 35th Avenue site on the National Priorities List and expanding the Superfund site into Tarrant and Inglenook.
The plan included advising residents of North Birmingham and public officials to oppose EPA’s actions. As part of the overall strategy, Balch & Bingham paid Robinson, through his non-profit foundation, to represent Balch & Bingham’s and its clients’ interests, exclusively, in matters related to EPA’s actions in North Birmingham. Over the course of the contract in 2015 and 2016, Balch & Bingham paid $360,000 to the foundation.
One of the first tasks assigned to Robinson under the contract was to appear before the Alabama Environmental Management Commission and the director of the Alabama Department of Environmental Management in February 2015 to advance Balch & Bingham’s and its clients’ opposition to the Superfund proposals. In that appearance, Robinson said he was “really here today to try to protect the residents of north Birmingham.” He said, “[T]he thing that gets me and what is in the process of hurting the residents in that area is that the EPA has included five other corporations in on this process, but there have been no reports stating that these individuals are culpable in any way. And where that hurts the residents is the fact that we will have decades of litigation that will occur because of these five companies being added.”
Robinson asked the AEMC to help narrow the list of potentially responsible parties if there were no reports or tests implicating the corporations. Concluding, Robinson told the AEMC that if the areas of North Birmingham are designated as a Superfund site or listed on the NPL, the residents are “considered to live in a dump and nothing can happen there until it’s either cleaned up and after that, it will take tremendous investment to get it to move forward.”
Robinson concealed from AEMC and the ADEM director that Balch & Bingham and Drummond were paying the Oliver Robinson Foundation to represent their interests exclusively.
Fraud charges brought against Robinson outside of the bribery conspiracy include two counts of wire fraud for spending $17,783 of campaign contributions on personal items unrelated to his legislative campaigns.
The final wire fraud count charges Robinson with soliciting money from corporations, representing he would use it to publish a magazine or to defray costs for an annual Partnering for Progress Business Conference or the annual Alabama Black Achievers Awards Gala, which the Oliver Robinson Foundation sponsored. Robinson spent at least $250,000 of those contributions on personal items unrelated to the magazine or the annual events, according to the charges.
The maximum penalty for conspiracy is five years imprisonment and a $250,000 fine. The maximum penalty for bribery is 10 years imprisonment and a $250,000 fine. The maximum penalty for each count of wire fraud is 20 years imprisonment and a $250,000 fine. The maximum penalty for tax evasion is five years imprisonment and a $100,000 fine, together with the costs of prosecution.
The FBI and IRS investigated the case, which Assistant U.S. Attorneys George Martin and Robin Beardsley Mark are prosecuting.
Two Sex Money Murder Gang Members Convicted in Connection with Murder of Rival Gang MemberRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that a federal jury late yesterday found COREY BROWN guilty of murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, racketeering conspiracy, and firearms charges, and found JOSNEL RODRIGUEZ guilty of conspiracy to commit murder in aid of racketeering and racketeering conspiracy.
Acting U.S. Attorney Joon H. Kim said: “As a unanimous jury found after trial, Corey Brown ordered the murder of Vincent Davis, a rival gang member, and Josnel Rodriguez participated in that murder. Sex Money Murder has terrorized residents of the Bronx with years of drug dealing, gang violence, and murder. This prosecution ensures that Brown and Rodriguez will no longer be able to do so. We will continue to be relentless in working to make our communities safer by investigating and prosecuting gang violence.”
According to the allegations in the Indictment and the evidence presented in court during the trial:
Between 2011 and 2016, BROWN and RODRIGUEZ were members of Sex Money Murder, a gang that operates mainly in and around several housing developments in the Bronx, New York. Sex Money Murder (“SMM”) members enriched themselves by selling drugs, such as crack cocaine, cocaine, heroin, and marijuana, and engaged in acts of violence, including murder. BROWN, who was a leader of Sex Money Murder, ordered the murder of fellow gang member Vincent Davis. On or about July 15, 2012, JOSNEL RODRIGUEZ and another SMM member participated in the murder of Vincent Davis, in the vicinity of 566 Pugsley Avenue, Bronx, New York, in order to maintain, and increase, their standing within SMM.
Mr. Kim thanked the Federal Bureau of Investigation and the New York City Police Department for their work on the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Margaret Graham, Brooke Cucinella, and Jordan Estes are in charge of the prosecution.
Two Individuals Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
SAN JUAN, P.R. - On June 20, 2017, a federal Grand Jury returned a 35-count indictment charging José Andrés Colón-Santos and Erika Yazmin Rosado-Matías with conspiracy to commit bank fraud, sixteen substantive counts of bank fraud, twelve counts of aggravated identity theft, and three counts of mail fraud. The indictment also includes two charges against Colón-Santos for extortion and one charge for tampering with a witness by intimidation, threats, corrupt persuasion, or misleading conduct. The United States Postal Inspection Service is in charge of the investigation.
According to the indictment, the purpose of the conspiracy was for the defendants to unlawfully enrich themselves by obtaining bank account information and personal identifying information (social security number, date of birth, address as well as credit/debit card and PIN numbers), and using that information to withdraw funds from the victims’ accounts for their own benefit and use. The ages of the victims range from 69 to 83 years old.
The indictment alleges that José Andrés Colón-Santos would obtain the names and telephone numbers of his victims from the telephone book. He identified himself as a bank fraud investigator and would then indicate to the victims that he was conducting an investigation into a suspected illegal purchase conducted at a local hardware store in excess of $1,500.00 using the victim’s bank account and bank account access devices. He would then request that the victim confirm the victim’s bank account number and personal identification information alleging that he needed that information to reverse or invalidate the suspect illegal transaction at the hardware store.
In several instances, Colón-Santos would then contact the bank to request a change of address in the victim’s account and that replacement cards be mailed to addresses controlled by him or his associates. Once Colón-Santos had received the replacement cards he would make ATM withdrawals, wire transfers, credit card payments, purchases and other transactions against the victims’ accounts. Whenever the bank account owner was a female, defendant Rosado-Matías would impersonate the bank account owner to request the change of address and replacement cards.
In other instances, Colón-Santos would instruct the victim to mail the alleged compromised credit and debit cards to addresses controlled by him or his associates, or to hand-deliver the cards to a messenger sent to the victim’s residence to pick up the card.
“Law enforcement will not stand by as criminals attempt to fleece a very vulnerable group of our community, our elders. These criminals are disrupting their lives by stealing their savings and destroying their credit through calculated and pervasive fraud schemes,” stated U.S. Attorney Rosa Emilia Rodríguez-Vélez. “I urge everyone to take steps to protect their personally identifiable information (PII) from criminals who seek illicit profits through stolen identity fraud.”
“The U.S. Postal Inspection Service has always being a strong defender of our most vulnerable citizens. We put a lot effort into fraud prevention measures; and when these criminals take advantage of our people, we work tirelessly to uncover them and bring them to justice, stated Raimundo Marrero, Postal Inspector Team Leader, Newark Division, San Juan Field Office.
If convicted, the defendants face a maximum possible sentence of incarceration of 30 years for bank fraud, and a consecutive two-year mandatory minimum sentence for aggravated identity theft. If convicted, Colón-Santos faces a maximum possible sentence of 20 years each for both the extortion and tampering with a witness charges.
The investigation was conducted by the United States Postal Inspection Service with the assistance of Puerto Rico Police Department and Homeland Security Investigations. The case is being prosecuted by AUSA Dennise N. Longo-Quiñones.
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Two Foreign Nationals Charged with Money LaunderingRead the Press Release
BOSTON - Two men were charged yesterday in federal court in Boston with money laundering in connection with an overseas undercover investigation.
Essam Sakkal, 39, a/k/a Issam Sakkal, a/k/a Esam Bzoul, a national of Cyprus, who is in U.S. custody, and his brother, Nabeel Sakkal, 24, a/k/a Traycho Marinov Mitchov, a/k/a Nabil Cieckal, a/k/a Nabil Imadein Bazul Siggal, a dual national of Cyprus and Jordan, who is a fugitive, were charged in an indictment unsealed yesterday with conspiracy to commit money laundering and money laundering.
According to court documents, on numerous occasions between 2009 and 2014, the Sakkals met with a United States undercover law enforcement agent posing as a member of a drug organization whose role it was to launder money from drug sales. It is alleged that the Sakkals laundered money given to them by the undercover agent, believing the money to be proceeds from drug sales.
The charge of conspiracy to commit money laundering and money laundering provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service's Criminal Investigations in Boston; made the announcement. Assistant U.S. Attorney John A. Capin of Weinreb’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Sentenced for Orchestrating a Nationwide Exchange Visitor Program Fraud SchemeRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama, U.S. Department of State Inspector General Steve A. Linick, and Homeland Security Special Agent in Charge Raymond R. Parmer, Jr. of the New Orleans Field Office announce that lead defendant David Marzano of Zephyr Cove, Nevada, has been sentenced to 26 months in federal prison. His prison sentence will be followed by 3 years of supervised release. Marzano was also ordered to pay restitution in the amount of $815,570.00. Marzano’s co-defendants, Laura Blair also of Zephyr Cove and Janece Burke of Deerfield, Illinois, were each sentenced to 5 years of probation. The court order Blair to pay $815,570.00, and Burke to pay $271,856.67 in restitution.
In 2002, David Marzano pled guilty in the U.S. District Court of the Northern District of Georgia to a conspiracy involving the unlawful smuggling of aliens. The conviction stemmed from a staffing agency Marzano operated in the Atlanta area that utilized an illegal alien workforce. For that offense, he was sentenced to 15 months in prison, followed by 3 years of supervised release.
After getting out of prison, Marzano began using the aliases “Paul Cohen” and “David Cole,” and started a series of new staffing agencies and shell companies based in Chicago, Illinois. At the time of his arrest Marzano was the CEO of Bullseye Jobs and the former Director of the predecessor company, Hospitality & Catering Management Services. Marzano’s adult daughter Janece Burke, a.k.a., “Paula Delaney,” “Paula Lawton,” “Jane Moore,” and “Danielle Young,” was the President of Bullseye, and Marzano’s wife Laura Blair, a.k.a., “Jean Cox,” was the company’s Marketing Director. Together, and with the assistance of others, these defendants engaged in a massive, nationwide fraud scheme designed to unlawfully profit from U.S. Department of State Exchange Visitor Programs.
As was set out in the Indictment, in 1961, Congress passed the Mutual Educational and Cultural Exchange Act of 1961. The purpose of the Act was to increase mutual understanding between people in the United States and people from other countries by means of educational and cultural exchanges that assist the U.S. Department of State in furthering the foreign policy objectives of the United States.
These educational and cultural exchanges are administered by the U.S. Department of State’s Exchange Visitor Program and governed by specific regulations set out in 22 C.F.R. Part 62. Annually, more than 275,000 foreign nationals from all over the world enter the United States through one of the Exchange Visitor Programs. These programs include the Summer Work & Travel Program (“SWT Program”) and the Intern & Training Program (“I/T Program”).Unlike the SWT Program, the I/T Program is limited to training, and is not an employment program. As such, regulations specifically prohibit employers from using I/T Program participants as substitutes for ordinary employment or work purposes. Furthermore, staffing agencies are expressly prohibited from being involved in the I/T Program.
Since the defendants were operating several staffing agencies, the only way to get organizations to sponsor I/T Program participants of the defendants’ companies was to fraudulently misrepresent the true nature of their businesses. This was primarily done via e-mail between the defendants — who operated under numerous aliases— and sponsor organizations. In addition, the defendants created various shell companies with names that closely resembled well-known corporations. One such shell company was Crowne Partnership Group, which, despite representations made by the defendants, had no association with Crowne Plaza Hotels.
As a result of their fraud scheme, more than 200 foreign nationals came to the United States believing that they would be part of the Department of State’s I/T Program. As the Court heard from victims who testified at the hearing or who submitted victim impact letters, the thousands of dollars necessary to enroll in the program and travel to the United States was a major hardship for many of the foreign victims. They believed the investment was worth it as the training received through the I/T Program would allow them to return to their home country with much better prospects for being hired as an upper-level executive in foreign-based U.S. companies. However, rather than receiving the high-level managerial training they expected, the victims were pawned off as cheap foreign labor to restaurants, hotels, and theme parks. The victims were also required to live in housing arranged by the defendants’ companies. The businesses where the victims worked paid Marzano directly, but the victims only received a small portion of the wages they earned.
On May 12, 2015, David Marzano and Laura Blair were arrested at Tampa International Airport. Janece Burke was arrested that same morning in Deerfield, Illinois. Contemporaneous with the arrests, multiple search warrants were executed in Florida and Nevada.On June 22, 2015, Janece Burke pled guilty to conspiring with Marzano and Blair to commit wire and mail fraud. Thereafter, Burke began cooperating with the United States. Laura Blair pled guilty to the conspiracy charge on April 4, 2016. That same day, David Marzano pled guilty to the conspiracy charge, as well as a charge for substantive wire fraud, and began cooperating with the United States as well. The extensive cooperation by both Burke and Marzano has led to various administrative and criminal actions related to other fraud schemes within the I/T Program and other State Department initiatives.
Acting United States Attorney Steve Butler lauded the extensive partnership between the Department of State Office of Inspector General and the Mobile Office of Homeland Security Investigations in shutting down this major fraud scheme. “The defendants falsely and fraudulently misrepresented the nature of their businesses, which caused real harm to over two hundred victims across the world,” said Acting U.S. Attorney Butler. “These were vulnerable victims who believed they were coming to the United States to receive high-level training, but who were unfortunately subject to a cruel bait-and-switch. My office will continue to aggressively prosecute those who seek to defraud vulnerable victims.”
Inspector General Steve A. Linick commended the work of those involved in investigating the case from the Office of Inspector General for the U.S. Department of State. “We are proud to have played a key role in investigating and bringing to justice those who exploit U.S. Department of State programs, such as these, for personal gain.”
Homeland Security Investigations Special Agent in Charge Ray Parmer stated, “Mail and wire fraud can have a devastating impact on victims. In this case, people expected to come to this country legally and get training and experience. However, the greed of these three individuals turned trusting people into cheap foreign labor. HSI will continue to work with our partner law enforcement agencies to ensure we bring those guilty of committing these crimes to justice.” The New Orleans Field Office, run by Special Agent in Charge Parmer, is responsible for criminal investigations in Alabama, Arkansas, Louisiana, Mississippi, and Tennessee.
This matter was jointly investigated by the U.S. Department of State – Office of Inspector General and HSI-Mobile. The case was prosecuted by Assistant U.S. Attorney Christopher J. Bodnar of the U.S. Attorney’s Office for the Southern District of Alabama.
Three Belmont County residents indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Two Bridgeport, Ohio residents were arrested today after being indicted on drug charges by a federal grand jury in Wheeling on June 6, 2017, Acting United States Attorney Betsy Steinfeld Jividen announced.
Joseph Ivan Burt, age 39, and Faith Diane Leasure, age 22, were arrested on charges related to the distribution of cocaine. Both are charged with one count of “Conspiracy to Distribute Crack Cocaine,” one count of “Aiding and Abetting the Distribution of Crack Cocaine,” one count of “Aiding and Abetting Distribution of Crack Cocaine,” and one count of “Aiding and Abetting Distribution of Crack Cocaine within 1,000 feet of a school.” Burt is also facing one count of “Distribution of Crack Cocaine within 1,000 feet of a school,” one count of “Unlawful Use of a Communication Facility,” and an additional count of “Aiding and Abetting Distribution of Crack Cocaine within 1,000 feet of a school.”
Also named in the indictment is Phillip Weir, of Bridgeport, Ohio, age 32. Weir is charged with one count of “Conspiracy to Distribute Crack Cocaine,” and one count of “Aiding and Abetting Distribution of Crack Cocaine within 1,000 feet of a school.”The crimes are alleged to have occurred from August to September of 2016 in Ohio County.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Ohio Valley Drugs & Violent Crime Task Force, a HIDTA-funded initiative, is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U. S. Magistrate Judge James E. Seibert presided.
Taunton Woman Pleads Guilty to Social Security and Housing Assistance FraudRead the Press Release
BOSTON – A Taunton woman pleaded guilty in federal court in Boston today to concealing information and making false statements in order to receive Social Security disability benefits and Section 8 housing assistance to which she was not entitled.
Marisha Ebanks, 40, pleaded guilty to one count of Supplemental Security Income fraud and one count of making false statements. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Sept. 20, 2017.
In 1999, Ebanks began receiving housing assistance payments from the United States Department of Housing and Urban Development’s Section 8 Housing Choice Voucher Program; and in January 2003, she began receiving Supplemental Security Income (SSI) disability benefits from the Social Security Administration (SSA). Eligibility for both Section 8 housing and SSI is based, in part, on the applicant having limited income and resources. In assessing a married individual’s eligibility for these benefits, the income of the applicant’s spouse is considered if they live together.
When Ebanks applied for SSI benefits in September 2002, she truthfully reported that she was married, but falsely stated that she and her husband had separated years prior, when, in fact, she and her husband were living together with their two children. SSA sent Ebanks annual reminders of her obligation to report any changes in her household composition, including any change in income of any household member, but Ebanks concealed her husband’s true residence. During an eligibility redetermination with SSA in October 2010, Ebanks continued to report that she was married, but falsely stated her husband was not a member of her household.
Similarly, in May 2002, in order to continue receiving Section 8 housing, Ebanks falsely reported that her husband had moved out of her residence. She repeatedly omitted her husband from the list of household members on recertification questionnaires in subsequent years, and she falsely stated that no member of her family received income from any employment, even though her husband was working.
Ebanks fraudulently received approximately $70,655 in disability benefits and over $120,000 in Section 8 housing assistance benefits.
Acting United States Attorney William D. Weinreb; Adam Schneider, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Weinreb’s Major Crimes Unit is prosecuting the case.
Taunton Man Sentenced for Heroin TraffickingRead the Press Release
BOSTON – A Taunton man was sentenced today in federal court in Boston for his role in a heroin and fentanyl trafficking operation in Taunton and surrounding communities.
Jorge Vega, 42, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 77 months in prison and three years of supervised release. In January 2017, Vega pleaded guilty to conspiracy to possess with the intent to distribute and distribution of heroin and fentanyl.
In October 2015, Vega was arrested and charged along with 24 others in connection with a heroin trafficking ring operating in southeastern Massachusetts. An additional defendant was added in a superseding indictment filed on April 20, 2016. The charges are the result of a 15-month investigation into heroin and fentanyl trafficking in Marshfield, Fall River, Taunton, and surrounding communities, which have seen a steep increase in overdoses and related deaths since 2013. Vega bought heroin on many occasions both for his own use and to sell to others.
Twenty-two of the 26 defendants charged in the superseding indictment have pleaded guilty and 13, including Vega, have been sentenced.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Thomas E. Kanwit and Karen Beausey of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
St. Clair County Woman Indicted for Arson OffenseRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that a St. Clair County woman was indicted on June 20, 2017 for an arson offense.
Lori M. Jones, 49, of East St. Louis, was charged in a one-count indictment charging arson. The indictment alleges that on May 31, 2016, Jones maliciously damaged by fire the Cahokia Nursing and Rehabilitation Center in Cahokia, IL. Jones made her initial appearance in federal court on June 22, 2017. At that hearing, Jones was released on bond pending a July 31, 2017 jury trial. Special conditions of Jones’s bond are that she be placed on electronic monitoring and that she cannot be employed by a nursing home, assisted care facility or in any capacity in which she assists or takes care of other individuals.
The arson offense carries a mandatory minimum penalty of five years imprisonment up to a maximum of 20 years imprisonment, to be followed by up to three years of supervised release and a fine up to $250,000.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco and Firearms with assistance from the Office of the Illinois State Fire Marshal.
Squirrel Hill Restaurant and Owner Sentenced for Unfair Labor PracticesRead the Press Release
PITTSBURGH – Sun Penang, Inc., a Pittsburgh restaurant and itsOwner have been sentenced in federal court on a conviction of falsifying, concealing, or covering up by trick, scheme, or device a material fact, and, on behalf of the business, on willfully violating the Fair Labor Standard Act, Acting United States Attorney Soo C. Song announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Hsiao Yen Wu, a/k/a Sophia Wu, age 40, of Pittsburgh and Sun Penang, Inc., located at 5829 Forbes Avenue, Pittsburgh. Wu was sentenced to three years probation to include eight months of home detention. Both Wu and Sun Penang were ordered to pay restitution of $35,388.97 joint and severally.
According to information presented to the court, after Sun Penang had agreed to pay back wage payments, Wu represented that Sun Penang had issued all back wage payments checks and provided faxed copies of these checks to the Department of Labor. However, Wu knew that the employees were not paid back wage payments because these employees were required either to deposit the checks into Wu's personal bank account or to work without pay until Sun Penang recouped the wages. Sun Penang failed to pay minimum wages and overtime pay to their employees from January 1, 2013 to December 31, 2013.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Department of Labor, Office of Inspector General and the Wage and Hour Division for the investigation leading to the successful prosecution of Wu and Sun Penang, Inc.
Six Co-Conspirators of Loren Toelle Drug Trafficking Organization Sentenced to PrisonRead the Press Release
COEUR D'ALENE – Six co-conspirators of the Loren Toelle drug trafficking organization were sentenced Tuesday and Wednesday to prison on drug trafficking and money laundering charges, Acting U.S. Attorney Rafael Gonzalez announced. The sentences were part of a significant drug investigation and prosecution under the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The sentences were handed down by Chief U.S. District Judge B. Lynn Winmill.
Co-conspirators William Jaquett Barker, 31, of Williston, North Dakota; Sean Lee Jackson, 28, of Las Vegas, Nevada; Steven Wayne Jackson, 31, of Las Vegas, Nevada; Kristin Rene Wilson, 28, of Riverside, California; and Augustine Jackson, 32, of Williston, North Dakota, were sentenced on their guilty pleas to conspiracy to distribute controlled substances. Sean Jackson and Kristin Wilson also pled guilty to conspiracy to launder money. Sherlann Simon, 34, of North Las Vegas, Nevada, was sentenced for her guilty plea to conspiracy to launder money.
Barker was sentenced to 24 months in prison, three years supervised release and ordered a $2,000 fine. Judge Winmill also ordered Barker to forfeit $100,000 in cash proceeds. According to his plea agreement, Barker admitted that he and others agreed to distribute controlled substances in Idaho and elsewhere. Although the conspiracy lasted from at least 2009 until the arrests on February 4, 2016, Barker did not join the conspiracy until 2015. Barker maintained a residence in North Dakota where a member of the conspiracy came to sell heroin and oxycodone. Barker also admitted that he helped conceal, transport and sell controlled substances during his involvement.
Sean Jackson, Loren Toelle’s son, was sentenced to 96 months in prison, four years of supervised release and ordered to forfeit $555,000 in drug profits and $51,656.10 for his part in the money laundering conspiracy. According to his plea agreement, Jackson was an integral member of the DTO from 2009 until his arrest in 2016. He admitted that he and others agreed to distribute controlled substances in Idaho and elsewhere. Jackson also admitted helping launder proceeds for the DTO by depositing drug proceeds into bank accounts, as well as Money Tree or MoneyGram accounts, in an attempt to hide the money or to make it appear it was from a legitimate source.
Augustine Jackson, Loren Toelle’s daughter, was sentenced to 80 months in prison, three years supervised release and ordered to forfeit $154,089.03 in cash proceeds. According to her plea agreement, Augustine Jackson was a member of the DTO from 2009 until her arrest in 2016. She admitted that she and others agreed to distribute controlled substances in Idaho and elsewhere.
Sherlann Simon, another daughter of Loren Toelle, was sentenced to 15 months in prison, three years supervised release and ordered to forfeit $462,639.17 in cash proceeds. According to her plea agreement, Simon became a member of the DTO in 2010 and helped launder money for the DTO by depositing money she knew was from illegal drug sales into her personal and business accounts to conceal its true source.
Steven Jackson, another son of Loren Toelle, was sentenced to 41 months in prison, three years supervised release and ordered to forfeit $355,000 in cash proceeds. According to his plea agreement, Jackson became a member of DTO around 2010 until his arrest in 2016. He admitted that he and others agreed to distribute controlled substances in Idaho and elsewhere.
Kristin Wilson was sentenced to 108 months in prison, four years supervised release and ordered to forfeit $434,305.00 of drug profits and $154,089.03 for her part in the money laundering conspiracy. According to her plea agreement, Wilson was a member of the DTO from 2009 until her arrest in 2016. She admitted that she agreed to distribute controlled substances in Idaho and elsewhere, and helped launder proceeds for the DTO by depositing drug proceeds into bank accounts, as well as Money Tree or MoneyGram accounts, in an attempt to hide the money or to make it appear it was from a legitimate source.
Loren Toelle, the organizer and leader of the organization, pleaded guilty to conspiracy to distribute controlled substances and launder money. On May 2, 2017, she was sentenced to 212 months in prison.
The case is a result of a joint investigation and cooperative law enforcement efforts of the Organized Crime and Drug Enforcement Task Force. The OCDETF program is a federal multi-agency, multi-jurisdiction task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations.
Several federal, state and local agencies participated in the investigation and prosecution: the FBI North Idaho Violent Crime Task Force, consisting of the FBI, the Coeur d’Alene Police Department, the Kootenai County Sheriff’s Office, and the Post Falls Police Department; the Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigation (IRS-CI), the U.S. Marshals Service and the Department of Homeland Security. Other agencies involved included the Williston, North Dakota, Police Department; the United States Attorney’s Offices in the Districts of Nevada and North Dakota; the Williams County Sheriff’s Office in South Dakota; the U.S. Border Patrol; the North Dakota Bureau of Criminal Investigation; the Northwest Narcotics Task Force; and the Washington State Patrol.
Sex Offender Sentenced to 16 Years in Prison for Child Enticement OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRYAN WHITE, 40, of New London, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 198 months of imprisonment, followed by a lifetime of supervised release, for attempting to entice a minor to engage in illegal sexual activity.
According to court documents and statements made in court, in June and July 2016, WHITE used a cellular phone and Chat Bazaar, a video chatting service, to communicate with a 13-year-old female in New Jersey. In text messages, the minor victim repeatedly told WHITE her age. WHITE responded by saying that “age is just a number to deny u things” and that he is a “child lover.” The text exchanges with the victim were sexually explicit, and WHITE requested that the victim travel from New Jersey to Connecticut to engage in sexual activity with him.
On June 16, 2016, the victim’s father discovered the texts with WHITE on the victim’s phone and reported it to local police. A law enforcement officer then assumed the minor’s identity to continue to correspond with WHITE. Between June 29 and July 5, 2016, WHITE repeatedly asked the undercover officer, posing as the victim, to come to Connecticut and described the sexual activity he wanted to engage in with the victim. The undercover officer agreed to take a bus from New Jersey to Connecticut. WHITE explained that he would be at the bus terminal wearing a yellow “MICHIGAN” shirt and that he would bring condoms and pina colada wine coolers to the bus station.
On July 5, 2016, WHITE was arrested at the New London bus station at the designated time wearing the clothes that he said he would be wearing. At the time of his arrest, WHITE was in possession of a condom and two bottles of alcoholic beverages.
In 2004, WHITE was convicted in state court of risk of injury based on his conduct in approaching two children who were walking to their aunt’s house in Waterbury and asking them if he could see one of them naked. A few months later, during his participation in a sex offender evaluation, WHITE disclosed that he sexually assaulted a nine-year-old boy on multiple occasions over a four-month period. He was convicted of sexual assault in the first degree and received a sentence of 12 years of incarceration. WHITE was released from prison in November 2015 and, from December 10, 2015 until April 4, 2016, he resided at an inpatient sex offender treatment facility. He was then transferred to a residential program and, while under court supervision, began communicating with the minor victim.
WHITE has been detained since his arrest on July 5, 2016. On February 22, 2017, he pleaded guilty to one count of attempted enticement of a minor to engage in unlawful sexual activity.
This matter was investigated by Homeland Security Investigations, the Burlington County (N.J.) Prosecutor’s Office, the Florence (N.J.) Township Police Department, the New London Police Department and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Seven Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging MARTIN CABALLERO-CABALLERO, age 59, of Mexico, FEDERICO ESPINDOLA-PINEDA, age 42, of Mexico, JOSE HUMBERTO ESPINOZA-EGUIA, age 36, of Mexico, RICARDO GOMEZ-GONZALEZ, age 34, of Mexico, ESNANONAM MATUTE-MATUTE, age 29, of Honduras, ROSALINDO RIOS-MARTINEZ, age 35, of Mexico, and LUIS ROSAS, age 38, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, ESPINDOLA-PINEDA, ESPINOZA-EGUIA, and MATUTE-MATUTE, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
CABALLERO-CABALLERO and RIOS-MARTINEZ are alleged to have been previously deported subsequent to a felony conviction (illegal reentry of a deported alien, and trafficking cocaine, respectively). Therefore, if convicted, they each would face a maximum term of imprisonment of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
GOMEZ-GONZALEZ and ROSAS are alleged to have been previously deported subsequent to an aggravated felony conviction (possession with intent to distribute marijuana, and conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, respectively). Therefore, if convicted, they each would face a maximum term of imprisonment of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security.
Sentencings for June 16 - June 22, 2017Read the Press Release
Jose Chavez-Barragan, 29, of Cotija, Michoacan, Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 22, 2017, for illegal re-entry of a previously deported alien into the United States. Chavez-Barragan was arrested in Cheyenne, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Leonardo Leon-Jaime, 34, of Cueramero, Guanajuato, Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on June 22, 2017, for illegal re-entry of a previously deported alien into the United States. Leon-Jaime was arrested in Cheyenne, Wyoming. He received nine months of imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Edwin de Jesus Roque-Toledo, 28, of Pijijapan, Chiapas, Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 22, 2017, for illegal re-entry of a previously deported alien into the United States. Roque-Toledo was arrested in Cheyenne, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
William Jay Lonebear, 62, of Arapahoe, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 20, 2017, for theft of personal property. Lonebear was arrested in Riverton, Wyoming. He received time served, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $64,879.99 in restitution. This case was investigated by the Bureau of Indian Affairs.
Martin Patrick Stenger, 62, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 19, 2017, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and for possession of a firearm in furtherance of a drug trafficking crime. Stenger received 181 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment and $500.00 in restitution. This case results from an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Laramie Police Department, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. 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.
Cynthia Julissa Lemus, 32, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 16, 2017, for conspiracy to distribute a mixture or substance containing a detectable amount of methamphetamine. Lemus was arrested in Gillette, Wyoming. She received 46 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Gillette Police Department, the Campbell County Sheriff’s Office, the Wyoming Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sacramento Woman Sentenced to over 4 Years in Prison for Aggravated ID Theft and Using Methamphetamine While in CustodyRead the Press Release
SACRAMENTO, Calif. — Shellby Leeanna Moore, 30, of Sacramento, was sentenced today by U.S. District Judge Morrison C. England Jr. to four years and two months in prison for aggravated identity theft and possession of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, while Moore was in custody with charges pending for identity theft, she obtained and used methamphetamine. On March 16, 2017, Moore pleaded guilty to stealing identities of Sacramento County residents and possessing methamphetamine.
According to court documents, Moore and co-defendant Trevor Lichnock-Gembe, 29, of Sacramento, obtained stolen mail and used the personal information of victims to open checking and savings accounts and to obtain debit cards. After opening the accounts, the defendants used them to deposit stolen, counterfeit, and altered checks. Surveillance cameras at various locations showed the defendants opening accounts and making phony deposits at banks, making purchases with the fraudulent debit cards, and breaking into mail boxes at apartment complexes.
On April 20, 2016, law enforcement agents conducted a probation search where Moore lived with Lichnock-Gembe. Inside the residence, officers seized stolen property, stolen credit and debit cards, stolen identifications, passports, and stolen U.S. mail.
On April 6, 2017, Judge England sentenced co-defendant Lichnock-Gembe to four years and 10 months in prison for bank fraud, aggravated identity theft, and unlawful possession of identification documents. The attempted loss exceeded $126,879, and both defendants were ordered to pay restitution for the actual loss of $71,960. The defendants stole mail from over 700 different victims in the greater Sacramento Metropolitan area.
This case was the product of an investigation by the United States Postal Inspection Service with assistance from the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Michelle Rodriguez prosecuted the cases.
Rock Hill Man Sentenced on Federal Firearm and Ammunition ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Travis Daniel Smith, age 29, of Rock Hill, South Carolina, was sentenced after earlier pleading guilty in federal court to possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i), and possession with intent to distribute a quantity of marijuana, in violation of Title 21, United States Code, Section 841(b)(1)(D). Senior United States District Judge Cameron Currie sentenced Smith to 72 months imprisonment with 5 years of federal supervised release to follow.
Evidence presented at the earlier change of plea hearing established that on April 7, 2016, Smith attempted to allude officers of the Rock Hill Police Department during a routine traffic stop. Evidence showed that Smith first led officers on a short car-chase and later left his vehicle to flee on foot. During the foot-chase, officers observed Smith abandoning a Diamondback .380 caliber pistol. Once officers were able to detain Smith, they discovered a bag of marijuana and a digital scale on his person. Smith is prohibited under federal law from possessing firearms based upon his prior state convictions and adjudications for assault and battery of a high and aggravated nature, possession with intent to distribute crack cocaine and unlawful carrying of a pistol.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Rock Hill Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Alyssa L. Richardson of the Columbia office handled the case.
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Reminder Regarding EOIR’s Fraud and Abuse Prevention ProgramRead the Press Release
FALLS CHURCH, VA – As applications for relief or protection from removal rise in immigration proceedings, the Executive Office for Immigration Review (EOIR) reminds the public of the role of EOIR’s Fraud and Abuse Prevention Program in safeguarding the validity of those proceedings and of the need for vigilance in combating immigration fraud.
"Application and benefit fraud in immigration proceedings undermines the overall integrity of the immigration law system, places unwarranted burdens on taxpayers, and puts public safety and national security at risk,” said Acting Director James McHenry. “Every fraudulent application further burdens a system already facing a critical backlog, and EOIR is committed, through its Fraud and Abuse Prevention Program, to identifying and addressing fraud in the immigration system."
EOIR's Fraud and Abuse Prevention Program was created as a result of a directive in 2006 by then-Attorney General Alberto Gonzales. By regulation, EOIR’s General Counsel has designated an anti-fraud officer to:
(i) Serve as a point of contact relating to concerns about possible fraud upon EOIR, particularly with respect to matters relating to fraudulent applications or documents affecting multiple removal proceedings, applications for relief from removal, appeals, or other proceedings before EOIR;
(ii) Coordinate with investigative authorities of the Department of Homeland Security, the Department of Justice, and other appropriate agencies with respect to the identification of and response to such fraud; and
(iii) Notify the EOIR disciplinary counsel and other appropriate authorities with respect to instances of fraud, misrepresentation, or abuse pertaining to an attorney or accredited representative.
Since 2006, EOIR’s Fraud and Abuse Prevention Program has handled more than 700 cases. It works closely with other agencies to investigate fraud in all forms and to refer cases for criminal prosecution if warranted. It also coordinates with EOIR’s Attorney Discipline Program to seek discipline of attorneys or accredited representatives who commit, enable, or induce fraud.
It provides extensive training to EOIR personnel on identifying and reporting fraud. For the public, it operates a dedicated fraud hotline at 877-388-3840 and accepts email referrals at [email protected]. More information about this program may be found in the Program’s factsheet.
https://www.justice.gov/eoir/page/file/eoirfraudprogramfactsheetjune2017/download
Psychologist George E. Compton Jr. of Sturgis Pleads Guilty to Health Care FraudRead the Press Release
Compton Billed Insurers for Numerous Counseling Sessions that he did not Provide
GRAND RAPIDS, MICHIGAN —Acting U.S. Attorney Andrew Byerly Birge announced that George E. Compton, Jr., 63, of Sturgis, Michigan, pled guilty today in federal court to a felony information charging him with executing a health care fraud scheme from at least January 1, 2013, until June 30, 2016. Compton will be sentenced at a date to be determined by the court, at which time he will face a maximum prison term of 10 years, a fine of up to twice the amount of the gross gain from his fraud, and he will be ordered to make restitution to his victims.
According to court records, Compton defrauded health care benefit programs of at least $250,000.00. As part of the scheme to defraud, Compton established legitimate relationships with numerous patients, provided periodic counseling sessions to his patients, and billed their health care benefit programs. However, after establishing these relationships, Compton regularly billed his patients’ health care benefit programs for counseling sessions that grossly exceeded the number of actual counseling sessions that he provided. When his patients or the health care benefit programs occasionally detected his excess billings, Compton furthered his scheme to defraud by falsely claiming that the billings were the result of an honest mistake or the automated billing functions of his billing software and he reimbursed the health care benefit program for the over-payment. Additionally, when audited by one of the health care benefit programs, Compton further carried out the scheme to defraud by providing the health care benefit program with fake patient counseling notes in an attempt to make it appear as if he actually provided counseling sessions on dates that he knew he had previously submitted false billing. On at least one occasion, he billed for counseling sessions that he claimed occurred at his Coldwater office despite the fact that he was actually in Pittsburgh, Pennsylvania. On another occasion, he billed for counseling sessions for a patient that was actually hospitalized in an induced coma and later homebound.
"Unfortunately, this case represents yet another example of how some health care professionals allow their own greed to lead them down the path of defrauding health care benefit programs and ultimately harming consumers of health insurance," said Birge. "My office will continue to vigorously prosecute those who commit health care fraud against private or public health insurance plans."
"Today’s guilty plea should serve as a warning that those who place their own greed for profits above honest billing practices will be identified and prosecuted," said David P. Gelios Special Agent in Charge, Detroit Division of the FBI.
The case was investigated by the Kalamazoo office of the FBI and is being prosecuted by Assistant U.S. Attorney Ronald M. Stella.
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Postal Employee Pleads Guilty to Stealing MailRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a U.S. Postal employee pleaded guilty in federal court today to stealing mail.
Terry G. Williams, 55, of Kansas City, Mo., waived his right to a grand jury and pleaded guilty before U.S. District Judge Beth Phillips to a federal information that charges him with theft of mail by a Postal Service employee.
Williams, a postal support employee at the Processing and Distribution Center in Kansas City, Mo., admitted that he stole such items as greeting cards, gift cards and Netflix DVDs between April 4, 2015, and April 26, 2016. Williams pulled those items from the trays of letter mail he was loading to be processed.
Federal agents watched Williams pull out colored envelopes from the trays and place them in his pockets and into a personal bag that was underneath his work station. When agents approached him at the end of his shift, he dropped the bag on the ground and ran away from the agents. Agents chased Williams, tackled him to the ground and handcuffed him.
Agents seized Williams’s bag, which contained 232 greeting cards. They also seized two gift cards from Williams. Inside the trunk of his vehicle, agents found 104 greeting cards, 34 Netflix DVD mailings and three gift cards.
Under federal statutes, Williams is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the U.S. Postal Service, Office of Inspector General.
Physician Pleads Guilty to Accepting Kickbacks and Failing to Remit Employment TaxesRead the Press Release
JOHNSTOWN, Pa. – A pain management doctor who owned and operated a group of pain management clinics within the Western District of Pennsylvania, pleaded guilty in federal court to accepting kickbacks in connection with a clinical drug testing referral scheme operated by Universal Oral Fluid Labs (UOFL), of Greensburg, Pennsylvania, Acting United States Attorney Soo C. Song announced today.
Dr. John H. Johnson, 55, of Hollidaysburg, Pa., pleaded guilty before U.S. District Judge Kim R. Gibson to an information charging him with conspiracy to violate the Anti-Kickback Statute, and Count One of an indictment charging him with willfully failing to remit employment taxes.
In connection with Dr. Johnson’s guilty plea for conspiracy to violate the Anti-Kickback Statute, the court was informed that from in or around May, 2011, and continuing until at least November, 2013, Johnson accepted at least $2.3 million in kickbacks in return for referring patients, including Medicare and Medicaid patients, to UOFL for clinical drug testing and drug screening. UOFL then received millions of dollars from third party payors, including approximately $3,443,528 from Medicare and $1,147,768 from Pennsylvania Medicaid, based on Johnson’s referrals.
In connection with Dr. Johnson’s guilty plea to willfully failing to remit employment taxes, the court was informed that from on or about July 1, 2013 to on or about September 30, 2013, Johnson failed to truthfully account for and pay over to the Internal Revenue Service (IRS) all of the federal income taxes withheld and Federal Insurance Contributions Act (FICA) taxes due and owing to the United States on behalf of Johnson’s company, Central Anesthesia, and its employees. Johnson is responsible for repayment to the IRS of more than $700,000 as a result of his unlawful tax practices.
“A physician’s decisions about what medical care to provide, and who will provide it, should be based upon the best interests of their patients, rather than a physician’s financial interests,” said Acting U. S. Attorney Soo C. Song. “The defendant who pleaded guilty today abused his position of trust by accepting kickbacks for referring his patients to UOFL, and by failing to meet his tax obligations.”
“Once again this demonstrates the effective cooperation we maintain with our federal, state and local law enforcement partners whether it be white collar crimes, drugs or violent crime” said Robert Johnson, Special Agent in Charge of the Federal Bureau of Investigation’s Pittsburgh Division.
“Criminal kickback schemes destroy trust in health care decision-making and lead to increased costs to our Federal health care benefit programs,” said Nick DiGiulio, Special Agent in Charge of the Inspector General's Office for the United States Department of Health and Human Services in Philadelphia. “We will continue to work with our partners to expose corrupt business arrangements in the health care industry.”
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service," said Acting Special Agent in Charge Greg Floyd. "The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes."
Judge Gibson scheduled sentencing for October 11, 2017 at 11:00 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $260,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Stephanie L. Haines and Colin J. Callahan are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, the Internal Revenue Service Criminal Investigation, and Pennsylvania Office of Attorney General Medicaid Fraud Control Section conducted the investigation that led to the prosecution of Dr. Johnson.
Philadelphia Man Charged with Illegal Reentry After DeportationRead the Press Release
Julio Vicente-Rios, a/k/a “Julio V. Rios,” a/k/a “Pablo Reyes-Ortiz,” of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about December 2, 2016, Vicente-Rios, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about February 15, 2008, and December 29, 2008.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Jason P. Bologna.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacy owner and director of compliance charged with defrauding United States and distributing adulterated drugsRead the Press Release
PRESS RELEASE
Indianapolis – Josh J. Minkler, the United States Attorney, announced today the owner and director of compliance of an Indiana compounding pharmacy were charged criminally in connection with their distribution of over- and under-potent drugs, and defrauding the United States by interfering with and obstructing the lawful functions of the Food and Drug Administration (FDA).
Paul J. Elmer, 64, of Fishers, Indiana, and Caprice R. Bearden, 62, of Carmel, Indiana, were charged in a 10-count indictment with one count of conspiracy to defraud the United States, three counts of distributing an adulterated drug in interstate commerce and six counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Elmer was arrested yesterday and had his initial court appearance in U.S. District Court in the Southern District of Indiana where he pleaded not guilty and was released under conditions imposed by the Court. Bearden was issued a summons to appear before the court. Trial has been scheduled for August 21, 2017 at 9:00 a.m.
“These defendants put greed and the reputation of their company ahead of the health and safety of our most innocent victims,” said Minkler. “Their actions put lives in danger and they will be held accountable.”
“The distribution of over- and under-potent drug products poses a serious risk of harm to patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “FDA’s efforts to ensure the safety of compounded drugs is critically important. Impeding FDA’s ability to do its job and uncover these types of safety concerns will not be tolerated. The Justice Department is committed to working with FDA to protect patients and ensure compounded drugs are safe.”
Elmer owned and was the President of Pharmakon Pharmaceuticals Inc. (Pharmakon), and Bearden was the company’s Director of Compliance. Pharmakon compounded drugs at a facility in Noblesville, Indiana for customers in Indiana and many other states.
The indictment alleges that from July 2013 through mid-February 2016, Bearden received approximately 70 potency test failure notices from companies used by Pharmakon to test for potency, indicating that drugs such as morphine sulfate and fentanyl were either under- or over-potent. According to the indictment, Bearden discussed the out-of-specification test results with Elmer, a licensed pharmacist, and until Pharmakon compounded over-potent morphine sulfate in February 2016, Elmer determined that Pharmakon should not contact any individuals or entities – including hospitals – who received the drugs, nor conduct any product recalls before FDA intervention.
On several occasions, according to the indictment, infants were injected with drugs compounded by Pharmakon that were significantly over-potent. For example, the indictment alleges that in early February 2016, Pharmakon distributed over-potent morphine sulfate, an opioid typically used for relief of moderate to severe acute and chronic pain, to a hospital in Indiana and a hospital in Illinois. As alleged in the indictment, three infants at the hospital in Indiana received the morphine sulfate which was nearly 25 times the strength indicated on its label, and one infant was taken by emergency helicopter to a nearby children’s hospital.
Further, as alleged in the indictment, during FDA inspections of Pharmakon in 2014 and 2016, Bearden lied about Pharmakon’s never having received any out-of-specification drug potency test results. According to the indictment, Elmer learned of Bearden’s lies during or shortly after the FDA’s inspections and took no action to correct her and to inform the FDA of the extent of Pharmakon’s drug potency failures. The indictment alleges further that Elmer and Bearden conspired to defraud the United States by interfering with and obstructing the lawful functions of the FDA, and obstructing, influencing and impeding FDA inspections. In addition, as alleged, during the 2016 inspection, Elmer directed at least one Pharmakon employee to backdate batch records of compounded drugs.
“Companies that do not meet federal manufacturing standards, especially when dealing with highly potent drugs like fentanyl meant for vulnerable populations, put the health and safety of American consumers at great risk,” said FDA Commissioner Scott Gottlieb, M.D. “The FDA and our Office of Criminal Investigations will continue to pursue and help bring to justice those companies who put the public health at risk.”
According to the indictment, during two inspections of Pharmakon in 2014, FDA observed conditions that did not comply with FDA regulations. The indictment alleges that Elmer and Bearden failed to investigate the root causes of the drug potency failures and otherwise failed to make changes in Pharmakon’s compounding operations to reduce the incidence of these failures. Instead, as alleged in the indictment, under the direction and supervision of Elmer and Bearden, Pharmakon continued to distribute under- and over-potent drugs, shipping these drugs before receiving the potency test results.
The conspiracy charge carries a statutory maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain or gross loss from the offense. The charges of distributing an adulterated drug in interstate commerce and adulterating drugs while held for sale after shipment of a drug component in interstate commerce each carry a statutory maximum punishment of one year in prison and a fine of $100,000 or twice the gross gain or gross loss from the offense.
Acting Assistant Attorney General Readler and U.S. Attorney Minkler commended the FDA Office of Criminal Investigations, which conducted the investigation. The case is being prosecuted by Assistant U.S. Attorney Cindy J. Cho, of the U.S. Attorney’s Office for the Southern District of Indiana and Trial Attorney David A. Frank of the Civil Division’s Consumer Protection Branch.
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 Southern District of Indiana, visit its website at https://www.justice.gov/usao-sdin.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.###
Pharmacy Owner and Director of Compliance Charged with Defrauding United States and Distributing Adulterated DrugsRead the Press Release
The owner and director of compliance of an Indiana compounding pharmacy were charged criminally in connection with their distribution of over- and under-potent drugs, and defrauding the United States by interfering with and obstructing the lawful functions of the Food and Drug Administration (FDA), the Department of Justice announced today.
Paul J. Elmer, 64, of Fishers, Indiana, and Caprice R. Bearden, 62, of Carmel, Indiana, were charged in a 10-count indictment with one count of conspiracy to defraud the United States, three counts of distributing an adulterated drug in interstate commerce and six counts of adulterating drugs while held for sale after shipment of a drug component in interstate commerce. Elmer was arrested yesterday and had his initial court appearance in U.S. District Court in the Southern District of Indiana where he pleaded not guilty and was released under conditions imposed by the Court. Trial has been scheduled for Aug. 21 at 9 a.m.
“The distribution of over- and under-potent drug products poses a serious risk of harm to patients,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “FDA’s efforts to ensure the safety of compounded drugs is critically important. Impeding FDA’s ability to do its job and uncover these types of safety concerns will not be tolerated. The Justice Department is committed to working with FDA to protect patients and ensure compounded drugs are safe.”
“These defendants put greed and the reputation of their company ahead of the health and safety of our most innocent victims,” said U.S. Attorney Josh Minkler for the Southern District of Indiana. “Their actions put lives in danger and they will be held accountable.”
Elmer owned and was the President of Pharmakon Pharmaceuticals Inc. (Pharmakon), and Bearden was the company’s Director of Compliance. Pharmakon compounded drugs at a facility in Noblesville, Indiana for customers in Indiana and many other states.
The indictment alleges that from July 2013 through mid-February 2016, Bearden received approximately 70 potency test failure notices from companies used by Pharmakon to test for potency, indicating that drugs such as morphine sulfate and fentanyl were either under- or over-potent. According to the indictment, Bearden discussed the out-of-specification test results with Elmer, a licensed pharmacist, and until Pharmakon compounded over potent morphine sulfate in February 2016, Elmer determined that Pharmakon should not contact any individuals or entities – including hospitals – who received the drugs, nor conduct any product recalls before FDA intervention.
On several occasions, according to the indictment, infants were injected with drugs compounded by Pharmakon - that were significantly over-potent. For example, the indictment alleges that in early February 2016, Pharmakon distributed over potent morphine sulfate, an opioid typically used for relief of moderate to severe acute and chronic pain, to a hospital in Indiana and a hospital in Illinois. As alleged in the indictment, three infants at the hospital in Indiana received the morphine sulfate which was nearly 25 times the strength indicated on its label, and one infant was taken by emergency helicopter to a nearby children’s hospital.
Further, as alleged in the indictment, during FDA inspections of Pharmakon in 2014 and 2016, Bearden lied about Pharmakon’s never having received any out-of-specification drug potency test results. According to the indictment, Elmer learned of Bearden’s lies during or shortly after the FDA’s inspections and took no action to correct her and to inform the FDA of the extent of Pharmakon’s drug potency failures. The indictment alleges that Elmer and Bearden conspired to defraud the United States by interfering with and obstructing the lawful functions of the FDA, and obstructing, influencing and impeding FDA inspections. In addition, as alleged, during the 2016 inspection, Elmer directed at least one Pharmakon employee to backdate batch records of compounded drugs.
“Companies that do not meet federal manufacturing standards, especially when dealing with highly potent drugs like fentanyl meant for vulnerable populations, put the health and safety of American consumers at great risk,” said FDA Commissioner Scott Gottlieb, M.D. “The FDA and our Office of Criminal Investigations will continue to pursue and help bring to justice those companies who put the public health at risk.”
According to the indictment, during two inspections of Pharmakon in 2014, FDA observed conditions that did not comply with FDA regulations. The indictment alleges that Elmer and Bearden failed to investigate the root causes of the drug potency failures and otherwise failed to make changes in Pharmakon’s compounding operations to reduce the incidence of these failures. Instead, as alleged in the indictment, under the direction and supervision of Elmer and Bearden, Pharmakon continued to distribute under- and over-potent drugs, shipping these drugs before receiving the potency test results.
The conspiracy charge carries a statutory maximum sentence of five years in prison and a fine of $250,000 or twice the gross gain or gross loss from the offense. The charges of distributing an adulterated drug in interstate commerce and adulterating drugs while held for sale after shipment of a drug component in interstate commerce each carry a statutory maximum punishment of one year in prison and a fine of $100,000 or twice the gross gain or gross loss from the offense.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Acting Assistant Attorney General Readler and U.S. Attorney Minkler commended the FDA Office of Criminal Investigations, which conducted the investigation. The case is being prosecuted by Assistant U.S. Attorney Cindy J. Cho, of the U.S. Attorney’s Office for the Southern District of Indiana and Trial Attorney David A. Frank of the Civil Division’s Consumer Protection Branch.
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 Southern District of Indiana visit its website at https://www.justice.gov/usao-sdin.
Paramedic Pleads Guilty to Removing Liquid Fentanyl from AmbulanceRead the Press Release
BOSTON – A paramedic pleaded guilty today in federal court in Boston to diverting fentanyl intended for patients for his own use.
Joseph V. Amello, 50, of Rowley, Mass., pleaded guilty to one count of acquiring a controlled substance by deception and subterfuge and one count of tampering with a consumer product. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Sept. 28, 2017.
From approximately Nov. 15, 2014, to Aug. 7, 2015, while working as a paramedic for an ambulance company, Amello diverted over 650 vials of fentanyl. In addition, beginning on or around July 1, 2015, Amello removed fentanyl from a number of vials intended for ambulance patients and replaced the fentanyl with another solution.
The charge of acquiring a controlled substance provides for a sentence of no greater than four years in prison, one year of supervised release, and a fine of up to $250,000; and the charge of tampering with a consumer product provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Commissioner Monica Bharel, M.D., M.P.H., of the Massachusetts Department of Public Health, Division of Food and Drugs, Drug Control Program, made the announcement today. Assistant U.S. Attorney Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Paralegal who Claimed to be Attorney Pleads Guilty to Bank FraudRead the Press Release
CINCINNATI – Grady Calhoun, 35, of Hamilton, Ohio, pleaded guilty in U.S. District Court to three counts of bank fraud related to making representations as part of his application to obtain credit cards.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Jason Hayden, Acting Special Agent in Charge, announced the pleas entered into before U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, on three separate occasions, Calhoun made false claims about his occupation and income. During one application process with Chase Bank, he claimed he was a partner and president of a law firm called Serdekor LLC. Serdekor LLC is an Ohio limited liability company that was created and registered by Calhoun; however, Serdekor LLC is not a law firm and the defendant is not a licensed attorney. Rather, Calhoun was employed as a paralegal at a law firm in the Southern District of Ohio.
Calhoun manipulated the payment process to Chase Bank to keep the credit card accounts open as long as possible, and owes nearly $408,000 as a result of this scheme.
He also fraudulently obtained credit card accounts at Barclay’s Bank and applied for other lines of credit with another individual’s social security number. Calhoun owes Barclay’s more than $28,000.
As part of the plea agreement, Calhoun has agreed to pay the loss amounts to both banks in restitution. Additionally, as part of the plea, the parties in this case have recommended a term of imprisonment of 15 months, followed by two years of supervised release. The Judge will consider the recommended sentence at a sentencing hearing, which is yet to be scheduled.
U.S. Attorney Glassman commended the investigation of this case by the Secret Service and Assistant United States Attorney Timothy S. Mangan, who is representing the United States in this case.
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Orange County Man Who Led Conspiracy that Illegally Imported and Distributed Synthetic Narcotics Sentenced to 10 Years in PrisonRead the Press Release
SANTA ANA, California – A Newport Beach man who orchestrated a wide-reaching conspiracy that smuggled, manufactured and distributed millions of dollars worth of analogue drugs which were used, among other things, to manufacture synthetic marijuana has been sentenced to 120 months in federal prison.
Sean Libbert, 41, was sentenced late last night by United States District Judge Cormac J. Carney.
According to court documents, Libbert organized and led a drug trafficking conspiracy that manufactured, marketed and sold synthetic marijuana – commonly called “spice” – under the brand name of “Da Kine Blend.” When he pleaded guilty last year, Libbert admitted that at least 100 kilograms of synthetic marijuana was manufactured using the analogue chemicals he provided, and that he knew the “spice” was being distributed for human consumption.
Libbert pleaded guilty last November to federal offenses related to the distribution of “spice.” Libbert pleaded guilty to four felony offenses: conspiring to manufacture, possess and distribute controlled substance analogues; conspiracy to smuggle controlled substance analogues into the United States; being a felon in possession of firearms and ammunition; and money laundering.
“Spice” is known as an analogue drug because its chemical composition is very similar to a controlled substance. Analogues are intended to have a substantially similar or greater physiological effect than the narcotics they mimic. Popular with teenagers and younger adults because of the cheaper cost and glossy packaging, “spice” has been linked to overdoses, serious injuries and deaths across the country. In fact, the 2014 indictment – which was the first in this district involving drug analogues – alleged that chemicals distributed by Libbert nearly killed a victim in Florida who had ingested them. Though containing THC (the active ingredient in marijuana) and despite it being commonly referred to as “fake marijuana,” “spice” is considered by scientists and health officials to be much more dangerous than marijuana because of its high potency, and because the quality and quantity of chemicals used to make the “spice” is unregulated. The chemical analogues are typically manufactured in clandestine laboratories in China.
Over the course of 16 months in 2011 and 2012, Libbert’s organization smuggled over 200 pounds of chemicals into the U.S., knowing that the drugs would be used to manufacture “spice” that was smoked or taken orally. During yesterday’s lengthy sentencing hearing, Judge Carney noted that Libbert used fraudulent documents and misbranded labels to smuggle the chemical analogues from China.
As part of the scheme, Libbert incorporated a series of companies, opened up a series of bank accounts and private mailboxes, and sold more than $5 million worth of “spice” to people across the United States, including other distributors and individual users.
Previously in this case, two other defendants pleaded guilty, including a Chinese national who sold Libbert and his associates synthetic drugs that were smuggled into the United States. Another three defendants charged in separate cases pleaded guilty to conspiring with Libbert to manufacture, possess and distribute controlled substance analogues. These other five defendants are expected to be sentenced by Judge Carney later this year.
The investigation into the analogue drug ring was conducted by the Los Angeles HIDTA (High-Intensity Drug Trafficking Area) Southern California Drug Task Force, which includes special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Drug Enforcement Administration and IRS Criminal Investigation.
In July 2012, HIDTA investigators executed a series of federal search warrants and seized several luxury vehicles, hundreds of pounds of analogues, and firearms –including a rifle, a shotgun, two pistols, and approximately 700 rounds of ammunition, all of which Libbert was prohibited from possessing as a result of three prior felony convictions, including a 2002 drug trafficking conviction.
In addition to the drug and firearms charges, Libbert also pleaded guilty to one count of money laundering stemming from his purchase of real estate in Ohio using drug proceeds. Investigators seized more than $1.1 million in assets connected to the case – including more than $700,000 in profits from the sale of Libbert’s former residence in San Juan Capistrano – all of which have been administratively forfeited to the United States.
The case is being prosecuted by Assistant United States Attorney Carol Alexis Chen of the Organized Crime Drug Enforcement Task Force.
North Carolina Man Sentenced to Four-Year Prison Term for Armed Assault at Northwest Washington Pizza RestaurantRead the Press Release
WASHINGTON – Edgar Maddison Welch, 29, of Salisbury, N.C., was sentenced today to four years in prison on charges stemming from an incident in which he carried a loaded AR-15 assault rifle and a revolver into a Northwest Washington pizza restaurant, scattering employees and customers, and fired his assault rifle into a door.
The sentencing was announced by U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Welch pled guilty on March 24, 2017, in the U.S. District Court for the District of Columbia, to a federal charge of interstate transportation of a firearm and ammunition, and a District of Columbia charge of assault with a dangerous weapon. He was sentenced by the Honorable Ketanji Brown Jackson. Following his prison term, Welch will be placed on three years of supervised release. While on supervised release, Welch is to receive a mental health assessment; he also was ordered to stay away from the restaurant while on release. Additionally, he must pay $5,744 in restitution for property damage he caused during the incident.
In sentencing the defendant, the judge declared that “the extent of the recklessness in this case is breathtaking,” adding that it was only through “sheer luck” that no one was injured.
According to the government’s evidence, on Sunday, December 4, 2016, Welch transported three loaded firearms, together with ammunition, from North Carolina to Washington, D.C. The firearms included a 9mm AR-15 assault rifle loaded with approximately 29 rounds of ammunition, a fully-loaded, six-shot, .38-caliber revolver, and a loaded shotgun with additional shotgun shells. He drove directly to the Comet Ping Pong restaurant, in the 5000 block of Connecticut Avenue NW. According to the government’s evidence, Welch was motivated, at least in part, by unfounded rumors concerning a child sex-trafficking ring that supposedly was being perpetrated at the establishment.
Upon arriving at the restaurant, Welch parked his car and armed himself. At about 3 p.m., he marched inside the restaurant, which was occupied by employees and customers, including children. He was carrying the AR-15 assault rifle and the revolver. He was carrying the AR-15 openly, with one hand on the pistol grip, and the other hand on the hand guard around the barrel, such that anyone with an unobstructed view could see the gun.
The customers and employees fled the building. At one point, Welch encountered a locked room and attempted to force open the door, first using a butter knife and then discharging his assault rifle multiple times into the door.
A few minutes later, an unaware employee entered the restaurant, carrying pizza dough. Welch saw the employee and turned toward the worker with the assault rifle, causing the worker to immediately fear he would be shot. The worker fled. Welch was left alone in the restaurant. After spending more than 20 minutes inside, he left his firearms and exited the restaurant unarmed. He was then arrested and has remained in custody ever since. No one was injured.
The assault rifle and revolver were recovered inside the restaurant. A shotgun also was recovered from the defendant’s car, along with a box of shotgun ammunition.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department and the FBI Violent Crimes Task Force. They also expressed appreciation for the assistance provided by the FBI’s Charlotte Division, which executed search warrants, seized evidence, and conducted interviews. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Yvonne Bryant and Karina Hernandez, Paralegal Specialists Chela Okonji and Bianca Evans, and Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section, who assisted with forfeiture issues.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Demian S. Ahn and Sonali D. Patel, who prosecuted the case.
New York Man Arrested for Attempting to Provide Material Support to ISISRead the Press Release
Saddam Mohamed Raishani, a/k/a “Adam Raishani,” 30, of the Bronx was arrested last night at John F. Kennedy International Airport (“JFK Airport”) in Queens, New York. Raishani was charged by a criminal Complaint earlier today with attempting to provide material support to the Islamic State of Iraq and al-Sham (“ISIS” or the “Islamic State”), a designated foreign terrorist organization. Raishani is expected to be presented later today before Magistrate Judge James L. Cott in Manhattan federal court.
Acting Assistant Attorney General for National Security Dana Boente, Acting U.S. Attorney Joon H. Kim for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office, and Commissioner James P. O’Neill of the NYPD made the announcement.
“According to the complaint, Raishani attempted to travel overseas to join ISIS and to provide material support to the designated terrorist organization,” said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”
“As alleged, Saddam Mohamed Raishani, a Bronx man, plotted to travel to Syria to join and train with the terrorist organization ISIS,” said Acting Manhattan U.S. Attorney Kim. “Having already helped another man make that trip to ISIS’s heartland, Raishani allegedly acted on his own desire to wage violent jihad, planning to leave his family and life in New York City for the battlefields of the Middle East. Thanks to the excellent work of the FBI and NYPD, Raishani’s alleged plan to support this deadly terrorist organization was cut short at the airport and now he will face federal terrorism charges.”
“This case is another alleged instance of the nature of the terrorism threat and its reach into communities here at home,” said Assistant Director in Charge Sweeney Jr. “It is also a great example of the coordination which exists among local and federal law enforcement partners who work together to stop these alleged threats and interdict individuals allegedly determined on joining a terrorist organization intent on conducting violence around the globe. The FBI’s JTTF will continue to work with our partners, both here and abroad, to prevent acts of terrorism.”
“As we have seen many times before, allegedly attempting to join a designated terrorist organization usually has one outcome: arrest,” said Commissioner O’Neill. “Thank you to the NYPD detectives and FBI agents who, through the original Joint Terrorism Task Force, remain relentless in their focus to keep New York City safe.”
As alleged in the criminal Complaint,[1] filed today in Manhattan federal court:
In January 2017, Raishani contacted an individual who was, unbeknownst to Raishani, a confidential source working at the direction of law enforcement (the “CS”). During a meeting with the CS, Raishani told the CS that Raishani had a friend (“Person-1”), who had left New York to join the Islamic State some time ago.[2] Raishani told the CS that prior to Person-1’s departure, Raishani took Person-1 shopping to buy supplies to bring to the Islamic State. Riashani also said to the CS that, on the day of Person-1’s departure, Raishani gave money to Person-1 and drove Person-1 to JFK Airport. In later meetings with the CS, Raishani expressed his regret at not having traveled with Person-1 to join ISIS. Raishani also indicated his desire to wage jihad and his belief that the Quran can be read to justify the violence, including beheadings, engaged in by ISIS.
As part of the investigation, the CS introduced Raishani to an undercover law enforcement officer (“UC-1”), who was posing as an individual who wanted to travel abroad to fight for ISIS. During meetings with the CS and UC-1, Raishani expressed his desire to travel abroad to join ISIS. For example, Raishani stated that he had been in contact with other ISIS supporters and no longer felt comfortable in the United States. He also showed UC-1 a video that appeared to depict ISIS supporters discussing their desire to travel overseas to join ISIS and its ongoing fight. Raishani further showed the CS and UC-1 an ISIS video that appeared to depict ISIS members in Yemen killing civilians who did not support ISIS.
In addition, Raishani advised the CS and UC-1 as to how they could avoid detection by law enforcement. For example, Raishani advised the CS to cover the camera on the CS’s computer and turn off the computer’s microphone when watching pro-ISIS videos online. Raishani also advised the CS to use a particular Internet browser (the “Browser”) to hide their online activity, and explained that he used the Browser to watch ISIS and jihadi videos online. Furthermore, Raishani himself put on gloves when using a laptop and viewing pro-ISIS and pro-jihadi videos online. Moreover, Raishani told UC-1 that if they traveled together to join ISIS, Raishani, a home health aide, could pose as a nurse and UC-1 could pose as a refugee aid worker, in order to cross international borders without being stopped and questioned by authorities. Finally, Raishani told the CS and UC-1 that he (Raishani) had to be careful because he believed that federal authorities were monitoring his activities.
By April 2017, Raishani was actively planning to travel abroad to join ISIS. The CS told Raishani that, through a family acquaintance, the CS might be able to obtain contact information for an ISIS affiliate capable of facilitating travel to join ISIS. In reality, the purported facilitator was an FBI employee acting in an undercover capacity (“UC-2”). In May 2017, Raishani contacted UC-2 and said that he had previously helped another individual travel to join ISIS. Raishani further told UC-2 that he was seeking guidance for his own “hijrah,” an Arabic term normally used to refer to migration, but which is also used by ISIS supporters to refer to traveling overseas to join ISIS and engage in jihad. In subsequent conversations with the CS, UC-1, and/or UC-2, Raishani stated that he aspired to travel to Syria to join ISIS and that he aimed to travel before the end of Ramadan, an Islamic holy month that runs from approximately May 26 through June 24 this year. He indicated that he would be in contact with UC-2 about his travel. Raishani also stated that if he is “locked up,” he will not care, as “Allah will reward [him] for attempting jihad.”
In June 2017, Raishani told the CS that he was making preparations to leave, including paying off his remaining debts. Subsequently, Raishani and UC-1 purchased clothing that they intended to wear for their training with ISIS. Earlier this week, Raishani revealed to UC-2 his (Raishani’s) intention to meet an ISIS member in Turkey in the next few days, who would facilitate Raishani’s joining the terrorist organization. Raishani also purchased an airline ticket for a flight scheduled to depart on June 21, 2017, from JFK Airport to Istanbul, Turkey, via Lisbon, Portugal. On June 21, 2017, Raishani traveled to JFK Airport, where he was arrested by the FBI after he attempted to board that flight to Lisbon. * * *
Raishani, is charged with one count of attempting to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Mr. Kim praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the NYPD’s Intelligence Division. Mr. Kim also thanked the Counterterrorism Section of the Department of Justice’s National Security Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys George D. Turner, Sidhardha Kamaraju, and Jane Kim are in charge of the prosecution, with assistance from Trial Attorney Kevin C. Nunnally of the National Security Division’s Counterterrorism Section.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below are only allegations, and every fact described should be treated as an allegation.
[2] Communications and conversations discussed herein are described in substance and in part.
New Orleans Businessman Sentenced for Defrauding InvestorsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOHN F. KELLY, III, age 56, of Metairie, was sentenced yesterday after previously pleading guilty to a wire fraud scheme.
U.S. District Judge Kurt D. Engelhardt sentenced KELLY to 12 months and one day of imprisonment, to be followed by three years of supervised release after his release from prison. KELLY was also ordered to pay restitution to his victims.
According to court documents, from 2011 through 2014, KELLY operated a tax sale investment business with investor monies. During this time, KELLY defrauded his investors by diverting their investment funds for his own personal use and benefit. As part of the scheme to defraud, KELLY used investor monies to pay off personal loans and to purchase real estate properties in New Orleans that he titled in separate corporate entities he controlled.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division, in investigating this matter. Assistant United States Attorneys Richard R. Pickens, II, Andre J. Lagarde, and Hayden M. Brockett were in charge of the prosecution.
Myrtle Beach Man Sentenced on Federal Drug Conspiracy ChargeRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that David George Darrigo, Jr., age 42, from Myrtle Beach, South Carolina, was sentenced in federal court in Florence, South Carolina. On April 18, 2017, Darrigo pled guilty to conspiracy to possess with intent to distribute and distribution a quantity of methamphetamine in violation of 21 U.S.C. §§ 841(a)(1) and 846. United States District Judge R. Bryan Harwell, of Florence, sentenced Darrigo to 100 months imprisonment followed by 3 years of supervised released.
Evidence presented at the change of plea on April 18, 2017, and sentencing hearing established that in early 2016, members of the Drug Enforcement Administration (DEA) and the Fifteenth Circuit Drug Enforcement Unit (DEU) were investigating a methamphetamine distribution organization in the Horry County, South Carolina area. On December 18, 2015, agents made a controlled buy of a quantity of Methylenedioxymethamphetamine (MDMA) from Darrigo. After further investigation, agents obtained a search warrant for Darrigo’s home. On September 14, 2016, agents searched Darrigo’s home pursuant to the warrant and found 227 grams of methamphetamine in the home. Agents also seized over three thousand dollars ($3,000.00) from the home. Darrigo was arrested shortly thereafter.
The case was investigated by agents of the Drug Enforcement Administration (DEA) and the Fifteenth Circuit Drug Enforcement Unit (DEU). Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Mother and Son Who Ran Cocaine Importation Scheme from Their Family’s Queens Restaurant Sentenced to PrisonRead the Press Release
Earlier today at the federal courthouse in Brooklyn, United States District Judge Raymond J. Dearie sentenced the defendant Angelo Gigliotti to 20 years in prison and 10 years of supervised release following his conviction for conspiracy to import and possess cocaine. Judge Dearie had previously sentenced the defendant Angelo Gigliotti’s mother, Eleonora Gigliotti, on May 11, 2017, to 7 years in prison for her role in the importation scheme.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and Angel M. Melendez, Special-Agent-in-Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), New York.
“The defendants used their family restaurant in Corona, Queens, as well as a produce importation company, to import over 50 kilograms of cocaine worth millions of dollars from Costa Rica. The prison sentences imposed on the defendants put an end to the transnational drug trafficking they conducted behind the disguise of local businesses,” stated Acting United States Attorney Rohde. Ms. Rohde thanked our law enforcement partners in Italy, including the Prosecutor of the Republic of Reggio Calabria, the Italian National Police (INP), and in particular, the Squadra Mobile of Reggio Calabria and the Servizio Centrale Operativo, the Direzione Centrale per i Servizi Antidroga, and the Direzione Nazionale Antimafia, as well as our law enforcement partners in Costa Rica, including the Organismo de Investigacion Judicial. Ms. Rohde also expressed her gratitude to the U.S. Department of Justice Attaché and the Offices of the HSI and FBI Legal Attaché at the U.S. Embassy in Rome, as well as the FBI Legal Attaché at the U.S. Embassy in Panama City, who coordinated extensive evidence-sharing and coordinated operations, and to the New York City Police Department, the U.S. Drug Enforcement Administration, and U.S. Customs and Border Protection for their assistance in this matter.
“The damaging effects of drugs aren’t limited to those individuals who abuse them—negative consequences often befall family members and friends, while businesses and government entities frequently incur the economic costs associated with drug abuse and prevention programs,” stated FBI Assistant Director-in-Charge Sweeney. “To say the threats posed by the illegal drug trade know no boundaries would be an understatement, and yet there are those among us who dare to draw the line a little closer to home. Today, with the help of our law enforcement partners around the globe, two more people remain behind bars for carelessly and deliberately contributing to this international dilemma.”
“This mother and son team trafficked cocaine across the globe, and used their own family-run restaurant as a front for their criminal activities,” said ICE-HSI New York Special Agent-in-Charge Melendez. “HSI uses its multifaceted investigative authorities with its partners to pursue and dismantle drug trafficking organizations whether it’s a small family run operation in New York or a large cartel operating in South America.”
Following a two-week trial in July 2016, a federal jury in Brooklyn, New York found the defendant Angelo Gigliotti and his father, Gregorio Gigliotti, guilty of participating in a long-running cocaine importation scheme. The defendant’s mother, Eleonora Gigliotti, also participated in the family-run drug-trafficking operation, and in January 2017, pled guilty to conspiring to import cocaine. Gregorio Gigliotti was previously sentenced to 18 years in prison for his role in the narcotics scheme, as well as for the possession of firearms in furtherance of the drug operation.
The defendants’ arrests arose out of a long-term investigation by ICE’s Homeland Security Investigations and the Federal Bureau of Investigation, in coordination with law enforcement authorities in Italy, into a transnational cocaine trafficking operation. Between October and December 2014, federal law enforcement officers intercepted and seized approximately 55 kilograms of cocaine that had been hidden inside cardboard boxes that contained cassava and sent from co-conspirators in Costa Rica to the defendants in New York. To facilitate their operation, the defendants used their family-run Italian restaurant in Corona, Queens, Cucino Amodo Mio, as well as a produce importation company, Fresh Farm Export Corp., that was incorporated in 2012 to provide a cover for their drug-trafficking operation. On March 11, 2015, the day the defendants were arrested, federal law enforcement officers executed a search warrant at Cucino Amodo Mio and recovered one 12 gauge shotgun, one loaded .357 magnum Trooper revolver, one loaded .22 caliber Colt pistol, one loaded .38 caliber Charter Arms revolver, one 9 mm Keltec pistol, one .762 Czech pistol, one .38 caliber Derringer that had a defaced serial number, ammunition magazines, loose ammunition, two handgun holsters, brass knuckles, a handwritten ledger showing the movement of more than $350,000, and more than $100,000 in cash.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Margaret E. Gandy and Keith D. Edelman are in charge of the prosecution.
The Defendants:
ANGELO GIGLIOTTI
Age: 36Woodside, New York
ELEONORA GIGLIOTTI
Age: 56
Malba, New York
E.D.N.Y. Docket No. 15-CR-204 (S-2) (RJD)
Michigan man convicted of heroin trafficking chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Detroit, Michigan man was convicted today in federal court of heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Julian Michael-Thomas “Cain” Johnson, age 22, pled guilty to one count of “Distribution of Heroin within 1,000 Feet of a Protected Location.” The crime occurred November 2016 near West Virginia University in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michal John Aloi presided.
Merced County Resident Indicted for Conspiracy to Grow Marijuana in Sequoia National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jose Manuel Sanchez-Zapien (Sanchez), 37, a native and citizen of Michoacán, Mexico, residing in Dos Palos, charging him with conspiring to manufacture marijuana and damaging public lands and natural resources, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Sanchez was found in April and June of this year at a drop point delivering supplies to growers at a marijuana cultivation site in the Slick Rock Creek drainage in the Sequoia National Forest. The drop point has been used numerous times in the past as a supply drop point for marijuana growers to access grow sites in the Slick Rock Creek drainage.
This case is the product of an investigation by the U.S. Forest Service with assistance from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Fish and Wildlife and the Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
If convicted of the drug conspiracy, Sanchez faces a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. If convicted of the environmental crime, Sanchez faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Sanchez is also liable for restitution to the U.S. Forest Service for damages stemming from the marijuana cultivation activities. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Members of Duquesne Heroin Trafficking Ring Guilty of Conspiracy to DistributeRead the Press Release
PITTSBURGH - United States District Court Judge Reggie B. Walton found Anthony Pryor and Lance Yarbough guilty of one count each of Conspiracy to Distribute Heroin, Acting United States Attorney Soo C. Song announced today.
According to Assistant United States Attorney Brendan T. Conway, who prosecuted the case, the evidence presented at trial established that Pryor and Yarbough participated in a large-scale heroin distribution operation centered in Duquesne, Pennsylvania. The verdict is the culmination of an investigation that began in 2010 and resulted in the convictions of nineteen individuals for heroin distribution and firearms charges, most of whom are from Duquesne. The core of the group called themselves Hardcore Entertainment, and some of the members of the conspiracy recorded music and video under that name as well. Some of videos, which they posted on YouTube, included members of the conspiracy bragging about their drug dealing activities.
Members of Hardcore Entertainment typically pulled their resources and obtained large quantities of heroin from New Jersey. They typically transported the heroin and money in vehicles with hidden compartments. Once the heroin reached the Pittsburgh area, members of the conspiracy split the heroin and sold it to other heroin distributors in the Pittsburgh area. During portions of the conspiracy, members of the conspiracy were making weekly trips between New Jersey and the Pittsburgh area transporting, on the monthly basis, hundreds of thousands of dollars and multiple kilograms of heroin. The conspiracy lasted from at least 2008 until 2012. The evidence presented at trial included controlled purchases of heroin, firearms, heroin, money, cellular telephone, and other evidence seized pursuant to search warrants, communications among the conspirators intercepted pursuant to Court authorization, and the seizure of heroin from the hidden compartment of one of the vehicles used to transports money and heroin between New Jersey and the Pittsburgh area.
Judge Walton scheduled sentencing for both defendants for October 16, 2017 The law provides for a total sentence for Pryor of 40 years in prison, a fine of $5 million, or both. The law provides for a total sentencing for Yarbough of life imprisonment, a fine of $10 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the and the prior criminal history, if any, of the defendants.
The Greater Pittsburgh Safe Streets Task Force consisting of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Dept., Oakdale Police Dept, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Pryor and Yarbough. The Duquesne Police Department and the Pennsylvania State Police also participated in the investigation.
McLean County Man Sentenced to Five Years in Prison for Receiving Child PornographyRead the Press Release
PEORIA, Ill. – Stephen F. Croker, 43, of Normal, Ill., was sentenced today to five years (60 months) in federal prison for receiving child pornography. The court also ordered that Croker remain on supervised release for eight years following his release from incarceration. Croker will be required to register as a sex offender.
Croker pleaded guilty on January 12, 2017. According to court documents, Croker was a member of Playpen, a hidden website dedicated to the sharing of child pornography that operated on the Tor anonymity network from August 2014 until March 2015. Between September 2014 and March 2015, Croker logged into Playpen and downloaded content depicting the sexual exploitation of children. Upon a search of his residence, agents located a USB thumb drive that contained more than 2,000 images and 54 videos of child pornography.
Assistant U.S. Attorney Ronald L. Hanna prosecuted the case. The FBI conducted the investigation.
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.
Maryland Doctor Charged with Conspiracy to Commit Bank Fraud and Making False Statements in Loan RequestsRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that Dr. Zahid Aslam, 44, of Elkton, Maryland, was charged by the federal grand jury on June 15, 2017, in a three-count Indictment with conspiracy to commit bank fraud and false statements on loan applications.
Count 1 charges the defendant with Conspiracy to Commit Bank Fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties for Count 1 are a term of imprisonment of thirty years; a fine of $1,000,000.00; a term of supervised release of five years; a $100 special assessment; and mandatory restitution.
Counts 2 and 3 charge the defendant with making false statements in loan requests, in violation of Title 18, United States Code, Sections 1014 and 2. The maximum penalties for each of Counts 2 and 3 are a term of imprisonment of 30 years; a fine of $1,000,000.00; a term of supervised release of five years; a $100.00 special assessment; and mandatory restitution.
The Indictment alleges that Dr. Aslam, a doctor with practices in Delaware, Maryland, New Jersey, and Pennsylvania, entered into a bank fraud scheme with Tae Kim, his loan officer at Citibank and WSFS Bank, respectively. According to the Indictment, Aslam recruited two other associates to misrepresent in loan applications that they were the true borrowers and operators of medical practices, when, in actuality, Aslam owned and operated the practices and ultimately controlled the loan proceeds. The Indictment alleges that Aslam used the third parties to apply for the loans because Aslam knew that he would not otherwise qualify for financing had he applied on his own behalf. In addition, the Indictment alleges that Aslam and Kim concealed the existence of an extensive financial relationship between the two from Citibank and WSFS during the period in which Kim acted as Aslam’s loan officer, including their joint ownership of businesses, as well as large cash payments and a BMW sedan that Aslam provided to Kim.
Acting U.S. Attorney Weiss said, “The indictment alleges that the defendant defrauded two financial institutions by misrepresenting the actual owners and operators of two medical practices and by failing to disclose a significant financial relationship with his former loan officer. It is critical that borrowers provide accurate information to financial institutions and our office is committed to prosecuting those who fail to do so.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorneys Robert F. Kravetz and Jennifer L. Hall.
Members of the public are reminded that an Indictment is only an allegation and that a defendant is presumed innocent until proven guilty.
Mandaree Man Found Guilty of Sexual Abuse and Attempted Tampering with a WitnessRead the Press Release
BISMARCK – United States Attorney Christopher C. Myers announced that on June 21, 2017, a federal jury convicted Kalolo Nathaniel Iu, 28, Mandaree, ND, on charges of Sexual Abuse and Attempted Tampering with a Witness.
Evidence presented at trial showed that between November 20, 2016, and November 21, 2016, Kalolo Iu physically assaulted and sexually abused the mother of his children on the Fort Berthold Indian Reservation. Specifically, on November 20, 2016, Iu punched and kicked the victim multiple times and, because of this assault, the victim sustained several bruises across her body, including a black eye that was swollen shut. The next morning, on November 21, 2016, approximately twelve hours after assaulting the victim, Iu climbed on top of and engaged in forcible sexual intercourse with the victim. introduced at trial also demonstrated that when Iu got on top of and engaged in sexual intercourse with the victim, she told Iu “no.” She tried to push Iu away using her hands and legs, and held up her underwear as the defendant pulled them down because she was scared that Iu would physically assault her again. She was also in substantial pain as a result of Iu assaulting her the previous night.
On March 10, 2017, law enforcement arrested Iu on the federal sexual abuse warrant. Subsequent to Iu’s arrest on this warrant, and in order to influence and prevent the victim’s testimony at trial, Iu contacted the victim multiple times. Specifically, when Iu spoke with the victim, he attempted to intimidate, threaten, and persuade her to both lie to law enforcement and to drop the sexual abuse charge against him.
Furthermore, evidence introduced at trial demonstrated that Iu had previously physically assaulted, threatened, and stalked the victim and, on January 5, 2012, because of one of these prior physical assaults, Iu received a federal conviction for Assault Resulting in Serious Bodily Injury in the United States District Court for the District of North Dakota.
Sentencing for Kalolo Iu has been scheduled for October 2, 2017, at 9:00 a.m. in Bismarck, ND.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jonathan O’Konek prosecuted the case.
Man from Grants Pleads Guilty to a Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Moises Eufelio Martinez, Jr., 43, of Grants, N.M., pled guilty this morning in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge.
Martinez was arrested in Jan. 2017, on a criminal complaint charging him with possessing methamphetamine with intent to distribute and possessing firearms in furtherance of a drug trafficking crime. The complaint alleged that Martinez committed the crimes on Dec. 19, 2016, in Lea County, N.M. According to the complaint, officers of the Lea County Drug Task Force seized approximately 901.5 gross grams of methamphetamine, drug paraphernalia, firearms and ammunition following the execution of search warrants on Martinez’s person and a hotel room.
During today’s proceedings, Martinez pled guilty to a felony information charging him with possessing methamphetamine with intent to distribute. In entering the guilty plea, Martinez admitted that on Dec. 19, 2016, he was in possession two bags containing methamphetamine and a loaded handgun when he was searched by Lea County Drug Task Force officers. Martinez acknowledged that he intended to distribute the methamphetamine to others and that he was carrying the firearm to protect himself, the methamphetamine, and any money he received from the sale of the methamphetamine.
At sentencing, Martinez faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the New Mexico HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Man Sentenced on Federal Drug Conspiracy ChargeRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated that Asuncion Sarminento Arguello a/k/a Asuncion Arguello Sarminento, age 34, of Veracruz, Mexico, was sentenced in federal court today to 108 months imprisonment followed by a term of three years’ supervised release. On February 27, 2017, Arguello entered a guilty plea in federal court in Florence, South Carolina, to conspiracy to possess with intent to distribute and distribution a quantity of heroin and a quantity of cocaine in violation of 21 U.S.C. §§ 841(a)(1) and 846. United States District Judge R. Bryan Harwell, of Florence, imposed the sentence.
This case was part of an extensive investigation conducted by agents of the Drug Enforcement Administration (DEA), the Fifteenth Circuit Drug Enforcement Unit (DEU) and the Florence County Sheriff’s Office (FCSO) into the sale of heroin and other illegal drugs in the Horry County, South Carolina area. Arguello was identified as a possible heroin distributor. Evidence presented at the change of plea hearing and sentencing hearing established that agents made a controlled purchase of a quantity of heroin from Arguello in January 2016. Several months later, based on additional information learned during the investigation, agents stopped a vehicle occupied by Arguello. Agents searched the vehicle and located a loaded firearm, over 1 kilogram of heroin and nearly 500 grams of cocaine.
The case was investigated by agents of the Drug Enforcement Administration (DEA), the Fifteenth Circuit Drug Enforcement Unit (DEU), and the Florence County Sheriff’s Office (FCSO). Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Man Sentenced for Illegal Re-Entry ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Jose Hernandez Guerrero, age 39, from Pamplico, was sentenced in federal court in Florence, South Carolina, for Illegal Re-entry into the United States after deportation, in violation of 8 U.S.C. § 1326(a)(2). United States District Judge R. Bryan Harwell, of Florence, sentenced Guerrero to 15 months imprisonment followed by three years of supervised released.
Evidence presented at the change of plea hearing on February 27, 2017, established that on October 19, 2016, ICE-Enforcement and Removal Operations Officers from Charleston discovered Guerrero while he was in custody at the Florence County Detention Center on state charges. Records checks revealed that Guerrero was a native and citizen of Mexico who had previously been deported from the United States. Guerrero has never received permission to enter or remain in the United States.
The case was investigated by agents of Immigration and Customs Enforcement-Enforcement and Removal Operations. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
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Man Sentenced for Illegal Re-Entry ChargesRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Efran Bautista-Ayala, age 45, from Myrtle Beach was sentenced in federal court in Florence, South Carolina, for Illegal Re-entry into the United States after deportation, in violation of 8 U.S.C. § 1326(a)(2). United States District Judge R. Bryan Harwell, of Florence, sentenced Bautista-Ayala to 18 months imprisonment followed by three years of supervised released.
Evidence presented at the change of plea hearing on February 27, 2017, established that on November 9, 2016, ICE-Enforcement and Removal Operations Officers from Charleston discovered Bautista-Ayala while he was in custody at the Horry County Detention Center on state charges. Records checks revealed that Bautista-Ayala was a native and citizen of Mexico who had previously been deported from the United States. Bautista-Ayala has never received permission to enter or remain in the United States.
The case was investigated by agents of Immigration and Customs Enforcement-Enforcement and Removal Operations. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
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MS-13 Member Sentenced to 160 Months in Prison for Racketeering-Related ChargesRead the Press Release
Today, an MS-13 gang member was sentenced to 160 months in prison and three years of supervised release for conspiring and attempting to murder on behalf of the gang.
Attorney General Jeff Sessions, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephen Schenning of the District of Maryland, Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James Tom Kemp of the Greenbelt Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks made the announcement.
“Transnational criminal organizations like MS-13 cannot continue to devastate our communities and our children. They must be stopped. Today’s sentencing sends a warning to all gang and cartel members: we are coming for you,” said Attorney General Sessions. “This outcome shows how strong cooperation between federal, state and local law enforcement can help us win the fight against violent gangs. I applaud the efforts of the fine Assistant U.S. Attorneys and all the dedicated men and women who brought this violent criminal to justice.”
Celvin Eulice Ramos-Meija, aka “Cadejo,” 21, of Columbia, Maryland, was sentenced by U.S. District Judge Peter J. Messitte of the District of Maryland. Ramos-Mejia previously pleaded guilty to conspiracy to commit murder in aid of racketeering and attempted murder in aid of racketeering.
MS-13 is an international gang composed primarily of immigrants or descendants of immigrants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the U.S., operate throughout the U.S., including in Prince George’s County, Montgomery County, and Frederick County, Maryland. Members engage in racketeering activity including murder, extortion, robberies, obstruction of justice and other crimes. MS-13 members are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to his plea agreement, Ramos-Mejia admitted that for the purpose of maintaining and increasing his position in MS-13, he conspired with other MS-13 members to murder a victim that he and his co-conspirators had identified as a “chavala.”
Specifically, the Ramos-Mejia admitted that on June 6, 2016, he and other members and associates of MS-13 approached the victim in Greenbelt, Maryland. Ramos-Mejia admitted that he made an MS-13 sign in the face of the victim, and that he and his co-conspirators then began to attack the victim. According to the plea agreement, the victim survived the attack, but sustained multiple stab wounds and injuries, including lacerations to his abdomen, liver and diaphragm. The victim was hospitalized for 10 days as a result of the attack.
HSI Baltimore, the Greenbelt Police Department, the Prince George’s County Police Department, and the Prince George’s County State’s Attorney’s Office investigated the case. Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland are prosecuting the case.
Loris Man Sentenced on Federal Drug and Firearm ChargesRead the Press Release
Florence, South Carolina---- United States Attorney Beth Drake stated today that Norod Arcane McCullough, age 24, of Loris, South Carolina, was sentenced today in federal court in Florence, South Carolina, for possession with intent to distribute a quantity of heroin and for possession of a firearm in furtherance of a drug trafficking crime. United States District Judge R. Bryan Harwell, of Florence, sentenced McCullough to a total of 72 months imprisonment and five years’ supervised release.
Evidence presented at the guilty plea hearing established that on October 21, 2016, Norod Arcane McCullough was arrested in Conway, South Carolina, for possession of a firearm in a drug trafficking crime and possession of heroin with intent to distribute. The arrest and convictions resulted from the seizure of a backpack containing the firearm and the heroin found in a repossessed vehicle by a local car dealer who called the police. While the police were on the scene McCullough called the car dealer and said that his backpack had been left in the repossessed car and that he wanted it back. When McCullough arrived to retrieve the backpack, he was arrested by the police.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and local Horry County Police departments. Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office prosecuted the case.
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Long Island MS-13 Member Sentenced to 40 Years’ Imprisonment for Two Gang-Related MurdersRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, Melvin Marquez-Sanchez, a member of La Mara Salvatrucha, also known as the MS-13, was sentenced to 40 years in prison by United States District Judge Joseph F. Bianco. Marquez-Sanchez previously pled guilty to racketeering charges in connection with the August 25, 2012 murder of Douglas Martinez in Brentwood, New York, the September 8, 2012 murder of Jose Vallejo in Hempstead, New York, and a conspiracy to kill a rival gang member in Maryland in early 2013.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Timothy D. Sini, Commissioner, Suffolk County Police Department (SCPD); and Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department (NCPD).
“This defendant killed two young men here on Long Island, before fleeing to Maryland, where he sought to continue the murderous agenda of the MS-13,” stated Acting United States Attorney Rohde. “Due to our continuing work with the FBI’s Long Island Gang Task Force, the defendant’s role in these violent crimes has come to an end. Today’s sentence will ensure that the public is protected from this defendant for decades to come.” Ms. Rohde expressed her sincere appreciation to the United States Attorney’s Office for the District of Maryland for its invaluable assistance and cooperation during this prosecution.
“The brutal nature of MS-13’s crimes and the intimidation tactics they use in furtherance of their illegal activity pose a very serious threat to the communities in which they live,” stated FBI Assistant Director-in-Charge Sweeney. “Even more disturbing is the impact their presence has on the children in these neighborhoods, who face this disturbing reality in school and other places where they should be made to feel safe. Gang violence, whether directed toward rival gang members or not, negatively affects society as a whole. Today, thanks to the great work of our partners on the Long Island Gang Task Force and our colleagues at EDNY, we can assure the public we’re continuing to erode the influence of MS-13 in our communities and that Melvin Marquez-Sanchez will no longer have the chance to roam free.”
“The Suffolk County Police Department is staunchly committed to working with our regional and federal law enforcement partners in taking down every single member and associate of MS-13,” Commissioner Sini stated. “These vicious and inhumane individuals have no place in our society. The sentencing of Marquez-Sanchez guarantees he will never be on our streets again and reinforces this department’s strong message to all gang members – we will find you, and you will be prosecuted to the fullest extent of the law.”
“The arrest and sentencing of defendant Marquez-Sanchez is another positive step for our residents and families as it eliminates another MS-13 member from society,” stated NCPD Commissioner Krumpter. “Our main goal is to protect our communities with special emphasis on our young men and women, and I would like to congratulate all of the law enforcement professionals who assisted with this investigation.”
As set forth in the government’s sentencing memorandum and other court filings, Marquez-Sanchez committed two murders on Long Island during the summer of 2012, before fleeing to Maryland, where he continued his affiliation with the MS-13 and plotted to kill a rival gang member. Specifically, on August 25, 2012, Marquez-Sanchez shot Martinez multiple times at point-blank range with a .38 caliber revolver, killing him. Marquez-Sanchez and several other MS-13 members, including an MS-13 leader in El Salvador, decided to kill Martinez for violating the rules of the gang, namely, not “putting in work” (committing acts of violence against rival gang members), not sending enough money to gang leaders in El Salvador, and possibly cooperating with law enforcement authorities. In total, seven MS-13 members have been convicted of racketeering charges in connection with Martinez’s murder.
Two weeks later, Marquez-Sanchez and several other MS-13 members carried out the murder of Vallejo, a suspected rival gang member who was selling drugs in Kennedy Park in Hempstead, New York, which the MS-13 considered to be its turf. After the MS-13 members lured Vallejo to the park, under the guise of purchasing marijuana, Marquez-Sanchez shot Vallejo multiple times with the same .38 caliber revolver and another MS-13 member attacked Vallejo with a machete, slashing his throat and face. Marquez-Sanchez and four other MS-13 members have been convicted of racketeering charges in connection with Vallejo’s murder.
After committing the Martinez and Vallejo murders on Long Island, Marquez-Sanchez fled to Maryland, where he continued his membership in the MS-13. Beginning in January 2013, Marquez-Sanchez and other members of the Sailors clique members conspired to kill an individual who they believed to be a member of the rival 18th Street gang. On several occasions in early 2013, Marquez-Sanchez and other MS-13 members traveled to a specific neighborhood in Maryland for the purpose of killing the victim, but were unable to locate him. However, after Marquez-Sanchez had been arrested on other charges, on March 12, 2013, that victim was located and murdered by Marquez-Sanchez’s co-conspirators.
Today’s sentencing is the latest in a series of prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 35 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Bureau of Alcohol Tobacco Firearms and Explosives, New York State Police, Suffolk County Police Department, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Department, Suffolk County Sheriff’s Department, Hempstead Police Department, and Rockville Centre Police Department.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Raymond A. Tierney, and Paul G. Scotti are in charge of the prosecution.
The Defendant:
MELVIN MARQUEZ-SANCHEZ
Age: 22
Freeport, New York
E.D.N.Y. Docket No. 14-CR-068 (JFB)
Lockport Woman Indicted on Drug ChargesRead 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 a federal grand jury has returned an indictment charging Colette Arne, 66, of Lockport, NY, with distribution of oxymorphone and maintaining a drug-involved premises. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that according to the indictment, on November 5, 2013, and January 6, 2014, the defendant sold oxymorphone to a confidential source working with law enforcement officers. Following the second sale, Arne’s Applewood Drive residence was search with her consent. Officers recovered $24,200 in cash and empty prescription pill bottles. The prescriptions were issued to the defendant and her now-deceased husband.
Arne was arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and released.
The indictment 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
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.
Local Physician, Dr. James M. Crumb, and Mobile Based Physician Group, Coastal Neurological Institute, P.C., paid $1.4 million to Settle False Claims Act AllegationsRead the Press Release
Acting United States Attorney Steve Butler, of the Southern District of Alabama, announced today that Dr. James M. Crumb, a Physical Medicine and Rehabilitative specialist currently practicing in Mobile, Alabama as Mobility Metabolism and Wellness, P.C. (MMW), and Coastal Neurological Institute, P.C. (CNI), a local neurosurgeon physician group, collectively paid $1.4 million to resolve allegations that they violated the False Claims Act (“FCA”) by engaging in fraudulent schemes to maximize payment from the Medicare, Medicaid, and TRICARE health care programs.
“Our office will protect federal health care programs by pursuing providers who bill for medically unreasonable and unnecessary services and engage in fraudulent billing practices to seek payments to which they are not entitled,” said Acting United States Attorney Butler. “We must prevent fraud, waste, and abuse of the Medicare, Medicaid, and Tricare programs as taxpayer dollars are at stake.”
In late December 2015, the United States Attorney’s Office filed a civil lawsuit against Defendants CNI, Crumb, and MMW, on behalf of the Department of Health and Human Services and the Department of Defense. The United States alleged that the Defendants knowingly billed federal health care programs for medically unreasonable and unnecessary ultrasound guidance used with routine lab blood draws, and with Botox and trigger point injections. The United States further alleged that CNI, Crumb, and other CNI physician employees unnamed in the lawsuit, knowingly manipulated billing codes in order to circumvent safeguards implemented by Medicare’s National Correct Coding Initiative to combat improper and fraudulent duplicate claim line billing of certain procedure codes, including ultrasound guidance used with needle placement. As a result of this billing scheme, the Defendants sometimes billed 15 to 30 identical ultrasound guidance claims for a single patient office visit.
The United States’ Second Amended Complaint separately alleged that Crumb knowingly falsified patient diagnoses in order to ensure payment by the federal health care programs. Because those programs do not cover Botox for pain management, Crumb allegedly used diagnoses of uncommon or rare neurological movement disorders for the sole purpose of obtaining reimbursement for the administered Botox injections. The United States further alleged that Crumb ordered inflated dosages of Botox medications paid by the Alabama Medicaid Agency that were not medically necessary and were not used on the patients for whom the medication was prescribed.
The investigation and litigation were conducted by the Office of Inspector General, Department of Health and Human Services (OIG-HHS), and the U.S. Attorney’s Office. Assistant United States Attorneys Deidre Colson and Daryl Atchison handled the case on behalf of the United States. As part of the settlement, Crumb entered into a Corporate Integrity Agreement with OIG-HHS, which obligates Crumb to undertake substantial internal compliance reforms and to submit his federal health care program claims to independent review for the next three years.
The FCA claims settled are allegations only, and there has been no determination of liability.
Lincoln Man Sentenced for Possession of Child PornographyRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Richard Floyd Sandoval, 38, of Lincoln, Nebraska, was sentenced today in Lincoln, Nebraska, to 10 years in prison by United States District Judge John M. Gerrard, for possession of child pornography. In addition to the prison sentence, Sandoval will also serve an additional 15 years on supervised release and will continue to be required to register as a sex offender. Sandoval was already a registered sex offender after being convicted of Sexual Assault of a Child in Lincoln County, Nebraska, in December of 2001.
In May of 2016, the Lincoln Police Department was investigating computers sharing child pornography files via the internet. On that date, an investigator identified an IP address having files available for sharing and he was able to download child pornography over a three-day period. A subpoena was served on the internet service provider and determined that the IP address was registered to Sandoval’s apartment in Lincoln, Nebraska. Investigators then executed a search warrant at Sandoval’s residence. During that search, investigators found a laptop computer in a bedroom on which they were able to locate files depicting sexually explicit conduct involving children under the age of 18 years old. A later forensic investigation revealed 92 videos in a download folder of the user profile and approximately 66 videos of child pornography in the recycle bin and 38 deleted videos.
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 United States 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.
This case was investigated by the Lincoln Police Department.
Leesburg Man Sentenced to 20 Years for Distribution of Child PornographyRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced David Meadows (53, Leesburg) to 20 years in federal prison for distributing child pornography. The Court also ordered him to forfeit various computers and electronic devices that he had used to facilitate the offense. Meadows pleaded guilty on March 17, 2017.
According to court documents, federal agents determined that Meadows had distributed child pornography depicting infants and toddlers via email. The agents traced the activity to Meadows’s residence and executed a search warrant. They also conducted a consent search of his office. Multiple electronic devices, including laptop computers and a cellphone, were seized; forensic analyses confirmed that the devices contained more than 2,800 files depicting child pornography.
"This sentencing underscores the seriousness of the crime of child exploitation," said Ivan J. Arvelo, acting special agent in charge of HSI Tampa. "HSI special agents will aggressively investigate the predators who target the most vulnerable in our society."
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney William S. Hamilton.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.justice.gov/psc.
Leesburg Man Arrested and Charged with EspionageRead the Press Release
ALEXANDRIA, Va. – A Leesburg man made his initial appearance in federal court today on charges that he transmitted Top Secret and Secret documents to an agent of the People’s Republic of China.
According to the affidavit in support of the criminal complaint, Kevin Patrick Mallory, 60, travelled to Shanghai in March and April and met with an individual (PRC1) he believes works for the People’s Republic of China Intelligence Service (PRCIS).
“The conduct alleged in this complaint is serious and should send a message to anyone who would consider violating the public’s trust and compromising our national security by disclosing classified information,” said Dana J. Boente, Acting Assistant Attorney General for National Security and the U.S. Attorney for the Eastern District of Virginia.
“Kevin Mallory was previously entrusted with Top Secret clearance and therefore had access to classified information, which he allegedly shared and planned to continue sharing with representatives of a foreign government,” said Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office. “Furthermore, he allegedly misled investigators in a voluntary interview about sharing of this classified information. The FBI will continue to investigate those individuals who put our national security at risk through unauthorized disclosures of information.”
During a voluntary interview with FBI agents on May 24, Mallory stated that PRC1 represented himself as working for a People’s Republic of China think tank, the Shanghai Academy of Social Sciences (SASS). Since at least 2014, the FBI has assessed that Chinese intelligence officers have used SASS affiliation as cover identities.
Mallory told FBI agents he travelled to Shanghai separately in March and April to meet with PRC1 and PRC1’s boss. After Mallory consented to a review of a device he had been using to communicate with PRC1, FBI viewed a message from Mallory to PRC1 in which Mallory stated that he had blacked out security classification markings on documents transmitted to PRC1. Analysis of the device also revealed a handwritten index describing eight different documents. Four of the eight documents listed in the index were found stored on the device, with three being confirmed as containing classified information pertaining to the same U.S. government agency. One of those documents was classified TOP SECRET, while the remaining two documents were classified SECRET.
Mallory, a self-employed consultant with GlobalEx LLC, is a United States citizen who speaks fluent Mandarin Chinese. He has held numerous positions with various government agencies and several defense contractors. As required for his various government positions, Mallory obtained a Top Secret security clearance, which was active during various assignments during his career. Mallory’s security clearance was terminated in October 2012 when he left government service.
Mallory was arrested today and is charged with gathering or delivering defense information to aid a foreign government, and making material false statements. He faces up to life in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, Acting Assistant Attorney General for National Security and the U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorney John T. Gibbs and Trial Attorney Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-mj-288.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.