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Tuesday 13 June 2017
Pair Who Delivered Fatal Dose of Heroin Sentenced to 42 Months in PrisonRead the Press Release
Two men who were involved in the delivery of a fatal dose of heroin to a young member of the Quileute Tribe were each sentenced June 12, 2017, to 42 months in prison, announced U.S. Attorney Annette L. Hayes. HUGH BROWN, 60 and EDWARD FOSTER, 56, and co-defendant Casey Marie Ward, 28, sold heroin to 28-year-old Felisha Jackson on September 5, 2015. Moments after that sale, Jackson was found unresponsive by her 9-year-old daughter. Paramedics tried to save Jackson, but she died a few days later at a hospital. Social media records reveal that WARD had reached out to Jackson, asking if she knew anyone interested in buying drugs. FOSTER obtained the heroin the three were selling, and BROWN provided the transportation, driving them onto Quileute Tribal land. Speaking of heroin at BROWN’s sentencing hearing, U.S. District Judge Benjamin H. Settle said, “This is a dangerous drug. People do die—and in increasing numbers—from it, and if you’re going to be involved in the distribution of this drug, you can expect lives will be lost . . . you can expect to go to prison.”
“The heroin epidemic is taking a particularly heavy toll in Tribal communities so we are working closely with our Tribal partners to do our part to combat opioid abuse,” said U.S. Attorney Annette L. Hayes. “Cases involving small amounts of heroin are not routinely charged in federal court, but in appropriate cases where dealing on Tribal lands leads to death, we are committed to seeking just punishment. As Tribes work to provide treatment and wellness resources, law enforcement must do its part to deter those who target Tribal communities and cause tragedies like those in this case.”
According to records filed in the case, Felisha Jackson had struggled to stay clean for her three small children. Another drug user said the heroin sold by Ward, BROWN, and FOSTER proved particularly powerful. After Jackson’s daughter found her mother unresponsive, she got her grandfather, and he called 911 and performed CPR in an ultimately futile effort to save his daughter.
Members of the Quileute Tribal Council attended the sentencing hearings. In a written statement to the Court, the Tribe said “[t]he Quileute Tribe is attempting to stem the tide of substance abuse in several ways, including coordinating with local, state, and federal law enforcement agencies . . . providing chemical dependency treatment, and working on several initiatives to promote wellness and prevent addiction.”
Ward was sentenced to 42 months in prison on June 5, 2017.
The case was investigated by the FBI and the Quileute Tribal Police. The case is being prosecuted by Assistant United States Attorney Nicholas Manheim.
If you, or someone you know, would like information about resources for those suffering from a heroin or other substance abuse addiction, you can call the 24 hour Washington Recovery Helpline at 1 866-789-1511, or go to the University of Washington Alcohol and Drug Institute website. If you are between 13 and 20 years old you can also call Teen Link at 1866TEENLINK (1 866 833 6546) to talk to a teen volunteer.
Owner of Chardon company sentenced to nearly two years in prison for violating Clean Air Act while demolishing Canton buildingsRead the Press Release
The owner of a Chardon demolition company was sentenced to nearly two years in prison for violating the Clean Air Act when he did not take steps to abate asbestos when he tore down a building in Canton, law enforcement officials said.
Russell P. Stewart, 48, was sentenced to 21 months in prison and ordered to pay $876,228 in restitution. The sentence will be served concurrently to a state prison sentence for a related case in which he improperly disposed of hazardous waste.
He previously pleaded guilty to one count of improper asbestos demolition and one count of failure to timely dispose of asbestos waste.
Stewart is the owner and operator of Chemstruction. He entered into a contract on Nov. 1, 2011, to demolish the former Stark Ceramics facility on West Church Street in Canton. The site covered approximately 500 acres and consisted of numerous commercial buildings, according to court documents.
The contract provided that all asbestos-containing materials would be removed and abated in accordance with environmental regulation and industry standards. An earlier environmental survey showed asbestos was present throughout the site, according to court documents.
Stewart participated in and directed the demolition of the structures from November 2011 through January 2013.
An inspection in October 2012 revealed crushed panels contained asbestos. Inspectors told Stewart to stop demolition until a cleanup plan could be developed but Stewart continued with demolition, causing asbestos panels to be crumbled, pulverized and reduced to powder, according to court documents.
“We will aggressively prosecute those who pollute our environment, whether it’s releasing asbestos into the air or dumping waste into our lakes and stream,” Acting U.S. Attorney David A. Sierleja said.
“This is about protecting Ohioans and the air they breathe,” Ohio Attorney General Mike DeWine said. “It’s a collaborative effort. We are continuously working with other agencies to protect public health and safety.”
“The defendant’s actions in this case released asbestos fibers into the environment and resulted in a $800,000 cleanup funded by the U.S. EPA,” said Scot Adair, Acting Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “It’s imperative that asbestos be removed safely, and EPA and its law enforcement partners will hold to account those who refuse to obey the law.”
This case was prosecuted by Assistant U.S. Attorney Brad Beeson following an investigation by the U.S. Environmental Protection Agency, the Ohio Environmental Protection Agency and the Ohio Attorney General’s Bureau of Criminal Investigation.
Owner of Apple of Your Eye Healthcare Services, Inc. Sentenced to 210 Months in Federal Prison for Role in Healthcare Fraud ConspiracyRead the Press Release
DALLAS — Wilbert James Veasey, Jr., 65, of Dallas, was sentenced this morning in federal court in Dallas on a health care fraud conspiracy conviction, announced U.S. Attorney John Parker of the Northern District of Texas.
Veasey was sentenced by U.S. District Judge Sam A. Lindsay to 210 months in federal prison and order to pay $23,123,897.18 in restitution to Medicare and $506,880.08 in restitution to Medicaid. He has been in custody since February 2016, after violating his conditions of release.
Veasey, along with co-defendants, Jacques Roy, M.D., 59, of Rockwall, Texas; Cynthia Stiger, 54, of Dallas; and Charity Eleda, R.N., 56, of Rowlett, Texas, were each convicted following a six-week-long trial on one count of conspiracy to commit health care fraud. In addition, Roy was convicted on eight, Veasey on three and Eleda on four counts of health care fraud. Roy was also convicted on two counts of making a false statement relating to healthcare matters and one count of obstruction of justice. Eleda was also convicted on three counts of making false statements for use in determining rights of benefit and payment by Medicare.
Three other defendants charged in the case, Cyprian Akamnonu and his registered nurse wife, Patricia Akamnonu, both of Cedar Hill, Texas, and Teri Sivils, of Midlothian, Texas, each pleaded guilty before trial to one count of conspiracy to commit health care fraud. Cyprian and Patricia Akamnonu are each currently serving a ten-year federal prison sentence. They were also ordered to pay $25 million in restitution. Sivils pleaded guilty in April 2015, and was sentenced to 3 years probation.
The government presented evidence at trial that Dr. Roy, Stiger, Veasey and Eleda engaged in a large-scale, sophisticated health care fraud scheme in which they conspired together and with others to defraud Medicare and Medicaid through companies they owned/controlled: Medistat Group Associates, P.A., Apple of Your Eye Health Care Services, Inc., Ultimate Care Home Health Services and Charry Home Care Services.
As part of the conspiracy, Stiger, Veasey and Eleda, along with others, improperly recruited individuals with Medicare coverage to sign up for Medicare home health care services. Eleda recruited patients from The Bridge homeless shelter in Dallas, sometimes paying recruiters $50 per beneficiary they found and directed to her vehicle parked outside the shelter’s gates. Eleda and other nurses would falsify medical documents to make it appear as though those beneficiaries qualified for home health care services that were not medically necessary. Eleda and the nurses prepared Plans of Care (POC), also known as 485’s, which were not medically necessary, and these POCs were delivered to Dr. Roy’s office and not properly reviewed by any physician.
Dr. Roy instructed his staff to certify these POCs, which indicated to Medicare and Medicaid that a doctor, typically Dr. Roy, had reviewed the treatment plan and deemed it medically necessary. That certifying doctor, typically Dr. Roy, certified that the patient required home health services, which were only permitted to be provided to those individuals who were homebound and required, among other things, skilled nursing. This process was repeated for thousands of POCs, and, in fact, Medistat’s office included a “485 Department,” essentially a “boiler room” to affix fraudulent signatures and certifications.
Once an individual was certified for home health care services, Eleda, nurses who worked for Stiger and Veasey, and other nurses falsified visit notes to make it appear as though skilled nursing services were being provided and continued to be necessary. Dr. Roy would also visit the patients, perform unnecessary home visits, and then order unnecessary medical services for the recruited beneficiaries. Then, at Dr. Roy’s instruction, Medistat employees would submit fraudulent claims to Medicare for the certification and recertification of unnecessary home health care services and other unnecessary medical services.
The government presented further evidence at trial that the scope of Dr. Roy’s fraud was massive; Medistat processed and approved POCs for 11,000 unique Medicare beneficiaries from more than 500 different home health agencies. Dr. Roy entered into formal and informal fraudulent arrangements with Apple, Charry, Ultimate and other home health agencies to ensure his fraudulent business model worked and that he maintained a steady stream of Medicare beneficiaries.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) and was brought as part of the Medicare Fraud Strike Force supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.
Assistant U.S. Attorneys P.J. Meitl and Nicole Dana and First Assistant U.S. Attorney Chad Meacham prosecuted the case.
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Ottawa Man Charged with Attempted Child Sex TraffickingRead the Press Release
TOPEKA, KAN. - An Ottawa man was charged in federal court here Monday with attempted sex trafficking of a child, U.S. Attorney Tom Beall said.
Michael David Mitchell, 63, Ottawa, Kan., was charged with one count of attempted sex trafficking of a child, six counts of electronic solicitation, one count of attempted coercion and enticement of a minor, and one count of interstate travel for the purpose of having sex with a minor.
A criminal complaint and affidavit alleges Mitchell told undercover investigators he was looking for a mother and children to enslave for sex and he was willing to pay for it. In a text exchange with an undercover investigator posing as a woman with a daughter, he said: “I will take care of you, but it won’t be easy on either of you. I’m a sadist and enjoy inflicting pain. Neither of you will ever be allowed to say no to me.”
Mitchell agreed to a meeting at the Adams Mark Hotel in Kansas City, Mo. He was arrested when he arrived.
If convicted, he faces a penalty of not less than 10 years on the attempted sex trafficking count, up to five years on each electronic enticement count, not less than 10 years on the coercion and enticement count, and up to 30 years on the interstate travel charge. The FBI investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Orange County, Texas Man Sentenced for Drug TraffickingRead the Press Release
BEAUMONT, Texas – A 45-year-old Vidor, Texas man has been sentenced to prison for federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Ben Doyle Vaughn, III, pleaded guilty on Jan. 5, 2017, to possession with intent to distribute methamphetamine and was sentenced to 135 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on Mar. 3, 2016, officers with Orange County (Texas) Sheriff’s Department executed a search warrant for a residence located at 130 Clair St., Vidor, Texas that was known to be occupied by Vaughn. Prior to executing the search warrant, law enforcement officers observed a vehicle they knew to be driven by Vaughn traveling at a high rate of speed and committing other traffic violations. The vehicle was pulled over and Vaughn was found to be the driver of that vehicle. Vaughn was arrested for the traffic violations, gave the officers permission to drive his truck back to his house and also gave the officers consent to search his vehicle. A search of the residence revealed methamphetamine paraphernalia and marijuana inside a shop located at the back of a carport that Vaughn claimed to be his and provided the keys to unlock it. A small amount of methamphetamine was also discovered in Vaughn’s bedroom on his nightstand in the house. As the search continued, two K-9s were called to the scene and alerted on a vehicle, known to be driven by Vaughn, parked under the carport in front of Vaughn’s shop. One of the K-9’s alerted to the area surrounding that vehicle. As the officers moved the vehicle to search under and around the vehicle, officers observed a patch of disturbed dirt underneath one of the vehicle tires. This area was searched and officers dug up a metal can containing two plastic bags containing what was believed to be methamphetamine inside. Another quantity of methamphetamine was located in a bag and attached to the underside of the truck Vaughn was driving when he was brought back to the house for the search.
This case was investigated by DHS/ICE/HSI, Beaumont Police Department, Orange County Sheriff’s Office and the Orange Police Department and prosecuted by Assistant U.S. Attorney Michelle S. Englade.
Orange County Man Sentenced to over 8 Years in Federal Prison for Possessing Large Collection of Child PornographyRead the Press Release
SANTA ANA, California – A Westminster man has been sentenced to over 8 years in federal prison for possession of child pornography.
Peter Henry Herz, 61, yesterday received a 97-month sentence from United States District Judge Cormac J. Carney.
Following the completion of his prison term, Herz will be subject to supervised release for the rest of his life. Judge Carney also ordered the defendant to pay $7,500 to one of the victims of his offense.
Herz pleaded guilty in February to one count of possession of child pornography, admitting he had still images and videos of child pornography on his digital devices in 2009. After being charged and arrested for that conduct, Herz was freed on bond. While awaiting trial, Herz obtained new digital devices and possessed additional images of child pornography. Herz possessed a total of more than 500,000 images and 369 videos depicting child pornography.
From 2003 through 2013, Herz worked as the pianist and musical director for Pageant of the Masters in Laguna Beach and was the staff accompanist at the Theater Department at California State University, Fullerton.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
This case was prosecuted by Assistant United States Attorney Mark Takla.
Ohio couple charged with importing and distributing fentanyl and carfentanilRead the Press Release
An Ohio couple was charged in federal court with illegally importing and conspiracy to possess with intent to distribute fentanyl, law enforcement officials said.
Charged are James F. Halpin, 30, and Grace A. Bosworth, 38, both of Cincinnati.
Law enforcement agents purchased fentanyl on the dark web in May 2017. Fentanyl and analogue drugs are often mailed from China, Hong Kong and elsewhere. Sometimes they are sent to Canada before being mailed into the United States, according to an affidavit filed in the case.
The drugs were delivered to a location in Northern Ohio on May 30, having been mailed from the post office in Newport, Kentucky. The drugs were tested and determined to be a mixture of furanyl fentanyl, carfentanil and another fentanyl analogue, according to the affidavit.
Investigators determined the markings on these packages were identical to at least 40 shipments mailed from post offices in the Cincinnati area. It was also determined that Halpin and Bosworth lived at an address that routinely received parcels mailed from abroad and that he regularly mails out packages to addresses all over the country, according to the affidavit.
On June 6, investigators located a parcel that originated from Montreal addressed to Halpin and Bosworth’s address. A search of the package revealed five grams of a mixture of fentanyl, carfentanil and furanyl fentanyl, according to the affidavit.
“The amount of drugs seized is enough to kill a football stadium full of people,” Acting U.S. Attorney David A. Sierleja said. “This case underscores that our state is being inundated with large amounts of deadly drugs. We will continue to aggressively prosecute drug traffickers while working to prevent the next generation of addicts.”
“As a law enforcement community, HSI and our partners are aggressively engaged in combatting these deadly fentanyl smuggling organizations,” said HSI Acting Special Agent in Charge Steve Francis. “Fentanyl and other opioids have reached epidemic levels in Ohio, due to its high potency and inexpensive cost. We take very seriously our responsibility to helping to stop this public scourge.”
This case is being prosecuted by Assistant U.S. Attorneys Daniel Riedl, Karl Kadon and Matthew Cronin following an investigation by the Department of Immigration and Customs Enforcement – Homeland Security Investigations and the U.S. Postal Inspection Service, operating at part of the Border Enforcement Security Taskforce.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Navajo Woman from Albuquerque Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Kelly James, 34, an enrolled member of the Navajo Nation who resides in Albuquerque, N.M., pled guilty today in federal court to a child abuse charge. Under the terms of the plea agreement, James will be sentenced to a term of probation to be determined by the court.
James was arrested in May 2017, on an indictment charging her with engaging in child abuse by operating a motor vehicle recklessly on Dec. 8, 2016, on the Isleta Pueblo in Valencia County, N.M.
During today’s proceedings, James entered a guilty plea to the indictment. In entering the guilty plea, James admitted that on Dec. 8, 2016, she operated a motor vehicle recklessly within the Isleta Pueblo while under the influence of alcohol. James further admitted that her actions endangered the health and wellbeing of the child who was a passenger in the vehicle. A sentencing hearing has yet to be scheduled.
This case was investigated by the Isleta Pueblo Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Elisa C. Dimas.
Nashua Man Sentenced for Fraud SchemeRead the Press Release
BOSTON – A Nashua, NH man was sentenced today in federal court in Boston for defrauding investors in a purported water resource company and laundering money obtained through various online fraud schemes.
Edmond P. LaFrance, 70, was sentenced by U.S. District Court Judge Indira Talwani to two years in prison to be followed by three years of supervised release, six months of which will be served in community confinement, restitution of $387,802 and forfeiture of $387,802. In March 2017, LaFrance pleaded guilty to two counts of wire fraud and three counts of money laundering.
From 2012 to 2013, LaFrance solicited investments and loans for a shell company he created, Natural Waters, that fraudulently claimed to buy and sell mineral water in bulk. In fact, there were no mineral water sales and a large portion of the investor money LaFrance received was directed to his own uses or transferred to co-conspirators. In 2015, LaFrance laundered money for various online fraud schemes being perpetrated by individuals located primarily outside of the United States. LaFrance accepted hundreds of thousands of dollars from victims he did not know, and with whom he had no business relationship, and wired the money to third parties whose true identities were concealed from the victims.
In 1990, LaFrance was convicted in federal court of structuring currency transactions, making false statements and conspiring to defraud the United States. In 2007, he was convicted of wire fraud and making false statements.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Stephen P. Heymann of Weinreb’s Economic Crimes Unit prosecuted the case.
Mission Man Handed Significant Sentence for Firearms ViolationRead the Press Release
McALLEN, Texas – A local man has been ordered to federal prison for illegally possessing firearms in connection with a narcotics trafficking operation he ran out of his Mission home, announced Acting U.S. Attorney Abe Martinez. Jose Paco Villegas, 48, pleaded guilty March 31, 2017.
Today, U.S. District Judge Randy Crane handed Villegas a 100-month sentence for being a felon illegally in possession of a firearm in and affecting interstate and foreign commerce. The sentence was enhanced because the court found Villegas possessed the firearms in connection with a drug trafficking crime. He was also ordered to serve a three-year-term of supervised release following his prison sentence.
Authorities identified Villegas as a person trafficking narcotics out of his residence in Mission. During the month-long investigation, Villegas sold cocaine to undercover agents on multiple occasions. A subsequent search of his residence resulted in the discovery of approximately 230 grams of cocaine, one kilogram of marijuana, more than $10,000 and several handguns, including a Beretta .9mm, Taurus .380 and a Taurus .45 caliber.
Villegas had previously been convicted of felony offenses including the use of a firearm in relation to a drug trafficking crime, delivery of a controlled substance, possession of a controlled substance with intent to deliver and theft. Due to these previous violations, he is prohibited from possessing a firearm per federal law.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration conducted the investigation in conjunction with the Hidalgo County High-Intensity Drug Trafficking Area task force. Assistant U.S. Attorney David M. Paxton is prosecuting the case.
Misr Sons Development S.A.E. Agrees to Pay $1.1 Million to Resolve False Claims Act AllegationsRead the Press Release
Misr Sons Development S.A.E. (Hassan Allam Sons, “HAS”), a construction company with its principal place of business in Cairo, Egypt, has agreed to pay $1.1 million to settle allegations that HAS submitted false claims in connection with U.S. Agency for International Development (USAID) contracts, the Justice Department announced today.
“Contractors who misrepresent their eligibility for government contracts undermine the government procurement process,” said Deputy Assistant Attorney General Joyce R. Branda of the Civil Division. “The Justice Department will take action to protect that process and to ensure that taxpayer funds are not misused.”
“USAID Office of Inspector General extensively investigated this matter and thanks the Department of Justice for its tenacity and dedication,” said Special Agent in Charge Jonathan Schofield of USAID Office of Inspector General. “Total settlements on this matter exceed $10 million and demonstrate once again that the United States expects its contractors to execute their awards in accordance with all requisite terms and conditions, whether operating domestically or overseas.”
The settlement concerns USAID-funded contracts for the construction of water and wastewater infrastructure projects in the Arab Republic of Egypt in the 1990s. The contracts were awarded to a joint venture partnership that included Washington Group International Inc. (WGI), Contrack International Inc. (Contrack) and HAS. The United States filed suit under the False Claims Act and the Foreign Assistance Act, alleging that HAS was ineligible to participate in the joint venture but that its participation was concealed from USAID. As a result, HAS and its partners allegedly received USAID-funded contracts to which they were not entitled. The settlement resolves only HAS’ liability. The United States previously settled with Contrack and WGI.
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Idaho and the USAID Office of Inspector General.
The case is captioned United States v. Washington Group International Inc. f/k/a/ Morrison Knudsen, Corporation, Contrack International, Inc.; and Misr Sons Development S.A.E. a/k/a Hassan Allam Sons, No. 04-555 (D. Idaho). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Minnesota Man Charged with Conspiracy to Commit Bank Fraud, Identity Theft, and Methamphetamine DistributionRead the Press Release
United States Attorney Randolph J. Seiler announced that a Minneapolis, Minnesota, man has been indicted by a federal grand jury for Conspiracy to Commit Bank Fraud, Aggravated Identity Theft, and Possession with Intent to Distribute Methamphetamine.
Jason Maurice Fagin, age 38, was indicted on May 9, 2017. He is currently being held in Minnesota and will make his initial appearance in South Dakota in the near future.
The maximum penalties upon conviction for each count are as follows: Conspiracy to Commit Bank Fraud has a penalty of up to 20 years of imprisonment and/or a $1,000,000 fine; Aggravated Identity Theft requires a mandatory 2 years of imprisonment, to be served consecutively to any term of imprisonment for the Conspiracy to Commit Bank Fraud offense; and Possession with Intent to Distribute Methamphetamine has a penalty of up to 20 years of imprisonment and/or a $1,000,000 fine. Each count of conviction requires a term of years of supervised release and $100 to the Federal Crime Victims Fund. Restitution and forfeiture may also be ordered.
According to the indictment, between September 2016 and November 16, 2016, Fagin engaged in a scheme to defraud financial institutions while using the personal identifying information of other individuals. Fagin would use the proceeds of the fraud scheme to purchase methamphetamine for his use and to distribute to others for money.
The charges are merely accusations and Fagin is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Flandreau Police Department, and the Flandreau Sioux Tribe’s Police Department. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Mexican citizen pleads guilty to lying on passport application in Morgan CityRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from Mexico pleaded guilty Monday to lying on a passport application he submitted at the Morgan City post office.
Jose Luis Andrade Diaz, 32, of Mexico, pleaded guilty before U.S. District Judge Dee D. Drell to one count of false statement in application for passport. According to the guilty plea, Diaz submitted a fraudulent passport application on April 26, 2007 to the Morgan City post office using another person’s identity. He used the individual’s name, birthdate and Social Security number on the passport application.
Diaz faces up to 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of October 23, 2017.
The State Department conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Mexican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Mexican national was sentenced yesterday in federal court in Boston with a federal immigration crime.
Tomas De La Cruz Zavala, 45, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to six months in prison and two years of supervised release. Zavala will be subject to deportation upon completion of his sentence. In March 2017, Zavala pleaded guilty to illegal reentry of a deported alien.
Zavala was deported from the United States to Mexico on Oct. 12, 2012, and again in November 2016. Zavala was recently located in North Dartmouth, Mass., where law enforcement determined that Zavala was illegally present in the United States.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorneys David G. Tobin and Nick Soivillien of Weinreb’s Major Crimes Unit prosecuted the case.
McKeesport Gun Dealer Pleads Guilty to Possessing Illegal Firearms, Witness and Evidence TamperingRead the Press Release
PITTSBURGH – Erik David Lowry pleaded guilty in federal court to charges involving illegal firearms possession, tampering with evidence, and tampering with a witness, Acting United States Attorney Soo C. Song announced today. Pittsburgh Tactical Firearms, the gun store owned and operated by Lowry, also pleaded guilty to illegally selling firearms.
Lowry, age 37, of McKeesport, PA and Pittsburgh Tactical Firearms (originally incorporated as Renaissance Electric, LLC), also located in McKeesport, both pleaded guilty before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that ATF Industry Operations (IO) employees perform standard inspections of all gun dealers to ensure that federal laws are being followed. Federal Firearms Licensee (FFL) inspections of this type reveal that the majority of gun dealers diligently ensure that firearms are sold to law-abiding citizens, thereby enhancing the safety of the public. A January 11 through 19, 2016, IO inspection of Pittsburgh Tactical Firearms (PTF), owned and operated by defendant Erik David Lowry, noted numerous significant and clear violations of law-- including 27 guns located in the store’s gun rack which Lowry called “cash and carry” and was willing to sell without completing any paperwork. ATF Special Agents followed up and that in-depth investigation determined that Lowry and PTF had been illegally selling and acquiring over 100 “cash and carry,” “cash out the door,” or “turn and burn” firearms “off books” at his store and through gun shows between 2014 and January 19, 2016. That is, neither Lowry nor PTF completed the required paperwork for either the acquisition or disposition of these firearms.
The investigation also located firearms transactions that were made: without any required background checks being performed; to a prohibited person with a criminal record who was previously denied the ability to purchase a firearm by a background check at PTF; to a prohibited person with a prior mental health commitment (who was denied the ability to purchase a firearm by two other gun dealers who actually did perform the required background check); and by knowingly using false information on paperwork that had been completed. Some of these transactions involved military-style weapons and the ATF has expended significant resources attempting to locate and recover these illegally sold firearms.
Further, Lowry acquired a “destructive device”, specifically a Penn Arms Striker 12 military-style 12 gauge weapon with a drum magazine, not suitable for sporting purposes, and bearing serial number 11170, which, like a machinegun, silencer, grenade, rocket, or landmine must be specifically registered in the National Firearms Registration and Transfer Record, but was not. Lowry acquired it in the summer of 2015 and disguised that fact until it was located by the ATF on January 19, 2016. As the investigation proceeded, Lowry attempted to conceal his actions by contacting multiple people to have them hide or destroy the unregistered Striker 12 by throwing it in a dumpster, in order to, he said, avoid federal prison. As these attempts failed, Lowry contacted the previous Striker 12 owner and created a false story about the date, time and manner of the acquisition, which he and the prior owner both provided to ATF.
Judge Schwab scheduled sentencing for October 23, 2017, at 9:30 a.m. The law provides for a maximum total sentence of 50 years in prison, a fine of $750,000, or both for Lowry. For Pittsburgh Tactical Firearms, the law provides a maximum total sentence of up to five years’ probation and a $500,000 fine.
Assistant United States Attorney Ross E. Lenhardt, a federal prosecutor with the Violent Crime Section of the Office of the United States Attorney, represented the federal government.
Acting U.S. Attorney Soo C. Song commended the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), including their Industry Operations investigators, and the Allegheny County Sheriff’s Office, for the investigation that led to the prosecution of Erik David Lowry and his gun store, Pittsburgh Tactical Firearms.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes.
Massive Sentence for Laredo Drug TraffickerRead the Press Release
LAREDO, Texas – A 41-year-old man from Laredo, has been ordered to prison following his conviction of the conspiracy possess with intent to distribute methamphetamine, announced Acting U.S. Attorney Abe Martinez. Esequiel Villarreal pleaded guilty Dec. 15, 2016.
Today, U.S. District Judge Diana Saldana ordered Villarreal to serve a 210-month-term of imprisonment. Villarreal committed the instant offense while on supervised release from a federal drug trafficking conviction in 2000 where he was sentenced to 188 months. Due to the revocation of his supervised release, he will also serve an additional consecutive six months of imprisonment in addition to the other term imposed.
Villarreal came to the attention of law enforcement after learning he was in possession of a large amount of drugs and a possible firearm.
On Oct. 21, 2016, authorities conducted a search of Villarreal’s apartment. At that time, they discovered 9.5 kilograms of methamphetamine concealed in a black plastic bag within his kitchen as well as a .22 caliber pistol in a cabinet above the refrigerator. He was also found to have 3.2 grams of cocaine on his body.
Villarreal has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department conducted the investigation. Assistant U.S. Attorney Christopher dos Santos is prosecuting the case.
Massillon man sentenced to a decade in prison for enticement and child pornography crimesRead the Press Release
A Massillon man was sentenced to more than a decade in prison for enticement and distribution of child pornography, said Acting U.S. Attorney David A. Sierleja and FBI Special Agent in Charge Stephen D. Anthony.
Richard Snyder, 72, was sentenced to 121 months in prison by U.S. District Judge Benita Pearson.
Snyder knowingly used a computer and the Internet, to attempt to persuade, induce, entice and coerce a 13-year-old girl to engage in illegal sexual activity with him. This took place from May 26 through August 17, 2016, according to court documents.
Snyder also knowingly distributed and attempted to distribute child pornography via a computer in July 2016, according to court documents.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton Office of the Federal Bureau of Investigation, the Ohio Internet Crimes Against Children Task Force, the Vermont Internet Crimes Against Children Task Force, the Jackson Township Police Department and the Canton Police Department.
Man Sentenced to 28 Months Imprisonment for Tax Fraud SchemeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on June 8, 2017, Javier Zarate-Flores (age 29), of Milwaukee, Wisconsin, was sentenced in federal court to 28 months in prison. The sentence follows his guilty plea to theft of government money, in violation of Title 18, United States Code, Section 641. Mr. Zarate-Flores was also ordered to pay $1,201,935.00 in restitution to the Internal Revenue Service. Zarate-Flores additionally agreed to be voluntarily deported from the United States and return to Mexico due to his lack of legal status in the United States.
According to the plea agreement, Zarate-Flores fraudulently obtained Individual Tax Identification Numbers (ITINs) from the IRS. An ITIN is what the IRS issues to individuals who cannot, due to their immigration status, obtain a Social Security number. Individuals who obtain an ITIN use it to file their income tax returns. To obtain an ITIN, an applicant has to provide the IRS certain personal identifying documents. Zarate-Flores obtained personal identifying documents from citizens of Mexico, fraudulently applied for ITINs in their names, and then filed fraudulent tax returns using the ITINs he obtained.
In the fraudulent tax returns that he filed, Zarate-Flores claimed the Additional Child Tax Credit (ACTC). The ACTC reduces tax liability dollar for dollar, and the unused portion of a refundable credit is still payable to the taxpayer. So, when an individual has no income tax liability, a person may still file a tax return and receive a refund for the ACTC. Zarate-Flores falsely claimed dependents in the tax returns that he filed to receive the ACTC.
From February 2013 through June 2014, Zarate-Flores received $1,201,935.00 in U.S. Treasury refund checks from his scheme. When handing down the sentence, United States District Judge J.P. Stadtmueller said that his sentence must “send a message” to others that tax fraud offenses are serious crimes that require significant sentences.
This case was investigated by IRS Criminal Investigation. The case was prosecuted by Assistant United States Attorney Keith S. Alexander
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For further information contact:
Public Information Officer Dean Puschnig at (414) 297-1700
Man Sentenced for Bank Robbery He Blamed on a Fight with His WifeRead the Press Release
KANSAS CITY, KAN. B A Kansas City, Kan., man was sentenced Tuesday to six months home confinement and 50 hours of community service for a bank robbery he blamed on a fight with his wife, U.S. Attorney Tom Beall said.
Lawrence John Ripple, 71, Kansas City, Kan., pleaded guilty to one count of bank robbery. A criminal complaint in the case alleged that on Sept. 2, 2016, Ripple sat down in the lobby and waited for police after robbing the Bank of Labor at 756 Minnesota Ave. in Kansas City, Kan. He told investigators that after an argument with his wife he felt he would rather be in prison than go back home.
Beall commended the FBI and Assistant U.S. Attorney Sheri Catania for their work on the case.
Liquid Methamphetamine Importer Ordered to PrisonRead the Press Release
LAREDO, Texas – A 46-year-old woman has been ordered to federal prison following her conviction for importing methamphetamine into the United States, announced Acting U.S. Attorney Abe Martinez. Sherie Lyn De Sylvia, a U.S. citizen who resided in Tijuana, Mexico, pleaded guilty Feb. 22, 2017.
Today, U.S. District Judge Marina Garcia Marmolejo handed De Sylvia a sentence of 84 months for the methamphetamine conviction followed by four years of supervised release. De Sylvia was on supervised release for a previous conviction in which she had smuggled eight kilograms of methamphetamine, five kilograms of cocaine and five kilograms of heroin inside her vehicle’s spare tire on May 13, 2015, at the Otay Mesa, California, Port of Entry. The court revoked the remainder of that term and further ordered her to prison for 12 months, six months of which will be served consecutively to the other prison term imposed for a total 90-month federal prison sentence. At the hearing, Judge Marmolejo noted to the defendant that “all the emotion shown in court today needs to be channeled when you get out to change your life.”
On June 11, 2016, De Sylvia was detained at the Border Patrol Checkpoint on IH-35 in Laredo. At secondary inspection, agents noticed potential tampering with the fuel tank of De Sylvia’s vehicle. Inside, they soon discovered 30 gallons of liquid methamphetamine.
De Sylvia will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Border Patrol conducted the investigations. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.
Lake Andes Man Charged with Assault and Felony Abuse and Neglect of a Child Under Seven YearsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lake Andes, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury and Felony Abuse and Neglect of a Child Under Seven Years.
Jerrad Dean Clairmont, age 19, was indicted on May 9, 2017. He appeared before U.S. Magistrate Judge Veronica Duffy on June 12, 2017, and pled not guilty to the Indictment.
The maximum penalties upon conviction for each count are as follows: Assault Resulting in Serious Bodily Injury has a penalty of mandatory minimum of 10 years up to life imprisonment and/or a $250,000 fine; Felony Abuse and Neglect of a Child Under Seven Years has a penalty of 15 years of imprisonment and/or a $250,000 fine. Each count of conviction requires a term of years of supervised release and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the indictment, in April 2017, Clairmont unlawfully assaulted a child who had not attained the age of 18 years, and said assault resulted in serious bodily injury. Clairmont also intentionally and knowingly abused and exposed the child by subjecting the child to an environment which constituted mistreatment and abuse, and whom lacked proper parental care through the acts and omissions of the child’s parent, guardian, or custodian.
The charge is merely an accusation and Clairmont is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Clairmont was released on bond. A trial date has not been set.
June 23 Conference Focuses on Issues of Veterans Caught in the Criminal Justice SystemRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office, Samford University’s Cumberland School of Law, and the University of Alabama’s School of Social Work will present a conference June 23 to address issues of military veterans who either have been incarcerated or faced diversionary courts, announced Acting U.S. Attorney Robert O. Posey.
“Justice Involved Veterans: From Arrest to Successful Reentry” will be a daylong conference at Cumberland School of Law on Samford’s campus in Homewood. The conference will examine the needs of veterans at various points following their discharge from the military to determine when they are likely to be most vulnerable to committing a crime. The conference also will explore how to improve the chances that a veteran will successfully return to society after incarceration, and will examine veterans’ treatment courts and their role as an alternative to incarceration.
“Military veterans too often return from service to face daunting challenges at home,” Posey said. “As a nation, we must do more than thank them for their service and move on. We need to acknowledge that many struggle with PTSD, with unemployment and chronic homelessness, and sometimes with the rule of law. This conference will provide information to help service providers, lawyers and law enforcement better assess the needs of troubled veterans and help them build successful lives after serving their country, and sometimes after serving their sentence for a crime.”
The conference will include a morning and an afternoon keynote address, each followed by panel discussions. Evan Seamone, an attorney at the Veterans Law Clinic of the Legal Services Center of Harvard Law School, will give the morning address. At the Harvard clinic, Seamone represents veterans in a variety of matters, including applications for disability benefits and military discharge upgrades. Prior to joining the clinic, he was a professor at Mississippi College School of Law where he directed the Legal Writing Program and helped to start the school’s monthly program to assist veterans with legal matters. Members of the panel responding to Seamone’s address will be Jefferson County District Attorney Pro Tem Danny Carr, Alabama Department of Veterans Affairs Commissioner Clyde Marsh and American Legion Alabama Department Adjutant Greg Akers. David L. Albright, Ph.D., associate professor, University of Alabama School of Social Work, will moderate the morning panel.
David L. Pelletier, project director for the Veterans Treatment Court Planning Initiative at the National Association of Drug Court Professionals, and a Marine Corps veteran, will present the afternoon address. Members of the panel responding to Pelletier’s presentation will be Shelby County Veterans Court Judge William Bostick, former Cumberland School of Law Dean John Carroll and Jefferson County Deputy District Attorney Mike Philpott. Paula Stokes, veteran experience relationship manager in Alabama for the Southeast District of the U.S. Department of Veteran Affairs, will moderate the afternoon panel.
Other panels during the conference will address the topics, Veterans Justice Outreach and Reentry and Community Corrections.
The conference is free and open to the public, but seating is limited. RSVPs are required by June 19 to [email protected]. Continuing education credit for attorneys and social workers is available for the conference.
The conference will be from 8 a.m. to 4:30 p.m. in Cumberland’s John Carroll Moot Courtroom, 800 Lakeshore Drive, Homewood, AL 35209.
Juan Thompson Pleads Guilty in Manhattan Federal Court to Cyberstalking and Making Fake Bomb Threats to JCCs and Other Organizations That Serve the Jewish CommunityRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JUAN THOMPSON pled guilty today to one count of cyberstalking and one count of making hoax bomb threats as part of THOMPSON’s campaign to harass and intimidate a particular woman (“Victim-1”), by, among other things, communicating at least 12 threats to Jewish Community Centers (“JCCs”) and other Victim Organizations in Victim-1’s name.
Acting U.S. Attorney Joon H. Kim said: “Fueling fear and distress, Juan Thompson made fake bomb threats to over a dozen Jewish Community Centers and organizations around the country. As he admitted today in pleading guilty, Thompson made these threats as part of a cruel campaign to cyberstalk a victim with whom he previously had a relationship. Thompson’s threats not only inflicted emotional distress on his victim, but also harmed Jewish communities around the country. Thanks to the dedicated work of the FBI and NYPD, Thompson will now be held to account for his crimes.”
According to the Complaint, the Information, and other statements made in open court:
In July 2016, THOMPSON began a months-long campaign of harassment targeting Victim-1 after Victim-1 ended their relationship. THOMPSON’s conduct culminated with a series of hoax threats, including hoax bomb threats, targeting JCCs, organizations that provide service to and on behalf of the Jewish community, schools, and police departments.
THOMPSON started his campaign of harassment of Victim-1 in 2016. In July of that year, an email was sent to Victim-1’s employer, which made false allegations about Victim-1, including that she had broken the law, using an internet protocol (“IP”) address that THOMPSON had previously used to access his social media account. On October 15, 2016, an IP address that traced back to THOMPSON’s residence was used to falsely report that Victim-1 possessed child pornography. When confronted by law enforcement on November 22, 2016, THOMPSON claimed that his email account had been hacked a few weeks earlier.
THOMPSON also made at least 12 hoax threats targeting JCCs, organizations that provide service to and on behalf of the Jewish community, schools, and police departments. For instance, on or about February 21, 2017, the Anti-Defamation League (“ADL”) received an emailed threat at their midtown Manhattan office, which indicated that “[Victim-1’s name and birthdate] is behind the bomb threats against jews. She lives in nyc and is making more bomb threats tomorrow.” The next day, the ADL received a phone call claiming that explosive material had been placed in the ADL’s midtown Manhattan office.
Some of THOMPSON’s threats were made in his own name, as part of an effort to claim that Victim-1 was trying to frame THOMPSON for a crime. For instance, on or about February 7, 2017, a JCC in Manhattan received an emailed bomb threat from an anonymous email account that stated: “Juan Thompson [THOMPSON’s birthday] put two bombs in the office of the Jewish center today. He wants to create Jewish newtown tomorrow.” The email’s use of the phrase “Jewish newtown” appeared to refer to a December 2012 school shooting in Newtown, Connecticut, in which a gunman murdered 26 victims.
In February 2017, a Twitter account used by THOMPSON (the “Thompson Twitter Account”) was used to accuse Victim-1 of responsibility for the JCC Threats and to claim that Victim-1 was trying to frame THOMPSON for her crimes. For instance, on February 24, 2017, the Thompson Twitter Account posted: “[s]he [Victim-1], though I can’t prove it, even sent a bomb threat in my name to a Jewish center, which was odd given her antisemitic statements. I got a visit from the FBI. So now I’m battling the racist FBI and this vile, evil, racist white woman.” On February 26, 2017, the Thompson Twitter Account posted “The hatred of Jews goes across all demos. Ask NYC’s [Victim-1’s employer]. They employ a filthy anti-Semite in [Victim-1]. These ppl are evil.”
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THOMPSON, 32, of Saint Louis, Missouri, pled guilty to one count of cyberstalking, which carries a maximum sentence of five years in prison, and one count of hoax threats, which also carries a maximum sentence of five 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 the Judge.
THOMPSON is scheduled to be sentenced by U.S. District Judge Kevin P. Castel on September 15, 2017.
Mr. Kim praised the outstanding investigative work of the FBI, and thanked the United States Secret Service, New York City Police Department, and Saint Louis Police Department for their ongoing investigative assistance.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Jacob Warren and Andrew DeFilippis are in charge of the prosecution.
Joplin Man Indicted for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was indicted by a federal grand jury today for producing child pornography.
Richard James York, 26, of Joplin, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that York used a nine-year-old minor (identified as Jane Doe) to produce child pornography from March 1, 2017, to March 16, 2017. York is also charged with one count of receiving and distributing child pornography over the Internet.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Jasper County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indiana Man Sentenced for Committing Perjury in East Texas TrialRead the Press Release
TYLER, Texas – A 56-year-old Fishers, Indiana man has been sentenced to federal prison for committing perjury in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
David Hernon, formerly of Richardson, Texas, pleaded guilty on Dec. 29, 2015, to making false declarations before the court and was sentenced to 15 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, in 2011, Hernon’s co-defendant and former business partner, Albert Davis, 56, formerly of Richardson, Texas, through his company, LBDS Holding Company, LLC, filed a federal suit against Korean-company ISOL Technology, Inc. (LBDS Holding Company, LLC v. ISOL Technology, Inc., et al., Case No. 6:11-CV-428) in the Eastern District of Texas, alleging breach of contract, trade secret misappropriation, and unfair competition. During the 2014 trial of the case, Davis and Hernon testified falsely about business dealings with Cerner Corporation and offered false exhibits to support LBDS’s claim for damages. At the conclusion of the trial, the jury awarded LBDS a verdict of $25 million. When the perjury was discovered, attorneys for ISOL filed an emergency motion for sanctions against LBDS. The district court vacated the verdict, dismissed LBDS’s case with prejudice, and awarded ISOL $738,706.47 in attorney’s fees.
Davis and Hernon were charged in the Eastern District of Texas in 2015 with making false declarations before court. Davis’s case remains pending.
Davis, David Tayce, 67, of Lucas, Texas, Hernon, and Richard Bryant, 41, and his wife, Christina Bryant, 41, both of Sachse, Texas, were charged in a related case in the Western District of Missouri for conspiring to commit wire fraud. From Aug. 25, 2008 to Feb. 19, 2015, Davis and his co-conspirators engaged in a scheme to use Cerner Corporation’s reputation and standing in the medical field to manipulate business transactions and court proceedings in their favor.
On Apr. 24, 2017, Davis, was sentenced by U.S. Chief District Judge Greg Kays in the Western District of Missouri to 12 years in federal prison. The court also ordered Davis to pay $19,151,555 in restitution to the victims of the fraud scheme.
On Apr. 25, 2017, Tayce, Hernon, Richard Bryant, and Christina Bryant were sentenced in separate appearances before Judge Kays. Tayce was sentenced to six years and six months in federal prison and ordered to pay $19,151,555 in restitution. Hernon was sentenced to four years and four months in federal prison and ordered to pay $6,487,224 in restitution. Richard and Christina Bryant were each sentenced to five years of probation and ordered to pay $8,079,197 in restitution.
In a related matter, in the summer of 2013, Davis and Tayce, approached Community Trust Bank regarding financing for iHeart Care cardiovascular surgical centers that Davis and Tayce planned to develop across North Texas. The plan, as outlined by Davis and Tayce, was to open multiple iHeart cardiovascular surgical centers and team up with physicians at each location who would invest in the surgical centers and refer patients to the cardiovascular practices. Over the course of the next year, Davis, Tayce, and Rachelle Dashner, 44, of Dallas, Texas, prepared loan documents related to various iHeart Care locations in Denton, Ennis, Mesquite, and Mansfield. Davis, Tayce, and Dashner identified numerous physicians as guarantors in the loan documents without the physicians’ knowledge and authorization. The loan documents were submitted to Community Trust Bank, and based upon various false and fraudulent representations, Community Trust Bank funded numerous loans to iHeart. In many instances, the iHeart facilities for which financing was obtained were never built or made operational. In total, Davis, Tayce, and Dashner submitted fraudulent loan documents to Community Trust Bank and secured five fraudulent loans totaling over $7,500,000.
Dashner was charged in the Eastern District of Texas with conspiracy to commit bank fraud. She pleaded guilty on May 18, 2017. At sentencing, Dashner faces up to five years in federal prison.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld, in cooperation with Assistant U.S. Attorney Matthew P. Wolesky of the Western District of Missouri and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas.
Historian Charged in Federal Court with Theft of Government Records from the National ArchivesRead the Press Release
FOR IMMEDIATE RELEASE
www.justice.gov/usao/mdContact Elizabeth Morse
at (410) 209-4885
Greenbelt, Maryland – Antonin DeHays, age 32, of College Park, Maryland, a historian, was charged by federal criminal complaint today with theft of government records from the National Archives and Records Administration (NARA).
The complaint was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Assistant Inspector General for Investigations Jason Metrick of the National Archives and Records Administration - Office of Inspector General.
Archivist of the United States David Ferriero stated, “The theft of our history should anger any citizen, but as a veteran I am shocked at allegations that a historian would show such disregard for records and artifacts documenting those captured or killed in World War II. Although we have increased our security measures in recent years, this case highlights the constant threat our records and artifacts face and why the security of the holdings of the National Archives is my highest priority.”
According to the affidavit filed in support of the complaint, between in or about October 2015 and on or about June 9, 2017, DeHays, a historian, repeatedly visited the National Archives at College Park, Maryland, and stole dog tags and other documents belonging to U.S. servicemen whose planes had crashed during World War II. DeHays sold the stolen dog tags on eBay. In addition, on at least one occasion, DeHays gave a stolen dog tag assigned to a Tuskegee Airman to a museum in Virginia, in exchange for an opportunity to sit inside a Spitfire airplane.
On June 9, 2017, investigators executed a federal search warrant at DeHays’s residence and seized six dog tags and other documents that had been stolen from National Archives at College Park.
If convicted, DeHays faces a maximum sentence of ten years in prison. An initial appearance was held for DeHays in U.S. District Court in Greenbelt on June 13, 2017.
A complaint is not a finding of guilt. An individual charged by complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
NARA Inspector General James Springs thanked all of the federal employees involved in this investigation, stating “Thefts from the Archives are thefts of history. We will work tirelessly to find those who would try to steal any record from the American people.”
Acting United States Attorney Stephen M. Schenning commended NARA – Office of Inspector General for their work in the investigation. Mr. Schenning also thanked Assistant United States Attorneys Nicolas A. Mitchell and Arun G. Rao, who are prosecuting the case.
Harrisburg Man Sentenced to 15 Years’ Imprisonment for Distributing Crack Cocaine and for Possessing A Firearm in Furtherance of Drug Trafficking ActivitiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on June 8, 2017, United States District Judge Sylvia Rambo sentenced Laquan Kellam, age 34, of Harrisburg, Pennsylvania, to 181 months’ imprisonment, for trafficking crack cocaine and for possessing a firearm in furtherance of drug trafficking.
According to United States Attorney Bruce D. Brandler, a jury convicted Kellam after a two-day trial of three counts of distributing crack cocaine, one count of possessing with the intent to distribute over 280 grams of crack cocaine and one count of possessing a firearm in furtherance of drug trafficking activities. Kellam distributed drugs in the Harrisburg area between June 20 and July 18, 2014.
Kellam has been in custody since the jury’s verdict.
The case was prosecuted by Assistant United States Attorneys Phillip J. Caraballo, Eric Pfisterer, and Meredith Taylor.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and by the Harrisburg City Police Department.
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.
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Hanover Businessman Sentenced to 3 Years in Prison on Bank Fraud and Money Laundering ChargesRead the Press Release
HARRISBURG – the United States Attorney’s Office for the Middle District of Pennsylvania announced today that Matthew S. Norris, Hanover, PA, age 34, the owner and operator of Norris Enterprises, d/b/a Aerus Electrolux, was sentenced yesterday by U.S. District Court Judge Sylvia H. Rambo to serve three years’ imprisonment and pay $148,852 in restitution on bank fraud and money laundering charges.
According to United States Attorney Bruce D. Brandler, Norris devised and executed a bank fraud scheme in 2011 that defrauded GE Bank out of $157,785. In 2011 Norris was the owner /operator of Aerus Electrolux, an authorized independent franchisee of Electrolux International, which was then located at 1125 York Street, in Hanover, PA. Norris executed the scheme by submitting credit applications under the names and personal identifiers of 25 of his customers to GE Bank without his customers’ knowledge or consent. By inflating their income on the electronic credit applications, Norris succeeded in obtaining lines of credit for his customers to purchase Electrolux products. Norris would then charge the accounts for fictional merchandise and, as a result, GE Bank would deposit the loan proceeds into his business account.
When the customers’ monthly credit card payments became due, Norris would make payments on their behalf without their knowledge from the proceeds of the scam. Monthly statements were never sent to the customers because, Norris listed his business address as their home address on their electronic credit applications.
The scheme was discovered in October of 2011 when an Electrolux executive became suspicious of Norris’ unusual sales transactions and initiated an onsite audit. When GE Bank learned what Norris had done, they immediately credited all amounts owed by the unwitting customers.
Judge Rambo also ordered Norris to serve three years of supervised release following his release from prison and ordered him to forfeit the sum of $157,782 to the United States. Judge Rambo directed Norris commence service of his three year sentence on July 26, 2017.
The case was investigated by the Harrisburg offices of the IRS Criminal Investigation Division and the U.S. Postal Inspection Service. The case was prosecuted by AUSA Kim Douglas Daniel.
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Granby Postal Carrier Indicted for Stealing MailRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Granby, Mo., postal carrier was indicted by a federal grand jury today for stealing mail.
James M. Chapman, 57, of Neosho, Mo., was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Chapman took cash from the mail matter entrusted to him as a postal carrier between May 1, 2016, and Feb. 23, 2017.
Chapman is also charged with one count of delaying mail delivery. Chapman allegedly delayed the delivery of mail between Dec. 5, 2016, and Feb. 23, 2017.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the U.S. Postal Service, Office of Inspector General.
Glen Carbon Man Pleads Guilty and Is Sentenced for Defrauding Victims from Prior ConvictionRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today, that Kenneth J. Lee, 54, of Glen Carbon in Madison County, Illinois, was sentenced on June 9, 2017 based upon his May 3, 2016, plea of guilty to a six-count information charging conspiracy to defraud, criminal contempt of court, mail fraud, making false statements and aggravated identity theft. The Court sentenced Lee to a term of imprisonment of 42 months, to be followed by three years of supervised release. The Court also ordered Lee to pay approximately $525,000 in restitution to victims of his fraud schemes.
In January of 2006, Lee pled guilty in United States District Court for the Eastern District of Missouri to charges that he had committed mail fraud and failed to file taxes. Lee was sentenced to prison, ordered to pay over $580,000 in restitution to his "Ponzi" scheme victims, and serve three years of supervised release after imprisonment. After his release from prison, he began serving his period of supervision in the Southern District of Illinois. While serving the term of supervised release Lee violated the 2006 order to repay his victims by failing to report to United States Probation and the United States Attorney’s Financial Litigation Unit, income and assets, that should have been used for restitution.
At his plea, Lee admitted that beginning in April of 2006 and continuing until July of 2015, Lee along with others agreed to utilize various entities, names, and ruses to conceal and disguise business dealings and assets. The defendant utilized assets generated by his various business and financial dealings to pay personal expenses while concealing those assets from the legitimate efforts of the government to obtain restitution for the defendant’s prior victims. During this time, Lee made false statements, created false documents, failed to comply with the order of the United States District Court for the Eastern District of Missouri, and, on at least one false document, used the name of a prior victim without permission, therein committing aggravated identity theft.
United States Attorney Donald S. Boyce complemented both investigative efforts by federal law enforcement as well as the supervision efforts of United States Probation. "The victims of this defendant have waited over 10 years for their savings to be paid back by a man who has worked tirelessly to continue his deception and fraud against his victims and the government’s efforts to get their money back. This prosecution is a sign that the victims, regardless of how much time has passed, are not forgotten, and that the men and women who investigate, and prosecute these cases will continue to work tirelessly to seek justice for them."
"Those who engage in this type of fraud should know they will not go undetected and will be held accountable," said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation.
The investigation was conducted by the Internal Revenue Service, Criminal Investigation, and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Fresno Man Arrested on Federal Copyright Violations for Alleged Illegal Upload of ‘Deadpool’ Movie to the InternetRead the Press Release
LOS ANGELES – A Fresno man was arrested this morning on a federal criminal charge of copyright infringement that alleges he posted the movie “Deadpool” to his Facebook page.
As a result of the illegal upload, more than 5 million people were able to view the film copyrighted by the Twentieth Century Fox Film Corporation.
Trevon Maurice Franklin, 21, who used the screen name “Tre-Von M. King,” allegedly uploaded “Deadpool” approximately eight days after its February 2016 release to theaters.
Franklin is charged in a one-count indictment returned by a federal grand jury on April 7 with reproducing and distributing a copyrighted work, a felony offense that carries a statutory maximum penalty of three years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Franklin is expected to make his initial court appearance this afternoon in United States District Court in Fresno.
The case against Franklin is the product of an investigation by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorneys Ryan White and Vicki Chou of the Cyber and Intellectual Property Crimes Section
Framingham Man Pleads Guilty to Sexually Exploiting Approximately 150 BoysRead the Press Release
BOSTON – A Framingham man pleaded guilty yesterday in federal court in Boston to sexually exploiting approximately 150 boys by posing as a teenage girl on the internet and convincing them to send nude photos and videos of themselves to him.
Curtis Simoneau, 24, pleaded guilty to two counts of coercion and enticement of a minor and one count of possession of child pornography. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Oct. 2, 2017.
On March 7, 2016, law enforcement in central Massachusetts responded to a complaint regarding the possible sexual exploitation of a 13-year-old boy. When an officer interviewed the victim and his parents, the victim said he began communicating with “Lauren James” via KiK Messenger, a mobile instant messaging app, in December 2015.
Simoneau, posing online as “Lauren James,” told the victim that he was a 14-year-old girl living in Maine and offered to exchange nude images and nude videos with the victim, which they did on multiple occasions. The victim believed he was in an online relationship with “Lauren.” The victim also told law enforcement that he had introduced his friend, a 12-year-old boy, to “Lauren” via KiK, and that his friend and “Lauren” also exchanged nude images. An interview with the second victim confirmed that he too had exchanged nude images with “Lauren.”
Law enforcement was able to identify Simoneau as the individual who was posing as “Lauren James” as well as his Framingham address. The investigation further determined that Simoneau was previously convicted in a Massachusetts state court of possession of child pornography and placed on probation.
During the execution of a federal search warrant of Simoneau’s home on Aug. 4, 2016, 1,128 videos of child pornography and 712 photos of child pornography were discovered on Simoneau’s digital devices. All of the child pornography in Simoneau’s collection had been sent to him by boys who believed they were sending nude and sexually suggestive material of themselves to a teenage girl. In total, Simoneau victimized approximately 150 boys.
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; and Framingham Police Chief Kenneth Ferguson made the announcement today. Assistant U.S. Attorney David G. Tobin of Weinreb’s Major Crimes Unit is prosecuting the case.
Four Men Indicted on Hobbs Act Robbery and Related Gun ChargesRead the Press Release
St. Thomas, USVI – Shaquielle Correa, 21, of St. Croix, made his initial appearance today before U.S. Magistrate Judge Ruth Miller after being charged by indictment with Hobbs Act robbery, conspiracy to commit Hobbs Act robbery, and brandishing a firearm during a federal crime of violence, Acting United States Attorney Joycelyn Hewlett announced. Correa, along with Jarmaine Ayala, 36, Wahilli James, 21, both of St. Croix, and Ron Delano Kuntz, 42, of St. Thomas, are charged in a conspiracy to rob Gems and Gold Corner Jewelry Store on St. Thomas. All four men are scheduled to be arraigned on June 26, 2017.
According to the indictment, on September 16, 2013, the four men conspired with each other and other unidentified co-conspirators to rob the store, brandished weapons to threaten and intimidate store employees, and then fled the store with merchandise.
If convicted, each of the four men face up to 20 years in prison on the Hobbs Act robbery charge, plus a mandatory seven-year consecutive sentence for the brandishing a firearm charge.
This case is being investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Anna A. Vlasova and Kim L. Chisholm.
Acting United States Attorney Hewlett reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Former Teacher's Assistant Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former teacher’s assistant at a Buffalo, Mo., elementary school pleaded guilty in federal court today to receiving child pornography.
Dalton Cole Sherman, 20, of Buffalo, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Dec. 8, 2015, federal indictment.
Sherman was a teacher’s assistant at the DA Mallory Elementary School in Buffalo at the time of the offense. School officials contacted law enforcement officials on June 11, 2015, and reported that a pen camera had been located in a bathroom used by teachers and children. The pen camera was behind a standup mirror in the bathroom and had a light on the camera. Sherman, who had been going in and out of the bathroom for unknown reasons, was detained and transported to the Dallas County Sheriff’s Department for questioning.
Sherman admitted he placed the pen camera in the bathroom on top of some plastic totes and behind the mirror that morning. Sherman checked the camera two times, turning it off and on. Sherman stated he transferred the videos to his Nook tablet to watch them at home.
Law enforcement officers executed a search warrant at Sherman’s residence on June 18, 2015. Investigators found several videos on the pen camera that depict 5-to-6-year-old children using the toilet. Investigators also found 90 images of child pornography, which had been downloaded from the Internet, on Sherman’s Nook tablet.
Under the terms of today’s plea agreement, if accepted by the U.S. District Court Judge, Sherman will be sentenced to 12 years in federal prison without parole and a lifetime term of supervised release following incarceration.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Dallas County, Mo., Sheriff’s Department, the Missouri State Technical Assistant Team, and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former State Department Employee Pleads Guilty to Theft of FundsRead the Press Release
ALEXANDRIA, Va. – A former employee of the U.S. Department of State’s Bureau of Diplomatic Security pleaded guilty today to defrauding the government of approximately $198,000 in funds paid under the Federal Employee’s Compensation Act (FECA), commonly referred to as workers’ compensation.
According to the statement of facts filed with the plea agreement, James Cason Overton, 38, of Newport News, was injured in work-related training in August 2011, just months after the U.S. Department of State hired him. The U.S. Department of Labor, the administrator of FECA benefits, determined Overton was entitled to a monthly benefit equal to 75% of his salary, resulting in monthly payments between September 2011 and March 2016 totaling $198,633.67. During that timeframe, Overton answered questions about his earnings and employment on four different U.S. Department of Labor questionnaires, reporting a total of only $2,330 in earnings. According to the statement of facts, Overton knew that he made false statements about his earnings and employment on each questionnaire because he omitted from the questionnaires that he was the president and majority owner of a company identified in court documents as COMPANY A. During the time Overton was paid FECA benefits, COMPANY A received approximately $260,000 in government contracts, including contracts from the U.S. Department of State, exceeded $2,078,219 in gross profits, and Overton was personally paid approximately $370,000 in salary or other earnings.
According to the plea agreement, Overton agreed to restitution and forfeiture for the entire amount of the FECA benefits he fraudulently received. He also agreed to pay $3,650 in restitution to the U.S. Department of Education because, according to the statement of facts, he made false statements about his income that led to his receipt of Federal Pell Grants at a university he attended.
Overton pleaded guilty to theft of government funds, and faces a maximum penalty of 10 years in prison when sentenced on September 22. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Steve A. Linick, Inspector General for the Department of State; Aaron R. Jordan, Assistant Inspector General for Investigations with the U.S. Department of Education Office of Inspector General; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Special Assistant U.S. Attorney Brian D. Harrison is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-107.
Former State Department Employee Pleads Guilty to Theft of FundsRead the Press Release
ALEXANDRIA, Va. – A former employee of the U.S. Department of State’s Bureau of Diplomatic Security pleaded guilty today to defrauding the government of approximately $198,000 in funds paid under the Federal Employee’s Compensation Act (FECA), commonly referred to as workers’ compensation.
According to the statement of facts filed with the plea agreement, James Cason Overton, 38, of Newport News, was injured in work-related training in August 2011, just months after the U.S. Department of State hired him. The U.S. Department of Labor, the administrator of FECA benefits, determined Overton was entitled to a monthly benefit equal to 75% of his salary, resulting in monthly payments between September 2011 and March 2016 totaling $198,633.67. During that timeframe, Overton answered questions about his earnings and employment on four different U.S. Department of Labor questionnaires, reporting a total of only $2,330 in earnings. According to the statement of facts, Overton knew that he made false statements about his earnings and employment on each questionnaire because he omitted from the questionnaires that he was the president and majority owner of a company identified in court documents as COMPANY A. During the time Overton was paid FECA benefits, COMPANY A received approximately $260,000 in government contracts, including contracts from the U.S. Department of State, exceeded $2,078,219 in gross profits, and Overton was personally paid approximately $370,000 in salary or other earnings.
According to the plea agreement, Overton agreed to restitution and forfeiture for the entire amount of the FECA benefits he fraudulently received. He also agreed to pay $3,650 in restitution to the U.S. Department of Education because, according to the statement of facts, he made false statements about his income that led to his receipt of Federal Pell Grants at a university he attended.
Overton pleaded guilty to theft of government funds, and faces a maximum penalty of 10 years in prison when sentenced on September 22. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Steve A. Linick, Inspector General for the Department of State; Aaron R. Jordan, Assistant Inspector General for Investigations with the U.S. Department of Education Office of Inspector General; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Special Assistant U.S. Attorney Brian D. Harrison is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-107.
Former Las Cruces Elementary School Janitor Sentenced to Eight Years for Federal Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – David Anaya Garcia, 33, of Las Cruces, N.M., was sentenced today in federal court to 96 months in prison followed by five years of supervised release for his conviction on a federal child pornography charge. Garcia will be required to register as a sex offender when he completes his prison sentence. At the time he committed the crime, Garcia was employed as a janitor in a Las Cruces elementary school.
Garcia was arrested in July 2015, on a criminal complaint charging him with distribution of child pornography and possession of child pornography. According to the complaint, Homeland Security Investigations (HSI) initiated the federal investigation leading to Garcia’s arrest in June 2015, after the New Mexico Office of the Attorney General reported that an investigation by the New Mexico Internet Crimes Against Children (ICAC) Task Force revealed that an IP Address subscribed to Garcia’s residential address was being used to download child pornography. The Las Cruces Police Department and HSI arrested Garcia and executed a federal search warrant at his residence on July 1, 2015.
Garcia was subsequently indicted on Sept. 16, 2015, and charged with distributing child pornography on March 26, 2015, receiving child pornography from March 2015 through April 2015, and possessing child pornography on July 1, 2015. The indictment alleged that Garcia committed the crimes in Doña Ana County, N.M.
On Feb. 8, 2016, Garcia pled guilty to receipt and distribution of child pornography and admitted that between March 12, 2015 and April 30, 2015, he distributed child pornography through file-sharing software that allowed others to download the images and videos he saved to a shared folder. Garcia further admitted that on July 2, 2015, agents from HSI executed a search warrant on his home where they seized an HP Pavilion laptop containing five images and 88 videos depicting child pornography and a thumb-drive containing 56 images and 55 videos depicting child pornography.
This case was investigated by the Las Cruces office of HSI, the Las Cruces Police Department, the New Mexico Office of the Attorney General, the New Mexico ICAC Task Force and the New Mexico Regional Computer Forensic Laboratory. The case was prosecuted by Assistant U.S. Attorney Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 86 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Central Texas Dentention Facility - GEO Prison Guard Sentenced to Prison for Sexual Abuse of a WardRead the Press Release
In San Antonio, 35-year-old former Central Texas Detention Facility—G.E.O. prison guard Barbara Jean Goodwin was sentenced to federal prison after admitting to having sexual relations with an inmate, announced United States Attorney Richard L. Durbin, Jr.; United States Marshal David Sligh; and, Christopher Combs, FBI Special Agent in Charge, San Antonio Division.
Appearing before Senior United States District Judge David A. Ezra this morning, Goodwin was sentenced to 5 months imprisonment to be followed by 5 months home confinement. Goodwin also was ordered to serve a 2 year supervised release term and register as a sex offender.
On March 14, 2017, Goodwin pleaded guilty to one count of sexual abuse of a ward. By pleading guilty, Goodwin admitted that from February 2016 to August 2016, she engaged in sexual acts with a federal prisoner who at the time was under her custodial, supervisory or disciplinary authority.
Goodwin was ordered to self-surrender in July to start her prison term.
This investigation was conducted by the U.S. Marshals Service together with the Federal Bureau of Investigation. Assistant United States Attorneys Sarah Wannarka and Christina Playton are prosecuting this case on behalf of the Government.
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Florida Corporation Pleads Guilty to Wire Fraud Related to Falsified Water TestingRead the Press Release
Dothan, Ala. – Last Thursday, June 8, 2017, Roberson Excavation, Inc. (Roberson Excavation), a company headquartered in Milton, Florida, pled guilty to committing wire fraud, announced Acting United States Attorney A. Clark Morris. The conviction stemmed from a company employee falsifying water samples during the installation of new water lines in Dale County, Alabama. That employee, Darin Lewis, 46, of Crestview, Florida, previously pled guilty to conspiring to commit wire fraud.
The company initially proceeded to trial but changed its plea before it concluded. According to the trial evidence, in 2014, the Dale County Water Authority hired Roberson Excavation to install new water lines in the Marley Mill area of Dale County. Roberson Excavation was supposed to complete the project by November of 2014, however it failed to do so. As a result, the company began paying penalties of $500 for each day the project went incomplete. In January of 2015, Roberson Excavation hired Lewis to serve as the project’s foreman. In an effort to speed along the completion of the project, Lewis devised a scheme to falsify the bacteriological testing required to place the new water lines into service.
Specifically, on February 17, 2015, Lewis, acting on behalf of Roberson Excavation, submitted to a laboratory water from a portion of the new lines that had already been tested and shown to be clear of bacteria. When he did so, Lewis falsely claimed that he had drawn the water from an untested portion of the line. As a result of Lewis’s actions, Roberson Excavation was able to place into service water lines that had never been properly tested for harmful bacteria.
“Roberson Excavation clearly placed profit over the well-being of an entire community,” stated Acting United States Attorney Morris. “We are thankful that no one became sick as a result of this unlawful corner-cutting and the responsible parties deserve to be held accountable for their potentially dangerous actions. Access to clean drinking water is essential for our daily living—my office, in partnership with the Environmental Protection Agency— will work diligently to ensure that the residents of our district are not deprived of such a basic necessity.”
"The falsification of laboratory data, which was funded by U.S. Environmental Protection Agency (EPA) state revolving funds, is completely unacceptable," said Sean Earle, Acting Special Agent in Charge of the Atlanta Field Office, EPA, Office of Inspector General. "This guilty plea by Roberson Excavation, Inc. demonstrates the OIG's commitment to work successfully with our law enforcement partners."
On September 11, 2017, United States District Judge Carlos E. Mendoza will sentence Roberson Excavation and Lewis. Roberson Excavation faces a maximum fine of $250,000.00. Lewis faces a sentence of up to five years in prison. Additionally, as restitution, Roberson Excavation has agreed to release to the Dale County Water Authority up to $154,000 in money that Roberson Excavation had previously claimed.
This case was investigated by the Environmental Protection Agency’s Criminal Investigations Division and Office of Inspector General. Assistant United States Attorneys Jonathan S. Ross and R. Rand Neeley are prosecuting the case.
Federal Prosecutions in North Dakota Explode with Opiate CrisisRead the Press Release
FARGO - US Attorney Christopher C. Myers announced today that over the last 24 months, thirty-seven (37) individuals have been charged or sentenced with heroin and/or fentanyl related crimes in federal court within the District of North Dakota.
US Attorney Myers stated, “We have prosecuted more fentanyl-related cases in federal court in North Dakota in the past two years than in the previous 10 years combined. There are a number of reasons why. First, we are aggressively targeting opiate traffickers whose product causes serious bodily harm or death. Second, with the introduction of substances like fentanyl, carfentanil, and their analogues into the local drug market, the level of risk to users, or even those people inadvertently exposed, has increased dramatically. Finally, the opiate epidemic is a healthcare crisis in North Dakota, as well as across the United States. With so many people addicted to these substances, the demand created makes it a lucrative endeavor for drug trafficking organizations.”
The following individuals have been sentenced for their roles in the trafficking of heroin, fentanyl, and/or analogues:
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Jameson Robert Sele - Pled guilty to Conspiracy to Distribute Controlled Substances, and was sentenced on July 27, 2015, to 3 years incarceration.
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Ryan Jon Jensen - Pled guilty to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; two Counts of Distribution of a Controlled Substance Resulting in Death; Distribution of a Controlled Substance Resulting in Serious Bodily Injury; and Money Laundering Conspiracy. Jensen was sentenced on February 2, 2016, to 20 years incarceration.
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David Todd Noye Jr. - Pled guilty to Conspiracy to Distribute Controlled Substances, and was sentenced on January 25, 2016, to 3 years and 3 months incarceration.
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Joshua Tyler Fulp - Pled guilty to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death, and was sentenced on January 27, 2016, to 12 years incarceration.
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Kain Daniel Schwandt - Pled guilty to Conspiracy to Distribute Controlled Substances, and was sentenced on January 25, 2016, to 3 ½ years incarceration.
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Brandon Corde Hubbard - Pled guilty to Conspiracy to Distribute Controlled Substances Resulting in Serious Bodily Injury and Death; Distribution of a Controlled Substance Resulting in Death; and Money Laundering Conspiracy. Hubbard was sentenced on July 13, 2016, to incarceration for the remainder of his natural life.
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Braden James Foley - Pled guilty to Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance, and was sentenced on November 21, 2016, to 2 ½ years incarceration.
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Gregory Alan Krutsinger – Pled guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance Resulting in Serious Bodily Injury, and was sentenced on October 4, 2016, to 18 years incarceration.
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Tyrone Wilburn – Pled guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance Resulting in Serious Bodily Injury, and was sentenced on January 23, 2017, to 12 ½ years incarceration.
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John Michael Iten – Pled guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance, and was sentenced on May 15, 2017, to 5 years incarceration.
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Dalton Lavelle White – Pled guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance Resulting in Serious Bodily Injury, and was sentenced on May 15, 2017, to 18 ½ years incarceration.
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Brandon Beyer – Pled guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance, and was sentenced on October 19, 2016, to 4 years incarceration.
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Steven Jay Maynard Hoffman – Pled guilty to Possession with Intent to Distribute a Controlled Substance, and was sentenced on January 25, 2017, to 4 ½ years incarceration.
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Naomi Marie Danielson – Pled guilty to Possession with Intent to Distribute a Controlled Substance, and was sentenced on November 30, 2016, to 2 years incarceration.
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Matthew Gerald Davis – Pled guilty to Distribution of a Controlled Substance, and was sentenced on February 6, 2017, to 5 years incarceration.
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Laquan Andre Thomas -Pled guilty to Possession with Intent to Distribute a Controlled Substance and Controlled Substance Analogues, and was sentenced on May 8, 2017, to 5 years incarceration.
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Rocky Laurence Fowler - Pled guilty to Conspiracy to Possess with Intent to Distribute a Controlled Substance, and was sentenced on February 21, 2017, to 3 months’ incarceration followed by 3 years supervised release.
Myers added: “The average sentence for the above cases is roughly 9 ½ years in federal prison. It is no secret that the penalties in federal court for drug trafficking are much more severe than state court. We want drug traffickers to understand that if you traffic in fentanyl or similar substances in North Dakota, no matter what the amount, you will likely find yourself in federal court.”
The following individuals have pled guilty for their role in distributing heroin, fentanyl, or various analogues:
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Ronnie Lee Helms - Pled guilty on March 1, 2017, to Conspiracy to Possess with Intent to Distribute a Controlled Substance and Controlled Substance Analogue Resulting in Serious Bodily Injury and Death; sentencing set for July 31, 2017.
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Brandon Joseph Jacobs – Pled guilty on January 25, 2017, to Distribution of a Controlled Substance; sentencing set for June 12, 2017.
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Caleb Austin Ross - Pled guilty on April 24, 2017, to Possession with Intent to Distribute a Controlled Substance Analogue Within 1000 Feet of a School; sentencing set for August 17, 2017.
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Zachary David Chyle – Pled guilty on March 27, 2017, to Conspiracy to Possess with Intent to Distribute Resulting in Death and Distribution of a Controlled Substance Resulting in Death; sentencing set for July 31, 2017.
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Christian Harris – Pled guilty on February 22, 2017, to Conspiracy to Possess with Intent to Distribute a Controlled Substance; sentencing set for June 15, 2017.
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Joshua Robert Duran - Pled guilty on May 8, 2017, to Possession of a Firearm or Ammunition by a Prohibited Person; sentencing set for September 11, 2017.
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Nathan Alan Goldsack - Pled guilty on September 14, 2016, to Conspiracy to Possess with Intent to Distribute a Controlled Substance; two Counts of Possession with Intent to Distribute Heroin; two Counts of Possession with Intent to Distribute Methamphetamine; awaiting a sentencing date
Drug Enforcement Administration Assistant Special Agent in Charge Kenneth J. Solek said, “As the lead federal agency responsible for the enforcement of our Nation’s drug laws, the DEA will continue to be an active law enforcement partner with all federal, state, and local law enforcement entities that are combating the scourge of opioid abuse and the harm which results. This issue is both a North Dakota and National public safety concern since a minute amount can and often results in death. DEA will continue its partnership with both the United States Attorney’s Office and local state prosecutors to ensure that those who are responsible for the tremendous pain being levied on our communities are held fully accountable. DEA fully supports demand reduction efforts and will continue to engage the public in open forums, safety bulletins and media outreach, in an attempt to better inform the public as to the dangers associated with heroin, fentanyl, and all dangerous drugs.”
“These are dangerous substances that destroy everything they touch, tear apart lives, and ruin communities,” said Special Agent in Charge Alex Khu of Homeland Security Investigation - St. Paul. “Fentanyl and carfentanil alone are exponentially more dangerous than heroin, and are so hazardous that even law enforcement must take special precautions during arrests. The significant increase in arrests and aggressive prosecutions against the people pushing these drugs demonstrates the intensity and tenacity with which law enforcement is attacking this issue and highlights what successful partnerships can accomplish.”
An additional thirteen (13) defendants have been indicted on opiate-related charges and are awaiting trial this summer and fall.
Myers concluded, “Law enforcement cannot arrest our way out of this crisis; however, targeting the traffickers of these substances is an important part of the strategy. Only with community commitment to a multi-faceted approach and participation by leaders in treatment, healthcare, education, law enforcement, faith organizations, businesses, as well as all sectors of our communities, will we find some measure of success. There is hope if we continue to work together.”
An Indictment is merely an accusation, a method by which a person is charged with criminal activity; individuals charged are presumed innocent until, and unless, proven guilty.
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Federal Prison Chaplain Sentenced for BriberyRead the Press Release
BEAUMONT, Texas – A 43-year-old federal prison chaplain has been sentenced for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Eric S. Patrick, of Nederland, Texas, pleaded guilty on Jan. 19, 2017, to bribery of a public official and was sentenced to one year and one day in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, in July 2015, investigators at the U.S. Penitentiary in Beaumont, Texas seized two gallon bags of tobacco and rolling papers from inmates at the prison. An investigation revealed that Patrick, while employed by the U.S. Bureau of Prisons as a chaplain at the prison, was smuggling tobacco and cigarettes into the prison for inmates. To facilitate the scheme, Patrick set up several scam post office boxes and charged inmates $1,500 in each instance.
This case was investigated by the Department of Justice – Office of the Inspector General, the U.S. Postal Inspection Service, and the Drug Enforcement Administration. This case was prosecuted by Assistant U.S. Attorney John Craft.
Federal Jury Convicts Husband, Wife and Son of Conspiracy to Defraud Nicholasville BusinessRead the Press Release
LEXINGTON, Ky. – Following an eight-day trial, a federal jury sitting in Lexington has convicted
James Minton, 70, Joyce Minton, 65, and Aaron Brooke Warren, 43, all of Nicholasville, Ky., of
numerous counts of conspiracy, mail fraud, bank fraud, and money laundering.According to the evidence presented, James Minton, Joyce Minton, and Aaron Brooke Warren conspired
to defraud their employer, Clark Machine Tool and Die, of Nicholasville. The criminal conspiracy
took place from February 2000 through May 2016 and resulted in a loss in excess of $1,500,000. The
conspirators defrauded the business by using company checks and credit cards to purchase personal
items, by cashing and keeping company petty cash checks, by issuing themselves extra paychecks, and
by inflating their paychecks. They also kept money that customers had paid the company for work,
converting those funds to their personal use. Joyce Minton was the office manager and bookkeeper
for the company; Aaron Brooke Warren was the company’s shop supervisor; and James Minton was a
contractor.On Monday, the jury convicted Joyce Minton of 46 counts of conspiracy, mail fraud, bank fraud, and
money laundering; Aaron Brooke Warren was convicted of 34 counts of conspiracy, mail fraud, and
money laundering; and James Minton was convicted of 7 counts of conspiracy and mail fraud.Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Amy Hess,
Special Agent in Charge, Federal Bureau of Investigation; and Richard W. Sanders, Commissioner of
the Kentucky State Police, jointly announced the verdict.The case was investigated by the FBI and the Kentucky State Police. Assistant U.S. Attorneys Neeraj
Gupta and Ken Taylor prosecuted the case on behalf of the federal government.The Defendants are currently scheduled to be sentenced on September 25, 2017, in Lexington. They
face a maximum sentence of 30 years for the convictions, as well as potential restitution and
forfeiture. Any sentence, however, will be imposed by the Court, after it has considered the U.S.
Sentencing Guidelines and the federal statutes governing the imposition of sentences.
Eighth Loiza Boys Gang Associate Sentenced to 17 and ½ Years in Prison on Drug 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 Oneil Quinones, 32, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine, was sentenced to 210 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Wei Xiang, who handled the sentencing, stated that the defendant was an associate of a gang known as the Loiza Boys, which has been distributing heroin and cocaine on Buffalo’s West Side since at least 2006.
The defendant was charged in 2013 along with nine co-conspirators following a long-term investigation that involved the interception of telephone calls of various defendants and the use of undercover drug purchases from some of those charged. During the investigation, law enforcement officers seized over 450 grams of heroin, three firearms, and over $70,000 in U.S. currency.
Nine of the 10 defendants have been convicted. The remaining defendant, Josbel Garcia, is scheduled to go to trial on November 14, 2017. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the culmination of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
East Helena Woman Sentenced to Five Years in Prison for Health Care Fraud and Tax EvasionRead the Press Release
HELENA – Elizabeth Jones Powell, 52, of East Helena, Montana, was sentenced today to five years imprisonment and three years supervised release for health care fraud and tax evasion. She was also ordered to pay $420,891.08 to four insurers and $43,514 to the Internal Revenue Service. U.S. District Court Judge Sam E. Haddon presided over the sentencing.
In court documents, federal prosecutor Chad Spraker wrote that in 2012, the Montana Surveillance and Utilization Review Section (SURS) noticed irregularities in physical therapist Gordon Jones practice’s billing to Medicaid. In particular, from June 2009 to July 2012, Medicaid received claims for only five Medicaid beneficiaries: Powell, her husband, and their three children. The practice was also billing for services nearly seven days a week.
After observing the irregularities, SURS requested documents from the practice in April 2012 to support its claims. SURS did not receive a response, so it made another request for documentation in June 2012. SURS received documents in response to the second request, though not an adequate one. In particular, SURS noted the records contained duplicate wording and consistent misspellings across patient files; the records failed to include dates of service one would expect in the records; the records appeared to be signed by someone other than Jones; and the records contained no written referrals for physical therapy.
A DCI Agent conducted surveillance on Jones’s business and residence for several days in August 2012 to determine whether any beneficiaries were visiting the practice. Medicaid later received claims on those dates for one of Powell’s children who was at work at the time. State authorities executed a search warrant on Jones’ business and residence in April 2013. During the search, officers seized a computer showing that Medicaid patient files for the Powell family were created shortly after the SURS request.
The agent interviewed the family members for which the practice billed Medicaid. Claims for one of Powell’s children were billed for 233 days in 2009 and 2010 when in reality she had been to physical therapy approximately five times in her entire life. Prior to and interview with Powell’s child, Powell called and attempted to persuade her that she received multiple physical therapy treatments from Gordon because she had hurt her neck after falling off a riding lawn mower.
The Powell family was categorically ineligible to receive Medicaid from October 2009 to May 2013, due to the misrepresentations and omissions Powell made on their eligibility paperwork. In addition to $290,476 in fraudulent Medicaid claims made through Gordon’s practice, the family received treatment from 63 other medical providers resulting in a $25,664 loss to Medicaid. The Powell family also received 63 different medications resulting in an $18,343 loss to Medicaid.
Powell also filed several false tax returns during her health care fraud scheme. From 2010 through 2012, Powell filed IRS Forms 1099 that substantially understated her income. According to Powell’s accountant, each year Powell provided him with figures stating the amount of income Powell received from the physical therapy practice, which the accountant then listed on Powell’s return to the IRS. After Powell’s fraud came to light, Gordon and his son provided the accountant with a spreadsheet detailing the additional funds Powell took from the practice. The accountant then issued Powell amended Forms 1099 listing the additional income. Powell did not file an amended return reflecting that income.
The U.S. Attorney’s Office conducted a separate review of Gordon’s bank account and computed the monies Powell diverted from the bank account for her own benefit. The analysis also revealed insurance checks Powell diverted from the practice and deposited into bank accounts Gordon had no control over. Further, Powell transferred funds from Gordon’s account to bank accounts held in the names of her children before spending the money.
This case was prosecuted by Assistant U.S. Attorney Chad C. Spraker and investigated by the Montana Division of Criminal Investigation and the Internal Revenue Service Criminal Investigation Division.
Eagle Butte Man Charged with PerjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Perjury and False Declaration Before a Court.
Charlie Warren Marshall, age 26, was indicted on May 16, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 8, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about the 13th day of March, 2017, Marshall, after having taken an oath before a U.S. District Judge for the District of South Dakota that he would testify, declare, depose and certify truthfully, knowingly and willfully stated that he was not under the influence of alcohol at his change of plea hearing, when he knew that statement to be false.
The charges are merely accusations and Marshall is presumed innocent until and unless proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Marshall was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dubuque Man Sentenced to 99 Months in Federal Prison for Possessing Methamphetamine and Guns at a Home Where Children Were PresentRead the Press Release
A man who possessed methamphetamine with intent to distribute it in a home where children were present and lived and who also illegally possessed guns was sentenced June 12, 2017, to more than eight years in federal prison.
Brian Paul Kamm, age 34, from Dubuque, Iowa, received the prison term after a March 9, 2017, guilty plea to one count of possession with intent to distribute a controlled substance on a premises in which individuals under the age of 18 were present and resided and one count of possession of firearms and ammunition by a drug user.
At the guilty plea, Kamm admitted that on August 4, 2016, he was in possession of at least 35 grams of pure methamphetamine in his house, which he intended to distribute to another person. Kamm also admitted that there were two minors present and that they resided at the house at the same time he possessed the methamphetamine there. Kamm further admitted possessing three handguns and ammunition, while he was an unlawful user of marijuana and methamphetamine.
Kamm was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Kamm was sentenced to a total of 99 months’ imprisonment on the drug charge with 17 months of the sentence specifically assessed due to the minors being present and residing at the residence. A special assessment of $200 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Kamm is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Dubuque Police Department, the Dubuque Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-01002-001.
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Dual Citizen Sentenced to 21 Months in Prison for Kidnapping His Child and Taking Her to TurkeyRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Salih Zeki Uces (39) to 21 months in federal prison for international parental kidnapping. A federal jury found him guilty on March 2, 2017.
According to testimony and evidence presented at trial, on September 16, 2016, Uces asked his estranged wife for an overnight visit with their two-year old child at a Jacksonville hotel and promised to return her on the following day or the day after. Instead, he took the toddler to the Jacksonville International Airport and boarded a series of three flights bound for Adana, Turkey.
Two days before taking the child, Uces went to his estranged wife’s apartment, rifled through her personal items, and stole the child’s passport. While in her apartment, he also viewed a draft divorce petition in his wife’s email.
Three days before leaving, Uces signed a power of attorney over to his brother, allowing his brother to sell Uces’s car while he was in Turkey. On the day of the kidnapping, Uces closed out his safety deposit box at a local bank branch.
Uces refused his estranged wife’s requests to return the child until after he learned that a state court had issued an authorization for his arrest. Ultimately, on November 10, 2016, he returned to the United States with the child and was arrested by FBI agents. The child was immediately returned to her mother.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Kelly Karase.
Dresden Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Daniel Pallis, 29, of Dresden, Maine, pled guilty today in U.S. District Court to conspiring to distribute heroin and cocaine base, commonly known as “crack.”
According to court records, between January 2015 and October 2016, Pallis conspired with others to distribute heroin and crack throughout communities in Central Maine. He distributed drugs that he had obtained from other co-conspirators. Investigators used a confidential informant to order drugs from one co-conspirator, who directed the informant to Pallis, who then completed the transaction.
The charge carries a sentence of up to 20 years in prison, a $1,000,000 fine, and at least three years of supervised release. Pallis will be sentenced after the completion of a presentence investigation report by the U.S. Probation office.
The case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, and the Kennebec County Sheriff’s Department, with assistance provided by the Augusta, Maine Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Dodge County Pharmacy and Pharmacist Agree to Pay over $2 Million to Resolve False Claims Act and Controlled Substances Act AllegationsRead the Press Release
SAVANNAH, GA: Rhine Drug Company and Andrew “Carter” Clements, Jr. agreed to pay a total of $2.175 million to resolve allegations that they violated the False Claims Act and the Controlled Substances Act. This settlement is the largest False Claims Act recovery with a pharmacy or pharmacist and largest recovery of civil penalties under the Controlled Substances Act in the history of the Southern District of Georgia.
The settlement resulted from a joint investigation by the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), the Drug Enforcement Administration (“DEA”), and the United States Attorney’s Office for the Southern District of Georgia. Based on its investigation, the United States contended that Rhine Drug Company and Clements violated the False Claims Act by submitting claims to Medicare for drugs that Rhine Drug Company did not dispense to patients. The United States further contended that Rhine Drug Company and Clements violated the Controlled Substances Act by negligently failing to make, keep, or furnish certain records as required by federal law.
Acting United States Attorney James Durham said, “Pharmacists are supposed to bill only for what they dispense and they’re to keep accurate records of the prescription drugs they let walk out of their pharmacies. This U. S. Attorney’s Office will hold accountable those pharmacists and pharmacies that seek financial gain at the expense of the public by cutting corners.”
“Billing Medicare for prescription drugs that were never dispensed to patients is a serious allegation,” said Derrick L Jackson, Special Agent in Charge of the HHS-OIG Office in Atlanta. “Our agency, in concert with our law enforcement partners, is dedicated to safeguarding the integrity of all federally funded health care programs.”
“Americans rely on medical professionals, to include pharmacists and pharmacy owners, to keep accurate records of controlled substances, and the DEA is committed to stopping individuals from engaging in such unlawful acts,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division. “We are satisfied that Rhine Drug Company and Clements are being held accountable for their alleged violations of the law.”
Rhine Drug Company and Clements fully cooperated with the investigation and promptly approached the United States to reach a resolution. The claims resolved by this settlement are allegations only; there has been no determination of liability. While this settlement fully resolves the allegations against Clements and Rhine Drug Company, investigations remain ongoing as to others.
The case was investigated by HHS-OIG Special Agent Martin Rowe; DEA Diversion Investigators Josh Barnes and Saul Melendez; Investigator Kimberly Reinken-Creamer of the United States Attorney’s Office, Southern District of Georgia; and Law Clerk Alison Slagowitz of the United States Attorney’s Office, Southern District of Georgia. The United States was represented by Assistant United States Attorney J. Thomas Clarkson. For additional information, please contact the United States Attorney’s Office at (912) 201-2522.
Disbarred Winter Park Attorney Sentenced to 10 Years for Defrauding Clients and Banks of $2.7 MillionRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Julie W. Kronhaus (52, Winter Park) to 10 years in federal prison for wire and bank fraud. In addition, she was ordered to pay over $2.7 million in restitution.
Kronhaus pleaded guilty on January 24, 2017.
According to court documents, from June 2009 to February 17, 2015, Kronhaus, who was a licensed attorney and Certified Public Accountant in Florida, defrauded her clients and banks of approximately $2.7 million. As part of her practice, Kronhaus acted as a trustee for her clients and also held their money in various bank accounts. Rather than using the funds for the purpose intended by her clients, Kronhaus diverted the money into her law firm’s bank accounts and paid for her personal expenses.
In addition, Kronhaus engaged in a check kiting scheme where she wrote checks from accounts that had insufficient funds. She deposited the worthless checks into her trust account at another bank to give the appearance that there were sufficient funds in the account. She then issued checks from her trust account to her clients, taking advantage of the bank’s float time.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney James D. Mandolfo.