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27 July 2017
Hudson County, New Jersey, Man Sentenced to 63 Months in Prison for Masterminding Fake ID Website and Participating in ‘SIRF’ SchemeRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man was sentenced today to 63 months in prison for his role in two separate conspiracies: one to create and operate a website that sold high-quality, custom-made fake identification documents, some of which were later used to commit financial crimes, and a second to fraudulently obtain tax refund checks, Acting U.S. Attorney William E. Fitzpatrick announced.
Ricardo Rosario, 34, previously pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with conspiracy to commit fraud in connection with authentication features and conspiracy to submit false claims to the U.S. Government. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From October 2012 through August 2014, Rosario, with the assistance of Abraham Corcino, 34, of Jersey City, and Alexis Scott Carthens, 38, of Newark, sold fake driver’s licenses over the Internet, running a website that was available at “fakeidstore.com” and “fakedlstore.com.” A number of the fake driver’s licenses sold by Rosario and other conspirators were used in connection with “cash out” schemes, where stolen credit card information, usually obtained through hacking or ATM skimming operations, was encoded on to counterfeit credit cards and used to steal cash from victims’ accounts.
Rosario created and ran the website. Corcino and Carthens assisted him by creating and mailing the fake driver’s licenses purchased through the website. Corcino also maintained an Instagram account to promote the website. The website sold fake New Jersey, Florida, Illinois, Pennsylvania, Rhode Island, and Wisconsin driver’s licenses, and the website boasted that the licenses had “scannable barcodes” and “real” holographic overlays. The price for each fake driver’s license was approximately $150, but the website offered bulk pricing for orders of 10 or more.
The website allowed its users to pay by bitcoin, a cryptographic-based digital currency, or MoneyPak, a type of prepaid payment card that could be purchased at retail stores. The “FAQ” section of the website indicated that orders would be received approximately one to two days after payment was received and described the website’s policy with respect to returns: “No Refunds. No snitching.”
In the Stolen Identity Refund Fraud (SIRF) conspiracy, Rosario assisted Carthens, who obtained stolen personally identifiable information (PII) primarily in the form of lab testing request forms that he purchased from another individual. Rosario provided Carthens with email accounts and drop addresses used in furtherance of the scheme. The email accounts were used to register accounts for online tax filing services and prepaid card accounts used to apply for and receive the tax refunds. The drop addresses were used to physically receive the refunds in the form of prepaid debit cards.
In addition to the prison term, Judge Linares sentenced Rosario to three years of supervised release and ordered forfeiture of $232,660 and restitution of $121,922.
Corcino was sentenced on April 17, 2017, to three years of probation. Carthens pleaded guilty to his role in the scheme on April 25, 2016, and is scheduled to be sentenced Sept. 28, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Zach Intrater of the Economic Crimes Unit and Barbara Ward, Acting Chief of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Brian Neary Esq., Hackensack, New Jersey
Guatemalan Man Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Miguel Angel Mauricio-Ramirez, age 35, and a citizen of Guatemala, was sentenced today to time served (24 days in jail) for illegally re-entering the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Mauricio-Ramirez admitted that he is a citizen of Guatemala, and that he illegally returned to the United States after he was removed to Guatemala, under the name Esvin Cano, on January 8, 2007.
On July 3, 2017, Mauricio-Ramirez was arrested by ICE officers in Kinderhook, New York.
Following the sentencing, Mauricio-Ramirez was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Greer Man Sentenced for Production of Child PornographyRead the Press Release
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Sean Patrick Oswell, age 52, of Greer, South Carolina was sentenced today in federal court in Greenville, South Carolina, for Production of Child Pornography, in violation of 18 U.S.C. § 2251. United States District Judge Timothy M. Cain, of Anderson, sentenced Oswell to 262 months imprisonment, followed by a life term of supervised release, including sex offender registration, sex offender counseling, and polygraph requirements.
Evidence presented at the change of plea and sentencing hearings established that law enforcement located images of child pornography of a very young child in Australia. Law enforcement worked backward, eventually locating the distributor of those images, Sean Patrick Oswell. Investigation revealed that Oswell not only distributed those images, but he had actually created them, taking pictures of the prepubescent child, whose identity is protected, and sexually exploiting the child.
The case was investigated by agents of ICE-Homeland Security Investigations and Spartanburg County Sheriff’s Office. The Child Advocacy Center of Spartanburg, Cherokee, & Union provided forensic evaluation in the case. This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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Georgia Man Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Eric Hubbard, 34, of Stone Mountain, Georgia, who was convicted of being a felon in possession of a firearm, was sentenced to 18 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on June 19, 2014, the defendant was walking down Genesee Street and was approached by a pair of Buffalo Police Officers. After refusing to show identification, the officers patted Hubbard down and detected a gun. A search revealed a 9mm semi-automatic handgun, and 13 rounds of ammunition. The defendant subsequently stated to the arresting officers that the gun was “his girl’s” and that he was carrying it to protect himself.
As a result of two prior convictions in the State of Michigan, the first in 2002 for breaking and entering, and the second in 2003 for attempting to break and enter and assaulting or resisting a police officer, the defendant is prohibited from legally possessing a firearm.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Ashan Benedict, Special Agent-in-Charge, New York Field Division and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Four Vendors to Pa-Liquor Control Board Agree to Pay over $9 Million in Monetary PenaltiesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four vendors to the Pennsylvania Liquor Control Board have entered non-prosecution agreements with the government requiring the payment of over $9 million in monetary penalties for their involvement in previously providing things of value to officials at the PA-LCB.
According to United States Attorney Bruce D. Brandler, the four companies that have entered into the agreements are:
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Southern Glazer’s Wine and Spirits of Pennsylvania, LLC, which is successor company to Southern Wine and Spirits of Pennsylvania, LLC, and wholly owned by Southern Glazer’s Wine and Spirits of Miami, Florida;
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Breakthru Beverage Pennsylvania, LLC, which is the successor company to Capital Wine and Spirits, LLC, and wholly owned by Breakthru Beverage Group, Inc. of New York, New York;
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White Rock Distilleries, Inc., which formerly was headquartered in Lewiston, Maine; and
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Pio Imports, LLC, which is headquartered in North Wales, Pennsylvania.
Each of these companies agreed to pay substantial monetary penalties, implement compliance measures and refrain from engaging in similar activities in the future. The government agreed not to prosecute the companies nor any of their employees who gave things of value to officials of the PA-LCB. U.S. Attorney Brandler noted several factors that informed these resolutions, including the cooperation of the businesses in the government’s investigation, the merits of the individual cases, as well as the historic nature of the conduct which was discontinued in 2012 when the Pennsylvania Ethics Commission initiated its investigation into this matter.
Southern Glazer’s Wine and Spirits of Pennsylvania agreed to pay $5 million in monetary penalties for their employees role in providing cash, all-expenses paid trips, tickets to shows and sporting events, entertainment and other things of value to officials at the PA-LCB from 2000 to 2012. Attached to their agreement is a statement of facts outlining the conduct of Southern’s employees.
White Rock Distilleries agreed to pay $2 million in monetary penalties for their employees role in providing cash, all-expenses paid trips, and other things of value to officials at the PA-LCB from 2000-2011. Attached to their agreement is a statement of facts outlining the conduct of White Rock’s employees.
Breakthru Beverage Pennsylvania, which until recently operated as Capital Wine & Spirits, LLC, agreed to pay $2 million in monetary penalties for their employees’ role in providing gift cards, tickets, meals, and entertainment to officials at the PA-LCB between 2007-2012. Attached to their agreement is a statement of facts outlining the conduct of Capital’s employees.
Pio Imports, LLC, agreed to pay $200,000 in monetary penalties for their employee’s role in providing gift cards to officials at the PA-LCB between 2007-2012. Attached to their agreement is a statement of facts outlining the conduct of Pio’s employees.
“Although the history between these organizations and the PA-LCB is clearly disturbing, it is in the interests of justice to expose this history and hold the organizations responsible. The monetary penalties imposed on these successor organizations more than disgorges the financial benefits received and discourages future misconduct by those in the industry,” stated U.S. Attorney Brandler.
In September 2015, James Short – the former Director of the Marketing for the PA-LCB - entered a guilty plea to honest services fraud. The charges are based upon Short’s receiving numerous benefits from White Rock and Capital Wine and Spirits over a ten-year period of time. No date has been scheduled yet for Short’s sentencing.
These matters were investigated by the Harrisburg Office of the FBI and handled by Senior Litigation Counsel Michael A. Consiglio. The U.S. Attorney’s Office and the FBI were also assisted by the Pennsylvania Ethics Commission.
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Four Inland Empire Individuals Charged in Tax Fraud and Identity Theft Scheme Claiming Nearly $2 Million in Fraudulent Tax RefundsRead the Press Release
LOS ANGELES – Federal authorities on Monday and Tuesday arrested three defendants charged with participating in a tax fraud scheme that used stolen identities to file at least 527 fraudulent federal income tax returns claiming more than $1.9 million in fraudulent tax refunds with the Internal Revenue Service.
The 41-count indictment was returned by a federal grand jury on July 12th and unsealed yesterday and charges the defendants with conspiracy to defraud the government with respect to claims, filing false claims against the government, theft of government property, wire fraud, possession of 15 or more unauthorized access devices, possession of an identification document with intent to defraud the United States, aggravated identity theft, and criminal forfeiture. The Indictment also names a fourth defendant, Raymond Salazar, 53, of Los Angeles who remains at large.
The three defendants taken into custody on Monday and Tuesday are:
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Charlene Castrejon, 58, of Hemet, California;
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Rebecca Mona Sandoval, 33 of San Jacinto, California; and
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Robert Manuel Gamboa, Jr., known as Paul Timothy Garcia, 29, of Highland, California.
At their initial court appearances this week in the United States Courthouse in Riverside, Castrejon and Sandoval were released on bond and Gamboa remains in federal custody pending his detention hearing on July 28.
The indictment alleges that Castrejon, Salazar, and Sandoval prepared fraudulent federal income tax returns in the names of identity theft victims with false income, dependent, earned income credit, education credit and child tax credit information. As a result of the false information, the returns claimed fraudulent tax refunds. The tax returns were filed without the knowledge or consent of the identity theft victims.
The Indictment further alleges that the refund payments were either mailed to addresses or deposited directly into taxpayer debit card accounts that Castrejon, Salazar, and Sandoval controlled. Gamboa worked with the other defendants by depositing the refund checks into the accounts that he and the others controlled.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of wire fraud, each defendant will face a statutory maximum sentence of 20 years in federal prison and a fine of up to $250,000. In addition, each count of aggravated identity theft carries a mandatory sentence of two years in federal prison.
This week’s arrests are part of an ongoing investigation being conducted by IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Throughout the operation, IRS CI and HSI received substantial assistance from the FBI Safe Streets San Bernardino Gang Impact Team.
The case is being prosecuted by Assistant United States Attorney Julius J. Nam from the Riverside Branch Office.
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Founder and Leader of “Bmb” Street Gang Pleads Guilty to Racketeering ConspiracyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that NICO BURRELL, a/k/a “Zico Nico,” pled guilty today to racketeering conspiracy in connection with his leadership of the “Big Money Bosses” gang (“BMB”), a violent street gang founded by BURRELL that operated primarily on White Plains Road from 215th Street to 233rd Street in the Bronx.
Acting U.S. Attorney Joon H. Kim said: “For far too long, under the leadership of Nico Burrell, the BMB street gang has terrorized citizens of the Bronx through violence, robberies, and drug dealing. With Burrell’s guilty plea today, the community around White Plains Road is safer.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
BURRELL was a founder and leader of BMB, a subset of the “Young Bosses,” or “YBz” street gang, which operated throughout New York City. Between 2007 and 2016, members and associates of BMB committed numerous acts of violence against rival gang members in the Bronx—including murders, attempted murders, and armed robberies—and sold crack cocaine and marijuana. As part of his leadership of BMB, BURRELL attempted to shoot a rival gang member on February 11, 2009, but hit an innocent bystander instead. BURRELL also sold significant amounts of oxycodone and, during pretrial detention in this case, assaulted a witness.
BURRELL was arrested in this case as a result of a multi-year investigation by the New York City Police Department’s Bronx Gang Squad (the “Bronx Gang Squad”), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Violent Gang Unit (“HSI”), the New York Field Division of the Drug Enforcement Administration (“DEA”), and the Joint Firearms Task Force of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) into gang violence in the Northern Bronx. On April 27, 2016, the Indictment was unsealed, charging 63 members and associates of BMB with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and/or firearms charges. To date, 55 of these defendants have pled guilty.
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BURRELL, 25, of the Bronx, New York, was arrested on April 27, 2016. BURRELL pled guilty today to one count of racketeering conspiracy, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as the defendant’s sentence will be determined by the judge.
Mr. Kim praised the outstanding work of the NYPD’s Bronx Gang Squad, HSI, DEA, and ATF.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rachel Maimin, Micah W.J. Smith, Hagan Scotten, Jessica Feinstein, and Drew Skinner are in charge of the prosecution.
Former Supervisor at Portland, Oregon-Area Manufacturing Company Pleads Guilty for Role in Product Certification Fraud SchemeRead the Press Release
Yesterday, a former supervisor at an aluminum extrusion manufacturing company in the Portland, Oregon, area pleaded guilty for his role in a decade-long scheme involving the fraudulent certification of mechanical properties for parts manufactured by his former employer.
Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division, Executive Officer Renee Juhans of the NASA Office of Inspector General, Special Agent in Charge Loren ‘Renn’ Cannon of the FBI’s Portland Division, Special Agent in Charge Chris Hendrickson of the Defense Criminal Investigative Service’s (DCIS) Western Field Office and Special Agent in Charge John Khin of DCIS’s Southeast Field Office made the announcement.
Dennis Balius, 60, of Portland, pleaded guilty to one count of mail fraud before U.S. District Judge Marco A. Hernández of the District of Oregon. Sentencing has been scheduled for November 30 before Judge Hernández.
As part of his guilty plea, Balius admitted that, as a lab supervisor at a Portland-area aluminum extrusion manufacturing facility, he trained and directed lab technicians – who conducted testing on aluminum extrusions – to falsify mechanical properties test results for extrusions that failed to meet industry specifications. Balius admitted that from the time he became a lab supervisor in or about 2003 through the end of his employment in 2015, he routinely falsified and instructed lab technicians to falsify test results to ensure the company’s unreliable and inconsistent production practices would not prevent aluminum extrusions from being shipped to customers. Balius admitted that he made, or directed lab technicians to make, alterations to failing test results if the shipping department asked him to rush an order because ensuring on-time delivery of aluminum helped him and other employees receive bonuses.
Balius further admitted that his former employer determined that he and the lab technicians altered the mechanical properties of aluminum extrusions over 4,000 times, allowing the manufacturing company to gross over $6.8 million in total sales based on altered test results.
This case was investigated by the NASA Office of Inspector General, the FBI’s Portland office and DCIS. The case is being prosecuted by Assistant Chief Thomas B.W. Hall and Trial Attorneys Jennifer G. Ballanytyne and Emily C. Scruggs of the Criminal Division’s Fraud Section.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Former Soldier Sentenced for Child Abuse at Fort RileyRead the Press Release
TOPEKA, KAN. - A former Army soldier was sentenced Thursday to 17 years in federal prison for child abuse, U.S. Attorney Tom Beall said.
Eugene Cleaver, 30, Bonham, Texas, pleaded guilty to one count of sexual abuse. In his plea, he admitted the crime occurred while he was stationed at Fort Riley where he lived with four minor females and their parents. He received free room and board in exchange for caring for the children and the house. After the children were removed from their parents’ home and placed in foster care, investigators learned that Cleaver had molested the children and warned them not to say a word or he would get into trouble.
Beall commended the U.S. Army, Criminal Investigation Division, the Office of the Staff Judge Advocate, Special Assistant U.S. Attorney Robin Graham and Assistant U.S. Attorney Christine Kenney.
Former Postal Employee Convicted at Trial in Scheme to Defraud Worker’s Compensation Program Sentenced to 21 Months in Federal PrisonRead the Press Release
DALLAS — Tonya Evans, 52, a former U.S. Postal Service employee, was sentenced today by U.S. District Judge Sam A. Lindsay to 21 months in federal prison and ordered to pay $98,888.73 in restitution for participating in a scheme to defraud the Department of Labor’s (DOL) Office of Worker’s Compensation Program (OWCP), announced U.S. Attorney John Parker of the Northern District of Texas.
Evans and co-defendant, McArthur Baker, 69, both of Dallas, were each convicted following a one-week trial before U.S. District Judge Sam A. Lindsay on one count of conspiracy to defraud the U.S. with respect to claims and one count of false statements or fraud to obtain federal employees’ compensation. Baker was sentenced in March 2017 to 21 months in federal prison.
The government presented evidence at trial that Baker and Evans engaged in a scheme to receive kickbacks in exchange for their completion of falsified medical documentation that was used by co-conspirators to defraud DOL’s OWCP. The government presented further evidence that Baker also falsified forms related to travel he purportedly made for medical services, and as a result, received funds from DOL to which he was not entitled.
Evans began working for the U.S. Postal Service in November 1985; she worked as a clerk primarily with the parcel post distribution machine. She filed disability claims in August 2001, August 2003, and August 2008 claiming that she suffered from various injuries. As a result of these claims, Evans was placed on worker’s compensation in 2001. She received more than $340,000 in worker’s compensation payments. In March 2010, she applied for disability retirement that was approved in October 2011.
Baker began working for the U.S. Postal Service in 1982; he was assigned to work as a mail handler equipment operator. Between 1984 and 2007, Baker filed eight different claims for disability, claiming he suffered from various injuries. As a result of these claims, Baker stopped working in approximately December 2007. He never returned to work but continued to receive disability compensation from December 2007 until at least October 2009. He received more than $68,000 in worker’s compensation payments. He retired from the U.S. Postal Service in October 2009 but he continued to receive disability medical care paid for through DOL, and he continues to be eligible for disability medical care.
Convicted co-conspirator, Larry Washington, was a licensed professional counselor and ran several businesses known as AAA Mental Health, LLC, Mind Spa, Inc., Solutions Health and Rehabilitation, and Convergence Emergence Diversion. Through these businesses, Washington purportedly provided patients with counseling, pain management, chiropractic services, physical therapy, and massage services. His patients were former postal and Veterans Administration employees who had suffered on-the-job injuries and were eligible to receive medical services and worker’s compensation related to those injuries. Earlier this year, Washington pleaded guilty to one count of conspiracy to commit health care fraud and was sentenced in May 2016 to 78 months in federal prison and ordered to pay $7.7 million in restitution.
To maintain and enhance his billings with OWCP, Washington asked claimants, including Baker and Evans, to falsify medical documentation, called “mood inventories,” that indicated they had received services on days they had not. Baker and Evans completed numerous mood inventory forms that contained false information about the days on which Baker and Evans received treatment from Washington or someone working for Washington. Baker and Evans received approximately $100 for each form they completed.
Over the course of the fraud, Baker received a total of at least $3,000 from Washington; Evans received at least $6,000.
As a result of Baker’s falsified documentation, Washington was able to fraudulently bill $105,125 from OWCP. As a result of Evans’ falsified documentation, Washington was able to bill $202,438 from OWCP.
In addition to Baker and Evans, 20 claimants, four doctors or medical providers, a senior claims examiner at DOL, a claims representative, a Postal employee detailed to the Postal Service Health Resource Management Office, and a medical provider’s employee were charged and convicted in the scheme.
In total, the defendants were able to collectively fraudulently bill the federal government through the OWCP for more than $9.5 million and receive more than $8.7 million in government payments based on their fraudulent billing. The DOL made approximately $11.4 million in payments to these claimants for their compensation and medical services.
The investigation was led by the U.S. Postal Service Office of Inspector General, and the Department of Labor Office of Inspector General, with assistance from Internal Revenue Service Criminal Investigation, U.S. Treasury Office of Inspector General, Social Security Administration Office of Inspector General/Cooperative Disability Investigations Unit, and the U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorneys P.J. Meitl, Nicole Dana and Special Assistant U.S. Attorney Jennifer Bray prosecuted.
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Former Leader of New York Chapter of “United Gamefowl Breeders Association” Charged with Animal Welfare Offense for Cockfighting VentureRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Bethanne M. Dinkins, Special Agent-in-Charge of the U.S. Department of Agriculture, Office of Inspector General (“USDA-OIG”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced that THOMAS CARRANO self-surrendered today in connection with an indictment charging him with conspiring to possess, sell, and transport roosters for purposes of participation in animal fights around the United States. The defendant was arraigned today in Manhattan federal court before U.S. Magistrate Judge Katharine H. Parker and the case has been assigned to the Honorable Deborah A. Batts.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Thomas Carrano masqueraded as a gamefowl enthusiast, going so far as to become the leader of an organization dedicated to protecting and promoting birds. But in fact, as alleged, Carrano was heavily involved in the cruel ‘sport’ of cockfighting. Thanks to the investigative work of the U.S. Department of Agriculture and the NYPD, Carrano’s alleged inhumane practices are over.”
Special Agent-in-Charge Dinkins said: “The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling. Together with the Department of Justice, animal fighting is an investigative priority for USDA-OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
Cockfighting is an activity in which two roosters are put forward to fight one another for sport and entertainment. The roosters typically have metal spurs, known as gaffs, or plastic spurs, known as “postiza,” affixed to their legs for use in the fight. The fights between roosters are ended when one rooster is dead or refuses to continue to fight. If not killed during the fight, the losing rooster is typically killed afterwards. Roosters involved in cockfighting will often be mutilated in preparation for fights, typically by cutting off the rooster’s comb and wattle and shaping the rooster’s spur.
From January 2012 up June 2017, THOMAS CARRANO, a member and former leader of the New York chapter of the United Gamefowl Breeders Association (“NYUGBA”), conspired with others—including a co-conspirator in the Bronx, New York—to buy, sell, transport, and receive roosters for cockfighting. CARRANO used two social media accounts—one in his own name, and one in the NYUGBA’s name —to communicate with co-conspirators, including members of the NYUGBA and others that were located in the Southern District of New York. In a 2014 newsletter to its members, the NYUGBA stated that “We DO NOT promote cockfighting in any way.” Yet in messages sent through these social media accounts, CARRANO discussed breeding and training roosters for cockfighting, the sale and purchase of gaffs and postizas for cockfighting, and CARRANO’s personal participation in cockfighting.
On May 23, 2017, law enforcement personnel executed a search warrant at CARRANO’s gamefowl farm in Ontario, New York. During the search, law enforcement officers discovered, among other things, gaffs, postizas, shears for dubbing roosters, a rooster sparring dummy, a specialized ladder used to train fighting roosters, steroids, and videos of roosters being trained for cockfights. In addition, law enforcement officers recovered approximately 104 chickens, including 19 adult roosters and 12 adolescent roosters. More than three-quarters of the male birds had their comb, wattles, and/or earlobes removed. In addition, more than a third of the roosters had at least one of their natural spurs altered.
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CARRANO, 44, of Ontario, New York, is charged with one count of conspiring to sell, possess, and transport animals for purposes of participating in an animal fight, which carries a maximum penalty of 5 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the USDA-OIG and NYPD’s Animal Cruelty Investigations Squad, and thanked them for their ongoing support and assistance with the case. Mr. Kim also thanked the American Society for the Prevention of Cruelty to Animals for their assistance in this case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Alison G. Moe and Michael C. McGinnis are in charge of the case.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Corrections Officer Sentenced to PrisonRead the Press Release
Montgomery, Alabama- Today, Johntarance Henriquis McCray (23), a former Alabama Corrections Officer from Hope Hull, was sentenced to 54 months in federal prison for smuggling multiple drugs into a state correctional facility, announced A. Clark Morris, Acting U.S. Attorney for the Middle District of Alabama. At the time of the offense, McCray was a prison guard at Draper Correctional Facility in Elmore County.
In addition to the four and half year prison sentence, McCray will also be subject to three years of supervised release. There is no parole in the federal system.
In October 2015, McCray’s superiors at Draper received information that he was smuggling drugs into the prison. When McCray reported for his shift on October 15, 2015, his supervising officers confronted and searched him. During the search, they found two large bundles hidden in McCray’s underwear that contained six different controlled substances: crack cocaine, powder cocaine, methamphetamine, marijuana, Xanax, and Suboxone. When McCray’s vehicle was searched, officers found a duffle bag containing additional drugs, a loaded 9 mm handgun, and over $400 in cash.
McCray had been with the Alabama Department of Corrections for approximately nine months before committing this crime.
“Correctional officers are there to maintain order and ensure prisoner safety,” stated Acting U.S Attorney Morris. “Corrupt guards who sneak drugs into prison are not only putting the safety of inmates at risk, they are also jeopardizing the safety of their fellow officers. The U.S Attorney’s Office recognizes that most correctional officers serve with honor and integrity. However, my office will continue to work with our law enforcement partners to vigorously investigate and prosecute those that abuse their position.”
"Law enforcement has to be held to a higher standard,” stated FBI Special Agent in Charge Robert Lasky. “Our Department of Corrections partners are working hard to stop this kind of behavior and the FBI will use every resource available to assist in this struggle."
“The Alabama Department of Corrections is served by committed and dedicated law enforcement professionals who put their lives on the line each and every day while keeping the public safe, and it’s unfortunate that a small percentage choose to compromise their integrity for personal gain,” said Corrections Commissioner Jeff Dunn. “Our partnership with the FBI and other law enforcement agencies is important to public safety, and we appreciate the assistance we received throughout the investigation.”
The Federal Bureau of Investigation (FBI) and the Alabama Department of Corrections Investigations and Intelligence Division investigated this case, with assistance from the Alabama Department of Forensic Sciences and the Elmore County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Bradley Bodiford.
Former Coral Springs Resident Sentenced to 87 Months in Prison for Access Device Fraud and Aggravated Identity TheftRead the Press Release
A former Coral Springs resident was sentenced to 87 months in prison for possession of fifteen or more unauthorized access devices, possession of device-making equipment, and aggravated identity theft.
Benjamin G. Greenberg, Acting United Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), and Tony Pustizzi, Chief, Coral Springs Police Department, made the announcement.
In January 2017, Terrance Beron Sills, 28, pled guilty to one count of possession of fifteen or more unauthorized access devices, one count of possession of device-making equipment, and one count of aggravated identity theft. U.S. District Judge William P. Dimitrouleas sentenced Sills to a total of 87 months in prison. The sentence consisted of 63 months in prison for possession of fifteen or more unauthorized access devices and possession of device-making equipment, followed by a consecutive sentence of 24 months in prison for aggravated identity theft. This sentence will run consecutive to a sentence of 18 months in prison, previously imposed on Sills by Senior U.S. District Judge James I. Cohn for violating the conditions of his supervised release.
According to court documents, members of the Coral Springs Police Department discovered hundreds of printed pages containing personally identifiable information (PII) of other people, including driver’s license information, hospital records, and credit reports, in Sills’ apartment while responding to a reported domestic disturbance. When detectives subsequently executed a search warrant on the apartment, they discovered PII for more than 600 individuals. Additionally, detectives found a printer, embosser, and magnetic stripe writer/reader used to make counterfeit credit cards or identifications. Several weeks later, Sills was stopped by Ft. Lauderdale Police Department officers driving a car the trunk of which contained additional PII, blank plastic cards, and counterfeit driver’s licenses.
Mr. Greenberg commended the investigative efforts of the USSS and Coral Springs Police Department, including the work of the Task Force Officers. This case was prosecuted by Assistant U.S. Attorney Jared M. Strauss.
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.
Former Army Staff Sergeant Sentenced in Illegal Kickbacks SchemeRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. has sentenced Cordera Hill (27, Tampa) to 24 months in federal prison for conspiracy and offering to pay and paying illegal kickbacks in connection with a federal health care benefit program. The Court also ordered Hill to forfeit more than $43,830.70, the proceeds traceable to his criminal conduct.
According to evidence presented at trial, in October 2014, Hill, a former member of the United States Army, agreed to become a sales representative for Centurion Compounding, Inc., a marketing firm in Wesley Chapel that utilized sales representatives as independent contractors to market compounded medications, including creams for pain and scars, to TRICARE beneficiaries. These creams had very high reimbursement rates, ranging from approximately $4,000 to $17,000 for a one-month supply. Centurion focused its promotional efforts on TRICARE beneficiaries because they knew TRICARE would pay claims for these compounded creams.
Hill paid, and conspired to pay, TRICARE beneficiaries to go to clinics at, among other places, a cosmetics store in a strip mall. Hill also paid for beneficiaries to fly to Tampa from Colorado and Hawaii for the purpose of visiting clinics to obtain compounding creams. The beneficiaries, who had access to free healthcare on base, would visit the cosmetics store after hours and on weekends to obtain prescriptions. Many of the beneficiaries did not need the creams and discarded them in the trash. Hill received $43,830.70 in commission payments from Centurion for referring TRICARE beneficiaries to doctors to obtain the creams. TRICARE paid out $728,909.82 for claims submitted on behalf of patients that Hill had recruited.
This case was investigated by the Department of Defense, Criminal Investigative Service; the United States Army Criminal Investigation Command, Major Procurement Fraud Unit; the United States Air Force Office of Special Investigations; the Federal Bureau of Investigation; and the U.S. Department of Health and Human Services, Office of Inspector General. It was prosecuted by Assistant United States Attorneys Mandy Riedel, Megan Kistler, Charles D. Schmitz, Simon Eth, and Rachelle DesVaux Bedke.
Federal Law Enforcement Seizes Large Amounts of Cocaine, Heroin and Fentanyl; More Than a Dozen Defendants ChargedRead the Press Release
CHICAGO — More than a dozen individuals are facing federal narcotics charges for their alleged roles in distributing cocaine, heroin and fentanyl on Chicago’s Northwest Side and western suburbs.
The federal investigation spanned more than two years and resulted in the seizures of approximately 52 kilograms of cocaine, 45 kilograms of heroin, more than 13 kilograms of fentanyl, and a pound of methamphetamines. Authorities used extensive undercover surveillance to uncover the alleged criminal activities. The probe was jointly led by the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation, and conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF) Chicago Strike Force.
Thirteen defendants are charged with various narcotics offenses in federal court in Chicago. Five of the defendants were arrested Wednesday, while five others were arrested earlier this year. Three defendants are considered fugitives and are being sought by law enforcement.
The charges were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the DEA; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the FBI. Substantial assistance was provided by the Chicago Police Department; U.S. Marshals Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Berwyn Police Department; Illinois State Police; DuPage County Metropolitan Enforcement Group; LaSalle County Sheriff’s Office; Downers Grove Police Department, and Peru, Ill., Police Department.
Authorities since 2015 have been investigating drug trafficking activities on the city’s Northwest Side and western suburbs, according to criminal complaints and affidavits filed in U.S. District Court in Chicago. The investigation uncovered numerous illegal drug transactions, including the distribution of three kilograms of cocaine on a street in Melrose Park, and the distribution of five kilograms of fentanyl at a gas station in Aurora.
The investigation revealed that AURELIO ABREGO, 45, of Chicago, and JOSE MIGUEL PEREZ, 54, of Chicago, worked together to obtain wholesale quantities of cocaine and heroin from others, and distributed the drugs to wholesale customers. The pair received the drugs from, among others, JAVIER MORENO, 49, of Chicago, and RICHARD ALVARADO, 28, of Chicago, for distribution to Abrego’s and Perez’s customers, the complaints state. FERNELLY LLANOS, 51, of Chicago, and PEDRO SAAVEDRA-FITZ, 28, of Chicago, served as brokers, supplying smaller distribution quantities of the narcotics to wholesale customers on credit – a practice known as “fronting” – and collected proceeds after the customers sold the narcotics, the charges state. The complaints identify one of the wholesale customers as FERNANDO GOMEZ, 30, of Schiller Park.
The complaint describes several drug transactions on the Northwest Side of Chicago. On July 17, 2015, Abrego and Perez distributed a kilogram of heroin to a customer of Saavedra-Fitz, the complaint states. At the time, a kilogram of heroin retailed in the Chicago area for approximately $49,000 to $54,000, the complaint states. On Sept. 29, 2015, Abrego allegedly distributed a kilogram of heroin to Llanos during a meeting in an alley in the Belmont Gardens neighborhood of Chicago. Authorities later seized the heroin after Llanos distributed it to another individual, according to the charges.
Abrego, Perez, Alvarado, Gomez and Llanos were arrested Wednesday on charges of drug distribution. U.S. Magistrate Judge Michael T. Mason scheduled detention hearings for July 28, 2017, Aug. 1, 2017, and Aug. 2, 2017.
Four defendants were charged in May: RICARDO CASTANEDA, 31, of Peru, Ill.; SANTOS GODINA, 32, of West Brooklyn, Ill.; EUGENE ALEXANDER, 44, of Bensenville; and JENNIFER REPPIN, 33, of Peru, Ill. They are awaiting trial on drug distribution charges.
One defendant, CARLOS FUENTES, 40, of Riverside, was charged in an indictment with drug distribution. Fuentes, who remains in federal custody since his arrest in January, has pleaded not guilty and is awaiting trial.
Saavedra-Fitz and Moreno are considered fugitives, as is ROLANDO ESTRADA, 41, of Elmwood Park. The three are facing drug distribution charges and are being sought by law enforcement.
The investigation was conducted under the umbrella of the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
The public is reminded that charges are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
The government has been represented by Assistant U.S. Attorneys Eric Pruitt, Matthew Kutcher, John Mitchell and Patrick Otlewski.
Fort Smith Man Sentenced to over 5 Years in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith , Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Gerardo Olivares, age 31, of Fort Smith, Arkansas was sentenced yesterday to 70 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. 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, agents with the Drug Enforcement Administration (DEA) were able to purchase multiple ounces of methamphetamine (135.0 grams of actual methamphetamine) on several different occasions throughout the months of April and June of 2014 from Olivares in the Fort Smith Arkansas area.
Olivares was indicted October 2015 and plead guilty March 2017.
Drug Enforcement Administration investigated the case, the Fort Smith Police Department assisted in the investigation. Assistant United States Attorney Candace Taylor 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
Everett Man Sentenced for Armed Bank RobberyRead the Press Release
BOSTON – An Everett man was sentenced today in federal court in Boston for armed bank robbery and firearms offenses.
Joseph G. Rachal, 65, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 101 months in prison and three years of supervised release. On April 27, 2017, Rachal was convicted by a federal jury of armed bank robbery, using a firearm during the commission of a crime of violence, and being a previously convicted felon in possession of a firearm and ammunition.
On Nov. 19, 2015, Rachal entered a branch of the TD Bank in Brighton, removed a black semi-automatic handgun, pointed it at the tellers and ordered them to turn over cash from the drawers. Rachal exited the bank with $2,397. When law enforcement arrived minutes later, they observed Rachal hiding behind a parked SUV one block from the bank. When the officers approached the vehicle and identified themselves as police, Rachal ran away carrying a black nylon bag. When officers caught Rachal, they searched his bag and found an active scanner tuned to a Boston Police radio frequency, a 9mm Glock semi-automatic pistol with one chambered round and a magazine containing 14 additional rounds, an additional magazine containing 15 rounds of 9mm ammunition, and $2,397.
Bank surveillance cameras captured images of the robbery, and the items recovered from the bag Rachal was carrying were consistent with the items observed on the video.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner William Evans; Brookline Police Chief Daniel C. O’Leary; Sharon Police Chief Tilden S. Kaufman; and Barnstable Police Chief Paul MacDonald made the announcement today. The investigation was conducted with the assistance of the FBI’s Violent Crime Task Force. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Essex County, New Jersey, Man Sentenced to 45 Months in Prison for Bank RobberyRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 45 months in prison for robbing a Valley National bank in Belleville, New Jersey, in April 2016, Acting U.S. Attorney William E. Fitzpatrick announced.
Donald Myer, 60, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with one count of bank robbery. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Myer admitted that during the robbery, he passed a note to a bank employee in which demanded money and threatened that he would use a gun.
In addition to the prison term, Judge Linares sentenced Myer to three years of supervised release and ordered him to pay $1,000 in restitution.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked the Belleville, Kearny, and Port Authority police departments for their contributions to the case.
The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Office in Trenton.
Eagle Butte Woman Sentenced for TheftRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Theft from Indian Tribal Organization was sentenced on July 24, 2017, by U.S. District Judge Roberto A. Lange.
Shanon LeCompte, a/k/a Shanon Morgan, age 41, was sentenced to 2 months in custody, followed by 2 years of supervised release, restitution in the amount of $1,805.97, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
LeCompte was indicted by a federal grand jury on January 19, 2017. She pled guilty on May 2, 2017.
LeCompte was employed by the Oriental Express in Eagle Butte in 2014 and 2015. While employed at Oriental Express, the defendant was given the business’ Personal Identification Number that allowed her to charge merchandise to Oriental Express’ account at the Lakota Thrifty Mart grocery store in Eagle Butte. LeCompte left her position at the Oriental Express and was later hired as an Assistant Manager at the Lakota Thrifty Mart, a business owned by the Cheyenne River Sioux Tribe.
The conviction stems from incidents between May 31, 2016, and October 22, 2016, when LeCompte used the Oriental Express’ Personal Identification Number to charge over $1,800.00 in merchandise at the Lakota Thrifty Mart for her own use.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
LeCompte was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault by Strangulation and Suffocation and Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on July 26, 2017, by U.S. District Judge Roberto A. Lange.
Allen Garreau, age 33, was sentenced to 42 months in custody, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100 for the Assault by Strangulation and Suffocation count. Garreau was sentenced to 18 months in custody, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100 for the Assault on a Federal Officer count.
Garreau was indicted by a federal grand jury on July 19, 2016. He pled guilty on April 17, 2017.On July 11, 2016, Garreau went to the apartment of Michelle Black Tail to spend time with their son. Black Tail Deer allowed Garreau inside of the apartment but he began making sexual advances towards her, which she rebuffed. Garreau became angry and assaulted Black Tail Deer. Garreau grabbed Black Tail Deer by the hair, threw her to the floor, kicked her, punched her in the face, and then began to strangle her. Black Tail Deer lost consciousness. Garreau stayed at the apartment all night. The next morning, he attempted to prevent her from going to work. Black Tail Deer was able to get away from Garreau when a co-worker came to the apartment to pick her up for work.
Black Tail Deer was taken to the hospital and the police were called. After taking a report from her, Officers with the Cheyenne River Sioux Tribe Police Department went to the apartment to make contact with Garreau. Garreau refused to open the door for the officers, and a maintenance worker had to unlock the apartment. Once inside, the officers found Garreau sitting on a bed in one of the bedrooms. He had a blanket pulled up over him and he had his arms around two small children. The officers made repeated requests for him to put the children down, to get up, and to walk out, but Garreau refused. When one of the officers attempted to approach Garreau, he told the officer that he needed to back up. The officer asked Garreau if he had anything or anything dangerous in his hands. Garreau told the officer words to the effect of “come find out.”
After several minutes of talking, Garreau stood up, showed his hands, and walked towards the officers. As the officers attempted to take him into custody, Garreau began to struggle with them. The officers were eventually able to take Garreau into custody.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Garreau was immediately turned over to the custody of the U.S. Marshals Service.Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after being deported.
Manuel Bienvenido Pimentel-Pimentel, 54, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to time served, one year of supervised release, and will be subject to deportation. On June 21, 2017, Pimentel-Pimentel pleaded guilty to one count of illegal reentry of a deported alien.
In May 2017, federal agents discovered Pimentel-Pimentel in Billerica and determined that he was illegally present in the United States. He had been previously deported in August 2010.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Distributing HeroinRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to distributing heroin.
Luis Humberto Arias Lara, 41, pleaded guilty to two counts of possession with intent to distribute and distribution of heroin. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Aug. 9, 2017.
On two occasions in September 2016 and January 2017, Arias Lara distributed heroin to an undercover officer in Waltham.
The charging statute provides for a sentence of no greater than 20 years in prison, a minimum of three years of supervised release, and a fine of $1 million. Arias Lara will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance was provided by the Suburban Middlesex County Drug Task Force. Assistant U.S. Attorneys Miranda Hooker and Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.
District of Columbia Woman Sentenced to Prison for Her Role in Scheme that Used Stolen Identities to Fraudulently Seek Tax RefundsRead the Press Release
A District of Columbia woman was sentenced today to 63 months in prison for her involvement in a scheme to fraudulently obtain millions of dollars in income tax refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; U.S. Attorney Channing D. Phillips for the District of Columbia; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office; Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Tarkara Cooper, 34, was convicted by a jury on Feb. 17 for conspiring to commit theft of government funds and defraud the United States and theft of public money. Two of her co-defendants, Tony Bryant, 55, and his son, Brian Bryant, 29, both of Clinton, Md., were also convicted at trial and are awaiting sentencing.
Cooper was part of a massive sophisticated stolen identity refund fraud scheme that involved a network of more than 130 people, many of whom were receiving public assistance. Conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, willing participants in the scheme. The returns filed listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia. According to court documents, the overall case involved the filing of at least 12,000 fraudulent federal income tax returns that sought at least $42 million in refunds.
Conspirators played various roles in the scheme: stealing identifying information; allowing their personal identifying information to be used; creating and mailing fraudulent federal tax returns; allowing their addresses to be used for receipt of the refund checks; cashing the refund checks; providing bank accounts into which the refund checks were deposited and forging endorsements of identity theft victims on the refund checks. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes. To date, approximately two dozen participants in this scheme have pleaded guilty.
According to the evidence presented at trial, from approximately April 2010 through June 2012, Cooper and the Bryants participated in claiming $4,959,310 in fraudulent refunds, of which the IRS paid out approximately $2,285,717. Cooper agreed to allow her residence to be used for the delivery of tax refund checks, and was paid by a co-conspirator when she provided the tax refund checks to him. The Bryants deposited refund checks fraudulently obtained by others into accounts that they controlled.
In addition to the term of prison imposed, U.S. District Judge Rosemary M. Collyer ordered Cooper to serve three years of supervised release and to pay $1,926,958.14 in restitution to the IRS. She also ordered a forfeiture money judgment of $16,750.
Acting Deputy Assistant Attorney General Goldberg, U.S. Attorney Phillips, Special Agent in Charge Lappin, Inspector in Charge Wemyss and Assistant Inspector General Phillips commended the special agents who conducted the investigation and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein; Assistant U.S. Attorney Chrisellen Kolb; Paralegal Specialists Jessica Mundi, Aisha Keys, and Donna Galindo; former Paralegal Specialist Julie Dailey; Litigation Technology Specialist Ron Royal; Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Advocate Tonya Jones. They also expressed appreciation for the work of Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran of the Tax Division, who worked on the case.
Finally, they commended the work of Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
District of Columbia Woman Sentenced to 63 Months in Prison for Her Role in Scheme That Used Stolen Identities to Fraudulently Seek Tax RefundsRead the Press Release
WASHINGTON – A District of Columbia woman was sentenced today to 63 months in prison for her involvement in a scheme to fraudulently obtain millions of dollars in income tax refunds, announced U.S. Attorney Channing D. Phillips; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Special Agent in Charge Kimberly Lappin of the Internal Revenue Service Criminal Investigation (IRS-CI) Washington D.C. Field Office; Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service, Washington Division, and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Tarkara Cooper, 34, was convicted by a jury on Feb. 17, 2017, for conspiring to commit theft of government funds and defraud the United States and theft of public money. Two of her co-defendants, Tony Bryant, 55, and his son, Brian Bryant, 29, both of Clinton, Md., were also convicted at trial and are awaiting sentencing.
Cooper was part of a massive sophisticated stolen identity refund fraud scheme that involved a network of more than 130 people, many of whom were receiving public assistance. Conspirators fraudulently claimed refunds for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of, and refunds were issued to, willing participants in the scheme. The returns filed listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia. According to court documents, the overall case involved the filing of at least 12,000 fraudulent federal income tax returns that sought at least $42 million in refunds.
Conspirators played various roles in the scheme: stealing identifying information; allowing their personal identifying information to be used; creating and mailing fraudulent federal tax returns; allowing their addresses to be used for receipt of the refund checks; cashing the refund checks; providing bank accounts into which the refund checks were deposited and forging endorsements of identity theft victims on the refund checks. The false returns typically reported inflated or fictitious income from a sole proprietorship and claimed phony dependents to generate an Earned Income Tax Credit, a refundable federal income tax credit for working families with low to moderate incomes. To date, approximately two dozen participants in this scheme have pleaded guilty.
According to the evidence presented at trial, from approximately April 2010 through June 2012, Cooper and the Bryants participated in claiming $4,959,310 in fraudulent refunds, of which the IRS paid out approximately $2,285,717. Cooper agreed to allow her residence to be used for the delivery of tax refund checks, and was paid by a co-conspirator when she provided the tax refund checks to him. The Bryants deposited refund checks fraudulently obtained by others into accounts that they controlled.
In addition to the term of prison imposed, U.S. District Judge Rosemary M. Collyer ordered Cooper to serve three years of supervised release and to pay $1,926,958 in restitution to the IRS. She also ordered a forfeiture money judgment of $16,750.
U.S. Attorney Phillips, Acting Deputy Assistant Attorney General Goldberg, Special Agent in Charge Lappin, Inspector in Charge Wemyss, and Assistant Inspector General Phillips commended the special agents who conducted the investigation and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein; Assistant U.S. Attorney Chrisellen Kolb; Paralegal Specialists Jessica Mundi, Aisha Keys, and Donna Galindo; former Paralegal Specialist Julie Dailey; Litigation Technology Specialist Ron Royal; Investigative Analysts William Hamann and Zachary McMenamin, and Victim/Witness Services Coordinator Tonya Jones. They also expressed appreciation for the work of Trial Attorneys Jeffrey B. Bender, Thomas F. Koelbl, and Jessica Moran of the Tax Division, who worked on the case.
Finally, they commended the work of Assistant U.S. Attorneys Ellen Chubin Epstein and Michelle Bradford of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case, as well as Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
District Court Enters Permanent Injunction Against Tennessee Company and Its CEO to Stop Distribution of Unapproved and Misbranded DrugsRead the Press Release
The U.S. District Court for the Eastern District of Tennessee entered a consent decree of permanent injunction against Crown Laboratories Inc. and the firm’s Chief Executive Officer, Jeffrey Bedard, to stop the distribution of unapproved and misbranded drugs, the Department of Justice announced today. The products at issue include urea creams and lotions intended to treat a variety of skin ailments.
The Department filed a complaint in the Eastern District of Tennessee on March 1, at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged that the defendants violated the federal Food, Drug and Cosmetic Act by, among other things, introducing unapproved and misbranded drugs into interstate commerce. Specifically, the complaint alleges that defendants sold a series of dermatological creams, despite the absence of FDA approval or a sufficient showing that these products were safe and effective.
“The public has a right to assume that drugs in the marketplace are safe, effective, have obtained proper approvals, and are labeled with the information necessary to allow for proper use,” said Acting Assistant Attorney General Chad Readler of the Justice Department’s Civil Division. “Where drug manufacturers violate these fundamental requirements, the Department of Justice will continue to work aggressively with the FDA to ensure that the pharmaceutical industry follows the rules. Doing so is necessary to protect American consumers.”
As detailed in the complaint, Crown manufactures a variety of prescription and OTC drugs including prescription urea cream and lotion. The products referenced in the complaint include Rea Lo (Urea 40 percent) Cream, Rea Lo (Urea 40 percent) Lotion, Rea Lo 39 (Urea 39 percent) Cream, Dermasorb XM Complete Kit (Urea 39 persent cream and moisturizer), and Sodium Sulfacetamide 10 percent and Sulfur 5 percent (Sodium Sulfacetamide).
As noted in the complaint, the various urea based products were sold as products intended to treat a series of dermatological conditions, such as dry, rough skin, xerosis, ichthyosis, skin cracks and fissures, dermatitis, eczema, psoriasis, keratosis, and calluses. Sodium Sulfacetamide is intended to treat acne vulgaris, acne rosacea, and seborrheic dermatitis. As products designed to provide dermatological treatment, these drugs required FDA approval for their intended uses – approval that was lacking for all of these products. Distributing unapproved drugs in interstate commerce is a violation of the federal Food, Drug, and Cosmetic Act.
In conjunction with the filing of the complaint, the defendants agreed to settle the case and to be bound by a permanent injunction. The injunction requires Crown to stop the manufacturing, selling and introducing into interstate commerce any Rea Lo (Urea 40 percent) Cream, Rea Lo (Urea 40 percent) Lotion, Rea Lo 39 (Urea 39 percent) Cream, Dermasorb XM Complete Kit, Sodium Sulfacetamide, or any drug labeled similarly to such drugs and containing the same active ingredient(s), unless and until an application has been filed with the FDA and approved by the agency.
In addition, within 20 days after the district court’s order, the defendants are required, among other things, to give FDA written notice that they are prepared to destroy all Rea Lo (Urea 40 percent) Cream, Rea Lo (Urea 40 percent) Lotion, Rea Lo 39 (Urea 39 percent) Cream, Dermasorb XM Complete Kit, Sodium Sulfacetamide, and any unapproved drug labeled similarly to such drugs and containing the same active ingredient(s).
The government is represented by Trial Attorney Mary M. Englehart of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Susan Williams of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Des Moines Tax Preparer Convicted of Tax FraudRead the Press Release
DES MOINES, IA – A Des Moines area tax preparer was convicted of preparing and presenting false tax returns, wire fraud, and aggravated identity theft following a three-day jury trial, announced United States Attorney Kevin E. VanderSchel. On July 26, 2017, a jury found Lony Tap Gatwas, 48, of Ames, Iowa, guilty of four counts of wire fraud, seven counts of aggravated identity theft, and seven counts of preparing and presenting false tax returns. Sentencing has been scheduled for December 1, 2017, at 9 a.m., before United States District Court Judge Rebecca Goodgame Ebinger.
Gatwas was charged with engaging in a scheme to defraud the Internal Revenue Service by preparing and filing personal income tax returns listing false dependents. During trial, the government presented evidence Gatwas placed his own children, as well as other children, on his clients’ personal income tax returns as dependents, when these children had no relationship to the taxpayers, did not live with the taxpayers, and the taxpayers provided no financial support for the children.
Gatwas falsely inflated his clients’ refunds by thousands of dollars by placing false dependents on his clients’ tax returns. Clients’ testimony established Gatwas charged them an average of $1,500 for each false dependent he put on their return. When his clients were audited, Gatwas instructed at least two of the clients to lie to IRS Revenue Agents about their relationship with the false dependents.
Preparing and presenting a false tax return is punishable by a maximum of three years imprisonment and a maximum $100,000 fine. The crime of wire fraud has a maximum prison term of 20 years and up to a $250,000 fine. Gatwas faces a minimum prison term of two years and up to a $250,000 fine for the crime of aggravated identity theft.
The Internal Revenue Service – Criminal Investigation conducted the investigation. This case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Colorado Man Pleads Guilty to Marijuana and Money Laudering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Dashawn Abrams, 27, of Denver, CO, pleaded guilty to conspiracy to possess with intent to distribute and to distribute marijuana, and money laundering conspiracy before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between April 2015, and September 2015, the defendant conspired with Damarcus Hennings, Shaquata Hennings, Arthur Clark, Shahana Beaver and Janice Humphrey, to ship, receive, and distribute more than 50 packages containing marijuana from Denver, Colorado to Buffalo, New York. The defendants also conspired to send the cash proceeds from resulting marijuana sales back to their marijuana source of supply in Denver.
Damarcus Hennings, Shaquata Hennings, Shahana Beaver and Janice Humphrey have been convicted. Charges are pending against Arthur Clark. 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 plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division.Sentencing is scheduled for October 24, 2017 before Judge Wolford.
Citizen of the Dominican Republic Sentenced to 87 Months in Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that WILMER ANTONIO GOMEZ-RODRIGUEZ, 30, a citizen of the Dominican Republic last residing in New York, N.Y., was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 87 months of imprisonment, followed by five years of supervised release, for trafficking heroin. Judge Bryant also ordered GOMEZ-RODRIGUEZ to pay a $15,000 fine.
On September 10, 2015, a jury found GOMEZ-RODRIGUEZ guilty of one count of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin, and one count of possession with intent to distribute, and distribution of, 100 grams or more of heroin.
Accoring to trial testimony and the evidence disclosed during the trial, this matter stems from an investigation by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) and the Norwalk Police Department into suspected cocaine and heroin distribution by Omar Andrade. In September 2014, Andrade agreed to provide one kilogram of heroin to a DEA Task Force officer acting in an undercover capacity. Andrade, GOMEZ-RODRIGUEZ and Joel A. Estrella-Disla, were arrested on September 30, 2014, after they delivered approximately one kilogram of heroin to a pre-arranged location in Norwalk.
GOMEZ-RODRIGUEZ has been detained since September 10, 2015. He faces immigration proceedings when he is released from prison.
Andrade and Estrella-Disla each pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. On January 6, 2016, Andrade, a citizen of Mexico, was sentenced to 70 months of imprisonment. On March 2, 2016, Estrella-Disla, a citizen of the Dominican Republic, was sentenced to 12 months and one day of imprisonment.
This case was prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Citizen of the Dominican Republic Pleads Guilty to Illegally Reentering the U.S. after DeportationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that LUIS MANUEL RODRIGUEZ BURGOS, 36, a citizen of the Dominican Republic, pleaded guilty yesterday in Bridgeport federal court to one count of illegal reentry of a removed alien.
According to court documents and statements made in court, RODRIGUEZ BURGOS was admitted to the U.S. as a lawful permanent resident in 1995. In September 2005, RODRIGUEZ BURGOS was convicted in Arizona of attempted transportation of narcotic drugs for sale and was sentenced to more than three years of imprisonment. In August 2006, he was deported from the U.S. to the Dominican Republic.
In August 2012, local law enforcement encountered RODRIGUEZ BURGOS in New York City and alerted federal immigration authorities. In October 2012, he was again removed to the Dominican Republic.
RODRIGUEZ BURGOS illegally reentered the U.S. and, in October 2015, was arrested in Bridgeport for narcotics offenses. He pleaded guilty in state court to sale of certain illegal drugs and conspiracy, and is currently scheduled to be sentenced on those offenses in October
On this federal immigration offense, RODRIGUEZ BURGOS is scheduled to be sentenced by U.S. District Judge Stefan R. Underhill on October 18, at which time he faces a maximum term of imprisonment of 10 years.
This matter has been investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case in being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chelsea Store Owner Sentenced for Trafficking Counterfeit MerchandiseRead the Press Release
BOSTON – A Chelsea man was sentenced yesterday in federal court in Boston for trafficking counterfeit merchandise at three retail locations in the Boston area.
Arif Ali Shah, 66, was sentenced by U.S. District Court Judge William G. Young to 18 months in prison, two years of supervised release, a $5,000 fine, and ordered to pay restitution in the amount of $145,531. In May 2017, Shah pleaded guilty to one count of trafficking in counterfeit goods.
From approximately 2005 to February 2015, Shah knowingly sold counterfeit merchandise at three retail stores he owns: Nadia’s in Dorchester; East Boston Wireless in East Boston; and Todo Wireless in Chelsea. Shah sold counterfeit Apple, Samsung, and Speck components at all three retail locations. He also sold a variety of counterfeit apparel and accessories, including Chanel, Michael Kors, Nike, Prada, Timberland, and Uggs. Shah purchased the counterfeit merchandise from foreign and domestic sources and purchased a number of the counterfeit cell phone components from a domestic supplier, Flexqueen, the owner of which was prosecuted in California.
Acting United States Attorney William Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Amy Harman Burkart of Weinreb’s Cybercrime Unit prosecuted the case.
Chairman of Macau-Based Real Estate Development Company Convicted at Trial on All Counts in in Connection with United Nations Bribery SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that NG LAP SENG, a/k/a “David Ng,” a/k/a “Wu Liseng” (“NG”), was convicted after a four-week trial on six counts in connection with his multi-year scheme to pay more than $1.3 million in bribes to ambassadors of the United Nations (“UN”).
Acting U.S. Attorney Joon H. Kim said: “In his unbridled pursuit of even greater personal fortune, billionaire Ng Lap Seng corrupted the highest levels of the United Nations. Through bribes and a no show job, Ng turned leaders of the league of nations into his private band of profiteers. Ng’s journey from a Macau real estate mogul to convicted felon should serve as a cautionary tale to all tempted to follow his path. If you bring corruption to New York – whether to the State Capitol in Albany or to the halls of the U.N. General Assembly – your journey may very well end in a Manhattan federal courtroom, with a unanimous jury announcing your guilt.”
According to the Complaint, the Indictment, and evidence presented at trial, NG, the chairman of the Sun Kian Ip Group (the “Macau Real Estate Development Company”), conspired with and paid bribes to Francis Lorenzo, a former UN Deputy Ambassador from the Dominican Republic, and John W. Ashe, the late former Permanent Representative of Antigua and Barbuda to the UN and the 68th President of the UN General Assembly (“UNGA”). With the assistance of Jeff C. Yin, an accountant and co-conspirator who worked with NG and others and previously pleaded guilty, NG orchestrated a scheme with the principal objective of obtaining the formal support of the UN for a multibillion-dollar facility that NG hoped to build in Macau using the Macau Real Estate Development Company (the “Macau Conference Center”). NG wanted the Macau Conference Center to serve as a location for meetings, discussions, forums, and other events associated with the UN. In particular, he wanted it to serve as the permanent home of the annual “Global South-South Development Expo,” which is run by the UN Office for South-South Cooperation, and is hosted in a different country or city every year.
NG agreed to and did bribe Ambassador Ashe and Ambassador Lorenzo (together, the “Ambassadors”) in exchange for their agreement to use their official positions to advance NG’s interest in obtaining formal UN support for the Macau Conference Center. As the evidence demonstrated at trial, NG paid the Ambassadors in a variety of forms. For example, NG appointed Ambassador Lorenzo as the President of South-South News, a New York-based company—funded by NG—which described itself as a media platform dedicated to advancing the implementation of the UN’s Millennium Development Goals. NG provided bribe payments to Ambassador Lorenzo through South-South News, as well as, among other things, by transmitting payments from Macau to a company in the Dominican Republic affiliated with Ambassador Lorenzo’s brother (the “Dominican Company”). Through South-South News, NG also made payments to Ambassador Ashe, including to Ambassador Ashe’s wife, who was paid in her capacity as a “consultant” to South-South News, and to an account that Ambassador Ashe had established, purportedly to raise money for his role as President of UNGA. NG also provided bribes through cash and wire payments to Ambassador Ashe and Ambassador Lorenzo.
One of the actions that the Ambassadors agreed to take and took, in exchange for bribe payments, to advance NG’s objectives was to submit an official document to the then-UN Secretary-General in support of the Macau Conference Center (the “UN Document”). The UN Document claimed that there was a need to build the Macau Conference Center to support the UN’s global development goals. Ambassador Ashe, aided by Ambassador Lorenzo, initially submitted the UN Document to the UNGA in or about late February 2012. More than a year later, at NG’s behest, the Ambassadors revised the UN Document to refer specifically to NG’s company, the Macau Real Estate Development Company, as a partner in the Macau Conference Center project. The UN Document requested that the Secretary-General circulate the UN Document “as a document of the sixty-sixth session of the General Assembly,” under a specific item of the official UNGA agenda. The Secretary-General followed this request, thereby making the UN Document an official part of the UNGA record.
Five other defendants have been charged in this matter. Co-conspirators Lorenzo, Yin and Heidi Hong Piao have pleaded guilty and are awaiting sentencing. Shiwei Yan has pleaded and was sentenced to 20 months in prison. Co-defendant Ashe passed away in 2016 and the charges against him were dismissed.
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NG, 69, of Macau, China, was convicted on one count of conspiracy to commit bribery and to violate the Foreign Corrupt Practices Act; one count of paying illegal bribes and gratuities; two counts of violating the Foreign Corrupt Practices Act; one count of conspiracy to commit money laundering; and one count of money laundering. The conspiracy to commit bribery conviction carries a maximum penalty of five years in prison, and the bribery conviction carries a maximum of 10 years in prison. The Foreign Corrupt Practices Act convictions each carry a maximum of five years in prison. The conspiracy to commit money laundering and money laundering convictions each carry a maximum of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Kim praised the outstanding investigating work of the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation.
This case is being prosecuted by the Office’s Public Corruption Unit and the Criminal Division’s Fraud Section. Assistant U.S. Attorneys Daniel C. Richenthal, Janis M. Echenberg, Douglas S. Zolkind, and Trial Attorney David A. Last of the Fraud Section are in charge of the prosecution.
Canadian Man Sentenced on Drug Charges Following Extradition to United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Alvin Randhawa, 36, of Richmond, British Columbia, Canada, who was convicted of conspiracy to export from the United States into Canada five kilograms or more of cocaine, was sentenced to 87 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between July 2010 and May 2011, Randhawa conspired with others to smuggle cocaine into Canada from the United States via several international bridges including ones in the Buffalo-Niagara region. Investigators believe that this organization trafficked approximately 2,000 kilograms of cocaine (approximately $80,000,000 in value) during the course of the conspiracy.
Randhawa was indicted along with Gursharan Singh and Harinder Dhaliwal, all three have been convicted. Also charged and convicted in the conspiracy were Ravinder Arora, Michael Bagri and Parminder Sidhu.
Today’s sentencing is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly; Officers from the United States Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations; the Peel Regional Police Department, under the direction of Chief Jennifer Evans; the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region; and the Toronto Police, under the direction of Chief William Blair.
Brooklyn Man Pleads Guilty to Drug Trafficking OffenseRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that on July 26, 2017, Taheem Mungo, 35, of Brooklyn, New York, pleaded guilty to a federal charge of possessing crack cocaine and heroin with the intent to distribute.
According to court documents and statements made in court, on September 1, 2016, the New Hampshire State Police conducted a traffic stop on a vehicle in which Mungo was a passenger. The stop occurred on Interstate 95 around Hampton, New Hampshire. Police discovered that Mungo had an active arrest warrant out of New York, and he was arrested. Mungo then consented to a search of his luggage, which revealed approximately 172 grams of crack cocaine and approximately 10 grams of heroin.
Mungo’s sentencing is scheduled for November 14, 2017.
This matter was investigated by the New Hampshire State Police and is being prosecuted by Assistant United States Attorney Shane B. Kelbley.
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Brockton Man Indicted on Firearms OffenseRead the Press Release
BOSTON – A Brockton man was indicted yesterday in federal court in Boston on a federal firearms charge.
Dennis Afonso, 33, was indicted on one count of being a felon in possession of a firearm and ammunition. According to the indictment, on May 3, 2017, law enforcement officers in Brockton found Afonso in possession of a Cobra .380 caliber pistol with an obliterated serial number and three rounds of .380 caliber ammunition.
Afonso was previously convicted in 2009 of distribution of cocaine base. He was sentenced to 60 months in prison and had recently completed his period of supervised release when he was found in possession of a firearm on May 3, 2017.
The 2009 conviction was the result of a federal investigation into drug trafficking and related gang activity in the Green Street area of Brockton. According to court documents, Afonso was a member of the Green Street gang, which operates on the north side of Brockton and rivals gangs from the south side of the city. During the course of the investigation, an undercover officer made dozens of controlled purchases of cocaine base from dealers, including Afonso. During that time, Green Street gang members made a verified threat to kill police officers in retaliation for the shooting and death of John Parks by Brockton Police Officers in November 2008.
The charge of being a felon in possession of a firearm and ammunition provides for a mandatory minimum sentence of 15 years and up to life in prison, five years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Brockton Police Chief John Crowley made the announcement. Assistant U.S. Attorney Glenn A. MacKinlay of Weinreb’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brockton Man Charged with Illegal Firearm PossessionRead the Press Release
BOSTON – A Brockton man with two prior federal firearm convictions was indicted today in federal court in Boston on a federal firearms charge.
Darnell Upshaw, 35, was charged with one count of being a felon in possession of a firearm and ammunition.
On May 10, 2017, Upshaw was found in Brockton in possession of a handgun, two rounds of 9mm ammunition, and three rounds of .38 caliber ammunition.
The charge of possessing a firearm and ammunition after being convicted of a felony provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley made the announcement today. Assistant U.S. Attorney Kelly Begg Lawrence of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
British Expatriate Sentenced to Nine Years in Prison for Role in Wire Fraud SchemeRead the Press Release
SAN JOSE – Laurence Miles was sentenced to 108 months in federal prison for conspiracy to commit wire fraud, wire fraud, and money laundering, announced United States Attorney Brian J. Stretch, Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf, and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down yesterday by the Honorable Lucy H. Koh, U.S. District Judge, after Miles pleaded guilty to the charges on April 6, 2017.
Miles, a 76 year-old citizen of Great Britain, had been living in Southern California during the time of the offenses. According to his guilty plea, since at least 2009 and continuing through December of 2015, he defrauded scores of victims of at least $5.6 million. Miles admitted that along with his four co-defendants, Shirley Molina, 70, of Hawthorne, Calif., Munsif Shirazi, 49, of Bell Canyon, Calif., Robert Stephens, 65, of Napa, Calif., and Rayan Lakshmanan, 48, of Davis, Calif., he told people that an heiress to a billion-dollar estate was very ill and was in need of medical attention. Miles and his co-defendants convinced their victims that the heiress’s money was tied up in a secret probate case and that, in return for money to help pay for the heiress’s medical costs, Miles and his accomplices would return to their victims $1,000 for every $1 they invested in the heiress’s estate. Miles and his accomplices promised their victims that they would see the returns on their investments after the money was released from probate. In truth, there was no dying heiress with a large estate. Instead, Miles and his codefendants used the victims’ money to support their own lifestyles. On December 3, 2015, a federal grand jury indicted Miles and charged him with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; 22 counts of wire fraud, in violation of 18 U.S.C. § 1343; and 4 counts of money laundering, in violation of 18 U.S.C. § 1957. Pursuant to his plea agreement, Miles pleaded guilty to one count of each of the charges and the remaining charges were dismissed. Each of Miles’ co-defendants have pleaded guilty to their respective roles in the conspiracy and will be sentenced later this year.
In sentencing Miles, Judge Koh found that Miles had been conducting the scheme for more than a decade. The Court concluded Miles obtained millions of dollars from his victims, had been a leader of the fraud, controlled the money, and exercised authority over some of his accomplices.
In addition to the 9-year prison term, Judge Koh ordered Miles to serve a three-year period of supervised release and to pay a forfeiture money judgement of $5,628,765. Judge Koh ordered Miles to begin serving his sentence October 20, 2017, immediately after a hearing to determine the amount of restitution he owes his victims. Judge Koh further ordered that until the restitution hearing, Miles will remain on electronic monitoring and must remain at his residence with limited exceptions.
Assistant U.S. Attorneys Amber Rosen and Patrick Delahunty prosecuted the case with the assistance of Nina Williams and Susan Kreider. The prosecution is the result of an investigation by the FBI and IRS.
Authorities in San Antonio Arrest Alleged Eastside Drug Dealer on Federal ChargeRead the Press Release
In San Antonio last night, authorities arrested 36-year-old Charles Lee Bethany for possessing with intent to distribute 28 grams or more of cocaine base announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division and San Antonio Police Chief William McManus.
A criminal complaint and supporting affidavit filed in federal court this morning alleges that an investigation by the FBI and the San Antonio Police Department developed information that Bethany was possessing controlled substances at a residence he controlled in the 600 block of J Street in San Antonio. On July 21, 2017, investigators searched the premises with a warrant and seized approximately 56 grams of cocaine powder and 56 grams of crack cocaine. Information indicated that Bethany, who was not present, learned of the search. Officers of the San Antonio Police Department Repeat Offenders Project learned of his whereabouts on Wednesday and arrested him.
The affidavit also indicates that information obtained by investigators suggests that Bethany may have been the intended target of a drive-by shooting in the 400 block of Spriggsdale that occurred shortly after 4:00 p.m., on July 19, 2017. That shooting was followed by another the same day, shortly before midnight in the 200 block of Hub Street, in which a 4-year-old boy was killed. Surveillance video indicates that later that night a number of individuals appearing to be in possession of a pistol and a rifle left the location on J Street about 12 minutes before the shooting on Hub Street. According to the surveillance, those individuals returned to the J Street address moments after the shooting. The investigation into those shootings continues.
“The arrest of Charles Bethany is part of our joint effort—the FBI, the San Antonio Police Department, the Bureau of Alcohol, Tobacco, and Firearms, the U.S. Attorney’s Office and the Bexar County District Attorney’s Office—to end the senseless shootings in San Antonio. This investigation continues along with our on-going work to stop violent crime, using whatever tools are legally available to us under federal and state laws. We ask that anyone having information about this case or other acts of violence contact the SAPD or the FBI,” stated United States Attorney Richard L. Durbin, Jr.
Bethany remains in federal custody. A detention hearing is scheduled for 9:00am on August 1, 2017, before United States Magistrate Judge Henry J. Bemporad in San Antonio. Upon conviction of the drug charge, Bethany faces between 5 and 40 years in federal prison.
Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Attorney General Jeff Sessions Announces Public Safety Officers to Be Awarded Medal of ValorRead the Press Release
Today Attorney General Jeff Sessions is honored to award the Public Safety Officer Medal of Valor to the following law enforcement officers and first responders for their heroic and extraordinary services:
- Special Agents David Bailey and Crystal Griner of the United States Capitol Police and Officers Nicole Battaglia, Kevin Jobe, and Alexander Jensen of the Alexandria Police Department for their heroic efforts on the morning of June 14, 2017. President Donald J. Trump presented these officers with the medals today at a White House ceremony.
Recipients approved by the Attorney General to receive the 2015-2016 Medal of Valor at a future ceremony are:
- Corporals Rafael Ixco and Chad Johnson and Deputies Shaun Wallen and Bruce Southworth (San Bernardino County Sheriff's Department), and Officers Nicholas Koahou and Brian Olvera (San Bernardino Police Department) for their heroic efforts to end the December 2015 terrorist attack in San Bernardino, California.
- Lieutenant William Buchanan (Avery County Sheriff's Office, North Carolina) and Emergency Medical Technician Sean Ochsenbein (Putnam County Rescue Squad, Tennessee) for their poise in rescuing a trapped driver from a burning car in February 2016.
- Firefighter/Harbor Patrol Officer David Poirier Jr. (Redondo Beach Fire Department, California) for single-handedly rescuing three injured people from dangerous surf in February 2016.
- Chief Douglas Schroeder (Hesston Police Department, Kansas) for ending a deadly workplace assault by a gunman in February 2016.
- Engineer Stephen Gunn (Peoria Fire-Medical Department, Arizona) for rescuing a man from a burning house without regard for his own safety in April 2016.
- Patrolman Andrew Hopfensperger Jr. (Antigo Police Department, Wisconsin) for saving many lives during a gunman’s assault on students at a prom in April 2016.
These recipients were recommended by the Medal of Valor Review Board and approved by the Attorney General. The Medal of Valor is the highest national award for public safety officers and is given to recognize an act of extraordinary valor above and beyond the call duty.
The Bureau of Justice Assistance will continue receiving nominations for the 2016-2017 class through Monday, July 31, 2017. Nominations may be submitted here: https://www.bja.gov/programs/medalofvalor/index.html.
Attleboro, Mass., Resident to Plead Guilty to Child Pornography ChargeRead the Press Release
PROVIDENCE – According to documents filed in U.S. District Court in Providence, Richard F. Woodhead, 54, of South Attleboro, Mass., has agreed to plead guilty to an information charging him with attempted receipt of child pornography, announced Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
Woodhead was arrested on April 6, 2017, by Homeland Security Investigation agents and members of the Rhode Island State Police Internet Crimes Against Children Task Force following a court authorized search of his residence.
According to court documents, Woodhead and the government agree to the facts that he used a computer to store and view material involving a prepubescent minor or a minor who has not attained the age of 12; the offense involved between 10 but less than 150 images; and that he caused, transported, permitted or sought a minor to engage in sexually explicit conduct for the purpose of producing child pornography.
Attempted receipt of child pornography is punishable by statutory penalties of between 5-20 years imprisonment followed by a term of up to lifetime supervised, and a fine of $250,000.
This case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
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Armed Robber Pleads GuiltyRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Patrick D. Cummings (44, Pinellas County) has pleaded guilty to interference with commerce by robbery and brandishing a firearm during and in relation to a crime of violence. He faces a maximum penalty of 20 years in federal prison on the robbery charge, followed by a mandatory minimum consecutive prison term of seven years, up to life, on the firearm charge.
According to court documents, at approximately 4:09 a.m., on March 24, 2017, Cummings entered a Walgreens pharmacy in St. Petersburg, pressed a handgun against a cashier, and demanded all of the money from her register. Cummings repeatedly threatened to shoot the cashier. He then stole approximately $374 and ran away.
This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as part of the St. Petersburg Violent Crime Reduction Initiative. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl McCrary, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Albany Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Amado Colon, age 21, of Albany, New York, pled guilty today to distributing, receiving and possessing child pornography.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Colon admitted that in June 2014, he posted child pornography images to an image-sharing web site based in Russia, allowing visitors to the site to view the images. He also received, from others, the username and password information for 8 Dropbox remote storage accounts, each of which contained hundreds of images of child pornography. Colon then took exclusive control over these accounts, and the child pornography in them, by changing the accounts’ usernames and passwords. Colon also admitted to possessing child pornography files on several electronic devices found in his house.
Colon, who was ordered to jail upon his plea of guilty, faces at least 5 years and up to 20 years in prison, to be followed by supervised release of at least 5 years and up to life, and a maximum $250,000 fine, when he is sentenced on November 20, 2017 by Senior United States District Judge Gary L. Sharpe. Sentences are imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case was investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant United States Attorney Michael Barnett.
26 July 2017
York Man Indicted for Possession of A FirearmRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ernest Dyer, age 44, of York, Pennsylvania, was indicted by a federal grand jury for possessing a firearm after having been previously convicted of a felony.
According to U.S. Attorney Bruce D. Brandler, the indictment alleges that Dyer had a firearm in his possession in his home in York, Pennsylvania, when he was arrested on a local warrant on July 7, 2017. During the investigation, agents and detectives seized a Hi-Point .40 caliber semi-automatic handgun, loaded with ten .40 caliber cartridges in the magazine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Northern York County Regional Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Meredith A. Taylor is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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West Palm Beach Man Convicted of Conspiring with his Brother, a United States Postal Service Letter Carrier,Read the Press Release
Today, a federal jury convicted a West Palm Beach resident of conspiring with his brother, a United States Postal Service Letter Carrier, to commit access device fraud and aggravated identity theft.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Maximo Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Cissy Proctor, Executive Director, Florida Department of Economic Opportunity (DEO), made the announcement.
Mikel Clotaire was convicted following a three-day trial in West Palm Beach, Florida of conspiring to commit access device fraud, access device fraud, and five counts of aggravated identity theft. Sentencing is scheduled for October 12, 2017, before United States District Court Donald M. Middlebrooks.
According to the court record, including evidence introduced at trial, Clotaire engaged in a scheme to obtain fraudulent re-employment benefits from DEO. Clotaire’s brother was working at the time as a letter carrier for the United States Postal Service in Palm Beach Gardens, Florida. At least eight fraudulent unemployment applications, using stolen identities, were then submitted to DEO and resulted in the issuance of Florida Visa debit cards. The debit cards were mailed through interstate commerce to the residential addresses on the postal route. The cards were ultimately transferred to Clotaire and at least two other co-conspirators and used to make withdrawals from ATMs. As a result of the fraudulent scheme, the State of Florida sustained approximately $25,000 in financial losses.
Mr. Greenberg commended the investigative efforts of the DOL-OIG, USPS-OIG, USPIS and DEO. This case is being prosecuted by Assistant U.S. Attorney Adam McMichael.
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.
Waterloo Man to Prison for Second Felon in Possession ConvictionRead the Press Release
A convicted felon who possessed a loaded handgun, a digital scale, and marijuana in December 2016, was sentenced today to seven years in federal prison.
John Daniel Forehand III, age 31, from Waterloo, Iowa, received the prison term after a March 20, 2017, guilty plea to being a felon in possession of a firearm.
At the guilty plea, Forehand admitted he possessed a loaded Smith and Wesson .22 caliber pistol on December 16, 2016. Evidence at an earlier hearing showed that Waterloo police officers found the pistol during a traffic stop. The pistol, which had an obliterated serial number, was in a bag that also contained a digital scale and a children’s cup, both of which also had marijuana residue. Forehand had previously been convicted of felony possession with intent to distribute marijuana and of being a felon in possession of a firearm.
Forehand was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Forehand was sentenced to 84 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Forehand is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Waterloo Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02006-LRR.
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Waterloo Armed Career Criminal Sentenced to 15 Years in Federal Prison for Selling Stolen FirearmRead the Press Release
A man who sold a stolen firearm during an undercover sting operation was sentenced today to 15 years in federal prison.
Vernon Montrell Webster, age 44, from Waterloo, Iowa, received the prison term after a March 17, 2017, guilty plea to being a felon in possession of a firearm.
At the guilty plea, Webster admitted he unlawfully possessed a 44 Magnum revolver and 30 rounds of ammunition in July 2015. Testimony at an earlier hearing showed that Webster sold the revolver, which had previously been stolen, and ammunition to another individual during an undercover sting operation. Additional testimony showed that during another undercover operation in December 2016, Webster sold a bulletproof vest that had previously been stolen from a reserve police officer. At sentencing, the court noted that Webster had previously been convicted of felony burglary three times, and of one felony drug conviction.
Webster was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Webster was sentenced to 180 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Webster is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Tri‑County Drug Enforcement Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-02005-LRR.
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Wall Street Investment Analyst Sentenced to More Than 3 Years in Prison for Insider TradingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JOHN AFRIYIE, a former analyst at a Manhattan-based private investment fund (the “Fund”), was sentenced today in Manhattan federal court to 45 months in prison for committing insider trading. AFRIYIE was convicted on January 30, 2017, following a jury trial before U.S. District Court Judge Paul A. Engelmayer, who also imposed today’s sentence.
Manhattan U.S. Attorney Kim said: “On more than two dozen occasions, John Afriyie traded on material nonpublic information, and then used his own mother and destroyed emails to cover up his crimes. The heavy price of the illegal edge Afriyie sought was his liberty.”
According to the Indictment, other filings in Manhattan federal court and the evidence presented at trial:
In January 2016, Apollo Investment Management LLC (“Apollo”) contacted the Fund to discuss the possibility of the Fund providing debt financing for Apollo’s potential acquisition of ADT Corporation (“ADT”). The Fund entered into a non-disclosure agreement with Apollo and was granted access to confidential documents related to the ADT transaction. As an investment analyst at the Fund, AFRIYIE had access to the Fund’s network server, which maintained, among other things, electronic shared directory file folders containing material nonpublic information, including information about Apollo’s acquisition of ADT.
In violation of the Fund’s policies and in breach of his duties to the Fund, AFRIYIE repeatedly accessed material nonpublic information about Apollo’s pending acquisition of ADT in an electronic shared drive folder on the Fund’s network server. In approximately 28 separate transactions between January 28, 2016, and February 12, 2016, AFRIYIE purchased approximately 2,279 ADT call options for a total of $24,254 before the public announcement of that transaction. AFRIYIE purchased the ADT call options through a brokerage account that AFRIYIE controlled, but was held in the name of AFRIYIE’s mother. As cover for his criminal scheme, AFRIYIE repeatedly pretended to be his mother in recorded telephone calls with his broker. AFRIYIE did not reveal his trades or the existence of the brokerage account to the Fund.
The public announcement of Apollo’s acquisition of ADT in February 2016 caused ADT shares to hit $39.64 per share, up from its value of $29.20 per share on the day AFRIYIE began purchasing ADT options. Upon subsequently selling the ADT options, AFRIYIE generated more than $1.5 million in illicit profits.
In connection with his arrest, AFRIYIE lied to agents of the Federal Bureau of Investigation (“FBI”) about his ADT options trades and falsely claimed that his own voice on a recorded call with his broker was really his mother’s voice. Following his arrest, AFRIYIE also attempted to delete the contents of an email account that he had used to communicate with his broker.
After the guilt phase of the trial had concluded, and based on AFRIYIE’s request, the jury also determined that $2,648,862.46 in seized funds were subject to forfeiture as proceeds of AFRIYIE’s crimes.
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In addition to his prison term, AFRIYIE, 29, of Freehold, New Jersey, was sentenced to three years of supervised release, ordered to pay a forfeiture money judgment in the amount of $2,780,720.02, including the forfeiture of $2,705,128.66 in seized funds, and restitution to the Fund in an amount no less than $691,046.42, with a final restitution order to be entered within 90 days of sentencing. AFRIYIE was remanded on January 23, 2017, after he refused to appear in court for trial, and he remains in custody.
Mr. Kim praised the investigative work of the FBI and the Office’s Criminal Investigators. He also thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore and Christine I. Magdo are in charge of the prosecution. Assistant U.S. Attorney Jennifer L. Gachiri is handling the forfeiture aspects of this prosecution.
Two Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that two previously deported aliens were indicted separately today by a federal grand jury with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Eutimio Chavez-Jose, age 40, a citizen of Mexico, was previously deported from the United States to Mexico on four prior occasions, June 2007, twice in June 2011, and June 2012. He is alleged to have illegally re-entered the United States sometime after June 2012, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers. In June 2012, he was convicted in the Western District of New York of illegal reentry, an offense that subjects him to enhanced penalties in the current case.
Because of Chavez-Jose’s previous conviction, under federal law he faces a maximum penalty of ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
Javier Miguel-Martinez, age 30, a citizen of Mexico, was previously deported from the United States to Mexico on four prior occasions in July 2006, October 2006, November 2009, and February 2012. He is alleged to have illegally re-entered the United States sometime after February 2012, and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Under federal law, Miguel-Martinez faces a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
The cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Plead Guilty in Multi-Million Dollar Compounding Pharmacy Fraud SchemeRead the Press Release
Hattiesburg, Miss. – Jason May, 40, of Lamar County, Mississippi, and Gerald Jay Schaar, 46, of Biloxi, Mississippi, entered guilty pleas on July 25, 2017, before U.S. District Judge Keith Starrett, for their roles in a multi-million dollar compounding pharmacy health care fraud conspiracy, announced Acting U.S. Attorney Harold Brittain, FBI Special Agent in Charge Christopher Freeze, IRS-Criminal Investigation Special Agent in Charge Jerome R. McDuffie, and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service Southeast Field Office.
May pled guilty to conspiracy to commit health care fraud and money laundering in connection with his role as co-owner and pharmacist in charge of Advantage Pharmacy, which received approximately $192 million in reimbursements from TRICARE and other health care benefit programs for compound topical creams. He selected formulas for the compound creams based on reimbursement rates as opposed to medical efficacy. In order to facilitate the scheme to defraud, May and Advantage Pharmacy either did not collect patient copayments for the compound topical creams or paid copayments on behalf of beneficiaries. As a co-owner of Advantage Pharmacy, May received a portion of the reimbursements associated with the fraudulently obtained compound creams and transferred certain of those proceeds from the fraud – in transactions greater than $10,000 - into a money market account held in his name.
Schaar pled guilty to conspiracy to commit health care fraud for his role in a fraudulent scheme in which he, acting as a marketer for a pharmacy located in Lamar County, solicited physicians and other medical professionals to write prescriptions without seeing patients for compound topical creams dispensed by the pharmacy. Schaar, together with others, later falsified patient records to make it seem as though medical professionals had examined the patients who received prescriptions for the compound creams. In total, the pharmacy received $2.3 million in reimbursements for the prescriptions solicited by Schaar.
The charges against May and Schaar were brought as a result of the largest ever national health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants in 41 federal districts across the country, targeting schemes which involved billing Medicare, Medicaid, and TRICARE (a health insurance program for members and veterans of the armed forces and their families) for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries.
"Health care fraud costs the United States tens of billions of dollars a year," said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. "The FBI Jackson
Division, alongside our law enforcement partners, will continue to seek out those that defraud health care systems in the United States."
"DCIS and our investigative partners remain committed to bringing to justice any individuals who defraud TRICARE, the Department of Defense health care program dedicated to providing medical care to military members and their families," stated Special Agent in Charge John F. Khin, Southeast Field Office, DCIS. "The fraud and corruption uncovered as part of this complex case diverted and wasted precious taxpayer dollars needed for the critical care and well-being of our military members and their families."
Jason May and Gerald Jay Schaar will be sentenced by U.S. District Judge Keith Starrett on October 17, 2017 in Hattiesburg. May faces a maximum penalty of five years in prison and a $250,000 fine. Schaar faces a maximum penalty of ten years in prison and a $250,000 fine.
This case was investigated by the FBI’s Hattiesburg Resident Agency, IRS-Criminal Investigation, Defense Criminal Investigative Service, Health and Human Services Office of Inspector General, Mississippi Bureau of Narcotics, and other government agencies. Department of Justice trial attorneys Dustin Davis and Katherine Payerle, and Assistant U.S. Attorney Mary Helen Wall are prosecuting the case for the government.
Two More Members of ATM Skimming Conspiracy Plead Guilty to Scheme Targeting Multiple New Jersey Bank LocationsRead the Press Release
Two members of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty to conspiracy to commit bank fraud today in federal court.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey and Acting Special Agent in Charge Debra Parker of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Newark Division made the announcement.
Stefan Dumitru, 29, of Queens, New York, and Florian Calin Crainic, 47, of Des Plaines, Illinois, pleaded guilty before U.S. District Judge Esther Salas to separate criminal informations charging them each with one count of conspiracy to commit bank fraud.
According to admissions made in court in connection with their guilty pleas, Dumitru, Crainic, and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Dumitru and Crainic both admitted that between March 2015 and July 2016, they made unauthorized cash withdrawals using the counterfeit ATM cards.
Sentencing for both defendants is set for November 6.
Joel Abel Garcia, Victor A. Hanganu, Radu Bogdan Marin, Marcel Peckham, Catalin Mihai Dragomir, Eduard Vasilica Ticu and Silvester Florentin Papp previously pleaded guilty to their roles in the scheme and await sentencing. To date, nine of the 13 defendants charged in this matter have been convicted.
ICE-HSI’s Newark Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts Police Department; Cambridge, Massachusetts Police Department; and Medford, Massachusetts Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.
The prosecution is being handled by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Criminal Division Organized Crime and Gang Section.
Two More Members of Atm Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Plead GuiltyRead the Press Release
NEWARK, N.J. – Two members of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.
Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Acting Special Agent in Charge Debra Parker of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Newark Division made the announcement.
Stefan Dumitru, 29, of Queens, New York, and Florian Calin Crainic, 47, of Des Plaines, Illinois, pleaded guilty before U.S. District Judge Esther Salas to separate informations charging them each with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Dumitru, Crainic, and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Dumitru and Crainic both admitted that between March 2015 and July 2016, they made unauthorized cash withdrawals using the counterfeit ATM cards.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing for both defendents is set for Nov. 6, 2017.
Joel Abel Garcia, Victor A. Hanganu, Radu Bogdan Marin, Marcel Peckham, Catalin Mihai Dragomir, Eduard Vasilica Ticu, and Silvester Florentin Papp previously pleaded guilty to their roles in the scheme and await sentencing. To date, nine of the 13 defendants charged in this matter have been convicted.
ICE-HSI’s Newark Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.
The government is represented by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
Defense counsel:
Dumitru: Roy Greenman Esq., Union, New Jersey
Crainic: Anthony Iacullo Esq., and Joshua Reinitz Esq., Nutley, New Jersey