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Friday 16 June 2017
Birmingham CPA Sentenced to Eight Years in Prison, Must Repay $11 Million EmbezzledRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to eight years in prison and ordered him to repay $10.9 million he embezzled from the Shelby County scrap metal brokerage where he was chief financial officer, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger Stanton.
U.S. District Court Judge Abdul K. Kallon sentenced THOMAS L HINSON JR., 70, on five counts of wire fraud for depositing checks stolen from Strickland Trading Inc. into the account of Strickland Trading Company, LLC, a company Hinson formed to carry out his embezzlement. Hinson pleaded guilty to the charges in March. He must report to prison July 31.
Along with the millions in restitution that Hinson must pay, he also must forfeit his interest in properties in Huntsville, Birmingham, Virginia Beach, Va., Lutz, Fla., and Sevierville, Tenn.
Hinson “abused his position as Chief Financial Officer of Strickland Trading, Inc., and violated his long-running friendships with Strickland Trading’s principals, to perpetuate a nine years long scheme to defraud,” the government states in its sentencing memorandum.
The company’s principals and employees suffered substantial financial hardship because of Hinson’s long-term crime, the memorandum says.
The five wire fraud counts Hinson pleaded guilty to represent five of the more than 225 checks totaling more than $11.2 million that were intended for Strickland Trading Inc., but which Hinson deposited into his Strickland Trading Company, LLC, account, between April 2007 and April 2016. He used the money he embezzled over the years to pay expenses and purchase real estate, automobiles, and other assets for himself, his family, and friends.
According to the court documents, Hinson conducted his scheme as follows:
Hinson was a certified public accountant in private practice who worked for Strickland Trading Inc. from 1991 to April 2016. In 2000, he began working as Strickland Trading Inc.’s CFO. In April 2007, Hinson filed documents with the State of Alabama creating Strickland Trading Company, LLC, and provided the name and address of a friend in Madison County as its organizer so he could conceal his own association with the new company.
Using the similarity in the names of the two companies, Hinson took checks mailed to Strickland Trading Inc. by its customers and deposited the checks into his Strickland Trading Company, LLC, account for his personal use. He made false entries in the financial records of Strickland Trading Inc., prepared false financial statements and made other false representations to Strickland Trading Inc. corporate officers to conceal his embezzlement.
The FBI investigated the case, which Assistant U.S. Attorney George Martin prosecuted.
Assistant U.S. Attorneys Michael Collyer and Chelsea Rice honored at Director's Awards ceremonyRead the Press Release
Assistant U.S. Attorney Michael L. Collyer and Chelsea Rice were one of 179 members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 33rd Director’s Awards Ceremony today in Washington D.C.
The Northern District of Ohio was one of 35 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks, Deputy Attorney General Rosenstein told the awardees: “These 179 award recipients embody the best of the Department of Justice…Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded. ”
Collyer and Rice were honored for their prosecution of Dr. Harold Persaud, a Westlake cardiologist currently serving 20 years in prison. Persaud was convicted following a jury trial of health care fraud for performing unnecessary catheterizations, tests, stent insertions and causing unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers by $29 million.
“Mike and Chelsea’s work in this case exemplifies the best of our office,” Acting U.S. Attorney David A. Sierleja said. “They worked tirelessly to not only to hold Dr. Persaud accountable for his crimes, but also to bring justice to his victims.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Anderson Man Sentenced to 40 Months for Mail Theft ConspiracyRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Cornelius N. Mattress., age 43, of Anderson, was sentenced in federal court in Greenville for his leadership in a conspiracy to commit mail theft, a violation of Title 18, United States Code, Section 371. United States District Judge Bruce Howe Hendricks of Charleston sentenced Mattress to 40 months in the Bureau of Prisons, ordered that he pay $10,544.41 in restitution, and imposed a three-year term of supervised release.
Evidence presented at the change of plea hearing established that Mattress and his co-conspirators stole mail in and around Anderson County in an effort to obtain blank checks that are often sent to bank customers along with their statements. Once in possession of the checks, Mattress or a co-conspirator would open bank accounts, forge the checks, and deposit the checks into the accounts. Mattress would withdraw money from the accounts before the fraud was discovered. Mattress also recruited juveniles to cash checks and open accounts.
The case was investigated by agents of the Anderson Police Department and the United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Anchorage Man Sentenced to Five Years for Conspiring to Traffic Methamphetamine to Utqiaġvik (Formerly Barrow)Read the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that an Anchorage man was sentenced to 5 years in federal prison for conspiring to traffic methamphetamine from California to Alaska by mail, for further distribution in Utqiaġvik (formerly Barrow), Anchorage, and elsewhere within the State of Alaska.
Maurice Abad Malabed, aka “Moe,” 48, of Anchorage, was sentenced yesterday by U.S. District Judge Sharon L. Gleason, to 5 years in federal prison, followed by 4 years of supervised release. On
March 7, 2017, Malabed pled guilty to one count of drug conspiracy.
According to court documents filed in this case, on Nov. 29, 2016, Malabed contacted an individual about trafficking drugs to Utqiaġvik, who, unbeknownst to Malabed, was a North Slope Borough Police Department confidential source (CS). Thereafter, per Malabed’s request, the CS provided Malabed with $3,000 to obtain approximately four ounces of methamphetamine from Malabed’s supplier in California. On Dec. 7, 2016, Malabed gave the CS a United Parcel Service (UPS) tracking number for the package containing the drugs. Using the tracking number that Malabed provided, law enforcement agents seized the package at a UPS facility in Anchorage. The mailing label on the package indicated that it was shipped from California to co-defendant David Christensen’s address in Anchorage. Law enforcement obtained a search warrant for the package, which contained approximately 163.7 grams of methamphetamine, which is equivalent to roughly 1,637 hits or doses. The investigation revealed that Malabed recruited co-defendant David Christensen to receive and then help distribute the drugs.
At sentencing, Judge Gleason noted the seriousness of the offense, specifically that Malabed’s offense was “targeted” at smuggling methamphetamine to the small community of Utqiaġvik (formerly Barrow), where the impact of 163 grams of methamphetamine “is so much greater than [the same quantity] in a community the size of [Anchorage].”
Christensen is scheduled to be sentenced on July 26, 2017, at 1:30 P.M.
Acting U.S. Attorney Schroder commended the Drug Enforcement Administration, the Alaska State Troopers Statewide Drug Enforcement Unit, and the North Slope Borough Police Department who conducted the investigation, which led to the successful prosecution of this case.
Thursday 15 June 2017
Williamsport Man Sentenced to 17 Years for Heroin TraffickingRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Troy Brown, age 40, was sentenced on June 12, 2017 by U.S. District Court Judge Matthew W. Brann to serve 17 years’ imprisonment for his leadership role in a large-scale heroin distribution network operating between Williamsport and Bloomsburg.
According to United States Attorney, Bruce D. Brandler, Brown was responsible for the distribution of between 700 and 1,000 grams of heroin, or between 28,000 and 40,000 individual doses of heroin. In sentencing Brown, Judge Brann considered his multiple prior convictions for drug distribution felonies, his possession of firearms during the commission of the offense, and his position as a manager of criminal activity involving five or more participants. Brown and 26 co-conspirators have been charged in connection with this drug trafficking organization.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The case was investigated by the Federal Bureau of Investigation and is assigned to AUSA George Rocktashel for prosecution.
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Virginia Business Owner Pleads Guilty to Not Paying More Than $600,000 in Employment TaxesRead the Press Release
A former Hampton, Virginia business owner pleaded guilty today to failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, John E. Manley, 71, owned and operated Manley’s Service Co. Inc. (MSC), a heating, ventilation and cooling maintenance business in the Hampton, Virginia area since 1971. As president of MSC, Manley exercised significant control over the firm’s financial affairs and had final decision-making authority regarding its business activities. Between 2010 and 2014, Manley failed to pay over to the Internal Revenue Service (IRS) $611,564.83 in payroll taxes and, beginning in March 2012, he caused MSC to stop filing employment tax returns. Manley also filed personal income tax returns for 2010 through 2014 on which he falsely reported that MSC had withheld payroll taxes from his wages and paid the withholdings to the IRS. He caused MSC to stop timely filing corporate tax returns after 2010. Manley has admitted to causing a tax loss of more than $929,491.
Sentencing is scheduled for Sept. 22. Manley faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Robert J. Boudreau and David Zisserson of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Office for the Eastern District of Virginia.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
United States Seeks to Recover Approximately $540 Million Obtained from Corruption Involving Malaysian Sovereign Wealth FundRead the Press Release
LOS ANGELES – The Justice Department today filed civil forfeiture complaints seeking the forfeiture and recovery of approximately $540 million in assets associated with an international conspiracy to launder funds misappropriated from a Malaysian sovereign wealth fund.
Combined with civil forfeiture complaints filed in July 2016 that seek more than $1 billion, and civil forfeiture complaints filed last week that seek approximately $100 million in assets, this case represents the largest action brought under the Kleptocracy Asset Recovery Initiative. Assets now subject to forfeiture in this case total almost $1.7 billion.
The complaints filed today seek the forfeiture of Red Granite Pictures' interest in the movies “Dumb and Dumber To” and “Daddy’s Home,” a condominium in New York City worth nearly $5 million, diamond jewelry, artworks by Picasso and Basquiat, and a $260 million megayacht called The Equanimity.
According to the complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1Malaysia Development Berhad (1MDB) was allegedly misappropriated by high-level officials of 1MDB and their associates. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
“These cases involve billions of dollars that should have been used to help the people of Malaysia, but instead was used by a small number of individuals to fuel their astonishing greed,” said Acting United States Attorney Sandra R. Brown. “The misappropriation of 1MDB funds was accomplished with an extravagant web of lies and bogus transactions that were brought to light by the dedicated attorneys and law enforcement agents who continue to work on this matter. We simply will not allow the United States to be a place where corrupt individuals can expect to hide assets and lavishly spend money that should be used for the benefit of citizens of other nations.”
“The Criminal Division is steadfast in our efforts to protect the security, safety, and integrity of the American financial system from all manner of abuse, including by kleptocrats seeking to hide their ill-gotten or stolen wealth,” said Acting Assistant Attorney General Kenneth A. Blanco. “Today’s complaints reveal another chapter of this multi-year, multi-billion-dollar fraud scheme, bringing the total identified stolen proceeds to $4.5 billion. This money financed the lavish lifestyles of the alleged co-conspirators at the expense and detriment of the Malaysian people. We are unwavering in our commitment to ensure the United States is not a safe haven for corrupt individuals and kleptocrats to hide their ill-gotten wealth or money, and that recovered assets be returned to the victims from which they were taken.”
As alleged in the complaints, the members of the conspiracy – which included officials at 1MDB, their relatives and other associates – diverted more than $4.5 billion in 1MDB funds. Using fraudulent documents and representations, the co-conspirators allegedly laundered the funds through a series of complex transactions and shell companies with bank accounts located in the United States and abroad. These transactions allegedly served to conceal the origin, source and ownership of the funds, and ultimately passed through U.S. financial institutions to then be used to acquire and invest in assets located in the United States and overseas.
The complaints filed today allege that in 2014, the co-conspirators misappropriated approximately $850 million in 1MDB funds under the guise of repurchasing certain options that had been given in connection with a guarantee of 2012 bonds. As the complaints allege, 1MDB had borrowed a total of $1.225 billion from a syndicate of banks to fund the buy-back of the options. The complaints allege that approximately $850 million was instead diverted to several offshore shell entities. From there, the complaints allege, the funds stolen in 2014, in addition to money stolen in prior years, were used, among other things, to purchase the 300-foot luxury yacht valued at over $260 million, certain movie rights, high-end properties, tens of millions of dollars of jewelry and artwork. A portion of the diverted loan proceeds were also allegedly used in an elaborate, Ponzi-like scheme to create the false appearance that an earlier 1MDB investment had been profitable.
“Today’s filing serves as a reminder of the important role that the FBI plays in rooting out international corruption. When corrupt foreign officials launder funds through the United States in furtherance of their criminal activity, the FBI works tirelessly to help hold those officials accountable, and recover the misappropriated funds,” said Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division. “I applaud all my colleagues and our international partners who have worked to help recover an immense amount of funds taken from the Malaysian people, who are the victims of this abhorrent case of kleptocracy.”
“Today’s announcement is the result of untangling a global labyrinth of multi-layered financial transactions allegedly used to divert billions of dollars from the people of Malaysia and fund the co-conspirators’ lavish lifestyles,” said Deputy Chief Don Fort of IRS Criminal Investigation. “The IRS is proud to partner with other law enforcement agencies and share its world-renowned financial investigative expertise in this complex financial investigation. It’s important for the world to see, that when people use the American financial system for corruption, the IRS will take notice.”
As alleged in the earlier complaints, in 2009, 1MDB officials and their associates embezzled approximately $1 billion that was supposed to be invested to exploit energy concessions purportedly owned by a foreign partner. Instead, the funds allegedly were transferred through shell companies and were used to acquire a number of assets. The complaints also allege that the co-conspirators misappropriated close to $1.4 billion in funds raised through the bond offerings in 2012, and more than $1.2 billion following another bond offering in 2013.
The FBI’s International Corruption Squads in New York City and Los Angeles, and IRS Criminal Investigation are investigating the case.
Assistant United States Attorneys John Kucera and Christen Sproule of the Asset Forfeiture Section, along with Deputy Chief Woo S. Lee and Trial Attorneys Kyle R. Freeny and Jonathan Baum of the Criminal Division’s Money Laundering and Asset Recovery Section, are prosecuting the case. The Criminal Division’s Office of International Affairs is providing substantial assistance.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies and U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered asset to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] or https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
United States Files Complaint to Forfeit More Than $1.9 Million from China-Based Company Accused of Acting as a Front for Sanctioned North Korean BankRead the Press Release
WASHINGTON - The United States has filed a complaint to civilly forfeit $1,902,976 from Mingzheng International Trading Limited (Mingzheng), a company based in Shenyang, China. The complaint alleges that Mingzheng is a front company that was created to launder United States dollars on behalf of sanctioned North Korean entities.
According to the complaint, Mingzheng conspired to evade U.S. economic sanctions by facilitating prohibited U.S. dollar transactions through the United States on behalf of the Foreign Trade Bank, a sanctioned entity in the Democratic People’s Republic of Korea (North Korea) and to launder the proceeds of that conduct through U.S. financial institutions.
The forfeiture action was announced today by U.S. Attorney Channing D. Phillips and Michael DeLeon, Special Agent in Charge of the FBI’s Phoenix Field Office.
The action represents one of the largest seizures of North Korean funds by the Department of Justice.
“This complaint alleges that parties in China established and used a front company to surreptitiously move North Korean money through the United States and violated the sanctions imposed by our government on North Korea,” said U.S. Attorney Phillips. “Sanctions laws are critical to our national security and foreign policy interests, and this case demonstrates that we will seek significant remedies for those companies that violate them.”
“The FBI has dedicated substantial resources to investigate complex illegal monetary transactions involving foreign adversaries. This specific case has significant national security implications,” said Special Agent in Charge DeLeon. “The men and women of the FBI's Phoenix Field Division worked diligently to identify the illegal transactions. We hope this sends a strong message to those who utilize US banking systems for illegal activities.”
The complaint was filed on June 14, 2017, in the U.S. District Court for the District of Columbia. According to the complaint, Mingzheng is owned by a Chinese national and is based in Shenyang, China. Mingzheng allegedly operated as a front company for a foreign-based branch of the North Korea-based Foreign Trade Bank (FTB). In March 2013, the U.S. Treasury Department designated the Foreign Trade Bank as a sanctioned entity pursuant to the Weapons of Mass Destruction Proliferators Sanctions Regulations. The designation noted that the Foreign Trade Bank is a state-owned bank, and “acts as North Korea’s primary foreign exchange bank.” The designation further noted that North Korea uses the Foreign Trade Bank to facilitate millions of dollars in transactions on behalf of actors linked to its proliferation network.
The United Nations Panel of Experts reported in 2017 as to how North Korean banks have been able to evade sanctions and continue to access the international banking system. Specifically, despite strengthened financial sanctions, North Korean networks are adapting by using greater ingenuity in accessing formal banking channels. This includes maintaining correspondent bank accounts and representative offices abroad, which are staffed by foreign nationals making use of front companies. These broad interwoven networks allow the North Korean banks to conduct illicit procurement and banking activity.
An FBI investigation revealed that Mingzheng’s alleged activities mirror this money laundering paradigm. Specifically, Mingzheng acts a front company for a covert Chinese branch of the Foreign Trade Bank. This branch is operated by a Chinese national who has historically been tied to the Foreign Trade Bank.
The government is seeking to forfeit $1,902,976 that was transacted in October and November of 2015 by Mingzheng, via wire transfers, using their Chinese bank accounts. These U.S. dollar payments, which cleared through the United States, are alleged to violate U.S. law, because Mingzheng was surreptitiously making them on behalf of the Foreign Trade Bank, whose designation precluded such U.S. dollar transactions.
The claims made in the complaint are only allegations and do not constitute a determination of liability.
The FBI’s Phoenix Field Office is investigating the case. Assistant U.S Attorneys Arvind K. Lal, Zia M. Faruqui, Christopher B. Brown, Deborah Curtis and Brian P. Hudak are prosecuting the case, with assistance from Paralegal Specialist Toni Anne Donato.
Undocumented Alien Sentenced to 18 Months in Federal Prison for Assaulting a Federal Deportation OfficerRead the Press Release
In Austin today, a federal judge sentenced 23-year-old Mexican National Hugo Baltazar-Ramirez to 18 months in federal prison for assault on a federal deportation officer in Austin in February announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
On March 29, 2017, Baltazar-Ramirez pleaded guilty to the charge. By pleading guilty, Baltazar-Ramirez admitted that on February 10, 2017, he forcibly assaulted a federal officer and employee of the United States who was engaged in the performance of his official duties. As a result of the intentional assault by the defendant, the federal deportation officer suffered bodily injury.
Baltazar-Ramirez has remained in federal custody since his arrest on February 10, 2017.
The Federal Bureau of Investigation conducted this investigation.
U.S. Seeks to Recover Approximately $540 Million Obtained from Corruption Involving Malaysian Sovereign Wealth FundRead the Press Release
The Justice Department announced today the filing of civil forfeiture complaints seeking the forfeiture and recovery of approximately $540 million in assets associated with an international conspiracy to launder funds misappropriated from a Malaysian sovereign wealth fund. Combined with civil forfeiture complaints filed in July 2016, seeking more than $1 billion, and civil forfeiture complaints filed last week seeking approximately $100 million in assets, this case represents the largest action brought under the Kleptocracy Asset Recovery Initiative. Assets now subject to forfeiture in this case total almost $1.7 billion.
Acting Assistant Attorney General Kenneth A. Blanco, Acting U.S. Attorney Sandra R. Brown of the Central District of California, Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division, and Deputy Chief Don Fort of the IRS-Criminal Investigation (IRS-CI) made the announcement.
According to the complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1Malaysia Development Berhad (1MDB) was allegedly misappropriated by high-level officials of 1MDB and their associates. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
“The Criminal Division is steadfast in our efforts to protect the security, safety, and integrity of the American financial system from all manner of abuse, including by kleptocrats seeking to hide their ill-gotten or stolen wealth,” said Acting Assistant Attorney General Blanco. “Today’s complaints reveal another chapter of this multi-year, multi-billion-dollar fraud scheme, bringing the total identified stolen proceeds to $4.5 billion. This money financed the lavish lifestyles of the alleged co-conspirators at the expense and detriment of the Malaysian people. We are unwavering in our commitment to ensure the United States is not a safe haven for corrupt individuals and kleptocrats to hide their ill-gotten wealth or money, and that recovered assets be returned to the victims from which they were taken.”
“These cases involve billions of dollars that should have been used to help the people of Malaysia, but instead was used by a small number of individuals to fuel their astonishing greed,” said Acting U.S. Attorney Brown. “The misappropriation of 1MDB funds was accomplished with an extravagant web of lies and bogus transactions that were brought to light by the dedicated attorneys and law enforcement agents who continue to work on this matter. We simply will not allow the United States to be a place where corrupt individuals can expect to hide assets and lavishly spend money that should be used for the benefit of citizens of other nations.”
“Today’s filing serves as a reminder of the important role that the FBI plays in rooting out international corruption. When corrupt foreign officials launder funds through the United States in furtherance of their criminal activity, the FBI works tirelessly to help hold those officials accountable, and recover the misappropriated funds,” said Assistant Director Richardson. “I applaud all my colleagues and our international partners who have worked to help recover an immense amount of funds taken from the Malaysian people, who are the victims of this abhorrent case of kleptocracy.”
“Today’s announcement is the result of untangling a global labyrinth of multi-layered financial transactions allegedly used to divert billions of dollars from the people of Malaysia and fund the co-conspirators’ lavish lifestyles,” said Deputy Chief Fort. “The IRS is proud to partner with other law enforcement agencies and share its world-renowned financial investigative expertise in this complex financial investigation. It’s important for the world to see, that when people use the American financial system for corruption, the IRS will take notice.”
As alleged in the complaints, the members of the conspiracy – which included officials at 1MDB, their relatives and other associates – diverted more than $4.5 billion in 1MDB funds. Using fraudulent documents and representations, the co-conspirators allegedly laundered the funds through a series of complex transactions and shell companies with bank accounts located in the U.S. and abroad. These transactions allegedly served to conceal the origin, source and ownership of the funds, and ultimately passed through U.S. financial institutions to then be used to acquire and invest in assets located in the U.S. and overseas.
The complaints filed today allege that in 2014, the co-conspirators misappropriated approximately $850 million in 1MDB funds under the guise of repurchasing certain options that had been given in connection with a guarantee of 2012 bonds. As the complaints allege, 1MDB had borrowed a total of $1.225 billion from a syndicate of banks to fund the buy-back of the options. The complaints allege that approximately $850 million was instead diverted to several offshore shell entities. From there, the complaints allege, the funds stolen in 2014, in addition to money stolen in prior years, were used, among other things, to purchase a 300 foot luxury yacht valued at over $260 million, certain movie rights, high-end properties, tens of millions of dollars of jewelry, and artwork. A portion of the diverted loan proceeds were also allegedly used in an elaborate, Ponzi-like scheme to create the false appearance that an earlier 1MDB investment had been profitable.
As alleged in the earlier complaints, in 2009, 1MDB officials and their associates embezzled approximately $1 billion that was supposed to be invested to exploit energy concessions purportedly owned by a foreign partner. Instead, the funds were transferred through shell companies and were used to acquire a number of assets, as set forth in the complaints. The complaints also allege that the co-conspirators misappropriated close to $1.4 billion in funds raised through the bond offerings in 2012, and more than $1.2 billion following another bond offering in 2013.
The FBI’s International Corruption Squads in New York City and Los Angeles, and the IRS-CI are investigating the case. Deputy Chief Woo S. Lee and Trial Attorneys Kyle R. Freeny and Jonathan Baum of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys John Kucera and Christen Sproule of the Central District of California are prosecuting the case. The Criminal Division’s Office of International Affairs is providing substantial assistance.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered asset to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the U.S. should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the U.S.
Two Men Convicted of Staging Car Accidents in Eastern Connecticut as Part of Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal jury in New Haven has found MACKENZY NOZE, 32, and JONAS JOSEPH, 33, also known as “James,” both residents of Norwich, guilty of fraud and conspiracy offenses related to their staging of car accidents for the purpose of defrauding automobile insurance companies. The trial before U.S. District Judge Jeffrey Alker Meyer began on June 5 and the jury returned verdicts of guilty on all counts on the indictment this afternoon.
According to the evidence presented during the trial, between April 2011 and February 2014, NOZE, JOSEPH, and others conspired to stage approximately 50 car crashes in eastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from approximately $10,000 to $30,000 per accident.
The jury found NOZE and JOSEPH guilty of one count of conspiracy to commit mail and wire fraud, NOZE guilty of eight counts of mail or wire fraud, and JOSEPH guilty of five counts of mail or wire fraud. The charges carry a maximum term of imprisonment of 20 years on each count. NOZE is scheduled to be sentenced on September 1 and JOSEPH is scheduled to be sentenced on September 5.
After the verdict, Judge Meyer ordered NOZE, who is a citizen of Haiti and lawful permanent residence of the U.S., detained pending sentencing.
JOSEPH is released on a $10,000 bond.
Five other individuals charged as a result of this investigation have pleaded guilty and await sentencing.
This matter has been investigated by the Federal Bureau of Investigation, the Norwich Police Department, and the National Insurance Crime Bureau. The case is being prosecuted by Assistant U.S. Attorneys Avi Perry and Michael J. Gustafson.
Two Houston Residents Arrested in Identity Theft SchemeRead the Press Release
HOUSTON – A Houston man and woman have been charged in connection with a scheme that used stolen identifying information to file false tax returns and unemployment insurance claims, announced Acting U.S. Attorney Abe Martinez.
A grand jury returned a sealed indictment against Trenecia Moore, 33, and Michael Muniz, 27, yesterday. They were taken into custody this morning, at which time the indictment was unsealed. They are expected to make their initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today.
The indictment alleges Moore and another individual filed false tax claims and unemployment insurance claims with identifying information of others. They then allegedly loaded the funds from those false claims onto debit cards and had them delivered to false addresses. According to the indictment, Muniz assisted them in retrieving the cards and withdrawing the funds.
Moore and Muniz are both charged with conspiracy to commit access device fraud and face up to five years in federal prison. Moore is also charged with two additional counts of aggravated identity theft which carries a mandatory and consecutive 24-month prison sentence. The charges also carry the possibility of up to a $250,000 fine.
The Department of Labor – Office of the Inspector General, Internal Revenue Service – Criminal Investigations and Texas Workforce Commission conducted the investigation with the assistance of the FBI. Assistant U.S. Attorney Andrew Leuchtmann is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Two Albuquerque Women Plead Guilty to Aggravated Identity Theft ChargesRead the Press Release
ALBUQUERQUE – Amelia Cordova, 34, and Bridget Jessica Sanchez, 35, both of Albuquerque, N.M., pled guilty today in federal court in Albuquerque, N.M., to aggravated identity theft charges.
Cordova, Sanchez and their co-defendant Kenneth Webb, 50, also of Albuquerque, were charged in a five-count indictment filed on Oct. 25, 2016, with conspiracy to commit bank fraud, aggravated identity theft, and receipt of stolen mail. The indictment was superseded on April 26, 2017, and charged the three defendants with participating in a conspiracy to commit bank fraud from Jan. 2015 through Feb. 2016. The superseding indictment also charged each of the three defendants with committing aggravated identity theft on the following dates: Cordova on Feb. 13, 2016; Sanchez on Jan. 19, 2015; and Webb on June 2, 2015. It also charged Cordova and Sanchez with theft or receipt of stolen mail on July 20, 2015. According to the superseding indictment, the defendants committed the crimes in Bernalillo County, N.M.
During today’s proceedings, Cordova and Sanchez each pled guilty to an aggravated identity theft charge under plea agreements with the U.S. Attorney’s Office. In their plea agreements, Cordova and Sanchez admitted that they conspired to defraud financial institutions, including First Financial Credit Union, Kirtland Federal Credit Union, Sandia Laboratory Federal Credit Union, Bank of America and Bank of the West. They also admitted that in furtherance of that conspiracy, they possessed mail and other information, including bank account, debit card and credit card numbers belonging to others, that had been stolen from a post office, mail receptacle, or mail carrier. Cordova and Sanchez admitted using the numbers for the bank accounts, credit cards and debit cards to make purchases, and forging signatures of others in making those purchases. Cordova and Sanchez also admitted using bank account numbers and bank routing numbers contained in the stolen mail to make counterfeit personal checks, which they used to make purchases.
In entering her guilty plea, Cordova admitted that between Feb. 13 and 21, 2016, she used credit card number information from two different people to commit bank fraud.
In entering her guilty plea, Sanchez admitted that on Jan. 19, 2015 and between June 15 and 24, 2015, she used bank account information belonging to another person to commit bank fraud. Sanchez also admitted using credit card number information of another person on Feb. 10, 20, and 21, 2016.
At sentencing, Cordova and Sanchez each face a mandatory penalty of two years in federal prison and a fine up to $250,000 each. Sentencing hearings have yet to be scheduled.
Webb has entered a not guilty plea to the charges against him. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated the U.S. Postal Service and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney George C. Kraehe.
Twelve Charged with Selling Drugs in and Around Orchard Gardens Housing Development in BostonRead the Press Release
BOSTON – Twelve men, eleven of whom are alleged members or associates of the Orchard Park Trailblazers and Vine/Forest Street gangs, were charged with selling crack cocaine in and around Roxbury’s Orchard Gardens Housing Development.
This morning, federal, state and local law enforcement arrested eight of the 12 defendants charged with distribution of cocaine base, a/k/a crack cocaine, within 1,000 feet of a school. The following individuals were charged today:
1. Dominique Dozier, 31, of Boston;
2. Tyree Draughn, a/k/a “Ty,” 25, of Boston, alleged member of Orchard Park Trailblazers;
3. Daiquan Lucas, a/k/a “Sav Montana,” 24, of Boston, alleged member of Vine/Forest Street;
4. Jeremiah Mines, a/k/a “Germ Gee,” “Jerm,” 24, of Boston, alleged member of Orchard Park Trailblazers;
5. Andre Parham-Rankin, a/k/a “Chuck,” 21, of Boston, alleged member of Orchard Park Trailblazers;
6. Lyndon Scott, a/k/a “L-Dot,” “L-Scott,” “Skizzy,” 27, of Brockton, alleged member of Orchard Park Trailblazers;
7. Keon Smith, 38, of Boston, alleged member of Orchard Park Trailblazers; and
8. Kevin Woods, 26, of Boston, alleged member of Vine/Forest Street.The following charged individuals are fugitives:
1. Raymond Gaines, a/k/a “Hops,” 38, of Brockton, alleged member of Orchard Park Trailblazers;
2. Jaylin Hawkins, a/k/a “Rocko,” “Jay-Roc,” “Lil Bro,” 23, of Boston, alleged member of Orchard Park Trailblazers.
In addition, Raul Williams, a/k/a “Boobie,” 26, of Boston, an alleged member of Orchard Park Trailblazers, was previously charged by the state.
Jose Quinones, a/k/a “Julio,” 24, also an alleged member of Orchard Park Trailblazers, was previously charged with being an alien in possession of a firearm and distribution of cocaine base and has been deported to the Dominican Republic.
During an earlier phase of the investigation, Diamond Brito was charged with gun and drug offenses and sentenced to eight years in prison. Brito, an identified member of the Orchard Park Trailblazers, sold investigators 12 guns and over 35 grams of crack cocaine in 13 separate transactions.
The charges are the result of a nearly two-year investigation into the high concentration of crime in and around the Orchard Park Development, the largest publically funded development in Roxbury which is also adjacent to Orchard Gardens K-8 Pilot School. The crime stems, in part, from the illegal activities of the members and associates of the Orchard Park Trailblazers who allegedly have active feuds with rival gangs throughout the city, contributing to the area’s violence. Eleven of the 12 defendants are alleged members or associates of the Orchard Park Trailblazers or Vine/Forest Street, another area gang. Between October 2015 and May 2017, three cooperating witnesses made 34 controlled drug purchases from the defendants in or around the Development.
According to Boston Police records, 10 of the defendants have been shot or stabbed, some more than once. It is alleged in court documents that the residents of the Development often express concerns to law enforcement about the violence in the area and the gang members who contribute to an atmosphere of fear and intimidation.
The charge of distribution of a controlled substance within 1,000 feet of a school provides for a sentence of no greater than 40 years in prison, a minimum of six years and no more than a lifetime of supervised release, and a fine of $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William Evans made the announcement today. Assistance with today’s arrests was also provided by the Massachusetts State Police.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Statement by Deputy Attorney General Rod Rosenstein on Anonymous AllegationsRead the Press Release
Deputy Attorney General Rod Rosenstein today issued the following statement:
“Americans should exercise caution before accepting as true any stories attributed to anonymous ‘officials,’ particularly when they do not identify the country – let alone the branch or agency of government – with which the alleged sources supposedly are affiliated. Americans should be skeptical about anonymous allegations. The Department of Justice has a long-established policy to neither confirm nor deny such allegations.”
St. Louis Man Indicted on Wire Fraud ChargesRead the Press Release
St. Louis, MO – David E. Schultz, 50, of Saint Louis County, Missouri, was indicted on two counts of wire fraud. According to the Indictment, Schultz induced victims into giving him or his son money or merchandise in exchange for services he claimed capable of providing or on the promise that he would repay the money to individuals after he received a financial settlement or was able to access money in off shore accounts. According to the Indictment, it was part of Schultz’s scheme to defraud that Schultz found victims that had criminal histories and made false promises and false representations to them about his connections with area law firms, judges, attorneys, companies, etc. to lure victims into providing him money for his assistance with their precarious situations.
An example, according to the Indictment, was that David Schultz developed a relationship with victim R.R. Victim R.R. was a St. Louis pharmacist whose pharmacology license was suspended for two years. David Schultz falsely represented to Victim R.R. that he was a non-practicing attorney who worked closely with a Saint Louis area attorney. Schultz told R.R. that in exchange for payments, he would be able to obtain a “Letter of Exoneration” from the Missouri Board of Pharmacy and broker a lucrative lab-testing contract with the Missouri Department of Corrections. Victim R.R. paid David Schultz for services which were never provided.
Another example, according to the Indictment, was that David Schultz developed a relationship with Victim D.G. Victim D.G. was convicted of health care fraud in the Eastern District of Missouri. David Schultz represented to Victim D.G. that he would have his conviction “expunged” and falsely represented that he was in close contact with the Federal District Court Judge who sentenced Victim D.G. Victim D.G. paid David Schultz for services which were never provided.
Another example, according to the Indictment, was that David Schultz developed a relationship with Victim R.J.. Victim R.J. was a former cardiologist convicted of health care fraud in the Eastern District of Missouri. David Schultz falsely represented to Victim R.J. that he was working with attorneys to reinstate Victim R.J.’s medical license. David Schultz falsely represented to Victim R.J. that in exchange for payments, he would pay his personal attorney to secure “immunity” for Victim R.J. Additionally, David Schultz represented that he would pay attorneys to testify for R.J. during the medical license reinstate process; hire private investigators; make court-ordered restitution payments on R.J.’s behalf. Victim R.J. paid David Schultz for services which were never provided.
If convicted, Schultz faces up to 20 years imprisonment on each of two counts of wire fraud, a $250,000 fine or both. Restitution for the victims will also be sought.
The case was investigated by the FBI. Assistant United States Attorney Dianna Collins is prosecuting the case for the U.S. Attorney’s Office
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Spring Hill Woman Pleads Guilty to Embezzling from EmployerRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Rebecca Smith (46, Spring Hill) today pleaded guilty to mail fraud. She faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Smith worked as a purchasing agent in the Pasco County office of Waste Management, Inc., a Houston-based company that provides waste disposal and environmental services across the country. Between October 2015 and September 2016, Smith placed dozens of unauthorized purchase orders with corporate vendors for a wide array of products, ranging from industrial equipment to big-screen televisions. When the vendors sent invoices for these purchases, Smith intercepted them, forged her supervisor's initials to mark their approval, and submitted them for payment. Smith had the items shipped to either her residence or her office, in which case she would take them home. Although the company was ultimately able to recoup some of its losses by returning of some of the merchandise, it ultimately lost over $91,000 as a result of Smith's scheme.
This case was investigated by the United States Secret Service and the Pasco County Sheriff's Office. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.
Sentencings for June 8 - June 13, 2017Read the Press Release
Russell Leroy Tanner, 65, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal, on June 13, 2017, for possession of child pornography. Tanner was arrested in Sweetwater County, Wyoming. He received 97 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $5,000.00 Justice for Victims of Trafficking Crimes assessment, $15,000.00 in restitution, a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the U.S. Homeland Security Investigations.
Jonathan Peter Roybal, 36, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal, on June 13, 2017, for possession with intent to distribute 50 grams or more of methamphetamine. Roybal received 84 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and $250.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
Zachary Richard Fuhrer, 33, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal, on June 13, 2017, for being a felon in possession of a firearm and ammunition. Fuhrer received 46 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Kenneth Eugene Spraker, 49, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal, on June 13, 2017, for conspiracy to distribute 50 grams or more of methamphetamine and for being a felon in possession of a firearm. Spraker received 60 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment and $250.00 in restitution. This case results from an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Laramie Police Department, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Colton Gerald Musgrave, 26, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 8, 2017, for carrying a firearm during and in relation to a drug trafficking crime and for possession with intent to distribute over 50 grams of pure methamphetamine. Musgrave was arrested in Sweetwater County, Wyoming. He received 120 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $200.00 special assessment and $400.00 in restitution. This case was investigated by the Rock Springs Police Department/Street Crimes Unit, the Sweetwater County Sheriff’s Office and the Wyoming Division of Criminal Investigation.
Schenectady Man Pleads Guilty to Drug and Gun OffensesRead the Press Release
ALBANY, NEW YORK – Dujuan Pleasant, age 35, of Schenectady, New York, pled guilty today to distributing crack cocaine and possessing a firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
As part of his plea, Pleasant admitted that he distributed more than 100 grams of crack cocaine to another person in 2016. While executing a search warrant at Pleasant’s home, DEA found an Arminius .22. caliber revolver, a Kel-Tec .32 caliber semi-automatic handgun, 33 rounds of ammunition, several digital scales, as well as cocaine and MDMA (commonly marketed as ecstasy). Pleasant admitted that he kept both firearms in his residence to protect his drugs and drug money.
Sentencing is scheduled for October 13, 2017 in Albany, before United States District Judge Mae A. D’Agostino. Pleasant faces at least 10 years and up to life in prison, a fine of up to $5 million, and a term of post-imprisonment supervised release of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Schenectady Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
ALBANY, NEW YORK – Preston James, age 39, of Schenectady, New York, pled guilty today to distributing crack cocaine.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
As part of his guilty plea, James admitted that in April 2015, he sold crack cocaine four times in the Schenectady area. During one sale he sold over 28 grams. James was previously convicted of felony drug offenses in Rockland County (2009) and Kings County (2006).
James, who is in custody, faces at least 10 years and up to life in prison, as well as a term of post-imprisonment supervised release of at least 8 years and up to life, when he is sentenced on October 13, 2017 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and is being prosecuted by Assistant United States Attorney Solomon B. Shinerock.
San Diego Man Pleads Guilty to Sending Methamphetamine Through the MailRead the Press Release
BOSTON – A San Diego man pleaded guilty today in federal court in Boston to distributing more than 30 packages of methamphetamine through the mail.
Leonard Leseman, 58, pleaded guilty to conspiring to distribute methamphetamine. U.S. District Court Judge Leo S. Sorokin scheduled sentencing for Sept. 14, 2017.
From approximately 2011 through October 2013, Leseman supplied methamphetamine to co-defendant Robert Annette, sending packages from San Diego to Annette’s residences in Somerville and Provincetown. In 2012, a Postal Inspector, conducting a routine drug interdiction, located a suspicious package sent by Leseman addressed to a fictitious name at Annette’s Somerville residence. When the Inspector attempted to deliver the package, Annette refused receipt. From then on, Annette arranged for a network of friends to receive the packages. In total, Leseman mailed more than 30 packages containing methamphetamine to various addresses provided by Annette. During the investigation, packages containing methamphetamine that Leseman sent to customers in Washington, D.C., and Carnegie, Penn., were seized.
Leseman and Annette communicated via text message to discuss the logistics for orders, shipments and payments. For example, regarding a package that Leseman sent Annette, Leseman advised him: “You’ll see 3 blind mice eating ice cream.” After Leseman mailed the package from San Diego, Postal Inspectors in Massachusetts seized the package and opened it pursuant to a search warrant. Inside the package were three toy mice and an ice cream maker with four ounces of methamphetamine hidden inside.
Annette and three other individuals, Steven Marszalkowski of Provincetown; Lawrence Ligocki, of Chelsea; and Scott Hill, of Somerville, previously pleaded guilty to various charges in connection with this investigation. Scott Hill was sentenced on April 12, 2017, to 42 months in prison.
Acting United States Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorneys James E. Arnold and Craig E. Estes of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.
Sacramento Man Sentenced to over 7 Years in Prison for Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Sergey Shchirskiy, 41, of Sacramento, to seven years and 10 months in prison for his participation in two mortgage fraud schemes and one tax fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Shchirskiy pleaded guilty to one count of wire fraud in each of the two mortgage fraud cases, as well as one count of conspiracy to defraud the United States and one count of aggravated identity theft in the third tax fraud case.
According to the plea agreement, Shchirskiy was a loan processor in one mortgage fraud scheme (2:11-cr-514). Between April 2007 and November 2007, the co-conspirators used straw buyers to buy properties and then take out Home Equity Lines of Credit on the houses using fraudulent documents and statements. Shchirskiy helped to create the fraudulent supporting documents. All of the properties were foreclosed on, resulting in at least $1.5 million in losses to lenders.
According to the plea agreement in the second mortgage fraud scheme (2:12-cr-060), in April 2007, Shchirskiy recruited straw buyers to purchase a houses based on fraudulent loan applications. The applications gave false information about the buyer’s employment, income, assets, and intention to occupy the properties. The properties were foreclosed upon and resulted in a loss of more than $1.2 million to lenders.
According to the plea agreement in the tax fraud scheme (2:14-cr-198), between March 2011 and April 2011, Shchirskiy conspired with others to obtain false tax refunds by submitting fraudulent claims using the identities of various individuals, at least eight of which were stolen. Shchirskiy claimed Earned Income Tax Credit based on false claims of employment from California’s In-Home Supportive Services program. Shchirskiy and his co-conspirators made approximately 80 attempts to file fraudulent tax returns, attempting to receive $661,286 in fraudulent returns from the Internal Revenue Service. The IRS ultimately issued approximately $88,728 in fraudulent refunds.
These cases were the product of investigations by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Heiko Coppola and Michele Beckwith prosecuted the cases.
Registered Nurse Formerly Employed by Hospice Care Provider Pleads Guilty to Federal Prescription Opioid Conspiracy ChargesRead the Press Release
ALBUQUERQUE – Desiree Ulibarri, 31, of Albuquerque, N.M., pled guilty today in federal court to federal prescription opioid conspiracy charges under a plea agreement that recommends that she be sentenced to a term of imprisonment not to exceed 57 months followed by a term of supervised release to be determined by the court. At the time Ulibarri committed the crimes to which she pleaded guilty, she was a registered nurse employed by an Albuquerque-area hospice care provider. The guilty plea was announced by Acting U.S. Attorney James D. Tierney and Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division.
In announcing the guilty plea, Acting U.S. Attorney Tierney said, “New Mexicans deserve competent health care from medical professionals whose sole focus is the best interest of their patients, not from drug traffickers who abuse their medical licenses to capitalize on their patients’ healthcare needs. Today’s guilty plea sends a message of deterrence to healthcare providers seeking to abuse their medical licenses for anything other than providing competent and professional medical care to their patients.”
“This investigation has shown the unfortunate reality that anyone – even those in well-paying, professional positions – can become involved in criminal activity,” said DEA Special Agent in Charge Glaspy. “And this guilty plea demonstrates that those who take that step will be held accountable.”
Ulibarri and co-defendant Annabel Debari, 36, also of Albuquerque, were charged in August 2016, in a two-count indictment with conspiracy to distribute oxycodone, and conspiracy to acquire and obtain oxycodone by fraud and deceit. According to the indictment, the two women committed the crimes in Bernalillo County, N.M., between April 2016 and July 2016.
The investigation of this case began on July 21, 2016, after Ulibarri’s employer, a hospice care provider, contacted DEA to report suspicions that Ulibarri was engaged in prescription pill diversion. The employer became suspicious because Ulibarri was documenting patients’ prescriptions in a way that made it difficult to reconcile the medications and because Ulibarri was picking up patients’ prescription pills at Federal Express instead of having the medication delivered to the patients.
On July 22, 2016, DEA agents seized 80 10-mg oxycodone pills from Ulibarri, which she obtained from packages she retrieved from Federal Express. When DEA agents conducted a consensual search of Ulibarri’s cellular phone, they allegedly found evidence that Ulibarri had been conspiring with a co-worker, who is also a registered nurse, to illegally distribute prescription pills since April 2016. Additionally, a review of records of missing packages revealed that at least 3,870 pills, an aggregate of 42,150 mgs of oxycodone, had been diverted during the course of the conspiracy.
During today’s proceedings, Ulibarri pled guilty to the indictment. In her plea agreement, Ulibarri admitted that she was a registered nurse in March 2016, when she was hired by a hospice care provider, and in April 2016, she began to abuse her position to divert prescription medications from their intended recipients. She acknowledged that she recommended oxycodone prescriptions for patients who did not need oxycodone with the intention of selling the pills to others. Ulibarri admitted arranging for a courier service to hold packages of oxycodone intended for patients for pickup instead of delivering the medication to the patients, and picking up the medication herself so she could divert the oxycodone for distribution and her own personal use. Ulibarri also admitted recommending that her employer hire Debari, who was also a registered nurse, so that Debari could assist her in diverting and distributing oxycodone pills in New Mexico.
Debari entered a guilty plea to similar charges on Dec. 9, 2016. In entering her guilty plea, Debari admitted that she personally diverted at least 750 10-milligram oxycodone pills in furtherance of Ulibarri’s diversion scheme. As part of that scheme, on June 7, 2016, Ulibarri called the courier service and pretended to be the intended recipient of the oxycodone pills, and requested that the courier service release the medication to Debari. Debari also admitted that on July 18, 2016, she helped Ulibarri conceal their diversion scheme from their employer by arranging for another person to call their employer and falsely claim to be an employee of the courier service who was reporting that the oxycodone pills had gone missing.
Debari faces a statutory maximum penalty of 20 years in federal prison. Sentencing hearings for Debari and Ulibarri have yet to be scheduled.
This case was investigated by the Tactical Diversion Squad of the DEA in Albuquerque. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Assistant U.S. Attorneys Alexander M. Uballez and Kristopher N. Houghton are prosecuting the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Polk County Woman Pleads Guilty for Role in Murder CaseRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on June 15, 2017, Lorie Ortiz, 32, Crookston, Minn., pled guilty before US District Judge Ralph R. Erickson to a Superseding Indictment charging her with Accessory After the Fact to Murder.
This case came to the attention of law enforcement following the shooting death of Austin Forsman at the Flying J truck stop located in Grand Forks, ND, on March 11, 2016. The murder investigation quickly resulted in the unravelling of a large methamphetamine trafficking conspiracy operating in the Red River Valley, and resulted in thirteen (13) individuals being charged in Federal Court. At the plea hearing, Ortiz admitted that, following the murder, she was involved in destroying or attempting to destroy evidence, namely cell phones, in an effort to assist the participants in the murder from being caught by authorities.
Judge Erickson has set sentencing for Sept. 8, 2017, at the US District Court, Fargo.
This case was investigated by the Department of Homeland Security - Homeland
Security Investigations, the Drug Enforcement Administration, and the Grand Forks Narcotics
Task Force.
US Attorney Christopher C. Myers is prosecuting this case.
Police and Prosecutors Join Students for a Day of LearningRead the Press Release
TALLAHASSEE, FLORIDA – The United States Attorney’s Office for the Northern District of Florida, Leon County Sheriff’s Office, and AMIkids Tallahassee and Gadsden, will present a BLAST Program event on Friday to approximately 40 students.
Event: BLAST Program
Location:
AMIkids Tallahassee
2514 W. Tharpe St.
Tallahassee, FL 32303
Date: Friday, June 16, 2017
Time: 9:00 a.m. – 1:00 p.m. EDT
Press: Please RSVP to Amy Alexander at [email protected] if you plan to attend.
United States Attorney Christopher P. Canova said: “The BLAST initiative was created by the U.S. Attorney’s Office to provide a forum to exchange information about officer risks and citizen viewpoints. Sharing these perspectives encourages safe interactions between citizens and officers to improve our community.”
Leon County Sheriff Walt McNeil said, “We are excited and proud to be a partner in this event to engage our young people and work with our community members.”
AMIkids Inc. representatives said: “This is an important priority for AMIkids and our partners in law enforcement as it is critical to our service of building and maintaining healthy, safe communities.”
The BLAST Program offers students an opportunity to meet representatives of the criminal justice community and ask them questions, share their perceptions of law enforcement, and interact with officers in a familiar setting. Officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations.
The schedule will include the following discussion sessions, during which students will have a chance to participate in role play with law enforcement officers.
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Criminal Justice Overview: Students will learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.
This session is open to the media and public, and videography and photography is permitted.
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Domestic Violence: Students will participate in a scenario in which police respond to a domestic disturbance. Discussion includes the challenges officers face, rights of witnesses and suspects, and benefits of providing information to the police.
This session is open to the media and public, and videography and photography is permitted.
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Traffic Stop Simulation: Participants and officers alternate playing the roles of civilians and officers in a traffic stop. Discussion includes de-escalation and the uncertainty officers and vehicle occupants face during a traffic stop.
This session is open to the media and public, and videography and photography is permitted.
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Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation.
This session is closed to the media and public. Reporters may try the simulator equipment after the event ends.
Participating agencies include:
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United States Attorney’s Office, Northern District of Florida
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Leon County Sheriff’s Office
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AMIkids Tallahassee
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AMIkids Gadsden
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Bureau of Alcohol, Tobacco, Firearms and Explosives
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IRS-Criminal Investigation
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U.S. Postal Inspection Service
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Florida Highway Patrol
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FAMU Police Department
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
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Philadelphia Man Charged with Illegal Reentry After DeportationRead the Press Release
Procoro Abel Alcaide-Bringas, a/k/a “Abel Alcaide-Bringas,” 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 May 17, 2017, Alcaide-Bringas, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about March 31, 1998, December 21, 2005, and February 26, 2006.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Randall P. Hsia.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peoria County Man Ordered to Serve 20 Years in Prison for Receiving, Possessing Child PornographyRead the Press Release
PEORIA, Ill. – Richard L. Sills, 61, of Mapleton, Ill., has been sentenced to 20 years (240 months) in federal prison for receiving and possessing child pornography. At the hearing on June 13, U.S. District Judge Michael M. Mihm also ordered that Sills remain on supervised release for 10 years following his release from incarceration. Sills will be required to register as a sex offender. Sills has remained in the custody of the U.S. Marshals Service since his arrest on Oct. 5, 2016.
Sills pleaded guilty to the offenses on Jan. 27, 2017. According to court documents, Sills was identified after investigators with U.S. Immigration and Customs Enforcement Homeland Security Investigations learned that a computer located within his residence was using a peer-to-peer file sharing program to download files containing child pornography. Based on this information, HSI special agents obtained and executed a search warrant for Sills’ residence in Oct. 5, 2016. During the search, Sills agreed to be interviewed and admitted that he accessed child pornography with the computer in his home using a peer-to-peer file sharing program and had been doing so since the 1990s.
At the conclusion of the search, HSI special agents seized numerous items of computer equipment. A forensic examination of the seized items revealed the presence of 1,322 images and 73 videos of minors engaged in sexually explicit conduct.
Assistant U.S. Attorneys Ronald L. Hanna and Katherine G. Legge prosecuted the case, which was investigated by a U.S. Immigration and Customs Enforcement Homeland Security Investigations task force which includes officers on temporary detail from various local departments including the Washington Police Department.
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.
Pennsylvania man sentenced in federal court for having sex with a 14-year-old girlRead the Press Release
Drove from Pennsylvania to Zionsville to have sex with a minor
PRESS RELEASE
INDIANAPOLIS –United States Attorney Josh Minkler announced today the sentencing of a Pennsylvania man for having sex with a 14-year-old girl in Zionsville. Sean A. Donnelly 22, Ephrata, Pennsylvania, was sentenced to 235 months imprisonment (19.5 years) by U.S. District Judge Tanya Walton Pratt after pleading guilty to enticing a minor to engage in illegal sexual activity and possession of child pornography.
“Mr. Donnelly will spend the next 19 years of his life inside the walls of a federal prison as a sex offender,” said Minkler. “One of the top priorities of this office is to protect those who cannot protect themselves.”
According to court documents, Donnelly and a 14-year-old girl from Zionsville, Indiana, met in a chat room on the Internet in February 2015. They conversed regularly by text messages and telephone calls. The conversations became more intimate and Donnelly asked the victim to send naked pictures of herself of which she complied. He would send favorable responses to the victim and asked for more.
On July 2, 2015, Donnelly drove from Pennsylvania to Zionsville and had sexual relations with the victim. He returned on July 9, 2015, for the purpose of having a sexual relationship and was discovered with the victim in a local park by the Zionsville Police Department and taken into custody.
The Zionsville Police Department and the FBI investigated this case.
“The Zionsville Police Department wishes to thank our federal partners at the Federal Bureau of Investigation and the United States Attorney’s Office for their assistance in bringing this individual to justice,” said Zionsville Police Chief Robert Knox. “This was a solid group effort in combating the scourge of those preying on the young people of our communities.”
According to Trial Counsel Kaylynn Shoop of the U.S. Department of Justice’s Criminal Division, Child Exploitation and Obscenity Section (CEOS), and Senior Litigation Counsel Steven D. DeBrota of the Southern District of Indiana, who prosecuted this case for the government, Donnelly must serve 20 years of supervised release after his term of imprisonment and pay a $5,000 fine.
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Pekin Sex Offender Sentenced to 20 Years in Prison for Receiving, Possessing Child PornographyRead the Press Release
PEORIA, Ill. – Chief U.S. District Judge James E. Shadid today ordered David C. Turner, 43, of Pekin, Ill., to serve 20 years (240 months) in federal prison for child pornography crimes. Turner pled guilty to receiving and possessing child pornography in December 2016 and January 2017, six months after serving 21 years in the Illinois Department of Corrections for offenses including child pornography, aggravated kidnapping and solicitation for murder.
Turner has remained in the custody of the U.S. Marshals Service since he was arrested on Jan. 11, 2017, when he was charged in a criminal complaint. On Feb. 16, Turner pled guilty to the offenses. Upon his release from incarceration, Turner was ordered to remain on supervised release for 20 years and to register as a sex offender.
According to court documents, in December 2016, law enforcement agents identified two IP addresses from a computer, subsequently identified as Turner’s, which were using a peer-to-peer file sharing program to download and share files containing child pornography. Based on this information, U.S. Secret Service agents obtained and executed a search warrant for a residence in the 2100 block of Court St., in Pekin, on Jan. 11, 2017. At the residence, agents identified Turner and seized numerous items of computer equipment belonging to Turner. A forensic examination of the seized items showed they contained 481 images and 84 videos of minors engaged in sexually explicit conduct.
Assistant U.S. Attorney Ronald L. Hanna prosecuted the case. The charges were the result of an investigation by the U.S. Secret Service, Springfield Electronic Crimes Unit, which includes the Peoria County Sheriff’s Department.
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.
Northern California Real Estate Investor Pleads Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor pleaded guilty yesterday for his role in a conspiracy to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
California real estate investor Ramin Rad “Ray” Yeganeh pleaded guilty to one count of bid rigging in U.S. District Court for the Northern District of California in Oakland. He was charged in an indictment returned by a federal grand jury in the Northern District of California on June 25, 2015.
According to court documents, as early as September 2008 and continuing until in or about January 2011, Yeganeh conspired with others not to bid against one another, instead designating a winning bidder to obtain selected properties at public real estate foreclosure auctions in Alameda County. The selected properties were then awarded to the conspirators who submitted the highest bids in second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held.
The Department determined that the primary purpose of the conspiracies was to suppress and eliminate competition in order to obtain selected real estate offered at Alameda County public foreclosure auctions at noncompetitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner.
The guilty plea entered yesterday was the result of the Department’s ongoing investigation into bid rigging at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, California. To date, 60 individuals have agreed to plead or have pleaded guilty.
These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to real-estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at (415) 934-5300 or call the FBI tip line at (415) 553-7400.
North Tonawanda Man Sentenced for Unlawfully Possessing Firearm as Convicted FelonRead 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 Abimael Mercado, 36, of North Tonawanda, NY, who was convicted of being a felon in possession of a firearm, was sentenced to 24 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that on May 11, 2016, law enforcement officers executed a search warrant at Mercado’s home and found a shotgun and 11 shells in his bedroom. The defendant was previously convicted of a federal drug felony, and is prohibited from legally possessing firearms and ammunition.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, the Erie County Sheriff’s Office, under the direction of Timothy Howard, and the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Norristown Man Charged with Illegal Reentry After DeportationRead the Press Release
Luis Tellez, a/k/a “Jorge Luiz Hernandez-Tellez,” a/k/a “Efren Serrano,” of Norristown, 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 May 17, 2017, Tellez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about February 18, 2013, September 9, 2013, April 9, 2015.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Kelly A.L. Fallenstein.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Nigerian Immigrant Sentenced for Tax FraudRead the Press Release
HOUSTON – A 29-year-old from Nigeria who was residing in Houston has been ordered to federal prison following his conviction in a stolen identity tax fraud scheme, announced Acting U.S. Attorney Abe Martinez. Oriola Samuel Odulate pleaded guilty Jan. 26, 2017, to conspiracy to steal public money.
Today, U.S. District Judge Alfred H. Bennett sentenced him to 24 months in federal prison and ordered him to pay $268,017 in restitution to the IRS.
Odulate and other unknown coconspirators defrauded the government by filing false and fraudulent income tax returns. Co-conspirators unlawfully acquired the personal identifying information (PII) of others such as names, dates of birth, Social Security numbers and addresses. They then used the unlawfully acquired PII to file fraudulent tax returns that requested refunds in the names of the victims.
The IRS sent refunds to bank accounts that Odulate opened and controlled. He received the money from the unlawful refunds, withdrew it from his bank account and then distributed the funds to co-conspirators.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jay Hileman is prosecuting the case.
New Orleans Man Pleads Guilty to Illegal Possession of a Firearm and Making False Statements to Federal AgentsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DARRION YOUNG, age 32, pled guilty yesterday to being a felon in possession of a firearm and making false statements to federal agents.
According to the court documents, YOUNG, who had previously been convicted of a felony in the United States District Court for the Eastern District of Louisiana, possessed a firearm on November 24, 2015. Moreover, after his arrest, on two occasions, YOUNG made false statements to agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, during which he falsely accused a person of taking part in a shooting at the Bunny Friend Park on November 22, 2015. In fact, the person that YOUNG falsely accused was not in Louisiana on the date of the Bunny Friend Park shooting.
YOUNG faces a maximum term of imprisonment of ten years, a fine of $250,000, and three years of supervised release following any term of imprisonment for being a felon in possession of a firearm. For each count of making false statements, YOUNG faces a maximum term of imprisonment of five years, a fine of $250,000, and three years of supervised release following any term of imprisonment. U.S. District Judge Susie Morgan set sentencing on September 12, 2017.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
New Haven Man Sentenced to 7 Years in Federal Prison for Heroin Distribution, Gun Possession OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SAMUEL ALBARRAN, also known as “Sam Dog,” 34, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 85 months of imprisonment, followed by five years of supervised release, for heroin distribution and firearm possession offenses.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that ALBARRAN’s brother, Wilson “Pancho” Vasquez, obtained bulk quantities of heroin, processed and packaged the drug with several co-conspirators, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood.
A series of intercepted calls during the investigation revealed that ALBARRAN agreed to supply Vasquez with 300 grams of heroin.
Law enforcement officers first attempted to arrest ALBARRAN on July 15, 2015. On that date, a search of a New Haven residence connected to ALBARRAN revealed distribution quantities of heroin, cocaine and marijuana; a kilogram press and heroin packaging materials; 9mm and .380 caliber firearms; 9mm ammunition, and more than $21,000 in cash.
ALBARRAN remained a fugitive until February 11, 2016, when he was apprehended in East Haven. He has been detained since his arrest.
On September 15, 2016, ALBARRAN pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.
Seventeen individuals were charged as a result of this investigation. All 17 have pleaded guilty.
Vasquez is scheduled to be sentenced on June 21, 2017.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.
Navajo Man from Shiprock Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Zachariah Nez, 19, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty today in federal court in Albuquerque, N.M., to a voluntary manslaughter charge. The plea agreement recommends a prison sentence within the range of six to 11 years followed by a term of supervised release to be determined by the court.
Nez was arrested in Oct. 2016, on a criminal complaint charging him with killing a Navajo man on the Navajo Indian Reservation in San Juan County, N.M., on Oct. 17, 2016. According to the complaint, Nez killed the victim by striking him with a rock.
Nez was indicted on Nov. 1, 2016, and charged with second-degree murder on Oct. 17, 2016, in San Juan County.
During today’s proceedings, Nez pled guilty to a felony information charging him with voluntary manslaughter. In entering the guilty plea, Nez admitted that on Oct. 17, 2016, he killed the victim by striking him several times with a rock. Nez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Joseph M. Spindle.
Nashville Man Facing Federal Firearms Charge After Shooting Death of 7-Year Old GirlRead the Press Release
Anthony Patrick Sanders, 27, of Nashville, Tennessee, was charged yesterday with being a convicted felon in possession of firearms, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee. The charge is the result of an investigation into the shooting death of 7-year old Harmony Warfield, which occurred on June 6, 2017.
According to the criminal complaint obtained yesterday, on June 6, 2017, Harmony Warfied was shot in the head by a two-year old boy who picked up a handgun and fired it while in an apartment in the J.C. Napier public housing development. Harmony Warfield died as a result of the injury.
“Another innocent child has died because the defendant, a convicted felon who is prohibited from possessing a firearm, chose to ignore the law and arm himself with handguns, said Acting U.S. Attorney Jack Smith. “It is apparent from this investigation that multiple people knew that the defendant regularly carried firearms and some had even told him not to bring guns into the area where so many children are located. We implore our citizens to do the right thing and notify law enforcement when they become aware of someone who is illegally carrying a firearm. We can and will continue to bring federal charges against individuals who illegally possess firearms after having been convicted of a felony, but, as is the case here, these charges are usually brought after violent acts have occurred. We desperately need the help of our law abiding citizens if we are going to be successful in reducing the number of violent incidents involving firearms.”
As alleged in the complaint, the subsequent investigation determined that Anthony Sanders had stayed at the home the night before and was known to generally carry one or two firearms whenever he was in the J.C. Napier housing area. Sanders sometimes kept the firearms in the residence where Harmony Warfield was shot. The investigation determined that Sanders had stayed at the residence the night before and had slept on the couch. According to witness statements and video evidence, Sanders woke up and went outside. Shortly thereafter, the gun was discharged by the 2- year-old, striking Harmony in the head. Sanders re-entered the residence and saw Harmony laying on the kitchen floor. He then retrieved the firearm and fled the area, saying he could not go back to prison.
Also, according to the complaint, three other juveniles were inside the residence when the incident occurred.
“ATF, along with its partners, are working diligently to protect the public from these senseless acts of violence,” said ATF Special Agent in Charge Steve Gerido. “ATF will remain vigilant as we engage with the community and foster an environment where our children are safe. In this case justice will be swift and fair. Support from the public is crucial as the reporting of illegal activity is encouraged through ATF’s ‘report it’ phone app.”
“The protection of children is among the highest responsibilities of us all,” said Nashville Police Chief Steve Anderson. “There was a blatant failure of that responsibility in the death of Harmony Warfield. Our Youth Services detectives quickly recognized that and were in communication with the United States Attorney’s Office and the ATF early in their investigation. Individuals who unlawfully arm themselves pose a real danger to persons of all ages in our community. I am grateful to our federal partners for actively sharing this police department’s commitment to the safety of all Nashville’s neighborhoods.”
Sanders had previously been convicted in 2008 of kidnapping and was sentenced to eight years in prison. He was released from prison in June 2016.
Sanders was arrested by federal agents yesterday afternoon and appeared before a U.S. Magistrate earlier today.
If convicted, Sanders faces up to 10 years in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
This charge is merely an accusation. Sanders is presumed innocent unless and until proven guilty in a court of law.
Montgomery Man Found Guilty of Federal Firearms Charges after Shootout at Convenience StoreRead the Press Release
Montgomery, Alabama – On Tuesday, June 13, 2017, Christopher Gilcrest (34), of Montgomery, Alabama, was found guilty in federal court of being a felon in possession of ammunition, announced Acting U.S. Attorney A. Clark Morris. Federal law prohibits a person convicted of a felony from possessing firearms or ammunition.
According to the evidence presented at trial, on October 23, 2016, Gilcrest went to the Value Gas Food Store on Highland Avenue in Montgomery just after midnight. As Gilcrest approached the store, he began to argue with another man in the parking lot. During the argument, Gilcrest pulled out a gun. At this point, the other man produced his own firearm and Gilcrest shot him in the leg. Several shots were exchanged between them and a total of three people were struck by bullets during the gunfire, including the defendant. Gilcrest fled the scene after firing his weapon at least six times.
Although Gilcrest’s gun could not be recovered, the Montgomery Police Department (MPD) was able to collect spent shell casings from the scene immediately after the shooting. Surveillance cameras showed Gilcrest was shooting from the exact spot the casings were found. A ballistics examination showed that all of the shell casings recovered where Gilcrest was shooting were fired from the same gun. The jury ultimately concluded that the casings came from Gilcrest’s gun, and he was found guilty.
Gilcrest now faces a maximum punishment of ten (10) years in federal prison. There is no parole in the federal system. He is currently in the custody of the United States Marshals Service pending his sentencing hearing, which is expected to occur in the next few months.
“One of the main priorities of the U.S Attorney’s Office is removing violent criminals from our communities,” stated acting U.S Attorney Morris. “This shootout placed the lives of innocent people in jeopardy. We are thankful that both MPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) share our commitment to identifying dangerous trigger pullers and bringing them to justice.”
“ATF, along with its partners, work diligently to protect the public from these senseless acts of violence,” said ATF Special Agent in Charge Steve Gerido. “ATF will remain vigilant as we engage with the community and foster a safe environment. Support from the public is crucial as the reporting of illegal activity is encouraged through ATF’s ‘report it’ phone app.”
“At MPD, we appreciate our close working relationship with the U.S. Attorney’s Office and want to thank our federal partners for bringing this investigation to a successful conclusion with the conviction of Mr. Gilcrest,” stated Montgomery Police Chief Ernest Finley.
Acting U.S. Attorney Morris would like to thank the following entities for their assistance in investigating this case: the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Montgomery Police Department (MPD). This case was prosecuted by Assistant United States Attorneys Bradley Bodiford and Ben Baxley.
Mississippi Corrections Officer Sentenced for Inmate AssaultRead the Press Release
The Department of Justice today announced that former Mississippi correctional officer Lawardrick Marsher was sentenced to 50 weekends in prison, five years probation and 150 hours of community service for severely beating an inmate at the state’s Parchman Prison.
Marsher, 29, admitted at his guilty plea in February that he repeatedly punched and kicked the victim while he lay nonresistant on the ground. The victim was temporarily blinded by the attack and suffered severe blood loss, a broken orbital bone, and permanent partial vision loss after the March 9, 2014, incident.
After the attack, Marsher and three other officers created a cover story that falsely minimized and falsely justified the force used by officers. As part of the cover-up, they wrote false reports and lied to federal investigators.
“Vicious attacks like this one dishonor the responsible work done by corrections officers throughout the country,” said Acting Assistant Attorney General Tom Wheeler. “The Department of Justice will protect the rights of all citizens, including those in prison.”
The leader of the cover-up, Robert Sturdivant, has also pleaded guilty and is scheduled to be sentenced on June 30. Sturdivant was a lieutenant at the prison and Marsher’s supervisor.
Two other officers were sentenced on June 2 for their roles in the beating and the cover-up. Deonte Pate, 24, was sentenced to 12 weekends in jail and to a period of probation for his role in concealing the incident. Romander Nelson, 44, was sentenced to 14 weekends in jail and a period of probation for failing to intervene to protect the victim.
The Mississippi State Penitentiary in Parchman is the largest prison in the state, housing more than 3,000 inmates. It has operated continuously as both a prison and a working farm since 1901.
Marsher was terminated by the Mississippi Department of Corrections shortly after the incident, and Nelson and Sturdivant were terminated after federal charges were filed. Pate resigned.
"Corrections officers are sworn to protect those within our prison systems, but there is an expectation that they uphold the laws and rights of those they protect," said Special Agent in Charge of the FBI in Mississippi, Christopher Freeze. "Inmates are not less than human and maintain inalienable civil rights; therefore, they should be treated with justice not callous assault. The FBI will continue to aggressively investigate allegations of civil rights violations."
This case was investigated by the FBI’s Jackson Division, with the cooperation of the Mississippi Department of Corrections. It was prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Milwaukee Woman Sentenced to Prison for False Tax Return SchemeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on June 9, 2017, Paula Forbes (age: 49) of Milwaukee, Wisconsin, was sentenced to 24 months in federal prison followed by three years of supervised release and ordered to pay $143,016 in restitution for income tax fraud. Specifically Forbes conspired to defraud the United States by filing false tax refund claims, in violation of Title 18, United States Code, Section 286, and also of filing false tax refund claims, in violation of Title 18, United States Code, Section 287. Forbes was convicted at a jury trial on February 3, 2017.
As proven at trial, beginning in January 2012, Forbes engaged in a scheme with others to file false income tax returns that claimed refund payments from the Internal Revenue Service (IRS). Forbes and her coconspirators gathered individuals’ social security numbers and other personal information. Forbes then prepared federal income tax returns that fraudulently claimed wages and federal tax-withholding amounts from several employers, including Wisconsin Mortgage & Real Estate Resources and Midwest Accounting Tax Services, even though those employers had not actually paid wages or withheld taxes for the individuals. Forbes submitted the returns electronically to the IRS, signing the returns for individuals, many of whom she had never met. Forbes filed at least 35 fraudulent tax returns seeking more than $200,000 in tax refund payments. Forbes and her
coconspirators shared in the proceeds of the fraudulently obtained tax refunds.
This case resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Matthew Jacobs and Matthew Krueger prosecuted the case.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Midlothian Businessman Arrested on Fraud ChargesRead the Press Release
RICHMOND, Va. – The owner of Midlothian businesses Premier Consulting Services and Premier Credit Consultants was arrested this morning on federal fraud charges.
Timothy Scott Wenk, 50, of Chesterfield County, is charged with one count of wire fraud. According to the affidavit filed in support of the criminal complaint, Wenk operated several businesses, including of Premier Consulting Services, Capital Business Services and Premier Credit Consultants, which purported to offer a variety of financial services, including mortgage finance and credit repair services. The criminal complaint specifically alleges that Wenk defrauded a victim identified as “V.S.” of $5,496 related to a home the victim was to rent from Wenk but which the defendant never made available for rent. The affidavit further alleges that approximately 70 customers of his businesses have experienced losses of more than $750,000.
Wenk faces a maximum penalty of 20 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after Wenk’s initial appearance in federal court. Assistant U.S. Attorney Brian R. Hood is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-mj-107.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Middlesex Borough Fire Inspector and Another Individual Charged in Strongarm Extortion SchemeRead the Press Release
NEWARK, N.J. – A fire inspector for Middlesex Borough and other New Jersey municipalities and another individual have been charged with conspiracy to commit extortion using threats of force, violence, and fear, Acting U.S. Attorney William E. Fitzpatrick announced today.
Billy A. Donnerstag, 49, of Hackettstown, New Jersey, and Joseph P. Martinelli, 64, of Kenvil, New Jersey, are charged by complaint with one count of conspiracy to commit extortion. Donnerstag is expected to make his initial appearance this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court. Martinelli is expected to make his initial appearance on June 16, 2017, before Judge Clark.
According to the complaint:
From December 2016 and through June 2017, Donnerstag and Martinelli conspired to extort the owner and operator of a real estate development and construction company. The victim, identified in the complaint as “Individual 1,” was allegedly threatened with physical harm if Individual 1 did not pay thousands of dollars to Donnerstag and Martinelli, both of whom intimated that they had connections to organized crime. In a series of telephone and in-person conversations with Individual 1, Donnerstag and Martinelli told Individual 1 that, in addition to being a fire inspector for Middlesex Borough, Donnerstag also collected debts. Martinelli and Donnerstag allegedly wanted Individual 1 to pay Martinelli because Individual 1 had not paid Martinelli enough money for the sale of a property a decade earlier.
Donnerstag described himself to Individual 1 as “the guy that you don’t want to see,” “a problem for you right now,” and “someone that you need to deal with about this issue.” Donnerstag explained that he was a collector of debts who operated outside of the legal system and was “not somebody who’s in the yellow pages.” Donnerstag further explained that people who did not want to deal with lawyers would “rather deal with somebody like me, who’s just very cut and dry” because “I get the job done . . . and I get it done fast. Don’t ask me . . . how I get it done fast, cause you already know how I get it done fast.” Donnerstag told Individual 1 to ask others about Donnerstag’s father, whom Donnerstag referred to as “Jerry the Jew,” because, according to Donnerstag, “that’s what I do.” According to publicly available information, in the 1970s, Gerald Donnerstag of Belleville, New Jersey, a/k/a “Jerry the Jew,” reportedly was connected to organized crime, and was convicted of murder in Scranton, Pennsylvania, and theft in Essex County, New Jersey.
Donnerstag made a series of threatening statements to Individual 1 regarding the consequences of failing to pay, including:
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“if you were in front of me right now, you’d be on the floor. Okay? Cause I don’t talk—I don’t get talked to like that. You don’t know who I am.”
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“You need to iron this out with Joe. Again, if, if I have to come meet you now—again, it, it, it, it’d become, it’s gonna be a problem.”
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“What I do, is I make sure that people don’t take advantage of other people. Do you understand that? Now I also do other things, but this is one of the things that I do. Now, again if you’re not figuring wh, what my business is by now, you’re either, and again I, I say this with as much respect as I can, either an idiot, or you’re just lying because you don’t want to, to, to understand that I come from somewhere that most people don’t wanna see.”
Martinelli similarly made threatening statements to Individual 1 about what Donnerstag would do if Individual 1 failed to pay, including:
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“He’s [Donnerstag] a collector. And when he sees those kind of dollars, he gets a percentage of ‘em. He comes hell bent for election. He don’t fucking care . . . . He comes—he’ll collect the money one way or the other that’s the way he is. I don’t want to get involved in that.”
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When asked if Individual 1 could choose not to pay: “If—you know—I can only go so far with this guy cause I don’t know when he’ll stop down to see you.”
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When asked what would happen if Individual 1 would not pay: “you may get a visit. And he’s going to probably want something because he already came out once and that’s his problem, and once he starts, he don’t stop. He’s hopin’ I settle it, that’s what he’s hopin’. And I’m hopin’ I can settle it with something, with some kind of figures, I don’t care how. . . .”
During the conspiracy, over two separate meetings (both of which were lawfully recorded), Donnerstag and Martinelli obtained $15,000 in cash from Individual 1. The cash had been provided by law enforcement officials.
The count of conspiracy to commit extortion carries a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, New Jersey, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Lee M. Cortes, Jr. of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Donnerstag: Carol Gillen Esq. Assistant Federal Public Defender, Newark
Martinelli: Brian N. DiGiacomo Esq., Madison, New Jersey
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Mexican national convicted of reentry of removed alienRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Mexican national admitted today to reentering the country illegally, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Bonifacio Zarate-Flores, age 27, pled guilty to one count of “Reentry of Removed Alien.” Zarate-Flores was removed from the United States in 2015 and 2016. He was then found in Berkeley County on April 18, 2017.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The United States Department of Homeland Security Immigrations & Customs Enforcement investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Memorandum of Understanding Signed Regarding Youthful Offender Guidance on the Lower Brule ReservationRead the Press Release
United States Attorney Randolph J. Seiler announced the signing of a Memorandum of Understanding (MOU) between the Lower Brule Sioux Tribe (LBST) and the South Dakota U.S. Attorney’s Office at a ceremony in Lower Brule, South Dakota, on Wednesday, June 14, 2017. The signing ceremony took place in the Lower Brule Sioux Tribal Courtroom.
This MOU is a collaborative effort between the South Dakota U.S. Attorney’s Office and LBST to develop and effect a creative sentencing action plan, whereby eligible tribal members between the ages of eighteen (18) and twenty-four (24), who have committed crimes that do not fall into one of the prohibited categories of the MOU, may be afforded the opportunity to avoid federal prosecution and/or imprisonment. With the implementation of the MOU, youthful offenders will be given a chance to avoid federal convictions which may impact their future. It also allows families to remain intact and the tribe an opportunity to rehabilitate youth in an individualized manner.
The MOU will foster an increased cooperation between the LBST and the South Dakota U.S. Attorney’s Office to promote and increase peace and public safety for tribal communities. LBST Tribal Court has already established a Wellness Court that works to help low-level or misdemeanor offenders who want to overcome serious problems with, or addiction to, alcohol and other substances achieve lifetime sobriety or diversion away from the criminal justice system. Entry into the Wellness Court is not automatic and each request to participate is reviewed on a case by case basis and only a limited number of slots are available at any time.
The MOU was lauded by U.S. Attorney Seiler. “This truly is a great opportunity for youthful offenders on the Lower Brule reservation to have a second chance. Our goal is to make this program a viable alternative to incarceration, while at the same time, holding the offender accountable with less severe punishment. I commend Boyd Gourneau, Chairman of the Lower Brule Sioux Tribe, and Lorrie Miner, Chief Judge of the Lower Brule Sioux Tribe, for their commitment to this effort and their foresight in trying to make their reservation a safer place to live.”
The South Dakota U.S. Attorney’s Office will evaluate any referral of a federal youthful offender to the LBST Wellness Court and will then decide whether or not federal criminal charges should be pursued in federal court. The decision to pursue federal charges rests within the sole discretion of the South Dakota U.S. Attorney’s Office.
Medical Malpractice Suit Against the Spokane Veterans Administration Medical Center DismissedRead the Press Release
06-15-17_civil_dismissal_order_1.pdf Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that, on June 14, 2017, Chief United States District Judge Thomas O. Rice entered an Order dismissing a medical malpractice lawsuit filed against the Veterans Administration by the children of a Navy veteran. See Order (attached hereto).According to information disclosed during the court proceedings, Steven Wright presented himself to the Mann-Grandstaff VA Medical Center (VAMC) in Spokane, Washington a week after falling at home and injuring his knee and ankle. VAMC Emergency Department doctors examined his injuries and performed imaging to rule out further injury or the presence of a blood clot. Once the results of the imaging were reviewed, Mr. Wright was discharged. Upon discharge, VAMC nurses offered, on three occasions, to transport him via wheelchair to his transportation outside the medical center. Mr. Wright, however, refused transport assistance and left the VAMC on his own. Shortly after leaving, Mr. Wright fell outside on the pavement and suffered minor scrapes to his head.
VAMC employees provided emergency assistance and brought Mr. Wright back into the Emergency Department for further evaluation / treatment. Mr. Wright was examined by a VA nurse, who was assessed by an independently-contracted-physician with expertise in emergency medicine. After conducting another examination and neurological assessment, and at his request, Mr. Wright was discharged and he left the VAMC with a friend. Tragically, Mr. Wright was found deceased the following morning at his home, purportedly because of an internal head injury.
Mr. Wright’s two adult children and his Estate (collectively Plaintiffs) sued the Veterans Administration and the independently-contracted-physician. Plaintiffs claimed that the emergency department physician should have ordered a CT scan of Mr. Wright’s head injury when he was brought back to the Emergency Department and should have admitted him for overnight observation. Plaintiffs also claimed that the VA nurses should have insisted upon Mr. Wright that he be taken outside in a wheelchair and should have advocated harder against the physician’s assessment for a CT scan and admission of Mr. Wright for observation.
In dismissing the case against the Veterans Administration, Chief Judge Rice found that Plaintiffs could not prove the VA nurses owed a duty to insist that Mr. Wright be transported and further found that even if such duty existed, the VA nurses did not breach that duty or any of the alleged duties. Under Washington law, a plaintiff in a medical malpractice suit must support any medical negligence claim with competent medical expert testimony establishing a duty, a breach, causation, and injury. Proof of these elements for a claim against the VA was absent in this case. Because the independently-contracted-physician was not a VA employee, Chief Judge Rice ruled that Plaintiffs could pursue their case against him, remanding that claim to state court.
This case was defended by Rudy J. Verschoor and Joseph P. Derrig, Assistant United States Attorneys in the Civil Division of the United States Attorney’s Office for the Eastern District of Washington.
Marrero Man Pleads Guilty to Firearm and Drug ChargesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that FERNANDO ORDONEZ, age 38, of Marrero, pled guilty yesterday to charges of conspiracy to distribute cocaine, heroin, and marijuana, and possessing of a firearm during a drug trafficking crime.
According to the court documents, prior to December 15, 2016, ORDONEZ, co-defendant HECTOR MATA, JR., and others conspired to possess cocaine, heroin, and marijuana. ORDONEZ also pled guilty to possessing a firearm during a drug trafficking crime: a .38 caliber Smith and Wesson Revolver.
ORDONEZ is facing a maximum of 20 years of imprisonment on the drug conspiracy count. On the weapons charge, ORDONEZ is facing a minimum of 5 years to a maximum of life imprisonment. U.S. District Judge Jay C. Zainey set sentenced for September 12, 2017.
Acting U.S. Attorney Evans praised the work of the U.S. Homeland Security Investigations and the Jefferson Parish Sheriff’s Office in investigating this case. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Manchester Resident Sentenced to 50 Months in Prison for Possession of A FirearmRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Joseph Davis, 31, of Manchester, New Hampshire, has been sentenced to serve 50 months in prison for unlawfully possessing a firearm.
At a trial in March of 2017, evidence showed that shortly after midnight on July 2, 2016, police officers in Hampton, New Hampshire saw Davis driving a car in an erratic manner on Ocean Boulevard. Before the police could intervene, Davis abruptly stopped the car in front of the north bathhouse on Ocean Boulevard. While detained by the police, Davis removed a large scarf from around his neck and placed it over the area between the driver’s seat and the center console.
After arresting Davis for driving under the influence, a police officer searched the car and found a HiPoint Model C9, 9mm, pistol tucked between the driver’s seat and the center console. The firearm was fully loaded. One bullet was in the chamber. The safety was in the off position.
Davis was prohibited from possessing firearms because he was a convicted felon. He previously was convicted of first-degree assault and possession of marijuana with the intent to distribute.
“Protecting public safety from violent criminals is a high priority of the United States Attorney’s Office,” said Acting U.S. Attorney Farley. “When criminals have guns in their possession, it threatens the safety of our citizens and our communities. I want to thank our law enforcement partners for their efforts in this case.”
The case was investigated by the Hampton Police Department, the Manchester Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Bob Kinsella prosecuted the case.
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Man Arrested for International Parental KidnappingRead the Press Release
ALEXANDRIA, Va. – A Maryland man made his initial appearance in federal court this afternoon on charges of international parental kidnapping.
Federal agents with the FBI and U.S. Customs and Border Protection (CBP) arrested Faical Chebbi, 45, of Accokeek, last night after he landed at Dulles International Airport. According to the court documents, in November 2011 Chebbi removed his two children, then ages 2 and 5, from the United States and took them to Tunisia in violation of the parental rights of the mother.
Chebbi faces a maximum penalty of three years in prison and a $250,000 fine, if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; and Casey Owen Durst, Director of CBP’s Baltimore Field Office, made the announcement. Assistant U.S. Attorney Patricia Haynes is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:11-mj-1015.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Magdiel Garcia and MAK Healthcare PC, d/b/a Multicare Plus Agree to Settlement for Stark Law ViolationsRead the Press Release
The United States announces that it has settled claims under the False Claims Act with Magdiel Garcia and MAK Healthcare PC d/b/a Multicare Plus for improperly billing Medicare in violation of the Stark Law prohibition against self-referrals.
The Stark Law, 42 U.S.C. § 1395nn, prevents a medical provider from referring patients to a medical facility in which the provider has a financial interest. Such referrals encourage over-utilization of medical services and drive up health care costs, and are prohibited.
The United States alleges that Magdiel Garcia and the medical providers who were employed by him improperly referred Medicare beneficiaries for services and equipment to MAK Healthcare PC, the Durable Medical Equipment (DME) company owned by Magdiel Garcia. The United States alleges that these improper self-referrals violated the Stark Law and resulted in false claims being submitted to the United States for payment.
The settlement covers claims submitted between January 2010 and December 23, 2013. Magdiel Garcia and MAK Healthcare PC have agreed to pay to the United States $225,000.00 to settle this matter.
This matter was handled by Department Health and Human Services Office of the Inspector General, including Attorney Katherine Matos and Investigator Mark Pascua and Assistant United States Attorney Susan Dein Bricklin.
Long Beach Man Sentenced to 6 Years in Prison for $5M Unemployment Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Andre Antonio Walters, 37, of Long Beach, today to six years and one month in prison and a $15,000 fine for four counts of mail fraud for his role in a significant unemployment benefit fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial in August 2016, Walters was a “manager” in a scheme to defraud the State of California of unemployment benefits from approximately 2008 to 2011. The scheme involved registering fictitious businesses with the state, listing “employees” as having earned wages at those fictitious businesses when in fact they had never worked there, and then filing for unemployment benefits on behalf of those “employees.” Walters recruited people to pose as these “employees,” managed their unemployment claims once filed, and split the resulting unemployment benefits checks that were mailed out of West Sacramento. According to the indictment, the scheme resulted in at least $5 million in fraudulently obtained unemployment benefits being disbursed by the state.
U.S. Attorney Talbert stated: “The funds set aside for unemployment insurance and disability insurance are intended to benefit Californians who have earned the right to receive those benefits. Fraud schemes that damage and deplete the fund undermine the benefit system and cheat those whom the funds are intended to protect. We will continue to work with our law enforcement partners to investigate and stop fraud schemes like this that harm California workers.”
“Andre Walters and Michael Taylor Jr., who was sentenced last week, created several fictitious employers and then used the names of approximately 500 nonexistent employees to collect more than $5 million in unemployment insurance benefits intended to provide relief to unemployed workers. We will continue to work with our state and federal law enforcement partners to preserve the integrity of all Department of Labor enforcement programs,” said Abel Salinas, Special Agent in Charge, Los Angeles Region, U.S. Department of Labor, Office of Inspector General.
“Today’s sentencing sends a loud, clear message: we will not tolerate those who engage in unemployment benefits fraud,” said Patrick W. Henning, Director of the Employment Development Department (EDD). “We’re proud to team up with the U.S. Attorney’s Office and the U.S. Department of Labor, Office of Inspector General to stop these criminals. We all share a common commitment: to ensure unemployment benefits go to the unemployed who need the assistance — not to thieves who believe they are above the law.”
This case was the product of an investigation by the U.S. Department of Labor, Office of Inspector General and the California Employment Development Department. Assistant U.S. Attorneys Jared C. Dolan and Matthew M. Yelovich prosecuted the case.
Walters is the sixth defendant to be sentenced for participating in this fraud scheme. Kenneth Kim Parks, 54, of Pomona, and of Long Beach, was sentenced to five years in prison. Gregory Bart Martin, 36, of Lakewood, was sentenced to 18 months of probation, Michael Ray Taylor Sr., 52, of Fontana, was sentenced to three years in prison; and Michael Ray Taylor Jr., 32, of El Monte, was sentenced to 15 months in prison.