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25 July 2017
Four Lawrence Residents Plead Guilty to Conspiracy to Distribute HeroinRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that four residents of Lawrence, Massachusetts, pleaded guilty to conspiring to distribute and to possess with the intent to distribute heroin during a period beginning in 2013 and ending in October 2016.
The defendants were part of an indictment returned by the grand jury for the District of New Hampshire on October 5, 2016, charging 16 individuals with participating in the conspiracy.
According to documents on file with the court and statements made during the change of plea hearings, the drug trafficking organization responsible for distributing heroin was managed by Alberto Guerrero Marte, age 34. Day to day customer orders for heroin were taken by Michell DeJesus, age 37, and the information was provided to Marte. The heroin was delivered to the customers at various residences in Massachusetts by Maribel Santiago Ramos, age 34, and others. Each of these defendants admitted to trafficking one kilogram or more of heroin during the conspiracy.
Defendant Allison DeJesus, age 18, also took customer orders for heroin and re-supplied Santiago Ramos when deliveries were made.
A sentencing hearing has been scheduled for October 27, 2017, for Allison DeJesus. Sentencing hearings have been scheduled for November 1, 2017, for Marte, Michell DeJesus, and Maribel Santiago Ramos. The United States has agreed to recommend a sentence of 15 years for defendant Marte and a sentence of five years of probation for defendant Allison DeJesus. The sentences for the remaining defendants will be determined at the time of sentencing.
“Opioid abuse is at epidemic levels in the Granite State and those suffering from the disease of heroin and fentanyl addiction need access to treatment and recovery,” said Special Agent in Charge Michael J. Ferguson. “But, those responsible for distributing lethal drugs like heroin to the citizens of New Hampshire need to be held accountable for their actions. DEA is committed to aggressively pursue Drug Trafficking Organizations or individuals who are coming from out of state to distribute this poison across New Hampshire in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
Defendant Luis Rodriguez Lugo is scheduled for trial on September 6, 2017. Defendants Jonaly DeJesus, Allan Pimentel, Santo Garcia Mendez, Wilkin Beltre Aria, Alfredo Gonzalez, Querzon Baez, Pedro Vincente Guerrero, Jose Pimentel and Edward Garcia are scheduled for trial on October 3, 2017.
The case was investigated by the DEA; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. This case was prosecuted by Assistant United States Attorney Don Feith.
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Fort Wayne Man Sentenced to 70 Months ImprisonmentRead the Press Release
FORT WAYNE – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Antonio Cortez Harris, age 25, of Fort Wayne, Indiana, was sentenced before United States District Court Judge Theresa Springmann to possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime.
Harris was sentenced to 70 months imprisonment and 3 years of supervised release.
According to documents filed in this case, on or about February 9, 2016, Harris possessed with intent to distribute less than 100 grams or more of a substance containing a detectable amount of heroin and possessed a firearm in furtherance of a drug trafficking crime.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration with the assistance of the Fort Wayne Police Department. This case was handled by Assistant United States Attorney Stacey R. Speith.
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Fort Wayne Man Sentenced to 70 MonthsRead the Press Release
FORT WAYNE – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Ronnie Rutherford Jr., age 40, of Fort Wayne, Indiana, was sentenced before United States District Court Judge Theresa Springmann on federal convictions of possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.
Rutherford was sentenced to 70 months imprisonment and 2 years of supervised release.
According to documents filed in this case, between December 30, 2013 and February 17, 2014, Ruthererford possessed a firearm in furtherance of a drug trafficking crime and possessed a firearm after having been convicted felony Attempted Burglary and felony Theft.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of Fort Wayne Police Department and was handled by Assistant United States Attorney Anthony W. Geller.
Former Truckee Resident Indicted for $1.7m Investment FraudRead the Press Release
SACRAMENTO, Calif. — Patrick Slavin, 55, formerly of Truckee, was arraigned today in federal court on a 21-count indictment charging him with mail and wire fraud for an investment scheme that he ran from 2008 through 2016, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Slavin claimed to have developed a proprietary investment model that guaranteed returns of 12-18 percent that would be paid within one to two years of the investment. He persuaded some individuals to invest by representing that the money would be invested through a “social venture” fund or project that would earn returns by providing capital and services to nonprofit organizations. After the investments were made, Slavin assured investors that their money was earning profits. Based on these assurances, Slavin solicited additional investments or encouraged his investors to rollover their prior investments. In truth, Slavin used a large portion of the investors’ money to pay back other investors or for his own personal expenses and lost the rest in trading. Overall, investors lost at least $1.7 million.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.
If convicted, Slavin faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 or twice the gross loss or gross gain from the fraud scheme. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Employee of U.S. Army Corps of Engineers in Afghanistan Pleads Guilty to Soliciting Approximately $320,000 in Bribes from ContractorsRead the Press Release
A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan pleaded guilty today to soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois; Special Agent in Charge Sean Cox of the FBI’s Springfield Field Office; Special Inspector General John F. Sopko for Afghanistan Reconstruction; Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit (MPFU); and the Defense Criminal Investigative Service’s (DCIS) made the announcement.
Mark E. Miller, 48, of Springfield, Ill., was charged in an Information filed on July 18, in the Central District of Illinois with one count of seeking and receiving bribes. He pleaded guilty before U.S. Magistrate Judge Tom Schanzle-Haskins in Springfield, Illinois. Miller is scheduled to be sentenced on November 30, by U.S. District Judge Richard H. Mills.
During the hearing, Miller admitted that he worked for the USACE from 2005 until 2015, including in Afghanistan from 2009 to 2012. During that time, Miller maintained a residence in Springfield. From February 2009 to October 2011, Miller was assigned to a military base, Camp Clark, in eastern Afghanistan. While in Afghanistan, Miller was the site manager and a contracting officer representative for a number of construction projects.
Miller further admitted that on Dec. 10, 2009, the USACE awarded a contract worth approximately $2.9 million to an Afghan construction company for the construction of a road from eastern Afghanistan to the Pakistani border. This contract later increased in value to approximately $8,142,300. Miller admitted that he oversaw the work of the Afghan company on this road project, including verifying that the company performed the work called for by the contract and authorizing progress payments to the company by the USACE.
Miller admitted that, in the course of overseeing the contract with the Afghan company, he solicited approximately $280,000 in bribes from the owners of the company, in return for assisting the company in connection with the road project, including making sure the contract was not terminated. Miller further admitted that, after the contract was no longer active, he solicited an additional $40,000 in bribes in return for the possibility of future contract work and other benefits.
Miller will be sentenced on November 30 before Judge Mills.
This matter was investigated by the FBI, DCIS, SIGAR and Army CID-MPFU. Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Gregory K. Harris of the Central District of Illinois are prosecuting the case.
Former Bank Branch Manager Sentenced to 4+ Years in Prison for Stealing from Elderly Bank CustomersRead the Press Release
The former manager of a JPM Chase bank branch in West Seattle was sentenced today in U.S. District Court in Seattle to 54 months in prison for embezzling more than half a million dollars from the accounts of elderly customers, announced U.S. Attorney Annette L. Hayes. ROBERTA CASTILLO, 43, acted as a trusted friend and financial helper to various elderly customers of first Washington Mutual and later Chase after WAMU was sold. These elderly clients trusted CASTILLO to assist them with their financial affairs. Instead, she stole their funds by manipulating the electronic records at the bank, committing identity theft with their personal information and using innocent subordinates to make it difficult to track the disappearing funds. Chase has agreed to restore the funds to the customer accounts. At sentencing U.S. District Judge John C. Coughenour said CASTILLO had preyed on “vulnerable victims,” and asked to be updated that Chase had made the victims whole.
“This defendant stole from her elderly victims when they were most vulnerable – after the loss of a spouse, while battling illness or dealing with the challenges that sometimes come with age,” said U.S. Attorney Annette L. Hayes. “In one instance, she stole more than $350,000 from the estate of a deceased customer. This defendant’s shameful behavior deserves substantial punishment.”
According to records filed in the case, CASTILLO began working for what was then Washington Mutual in the late 1990s. She started as a teller and worked her way up to being a branch manager in West Seattle. Along the way CASTILLO worked with many customers who, as they aged, came to rely on her for their financial services. With access to their accounts, CASTILLO drained resources from at least three different sets of clients. CASTILLO was embezzling as much as $20,000 per month. She drained $364,000 from an overlooked CD in the account of a deceased client; she made 37 unauthorized transfers totaling more than $140,000 from the accounts of an elderly brother and sister; and she committed identity theft against another client opening and using a credit card in his name and getting cash from his line of credit. CASTILLO used the money to pay her bank loans, routine expenses such as manicures and gas, hotel rooms, airplane tickets, a cruise, and for bail money for a boyfriend in trouble with the law. In the wake of the thefts some of the victims have struggled to pay bills or make necessary home repairs.
In addition to the prison sentence, CASTILLO will serve five years on supervised release and is ordered to pay restitution of more than $500,000 to Chase.
The case was investigated by the Seattle Police Department and the FBI. The case is being prosecuted by Assistant United States Attorney Susan Roe.
Florida Man Sentenced to 73 Months in Prison for Leading Stolen Credit Card Trafficking Ring Involving More Than 114,000 Accounts and Losses of $23 MillionRead the Press Release
NEWARK, N.J. – A Florida man was sentenced today to 73 months in prison for his role in a conspiracy to possess and traffic stolen credit card data held by New Jersey residents, Acting U.S. Attorney William E. Fitzpatrick announced.
Miguel Gonzalez, 43, of Miami, Florida, previously pleaded guilty before U.S. District Court Judge Esther Salas to an information charging him with one count of conspiracy to commit wire fraud. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between January 2010 and July 2013, Gonzalez obtained and possessed stolen credit card data for more than 114,000 credit card accounts. Gonzalez purchased the stolen credit card information from various vendors who advertise and transmit the data over the Internet using email and instant chat software. These vendors sold stolen credit card data obtained from network intrusions into various corporate victims, including major retailers in the state of New Jersey. The stolen credit card data was used by Gonzalez and others to create counterfeit credit cards, which were used to enter into unauthorized and fraudulent transactions. The credit card issuers associated with the more than 114,000 stolen credit card accounts suffered a combined loss of more than $23 million.
In addition to the prison term, Judge Salas sentenced Gonzalez to five years of supervised release, fined him $100,000 and ordered him to forfeit a number of items, including a house, boat, car and $30,000 in jewelry.
Acting U.S. Attorney Fitzpatrick credited agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Paul A. Murphy, Chief of the U.S. Attorney’s Office’s Economic Crimes Unit, and Dara Aquila Govan.
Defense counsel: Ricardo P. Hermida Esq., Miami
Five Violent Jewelry Robbers Have Been ArrestedRead the Press Release
DALLAS — Five individuals who were wanted by the FBI, the DFW International Airport Department of Public Safety, the Arlington Texas Police Department, and the Garland Texas Police Department for their suspected involvement in a series of violent robberies against traveling jewelry salesmen, one of which resulted in the death of the victim, have been arrested, announced U.S. Attorney John Parker of the Northern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department's Criminal Division and Special Agent in Charge Eric K. Jackson of the Federal Bureau of Investigation.
Johnnattan Ramirez, 35, Pedro Louis Alvarez, 32, Robert Riveros, 25, Eslevy Vargas-Avila, 27, and Catherine Contreras-Beltran, 28, were charged in a federal superseding indictment in October 2016. Each defendant is charged with one count of conspiracy to interfere with commerce by robbery, two counts of interference with commerce by robbery, and two counts of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Ramirez, Alvarez and Riveros are also charged with one additional count of interference with commerce by robbery and one additional count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence.
Investigative efforts by the FBI Dallas Violent Crimes Task Force and the DFW International Airport Department of Public Safety identified Ramirez, Alvarez, Riveros, Vargas-Avila and Contreras-Beltran as suspects in these violent robberies. Further investigative efforts led to the location and arrest of all five defendants. Alvarez was arrested in New York City by the FBI and the DFW International Airport Department of Public Safety on June 27, 2016. Contreras-Beltran, Vargas-Avila, Ramirez, and Riveros were all arrested in Colombia by the Colombian National Police, DIJIN Vetted Team, on December 24, 2016, February 13, 2017, February 19, 2017, and July 19, 2017, respectively. The United States government intends to request extradition of Contreras-Beltran, Vargas-Avila, Ramirez, and Riveros, all of whom are Colombian citizens.
“I commend the extraordinary efforts of the FBI and our local and international law enforcement partners in apprehending these brazenly violent fugitives,” said U.S. Attorney Parker. “This extremely dangerous group of robbers is part of a larger organized South American Theft Group that has targeted members of the jewelry industry across this nation for a number of years. Our community is safer as a result of getting these people off our streets.”
“Thanks to the efforts of our prosecutors, the FBI and our local and international partners, all five members of this alleged armed robbery organization have been apprehended,” said Acting Assistant Attorney General Blanco. “We thank our Colombian law enforcement partners for their outstanding work. The U.S. Department of Justice is committed to working vigorously with our partners at home and abroad to apprehend and bring this and other armed robbery groups to justice.”
“This case is a testament to the exemplary work of the FBI’s Violent Crime Task Force,” said Eric K. Jackson, Special Agent in Charge of the FBI Dallas Division. “The agents on our task force worked hand in hand with state, local, and international partners to relentlessly investigate these crimes and, ultimately, identify, locate, and apprehend these violent fugitives.”
The indictment alleges, on April 27, 2016, Ramirez, Alvarez, and Riveros observed K.D., an individual who they believed to be a traveling diamond and jewelry salesman, at a store in Garland, Texas. Ramirez and Riveros approached K.D. as he was leaving the store, while Alvarez continued surveillance. Riveros then took a rolling case, a calendar catalog, calendar invoice/order forms, a Nikon digital camera, and a State of California sales permit from K.D. against his will by threatened force, violence, and fear of immediate injury to his person, that is, by brandishing a firearm.
The indictment further alleges, on June 2, 2016, Ramirez, Alvarez, Riveros, Vargas-Avila, and Contreras-Beltran, observed C.K., an individual who they believed to be a traveling diamond and jewelry salesman, and followed him to a gas station located on East Pioneer Parkway in Arlington, Texas. Ramirez, Riveros, and Vargas-Avila approached C.K. as he was putting gas in his rental vehicle, while Alvarez and Contreras-Beltran continued surveillance. Ramirez, who had a firearm and was wearing a mask to conceal his identity, approached C.K. and searched him at gunpoint for hidden diamonds and jewelry on his person, while Vargas-Avila entered C.K.’s vehicle and took a bag containing, among other items, a diamond scale and diamond gauge.
The indictment also alleges, on June 9, 2016, Ramirez, Alvarez, Riveros, Vargas-Avila, and Contreras-Beltran, observed M.S., an individual who they believed to be a traveling diamond and jewelry salesman, at a store in Richardson, Texas. Ramirez, Alvarez, Riveros, and Vargas-Avila followed M.S. to a DFW International Airport gas station in Euless, Texas, and observed M.S. enter the gas station’s convenience store. Riveros broke a window on M.S.’s rental vehicle with a handgun, took a case containing jewelry and placed it inside the vehicle being driven by Ramirez. M.S. ran from the store and entered Ramirez’s vehicle through the window and attempted to retrieve his case. Ramirez then drove his vehicle in a manner intended to dislodge M.S. from the vehicle, striking other vehicles in the process, before departing the area with M.S. partially inside the vehicle. Ramirez, Alvarez, Riveros, and Vargas-Avila drove to an apartment complex in Irving, Texas, where M.S. was removed from the vehicle and beaten, which contributed to the death of M.S.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the conspiracy count and the interference with commerce by robbery count both carry a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. The using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence counts each carry a maximum statutory penalty of life in federal prison and a $250,000 fine.
The FBI Dallas Violent Crimes Task Force, the DFW International Airport Department of Public Safety, Arlington Texas Police Department, and the Garland Texas Police Department investigated the case, with assistance from the Colombian National Police, DIJIN Vetted Team. Assistant U.S. Attorney Keith Robinson is prosecuting, with assistance from Joseph Wheatley, Trial Attorney, Organized Crime and Gang Section.
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Five Fugitives Arrested in Connection with String of Violent RobberiesRead the Press Release
Five individuals have been arrested in connection with their suspected involvement in a series of violent robberies against traveling jewelry salesmen, one of which resulted in the death of the victim, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John Parker of the Northern District of Texas and Special Agent in Charge Eric K. Jackson of the FBI’s Dallas Division.
“Thanks to the efforts of our prosecutors, the FBI and our local and international partners, all five members of this alleged armed robbery organization have been apprehended,” said Acting Assistant Attorney General Blanco. “We thank our Colombian law enforcement partners for their outstanding work. The U.S. Department of Justice is committed to working vigorously with our partners at home and abroad to apprehend and bring this and other armed robbery groups to justice.”
“I commend the extraordinary efforts of the FBI and our local and international law enforcement partners in apprehending these brazenly violent fugitives,” said U.S. Attorney Parker. “This extremely dangerous group of robbers is part of a larger organized South American theft group that has targeted members of the jewelry industry across this nation for a number of years. Our community is safer as a result of getting these people off our streets.”
“This case is a testament to the exemplary work of the FBI’s Violent Crime Task Force,” said Special Agent in Charge Jackson. “The agents on our task force worked hand in hand with state, local and international partners to relentlessly investigate these crimes and, ultimately, identify, locate and apprehend these violent fugitives.”
Pedro Louis Alvarez, 32, of Honduras; and four Colombian nationals, Johnnattan Ramirez, 35; Robert Riveros, 25; Eslevy Vargas-Avila, 27; and Catherine Contreras-Beltran, 28, were charged in a federal superseding indictment in October 2016 with one count of conspiracy to interfere with commerce by robbery, two counts of interference with commerce by robbery and related firearms charges. Ramirez, Alvarez and Riveros are also charged with one additional count of interference with commerce by robbery and related firearms charges. Alvarez was arrested in New York City by the FBI and the Dallas Fort Worth International Airport Department of Public Safety on June 27, 2016. Contreras-Beltran, Vargas-Avila, Ramirez and Riveros were all arrested in Colombia by the Colombian National Police, between December 2016, and July 19.
The indictment alleges that on April 27, 2016, Ramirez, Alvarez and Riveros robbed a traveling diamond and jewelry salesman at gunpoint, taking the victim’s rolling case and a Nikon digital camera, among other items, while Alvarez conducted surveillance. The indictment further alleges that on June 2, 2016, and June 9, 2016, Ramirez, Alvarez, Riveros, Vargas-Avila and Contreras-Beltran robbed two additional traveling diamond and jewelry salesmen at gunpoint, taking from the first victim a bag containing, among other items, a diamond scale and diamond gauge, and from the second victim a case containing jewelry. According to the allegations, when the second victim attempted to retrieve his case from Ramirez’s vehicle, Ramirez drove away with the victim partially inside the vehicle, and Ramirez, Alvarez, Riveros and Vargas-Avila then removed the victim from the vehicle and beat him, which contributed to his to death.
An indictment is an accusation by a federal grand jury, and the defendants are entitled to the presumption of innocence unless proven guilty.
The FBI Dallas Violent Crimes Task Force, the Dallas Fort Worth International Airport Department of Public Safety, Arlington Texas Police Department and the Garland Texas Police Department investigated the case, with assistance from the Colombian National Police. The case is being prosecuted by Assistant U.S. Attorney Keith Robinson and Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section.
Federal Court Bars Louisiana Tax Return Preparer from Preparing Tax Returns for OthersRead the Press Release
A federal court in Louisiana has permanently barred Finecia Draper from preparing federal income tax returns for others, the Justice Department announced today.
In its complaint, the government alleged that Finecia Draper of Simmesport, Louisiana prepared false returns through her sole proprietorship, B&R’s Unlimited Fashion located at 245 Moreau Street in Simmesport, Lousiana. In addition to barring Draper from preparing tax returns, the court ordered her to prominently post a notice in her place of business stating that she is barred from preparing tax returns for others.
According to the government’s complaint, Draper prepared tax returns that fraudulently understated her customers’ income and tax liabilities and/or overstated the refunds they were entitled to receive. According to the complaint, Draper did so by submitting Schedules C, Profit or Loss From Business, with the returns to fabricate or inflate business losses claimed by her customers. In many of the examples cited in the complaint, the taxpayer did not even own or operate a business. The bogus losses that Draper claimed fraudulently understated the income her customers earned which resulted in underreporting their tax liabilities and overstating the refunds they were due, according to the complaint. The complaint additionally alleged that Draper fraudulently claimed and/or inflated the Earned Income Tax Credit (EITC) on returns she prepared.
From 2011 to 2015, Draper prepared over 2,000 returns, according to the complaint. The complaint alleged that audits of 163 returns prepared by Draper in 2011, 2012 and 2013 revealed that she overstated refunds and understated tax liability by over $275,000 in the aggregate.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2017. The IRS has some tips on their website for choosing a tax preparer.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Essex County, New Jersey, Man Sentenced to 39 Months in Prison for Defrauding InvestorsRead the Press Release
NEWARK, N.J. – A North Caldwell, New Jersey, man was sentenced today to 39 months in prison for fraudulently using more than $550,000 in investment funds that he solicited to purchase and sell consumer products in bulk, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael Esposito, 45, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of wire fraud. Judge Martini imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From August 2013 through February 2017, Esposito was the president of numerous entities that purported to purchase consumer products in bulk from manufacturers for resale to wholesalers and retailers. Esposito told potential investors that he could purchase consumer goods – such as soda and bottled water – at substantial discounts, and that he had buyers ready to purchase the products at a significant profit.
In return for providing the funds necessary to purchase the products, Esposito promised the victim investors a large percentage of the profits. However, Esposito used the funds for his personal expenses and to pay other investors in order to make it appear the money was properly used. Esposito admitted that his actions resulted in losses of more than $550,000.
In addition to the prison term, Judge Martini sentenced Esposito to three years of supervised release. Restitution will be determined at a late date.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked investigators with the Florida Office of Financial Regulation for their assistance.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Sarah Devlin of the Asset Forfeiture Unit in Newark.
Defense counsel: Brooke M. Barnett Esq., Newark
El Salvador man indicted on an illegal alien chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – An El Salvador man has been indicted by a federal grand jury on a reentry of a removed alien charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Jose Angel Gabriel Palma-Erazo, age 31, was indicted on one count of “Reentry of Removed Alien.” Palma-Erazo, having previously been removed from Texas, allegedly was found in Berkeley County in June 2017 without consent.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The U.S. Department of Homeland Security, Immigrations and Customs Enforcement and the Jefferson County Sheriff’s Office are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
District Man Sentenced to Nine Years in Prison for Three Armed Robberies of Commercial EstablishmentsRead the Press Release
WASHINGTON – Anthony Burns, 24, of Washington, D.C., was sentenced today to nine years in prison for a series of armed robberies targeting commercial businesses, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Burns pled guilty in May 2017, in the U.S. District Court for the District of Columbia, to one count of conspiracy to interfere with interstate commerce by robbery, three counts of interference with interstate commerce by robbery, and one count of using, carrying, brandishing and possessing a firearm during a crime of violence. He was sentenced by the Honorable Amy Berman Jackson. Upon completion of his prison term, Burns will be placed on four years of supervised release. He also was ordered to pay $3,194 in restitution and an identical amount in a forfeiture money judgment.
Three others have pled guilty and been sentenced on federal charges related to their roles in the armed robberies, which targeted stores in Washington, D.C. and Maryland. They include Gregory Hull, 23, of Suitland, Md, Breyon Lee, 24, and Lee’s brother, Bradley Lee, 21, both of Washington, D.C. Hull and Breyon Lee were each sentenced to 51 months in prison, and Bradley Lee was sentenced to a 48-month prison term. All will be placed on three years of supervised release following completion of their prison terms, and all must pay restitution.
According to the government’s evidence, on Nov. 27, 2015, at approximately 2 p.m., store surveillance video captured Burns, Hull, and an unidentified co-conspirator, who were masked and armed with handguns, as they robbed the City Beats shoe store, in the 3000 block of Martin Luther King, Jr. Avenue SE. The men ordered everyone in the store to get on the floor. Burns approached a store employee with his gun drawn and demanded that the employee open the cash register. Burns, Hull, and their accomplice fled with approximately $1,594 in stolen cash and eight pairs of stolen shoes, valued at $1,600.
According to the government’s evidence, on Dec. 13, 2015, at approximately 4:40 a.m., Burns and an unidentified co-conspirator entered the 7-Eleven convenience store in the 4600 block of South Capitol Street SW. Surveillance video showed that both men tried to conceal their identities using masks and hooded garments, and Burns was armed with a handgun. Burns pointed a gun at a store employee’s head, grabbed him behind the collar, and forced him behind the store counter. Burns demanded money from the cash register and a safe underneath the counter. When the employee was unable to open the register and safe, Burns struck him on the back of his head with the gun, causing a laceration. A second employee came out of the bathroom, and Burns’s accomplice forced the employee to open the cash registers. Burns and his accomplice grabbed an undetermined amount of cash from the registers and several packs of cigarettes and cigars.
About 40 minutes after the 7-Eleven robbery, government evidence shows, Burns and the accomplice entered another 7-Eleven store in the 900 block of Eastern Avenue NE, again wearing masks and hooded garments. Burns jumped over the counter and pointed the gun at the cashier, demanding money from the cash register. The employee opened both registers. Burns and his accomplice grabbed an undetermined amount of cash and fled.
Burns was arrested pursuant to an arrest warrant on Dec. 29, 2015.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Chief Newsham commended the actions of those who worked on the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Margaret Barr, Paralegal Specialist Catherine O’Neal, and Legal Assistant Peter Gaboton. Finally, they commended the work of Assistant U.S. Attorney Jamila Hodge, who prosecuted the case.
District Man Pleads Guilty to Bank RobberyRead the Press Release
WASHINGTON – Kevin Aguilar, 24, of Washington, D.C., pled guilty today to a federal bank robbery charge stemming from a hold-up he committed earlier this year at a bank in downtown Washington, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Aguilar entered the plea in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, Aguilar faces a likely range of 57 to 71 months in prison and a fine of up to $150,000. The plea agreement calls for him to pay $852 in restitution and an identical amount in a forfeiture money judgment. The Honorable Reggie B. Walton scheduled sentencing for Oct. 12, 2017.
According to the government’s evidence, on Jan. 26, 2017, at approximately 11:15 a.m., Aguilar entered a Capital One Bank in the 1200 block of F Street NW. He gave the teller a note in which he threatened to shoot the teller unless he immediately was given $10,000. The teller handed over $852, and Aguilar fled. He later was identified through bank surveillance footage and other evidence. Aguilar was arrested on April 18, 2017, and has been in custody ever since.
As part of the plea, Aguilar also admitted attempting to rob a BB & T bank in the 600 block of 13th Street NW on June 24, 2016. In that incident, he demanded money and stated, “I’m going to count to three and I’ll shoot … one.” The teller pressed an alarm and he fled without any cash. Aguilar was identified as the robber through surveillance videos and other evidence.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and MPD. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section, and Paralegal Specialist Teesha Tobias. Finally, they commended the work of Assistant U.S. Attorneys Akhi Johnson and Lisa Walters, who investigated and prosecuted the case.
District Man Found Guilty of Charges in Killings of Two Roommates in Northwest WashingtonRead the Press Release
WASHINGTON – Jeffrey Neal, 25, of Washington, D.C., was found guilty by a jury today of charges stemming from the slayings of his two roommates, whose bodies were found at their residence in Northwest Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Neal was found guilty of two counts of first-degree murder while armed, with aggravating circumstances, and related offenses. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Chief Judge Robert E. Morin scheduled sentencing for Oct. 20, 2017.
According to the government’s evidence, on June 12, 2014, at approximately 11:35 a.m., officers with the Metropolitan Police Department (MPD) were dispatched to a house in the 1800 block of Eighth Street NW for a report of an unconscious person. The body of Leon Young, 22, was discovered in the attic, naked except for a black plastic bag tied around his head. Neal was arrested the following day and charged with Mr. Young’s murder.
On June 16, 2014, police returned to the house and discovered the body of Delano Wingfield, 23, in a shallow grave in the backyard. He was naked except for a pair of socks.
An investigation determined that both men were beaten multiple times in the head with a hammer. During the investigation, police learned that Mr. Young and Mr. Wingfield were childhood friends with the defendant. When the police interviewed Neal, he confessed to killing Mr. Young. He claimed he killed Mr. Young in self-defense, after Mr. Young allegedly confessed to killing Mr. Wingfield. Neal claimed he hit Mr. Young twice in the head with a hammer in self-defense. However, the autopsy of Mr. Young revealed that Mr. Young had been hammered in the head at least 26 times. Some of those blows were after the black plastic bag had been placed on Mr. Young’s head. Further, according to the government’s evidence, DNA evidence of Mr. Wingfield’s blood was found in various locations in Neal’s bedroom. Also, Neal told detectives that he left a pair of socks on Mr. Young’s body. However, Mr. Young was not discovered with socks. It was Mr. Wingfield’s body that had on a pair of socks.
In announcing the verdict, U.S. Attorney Phillips and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences; the FBI’s Cellular Analysis Survey Team; the FBI’s DNA Casework Unit; the District of Columbia Office of the Chief Medical Examiner; Bode Cellmark Forensics, and the New Smyrna Beach Police Department of New Smyrna Beach, Fla.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Sharon Donovan, Deputy Chief of the Homicide Section; Chrisellen Kolb, Deputy Chief of the Appellate Section; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Litigation Technology Specialist Leif Hickling; Paralegal Specialist Kelly Blakeney; former Paralegal Specialists Fern Rhedrick, Amoret Vanterpool, and Vanessa Trent-Valentine; Marcia Rinker, David Foster, LaJune Thames, and Katina Adams-Washington, all of the Victim/Witness Assistance Unit; Criminal Investigators John Marsh, Durand Odom, and Zachary McMenamin; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie, Contract Specialist Sallie Rynas; Interns Hayley Poindexter and Simone Unwalla, and former intern Benjamin Symons.
Finally, they commended the work of Assistant U.S. Attorneys Shana L. Fulton and Veronica Sanchez, who investigated and prosecuted the case.
Decorated Naval Aviator Steals $124,000 from Distinguished Flying Cross SocietyRead the Press Release
Assistant U.S. Attorney Phillip L.B. Halpern (619) 546-6964
NEWS RELEASE SUMMARY – July 25, 2017
SAN DIEGO – Decorated Naval Veteran Anthony Ventura admitted today in federal court that he used his position as treasurer of the Distinguished Flying Cross Society to embezzle $124,000 in charity funds.
The defendant had a distinguished military career in which he flew numerous combat missions in Vietnam. Among other honors, he was awarded, the Vietnam Service Medal, the Republic of Vietnam Campaign Medal, the National Defense Service Medal, the Bronze Star, and the Distinguished Flying Cross. Following his military career, he had a number of jobs, including serving as a Senior Vice President with Wachovia Securities, LLC.
The Distinguished Flying Cross (“DFC”) is awarded to aviators and aircrew for heroism or extraordinary achievement during aerial flight. The first DFC medal was awarded by President Coolidge to Captain Charles A. Lindbergh for his solo flight across the Atlantic Ocean in 1927. Other recipients include Commander Richard E. Byrd and Amelia Earhart. It is the only medal conferred by all five military services in all wars and campaigns since World War I.
The Distinguished Flying Cross Society (“DFCS”) is a national society formed to honor men and women who have been awarded the Distinguished Flying Cross. The Society was founded on fraternity and fellowship among military fliers. It seeks to preserve the rich heritage and historical narratives of those who are recipients of the DFC and to educate the public as to the value of courage, patriotism and character. Among other things, the DFCS Teams with other organizations (e.g., the Congressional Medal of Honor Foundation) to educate young Americas. It also awards scholarships to the descendants of DFCS members, who are pursuing degrees at accredited institutions of higher learning.
From on or about July 2012 through January 2016, Ventura served as the Treasurer for the DFCS. In this capacity, he had access to and control over the DFCS’s bank accounts, credit card accounts, and bookkeeping records. As Treasurer of the DFCS, Ventura was the custodian of all DFCS funds and had fiduciary responsibility to: (i) ensure that all funds were deposited in a bank designated by the Board of Directors; (ii) oversee the disbursal of funds as authorized by the Chairman, President, or Board of Directors; (iii) prepare financial reports for Board meetings; and (iv) submit tax returns as required by State and Federal authorities.
In 2014, as result of a series of unfortunate business decisions, the defendant filed for personal bankruptcy. At this point, he had insufficient funds on hand to perform a number of activities, such as trading stocks and maintaining his stable of horses. In order to maintain his lifestyle, Ventura opened up a bank account at the Travis Credit Union that he concealed from the Board of Directors of the DFCS. He then transferred $124,000 of DFCS assets to the Travis Credit Union account. He used these funds for a variety of personal activities, including: (i) $30,561 to run his personal horse stable (“Sovran Star Stables); (ii) $67,000 to purchase stocks/bonds through a company he set up for that purpose (“Ironbeam LLC”); and (iii) $25,600 in cash withdrawals to cover personal living expenses. In order to conceal and disguise his theft of DFCS funds, Ventura created fake quarterly financial summaries for the DFCS Board of Directors.
In addition to the embezzlement of DFCS funds, Ventura also filed a false Charitable Organization Tax Form, Form 990-EZ, for the calendar year 2014. This return, which was verified by a written declaration that it was made under the penalties of perjury, falsely reported that the DFCS had cash, savings, and investments in the amount of $148,049, whereas in truth and fact, it had only $15,810.80 as Ventura had removed and converted to his personal use the rest of its funds.
“Regardless of how significant an individual’s contribution is to our society or how desperate their financial condition, there can be no excuse for stealing charitable funds that are destined for the awarding of scholarships,” said Acting U.S. Attorney Alana Robinson.
“The FBI is proud to serve this organization of war heroes by uncovering a scheme that stripped their funds intended for charitable and noble purposes," said Special Agent in Charge Eric S. Birnbaum.
“It is unfortunate that Naval Veteran Anthony Ventura’s service to this country will now be tarnished by his decision to embezzle funds from the Distinguished Flying Cross Society, which also led him to file a fraudulent tax return on its’ behalf,” stated Special Agent in Charge R. Damon Rowe for IRS Criminal Investigation. “Mr. Ventura ignored his duty to file an accurate tax return and will now be labeled a convicted felon, in addition to a decorated naval aviator.”
DEFENDANT: Case Number 17cr1271-JLS
Anthony Ventura Age: 71 Lincoln, CA
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 20 years’ imprisonment and $250,000 fine
Filing a False Tax Return – Title 26, U.S.C., Section 7206(1)
Maximum penalty: 3 years’ imprisonment and $250,000 fine
AGENCY
Federal Bureau of Investigation
Internal Revenue Service - CI
Crips Gang Member Sentenced to 20 Years for Racketeering Conspiracy in NebraskaRead the Press Release
A violent member of the Crips gang was sentenced today to 20 years in prison and three years of supervised release for participating in a racketeering conspiracy involving multiple acts of violence, including murder, attempted murder, assaults, witness tampering and drug distribution, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Robert C. Stuart of the District of Nebraska.
Dionte Dortch, aka “Killa Tay,” 24, of Omaha, Nebraska, was sentenced by U.S. District Judge Joseph F. Bataillon after he pleaded guilty to one count of conspiracy to participate in racketeering activity, one count of witness tampering, one count of attempted obstruction of justice and one count of possession of a firearm by a felon.
According to the plea agreement, Dortch admitted that he was a member of the Omaha-area chapter of the Crips known as the “40th Avenue Crips” and “44th Avenue Crips,” and that he personally committed acts of violence for the gang in furtherance of the racketeering conspiracy. According to the plea, these acts of violence included an attempt to hire a hitman to kill a potential witness against him at trial in this case, shooting at a vehicle occupied by four individuals and using threats of violence to prevent a witness from testifying before a federal grand jury.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Omaha Police Department are investigating the case. Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Matthew Molsen of the District of Nebraska are prosecuting the case.
Cowart Seafood, Inc. President Sentenced to 25 Months in Prison for Illegal Seafood Conspiracy and Firearms ViolationRead the Press Release
Gulfport, Miss – Lonnie M. Ray, the president of Cowart Seafood, Inc., of Bay St. Louis, Mississippi, was sentenced today to 25 months in federal prison for conspiracy to violate the Lacey Act and illegal possession of a short-barreled shotgun, announced Acting U.S. Attorney Harold Brittain; Assistant Director Tracy A. Dunn with the National Oceanic and Atmospheric Administration; Special Agent in Charge Louis Santiago with the U.S. Fish and Wildlife Service; Chief Keith Davis with the Mississippi Department of Marine Resources, Office of Marine Patrol; Resident Agent in Charge Jason Denham with the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Justin Green, Special Agent in Charge, Southeast Region, U.S. Food and Drug Administration - Office of Criminal Investigation. The Lacey Act makes it unlawful to sell in interstate commerce any fish taken in violation of state law.
Ray previously pled guilty to conspiring to violate the Lacey Act by selling fish to Louisiana seafood buyers that was taken in violation of Mississippi law. According to Mississippi law, seafood dealers are required to submit information about each seafood purchase from a commercial fisherman on a form known as a trip ticket that is provided by the Mississippi Department of Marine Resources ("DMR"). Ray admitted violating this requirement by failing to report seafood purchases to DMR and by buying fish from recreational fisherman in violation of state law. The Lacey Act charges against Shelley H. Ray, who was also named in the indictment, were dismissed. Lonnie Ray also pled guilty to owning a 12-gauge double-barrel shotgun, having a barrel of less than l8 inches in length, which was not registered to him in the National Firearms Registration and Transfer Record.
Acting United States Attorney Brittain praised the efforts of the federal and state investigative agencies for their diligent work in the investigation of this matter.
Convicted Sex Offender from Albuquerque Sentenced to Ten Years for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Randal Gordon Paul, 48, of Albuquerque, N.M., was sentenced late yesterday afternoon in federal court to 120 months in prison followed by a lifetime of supervised release for his conviction on a federal child pornography charge. Paul also was ordered to pay $1,000 in restitution to victims of Paul’s criminal conduct. Paul will be required to register as a sex offender when he completes his prison sentence.
Paul was arrested on Dec. 2, 2016, on a criminal complaint charging him with possessing and distributing visual depictions of minors engaged in sexually explicit activity from June 2015 through Nov. 2016, in Bernalillo County, N.M. According to the criminal complaint, the investigation into Paul began in Nov. 2014, after an email address belonging to Paul, was used to register an account with a website known to show images of minors engaged in sexually explicit conduct. Further investigation revealed that Paul was a registered sex offender with two prior convictions; the first in 1996 for lewd and lascivious acts with a child under 14, and the second in 1998 for aggravated sexual abuse. On Nov. 16, 2016, law enforcement searched Paul’s residence and found a computer containing a video and at least 30 images of child pornography.
On March 7, 2017, Paul pled guilty to a felony information charging him with possessing child pornography between Dec. 2012 and Nov. 2016, in Bernalillo County. In his plea agreement, Paul admitted downloading child pornography from the internet and saving them on electronic devices, including a desktop computer.
This case was investigated by the Albuquerque office of the FBI and the New Mexico Regional Computer Forensic Laboratory. Assistant U.S. Attorney Holland S. Kastrin is prosecuting the case 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, visit http://www.justice.gov/psc/.
Colombian National Sentenced for Illegally Reentering the United States After DeportationRead the Press Release
BOSTON – A Colombian national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Eliseo De Jesus Restrepo, 36, pleaded guilty to one count of illegal reentry of a deported alien before U.S. District Court Judge F. Dennis Saylor IV, who immediately sentenced Restrepo to time served and one year of supervised release. Restrepo will be subject to deportation.
Restrepo was previously deported on March 30, 2011. On Dec. 15, 2016, law enforcement in Boston encountered Restrepo and determined him to be unlawfully 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. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Cockeysville Man Sentenced to 20 Years in Prison for Production of Child Pornography and CyberstalkingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Kevin Graham Conlon, age 30, of Cockeysville, Maryland, to 20 years in prison followed by 25 years of supervised release for the production of child pornography and cyberstalking. Judge Motz ordered that, upon his release from prison, Conlon must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to his plea agreement, between 2014 and January 2017, Conlon used online social media accounts pretending to be both a minor female and minor male to induce four minor females and two minor males to take photographs and videos of themselves engaging in sexually explicit conduct. The victims then sent the content to Conlon. Conlon also created fictitious accounts using the identities of some of the victims, and distributed the child pornography he induced them to create to others, in order to entice the others to produce and send him sexually explicit images and videos. When the victims stopped complying with Conlon’s demands to produce and send images, Conlon sent the explicit files to the victim’s families and friends. Conlon also repeatedly created additional online accounts to contact the victims and their families, with the intent to cause the victims and their families substantial emotional distress.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the federal case.
Christopher David Grippe Sentenced to Serve over Twenty-Three Years in Prison for Possessing and Distributing Child PornographyRead the Press Release
KNOXVILLE, Tenn. - On Tuesday, July 25, 2017, Christopher David Grippe, 29, of Wartburg, Tennessee, was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 280 months in federal prison for possession and distribution of child pornography. Upon his release from prison, he will be under the supervision of the U.S Probation Office for life.
In January 2017, Grippe pleaded guilty to charges included in a federal indictment. His plea agreement, which is on file with U.S. District Court, contains detailed information regarding his offenses. According to that plea agreement, in August 2016, an investigator with the Knoxville Police Department Internet Crimes Against Children taskforce (ICAC) received two Cybertips from the National Center for Missing and Exploited Children (NCMEC) reporting that a Google account user attempted to upload files containing images of child sexual abuse. The ensuing investigation revealed that the email address associated with the Google account belonged to Grippe. Additional NCMEC Cybertips revealed that Grippe had distributed images of child pornography using his Facebook account since April 2016.
Further investigation revealed that during the time of his most recent offenses, Grippe was incarcerated in a state prison, serving an eight–year sentence for his 2012 conviction of possessing images depicting minors engaged in sexual activity. A search of his cell resulted in the confiscation of a phone, which he was actively using at the time of the search. A forensic search of the content of the phone revealed 161 images and 38 videos of child sexual abuse. Some of the material involved children as young as infants. Additionally, the forensic search revealed conversations regarding sexually abusing children that Grippe had with other individuals using a phone application called KIK messenger.
“Aggressive prosecution of individuals who victimize vulnerable, young children, will continue to be a top priority of the U.S. Attorney’s Office,” said Nancy Stallard Harr, U.S. Attorney.
This case was investigated by the Knoxville Police Department ICAC. Assistant U.S. Attorney LaToyia T. Carpenter represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Charlotte Man Pleads Guilty in Simpsonville Gun Shop RobberyRead the Press Release
Columbia, South Carolina –------- United States Attorney Beth Drake, announced today that Sahier Lavon Richardson, age 18, of Charlotte pled guilty to charges stemming from his involvement in the pre-dawn break-in and theft of firearms from The Gun Shop in Simpsonville in October of 2016. Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the pre-sentence report prepared by the U.S. Probation Office.
The facts, presented by AUSA Bill Watkins at the guilty plea hearing, established that on October 13, 2016, at approximately 2:52 a.m., a burglary occurred at The Gun Shop and Indoor Range, a federal firearms licensee, in Simpsonville, South Carolina 29681. Surveillance camera footage from the store depicted a minivan driving though the front of the store and then three subjects (one of which was Richardson), wearing hooded sweatshirts, gloves and carrying bags, entering the store. Richardson and his associates used a sledge hammer and a baseball bat to break the glass from display cases containing firearms before loading handguns into the bags. The three men were in the store for just under one minute before they fled in a getaway car and abandoned the van at the scene. A subsequent inventory of the missing guns revealed that a total of forty-three (43) handguns had been stolen to include various models of Auto Ordnance, Bersa, Glock, Ruger, Sig Sauer, Smith & Wesson, Springfield Armory and Taurus firearms. The van was identified as a white Chrysler Town & Country which had been reported stolen from Denver, North Carolina.
Ms. Drake also thanked law enforcement for the excellent police work: “The Simpsonville and Charlotte police, ATF and the Lincoln County Sheriff, they pulled together to solve this one. Working together for safer communities is what it’s about.”
The maximum penalty Richardson faces is 10 years in prison, a $250,000 fine, three years of supervised release, and a special assessment fee of $100.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the assistance and cooperation of the Simpsonville Police Department, Charlotte Mecklenburg Police Department and the Lincoln County (North Carolina) Sheriff’s Department. The case has been assigned to Assistant United States Attorney Bill Watkins and First Assistant United States Attorney Lance Crick for prosecution. The investigation is still ongoing.
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Cape Cod Man Sentenced to 20 Years in Prison for Heroin and Suboxone TraffickingRead the Press Release
BOSTON – A member of the Nauti-Bloc gang was sentenced today in federal court in Boston for his role in trafficking heroin and suboxone.
Tyrone Gomes, 31, of Hyannis, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 20 years in prison and eight years of supervised release. On April 5, 2017, Gomes pleaded guilty to conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, possession of heroin with the intent to distribute, and conspiracy to distribute suboxone.
In October 2015, federal investigators determined that Gomes, Denzel Chisholm – the Nauti-Block leader, and other co-conspirators were responsible for a significant quantity of the heroin distributed on Cape Cod. Gomes received large quantities of heroin from Chisholm, which he sold to other drug dealers and individual users. On March 6, 2016, Chisholm arranged to sell Gomes 12 grams of heroin in exchange for cash and 10 suboxone strips. The suboxone was ultimately destined for Browning Mejia, an inmate at MCI-Norfolk and an associate of Chisholm. As a result of the investigation, agents were able to stop Gomes’ vehicle and recover 12 grams of heroin from Gomes.
In April 2016, 13 members and affiliates of the Nauti-Block gang were charged with federal drug trafficking and firearms offenses.
Both Gomes and Chisholm also face charges in Massachusetts state court related to the September 2015 murder of Christine Ferreira at a rest stop on Route 6 on Cape Cod.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Canadian Couple Pleads Guilty in Case Involving Synthetic Drugs from ChinaRead 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 Karl and Sorina Morrison, both 60, of Kitchener, Ontario, who were convicted of attempt to export pentylone and furanyl fentanyl and misprision of a felony, respectively, were sentenced to time served by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that on August 29, 2016, American law enforcement officers intercepted a package that was mailed from China and addressed to Karl Morrison at a location in Niagara Falls, NY. The package contained four sample-sized packets of powder, two of which were determined to contain 4-methoxy butyryl fentanyl and para-fluoro butyryl fentanyl. If intended for human consumption, these synthetic substances are analogues of the Schedule II controlled substance fentanyl.
On October 15, 2016, Morrison and his wife Sorina entered the United States from Canada at the Lewiston Bridge Port of Entry. The couple retrieved four packages, bought shipping supplies, and repackaged the contents into new envelopes that they paid to ship back to Canada, including one to their home address. Sorina Morrison falsely declared that the contents of one of the repackaged parcels contained cinnamon butter. Other than packaging materials, that parcel contained more than 500 grams of powder containing pentylone. Another of the repackaged parcels contained approximately 6 1/2 grams of powder containing furanyl fentanyl. All three repackaged parcels were intercepted by American law enforcement officials before shipment to Canada.
The couple discarded the Chinese shipping labels of the original packages in various garbage cans around Niagara County to cover their tracks. They also obtained the name and address of an unsuspecting citizen in Niagara Falls to use as the return address on the packages they shipped to Canada, to further disguise the origin of the illegal contents. The Morrison’s were arrested as they drove back across the Lewiston Bridge toward Canada.
Several days later, law enforcement officials recovered yet another Chinese parcel that had been delivered for Karl Morrison, which contained nearly 500 grams of powder containing pentylone.
Pentylone is a synthetic cathinone that is commonly used as a designer drug for its stimulant effect and is comparable to MDMA. Furanyl fentanyl is a synthetic opioid that is far more potent than heroin.
The sentencings are the result of an investigation by Customs and Border protection, under the direction of Director of Field Operations Rose Brophy; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; and the U.S. Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Canadian Citizen Pleads Guilty to Cash SmugglingRead 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 Richard Clarke, 48, a Canadian citizen residing in Buffalo, pleaded guilty to bulk cash smuggling out of the United States before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison and a fine of $250,000.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on November 16, 2016, Clarke transported more than $10,000 in United States currency from the U.S. into Canada. However, the defendant failed to report the transportation of the currency, which he was legally required to do.
Clarke was charged in this case along with co-defendants Joshua Castro and Barrett Johnson. Castro has been convicted of conspiracy to distribute controlled substances for conspiring with others to possess and distribute “Molly,” a Scheduled I controlled substance. Charges are pending against Johnson. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero, and the Border Enforcement Security Taskforce which includes the Ontario Provincial Police, Niagara Regional Police, Peel Regional Police and Toronto Police Services.
Sentencing is scheduled for October 19, 2017, at 1:30 p.m. before Judge Geraci.
Burneyville Man Sentenced to 24 Months for Firearm Possession (Destructive Device)Read the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JACOB RHETT HOLLAND, age 24, of Burneyville, Oklahoma, was sentenced to 24 months imprisonment, and 3 years of supervised release for POSSESSION OF UNREGISTERED FIREARM (DESTRUCTIVE DEVICE), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871.
The Indictment alleged that on or about December 25, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly possess a destructive device, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
The charge arose from an investigation by the Love County Sherriff’s Office, the Oklahoma Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Bookkeeper Sent to Prison for Embezzling over $400,000 in Just over a YearRead the Press Release
GREAT FALLS - The United States Attorney’s Office announced that Natalee Christine Crumley was sentenced to 38 months in prison, $425,939.80 in restitution, $427,816.17 in forfeiture, and a $100 special assessment. The sentencing occurred on July 25, 2017, before U.S. District Judge Brian Morris, in Great Falls, Montana.
Crumley worked as a bookkeeper at Junkermier, Clark, Campanella, Stevens P.C. (JCCS), which is a firm providing Certified Public Accountant and business advisory services throughout Montana. Crumley’s job duties included providing bookkeeping services for Anderson Glass Doors and Windows (“Anderson Glass”) and Doors & Hardware Unlimited, Inc. (Doors & Hardware).
In just over a year, Crumley forged over 100 checks and embezzled $425,939.80 from Anderson Glass and Doors & Hardware. After embezzling the money, Crumley withdrew over $140,000 in cash, purchased NCAA Final Four Tickets, furniture, clothes, and took trips to Miami, Long Beach, Houston, and Spokane. Crumley also spent significant sums of money at Victoria’s Secret and even rented a Ferrari while on vacation.
In a sentencing memo filed in federal court, Assistant U.S. Attorney Ryan G. Weldon stated, “Ms. Crumley held a position of trust because she was supposed to know right from wrong.” This is why the victims of the crime explained, “In today’s world, stealing has become all too common. Why work when you can just take what you want and hope the punishment will be little more than a slap on the hand.”
As a result, Judge Morris sentenced Crumley to 38 months in prison, $425,939.80 in restitution, and $427,816.17 in forfeiture. All total, Crumley must now pay the victims and the United States $853,755.97. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Crumley will likely serve all of the time imposed by the court. In the federal system, Crumley does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The Crumley case was investigated by the Internal Revenue Service - Criminal Investigation Division, and the Great Falls Police Department.
Bonners Ferry Man Sentenced to Five Years for Possession of Sexually Explicit Images of MinorsRead the Press Release
COEUR D’ALENE – Thurlo Eugene Clark, 72, of Bonners Ferry, Idaho, was sentenced today in federal court in Coeur d’Alene to 60 months in prison for possession of sexually explicit images of minors, Acting U.S. Attorney Rafael Gonzalez announced. Senior U.S. District Court Judge Edward J. Lodge also ordered a ten-year term of supervised release following Clark’s release from prison.
According to the plea agreement, Clark admitted that on May 6, 2016, law enforcement officers contacted him because officers received information that Clark tried to send child pornography via the internet. Clark admitted to law enforcement that he knowingly possessed child pornography which he had received by email. With Clark’s consent, law enforcement officers recovered various computer equipment that contained child pornography. At the time law enforcement contacted Clark, he possessed some 21,000 images of child pornography.
The case was investigated by the FBI and the Idaho Internet Crimes Against Children Task Force.
Balch Springs Man Sentenced to 35 Years in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS—Francisco Javier Lopez Echeverria, 19, of Balch Springs, Texas, was sentenced today by U.S. District Judge Sam A. Lindsay to serve 420 months in federal prison and a lifetime of supervised release, following his guilty plea to two child pornography offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Echeverria has been in custody since his arrest in August 2016. He pleaded guilty in December 2016 to two counts of production of child pornography.
According to the factual resume filed in the case, on August 20, 2016, DPD executed a search warrant at Echeverria’s residence. Echeverria was at the residence along with a male 17-month-old child, John Doe. Echeverria acknowledged he possessed sexual explicit images of John Doe, who lived at the residence. Echeverria uploaded images and videos of child pornography to his Flickr account that he produced of John Doe. There are several videos and images that show Echeverria sexually abused the minor child on multiple occasions in May 2016 through July 2016.
In addition, the forensic review of Echeverria’s devices showed that Echeverria possessed additional child pornography. Currently six image files of Echeverria’s collection were of identified children known to law enforcement as victims of sexual abuse. Also, Echeverria possessed hundreds of additional images of nude toddlers and some nude infants.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Shane Read prosecuted the case.
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Attorney General Sessions Announces Immigration Compliance Requirements for Edward Byrne Memorial Justice Assistance Grant ProgramsRead the Press Release
The Department of Justice today posted a solicitation for the Edward Byrne Memorial Justice Assistance Grant Programs (“Byrne JAG”). Recipients for FY 2017 will be notified of new conditions of their grants that will increase information sharing between federal, state, and local law enforcement, ensuring that federal immigration authorities have the information they need to enforce immigration laws and keep our communities safe.
"So-called 'sanctuary' policies make all of us less safe because they intentionally undermine our laws and protect illegal aliens who have committed crimes,” Attorney General Jeff Sessions said. “These policies also encourage illegal immigration and even human trafficking by perpetuating the lie that in certain cities, illegal aliens can live outside the law. This can have tragic consequences, like the 10 deaths we saw in San Antonio this weekend. As part of accomplishing the Department of Justice's top priority of reducing violent crime, we must encourage these 'sanctuary' jurisdictions to change their policies and partner with federal law enforcement to remove criminals. From now on, the Department will only provide Byrne JAG grants to cities and states that comply with federal law, allow federal immigration access to detention facilities, and provide 48 hours notice before they release an illegal alien wanted by federal authorities. This is consistent with long-established cooperative principles among law enforcement agencies. This is what the American people should be able to expect from their cities and states, and these long overdue requirements will help us take down MS-13 and other violent transnational gangs, and make our country safer."
Arkansas Man Pleads Guilty to Developing and Distributing Prolific MalwareRead the Press Release
ALEXANDRIA, Va. – Taylor Huddleston, 26, of Hot Springs, Arkansas, pleaded guilty today to charges of aiding and abetting computer intrusions.
According to the statement of facts filed with the plea agreement, Huddleston developed, marketed, and distributed two products that were extremely popular with cybercriminals around the world. The first is the “NanoCore RAT,” which is a type of malicious software, or “malware,” that is used to steal information from victim computers, including sensitive information such as passwords, emails, and instant messages. The NanoCore RAT even allowed users to surreptitiously activate the webcam on the victim computers in order to spy on the victims. Huddleston’s NanoCore RAT was used to infect and attempt to infect tens of thousands of computers. Huddleston’s other product, “Net Seal,” was licensing software that he used to distribute malware for co-conspirators for a fee. For instance, Huddleston used Net Seal to assist Zachary Shames in the distribution of malware to 3,000 people that was in turn used it to infect 16,000 computers. In his guilty plea, Huddleston admitted that he intended his products to be used maliciously.
Huddleston faces a maximum penalty of 10 years in prison and will be sentenced on December 8. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, the lead investigative agency, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady. The case is being prosecuted by Assistant U.S. Attorney Kellen S. Dwyer and Senior Counsel Ryan K. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-CR-289.
Anchorage Man Sentenced to a Combined 18 Years for Drug Trafficking, Money Laundering, and Firearms OffensesRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Bernard Yamura White, 36, of Anchorage was sentenced yesterday to 15 years in federal prison for charges of drug trafficking, money laundering, and firearms offenses. White, a third-time felony drug offender, also received a consecutive three-year sentence for violating his prior terms of supervised release by committing the charged crimes. Senior U.S. District Judge Ralph R. Beistline imposed the 18-year sentence on White.
On Aug. 22, 2016, White attempted to ship a parcel containing $59,610 in drug proceeds from Anchorage to an address in California. On Jan. 12, 2017, White attempted to ship another parcel containing $30,980 in drug proceeds from Anchorage to another address in California.
On Feb. 8, 2017, White was contacted at a traffic stop by law enforcement officers in Anchorage and was found in possession of 118 grams of heroin, 59 grams of powder cocaine, and 35 grams of crack cocaine. White’s residence was searched later that day, and law enforcement officers found 786 grams of methamphetamine, 1318 grams of heroin, 176 grams of cocaine, and 837 grams of marijuana. In addition, the officers found 11 firearms, including rifles, semi-automatic pistols, and shotguns. White is a felon and prohibited from possession of firearms due to his two prior federal drug trafficking felonies.
At White’s sentencing hearing, a former neighbor of White’s asked to speak with the court, and expressed concern for the community that White had been convicted of three drug trafficking offenses and after significant time in prison still continued to engage in the same dangerous conduct.
Before imposing a sentence, Judge Beistline, who had sentenced White on one of his prior convictions, recounted White’s history with the court. Judge Beistline referenced the current opioid epidemic in Alaska, and the number of drug overdose deaths caused by drug traffickers like White, who was motivated by profiting off other’s addictions. Judge Beistline compared drug traffickers like White to domestic terrorists: “We must protect our community from those that want to destroy us.” Among the many things Judge Beistline took into account when fashioning White’s sentence was his conclusion that White was a danger to the community.
Acting U.S. Attorney Schroder commended the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation Division, Bureau of Alcohol, Tobacco, and Explosives, and the Anchorage Police Department for the investigation leading to the successful prosecution of Mr. White.
Albuquerque Man Sentenced to Prison for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Joshua Greene, 19, of Albuquerque, N.M., was sentenced yesterday afternoon in federal court to 87 months in prison followed by four years of supervised release for his conviction on heroin trafficking charges. Green also was ordered to forfeit $28,135 in cash, a handgun, and a gold necklace set with 1,728 natural diamonds valued at $11,555 to the United States, and to pay a money judgment in the amount of $28,250.
Greene and co-defendant Kayleb Reyos, 23, of Rio Rancho, N.M., were arrested in May 2016, as the result of a DEA investigation into heroin and methamphetamine trafficking in northwest Albuquerque. The complaint alleges that Greene and Reyos sold an aggregate of 36 ounces (2.25 pounds) of heroin and 3 ounces (.18 pounds) of methamphetamine to undercover law enforcement agents during a series of transactions occurring between Feb. 2016 and May 2016. The two men were arrested when the DEA executed a federal search warrant at their residence in northwest Albuquerque. During the search, the DEA seized an additional pound of heroin, bulk amounts of cash, a handgun, and drug paraphernalia.
Greene and Reyos subsequently were charged in a ten-count indictment filed on June 14, 2016. The indictment charged Greene and Reyos with conspiracy to distribute heroin from Feb. 2016 to May 2016. It also charged the two defendants with distributing heroin on Feb. 25, 2016, April 12, 2016, and May 4, 2016, and distributing methamphetamine on March 23, 2016. Greene separately was charged with distributing heroin on Feb. 4, 2016, March 9, 2016, and March 22, 2016, and possessing heroin with intent to distribute on May 17, 2016. Reyos separately was also charged with possessing heroin with intent to distribute on May 17, 2016.
On April 11, 2017, Greene pled guilty to a felony information charging him with conspiracy and distribution of heroin. In entering the guilty plea, Green admitted that from Feb. 4, 2016 through May 17, 2016 he directed a small-scale drug trafficking organization in northwest Albuquerque. Greene further admitted that on March 22, 2016, he sold approximately 135.1 grams of heroin to an undercover law enforcement agent.
On May 23, 2017, Reyos pled guilty to a felony information charging him with conspiracy and distribution of heroin. In entering the guilty plea, Reyos admitted that from Feb. 4, 2016 through May 17, 2016, he was part of a small-scale drug trafficking organization that operated in northwest Albuquerque. Reyos admitted that on April 12, 2016, he drove Greene to a parking lot in Albuquerque, where Greene sold approximately 423.8 grams of heroin to an undercover law enforcement agent. Reyos faces a maximum penalty of 20 years in federal prison. Reyos is scheduled to be sentenced on Aug. 25, 2017, in Albuquerque.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorneys Kristopher Houghton and Alexander Uballez are prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, Bernalillo County Commissioner Maggie Hart Stebbins, Albuquerque City Councilor Diane Gibson, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
24 July 2017
Williamsport Man Sentenced to 15 Years’ Imprisonment for Being A Felon in Possession of A FirearmRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Cormier, age 32, of Williamsport, Pennsylvania was sentenced today by Chief United States District Court Judge Christopher C. Conner to serve 180 months’ imprisonment for being a felon in possession of a firearm.
According to United States Attorney Bruce D. Brandler, the charges resulted from a shooting incident outside the 5th Avenue Tavern in Williamsport in February 2015, during which Cormier was apprehended with a 9mm Taurus semiautomatic pistol. Cormier, whose status as a convicted felon prohibited him from possessing firearms, pleaded guilty to the charges in March 2016. He was sentenced under the Armed Career Criminal Act which provides for enhanced penalties for persons previously convicted of three or more drug felonies or violent crimes.
The charges were the result of an investigation conducted by the Williamsport Police Department and the Bureau of Alcohol, Tobacco, and Firearms. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Washington, D.C. Post Office Manager and Two Letter Carriers Found Guilty of Bribery and Conspiracy to Distribute MarijuanaRead the Press Release
A U.S. Postal Service (USPS) post office manager and two letter carriers were convicted Friday after a week-long jury trial in the U.S. District Court for the District of Columbia on one count each of conspiracy to commit bribery, bribery and conspiracy to distribute marijuana as a result of their roles in a scheme to use their positions at the USPS to deliver hundreds of pounds of marijuana to individuals in the District of Columbia in exchange for cash. Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division made the announcement.
According to the evidence presented at trial, Deenvaughn Rowe, 48, of Odenton, Md., was the Acting Manager of the River Terrace Post Office. Rowe used his USPS computer to track packages containing marijuana mailed from the West Coast to the Lamond-Riggs Post Office in Washington, D.C. The packages were typically addressed to fictitious individuals or non-existent addresses. The evidence at trial revealed that once the packages arrived at the Lamond-Riggs Post Office, Rowe would coordinate the delivery of the packages with Lamond-Riggs Post Office Letter Carrier Kendra Brantley, 32, of Washington, D.C., and Carrier Technician Alicia Norman, 39, also of Washington, D.C., by cell phone and text message. The evidence presented at trial showed that once the packages of marijuana arrived at the Lamond-Riggs Post Office, Brantley and Norman would load the packages into their postal vehicles, and,, in coordination with Rowe, deliver them to individuals they met on the street in exchange for cash.
Norman will be sentenced September 12, Brantley on September 15 and Rowe on October 2, before the Honorable Tanya S. Chutkan, U.S. District Judge for the District of Columbia.
This case was investigated by the USPS Office of the Inspector General’s Capital Metro Field Office, and the Postal Inspection Service’s Washington Division. Trial Attorneys Mark J. Cipolletti, Shamiso Maswoswe, Molly Gaston and Nicholas Connor of the Criminal Division’s Public Integrity Section are prosecuting the case.
Virginia resident convicted of identity theftRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Virginia resident was convicted today of identity theft, Acting United States Attorney Betsy Steinfeld Jividen announced.
Angela Roberts, age 41, of Stephenson, Virginia, pled guilty to one count of “Identity Theft.” Roberts admitted to using another’s identifying information to commit bank fraud. The crime occurred June 27, 2016 in Berkeley County, West Virginia.
Roberts faces up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Federal Bureau of Investigation investigated.
Chief U.S. District Judge Gina M. Groh presided.
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Undocumented Alien Charged with Identity TheftRead the Press Release
PHILADELPHIA - An indictment was filed charging Eulogio Bautista, an undocumented alien from Mexico, with producing a false identification document after he obtained a Pennsylvania driver’s license in the name of a person who is a citizen of Puerto Rico.
According to the indictment, Bautista obtained the false driver’s license using the other person’s name, date of birth, and social security number in 2009, and then renewed the false driver’s license in 2013 and 2017.
If convicted, Bautista faces a statutory maximum sentence of 15 years, a possible fine, a period of supervised release, and a $100 special assessment on each count.
The case was investigated by Department of Homeland Security and is being prosecuted by Assistant United States Attorney Laurie Magid
Topeka Man Pleads Guilty to Operating Interstate Sex Trafficking BusinessRead the Press Release
TOPEKA, KAN. - A Topeka man who owned a Lawrence nightclub has pleaded guilty to a federal sex trafficking charge, U.S. Attorney Tom Beall said.
Frank Boswell, 43, Topeka, Kan., pleaded guilty July 21 to one count of conspiracy to commit sex trafficking by force, fraud or coercion. In his plea, Boswell admitted he and co-defendants employed female commercial sex workers who served clients in Kansas and other states. Boswell used the Internet, cell phones, texting and social media to keep in touch with conspirators, track the movements of sex workers and advertise sexual services.
Boswell’s organization looked for women who needed money and a place to live wherever they found them - including homeless shelters - to recruit as commercial sex workers. They targeted single mothers and women with drug problems. The conspirators used drugs well as the threat of violence to make the women compliant. The women turned the money they made over to Boswell and he paid for their rent, utilities and cell phones.
Sentencing is set for Oct. 23. Both parties have agreed to recommend a sentence of 51 to 63 months in federal prison.
Co-defendants include:
Barry M. Johnson, who was sentenced to 46 months.
Michaela Hekekia, who is awaiting sentencing.
Shannon Nelson, who is awaiting sentencing.
Sean P. Hall, who is awaiting sentencing.
Rachel Flenniken, who is awaiting sentencing.
Beall commended the Topeka Police Department, Homeland Security Investigations, the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Toldeo, Ohio Man Convicted of Multi-State Heroin Distribution ConspiracyRead the Press Release
Ricky Thompson, aka Boom, 43, of Toledo, Ohio was convicted on Friday of conspiracy to distribute over 1 kilogram of heroin, cocaine and crack cocaine, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. A federal jury in Nashville found Thompson guilty on all charges, after a two-week trial, including conspiracy to commit money laundering; possession of firearms in furtherance of drug trafficking; and conspiracy to commit witness intimidation.
Acting U.S. Attorney Jack Smith praised the law enforcement agencies and trial team in securing the guilty verdicts, “Thanks to the exemplary cooperation between law enforcement agencies spanning several states, we have now dismantled another organization responsible for pumping large quantities of addictive and deadly drugs into our communities. We will continue to expand our efforts to bring those to justice who feed the devastating heroin epidemic.”
During 2015-2016, Thompson and four other individuals were indicted in connection with this case on drug distribution charges.
Testimony at trial established that Thompson operated a multi-state drug-trafficking operation that was responsible for the distribution of narcotics in Arizona, Florida, Illinois, Kentucky, Louisiana, Ohio and Tennessee. Thompson’s heroin was responsible for multiple heroin-related overdoses in Tennessee, and at least one fatal overdose of a young woman in Ohio.
In March 2015 agents with the DEA Drug Task Force executed a series of search warrants in Nashville, Tennessee that resulted in multiple arrests and the seizure of approximately 300 grams of heroin and cocaine in a stash-house maintained by Thompson’s organization. Those arrested in 2015 included John Rupley, 35, of Toledo, Ohio; Derek Gilligan, 25, of Toledo, Ohio; Justin Clements, 30, of Nashville, Tennessee; and Tiffany Wright, 28, also of Nashville. All of these co-defendants have pleaded guilty and are awaiting sentencing.
Proof at trial showed that following the 2015 arrests, Derek Gilligan attempted to warn Thompson that authorities had identified him as the head of the operation. On March 2, 2016, agents with the DEA, FBI, and local Toledo law-enforcement executed federal search warrants at four locations operated by Thompson in Toledo, Ohio. Authorities seized 8 firearms, more than $200,000 of heroin, cocaine, crack-cocaine, marijuana and suboxone, 5 vehicles, and almost $10,000 cash.
Even after Thompson’s arrest and subsequent extradition to Nashville, he directed remaining members of his drug-trafficking organization in Toledo to intimidate and harass persons whom he discovered had been subpoenaed to testify before a federal grand jury in Nashville.
Thompson faces a mandatory minimum sentence of 25 years in prison, up to life, when he is sentenced in November 2017.
This case was investigated by the DEA; the FBI; the Rutherford County Sheriff’s Department; the Lebanon Police Department; the Wilson County Sheriff’s Department; the Nashville Metropolitan Police Department; the Toledo, Ohio Police Department; the Lucas County, Ohio Sheriff’s Department; the Ohio State Police; and the Oldham County, Kentucky, Police Department. The case was prosecuted by Assistant U.S. Attorneys Clay Lee and Phillip Wehby.
Three Sentenced to Prison for Running “Star Reliable Mortgage” Foreclosure Rescue Scam in Bakersfield, Visalia and SalinasRead the Press Release
FRESNO, Calif. — Three defendants were sentenced today for running a foreclosure rescue scam in Bakersfield, Visalia and Salinas, U.S. Attorney Phillip A. Talbert announced.
Chief U.S. District Judge Lawrence J. O’Neill sentenced Martin Calzada, 30, of Norwalk, to nine years in prison; Juan Curiel, 38, of Visalia, to three years and five months in prison; and Santiago Palacios-Hernandez, 48, of Salinas, to two years and seven months in prison. On March 10, 2017, Calzada was convicted by a jury of one count of conspiracy and eight counts of mail fraud affecting a financial institution. In December 2014, Curiel and Palacios-Hernandez pleaded guilty to conspiracy to commit mail fraud
According to evidence presented during Calzada’s four-day trial, the defendants conspired to defraud homeowners facing foreclosure. The three men operated Star Reliable Mortgage, which had offices in Bakersfield, Visalia, and Salinas, and targeted distressed homeowners with a fraudulent “loan elimination” scheme. Between approximately August 2010 and October 2011, Star Reliable charged clients an upfront fee for its services — ranging from $2,500 up to $4,500 — as well as monthly fees, for ostensibly helping the clients own their homes “free and clear.” Clients paid hundreds of thousands of dollars to Star Reliable and at least $300,000 was transferred from Star Reliable into Calzada’s bank accounts.
To advance the scheme, Calzada, Curiel, and Palacios-Hernandez filed fraudulent documents at county recorders’ offices on behalf of the homeowner-clients. The fraudulent documents purported to replace the legitimate property trustees with fictitious trusts, all in an effort to “cloud title” and halt or stall the foreclosure process. The defendants and other employees working at their direction told Star Reliable clients to stop paying their mortgages. They also falsely represented that Star Reliable clients had $1 million in a U.S. government account that could be used to pay off a homeowner’s mortgage.
As part of their sentences, the defendants were ordered to pay more than $1.1 million dollars in restitution to former Star Reliable clients and mortgage loan owners Fannie Mae and Freddie Mac, which suffered financial losses upon the foreclosure of several clients’ homes.
These cases were the product of an investigation by the Federal Bureau of Investigation and the Tulare County District Attorney’s Office. Assistant U.S. Attorneys Christopher D. Baker and Patrick J. Suter prosecuted the cases.
Three Felons Plead Guilty to Illegal Firearms PossessionRead the Press Release
FRESNO, Calif. — Three defendants pleaded guilty today in three separate cases to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 19, 2016, Juan Gonzalez, 40, of Orosi, was driving a car and fled from officers who attempted to stop him for a traffic violation. He reached speeds of over 100 miles per hour before the officers cancelled the pursuit. During the chase, a deputy saw Gonzalez throw a dark object out of the window on Millerton Road near Lake View Estates. After the pursuit ended, the deputy returned to the location and found a Glock 27, .40‑caliber pistol. Gonzalez was stopped later that morning by Clovis police officers for failure to stop at a red light and arrested him for driving on a suspended license and possession of drug paraphernalia. He was also identified as the driver of the fleeing vehicle who tossed the gun. Gonzalez has prior felony convictions that prohibit him from possessing a firearm. (1:17‑cr‑031)
In the second case, court documents indicate that on May 4, 2016, Jerrett Newman, 27, of Fresno, possessed a Star Bonifacio Echeverria .22-caliber pistol he tossed while running from police. Newman has multiple prior felony convictions. (1:16‑cr‑086)
In the third case, court documents show that on May 2, 2017, the U.S. Marshals Service Fugitive Apprehension Team encountered Rodney Heather, 36, of Fresno, who was wanted for a probation violation. When deputies approached Heather, they saw him reaching for his waistband and removing a black object and tossing it on the driver’s side floorboard. Despite warnings to show his hands, Heather reached down and appeared to push something under the seat. The deputies arrested Heather and found a Glock Model F 22, .40-caliber handgun under the seat. Heather has multiple prior felony convictions. (1:17‑cr‑117)
These cases are the product of investigations by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service Fugitive Apprehension Task Force, the Fresno County Sheriff’s Office, and the Clovis Police Department. Assistant United States Attorney Kimberly A. Sanchez is prosecuting the cases.
The cases were brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Gonzalez and Newman are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on October 16, 2017. Heather is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on October 16, 2017. Each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Thibodaux Woman Charged with Wire Fraud and Money LaunderingRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JILL ANDRAS LEBLANC, a/k/a JILL FREMIN, age 38, of Thibodaux, was indicted last Friday and charged with eighteen counts of wire fraud and money laundering.
According to the Indictment, LEBLANC stole several hundred thousand dollars from her mother's retirement account. More specifically, LEBLANC was appointed power of attorney on October 29, 2008, for her mother who was terminally ill with cancer. LEBLANC’s father, an oil field worker, had accumulated a substantial individual retirement account (IRA) during his working life. He passed away several years prior to 2011. This investment account was managed by a national brokerage house whose home offices are in Minneapolis, Minnesota. During LEBLANC’s administration of her mother's account, she stole approximately $369,701 from the account and spent it on personal, frivolous items.
If convicted, LEBLANC faces a possible maximum sentence of twenty years imprisonment per count, and/or a fine of $250,000 and up to three years of supervised release. LEBLANC will be ordered to pay restitution.
Acting U.S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Internal Revenue Service, Criminal Investigation and the Office of the Louisiana State Inspector General in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Statement Regarding BRPD Chief RetirementRead the Press Release
BATON ROUGE, LA - Acting United States Attorney Corey R. Amundson stated, “We greatly appreciate Chief Carl Dabadie’s strong leadership and sacrifice in leading the men and women of the Baton Rouge City Police Department through a very difficult chapter in our city's history. Under his leadership, our federal, state, and local law enforcement agencies have coordinated against violent crime in an unprecedented way. This unified front will remain essential in continuing to better our community by addressing the challenges we face.”
Southbridge Man Sentenced for Dealing OxycodoneRead the Press Release
BOSTON – A Southbridge man was sentenced today in federal court in Worcester for distributing oxycodone.
Richard Gonzalez, 29, was sentenced by U.S. District Court Judge Timothy S. Hillman to time served and three years of supervised release, six months of which is to be served in home detention. In February 2017, Gonzalez pleaded guilty to one count of conspiracy to distribute oxycodone and one count of distribution of oxycodone.
In June 2016, Gonzalez was arrested and charged along with three others for distributing oxycodone in Worcester County. Gonzalez distributed oxycodone pills on two occasions in Southbridge to co-defendant John Tautenhan III. On both occasions, Tautenhan resold the oxycodone to an undercover officer.
Acting United States Attorney William D. Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Southbridge Police Chief Shane Woodson made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office prosecuted the case.
Previously Convicted Bank Robber Sentenced to More Than 12 ½ Years in Federal Prision for Multiple Bank Robberies Committed While on Federal Supervised ReleaseRead the Press Release
JULY 24, 2017
FOR IMMEDIATE RELEASE Contact BAILEY DRUMM
www.justice.gov/usao/md at (410) 209-4854
Baltimore, Maryland – Roger Irwin Harp, age 50, of Baltimore, Maryland was sentenced to 151 months in federal prison by U.S. District Judge J. Frederick Motz. Harp pleaded guilty to bank robbery and to violating conditions of supervised release.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Kevin Davis of the Baltimore Police Department.
In August 2002, Harp pleaded guilty in federal court in Baltimore, Maryland to charges related to a string of twelve bank robberies in 2001. He was sentenced to 151 months in federal prison and 3 years of supervised release, which began in May 2014. According to his plea agreement, between June 2014 and October 2015, Harp committed multiple violations of supervised release.
While under conditions of supervision pending a hearing in federal court on his supervised release violations, Harp absconded from supervision and committed eight bank robberies and attempted bank robberies in Baltimore throughout the month of March 2016. For example, on March 16, 2016, Harp walked into a bank and handed a note to a teller stating, “Give me all the money NOW!! Before I blow your head OFF!!” The teller removed $2,620 from a cash drawer and handed it to Harp, who then walked out of the bank. In total, Harp robbed three different banks of $10,750 on different dates in March 2016.
After three attempted robberies of other banks on March 21, 2016, Harp was apprehended by Baltimore Police Department officers and eventually admitted his involvement in the eight robberies.
Acting United States Attorney Stephen M. Schenning commended the FBI and Baltimore Police Department for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Matthew J. Maddox, who prosecuted the case.
Phelps County Woman Pleads Guilty to Defrauding Assisted Living CenterRead the Press Release
St. Louis, MO – Denise Rea Barner appeared today before United States District Judge Rodney W. Sipple and entered a plea of guilty to fraudulently using her employer’s debit card for personal gain.
According to court documents, from July 1991 to February 25, 2016, Barner was an employee of the Robert L. Kyle Center Home for Semi-Independent Living Inc. She was named as a “Director” of the Kyle Center in about November of 2004 and her duties included general accounting.
Beginning in about November 2007 and ending in February 2016, Barner falsely and fraudulently used the Kyle Center debit cards to make unauthorized personal purchases and ATM withdrawals. The Kyle Center sustained a loss of between $95,000.00 and $150,000.00.
Barner, 54, Rolla, Missouri, pled guilty to one count of access device fraud. Sentencing has been set for October 20, 2017.
Access device fraud carries a maximum penalty of 10 years and/or a fine of up to $250,000.00 or both. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Rolla Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
Passaic County Man Admits Defrauding Clifton-Based Trucking Company of $900,000Read the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted his role in a scheme to defraud a trucking company out of more than $900,000, Acting U.S. Attorney William E. Fitzpatrick announced.
Angel D. Vidal, 25, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to Count 1 of an indictment charging him with wire fraud.
According to documents filed in this and other cases and statements made in court:
Lisa Popewiny, 55, of Clifton, New Jersey, was the payroll clerk at Clifford B. Finkle Jr. Inc., a Clifton-based company that provided transportation and freight services to various public and private entities located in New Jersey, New York, and elsewhere. From June 2012 to April 2015, Popewiny, Vidal, and his two brothers, Angel Gabriel Vidal, 23, and Miguel Vidal, 23, a former truck driver for the company, engaged in a scheme to defraud the company out of $920,380. On June 26, 2017, Angel Gabriel Vidal pleaded guilty before Judge Arleo to Count 2 of an indictment charging him with wire fraud. On March 30, 2017, Miguel Vidal pleaded guilty to an information charging him with wire fraud. Popewiny is scheduled to stand trial on Oct. 2, 2017.
Popewiny allegedly falsified payroll records in order to generate fraudulent paychecks payable to non-existent employees, including the Vidal brothers. All of the Vidal brothers have admitted to allowing the use of their personal identifying information to generate the fraudulent paychecks. The three men then converted the checks, many of which were deposited into their bank accounts and then funneled out of the accounts in cash. Miguel Vidal admitted to recruiting other individuals to provide their personal information so that Popewiny could allegedly falsely add them to the payroll. Over the course of the scheme, Popewiny allegedly input false hours for at least 12 different individuals. The scheme came to light when owners of the company, in an effort to investigate suspected fraud, distributed the payroll checks to employees – a task normally completed by Popewiny. After all of the payroll checks had been distributed, several paychecks remained unclaimed that turned out to be fraudulently issued.
The charge to which Angel D. Vidal and his brothers pleaded guilty carries a maximum punishment of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 17, 2017.
Acting U.S. Attorney William E. Fitzpatrick credited criminal investigators in the U.S. Attorney’s Office and postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division.
The charges and allegations against Popewiny are merely accusations, and she is presumed innocent unless and until proven guilty.
Pain Management Group Agrees to Pay $312,000 to Resolve False Claims Act and Overpayment AllegationsRead the Press Release
Pain Management Group P.C. (“PMG”), based in Antioch, Tenn., has agreed to pay $312,000 to settle federal and state False Claims Act and overpayment allegations, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
The settlement resolves allegations that PMG caused the submission of false claims to Medicare and TennCare for medically unnecessary urine drug tests. The settlement also resolves allegations that PMG caused the submission of false claims to Medicare and TennCare for non-Food & Drug Administration (“FDA”) approved pharmaceuticals Botox, Supartz, and Eufflexa, which PMG purchased from foreign-based suppliers. The United States contends that PMG administered the non-FDA approved pharmaceuticals to Medicare and TennCare patients and then billed Medicare and TennCare for the pharmaceuticals.
The United States’ investigation was initiated after extensive data analysis identified PMG as a potential outlier in the provision of urine drug testing to Medicare patients. Over the course of the investigation, the United States discovered information regarding PMG’s administration of non-FDA approved drugs to Medicare and TennCare patients. Once informed of the investigation, PMG cooperated and instituted remedial measures to address the United States’ allegations. The alleged conduct occurred during 2014-2015.
This matter was investigated by U.S. Department of Health and Human Services-Office of Inspector General and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Jason Ehrlinspiel represented the United States.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Owner of Tampa Parathyroid Practice Agrees to Pay $4 Million to Resolve False Claims Act AllegationsRead the Press Release
Tampa, FL – Dr. James Norman, the owner and operator of James Norman, MD, PA, a/k/a James Norman, MD, PA Parathyroid Center, d/b/a Norman Parathyroid Center (collectively, Norman) has agreed to pay $4 million to resolve allegations that he violated the False Claims Act by knowingly engaging in various unlawful billing practices with respect to Medicare and other federal health care programs and their beneficiaries.
Specifically, the government alleges that, from April 2008 through December 2016, Dr. Norman submitted fraudulent claims to Medicare, TRICARE, and the Federal Employee Health Benefits Program for pre-operative examinations performed on the day before or the day of surgery, and charged and collected extra fees from federal health care beneficiaries for services for which he had already received payment from the government. These extra fees ranged from $150 to $750 for Florida residents, to $1,750 or more for patients who lived out-of-state. Collectively, Dr. Norman and his practice pocketed hundreds of thousands of dollars as a result of these illicit billing practices.
“Fraudulent billing of the government, while also charging Medicare and other federal health care beneficiaries extra fees for services that the government has already paid for victimizes taxpayers, military veterans, the elderly, and other members of our community, and will not be tolerated,” said Acting U.S. Attorney Muldrow. “This lawsuit and today’s settlement demonstrates our office’s ongoing efforts to safeguard federal health care program beneficiaries from the effects of such illegal conduct.”
In addition to paying $4 million, Norman has also agreed to enter into an integrity agreement with the Inspector General of the U.S. Department of Health and Human Services.
“Physicians who systematically overbill Federal health care programs and their vulnerable patients will be held responsible for this fraudulent behavior,” said Special Agent in Charge Shimon R. Richmond of HHS-OIG. “Those who engage in such schemes can expect a thorough investigation and strong remedial measures such as those in the Integrity Agreement we signed with Dr. Norman.”
The settlement concludes a lawsuit originally filed by a former patient of Dr. Norman, Myra Gross, and her husband, Dr. David Gross, in the United States District Court for the Middle District of Florida. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Act also allows the government to intervene and take over the action, as it did in this case. Ms. Gross and her husband, Dr. Gross, will receive roughly $600,000 of the proceeds from the settlement with Norman.
The government’s action in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida and the U.S. Department of Health and Human Services – Office of Inspector General. It was handled Assistant U.S. Attorney Christopher Tuite.
The case is captioned United States ex rel. Gross, et al. v. James Norman, MD, PA, et al., Case No. 8:14-cv-978-T-33EAJ. The settlement resolves the United States’ claims in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.