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3 August 2017
Three Sentenced for String of Armed RobberiesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced to prison two men and a woman responsible for committing a string of armed robberies in North and South Carolina, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
Joining U.S. Attorney Rose in making today’s is Chief J. Bryan Gilliard of the Monroe Police Department
Jerfrontys Clyburn, 22, of Pageland, S.C. was sentenced to 276 months in prison; Detrez Lamar Timmons, 21, of Wingate, N.C., was sentenced to 144 months in prison; and Yamilez Matos, 21, of Pageland, S.C., was sentenced to 84 months in prison. The defendants were also each ordered to serve three years of supervised release and to pay $2,465 as restitution.
In January 2016, Clyburn, Timmons and Matos pleaded guilty one count of conspiracy to commit robbery of businesses affecting interstate commerce or “Hobbs Act” robbery. Clyburn also pleaded guilty to five counts of Hobbs Act robbery and one count of carrying and brandishing a firearm.
According to filed documents and statements made in court, between July 5, and July 12, 2015, Clyburn, Matos and Timmons robbed six convenience stores located in North and South Carolina. Court records show that Clyburn and Timmons were primarily responsible for robbing the stores at gunpoint and Matos was the get-away driver. According to court records, over a seven-day period, the defendants robbed four businesses in Monroe, N.C., including an On-the-Run gas station, a Marathon gas station, a T&M Foodmart, and a Stop-n-shop convenience store. The co-conspirators also robbed at gun point the M&R Minimart convenience store located in Lancaster, S.C. and the Kountry Korner convenience store located in Pageland, S.C. According to court records, when Clyburn entered the M&R Mini Mart he was carrying a 9mm handgun, which he used to shoot a victim who was inside the store when the robbery occurred.
All three defendants have been in local federal custody. Upon designation of a federal facility they will be transferred to the custody of the Federal Bureau of
Three Men Indicted for Bribing Garden City OfficialsRead the Press Release
An indictment was unsealed charging three Dearborn Heights men with bribing officials from Garden City, announced Acting U.S. Attorney Daniel L. Lemisch.
Joining in the announcement was David P. Gelios, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation.
Charged are Mike Baydoun, 54, Ali Baydoun, 52, and Jalal Baydoun, 38.
The indictment charges that in 2016, the Baydouns conspired with each other to bribe the Mayor of Garden City, Police Chief, and three council members to obtain authorization to open a medical marijuana dispensary in Garden City, and to obtain authorization for a medical marijuana plant grow.
The indictment also charges that in furtherance of this conspiracy, on December 2, 2016, the Baydouns delivered to a Garden City official an envelope containing $15,000 cash, representing three individual bribes in the amount of $5,000 each for three Garden City Council members. The indictment also contains a forfeiture count pertaining to the $150,000 the Baydouns conspired to place into escrow to fund future bribes of officials.
Acting United States Attorney Daniel L. Lemisch said, “Citizens deserve elected officials to make decisions in the best interests of their constituents, not on who’s lining their pockets. Public servants who sell their votes will be held accountable to the fullest extent of the law.”
This prosecution is being handled by Assistant United States Attorneys J. Michael Buckley and Frances Lee Carlson.
Texas Man Pleads Guilty to Conspiring to Illegally Export Radiation Hardened Integrated Circuits to Russia and ChinaRead the Press Release
Peter Zuccarelli, 62, of Plano, Texas pleaded guilty today to conspiring to smuggle and illegally export from the U.S., radiation hardened integrated circuits (RHICs) for use in the space programs of China and Russia, in violation of the International Emergency Economic Powers Act (IEEPA).
Acting Assistant Attorney General for National Security Dana J. Boente and Acting U.S. Attorney Brit Featherston for the Eastern District of Texas made the announcement. The plea was entered before U.S. Magistrate Judge Kimberly Priest-Johnson.
Zuccarelli pleaded guilty to engaging in a conspiracy to smuggle and illegally export from the U.S. items subject to IEEPA, without obtaining licenses from the Department of Commerce. According to the allegations contained in the Information filed against Zuccarelli and statements made in court filings and proceedings, including today’s guilty plea:
Between approximately June 2015 and March 2016, Zuccarelli and his co-conspirators agreed to illegally export RHICs to China and Russia. RHICs have military and space applications, and their export is strictly controlled.
In furtherance of the conspiracy, Zuccarelli’s co-conspirator received purchase orders from customers seeking to purchase RHICs for use in China’s and Russia’s space programs. Zuccarelli received these orders from his co-conspirator, as well as payment of approximately $1.5 million to purchase the RHICs for the Chinese and Russian customers. Zuccarelli placed orders with U.S. suppliers, and used the money received from his co-conspirator to pay the U.S. suppliers. In communications with the U.S. suppliers, Zuccarelli certified that his company, American Coating Technologies was the end user of the RHICs, knowing that this was false. Zuccarelli received the RHICs he ordered from U.S. suppliers, removed them from their original packaging, repackaged them, falsely declared them as “touch screen parts,” and shipped them out of the U.S. without the required licenses. He also attempted to export what he believed to be RHICs. In an attempt to hide the conspiracy from the U.S. government, he created false paperwork and made false statements.
At sentencing, Zuccarelli faces a maximum statutory term of five years imprisonment and a maximum fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the defendant’s sentence will be determined by the court after considering the advisory Sentencing Guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being investigated by the Dallas and Denver Offices of the Department of Homeland Security, Homeland Security Investigations; the FBI; the Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and the Department of Defense, Defense Criminal Investigative Service. This case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas together with the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.
State Parolee Sentenced for Distributing HeroinRead the Press Release
PITTSBURGH – Demetrius Brown was sentenced to 30 months in federal prison for conspiring to distribute heroin while on state parole following prior convictions for trafficking crack cocaine, Acting United States Attorney Soo C. Song announced today.
Brown, age 29, formerly of Pittsburgh, Pa., was sentenced by United States District Court Judge Nora Barry Fischer. Judge Fischer ordered that the prison sentence be served consecutively to any state parole revocation sentence. Judge Fischer also ordered that Brown serve three years of supervised release after he is released from prison.
Assistant United States Attorneys Rachael L. Dizard and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration and the Pittsburgh Police Department led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security/Homeland Security Investigations, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Six People Sentenced in Heroin Trafficking ConspiracyRead the Press Release
GAINESVILLE, FLORIDA – The last of six defendants was sentenced this week for conspiring to distribute heroin and other drug-related charges. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The defendants are:
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Joe Lee McQuay, 39, Ocala, 240 months in prison (180 months for the heroin conspiracy to be served consecutively to a 60-month sentence for a prior narcotics trafficking offense);
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Ivan Jermaine Wims, 41, Gainesville, 144 months in prison;
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Jordan Christopher Wims (Ivan’s son), 22, Gainesville, 36 months in prison;
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Albert Devon Kitchen, 35, Gainesville, 240 months in prison;
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Ticco Earl Wright, 33, Gainesville, 120 months in prison; and
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Danielle Nicole Duncan, 36, Gainesville, 24 months in prison;
The DEA began this drug trafficking investigation in June 2013. The investigation revealed that McQuay supplied heroin to distributor Ivan Wims. After Ivan Wims was arrested on an unrelated case in April 2014, he continued to coordinate his drug activities from custody, directing his son Jordan Wims and Albert Kitchen how to obtain, process, and distribute heroin to the customers. Duncan and Wright were two of these customers. The undercover agent purchased heroin from Jordan Wims, Kitchen, Duncan, and Wright on multiple occasions.
In the fall of 2016, Ivan and Jordan Wims, Kitchen, Wright, and Duncan pled guilty to charges of conspiracy to distribute heroin and distribution of heroin. Ivan Wims and Jordan Wims and Kitchen were responsible for more than one kilogram (2.2 pounds) of heroin in the conspiracy, and Wright and Duncan were responsible for quantities of 100 grams or more of heroin. Additionally, Wright pled guilty to possessing a firearm while trafficking in heroin. In January 2017, McQuay pled guilty to conspiracy to distribute more than one kilogram of heroin.
These cases resulted from an investigation by the Drug Enforcement Administration and the Gainesville Alachua County Drug Task Force, comprised of the Alachua County Sheriff’s Office, the Gainesville Police Department, and the University of Florida Police Department. Assistant United States Attorney Gregory P. McMahon prosecuted the cases.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
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Sioux Falls Man Sentenced on Use of Interstate Facilities to Transmit Information about a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota man convicted of Use of Interstate Facilities to Transmit Information about a Minor was sentenced on July 31, 2017, by U.S. District Judge Karen E. Schrier.
Kevin Dolejsi, (pronounced “Dole – ish”), age 31, was sentenced to 50 months in custody and 5 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund and will have to register as a sex offender.
Dolejsi was indicted for Attempted Transfer of Obscene Material to a Minor and Attempted Enticement of a Minor Using the Internet by a federal grand jury on September 7, 2016. He pled guilty to Use of Interstate Facilities to Transmit Information about a Minor on April 20, 2017.
On August 15, 2016, Kevin Dolejsi, used his cell phone to respond to an advertisement on the internet website Backpage. Dolejsi, sent a number of messages to a female he believed to be 13 years-old to entice her to engage in sexual contact with him. Unknown to Dolejsi, the messages were sent to an undercover law enforcement officer as part of a sting operation. In addition to transmitting the name of the minor, Dolejsi paid for a hotel room and arranged a meeting with the 13 year old girl.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Dolejsi was immediately turned over to the custody of the U.S. Marshals Service.Sentencings for July 31 - August 3, 2017Read the Press Release
Jose Ulices Valenzuela-Gradiz, 35, of San Marcos de Colon, Choluteca, Honduras, was sentenced by Federal District Court Judge Alan B. Johnson on August 3, 2017, for illegal re-entry of a previously deported alien into the United States. Valenzuela-Gradiz was arrested in Worland, Wyoming. He received time served, plus ten 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.
Fermin Fidencio Fausto, 38, of Evanston, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 1, 2017, for being a felon in possession of a firearm. Fausto was arrested in Evanston, Wyoming. He received 72 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Chase Mckay Stagner, 21, of Chico, California, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 1, 2017, for two counts of production of child pornography. Stagner was arrested in California. He received 180 months of imprisonment, to be followed by 15 years of supervised release, and was ordered to pay a $200.00 special assessment and a $5,000.00 Justice for Victims Trafficking Act assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the U.S. Department of Homeland Security.
Christian Alberto Zamorano-Duran, 25, of Cajeme, Sonora, Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on July 31, 2017, for illegal re-entry of a previously deported alien into the United States. Zamorano-Duran was arrested in Casper, Wyoming. He received time served, plus ten 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.
Savannah Convicted Murderer and 19 Others Indicted for Drug Trafficking Conspiracy and Firearm OffensesRead the Press Release
Savannah, GA- Eugene Allen (aka “Poncho”), 41, who is currently serving a life sentence for murder, was one of 20 defendants indicted earlier this week by a federal grand jury sitting in Savannah, Georgia for allegedly operating a drug trafficking organization in Chatham County and elsewhere.
The 22-count indictment alleged that the defendants conspired to traffick powder cocaine, crack cocaine, heroin and marijuana. The indictment also charges numerous firearm offenses. According to allegations in the indictment, members of the conspiracy used drones to smuggle cellular telephones to other conspirators incarcerated in a Georgia Department of Corrections facility. The phones were then used from state prison to facilitate drug trafficking crimes. Members of the conspiracy also allegedly used cotton candy machines and other packages to transfer money for the payment of drugs and to transfer proceeds made from the drug trafficking activities. Publically available records reveal that Eugene Allen is serving life without parole in a Georgia prison for a murder that he committed in Savannah.
The following people were indicted in this case:
EUGENE ALLEN, (41, Savannah)
A/K/A “PONCHO,”
A/K/A “JIG,”
AARON CRAIG HUBBARD, (29, Savannah)
A/KA/ “YUP,”
A/K/A “YAP,”
A/K/A “RED,”
KARTEU OMAR JENKINS, (40, Atlanta)
A/K/A “YAY,”
DANIEL MARTIN, (36, California)
A/K/A “WHITEBOY,”
A/K/A “STACKS,”
RAYMOND NEIL WALLEN, (37, California)
A/K/A “ADDY MAN,”
CHARMAINE NICOLE SIMS, (34, Savannah)
RON BERNARD ALLEN, (41, Savannah)
A/K/A “RON LOW,”
A/K/A “LOW,”
KEITH JAMAL BRIGHAM, (43, Savannah)
A/K/A “GLOCK,”
EDWARD MAURICE TYLER, (41, Savannah)
A/K/A “SKIP,”
ORANDA RASHEED WALKER, (36, Savannah)
A/K/A “ROCK,”
CARLOS EDJUAN ELDER, (40, Savannah)
DEVIN RENARD DABNEY, (39, Savannah)
BRITTANY LATISHA JAMES, (31, Atlanta)
A/K/A “KB,”
TASHA GOODWIN, (36, Savannah)
COLIS JERMAINE ALLEN,
A/K/A “KARLIS JERMAINE,” (39, Savannah)
A/K/A “BUTCH,”
TASHA FELICIA GARDNER, (43, Savannah)
SHAUNTE STAFFORD, (35, Lithonia)
MIA WILLIAMS,
A/K/A “MIA HALL,”
TATONYA SHARI HAILES, (45, Atlanta) andTINA MARIE ADKINS, (34, Savannah)
The Defendants face up to life in prison upon conviction of the crimes charged in the indictment. Acting U. S. Attorney James Durham cautioned that an indictment is only an accusation and is not evidence of guilt. A defendant is entitled to a fair trial, during which it is the Government’s burden to prove a defendant’s guilt beyond a reasonable doubt.
This case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, which is comprised of federal, state and local law enforcement. Agents with the FBI and the Chatham County Counter Narcotics Team (CNT), as well and members of the Savannah-Chatham Metropolitan Police Department (SCMPD) conducted the investigation. Special Assistant U. S. Attorney Noah Abrams and Assistant U. S. Attorney E. Greg Gilluly, Jr. are prosecuting the case on behalf of the United States. For questions, please contact the U. S. Attorney’s Office at (912) 201-2522.
Russian Citizen Sentenced to 46 Months in Prison for Involvement in Global Botnet ConspiracyRead the Press Release
A Russian citizen was sentenced today for his participation in a criminal enterprise that installed and exploited malicious computer software (malware) on tens of thousands of computer servers throughout the world to generate millions of dollars in fraudulent payments. Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division, Acting U.S. Attorney Gregory G. Brooker of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI's Minneapolis Field Office made the announcement.
“The defendant and his co-conspirators sought to turn a network of thousands of infected computers in the United States and around the world into their personal cash machines,” said Acting Assistant Attorney General Blanco. “But cybercriminals like Mr. Senakh should take heed: they are not immune from U.S. prosecution just because they operate from afar or behind a veil of technology. We have the ability and the determination to identify them, find them, and bring them to justice.”
“Working within a massive criminal enterprise, Maxim Senakh helped create a sophisticated infrastructure that victimized thousands of Internet users across the world,” said Acting U.S. Attorney Brooker. “As society becomes more reliant on computers, cybercriminals like Senakh pose a serious threat. This Office, along with our law enforcement partners, are committed to detecting and prosecuting cybercriminals no matter where they reside.”
“The sentence handed down today sends a strong message to international cyber criminals who mistakenly believe they can prey on the American people with impunity,” said Special Agent in Charge Thornton. “The FBI is committed to working closely with our global law enforcement partners to investigate criminal enterprises such as this and hold those responsible to account for their crimes wherever they may be.”
Maxim Senakh, 41, of Veliky Novgorod, Russia, was sentenced to 46 months in prison and will be deported following his release from prison. Senakh pleaded guilty on March 28, to conspiracy to commit wire fraud and to violate the Computer Fraud and Abuse Act. He was indicted on Jan. 13, 2015, and was subsequently arrested by Finnish authorities, who extradited him to the U.S. in February 2016.
According to admissions made in connection with the plea agreement, the malware, which is known as Ebury, harvested log-on credentials from infected computer servers, allowing Senakh and his co-conspirators to create and operate a botnet comprising tens of thousands of infected servers throughout the world, including thousands in the U.S. Senakh and his co-conspirators used the Ebury botnet to generate and redirect internet traffic in furtherance of various click-fraud and spam e-mail schemes, which fraudulently generated millions of dollars in revenue. As part of his plea, Senakh admitted that he supported the criminal enterprise by creating accounts with domain registrars that helped develop the Ebury botnet infrastructure and personally profited from traffic generated by the Ebury botnet.
The FBI Minneapolis Field Office investigated this case. Senior Counsels Aaron Cooper and Benjamin Fitzpatrick of the Criminal Division’s Computer Crime and Intellectual Property Section and former Assistant U.S. Attorney Kevin Ueland of the District of Minnesota prosecuted the case. The government of Finland, the Bundeskriminalamt (BKA), CERT-Bund and the cyber security firm ESET all provided substantial assistance in this case. The Criminal Division’s Office of International Affairs also provided substantial assistance.
Russian Citizen Sentenced to 46 Months in Prison for Involvement in Global Botnet ConspiracyRead the Press Release
A Russian citizen was sentenced today for his participation in a criminal enterprise that installed and exploited malicious computer software (“malware”) on tens of thousands of computer servers throughout the world to generate millions of dollars in fraudulent payments. Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division, Acting U.S. Attorney Gregory G. Brooker of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI's Minneapolis Field Office made the announcement.
U.S. District Judge Patrick J. Schlitz of the District of Minnesota sentenced Maxim Senakh, 41, of Veliky Novgorod, Russia, to 46 months’ imprisonment. Senakh pleaded guilty on March 28, to conspiracy to commit wire fraud and to violate the Computer Fraud and Abuse Act. He was indicted on Jan. 13, 2015, and was subsequently arrested by Finnish authorities, who extradited him to the U.S. in February 2016.
According to admissions made in connection with the plea agreement, the malware, which is known as Ebury, harvested log-on credentials from infected computer servers, allowing Senakh and his co-conspirators to create and operate a botnet comprising tens of thousands of infected servers throughout the world, including thousands in the U.S. Senakh and his co-conspirators used the Ebury botnet to generate and redirect internet traffic in furtherance of various click-fraud and spam e-mail schemes, which fraudulently generated millions of dollars in revenue. As part of his plea, Senakh admitted that he supported the criminal enterprise by creating accounts with domain registrars that helped develop the Ebury botnet infrastructure and personally profited from traffic generated by the Ebury botnet.
“The defendant and his co-conspirators sought to turn a network of thousands of infected computers in the United States and around the world into their personal cash machines,” said Acting Assistant Attorney General Blanco. “But cybercriminals like Mr. Senakh should take heed: they are not immune from U.S. prosecution just because they operate from afar or behind a veil of technology. We have the ability and the determination to identify them, find them, and bring them to justice.”
“Working within a massive criminal enterprise, Maxim Senakh helped create a sophisticated infrastructure that victimized thousands of Internet users across the world,” said Acting U.S. Attorney Brooker. “As society becomes more reliant on computers, cybercriminals like Senakh pose a serious threat. This Office, along with our law enforcement partners, are committed to detecting and prosecuting cybercriminals no matter where they reside.”
“The sentence handed down today sends a strong message to international cyber criminals who mistakenly believe they can prey on the American people with impunity,” said Special Agent in Charge Thornton. “The FBI is committed to working closely with our global law enforcement partners to investigate criminal enterprises such as this and hold those responsible to account for their crimes wherever they may be.”
The FBI Minneapolis Field Office investigated this case. Former Assistant U.S. Attorney Kevin Ueland of the District of Minnesota and Senior Counsels Aaron Cooper and Benjamin Fitzpatrick of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case. The government of Finland, the Bundeskriminalamt (BKA), CERT-Bund and the cyber security firm ESET all provided substantial assistance in this case. The Criminal Division’s Office of International Affairs also provided substantial assistance.
Defendant Information:
MAXIM SENAKH, 41
Veliky Novgorod, Russia
Convicted:
- Conspiracy to Violate the Computer Fraud and Abuse Act, and to Commit Wire Fraud, 1 count
Sentenced:
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46 months in prison
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Rowan Co. Man Sentenced for Online Enticement of A MinorRead the Press Release
CHARLOTTE, N.C. – Timothy Alan Overcash, 52, of Gold Hill, N.C. was sentenced today by U.S. District Judge Robert J. Conrad, Jr. to 150 months in prison for enticement of a minor using a means and facility of interstate commerce, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Overcash to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to court documents and today’s court proceedings, Overcash responded to an online posting soliciting individuals interested in engaging in sexual contact with a minor. From August to September 2016, Overcash had multiple communications with an FBI undercover employee posing as the minor’s parent, during which Overcash discussed his interest in engaging in sexual contact with the minor and made arrangements to meet the minor. Law enforcement arrested Overcash when he arrived at the agreed-upon location to meet whom he thought was an 11-year-old girl, for the purpose of engaging in sexual activities.
Overcash pleaded guilty in February 2017 to one count of online enticement of a minor. He is currently in federal custody and he will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was led by the FBI. The U.S. Attorney’s Office is in charge of the prosecution.
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.
Rio Rancho Man Facing Federal Arson Charge Arising Out of July 31, 2017 Fire at Rio Rancho ChurchRead the Press Release
ALBUQUERQUE – The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has filed a criminal complaint charging Gordon Schuler, 23, of Rio Rancho, N.M., with using fire to damage or destroy a building used in interstate commerce. The charge against Schuler arises out of a fire that was ignited at the Peace Lutheran Church in Rio Rancho, causing extensive damage to the church.
According to the criminal complaint, in the early hours of July 31, 2017, the Rio Rancho Fire Department observed and responded to a fire at the church. After extinguishing the fire, firefighters determined that the fire had caused extensive damage to the church’s sanctuary and heavy smoke damage to the rest of the church. During a neighborhood canvass of the area, ATF Special Agents learned that a business located near the church had surveillance cameras that allegedly recorded Schuler, who was wearing a backpack and carrying a hammer, as he walked through the business’s courtyard in the early hours of the morning. During their investigation, fire investigators allegedly found a backpack and a hammer in the church that appeared to be the ones in Schuler’s possession in the surveillance video footage.
The criminal complaint alleges that fire investigators determined that the fire at the church was purposely caused and the result of arson. It alleges also that the church engages in interstate commerce by donating a percentage of its income to an ecclesiastic council based in Wisconsin.
The Rio Rancho Police Department arrested Schuler on Aug. 1, 2017, on an outstanding state arrest warrant for absconding from probation on a state conviction. Schuler currently is in state custody and will be transferred into federal custody to face the charge in the criminal complaint.
If convicted on the crime charged in the criminal complaint, Schuler faces a statutory penalty of not less than five years nor more than 20 years of imprisonment and a $250,000 fine. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the ATF office in Albuquerque, Rio Rancho Police Department, Rio Rancho Fire Department, Bernalillo County Fire Department, and the State Fire Marshal’s Office of the New Mexico Public Regulation Commission. Assistant U.S. Attorney Paul H. Spiers is prosecuting the case.
Schuler ComplaintRayne man sentenced to 210 months in prison for recording sexually explicit images of a juvenileRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a man from Rayne was sentenced to 17 and a half years in prison for taking video and photographs of a juvenile girl and sending them to his laptop.
Raylin Richard, 37, of Rayne, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of transportation of child pornography using any means or facility in interstate commerce. The court also sentenced him to 15 years of supervised release, fined him $20,000 and requires him to register as sex offender. According to the March 7, 2017 guilty plea, the mother of a juvenile found sexually explicit videos and images of her daughter on Richard’s cell phone on May 16, 2015. Acadia Parish Sheriff’s Office deputies took possession of the phone and found that Richard had taken the video and images while he lived in Crowley, La. After further investigation, Richard’s MacBookAir was searched and the same videos and images were found there as well. Richard later admitted that he knowingly transported the video and images from his phone on April 2, 2015 to his computer.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
The FBI and the Acadia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Robert C. Abendroth and John Luke Walker prosecuted the case.
Philadelphia, PA Man Charged with Illgeal Reentry After DeportationRead the Press Release
Amauris Ventura Alberto Castro, a/k/a “Amauris Castro,” a/k/a “Edison Hernandez,” 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 June 29, 2017, Alberto Castro, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about March 18, 2014.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney M. Beth Leahy.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Woman Sentenced to Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH – A resident of Philadelphia, Pa., was sentenced to 24 months in prison for conspiring to distribute cocaine as part of a group that operated in several locations throughout the country, Acting United States Attorney Soo C. Song announced today.
Brenda Mendez, 37, was sentenced by Chief United States District Judge Joy Flowers Conti. Judge Conti also sentenced Mendez to serve four years of supervised release following her prison sentence.
Assistant United States Attorneys Katherine A. King and Craig W. Haller prosecuted this case on behalf of the United States.
A task force led by the Drug Enforcement Administration conducted the investigation leading to the conviction and sentence in this case. The task force also included several other federal, state, and local agencies from multiple states, including the Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Pennsylvania State Police, the Allegheny County District Attorney’s Office, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Penn Hills Police Department, the Monroeville Police Department, and the McKees Rocks Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Owner of Environmental Training Company Admits to Falsely Certifying Lead Abatement Course CompletionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Tyler C. Amon, Special Agent in Charge of EPA’s Criminal Investigation Division in New England, announced that STEPHEN CRAIG, 66, of Essex, pleaded guilty today in Hartford federal court to one count of making a false statement to the federal government.
According to court documents and statements made in court, STEPHEN CRAIG owned Boston Lead Company LLC (BLC), a Connecticut corporation that provided industrial hygiene and safety services. Doing business as Environmental Training and Assessment (ETA), BLC offered a variety of training courses to individuals working with lead paint and asbestos. STEPHEN CRAIG was the training manager and a primary instructor for those courses, and his son, Matthew Craig, provided hands-on instruction and assisted with course administration, including the grading of examinations.
ETA’s lead and asbestos training courses were subject to regulation under the training provider accreditation requirements of the federal Toxic Substances Control Act (TSCA). TSCA allowed states to obtain U.S. Environmental Protection Agency (EPA) authorization to administer and enforce the standards, regulations and other requirements of the TSCA’s lead and asbestos programs, including the approval of training courses. The State of Connecticut received such authorization for all lead and asbestos programs except the lead program that covered renovations, repairs and painting. Individuals in Connecticut who perform lead abatement activities must be certified by the Connecticut Department of Public Health (CT DPH). To obtain certification, an individual must successfully complete an approved 32-hour lead abatement worker initial training course. ETA applied for and received approval from CT DPH to offer a wide range of lead and asbestos training courses, including lead abatement worker initial and refresher courses.
In August 2011, ETA offered a lead abatement training course at its Middletown facility. STEPHEN CRAIG was the training manager and primary course instructor, and Matthew Craig provided the hands-on training and graded the exams. An undercover EPA agent attended the course under the fictitious identity, seeking a lead abatement worker initial course completion certificate. The agent skipped the first two days of the course, and was two hours late on the third day. Thereafter, the agent attended the course for a total of approximately 15 hours, including approximately three hours of hands-on training. STEPHEN CRAIG was aware that agent did not attend the full training course.
At the conclusion of the course, the agent paid STEPHEN CRAIG $525 in cash and was allowed to sit for the lead abatement worker examination, which was proctored and graded by Matthew Craig. The agent intentionally failed the examination. Although Matthew Craig knew that the agent had failed the examination, Matthew Craig completed questions that the agent had left blank and corrected a sufficient number of incorrectly answered questions to bring the examination grade to a passing grade of 80 percent.
On August 12, 2011, ETA issued a false Certificate of Completion to the agent that stated that the agent had successfully completed a 32-hour lead abatement worker initial training course and passed an examination in accordance with CT DPH standards.
“Asbestos and Lead removal training providers, like Stephen Craig’s businesses, are entrusted with keeping safe the supervisors, workers and the public that hire them,” stated Special Agent in Charge Amon. “Sham trainers will continue to be a focus for EPA enforcement since they pose too great a risk to the public health.”
STEPHEN CRAIG is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on November 2, 2017, at which time he faces a maximum term of imprisonment of five years and a fine of up to $250,000.
Matthew Craig previously pleaded guilty to one count of making a false statement and, on March 14, 2013, was sentenced to two years of probation and ordered to perform 100 hours of community service.
This matter has been investigated by the U.S. Environmental Protection Agency, Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Operators of Bogus Medical Clinics Charged in Conspiracy to Divert Massive Amounts of Prescription Narcotics to the Black MarketRead the Press Release
LOS ANGELES – The operators of seven sham medical clinics were among 12 defendants taken into custody this morning on federal drug trafficking charges that allege they diverted at least 2 million prescription pills – including oxycodone and other addictive and dangerous narcotics – to the black market.
Two indictments returned late last month by a federal grand jury alleges that members of the conspiracy profited from illicit prescriptions that were issued without any legitimate medical purpose through a series of clinics that periodically opened and closed in a “nomadic” style. The fraudulent prescriptions allegedly allowed the conspirators to obtain bulk quantities of prescription drugs that were sold on the street.
Those arrested this morning include Minas Matosyan, an Encino man also known as “Maserati Mike,” who is charged with leading the scheme and controlling six of the sham clinics. Matosyan allegedly hired corrupt doctors who allowed the conspirators to issue fraudulent prescriptions under their names in exchange for kickbacks.
“The two indictments charge 14 defendants who allegedly participated in an elaborate scheme they mistakenly hoped would conceal a high-volume drug trafficking operation,” said Acting United States Attorney Sandra R. Brown. “In addition to generating illicit profits, this scheme helped drive the prescription drug epidemic that is causing so much harm across our nation.”
“This investigation targeted a financially motivated racket that diverted deadly and addictive prescription painkillers to the black market,” said DEA Special Agent in Charge David Downing. “Today’s arrests underscore our resolve – DEA and its law enforcement partners will not tolerate criminal enterprises that fuel and exploit the opioid epidemic.”
The indictments unsealed today and search warrants executed this morning describe how Matosyan would “rent out recruited doctors to sham clinics.” Matosyan allegedly supplied corrupt doctors in exchange for kickbacks derived from proceeds generated when the other sham clinics created fraudulent prescriptions or submitted fraudulent bills to health care programs. In one example described in the court documents, Matosyan provided a corrupt doctor to a clinic owner in exchange for $120,000. When the clinic failed to pay the money and suggested instead that Matosyan “take back” the corrupt doctor, Matosyan demanded his money and said, “Doctors are like underwear to me. I don’t take back used things.”
In a recorded conversation described in court documents, Matosyan discussed how one doctor was paid “for sitting at home,” while thousands of narcotic pills were prescribed in that doctor’s name and Medicare was billed more than $500,000 for purported patient care.
The conspirators also allegedly stole the identities of doctors who refused to participate in the scheme. In an intercepted telephone conversation described in court documents, Matosyan offered a doctor a deal to “sit home making $20,000 a month doing nothing.” When the doctor refused the offer, the conspirators nevertheless created prescription pads in the doctor’s name and allegedly began selling fraudulent prescriptions for oxycodone without the doctor’s knowledge or consent.
According to court documents, the conspirators also issued prescriptions and submitted fraudulent billings in the name of a doctor who at the time was hospitalized and later died.
“The defendants in this scheme heartlessly lined their pockets with cash from the sale of thousands of addictive prescription drugs sold through the black market,” stated IRS Criminal Investigation’s Special Agent in Charge, R. Damon Rowe. “IRS Criminal Investigation, along with our law enforcement partners, will continue to aggressively pursue those who seek to profit from the sale and distribution of illegitimate prescription narcotics creating a drug crisis of epic portions in our country.”
“For the sake of mere profit, the operators of these medical clinics spewed deadly prescription drugs onto our streets. The opioid epidemic gripping this country is well documented and our communities in the Los Angeles area have been impacted,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Too often those ill-gotten gains came at the expense of innocent Americans. It has been a pleasure working with our law enforcement colleagues to bring these people to justice.”
“Today’s enforcement actions, and the long-term multiagency investigation that preceded them, have dealt a major blow to a sophisticated healthcare fraud and identity theft scheme that posed a double threat. Not only did the defendants in this case use physicians’ names to write fraudulent prescriptions and fleece Medicare out of millions of dollars, but they’re also accused of funneling large quantities of dangerous prescription opiates, including oxycodone and hydrocodone, into the community,” said Joseph Macias, special agent in charge for Homeland Security Investigations in Los Angeles. “In collaboration with our law enforcement partners, HSI will continue to aggressively target those who compromise the integrity of our healthcare system and public safety to satisfy their own greed.”
The indictment also charges Matosyan and others – including Glendale-based criminal defense attorney Fred Minassian – with obstruction of justice for allegedly creating fraudulent medical records in an effort to deter the investigation.
After a load of Vicodin was seized from one of the conspiracy’s major customers, Matosyan allegedly oversaw the creation of fake medical paperwork in an effort to make it appear the drugs had been legitimately prescribed. The indictment describes intercepted conversations in which Minassian strategized on how to deceive law enforcement, which included a plan to bribe a doctor to lie to authorities.
The 12 defendants arrested this morning are:
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Minas Matosyan, 36, of Encino, who is accused of leading the scheme by recruiting corrupt doctors, overseeing the theft of other doctors’ identities, and negotiating the sale of fraudulent prescriptions and narcotic pills;
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Armen Simonyan, 52, of Burbank, who allegedly managed the operations at some of the fraudulent clinics;
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Grisha Sayadyan, 66, of Burbank, who allegedly managed the operations at various clinics and sold oxycodone and Vicodin pills directly to black market customers;
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Sabrina Guberman, 45, of Encino, who, while working at the sham clinics, allegedly lied to pharmacies seeking to verify the fraudulent narcotic prescriptions, which included creating and sending fake medical paperwork;
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Frederick Manning Jr., 47, of Santa Ana, allegedly one of the major drug customers of the clinics, who is charged with agreeing to purchase as many as 1,000 pills per week of narcotics from Matosyan;
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Fred Minassian, 50, of Glendale, the criminal defense attorney who allegedly spearheaded the scheme to lie to law enforcement by making it falsely appear that Vicodin seized from Freddie Manning Jr. had been legitimately prescribed by a doctor;
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Ralph Manning, 49, of North Hills (no relation to Frederick Manning Jr.), who is charged with being one of the principal couriers Matosyan used to deliver fraudulent prescriptions and “bulk quantities” of narcotic pills;
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Hayk Matosyan, 30, of Granada Hills, Matosyan’s brother, who allegedly filled fraudulent narcotic prescriptions at pharmacies and sold the resulting narcotics pills to black-market customers.
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Marisa Montenegro, 54, of West Hills, who allegedly filled fraudulent prescriptions;
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Elizabeth Gurumdzhyan, 25, of Hollywood, who allegedly filled fraudulent prescriptons;
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Anait Guyumzhyan, 27, of Hollywood, who allegedly filled prescriptions for oxycodone and returned the drugs to Matosyan-operated clinics in exchange for cash payment; and
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James Wilson, 54, of Venice, who alone is charged in the second indictment with illegally selling oxycodone prescriptions out of a Long Beach clinic that he controlled.
The 12 defendants arrested this morning are expected to be arraigned on the indictment this afternoon in United States District Court.
Authorities are continuing to seek two defendants named in the main indictment. Those fugitives are: Gary Henderson, 62, of Lancaster, who allegedly purchased fraudulent oxycodone prescriptions from Matosyan; and an unidentified conspirator known only by the name “Cindy.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
All of the defendants face significant terms in federal prison if they are convicted. For example, if convicted of the nine counts in which he is charged, Matosyan would face a statutory maximum sentence of 165 years in prison.
The investigation in this case was conducted by the Drug Enforcement Administration; IRS Criminal Investigation; the U.S. Department of Health and Human Services - Office of Inspector General; the Ventura County Sheriff’s Office, Pharmaceutical Crimes Unit; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The primary investigative agencies received substantial assistance from the Los Angeles County Sheriff’s Department, the Los Angeles Police Department, the California Department of Justice, and the Orange Police Department.
The case is being prosecuted by Assistant United States Attorneys Benjamin Barron and Jamie Lang of the Organized Crime Drug Enforcement Task Force.
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One Gangster Disciple Sentenced on RICO Conspiracy Charges While Two Other Gangster Disciples Plead GuiltyRead the Press Release
Jackson, TN – A Jackson, Tennessee Gangster Disciple was sentenced to 292 months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
On July 31, 2017, Daniel Lee Cole, a/k/a "D-Money," 38, was sentenced to 292 months in federal prison for conspiracy to participate in racketeering activities. As part of his plea of guilty entered in December 2016, Cole admitted that he was a past Governor of the 731 region (Jackson, TN) and was also Literature Coordinator. Cole admitted to conspiring to distribute narcotics with the other 15 Gangster Disciples who were included in the indictment.
Cole further admitted to attacking and injuring a rival gang member in 2002; to pointing a handgun at a victim in 2014, while another Gangster Disciples struck the victim with a beer bottle and threatened to kill that victim for witnessing Gangster Disciples criminal activity; and to being involved in an incident where Gangster Disciples assaulted a victim for refusing to recant prior statements made to law enforcement that incriminated a senior member of the gang in 2015. During this last incident, Cole admitted that one of the gang members shot at a vehicle containing the witness and several passengers.
The Gangster Disciples is a highly-organized criminal street gang with nationwide reach. In addition to Tennessee, the gang reportedly operates in more than 35 states. The Gangster Disciples were organized into different positions, including board members, and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers and chief of security for each state or regions within the state where the Gangster Disciples were active; and coordinators and leaders within each local group. The indictment alleges that the Gangster Disciples members and associates participated directly in the criminal activities of the enterprise – including murder,
kidnapping, assault, intimidation of witnesses and victims, narcotics distribution and weapons trafficking.
On the same day that Cole was sentenced, two other Gangster Disciples, Tommy Lee Wilkins, a/k/a "Tommy Gunz" and Byron Montrail Purdy, a/k/a "Ghetto," who were charged in the same indictment, pleaded guilty before U.S. District Judge John T. Fowlkes Jr., to conspiracy to participate in a racketeering enterprise. Wilkins and Purdy are the third and fourth of the 16 indicted defendants to plead guilty. Wilkins is scheduled to be sentenced by the Honorable John T. Fowlkes Jr., on November 17, 2017, at 9:30 a.m. and Purdy will be sentenced before the same Judge on December 1, 2017, at 9:30 a.m.
This case was investigated by the FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Tennessee Bureau of Investigation; JPD Gang Enforcement Team; Memphis Police Department; Shelby County Sheriff’s Office; 28th District West Tennessee Drug Task Force; 26th, 25th, and 30th Judicial District Attorney’s General’s Offices; Sheriff’s Offices for Tipton, Desoto, Madison, and Fayette Counties; and the Police Departments of Bartlett, Germantown and Columbia.
Assistant U.S. Attorney Beth Boswell and Special Assistant U.S. Attorney Sam Stringfellow prosecuted this case on the government’s behalf.
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Navicent Settles Ambulance Fraud Claims for over $2.5MMRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, and Georgia Attorney General Christopher M. Carr announced today a civil settlement with The Medical Center of Central Georgia, Inc., d/b/a The Medical Center, Navicent Health (“Navicent”). Navicent agreed to pay to the United States and the State of Georgia $2,549,742 to resolve allegations that it violated the False Claims Act and the Georgia False Medicaid Claims Act by submitting bills for ambulance transports that were either inflated or medically unnecessary. Additionally, Navicent’s current Corporate Integrity Agreement (CIA) will be heightened and extended to cover the newly resolved conduct. A CIA is an agreement between a private provider of services and the United States whereby the provider, at its own expense, institutes and maintains a program, overseen by the OIG with reviews by an independent review organization, to insure compliance with the laws and regulations regarding participation in federally funded programs.
The settlement marks the end of a 27-month investigation into Navicent’s ambulance billing practices. The investigation revealed two suspected schemes through which Navicent allegedly violated the False Claims Act and the Georgia False Medicaid Claims Act. The first alleged scheme resolved by the settlement concerns non-emergency ambulance transports between hospitals that Navicent billed at an inflated rate by claiming the ambulance trips were emergency trips. The second alleged scheme resolved by the settlement concerns the billing of non-emergency ambulance transports of patients released from the hospital to their residences, skilled nursing facilities, hospital-based diagnostic clinics, or dialysis centers that Navicent billed as emergency transports in violation of ambulance billing rules. It was alleged that in addition to billing many of these transports at an inflated rate, for many of these transports it was neither appropriate nor medically necessary for Navicent to have used and billed for an ambulance at all.
This investigation began with a lawsuit filed by Andre Valentine, a former Navicent paramedic, under the whistleblower provisions of the False Claims Act and the Georgia False Medicaid Claims Act. These statutes allow private citizens to bring civil actions on behalf of the Government and share in any recovery obtained. The case is captioned United States and the State of Georgia, ex rel. Andre Valentine v. Navicent Hospital, Inc., 5:15-cv-152 in the United States District Court for the Middle District of Georgia. Mr. Valentine will receive a share of the settlement payment pursuant to the whistleblower provisions of these statutes.
While Mr. Valentine’s complaint focused on transports between hospitals, the U.S. Department of Health and Human Services Office of Inspector General (OIG) independently identified for investigation Navicent’s billing of emergency ambulance transportation for services provided to patients from the hospital to destinations such as skilled nursing facilities and patient residences. The OIG’s identification was based on data analytics conducted by the OIG’s Office of Management and Policy, Consolidated Data Analysis Center.As a result of this investigation, on May 8, 2017, the United States and the State of Georgia chose to intervene in Mr. Valentine’s complaint and litigate the case in United States District Court. Today’s settlement resolves the pending litigation. Navicent fully cooperated in the investigation, after which the parties agreed to resolve the allegations described herein. The claims covered by the settlement are allegations only, and there has been no determination of liability.
“Ambulance billing has long been an area of potential fraud on the Medicare and Medicaid programs and this office will continue to vigorously investigate and pursue those who attempt to take advantage of the program. We will continue to police ambulance providers throughout Middle Georgia until the message has been received,” said U.S Attorney G.F. “Pete” Peterman. “This case shows the value added when investigating health care fraud in a coordinated manner. By combining two parallel investigations, the Government was able to achieve a valuable recovery on behalf of the taxpayers in the most efficient manner possible.”
“Since Navicent owned and operated both the hospital and ambulances, profits from the systemic, deceptive practice of falsifying 'emergency’ trips would fatten the hospital’s bottom line,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Health and Human Services. “With the power of sophisticated data analytics to augment traditional investigative work, bringing health organizations to justice is surer than ever.”
“Enforcement of the Georgia False Medicaid Claims Act is a top priority for our office,” said Georgia Attorney General Chris Carr. “We appreciate the opportunity to work with our federal law enforcement partners to protect Georgia taxpayers and pursue those who attempt to inflate the costs of the Medicaid services they are trusted to facilitate.”
The case was investigated by the Department of Health & Human Services, Office of Inspector General, Investigators Enedelia Bostrup and Shaketia Morgan of the United States Attorney’s Office for the Middle District of Georgia, and Investigator Trenton Williams and Chief Investigative Auditor Anita Reddick of the Georgia Medicaid Fraud Control Unit, a division of the Georgia Attorney General's Office. The United States’ civil settlement was reached by Assistant United States Attorneys Todd P. Swanson and Aimee J. Hall. The State of Georgia’s civil settlement was reached by Assistant Attorney General Elizabeth White.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603, and Katelyn McCreary, Director of Communications for the Office of the Attorney General of Georgia, at (404) 463-5462.
Naples Couple Indicted for Smuggling FirearmsRead the Press Release
Fort Myers, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Miguel Jiminez Borda (38) and Alejandra Maria Mayo (34), both of Naples, with two counts of attempting to smuggle firearms from the United States to Bolivia. If convicted, each faces a maximum penalty of 10 years in federal prison per count. The indictment also notifies the couple that the United States intends to forfeit the firearms that they attempted to smuggle.
According to court documents, on June 27 and 28, 2017, Jiminez Borda and Mayo paid nearly $6,000 in cash to ship five boxes from the United States to Bolivia. The couple provided Federal Express with a fictitious sender name and labeled the box contents as “documents.” Federal agents searched the boxes and found more than 15 firearms hidden within hardened foam insulation, many of them AK-47 and AR-15 type weapons. The couple has allegedly shipped an estimated 50 such boxes to Bolivia since August 2016.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It will be prosecuted by Assistant United States Attorney Michael V. Leeman.
Monroe County Man Charged with Sex Trafficking of A MinorRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David R. Parker, age 39, of Saylorsburg, Pennsylvania, was charged in a criminal information with sex trafficking involving a minor.
According to United States Attorney Bruce D. Brandler, the criminal information alleges that from June 1, 2010 to August 31, 2010, Parker engaged in sex trafficking involving a minor.
The investigation was conducted by the Federal Bureau of Investigation and the Pennsylvania Office of Attorney General. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
The Criminal Information was filed pursuant to a plea agreement, which is subject to approval by the court, wherein it is indicated that Parker be sentenced to a term of imprisonment of not less than 360 months, sexual offender registration, and a lifetime of supervision by a probation officer following his release.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mexican Meth Smugglers Sent to PrisonRead the Press Release
LAREDO, Texas – Two Mexican nationals convicted of attempting to import crystal methamphetamine from Mexico have been ordered to federal prison, announced Acting U.S. Attorney Abe Martinez. Juan Jose Acevedo-Azua, 38, and Veronica Rios-Rojas, 37, pleaded guilty Aug. 8 and 10, 2016, respectively.
Today, U.S. District Judge George P. Kazen ordered Acevedo-Azua and Rios-Rojas to serve 120 and 98 months, respectively. Not U.S. citizens, both are expected to face deportation proceedings following their release from prison. In handing down the sentence, Judge Kazen noted that Acevedo-Azua’s higher sentence was due in part because he admitted this was his second or third trip for the same smuggler.
On April 12, 2016, Acevedo-Azua and Rios-Rojas entered the U.S. from Nuevo Laredo, Mexico, and approached the Lincoln-Juarez International Bridge and Gateway to the Americas International Bridge, respectively. Acevedo-Azua had almost 54 kilograms of the crystal methamphetamine concealed within the Ford F-150 he operated, while Rios-Rojas had approximately 34 kilograms within her Nissan Altima. The investigation revealed that each worked for the same individual in Mexico.
Both have been in custody since their arrests where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Homero Ramirez prosecuted the case.
Man Pleads Guilty to Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MAURICIO RODRIGUEZ-BORJAS, age 38, a citizen of Honduras, pled guilty yesterday to a one-count Indictment for illegal re-entry of removed alien.
According to the court documents, on June 1, 2017, RODRIGUEZ-BORJAS, was found in the United States after having been deported previously on October 28, 2013.
RODRIGUEZ-BORJAS faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for October 4, 2017.
Acting U.S. Attorney Evans praised the work of the Immigration and Customs Enforcement in investigating this matter.
Man Pleads Guilty to Destruction of Government PropertyRead the Press Release
Acting U.S. Attorney Duane A. Evans, announced that BOBBY JOSEPH HAMMOND, age 38, pled guilty yesterday to a one-count Bill of Information for destruction of government property.
According to the court documents, on March 4, 2017, HAMMOND drove up to the south side of the Social Security Administration (SSA) Field Office located at 1616 Joe Yenni Boulevard in Kenner, exited his vehicle, and threw a rock through a second floor window. Damages totaled $1,330.69.
HAMMOND faces a maximum term of imprisonment of ten years and a fine of $250,000, or the greater of twice the gross gain to the defendant, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Ivan L.R. Lemelle set sentencing for November 1, 2017.
Acting U.S. Attorney Evans praised the work of the Federal Protective Services in investigating this matter.
Man Charged for His Role in Creating the Kronos Banking TrojanRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 11, 2017, following a two-year long investigation, a federal grand jury returned a six-count indictment against Marcus Hutchins, also known as “Malwaretech,” for his role in creating and distributing the Kronos banking Trojan. Hutchins, a citizen and resident of the United Kingdom, was arrested in the United States on August 2, 2017, in Las Vegas, Nevada.
In the indictment, Hutchins was charged with one count of conspiracy to commit computer fraud and abuse, three counts of distributing and advertising an electronic communication interception device, one count of endeavoring to intercept electronic communications, and one count of attempting to access a computer without authorization. The alleged conduct for which Hutchins was arrested occurred between in or around July 2014 and July 2015.
Publically available information for the Kronos banking Trojan indicates that it was first made available through certain internet forums in early 2014, and marketed and distributed through AlphaBay, a hidden service on the Tor network. On July 20, 2017, the Department of Justice announced that the Alphabay marketplace was shuttered through an international law enforcement effort led by the United States. See www.justice.gov/opa/pr/alphabay-largest-online-dark-market-shut-down
According to the indictment, the Kronos banking Trojan was designed to harvest and transfer the username and password associated with banking websites as they are entered on an infected computer to a control panel hosted on another computer inaccessible to the victim. According to publically available information, since it was created, Kronos has been configured to exfiltrate user credentials associated with banking systems located in Canada, Germany, Poland, France, and the United Kingdom, among others countries.
Kronos presents an ongoing threat to privacy and security, as the Kelihos botnet was observed loading Kronos on computers through email phishing campaign in late 2016. On April 10, 2017, the Department of Justice announced its efforts to dismantle the Kelihos botnet.
See www.justice.gov/opa/pr/russian-national-indicted-multiple-offenses-connection-kelihos-botnet and www.justice.gov/opa/press-release/file/956506/download
“Cybercrime remains a top priority for the FBI,” said Special Agent in Charge (SAC) Justin Tolomeo. “Cybercriminals cost our economy billions in loses each year. The FBI will continue to work with our partners, both domestic and international, to bring offenders to justice.”
This case was investigated by the Federal Bureau of Investigation Cyber Crime Task in Milwaukee. The case is being prosecuted by Assistant United States Attorneys Michael J. Chmelar and Benjamin W. Proctor.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Man Charged for His Role in Creating the KRONOS Banking TrojanRead the Press Release
WASHINGTON – Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 11, 2017, following a two-year long investigation, a federal grand jury returned a six-count indictment against Marcus Hutchins, also known as “Malwaretech,” for his role in creating and distributing the Kronos banking Trojan. Hutchins, a citizen and resident of the United Kingdom, was arrested in the United States on August 2, 2017, in Las Vegas, Nevada.
In the indictment, Hutchins was charged with one count of conspiracy to commit computer fraud and abuse, three counts of distributing and advertising an electronic communication interception device, one count of endeavoring to intercept electronic communications, and one count of attempting to access a computer without authorization. The alleged conduct for which Hutchins was arrested occurred between in or around July 2014 and July 2015.
Publically available information for the Kronos banking Trojan indicates that it was first made available through certain internet forums in early 2014, and marketed and distributed through AlphaBay, a hidden service on the Tor network. On July 20, 2017, the Department of Justice announced that the Alphabay marketplace was shuttered through an international law enforcement effort led by the United States. See www.justice.gov/opa/pr/alphabay-largest-online-dark-market-shut-down
According to the indictment, the Kronos banking Trojan was designed to harvest and transfer the username and password associated with banking websites as they are entered on an infected computer to a control panel hosted on another computer inaccessible to the victim. According to publically available information, since it was created, Kronos has been configured to exfiltrate user credentials associated with banking systems located in Canada, Germany, Poland, France, and the United Kingdom, among others countries.
Kronos presents an ongoing threat to privacy and security, as the Kelihos botnet was observed loading Kronos on computers through email phishing campaign in late 2016. On April 10, 2017, the Department of Justice announced its efforts to dismantle the Kelihos botnet.
See www.justice.gov/opa/pr/russian-national-indicted-multiple-offenses-connection-kelihos-botnet and www.justice.gov/opa/press-release/file/956506/download
“Cybercrime remains a top priority for the FBI,” said Special Agent in Charge (SAC) Justin Tolomeo. “Cybercriminals cost our economy billions in loses each year. The FBI will continue to work with our partners, both domestic and international, to bring offenders to justice.”
This case was investigated by the Federal Bureau of Investigation Cyber Crime Task in Milwaukee. The case is being prosecuted by Assistant United States Attorneys Michael J. Chmelar and Benjamin W. Proctor.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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For additional information contact:
Public Information Officer Dean Puschnig at 414 297-1700
Mail Carrier Pleads Guilty to Stealing Mail from Independence ResidentsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a mail carrier pleaded guilty in federal court today to stealing gift cards and checks from postal customers in Independence, Mo.
Audrey S. Odell, 34, of Blue Springs, Mo., waived her right to a grand jury and pleaded guilty before U.S. District judge Brian C. Wimes to a federal information that charges her with the theft of mail by a postal employee.
Odell was employed as a mail carrier on routes in Independence. By pleading guilty today, Odell admitted that she stole approximately 150 gift cards and 150 checks from the mail, with an estimated loss of $2,500 from approximately 75 postal customers.
In December 2015, the U.S. Postal Service received complaints regarding mail and possible mail theft occurring on Odell’s routes. In January 2017, postal inspectors placed in the mail test pieces with gift cards addressed to fictitious addresses. Odell was assigned to deliver those pieces of mail. The mail should have been returned to the post-station as not deliverable. On Feb. 8, 2017, postal inspectors prepared three additional test pieces for the route assigned to Odell on that day. Later that day, agents from the U.S. Postal Service-Office of the Inspector General approached Odell in the parking lot and searched her vehicle. The agents found several pieces of mail, including the test mailings.
Under federal statutes, Odell 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 Paul S. Becker. It was investigated by the U.S. Postal Service, Office of Inspector General.
Louisiana Return Preparer Pleads Guilty to Filing Fraudulent ReturnsRead the Press Release
A Louisiana woman pleaded guilty to four counts of preparing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Duane A. Evans for the Eastern District of Louisiana.
According to documents filed with the court, Shawanda Nevers aka Shawanda Hawkins, Shawanda Bryant and Shawanda Johnson, 49, operated a series of businesses in the LaPlace area, including 3LJ’s Café Services & Sports Bar LLC and 3LJ’s Industrial Service Solutions LLC. Between 2011 and 2016, Nevers filed on behalf of her clients income tax returns that included fake business losses, deductions and tax credits and sought refunds to which her clients were not entitled. Despite a federal judge permanently enjoining her from preparing federal tax returns in 2014, Nevers continued to file fraudulent returns. As part of the plea agreement, Nevers admitted that she owes the Internal Revenue Service (IRS) $6,934,764 in restitution, as well as $128,900 to the Deepwater Horizon Oil Spill Trust and $964 to the Social Security Administration.
The sentencing hearing has been scheduled for Nov. 15 before U.S. District Court Judge Susie Morgan. Nevers faces a statutory maximum sentence of three years in prison on each count, as well as a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Evans commended special agents of IRS Criminal Investigation and U.S. Secret Service, who conducted the investigation, and Assistant U.S. Attorneys Hayden Brockett and Loan “Mimi” Nguyen, and Trial Attorney Grace Albinson of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Local Tax Return Preparer Pleads Guilty to Fraudulent Refund SchemeRead the Press Release
HOUSTON – A tax return preparer who operated a local business under various names has been convicted of willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, announced acting U.S. Attorney Abe Martinez.
According to the criminal information and plea agreement filed in the record of the case, Albert Bobby Daniels Jr. was in the business of preparing income tax returns and operated that business under various names including Home Based Business Tax Services in Houston. Daniels admitted he willfully placed numerous false items on his clients’ income tax returns in an attempt to generate excessive refunds.
The tax return Daniels prepared that served as the factual basis of today’s plea resulted in a tax loss to the United States of $7,263. As part of the plea, Daniels admitted that the total loss to the National Treasury was at least $257,590 for the approximate 45 fraudulent tax returns he prepared. Daniels has agreed to make full restitution to the IRS.
U.S. District Judge Alfred H. Bennett, who accepted the guilty plea, has set sentencing for Oct. 12, 2017. At that time, Daniels faces up to three years in federal prison and a possible $250,000 fine.
The Austin office of IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Liberian National Sentenced to Prison in Connection with $9.5 Million Investment Scheme of Gold and DiamondsRead the Press Release
CHARLOTTE, N.C. – Cassell Anthony Kuoh, a/k/a “Tim Borrol,” was sentenced today to 87 months in prison in connection with an investment fraud scheme involving gold and diamonds, that defrauded victims of more than $9.5 million, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. presided over today’s sentencing hearing and ordered Kuoh to pay $16.2 million as restitution. Kuoh will also be subject to deportation proceedings upon the completion of his federal sentence.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas.
“Kuoh was an extremely sophisticated fraudster who utilized Liberian government connections to help effectuate his fraud,” said U.S. Attorney Rose. “Many of his victims, who are located in our district and throughout the world, will never recover from the devastating financial losses wrought by Kuoh’s fraudulent scheme. On behalf of those victims, we are delighted that Mr. Kuoh will be serving a significant sentence in the Federal Bureau of Prisons.”
According to public records and statements made in open court, from June 2012 to December 2016, Kuoh orchestrated a fraudulent scheme involving the purchase, shipment and export of unrefined gold and rough diamonds allegedly located in Liberia. Kuoh was a Liberian national who lived in Liberia and owned Phoenix Mining and Investment Group (Phoenix Mining), which purported to be in the precious metal and gemstone business.
According to court records, Kuoh convinced victims to invest with Phoenix Mining by promising, among other things, that their money would be used to purchase, ship, and transfer gold and diamonds from Liberia into the United States, to be refined or cut and sold for profit. As part of the scheme, Kuoh and his co-conspirators invited victims to Africa to visit the mining operations, which had been set up by Kuoh to look legitimate and profitable, and to inspect the gold and diamonds, which Kuoh had borrowed from others.
While in Liberia, Kuoh and his co-conspirators also arranged meetings between potential victim investors and alleged custodians of gold. In at least one instance, Kuoh set up armed personnel to deliver large quantities of gold bars for inspection by potential investors, which convinced multiple victims that Kuoh did in fact own large quantities of gold. Kuoh also visited victims in the United States, bringing with him samples of gold to lull potential investors into believing that the gold and diamond import scheme was legitimate.
According to court records, once he received the funds from his victims for the purported purchase of gems and precious metals, Kuoh began to use stall tactics and to make up lies about the location and U.S. Customs status of the purported shipments of gold and diamonds. For example, Kuoh created a website for a fake shipping company, McDan Shipping Company, Ltd., and provided victims with false tracking information, showing that the packages were purportedly proceeding to their final destination in the U.S. Kuoh and his co-conspirators updated the website with “new” tracking information, which frequently showed that the packages were encountering problems and impediments along that way and required victims to pay additional fees, which increased the fraud proceeds for Kuoh and others. These concocted problems included things such as: airport storage fees, additional permits and certificates, and the need for additional official documents and stamps from Liberian officials.
Kuoh and his co-conspirators also provided victim investors with false, forged and fraudulent documents purported to be from various organizations in the U.S, Liberia and elsewhere. Kuoh and others used the fraudulent documents to create the false impression that the Liberian government required additional monies be paid, before the necessary approvals were given to allow the shipment of the gold and diamonds to proceed.
According to court records, contrary to Kuoh’s representations to his victims, the gold and diamonds never arrived in the United States, and were never held by U.S. Customs or any other agency. In reality, Kuoh used the investors’ money to fund his personal lifestyle, including to purchase a house in Harrisburg, North Carolina, and to pay for other expenditures.
On March 8, 2017, Kuoh pled guilty to one count of conspiracy to commit wire fraud. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Kuoh’s co-defendant, Emmanuel Tarr, 30, of Liberia, has also pleaded guilty to wire fraud conspiracy and is currently awaiting sentencing.
The investigation was led by ICE-HSI. Assistant United States Attorney Corey Ellis, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Las Cruces Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Luther Whelan, 42, of Las Cruces, N.M., was sentenced today in federal court to 84 months in prison followed by four years of supervised release for his conviction on methamphetamine trafficking charges.
Whelan was arrested in Sept. 2015, on a criminal complaint charging him with methamphetamine trafficking offenses. According to the complaint, law enforcement officers seized approximately 101.5 grams of methamphetamine and drug paraphernalia from Whelan on Feb. 7, 2015, and approximately 24.4 grams of methamphetamine and 2.8 grams of heroin from Whelan on July 23, 2015.
Whelan was subsequently indicted on Dec. 9, 2015, and charged with possession of methamphetamine with intent to distribute on Feb. 7, 2015, and July 23, 2015. According to the indictment, Whelan committed the offenses in Dona Ana County, N.M.
On March 4, 2016, Whelan pled guilty to Count 1 of the indictment charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Whelan admitted that on Feb. 7, 2015, he possessed approximately 102 grams of methamphetamine with the intention of selling it to others.
This case was investigated by the Las Cruces office of the FBI and was prosecuted by Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office.
Laplace Woman Pleads Guilty to Embezzling over $940,000 from EmployerRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ANGIE CAMBRE, age 43, of Laplace, pled guilty yesterday to a one-count Bill of Information charging her with wire fraud.
According to court documents, CAMBRE was hired in August 2011 to be the accountant and bookkeeper for a commercial printing company headquartered in New Orleans that specializes in printing materials, such as flyers and manuals, geared toward the automotive industry (“Company A”). Between November 2011 and June 2016, CAMBRE embezzled approximately $940,336.24 from Company A in a series of approximately 3,300 individual transactions, without Company A’s knowledge or authorization. CAMBRE did so by causing payments to be sent from one of Company A’s bank accounts to accounts under her control and to repay debts due and owing related to her personal use.
CAMBRE faces a maximum term of imprisonment of not more than 20 years followed by up to 3 years of supervised release, and a $250,000 fine. As part of her plea, CAMBRE agreed to repay Company A $940,336.24 in restitution. U.S. District Judge Sarah S. Vance scheduled sentencing for December 13, 2017.
Acting U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Lancaster Man with AK-47 Charged with Intent to Distribute HeroinRead the Press Release
Jose Enrique Gonzalez a/k/a “Jossy Gonzalez,” of Lancaster, PA, was charged today by four-count Indictment with possession with intent to distribute heroin, using and carrying a firearm in relation to a drug trafficking offense, possessing a firearm prohibited by the National Firearms Act, and possessing a firearm after sustaining a prior felony conviction, announced Acting United States Attorney Louis D. Lappen.
According to the Indictment, on June 14, 2016, in Lancaster, the defendant was found in possession of quantities of heroin, an AK-47 style rifle, multiple magazines of ammunition including a loaded 75-round drum magazine, and a silencer. If convicted, the defendant could face up to 50 years of incarceration, a lifetime of supervised release, a $1,020,000 fine, and a $400 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms (ATF), the Lancaster County Drug Enforcement Task Force, Lancaster County Detectives, and the Lancaster City Police Department. The case is being prosecuted by Assistant United States Attorney Sean McDonnell.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lake Charles man sentenced to more than 10 years in prison for drug, firearm chargesRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Lake Charles man was sentenced Wednesday to 130 months in prison for distributing cocaine and possessing firearms.
Kevin Ardoin, 36, of Lake Charles, was sentenced by U.S. District Judge Jay C. Zainey on one count of possession with intent to distribute cocaine and one count of possession of a firearm in furtherance of a drug trafficking crime. He was also sentenced to five years of supervised release. According to the May 3, 2017 guilty plea, law enforcement agents recorded Ardoin selling cocaine on June 22, 2016 in Lake Charles. Agents searched his home and found 1.9 ounces of crack cocaine, .5 ounces of powder cocaine, 13 Xanax pills, 14 grams of marijuana and $2,265. The next day, agents learned there were more drugs in Ardoin’s home than was previously found. They searched his home again and found $87,070, 432 grams of cocaine, and four firearms, which included a loaded Taurus .410 caliber pistol, a Masterpiece Arms .45 caliber pistol, a Taurus .40 caliber pistol, and a Smith and Wesson .38 caliber revolver.
The FBI and Calcasieu Parish Combined Anti-Drug Taskforce conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Kinloch Officials Admit to Stealing Money from the Kinloch Fire Protection DistrictRead the Press Release
St. Louis, MO – Darren Small, 51, and Jayna Small, 40, husband and wife of Kinloch, MO, have entered pleas of guilty to charges in connection with their theft of funds from the Kinloch Fire Protection District.
Jayna Small was President of the Board of Directors of the District. While she was President of the Board, she and her husband Darren Small, who was Chief of the Kinloch Fire Department and Mayor of the City of Kinloch, conspired to divert funds from the District’s bank account for their own personal use, including to purchase clothing, food, liquor, cigarettes, and other items. They also used funds from the District to pay for their personal household utility bills. Jayna Small also admitted that she diverted funds from the District by writing a check from the District’s bank account in the amount of $7,200.00 and using the funds from the check to pay for the funeral expenses of a relative.
Darren Small appeared today before United States District Judge Catherine D. Perry and pled guilty to one count of conspiracy to commit access device fraud and one count of access device fraud. Sentencing has been set for October 25, 2017.
Jayna Small appeared before Judge Perry on July 24, 2017 and pled guilty to one count of conspiracy to commit access device fraud and one count of interstate transportation of money obtained by fraud. Sentencing has been set for October 17, 2017.
Conspiracy to commit access device fraud carries a maximum penalty of five years in prison and/or a fine of up to $250,000, or both. Access device fraud and interstate transportation of money obtained by fraud each carry a maximum penalty of ten years in prison and/or a fine of up to $250,000, or both.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
KC Woman Pleads Guilty to Obstruction of Justice After Forging Court Order for ReleaseRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman who forged a court order to get another inmate released from prison, pleaded guilty in federal court today to obstruction of justice.
Margie P. Shephard, 51, of Kansas City, Mo., pleaded guilty before U.S District Judge Roseann Ketchmark to obstruction of justice.
Shephard was incarcerated as an inmate at Federal Prison Camp-Bryan in Bryan, Texas, after being sentenced to 10 years for conspiracy to commit bank fraud and identity theft, aggravated identity theft and obstruction of justice.
By pleading guilty today, Shephard admitted that, while incarcerated, she fabricated a document purporting to be an Amended Judgment in a Criminal Case for fellow inmate Leann Raejeana Turner, 48, of Blue Springs, Mo. Turner was also incarcerated at Federal Prison Camp-Bryan after being sentenced to three years in prison for her role in an $11 million mortgage fraud scheme. The fake court order, with a reduced sentence of 120 days of imprisonment for Turner (which would have resulted in her immediate release), included the forged signature of U.S. District Judge Greg Kays.
Shephard mailed the fake court order to her sister, who then faxed it to prison officials from a Sunfresh grocery store in Kansas City, Mo., on Nov. 9, 2014. Upon receiving the document, prison officials determined it was a forgery.
Under federal statutes, Shephard is subject to a sentence of up to 20 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 Rudolph R. Rhodes, IV. It was investigated by the FBI.
Justice Department Announces that Commitment to Reducing Violent Crime Stemming from Illegal Immigration will be Required for Participation in Public Safety Partnership ProgramRead the Press Release
The Department of Justice today announced that, in order to be selected for participation in the Department’s Public Safety Partnership (PSP) program, local jurisdictions must show a commitment to reducing crime stemming from illegal immigration.
In making the announcement, Attorney General Jeff Sessions said:
“By protecting criminals from immigration enforcement, cities and states with so-called 'sanctuary' policies make all of us less safe. We saw that just last week, when an illegal alien who had been deported twenty times and was wanted by immigration authorities allegedly sexually assaulted an elderly woman in Portland, a city that refuses to cooperate with immigration enforcement.
"By forcing police to go into more dangerous situations to re-arrest the same criminals, these policies endanger law enforcement officers more than anyone. The Department of Justice is committed to supporting our law enforcement at every level, and that’s why we're asking 'sanctuary' jurisdictions to stop making their jobs harder. By taking simple, common-sense considerations into account, we are encouraging every jurisdiction in this country to cooperate with federal law enforcement. That’s what 80 percent of the American people want them to do, and that will ultimately make all of us safer—especially law enforcement on our streets.
“These policies are driven by politics and do not protect their citizens. We will fight them with every lawful tool available."
The PSP program was announced in June and is a training and technical assistance program designed to enhance the capacity of local jurisdictions to address violent crime in their communities. Twelve locations were initially selected and the Department may announce additional sites later this year.
In determining which jurisdictions to select, the Department will ask interested jurisdictions the following questions:
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Does your jurisdiction have a statute, rule, regulation, policy, or practice that is designed to ensure that U.S. Department of Homeland Security (DHS) personnel have access to any correctional or detention facility in order to meet with an alien (or an individual believed to be an alien) and inquire as to his or her right to be or to remain in the United States?
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Does your jurisdiction have a statute, rule, regulation, policy, or practice that is designed to ensure that your correctional and detention facilities provide at least 48 hours advance notice, where possible, to DHS regarding the scheduled release date and time of an alien in the jurisdiction’s custody when DHS requests such notice in order to take custody of the alien?
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Does your jurisdiction have a statute, rule, regulation, policy, or practice that is designed to ensure that your correctional and detention facilities will honor a written request from DHS to hold a foreign national for up to 48 hours beyond the scheduled release date, in order to permit DHS to take custody of the foreign national?
In the attached letters, the Justice Department today formally requested that information from the following four local jurisdictions interested in the PSP program: Albuquerque, New Mexico; Baltimore, Maryland; San Bernardino, California; and Stockton, California
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Inmate at Fci-Berlin Sentenced for Possessing Marijuana While IncarceratedRead the Press Release
CONCORD, N.H. - Acting U.S. Attorney John J. Farley announced that Jesus Silva-Cruz, 42, a citizen of Cuba and an inmate at the federal correctional institution located in Berlin, New Hampshire was sentenced today to eight months in federal prison for possessing marijuana and possessing a prohibited object while an inmate at a federal prison. The sentence will run consecutively to the current sentence being served by Silva-Cruz.
According to statements made in court, on January 17, 2017, correctional staff at FCI-Berlin were conducting routine searches of cells. Silva-Cruz was the sole inmate assigned to cell 103. The staff found three vacuum sealed packages of green leafy material. Laboratory testing of the material proved it was marijuana. The total weight of the material was approximately three ounces.
The Bureau of Prisons was the lead investigative agency in this case. The case was prosecuted by Assistant U.S. Attorney Donald Feith.
Houma Man Pleads Guilty to Meth ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JERMAINE WHITE, age 34, of Houma, pled guilty yesterday to an Indictment charging him with violations of the Federal Controlled Substances Act, in violation of Title 21, United States Code, Sections 841, 841(b)(1)(A) and 846.
According to court documents, WHITE was arrested in August 2015, after coordinating the mailing of over 1000 grams of methamphetamine to Houma through the U.S. Postal Service. Two packages bound for WHITE were intercepted by the United States Postal Inspection Service, which led to a delivery of the packages to two separate addresses utilized by WHITE for drug distribution.
WHITE faces a minimum term of ten years of imprisonment and a maximum term of life imprisonment, a maximum fine of $10,000,000, at least five years of supervised release, and a mandatory $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for December 13, 2017.
Acting U.S. Attorney Evans praised the work of the United States Postal Inspection Service and the Drug Enforcement Administration in investigating this matter. Assistant U.S. Attorney James S. C. Baehr is in charge of the prosecution.
Honduran National Sentenced for Being an Alien in Possession of a FirearmRead the Press Release
BOSTON – A Honduran national residing in Revere was sentenced today in federal court in Boston in connection with illegally possessing a firearm.
Jamir Chicas-Hernandez, 23, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 14 months in prison and three years of supervised release. Chicas-Hernandez will face deportation proceedings upon the completion of his sentence. In May 2017, Hernandez pleaded guilty to one count of being an alien in possession of a firearm.
In 2015 and 2016, a federal investigation identified a network of street gangs which had created alliances to traffic firearms and drugs throughout Massachusetts and generate violence against rival gang members. Based on the investigation, 53 defendants were indicted in June 2016 on federal firearm and drug charges, including defendants who are allegedly leaders, members, and associates of the 18th Street Gang, the East Side Money Gang and the Boylston Street Gang. These gangs operated primarily in the East Boston, Boston, Chelsea, Brockton, Malden, Revere and Everett areas. During the course of the investigation, over 70 firearms, cocaine, cocaine base (crack), heroin and fentanyl were seized.
On April 29, 2015, Chicas-Hernandez was involved in the illegal sale of a Ruger Blackhawk .357 Magnum revolver to a cooperating witness working for law enforcement at an apartment on Endicott Street in Revere. The sale of the firearm was arranged through two individuals who were identified as members of the 18th Street Gang during the investigation.
Chicas-Hernandez is the 13th defendant to plead guilty in this case.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal of the District of Massachusetts; Massachusetts Attorney General Maura Healey; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Evans; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement today. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
High-Ranking “Ygz” Gang Member Sentenced to 41 Years in Prison for Stomping Murder of 16-Year-Old and Other CrimesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WENDELL BELLE, a/k/a “Delly Dell,” was sentenced this afternoon to a term of 384 months of imprisonment in federal custody, which must run consecutively to a prior sentence of 108 months of imprisonment in state custody, for his crimes as a high-ranking member of the “Young Gunnaz” or “YGz” gang. Those crimes included the April 16, 2012 murder of Moises Lora, a/k/a “Noah,” 16, during which BELLE and several other YGz gang members stomped Lora to death in a courtyard in the Melrose housing projects in the Bronx, and the November 26, 2013 attempted murder of a rival gang member, whom BELLE shot near the Bronx Criminal Courthouse. BELLE was sentenced in Manhattan federal court by United States District Judge Valerie E. Caproni, before whom he previously pled guilty.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Wendell Belle and his fellow gang members stomped to death Moises Lora, a frail, 90-pound, 16-year-old, a few yards from a playground, and Belle later shot a rival gang member on a busy street in the middle of a workday near the Bronx Criminal Courthouse. The sentence imposed holds Belle accountable for his brutal crimes, and we hope that it also brings some comfort to the victims of Belle’s crimes, including the family of Moises Lora. Together with our law enforcement partners, we will continue to aggressively prosecute those who engage in such violence in our communities.”
According to the charging and other documents filed in the case, as well as the evidence presented at a co-defendant’s presentencing hearing and statements made during BELLE’s guilty plea and sentencing proceedings and other court proceedings in this case:
BELLE was a high-ranking member of the Bronx-based street gang known as the YGz. From at least 2005 to 2016, members and associates of the YGz enriched themselves by committing robberies and by selling drugs, such as crack cocaine, heroin, and marijuana, and committing acts of violence, including the murder of rival gang members, rival drug traffickers, and innocent bystanders. As part of his involvement in the YGz gang, BELLE participated in numerous acts of violence in the South Bronx.
For example, as part of his involvement in the YGz gang, BELLE and several other YGz gang members murdered Moises Lora, a member of a rival gang, on April 16, 2012, in the South Bronx. On the date of the murder, a group of YGz members, including BELLE, got drunk, and began arguing among themselves about who had done the most violence for the YGz. This group of YGz members went to the territory of a rival gang in the Melrose housing projects to settle their dispute. Upon arriving at the Melrose projects, BELLE and other members of the YGz saw Lora and attacked him. During the attack, Lora’s skull was fractured in several places. BELLE and the group left Lora to die. Following the stomping, BELLE and several of his confederates bragged to fellow YGz members about what they had done.
In addition, on November 26, 2013, BELLE shot and attempted to kill a rival gang member in the vicinity of the Bronx County Criminal Court.
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Mr. Kim praised the outstanding work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the New York City Police Department in the investigation of this case. He also thanked the Bronx County District Attorney’s Office for their support in this case.
This case is being handled by this Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, Gina M. Castellano, and Andrew C. Adams are in charge of the prosecution.
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Gulfport Felon Sentenced to 32 Years in Prison for Dollar Store RobberiesRead the Press Release
Gulfport, Miss – Joseph Towner, Jr., 32, of Gulfport, was sentenced today by U.S. District Judge Sul Ozerden to serve a total of 32 years in federal prison for armed robbery, announced Acting U. S. Attorney Harold H. Brittain. Towner previously pled guilty to two counts of brandishing a firearm during and in relation to a crime of violence. He was sentenced to 84 months in prison on the first count, and 300 months in prison on the second count, for a total of 32 years.
Judge Ozerden ordered Towner’s sentences to be served consecutively with each other and consecutively to the 8 years he is currently serving in the Mississippi Department of Corrections. He was ordered to pay restitution while in prison to Dollar General, Family Dollar, and an individual, for a total of $13,926.13. Once the restitution is paid, Towner is ordered to pay a fine of $20,000. When released from prison, he will be on supervised release for five years.
The charges in this case stem from a series of armed robberies of Dollar General and Family Dollar stores in Long Beach, Gulfport, D’Iberville and Biloxi in 2014. The case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives along with D’Iberville, Biloxi, Long Beach and Gulfport Police Departments. It was prosecuted by Assistant United States Attorney Annette Williams.
Guinean National Sentenced for Possessing Fake Passport and Identity TheftRead 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 Abdoulaye Barry, 25, of Jamaica, NY, who was convicted of possessing a fraudulent passport card and aggravated identity theft, was sentenced to 36 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that on February 26, 2017, the defendant, a citizen of Guinea, was found at the Rainbow Bridge with a fraudulent United States Passport card, bearing the name and passport card number of a real person with the defendant’s photograph, as well as a fraudulent Ohio Driver’s License bearing the name of a real person with the defendant’s photograph, and a Florida Driver’s license bearing the name and photograph of another person. The defendant was also in possession of a debit and credit card matching the name on the fraudulent Ohio Driver’s license.
The sentencing is the result of an investigation by the United States Department of State; Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
Gary Hirst, Former President and Chairman of the Board of Gerova Financial Group, Sentenced to over Six Years in Prison for Defrauding Shareholders of $72 Million in StockRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that GARY HIRST, former president and chairman of the board of Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, was sentenced to 78 months in prison for defrauding the shareholders of that company by secretly giving away nearly $72 million of company stock to himself and his co-conspirators for no legitimate business purpose. HIRST was convicted after a two-week trial in September, 2016, before U.S. District Judge P. Kevin Castel.
Acting U.S. Attorney Joon H. Kim said: “Today’s sentence reflects the magnitude of Gary Hirst’s massive fraud scheme, which netted tens of millions in ill-gotten gains. Hirst and his co-conspirators issued large amounts of stock, lied about their roles, and found other novel means to defraud the stockholders of Gerova Financial and the investing public. Ultimately, Hirst’s stock manipulation resulted not in huge returns, but instead in a long prison sentence.”
According to the allegations contained in the Indictment as well as the evidence presented during trial[1]:
From 2009 to 2011, GARY HIRST, along with his co-conspirators Jason Galanis, John Galanis, Derek Galanis, Ymer Shahini, and Gavin Hamels, engaged in a scheme to defraud the shareholders of Gerova, and the investing public, by issuing shares of Gerova stock for no legitimate business purpose and by effecting securities transactions in Gerova stock for the purpose of conferring millions of dollars of undisclosed remuneration on HIRST and his co-conspirators.
As a part of the scheme to defraud, GARY HIRST and Jason Galanis obtained sufficient control over Gerova to be able to cause Gerova to enter into transactions of their own design, and for their benefit, including the issuance of Gerova stock. Jason Galanis obtained this control without causing himself to be identified as an officer or director of Gerova in order to appear to abide by an SEC-imposed bar which forbade him from holding such positions at publicly traded companies. Among other means and methods, HIRST caused over 5 million shares of Gerova stock, which represented nearly half the company’s public float and which were intended for HIRST and his co-conspirators’ ultimate benefit, to be issued to and held in the name of Ymer Shahini, who knowingly served as a foreign nominee for the co-conspirators. HIRST, Jason Galanis, John Galanis, Jared Galanis, Derek Galanis, and Shahini understood that the purpose of the stock grant to Shahini was to disguise the co-conspirators’ true ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
In furtherance of the scheme, HIRST and his co-conspirators created fraudulent, back-dated documents to conceal their theft of the stock and cover their tracks. Also in furtherance of the scheme, HIRST deliberately misled Gerova’s other officers, including its chief financial officer, and caused Gerova to fail to disclose the stock giveaway in Gerova’s public filings with the SEC. In a telephone call with Jason Galanis that was recorded by the FBI, HIRST gloated, upon reviewing a draft of one such public filing, “That whole, that whole Shahini thing, I mean, nobody, they totally missed it. Everybody.”
At the same time, and as a further part of the scheme to defraud, HIRST’s co-conspirators opened and managed brokerage accounts in the name of Shahini (the “Shahini Accounts”), effected the sale of Gerova stock from the Shahini Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public the fraudulent nature of the co-conspirators’ ownership of and control over the Gerova stock.
Jason Galanis, among others, also fraudulently induced investment advisers, including Gavin Hamels, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. By causing the purchase of Gerova stock at the time, quantity, and/or price of their choosing, the co-conspirators were able to, among other things, effectuate the sale of large quantities of Gerova stock from the Shahini Accounts that the co-conspirators controlled while artificially maintaining the price of Gerova stock through coordinated matched trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public.
As a result, GARY HIRST, Jason Galanis, and their co-conspirators reaped nearly $20 million in profits, including approximately $2.6 million that benefitted HIRST directly.
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In addition to the prison term, GARY HIRST, 64, was sentenced to 1 year of supervised release. HIRST was also ordered to forfeit $19,038,650.53, and restitution to be determined at a later date.
Jason Galanis, who pled guilty to two counts of conspiracy to commit securities fraud, one count of securities fraud, and one count of investment adviser fraud, was sentenced to a term of 135 months in prison on February 15, 2017. John Galanis and Derek Galanis, each of whom pled guilty to one count of conspiracy to commit securities fraud and one count of securities fraud, were each sentenced to a term of 72 months’ imprisonment on February 16, 2017. Jared Galanis, who pled guilty to misprision of a felony, was sentenced to a term of 150 days in prison on January 11, 2017. Gavin Hamels, who pled guilty to one count of conspiracy to commit securities fraud, one count of securities fraud, and one count of investment adviser fraud, is scheduled to be sentenced before Judge Castel on November 29, 2017. Defendant Ymer Shahini remains a fugitive.
Mr. Kim praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
This charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Rebecca Mermelstein, and Aimee Hector are in charge of the prosecution.
[1] As for co-defendant Ymer Shahini, who remains a fugitive, the description of the charges set forth herein constitute only allegations.
Galloway Man Pleads Guilty to Distributing Child Pornography After Recording 12-Year-Old Girl in BathroomRead the Press Release
COLUMBUS, Ohio – Justin M. Nickell, 36, of Galloway, Ohio, pleaded guilty in U.S. District Court to one count of distribution of child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Westerville Police Chief Joseph Morbitzer, Franklin County Sheriff Dallas Baldwin and other members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the plea entered into before U.S. District Chief Judge Edmund A. Sargus, Jr.
According to the Statement of Facts in this case, Nickell communicated with an undercover task force officer posing online as a single mother of three children. The officer advertised that he was looking to chat with “open minded, taboo men” and Nickell responded.
During conversation on the Kik Messenger App, Nickell routinely made comments indicating that he wished to engage in sexual activity with the undercover persona’s three fictitious children. He also told the officer he secretly recorded a 12-year-old girl in his household getting out of the shower and drying off, and would then masturbate to the video afterwards. Nickell sent a screen shot from one of the videos to the officer. Nickell admitted to hiding his phone in a container in the bathroom under some clothing and also to recording her outside of the bathroom by placing his phone under the door.
On more than one occasion, Nickell sent nude photos of the 12-year-old girl to the undercover officer.
Nickell was indicted by a federal grand jury on March 23.
As part of his plea agreement, all parties have recommended a term of incarceration between 150 and 180 months. Chief Judge Sargus will consider that recommendation at a future sentencing hearing.
U.S. Attorney Glassman commended the investigation of this case by the Franklin County ICAC and Assistant United States Attorneys Heather A. Hill and Jessica H. Kim, who are representing the United States in this case.
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Former Summit County councilwoman sentenced to five years in prison for taking bribesRead the Press Release
A former Summit County councilwoman was sentenced to five years in prison for taking bribes in exchange for trying to influence court proceedings and investigations, said Acting U.S. Attorney David A. Sierleja and FBI Special Agent in Charge Stephen D. Anthony.
Tamela Lee, 58, of Akron, was convicted by a jury earlier this year on all six counts: conspiracy to commit honest services mail and wire fraud, honest services mail fraud, Hobbs Act conspiracy, violating the Hobbs Act, obstruction of justice and making false statements to law enforcement.
“This is a public official who used her office to collect cash, cigarettes, home repairs and other things that average citizens have to pay for,” Sierleja said. “She violated the public’s trust and is now being held accountable for her actions.”
"Tamela Lee, a community councilwoman elected by the citizens she was supposed to lawfully represent, was motivated by her own self- interests and greed,” Anthony said. “The FBI is pleased Ms. Lee is being held accountable for these criminal actions. The FBI will continue to root out public corruption, whether it is elected officials that violate their oath and the law or citizens that bribe them to do so.”
Lee solicited and accepted things from Omar Abdelqader, including money, loans, campaign contributions, home improvements, home maintenance and consumer goods. These were provided directly by Omar Abdelqader, or through Bi-Rite and totaled more than $6,500, according to court documents and testimony.
In return, Lee performed and promised to perform official acts for Omar Abdelqader and other businesses in Akron for which he served as a conduit to Lee. These actions included helping Omar Abdelqader and his designees navigate government bureaucracy, achieve favorable outcomes in judicial and administrative proceedings and obtain streamlined access to information, according to court documents and testimony.
Omar Abdelqader was affiliated with several convenience stores and other businesses in the Akron area, including the Bi-Rite on Diagnonal Road. Abdelrahman Abdelqader is his brother and Samir Abdelqader is his nephew, according to court documents.
On June 8, 2014, Omar and Samir Abdelqader discussed Samir obtaining a bond regarding criminal charges he was facing. About 40 minutes later, Omar and Lee discussed the councilwoman emailing or calling the judge. On June 12, Lee called Judge 2’s chambers several times. The next day Lee asked Omar for money, and he directed her to the Bi-Rite to collect the money, according to court documents and testimony.
On June 14, 2014, Lee sent a text message to Omar informing him that the judge and bailiff returned her call. She then sent a text message to Omar stating: “I am going to bed, I am angry and frustrated and broke…bye,” according to according to court documents and testimony.
Later that day, Omar instructed Lee to send her daughter to the Bi-Rite to pick up cash. Three days later, Lee spoke to Judge 2 and told the judge she was related to Samir Abdelqader, according to court documents and testimony.
In July 2014, Lee and Omar spoke repeatedly about fundraising for her campaign. Omar told Person 9 that he had collected $800 in donations for Lee. Omar explained the Lee provided service. “In other words, I am keeping her because we need her, man,” Omar told Person 9, who responded: “She is better than an attorney to us!” according to court documents and testimony.
Omar Abdelqader, of North Canton, Abdelrahman Abdelqader, of Canton, and Samir Abdelqader, of Fairlawn, have pleaded guilty to crimes related to this case.
This case was prosecuted by Assistant U.S. Attorneys Linda Barr and Elliot Morrison following an investigation by the Federal Bureau of Investigation, with assistance from the Akron Police Department.
Former Procurement Director of Staten Island District Attorney’s Office Charged with Embezzling Government FundsRead the Press Release
A ten-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging William Nelson, former Director of Procurement at the Richmond County District Attorney’s Office (RCDA), with one count of theft of funds and nine counts of mail fraud. The defendant is scheduled to be arraigned before United States Magistrate Judge James Orenstein at the Brooklyn federal courthouse this afternoon.
The charges were 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), and Mark G. Peters, Commissioner, New York City Department of Investigation (DOI).
As alleged in the indictment, for approximately 10 years between 2006 and 2016, Nelson stole over $440,000 from the RCDA as part of a long-term scheme to defraud the RCDA of funds. Specifically, Nelson used two RCDA American Express credit cards to purchase items such as jewelry, apparel, toys, sporting goods and memorabilia, alcohol, video games and movies, electronics, household items, grocery items, books, sundries, knives, survival gear, handbags, collectibles, souvenirs, event tickets, meals, lodging, airfare, excursions, and online services that he then used for his own benefit and the benefit of others. Nelson also used the online payment system PayPal to directly transfer thousands of dollars from the RCDA credit cards to his own personal bank account. In furtherance of his scheme, Nelson took steps to conceal his embezzlement, which included concealing the itemized credit card statements, mischaracterizing the nature of the purchases, and using his authority as Director of Procurement to approve payments of his fraudulent personal expenditures.
“As alleged, Nelson abused his position as Procurement Director for the Richmond County District Attorney’s Office by engaging in a decade-long scheme to defraud the DA’s office of nearly half a million dollars,” stated Acting United States Attorney Rohde. “Together with our law enforcement partners at the FBI and DOI, our Office will hold to account those who engage in such fraud, particularly where it disadvantages agencies tasked with safeguarding our communities.” Ms. Rohde thanked the Richmond County District Attorney’s Office for its assistance during the investigation.
“This case is a textbook example of what can happen when power goes unchecked,” stated FBI Assistant Director-in-Charge Sweeney. “Not only did Nelson allegedly steal hundreds of thousands of dollars from the RCDA, but he shamefully exploited his official position to authorize the very transactions that made this possible. Instead of using taxpayer funds for their intended purpose, he allegedly used them for his own personal intentions. Our communities place a high level of trust in those who hold these positions, and that trust should never waver. We won’t allow schemers of any kind to put the public’s trust at risk.”
“This defendant stole law enforcement funds to finance jet-setting vacations and purchase hundreds of thousands of dollars in luxury items, according to the charges,” stated DOI Commissioner Peters. “DOI has issued a report documenting how this scam was perpetrated for over a decade and recommended changes to safeguard our city’s finances. DOI thanks the United States Attorney’s Office for the Eastern District of New York for its partnership on this criminal investigation and the Richmond County District Attorney’s Office for its cooperation and swift action in implementing DOI’s recommendations.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 10 years’ imprisonment on the theft of funds count and 20 years’ imprisonment on each of the mail fraud counts.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorney Maria Cruz Melendez is in charge of the prosecution.
The Defendant:
WILLIAM NELSON
Age: 44
New York, New York
E.D.N.Y. Docket No. 17-CR-394 (RJD)
Former New Hampshire Investment Banker Pleads Guilty to Defrauding Client of $2 MillionRead the Press Release
CONCORD, N.H. - Acting United States Attorney John J. Farley announced that Karl Edward Hahn, 44, of Manchester, Connecticut and formerly of New Castle, New Hampshire pleaded guilty on Tuesday to participating in a wire fraud scheme that defrauded a victim of approximately $2 million.
According to court records and statements in court, Hahn lived in New Hampshire and was employed as an investment advisor at investment banks in Portsmouth, New Hampshire. Starting as early as March of 2009 and continuing until July of 2010, he invited one of his investment clients to join him in what he referred to as an “off the books” investment. He described that investment as follows: Hahn and the victim would each contribute approximately $2 million, which Hahn would then loan to three individuals who would repay the money within 90 days with interest substantially above market rates. Hahn told the victim the “loan” would be secured by three pieces of residential real estate, one owned by each of the three borrowers, which were all unencumbered and which collectively had a value far in excess of the approximately $4 million loan.
Hahn told the victim that no one could know about the investment, including the defendant’s employer, because he was not allowed to enter into financial dealings with clients other than through his employment. In order to prevent his employer from learning of the “off the books” transaction, Hahn asked the victim to transfer the money into a bank account held by one of Hahn’s relatives and that Hahn would then get the money from his relative.
The victim agreed and transferred to Hahn’s relative’s account, in separate transactions, $300,000, $1,600,000, $100,000, and $35,000, totaling $2,035,000. Hahn admitted that the entire story of landowners wanting to borrow money was false, that there never were three landowners who wanted to borrow money collateralizing the loans with deeds, and that loans were never made to any landowners using the victim’s money. Hahn simply used the victim’s money to pay personal expenses. In 2011, the New Hampshire Bureau of Securities Regulation barred Hahn from being licensed to sell securities.
Hahn also admitted that during the course of executing the scheme, he made additional materially false representations to the victim that lulled him into a false sense of security and caused him to temporarily refrain from reporting his dealings with the defendant to law enforcement authorities. Those false statements included: 1) that the supposed borrowers had defaulted on the loans; 2) that as a result of the alleged defaults, Hahn had possession of the deeds to the supposed borrowers’ properties; and 3) that Hahn had communicated with a hedge fund so the hedge fund could buy the properties, thereby resulting in the return of the victim’s money with interest. Hahn also later falsely represented to the victim that he had been successful in working with the supposed hedge fund and that he was confident that the victim would have his money back by early August of 2010.
Hahn will be sentenced on November 8, 2017. The terms of the plea require Hahn to serve 18 months in federal prison.
This case was investigated by the FBI and United States Secret Service and was prosecuted by Assistant United States Attorney Arnold H. Huftalen.
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Former Facilities Manager Pleads Guilty to Embezzling from San Diego Workforce PartnershipRead the Press Release
Assistant U. S. Attorneys Emily Allen (619) 546-9738 and Benjamin Katz (619) 546-9604
NEWS RELEASE SUMMARY – August 3, 2017
SAN DIEGO – Jared Palmer, a former facilities manager for the San Diego Workforce Partnership, pleaded guilty today to embezzling more than $450,000 from the local Workforce Development Board that provides job training and placement to San Diego county residents and employers.
According to his plea agreement, Palmer, as facilities manager, was responsible for approving payment of invoices submitted by janitorial companies contracted to clean San Diego Workforce Partnership’s facilities. Between 2011 and 2016, Palmer instructed these contractors to purchase items that he claimed were for the Partnership’s use, including Nest Smart Thermostats, electronics, and pre-paid debit cards. Palmer then stole the items and replaced the invoices that included the cost of these stolen items with false invoices that made it appear as if all of the charges were for legitimate janitorial services. Over the course of five years, Palmer’s scheme netted him at least $455,606.
Because the Partnership, known as SDWP, is a Workforce Development Board funded largely by federal grant dollars, Palmer’s plea was to a count of Theft of Federal Program Funds, in violation of 18 U.S.C. § 666. Palmer’s plea agreement includes a restitution addendum, in which he agreed to pay SDWP back for his theft.
“This case represents the U.S. Attorney’s Office’s continued commitment to protecting non-profit organizations, especially those receiving federal grant money,” said Acting U.S. Attorney Alana W. Robinson.
“Jared Palmer, a former high level employee with the San Diego Workforce Partnership (SDWP), created and submitted fictitious invoices for janitorial services to SDWP in order to embezzle more than $450,000 in U.S. Department of Labor job training funds. Palmer’s actions deprived American workers from receiving critical job training services provided by SDWP. We will continue to work with our law enforcement partners to safeguard federal funds,” stated Abel Salinas, Special Agent-in-Charge of the Los Angeles Regional Office of the U.S. Department of Labor, Office of Inspector General.
“Mr. Palmer embezzled funds from the San Diego Workforce Partnership, which was providing a valuable and important service,” said Special Agent in Charge Eric S. Birnbaum. “Federal dollars were stolen as part of Mr. Palmer’s scheme. Simply, this will not be tolerated. The FBI will expose criminals who line their pockets out of greed and deceit while federally funded programs designed to help our community suffer.”
Palmer is scheduled to be sentenced on November 6, 2017.
DEFENDANT Case Number: 17-cr-2157-LAB
Jared Palmer Age: 41
SUMMARY OF CHARGES
Theft of Federal Program Funds, 18 U.S.C. § 666
Maximum penalty: 10 years’ imprisonment, fine double amount obtained, 3 years’ supervised release.
AGENCIES
Federal Bureau of Investigation – San Diego Field Office
U.S. Department of Labor – Office of Inspector General
Former CFO Pleads Guilty to Embezzling $6.5 Million from KC CompanyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the former chief financial officer of a Kansas City, Mo., company pleaded guilty in federal court today to embezzling more than $6.5 million from his employer.
Douglas Ferrell, 34, of Kansas City, waived his right to a grand jury and pleaded guilty before U.S. District Judge Brian C. Wimes to a federal information that charges him with wire fraud and money laundering.
Ferrell began working for Scarbrough International at its headquarters in Kansas City, Mo., in 2005 as an account representative and became the company’s chief financial officer in 2012. Scarbrough International is a privately owned, U.S. Customs Broker and international freight forwarder.
By pleading guilty today, Ferrell admitted that he embezzled approximately $6,523,742 from the company for his own use and enjoyment. From Sept. 1, 2006, to June 10, 2014, Ferrell engaged in a scheme to embezzle company funds by making unauthorized personal charges to the company’s credit card and PayPal accounts, and then using company funds to pay those charges.
Ferrell also made a number of financial transactions of funds that he knew were the proceeds of fraud, including a $650,000 wire transfer (that contained at least $475,625 in fraud proceeds) to Cayman National Bank in the Cayman Islands to purchase a beach house. Ferrell wired a total of more than $2,250,000 to purchase that property. Ferrell also used embezzled funds to ship furnishings from the United States for the property and for additional construction and improvements to the property, including over $77,000 in payments to a Cayman Islands tile company. After the improvements, paid for with additional embezzled funds, the property was valued at over $2.6 million.
The final amount of restitution will be determined at Ferrell’s sentencing hearing, but is estimated to be $1,940,462 due to Ferrell’s partial repayment of restitution. The company has recouped a significant portion of its loss.
Under federal statutes, Ferrell is subject to a sentence of up to 30 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 Brian P. Casey. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.