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Thursday 15 June 2017
Boynton Beach Man Charged Federally for Sex Trafficking, Producing Child Pornography, and Enticing a MinorRead the Press Release
A Boynton Beach resident was detained today after being charged federally for sex trafficking, producing child pornography, and enticing a minor.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations, (ICE-HSI), and Jeffrey S. Katz, Chief of Police, Boynton Beach Police Department, (BBPD), made the announcement.
Marco Vinicio Orrego, 31, of Boynton Beach, Florida, was indicted on charges of sex trafficking a minor, in violation of Title 18, United States Code, Section 1591(a), production of child pornography, in violation of Title 18, United States Code, Section 2251(a), distribution of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), and enticing a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b) (Case No. 17-CR-XXX). If convicted, defendant Orrego faces a statutory maximum sentence of life in prison. Orrego is currently being detained pending trial.
According to court records, including the indictment, from May 2 through May 6, 2017, Orrego prostituted a sixteen-year-old girl using Backpage.com. He provided her transportation and a hotel for these illicit activities, taking all of the proceeds for himself. Additionally, Orrego, had sex with the minor during that same period created videos of the sexual abuse and texted the child pornography to another person.
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.
Mr. Greenberg commended the investigation efforts of ICE-HSI and the Boynton Beach Police Department. This case is being prosecuted by Assistant United States Attorney Gregory Schiller.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Boston Man Arrested and Charged with Robbing Bank in Downtown BostonRead the Press Release
BOSTON – A Boston man was charged in federal court in Boston yesterday with bank robbery.
Thomas W. Nee, 46, was charged with robbing the Randolph Savings Bank on School Street in Boston on May 22, 2017. He was detained following an initial appearance before U.S. District Court Magistrate Judge Jennifer C. Boal.
According to court documents, Nee entered the Randolph Savings Bank and handed a bank teller a note that read: THIS IS A ROBBERY GIVE ME ALL 100’s 50’s 20’s “NO DYE PACK.” The teller then gave Nee $5,010 in cash. The robbery was captured on bank surveillance video.
Nee was arrested on unrelated state charges outside of Fenway Park on June 12, 2017. It is alleged that during questioning with a federal agent, Nee confessed to the Randolph Savings Bank robbery as well as other unsolved bank robberies.
The charge provides for a sentence of no greater than 20 years in prison, three years of supervised released, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Office, made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boise Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – Jerrell Charles Keeley, 59, of Boise, pleaded guilty yesterday in United States District Court to possession of child pornography, Acting U.S. Attorney Rafael Gonzalez announced.
According to the plea agreement, in June of 2014, law enforcement in Ada County arrested Keeley for several criminal violations and booked him into the Ada County Jail. While incarcerated, Keeley called an acquaintance and requested he collect Keeley’s personal belongings from his residence. Keeley requested the acquaintance “throw away” some “inappropriate stuff” that was at the residence, and requested that he “drill holes” through his CDs, “erase” his zip drives and computer hard drives, and “throw them all.” Keeley’s acquaintance took Keeley’s personal belongings, including his computers, and stored them at a residence in Wilder, Idaho. The owner of that residence later observed images of child pornography in boxes containing Keeley’s belongings, and notified the Canyon County Sheriff’s Office and the Boise Police Department.
A detective with the Boise Police Department applied for a search warrant to search the electronic devices, which was signed by a State of Idaho Magistrate Judge. A computer forensics agent with Homeland Security Investigations examined the electronic devices and discovered at least 268 images and 10 videos containing child pornography, websites and search terms in the internet browser history indicative of child pornography, and identifying information showing Keeley owned and used the computers. The National Center for Missing and Exploited Children identified 122 images and 10 videos as depicting known child pornography victims.
Sentencing is set for August 31, 2017, before Chief U.S. District Judge B. Lynn Winmill. Possession of child pornography is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $5,000 special assessment. As part of his plea, Keeley also agreed to forfeit the computers and electronic storage devices used in the commission of the charged offense.
The case was investigated by the Boise Police Department, the Canyon County Sheriff’s Office, and Homeland Security Investigations, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Bala Cynwyd Man Sentenced to Prison for Hacking Computers of Public UtilitiesRead the Press Release
Adam Flanagan, 42, of Bala Cynwyd, PA was sentenced yesterday by the Hon. Paul Diamond to 12 months, 1 day in prison, based upon his plea of guilty to two counts of unauthorized access to a protected computer and thereby recklessly causing damage, announced Acting United States Attorney Louis D. Lappen. Flanagan was indicted on November 22, 2016, arrested without incident on November 23, 2016, and plead guilty on March 7, 2017.
Flanagan had worked as a radio frequency engineer for a company that made remote meter readers for utility systems. These readers would receive radio signals from individual meters and then process the data for billing. In these instances, the remote readers were installed to read water meters in municipalities spread throughout the eastern United States. After the company terminated Flanagan, he used his knowledge of how these readers operate to gain access to them through the Internet and to disable them. The result was that the municipal water authorities had to send people out to read the individual meters because the billing data was inaccurate. In addition, Flanagan’s former employer had to expend a large amount of time to conduct forensic examinations of the readers to determine what had happened and how to fix the problems.
The advisory Sentencing Guidelines provide for enhanced sentences for attacks on computers involved with critical infrastructure, such as water systems. In this case, Judge Diamond applied the enhancement for interfering with computers used to maintain or operate a critical infrastructure. (The Guidelines also provide a more serious enhancement for computer attacks that cause a substantial disruption of a critical infrastructure.)
The case was investigated by the FBI offices in Raleigh, NC and Philadelphia PA. The investigation was initially handled by the U.S. Attorney’s Office for the Eastern District of North Carolina and then transferred to the U.S. Attorney’s Office for the Eastern District of Pennsylvania, when the defendant was identified as the intruder. Assistant U.S. Attorney Michael L. Levy handled the case.
Avondale Man Charged with Illegal Reentry After DeportationRead the Press Release
Alberto Cruz-Gonzalez, of Avondale, 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 11, 2017, Cruz-Gonzalez, 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 November 17, 2015, November 22, 2015, March 6, 2016, April 4, 2016, and June 2, 2016.
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 Eric L. Gibson.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Alien Sentenced to 50 Months in Federal Prison After He Illegally Reentered the United StatesRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Martin Tejada-Galvan (48) to four years and two months in federal prison for offenses related to his illegal reentry into the United States after prior deportations. He was previously convicted in Texas for the same conduct in 2014. The sentence imposed this week includes a 3-year sentence for illegal reentry and a consecutive 14-month sentence for violating the terms of his supervised release imposed after his Texas conviction. Tejada-Galvan pleaded guilty on March 22, 2017.
According to court documents, Tejada-Galvan is a citizen of Mexico and has been deported four times, most recently in 2014. He reentered the United States illegally after his deportation and was found in Hillsborough County after he was arrested for driving under the influence (“DUI”). Officers conducted a traffic stop after observing Tejada-Galvan’s vehicle going off the roadway and almost hitting multiple signs. He later pleaded guilty to the DUI offense, which is his fourth such conviction. Following his prison sentence, Tejada-Galvan is subject to deportation.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
Albuquerque Felon Sentenced to Prison for Unlawfully Possessing a FirearmRead the Press Release
ALBUQUERQUE –Joshua Metts, 36, of Albuquerque, N.M., was sentenced today in federal court to 51 months in prison followed by three years of supervised release for unlawfully possessing a firearm.
Metts was charged with violating the Hobbs Act and federal firearms laws in an indictment filed in April 2015. In June 2016, a superseding indictment was filed that charged Metts with violating the Hobbs Act on Sept. 12, 2014, by robbing a commercial business in Albuquerque, and with being a felon in possession of a firearm on Oct. 2, 2014. According to the indictment, Metts was prohibited from possessing firearms or ammunition because of his prior felony convictions for aggravated fleeing of a law enforcement officer and trafficking a controlled substance.
Metts was arrested on the federal charges in June 2015, after he was transferred to federal custody from state custody where he was detained on related state charges. The state charges later were dismissed in favor of federal prosecution. In July 2016, the court severed the Hobbs Act charge from the felon in possession charge for the purposes of trial.
A federal jury found Metts guilty of being a felon in possession of a firearm after a two-day trial on Oct. 12, 2016. The evidence at trial established that APD officers arrested Metts on an outstanding state warrant on Oct. 2, 2014. After arresting Metts, the officers found a firearm in Metts’ vehicle; the firearm was wedged between the driver’s door and the driver’s seat. After Metts was convicted on the felon in possession charge, the U.S. Attorney’s Office moved to dismiss the Hobbs Act charge.
The case was investigated by the Albuquerque office of ATF and APD with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Samuel A. Hurtado and Paul Mysliwiec prosecuted the case.
Acting Manhattan U.S. Attorney Settles Race Discrimination Lawsuit Against New York CityRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the United States settled a federal civil rights lawsuit alleging that the CITY OF NEW YORK (the “City”), and specifically the NEW YORK CITY DEPARTMENT OF TRANSPORTATION (“NYCDOT”), violated Title VII of the Civil Rights Act of 1964 (“Title VII”) by engaging in a pattern or practice of racial discrimination and retaliation in its Fleet Services unit (“Fleet Services”). The consent decree was approved yesterday by U.S. District Judge John G. Koeltl.
Acting U.S. Attorney Joon H. Kim said: “For almost a decade, in clear violation of federal law, supervisors in New York City’s Department of Transportation engaged in a pattern and practice of discrimination against racial minorities. They tolerated the use of racial epithets, systematically excluded racial minorities from preferred assignments, and discriminated against minority candidates for promotions. When the discrimination was brought to the attention of the Department of Transportation’s management, they inexcusably failed to take proper corrective action, and retaliated against those brave enough to speak out. This type of workplace discrimination is unacceptable, plain and simple, not now, not ever. This settlement reflects the Office’s continued commitment to vigorously enforcing our nation’s civil rights laws.”
The Complaint, which was filed in Manhattan federal court on January 18, 2017, alleges that from at least October 2007 through May 2016, Fleet Services management engaged in a pattern or practice of racial discrimination in violation of Title VII. Fleet Services is a unit within NYCDOT that employs approximately 200 individuals in a range of trades, such as machinists, auto mechanics, electricians, blacksmiths, and engineers. Specifically, the Complaint alleges that:
As of October 2007, all personnel within Fleet Services reported to an individual (“Executive Director I”) who routinely and openly used racial epithets, such as “monkey,” “nigger,” and “gorilla” to describe African American employees. In addition to overseeing all of Fleet Services operations, Executive Director I also served as the Equal Employment Opportunity (“EEO”) counselor to whom complaints of discrimination were directed. One illustrative example of Executive Director I’s conduct involved an incident where, in response to an African American employee’s request for a cell phone, Executive Director I stated, “that nigger gets nothing.”
In October 2009, NYCDOT’s EEO Office (“NYCDOT EEO”) received a complaint alleging that Executive Director I had engaged in race discrimination. In the course of investigating the complaint, NYCDOT EEO interviewed numerous current NYCDOT employees who stated that Executive Director I had routinely used racial epithets to describe African Americans. Following its investigation, NYCDOT EEO recommended that Executive Director I be demoted, suspended, and removed from his responsibilities as a NYCDOT EEO counselor. In response, Executive Director I chose to voluntarily retire. However, the Deputy Commissioner overseeing Fleet Services then promoted the individual who had been Executive Director I’s second-in-command (“Executive Director II”), who was complicit in the discrimination, to serve as the Executive Director of Fleet Services.
Beginning in 2010, and throughout his tenure, Executive Director II routinely and systematically excluded minorities from preferred assignments and special projects. Executive Director II instead exclusively chose white candidates for the assignments that would provide the best opportunity for further advancement within Fleet Services. Furthermore, at some point in 2010, and then again in 2013, NYCDOT took steps to promote auto mechanics to supervisory positions. In spite of a large number of minority applicants, including minority applicants who were already serving in a supervisory capacity within NYCDOT, only one minority candidate was ever selected for promotion. Rather, NYCDOT management actively took steps that discriminated against minority applicants and promoted the candidacy of white applicants. These steps included imposing new pretextual requirements for promotion and removing from decision-making those supervisors who advocated for minority candidates.
Throughout all time periods relevant to the Complaint, individuals who spoke out against the discriminatory practices at Fleet Services were subjected to retaliatory conduct by Executive Director II. Such retaliatory conduct included Executive Director II threatening to take an African American Fleet Services employee outside to “kick” his “fucking ass” when the employee complained about the discrimination in the promotion selection process. Several other members of Fleet Services’ executive leadership witnessed that threat and yet failed to take any action to discipline Executive Director II.
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Under the consent decree approved by the Court, the City has agreed to offer monetary compensation to 14 individuals who the City agrees are entitled to relief. These individuals are entitled to back pay and compensatory damages awards ranging from $60,000 to in excess of $168,000. In addition, the City has agreed to pay the complainant who brought this case to the attention of the Equal Employment Opportunity Commission (the “Complainant”) a total of $150,000 in compensatory damages and attorney’s fees. The City will also offer the Complainant and two other minority candidates, all of whom were promoted by the City after the U.S. Attorney’s Office informed the City of its investigation, retroactive seniority benefits commensurate with having been promoted during the time period relevant to the Complaint. The consent decree also requires the City to take steps to ensure that it complies with Title VII in its future promotional selection processes.
As part of the consent decree, the City also stipulates to admissions of fact relating to the allegations in the Complaint. These admissions include that:
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During a 2009 investigation into allegations of racial discrimination, employees reported to the City that Executive Director I had used racial epithets to describe African American employees and had taken personnel actions that were motivated by racial animus.
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At the time of his retirement, Executive Director I had never been subject to any formal disciplinary sanctions imposed by the City.
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During the time he served as the Executive Director of Fleet Services, Executive Director II instructed the Complainant’s direct supervisor to reassign Complainant’s supervisory duties to a non-minority auto mechanic who had fewer years of experience as an auto mechanic than Complainant. Executive Director II gave this instruction over the expressed preference of Complainant’s direct supervisor.
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During Executive Director II’s tenure, non-minority applicants were selected for promotion over minority applicants, even when the minority applicants had more years of automotive experience and had been serving in a supervisory capacity without commensurate compensation or title.
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When management employees challenged Executive Director II’s promotional decisions, they were removed from the promotional decision-making process. Moreover, when a non-management employee accused Executive Director II of discriminating against racial minorities within Fleet Services, Executive Director II verbally threatened the employee, including a threat of physical violence. This verbal threat of physical violence was made in the presence of several other supervisory personnel within Fleet Services.
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Up until June 2, 2016, the date on which the City was informed that the U.S. Attorney’s Office had conducted an investigation regarding the allegations in the Complaint, Executive Director II continued to serve as the Executive Director of Fleet Services.
Mr. Kim thanked the Equal Employment Opportunity Commission for its initial investigation of the Complaint.
The case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorney Jessica Jean Hu is in charge of the case.
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Wednesday 14 June 2017
U.S. Attorney’s Office Reaches Agreements with Local Restaurants over ADA ComplianceRead the Press Release
BOSTON – Acting U.S. Attorney William D. Weinreb announced that 13 restaurants located in the Seaport and Fort Point neighborhoods of Boston have resolved accessibility issues discovered during compliance reviews.
“As places of public accommodation, restaurants must ensure that their construction and operation comply with all requirements of the American with Disabilities Act, and that they provide equal access for all people,” said Acting U.S. Attorney Weinreb. “These restaurants have quickly and cooperatively worked to address the ADA violations discovered during our investigation, which will enable all prospective patrons to dine at their establishments.”
Weinreb’s Civil Rights Unit began compliance reviews in June 2015 with site visits to 18 restaurants in Boston’s Seaport and Fort Point neighborhoods to determine whether the restaurants were operating in compliance with the Americans with Disabilities Act of 1990 (ADA). Seven restaurants - Atlantic Beer Garden, the Barking Crab, Barlow’s, Bastille Kitchen, the Daily Catch, Del Frisco’s, and Row 34 - have entered into voluntary compliance agreements to address issues of accessibility highlighted during the site visits. The U.S. Attorney’s Office closed the compliance reviews of these restaurants after determining that they made the agreed-upon changes and achieved compliance. Among the changes made by the restaurants were the installation of accessible tables in dining areas, modification of bar surfaces for wheelchair access, removal of architectural barriers, and installation of directional signage required by the ADA.
Six other restaurants were determined only to require relatively minor work in order to achieve compliance with the ADA. Those restaurants are Empire, Morton’s Steakhouse, Legal Harborside, Temazcal Tequila Cantina, Babbo Pizzeria, and Gather.
Federal law requires public accommodations, including restaurants, to provide individuals with disabilities equal access to facilities. The ADA authorizes the U.S. Department of Justice and the U.S. Attorney’s Office to undertake periodic reviews of covered establishments. For more information on the ADA, visit www.ADA.gov.
These matters were handled by Assistant U.S. Attorney Jennifer Serafyn, Chief of Weinreb’s Civil Rights Unit, Assistant U.S. Attorney Michelle Leung, and Special Assistant U.S. Attorney Gregory Dorchak.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Two Sex Offenders Sentenced to Combined 39 Years in Federal PrisonRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Johnny Wayne Callen, age 49, of Harrison, Arkansas, was sentenced today to 355 months in federal prison on one count of Enticing a Minor to Engage in Criminal Sexual Activity. Greg Chiello, age 47, of Harrison, Arkansas, was sentenced to 120 months in federal prison on one count of Accessing a Device with Intent to View Child Pornography. The Honorable Chief Judge P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, in June of 2016, the Harrison Police Department began investigating Callen for soliciting minors online to produce sexually explicit images. After obtaining a search warrant for Callen’s Facebook records, law enforcement determined that Callen specifically exchanged sexually explicit images with a 14-year old minor. In February of this year, Callen pleaded guilty in federal court. At sentencing, the Government presented the Court with proof that Callen had previously been convicted of Rape.
According to court records, in June of 2016, the Berryville Police Department received reports that Chiello was in possession of a cellular phone that contained images of minors being sexually abused. Chiello was subsequently located and arrested by the Berryville Police Department. An examination of his cellular devices revealed over 800 images of child pornography that were deleted from Chiello’s phone just prior to his arrest. Chiello pleaded guilty in February of this year. At sentencing, the Government presented the Court proof that Chiello had previously been convicted of a Child Pornography related offense.
These cases were investigated by the Harrison Police Department, the Berryville Police Department, and Homeland Security Investigations. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Two Men Who Defrauded Banks in Connection with USDA Export Financing Program Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two men involved in a multimillion dollar scheme to defraud banks participating in a USDA-backed export financing program were sentenced yesterday in New Haven federal court. Chief U.S. District Janet C. Hall sentenced BRETT C. LILLEMOE, 47, of Minneapolis, Minn., to 15 months of imprisonment and PABLO CALDERON, 61, Darien, Conn., to five months of imprisonment and five months of home confinement. Chief Judge Hall also ordered both men to serve a three-year term of supervised release, and to pay restitution in the amount of $18 million and forfeit more than $1.5 million of ill-gotten gains.
On November 9, 2016, a federal jury convicted LILLEMOE and CALDERON of conspiracy and fraud offenses. According to court documents, statements made in court and the evidence introduced during the trial, LILLEMOE and CALDERON submitted fraudulent documents to two United States banks in connection with a USDA loan guarantee program by which the USDA provides credit guarantees. The credit guarantees are part of the USDA Export Credit Guarantee Program (GSM-102), which is designed to encourage financing of commercial exports of U.S. agricultural products. The GSM-102 program guarantees credit extended by U.S. financial institutions to approved foreign banks. As part of the program, the Commodity Credit Corporation (CCC), which is an agency and instrumentality of the USDA, enters into payment guarantees (“credit guarantees”) with the goal of encouraging exports of U.S. agricultural products, including products of American farmers and American ranchers.
The credit guarantees are designed to encourage exports to buyers in foreign countries – mainly developing countries. The program operates in cases where credit is necessary to increase or maintain U.S. exports to a foreign market and where U.S. financial institutions might otherwise be unwilling to provide financing without the guarantee backed by the U.S. government. In providing the credit guarantee facility, the CCC seeks to expand market opportunities for U.S. agricultural exporters and assist long-term market development for U.S. agricultural commodities.
In connection with the GSM-102 program, a foreign importer that has contracted to buy U.S. agricultural products can apply for a letter of credit (“LOC”) from a foreign bank that has been approved by the USDA’s Foreign Agricultural Service (FAS). The foreign bank then issues a letter of credit in favor of the U.S. exporter. The U.S. exporter then, consistent with the requirements of the GSM-102 program, presents proper shipping documents to an approved U.S. financial institution, including a copy of an original bill of lading, certificate of origin, and evidence of export. The U.S. financial institution then provides funds to the U.S. exporter which, in exchange, assigns the rights to the proceeds payable under the letter of credit from the foreign bank to the U.S. financial institution in the same dollar-denominated amount, less any fees. If the foreign bank defaults on its payments to the U.S. financial institution, the U.S. financial institution may submit a claim to the USDA FAS under the guarantee for up to 98 percent of the payment amount owed at the time of the default.
Between September 2007 and January 2012, LILLEMOE, CALDERON and others defrauded various U.S. financial institutions, including Deutsche Bank A.G. and Colorado-based CoBank ACB, by presenting false and altered shipping documents, including altered bills of lading, in connection with securing funding on loans guaranteed by the GSM-102. As part of the scheme, LILLEMOE and CALDERON established multiple entities with separate names for the purpose of obtaining a greater share of the allocation of guarantees from the GSM-102 program, and used multiple bank accounts in the names of the various entities in order to further create the appearance that the entities were operating as separate and unrelated entities. The defendants then, in various ways, paid for, or otherwise acquired, bills of lading and other shipping documents for shipments of agricultural products that they did not physically ship and for which they did not participate in the physical movement of the products in any capacity.
LILLEMOE entered into agreements with foreign banks, including International Industrial Bank (IIB) in Russia, to provide them capital that would be made available to them from a U.S. financial institution through the use of the GSM-102 program. LILLEMOE subsequently obtained letters of credit from the foreign banks. LILLEMOE, CALDERON and others then altered copies of certain shipping documents, including bills of lading marked “Copy non negotiable,” by whiting out portions of the documents, stamping the word “original” on the documents, and adding shading on certain sections of the bills of lading. The defendants also prepared and executed documents termed “commercial invoices” purporting to represent sales of agricultural commodities between entities that they controlled, as well as between entities that they controlled and other entities.
The defendants then used these fraudulent documents to obtain millions of dollars from U.S. banks in connection with the GSM-102 program, and then provided the funds to the foreign banks in exchange for a percentage fee for themselves and their various entities. Although the foreign banks were contractually obligated to repay the funds to the U.S. by virtue of the letters of credit issued to the U.S. financial institutions, in a number of instances, the banks failed to do so. Nevertheless, LILLEMOE, CALDERON and their various entities retained more than $2.2 million in fees they had collected in connection with the GSM-102 transactions and in some instances, sent a portion of those fees to various financial backers in places such as Singapore.
The foreign banks defaulted on more than $25 million of the many loans guaranteed as a result of LILLEMOE and CALDERON’s scheme. Those losses, which were originally suffered by the victim U.S. banks, were ultimately reimbursed by the USDA because of the GSM-102 guarantees.
After a month-long trial, the jury found LILLEMOE and CALDERON guilty of one count of conspiracy to commit wire fraud and bank fraud, and LILLEMOE guilty of five counts and CALDERON guilty of one count of wire fraud.
This matter was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Department of Agriculture, Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Michael S. McGarry, John H. Durham and John T. Pierpont, Jr.
Twenty Defendants Charged in White Plains Federal Court with Racketeering, Narcotics, and Firearms Offenses in Connection with the Southside Gang in NewburghRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, David M. Hoovler, the Orange County District Attorney, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Ashan M. Benedict, the New York Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Carl E. DuBois, Orange County Sherriff, and Joseph Cortez, the Acting Chief of the City of Newburgh Police Department, today announced the unsealing of an Indictment charging a total of 20 defendants with various racketeering, narcotics, and firearms offenses in connection with a street gang known as “Southside,” in Newburgh, New York.
Acting U.S. Attorney Joon H. Kim stated: “The defendants, members of the Southside gang, allegedly pumped dangerous drugs into their community and controlled their Newburgh neighborhoods with violence. Some of the defendants allegedly protected their drug territory with shootings. Today’s arrests stand as a testament to cooperation among our federal, state, and local partners and our shared commitment to stamping out gang violence and the drug trade in Newburgh.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “As alleged, evidence in this case shows the gang members arrested today by the FBI Hudson Valley Safe Streets Task Force used shooting other people as a way to maintain their standing in the gang. These gangs show no respect for human lives, and they have a direct impact on our communities. Our goal as law enforcement is to take out the leaders of these gangs, and make sure they can't recruit more members.”
ATF New York Special Agent in Charge Ashan M. Benedict stated: “The Southside gang and its members are alleged to be a criminal organization which spread poison on the streets of Newburgh. Some members are also alleged to have used firearms, with reckless and dangerous abandon, to protect their criminal operations, and to have engaged in other acts of violence. This investigation highlights how criminal gangs peddle violence and fear along with their narcotics. Thanks to the outstanding cooperative efforts of ATF, FBI, NPD, the U.S. Attorney’s Office, and the District Attorney’s Office, the City of Newburgh is safer today than it was yesterday. Targeting and dismantling violent street gangs remains one of ATF’s top priorities, and today’s arrests should serve as a clear warning to the gangs and criminals that we in law enforcement know who you are, and that it is only a matter of time before you face the same fate as the defendants in this investigation.”
District Attorney David M. Hoovler stated: “Narcotics is the number one driver of all types of crimes, particularly those involving weapons and violence. It is only through the coordinated efforts of police and prosecutors, on both the federal and local level, that violent street gangs can be effectively eliminated. I am pleased that we were able to coordinate our efforts with the United States Attorney's Office on this operation, and look forward to working with our Federal and local law enforcement partners, as we continue to combat violent street gangs and the opioid epidemic.”
Orange County Sherriff Carl E. DuBois stated: “We are committed to continue the fight to clean up our communities and fight the war on drugs and gun violence with our partners in the Federal Bureau of Investigation.”
Acting Chief of the City of Newburgh Police Department Joseph Cortez stated: "Once again, the City of Newburgh Police has been able to work with our federal, state and county partners to investigate and arrest individuals responsible for extreme violence within our City. While leadership may change, this department’s commitment to keeping Newburgh safe is unwavering. Violence committed by a few that has the potential to hurt many cannot be tolerated. It takes the efforts of all of us, including the Safe Streets Task Force, the Orange County Sheriff’s Office, US Attorney’s Office and the Orange County District Attorney’s Office, to arrest and prosecute these individuals and continue our crime reduction efforts in Newburgh."
As alleged in the Indictment filed today in White Plains federal court[1]:
From at least 2014 through June 2017, SKYLAR DAVIS, a/k/a “S-Dot,” ARDAE HINES, a/k/a “Young Money,” a/k/a “YM,” DAVONTE HAWKINS, a/k/a “Dirty D,” MICHAEL SIMMONS, a/k/a “LoSo,” DEMETRICE MCLEAN, a/k/a “Blocks,” a/k/a “Demit,” CHRISTOPHER DAVIS, a/k/a “Whitebread” DIAMANTE FRAZIER, a/k/a “Bro God,” DITAVIOUS WILLIAMS, a/k/a “Glock Doc,” DONTE NUGENT, a/k/a “Wildman,” CALVIN LEMBHARD, a/k/a “Forty,” and PARADISE BRANCH, a/k/a “Bigga,” a/k/a “Petey,” were all members of the Southside gang, whose territory centered around the intersection of South Street and Chambers Street in an area of Newburgh known as the “Southside.” In order to fund the gang, protect its territory, and promote its standing, members of Southside engaged in, among other things, narcotics trafficking, robbery, and acts involving murder. Southside members sold heroin, crack cocaine, and marijuana in the gang’s territory, promoted their gang affiliation on social media sites such as Facebook, possessed firearms, and engaged in shootings as part of their gang membership.
One of those shootings took place on or about December 11, 2015, when SKYLAR DAVIS, a/k/a “S-Dot,” shot at a car in which members of a rival Newburgh gang, known as the Yellow Tape Money Gang, or “YTMG,” were driving. Those shots caused the car to crash, which injured those YTMG members in the vicinity of South Street and Liberty Street in the City of Newburgh, New York.
Several members of the Southside gang also participated in conspiracies to distribute narcotics in and around Newburgh. In particular, HINES, FRAZIER, WILLIAMS, DONTE NUGENT, and BRANCH participated in a conspiracy with WILLIAM FENELL, a/k/a “Mills,” DAVANTE NUGENT, a/k/a “Trap God,” a/k/a “Tay Tay,” WILFREDO RUIZ, a/k/a “Pop,” and ROBERT ZUCHOWSKI to distribute more than one kilogram of heroin and/or more than 280 grams of crack cocaine from at least in or about 2012 up to and including in or about June 2017. TEVON ADAMS, a/k/a “Cooj,” DWIGHT McCARDLE a/k/a “Ike,” TRISTAN HILGERS, SETH BLAIN, and KYLE BLAIN participated in the same conspiracy, agreeing to distribute more than 100 grams of heroin and/or more than 28 grams of crack cocaine. Meanwhile, HINES and CHRISTOPHER DAVIS participated in separate a conspiracy to distribute more than 280 grams of crack cocaine from at least in or about 2014 up to and including in or about June 2017.
Between in or about 2015 and in or about May 2017, MCLEAN, FRAZIER, and LEMBHARD also possessed firearms in furtherance of the Southside racketeering conspiracy in which they all participated and the narcotics conspiracy in which FRAZIER participated.
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Eighteen defendants were taken into federal custody this morning. The defendants will be presented in White Plains federal court today before U.S. Magistrate Judge Paul E. Davison. MICHAEL SIMMONS and DWIGHT MCARDLE remain at large. The case has been assigned to U.S. District Judge Cathy Seibel.
Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Kim praised the outstanding investigative work of the FBI, ATF, the Orange County Sheriff’s Department, and the City of Newburgh Police Department. Mr. Kim thanked the Orange County District Attorney’s Office for its invaluable ongoing assistance in the case. Mr. Kim also thanked the Town of Newburgh Police Department, the New York State Police, the Town of New Windsor Police Department, and the New York Department of Corrections and Community Supervision for their assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Maurene Comey, Jacqueline Kelly, and Allison Nichols are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Skylar Davis, et al., 17 Cr. 364
COUNT
CHARGES
DEFENDANT(S)
MAXIMUM PENALTIES
1
Racketeering Conspiracy
SKYLAR DAVIS,
a/k/a “S-Dot,”
ARDAE HINES,
a/k/a “Young Money,”
a/k/a “YM,”
DAVONTE HAWKINS,
a/k/a “Dirty D,”
MICHAEL SIMMONS,
a/k/a “LoSo,”
DEMETRICE MCLEAN,
a/k/a “Blocks,”
a/k/a “Demit,”
CHRISTOPHER DAVIS,
a/k/a “Whitebread”
DIAMANTE FRAZIER,
a/k/a “Bro God,”
DITAVIOUS WILLIAMS,
a/k/a “Glock Doc,”
DONTE NUGENT,
a/k/a “Wildman,”
CALVIN LEMBHARD,
a/k/a “Forty,” and
PARADISE BRANCH,
a/k/a “Bigga,”
a/k/a “Petey”
20 years in prison
2
Assault with a Deadly Weapon and Attempted Murder in Aid of Racketeering
SKYLAR DAVIS,
a/k/a “S-Dot”
20 years in prison
3
Narcotics Conspiracy
(Conspiracy to distribute and possess with intent to distribute 1 kilogram or more of heroin and/or 280 grams or more of crack cocaine.)
WILLIAM FENELL,
a/k/a “Mills,”
ARDAE HINES,
a/k/a “Young Money,”
a/k/a “YM,”
DIAMANTE FRAZIER,
a/k/a “Bro God,”
DITAVIOUS WILLIAMS,
a/k/a “Glock Doc,”
DONTE NUGENT,
a/k/a “Wildman,”
DAVANTE NUGENT,
a/k/a “Trap God,”
a/k/a “Tay Tay,”
PARADISE BRANCH,
a/k/a “Bigga,”
a/k/a “Petey”
WILFREDO RUIZ,
a/k/a “Pop,” and
ROBERT ZUCHOWSKI
Life in prison
Mandatory minimum:
10 years in prison
(Conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and/or 28 grams or more of crack cocaine.)
TEVON ADAMS,
a/k/a “Cooj,”
DWIGHT McCARDLE
a/k/a “Ike,”
TRISTAN HILGERS, SETH BLAIN, and
KYLE BLAIN
40 years in prison
Mandatory minimum:
5 years in prison
4
Narcotics Conspiracy
(Conspiracy to distribute and possess with intent to distribute 280 grams or more of crack cocaine.)
ARDAE HINES,
a/k/a “Young Money,”
a/k/a “YM,” and
CHRISTOPHER DAVIS,
a/k/a “Whitebread”
Life in prison
Mandatory minimum:
10 years in prison
5
Possession and discharge of a firearm in furtherance of a crime of violence
SKYLAR DAVIS,
a/k/a “S-Dot”
Life in prison
Mandatory minimum:
10 years in prison
6
Possession of a firearm in furtherance of a crime of violence or a drug trafficking crime
DEMETRICE MCLEAN,
a/k/a “Blocks,”
a/k/a “Demit,”
DIAMANTE FRAZIER,
a/k/a “Bro God,” and
CALVIN LEMBHARD,
a/k/a “Forty”
Life in prison
Mandatory minimum:
five years in prison, to be imposed consecutively to any other sentence
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Statement by Deputy Attorney General Rod Rosenstein on the Shooting at the Congressional Baseball Practice in Alexandria, VARead the Press Release
Deputy Attorney General Rod Rosenstein today released the following statement on the shooting at the congressional baseball practice in Alexandria, VA:
“This morning, Members of Congress, Senators, congressional staffers, and Capitol Police officers were targets of a senseless and cowardly attack during a practice for a bi-partisan, charity baseball game. Our thoughts are with the victims and their families. We pray for their swift recovery. The Department of Justice will provide all resources necessary for a thorough investigation."
“I commend the heroic officers of the Capitol Police and the Alexandria Police Department. Their willingness to risk their lives to keep us safe is humbling and inspiring."
South Georgia Farmers to Pay up to $675,000 to Resolve False Claims Act SuitRead the Press Release
SAVANNAH, GA: Bacon County (Georgia) farmers Julian Rigby, Jasper Allen and Benjamin Swain, as well as several entities owned by Rigby, agreed to pay up to $675,000 to resolve allegations that they violated and conspired to violate the False Claims Act. This settlement is the first False Claims Act recovery involving the United States Department of Agriculture’s crop insurance program in the history of the Southern District of Georgia.
This settlement resulted from an investigation initiated by the United States Department of Agriculture (“USDA”). On July 1, 2016, the United States filed an action in the United States District Court for the Southern District of Georgia captioned United States of America v. Julian Rigby, et al., 5:16-CV-53. In its complaint, the United States contended that Rigby, Allen, and Swain misrepresented and conspired to misrepresent the individuals who had an insured interest in an attempt to obtain more favorable coverage. The United States also alleged that, after filing a claim for losses they supposedly suffered, Rigby, Allen, and Swain submitted and conspired to submit false and fraudulent documents to the USDA to ensure payment.
Acting United States Attorney James D. Durham said, “The federal crop insurance program serves an important role supporting farmers who suffer crop losses due to natural disasters. This United States Attorney’s Office will root out anyone who seeks to manipulate the crop insurance program for personal gain.”
“Today’s announcement shows how, working alongside our partners in the Department of Justice, we will ensure the integrity of the crop insurance program for American taxpayers and producers alike,” said Heather Manzano, Acting Administrator for USDA’s Risk Management Agency.
The claims resolved by this settlement are allegations only; there has been no determination of liability. The case was investigated by USDA- Risk Management Agency Investigator Randy Upton, Special Agents Andrew Ridgeway and Robin Wilcox of USDA-Office of the Inspector General, and Law Clerk Alison Slagowitz of the United States Attorney’s Office, Southern District of Georgia. The United States was represented by Assistant United States Attorney J. Thomas Clarkson. For questions, please call the United States Attorney’s Office at (912) 201-2522.
South Arkansas Tax Fraud Scheme Draws over Eleven Years of Federal Imprisonment for ConspiratorsRead the Press Release
El Dorado, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Gregory A. Taylor, age 51 of Clanton, Alabama, was sentenced on Monday to 66 months in federal prison followed by three years of supervised release on one count of Conspiracy to Defraud the United States. Along with his co-defendants, Taylor was ordered to pay $1,274,163.84 in restitution. Taylor was one of eight defendants indicted in 2014 as part of an investigation into a tax fraud and identity theft scheme in El Dorado and Crossett. Taylor pled guilty in December 2015. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
According to court records, between 2009 and 2011 Taylor conspired with his co-defendants to defraud the United States by filing fraudulent income tax returns using the personal identifying information of others. During 2011, IRS-CI, U.S. Secret Service, and the El Dorado Police Department obtained evidence that Taylor and his co-defendants were involved in a large scale identity theft and tax refund scheme. As a part of the scheme, the co-defendants would use the names, social security numbers, and dates of birth, of numerous individuals to claim fraudulent tax refunds from the federal government. The evidence revealed that Taylor, a return preparer in Crossett, Arkansas, was working with and assisting his co-defendants with the filing of fraudulent tax returns to obtain false refunds. As part of his plea agreement, Taylor admitted that as a result of the conspiracy, he and his co-defendants fraudulently claimed refunds totaling $1,101,478. Other members of the conspiracy admitted to filing at least 665 fraudulent tax returns requesting more than $2,300,000.00 in refunds.
Taylor’s co-defendants Shawna D. Carey, Clarisse Carey, and Erica Browning were sentenced in January, 2016 to a total of 77 months imprisonment. Co-defendants Venus Ford, Sanjana Aaron, Whitney Charles, and Ecko Scott have pled guilty to their part of the conspiracy and await sentencing.
“Misusing his position of trust as a tax return preparer, Mr. Taylor knowingly used stolen identities to file false tax returns with the IRS. ” said Tracey D. Montaño, Special Agent in Charge, IRS Criminal Investigation. “The sentence handed down highlights the seriousness of the defendant’s conduct. We will remain vigilant in identifying and investigating those who seek to defraud the American taxpayers by stealing identities and filing false tax returns.”
The investigation was conducted by IRS Criminal Investigation, U.S. Secret Service, El Dorado Police Department, and the Crossett Police Department. Assistant United States Attorneys Jonathan Ross and Brice White prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Seven Individuals Indicted and Arrested for Child PornographyRead the Press Release
SAN JUAN, Puerto Rico – On June 1 and 8, 2017, a federal grand jury in the District of Puerto Rico returned multiple indictments against 7 defendants charged with child pornography offenses, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) is in charge of the investigations.
The defendants and the charges they are facing are as follows:
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Gabriel Cañas-Guerrero- possession of child pornography; videos and images depicting actual minors engaging in sexually explicit conduct.
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Christian Joel Lorenzo-Feliciano- distribution and possession of child pornography. According to the indictment, Lorenzo-Feliciano distributed, via a file-sharing program with access to the internet, visual depictions of minors, including prepubescent minors, engaging in sexually explicit conduct.
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Victor Gadiel Reyes-Rodríguez- possession of child pornography; images depicting actual minors, including prepubescent minors, engaging in sexually explicit conduct.
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Ángel Luis Sepúlveda-Ramos- advertising and transportation of child pornography. Sepúlveda-Ramos knowingly used the Ares peer-to-peer software program to share one or more video and image files depicting minors, including prepubescent minors, engaging in sexually explicit conduct. The defendant also transported such child pornography material. On or about December 13, 2016, Sepúlveda-Ramos knowingly possessed at least 8 images and 17 videos depicting minors, including prepubescent minors, engaging in sexually explicit conduct.
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Vidal Berríos-Dávila- receipt and distribution of child pornography. The defendant shared with the HSI Forensic Lab one video depicting an approximately 9 year-old female minor exposing her genitals and engaging in sexually explicit conduct with an adult male.
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Francisco Javier Alicea-Báez- receipt and distribution of child pornography. On September 25, 2016, the defendant shared with the HSI Forensic Lab one video of an approximate duration of 5 minutes, depicting a male toddler approximately three to five years of age exposing his genitals and masturbating an adult male while sitting on his lap.
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Martín Suárez-Imbert- advertising child pornography. The defendant logged into WhatsApp chat rooms entitled “Ok Man,” “Sin Reglas,” and “Chat Hot” to offer, send and receive videos and images of minors engaging in sexually explicit conduct.
All defendants are facing a Forfeiture Allegation, which includes all materials or property used, or intended to be used in the possession of child pornography, such as computers, cellular phones, external hard drives and memory sticks. If found guilty, the defendants face potential sentences of up to 20 years in prison for possession of child pornography, a mandatory minimum of 5 years up to a maximum of 20 years for receipt and distribution of child pornography, and mandatory minimum of 15 years up to a statutory maximum of 30 years for advertising child pornography.
“These defendants, who advertise, participate, distribute or exploit children to access child pornography work hard to evade law enforcement and disguise what they are doing,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “Their sole purpose is to view children hurting for their own sexual satisfaction. We want them to know that they will face serious consequences for their actions. Our office will continue to vigorously prosecute this type of criminal activity to the fullest extent of the law.”
“HSI is seeing a growing trend where children are being enticed, tricked and coerced online by adults to produce sexually explicit material of themselves,” said Orlando Baez, deputy special agent in charge of HSI San Juan. “While we will continue to prioritize the arrest of child predators, we cannot arrest our way out of this problem: education is the key to prevention. These indictments represent a strong coordinated strike – by Homeland Security and the U. S. Attorney’s Office – against child pornography and those who allegedly seek to harm our most vulnerable citizens, our young children. Clearly, this criminal activity has reached epidemic proportions and ICE HSI will continue to partner here and across jurisdictions to target those adults who egregiously violate the children of our communities.”
The cases are being prosecuted by Assistant U.S. Attorneys Elba Gorbea and Ginette Milanés, and Special Assistant U.S. Attorney Cristina Caraballo, under the supervision of AUSA Marshal Morgan, Chief of the Crimes Against Children and Human Trafficking Unit. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Russian Woman Sentenced for Marriage FraudRead the Press Release
ALBANY, NEW YORK – Eliza Akhmetshina, age 29, and a citizen of Russia residing in Albany, was sentenced today to 2 years of probation for conspiring to commit marriage fraud.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Senior United States District Judge Thomas J. McAvoy also ordered Akhmetshina to pay a $1,000 fine.
As part of her February 7, 2017 guilty plea, Akhmetshina admitted that in January 2012, when she was illegally present in the United States (having overstayed on a visitor’s visa), she agreed to pay U.S. citizen Ian Neary $10,000 to marry her so that she could obtain lawful immigration status in the United States. As part of the conspiracy, Akhmetshina falsely represented to U.S. officials that she and Neary lived together at an address in Albany County.
Neary pled guilty to conspiracy to commit marriage fraud, and on August 3, 2016 was sentenced by United States District Judge Mae A. D’Agostino to 2 years of probation.
This case was investigated by HSI and prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Rochester Day Care Worker Arrested, Charged with Production of Child Pornography and Online Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Mason, 37, of Rochester, NY, was arrested and charged in a criminal complaint with production of child pornography and online enticement of a minor. The charges carry a minimum sentence of 10 years in prison, a maximum of life and a $250,000 fine.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, a thirteen year-old child complained to a school guidance counselor that Mason, her mother’s boyfriend, asked her to send him nude photos of herself. The Rochester Police Department was notified who in turn contacted the FBI Child Exploitation Task Force for assistance.
The complaint states that investigators recovered online chats between the defendant and the child, which showed that Mason was soliciting the child to engage in sexual acts with him and attempting to get the child to produce sexually explicit photos and videos for him.
During the course of the investigation, federal agents learned that the defendant was affiliated with a Residential Day Care Center in Rochester.
Mason made an initial appearance before U.S. Magistrate Judge Marian Payson and is being held pending a detention hearing on June 16, 2017, at 11:00 a.m.
The criminal complaint is the culmination of an investigation by Officers of the Rochester Police Department, under the direction of Chief Michael Ciminelli; and Special Agents of the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Adam S Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Putnam County man sentenced to federal prison for role in large-scale methamphetamine conspiracyRead the Press Release
CHARLESTON, W.Va. – A Putnam County man was sentenced today to a year and a half in federal prison for a drug charge, announced United States Attorney Carol Casto. Jon Bowman, 58, of Poca, previously pleaded guilty to using the mail to facilitate a drug crime.
As part of a comprehensive investigation, agents from the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations intercepted several mail packages that contained methamphetamine, other drugs, or drug proceeds. Since January 2014, several pounds of methamphetamine were transported from California and Nevada into the Southern District of West Virginia via the United States mail or through individuals driving packages of drugs into the area. Bowman admitted that he took part in this conspiracy by working with others to ship and distribute methamphetamine. On March 4, 2014, law enforcement intercepted a package that Bowman had helped arrange to send to St. Albans containing approximately 245 grams of crystal methamphetamine concealed inside an object shaped like a turtle. Bowman further admitted that he intended to use and distribute the methamphetamine throughout the Kanawha County area.
Multiple defendants have been sentenced to federal prison as a result of this large-scale methamphetamine trafficking investigation. Joseph Cooper was sentenced to 14 years in federal prison for possession with intent to distribute methamphetamine. Benjamin Childers was sentenced to 10 years and a month in prison for conspiracy to distribute methamphetamine. Mark Cobb and Shayne Shamblen were both sentenced to seven years in prison for conspiracy to distribute methamphetamine. Mark Bays was sentenced to five years in prison for maintaining a residence for the purpose of distributing methamphetamine. Harold Parsons was sentenced to four years in prison for possession with intent to distribute methamphetamine. Morgan Light was sentenced to four years in prison for conspiracy to distribute methamphetamine.
Other individuals involved in the drug trafficking organization have entered guilty pleas and are awaiting sentencing. David Huffman pleaded guilty to conspiracy to distribute methamphetamine and faces at least five and up to 40 years in prison when he is sentenced on June 21, 2017. Gregory Crum and Diana Salazar Gamboa both pleaded guilty to conspiracy to distribute methamphetamine. Crum faces a minimum of 10 years and up to life in federal prison. Gamboa faces at least five and up to 40 years in federal prison. Beth Hammonds pleaded guilty to using the mail to facilitate a drug crime and faces up to five years in federal prison for her role in the conspiracy. Crum, Gamboa, and Hammonds are all scheduled to be sentenced on August 3, 2017.
Assistant United States Attorney Haley Bunn is responsible for these prosecutions. United States District Judge John T. Copenhaver, Jr., is presiding over these cases.
These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Providence Resident Pleads Guilty to Firearm Charge, Violating Supervised ReleaseRead the Press Release
PROVIDENCE – Brandon M. Crumady, 30, of Providence, pleaded guilty in federal court in Providence today to being a felon in possession of a firearm, and he admitted to violating the terms of federal supervised release on a previous conviction on a firearm charge, announced Acting United States Attorney Stephen G. Dambruch and Providence Police Chief Colonel Hugh T. Clements, Jr.
According to information presented to the court, on May 9, 2016, a Providence Police officer patrolling the area around a nightclub preparing to close for the evening came upon an occupied vehicle parked in a nearby parking lot. The officer illuminated the interior of the vehicle with his cruiser alley light. As he did, he saw the front seat passenger reach into his waistband, remove a firearm and toss it onto the back seat.
According to information presented to the court, the officer recognized Brandon Crumady as being the passenger in the vehicle, and the officer was aware that he had previously been convicted of a firearm offense. The officer approached the vehicle with his service weapon drawn, and kept watch of the firearm and the occupants of the vehicle until additional officers arrived. Crumady was arrested and a loaded semi-automatic firearm was recovered from the back seat.
According to court records, Crumady was previously convicted in Rhode Island state court for carrying a pistol without a license and felony possession of controlled substance offenses. Most recently, on May 23, 2012, Crumady was convicted in federal court for being a felon in possession of a firearm. On August 17, 2012, Crumady received a sentence of 37 imprisonment followed by 36 months of supervised release. He was on federal supervised release when he was arrested on May 23, 2012.
Brandon Crumady is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on September 1, 2017.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The case was investigated by the Providence Police Department, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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Pittsburgh Man Indicted for Distributing Drug Resulting in Death, Firearms ViolationsRead the Press Release
PITTSBURGH – Deon Blair has been indicted by a federal grand jury in Pittsburgh for distributing heroin, butyryl fentanyl, and fentanyl resulting in serious bodily injury and death, and for committing related firearms crimes, Acting United States Attorney Soo C. Song announced today.
The indictment charges Blair, age 24, who resided in Pittsburgh, with committing the following crimes in February 2017: (1) distributing a mixture containing butyryl fentanyl and fentanyl resulting in death; (2) conspiring to distribute and distributing heroin, butyryl fentanyl, and fentanyl; (3) possessing a firearm in furtherance of a drug trafficking crime; and (4) possessing a firearm after 11 prior felony convictions for heroin and cocaine trafficking and firearms crimes in four prior prosecutions.
The law provides for a maximum total sentence of at least 25 years and up to life in prison and a fine of up to $4,500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Pittsburgh Bureau of Police, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania Board of Probation and Parole, and the Allegheny County Medical Examiner’s Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced for Distributing Heroin to Rochester Drug DealersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jerome Randolph, 33, of Philadelphia, PA, who was convicted of conspiracy to distribute heroin, was sentenced to 195 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that in early 2016, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the Rochester Police Department (RPD) conducted a multi‐agency investigation into a significant Philadelphia, PA based heroin trafficking organization distributing heroin to a group of individuals located in Rochester, NY. The investigation included the use of court-approved wiretaps on multiple phones used by the various defendants. The wiretap investigation revealed that Jerome Randolph headed the Philadelphia group, and was responsible for overseeing the trafficking of heroin from Philadelphia to Rochester. The defendant relied principally on two named codefendants, David Haynes and Edwin Rodriguez, who were responsible for the transportation of heroin and drug proceeds between the two cities. Haynes and Rodriguez were convicted and sentenced to 180 and 188 months in prison respectively.
Once the heroin arrived in Rochester, it was distributed by members of the Rochester organization. In addition to the three Philadelphia conspirators, 11 Rochester area individuals were arrested in March 2016.
During the execution of search warrants following the arrests of 14 defendants, law enforcement officers seized 22,713 decks of heroin, $93,399.00 in cash and nine firearms. The heroin seizures made in this case alone well exceeded the total amount of heroin seizures made in all of 2015 in the City of Rochester. Law enforcement officers estimate the Rochester organization was distributing in excess of $50,000 of heroin per week.
At this time, 11 of the 14 defendants arrested in this case have been convicted. The three remaining defendants, Damon Montgomery, Johnny Balkman and DeShawnra Williams, are scheduled to go to trial in the fall of 2017. The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Federal Bureau of Investigation, under the direction Special Agent-in-Charge Adam S. Cohen; U.S. Customs and Border Protection, Air and Marine Unit, under the direction of Brian Manaher, Director, Marine Operations; Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction Thomas Brophy, Buffalo Field Office Director; U.S. Border Border Patrol; the Rochester Police Department, under the direction of Chief Michael Ciminelli; the Monroe County District Attorney’s Office, under the direction of Sandra Doorley; the Greater Rochester Area Narcotics Enforcement Team (GRANET); and the New York State Department of Corrections and Community Supervision in coordination with the Philadelphia ATF and DEA Resident Offices and the Pennsylvania State Police.
Penn Hills Man Charged with Distribution of Fentanyl Resulting in DeathRead the Press Release
PITTSBURGH - One resident of Penn Hills, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Christopher Hill, age 28.
According to the indictment presented to the court, on July 21, 2016, Hill possessed with intent to distribute and distributed fentanyl that caused the serious bodily injury and death of a person who used that fentanyl.
The law provides for a maximum total sentence of up to life in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Paducah Residents Guilty of Possession with Intent to Distribute MethamphetamineRead the Press Release
PADUCAH, Ky. – Two McCracken County, Kentucky residents pled guilty in United States District Court yesterday, before Senior Judge Thomas B. Russell, to a single charge, in a superseding information, of possession with intent to distribute methamphetamine announced United States Attorney John E. Kuhn, Jr.
According to the plea agreement, Ashley P. Cavitt, 26, and John A. Coreau, 29, both of Paducah, admitted in separate plea agreements that on or about November 3, 2016, in McCracken County and elsewhere, the defendants conspired with one another, and others, to distribute 50 grams or more of methamphetamine. The methamphetamine recovered by law enforcement from the Defendants was sent to the Drug Enforcement Agency’s North Central Laboratory in Chicago, Illinois, which revealed that the drugs confiscated from Cavitt and Coreau contained 282.4 grams of methamphetamine with all 282.4 grams being actual methamphetamine.
Cavitt and Coreau remain in federal custody awaiting sentencing on September 27th, in Paducah at 11:00am CST, before Senior Judge Russell.
Both plea agreements for Cavitt and Coreau call for the United States to recommend a sentence of 120 months in prison, which is the mandatory minimum term of imprisonment required by law.
This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the Paducah Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Ohio Man Sentenced to 9 Years in Federal Prison for Burglarizing Bethel Park PharmacyRead the Press Release
PITTSBURGH – A former resident of Columbus, Ohio, has been sentenced in federal court to 108 months in prison, to be followed by three years of supervised release, on his convictions for burglary of a pharmacy and conspiracy to possess with intent to distribute a Schedule II controlled substance, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence yesterday on Dale E. Foughty, 38.
According to information presented to the court, on September 4, 2015, Foughty used a crowbar to break into the Spartan Pharmacy in Bethel Park, Pennsylvania, and proceeded to steal more than 6,000 Schedule II pills from the pharmacy.
Assistant United States Attorney Timothy M. Lanni prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Drug Enforcement Administration and the Bethel Park Police Department for the investigation leading to the successful prosecution of Foughty.
Office Manager/Medical Biller in Devine, TX, Sentenced to 17 Years Imprisonment for $3.5 Million Health Care Fraud SchemeRead the Press Release
In Del Rio late yesterday afternoon, a federal judge sentenced 46-year-old DTS Medical Supply Company (DTS) Office Manager/Medical Biller Kathleen Kelly-Tuorila to 17 years in federal prison for her role in an estimated $3.5 million Health Care Fraud scheme announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Texas Attorney General Ken Paxton.
In addition to the prison term handed down, United States District Judge Alia Moses ordered Kelly-Tuorila to pay $3,269,300.11 in restitution and be placed on supervised release for a period of three years after completing his prison term.
“The prison terms handed down in this case against three defendants total more than 51 years. These sentences reflect the seriousness of the defendants’ actions and our commitment to hold accountable anyone who would rob, steal, or illegally take without just cause Medicaid and Medicare funds,” stated United States Attorney Richard L. Durbin, Jr.
On June 28, 2016, a federal jury convicted Kelly-Tuorila and DTS Medical Supply owner, 55-year-old Daniel Thomason Smith, of one count of conspiracy to commit Health Care Fraud, one count of aiding and abetting Health Care Fraud, eleven counts of aiding and abetting aggravated identity theft and eight counts of aiding and abetting false statements related to a Health Care matter.
Both Medicare and Medicaid provide qualified beneficiaries with financial remuneration for the purchase of prescribed and necessary medical equipment. Such medical equipment would include powered wheelchairs, powered scooters and accessories related to those two devices. Medicare and Medicaid set a rate of compensation for each of these devices and the rate of compensation differed between devices and was to be based on the type of device that was prescribed for the beneficiary and delivered to the beneficiary.
Evidence presented during trial revealed that between May 2006 and January 2010, the defendants conspired to submit numerous false and fraudulent benefit claims to Medicaid and Medicare seeking compensation for powered wheelchairs. Smith employed Robin Renee Haigler, a third defendant in this case, on a commission basis to recruit customers primarily in the Waco area. Kelly-Tuorila used the collected customer information from Haigler to generate and submit fraudulent claims for reimbursement to Medicaid and Medicare for powered wheelchairs. According to court testimony regarding the aggravated identity counts, names of physicians were used to support claims for reimbursement when the named physician never prescribed a powered wheelchair for the customer and, in some instances, did not even know the customer and had never had them as a patient. Evidence also revealed that even though DTS billed for powered wheelchairs, they delivered less-expensive powered scooters to customers, which resulted in a larger payment from Medicaid/Medicare and a larger percentage of profit for DTS and Smith.
“Those who commit Health Care Fraud often harm the most vulnerable in our society by misappropriating limited healthcare dollars intended for the care of the elderly, children and disabled,” said Special Agent in Charge Christopher Combs. “This case demonstrates the FBI's commitment to work with our partners and the public to stop fraud and ensure that limited healthcare funding is used to help those who need it, and not line the pockets of criminals.”
Defendants Smith and Kelly-Tuorila have remained in federal custody since the jury verdict in June 2016. On February 23, 2017, Smith was sentenced to 324 months in federal prison. Haigler, age 60 of Waco, TX, pleaded guilty to the conspiracy charge on August 17, 2015. She was sentenced on November 7, 2016, to 87 months of federal imprisonment. Judge Moses ordered all three to pay—joint and severally—a total of $3,269,300.11 restitution in this case.
“Prosecution of these crimes helps deter fraud and holds health care providers accountable when they steal from the American taxpayers,” Attorney General Paxton said. “I commend the hard work of all involved on this case. My office will continue to go after criminals who attempt to steal from programs that help vulnerable Texans.”
Agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit conducted this investigation. Assistant United States Attorney Greg Surovic and Special Assistant United States Attorney Rex Beasley prosecuted this case on behalf of the Government.
Nevada Business Owner Convicted of Evading Payment of Employment Taxes and PenaltiesRead the Press Release
A Las Vegas, Nevada business owner was convicted yesterday by a federal jury of tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
According to the evidence presented at trial, Maria Larkin, 55, owned and operated Five Star Home Health Care Inc. (Five Star). Larkin was responsible for collecting, accounting for, and paying over income, social security, and Medicare tax withheld from her employees’ wages. From 2004 through 2009, Larkin did not pay over the employment taxes she withheld. The Internal Revenue Service (IRS) assessed trust fund recovery penalties (TFRPs) against Larkin for these years, which made her personally liable for the unpaid employment taxes.
Larkin concealed her assets and income to evade paying the TFRPs and to obstruct the IRS’s efforts to collect the outstanding taxes. She lied to the IRS regarding her ability to pay, changed the name of her business, placed her business in the name of a nominee, had her employees cash checks for her and bought a home in the name of a nominee. In total, Larkin evaded more than $1.6 million in taxes.
Sentencing is scheduled for Sept. 13, 2017. Larkin 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 and Acting U.S. Attorney Myhre commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John Mulcahy of the Tax Division and Assistant U.S. Attorney Alexandra Michael, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nevada Business Owner Convicted of Evading Payment of Employment Taxes and PenaltiesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas, Nevada business owner was convicted on Tuesday by a federal jury of tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
According to the evidence presented at trial, Maria Larkin, 55, owned and operated Five Star Home Health Care Inc. (Five Star). Larkin was responsible for collecting, accounting for, and paying over income, social security, and Medicare tax withheld from her employees’ wages. From 2004 through 2009, Larkin did not pay over the employment taxes she withheld. The Internal Revenue Service (IRS) assessed trust fund recovery penalties (TFRPs) against Larkin for these years, which made her personally liable for the unpaid employment taxes.
Larkin concealed her assets and income to evade paying the TFRPs and to obstruct the IRS’s efforts to collect the outstanding taxes. She lied to the IRS regarding her ability to pay, changed the name of her business, placed her business in the name of a nominee, had her employees cash checks for her and bought a home in the name of a nominee. In total, Larkin evaded more than $1.6 million in taxes.
Sentencing is scheduled for Sept. 13, 2017. Larkin 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 and Acting U.S. Attorney Myhre commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney John Mulcahy of the Tax Division and Assistant U.S. Attorney Alexandra Michael, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Navajo Man from Farmington Pleads Guilty to Federal Voluntary Manslaughter and Firearms ChargesRead the Press Release
ALBUQUERQUE – Sage Andrew Yazzie, 21, an enrolled member of the Navajo Nation who resides in Farmington, N.M., pled guilty today in federal court in Albuquerque, N.M., to voluntary manslaughter and firearms charges. Under the terms of his plea agreement, Yazzie will be sentenced within the range of 12 to 15 years in prison followed by a term of supervised release to be determined by the court.
Yazzie was arrested on March 10, 2016, on a criminal complaint charging him with killing a Navajo man on the Navajo Indian Reservation in San Juan County, N.M., on Feb. 23, 2016. According to the criminal complaint, Yazzie entered a residence and shot the victim in the head with a firearm.
Yazzie was indicted on March 23, 2016, and charged with first degree murder and using and carrying a firearm in relation to a crime of violence. According to the indictment, Yazzie committed the offenses on Feb. 23, 2016, in San Juan County.
During today’s proceedings, Yazzie pled guilty to a felony information charging him with voluntary manslaughter and discharging a firearm during a crime of violence. In entering the guilty plea, Yazzie admitted that on Feb. 23, 2016, he entered a residence in Huerfano, N.M., and killed the victim during a sudden quarrel by shooting the victim with a handgun. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI, the Navajo Nation Division of Public Safety and the Farmington Police Department and is being prosecuted by Assistant U.S. Attorneys Raquel Ruiz-Velez and Elaine Y. Ramirez.
Mother and Daughter Co-Owners of Seven Miami, Florida-Area Home Health Agencies Each Sentenced to over 10 Years in Prison for Roles in $20 Million Home Health Care Fraud SchemesRead the Press Release
A mother and daughter who secretly co-owned and operated seven home health care agencies in the Miami, Florida area were each sentenced to over 10 years in prison today for their roles in a $20 million Medicare fraud conspiracy that involved paying illegal health care kickbacks to patient recruiters and medical professionals.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Brian Swain of the U.S. Secret Service’s Miami Regional Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Mildrey Gonzalez, 61, and her daughter, Milka Alfaro, 39, both of Miami, were sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida to 135 and 151 months in prison, respectively, for their roles in the scheme. The defendants were further ordered to pay approximately $22,900,000 in joint and several restitution. Gonzalez and Alfaro each pleaded guilty on March 2, having been charged in a July 2016 superseding indictment. Gonzalez pleaded guilty to one count of conspiracy to commit health care fraud and one count of health care fraud, while Alfaro pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud.
Alfaro and Gonzalez previously admitted that they secretly co-owned and operated seven home health agencies in the Miami area, yet failed to disclose their ownership interests in any of these agencies to Medicare, as required by relevant rules and regulations. In addition, Alfaro and Gonzalez admitted to paying illegal health care kickbacks to a network of patient recruiters in order to bring Medicare beneficiaries into the scheme, to paying bribes and kickbacks to medical professionals in return for providing home health referrals, and to directing co-conspirators to open shell corporations, into which millions of dollars’ worth of fraud proceeds were funneled. Furthermore, Alfaro and Gonzalez each admitted to perjuring themselves at a hearing before U.S. Magistrate Judge Jonathan Goodman of the Southern District of Florida, to attempting to influence the testimony of potential trial witnesses, and to submitting false affidavits concerning their assets to the court.
This case was investigated by the FBI, the U.S. Secret Service and HHS-OIG. Former Fraud Section Trial Attorney and current Southern District of Florida Assistant U.S. Attorney Lisa H. Miller and Fraud Section Trial Attorney L. Rush Atkinson prosecuted the case. Assistant U.S. Attorneys Evelyn B. Sheehan and Alison W. Lehr also provided assistance regarding asset forfeiture issues in this case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Midland Man Sentenced to Federal Prison for Assaulting Prison Guard, Escape and Being a Convicted Felon in Possession of a FirearmRead the Press Release
In Midland today, 38-year-old Iry James Williams of Midland was sentenced to a total of 260 months in federal prison for assaulting an Ector County Correctional Center guard, escape from a half-way house, and being a convicted felon in possession of a firearm announced United States Attorney Richard L. Durbin, Jr., U.S. Marshal David Sligh and Midland Police Chief Price Robinson.
United States District Judge Robert Junell sentenced Williams to consecutive terms of 100 months incarceration for assaulting a public servant; 100 months incarceration for escape; and, 60 months incarceration for felon in possession of a firearm. Judge Junell also ordered that Williams be placed on supervised release for a period of three years after completing his 260-month federal prison term.
According to court records, on February 28, 2016, Williams signed himself out on a social pass from a residential re-entry center in Midland where he was serving the remainder of a 90-month federal prison term for felon in possession of a firearm. Williams did not return to the center as required. According to the Midland Police Department, Williams was the prime suspect in Midland convenience store robbery that evening. Authorities recovered Williams’ wallet and a .380 pistol inside his vehicle outside the convenience store.
On March 6, 2016. MPD officers and deputy U.S. Marshals arrested Williams. He has remained in custody since.
On July 11, 2016, a federal jury convicted him of felon in possession of the .380 pistol. That same day, Williams pleaded guilty to the escape charge. On July 27, 2016, while incarcerated awaiting sentencing on the escape and firearm charges, Williams assaulted an Ector County Corrections Center guard causing bodily injury. Williams pleaded guilty to the assault charge on March 15, 2017.
The U.S. Marshals Service and the Midland Police Department conducted this investigation. Assistant United States Attorney Brandi Young prosecuted this case on behalf of the Government.
Meriden Man Charged with Trafficking Cocaine and HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that LUIS MARTELL, also known as “Fat Boy,” 34, of Meriden, was arrested yesterday on a federal criminal complaint charging him with trafficking cocaine and heroin.
MARTELL appeared yesterday before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport and was ordered detained.
As alleged in court documents, in late October 2016, law enforcement intercepted two parcels containing suspected narcotics that had been mailed from southern California to two different addresses in Meriden. On November 2, 2016, a court-authorized search of the parcels revealed a total of approximately 6.5 kilograms of cocaine and approximately 1.06 kilograms of heroin.
On November 2, 2016, Jose Davila, also known as “Flaco,” visited a post office in Meriden to inquire about one of the parcels. On November 3, 2016, law enforcement made a controlled delivery of the second parcel to its intended address. The residents of the house accepted the parcel on behalf of Justin Doherty and contacted Doherty on his cellphone. Doherty then arrived at the house in a car driven by Davila. Doherty and Davila were arrested at that time.
It is alleged that MARTELL coordinated the shipment of the parcels containing cocaine and heroin, and paid Doherty and Davila to accept the parcels on his behalf.
The complaint charges MARTELL with conspiracy to possess with intent to distribute five or more kilograms of cocaine and one or more kilogram of heroin, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
On January 20, 2017, a grand jury in Bridgeport returned a three-count indictment charging Davila, 32, and Doherty, 24, both of Meriden, with related offenses. They are awaiting trial.
This matter is being investigated by the Drug Enforcement Administration, U.S. Postal Inspection Service and Meriden Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Maverick County Man Sentenced for Federal Violations in East TexasRead the Press Release
BEAUMONT, Texas - A 23-year-old Eagle Pass, Texas man has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Raul Alfonso Moreno-Bres pleaded guilty on Jan. 25, 2017, to interstate travel in aid of racketeering enterprise and was sentenced to 18 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Oct. 12, 2016, law enforcement officers conducted a traffic stop on a vehicle traveling westbound on Interstate-10 in Orange County near mile marker 873. During the traffic stop, deputies learned the vehicle was owned by a passenger, Moreno Bres. Moreno Bres said he was a college student and that he had been in Atlanta on vacation. Moreno Bres gave consent to search the vehicle, during which deputies located $121,903 in currency. Afterwards, Moreno Bres said he had gone to Atlanta on orders from an unspecified Mexican drug cartel to pick up the money and deliver it to Mexico and that he knew the money was proceeds of unlawful activity.
This case was investigated by the DHS/HSI/ICE and Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Christopher T. Rapp.
Massachusetts Man Sentenced to 78 Months in Prison for Firearms SchemeRead the Press Release
Concord, N.H.— Acting United States Attorney John J. Farley announced that Matthew Bergeron, formerly of Fitchburg, Massachusetts was sentenced to 78 months in prison for his role in the straw purchase of three firearms in New Hampshire.
According to court records and statements in court, Bergeron arranged to have two co-conspirators purchase firearms on his behalf in June and July 2016 from a federally licensed firearms dealer in Hooksett, New Hampshire. In connection with each firearm purchase, the co-conspirators were required to complete an ATF Form 4473 where they falsely stated that they were purchasing the firearms for themselves when they were actually purchasing the weapons for Bergeron. Bergeron also had each co-defendant purchase ammunition and extended clip magazines on his behalf. Shortly after the purchases, Bergeron took possession of the firearms, magazines and ammunition. Bergeron was a previously convicted felon and a resident of Massachusetts, and could not legally purchase the firearms for himself in New Hampshire.
Bergeron, who pleaded guilty to two conspiracy charges on March 2, 2017, will be placed on supervised release for three years after he completes his prison sentence.
Bergeron’s co-conspirators, Rashawn Dunn, 30, and Jessica Fithian, 33, both of Manchester, also have pleaded guilty and are awaiting sentencing.
“The United States Attorney’s Office is committed to working with our law enforcement partners in order to prevent violence and to keep firearms out of the hands of criminals.” Acting U.S. Attorney Farley said. “I commend the work of the law enforcement agencies in this case. Their hard work helps to keep our community safe.”
This matter was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Manchester Police Department. The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Man Sentenced to 60 Months in Prison for Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI- Reinaldo Morone, 44, of St. Thomas, was sentenced today to 60 months in prison for conspiracy to possess with the intent to distribute cocaine, Acting United States Attorney, Joycelyn Hewlett announced. District Court Judge Curtis V. Gomez also sentenced Morone to serve five years of supervised release, pay a $100 special assessment, and perform 400 hours of community service.
On December 12, 2016, Morone pleaded guilty to conspiracy to possess with the intent to distribute cocaine. According to the plea agreement, on October 20, 2016, Morone attempted to sell to an individual approximately four kilograms of a white powdery substance that tested positive for cocaine
The case was investigated by the U.S. Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Man Sentenced to 10 Months in Prison for Possession of a Firearm by a Person Convicted of a Crime of Domestic ViolenceRead the Press Release
St. Thomas, USVI- Walid John, 37, of St. Thomas, was sentenced today to 10 months in prison for possession of a firearm by a person convicted of a crime of domestic violence, Acting United States Attorney, Joycelyn Hewlett announced. District Court Judge Curtis V. Gomez also sentenced John to serve three years of supervised release, pay a $100 special assessment, and perform 400 hours of community service.
On December 12, 2016, John pleaded guilty to possession of a firearm by a person convicted of a crime of domestic violence. According to the plea agreement, on October 20, 2016, John admitted to being in possession of a firearm and that he had been previously convicted of a domestic violence offense in 2012.
The case was investigated by the U.S. Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Maine Man Pleads Guilty to Making False Statements During Purchase of a FirearmRead the Press Release
BOSTON - A Maine man pleaded guilty yesterday in federal court in Boston to conspiracy to make false statements during the purchase of a firearm.
Peter Aloisio, 61, of Dexter, Maine, pleaded guilty before U.S. District Court Senior Judge Mark L. Wolf who scheduled sentencing for Sept. 7, 2017.
In December 2015, Aloisio conspired with a convicted felon living in Haverhill, Mass., to purchase a Taurus .45 caliber handgun and a box of .45 caliber ammunition from a firearms store in Plaistow, N.H. Aloisio falsely stated that he was the “actual” buyer of the firearm and was not purchasing it on behalf of another person. He subsequently gave the handgun and ammunition to the felon in exchange for $300 worth of crack cocaine.
The charge provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Office, made the announcement today. Assistant U.S. Attorneys John T. McNeil and Nicholas Soivilien of Weinreb’s Criminal Division are prosecuting the case.
Lubbock Man Involved in Fentanyl Distribution Conspiracy Pleads Guilty to Federal Drug ChargesRead the Press Release
LUBBOCK, Texas — A Lubbock, Texas, man, Brian Landon Brown, 32, appeared today before U.S. Magistrate Judge D. Gordon Bryant Jr. and pleaded guilty to a federal offense stemming from his role in a fentanyl distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Brown pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute furanyl fentanyl. He faces a statutory penalty of not more than twenty years in federal prison and a $1 million fine. Judge Bryant recommended that the district court accept Brown’s guilty plea.
According to plea documents filed in the case, on October 17, 2016, Brown was arrested in Lubbock, Texas, on an unrelated arrest warrant. At the time of his arrest, Brown possessed a vial of .291 net grams of Furanyl Fentanyl. Brown admitted that he typically sold several grams of Furanyl Fentanyl per day and that, several months before his arrest, he started selling at least 10 grams of Furanyl Fentanyl per day.
On October 6, 2016, at 2:30 p.m. Brown met a 26-year-old male and sold Furanyl Fentanyl to that individual. Around 4:15 - 4:30 a.m. on October 7, 2016, that same individual was discovered unconscious in a bathroom. At approximately 5:05 a.m. that same day, the individual was pronounced dead. The Lubbock County Medical Examiner (LCME) did an autopsy and determined that the cause of death was drug toxicity from Furanyl Fentanyl. A postmortem forensic toxicology analysis revealed 1.9 ng/mL of Furanyl Fentanyl in the individual’s blood.
Fentanyl is a potent synthetic opioid analgesic that is about 30 to 40 times stronger than heroin and up to 100 times more powerful than morphine. Besides analgesia, Fentanyl produces a variety of pharmacological effects, including alteration in mood, euphoria, drowsiness, respiratory depression, suppression of cough reflex, constriction of pupils, and impaired gastrointestinal mobility. Fentanyl is a Schedule II controlled substance.
Furanyl Fentanyl is a controlled substance analogue that has a chemical structure substantially similar to Fentanyl, a Schedule II controlled substance under the Controlled Substances Act, and has a stimulant, depressant, or hallucinogenic effect on the central nervous system that is substantially similar to or greater than the stimulant, depressant, or hallucinogenic effect on the central nervous system of Fentanyl, a Schedule II controlled substance.
The case is being investigated by the Drug Enforcement Administration and the Lubbock Police Department. Assistant U.S. Attorneys Jeffrey Haag and Russell Lorfing are in charge of the prosecution.
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Local Man Hammered with 600-Month Prison Sentence for Sexual Exploitation of Children and Tax FraudRead the Press Release
GALVESTON, Texas – A local man has been ordered to federal prison for 50 years following his conviction of sexual exploitation of children and for knowingly making a false claim in the nature of preparing and filing a false tax return, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge D. Richard Goss of IRS-Criminal Investigation (CI) and Special Agent in Charge Perrye K. Turner of the FBI. Benjamin Douglas Guidry pleaded guilty Sept. 29, 2016.
Today, U.S. District Judge George C. Hanks Jr. handed Guidry 270 months for each count of production of child pornography in addition to another 60-months for the tax fraud. The sentences were all ordered to run consecutively for a total 600-month-term of federal imprisonment.
In handing down the sentence, Judge Hanks called Guidry the worst kind of predator and said what he did was absolutely horrific. “You solicited the trust, admiration and respect of victims and turned around and used that for your own gratification.” He also noted that if Guidry was willing to do this to children he knew and supposedly loved, he didn’t want to think about what Guidry would be willing to do those he didn’t know.
Guidry was further ordered to pay $201,454 in restitution to the IRS. He will be on supervised release for the rest of life following completion of the prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
According to the plea agreement filed in the record of the case and to statements made in court, the IRS had been investigating Guidry for possible tax offenses. In May 2015, authorities executed a search warrant at Guidry’s place of business, Financial Precision Group, at which time they seized several computers and boxes of documents. Agents noticed, among other things, that several files on Guidry’s external hard drive had titles that led the IRS to believe they may contain child pornography. Authorities also noticed text messages on his cell phone that appeared to be inappropriate communications with a minor and a video of a minor.
The FBI joined the investigation and later executed a search warrant at Guidry’s residence. During that search, authorities found items present in the video on Guidry’s cell phone, including clothes worn by one of identified minor victims in the video. They also seized a cell phone and multiple computers.
Guidry was arrested at that time.
On two of Guidry’s external hard drives, authorities ultimately discovered a total of at least 164 images and 28 videos of child pornography. Additionally, a cell phone contained at least three videos of child pornography. One of the videos shows one of the minor victims being penetrated by an adult male. That video contains sounds from the victim demonstrating that the minor, who was protesting what was being done to her, was under the influence of a drug or was deeply sleeping. Another victim discovered she had been recorded on two separate occasions, once via a cell phone propped on the back of a toilet and again by an iPad propped up in the same location.
As to the tax offense, Guidry also agreed the intended income tax loss was between $250,000 and $550,000.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Sherri L. Zack and Charles J. Escher are prosecuting the case.
Jury convicts Toledo man of firearms crimeRead the Press Release
A Toledo man with a long criminal history was convicted by a jury of illegally having a firearm, law enforcement officials said.
Lawrence Lee Walls, 46, was convicted in federal court of one count of being a felon in possession of a firearm.
Walls is expected to be sentenced later this year. Walls qualifies for sentencing enhancements under the Armed Career Criminal Act due to his prior convictions.
Walls possessed a Hi-Point 9 mm Luger semi-automatic pistol in the 700 block of Tecumseh Street in Toledo on Oct. 16, 2015, according to evidence presented at trial.
Walls brandished the gun at others as police pulled up. He then fled and tossed the gun in some brush, where police later found it fully loaded, according to evidence presented at trial.
He was previously convicted of aggravated assault (1993); aggravated assault (1998); and aggravated robbery with a firearm specification, aggravated burglary with a firearm specification and robbery (2001), according to court documents.
The investigating agencies in this case were the Toledo Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorneys Noah P. Hood and Tracey Ballard Tangeman.
This case is being prosecuted as part of "Project Safe Neighborhoods," a gun violence reduction program administered by the Department of Justice, U.S. Attorney's Office for the Northern District of Ohio. The program targets armed criminals for federal prosecution.
Jury Convicts Milton Man of Online Child Exploitation OffensesRead the Press Release
PENSACOLA, FLORIDA – Danny Ray Murphy, 37, of Milton, was convicted today in the U.S. District Court in Pensacola of all counts, which charged conspiracy, receipt of child pornography, and possession of child pornography involving a minor under age 12. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
During the three-day trial, the jury reviewed three months of online communications between Murphy and a conspirator, including images and a video of sex acts involving a three-year-old, evidence linking the online activity to Murphy, and forensic evidence from his cellular telephone regarding sexually assaulting the three-year-old.
For the conspiracy and receipt charges, Murphy faces a minimum of 5 years and a maximum of 20 years in prison. For the possession charge, Murphy faces a maximum of 20 years in prison. The sentencing hearing is scheduled for August 31, 2017, at 1:00 p.m. at the United States Courthouse in Pensacola
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Escambia County Sheriff’s Office, the Pensacola Police Department, the State Attorney’s Office for the 1st Judicial Circuit, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Jury Convicts Local Resident for Importing MethRead the Press Release
BROWNSVILLE, Texas – A federal jury has returned guilty verdicts against a 55-year-old legal permanent resident alien who resided in Matamoros for methamphetamine trafficking, announced Acting U.S. Attorney Abe Martinez. Martin Araiza-Jacobo was convicted of conspiracy to possess and possession of methamphetamine with intent to deliver as well as conspiracy to import and importation of methamphetamine following a two-day trial and approximately two hours of deliberation.
On Jan. 19, 2017, Araiza-Jacobo attempted to enter the United States through a pedestrian lane at the Gateway International Bridge, at which time he declared that he was bringing in sandwiches and two bags of candies from Mexico.
A Customs and Border Protection (CBP) officer inspected the bags and immediately noticed the candies inside the bag did not match with the candy images displayed on the bag. The contents also felt harder than expected. Authorities conducted an X-ray examination which revealed anomalies in both bags. Officers then opened the bags and discovered 83 packages containing 5.19 kilograms of methamphetamine.
Araiza-Jacobo stated he worked as a “cruzador” or a person who helps people cross groceries from the United States to Mexico. He claimed he had crossed into Mexico earlier that day to buy a sandwich for a lady and met an unknown man there who asked him to cross the bags of candy. The man was supposed to call Araiza-Jacobo once back in the U.S. and would give him the name and description of the person to whom he would deliver the candy. Araiza-Jacobo denied ever seeing or talking to the unknown man before.
However, the jury heard evidence that Araiza-Jacobo had been in contact with this man since Jan. 16, 2017. Further, Araiza-Jacobo had actually initiated the contact. Testimony revealed that Araiza-Jacobo had overheard part of a conversation in which a man was looking for someone willing to cross a piñata and a box of candy into the U.S. and ship it to Atlanta, Georgia. Araiza-Jacobo got the man’s number and called him. Less than an hour later, Araiza-Jacobo commented that the trip was set.
He has been and will remain in custody pending sentencing, set for Sept. 13, 2017. At that time, he faces up to life in federal prison and a possible $10 million fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Israel Cano III and Jason Corley are prosecuting the case.
Joseph W.M. Develles Sentenced for Unlawful Possession of Firearms and Possession of Marijuana with Intent to DistributeRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JOSEPH WENDELL MONTON DEVELLES, age 24, was sentenced in District Court on June 13, 2017, to a 21-month term of imprisonment for Possession of Firearms by a Prohibited Person and Possession with Intent to Distribute Less than 50 Kilograms of Marijuana. The Court also ordered two years of supervised release and a mandatory $200 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On October 31, 2016, DEVELLES pled guilty to an Information that charged Possession of Firearms by a Prohibited Person, in violation of 18 U.S.C. § 922(g)(3), and Possession with Intent to Distribute Less than 50 Kilograms of Marijuana, in violation of 21 U.S.C. § 841(a)(1). The firearms offense was based on DEVELLES being an unlawful drug user at the time he possessed the weapons. During February 2016, officers from the Guam Police Department (GPD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) executed a search warrant at the defendant’s residence in Astumbo, Dededo. Inside a bedroom, law enforcement found two five-gallon buckets that contained 2.4 pounds of marijuana. They also discovered a Glock .380 caliber pistol, a Marlin 270 Win. rifle, ammunition, and approximately $26,300 in U.S. currency. The money was proceeds from the sale of marijuana. DEVELLES had previously been convicted in the Superior Court of Guam for driving while intoxicated. Chief District Judge Tydingco-Gatewood noted that DEVELLES committed federal offenses while still on probation.
The investigation was conducted by ATF and the GPD-Special Investigation Section. The case was prosecuted by Belinda Alcantara, Assistant United States Attorney for the District of Guam.
Jacksonville Man Sentenced for Perpetrating Fraud Schemes While Illegally Collecting Disability and Medicaid BenefitsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Douglas Thompson (52, Jacksonville) to 27 months in federal prison for wire fraud and theft of government property. The Court also ordered him to pay $149,218.26 in restitution to the victims of his crimes.
Thompson pleaded guilty on February 24, 2017.
According to court documents, Thompson was a heavy equipment broker who operated his one-man business under the name Douglas Thompson Industries (DTI). In order to increase business, Thompson created multiple DTI websites that falsely claimed the company had been in existence for 30 years, had multiple divisions, and had satisfied over 6,000 customers worldwide. The sites also falsely claimed that Thompson, a high school dropout, was a graduate of the Massachusetts Institute of Technology. Thompson defrauded three DTI customers by purporting to broker the sale of truck chassis, accepting payment, and then failing to deliver as agreed.
While operating his business and defrauding customers, Thompson also fraudulently collected Supplemental Security Income (SSI) and Medicaid healthcare benefits. SSI is a program designed to provide support for low-income individuals, generally who are unable to work due to a disability.
This case was investigated by the Social Security Administration - Office of the Inspector General and the Department of Health and Human Services - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Island Man Heads to Prison on Child Pornography ChargeRead the Press Release
BROWNSVILLE, Texas – A 70-year-old resident of South Padre Island has been sentenced to federal prison for possession of child pornography, announced Acting U.S. Attorney Abe Martinez. Howard William Halverson pleaded guilty Nov. 29, 2016.
Today, U.S. District Judge Rolando Olvera considered Halverson’s age and handed him a sentence of 60 months in federal prison. The court further ordered Halverson to pay $50,317.00 in restitution to the known victims discovered in his child pornography collection. Halverson will spend the rest of his life on supervised release after serving his sentence, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
The investigation into Halverson began as authorities were looking into persons utilizing peer-to-peer software to exchange and view child pornography. Federal agents executed a search warrant at Halverson’s condominium on July 6, 2016, which led to the discovery of 1488 images and five videos containing child pornography, 545 of which were of known victims.
Halverson has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Rio Grande Valley Child Exploitation Task Force conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Jason Corley, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictment Returned for Fraud in Connection with Technology Sale to the Bibb County School DistrictRead the Press Release
United States Attorney for the Middle District of Georgia, G. F. Peterman, III, announced that an indictment charging Isaac J. Culver, III, age 47, Lizella, Georgia, Dave Carty, age 48, Macon, Georgia, and their business, Progressive Consulting Technologies, Inc., with conspiracy to commit wire and mail fraud, ten (10) counts of wire fraud, one (1) count of mail fraud, and conspiracy to launder the proceeds of unlawful activity was unsealed today.
The charges against Mr. Culver, Mr. Carty, and Progressive Consulting Technologies, Inc. stem from the sale of 15,000 Ncomputing devices to the Bibb County School District in 2012. Mr. Culver and Mr. Carty were arrested this morning and are scheduled to make their initial appearances in the United States District Court this afternoon.
Each of the charges against Mr. Culver, Mr. Carty, and Progressive Consulting Technologies, Inc. carry a maximum possible sentence of 20 years imprisonment. The fine on the conspiracy to launder the proceeds of unlawful activity carries a maximum fine of $500,000.00 or twice the value of the property involved in the transaction, whichever is greater. The other charges carry a maximum possible fine of $250,000.00 each.
A copy of the indictment is attached. The indictment is only an allegation of criminal conduct. Each person is presumed innocent until and unless proven guilty in a court of law.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service. Assistant U.S. Attorneys Beth Howard and Danial Bennett are prosecuting the case for the Government with participation and cooperation of Special Assistant U.S. Attorney David McLaughlin from the Georgia Office of the Attorney General.
Illinois Man Sentenced on Counterfeit Securities Fraud ChargesRead the Press Release
St. Louis, MO – Scott Meherg, 36, Chicago, IL, was sentenced to 24 months in prison and ordered to pay restitution in the amount of $3,161.00 on charges involving his possession and use of counterfeit checks.
According to court documents, on four occasions in March 2015, Meherg used counterfeit checks to purchase merchandise at several antique malls located in Creve Coeur, Warson Woods, St. Peters, and South St. Louis County, Missouri. At the time of his arrest, the defendant had numerous active warrants for similar conduct in Illinois, Michigan, Iowa, Kentucky, and Wisconsin.
Meherg pled guilty in February to one count of counterfeit securities fraud and appeared today for sentencing before United States District Judge E. Richard Webber.
This case was investigated by the St. Louis County Police Department. Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney’s Office.
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I.T. system administrator sentenced for theft of proprietary information and illegal wiretappingRead the Press Release
Stole custom design products when he resigned and took information
to new job with a competitor
PRESS RELEASE
INDIANAPOLIS – The former information technology (IT) system administrator for an Indiana stainless steel fabrication company pleaded guilty and was sentenced today to serve eight months in prison for the theft of his former employer’s proprietary information and wiretapping its email communications.
U.S. Attorney Josh J. Minkler of the Southern District of Indiana, Special Agent in Charge Paul Dvorak of the U.S. Secret Service, Indianapolis Field Office, and Superintendent Douglas G. Carter of the Indiana State Police made the announcement.
“Companies have the right to keep their proprietary interests out of the hands of competitors,” said Minkler. “Those who choose to steal from their employer and then attempt to obstruct a criminal investigation will be held accountable.”
Benjamin Levi Cox, 34, of Nineveh, Indiana, pleaded guilty to one count of wire fraud and one count of interception of electronic communications and was sentenced by U.S. District Judge Sarah Evans Barker. In addition to his prison term, Cox was ordered to serve seven months of home confinement, two years of supervised release and ordered to pay $27,490 in restitution. He was also ordered to perform a further six months of unpaid community service.
According to admissions made in connection with his plea, Cox was formerly employed by Electric Metal Fab, Inc. (“EMF”), a stainless steel fabrication company in Nashville, Indiana. Cox worked as EMF’s IT system administrator and a designer for its computer-aided drafting (“CAD”) system, which EMF used to custom design each product. In or about March 2013, taking advantage of his system administrator privileges, Cox began covertly copying EMF’s entire computer system to an external hard drive. Over a period of three months, Cox repeatedly loaded all of EMF’s proprietary digital information – including thousands of files containing its CAD designs, financial data, sensitive personnel records, and operational and technical documents onto this external device.
As part of his plea, Cox admitted that when he resigned from EMF in June 2013, he took the hard drive containing the stolen EMF data and brought it with him to his new employer, a direct competitor of EMF. Cox then copied multiple files to the new employer’s computer and, among other things, altered the CAD designs to appear as if they had been created by the competitor. The doctored CAD designs were subsequently used by the competitor in obtaining over $45,000 in new contracts with customers that had previously been EMF clients.
Cox further admitted that before quitting EMF, he used his system administrator privileges to secretly configure EMF’s email account settings to auto-forward all of its email communications to two external email accounts he had registered. The intercepted emails included personal correspondence, private financial and legal information, and business dealings between EMF and its clients. After being questioned by investigators, Cox secretly deleted the contents of those email accounts to obstruct the investigation. These efforts were ultimately unsuccessful.
The Cybercrime and High Technology Section of the Indiana State Police and U.S. Secret Service investigated the case. Senior Counsel Aaron R. Cooper of the U.S. Department of Justice’s Criminal Division, Computer Crime and Intellectual Property Section (CCIPS), and Senior Litigation Counsel Steven D. DeBrota of the Southern District of Indiana prosecuted the case. The CCIPS Cybercrime Lab also provided assistance.
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Hartford Man Sentenced to 34 Months in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDRE CARTAGENA, 29, of Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 34 months of imprisonment, followed by one year of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department that targeted a drug trafficking organization operating in Hartford’s North End that was distributing crack and powder cocaine. The investigation revealed that David Gil-Grande, of Manchester, received shipments of cocaine, secreted in sealed coffee cans, from Puerto Rico. He then supplied the cocaine to Anthony Shelton, also known as “Pretty,” Gerard Brown, also known as “Goldie,” and others, who converted much of the cocaine into crack and distributed both forms of the drug in the area of Barbour Street in Hartford.
The investigation, which included court-authorized wiretaps, revealed that Brown supplied crack cocaine to CARTAGENA who then sold the drug to his own customers.
Twenty individuals were charged as a result of the investigation.
CARTAGENA has been detained since his arrest on February 2, 2016. On March 9, 2017, he pleaded guilty to one count of using a telephone to facilitate a drug trafficking felony.
CARTAGENA’s criminal history includes six narcotics-related convictions and convictions for assault and criminal mischief. He was on state probation while he engaged in the criminal conduct that resulted in this federal prosecution.
Gil-Grande, Shelton and Brown have pleaded guilty to related charges. On January 31, 2017, Gil-Grande was sentenced to 70 months of imprisonment. Shelton and Brown await sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the Drug Enforcement Administration have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Gun Charges Added to Oxycodone CasesRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on May 23, 2017, a federal grand jury returned a five-count Superseding Indictment against Lee Hueckstaedt (age: 31) of Rhinelander containing charges related to distributing Oxycodone. On June 6, 2017, a federal grand jury returned a nine-count, Second Superseding Indictment that contained Oxycodone-related charges against seven individuals including Lance Bruette (age: 34) of Minocqua, Orvin Kay (age: 57) of Milwaukee, Frank Lawrence (age: 38) of Saint Germain, Mitchell Plantikow (age: 29) of Woodruff, Troy Plantikow (age: 52) of Woodruff and Lacey Stanick (age: 31) of Woodruff, and Serena Johnson (age: 34) of Lac Du Flambeau.
The Superseding Indictment against Lee Hueckstaedt added a charge of Conspiracy to Distribute Oxycodone in violation of 21 United States Code Section 846. It also added a charge of Possession of a Firearm in Furtherance of a Drug Trafficking Crime in violation of 18 United States Code 924(c). The nine-count, Second Superseding Indictment against the seven individuals only added one new charge against Lance Bruette for Possession of a Firearm in Furtherance of a Drug Trafficking Crime in violation of 18 United States Code 924(c). A conviction of 18 United States Code 924(c) carries a five-year mandatory minimum sentence.
According to the Criminal Complaint filed against Orvin Kay, certain members of the conspiracy who resided in Northern Wisconsin would drive to Milwaukee and pick up hundreds of Oxycodone 30 mg pills per week from Orvin Kay. They would then distribute those Oxycodone pills to individual users, as well as co-conspirators who would sell the pills to other individuals. The maximum penalty for all of the charges except for the violation of 18 United States Code 924(c) is 20 years in prison and a $1,000,000 fine. The maximum penalty for a violation of 18 United States Code 924(c) is life in prison and a $250,000 fine.
The following agencies are participating in the investigation: the Oneida County Sheriff’s Office; the Vilas County Sheriff’s Office; the Wisconsin Department of Justice - Division of Criminal Investigation; the Drug Enforcement Administration – Milwaukee (Tactical Diversion Squad); the Minocqua Police Department and the Rhinelander Police Department; and the Northcentral Drug Enforcement Group (“NORDEG”). The case is being prosecuted by Assistant United States Attorney Zachary J. Corey.
An indictment and a criminal complaint is only a charge and not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700